1.1Senator .................... moves to amend S.F. No. 3327 as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. Minnesota Statutes 2008, section 289A.08, subdivision 7, is amended to
1.6read:
1.7    Subd. 7. Composite income tax returns for nonresident partners, shareholders,
1.8and beneficiaries. (a) The commissioner may allow a partnership with nonresident
1.9partners to file a composite return and to pay the tax on behalf of nonresident partners who
1.10have no other Minnesota source income. This composite return must include the names,
1.11addresses, Social Security numbers, income allocation, and tax liability for the nonresident
1.12partners electing to be covered by the composite return.
1.13(b) The computation of a partner's tax liability must be determined by multiplying
1.14the income allocated to that partner by the highest rate used to determine the tax liability
1.15for individuals under section 290.06, subdivision 2c. Nonbusiness deductions, standard
1.16deductions, or personal exemptions are not allowed.
1.17(c) The partnership must submit a request to use this composite return filing method
1.18for nonresident partners. The requesting partnership must file a composite return in the
1.19form prescribed by the commissioner of revenue. The filing of a composite return is
1.20considered a request to use the composite return filing method.
1.21(d) The electing partner must not have any Minnesota source income other than
1.22the income from the partnership and other electing partnerships. If it is determined that
1.23the electing partner has other Minnesota source income, the inclusion of the income
1.24and tax liability for that partner under this provision will not constitute a return to
1.25satisfy the requirements of subdivision 1. The tax paid for the individual as part of the
1.26composite return is allowed as a payment of the tax by the individual on the date on
1.27which the composite return payment was made. If the electing nonresident partner has no
1.28other Minnesota source income, filing of the composite return is a return for purposes of
1.29subdivision 1.
1.30(e) This subdivision does not negate the requirement that an individual pay estimated
1.31tax if the individual's liability would exceed the requirements set forth in section 289A.25.
1.32A composite estimate may, however, be filed in a manner similar to and containing the
1.33information required under paragraph (a).
1.34(f) If an electing partner's share of the partnership's gross income from Minnesota
1.35sources is less than the filing requirements for a nonresident under this subdivision, the tax
2.1liability is zero. However, a statement showing the partner's share of gross income must
2.2be included as part of the composite return.
2.3(g) The election provided in this subdivision is only available to a partner who has
2.4no other Minnesota source income and who is either (1) a full-year nonresident individual
2.5or (2) a trust or estate that does not claim a deduction under either section 651 or 661 of
2.6the Internal Revenue Code.
2.7(h) A corporation defined in section 290.9725 and its nonresident shareholders may
2.8make an election under this paragraph. The provisions covering the partnership apply to
2.9the corporation and the provisions applying to the partner apply to the shareholder.
2.10(i) Estates and trusts distributing current income only and the nonresident individual
2.11beneficiaries of the estates or trusts may make an election under this paragraph. The
2.12provisions covering the partnership apply to the estate or trust. The provisions applying to
2.13the partner apply to the beneficiary.
2.14(j) For the purposes of this subdivision, "income" means the partner's share of
2.15federal adjusted gross income from the partnership modified by the additions provided in
2.16section 290.01, subdivision 19a, clauses (6) to (10), and the subtractions provided in: (i)
2.17section 290.01, subdivision 19b, clause (9) (8), to the extent the amount is assignable or
2.18allocable to Minnesota under section 290.17; and (ii) section 290.01, subdivision 19b,
2.19clause (14) (13). The subtraction allowed under section 290.01, subdivision 19b, clause
2.20(9) (8), is only allowed on the composite tax computation to the extent the electing partner
2.21would have been allowed the subtraction.
2.22EFFECTIVE DATE.This section is effective the day following final enactment.

2.23    Sec. 2. Minnesota Statutes 2008, section 289A.09, subdivision 2, is amended to read:
2.24    Subd. 2. Withholding statement. (a) A person required to deduct and withhold
2.25from an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision
2.262 , or who would have been required to deduct and withhold a tax under section 290.92,
2.27subdivision 2a or 3, or persons required to withhold tax under section 290.923, subdivision
2.282 , determined without regard to section 290.92, subdivision 19, if the employee or payee
2.29had claimed no more than one withholding exemption, or who paid wages or made
2.30payments not subject to withholding under section 290.92, subdivision 2a or 3, or 290.923,
2.31subdivision 2 , to an employee or person receiving royalty payments in excess of $600,
2.32or who has entered into a voluntary withholding agreement with a payee under section
2.33290.92, subdivision 20 , must give every employee or person receiving royalty payments in
2.34respect to the remuneration paid by the person to the employee or person receiving royalty
2.35payments during the calendar year, on or before January 31 of the succeeding year, or, if
3.1employment is terminated before the close of the calendar year, within 30 days after the
3.2date of receipt of a written request from the employee if the 30-day period ends before
3.3January 31, a written statement showing the following:
3.4    (1) name of the person;
3.5    (2) the name of the employee or payee and the employee's or payee's Social Security
3.6account number;
3.7    (3) the total amount of wages as that term is defined in section 290.92, subdivision
3.81 , paragraph (1); the total amount of remuneration subject to withholding under section
3.9290.92, subdivision 20 ; the amount of sick pay as required under section 6051(f) of the
3.10Internal Revenue Code; and the amount of royalties subject to withholding under section
3.11290.923, subdivision 2 ; and
3.12    (4) the total amount deducted and withheld as tax under section 290.92, subdivision
3.132a or 3, or 290.923, subdivision 2.
3.14    (b) The statement required to be furnished by paragraph (a) with respect to any
3.15remuneration must be furnished at those times, must contain the information required, and
3.16must be in the form the commissioner prescribes.
3.17    (c) The commissioner may prescribe rules providing for reasonable extensions of
3.18time, not in excess of 30 days, to employers or payers required to give the statements to
3.19their employees or payees under this subdivision.
3.20    (d) A duplicate of any statement made under this subdivision and in accordance
3.21with rules prescribed by the commissioner, along with a reconciliation in the form the
3.22commissioner prescribes of the statements for the calendar year, including a reconciliation
3.23of the quarterly returns required to be filed under subdivision 1, must be filed with the
3.24commissioner on or before February 28 of the year after the payments were made.
3.25    (e) If an employer cancels the employer's Minnesota withholding account number
3.26required by section 290.92, subdivision 24, the information required by paragraph (d),
3.27must be filed with the commissioner within 30 days of the end of the quarter in which
3.28the employer cancels its account number.
3.29    (f) The employer must submit the statements required to be sent to the commissioner
3.30in the same manner required to satisfy the federal reporting requirements of section
3.316011(e) of the Internal Revenue Code and the regulations issued under it. For wages paid
3.32in calendar year 2008, An employer must submit statements to the commissioner required
3.33by this section by electronic means if the employer is required to send more than 100
3.3425 statements to the commissioner, even though the employer is not required to submit
3.35the returns federally by electronic means. For calendar year 2009, the 100 statements
3.36threshold is reduced to 50, and for calendar year 2010, the threshold is reduced to 25, and
4.1for statements issued for wages paid in 2011 and after, the threshold is reduced to ten.
4.2All statements issued for withholding required under section 290.92 are aggregated for
4.3purposes of determining whether the electronic submission threshold is met.
4.4    (g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph
4.5(a), clause (2), must submit the returns required by this subdivision and subdivision 1,
4.6paragraph (a), with the commissioner by electronic means.
4.7EFFECTIVE DATE.This section is effective for statements required to be filed
4.8after December 31, 2010.

4.9    Sec. 3. Minnesota Statutes 2008, section 289A.10, subdivision 1, is amended to read:
4.10    Subdivision 1. Return required. In the case of a decedent who has an interest in
4.11property with a situs in Minnesota, the personal representative must submit a Minnesota
4.12estate tax return to the commissioner, on a form prescribed by the commissioner, if:
4.13(1) a federal estate tax return is required to be filed; or
4.14(2) the federal gross estate exceeds $700,000 for estates of decedents dying after
4.15December 31, 2001, and before January 1, 2004; $850,000 for estates of decedents dying
4.16after December 31, 2003, and before January 1, 2005; $950,000 for estates of decedents
4.17dying after December 31, 2004, and before January 1, 2006; and $1,000,000 for estates of
4.18decedents dying after December 31, 2005.
4.19The return must contain a computation of the Minnesota estate tax due. The return
4.20must be signed by the personal representative.
4.21EFFECTIVE DATE.This section is effective for estates of decedents dying after
4.22December 31, 2005.

4.23    Sec. 4. Minnesota Statutes 2008, section 289A.12, subdivision 14, is amended to read:
4.24    Subd. 14. Regulated investment companies; reporting exempt-interest
4.25dividends. (a) A regulated investment company paying $10 or more in exempt-interest
4.26dividends to an individual who is a resident of Minnesota must make a return indicating
4.27the amount of the exempt-interest dividends, the name, address, and Social Security
4.28number of the recipient, and any other information that the commissioner specifies. The
4.29return must be provided to the shareholder no later than 30 days after the close of the
4.30taxable year by February 15 of the year following the year of the payment. The return
4.31provided to the shareholder must include a clear statement, in the form prescribed by the
4.32commissioner, that the exempt-interest dividends must be included in the computation of
4.33Minnesota taxable income. The regulated investment company is required in a manner
5.1prescribed by the commissioner to file a copy of the return with the commissioner. By
5.2June 1 of each year, the regulated investment company must file a copy of the return
5.3with the commissioner.
5.4    (b) This subdivision applies to regulated investment companies required to register
5.5under chapter 80A.
5.6    (c) For purposes of this subdivision, the following definitions apply.
5.7    (1) "Exempt-interest dividends" mean exempt-interest dividends as defined in
5.8section 852(b)(5) of the Internal Revenue Code, but does not include the portion of
5.9exempt-interest dividends that are not required to be added to federal taxable income
5.10under section 290.01, subdivision 19a, clause (1)(ii).
5.11    (2) "Regulated investment company" means regulated investment company as
5.12defined in section 851(a) of the Internal Revenue Code or a fund of the regulated
5.13investment company as defined in section 851(g) of the Internal Revenue Code.
5.14EFFECTIVE DATE.This section is effective for returns due after December 31,
5.152010.

5.16    Sec. 5. Minnesota Statutes 2009 Supplement, section 289A.18, subdivision 1, is
5.17amended to read:
5.18    Subdivision 1. Individual income, fiduciary income, corporate franchise, and
5.19entertainment taxes; partnership and S corporation returns; information returns;
5.20mining company returns. The returns required to be made under sections 289A.08 and
5.21289A.12 must be filed at the following times:
5.22    (1) returns made on the basis of the calendar year must be filed on April 15
5.23following the close of the calendar year, except that returns of corporations must be filed
5.24on March 15 following the close of the calendar year the due date for filing the federal
5.25income tax return;
5.26    (2) returns made on the basis of the fiscal year must be filed on the 15th day of the
5.27fourth month following the close of the fiscal year, except that returns of corporations
5.28must be filed on the 15th day of the third month following the close of the fiscal year due
5.29date for filing the federal income tax return;
5.30    (3) returns for a fractional part of a year must be filed on the 15th day of the fourth
5.31month following the end of the month in which falls the last day of the period for which
5.32the return is made, except that the returns of corporations must be filed on the 15th day of
5.33the third month following the end of the tax year; or, in the case of a corporation which
5.34is a member of a unitary group, the return of the corporation must be filed on the 15th
5.35day of the third month following the end of the tax year of the unitary group in which
6.1falls the last day of the period for which the return is made due date for filing the federal
6.2income tax return;
6.3    (4) in the case of a final return of a decedent for a fractional part of a year, the return
6.4must be filed on the 15th day of the fourth month following the close of the 12-month
6.5period that began with the first day of that fractional part of a year;
6.6    (5) in the case of the return of a cooperative association, returns must be filed on or
6.7before the 15th day of the ninth month following the close of the taxable year;
6.8    (6) if a corporation has been divested from a unitary group and files a return for
6.9a fractional part of a year in which it was a member of a unitary business that files a
6.10combined report under section 290.17, subdivision 4, the divested corporation's return
6.11must be filed on the 15th day of the third month following the close of the common
6.12accounting period that includes the fractional year;
6.13    (7) returns of entertainment entities must be filed on April 15 following the close of
6.14the calendar year;
6.15    (8) returns required to be filed under section 289A.08, subdivision 4, must be filed
6.16on the 15th day of the fifth month following the close of the taxable year;
6.17    (9) returns of mining companies must be filed on May 1 following the close of the
6.18calendar year; and
6.19    (10) returns required to be filed with the commissioner under section 289A.12,
6.20subdivision 2 , 4 to 10, or 16 must be filed within 30 days after being demanded by the
6.21commissioner.
6.22EFFECTIVE DATE.This section is effective for taxable years beginning after
6.23December 31, 2009.

6.24    Sec. 6. Minnesota Statutes 2008, section 289A.30, subdivision 2, is amended to read:
6.25    Subd. 2. Estate tax. Where good cause exists, the commissioner may extend the
6.26time for payment of estate tax for a period of not more than six months. If an extension to
6.27pay the federal estate tax has been granted under section 6161 of the Internal Revenue
6.28Code, the time for payment of the estate tax without penalty is extended for that period. A
6.29taxpayer who owes at least $5,000 in taxes and who, under section 6161 or 6166 of the
6.30Internal Revenue Code has been granted an extension for payment of the tax shown on the
6.31return, may elect to pay the tax due to the commissioner in equal amounts at the same
6.32time as required for federal purposes. A taxpayer electing to pay the tax in installments
6.33shall defer a percentage of tax that does not exceed the percentage of federal tax deferred
6.34and must notify the commissioner in writing no later than nine months after the death of
6.35the person whose estate is subject to taxation. If the taxpayer fails to pay an installment on
7.1time, unless it is shown that the failure is due to reasonable cause, the election is revoked
7.2and the entire amount of unpaid tax plus accrued interest is due and payable 90 days after
7.3the date on which the installment was payable.
7.4EFFECTIVE DATE.This section is effective the day following final enactment.

7.5    Sec. 7. Minnesota Statutes 2008, section 289A.50, subdivision 4, is amended to read:
7.6    Subd. 4. Notice of refund. The commissioner shall determine the amount of refund,
7.7if any, that is due, and notify the taxpayer of the determination as soon as practicable
7.8after a claim has been filed.
7.9If the commissioner determines that the address provided by the taxpayer to claim a
7.10refund is invalid or is no longer the current address of the taxpayer, then the date of the
7.11mailing of the notification provided under this subdivision is considered the date that
7.12the refund is paid for purposes of the payment of interest under section 289A.56 and is
7.13considered the date of issuance of the original warrant or check for purposes of issuing a
7.14new warrant or check under section 270C.347.
7.15EFFECTIVE DATE.This section is effective the day following final enactment.

7.16    Sec. 8. Minnesota Statutes 2008, section 289A.60, subdivision 7, is amended to read:
7.17    Subd. 7. Penalty for frivolous return. If a taxpayer files what purports to be
7.18a tax return or a claim for refund but which does not contain information on which
7.19the substantial correctness of the purported return or claim for refund may be judged
7.20or contains information that on its face shows that the purported return or claim for
7.21refund is substantially incorrect and the conduct is due to a position that is frivolous or
7.22a desire that appears on the purported return or claim for refund to delay or impede the
7.23administration of Minnesota tax laws, then the individual taxpayer shall pay a penalty of
7.24the greater of $1,000 or 25 percent of the amount of tax required to be shown on the
7.25return. In a proceeding involving the issue of whether or not a person taxpayer is liable for
7.26this penalty, the burden of proof is on the commissioner.
7.27EFFECTIVE DATE.This section is effective for returns filed after the day
7.28following final enactment.

7.29    Sec. 9. Minnesota Statutes 2009 Supplement, section 290.01, subdivision 19a, is
7.30amended to read:
7.31    Subd. 19a. Additions to federal taxable income. For individuals, estates, and
7.32trusts, there shall be added to federal taxable income:
8.1    (1)(i) interest income on obligations of any state other than Minnesota or a political
8.2or governmental subdivision, municipality, or governmental agency or instrumentality
8.3of any state other than Minnesota exempt from federal income taxes under the Internal
8.4Revenue Code or any other federal statute; and
8.5    (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
8.6Code, except:
8.7(A) the portion of the exempt-interest dividends exempt from state taxation under
8.8the laws of the United States; and
8.9(B) the portion of the exempt-interest dividends derived from interest income
8.10on obligations of the state of Minnesota or its political or governmental subdivisions,
8.11municipalities, governmental agencies or instrumentalities, but only if the portion of the
8.12exempt-interest dividends from such Minnesota sources paid to all shareholders represents
8.1395 percent or more of the exempt-interest dividends, including any dividends exempt
8.14under subitem (A), that are paid by the regulated investment company as defined in section
8.15851(a) of the Internal Revenue Code, or the fund of the regulated investment company as
8.16defined in section 851(g) of the Internal Revenue Code, making the payment; and
8.17    (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
8.18government described in section 7871(c) of the Internal Revenue Code shall be treated as
8.19interest income on obligations of the state in which the tribe is located;
8.20    (2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid
8.21or accrued within the taxable year under this chapter and the amount of taxes based on
8.22net income paid, sales and use, motor vehicle sales, or excise taxes paid to any other
8.23state or to any province or territory of Canada, to the extent allowed as a deduction
8.24under section 63(d) of the Internal Revenue Code, but the addition may not be more
8.25than the amount by which the itemized deductions as allowed under section 63(d) of
8.26the Internal Revenue Code exceeds the amount of the standard deduction as defined in
8.27section 63(c) of the Internal Revenue Code, disregarding the amounts allowed under
8.28sections 63(c)(1)(C) and 63(c)(1)(E) of the Internal Revenue Code. For the purpose of
8.29this paragraph, the disallowance of itemized deductions under section 68 of the Internal
8.30Revenue Code of 1986, income, sales and use, motor vehicle sales, or excise taxes are
8.31the last itemized deductions disallowed;
8.32    (3) the capital gain amount of a lump-sum distribution to which the special tax under
8.33section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;
8.34    (4) the amount of income taxes paid or accrued within the taxable year under this
8.35chapter and taxes based on net income paid to any other state or any province or territory
8.36of Canada, to the extent allowed as a deduction in determining federal adjusted gross
9.1income. For the purpose of this paragraph, income taxes do not include the taxes imposed
9.2by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729;
9.3    (5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10
9.4other than expenses or interest used in computing net interest income for the subtraction
9.5allowed under subdivision 19b, clause (1);
9.6    (6) the amount of a partner's pro rata share of net income which does not flow
9.7through to the partner because the partnership elected to pay the tax on the income under
9.8section 6242(a)(2) of the Internal Revenue Code;
9.9    (7) 80 percent of the depreciation deduction allowed under section 168(k) of the
9.10Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
9.11in the taxable year generates a deduction for depreciation under section 168(k) and the
9.12activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
9.13the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
9.14limited to excess of the depreciation claimed by the activity under section 168(k) over the
9.15amount of the loss from the activity that is not allowed in the taxable year. In succeeding
9.16taxable years when the losses not allowed in the taxable year are allowed, the depreciation
9.17under section 168(k) is allowed;
9.18    (8) 80 percent of the amount by which the deduction allowed by section 179 of the
9.19Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
9.20Revenue Code of 1986, as amended through December 31, 2003;
9.21    (9) to the extent deducted in computing federal taxable income, the amount of the
9.22deduction allowable under section 199 of the Internal Revenue Code;
9.23    (10) the exclusion allowed under section 139A of the Internal Revenue Code for
9.24federal subsidies for prescription drug plans;
9.25(11) the amount of expenses disallowed under section 290.10, subdivision 2;
9.26    (12) the amount deducted for qualified tuition and related expenses under section
9.27222 of the Internal Revenue Code, to the extent deducted from gross income;
9.28    (13) the amount deducted for certain expenses of elementary and secondary school
9.29teachers under section 62(a)(2)(D) of the Internal Revenue Code, to the extent deducted
9.30from gross income;
9.31(14) the additional standard deduction for property taxes payable that is allowable
9.32under section 63(c)(1)(C) of the Internal Revenue Code;
9.33(15) the additional standard deduction for qualified motor vehicle sales taxes
9.34allowable under section 63(c)(1)(E) of the Internal Revenue Code;
9.35(16) discharge of indebtedness income resulting from reacquisition of business
9.36indebtedness and deferred under section 108(i) of the Internal Revenue Code; and
10.1(17) the amount of unemployment compensation exempt from tax under section
10.285(c) of the Internal Revenue Code.
10.3EFFECTIVE DATE.This section is effective the day following final enactment.

10.4    Sec. 10. Minnesota Statutes 2009 Supplement, section 290.01, subdivision 19b,
10.5is amended to read:
10.6    Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
10.7and trusts, there shall be subtracted from federal taxable income:
10.8    (1) net interest income on obligations of any authority, commission, or
10.9instrumentality of the United States to the extent includable in taxable income for federal
10.10income tax purposes but exempt from state income tax under the laws of the United States;
10.11    (2) if included in federal taxable income, the amount of any overpayment of income
10.12tax to Minnesota or to any other state, for any previous taxable year, whether the amount
10.13is received as a refund or as a credit to another taxable year's income tax liability;
10.14    (3) the amount paid to others, less the amount used to claim the credit allowed under
10.15section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
10.16to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
10.17transportation of each qualifying child in attending an elementary or secondary school
10.18situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
10.19resident of this state may legally fulfill the state's compulsory attendance laws, which
10.20is not operated for profit, and which adheres to the provisions of the Civil Rights Act
10.21of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
10.22tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
10.23"textbooks" includes books and other instructional materials and equipment purchased
10.24or leased for use in elementary and secondary schools in teaching only those subjects
10.25legally and commonly taught in public elementary and secondary schools in this state.
10.26Equipment expenses qualifying for deduction includes expenses as defined and limited in
10.27section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
10.28books and materials used in the teaching of religious tenets, doctrines, or worship, the
10.29purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
10.30or materials for, or transportation to, extracurricular activities including sporting events,
10.31musical or dramatic events, speech activities, driver's education, or similar programs. No
10.32deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
10.33the qualifying child's vehicle to provide such transportation for a qualifying child. For
10.34purposes of the subtraction provided by this clause, "qualifying child" has the meaning
10.35given in section 32(c)(3) of the Internal Revenue Code;
11.1    (4) income as provided under section 290.0802;
11.2    (5) to the extent included in federal adjusted gross income, income realized on
11.3disposition of property exempt from tax under section 290.491;
11.4    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
11.5of the Internal Revenue Code in determining federal taxable income by an individual
11.6who does not itemize deductions for federal income tax purposes for the taxable year, an
11.7amount equal to 50 percent of the excess of charitable contributions over $500 allowable
11.8as a deduction for the taxable year under section 170(a) of the Internal Revenue Code and
11.9under the provisions of Public Law 109-1;
11.10    (7) for taxable years beginning before January 1, 2008, the amount of the federal
11.11small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code
11.12which is included in gross income under section 87 of the Internal Revenue Code;
11.13    (8) (7) for individuals who are allowed a federal foreign tax credit for taxes that do
11.14not qualify for a credit under section 290.06, subdivision 22, an amount equal to the
11.15carryover of subnational foreign taxes for the taxable year, but not to exceed the total
11.16subnational foreign taxes reported in claiming the foreign tax credit. For purposes of
11.17this clause, "federal foreign tax credit" means the credit allowed under section 27 of the
11.18Internal Revenue Code, and "carryover of subnational foreign taxes" equals the carryover
11.19allowed under section 904(c) of the Internal Revenue Code minus national level foreign
11.20taxes to the extent they exceed the federal foreign tax credit;
11.21    (9) (8) in each of the five tax years immediately following the tax year in which an
11.22addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case
11.23of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
11.24of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
11.25the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or
11.26subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the
11.27positive value of any net operating loss under section 172 of the Internal Revenue Code
11.28generated for the tax year of the addition. The resulting delayed depreciation cannot be
11.29less than zero;
11.30    (10) (9) job opportunity building zone income as provided under section 469.316;
11.31    (11) (10) to the extent included in federal taxable income, the amount of
11.32compensation paid to members of the Minnesota National Guard or other reserve
11.33components of the United States military for active service performed in Minnesota,
11.34excluding compensation for services performed under the Active Guard Reserve (AGR)
11.35program. For purposes of this clause, "active service" means (i) state active service as
11.36defined in section 190.05, subdivision 5a, clause (1); (ii) federally funded state active
12.1service as defined in section 190.05, subdivision 5b; or (iii) federal active service as
12.2defined in section 190.05, subdivision 5c, but "active service" excludes service performed
12.3in accordance with section 190.08, subdivision 3;
12.4    (12) (11) to the extent included in federal taxable income, the amount of
12.5compensation paid to Minnesota residents who are members of the armed forces of the
12.6United States or United Nations for active duty performed outside Minnesota under United
12.7States Code, title 10, section 101(d); United States Code, title 32, section 101(12); or the
12.8authority of the United Nations;
12.9    (13) (12) an amount, not to exceed $10,000, equal to qualified expenses related to a
12.10qualified donor's donation, while living, of one or more of the qualified donor's organs
12.11to another person for human organ transplantation. For purposes of this clause, "organ"
12.12means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
12.13"human organ transplantation" means the medical procedure by which transfer of a human
12.14organ is made from the body of one person to the body of another person; "qualified
12.15expenses" means unreimbursed expenses for both the individual and the qualified donor
12.16for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
12.17may be subtracted under this clause only once; and "qualified donor" means the individual
12.18or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
12.19individual may claim the subtraction in this clause for each instance of organ donation for
12.20transplantation during the taxable year in which the qualified expenses occur;
12.21    (14) (13) in each of the five tax years immediately following the tax year in which an
12.22addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a
12.23shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
12.24addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the
12.25case of a shareholder of a corporation that is an S corporation, minus the positive value of
12.26any net operating loss under section 172 of the Internal Revenue Code generated for the
12.27tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
12.28subtraction is not allowed under this clause;
12.29    (15) (14) to the extent included in federal taxable income, compensation paid to a
12.30service member as defined in United States Code, title 10, section 101(a)(5), for military
12.31service as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section
12.32101(2);
12.33    (16) (15) international economic development zone income as provided under
12.34section 469.325;
12.35    (17) (16) to the extent included in federal taxable income, the amount of national
12.36service educational awards received from the National Service Trust under United States
13.1Code, title 42, sections 12601 to 12604, for service in an approved Americorps National
13.2Service program; and
13.3(18) (17) to the extent included in federal taxable income, discharge of indebtedness
13.4income resulting from reacquisition of business indebtedness included in federal taxable
13.5income under section 108(i) of the Internal Revenue Code. This subtraction applies only
13.6to the extent that the income was included in net income in a prior year as a result of the
13.7addition under section 290.01, subdivision 19a, clause (16).
13.8EFFECTIVE DATE.This section is effective the day following final enactment.

13.9    Sec. 11. Minnesota Statutes 2009 Supplement, section 290.01, subdivision 19d,
13.10is amended to read:
13.11    Subd. 19d. Corporations; modifications decreasing federal taxable income. For
13.12corporations, there shall be subtracted from federal taxable income after the increases
13.13provided in subdivision 19c:
13.14    (1) the amount of foreign dividend gross-up added to gross income for federal
13.15income tax purposes under section 78 of the Internal Revenue Code;
13.16    (2) the amount of salary expense not allowed for federal income tax purposes due to
13.17claiming the work opportunity credit under section 51 of the Internal Revenue Code;
13.18    (3) any dividend (not including any distribution in liquidation) paid within the
13.19taxable year by a national or state bank to the United States, or to any instrumentality of
13.20the United States exempt from federal income taxes, on the preferred stock of the bank
13.21owned by the United States or the instrumentality;
13.22    (4) amounts disallowed for intangible drilling costs due to differences between
13.23this chapter and the Internal Revenue Code in taxable years beginning before January
13.241, 1987, as follows:
13.25    (i) to the extent the disallowed costs are represented by physical property, an amount
13.26equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09,
13.27subdivision 7 , subject to the modifications contained in subdivision 19e; and
13.28    (ii) to the extent the disallowed costs are not represented by physical property, an
13.29amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section
13.30290.09, subdivision 8 ;
13.31    (5) the deduction for capital losses pursuant to sections 1211 and 1212 of the
13.32Internal Revenue Code, except that:
13.33    (i) for capital losses incurred in taxable years beginning after December 31, 1986,
13.34capital loss carrybacks shall not be allowed;
14.1    (ii) for capital losses incurred in taxable years beginning after December 31, 1986,
14.2a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
14.3allowed;
14.4    (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
14.5capital loss carryback to each of the three taxable years preceding the loss year, subject to
14.6the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and
14.7    (iv) for capital losses incurred in taxable years beginning before January 1, 1987,
14.8a capital loss carryover to each of the five taxable years succeeding the loss year to the
14.9extent such loss was not used in a prior taxable year and subject to the provisions of
14.10Minnesota Statutes 1986, section 290.16, shall be allowed;
14.11    (6) an amount for interest and expenses relating to income not taxable for federal
14.12income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
14.13expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
14.14291 of the Internal Revenue Code in computing federal taxable income;
14.15    (7) in the case of mines, oil and gas wells, other natural deposits, and timber for
14.16which percentage depletion was disallowed pursuant to subdivision 19c, clause (9), a
14.17reasonable allowance for depletion based on actual cost. In the case of leases the deduction
14.18must be apportioned between the lessor and lessee in accordance with rules prescribed
14.19by the commissioner. In the case of property held in trust, the allowable deduction must
14.20be apportioned between the income beneficiaries and the trustee in accordance with the
14.21pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
14.22of the trust's income allocable to each;
14.23    (8) for certified pollution control facilities placed in service in a taxable year
14.24beginning before December 31, 1986, and for which amortization deductions were elected
14.25under section 169 of the Internal Revenue Code of 1954, as amended through December
14.2631, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
14.271986, section 290.09, subdivision 7;
14.28    (9) amounts included in federal taxable income that are due to refunds of income,
14.29excise, or franchise taxes based on net income or related minimum taxes paid by the
14.30corporation to Minnesota, another state, a political subdivision of another state, the
14.31District of Columbia, or a foreign country or possession of the United States to the extent
14.32that the taxes were added to federal taxable income under section 290.01, subdivision 19c,
14.33clause (1), in a prior taxable year;
14.34    (10) 80 percent of royalties, fees, or other like income accrued or received from a
14.35foreign operating corporation or a foreign corporation which is part of the same unitary
14.36business as the receiving corporation, unless the income resulting from such payments or
15.1accruals is income from sources within the United States as defined in subtitle A, chapter
15.21, subchapter N, part 1, of the Internal Revenue Code;
15.3    (11) income or gains from the business of mining as defined in section 290.05,
15.4subdivision 1 , clause (a), that are not subject to Minnesota franchise tax;
15.5    (12) the amount of disability access expenditures in the taxable year which are not
15.6allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
15.7    (13) the amount of qualified research expenses not allowed for federal income tax
15.8purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that
15.9the amount exceeds the amount of the credit allowed under section 290.068;
15.10    (14) the amount of salary expenses not allowed for federal income tax purposes due
15.11to claiming the Indian employment credit under section 45A(a) of the Internal Revenue
15.12Code;
15.13    (15) for taxable years beginning before January 1, 2008, the amount of the federal
15.14small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code
15.15which is included in gross income under section 87 of the Internal Revenue Code;
15.16    (16) (15) for a corporation whose foreign sales corporation, as defined in section
15.17922 of the Internal Revenue Code, constituted a foreign operating corporation during any
15.18taxable year ending before January 1, 1995, and a return was filed by August 15, 1996,
15.19claiming the deduction under section 290.21, subdivision 4, for income received from
15.20the foreign operating corporation, an amount equal to 1.23 multiplied by the amount of
15.21income excluded under section 114 of the Internal Revenue Code, provided the income is
15.22not income of a foreign operating company;
15.23    (17) (16) any decrease in subpart F income, as defined in section 952(a) of the
15.24Internal Revenue Code, for the taxable year when subpart F income is calculated without
15.25regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
15.26    (18) (17) in each of the five tax years immediately following the tax year in which
15.27an addition is required under subdivision 19c, clause (15), an amount equal to one-fifth
15.28of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
15.29the amount of the addition made by the taxpayer under subdivision 19c, clause (15). The
15.30resulting delayed depreciation cannot be less than zero;
15.31    (19) (18) in each of the five tax years immediately following the tax year in which an
15.32addition is required under subdivision 19c, clause (16), an amount equal to one-fifth of
15.33the amount of the addition; and
15.34(20) (19) to the extent included in federal taxable income, discharge of indebtedness
15.35income resulting from reacquisition of business indebtedness included in federal taxable
15.36income under section 108(i) of the Internal Revenue Code. This subtraction applies only
16.1to the extent that the income was included in net income in a prior year as a result of the
16.2addition under section 290.01, subdivision 19c, clause (25).
16.3EFFECTIVE DATE.This section is effective the day following final enactment.

16.4    Sec. 12. Minnesota Statutes 2008, section 290.014, subdivision 2, is amended to read:
16.5    Subd. 2. Nonresident individuals. Except as provided in section 290.015, a
16.6nonresident individual is subject to the return filing requirements and to tax as provided in
16.7this chapter to the extent that the income of the nonresident individual is:
16.8(1) allocable to this state under section 290.17, 290.191, or 290.20;
16.9(2) taxed to the individual under the Internal Revenue Code (or not taxed under the
16.10Internal Revenue Code by reason of its character but of a character which is taxable under
16.11this chapter) in the individual's capacity as a beneficiary of an estate with income allocable
16.12to this state under section 290.17, 290.191, or 290.20 and the income, taking into account
16.13the income character provisions of section 662(b) of the Internal Revenue Code, would be
16.14allocable to this state under section 290.17, 290.191, or 290.20 if realized by the individual
16.15directly from the source from which realized by the estate;
16.16(3) taxed to the individual under the Internal Revenue Code (or not taxed under the
16.17Internal Revenue Code by reason of its character but of a character that is taxable under
16.18this chapter) in the individual's capacity as a beneficiary or grantor or other person treated
16.19as a substantial owner of a trust with income allocable to this state under section 290.17,
16.20290.191 , or 290.20 and the income, taking into account the income character provisions of
16.21section 652(b), 662(b), or 664(b) of the Internal Revenue Code, would be allocable to this
16.22state under section 290.17, 290.191, or 290.20 if realized by the individual directly from
16.23the source from which realized by the trust;
16.24(4) taxed to the individual under the Internal Revenue Code (or not taxed under the
16.25Internal Revenue Code by reason of its character but of a character which is taxable under
16.26this chapter) in the individual's capacity as a limited or general partner in a partnership
16.27with income allocable to this state under section 290.17, 290.191, or 290.20 and the
16.28income, taking into account the income character provisions of section 702(b) of the
16.29Internal Revenue Code, would be allocable to this state under section 290.17, 290.191,
16.30or 290.20 if realized by the individual directly from the source from which realized by
16.31the partnership; or
16.32(5) taxed to the individual under the Internal Revenue Code (or not taxed under the
16.33Internal Revenue Code by reason of its character but of a character which is taxable under
16.34this chapter) in the individual's capacity as a shareholder of a corporation treated as an
16.35"S" corporation under section 290.9725, and income allocable to this state under section
17.1290.17 , 290.191, or 290.20 and the income, taking into account the income character
17.2provisions of section 1366(b) of the Internal Revenue Code, would be allocable to this
17.3state under section 290.17, 290.191, or 290.20 if realized by the individual directly from
17.4the source from which realized by the corporation.; or
17.5(6) taxed to the individual under the Internal Revenue Code (or not taxed under the
17.6Internal Revenue Code by reason of its character but of a character which is taxable under
17.7this chapter) in the individual's capacity as the sole member of a limited liability company
17.8that is disregarded for federal income tax purposes, with income allocable to this state
17.9under section 290.17, 290.191, or 290.20, as though realized by the individual directly
17.10from the source from which it was realized by the limited liability company.
17.11EFFECTIVE DATE.This section is effective the day following final enactment.

17.12    Sec. 13. Minnesota Statutes 2009 Supplement, section 290.06, subdivision 2c, is
17.13amended to read:
17.14    Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income
17.15taxes imposed by this chapter upon married individuals filing joint returns and surviving
17.16spouses as defined in section 2(a) of the Internal Revenue Code must be computed by
17.17applying to their taxable net income the following schedule of rates:
17.18    (1) On the first $25,680, 5.35 percent;
17.19    (2) On all over $25,680, but not over $102,030, 7.05 percent;
17.20    (3) On all over $102,030, 7.85 percent.
17.21    Married individuals filing separate returns, estates, and trusts must compute their
17.22income tax by applying the above rates to their taxable income, except that the income
17.23brackets will be one-half of the above amounts.
17.24    (b) The income taxes imposed by this chapter upon unmarried individuals must be
17.25computed by applying to taxable net income the following schedule of rates:
17.26    (1) On the first $17,570, 5.35 percent;
17.27    (2) On all over $17,570, but not over $57,710, 7.05 percent;
17.28    (3) On all over $57,710, 7.85 percent.
17.29    (c) The income taxes imposed by this chapter upon unmarried individuals qualifying
17.30as a head of household as defined in section 2(b) of the Internal Revenue Code must be
17.31computed by applying to taxable net income the following schedule of rates:
17.32    (1) On the first $21,630, 5.35 percent;
17.33    (2) On all over $21,630, but not over $86,910, 7.05 percent;
17.34    (3) On all over $86,910, 7.85 percent.
18.1    (d) In lieu of a tax computed according to the rates set forth in this subdivision, the
18.2tax of any individual taxpayer whose taxable net income for the taxable year is less than
18.3an amount determined by the commissioner must be computed in accordance with tables
18.4prepared and issued by the commissioner of revenue based on income brackets of not
18.5more than $100. The amount of tax for each bracket shall be computed at the rates set
18.6forth in this subdivision, provided that the commissioner may disregard a fractional part of
18.7a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.
18.8    (e) An individual who is not a Minnesota resident for the entire year must compute
18.9the individual's Minnesota income tax as provided in this subdivision. After the
18.10application of the nonrefundable credits provided in this chapter, the tax liability must
18.11then be multiplied by a fraction in which:
18.12    (1) the numerator is the individual's Minnesota source federal adjusted gross income
18.13as defined in section 62 of the Internal Revenue Code and increased by the additions
18.14required under section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12),
18.15(13), (16), and (17), and reduced by the Minnesota assignable portion of the subtraction
18.16for United States government interest under section 290.01, subdivision 19b, clause
18.17(1), and the subtractions under section 290.01, subdivision 19b, clauses (9), (10), (14),
18.18(15), (16), and (18) (8), (9), (13), (14), (15), and (17), after applying the allocation and
18.19assignability provisions of section 290.081, clause (a), or 290.17; and
18.20    (2) the denominator is the individual's federal adjusted gross income as defined in
18.21section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
18.22section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), (13), (16), and
18.23(17), and reduced by the amounts specified in section 290.01, subdivision 19b, clauses (1),
18.24(9), (10), (14), (15), (16), and (18) (8), (9), (13), (14), (15), and (17).
18.25EFFECTIVE DATE.This section is effective the day following final enactment.

18.26    Sec. 14. Minnesota Statutes 2008, section 290.067, subdivision 1, is amended to read:
18.27    Subdivision 1. Amount of credit. (a) A taxpayer may take as a credit against the
18.28tax due from the taxpayer and a spouse, if any, under this chapter an amount equal to the
18.29dependent care credit for which the taxpayer is eligible pursuant to the provisions of
18.30section 21 of the Internal Revenue Code subject to the limitations provided in subdivision
18.312 except that in determining whether the child qualified as a dependent, income received
18.32as a Minnesota family investment program grant or allowance to or on behalf of the child
18.33must not be taken into account in determining whether the child received more than half
18.34of the child's support from the taxpayer, and the provisions of section 32(b)(1)(D) of
18.35the Internal Revenue Code do not apply.
19.1(b) If a child who has not attained the age of six years at the close of the taxable year
19.2is cared for at a licensed family day care home operated by the child's parent, the taxpayer
19.3is deemed to have paid employment-related expenses. If the child is 16 months old or
19.4younger at the close of the taxable year, the amount of expenses deemed to have been paid
19.5equals the maximum limit for one qualified individual under section 21(c) and (d) of the
19.6Internal Revenue Code. If the child is older than 16 months of age but has not attained the
19.7age of six years at the close of the taxable year, the amount of expenses deemed to have
19.8been paid equals the amount the licensee would charge for the care of a child of the same
19.9age for the same number of hours of care.
19.10(c) If a married couple:
19.11(1) has a child who has not attained the age of one year at the close of the taxable
19.12year;
19.13(2) files a joint tax return for the taxable year; and
19.14(3) does not participate in a dependent care assistance program as defined in section
19.15129 of the Internal Revenue Code, in lieu of the actual employment related expenses paid
19.16for that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of
19.17(i) the combined earned income of the couple or (ii) the amount of the maximum limit for
19.18one qualified individual under section 21(c) and (d) of the Internal Revenue Code will
19.19be deemed to be the employment related expense paid for that child. The earned income
19.20limitation of section 21(d) of the Internal Revenue Code shall not apply to this deemed
19.21amount. These deemed amounts apply regardless of whether any employment-related
19.22expenses have been paid.
19.23(d) If the taxpayer is not required and does not file a federal individual income tax
19.24return for the tax year, no credit is allowed for any amount paid to any person unless:
19.25(1) the name, address, and taxpayer identification number of the person are included
19.26on the return claiming the credit; or
19.27(2) if the person is an organization described in section 501(c)(3) of the Internal
19.28Revenue Code and exempt from tax under section 501(a) of the Internal Revenue Code,
19.29the name and address of the person are included on the return claiming the credit.
19.30In the case of a failure to provide the information required under the preceding sentence,
19.31the preceding sentence does not apply if it is shown that the taxpayer exercised due
19.32diligence in attempting to provide the information required.
19.33In the case of a nonresident, part-year resident, or a person who has earned income
19.34not subject to tax under this chapter including earned income excluded pursuant to section
19.35290.01, subdivision 19b , clause (10) (9) or (16) (15), the credit determined under section
19.3621 of the Internal Revenue Code must be allocated based on the ratio by which the earned
20.1income of the claimant and the claimant's spouse from Minnesota sources bears to the
20.2total earned income of the claimant and the claimant's spouse.
20.3For residents of Minnesota, the subtractions for military pay under section 290.01,
20.4subdivision 19b , clauses (11) (10) and (12) (11), are not considered "earned income not
20.5subject to tax under this chapter."
20.6For residents of Minnesota, the exclusion of combat pay under section 112 of the
20.7Internal Revenue Code is not considered "earned income not subject to tax under this
20.8chapter."
20.9EFFECTIVE DATE.This section is effective the day following final enactment.

20.10    Sec. 15. Minnesota Statutes 2009 Supplement, section 290.0671, subdivision 1,
20.11is amended to read:
20.12    Subdivision 1. Credit allowed. (a) An individual is allowed a credit against the tax
20.13imposed by this chapter equal to a percentage of earned income. To receive a credit, a
20.14taxpayer must be eligible for a credit under section 32 of the Internal Revenue Code.
20.15(b) For individuals with no qualifying children, the credit equals 1.9125 percent of
20.16the first $4,620 of earned income. The credit is reduced by 1.9125 percent of earned
20.17income or adjusted gross income, whichever is greater, in excess of $5,770, but in no
20.18case is the credit less than zero.
20.19(c) For individuals with one qualifying child, the credit equals 8.5 percent of the first
20.20$6,920 of earned income and 8.5 percent of earned income over $12,080 but less than
20.21$13,450. The credit is reduced by 5.73 percent of earned income or adjusted gross income,
20.22whichever is greater, in excess of $15,080, but in no case is the credit less than zero.
20.23(d) For individuals with two or more qualifying children, the credit equals ten
20.24percent of the first $9,720 of earned income and 20 percent of earned income over
20.25$14,860 but less than $16,800. The credit is reduced by 10.3 percent of earned income
20.26or adjusted gross income, whichever is greater, in excess of $17,890, but in no case is
20.27the credit less than zero.
20.28(e) For a nonresident or part-year resident, the credit must be allocated based on the
20.29percentage calculated under section 290.06, subdivision 2c, paragraph (e).
20.30(f) For a person who was a resident for the entire tax year and has earned income
20.31not subject to tax under this chapter, including income excluded under section 290.01,
20.32subdivision 19b , clause (10) (9) or (16) (15), the credit must be allocated based on the
20.33ratio of federal adjusted gross income reduced by the earned income not subject to tax
20.34under this chapter over federal adjusted gross income. For purposes of this paragraph, the
21.1subtractions for military pay under section 290.01, subdivision 19b, clauses (11) (10) and
21.2(12) (11), are not considered "earned income not subject to tax under this chapter."
21.3For the purposes of this paragraph, the exclusion of combat pay under section 112
21.4of the Internal Revenue Code is not considered "earned income not subject to tax under
21.5this chapter."
21.6(g) For tax years beginning after December 31, 2007, and before December 31,
21.72010, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in
21.8paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by
21.9$3,000 for married taxpayers filing joint returns. For tax years beginning after December
21.1031, 2008, the commissioner shall annually adjust the $3,000 by the percentage determined
21.11pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in
21.12section 1(f)(3)(B), the word "2007" shall be substituted for the word "1992." For 2009,
21.13the commissioner shall then determine the percent change from the 12 months ending on
21.14August 31, 2007, to the 12 months ending on August 31, 2008, and in each subsequent
21.15year, from the 12 months ending on August 31, 2007, to the 12 months ending on August
21.1631 of the year preceding the taxable year. The earned income thresholds as adjusted
21.17for inflation must be rounded to the nearest $10. If the amount ends in $5, the amount
21.18is rounded up to the nearest $10. The determination of the commissioner under this
21.19subdivision is not a rule under the Administrative Procedure Act.
21.20(h) The commissioner shall construct tables showing the amount of the credit at
21.21various income levels and make them available to taxpayers. The tables shall follow
21.22the schedule contained in this subdivision, except that the commissioner may graduate
21.23the transition between income brackets.
21.24EFFECTIVE DATE.This section is effective the day following final enactment.

21.25    Sec. 16. Minnesota Statutes 2009 Supplement, section 290.091, subdivision 2, is
21.26amended to read:
21.27    Subd. 2. Definitions. For purposes of the tax imposed by this section, the following
21.28terms have the meanings given:
21.29    (a) "Alternative minimum taxable income" means the sum of the following for
21.30the taxable year:
21.31    (1) the taxpayer's federal alternative minimum taxable income as defined in section
21.3255(b)(2) of the Internal Revenue Code;
21.33    (2) the taxpayer's itemized deductions allowed in computing federal alternative
21.34minimum taxable income, but excluding:
22.1    (i) the charitable contribution deduction under section 170 of the Internal Revenue
22.2Code;
22.3    (ii) the medical expense deduction;
22.4    (iii) the casualty, theft, and disaster loss deduction; and
22.5    (iv) the impairment-related work expenses of a disabled person;
22.6    (3) for depletion allowances computed under section 613A(c) of the Internal
22.7Revenue Code, with respect to each property (as defined in section 614 of the Internal
22.8Revenue Code), to the extent not included in federal alternative minimum taxable income,
22.9the excess of the deduction for depletion allowable under section 611 of the Internal
22.10Revenue Code for the taxable year over the adjusted basis of the property at the end of the
22.11taxable year (determined without regard to the depletion deduction for the taxable year);
22.12    (4) to the extent not included in federal alternative minimum taxable income, the
22.13amount of the tax preference for intangible drilling cost under section 57(a)(2) of the
22.14Internal Revenue Code determined without regard to subparagraph (E);
22.15    (5) to the extent not included in federal alternative minimum taxable income, the
22.16amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and
22.17    (6) the amount of addition required by section 290.01, subdivision 19a, clauses (7)
22.18to (9), (12), (13), (16), and (17);
22.19    less the sum of the amounts determined under the following:
22.20    (1) interest income as defined in section 290.01, subdivision 19b, clause (1);
22.21    (2) an overpayment of state income tax as provided by section 290.01, subdivision
22.2219b , clause (2), to the extent included in federal alternative minimum taxable income;
22.23    (3) the amount of investment interest paid or accrued within the taxable year on
22.24indebtedness to the extent that the amount does not exceed net investment income, as
22.25defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include
22.26amounts deducted in computing federal adjusted gross income; and
22.27    (4) amounts subtracted from federal taxable income as provided by section 290.01,
22.28subdivision 19b , clauses (6), (9) (8) to (16) (15), and (18) (17).
22.29    In the case of an estate or trust, alternative minimum taxable income must be
22.30computed as provided in section 59(c) of the Internal Revenue Code.
22.31    (b) "Investment interest" means investment interest as defined in section 163(d)(3)
22.32of the Internal Revenue Code.
22.33    (c) "Net minimum tax" means the minimum tax imposed by this section.
22.34    (d) "Regular tax" means the tax that would be imposed under this chapter (without
22.35regard to this section and section 290.032), reduced by the sum of the nonrefundable
22.36credits allowed under this chapter.
23.1    (e) "Tentative minimum tax" equals 6.4 percent of alternative minimum taxable
23.2income after subtracting the exemption amount determined under subdivision 3.
23.3EFFECTIVE DATE.This section is effective the day following final enactment.

23.4    Sec. 17. Minnesota Statutes 2008, section 290.0921, subdivision 3, is amended to read:
23.5    Subd. 3. Alternative minimum taxable income. "Alternative minimum taxable
23.6income" is Minnesota net income as defined in section 290.01, subdivision 19, and
23.7includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e),
23.8(f), and (h) of the Internal Revenue Code. If a corporation files a separate company
23.9Minnesota tax return, the minimum tax must be computed on a separate company basis.
23.10If a corporation is part of a tax group filing a unitary return, the minimum tax must be
23.11computed on a unitary basis. The following adjustments must be made.
23.12(1) For purposes of the depreciation adjustments under section 56(a)(1) and
23.1356(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in
23.14service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal
23.15income tax purposes, including any modification made in a taxable year under section
23.16290.01, subdivision 19e , or Minnesota Statutes 1986, section 290.09, subdivision 7,
23.17paragraph (c).
23.18For taxable years beginning after December 31, 2000, the amount of any remaining
23.19modification made under section 290.01, subdivision 19e, or Minnesota Statutes 1986,
23.20section 290.09, subdivision 7, paragraph (c), not previously deducted is a depreciation
23.21allowance in the first taxable year after December 31, 2000.
23.22(2) The portion of the depreciation deduction allowed for federal income tax
23.23purposes under section 168(k) of the Internal Revenue Code that is required as an
23.24addition under section 290.01, subdivision 19c, clause (15), is disallowed in determining
23.25alternative minimum taxable income.
23.26(3) The subtraction for depreciation allowed under section 290.01, subdivision
23.2719d , clause (18) (17), is allowed as a depreciation deduction in determining alternative
23.28minimum taxable income.
23.29(4) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d)
23.30of the Internal Revenue Code does not apply.
23.31(5) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal
23.32Revenue Code does not apply.
23.33(6) The special rule for dividends from section 936 companies under section
23.3456(g)(4)(C)(iii) does not apply.
24.1(7) The tax preference for depletion under section 57(a)(1) of the Internal Revenue
24.2Code does not apply.
24.3(8) The tax preference for intangible drilling costs under section 57(a)(2) of the
24.4Internal Revenue Code must be calculated without regard to subparagraph (E) and the
24.5subtraction under section 290.01, subdivision 19d, clause (4).
24.6(9) The tax preference for tax exempt interest under section 57(a)(5) of the Internal
24.7Revenue Code does not apply.
24.8(10) The tax preference for charitable contributions of appreciated property under
24.9section 57(a)(6) of the Internal Revenue Code does not apply.
24.10(11) For purposes of calculating the tax preference for accelerated depreciation or
24.11amortization on certain property placed in service before January 1, 1987, under section
24.1257(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the
24.13deduction allowed under section 290.01, subdivision 19e.
24.14For taxable years beginning after December 31, 2000, the amount of any remaining
24.15modification made under section 290.01, subdivision 19e, not previously deducted is a
24.16depreciation or amortization allowance in the first taxable year after December 31, 2004.
24.17(12) For purposes of calculating the adjustment for adjusted current earnings in
24.18section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable
24.19income" as it is used in section 56(g) of the Internal Revenue Code, means alternative
24.20minimum taxable income as defined in this subdivision, determined without regard to the
24.21adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.
24.22(13) For purposes of determining the amount of adjusted current earnings under
24.23section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section
24.2456(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend
24.25gross-up subtracted as provided in section 290.01, subdivision 19d, clause (1), (ii) the
24.26amount of refunds of income, excise, or franchise taxes subtracted as provided in section
24.27290.01, subdivision 19d , clause (9), or (iii) the amount of royalties, fees or other like
24.28income subtracted as provided in section 290.01, subdivision 19d, clause (10).
24.29(14) Alternative minimum taxable income excludes the income from operating in a
24.30job opportunity building zone as provided under section 469.317.
24.31(15) Alternative minimum taxable income excludes the income from operating in a
24.32biotechnology and health sciences industry zone as provided under section 469.337.
24.33(16) Alternative minimum taxable income excludes the income from operating in an
24.34international economic development zone as provided under section 469.326.
24.35Items of tax preference must not be reduced below zero as a result of the
24.36modifications in this subdivision.
25.1EFFECTIVE DATE.This section is effective the day following final enactment.

25.2    Sec. 18. Minnesota Statutes 2008, section 290.17, subdivision 2, is amended to read:
25.3    Subd. 2. Income not derived from conduct of a trade or business. The income of
25.4a taxpayer subject to the allocation rules that is not derived from the conduct of a trade or
25.5business must be assigned in accordance with paragraphs (a) to (f):
25.6    (a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in
25.7section 3401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to the
25.8extent that, the work of the employee is performed within it; all other income from such
25.9sources is treated as income from sources without this state.
25.10    Severance pay shall be considered income from labor or personal or professional
25.11services.
25.12    (2) In the case of an individual who is a nonresident of Minnesota and who is an
25.13athlete or entertainer, income from compensation for labor or personal services performed
25.14within this state shall be determined in the following manner:
25.15    (i) The amount of income to be assigned to Minnesota for an individual who is a
25.16nonresident salaried athletic team employee shall be determined by using a fraction in
25.17which the denominator contains the total number of days in which the individual is under
25.18a duty to perform for the employer, and the numerator is the total number of those days
25.19spent in Minnesota. For purposes of this paragraph, off-season training activities, unless
25.20conducted at the team's facilities as part of a team imposed program, are not included in
25.21the total number of duty days. Bonuses earned as a result of play during the regular season
25.22or for participation in championship, play-off, or all-star games must be allocated under
25.23the formula. Signing bonuses are not subject to allocation under the formula if they are
25.24not conditional on playing any games for the team, are payable separately from any other
25.25compensation, and are nonrefundable; and
25.26    (ii) The amount of income to be assigned to Minnesota for an individual who is a
25.27nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's
25.28athletic or entertainment performance in Minnesota shall be determined by assigning to
25.29this state all income from performances or athletic contests in this state.
25.30    (3) For purposes of this section, amounts received by a nonresident as "retirement
25.31income" as defined in section (b)(1) of the State Income Taxation of Pension Income
25.32Act, Public Law 104-95, are not considered income derived from carrying on a trade
25.33or business or from wages or other compensation for work an employee performed in
25.34Minnesota, and are not taxable under this chapter.
26.1    (b) Income or gains from tangible property located in this state that is not employed
26.2in the business of the recipient of the income or gains must be assigned to this state.
26.3    (c) Income or gains from intangible personal property not employed in the business
26.4of the recipient of the income or gains must be assigned to this state if the recipient of the
26.5income or gains is a resident of this state or is a resident trust or estate.
26.6    Gain on the sale of a partnership interest is allocable to this state in the ratio of the
26.7original cost of partnership tangible property in this state to the original cost of partnership
26.8tangible property everywhere, determined at the time of the sale. If more than 50 percent
26.9of the value of the partnership's assets consists of intangibles, gain or loss from the sale
26.10of the partnership interest is allocated to this state in accordance with the sales factor of
26.11the partnership for its first full tax period immediately preceding the tax period of the
26.12partnership during which the partnership interest was sold.
26.13Gain on the sale of an interest in a single member limited liability company that
26.14is disregarded for federal income tax purposes is allocable to this state as if the single
26.15member limited liability company did not exist and the assets of the limited liability
26.16company are personally owned by the sole member.
26.17    Gain on the sale of goodwill or income from a covenant not to compete that is
26.18connected with a business operating all or partially in Minnesota is allocated to this state
26.19to the extent that the income from the business in the year preceding the year of sale was
26.20assignable to Minnesota under subdivision 3.
26.21    When an employer pays an employee for a covenant not to compete, the income
26.22allocated to this state is in the ratio of the employee's service in Minnesota in the calendar
26.23year preceding leaving the employment of the employer over the total services performed
26.24by the employee for the employer in that year.
26.25    (d) Income from winnings on a bet made by an individual while in Minnesota is
26.26assigned to this state. In this paragraph, "bet" has the meaning given in section 609.75,
26.27subdivision 2 , as limited by section 609.75, subdivision 3, clauses (1), (2), and (3).
26.28    (e) All items of gross income not covered in paragraphs (a) to (d) and not part of the
26.29taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.
26.30    (f) For the purposes of this section, working as an employee shall not be considered
26.31to be conducting a trade or business.
26.32EFFECTIVE DATE.This section is effective the day following final enactment.

26.33    Sec. 19. Minnesota Statutes 2008, section 290.21, subdivision 4, is amended to read:
26.34    Subd. 4. Dividends received from another corporation. (a)(1) Eighty percent
26.35of dividends received by a corporation during the taxable year from another corporation,
27.1in which the recipient owns 20 percent or more of the stock, by vote and value, not
27.2including stock described in section 1504(a)(4) of the Internal Revenue Code when the
27.3corporate stock with respect to which dividends are paid does not constitute the stock in
27.4trade of the taxpayer or would not be included in the inventory of the taxpayer, or does not
27.5constitute property held by the taxpayer primarily for sale to customers in the ordinary
27.6course of the taxpayer's trade or business, or when the trade or business of the taxpayer
27.7does not consist principally of the holding of the stocks and the collection of the income
27.8and gains therefrom; and
27.9    (2)(i) the remaining 20 percent of dividends if the dividends received are the stock in
27.10an affiliated company transferred in an overall plan of reorganization and the dividend
27.11is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as
27.12amended through December 31, 1989;
27.13    (ii) the remaining 20 percent of dividends if the dividends are received from a
27.14corporation which is subject to tax under section 290.36 and which is a member of an
27.15affiliated group of corporations as defined by the Internal Revenue Code and the dividend
27.16is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as
27.17amended through December 31, 1989, or is deducted under an election under section
27.18243(b) of the Internal Revenue Code; or
27.19    (iii) the remaining 20 percent of the dividends if the dividends are received from a
27.20property and casualty insurer as defined under section 60A.60, subdivision 8, which is a
27.21member of an affiliated group of corporations as defined by the Internal Revenue Code
27.22and either: (A) the dividend is eliminated in consolidation under Treasury Regulation
27.231.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted
27.24under an election under section 243(b) of the Internal Revenue Code.
27.25    (b) Seventy percent of dividends received by a corporation during the taxable year
27.26from another corporation in which the recipient owns less than 20 percent of the stock,
27.27by vote or value, not including stock described in section 1504(a)(4) of the Internal
27.28Revenue Code when the corporate stock with respect to which dividends are paid does not
27.29constitute the stock in trade of the taxpayer, or does not constitute property held by the
27.30taxpayer primarily for sale to customers in the ordinary course of the taxpayer's trade or
27.31business, or when the trade or business of the taxpayer does not consist principally of the
27.32holding of the stocks and the collection of income and gain therefrom.
27.33    (c) The dividend deduction provided in this subdivision shall be allowed only with
27.34respect to dividends that are included in a corporation's Minnesota taxable net income
27.35for the taxable year.
28.1    The dividend deduction provided in this subdivision does not apply to a dividend
28.2from a corporation which, for the taxable year of the corporation in which the distribution
28.3is made or for the next preceding taxable year of the corporation, is a corporation exempt
28.4from tax under section 501 of the Internal Revenue Code.
28.5    The dividend deduction provided in this subdivision applies to the amount of
28.6regulated investment company dividends only to the extent determined under section
28.7854(b) of the Internal Revenue Code.
28.8    The dividend deduction provided in this subdivision shall not be allowed with
28.9respect to any dividend for which a deduction is not allowed under the provisions of
28.10section 246(c) of the Internal Revenue Code.
28.11    (d) If dividends received by a corporation that does not have nexus with Minnesota
28.12under the provisions of Public Law 86-272 are included as income on the return of
28.13an affiliated corporation permitted or required to file a combined report under section
28.14290.17, subdivision 4 , or 290.34, subdivision 2, then for purposes of this subdivision the
28.15determination as to whether the trade or business of the corporation consists principally
28.16of the holding of stocks and the collection of income and gains therefrom shall be made
28.17with reference to the trade or business of the affiliated corporation having a nexus with
28.18Minnesota.
28.19    (e) The deduction provided by this subdivision does not apply if the dividends are
28.20paid by a FSC as defined in section 922 of the Internal Revenue Code.
28.21    (f) If one or more of the members of the unitary group whose income is included on
28.22the combined report received a dividend, the deduction under this subdivision for each
28.23member of the unitary business required to file a return under this chapter is the product
28.24of: (1) 100 percent of the dividends received by members of the group; (2) the percentage
28.25allowed pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's business
28.26income apportionable to this state for the taxable year under section 290.191 or 290.20.
28.27(g) The deduction provided by this subdivision does not apply to dividends received
28.28from a real estate investment trust, if the dividends are not considered to be dividends
28.29under section 243(d)(3) and section 857(c) of the Internal Revenue Code.
28.30EFFECTIVE DATE.This section is effective for taxable years beginning after
28.31December 31, 2009.

28.32    Sec. 20. Minnesota Statutes 2009 Supplement, section 291.005, subdivision 1, is
28.33amended to read:
28.34    Subdivision 1. Scope. Unless the context otherwise clearly requires, the following
28.35terms used in this chapter shall have the following meanings:
29.1    (1) "Commissioner" means the commissioner of revenue or any person to whom the
29.2commissioner has delegated functions under this chapter.
29.3    (2) "Federal gross estate" means the gross estate of a decedent as required to
29.4be valued and otherwise determined for federal estate tax purposes by federal taxing
29.5authorities pursuant to the provisions of under the Internal Revenue Code.
29.6    (3) "Internal Revenue Code" means the United States Internal Revenue Code of
29.71986, as amended through March 31, 2009, but without regard to the provisions of
29.8sections 501 and 901 of Public Law 107-16.
29.9    (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
29.10defined by section 2011(b)(3) of the Internal Revenue Code, increased by the amount of
29.11deduction for state death taxes allowed under section 2058 of the Internal Revenue Code.
29.12    (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
29.13excluding therefrom any property included therein which has its situs outside Minnesota,
29.14and (b) including therein any property omitted from the federal gross estate which is
29.15includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
29.16authorities.
29.17    (6) "Nonresident decedent" means an individual whose domicile at the time of
29.18death was not in Minnesota.
29.19    (7) "Personal representative" means the executor, administrator or other person
29.20appointed by the court to administer and dispose of the property of the decedent. If there
29.21is no executor, administrator or other person appointed, qualified, and acting within this
29.22state, then any person in actual or constructive possession of any property having a situs in
29.23this state which is included in the federal gross estate of the decedent shall be deemed
29.24to be a personal representative to the extent of the property and the Minnesota estate tax
29.25due with respect to the property.
29.26    (8) "Resident decedent" means an individual whose domicile at the time of death
29.27was in Minnesota.
29.28    (9) "Situs of property" means, with respect to real property, the state or country in
29.29which it is located; with respect to tangible personal property, the state or country in which
29.30it was normally kept or located at the time of the decedent's death; and with respect to
29.31intangible personal property, the state or country in which the decedent was domiciled
29.32at death. For a nonresident decedent with an ownership interest in a pass-through entity
29.33with assets that include real or tangible personal property, situs of the real or tangible
29.34personal property is determined as if the pass-through entity does not exist and the real
29.35or tangible personal property is personally owned by the decedent. If the pass-through
29.36entity is owned by a person or persons in addition to the decedent, ownership of the
30.1property is attributed to the decedent in proportion to the decedent's capital ownership
30.2share of the pass-through entity.
30.3(10) "Pass-through entity" includes the following:
30.4(i) an entity electing S corporation status under section 1362 of the Internal Revenue
30.5Code;
30.6(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
30.7(iii) a single member limited liability company or similar entity, regardless of
30.8whether it is taxed as an association or is disregarded for federal income tax purposes
30.9under Code of Federal Regulations, title 26, section 301.7701-3; or
30.10(iv) a trust.
30.11EFFECTIVE DATE.The change in paragraph (3) is effective the day following
30.12final enactment and applies regardless of when the decedent dies. The changes in
30.13paragraphs (6) and (10) are effective for estates of decedents dying after December 31,
30.142009. This section is effective for estates of decedents dying after December 31, 2009.

30.15    Sec. 21. [524.2-712] DECEDENTS DYING AFTER DECEMBER 31, 2009,
30.16AND BEFORE JANUARY 1, 2011; CONSTRUCTION OF CERTAIN FORMULA
30.17CLAUSES BY REFERENCE TO FEDERAL TRANSFER TAX LAW.
30.18(a) A governing instrument, including a will or trust agreement, of a decedent who
30.19dies after December 31, 2009, and before January 1, 2011, that contains a formula or
30.20provision referring to the "unified credit," "estate tax exemption," "applicable exemption
30.21amount," "applicable credit amount," "applicable exclusion amount," "generation-skipping
30.22transfer tax exemption," "GST exemption," "marital deduction," "maximum marital
30.23deduction," "unlimited marital deduction," "inclusion ratio," "applicable fraction," or
30.24any section of the Internal Revenue Code relating to the federal estate tax or federal
30.25generation-skipping transfer tax, or that measures a share of an estate or trust by reference
30.26to federal estate taxes or federal generation-skipping transfer taxes, is deemed to refer to
30.27the federal estate tax and the federal generation-skipping transfer tax laws as they applied
30.28with respect to the estates of decedents dying on December 31, 2009. This paragraph does
30.29not apply to a governing instrument, including a will or trust agreement, that manifests
30.30an intent that a contrary rule applies if the decedent dies on a date on which there is no
30.31then-applicable federal estate or federal generation-skipping transfer tax.
30.32(b) If the federal estate or federal generation-skipping transfer tax becomes effective
30.33before January 1, 2011, then the reference to January 1, 2011, in paragraph (a) instead
30.34refers to the first date on which the tax becomes legally effective.
31.1(c) The personal representative, trustee, or any interested person under the governing
31.2instrument, including a will or trust agreement, may bring a proceeding to determine
31.3whether the decedent intended that a formula or provision described in paragraph (a) be
31.4construed with respect to the law as it existed after December 31, 2009. Such a proceeding
31.5must be commenced by December 31, 2011.
31.6EFFECTIVE DATE.This section is effective on January 1, 2010.


31.9    Section 1. Minnesota Statutes 2008, section 289A.50, subdivision 2, is amended to
31.10read:
31.11    Subd. 2. Refund of sales tax to vendors; limitation. (a) If a vendor has collected
31.12from a purchaser and remitted to the state a tax on a transaction that is not subject to the
31.13tax imposed by chapter 297A, the tax is refundable to the vendor only if and to the extent
31.14that the tax and any interest earned on the tax is credited to amounts due to the vendor by
31.15the purchaser or returned to the purchaser by the vendor.
31.16(b) In addition to the requirements of subdivision 1, a claim for refund under this
31.17subdivision must state in writing that the tax and interest earned on the tax has been or
31.18will be refunded or credited to the purchaser by the vendor.
31.19(c) Within 60 days after the date the commissioner issues the refund, any amount not
31.20refunded or credited to the purchaser by the vendor, as required by paragraph (a), must be
31.21returned to the commissioner by the vendor.
31.22(d) After the commissioner refunds the tax and interest to the vendor, if the
31.23commissioner determines that the vendor did not refund or credit the tax and interest as
31.24provided in this subdivision, or did not return the amount required to be returned under
31.25paragraph (c), the commissioner may assess the vendor for underpayment of tax and
31.26interest equal to that portion of the amount that was not refunded or credited to the
31.27purchaser. The assessment bears interest which is computed at the rate specified in section
31.28270C.40, subdivision 5, on the unpaid amount from the date the commissioner issues the
31.29refund until the date the amount is paid to the commissioner. The assessment may be made
31.30at any time within 3-1/2 years after the commissioner refunds the tax and interest to the
31.31vendor. If part of the refund was induced by fraud or misrepresentation of a material fact,
31.32the assessment may be made at any time.
31.33EFFECTIVE DATE.This section is effective for refunds issued after June 30, 2010.

32.1    Sec. 2. Minnesota Statutes 2008, section 297A.61, subdivision 3, is amended to read:
32.2    Subd. 3. Sale and purchase. (a) "Sale" and "purchase" include, but are not limited
32.3to, each of the transactions listed in this subdivision.
32.4    (b) Sale and purchase include:
32.5    (1) any transfer of title or possession, or both, of tangible personal property, whether
32.6absolutely or conditionally, for a consideration in money or by exchange or barter; and
32.7    (2) the leasing of or the granting of a license to use or consume, for a consideration
32.8in money or by exchange or barter, tangible personal property, other than a manufactured
32.9home used for residential purposes for a continuous period of 30 days or more.
32.10    (c) Sale and purchase include the production, fabrication, printing, or processing of
32.11tangible personal property for a consideration for consumers who furnish either directly or
32.12indirectly the materials used in the production, fabrication, printing, or processing.
32.13    (d) Sale and purchase include the preparing for a consideration of food.
32.14Notwithstanding section 297A.67, subdivision 2, taxable food includes, but is not limited
32.15to, the following:
32.16    (1) prepared food sold by the retailer;
32.17    (2) soft drinks;
32.18    (3) candy;
32.19    (4) dietary supplements; and
32.20    (5) all food sold through vending machines.
32.21    (e) A sale and a purchase includes the furnishing for a consideration of electricity,
32.22gas, water, or steam for use or consumption within this state.
32.23    (f) A sale and a purchase includes the transfer for a consideration of prewritten
32.24computer software whether delivered electronically, by load and leave, or otherwise.
32.25    (g) A sale and a purchase includes the furnishing for a consideration of the following
32.26services:
32.27    (1) the privilege of admission to places of amusement, recreational areas, or athletic
32.28events, and the making available of amusement devices, tanning facilities, reducing
32.29salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;
32.30    (2) lodging and related services by a hotel, rooming house, resort, campground,
32.31motel, or trailer camp, including furnishing the guest of the facility with access to
32.32telecommunication services, and the granting of any similar license to use real property
32.33in a specific facility, other than the renting or leasing of it for a continuous period of
32.3430 days or more under an enforceable written agreement that may not be terminated
32.35without prior notice;
33.1    (3) nonresidential parking services, whether on a contractual, hourly, or other
33.2periodic basis, except for parking at a meter;
33.3    (4) the granting of membership in a club, association, or other organization if:
33.4    (i) the club, association, or other organization makes available for the use of its
33.5members sports and athletic facilities, without regard to whether a separate charge is
33.6assessed for use of the facilities; and
33.7    (ii) use of the sports and athletic facility is not made available to the general public
33.8on the same basis as it is made available to members.
33.9Granting of membership means both onetime initiation fees and periodic membership
33.10dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and
33.11squash courts; basketball and volleyball facilities; running tracks; exercise equipment;
33.12swimming pools; and other similar athletic or sports facilities;
33.13    (5) delivery of aggregate materials by a third party, excluding delivery of aggregate
33.14material used in road construction, and delivery of concrete block by a third party if
33.15the delivery would be subject to the sales tax if provided by the seller of the concrete
33.16block; and
33.17    (6) services as provided in this clause:
33.18    (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
33.19and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
33.20drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
33.21include services provided by coin operated facilities operated by the customer;
33.22    (ii) motor vehicle washing, waxing, and cleaning services, including services
33.23provided by coin operated facilities operated by the customer, and rustproofing,
33.24undercoating, and towing of motor vehicles;
33.25    (iii) building and residential cleaning, maintenance, and disinfecting services and
33.26pest control and exterminating services;
33.27    (iv) detective, security, burglar, fire alarm, and armored car services; but not
33.28including services performed within the jurisdiction they serve by off-duty licensed peace
33.29officers as defined in section 626.84, subdivision 1, or services provided by a nonprofit
33.30organization for monitoring and electronic surveillance of persons placed on in-home
33.31detention pursuant to court order or under the direction of the Minnesota Department
33.32of Corrections;
33.33    (v) pet grooming services;
33.34    (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
33.35and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor
33.36plant care; tree, bush, shrub, and stump removal, except when performed as part of a land
34.1clearing contract as defined in section 297A.68, subdivision 40; and tree trimming for
34.2public utility lines. Services performed under a construction contract for the installation of
34.3shrubbery, plants, sod, trees, bushes, and similar items are not taxable;
34.4    (vii) massages, except when provided by a licensed health care facility or
34.5professional or upon written referral from a licensed health care facility or professional for
34.6treatment of illness, injury, or disease; and
34.7    (viii) the furnishing of lodging, board, and care services for animals in kennels and
34.8other similar arrangements, but excluding veterinary and horse boarding services.
34.9    In applying the provisions of this chapter, the terms "tangible personal property"
34.10and "retail sale" include taxable services listed in clause (6), items (i) to (vi) and (viii),
34.11and the provision of these taxable services, unless specifically provided otherwise.
34.12Services performed by an employee for an employer are not taxable. Services performed
34.13by a partnership or association for another partnership or association are not taxable if
34.14one of the entities owns or controls more than 80 percent of the voting power of the
34.15equity interest in the other entity. Services performed between members of an affiliated
34.16group of corporations are not taxable. For purposes of the preceding sentence, "affiliated
34.17group of corporations" means those entities that would be classified as members of an
34.18affiliated group as defined under United States Code, title 26, section 1504, disregarding
34.19the exclusions in section 1504(b).
34.20    For purposes of clause (5), "road construction" means construction of (1) public
34.21roads, (2) cartways, and (3) private roads in townships located outside of the seven-county
34.22metropolitan area up to the point of the emergency response location sign.
34.23    (h) A sale and a purchase includes the furnishing for a consideration of tangible
34.24personal property or taxable services by the United States or any of its agencies or
34.25instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political
34.26subdivisions.
34.27    (i) A sale and a purchase includes the furnishing for a consideration of
34.28telecommunications services, ancillary services associated with telecommunication
34.29services, cable television services, and direct satellite services, and ring tones.
34.30Telecommunication services include, but are not limited to, the following services,
34.31as defined in section 297A.669: air-to-ground radiotelephone service, mobile
34.32telecommunication service, postpaid calling service, prepaid calling service, prepaid
34.33wireless calling service, and private communication services. The services in this
34.34paragraph are taxed to the extent allowed under federal law.
35.1    (j) A sale and a purchase includes the furnishing for a consideration of installation if
35.2the installation charges would be subject to the sales tax if the installation were provided
35.3by the seller of the item being installed.
35.4    (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer
35.5to a customer when (1) the vehicle is rented by the customer for a consideration, or (2)
35.6the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section
35.765B.29, subdivision 1 , clause (1).
35.8EFFECTIVE DATE.This section is effective for sales and purchases made after
35.9June 30, 2010.

35.10    Sec. 3. Minnesota Statutes 2008, section 297A.61, subdivision 4, is amended to read:
35.11    Subd. 4. Retail sale. (a) A "retail sale" means any sale, lease, or rental for any
35.12purpose, other than resale, sublease, or subrent of items by the purchaser in the normal
35.13course of business as defined in subdivision 21.
35.14    (b) A sale of property used by the owner only by leasing it to others or by holding it
35.15in an effort to lease it, and put to no use by the owner other than resale after the lease or
35.16effort to lease, is a sale of property for resale.
35.17    (c) A sale of master computer software that is purchased and used to make copies for
35.18sale or lease is a sale of property for resale.
35.19    (d) A sale of building materials, supplies, and equipment to owners, contractors,
35.20subcontractors, or builders for the erection of buildings or the alteration, repair, or
35.21improvement of real property is a retail sale in whatever quantity sold, whether the sale is
35.22for purposes of resale in the form of real property or otherwise.
35.23    (e) A sale of carpeting, linoleum, or similar floor covering to a person who provides
35.24for installation of the floor covering is a retail sale and not a sale for resale since a sale
35.25of floor covering which includes installation is a contract for the improvement of real
35.26property.
35.27    (f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides
35.28for installation of the items is a retail sale and not a sale for resale since a sale of
35.29shrubbery, plants, sod, trees, and similar items that includes installation is a contract for
35.30the improvement of real property.
35.31    (g) A sale of tangible personal property that is awarded as prizes is a retail sale and
35.32is not considered a sale of property for resale.
35.33    (h) A sale of tangible personal property utilized or employed in the furnishing or
35.34providing of services under subdivision 3, paragraph (g), clause (1), including, but not
36.1limited to, property given as promotional items, is a retail sale and is not considered a
36.2sale of property for resale.
36.3    (i) A sale of tangible personal property used in conducting lawful gambling under
36.4chapter 349 or the State Lottery under chapter 349A, including, but not limited to,
36.5property given as promotional items, is a retail sale and is not considered a sale of
36.6property for resale.
36.7    (j) A sale of machines, equipment, or devices that are used to furnish, provide, or
36.8dispense goods or services, including, but not limited to, coin-operated devices, is a retail
36.9sale and is not considered a sale of property for resale.
36.10    (k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease
36.11payment becomes due under the terms of the agreement or the trade practices of the
36.12lessor or (2) in the case of a lease of a motor vehicle, as defined in section 297B.01,
36.13subdivision 11 , but excluding vehicles with a manufacturer's gross vehicle weight rating
36.14greater than 10,000 pounds and rentals of vehicles for not more than 28 days, at the time
36.15the lease is executed.
36.16    (l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of
36.17title or possession of the tangible personal property.
36.18    (m) A sale of a bundled transaction in which one or more of the products included
36.19in the bundle is a taxable product is a retail sale, except that if one of the products
36.20is a telecommunication service, ancillary service, Internet access, or audio or video
36.21programming service, and the seller has maintained books and records identifying through
36.22reasonable and verifiable standards the portions of the price that are attributable to the
36.23distinct and separately identifiable products, then the products are not considered part of a
36.24bundled transaction. For purposes of this paragraph:
36.25    (1) the books and records maintained by the seller must be maintained in the regular
36.26course of business, and do not include books and records created and maintained by the
36.27seller primarily for tax purposes;
36.28    (2) books and records maintained in the regular course of business include, but are
36.29not limited to, financial statements, general ledgers, invoicing and billing systems and
36.30reports, and reports for regulatory tariffs and other regulatory matters; and
36.31    (3) books and records are maintained primarily for tax purposes when the books
36.32and records identify taxable and nontaxable portions of the price, but the seller maintains
36.33other books and records that identify different prices attributable to the distinct products
36.34included in the same bundled transaction.
36.35(n) A sale of motor vehicle repair paint and supplies by a motor vehicle repair
36.36or body shop business is a retail sale and the sales tax is imposed on the gross receipts
37.1from the retail sale of the paint and supplies. The motor vehicle repair or body shop may
37.2multiply the number of labor hours by a rate of consideration for the paint and supplies
37.3used in the repair of the motor vehicle in order to calculate the sales price of the paint and
37.4supplies. If this method does not fairly reflect the taxable amount, the taxpayer may
37.5petition the commissioner for the use of another method, if that method fairly reflects the
37.6gross receipts from the retail sale of the paint and supplies that become part of a repaired
37.7motor vehicle or are consumed in repairing motor vehicles. This clause does not apply to
37.8wholesale transactions at an auto auction facility.

37.9    Sec. 4. Minnesota Statutes 2008, section 297A.61, is amended by adding a subdivision
37.10to read:
37.11    Subd. 47. Motor vehicle repair paint and supplies. "Motor vehicle repair paint"
37.12includes primer, body paint, clear coat, and paint thinner used to paint motor vehicles, as
37.13defined in section 297B.01. "Motor vehicle repair supplies" are items that become a part
37.14of a repaired motor vehicle or are consumed in repairing the motor vehicle at retail, and
37.15include abrasives, battery water, body filler or putty, bolts and nuts, brake fluid, buffing
37.16pads, chamois, cleaning compounds, degreasing compounds, glaze, grease, grinding discs,
37.17hydraulic jack oil, lubricants, masking tape, oxygen and acetylene, polishes, rags, razor
37.18blades, sandpaper, sanding discs, scuff pads, sealer, solder, solvents, striping tape, tack
37.19cloth, thinner, waxes, and welding rods. Motor vehicle repair supplies do not include
37.20items that are not used directly on the motor vehicle, such as floor dry, which is used to
37.21clean the shop, or cleaning compounds and rags that are used to clean tools and equipment
37.22or the shop and are not used to clean the motor vehicle.

37.23    Sec. 5. Minnesota Statutes 2008, section 297A.62, as amended by Laws 2009, chapter
37.2488, article 4, section 4, is amended to read:
37.25297A.62 SALES TAX IMPOSED; RATES.
37.26    Subdivision 1. Generally. Except as otherwise provided in subdivision 3 or in this
37.27chapter, a sales tax of 6.5 percent is imposed on the gross receipts from retail sales as
37.28defined in section 297A.61, subdivision 4, made in this state or to a destination in this
37.29state by a person who is required to have or voluntarily obtains a permit under section
37.30297A.83, subdivision 1 .
37.31    Subd. 1a. Constitutionally required sales tax increase. Except as otherwise
37.32provided in subdivision 3 or in this chapter, an additional sales tax of 0.375 percent, as
37.33required under the Minnesota Constitution, article XI, section 15, is imposed on the gross
37.34receipts from retail sales as defined in section 297A.61, subdivision 4, made in this state or
38.1to a destination in this state by a person who is required to have or voluntarily obtains a
38.2permit under section 297A.83, subdivision 1. This additional tax expires July 1, 2034.
38.3    Subd. 3. Manufactured housing and park trailers. For retail sales of
38.4manufactured homes as defined in section 327.31, subdivision 6, for residential uses, the
38.5sales tax under subdivision subdivisions 1 and 1a is imposed on 65 percent of the dealer's
38.6cost of the manufactured home. For retail sales of new or used park trailers, as defined in
38.7section 168.002, subdivision 23, the sales tax under subdivision subdivisions 1 and 1a is
38.8imposed on 65 percent of the sales price of the park trailer.
38.9    Subd. 4. Combined rates. In this chapter, wherever there is a reference to the rate
38.10under subdivision 1, or to a combined rate under subdivisions 1 and 1a, the rate to be
38.11applied is the combined rate under subdivisions 1 and 1a until the additional tax imposed
38.12by subdivision 1a expires. This subdivision does not apply to section 297A.65.
38.13EFFECTIVE DATE.This section is effective retroactively for sales and purchases
38.14made after June 30, 2009, except for sales and purchases subject to subdivision 3. This
38.15section is effective for sales and purchases subject to subdivision 3 made after June 30,
38.162010.

38.17    Sec. 6. Minnesota Statutes 2008, section 297A.665, is amended to read:
38.18297A.665 PRESUMPTION OF TAX; BURDEN OF PROOF.
38.19    (a) For the purpose of the proper administration of this chapter and to prevent
38.20evasion of the tax, until the contrary is established, it is presumed that:
38.21    (1) all gross receipts are subject to the tax; and
38.22    (2) all retail sales for delivery in Minnesota are for storage, use, or other consumption
38.23in Minnesota.
38.24    (b) The burden of proving that a sale is not a taxable retail sale is on the seller.
38.25However, a seller is relieved of liability if:
38.26    (1) the seller obtains a fully completed exemption certificate or all the relevant
38.27information required by section 297A.72, subdivision 2, at the time of the sale or within
38.2890 days after the date of the sale; or
38.29    (2) if the seller has not obtained a fully completed exemption certificate or all the
38.30relevant information required by section 297A.72, subdivision 2, within the time provided
38.31in clause (1), within 120 days after a request for substantiation by the commissioner,
38.32the seller either:
38.33    (i) obtains in good faith a fully completed exemption certificate or all the relevant
38.34information required by section 297A.72, subdivision 2, from the purchaser; or
39.1    (ii) proves by other means that the transaction was not subject to tax.
39.2    (c) Notwithstanding paragraph (b), relief from liability does not apply to a seller who:
39.3    (1) fraudulently fails to collect the tax; or
39.4    (2) solicits purchasers to participate in the unlawful claim of an exemption.
39.5    (d) A certified service provider, as defined in section 297A.995, subdivision 2, is
39.6relieved of liability under this section to the extent a seller who is its client is relieved of
39.7liability.
39.8    (e) A purchaser of tangible personal property or any items listed in section 297A.63
39.9that are shipped or brought to Minnesota by the purchaser has the burden of proving
39.10that the property was not purchased from a retailer for storage, use, or consumption in
39.11Minnesota.
39.12(f) If a seller claiming that certain sales are exempt and does not provide the
39.13certificate, information, or proof required by paragraph (b), clause (2), within 120 days
39.14after the date of the commissioner's request for substantiation, then the exemptions
39.15claimed by the seller that required substantiation are disallowed.
39.16EFFECTIVE DATE.This section is effective the day following final enactment.

39.17    Sec. 7. Minnesota Statutes 2008, section 297A.68, subdivision 39, is amended to read:
39.18    Subd. 39. Preexisting bids or contracts. (a) The sale of tangible personal property
39.19or services is exempt from tax or a tax rate increase for a period of six months from
39.20the effective date of the law change that results in the imposition of the tax or the tax
39.21rate increase under this chapter if:
39.22(1) the act imposing the tax or increasing the tax rate does not have transitional
39.23effective date language for existing construction contracts and construction bids; and
39.24(2) the requirements of paragraph (b) are met.
39.25(b) A sale is tax exempt under paragraph (a) if it meets the requirements of either
39.26clause (1) or (2):
39.27(1) For a construction contract:
39.28(i) the goods or services sold must be used for the performance of a bona fide written
39.29lump sum or fixed price construction contract;
39.30(ii) the contract must be entered into before the date the goods or services become
39.31subject to the sales tax or the tax rate was increased;
39.32(iii) the contract must not provide for allocation of future taxes; and
39.33(iv) for each qualifying contract the contractor must give the seller keep
39.34documentation of the contract on which an exemption is to be claimed.
39.35(2) For a construction bid:
40.1(i) the goods or services sold must be used pursuant to an obligation of a bid or bids;
40.2(ii) the bid or bids must be submitted and accepted before the date the goods or
40.3services became subject to the sales tax or the tax rate was increased;
40.4(iii) the bid or bids must not be able to be withdrawn, modified, or changed without
40.5forfeiting a bond; and
40.6(iv) for each qualifying bid, the contractor must give the seller keep documentation
40.7of the bid on which an exemption is to be claimed.
40.8EFFECTIVE DATE.This section is effective the day following final enactment.

40.9    Sec. 8. Minnesota Statutes 2008, section 297A.68, is amended by adding a subdivision
40.10to read:
40.11    Subd. 42. Motor vehicle repair paint and supplies. Paint and supplies, as
40.12defined in section 297A.68, subdivision 47, that are purchased by a motor vehicle repair
40.13or body shop business in providing repair services on motor vehicles, as defined in
40.14section 297B.01, at retail and become part of a repaired motor vehicle or are consumed
40.15in repairing a motor vehicle are exempt.

40.16    Sec. 9. Minnesota Statutes 2008, section 297A.70, subdivision 8, is amended to read:
40.17    Subd. 8. Regionwide public safety radio communication system; products and
40.18services. Products and services including, but not limited to, end user equipment used
40.19for construction, ownership, operation, maintenance, and enhancement of the backbone
40.20system of the regionwide public safety radio communication system established under
40.21sections 403.21 to 403.40, are exempt. For purposes of this subdivision, backbone system
40.22is defined in section 403.21, subdivision 9. This subdivision is effective for purchases,
40.23sales, storage, use, or consumption for use in the first and second phases of the system, as
40.24defined in section 403.21, subdivisions 3, 10, and 11, that portion of the third phase of
40.25the system that is located in the southeast district of the State Patrol and the counties of
40.26Benton, Sherburne, Stearns, and Wright, and that portion of the system that is located in
40.27Itasca County.
40.28EFFECTIVE DATE.This section is effective for purchases by local governments
40.29after June 30, 2006, and for purchases by the state after June 30, 2010. After June 30,
40.302010, a local government may apply for a refund of tax paid for purchases before July 1,
40.312010, under section 297A.70, subdivision 8, in the manner provided in section 297A.75.

40.32    Sec. 10. Minnesota Statutes 2008, section 297A.70, subdivision 13, is amended to read:
41.1    Subd. 13. Fund-raising sales by or for nonprofit groups. (a) The following
41.2sales by the specified organizations for fund-raising purposes are exempt, subject to the
41.3limitations listed in paragraph (b):
41.4(1) all sales made by an a nonprofit organization that exists solely for the purpose of
41.5providing educational or social activities for young people primarily age 18 and under;
41.6(2) all sales made by an organization that is a senior citizen group or association of
41.7groups if (i) in general it limits membership to persons age 55 or older; (ii) it is organized
41.8and operated exclusively for pleasure, recreation, and other nonprofit purposes; and (iii)
41.9no part of its net earnings inures to the benefit of any private shareholders;
41.10(3) the sale or use of tickets or admissions to a golf tournament held in Minnesota if
41.11the beneficiary of the tournament's net proceeds qualifies as a tax-exempt organization
41.12under section 501(c)(3) of the Internal Revenue Code; and
41.13(4) sales of candy sold for fund-raising purposes by a nonprofit organization that
41.14provides educational and social activities primarily for young people age 18 and under.
41.15(b) The exemptions listed in paragraph (a) are limited in the following manner:
41.16(1) the exemption under paragraph (a), clauses (1) and (2), applies only if the gross
41.17annual receipts of the organization from fund-raising do not exceed $10,000; and
41.18(2) the exemption under paragraph (a), clause (1), does not apply if the sales are
41.19derived from admission charges or from activities for which the money must be deposited
41.20with the school district treasurer under section 123B.49, subdivision 2, or be recorded in
41.21the same manner as other revenues or expenditures of the school district under section
41.22123B.49, subdivision 4 .
41.23(c) Sales of tangible personal property are exempt if the entire proceeds, less the
41.24necessary expenses for obtaining the property, will be contributed to a registered combined
41.25charitable organization described in section 43A.50, to be used exclusively for charitable,
41.26religious, or educational purposes, and the registered combined charitable organization
41.27has given its written permission for the sale. Sales that occur over a period of more than
41.2824 days per year are not exempt under this paragraph.
41.29(d) For purposes of this subdivision, a club, association, or other organization of
41.30elementary or secondary school students organized for the purpose of carrying on sports,
41.31educational, or other extracurricular activities is a separate organization from the school
41.32district or school for purposes of applying the $10,000 limit.
41.33EFFECTIVE DATE.This section is effective the day following final enactment.

41.34    Sec. 11. Minnesota Statutes 2008, section 297A.71, subdivision 23, is amended to read:
42.1    Subd. 23. Construction materials for qualified low-income housing projects. (a)
42.2Purchases of materials and supplies used or consumed in and equipment incorporated into
42.3the construction, improvement, or expansion of qualified low-income housing projects are
42.4exempt from the tax imposed under this chapter if the owner of the qualified low-income
42.5housing project is:
42.6    (1) the public housing agency or housing and redevelopment authority of a political
42.7subdivision;
42.8    (2) an entity exercising the powers of a housing and redevelopment authority within
42.9a political subdivision;
42.10    (3) a limited partnership in which the sole or managing general partner is an
42.11authority under clause (1) or an entity under clause (2) or, (4), or (5);
42.12    (4) a nonprofit corporation subject to the provisions of chapter 317A, and qualifying
42.13under section 501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, as amended; or
42.14(5) a limited liability company if it consists of a sole member that is an entity under
42.15clause (4); or
42.16    (5) (6) an owner entity, as defined in Code of Federal Regulations, title 24, part
42.17941.604, for a qualified low-income housing project described in paragraph (b), clause (5).
42.18    This exemption applies regardless of whether the purchases are made by the owner
42.19of the facility or a contractor.
42.20    (b) For purposes of this exemption, "qualified low-income housing project" means:
42.21    (1) a housing or mixed use project in which at least 20 percent of the residential units
42.22are qualifying low-income rental housing units as defined in section 273.126;
42.23    (2) a federally assisted low-income housing project financed by a mortgage insured
42.24or held by the United States Department of Housing and Urban Development under
42.25United States Code, title 12, section 1701s, 1715l(d)(3), 1715l(d)(4), or 1715z-1; United
42.26States Code, title 42, section 1437f; the Native American Housing Assistance and
42.27Self-Determination Act, United States Code, title 25, section 4101 et seq.; or any similar
42.28successor federal low-income housing program;
42.29    (3) a qualified low-income housing project as defined in United States Code, title
42.3026, section 42(g), meeting all of the requirements for a low-income housing credit under
42.31section 42 of the Internal Revenue Code regardless of whether the project actually applies
42.32for or receives a low-income housing credit;
42.33    (4) a project that will be operated in compliance with Internal Revenue Service
42.34revenue procedure 96-32; or
42.35    (5) a housing or mixed use project in which all or a portion of the residential units
42.36are subject to the requirements of section 5 of the United States Housing Act of 1937.
43.1    (c) For a project, a portion of which is not used for low-income housing units,
43.2the amount of purchases that are exempt under this subdivision must be determined by
43.3multiplying the total purchases, as specified in paragraph (a), by the ratio of:
43.4    (1) the total gross square footage of units subject to the income limits under section
43.5273.126 , the financing for the project, the federal low-income housing tax credit, revenue
43.6procedure 96-32, or section 5 of the United States Housing Act of 1937, as applicable
43.7to the project; and
43.8    (2) the total gross square footage of all units in the project.
43.9    (d) The tax must be imposed and collected as if the rate under section 297A.62,
43.10subdivision 1 , applied, and then refunded in the manner provided in section 297A.75.
43.11EFFECTIVE DATE.This section is effective for sales and purchases made after
43.12June 30, 2010.

43.13    Sec. 12. Minnesota Statutes 2009 Supplement, section 297A.75, subdivision 1, is
43.14amended to read:
43.15    Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the
43.16following exempt items must be imposed and collected as if the sale were taxable and the
43.17rate under section 297A.62, subdivision 1, applied. The exempt items include:
43.18    (1) capital equipment exempt under section 297A.68, subdivision 5;
43.19    (2) building materials for an agricultural processing facility exempt under section
43.20297A.71, subdivision 13 ;
43.21    (3) building materials for mineral production facilities exempt under section
43.22297A.71, subdivision 14 ;
43.23    (4) building materials for correctional facilities under section 297A.71, subdivision
43.243 ;
43.25    (5) building materials used in a residence for disabled veterans exempt under section
43.26297A.71, subdivision 11 ;
43.27    (6) elevators and building materials exempt under section 297A.71, subdivision 12;
43.28    (7) building materials for the Long Lake Conservation Center exempt under section
43.29297A.71, subdivision 17 ;
43.30    (8) materials and supplies for qualified low-income housing under section 297A.71,
43.31subdivision 23 ;
43.32    (9) materials, supplies, and equipment for municipal electric utility facilities under
43.33section 297A.71, subdivision 35;
44.1    (10) equipment and materials used for the generation, transmission, and distribution
44.2of electrical energy and an aerial camera package exempt under section 297A.68,
44.3subdivision 37;
44.4    (11) tangible personal property and taxable services and construction materials,
44.5supplies, and equipment exempt under section 297A.68, subdivision 41;
44.6    (12) commuter rail vehicle and repair parts under section 297A.70, subdivision
44.73, clause (11);
44.8    (13) materials, supplies, and equipment for construction or improvement of projects
44.9and facilities under section 297A.71, subdivision 40; and
44.10(14) materials, supplies, and equipment for construction or improvement of a meat
44.11processing facility exempt under section 297A.71, subdivision 41; and
44.12(15) products and services for a regionwide public safety radio communication
44.13system exempt under section 297A.70, subdivision 8, purchased by a local government
44.14after June 30, 2006, and before July 1, 2010.
44.15EFFECTIVE DATE.This section is effective the day following final enactment.

44.16    Sec. 13. Minnesota Statutes 2009 Supplement, section 297A.75, subdivision 2, is
44.17amended to read:
44.18    Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the
44.19commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
44.20must be paid to the applicant. Only the following persons may apply for the refund:
44.21    (1) for subdivision 1, clauses (1) to (3), the applicant must be the purchaser;
44.22    (2) for subdivision 1, clauses (4) and (7), the applicant must be the governmental
44.23subdivision;
44.24    (3) for subdivision 1, clause (5), the applicant must be the recipient of the benefits
44.25provided in United States Code, title 38, chapter 21;
44.26    (4) for subdivision 1, clause (6), the applicant must be the owner of the homestead
44.27property;
44.28    (5) for subdivision 1, clause (8), the owner of the qualified low-income housing
44.29project;
44.30    (6) for subdivision 1, clause (9), the applicant must be a municipal electric utility or
44.31a joint venture of municipal electric utilities;
44.32    (7) for subdivision 1, clauses (10), (11), and (14), the owner of the qualifying
44.33business; and
44.34    (8) for subdivision 1, clauses (12) and, (13), and (15), the applicant must be the
44.35governmental entity that owns or contracts for the project or facility.
45.1EFFECTIVE DATE.This section is effective the day following final enactment.

45.2    Sec. 14. Minnesota Statutes 2008, section 297A.75, subdivision 3, is amended to read:
45.3    Subd. 3. Application. (a) The application must include sufficient information
45.4to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
45.5subcontractor, or builder, under subdivision 1, clause (4), (5), (6), (7), (8), (9), (10), (11),
45.6(12), (13), or (14), or (15), the contractor, subcontractor, or builder must furnish to the
45.7refund applicant a statement including the cost of the exempt items and the taxes paid on
45.8the items unless otherwise specifically provided by this subdivision. The provisions of
45.9sections 289A.40 and 289A.50 apply to refunds under this section.
45.10    (b) An applicant may not file more than two applications per calendar year for
45.11refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
45.12    (c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not
45.13exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases
45.14of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71,
45.15subdivision 40, must not be filed until after June 30, 2009. Application for refunds for
45.16purchases of items in section 297A.75, subdivision 3, clause (15), must not be filed until
45.17after June 30, 2010.
45.18EFFECTIVE DATE.This section is effective the day following final enactment.

45.19    Sec. 15. Minnesota Statutes 2008, section 297A.995, subdivision 10, is amended to
45.20read:
45.21    Subd. 10. Relief from certain liability. (a) Notwithstanding subdivision 9, sellers
45.22and certified service providers are relieved from liability to the state for having charged
45.23and collected the incorrect amount of sales or use tax resulting from the seller or certified
45.24service provider (1) relying on erroneous data provided by the commissioner in the
45.25database files on tax rates, boundaries, or taxing jurisdiction assignments, or (2) relying
45.26on erroneous data provided by the state in its taxability matrix concerning the taxability
45.27of products and services.
45.28    (b) Notwithstanding subdivision 9, sellers and certified service providers are
45.29relieved from liability to the state for having charged and collected the incorrect amount
45.30of sales or use tax resulting from the seller or certified service provider relying on the
45.31certification by the commissioner as to the accuracy of a certified automated system as to
45.32the taxability of product categories. The relief from liability provided by this paragraph
45.33does not apply when the sellers or certified service providers have incorrectly classified
45.34an item or transaction into a product category, unless the item or transaction within a
46.1product category was approved by the commissioner or approved jointly by the states that
46.2are signatories to the agreement. The sellers and certified service providers must revise a
46.3classification within ten days after receipt of notice from the commissioner that an item or
46.4transaction within a product category is incorrectly classified as to its taxability, or they
46.5are not relieved from liability for the incorrect classification following the notification.
46.6(c) Notwithstanding subdivision 9, if there are not at least 30 days between the
46.7enactment of a new tax rate and the effective date of the new rate, sellers and certified
46.8service providers shall be relieved from liability for failing to collect tax at the new rate
46.9during the first 30 days of the rate change, beginning on the day after the date of enactment
46.10of the rate change, provided the seller or certified service provider continued to impose
46.11and collect the tax at the immediately preceding tax rate during this period. Relief from
46.12liability provided by this paragraph shall not apply if the failure to collect at the newly
46.13effective rate extends beyond 30 days after the enactment of the new rate. The relief
46.14provided by this paragraph shall not apply if the commissioner determines that the seller or
46.15certified service provider fraudulently failed to collect at the new rate or that the seller or
46.16certified service provider solicited purchasers based on the immediately preceding tax rate.
46.17EFFECTIVE DATE.This section is effective the day following final enactment.

46.18    Sec. 16. Minnesota Statutes 2008, section 297A.995, subdivision 11, is amended to
46.19read:
46.20    Subd. 11. Purchaser relief from certain liability. (a) Notwithstanding other
46.21provisions in the law, a purchaser is relieved from liability resulting from having paid
46.22the incorrect amount of sales or use tax if a purchaser, whether or not holding a the
46.23commissioner gave the purchaser direct pay permit authorization, or a purchaser's seller or
46.24certified service provider relied on erroneous data provided by this state in the database
46.25files on tax rates, boundaries, taxing jurisdiction assignments, or in the taxability matrix.
46.26After providing an address-based database for assigning taxing jurisdictions and their
46.27associated rates, no relief for errors resulting from the purchaser's reliance on a database
46.28using zip codes is allowed.
46.29    (b) With respect to reliance on the taxability matrix provided by this state in
46.30paragraph (a), relief is limited to erroneous classifications in the taxability matrix for
46.31items included within the classifications as "taxable," "exempt," "included in sales
46.32price," "excluded from sales price," "included in the definition," and "excluded from
46.33the definition."
46.34(c) Notwithstanding other provisions in the law, if there are not at least 30 days
46.35between the enactment of a new tax rate and the effective date of the new rate, a purchaser
47.1shall be relieved from liability resulting from failing to pay the tax at the new rate during
47.2the first 30 days of the rate change, beginning on the day after the date of enactment of
47.3the rate change, whether or not the purchaser has been given direct pay authorization by
47.4the commissioner. Relief from liability provided by this paragraph shall not apply if the
47.5failure to pay at the newly effective rate extends beyond 30 days after the enactment of
47.6the new rate, and shall not apply to a purchaser that did not continue to pay the tax at the
47.7immediately preceding tax rate during the 30-day period. The relief provided by this
47.8paragraph shall not apply if the commissioner determines that the purchaser fraudulently
47.9failed to pay at the new rate.
47.10EFFECTIVE DATE.This section is effective the day following final enactment.

47.11    Sec. 17. [645.025] SPECIAL LAWS; LOCAL TAXES.
47.12    Subdivision 1. Definitions. (a) If a special law grants a local government unit
47.13or group of units the authority to impose a local tax other than sales tax, including but
47.14not limited to taxes such as lodging, entertainment, admissions, or food and beverage
47.15taxes, and the Department of Revenue either has agreed to or is required to administer
47.16the tax, such that the tax is reported and paid with the chapter 297A taxes, then the local
47.17government unit or group of units must adopt each definition used in the special law
47.18as follows:
47.19(1) the definition must be identical to the definition found in chapter 297A or in
47.20Minnesota Rules, chapter 8130; or
47.21(2) if the specific term is not defined either in chapter 297A or in Minnesota Rules,
47.22chapter 8130, then the definition must be consistent with the position of the Department of
47.23Revenue as to the extent of the tax base.
47.24(b) This subdivision does not apply to terms that are defined by the authorizing
47.25special law.
47.26    Subd. 2. Application. This section applies to a special law that is described in
47.27subdivision 1 that was:
47.28(1) originally enacted prior to 2010, and that was amended by special law in or after
47.292010, to extend the time for imposing the tax or to modify the tax base; or
47.30(2) first enacted in or after 2010.
47.31EFFECTIVE DATE.This section is effective the day following final enactment.

47.32    Sec. 18. Laws 1999, chapter 243, article 4, section 18, subdivision 3, as amended by
47.33Laws 2008, chapter 366, article 7, section 13, is amended to read:
48.1    Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by
48.2subdivisions 1 and 2 must be used by the city to pay the cost of collecting the taxes and to
48.3pay for construction and, improvement, and maintenance of the following city facilities:
48.4    (1) streets; and
48.5    (2) constructing and equipping the Proctor community activity center.
48.6    Authorized expenses include, but are not limited to, acquiring property, paying
48.7construction and operating expenses related to the development of an authorized facility,
48.8maintenance expenses, and paying debt service on bonds or other obligations, including
48.9lease obligations, issued to finance the construction, expansion, or improvement or
48.10maintenance of an authorized facility. The capital expenses for all projects authorized
48.11under this paragraph that may be paid with these taxes is limited to $3,600,000, plus an
48.12amount equal to the costs related to issuance of the bonds.
48.13    (b) Additional revenues received from taxes authorized by subdivision 1, may be
48.14used by the city to pay for the following capital improvement projects: public utilities,
48.15including water, sanitary sewer, storm sewer, and electric; sidewalks; bikeways and trails;
48.16and parks and recreation.
48.17EFFECTIVE DATE.This section is effective the day following final enactment,
48.18upon compliance by the city of Proctor with Minnesota Statutes, section 645.021,
48.19subdivision 3.

48.20    Sec. 19. Laws 1999, chapter 243, article 4, section 18, subdivision 4, is amended to
48.21read:
48.22    Subd. 4. Bonding authority. (a) The city may issue bonds under Minnesota
48.23Statutes, chapter 475, to finance the capital expenditure and improvement projects
48.24described in subdivision 3. An election to approve the bonds under Minnesota Statutes,
48.25section 475.58, is not required.
48.26    (b) The issuance of bonds under this subdivision is not subject to Minnesota Statutes,
48.27sections 275.60 and 279.61.
48.28    (c) The bonds are not included in computing any debt limitation applicable to the
48.29city, and the levy of taxes under Minnesota Statutes, section 475.61, to pay principal of
48.30and interest on the bonds is not subject to any levy limitation.
48.31    (d) The aggregate principal amount of bonds, plus the aggregate of the taxes
48.32used directly to pay eligible capital expenditures and improvements, may not exceed
48.33$3,600,000, plus an amount equal to the costs related to issuance of the bonds, including
48.34interest on the bonds $20,000,000.
49.1    (e) The sales and use and excise taxes authorized in this section may be pledged to
49.2and used for the payment of the bonds and any bonds issued to refund them only if the
49.3bonds and any refunding bonds are general obligations of the city.
49.4EFFECTIVE DATE.This section is effective the day following final enactment,
49.5upon compliance by the city of Proctor with Minnesota Statutes, section 645.021,
49.6subdivision 3.

49.7    Sec. 20. Laws 2002, chapter 377, article 3, section 25, as amended by Laws 2009,
49.8chapter 88, article 4, section 19, is amended to read:
49.9    Sec. 25. ROCHESTER LODGING TAX.
49.10    Subdivision 1. Authorization. Notwithstanding Minnesota Statutes, section
49.11469.190 or 477A.016, or any other law, the city of Rochester may impose an additional
49.12tax of one percent on the gross receipts from the furnishing for consideration of lodging at
49.13a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it
49.14for a continuous period of 30 days or more.
49.15    Subd. 1a. Authorization. Notwithstanding Minnesota Statutes, section 469.190 or
49.16477A.016 , or any other law, and in addition to the tax authorized by subdivision 1, the city
49.17of Rochester may impose an additional tax of one percent on the gross receipts from the
49.18furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or
49.19resort, other than the renting or leasing of it for a continuous period of 30 days or more only
49.20upon the approval of the city governing body of a total financial package for the project.
49.21    Subd. 2. Disposition of proceeds. (a) The gross proceeds from the tax imposed
49.22under subdivision 1 must be used by the city to fund a local convention or tourism bureau
49.23for the purpose of marketing and promoting the city as a tourist or convention center.
49.24(b) The gross proceeds from the one percent tax imposed under subdivision 1a shall
49.25be used to pay for (1) construction, renovation, improvement, and expansion of the Mayo
49.26Civic Center and related skyway access, lighting, parking, or landscaping; and (2) for
49.27payment of any principal, interest, or premium on bonds issued to finance the construction,
49.28renovation, improvement, and expansion of the Mayo Civic Center Complex.
49.29    Subd. 2a. Bonds. The city of Rochester may issue, without an election, general
49.30obligation bonds of the city, in one or more series, in the aggregate principal amount
49.31not to exceed $43,500,000, to pay for capital and administrative costs for the design,
49.32construction, renovation, improvement, and expansion of the Mayo Civic Center Complex,
49.33and related skyway, access, lighting, parking, and landscaping. The city may pledge
49.34the lodging tax authorized by subdivision 1a and the food and beverage tax authorized
49.35under Laws 2009, chapter 88, article 4, section 23, to the payment of the bonds. The debt
50.1represented by the bonds is not included in computing any debt limitations applicable to
50.2the city, and the levy of taxes required by Minnesota Statutes, section 475.61, to pay the
50.3principal of and interest on the bonds is not subject to any levy limitation or included in
50.4computing or applying any levy limitation applicable to the city.
50.5    Subd. 3. Expiration of taxing authority. The authority of the city to impose a tax
50.6under subdivision 1a shall expire when the principal and interest on any bonds or other
50.7obligations issued prior to December 31, 2014, to finance the construction, renovation,
50.8improvement, and expansion of the Mayo Civic Center Complex and related skyway
50.9access, lighting, parking, or landscaping have been paid, including any bonds issued to
50.10refund such bonds, or at an earlier time as the city shall, by ordinance, determine. Any
50.11funds remaining after completion of the project and retirement or redemption of the bonds
50.12shall be placed in the general fund of the city.
50.13EFFECTIVE DATE.This section is effective the day after the governing body of
50.14the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
50.15645.021, subdivisions 2 and 3.

50.16    Sec. 21. Laws 2006, chapter 259, article 3, section 12, subdivision 3, as amended by
50.17Laws 2009, chapter 88, article 4, section 20, is amended to read:
50.18    Subd. 3. Use of revenues. (a) Revenues received from the taxes authorized by
50.19subdivisions 1 and 2 must be used to pay all or part of the capital costs of transportation
50.20projects included in the 2004 U.S. Highway 14-Owatonna Beltline Study by the Minnesota
50.21Department of Transportation, Steele County, and the city of Owatonna; regional parks
50.22and trail developments; and the West Hills complex, including the firehall, and library
50.23improvement projects; as described in the city resolution No. 4-06, Exhibit A, as adopted
50.24by the city on January 17, 2006. Notwithstanding the specific transportation projects
50.25described in city resolution No. 4-06, Exhibit A, the city may transfer up to $1,500,000
50.26of the sales and use tax revenues from the Alexander Street to 39th Avenue Southwest
50.27project to the reconstruction of 18th Street Southwest from 24th Avenue Southwest to 39th
50.28Avenue West. The amount paid from these revenues for transportation projects may not
50.29exceed $4,450,000 plus associated bond costs. The amount paid from these revenues for
50.30park and trail projects may not exceed $5,400,000 plus associated bond costs. The amount
50.31paid from these revenues for West Hills complex, fire hall, and library improvement
50.32projects may not exceed $2,823,000 plus associated bond costs.
50.33(b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, revenues
50.34received from the taxes authorized by subdivisions 1 and 2 may be used to pay all or part
50.35of the capital costs of development of Lake Chase Park and the North Straight River trail
51.1projects; and additional improvements to the West Hills complex, including the library.
51.2The amount paid from these revenues for Lake Chase Park and the North Straight River
51.3Park trail system may not exceed $1,050,000 plus associated bond costs. The amount
51.4paid from these revenues for the additional West Hills and library complex improvement
51.5project may not exceed $1,490,000 plus associated bond costs.
51.6(c) The revenues from the taxes imposed under subdivisions 1 and 2 shall not be
51.7used for the purposes listed in paragraph (b) until the use of these revenues to fund those
51.8purposes has been approved by the voters at a general election held before November
51.930, 2011.
51.10EFFECTIVE DATE.This section is effective the day after compliance by the
51.11governing body of the city of Owatonna with Minnesota Statutes, section 645.021,
51.12subdivision 3 .

51.13    Sec. 22. Laws 2006, chapter 259, article 3, section 12, subdivision 4, is amended to
51.14read:
51.15    Subd. 4. Bonds. (a) The city of Owatonna, if approved by voters pursuant to
51.16Minnesota Statutes, section 297A.99, may issue bonds under Minnesota Statutes, chapter
51.17475, to pay capital and administrative expenses for the projects described in subdivision
51.183, paragraph (a), in an amount that does not exceed $12,700,000. A separate election to
51.19approve the bonds under Minnesota Statutes, section 475.58, is not required.
51.20(b) The city of Owatonna, if approved by voters pursuant to subdivision 3,
51.21paragraph (c), may issue bonds under Minnesota Statutes, chapter 475, to pay capital and
51.22administrative expenses for the projects described in subdivision 3, paragraph (b), in an
51.23amount that does not exceed $3,540,000. A separate election to approve the bonds under
51.24Minnesota Statutes, section 475.58, is not required.
51.25(b) (c) The debt represented by the bonds is not included in computing any debt
51.26limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section
51.27475.61 , to pay principal and interest on the bonds, is not subject to any levy limitation.
51.28EFFECTIVE DATE.This section is effective the day after compliance by the
51.29governing body of the city of Owatonna with Minnesota Statutes, section 645.021,
51.30subdivision 3.

51.31    Sec. 23. Laws 2006, chapter 259, article 3, section 12, subdivision 5, is amended to
51.32read:
52.1    Subd. 5. Termination of taxes. The taxes imposed under subdivisions 1 and 2
52.2expire at the earlier of (1) ten years plus one additional year for every $1,100,000, or a
52.3portion of that amount, of additional projects approved under subdivision 3, paragraphs
52.4(b) and (c), after the tax is first imposed, or (2) when the city council determines that the
52.5amount of revenues received from the taxes to pay for the projects under subdivision 3 first
52.6equals or exceeds the amount authorized to be spent for each project plus the additional
52.7amount needed to pay the costs related to issuance of the bonds under subdivision 4,
52.8including interest on the bonds. Any funds remaining after completion of the projects
52.9and retirement or redemption of the bonds shall be placed in a capital project fund of
52.10the city. The taxes imposed under sections 1 and 2 may expire at an earlier time if the
52.11city so determines by ordinance.
52.12EFFECTIVE DATE.This section is effective the day after compliance by the
52.13governing body of the city of Owatonna with Minnesota Statutes, section 645.021,
52.14subdivision 3.

52.15    Sec. 24. Laws 2009, chapter 88, article 4, section 5, the effective date, is amended to
52.16read:
52.17EFFECTIVE DATE.This section is effective July 1, 2009, and applies to
52.18registrations leases or rentals made or renewed on or after that date.
52.19EFFECTIVE DATE.This section is effective retroactively for leases or rentals
52.20made or renewed after June 30, 2009.

52.21    Sec. 25. Laws 2009, chapter 88, article 4, section 23, subdivision 4, is amended to read:
52.22    Subd. 4. Expiration of taxing authority. The authority granted under subdivision
52.231 to the city to impose a one percent tax on food and beverages shall expire when the
52.24principal and interest on any bonds or other obligations issued prior to December 31,
52.252014, to finance the construction, renovation, improvement, and expansion of the Mayo
52.26Civic Center Complex and related skyway access, lighting, parking, or landscaping, and
52.27any bonds issued to refund such bonds, have been paid or at an earlier time as the city
52.28shall, by ordinance, determine. Any funds remaining after completion of the project and
52.29retirement or redemption of the bonds shall be placed in the general fund of the city.
52.30EFFECTIVE DATE.This section is effective the day after the governing body of
52.31the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
52.32645.021, subdivisions 2 and 3.

53.1    Sec. 26. CITY OF CLOQUET; TAXES AUTHORIZED.
53.2    Subdivision 1. Sales and use tax. Notwithstanding Minnesota Statutes, section
53.3297A.99, subdivision 1, or 477A.016, or any other provision of law, ordinance, or city
53.4charter, if approved by the voters pursuant to Minnesota Statutes, section 297A.99, or at
53.5a special election held for this purpose, the city of Cloquet may impose by ordinance a
53.6sales and use tax of up to one-half of one percent for the purpose specified in subdivision
53.73. Except as provided in this section, the provisions of Minnesota Statutes, section
53.8297A.99, govern the imposition, administration, collection, and enforcement of the tax
53.9authorized under this subdivision.
53.10    Subd. 2. Excise tax authorized. Notwithstanding Minnesota Statutes, section
53.11297A.99, subdivision 1, or 477A.016, or any other provision of law, ordinance, or city
53.12charter, if approved by the voters, the city of Cloquet may impose by ordinance, for the
53.13purposes specified in subdivision 3, an excise tax of up to $20 per motor vehicle, as
53.14defined by ordinance, purchased or acquired from any person engaged within the city in
53.15the business of selling motor vehicles at retail.
53.16    Subd. 3. Use of revenues. Revenues received from taxes authorized by subdivisions
53.171 and 2 must be used by the city to pay the cost of collecting the taxes and to pay for the
53.18following projects:
53.19    (1) construction and completion of park improvement projects, including, but not
53.20limited to: St. Louis River riverfront improvements; Veteran's Park construction and
53.21improvements; improvements to the Hilltop Park soccer complex and Braun Park baseball
53.22complex; and development of pedestrian trails within the city;
53.23    (2) extension of utilities and the construction of all improvements associated with
53.24the development of property adjacent to Highway 33 and Interstate 35, including payment
53.25of all debt service on bonds issued for these;
53.26(3) engineering and construction of infrastructure improvements, including, but not
53.27limited to, storm sewer, sanitary sewer, and water in areas identified as part of the city's
53.28comprehensive land use plan; and
53.29(4) payment of outstanding debt, including the issuance of bonds, related to the
53.30construction of the Cloquet Area Recreation Center.
53.31    Authorized expenses include, but are not limited to, acquiring property and paying
53.32construction expenses related to these improvements, and paying debt service on bonds or
53.33other obligations issued to finance acquisition and construction of these improvements.
54.1    Subd. 4. Bonding authority. (a) The city may issue bonds under Minnesota
54.2Statutes, chapter 475, to pay capital and administrative expenses for the improvements
54.3described in subdivision 3 in an amount that does not exceed $16,500,000. An election to
54.4approve the bonds under Minnesota Statutes, section 475.58, is not required.
54.5    (b) The issuance of bonds under this subdivision is not subject to Minnesota Statutes,
54.6sections 275.60 and 275.61.
54.7    (c) The debt represented by the bonds is not included in computing any debt
54.8limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section
54.9475.61, to pay principal of and interest on the bonds is not subject to any levy limitation.
54.10    Subd. 5. Termination of taxes. The taxes imposed under subdivisions 1 and 2
54.11expire at the earlier of (1) 30 years, or (2) when the city council determines that the amount
54.12of revenues received from the taxes to finance the improvements described in subdivision
54.133 first equals or exceeds $16,500,000, plus the additional amount needed to pay the costs
54.14related to issuance of bonds under subdivision 4, including interest on the bonds. Any
54.15funds remaining after completion of the project and retirement or redemption of the bonds
54.16may be placed in the general fund of the city. The taxes imposed under subdivisions 1 and
54.172 may expire at an earlier time if the city so determines by ordinance.
54.18EFFECTIVE DATE.This section is effective the day after the governing body of
54.19the city of Cloquet and its chief clerical officer timely comply with Minnesota Statutes,
54.20section 645.021, subdivisions 2 and 3.

54.21    Sec. 27. CITY OF DETROIT LAKES; LOCAL TAXES AUTHORIZED.
54.22    Subdivision 1. Food and beverage tax authorized. Notwithstanding Minnesota
54.23Statutes, section 477A.016, or any ordinance, city charter, or other provision of law, the
54.24city of Detroit Lakes may, by ordinance, impose a sales tax of up to one percent on the
54.25gross receipts of all food and beverages by a restaurant or place of refreshment, as defined
54.26by resolution of the city, that is located within the city. For purposes of this section, "food
54.27and beverages" include retail on-sale of intoxicating liquor and fermented malt beverages.
54.28    Subd. 2. Use of proceeds from authorized taxes. The proceeds of the taxes
54.29imposed under subdivision 1 must be used by the city to pay all or a portion of the
54.30expenses of the following projects:
54.31(1) control of flowering rush infestation;
54.32(2) construction and improvement of bike trail facilities;
54.33(3) parking improvements near public facilities; and
55.1(4) redevelopment of the area returned to the city as a result of realignment of
55.2Highway 10.
55.3    Subd. 3. Expiration of taxing authority. The taxes authorized under subdivision 1
55.4expire when the governing body of the city determines that sufficient revenues have been
55.5raised to finance the projects in subdivision 3, including the amount to prepay to retire at
55.6maturity the principal, interest, and premium due on any bonds issued for the projects.
55.7    Subd. 4. Collection, administration, and enforcement. The city may enter into
55.8an agreement with the commissioner of revenue to administer, collect, and enforce the
55.9taxes under subdivisions 1 and 2. If the commissioner agrees to collect the tax, the
55.10provisions of Minnesota Statutes, section 297A.99, related to collection, administration,
55.11and enforcement apply.
55.12EFFECTIVE DATE.This section is effective the day after the governing body of
55.13the city of Detroit Lakes and its chief clerical officer comply with Minnesota Statutes,
55.14section 645.021, subdivisions 2 and 3.

55.15    Sec. 28. CITY OF ELY; SALES AND USE TAX AUTHORIZED.
55.16    Subdivision 1. Sales and use tax. Notwithstanding Minnesota Statutes, section
55.17297A.99, subdivision 1, or 477A.016, or any other provision of law, ordinance, or city
55.18charter, if approved by the voters pursuant to Minnesota Statutes, section 297A.99, or at a
55.19special election held for this purpose, the city of Ely may impose by ordinance a sales and
55.20use tax of one-half of one percent for the purposes specified in subdivision 2. Except as
55.21provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern
55.22the imposition, administration, collection, and enforcement of the tax authorized under
55.23this subdivision.
55.24    Subd. 2. Use of revenues. Revenues received from the taxes authorized by
55.25subdivision 1 must be used by the city to pay the cost of collecting the taxes and to pay
55.26for the following projects:
55.27(1) improvements to the community center, city hall, Semer's Park, and Whiteside
55.28Park related to compliance with the Americans with Disabilities Act;
55.29(2) improvements to the recreation center; and
55.30(3) trail improvements and repairs.
55.31    Subd. 3. Bonding authority. (a) The city may issue bonds under Minnesota
55.32Statutes, chapter 475, to pay capital and administrative expenses for the improvements
56.1described in subdivision 2 in an amount that does not exceed $7,500,000. An election to
56.2approve the bonds under Minnesota Statutes, section 475.58, is not required.
56.3(b) The issuance of bonds under this subdivision is not subject to Minnesota Statutes,
56.4sections 275.60 and 275.61.
56.5(c) The debt represented by the bonds is not included in computing any debt
56.6limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section
56.7475.61, to pay principal of and interest on the bonds is not subject to any levy limitation.
56.8    Subd. 4. Expiration of taxing authority. The taxes authorized under subdivision
56.91 expire at the earlier of: (1) 30 years; or (2) when the governing body of the city
56.10determines that sufficient revenues have been raised to finance the projects in subdivision
56.112, including the amount to prepay to retire at maturity the principal, interest, and premium
56.12due on any bonds issued for the projects. Any funds remaining after completion of the
56.13project and retirement or redemption of the bonds may be placed in the general fund
56.14of the city. The taxes imposed under subdivision 1 may expire at an earlier time if the
56.15city so determines by ordinance.
56.16EFFECTIVE DATE.This section is effective the day after the governing body
56.17of the city of Ely and its chief clerical officer comply with Minnesota Statutes, section
56.18645.021, subdivisions 2 and 3.

56.19    Sec. 29. GIANTS RIDGE RECREATION AREA TAXING AUTHORITY.
56.20    Subdivision 1. Additional taxes authorized. Notwithstanding Minnesota Statutes,
56.21section 477A.016, or any other law, ordinance, or charter provision to the contrary, the
56.22city of Biwabik, upon approval both by its governing body and by the vote of at least
56.23seven members of the Iron Range Resources and Rehabilitation Board, may impose any or
56.24all of the taxes described in this section.
56.25    Subd. 2. Use of proceeds. The proceeds of any taxes imposed under this section,
56.26less refunds and costs of collection, must be deposited into the Iron Range Resources and
56.27Rehabilitation Board account enterprise fund created under the provisions of Minnesota
56.28Statutes, section 298.221, paragraph (c), and must be dedicated and expended by the
56.29commissioner of the Iron Range Resources and Rehabilitation Board, upon approval by
56.30the vote of at least seven members of the Iron Range Resources and Rehabilitation Board,
56.31to pay costs for the construction, renovation, improvement, expansion, and maintenance
56.32of public recreational facilities located in those portions of the city within the Giants
56.33Ridge Recreation Area as defined in Minnesota Statutes, section 298.22, subdivision 7, or
57.1to pay any principal, interest, or premium on any bond issued to finance the construction,
57.2renovation, improvement, or expansion of such public recreational facilities.
57.3    Subd. 3. Sales tax. The city of Biwabik, upon approval both by its governing
57.4body and by the vote of at least seven members of the Iron Range Resources and
57.5Rehabilitation Board, may impose, by ordinance, a sales tax of not more than one percent
57.6within the Giants Ridge Recreation Area as defined in Minnesota Statutes, section
57.7298.22, subdivision 7. The provisions of Minnesota Statutes, section 297A.99, except for
57.8subdivisions 2 and 3, govern the imposition, administration, collection, and enforcement
57.9of the tax authorized in this subdivision.
57.10    Subd. 4. Lodging tax. The city of Biwabik, upon approval both by its governing
57.11body and by the vote of at least seven members of the Iron Range Resources and
57.12Rehabilitation Board, may impose, by ordinance, a tax of not more than five percent on the
57.13gross receipts subject to the lodging tax under Minnesota Statutes, section 469.190. This
57.14tax is in addition to any tax imposed under Minnesota Statutes, section 469.190, and may
57.15be imposed only on gross lodging receipts generated within the Giants Ridge Recreation
57.16Area as defined in Minnesota Statutes, section 298.22, subdivision 7.
57.17    Subd. 5. Admissions and recreation tax. (a) The city of Biwabik, upon approval
57.18both by its governing body and by the vote of at least seven members of the Iron Range
57.19Resources and Rehabilitation Board, may impose, by ordinance, a tax of not more than five
57.20percent on admission receipts to entertainment and recreational facilities and on receipts
57.21from the rental of recreation equipment, at sites within the Giants Ridge Recreation Area as
57.22defined in Minnesota Statutes, section 298.22, subdivision 7. The provisions of Minnesota
57.23Statutes, section 297A.99, except for subdivisions 2 and 3, govern the imposition,
57.24administration, collection, and enforcement of the tax authorized in this subdivision.
57.25(b) If the city imposes the tax under paragraph (a), it must include in the ordinance
57.26an exemption for purchases of season tickets or passes.
57.27    Subd. 6. Food and beverage tax. The city of Biwabik, upon approval both by its
57.28governing body and by the vote of at least seven members of the Iron Range Resources
57.29and Rehabilitation Board, may impose, by ordinance, an additional sales tax of not more
57.30than one percent on sales of food and beverages primarily for consumption on or off
57.31the premises by restaurants and places of refreshment as defined by resolution of the
57.32city within the Giants Ridge Recreation Area as defined in Minnesota Statutes, section
57.33298.22, subdivision 7. The provisions of Minnesota Statutes, section 297A.99, except for
58.1subdivisions 2 and 3, govern the imposition, administration, collection, and enforcement
58.2of the tax authorized in this subdivision.
58.3EFFECTIVE DATE.This section shall be effective the day after compliance with
58.4Minnesota Statutes, section 645.021, subdivisions 2 and 3, by the governing body of the
58.5city of Biwabik. Notwithstanding Minnesota Statutes, section 645.021, subdivision 3, the
58.6city may comply with Minnesota Statutes, section 645.021, at any time before January
58.71, 2012.

58.8    Sec. 30. CITY OF HUTCHINSON; TAXES AUTHORIZED.
58.9    Subdivision 1. Sales and use tax. Notwithstanding Minnesota Statutes, section
58.10477A.016, or any other provision of law, ordinance, or city charter, if approved by the
58.11voters pursuant to Minnesota Statutes, section 297A.99, the city of Hutchinson may
58.12impose by ordinance a sales and use tax of up to one-half of one percent for the purposes
58.13specified in subdivision 2. Except as otherwise provided in this section, the provisions of
58.14Minnesota Statutes, section 297A.99, govern the imposition, administration, collection,
58.15and enforcement of the tax authorized under this subdivision. Minnesota Statutes, section
58.16297A.99, subdivision 1, paragraph (d), does not apply to this section.
58.17    Subd. 2. Excise tax authorized. Notwithstanding Minnesota Statutes, section
58.18477A.016, or any other provision of law, ordinance, or city charter, if approved by the
58.19voters, the city of Hutchinson may impose by ordinance, for the purposes specified in
58.20subdivision 3, an excise tax of up to $20 per motor vehicle, as defined by ordinance,
58.21purchased or acquired from any person engaged within the city in the business of selling
58.22motor vehicles at retail.
58.23    Subd. 3. Use of revenues. Revenues received from the taxes authorized by this
58.24section must be used to pay the cost of collecting and administering the tax and to finance
58.25the costs of constructing a new water treatment facility and renovating the wastewater
58.26treatment facility in the city of Hutchinson. Authorized costs include, but are not limited
58.27to, construction and engineering costs of the projects and associated bond costs.
58.28    Subd. 4. Termination of tax. The taxes authorized under subdivisions 1 and 2
58.29terminate at the earlier of: (1) 20 years after the date of initial imposition of the tax; or
58.30(2) when the Hutchinson City Council determines that the amount of revenues raised is
58.31sufficient to pay for the projects under subdivision 3, plus the amount needed to finance
58.32the capital and administrative costs for the projects specified in subdivision 3, and to repay
58.33or retire at maturity the principal, interest, and premium due on any bonds issued for the
59.1projects. Any funds remaining after completion of the projects specified in subdivision
59.23 and retirement or redemption of the associated bonds may be placed in the general
59.3fund of the city. The taxes imposed under subdivisions 1 and 2 may expire at an earlier
59.4time if the city so determines by ordinance.
59.5EFFECTIVE DATE.This section is effective the day after compliance by the
59.6governing body of the city of Hutchinson with Minnesota Statutes, section 645.021,
59.7subdivisions 2 and 3.

59.8    Sec. 31. CITY OF MARSHALL; SALES AND USE TAX.
59.9    Subdivision 1. Authorization. Notwithstanding Minnesota Statutes, section
59.10297A.99, subdivisions 1, 2, and 3, or 477A.016, or any other law, ordinance, or city
59.11charter, the city of Marshall may impose any or all of the taxes described in this section.
59.12    Subd. 2. Sales and use tax authorized. If approved by the voters at a general
59.13election or a special election held within two years of the date of final enactment of this
59.14section, the city of Marshall may impose by ordinance a sales and use tax of up to one-half
59.15of one percent for the purposes specified in subdivision 3. The provisions of Minnesota
59.16Statutes, section 297A.99, except subdivisions 1, 2, and 3, govern the imposition,
59.17administration, collection, and enforcement of the tax authorized under this subdivision.
59.18    Subd. 3. Use of sales and use tax revenues. The revenues derived from the taxes
59.19imposed under subdivision 2 must be used by the city of Marshall to pay the costs of
59.20collecting and administering the sales and use taxes and to pay all or part of the costs of the
59.21new and existing facilities of the Minnesota Emergency Response and Industry Training
59.22Center and all or part of the costs of the facilities of the Southwest Minnesota Regional
59.23Amateur Sports Center. Authorized expenses include, but are not limited to, acquiring
59.24property, predesign, design, and paying construction, furnishing, and equipment costs
59.25related to these facilities and paying debt service on bonds or other obligations issued by
59.26the city of Marshall under subdivision 4 to finance the capital costs of these facilities.
59.27    Subd. 4. Bonds. (a) If the imposition of a sales and use tax is approved by the voters,
59.28the city of Marshall may issue bonds under Minnesota Statutes, chapter 475, to finance all
59.29or a portion of the costs of the facilities authorized in subdivision 3, and may issue bonds
59.30to refund bonds previously issued. The aggregate principal amount of bonds issued under
59.31this subdivision may not exceed $17,290,000, plus an amount to be applied to the payment
59.32of the costs of issuing the bonds. The bonds may be paid from or secured by any funds
59.33available to the city of Marshall, including the taxes authorized under subdivision 2.
60.1(b) The bonds are not included in computing any debt limitation applicable to the
60.2city of Marshall, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
60.3principal and interest on the bonds, is not subject to any levy limitation. A separate
60.4election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
60.5    Subd. 5. Lodging tax. The city of Marshall may impose by ordinance a tax of up to
60.6one and one-half percent on the gross receipts subject to the lodging tax under Minnesota
60.7Statutes, section 469.190, for the purposes specified in subdivision 6. This lodging tax is
60.8in addition to any tax imposed under Minnesota Statutes, section 469.190, and may be
60.9imposed within a tax district defined by the city council.
60.10    Subd. 6. Use of lodging tax revenues. The revenues derived from the tax imposed
60.11under subdivision 5 must be used by the city of Marshall to pay the costs of collecting
60.12and administering the lodging tax, to pay all or part of the operating costs of the new and
60.13existing facilities of the Minnesota Emergency Response and Industry Training Center,
60.14and to pay all or part of the operating costs of the facilities of the Southwest Minnesota
60.15Regional Amateur Sports Center, including funds necessary for promotion and marketing.
60.16    Subd. 7. Food and beverages tax. The city of Marshall may impose by ordinance
60.17an additional sales tax of up to one and one-half percent on all sales of food and beverages
60.18primarily for consumption on the premises by restaurants and places of refreshment that
60.19occur in the city of Marshall. The provisions of Minnesota Statutes, section 297A.99,
60.20except subdivisions 1, 2, and 3, govern the imposition, administration, collection, and
60.21enforcement of the tax authorized under this subdivision.
60.22    Subd. 8. Use of food and beverages tax. The revenues derived from the tax
60.23imposed under subdivision 7 must be used by the city of Marshall to pay the costs of
60.24collecting and administering the food and beverages tax, to pay all or part of the operating
60.25costs of the new and existing facilities of the Minnesota Emergency Response and
60.26Industry Training Center, and to pay all or part of the operating costs of the facilities of
60.27the Southwest Minnesota Regional Amateur Sports Center, including funds necessary for
60.28promotion and marketing.
60.29    Subd. 9. Termination of taxes. The taxes imposed under subdivisions 2, 5, and
60.307 expire at the earlier of (1) 15 years after the tax is first imposed, or (2) when the city
60.31council determines that the amount of revenues received from the taxes to pay for the
60.32capital, operating, and administrative costs of the facilities under subdivisions 3, 6,
60.33and 8 first equals or exceeds the amount authorized to be spent for the facilities plus
60.34the additional amount needed to pay the costs related to issuance of the bonds under
61.1subdivision 4, including interest on the bonds. Any funds remaining after payment of all
61.2the costs and retirement or redemption of the bonds must be placed in the general fund
61.3of the city. The taxes imposed under subdivisions 2, 5, and 7 may expire at an earlier
61.4time if the city so determines by ordinance.
61.5EFFECTIVE DATE.This section is effective the day after compliance by the
61.6governing body of the city of Marshall with Minnesota Statutes, section 645.021,
61.7subdivision 3.


61.10    Section 1. Minnesota Statutes 2008, section 60A.209, subdivision 1, is amended to
61.11read:
61.12    Subdivision 1. Authorization; regulation. A resident of this state may obtain
61.13insurance from an ineligible surplus lines insurer in this state through a surplus lines
61.14licensee. The licensee shall first attempt to place the insurance with a licensed insurer, or
61.15if that is not possible, with an eligible surplus lines insurer. If coverage is not obtainable
61.16from a licensed insurer or an eligible surplus lines insurer, the licensee shall certify to the
61.17commissioner, on a form prescribed by the commissioner, that these attempts were made.
61.18Upon obtaining coverage from an ineligible surplus lines insurer, the licensee shall:
61.19(a) Have printed, typed, or stamped in red ink upon the face of the policy in
61.20not less than 10-point type the following notice: "THIS INSURANCE IS ISSUED
61.21PURSUANT TO THE MINNESOTA SURPLUS LINES INSURANCE ACT. THIS
61.22INSURANCE IS PLACED WITH AN INSURER THAT IS NOT LICENSED BY THE
61.23STATE NOR RECOGNIZED BY THE COMMISSIONER OF COMMERCE AS AN
61.24ELIGIBLE SURPLUS LINES INSURER. IN CASE OF ANY DISPUTE RELATIVE
61.25TO THE TERMS OR CONDITIONS OF THE POLICY OR THE PRACTICES OF
61.26THE INSURER, THE COMMISSIONER OF COMMERCE WILL NOT BE ABLE TO
61.27ASSIST IN THE DISPUTE. IN CASE OF INSOLVENCY, PAYMENT OF CLAIMS IS
61.28NOT GUARANTEED." The notice may not be covered or concealed in any manner; and
61.29(b) Collect from the insured appropriate premium taxes, as provided under chapter
61.30297I, and report the transaction to the commissioner of revenue on a form prescribed by
61.31the commissioner. If the insured fails to pay the taxes when due, the insured shall be
61.32subject to a civil fine of not more than $3,000, plus accrued interest from the inception of
61.33the insurance.
61.34EFFECTIVE DATE.This section is effective the day following final enactment.

62.1    Sec. 2. Minnesota Statutes 2008, section 295.55, subdivision 2, is amended to read:
62.2    Subd. 2. Estimated tax; hospitals; surgical centers. (a) Each hospital or surgical
62.3center must make estimated payments of the taxes for the calendar year in monthly
62.4installments to the commissioner within 15 days after the end of the month.
62.5(b) Estimated tax payments are not required of hospitals or surgical centers if: (1)
62.6the tax for the current calendar year is less than $500 or less; or (2) the tax for the previous
62.7calendar year is less than $500, if the taxpayer had a tax liability and was doing business
62.8the entire year or less.
62.9(c) Underpayment of estimated installments bear interest at the rate specified in
62.10section 270C.40, from the due date of the payment until paid or until the due date of the
62.11annual return whichever comes first. An underpayment of an estimated installment is the
62.12difference between the amount paid and the lesser of (1) 90 percent of one-twelfth of the
62.13tax for the calendar year or (2) one-twelfth of the total tax for the previous calendar year
62.14if the taxpayer had a tax liability and was doing business the entire year.
62.15EFFECTIVE DATE.This section is effective for gross revenues received after
62.16December 31, 2010.

62.17    Sec. 3. Minnesota Statutes 2008, section 295.55, subdivision 3, is amended to read:
62.18    Subd. 3. Estimated tax; other taxpayers. (a) Each taxpayer, other than a hospital
62.19or surgical center, must make estimated payments of the taxes for the calendar year in
62.20quarterly installments to the commissioner by April 15, July 15, October 15, and January
62.2115 of the following calendar year.
62.22(b) Estimated tax payments are not required if: (1) the tax for the current calendar
62.23year is less than $500 or less; or (2) the tax for the previous calendar year is less than
62.24$500, if the taxpayer had a tax liability and was doing business the entire year or less.
62.25(c) Underpayment of estimated installments bear interest at the rate specified in
62.26section 270C.40, from the due date of the payment until paid or until the due date of the
62.27annual return whichever comes first. An underpayment of an estimated installment is the
62.28difference between the amount paid and the lesser of (1) 90 percent of one-quarter of the
62.29tax for the calendar year or (2) one-quarter of the total tax for the previous calendar year
62.30if the taxpayer had a tax liability and was doing business the entire year.
62.31EFFECTIVE DATE.This section is effective for gross revenues received after
62.32December 31, 2010.

62.33    Sec. 4. [296A.061] CANCELLATION OR NONRENEWAL OF LICENSES.
63.1The commissioner may cancel a license or not renew a license if one of the following
63.2conditions occurs:
63.3(1) the license holder has not filed a petroleum tax return or report for at least one
63.4year;
63.5(2) the license holder has not reported any petroleum tax liability on the license
63.6holder's returns or reports for at least one year; or
63.7(3) the license holder requests cancellation of the license.
63.8EFFECTIVE DATE.This section is effective the day following final enactment.

63.9    Sec. 5. Minnesota Statutes 2008, section 297F.01, subdivision 22a, is amended to read:
63.10    Subd. 22a. Weighted average retail price. "Weighted average retail price" means
63.11(1) the average retail price per pack of 20 cigarettes, with the average price weighted by
63.12the number of packs sold at each price, (2) reduced by the sales tax included in the retail
63.13price, and (3) adjusted for the expected inflation from the time of the survey to the average
63.14of the 12 months that the sales tax will be imposed. The commissioner shall make the
63.15inflation adjustment in accordance with the Consumer Price Index for all urban consumers
63.16inflation indicator as published in the most recent state budget forecast. The inflation
63.17factor for the calendar year in which the new tax rate takes effect must be used. If the
63.18survey indicates that the average retail price of cigarettes has not increased relative to the
63.19average retail price in the previous year's survey, then no inflation adjustment must be
63.20made as provided in section 297F.25, subdivision 1.
63.21EFFECTIVE DATE.This section is effective January 1, 2011.

63.22    Sec. 6. Minnesota Statutes 2008, section 297F.04, is amended by adding a subdivision
63.23to read:
63.24    Subd. 2a. Cancellation or nonrenewal. The commissioner may cancel a license or
63.25not renew a license if one of the following conditions occurs:
63.26(1) the license holder has not filed a cigarette or tobacco products tax return for at
63.27least one year;
63.28(2) the license holder has not reported any cigarette or tobacco products tax liability
63.29on the license holder's returns for at least one year; or
63.30(3) the license holder requests cancellation of the license.
63.31EFFECTIVE DATE.This section is effective the day following final enactment.

63.32    Sec. 7. Minnesota Statutes 2008, section 297F.07, subdivision 4, is amended to read:
64.1    Subd. 4. Sales to nonqualified buyers. A retailer who sells or otherwise disposes of
64.2unstamped or untaxed stock other than to a qualified purchaser shall collect from the buyer
64.3or transferee the tax imposed by section 297F.05, and remit the tax to the Department of
64.4Revenue at the same time and manner as required by section 297F.09. If the retailer fails
64.5to collect the tax from the buyer or transferee, or fails to remit the tax, the retailer is
64.6personally responsible for the tax and the commissioner may seize any product destined to
64.7be delivered to the retailer. The product so seized shall be considered contraband and be
64.8subject to the procedures outlined in section 297F.21, subdivision 3. The proceeds of the
64.9sale of the stock may be applied to any tax liability owed by the retailer after deducting all
64.10costs and expenses.
64.11This section does not relieve the buyer or possessor of unstamped or untaxed stock
64.12from personal liability for the tax.
64.13EFFECTIVE DATE.This section is effective the day following final enactment.

64.14    Sec. 8. Minnesota Statutes 2008, section 297F.25, subdivision 1, is amended to read:
64.15    Subdivision 1. Imposition. (a) A tax is imposed on distributors on the sale of
64.16cigarettes by a cigarette distributor to a retailer or cigarette subjobber for resale in this
64.17state. The tax is equal to 6.5 percent of the weighted average retail price. The weighted
64.18average retail price and must be expressed in cents per pack when rounded to the nearest
64.19one-tenth of a cent. The weighted average retail price must be determined annually,
64.20with new rates published by May November 1, and effective for sales on or after August
64.21January 1 of the following year. The weighted average retail price must be established
64.22by surveying cigarette retailers statewide in a manner and time determined by the
64.23commissioner. The commissioner shall make an inflation adjustment in accordance with
64.24the Consumer Price Index for all urban consumers inflation indicator as published in the
64.25most recent state budget forecast. The commissioner shall use the inflation factor for
64.26the calendar year in which the new tax rate takes effect. If the survey indicates that the
64.27average retail price of cigarettes has not increased relative to the average retail price in
64.28the previous year's survey, then the commissioner shall not make an inflation adjustment.
64.29The determination of the commissioner pursuant to this subdivision is not a "rule" and is
64.30not subject to the Administrative Procedure Act contained in chapter 14. As of August 1,
64.312005, the tax is 25.5 cents per pack of 20 cigarettes. For packs of cigarettes with other
64.32than 20 cigarettes, the tax must be adjusted proportionally.
64.33(b) Notwithstanding paragraph (a), and in lieu of a survey of cigarette retailers, the
64.34tax calculation of the weighted average retail price for the sales of cigarettes from August
64.351, 2011, through December 31, 2011, shall be calculated by (1) increasing the average
65.1retail price per pack of 20 cigarettes from the most recent survey by the percentage change
65.2in a weighted average of the presumed legal prices for cigarettes during the year after
65.3completion of that survey, as reported and published by the Department of Commerce
65.4under section 325D.371; (2) subtracting the sales tax included in the retail price; and (3)
65.5adjusting for expected inflation. The rate is published by May 1 and is effective for sales
65.6after July 31. If the weighted average of the presumed legal prices indicates that the
65.7average retail price of cigarettes has not increased relative to the average retail price in the
65.8most recent survey, then no inflation adjustment must be made. For packs of cigarettes
65.9with other than 20 cigarettes, the tax must be adjusted proportionally.
65.10EFFECTIVE DATE.This section is effective January 1, 2011.

65.11    Sec. 9. Minnesota Statutes 2008, section 297I.01, subdivision 9, is amended to read:
65.12    Subd. 9. Gross premiums. "Gross premiums" means total premiums paid by
65.13policyholders and applicants of policies, whether received in the form of money or other
65.14valuable consideration, on property, persons, lives, interests and other risks located,
65.15resident, or to be performed in this state, but excluding consideration and premiums for
65.16reinsurance assumed from other insurance companies.
65.17 The term (a) "Gross premiums" includes the total consideration paid to bail bond
65.18agents for bail bonds.
65.19(b) For title insurance companies, "gross premiums" means the charge for title
65.20insurance made by a title insurance company or its agents according to the company's rate
65.21filing approved by the commissioner of commerce without a deduction for commissions
65.22paid to or retained by the agent. Gross premiums of a title insurance company does not
65.23include any other charge or fee for abstracting, searching, or examining the title, or
65.24escrow, closing, or other related services.
65.25 The term (c) "Gross premiums" includes any workers' compensation special
65.26compensation fund premium surcharge pursuant to section 176.129.
65.27(d) "Gross premiums" for surplus lines insurance includes all related charges,
65.28commissions, and fees received by the licensee. "Gross premiums" does not include
65.29the stamping fee, as provided under section 60A.2085, subdivision 7, nor the operating
65.30assessment, as provided under section 60A.208, subdivision 8.
65.31EFFECTIVE DATE.This section is effective the day following final enactment.

65.32    Sec. 10. Minnesota Statutes 2008, section 297I.05, subdivision 7, is amended to read:
66.1    Subd. 7. Surplus lines tax. (a) A tax is imposed on surplus lines licensees. The rate
66.2of tax is equal to three percent of the gross premiums less return premiums received by the
66.3licensee minus any licensee association operating assessments paid under section 60A.208.
66.4(b) If surplus lines insurance placed by a surplus lines licensee and taxed under this
66.5subdivision covers a subject of insurance residing, located, or to be performed outside
66.6this state, a proper pro rata portion of the entire premium payable for all of that insurance
66.7must be allocated according to the subjects of insurance residing, located, or to be
66.8performed in this state.
66.9EFFECTIVE DATE.This section is effective the day following final enactment.

66.10    Sec. 11. Minnesota Statutes 2008, section 297I.30, subdivision 1, is amended to read:
66.11    Subdivision 1. General rule. On or before March 1, every insurer taxpayer subject
66.12to taxation under section 297I.05, subdivisions 1 to 6 5, 9, 10, and 12, paragraphs (a),
66.13clauses (1) to (5) (4), and (b), (c), and (d), and subdivision 14, shall file an annual return
66.14for the preceding calendar year setting forth such information as the commissioner may
66.15reasonably require on forms in the form prescribed by the commissioner.
66.16EFFECTIVE DATE.This section is effective the day following final enactment.

66.17    Sec. 12. Minnesota Statutes 2008, section 297I.30, subdivision 2, is amended to read:
66.18    Subd. 2. Surplus lines licensees and purchasing groups. On or before February 15
66.19and August 15 of each year, every surplus lines licensee subject to taxation under section
66.20297I.05, subdivision 7 , and every purchasing group or member of a purchasing group
66.21subject to tax under section 297I.05, subdivision 12, paragraph (a), clause (6) (5), shall file
66.22a return with the commissioner for the preceding six-month period ending December 31,
66.23or June 30, setting forth any information the commissioner reasonably prescribes on forms
66.24in the form prescribed by the commissioner.
66.25EFFECTIVE DATE.This section is effective the day following final enactment.

66.26    Sec. 13. Minnesota Statutes 2008, section 297I.30, subdivision 7, is amended to read:
66.27    Subd. 7. Surcharge. (a)(1) By April 30 of each year, every company required to pay
66.28the surcharge under section 297I.10, subdivision 1, shall file a return for the five-month
66.29period ending March 31 setting forth any information the commissioner reasonably
66.30requires on forms in the form prescribed by the commissioner.
66.31(2) (b) By June 30 of each year, every company required to pay the surcharge under
66.32section 297I.10, subdivision 1, shall file a return for the two-month period ending May 31
67.1setting forth any information the commissioner reasonably requires on forms in the form
67.2prescribed by the commissioner.
67.3(3) (c) By November 30 of each year, every company required to pay the surcharge
67.4under section 297I.10, subdivision 1, shall file a return for the five-month period ending
67.5October 31 setting forth any information the commissioner reasonably requires on forms
67.6in the form prescribed by the commissioner.
67.7(b) By February 15 and August 15 of each year, every company required to pay
67.8a surcharge under section 297I.10, subdivision 2, must file a return for the preceding
67.9six-month period ending December 31 and June 30.
67.10EFFECTIVE DATE.This section is effective the day following final enactment.

67.11    Sec. 14. Minnesota Statutes 2008, section 297I.30, subdivision 8, is amended to read:
67.12    Subd. 8. Fire insurance surcharge. On or before May 15, August 15, November
67.1315, and February 15 of each year, every insurer required to pay the surcharge under
67.14section 297I.06, subdivisions 1 and 2, shall file a return with the commissioner for the
67.15preceding three-month period ending March 31, June 30, September 30, and December
67.1631, setting forth any information the commissioner reasonably requires on forms in the
67.17form prescribed by the commissioner.
67.18EFFECTIVE DATE.This section is effective the day following final enactment.

67.19    Sec. 15. Minnesota Statutes 2009 Supplement, section 297I.35, subdivision 2, is
67.20amended to read:
67.21    Subd. 2. Electronic payments. If the aggregate amount of tax and surcharges
67.22due under this chapter during a calendar fiscal year ending June 30 is equal to or
67.23exceeds $10,000, or if the taxpayer is required to make payment of any other tax to the
67.24commissioner by electronic means, then all tax and surcharge payments in the subsequent
67.25calendar year must be paid by electronic means.
67.26EFFECTIVE DATE.This section is effective for payments due in calendar year
67.272010 and thereafter, based upon liabilities incurred in the fiscal year ending June 30,
67.282009, and in fiscal years thereafter.

67.29    Sec. 16. Minnesota Statutes 2008, section 297I.40, subdivision 1, is amended to read:
67.30    Subdivision 1. Requirement to pay. On or before March 15, June 15, September
67.3115, and December 15 of the current year, every taxpayer subject to tax under section
67.32297I.05, subdivisions 1 to 6 5 , and 12, paragraphs (a), clauses (1) to (5), (b), and (e) (4),
68.1and subdivision 14, must pay to the commissioner an installment equal to one-fourth of
68.2the insurer's total estimated tax for the current year.
68.3EFFECTIVE DATE.This section is effective the day following final enactment.

68.4    Sec. 17. Minnesota Statutes 2008, section 297I.40, subdivision 5, is amended to read:
68.5    Subd. 5. Definition of tax. The term "tax" as used in this section means the tax
68.6imposed by section 297I.05, subdivisions 1 to 6 5, 11, and 12, paragraphs (a), clauses (1)
68.7to (5) (4), (b), and (d), and 14, less any offset in section 297I.20.
68.8EFFECTIVE DATE.This section is effective the day following final enactment.

68.9    Sec. 18. Minnesota Statutes 2008, section 297I.65, is amended by adding a subdivision
68.10to read:
68.11    Subd. 4. Omission in excess of 25 percent. Additional taxes or surcharges may be
68.12assessed within 6-1/2 years after the due date of the return or the date the return was filed,
68.13whichever is later, if the taxpayer omits from a gross premiums tax or surcharge return an
68.14amount of tax in excess of 25 percent of the tax or surcharge reported in the return.
68.15EFFECTIVE DATE.This section is effective for premium taxes due after
68.16December 31, 2010.

68.17    Sec. 19. Minnesota Statutes 2008, section 298.282, subdivision 1, is amended to read:
68.18    Subdivision 1. Distribution of taconite municipal aid account. The amount
68.19deposited with the county as provided in section 298.28, subdivision 3, must be distributed
68.20as provided by this section among: (1) the municipalities comprising a tax relief taconite
68.21assistance area under section 273.134, paragraph (b) 273.1341; (2) a township that
68.22contains a state park consisting primarily of an underground iron ore mine; and (3) a city
68.23located within five miles of that state park, each being referred to in this section as a
68.24qualifying municipality.
68.25EFFECTIVE DATE.This section is effective for distributions made after the
68.26day following final enactment.

68.27    Sec. 20. REPEALER.
68.28Minnesota Statutes 2008, section 297I.30, subdivisions 4, 5, and 6, are repealed.
68.29EFFECTIVE DATE.This section is effective the day following final enactment.


69.3    Section 1. Minnesota Statutes 2008, section 82B.035, subdivision 2, is amended to read:
69.4    Subd. 2. Assessors. Nothing in this chapter shall be construed as requiring the
69.5licensing of persons employed and acting in their capacity as assessors for political
69.6subdivisions of the state and performing duties enumerated in section 273.061, subdivision
69.77 or 8.
69.8EFFECTIVE DATE.This section is effective the day following final enactment
69.9for testimony offered and opinions or reports prepared in cases or proceedings that have
69.10not been finally resolved.

69.11    Sec. 2. Minnesota Statutes 2009 Supplement, section 134.34, subdivision 4, is
69.12amended to read:
69.13    Subd. 4. Limitation. (a) For calendar year 2010 and later, a regional library
69.14basic system support grant shall not be made to a regional public library system for a
69.15participating city or county which decreases the dollar amount provided for support for
69.16operating purposes of public library service below the amount provided by it for the
69.17second, or third preceding year, whichever is less. For purposes of this subdivision and
69.18subdivision 1, any funds provided under section 473.757, subdivision 2, for extending
69.19library hours of operation shall not be considered amounts provided by a city or county for
69.20support for operating purposes of public library service. This subdivision shall not apply
69.21to participating cities or counties where the adjusted net tax capacity of that city or county
69.22has decreased, if the dollar amount of the reduction in support is not greater than the dollar
69.23amount by which support would be decreased if the reduction in support were made in
69.24direct proportion to the decrease in adjusted net tax capacity.
69.25(b) For calendar year 2009 and later, in any calendar year in which a city's or
69.26county's aid under sections 477A.011 to 477A.014 or credits credit reimbursement under
69.27section 273.1384 is reduced after the city or county has certified its levy payable in that
69.28year, it may reduce its local support by the lesser of:
69.29(1) ten percent; or
69.30(2) a percent equal to the ratio of the aid and credit reimbursement reductions to the
69.31city's or county's revenue base, based on aids certified for the current calendar year. For
69.32calendar year 2009 only, the reduction under this paragraph shall be based on 2008 aid and
69.33credit reimbursement reductions under the December 2008 unallotment, as well as any
69.34aid and credit reimbursement reductions in calendar year 2009. For pay 2009 only, the
70.1commissioner of revenue will calculate the reductions under this paragraph and certify
70.2them to the commissioner of education within 15 days of May 17, 2009.
70.3(c) For taxes payable in 2010 and later, in any payable year in which the total
70.4amounts certified for city or county aids under sections 477A.011 to 477A.014 are less
70.5than the total amounts paid under those sections in the previous calendar year, a city or
70.6county may reduce its local support by the lesser of:
70.7(1) ten percent; or
70.8(2) a percent equal to the ratio of:
70.9(i) the difference between (A) the sum of the aid it was paid under sections 477A.011
70.10to 477A.014 and the credits credit reimbursement it received under section 273.1398
70.11273.1384 in the previous calendar year and (B) the sum of the aid it is certified to be paid
70.12in the current calendar year under sections 477A.011 to 477A.014 and the credits credit
70.13reimbursement estimated to be paid under section 273.1398 273.1384; to
70.14(ii) its revenue base for the previous year, based on aids actually paid in the previous
70.15calendar year. The commissioner of revenue shall calculate the percent aid cut for each
70.16county and city under this paragraph and certify the percentage cuts to the commissioner
70.17of education by August 1 of the year prior to the year in which the reduced aids and credits
70.18credit reimbursements are to be paid. The percentage of reduction related to reductions to
70.19credits credit reimbursements under section 273.1384 shall be based on the best estimation
70.20available as of July 30.
70.21(d) Notwithstanding paragraph (a), (b), or (c), no city or county shall reduce its
70.22support for public libraries below the minimum level specified in subdivision 1.
70.23(e) For purposes of this subdivision, "revenue base" means the sum of:
70.24(1) its levy for taxes payable in the current calendar year, including the levy on
70.25the fiscal disparities distribution under section 276A.06, subdivision 3, paragraph (a),
70.26or 473F.08, subdivision 3, paragraph (a);
70.27(2) its aid under sections 477A.011 to 477A.014 in the current calendar year; and
70.28(3) its taconite aid in the current calendar year under sections 298.28 and 298.282.
70.29EFFECTIVE DATE.This section is effective retroactively for support in calendar
70.30year 2009 and thereafter and for library grants paid in fiscal year 2010 and thereafter.

70.31    Sec. 3. Minnesota Statutes 2008, section 270.075, subdivision 1, is amended to read:
70.32    Subdivision 1. Rate of tax. The commissioner shall determine the rate of tax to be
70.33levied and collected against the net tax capacity as determined pursuant to section 270.074,
70.34subdivision 2 , to generate revenues sufficient to fund the airflight property tax portion
70.35of each year's state airport fund appropriation, as certified to the commissioner by the
71.1commissioner of transportation. The certification must be presented to the commissioner
71.2prior to December 31 of each year. The property tax portion of the state airport fund
71.3appropriation is the difference between the total fund appropriation and the estimated total
71.4fund revenues from other sources for the state fiscal year in which the tax is payable. If a
71.5levy amount has not been certified by September 1 of a levy year, the commissioner shall
71.6use the last previous certified amount to determine the rate of tax. The certification by the
71.7commissioner of transportation to the commissioner shall state the total fund appropriation
71.8and shall list individually the estimated fund revenues. The difference of these amounts
71.9shall be shown as the property tax portion of the state airport fund appropriation.
71.10EFFECTIVE DATE.This section is effective for taxes payable in 2011 and
71.11thereafter.

71.12    Sec. 4. Minnesota Statutes 2008, section 270.41, subdivision 5, is amended to read:
71.13    Subd. 5. Prohibited activity. A licensed assessor or other person employed by an
71.14assessment jurisdiction or contracting with an assessment jurisdiction for the purpose
71.15of valuing or classifying property for property tax purposes is prohibited from making
71.16appraisals or analyses, accepting an appraisal assignment, or preparing an appraisal report
71.17as defined in section 82B.02, subdivisions 2 to 5, on any property within the assessment
71.18jurisdiction where the individual is employed or performing the duties of the assessor
71.19under contract. Violation of this prohibition shall result in immediate revocation of the
71.20individual's license to assess property for property tax purposes. This prohibition must
71.21not be construed to prohibit an individual from carrying out any duties required for the
71.22proper assessment of property for property tax purposes or performing duties enumerated
71.23in section 273.061, subdivision 7 or 8. If a formal resolution has been adopted by the
71.24governing body of a governmental unit, which specifies the purposes for which such
71.25work will be done, this prohibition does not apply to appraisal activities undertaken on
71.26behalf of and at the request of the governmental unit that has employed or contracted with
71.27the individual. The resolution may only allow appraisal activities which are related to
71.28condemnations, right-of-way acquisitions, or special assessments.
71.29EFFECTIVE DATE.This section is effective the day following final enactment
71.30for testimony offered and opinions or reports prepared in cases or proceedings that have
71.31not been finally resolved.

71.32    Sec. 5. Minnesota Statutes 2008, section 270C.87, is amended to read:
71.33270C.87 REVISION OF MINNESOTA ASSESSORS' MANUAL.
72.1In accordance with the provisions of section 270C.06 270C.85, the commissioner
72.2shall periodically revise the Minnesota assessors' manual.
72.3EFFECTIVE DATE.This section is effective the day following final enactment.

72.4    Sec. 6. Minnesota Statutes 2008, section 270C.94, subdivision 3, is amended to read:
72.5    Subd. 3. Failure to appraise. When an assessor has failed to properly appraise at
72.6least one-fifth of the parcels of property in a district or county as provided in section
72.7273.01 , the commissioner shall may appoint a special assessor and deputy assessor
72.8as necessary and cause a reappraisal to be made of the property due for reassessment
72.9in accordance with law.
72.10EFFECTIVE DATE.This section is effective the day following final enactment.

72.11    Sec. 7. Minnesota Statutes 2008, section 272.02, subdivision 31, is amended to read:
72.12    Subd. 31. Business incubator property. Property owned by a nonprofit charitable
72.13organization that qualifies for tax exemption under section 501(c)(3) of the Internal
72.14Revenue Code that is intended to be used as a business incubator in a high-unemployment
72.15county, is exempt. As used in this subdivision, a "business incubator" is a facility
72.16used for the development of nonretail businesses, offering access to equipment, space,
72.17services, and advice to the tenant businesses, for the purpose of encouraging economic
72.18development, diversification, and job creation in the area served by the organization, and
72.19"high-unemployment county" is a county that had an average annual unemployment rate
72.20of 7.9 percent or greater in 1997. Property that qualifies for the exemption under this
72.21subdivision is limited to no more than two contiguous parcels and structures that do not
72.22exceed in the aggregate 40,000 square feet. This exemption expires after taxes payable
72.23in 2011 2016.
72.24EFFECTIVE DATE.This section is effective the day following final enactment.

72.25    Sec. 8. Minnesota Statutes 2008, section 272.0213, is amended to read:
72.26272.0213 LEASED SEASONAL-RECREATIONAL LAND.
72.27    A county board may elect, by resolution, to Qualified lands, as defined in this
72.28section, are exempt from taxation, including an exemption from the tax under section
72.29273.19 , qualified lands. "Qualified lands" for purposes of this section means property that:
72.30    (1) is owned by a county, city, town, the state, or the federal governments; and
73.1    (2) is rented by the entity for noncommercial seasonal-recreational or noncommercial
73.2seasonal-recreational residential use; and
73.3    (3) was rented for the purposes specified in clause (2) and was exempt from taxation
73.4for property taxes payable in 2008.
73.5EFFECTIVE DATE.This section is effective for taxes payable in 2010 and
73.6thereafter.

73.7    Sec. 9. Minnesota Statutes 2008, section 272.025, subdivision 1, is amended to read:
73.8    Subdivision 1. Statement of exemption. (a) Except in the case of churches and
73.9houses of worship, property solely used for educational purposes by academies, colleges,
73.10universities or seminaries of learning, property owned by the state of Minnesota or any
73.11political subdivision thereof, and property exempt from taxation under section 272.02,
73.12subdivisions 9, 10, 13, 15, 18, 20, and 22 to 26 25, and at the times provided in subdivision
73.133, a taxpayer claiming an exemption from taxation on property described in section
73.14272.02, subdivisions 1 to 33 , shall must file a statement of exemption with the assessor of
73.15the assessment district in which the property is located.
73.16(b) A taxpayer claiming an exemption from taxation on property described in section
73.17272.02, subdivision 10 , shall must file a statement of exemption with the commissioner
73.18of revenue, on or before February 15 of each year for which the taxpayer claims an
73.19exemption.
73.20(c) In case of sickness, absence or other disability or for good cause, the assessor
73.21or the commissioner may extend the time for filing the statement of exemption for a
73.22period not to exceed 60 days.
73.23(d) The commissioner of revenue shall prescribe the form and contents of the
73.24statement of exemption.
73.25EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
73.26thereafter.

73.27    Sec. 10. Minnesota Statutes 2008, section 272.025, subdivision 3, is amended to read:
73.28    Subd. 3. Filing dates. (a) The statement required by subdivision 1, paragraph
73.29(a), must be filed with the assessor by February 1 of the assessment year, however, any
73.30taxpayer who has filed the statement required by subdivision 1 more than 12 months prior
73.31to February 1, 1983, or February 1 of each third year after 1983, shall file a statement by
73.32February 1, 1983, and by February 1 of each third year thereafter.
74.1(b) For churches and houses of worship, and property solely used for educational
74.2purposes by academies, colleges, universities, or seminaries of learning, no statement is
74.3required after the statement filed for the assessment year in which the exemption began.
74.4(c) This section does not apply to existing churches and houses of worship, and
74.5property solely used for educational purposes by academies, colleges, universities, or
74.6seminaries of learning that were exempt for taxes payable in 2011.
74.7EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
74.8thereafter.

74.9    Sec. 11. Minnesota Statutes 2008, section 272.029, subdivision 4, is amended to read:
74.10    Subd. 4. Reports. (a) An owner of a wind energy conversion system subject to tax
74.11under subdivision 3 shall file a report with the commissioner of revenue annually on or
74.12before February 1 detailing the amount of electricity in kilowatt-hours that was produced
74.13by the wind energy conversion system for the previous calendar year. The commissioner
74.14shall prescribe the form of the report. The report must contain the information required
74.15by the commissioner to determine the tax due to each county under this section for the
74.16current year. If an owner of a wind energy conversion system subject to taxation under
74.17this section fails to file the report by the due date, the commissioner of revenue shall
74.18determine the tax based upon the nameplate capacity of the system multiplied by a
74.19capacity factor of 40 60 percent.
74.20(b) On or before February 28, the commissioner of revenue shall notify the owner of
74.21the wind energy conversion systems of the tax due to each county for the current year and
74.22shall certify to the county auditor of each county in which the systems are located the tax
74.23due from each owner for the current year.
74.24EFFECTIVE DATE.This section is effective beginning with reports due on
74.25February 1, 2011, and thereafter.

74.26    Sec. 12. Minnesota Statutes 2008, section 272.029, subdivision 7, is amended to read:
74.27    Subd. 7. Exemption. The tax imposed under this section does not apply to
74.28electricity produced by wind energy conversion systems located in a job opportunity
74.29building zone, designated under section 469.314, for the duration of the zone. The
74.30exemption applies beginning for the first calendar year after designation of the zone
74.31and applies to each calendar year that begins during the designation of the zone. The
74.32exemption only applies if the owner of the system is a qualified business under section
75.1469.310, subdivision 11, who has entered into a business subsidy agreement that covers
75.2the land on which the system is situated.
75.3EFFECTIVE DATE.This section is effective the day following final enactment.

75.4    Sec. 13. Minnesota Statutes 2008, section 273.061, subdivision 7, is amended to read:
75.5    Subd. 7. Division of duties between local and county assessor. The duty of the
75.6duly appointed local assessor shall be to view and appraise the value of all property as
75.7provided by law, but all the book work shall be done by the county assessor, or the
75.8assessor's assistants, and the value of all property subject to assessment and taxation
75.9shall be determined by the county assessor, except as otherwise hereinafter provided. If
75.10directed by the county assessor, the local assessor shall perform the duties enumerated
75.11in subdivision 8, paragraph (16).

75.12    Sec. 14. Minnesota Statutes 2008, section 273.061, subdivision 8, is amended to read:
75.13    Subd. 8. Powers and duties. The county assessor shall have the following powers
75.14and duties:
75.15(1) To call upon and confer with the township and city assessors in the county, and
75.16advise and give them the necessary instructions and directions as to their duties under
75.17the laws of this state, to the end that a uniform assessment of all real property in the
75.18county will be attained.
75.19(2) To assist and instruct the local assessors in the preparation and proper use of land
75.20maps and record cards, in the property classification of real and personal property, and in
75.21the determination of proper standards of value.
75.22(3) To keep the local assessors in the county advised of all changes in assessment
75.23laws and all instructions which the assessor receives from the commissioner of revenue
75.24relating to their duties.
75.25(4) To have authority to require the attendance of groups of local assessors at
75.26sectional meetings called by the assessor for the purpose of giving them further assistance
75.27and instruction as to their duties.
75.28(5) To immediately commence the preparation of a large scale topographical land
75.29map of the county, in such form as may be prescribed by the commissioner of revenue,
75.30showing thereon the location of all railroads, highways and roads, bridges, rivers and
75.31lakes, swamp areas, wooded tracts, stony ridges and other features which might affect
75.32the value of the land. Appropriate symbols shall be used to indicate the best, the fair, and
75.33the poor land of the county. For use in connection with the topographical land map,
75.34the assessor shall prepare and keep available in the assessor's office tables showing fair
76.1average minimum and maximum market values per acre of cultivated, meadow, pasture,
76.2cutover, timber and waste lands of each township. The assessor shall keep the map and
76.3tables available in the office for the guidance of town assessors, boards of review, and
76.4the county board of equalization.
76.5(6) To also prepare and keep available in the office for the guidance of town
76.6assessors, boards of review and the county board of equalization, a land valuation map
76.7of the county, in such form as may be prescribed by the commissioner of revenue. This
76.8map, which shall include the bordering tier of townships of each county adjoining, shall
76.9show the average market value per acre, both with and without improvements, as finally
76.10equalized in the last assessment of real estate, of all land in each town or unorganized
76.11township which lies outside the corporate limits of cities.
76.12(7) To regularly examine all conveyances of land outside the corporate limits of
76.13cities of the first and second class, filed with the county recorder of the county, and keep a
76.14file, by descriptions, of the considerations shown thereon. From the information obtained
76.15by comparing the considerations shown with the market values assessed, the assessor
76.16shall make recommendations to the county board of equalization of necessary changes in
76.17individual assessments or aggregate valuations.
76.18(8) To become familiar with the values of the different items of personal property
76.19so as to be in a position when called upon to advise the boards of review and the county
76.20board of equalization concerning property, market values thereof.
76.21(9) While the county board of equalization is in session, to give it every possible
76.22assistance to enable it to perform its duties. The assessor shall furnish the board with all
76.23necessary charts, tables, comparisons, and data which it requires in its deliberations, and
76.24shall make whatever investigations the board may desire.
76.25(10) At the request of either the board of county commissioners or the commissioner
76.26of revenue, to investigate applications for reductions of valuation and abatements and
76.27settlements of taxes, examine the real or personal property involved, and submit written
76.28reports and recommendations with respect to the applications, in such form as may be
76.29prescribed by the board of county commissioners and commissioner of revenue.
76.30(11) To make diligent search each year for real and personal property which has been
76.31omitted from assessment in the county, and report all such omissions to the county auditor.
76.32(12) To regularly confer with county assessors in all adjacent counties about the
76.33assessment of property in order to uniformly assess and equalize the value of similar
76.34properties and classes of property located in adjacent counties. The conference shall
76.35emphasize the assessment of agricultural and commercial and industrial property or other
76.36properties that may have an inadequate number of sales in a single county.
77.1(13) To render such other services pertaining to the assessment of real and personal
77.2property in the county as are not inconsistent with the duties set forth in this section, and as
77.3may be required by the board of county commissioners or by the commissioner of revenue.
77.4(14) To maintain a record, in conjunction with other county offices, of all transfers of
77.5property to assist in determining the proper classification of property, including but not
77.6limited to, transferring homestead property and name changes on homestead property.
77.7(15) To determine if a homestead application is required due to the transfer of
77.8homestead property or an owner's name change on homestead property.
77.9(16) To perform appraisals of property, review the original assessment and determine
77.10the accuracy of the original assessment, prepare an appraisal or appraisal report, and
77.11testify before any court or other body as an expert or otherwise on behalf of the assessor's
77.12jurisdiction with respect to properties in that jurisdiction.
77.13EFFECTIVE DATE.This section is effective the day following final enactment
77.14for testimony offered and opinions or reports prepared in cases or proceedings that have
77.15not been finally resolved.

77.16    Sec. 15. Minnesota Statutes 2009 Supplement, section 273.111, subdivision 3a,
77.17is amended to read:
77.18    Subd. 3a. Property no longer eligible for deferment. (a) Real estate receiving the
77.19tax deferment under this section for assessment year 2008, but that does not qualify for
77.20the 2009 assessment year due to changes in qualification requirements under Laws 2008,
77.21chapter 366, shall continue to qualify until: (1) the land is sold, transferred, or subdivided,
77.22or (2) the 2013 assessment, whichever is earlier, provided that the property continues to
77.23meet the requirements of Minnesota Statutes 2006, section 273.111, subdivision 3.
77.24    (b) Except as provided in paragraph (c), and subdivision 9, paragraph (b), when
77.25property assessed under this subdivision is withdrawn from the program or becomes
77.26ineligible, the property shall be subject to additional taxes as provided in subdivision 9.
77.27(c) If land described in paragraph (a) is (1) sold or otherwise transferred to a son or
77.28daughter of the owner, or (2) transferred from a family farm limited liability company
77.29upon its termination to a son or daughter of an individual who had an ownership interest
77.30in the company, it will continue to qualify for treatment under this section as long as
77.31it continues to meet the requirements of Minnesota Statutes 2006, section 273.111,
77.32subdivision 3, but no later than the 2013 assessment.
77.33(d) When property assessed under this subdivision is removed from the program
77.34and is enrolled in the rural preserve property tax law program under section 273.114,
78.1the property is not subject to the additional taxes required under this subdivision or
78.2subdivision 9.
78.3EFFECTIVE DATE.This section is effective for taxes payable in 2011 and
78.4thereafter.

78.5    Sec. 16. Minnesota Statutes 2009 Supplement, section 273.111, subdivision 4, is
78.6amended to read:
78.7    Subd. 4. Determination of value. (a) The value of any real estate described
78.8in subdivision 3 shall upon timely application by the owner, in the manner provided
78.9in subdivision 8, be determined solely with reference to its appropriate agricultural
78.10classification and value notwithstanding sections 272.03, subdivision 8, and 273.11.
78.11Furthermore, the assessor shall not consider any added values resulting from
78.12nonagricultural factors. In order to account for the presence of nonagricultural influences
78.13that may affect the value of agricultural land, the commissioner of revenue shall, in
78.14consultation with the Department of Applied Economics at the University of Minnesota,
78.15 develop a fair and uniform method of determining agricultural values the average
78.16agricultural production value of agricultural land for each county in the state that are
78.17consistent with this subdivision. The values must be determined using appropriate sales
78.18data and must consider the most recent available county or regional data for agricultural
78.19production, prices, production expenses, rent, and investment return. The commissioner
78.20shall annually assign the resulting values countywide average value to each county, and
78.21these values shall be used as the basis for determining the agricultural value for all
78.22properties in the county qualifying for tax deferment under this section. In determining
78.23the relative value of agricultural land for each assessment district compared to the county
78.24average, the county assessor shall, in consultation with the Department of Revenue, use
78.25appropriate market and agricultural factors including soil type and soil classification data
78.26available from detailed and general soil surveys.
78.27    (b) In the case of property qualifying for tax deferment only under subdivision 3a,
78.28the assessor shall not consider the presence of commercial, industrial, residential, or
78.29seasonal recreational land use influences in determining the value for ad valorem tax
78.30purposes provided that in no case shall the value exceed the value prescribed by the
78.31commissioner of revenue for class 2a tillable property in that county.
78.32EFFECTIVE DATE.This section is effective for assessment year 2011 and
78.33thereafter.

79.1    Sec. 17. Minnesota Statutes 2008, section 273.113, subdivision 3, is amended to read:
79.2    Subd. 3. Reimbursement for lost revenue. The county auditor shall certify
79.3to the commissioner of revenue, as part of the abstracts of tax lists required to be filed
79.4with the commissioner under section 275.29, the amount of tax lost to the county from
79.5the property tax credit under subdivision 2. Any prior year adjustments must also be
79.6certified in the abstracts of tax lists. The commissioner of revenue shall review the
79.7certifications to determine their accuracy. The commissioner may make the changes
79.8in the certification that are considered necessary or return a certification to the county
79.9auditor for corrections. The commissioner shall reimburse each taxing district, other than
79.10school districts, for the taxes lost. The payments must be made at the time provided in
79.11section 473H.10 for payment to taxing jurisdictions in the same proportion that the ad
79.12valorem tax is distributed. Reimbursements to school districts must be made as provided
79.13in section 273.1392. The amount necessary to make the reimbursements under this section
79.14is annually appropriated from the general fund to the commissioner of revenue.
79.15EFFECTIVE DATE.This section is effective retroactively for taxes payable in
79.162009 and thereafter.

79.17    Sec. 18. Minnesota Statutes 2009 Supplement, section 273.114, subdivision 2, is
79.18amended to read:
79.19    Subd. 2. Requirements. Class 2a or 2b property that had been assessed under
79.20Minnesota Statutes 2006, section 273.111, or that is part of an agricultural homestead
79.21under Minnesota Statutes, section 273.13, subdivision 23, paragraph (a), is entitled to
79.22valuation and tax deferment under this section if:
79.23(1) the land consists of at least ten acres;
79.24(2) a conservation management plan for the land must be prepared by an approved
79.25plan writer and implemented during the period in which the land is subject to valuation
79.26and deferment under this section;
79.27(3) the land must be enrolled for a minimum of ten years; and
79.28(4) there are no delinquent property taxes on the land.; and
79.29Real estate may (5) the property is not be also enrolled for valuation and deferment
79.30under this section and section 273.111, or 273.112, or 273.117, or chapter 290C,
79.31concurrently or 473H.
79.32EFFECTIVE DATE.This section is effective the day following final enactment.

80.1    Sec. 19. Minnesota Statutes 2009 Supplement, section 273.124, subdivision 3a,
80.2is amended to read:
80.3    Subd. 3a. Manufactured home park cooperative. (a) When a manufactured home
80.4park is owned by a corporation or association organized under chapter 308A or 308B,
80.5and each person who owns a share or shares in the corporation or association is entitled
80.6to occupy a lot within the park, the corporation or association may claim homestead
80.7treatment for each lot occupied by a shareholder the park. Each lot must be designated
80.8by legal description or number, and each lot is limited to not more than one-half acre of
80.9land for each homestead.
80.10(b) The manufactured home park shall be valued and assessed as if it were
80.11homestead property within class 1 entitled to homestead treatment if all of the following
80.12criteria are met:
80.13(1) the occupant is using the property as a permanent residence;
80.14(2) the occupant or the cooperative corporation or association is paying the ad
80.15valorem property taxes and any special assessments levied against the land and structure
80.16either directly, or indirectly through dues to the corporation or association; and
80.17(3) (2) the corporation or association organized under chapter 308A or 308B is
80.18wholly owned by persons having a right to occupy a lot owned by the corporation or
80.19association.
80.20(c) A charitable corporation, organized under the laws of Minnesota with no
80.21outstanding stock, and granted a ruling by the Internal Revenue Service for 501(c)(3)
80.22tax-exempt status, qualifies for homestead treatment with respect to member residents of
80.23the a manufactured home park who if its members hold residential participation warrants
80.24entitling them to occupy a lot in the manufactured home park.
80.25(d) "Homestead treatment" under this subdivision means the class rate provided for
80.26class 4c(5)(ii) property under section 273.13, subdivision 25. The homestead market
80.27value credit under section 273.1384 does not apply and the property taxes assessed
80.28against the park shall not be included in the determination of taxes payable for rent paid
80.29under section 290A.03.
80.30EFFECTIVE DATE.This section is effective for taxes payable in 2011 and
80.31thereafter.

80.32    Sec. 20. Minnesota Statutes 2008, section 273.124, subdivision 14, is amended to read:
80.33    Subd. 14. Agricultural homesteads; special provisions. (a) Real estate of less than
80.34ten acres that is the homestead of its owner must be classified as class 2a under section
80.35273.13, subdivision 23 , paragraph (a), if:
81.1    (1) the parcel on which the house is located is contiguous on at least two sides to (i)
81.2agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
81.3Service, or (iii) land administered by the Department of Natural Resources on which in
81.4lieu taxes are paid under sections 477A.11 to 477A.14;
81.5    (2) its owner also owns a noncontiguous parcel of agricultural land that is at least
81.620 acres;
81.7    (3) the noncontiguous land is located not farther than four townships or cities, or a
81.8combination of townships or cities from the homestead; and
81.9    (4) the agricultural use value of the noncontiguous land and farm buildings is equal
81.10to at least 50 percent of the market value of the house, garage, and one acre of land.
81.11    Homesteads initially classified as class 2a under the provisions of this paragraph shall
81.12remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
81.13properties, as long as the homestead remains under the same ownership, the owner owns a
81.14noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
81.15value qualifies under clause (4). Homestead classification under this paragraph is limited
81.16to property that qualified under this paragraph for the 1998 assessment.
81.17    (b)(i) Agricultural property shall be classified as the owner's homestead, to the same
81.18extent as other agricultural homestead property, if all of the following criteria are met:
81.19    (1) the property consists of at least 40 acres including undivided government lots
81.20and correctional 40's;
81.21    (2) the owner, the owner's spouse, the son or daughter of the owner or owner's
81.22spouse, the brother or sister of the owner or owner's spouse, or the grandson or
81.23granddaughter of the owner or the owner's spouse, is actively farming the agricultural
81.24property, either on the person's own behalf as an individual or on behalf of a partnership
81.25operating a family farm, family farm corporation, joint family farm venture, or limited
81.26liability company of which the person is a partner, shareholder, or member;
81.27    (3) both the owner of the agricultural property and the person who is actively
81.28farming the agricultural property under clause (2), are Minnesota residents;
81.29    (4) neither the owner nor the spouse of the owner claims another agricultural
81.30homestead in Minnesota; and
81.31    (5) neither the owner nor the person actively farming the property lives farther
81.32than four townships or cities, or a combination of four townships or cities, from the
81.33agricultural property, except that if the owner or the owner's spouse is required to live in
81.34employer-provided housing, the owner or owner's spouse, whichever is actively farming
81.35the agricultural property, may live more than four townships or cities, or combination of
81.36four townships or cities from the agricultural property.
82.1    The relationship under this paragraph may be either by blood or marriage.
82.2    (ii) Real property held by a trustee under a trust is eligible for agricultural homestead
82.3classification under this paragraph if the qualifications in clause (i) are met, except that
82.4"owner" means the grantor of the trust.
82.5    (iii) Property containing the residence of an owner who owns qualified property
82.6under clause (i) shall be classified as part of the owner's agricultural homestead, if that
82.7property is also used for noncommercial storage or drying of agricultural crops.
82.8    (c) Noncontiguous land shall be included as part of a homestead under section
82.9273.13, subdivision 23 , paragraph (a), only if the homestead is classified as class 2a
82.10and the detached land is located in the same township or city, or not farther than four
82.11townships or cities or combination thereof from the homestead. Any taxpayer of these
82.12noncontiguous lands must notify the county assessor that the noncontiguous land is part of
82.13the taxpayer's homestead, and, if the homestead is located in another county, the taxpayer
82.14must also notify the assessor of the other county.
82.15    (d) Agricultural land used for purposes of a homestead and actively farmed by a
82.16person holding a vested remainder interest in it must be classified as a homestead under
82.17section 273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a,
82.18any other dwellings on the land used for purposes of a homestead by persons holding
82.19vested remainder interests who are actively engaged in farming the property, and up to
82.20one acre of the land surrounding each homestead and reasonably necessary for the use of
82.21the dwelling as a home, must also be assessed class 2a.
82.22    (e) Agricultural land and buildings that were class 2a homestead property under
82.23section 273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain
82.24classified as agricultural homesteads for subsequent assessments if:
82.25    (1) the property owner abandoned the homestead dwelling located on the agricultural
82.26homestead as a result of the April 1997 floods;
82.27    (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman,
82.28or Wilkin;
82.29    (3) the agricultural land and buildings remain under the same ownership for the
82.30current assessment year as existed for the 1997 assessment year and continue to be used
82.31for agricultural purposes;
82.32    (4) the dwelling occupied by the owner is located in Minnesota and is within 30
82.33miles of one of the parcels of agricultural land that is owned by the taxpayer; and
82.34    (5) the owner notifies the county assessor that the relocation was due to the 1997
82.35floods, and the owner furnishes the assessor any information deemed necessary by the
82.36assessor in verifying the change in dwelling. Further notifications to the assessor are not
83.1required if the property continues to meet all the requirements in this paragraph and any
83.2dwellings on the agricultural land remain uninhabited.
83.3    (f) Agricultural land and buildings that were class 2a homestead property under
83.4section 273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain
83.5classified agricultural homesteads for subsequent assessments if:
83.6    (1) the property owner abandoned the homestead dwelling located on the agricultural
83.7homestead as a result of damage caused by a March 29, 1998, tornado;
83.8    (2) the property is located in the county of Blue Earth, Brown, Cottonwood,
83.9LeSueur, Nicollet, Nobles, or Rice;
83.10    (3) the agricultural land and buildings remain under the same ownership for the
83.11current assessment year as existed for the 1998 assessment year;
83.12    (4) the dwelling occupied by the owner is located in this state and is within 50 miles
83.13of one of the parcels of agricultural land that is owned by the taxpayer; and
83.14    (5) the owner notifies the county assessor that the relocation was due to a March 29,
83.151998, tornado, and the owner furnishes the assessor any information deemed necessary by
83.16the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the
83.17owner must notify the assessor by December 1, 1998. Further notifications to the assessor
83.18are not required if the property continues to meet all the requirements in this paragraph
83.19and any dwellings on the agricultural land remain uninhabited.
83.20    (g) Agricultural property of a family farm corporation, joint family farm venture,
83.21family farm limited liability company, or partnership operating a family farm as described
83.22under subdivision 8 shall be classified homestead, to the same extent as other agricultural
83.23homestead property, if all of the following criteria are met:
83.24    (1) the property consists of at least 40 acres including undivided government lots
83.25and correctional 40's;
83.26    (2) a shareholder, member, or partner of that entity is actively farming the
83.27agricultural property;
83.28    (3) that shareholder, member, or partner who is actively farming the agricultural
83.29property is a Minnesota resident;
83.30    (4) neither that shareholder, member, or partner, nor the spouse of that shareholder,
83.31member, or partner claims another agricultural homestead in Minnesota; and
83.32    (5) that shareholder, member, or partner does not live farther than four townships or
83.33cities, or a combination of four townships or cities, from the agricultural property.
83.34    Homestead treatment applies under this paragraph for property leased to a family
83.35farm corporation, joint farm venture, limited liability company, or partnership operating a
84.1family farm if legal title to the property is in the name of an individual who is a member,
84.2shareholder, or partner in the entity.
84.3    (h) To be eligible for the special agricultural homestead under this subdivision, an
84.4initial full application must be submitted to the county assessor where the property is
84.5located. Owners and the persons who are actively farming the property shall be required
84.6to complete only a one-page abbreviated version of the application in each subsequent
84.7year provided that none of the following items have changed since the initial application:
84.8    (1) the day-to-day operation, administration, and financial risks remain the same;
84.9    (2) the owners and the persons actively farming the property continue to live within
84.10the four townships or city criteria and are Minnesota residents;
84.11    (3) the same operator of the agricultural property is listed with the Farm Service
84.12Agency;
84.13    (4) a Schedule F or equivalent income tax form was filed for the most recent year;
84.14    (5) the property's acreage is unchanged; and
84.15    (6) none of the property's acres have been enrolled in a federal or state farm program
84.16since the initial application.
84.17    The owners and any persons who are actively farming the property must include
84.18the appropriate Social Security numbers, and sign and date the application. If any of the
84.19specified information has changed since the full application was filed, the owner must
84.20notify the assessor, and must complete a new application to determine if the property
84.21continues to qualify for the special agricultural homestead. The commissioner of revenue
84.22shall prepare a standard reapplication form for use by the assessors.
84.23    (i) Agricultural land and buildings that were class 2a homestead property under
84.24section 273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain
84.25classified agricultural homesteads for subsequent assessments if:
84.26    (1) the property owner abandoned the homestead dwelling located on the agricultural
84.27homestead as a result of damage caused by the August 2007 floods;
84.28    (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted,
84.29Steele, Wabasha, or Winona;
84.30    (3) the agricultural land and buildings remain under the same ownership for the
84.31current assessment year as existed for the 2007 assessment year;
84.32    (4) the dwelling occupied by the owner is located in this state and is within 50 miles
84.33of one of the parcels of agricultural land that is owned by the taxpayer; and
84.34    (5) the owner notifies the county assessor that the relocation was due to the August
84.352007 floods, and the owner furnishes the assessor any information deemed necessary by
84.36the assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the
85.1owner must notify the assessor by December 1, 2008. Further notifications to the assessor
85.2are not required if the property continues to meet all the requirements in this paragraph
85.3and any dwellings on the agricultural land remain uninhabited.
85.4    (j) Agricultural land and buildings that were class 2a homestead property under
85.5section 273.13, subdivision 23, paragraph (a), for the 2008 assessment shall remain
85.6classified as agricultural homesteads for subsequent assessments if:
85.7    (1) the property owner abandoned the homestead dwelling located on the agricultural
85.8homestead as a result of the March 2009 floods;
85.9    (2) the property is located in the county of Marshall;
85.10    (3) the agricultural land and buildings remain under the same ownership for the
85.11current assessment year as existed for the 2008 assessment year and continue to be used
85.12for agricultural purposes;
85.13    (4) the dwelling occupied by the owner is located in Minnesota and is within 50
85.14miles of one of the parcels of agricultural land that is owned by the taxpayer; and
85.15    (5) the owner notifies the county assessor that the relocation was due to the 2009
85.16floods, and the owner furnishes the assessor any information deemed necessary by the
85.17assessor in verifying the change in dwelling. Further notifications to the assessor are not
85.18required if the property continues to meet all the requirements in this paragraph and any
85.19dwellings on the agricultural land remain uninhabited.
85.20EFFECTIVE DATE.This section is effective for assessment years 2010 and 2011,
85.21for taxes payable in 2011 and 2012.

85.22    Sec. 21. Minnesota Statutes 2008, section 273.13, subdivision 22, is amended to read:
85.23    Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b)
85.24and (c), real estate which is residential and used for homestead purposes is class 1a. In the
85.25case of a duplex or triplex in which one of the units is used for homestead purposes, the
85.26entire property is deemed to be used for homestead purposes. The market value of class 1a
85.27property must be determined based upon the value of the house, garage, and land.
85.28    The first $500,000 of market value of class 1a property has a net class rate of
85.29one percent of its market value; and the market value of class 1a property that exceeds
85.30$500,000 has a class rate of 1.25 percent of its market value.
85.31    (b) Class 1b property includes homestead real estate or homestead manufactured
85.32homes used for the purposes of a homestead by:
85.33    (1) any person who is blind as defined in section 256D.35, or the blind person and
85.34the blind person's spouse;
86.1    (2) any person who is permanently and totally disabled or by the disabled person and
86.2the disabled person's spouse; or
86.3    (3) the surviving spouse of a permanently and totally disabled veteran homesteading
86.4a property classified under this paragraph for taxes payable in 2008.
86.5    Property is classified and assessed under clause (2) only if the government agency or
86.6income-providing source certifies, upon the request of the homestead occupant, that the
86.7homestead occupant satisfies the disability requirements of this paragraph, and that the
86.8property is not eligible for the valuation exclusion under subdivision 34.
86.9    Property is classified and assessed under paragraph (b) only if the commissioner
86.10of revenue or the county assessor certifies that the homestead occupant satisfies the
86.11requirements of this paragraph.
86.12    Permanently and totally disabled for the purpose of this subdivision means a
86.13condition which is permanent in nature and totally incapacitates the person from working
86.14at an occupation which brings the person an income. The first $50,000 market value of
86.15class 1b property has a net class rate of .45 percent of its market value. The remaining
86.16market value of class 1b property has a class rate using the rates for class 1a or class 2a
86.17property, whichever is appropriate, of similar market value.
86.18    (c) Class 1c property is commercial use real and personal property that abuts public
86.19water as defined in section 103G.005, subdivision 15, and is devoted to temporary and
86.20seasonal residential occupancy for recreational purposes but not devoted to commercial
86.21purposes for more than 250 days in the year preceding the year of assessment, and that
86.22includes a portion used as a homestead by the owner, which includes a dwelling occupied
86.23as a homestead by a shareholder of a corporation that owns the resort, a partner in a
86.24partnership that owns the resort, or a member of a limited liability company that owns
86.25the resort even if the title to the homestead is held by the corporation, partnership, or
86.26limited liability company. For purposes of this clause, property is devoted to a commercial
86.27purpose on a specific day if any portion of the property, excluding the portion used
86.28exclusively as a homestead, is used for residential occupancy and a fee is charged for
86.29residential occupancy. Class 1c property must contain three or more rental units. A
86.30"rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual
86.31camping site equipped with water and electrical hookups for recreational vehicles. Class
86.321c property must provide recreational activities such as the rental of ice fishing houses,
86.33boats and motors, snowmobiles, downhill or cross-country ski equipment; provide marina
86.34services, launch services, or guide services; or sell bait and fishing tackle. Any unit in
86.35which the right to use the property is transferred to an individual or entity by deeded
86.36interest, or the sale of shares or stock, no longer qualifies for class 1c even though it may
87.1remain available for rent. A camping pad offered for rent by a property that otherwise
87.2qualifies for class 1c is also class 1c, regardless of the term of the rental agreement, as
87.3long as the use of the camping pad does not exceed 250 days. If an owner of property
87.4that had been classified as class 1c ceases to use that property as a homestead but retains
87.5ownership of that property and continues to operate it as a resort, and begins to occupy
87.6a second property that is located in the same township as the original class 1c property,
87.7both properties will be assessed as a single class 1c property, provided that the second
87.8property would separately qualify to be assessed as class 1c property. The portion of the
87.9property used as a homestead is class 1a property under paragraph (a). The remainder
87.10of the property is classified as follows: the first $600,000 of market value is tier I, the
87.11next $1,700,000 of market value is tier II, and any remaining market value is tier III.
87.12The class rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III,
87.131.25 percent. Owners of real and personal property devoted to temporary and seasonal
87.14residential occupancy for recreation purposes in which all or a portion of the property
87.15was devoted to commercial purposes for not more than 250 days in the year preceding
87.16the year of assessment desiring classification as class 1c, must submit a declaration to the
87.17assessor designating the cabins or units occupied for 250 days or less in the year preceding
87.18the year of assessment by January 15 of the assessment year. Those cabins or units and
87.19a proportionate share of the land on which they are located must be designated as class
87.201c as otherwise provided. The remainder of the cabins or units and a proportionate share
87.21of the land on which they are located must be designated as class 3a commercial. The
87.22owner of property desiring designation as class 1c property must provide guest registers or
87.23other records demonstrating that the units for which class 1c designation is sought were
87.24not occupied for more than 250 days in the year preceding the assessment if so requested.
87.25The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference
87.26center or meeting room, and (5) other nonresidential facility operated on a commercial
87.27basis not directly related to temporary and seasonal residential occupancy for recreation
87.28purposes does not qualify for class 1c.
87.29    (d) Class 1d property includes structures that meet all of the following criteria:
87.30    (1) the structure is located on property that is classified as agricultural property under
87.31section 273.13, subdivision 23;
87.32    (2) the structure is occupied exclusively by seasonal farm workers during the time
87.33when they work on that farm, and the occupants are not charged rent for the privilege of
87.34occupying the property, provided that use of the structure for storage of farm equipment
87.35and produce does not disqualify the property from classification under this paragraph;
88.1    (3) the structure meets all applicable health and safety requirements for the
88.2appropriate season; and
88.3    (4) the structure is not salable as residential property because it does not comply
88.4with local ordinances relating to location in relation to streets or roads.
88.5    The market value of class 1d property has the same class rates as class 1a property
88.6under paragraph (a).
88.7EFFECTIVE DATE.This section is effective for taxes levied in 2010, payable
88.8in 2011, and thereafter.

88.9    Sec. 22. Minnesota Statutes 2009 Supplement, section 273.13, subdivision 23, is
88.10amended to read:
88.11    Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural
88.12land that is homesteaded, along with any class 2b rural vacant land that is contiguous to
88.13the class 2a land under the same ownership. The market value of the house and garage
88.14and immediately surrounding one acre of land has the same class rates as class 1a or 1b
88.15property under subdivision 22. The value of the remaining land including improvements
88.16up to the first tier valuation limit of agricultural homestead property has a net class rate
88.17of 0.5 percent of market value. The remaining property over the first tier has a class rate
88.18of one percent of market value. For purposes of this subdivision, the "first tier valuation
88.19limit of agricultural homestead property" and "first tier" means the limit certified under
88.20section 273.11, subdivision 23.
88.21    (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
88.22are agricultural land and buildings. Class 2a property has a net class rate of one percent of
88.23market value, unless it is part of an agricultural homestead under paragraph (a). Class
88.242a property must also include any property that would otherwise be classified as 2b,
88.25but is interspersed with class 2a property, including but not limited to sloughs, wooded
88.26wind shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback
88.27requirement, and other similar land that is impractical for the assessor to value separately
88.28from the rest of the property or that is unlikely to be able to be sold separately from
88.29the rest of the property.
88.30    An assessor may classify the part of a parcel described in this subdivision that is used
88.31for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
88.32    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof,
88.33that are unplatted real estate, rural in character and not used for agricultural purposes,
88.34including land used for growing trees for timber, lumber, and wood and wood products,
88.35that is not improved with a structure. The presence of a minor, ancillary nonresidential
89.1structure as defined by the commissioner of revenue does not disqualify the property from
89.2classification under this paragraph. Any parcel of 20 acres or more improved with a
89.3structure that is not a minor, ancillary nonresidential structure must be split-classified, and
89.4ten acres must be assigned to the split parcel containing the structure. Class 2b property
89.5has a net class rate of one percent of market value unless it is part of an agricultural
89.6homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
89.7    (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
89.8acres statewide per taxpayer that is being managed under a forest management plan that
89.9meets the requirements of chapter 290C, but is not enrolled in the sustainable forest
89.10resource management incentive program. It has a class rate of .65 percent, provided that
89.11the owner of the property must apply to the assessor in order for the property to initially
89.12qualify for the reduced rate and provide the information required by the assessor to verify
89.13that the property qualifies for the reduced rate. If the assessor receives the application
89.14and information before May 1 in an assessment year, the property qualifies beginning
89.15with that assessment year. If the assessor receives the application and information after
89.16April 30 in an assessment year, the property may not qualify until the next assessment
89.17year. The commissioner of natural resources must concur that the land is qualified. The
89.18commissioner of natural resources shall annually provide county assessors verification
89.19information on a timely basis. The presence of a minor, ancillary nonresidential structure
89.20as defined by the commissioner of revenue does not disqualify the property from
89.21classification under this paragraph.
89.22    (e) Agricultural land as used in this section means contiguous acreage of ten
89.23acres or more, used during the preceding year for agricultural purposes. "Agricultural
89.24purposes" as used in this section means the raising, cultivation, drying, or storage of
89.25agricultural products for sale, or the storage of machinery or equipment used in support
89.26of agricultural production by the same farm entity. For a property to be classified as
89.27agricultural based only on the drying or storage of agricultural products, the products
89.28being dried or stored must have been produced by the same farm entity as the entity
89.29operating the drying or storage facility. "Agricultural purposes" also includes enrollment
89.30in the Reinvest in Minnesota program under sections 103F.501 to 103F.535 or the federal
89.31Conservation Reserve Program as contained in Public Law 99-198 or a similar state
89.32or federal conservation program if the property was classified as agricultural (i) under
89.33this subdivision for the assessment year 2002 or (ii) in the year prior to its enrollment.
89.34Agricultural classification shall not be based upon the market value of any residential
89.35structures on the parcel or contiguous parcels under the same ownership.
90.1    (f) Real estate of less than ten acres, which is exclusively or intensively used for
90.2raising or cultivating agricultural products, shall be considered as agricultural land. To
90.3qualify under this paragraph, property that includes a residential structure must be used
90.4intensively for one of the following purposes:
90.5    (i) for drying or storage of grain or storage of machinery or equipment used to
90.6support agricultural activities on other parcels of property operated by the same farming
90.7entity;
90.8    (ii) as a nursery, provided that only those acres used to produce nursery stock are
90.9considered agricultural land;
90.10    (iii) for livestock or poultry confinement, provided that land that is used only for
90.11pasturing and grazing does not qualify; or
90.12    (iv) for market farming; for purposes of this paragraph, "market farming" means the
90.13cultivation of one or more fruits or vegetables or production of animal or other agricultural
90.14products for sale to local markets by the farmer or an organization with which the farmer
90.15is affiliated.
90.16    (g) Land shall be classified as agricultural even if all or a portion of the agricultural
90.17use of that property is the leasing to, or use by another person for agricultural purposes.
90.18    Classification under this subdivision is not determinative for qualifying under
90.19section 273.111.
90.20    (h) The property classification under this section supersedes, for property tax
90.21purposes only, any locally administered agricultural policies or land use restrictions that
90.22define minimum or maximum farm acreage.
90.23    (i) The term "agricultural products" as used in this subdivision includes production
90.24for sale of:
90.25    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
90.26animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains,
90.27bees, and apiary products by the owner;
90.28    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned
90.29for agricultural use;
90.30    (3) the commercial boarding of horses, which may include related horse training
90.31and riding instruction, if the boarding is done in conjunction with on property that is also
90.32used for raising pasture to graze horses or raising or cultivating other agricultural products
90.33as defined in clause (1);
90.34    (4) property which is owned and operated by nonprofit organizations used for
90.35equestrian activities, excluding racing;
91.1    (5) game birds and waterfowl bred and raised for use on a shooting preserve licensed
91.2under section 97A.115;
91.3    (6) insects primarily bred to be used as food for animals;
91.4    (7) trees, grown for sale as a crop, including short rotation woody crops, and not
91.5sold for timber, lumber, wood, or wood products; and
91.6    (8) maple syrup taken from trees grown by a person licensed by the Minnesota
91.7Department of Agriculture under chapter 28A as a food processor.
91.8    (j) If a parcel used for agricultural purposes is also used for commercial or industrial
91.9purposes, including but not limited to:
91.10    (1) wholesale and retail sales;
91.11    (2) processing of raw agricultural products or other goods;
91.12    (3) warehousing or storage of processed goods; and
91.13    (4) office facilities for the support of the activities enumerated in clauses (1), (2),
91.14and (3),
91.15the assessor shall classify the part of the parcel used for agricultural purposes as class
91.161b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its
91.17use. The grading, sorting, and packaging of raw agricultural products for first sale is
91.18considered an agricultural purpose. A greenhouse or other building where horticultural
91.19or nursery products are grown that is also used for the conduct of retail sales must be
91.20classified as agricultural if it is primarily used for the growing of horticultural or nursery
91.21products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of
91.22those products. Use of a greenhouse or building only for the display of already grown
91.23horticultural or nursery products does not qualify as an agricultural purpose.
91.24    (k) The assessor shall determine and list separately on the records the market value
91.25of the homestead dwelling and the one acre of land on which that dwelling is located. If
91.26any farm buildings or structures are located on this homesteaded acre of land, their market
91.27value shall not be included in this separate determination.
91.28    (l) Class 2d airport landing area consists of a landing area or public access area of
91.29a privately owned public use airport. It has a class rate of one percent of market value.
91.30To qualify for classification under this paragraph, a privately owned public use airport
91.31must be licensed as a public airport under section 360.018. For purposes of this paragraph,
91.32"landing area" means that part of a privately owned public use airport properly cleared,
91.33regularly maintained, and made available to the public for use by aircraft and includes
91.34runways, taxiways, aprons, and sites upon which are situated landing or navigational aids.
91.35A landing area also includes land underlying both the primary surface and the approach
91.36surfaces that comply with all of the following:
92.1    (i) the land is properly cleared and regularly maintained for the primary purposes of
92.2the landing, taking off, and taxiing of aircraft; but that portion of the land that contains
92.3facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
92.4    (ii) the land is part of the airport property; and
92.5    (iii) the land is not used for commercial or residential purposes.
92.6The land contained in a landing area under this paragraph must be described and certified
92.7by the commissioner of transportation. The certification is effective until it is modified,
92.8or until the airport or landing area no longer meets the requirements of this paragraph.
92.9For purposes of this paragraph, "public access area" means property used as an aircraft
92.10parking ramp, apron, or storage hangar, or an arrival and departure building in connection
92.11with the airport.
92.12    (m) Class 2e consists of land with a commercial aggregate deposit that is not actively
92.13being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
92.14located in a county that has elected to opt-out of the aggregate preservation program as
92.15provided in section 273.1115, subdivision 6. It has a class rate of one percent of market
92.16value. To qualify for classification under this paragraph, the property must be at least
92.17ten contiguous acres in size and the owner of the property must record with the county
92.18recorder of the county in which the property is located an affidavit containing:
92.19    (1) a legal description of the property;
92.20    (2) a disclosure that the property contains a commercial aggregate deposit that is not
92.21actively being mined but is present on the entire parcel enrolled;
92.22    (3) documentation that the conditional use under the county or local zoning
92.23ordinance of this property is for mining; and
92.24    (4) documentation that a permit has been issued by the local unit of government
92.25or the mining activity is allowed under local ordinance. The disclosure must include a
92.26statement from a registered professional geologist, engineer, or soil scientist delineating
92.27the deposit and certifying that it is a commercial aggregate deposit.
92.28    For purposes of this section and section 273.1115, "commercial aggregate deposit"
92.29means a deposit that will yield crushed stone or sand and gravel that is suitable for use
92.30as a construction aggregate; and "actively mined" means the removal of top soil and
92.31overburden in preparation for excavation or excavation of a commercial deposit.
92.32    (n) When any portion of the property under this subdivision or subdivision 22 begins
92.33to be actively mined, the owner must file a supplemental affidavit within 60 days from
92.34the day any aggregate is removed stating the number of acres of the property that is
92.35actively being mined. The acres actively being mined must be (1) valued and classified
92.36under subdivision 24 in the next subsequent assessment year, and (2) removed from the
93.1aggregate resource preservation property tax program under section 273.1115, if the
93.2land was enrolled in that program. Copies of the original affidavit and all supplemental
93.3affidavits must be filed with the county assessor, the local zoning administrator, and the
93.4Department of Natural Resources, Division of Land and Minerals. A supplemental
93.5affidavit must be filed each time a subsequent portion of the property is actively mined,
93.6provided that the minimum acreage change is five acres, even if the actual mining activity
93.7constitutes less than five acres.
93.8(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are
93.9not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions
93.10in section 14.386 concerning exempt rules do not apply.
93.11EFFECTIVE DATE.This section is effective for property taxes levied in 2010 and
93.12thereafter, for property taxes payable in 2011 and thereafter.

93.13    Sec. 23. Minnesota Statutes 2009 Supplement, section 273.13, subdivision 25, is
93.14amended to read:
93.15    Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more
93.16units and used or held for use by the owner or by the tenants or lessees of the owner
93.17as a residence for rental periods of 30 days or more, excluding property qualifying for
93.18class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other
93.19than hospitals exempt under section 272.02, and contiguous property used for hospital
93.20purposes, without regard to whether the property has been platted or subdivided. The
93.21market value of class 4a property has a class rate of 1.25 percent.
93.22    (b) Class 4b includes:
93.23    (1) residential real estate containing less than four units that does not qualify as class
93.244bb, other than seasonal residential recreational property;
93.25    (2) manufactured homes not classified under any other provision;
93.26    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead
93.27farm classified under subdivision 23, paragraph (b) containing two or three units; and
93.28    (4) unimproved property that is classified residential as determined under subdivision
93.2933.
93.30    The market value of class 4b property has a class rate of 1.25 percent.
93.31    (c) Class 4bb includes:
93.32    (1) nonhomestead residential real estate containing one unit, other than seasonal
93.33residential recreational property; and
93.34    (2) a single family dwelling, garage, and surrounding one acre of property on a
93.35nonhomestead farm classified under subdivision 23, paragraph (b).
94.1    Class 4bb property has the same class rates as class 1a property under subdivision 22.
94.2    Property that has been classified as seasonal residential recreational property at
94.3any time during which it has been owned by the current owner or spouse of the current
94.4owner does not qualify for class 4bb.
94.5    (d) Class 4c property includes:
94.6    (1) except as provided in subdivision 22, paragraph (c), real and personal property
94.7devoted to temporary and seasonal residential occupancy for recreation purposes,
94.8including real and personal property devoted to temporary and seasonal residential
94.9occupancy for recreation purposes and not devoted to commercial purposes for more
94.10than 250 days in the year preceding the year of assessment. For purposes of this clause,
94.11property is devoted to a commercial purpose on a specific day if any portion of the
94.12property is used for residential occupancy, and a fee is charged for residential occupancy.
94.13Class 4c property under this clause must contain three or more rental units. A "rental unit"
94.14is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
94.15equipped with water and electrical hookups for recreational vehicles. Class 4c property
94.16under this clause must provide recreational activities such as renting ice fishing houses,
94.17boats and motors, snowmobiles, downhill or cross-country ski equipment; provide marina
94.18services, launch services, or guide services; or sell bait and fishing tackle. A camping pad
94.19offered for rent by a property that otherwise qualifies for class 4c under this clause is also
94.20class 4c under this clause regardless of the term of the rental agreement, as long as the
94.21use of the camping pad does not exceed 250 days. In order for a property to be classified
94.22as class 4c, seasonal residential recreational for commercial purposes under this clause,
94.23(i) at least 40 percent of the annual gross lodging receipts related to the property must be
94.24from business conducted during 90 consecutive days and either (i) (A) at least 60 percent
94.25of all paid bookings by lodging guests during the year must be for periods of at least
94.26two consecutive nights; or (ii) (B) at least 20 percent of the annual gross receipts must
94.27be from charges for rental of fish houses, boats and motors, snowmobiles, downhill or
94.28cross-country ski equipment, or charges for marina services, launch services, and guide
94.29services, or the sale of bait and fishing tackle; or (ii) the property contains 20 or fewer
94.30rental units, is devoted to temporary residential occupancy for no more than 250 days in the
94.31year, meets the requirement in item (i), subitem (A), is located in a township or a city with
94.32a population of 2,500 or less, that is located outside the metropolitan area as defined under
94.33section 473.121, subdivision 2, and that contains a portion of a state trail administered by
94.34the Department of Natural Resources. For purposes of this determination, a paid booking
94.35of five or more nights shall be counted as two bookings. Class 4c property classified under
94.36this clause also includes commercial use real property used exclusively for recreational
95.1purposes in conjunction with other class 4c property classified under this clause and
95.2devoted to temporary and seasonal residential occupancy for recreational purposes, up to a
95.3total of two acres, provided the property is not devoted to commercial recreational use for
95.4more than 250 days in the year preceding the year of assessment and is located within two
95.5miles of the class 4c property with which it is used. Owners of real and personal property
95.6devoted to temporary and seasonal residential occupancy for recreation purposes and all
95.7or a portion of which was devoted to commercial purposes for not more than 250 days in
95.8the year preceding the year of assessment desiring classification as class 4c, must submit a
95.9declaration to the assessor designating the cabins or units occupied for 250 days or less in
95.10the year preceding the year of assessment by January 15 of the assessment year. Those
95.11cabins or units and a proportionate share of the land on which they are located must
95.12be designated class 4c under this clause as otherwise provided. The remainder of the
95.13cabins or units and a proportionate share of the land on which they are located will be
95.14designated as class 3a. The owner of property desiring designation as class 4c property
95.15under this clause must provide guest registers or other records demonstrating that the units
95.16for which class 4c designation is sought were not occupied for more than 250 days in the
95.17year preceding the assessment if so requested. The portion of a property operated as a
95.18(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other
95.19nonresidential facility operated on a commercial basis not directly related to temporary
95.20and seasonal residential occupancy for recreation purposes does not qualify for class 4c;
95.21    (2) qualified property used as a golf course if:
95.22    (i) it is open to the public on a daily fee basis. It may charge membership fees or
95.23dues, but a membership fee may not be required in order to use the property for golfing,
95.24and its green fees for golfing must be comparable to green fees typically charged by
95.25municipal courses; and
95.26    (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
95.27    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
95.28with the golf course is classified as class 3a property;
95.29    (3) real property up to a maximum of three acres of land owned and used by a
95.30nonprofit community service oriented organization and not used for residential purposes
95.31on either a temporary or permanent basis, provided that:
95.32    (i) the property is not used for a revenue-producing activity for more than six days
95.33in the calendar year preceding the year of assessment; or
95.34    (ii) the organization makes annual charitable contributions and donations at least
95.35equal to the property's previous year's property taxes and the property is allowed to be
96.1used for public and community meetings or events for no charge, as appropriate to the
96.2size of the facility.
96.3    For purposes of this clause,
96.4    (A) "charitable contributions and donations" has the same meaning as lawful
96.5gambling purposes under section 349.12, subdivision 25, excluding those purposes
96.6relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;
96.7    (B) "property taxes" excludes the state general tax;
96.8    (C) a "nonprofit community service oriented organization" means any corporation,
96.9society, association, foundation, or institution organized and operated exclusively for
96.10charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
96.11federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
96.12Revenue Code; and
96.13    (D) "revenue-producing activities" shall include but not be limited to property or that
96.14portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
96.15liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
96.16alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
96.17insurance business, or office or other space leased or rented to a lessee who conducts a
96.18for-profit enterprise on the premises.
96.19Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use
96.20of the property for social events open exclusively to members and their guests for periods
96.21of less than 24 hours, when an admission is not charged nor any revenues are received by
96.22the organization shall not be considered a revenue-producing activity.
96.23    The organization shall maintain records of its charitable contributions and donations
96.24and of public meetings and events held on the property and make them available upon
96.25request any time to the assessor to ensure eligibility. An organization meeting the
96.26requirement under item (ii) must file an application by May 1 with the assessor for
96.27eligibility for the current year's assessment. The commissioner shall prescribe a uniform
96.28application form and instructions;
96.29    (4) postsecondary student housing of not more than one acre of land that is owned by
96.30a nonprofit corporation organized under chapter 317A and is used exclusively by a student
96.31cooperative, sorority, or fraternity for on-campus housing or housing located within two
96.32miles of the border of a college campus;
96.33    (5)(i) manufactured home parks as defined in section 327.14, subdivision 3,
96.34excluding manufactured home parks described in section 273.124, subdivision 3a, and (ii)
96.35manufactured home parks as defined in section 327.14, subdivision 3, that are described in
96.36section 273.124, subdivision 3a;
97.1    (6) real property that is actively and exclusively devoted to indoor fitness, health,
97.2social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
97.3and is located within the metropolitan area as defined in section 473.121, subdivision 2;
97.4    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt
97.5under section 272.01, subdivision 2, and the land on which it is located, provided that:
97.6    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
97.7Airports Commission, or group thereof; and
97.8    (ii) the land lease, or any ordinance or signed agreement restricting the use of the
97.9leased premise, prohibits commercial activity performed at the hangar.
97.10    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
97.11be filed by the new owner with the assessor of the county where the property is located
97.12within 60 days of the sale;
97.13    (8) a privately owned noncommercial aircraft storage hangar not exempt under
97.14section 272.01, subdivision 2, and the land on which it is located, provided that:
97.15    (i) the land abuts a public airport; and
97.16    (ii) the owner of the aircraft storage hangar provides the assessor with a signed
97.17agreement restricting the use of the premises, prohibiting commercial use or activity
97.18performed at the hangar; and
97.19    (9) residential real estate, a portion of which is used by the owner for homestead
97.20purposes, and that is also a place of lodging, if all of the following criteria are met:
97.21    (i) rooms are provided for rent to transient guests that generally stay for periods
97.22of 14 or fewer days;
97.23    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated
97.24in the basic room rate;
97.25    (iii) meals are not provided to the general public except for special events on fewer
97.26than seven days in the calendar year preceding the year of the assessment; and
97.27    (iv) the owner is the operator of the property.
97.28The market value subject to the 4c classification under this clause is limited to five rental
97.29units. Any rental units on the property in excess of five, must be valued and assessed as
97.30class 3a. The portion of the property used for purposes of a homestead by the owner must
97.31be classified as class 1a property under subdivision 22;
97.32    (10) real property up to a maximum of three acres and operated as a restaurant
97.33as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake
97.34as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B)
97.35is either devoted to commercial purposes for not more than 250 consecutive days, or
97.36receives at least 60 percent of its annual gross receipts from business conducted during
98.1four consecutive months. Gross receipts from the sale of alcoholic beverages must be
98.2included in determining the property's qualification under subitem (B). The property's
98.3primary business must be as a restaurant and not as a bar. Gross receipts from gift shop
98.4sales located on the premises must be excluded. Owners of real property desiring 4c
98.5classification under this clause must submit an annual declaration to the assessor by
98.6February 1 of the current assessment year, based on the property's relevant information for
98.7the preceding assessment year; and
98.8(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used
98.9as a marina, as defined in section 86A.20, subdivision 5, which is made accessible to
98.10the public and devoted to recreational use for marina services. The marina owner must
98.11annually provide evidence to the assessor that it provides services, including lake or river
98.12access to the public by means of an access ramp or other facility that is either located on
98.13the property of the marina or at a publicly owned site that abuts the property of the marina.
98.14No more than 800 feet of lakeshore may be included in this classification. Buildings used
98.15in conjunction with a marina for marina services, including but not limited to buildings
98.16used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing
98.17tackle, are classified as class 3a property.
98.18    Class 4c property has a class rate of 1.5 percent of market value, except that (i) each
98.19parcel of seasonal residential recreational property not used for commercial purposes
98.20has the same class rates as class 4bb property, (ii) manufactured home parks assessed
98.21under clause (5), item (i), have the same class rate as class 4b property, and the market
98.22value of manufactured home parks assessed under clause (5), item (ii), has the same class
98.23rate as class 4d property if more than 50 percent of the lots in the park are occupied by
98.24shareholders in the cooperative corporation or association and a class rate of one percent if
98.2550 percent or less of the lots are so occupied, (iii) commercial-use seasonal residential
98.26recreational property and marina recreational land as described in clause (11), has a
98.27class rate of one percent for the first $500,000 of market value, and 1.25 percent for the
98.28remaining market value, (iv) the market value of property described in clause (4) has a
98.29class rate of one percent, (v) the market value of property described in clauses (2), (6), and
98.30(10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property
98.31in clause (9) qualifying for class 4c property has a class rate of 1.25 percent.
98.32    (e) Class 4d property is qualifying low-income rental housing certified to the assessor
98.33by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion
98.34of the units in the building qualify as low-income rental housing units as certified under
98.35section 273.128, subdivision 3, only the proportion of qualifying units to the total number
98.36of units in the building qualify for class 4d. The remaining portion of the building shall be
99.1classified by the assessor based upon its use. Class 4d also includes the same proportion of
99.2land as the qualifying low-income rental housing units are to the total units in the building.
99.3For all properties qualifying as class 4d, the market value determined by the assessor must
99.4be based on the normal approach to value using normal unrestricted rents.
99.5    Class 4d property has a class rate of 0.75 percent.
99.6EFFECTIVE DATE.This section is effective for taxes levied in 2010, payable in
99.72011 and thereafter.

99.8    Sec. 24. Minnesota Statutes 2008, section 273.1392, is amended to read:
99.9273.1392 PAYMENT; SCHOOL DISTRICTS.
99.10The amounts of bovine tuberculosis credit reimbursements under section 273.113;
99.11conservation tax credits under section 273.119; disaster or emergency reimbursement
99.12under sections 273.1231 to 273.1235; homestead and agricultural credits under section
99.13273.1384 ; aids and credits under section 273.1398; wetlands reimbursement under
99.14section 275.295; enterprise zone property credit payments under section 469.171; and
99.15metropolitan agricultural preserve reduction under section 473H.10 for school districts,
99.16shall be certified to the Department of Education by the Department of Revenue. The
99.17amounts so certified shall be paid according to section 127A.45, subdivisions 9 and 13.
99.18EFFECTIVE DATE.This section is effective retroactively for taxes payable in
99.192009 and thereafter.

99.20    Sec. 25. Minnesota Statutes 2009 Supplement, section 275.065, subdivision 3, is
99.21amended to read:
99.22    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare
99.23and the county treasurer shall deliver after November 10 and on or before November 24
99.24each year, by first class mail to each taxpayer at the address listed on the county's current
99.25year's assessment roll, a notice of proposed property taxes. Upon written request by
99.26the taxpayer, the treasurer may send the notice in electronic form or by electronic mail
99.27instead of on paper or by ordinary mail.
99.28    (b) The commissioner of revenue shall prescribe the form of the notice.
99.29    (c) The notice must inform taxpayers that it contains the amount of property taxes
99.30each taxing authority proposes to collect for taxes payable the following year. In the
99.31case of a town, or in the case of the state general tax, the final tax amount will be its
99.32proposed tax. The notice must clearly state for each city that has a population over 500,
99.33county, school district, regional library authority established under section 134.201, and
100.1metropolitan taxing districts as defined in paragraph (i), the time and place of the a meeting
100.2for each taxing authorities' regularly scheduled meetings authority in which the budget
100.3and levy will be discussed and public input allowed, prior to the final budget and levy
100.4determined, which must occur after November 24 determination. The taxing authorities
100.5must provide the county auditor with the information to be included in the notice on or
100.6before the time it certifies its proposed levy under subdivision 1. The public must be
100.7allowed to speak at the meetings and the meetings shall that meeting, which must occur
100.8after November 24 and must not be held before 6:00 p.m. It must provide a telephone
100.9number for the taxing authority that taxpayers may call if they have questions related to
100.10the notice and an address where comments will be received by mail.
100.11    (d) The notice must state for each parcel:
100.12    (1) the market value of the property as determined under section 273.11, and used
100.13for computing property taxes payable in the following year and for taxes payable in the
100.14current year as each appears in the records of the county assessor on November 1 of the
100.15current year; and, in the case of residential property, whether the property is classified as
100.16homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
100.17which the market values apply and that the values are final values;
100.18    (2) the items listed below, shown separately by county, city or town, and state general
100.19tax, net of the residential and agricultural homestead credit under section 273.1384, voter
100.20approved school levy, other local school levy, and the sum of the special taxing districts,
100.21and as a total of all taxing authorities:
100.22    (i) the actual tax for taxes payable in the current year; and
100.23    (ii) the proposed tax amount.
100.24    If the county levy under clause (2) includes an amount for a lake improvement
100.25district as defined under sections 103B.501 to 103B.581, the amount attributable for that
100.26purpose must be separately stated from the remaining county levy amount.
100.27    In the case of a town or the state general tax, the final tax shall also be its proposed
100.28tax unless the town changes its levy at a special town meeting under section 365.52. If a
100.29school district has certified under section 126C.17, subdivision 9, that a referendum will
100.30be held in the school district at the November general election, the county auditor must
100.31note next to the school district's proposed amount that a referendum is pending and that, if
100.32approved by the voters, the tax amount may be higher than shown on the notice. In the
100.33case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be
100.34listed separately from the remaining amount of the city's levy. In the case of the city of
100.35St. Paul, the levy for the St. Paul Library Agency must be listed separately from the
100.36remaining amount of the city's levy. In the case of Ramsey County, any amount levied
101.1under section 134.07 may be listed separately from the remaining amount of the county's
101.2levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax
101.3under chapter 276A or 473F applies, the proposed tax levy on the captured value or the
101.4proposed tax levy on the tax capacity subject to the areawide tax must each be stated
101.5separately and not included in the sum of the special taxing districts; and
101.6    (3) the increase or decrease between the total taxes payable in the current year and
101.7the total proposed taxes, expressed as a percentage.
101.8    For purposes of this section, the amount of the tax on homesteads qualifying under
101.9the senior citizens' property tax deferral program under chapter 290B is the total amount
101.10of property tax before subtraction of the deferred property tax amount.
101.11    (e) The notice must clearly state that the proposed or final taxes do not include
101.12the following:
101.13    (1) special assessments;
101.14    (2) levies approved by the voters after the date the proposed taxes are certified,
101.15including bond referenda and school district levy referenda;
101.16    (3) a levy limit increase approved by the voters by the first Tuesday after the first
101.17Monday in November of the levy year as provided under section 275.73;
101.18    (4) amounts necessary to pay cleanup or other costs due to a natural disaster
101.19occurring after the date the proposed taxes are certified;
101.20    (5) amounts necessary to pay tort judgments against the taxing authority that become
101.21final after the date the proposed taxes are certified; and
101.22    (6) the contamination tax imposed on properties which received market value
101.23reductions for contamination.
101.24    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or
101.25the county treasurer to deliver the notice as required in this section does not invalidate the
101.26proposed or final tax levy or the taxes payable pursuant to the tax levy.
101.27    (g) If the notice the taxpayer receives under this section lists the property as
101.28nonhomestead, and satisfactory documentation is provided to the county assessor by the
101.29applicable deadline, and the property qualifies for the homestead classification in that
101.30assessment year, the assessor shall reclassify the property to homestead for taxes payable
101.31in the following year.
101.32    (h) In the case of class 4 residential property used as a residence for lease or rental
101.33periods of 30 days or more, the taxpayer must either:
101.34    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
101.35renter, or lessee; or
101.36    (2) post a copy of the notice in a conspicuous place on the premises of the property.
102.1    The notice must be mailed or posted by the taxpayer by November 27 or within
102.2three days of receipt of the notice, whichever is later. A taxpayer may notify the county
102.3treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
102.4which the notice must be mailed in order to fulfill the requirements of this paragraph.
102.5    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
102.6districts" means the following taxing districts in the seven-county metropolitan area that
102.7levy a property tax for any of the specified purposes listed below:
102.8    (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325,
102.9473.446 , 473.521, 473.547, or 473.834;
102.10    (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672;
102.11and
102.12    (3) Metropolitan Mosquito Control Commission under section 473.711.
102.13    For purposes of this section, any levies made by the regional rail authorities in the
102.14county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
102.15398A shall be included with the appropriate county's levy.
102.16    (j) The governing body of a county, city, or school district may, with the consent
102.17of the county board, include supplemental information with the statement of proposed
102.18property taxes about the impact of state aid increases or decreases on property tax
102.19increases or decreases and on the level of services provided in the affected jurisdiction.
102.20This supplemental information may include information for the following year, the current
102.21year, and for as many consecutive preceding years as deemed appropriate by the governing
102.22body of the county, city, or school district. It may include only information regarding:
102.23    (1) the impact of inflation as measured by the implicit price deflator for state and
102.24local government purchases;
102.25    (2) population growth and decline;
102.26    (3) state or federal government action; and
102.27    (4) other financial factors that affect the level of property taxation and local services
102.28that the governing body of the county, city, or school district may deem appropriate to
102.29include.
102.30    The information may be presented using tables, written narrative, and graphic
102.31representations and may contain instruction toward further sources of information or
102.32opportunity for comment.
102.33EFFECTIVE DATE.This section is effective retroactively for taxes payable in
102.342010 and thereafter.

103.1    Sec. 26. Minnesota Statutes 2009 Supplement, section 275.70, subdivision 5, is
103.2amended to read:
103.3    Subd. 5. Special levies. "Special levies" means those portions of ad valorem taxes
103.4levied by a local governmental unit for the following purposes or in the following manner:
103.5    (1) to pay the costs of the principal and interest on bonded indebtedness or to
103.6reimburse for the amount of liquor store revenues used to pay the principal and interest
103.7due on municipal liquor store bonds in the year preceding the year for which the levy
103.8limit is calculated;
103.9    (2) to pay the costs of principal and interest on certificates of indebtedness issued for
103.10any corporate purpose except for the following:
103.11    (i) tax anticipation or aid anticipation certificates of indebtedness;
103.12    (ii) certificates of indebtedness issued under sections 298.28 and 298.282;
103.13    (iii) certificates of indebtedness used to fund current expenses or to pay the costs of
103.14extraordinary expenditures that result from a public emergency; or
103.15    (iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an
103.16insufficiency in other revenue sources, provided that nothing in this subdivision limits the
103.17special levy authorized under section 475.755;
103.18    (3) to provide for the bonded indebtedness portion of payments made to another
103.19political subdivision of the state of Minnesota;
103.20    (4) to fund payments made to the Minnesota State Armory Building Commission
103.21under section 193.145, subdivision 2, to retire the principal and interest on armory
103.22construction bonds;
103.23    (5) property taxes approved by voters which are levied against the referendum
103.24market value as provided under section 275.61;
103.25    (6) to fund matching requirements needed to qualify for federal or state grants or
103.26programs to the extent that either (i) the matching requirement exceeds the matching
103.27requirement in calendar year 2001, or (ii) it is a new matching requirement that did not
103.28exist prior to 2002;
103.29    (7) to pay the expenses reasonably and necessarily incurred in preparing for or
103.30repairing the effects of natural disaster including the occurrence or threat of widespread
103.31or severe damage, injury, or loss of life or property resulting from natural causes, in
103.32accordance with standards formulated by the Emergency Services Division of the state
103.33Department of Public Safety, as allowed by the commissioner of revenue under section
103.34275.74, subdivision 2 ;
103.35    (8) pay amounts required to correct an error in the levy certified to the county
103.36auditor by a city or county in a levy year, but only to the extent that when added to the
104.1preceding year's levy it is not in excess of an applicable statutory, special law or charter
104.2limitation, or the limitation imposed on the governmental subdivision by sections 275.70
104.3to 275.74 in the preceding levy year;
104.4    (9) to pay an abatement under section 469.1815;
104.5    (10) to pay any costs attributable to increases in the employer contribution rates
104.6under chapter 353, or locally administered pension plans, that are effective after June
104.730, 2001;
104.8    (11) to pay the operating or maintenance costs of a county jail as authorized in
104.9section 641.01 or 641.262, or of a correctional facility as defined in section 241.021,
104.10subdivision 1 , paragraph (f), to the extent that the county can demonstrate to the
104.11commissioner of revenue that the amount has been included in the county budget as
104.12a direct result of a rule, minimum requirement, minimum standard, or directive of the
104.13Department of Corrections, or to pay the operating or maintenance costs of a regional jail
104.14as authorized in section 641.262. For purposes of this clause, a district court order is
104.15not a rule, minimum requirement, minimum standard, or directive of the Department of
104.16Corrections. If the county utilizes this special levy, except to pay operating or maintenance
104.17costs of a new regional jail facility under sections 641.262 to 641.264 which will not
104.18replace an existing jail facility, any amount levied by the county in the previous levy year
104.19for the purposes specified under this clause and included in the county's previous year's
104.20levy limitation computed under section 275.71, shall be deducted from the levy limit
104.21base under section 275.71, subdivision 2, when determining the county's current year
104.22levy limitation. The county shall provide the necessary information to the commissioner
104.23of revenue for making this determination;
104.24    (12) to pay for operation of a lake improvement district, as authorized under section
104.25103B.555 . If the county utilizes this special levy, any amount levied by the county in the
104.26previous levy year for the purposes specified under this clause and included in the county's
104.27previous year's levy limitation computed under section 275.71 shall be deducted from
104.28the levy limit base under section 275.71, subdivision 2, when determining the county's
104.29current year levy limitation. The county shall provide the necessary information to the
104.30commissioner of revenue for making this determination;
104.31    (13) to repay a state or federal loan used to fund the direct or indirect required
104.32spending by the local government due to a state or federal transportation project or other
104.33state or federal capital project. This authority may only be used if the project is not a
104.34local government initiative;
104.35    (14) to pay for court administration costs as required under section 273.1398,
104.36subdivision 4b , less the (i) county's share of transferred fines and fees collected by the
105.1district courts in the county for calendar year 2001 and (ii) the aid amount certified to be
105.2paid to the county in 2004 under section 273.1398, subdivision 4c; however, for taxes
105.3levied to pay for these costs in the year in which the court financing is transferred to the
105.4state, the amount under this clause is limited to the amount of aid the county is certified to
105.5receive under section 273.1398, subdivision 4a;
105.6    (15) to fund a police or firefighters relief association as required under section 69.77
105.7to the extent that the required amount exceeds the amount levied for this purpose in 2001;
105.8    (16) for purposes of a storm sewer improvement district under section 444.20;
105.9    (17) to pay for the maintenance and support of a city or county society for the
105.10prevention of cruelty to animals under section 343.11, but not to exceed in any year
105.11$4,800 or the sum of $1 per capita based on the county's or city's population as of the most
105.12recent federal census, whichever is greater. If the city or county uses this special levy, any
105.13amount levied by the city or county in the previous levy year for the purposes specified
105.14in this clause and included in the city's or county's previous year's levy limit computed
105.15under section 275.71, must be deducted from the levy limit base under section 275.71,
105.16subdivision 2 , in determining the city's or county's current year levy limit;
105.17    (18) for counties, to pay for the increase in their share of health and human service
105.18costs caused by reductions in federal health and human services grants effective after
105.19September 30, 2007;
105.20    (19) for a city, for the costs reasonably and necessarily incurred for securing,
105.21maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by
105.22the commissioner of revenue under section 275.74, subdivision 2. A city must have either
105.23(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in
105.24the city or in a zip code area of the city that is at least 50 percent higher than the average
105.25foreclosure rate in the metropolitan area, as defined in section 473.121, subdivision 2,
105.26to use this special levy. For purposes of this paragraph, "foreclosure rate" means the
105.27number of foreclosures, as indicated by sheriff sales records, divided by the number of
105.28households in the city in 2007;
105.29    (20) for a city, for the unreimbursed costs of redeployed traffic-control agents and
105.30lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified
105.31to the Federal Highway Administration;
105.32    (21) to pay costs attributable to wages and benefits for sheriff, police, and fire
105.33personnel. If a local governmental unit did not use this special levy in the previous year its
105.34levy limit base under section 275.71 shall be reduced by the amount equal to the amount it
105.35levied for the purposes specified in this clause in the previous year;
106.1    (22) an amount equal to any reductions in the certified aids or credits credit
106.2reimbursements payable under sections 477A.011 to 477A.014, and section 273.1384,
106.3due to unallotment under section 16A.152. The amount of the levy allowed under this
106.4clause for each year is equal limited to the amount unallotted in from the aids and credit
106.5reimbursements certified for payment in the year following the calendar year in which the
106.6tax levy is levied certified unless the unallotment amount is not known by September 1 of
106.7the levy certification year, and the local government has not adjusted its levy under section
106.8275.065, subdivision 6 , or 275.07, subdivision 6, in which case the that unallotment
106.9amount may be levied in the following year;
106.10(23) to pay for the difference between one-half of the costs of confining sex offenders
106.11undergoing the civil commitment process and any state payments for this purpose pursuant
106.12to section 253B.185, subdivision 5;
106.13(24) for a county to pay the costs of the first year of maintaining and operating a new
106.14facility or new expansion, either of which contains courts, corrections, dispatch, criminal
106.15investigation labs, or other public safety facilities and for which all or a portion of the
106.16funding for the site acquisition, building design, site preparation, construction, and related
106.17equipment was issued or authorized prior to the imposition of levy limits in 2008. The
106.18levy limit base shall then be increased by an amount equal to the new facility's first full
106.19year's operating costs as described in this clause; and
106.20(25) for the estimated amount of reduction to credits under section 273.1384 for
106.21credits payable in the year in which the levy is payable.
106.22EFFECTIVE DATE.This section is effective retroactively for taxes payable in
106.232010 and thereafter.

106.24    Sec. 27. Minnesota Statutes 2008, section 275.71, subdivision 4, is amended to read:
106.25    Subd. 4. Adjusted levy limit base. For taxes levied in 2008 through 2010, the
106.26adjusted levy limit base is equal to the levy limit base computed under subdivision 2
106.27or section 275.72, multiplied by:
106.28    (1) one plus the lesser of (i) 3.9 percent, or (ii) the greater of 1.17 percent, or the
106.29percentage growth increase in the implicit price deflator;
106.30    (2) one plus a percentage equal to 50 percent of the percentage increase in the number
106.31of households, if any, for the most recent 12-month period for which data is available; and
106.32    (3) one plus a percentage equal to 50 percent of the percentage increase in the
106.33taxable market value of the jurisdiction due to new construction of class 3 property, as
106.34defined in section 273.13, subdivision 4, except for state-assessed utility and railroad
106.35property, for the most recent year for which data is available.
107.1EFFECTIVE DATE.This section is effective for taxes levied in 2010, payable
107.2in 2011 only.

107.3    Sec. 28. Minnesota Statutes 2008, section 275.71, subdivision 5, is amended to read:
107.4    Subd. 5. Property tax levy limit. (a) For taxes levied in 2008 through 2010, the
107.5property tax levy limit for a local governmental unit is equal to its adjusted levy limit
107.6base determined under subdivision 4 plus any additional levy authorized under section
107.7275.73 , which is levied against net tax capacity, reduced by the sum of (i) the total amount
107.8of aids and reimbursements that the local governmental unit is certified to receive under
107.9sections 477A.011 to 477A.014, (ii) taconite aids under sections 298.28 and 298.282
107.10including any aid which was required to be placed in a special fund for expenditure in
107.11the next succeeding year, (iii) estimated payments to the local governmental unit under
107.12section 272.029, adjusted for any error in estimation in the preceding year, and (iv) aids
107.13under section 477A.16.
107.14(b) If an aid, payment, or other amount used in paragraph (a) to reduce a local
107.15government unit's levy limit is reduced by an unallotment under section 16A.152, the
107.16amount of the aid, payment, or other amount prior to the unallotment is used in the
107.17computations in paragraph (a). In order for a local government unit to levy outside of its
107.18limit to offset the reduction in revenues attributable to an unallotment, it must do so under,
107.19and to the extent authorized by, a special levy authorization.
107.20EFFECTIVE DATE.This section is effective retroactively for taxes payable in
107.212010 and thereafter.

107.22    Sec. 29. Minnesota Statutes 2008, section 276.02, is amended to read:
107.23276.02 TREASURER TO BE COLLECTOR.
107.24The county treasurer shall collect all taxes extended on the tax lists of the county
107.25and the fines, forfeitures, or penalties received by any person or officer for the use of
107.26the county. The treasurer shall collect the taxes according to law and credit them to the
107.27proper funds. This section does not apply to fines and penalties accruing to municipal
107.28corporations for the violation of their ordinances that are recoverable before a city justice.
107.29Taxes, fines, interest, and penalties must be paid with United States currency or by check
107.30or, money order, or electronic payments, including, but not limited to, automated clearing
107.31house transactions and federal wires drawn on a bank or other financial institution in the
107.32United States. The county board may by resolution authorize the treasurer to impose a
108.1charge for any dishonored checks or electronic payments. The charges for dishonored
108.2payment of property taxes must be added to the tax and collected as part thereof.
108.3The county board may, by resolution, authorize the treasurer and/or other designees
108.4to accept payments of real property taxes by credit card provided that a fee is charged for
108.5its use. The fee charged must be commensurate with the costs assessed by the card issuer.
108.6If a credit card transaction under this section is subsequently voided or otherwise reversed,
108.7the lien of real property taxes under section 272.31 is revived and attaches in the manner
108.8and time provided in that section as though the credit card transaction had never occurred,
108.9and the voided or reversed credit card transaction shall not impair the right of a lienholder
108.10under section 272.31 to enforce the lien in its favor.
108.11EFFECTIVE DATE.This section is effective for property taxes payable in 2011
108.12and thereafter.

108.13    Sec. 30. Minnesota Statutes 2009 Supplement, section 276.04, subdivision 2, is
108.14amended to read:
108.15    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the
108.16printing of the tax statements. The commissioner of revenue shall prescribe the form of
108.17the property tax statement and its contents. The tax statement must not state or imply
108.18that property tax credits are paid by the state of Minnesota. The statement must contain
108.19a tabulated statement of the dollar amount due to each taxing authority and the amount
108.20of the state tax from the parcel of real property for which a particular tax statement is
108.21prepared. The dollar amounts attributable to the county, the state tax, the voter approved
108.22school tax, the other local school tax, the township or municipality, and the total of
108.23the metropolitan special taxing districts as defined in section 275.065, subdivision 3,
108.24paragraph (i), must be separately stated. The amounts due all other special taxing districts,
108.25if any, may be aggregated except that: (1) any levies made by the regional rail authorities
108.26in the county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under
108.27chapter 398A shall be listed on a separate line directly under the appropriate county's
108.28levy; and (2) any levy by a special taxing district that exceeds 25 percent of the total of all
108.29special taxing district levies on a tax statement must be separately stated. If the county
108.30levy under this paragraph includes an amount for a lake improvement district as defined
108.31under sections 103B.501 to 103B.581, the amount attributable for that purpose must be
108.32separately stated from the remaining county levy amount. In the case of Ramsey County,
108.33if the county levy under this paragraph includes an amount for public library service
108.34under section 134.07, the amount attributable for that purpose may be separated from the
108.35remaining county levy amount. The amount of the tax on homesteads qualifying under the
109.1senior citizens' property tax deferral program under chapter 290B is the total amount of
109.2property tax before subtraction of the deferred property tax amount. The amount of the
109.3tax on contamination value imposed under sections 270.91 to 270.98, if any, must also
109.4be separately stated. The dollar amounts, including the dollar amount of any special
109.5assessments, may be rounded to the nearest even whole dollar. For purposes of this section
109.6whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar.
109.7The amount of market value excluded under section 273.11, subdivision 16, if any, must
109.8also be listed on the tax statement.
109.9    (b) The property tax statements for manufactured homes and sectional structures
109.10taxed as personal property shall contain the same information that is required on the
109.11tax statements for real property.
109.12    (c) Real and personal property tax statements must contain the following information
109.13in the order given in this paragraph. The information must contain the current year tax
109.14information in the right column with the corresponding information for the previous year
109.15in a column on the left:
109.16    (1) the property's estimated market value under section 273.11, subdivision 1;
109.17    (2) the property's taxable market value after reductions under section 273.11,
109.18subdivisions 1a and 16 ;
109.19    (3) the property's gross tax, before credits;
109.20    (4) for homestead residential and agricultural properties, the credits under section
109.21273.1384 ;
109.22    (5) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
109.23273.1391 ; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of
109.24credit received under section 273.135 must be separately stated and identified as "taconite
109.25tax relief"; and
109.26    (6) the net tax payable in the manner required in paragraph (a).
109.27    (d) If the county uses envelopes for mailing property tax statements and if the county
109.28agrees, a taxing district may include a notice with the property tax statement notifying
109.29taxpayers when the taxing district will begin its budget deliberations for the current
109.30year, and encouraging taxpayers to attend the hearings. If the county allows notices to
109.31be included in the envelope containing the property tax statement, and if more than
109.32one taxing district relative to a given property decides to include a notice with the tax
109.33statement, the county treasurer or auditor must coordinate the process and may combine
109.34the information on a single announcement.
109.35EFFECTIVE DATE.This section is effective for tax statements relating to taxes
109.36payable in 2011 and thereafter.

110.1    Sec. 31. Minnesota Statutes 2009 Supplement, section 279.01, subdivision 1, is
110.2amended to read:
110.3    Subdivision 1. Due dates; penalties. Except as provided in subdivision 3 or 4, on
110.4May 16 or 21 days after the postmark date on the envelope containing the property tax
110.5statement, whichever is later, a penalty accrues and thereafter is charged upon all unpaid
110.6taxes on real estate on the current lists in the hands of the county treasurer. The penalty is
110.7at a rate of two percent on homestead property until May 31 and four percent on June 1.
110.8The penalty on nonhomestead property is at a rate of four percent until May 31 and eight
110.9percent on June 1. This penalty does not accrue until June 1 of each year, or 21 days after
110.10the postmark date on the envelope containing the property tax statements, whichever is
110.11later, on commercial use real property used for seasonal residential recreational purposes
110.12and classified as class 1c or 4c, and on other commercial use real property classified as
110.13class 3a, provided that over 60 percent of the gross income earned by the enterprise on the
110.14class 3a property is earned during the months of May, June, July, and August. In order for
110.15the first half of the tax due on class 3a property to be paid after May 15 and before June 1,
110.16or 21 days after the postmark date on the envelope containing the property tax statement,
110.17whichever is later, without penalty, the owner of the property must attach an affidavit to the
110.18payment attesting to compliance with the income provision of this subdivision. Thereafter,
110.19for both homestead and nonhomestead property, on the first day of each month beginning
110.20July 1, up to and including October 1 following, an additional penalty of one percent for
110.21each month accrues and is charged on all such unpaid taxes provided that if the due date
110.22was extended beyond May 15 as the result of any delay in mailing property tax statements
110.23no additional penalty shall accrue if the tax is paid by the extended due date. If the tax is
110.24not paid by the extended due date, then all penalties that would have accrued if the due
110.25date had been May 15 shall be charged. When the taxes against any tract or lot exceed
110.26$250 $50, one-half thereof may be paid prior to May 16 or 21 days after the postmark
110.27date on the envelope containing the property tax statement, whichever is later; and, if so
110.28paid, no penalty attaches; the remaining one-half may be paid at any time prior to October
110.2916 following, without penalty; but, if not so paid, then a penalty of two percent accrues
110.30thereon for homestead property and a penalty of four percent on nonhomestead property.
110.31Thereafter, for homestead property, on the first day of November an additional penalty of
110.32four percent accrues and on the first day of December following, an additional penalty of
110.33two percent accrues and is charged on all such unpaid taxes. Thereafter, for nonhomestead
110.34property, on the first day of November and December following, an additional penalty of
110.35four percent for each month accrues and is charged on all such unpaid taxes. If one-half of
110.36such taxes are not paid prior to May 16 or 21 days after the postmark date on the envelope
111.1containing the property tax statement, whichever is later, the same may be paid at any time
111.2prior to October 16, with accrued penalties to the date of payment added, and thereupon
111.3no penalty attaches to the remaining one-half until October 16 following.
111.4    This section applies to payment of personal property taxes assessed against
111.5improvements to leased property, except as provided by section 277.01, subdivision 3.
111.6    A county may provide by resolution that in the case of a property owner that has
111.7multiple tracts or parcels with aggregate taxes exceeding $250 $50, payments may be
111.8made in installments as provided in this subdivision.
111.9    The county treasurer may accept payments of more or less than the exact amount of
111.10a tax installment due. Payments must be applied first to the oldest installment that is due
111.11but which has not been fully paid. If the accepted payment is less than the amount due,
111.12payments must be applied first to the penalty accrued for the year or the installment being
111.13paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
111.14payment required as a condition for filing an appeal under section 278.03 or any other law,
111.15nor does it affect the order of payment of delinquent taxes under section 280.39.
111.16EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
111.17thereafter.

111.18    Sec. 32. Minnesota Statutes 2008, section 279.01, subdivision 3, is amended to read:
111.19    Subd. 3. Agricultural property. In the case of class 1b agricultural homestead, and
111.20class 2a agricultural homestead and 2b property, and class 2b(3) agricultural nonhomestead
111.21property, no penalties shall attach to the second one-half property tax payment as provided
111.22in this section if paid by November 15. Thereafter for class 1b agricultural homestead and
111.23class 2a and 2b homestead property, on November 16 following, a penalty of six percent
111.24shall accrue and be charged on all such unpaid taxes and on December 1 following, an
111.25additional two percent shall be charged on all such unpaid taxes. Thereafter for class 2b(3)
111.26agricultural 2a and 2b nonhomestead property, on November 16 following, a penalty of
111.27eight percent shall accrue and be charged on all such unpaid taxes and on December 1
111.28following, an additional four percent shall be charged on all such unpaid taxes.
111.29If the owner of class 1b agricultural homestead, or class 2a, or class 2b(3)
111.30agricultural or 2b property receives a consolidated property tax statement that shows
111.31only an aggregate of the taxes and special assessments due on that property and on other
111.32property not classified as class 1b agricultural homestead, or class 2a, or class 2b(3)
111.33agricultural or 2b property, the aggregate tax and special assessments shown due on the
111.34property by the consolidated statement will be due on November 15.
112.1EFFECTIVE DATE.This section is effective the day following final enactment.

112.2    Sec. 33. Minnesota Statutes 2008, section 279.025, is amended to read:
112.3279.025 PAYMENT OF DELINQUENT PROPERTY TAXES, SPECIAL
112.4ASSESSMENTS.
112.5Payment of delinquent property tax and related interest and penalties and special
112.6assessments shall be paid with United States currency or by check or, money order, or
112.7electronic means, including, but not limited to, automated clearing house transactions and
112.8federal wires drawn on a bank or other financial institution in the United States.
112.9EFFECTIVE DATE.This section is effective for property taxes payable in 2011
112.10and thereafter.

112.11    Sec. 34. Minnesota Statutes 2008, section 279.37, subdivision 1, is amended to read:
112.12    Subdivision 1. Composition into one item. Delinquent taxes upon any parcel of real
112.13estate may be composed into one item or amount by confession of judgment at any time
112.14prior to the forfeiture of the parcel of land to the state for taxes, for the aggregate amount
112.15of all the taxes, costs, penalties, and interest accrued against the parcel, as provided in this
112.16section. Taxes upon property which, for the previous year's assessment, was classified
112.17as mineral property, employment property, or commercial or industrial property are only
112.18eligible to be composed into any confession of judgment under this section as provided in
112.19subdivision 1a. Delinquent taxes for property that has been reclassified from 4bb to 4b
112.20under section 273.1319 may not be composed into a confession of judgment under this
112.21subdivision. Delinquent taxes on unimproved land are eligible to be composed into a
112.22confession of judgment only if the land is classified under section 273.13 as homestead,
112.23agricultural, or timberland rural vacant land, or managed forest land, in the previous year
112.24or is eligible for installment payment under subdivision 1a. The entire parcel is eligible
112.25for the ten-year installment plan as provided in subdivision 2 if 25 percent or more of the
112.26market value of the parcel is eligible for confession of judgment under this subdivision.
112.27EFFECTIVE DATE.This section is effective the day following final enactment.

112.28    Sec. 35. Minnesota Statutes 2009 Supplement, section 475.755, is amended to read:
112.29475.755 EMERGENCY DEBT CERTIFICATES.
112.30(a) If at any time during a fiscal year the receipts of a local government are
112.31reasonably expected to be reduced below the amount provided in the local government's
112.32budget when the final property tax levy to be collected during the fiscal year was certified
113.1and the receipts are insufficient to meet the expenses incurred or to be incurred during the
113.2fiscal year, the governing body of the local government may authorize and sell certificates
113.3of indebtedness to mature within two years or less from the end of the fiscal year in which
113.4the certificates are issued. The maximum principal amount of the certificates that it may
113.5issue in a fiscal year is limited to the expected reduction in receipts plus the cost of
113.6issuance. The certificates may be issued in the manner and on the terms the governing
113.7body determines by resolution.
113.8(b) The governing body of the local government shall levy taxes for the payment of
113.9principal and interest on the certificates in accordance with section 475.61.
113.10(c) The certificates are not to be included in the net debt of the issuing local
113.11government.
113.12    (d) To the extent that a local government issues certificates under this section to fund
113.13an unallotment or other reduction in its state aid, the local government may must not use a
113.14the special levy authority for the aid reduction reductions under section 275.70, subdivision
113.155 , clause (22), or a similar or successor provision. This provision does not affect the status
113.16of the, but must instead use the special levy authority for the repayment of indebtedness
113.17under section 275.70, subdivision 5, clause (2), in order to levy under section 475.61 to
113.18pay fund repayment of the certificates as with a levy that is not subject to levy limits.
113.19(e) For purposes of this section, the following terms have the meanings given:
113.20(1) "Local government" means a statutory or home rule charter city, a town, or
113.21a county.
113.22(2) "Receipts" includes the following amounts scheduled to be received by the
113.23local government for the fiscal year from:
113.24(i) taxes;
113.25(ii) aid payments previously certified by the state to be paid to the local government;
113.26(iii) state reimbursement payments for property tax credits; and
113.27(iv) any other source.
113.28EFFECTIVE DATE.This section is effective retroactively for taxes payable in
113.292010 and thereafter.

113.30    Sec. 36. Minnesota Statutes 2009 Supplement, section 477A.013, subdivision 8,
113.31is amended to read:
113.32    Subd. 8. City formula aid. (a) In calendar year 2009, the formula aid for a city
113.33is equal to the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need
113.34increase percentage multiplied by its unmet need.
114.1    (b) In calendar year 2010 and subsequent years, The formula aid for a city is equal
114.2to the sum of (1) its city jobs base, (2) its small city aid base, and (3) the need increase
114.3percentage multiplied by the average of its unmet need for the most recently available
114.4two years.
114.5No city may have a formula aid amount less than zero. The need increase percentage
114.6must be the same for all cities.
114.7    The applicable need increase percentage must be calculated by the Department of
114.8Revenue so that the total of the aid under subdivision 9 equals the total amount available
114.9for aid under section 477A.03. For aids payable in 2009 only, all data used in calculating
114.10aid to cities under sections 477A.011 to 477A.013 will be based on the data available for
114.11calculating aid to cities for aids payable in 2008. For aids payable in 2010 and thereafter,
114.12Data used in calculating aids to cities under sections 477A.011 to 477A.013 shall be the
114.13most recently available data as of January 1 in the year in which the aid is calculated except
114.14as provided in section 477A.011, subdivisions 3 and 35 that the data used to compute "net
114.15levy" in subdivision 9 is the data most recently available at the time of the aid computation.
114.16EFFECTIVE DATE.This section is effective for aid payable in 2010 and thereafter.

114.17    Sec. 37. Minnesota Statutes 2008, section 477A.17, is amended to read:
114.18477A.17 LAKE VERMILION STATE PARK AND SOUDAN
114.19UNDERGROUND MINE STATE PARK; ANNUAL PAYMENTS.
114.20    (a) Beginning in fiscal year 2010 2012, in lieu of the payment amount provided under
114.21section 477A.12, subdivision 1, clause (1), the county shall receive an annual payment for
114.22land acquired for Lake Vermilion State Park, established in section 85.012, subdivision
114.2338a, and land within the boundary of Soudan Underground Mine State Park, established in
114.24section 85.012, subdivision 53a, equal to 1.5 percent of the appraised value of the land.
114.25    (b) For the purposes of this section, the appraised value of the land acquired for
114.26Lake Vermilion State Park for the first five years after acquisition shall be the purchase
114.27price of the land, plus the value of any portion of the land that is acquired by donation.
114.28The appraised value must be redetermined by the county assessor every five years after
114.29the land is acquired.
114.30    (c) The annual payments under this section shall be distributed to the taxing
114.31jurisdictions containing the property as follows: one-third to the school districts; one-third
114.32to the town; and one-third to the county. The payment to school districts is not a county
114.33apportionment under section 127A.34 and is not subject to aid recapture. Each of those
114.34taxing jurisdictions may use the payments for their general purposes.
115.1    (d) Except as provided in this section, the payments shall be made as provided
115.2in sections 477A.11 to 477A.13.

115.3    Sec. 38. Laws 2001, First Special Session chapter 5, article 3, section 50, the effective
115.4date, as amended by Laws 2009, chapter 86, article 1, section 87, is amended to read:
115.5EFFECTIVE DATE.Clause (22) of this section is effective for taxes levied in 2002,
115.6payable in 2003, through taxes levied in 2011, payable in 2012 and thereafter. Clause (23)
115.7of this section is effective for taxes levied in 2001, payable in 2002, and thereafter.
115.8EFFECTIVE DATE.This section is effective the day following final enactment.

115.9    Sec. 39. FISCAL DISPARITIES STUDY.
115.10The commissioner of revenue must conduct a study of the metropolitan revenue
115.11distribution program contained in Minnesota Statutes, chapter 473F, commonly known
115.12as the fiscal disparities program. By February 1, 2012, the commissioner shall submit a
115.13report to the chairs and ranking minority members of the house of representatives and
115.14senate tax committees consisting of the findings of the study and identification of issues
115.15for policy makers to consider. The study must analyze:
115.16(1) the extent to which the benefits of economic growth of the region are shared
115.17throughout the region, especially for growth that results from state or regional decisions;
115.18(2) the program's impact on the variability of tax rates across jurisdictions of the
115.19region;
115.20(3) the program's impact on the distribution of homestead property tax burdens
115.21across jurisdictions of the region; and
115.22(4) the relationship between the impacts of the program and overburden on
115.23jurisdictions containing properties that provide regional benefits, specifically the costs
115.24those properties impose on their host jurisdictions in excess of their tax payments.
115.25The report must include a description of other property tax, aid, and local
115.26development programs that interact with the fiscal disparities program.
115.27EFFECTIVE DATE.This section is effective January 1, 2011.

115.28    Sec. 40. FUND TRANSFER FROM FISCAL DISPARITIES LEVY.
115.29For taxes payable in 2011 only, the Metropolitan Council must certify to the Ramsey
115.30County auditor the amount of $100,000, to be certified by the Ramsey County auditor to
115.31the administrative auditor as an addition to the Metropolitan Council's areawide levy
115.32under Minnesota Statutes, section 473F.08, subdivision 5. Upon receipt of the proceeds
116.1of this levy, the Metropolitan Council must transfer this money to the commissioner of
116.2revenue to be used to pay for the study required under section 39.


116.5    Section 1. Minnesota Statutes 2008, section 103D.335, subdivision 17, is amended to
116.6read:
116.7    Subd. 17. Borrowing funds. The managers may borrow funds from an agency of
116.8the federal government, a state agency, a county where the watershed district is located
116.9in whole or in part, or a financial institution authorized under chapter 47 to do business
116.10in this state. A county board may lend the amount requested by a watershed district. A
116.11watershed district may not have more than a total of $600,000 $2,000,000 in loans from
116.12counties and financial institutions under this subdivision outstanding at any time.

116.13    Sec. 2. Minnesota Statutes 2008, section 469.101, subdivision 1, is amended to read:
116.14    Subdivision 1. Establishment. An economic development authority may create and
116.15define the boundaries of economic development districts at any place or places within the
116.16city if the district satisfies the requirements of section 469.174, subdivision 10, except that
116.17the district boundaries must be contiguous, and may use the powers granted in sections
116.18469.090 to 469.108 to carry out its purposes. First the authority must hold a public hearing
116.19on the matter. At least ten days before the hearing, the authority shall publish notice of
116.20the hearing in a daily newspaper of general circulation in the city. Also, the authority
116.21shall find that an economic development district is proper and desirable to establish and
116.22develop within the city.
116.23EFFECTIVE DATE.This section is effective for economic development districts
116.24created after the day following final enactment.

116.25    Sec. 3. Minnesota Statutes 2008, section 469.1763, subdivision 2, is amended to read:
116.26    Subd. 2. Expenditures outside district. (a) For each tax increment financing
116.27district, an amount equal to at least 75 percent of the total revenue derived from tax
116.28increments paid by properties in the district must be expended on activities in the district
116.29or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities
116.30in the district or to pay, or secure payment of, debt service on credit enhanced bonds.
116.31For districts, other than redevelopment districts for which the request for certification
116.32was made after June 30, 1995, the in-district percentage for purposes of the preceding
116.33sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax
117.1increments paid by properties in the district may be expended, through a development fund
117.2or otherwise, on activities outside of the district but within the defined geographic area of
117.3the project except to pay, or secure payment of, debt service on credit enhanced bonds.
117.4For districts, other than redevelopment districts for which the request for certification was
117.5made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is
117.620 percent. The revenue derived from tax increments for the district that are expended on
117.7costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before
117.8calculating the percentages that must be expended within and without the district.
117.9    (b) In the case of a housing district, a housing project, as defined in section 469.174,
117.10subdivision 11 , is an activity in the district.
117.11    (c) All administrative expenses are for activities outside of the district, except that
117.12if the only expenses for activities outside of the district under this subdivision are for
117.13the purposes described in paragraph (d), administrative expenses will be considered as
117.14expenditures for activities in the district.
117.15    (d) The authority may elect, in the tax increment financing plan for the district,
117.16to increase by up to ten percentage points the permitted amount of expenditures for
117.17activities located outside the geographic area of the district under paragraph (a). As
117.18permitted by section 469.176, subdivision 4k, the expenditures, including the permitted
117.19expenditures under paragraph (a), need not be made within the geographic area of the
117.20project. Expenditures that meet the requirements of this paragraph are legally permitted
117.21expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j.
117.22To qualify for the increase under this paragraph, the expenditures must:
117.23    (1) be used exclusively to assist housing that meets the requirement for a qualified
117.24low-income building, as that term is used in section 42 of the Internal Revenue Code; and
117.25    (2) not exceed the qualified basis of the housing, as defined under section 42(c) of
117.26the Internal Revenue Code, less the amount of any credit allowed under section 42 of
117.27the Internal Revenue Code; and
117.28    (3) be used to:
117.29    (i) acquire and prepare the site of the housing;
117.30    (ii) acquire, construct, or rehabilitate the housing; or
117.31    (iii) make public improvements directly related to the housing; or
117.32(4) be used to develop housing that does not exceed 150 percent of the average
117.33market value of single-family homes in that municipality and to pay the cost of site
117.34acquisition, relocation, demolition of existing structures, site preparation, and pollution
117.35abatement on one or more parcels, if the parcel:
118.1(i) contains a residence containing one to four family dwelling units that has been
118.2vacant for three or more months;
118.3(ii) contains a residence containing one to four family dwelling units that is
118.4structurally substandard, as defined in section 469.174, subdivision 10;
118.5(iii) is in foreclosure as defined in section 325N.10, subdivision 7, but without regard
118.6to whether the residence is the owner's principal residence; or
118.7(iv) is a vacant site, if the authority uses the parcel in connection with the
118.8development or redevelopment of a parcel qualifying under items (i) to (iii).
118.9    (e) For a district created within a biotechnology and health sciences industry zone
118.10as defined in section 469.330, subdivision 6, or for an existing district located within
118.11such a zone, tax increment derived from such a district may be expended outside of the
118.12district but within the zone only for expenditures required for the construction of public
118.13infrastructure necessary to support the activities of the zone, land acquisition, and other
118.14redevelopment costs as defined in section 469.176, subdivision 4j. These expenditures are
118.15considered as expenditures for activities within the district.
118.16(f) The authority under paragraph (d), clause (4), expires on December 31, 2015.
118.17Increments may continue to be expended under this authority after that date, if they are
118.18used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph
118.19(a), if December 31, 2015, is considered to be the last date of the five-year period after
118.20certification under that provision.
118.21EFFECTIVE DATE.This section is effective for any district that is subject to
118.22the provisions of Minnesota Statutes, section 469.1763, regardless of when the request
118.23for certification of the district was made.

118.24    Sec. 4. Minnesota Statutes 2008, section 469.319, subdivision 5, is amended to read:
118.25    Subd. 5. Waiver authority. (a) The commissioner may waive all or part of a
118.26repayment required under subdivision 1, if the commissioner, in consultation with
118.27the commissioner of employment and economic development and appropriate officials
118.28from the local government units in which the qualified business is located, determines
118.29that requiring repayment of the tax is not in the best interest of the state or the local
118.30government units and the business ceased operating as a result of circumstances beyond
118.31its control including, but not limited to:
118.32    (1) a natural disaster;
118.33    (2) unforeseen industry trends; or
118.34    (3) loss of a major supplier or customer.
119.1    (b)(1) The commissioner shall waive repayment required under subdivision 1a if
119.2the commissioner has waived repayment by the operating business under subdivision 1,
119.3unless the person that received benefits without having to operate a business in the zone
119.4was a contributing factor in the qualified business becoming subject to repayment under
119.5subdivision 1;
119.6    (2) the commissioner shall waive the repayment required under subdivision 1a, even
119.7if the repayment has not been waived for the operating business if:
119.8    (i) the person that received benefits without having to operate a business in the zone
119.9and the business that operated in the zone are not related parties as defined in section
119.10267(b) of the Internal Revenue Code of 1986, as amended through December 31, 2007; and
119.11    (ii) actions of the person were not a contributing factor in the qualified business
119.12becoming subject to repayment under subdivision 1.
119.13(c) Requests for waiver must be made no later than 60 days after the notice date of
119.14an order issued under subdivision 4, paragraph (d), or, in the case of property taxes, within
119.1560 days of the date of a tax statement issued under subdivision 4, paragraph (c).
119.16EFFECTIVE DATE.This section is effective for waivers requested in response
119.17to notices issued after the day following final enactment.

119.18    Sec. 5. Minnesota Statutes 2008, section 469.3192, is amended to read:
119.19469.3192 PROHIBITION AGAINST AMENDMENTS TO BUSINESS
119.20SUBSIDY AGREEMENT.
119.21    (a) Except as authorized under paragraph (b) or section 469.3191, under no
119.22circumstance shall terms of any agreement required as a condition for eligibility for
119.23benefits listed under section 469.315 be amended to change job creation, job retention,
119.24or wage goals included in the agreement.
119.25(b) The commissioner may authorize the local unit of government and qualified
119.26business that are parties to a business subsidy agreement to amend the agreement
119.27extending the period by one year for the business to meet business subsidy goals if the
119.28business met the goals in 2008 but failed to meet the goals in 2009 due to economic or
119.29business conditions.
119.30EFFECTIVE DATE.This section is effective the day following final enactment.

119.31    Sec. 6. Minnesota Statutes 2008, section 469.3193, is amended to read:
119.32469.3193 CERTIFICATION OF CONTINUING ELIGIBILITY FOR JOBZ
119.33BENEFITS.
120.1    (a) By December 1 October 15 of each year, every qualified business must certify
120.2to the commissioner of revenue, on a form prescribed by the commissioner of revenue,
120.3whether it is in compliance with any agreement required as a condition for eligibility for
120.4benefits listed under section 469.315. A business that fails to submit the certification, or
120.5any business, including those still operating in the zone, that submits a certification that
120.6the commissioner of revenue later determines materially misrepresents the business's
120.7compliance with the agreement, is subject to the repayment provisions under section
120.8469.319 from January 1 of the year in which the report is due or the date that the business
120.9became subject to section 469.319, whichever is earlier. Any such business is permanently
120.10barred from obtaining benefits under section 469.315. For purposes of this section, the bar
120.11applies to an entity and also applies to any individuals or entities that have an ownership
120.12interest of at least 20 percent of the entity.
120.13    (b) Before the sanctions under paragraph (a) apply to a business that fails to
120.14submit the certification, the commissioner of revenue shall send notice to the business,
120.15demanding that the certification be submitted within 30 days and advising the business
120.16of the consequences for failing to do so. The commissioner of revenue shall notify
120.17the commissioner of employment and economic development and the appropriate job
120.18opportunity subzone administrator whenever notice is sent to a business under this
120.19paragraph.
120.20    (c) The certification required under this section is public.
120.21    (d) The commissioner of revenue shall promptly notify the commissioner of
120.22employment and economic development of all businesses that certify that they are not
120.23in compliance with the terms of their business subsidy agreement and all businesses
120.24that fail to file the certification.
120.25EFFECTIVE DATE.This section is effective for certifications required to be
120.26made in 2010 and thereafter.

120.27    Sec. 7. Minnesota Statutes 2008, section 473.39, is amended by adding a subdivision
120.28to read:
120.29    Subd. 1p. Obligations. After July 1, 2010, in addition to other authority in this
120.30section, the council may issue certificates of indebtedness, bonds, or other obligations
120.31under this section in an amount not exceeding $34,600,000 for capital expenditures as
120.32prescribed in the council's transit capital improvement program and for related costs,
120.33including the costs of issuance and sale of the obligations.
120.34EFFECTIVE DATE.This section is effective the date following final enactment.

121.1    Sec. 8. Minnesota Statutes 2008, section 474A.04, subdivision 6, is amended to read:
121.2    Subd. 6. Entitlement transfers. An entitlement issuer may enter into an agreement
121.3with another entitlement issuer whereby the recipient entitlement issuer issues obligations
121.4pursuant to bonding authority allocated to the original entitlement issuer under this
121.5section. An entitlement issuer may enter into an agreement with an issuer which is not
121.6an entitlement issuer whereby the recipient issuer issues qualified mortgage bonds, up to
121.7$100,000 of which are issued pursuant to bonding authority allocated to the original
121.8entitlement issuer under this section. The agreement may be approved and executed by the
121.9mayor of the entitlement issuer with or without approval or review by the city council.
121.10Notwithstanding section 474A.091, subdivision 4, prior to December 1, the Minnesota
121.11Housing Finance Agency, Minnesota Office of Higher Education, and Minnesota Rural
121.12Finance Authority may transfer allocated bonding authority made available under this
121.13chapter to one another under an agreement by each agency and the commissioner.

121.14    Sec. 9. Minnesota Statutes 2008, section 474A.091, subdivision 3, is amended to read:
121.15    Subd. 3. Allocation procedure. (a) The commissioner shall allocate available
121.16bonding authority under this section on the Monday of every other week beginning with
121.17the first Monday in August through and on the last Monday in November. Applications
121.18for allocations must be received by the department by 4:30 p.m. on the Monday preceding
121.19the Monday on which allocations are to be made. If a Monday falls on a holiday, the
121.20allocation will be made or the applications must be received by the next business day
121.21after the holiday.
121.22(b) Prior to October 1, only the following applications shall be awarded allocations
121.23from the unified pool. Allocations shall be awarded in the following order of priority:
121.24(1) applications for residential rental project bonds;
121.25(2) applications for small issue bonds for manufacturing projects; and
121.26(3) applications for small issue bonds for agricultural development bond loan
121.27projects.
121.28(c) On the first Monday in October through the last Monday in November,
121.29allocations shall be awarded from the unified pool in the following order of priority:
121.30(1) applications for student loan bonds issued by or on behalf of the Minnesota
121.31Office of Higher Education;
121.32(2) applications for mortgage bonds;
121.33(3) applications for public facility projects funded by public facility bonds;
121.34(4) applications for small issue bonds for manufacturing projects;
122.1(5) applications for small issue bonds for agricultural development bond loan
122.2projects;
122.3(6) applications for residential rental project bonds;
122.4(7) applications for enterprise zone facility bonds;
122.5(8) applications for governmental bonds; and
122.6(9) applications for redevelopment bonds.
122.7(d) If there are two or more applications for manufacturing projects from the
122.8unified pool and there is insufficient bonding authority to provide allocations for all
122.9manufacturing projects in any one allocation period, the available bonding authority shall
122.10be awarded based on the number of points awarded a project under section 474A.045
122.11with those projects receiving the greatest number of points receiving allocation first. If
122.12two or more applications for manufacturing projects receive an equal amount of points,
122.13available bonding authority shall be awarded by lot unless otherwise agreed to by the
122.14respective issuers.
122.15(e) If there are two or more applications for enterprise zone facility projects from
122.16the unified pool and there is insufficient bonding authority to provide allocations for
122.17all enterprise zone facility projects in any one allocation period, the available bonding
122.18authority shall be awarded based on the number of points awarded a project under section
122.19474A.045 with those projects receiving the greatest number of points receiving allocation
122.20first. If two or more applications for enterprise zone facility projects receive an equal
122.21amount of points, available bonding authority shall be awarded by lot unless otherwise
122.22agreed to by the respective issuers.
122.23(f) If there are two or more applications for residential rental projects from the
122.24unified pool and there is insufficient bonding authority to provide allocations for all
122.25residential rental projects in any one allocation period, the available bonding authority
122.26shall be awarded in the following order of priority: (1) projects that preserve existing
122.27federally subsidized housing; (2) projects that are not restricted to persons who are 55
122.28years of age or older; and (3) other residential rental projects.
122.29(g) From the first Monday in August through the last Monday in November,
122.30$20,000,000 of bonding authority or an amount equal to the total annual amount of
122.31bonding authority allocated to the small issue pool under section 474A.03, subdivision 1,
122.32less the amount allocated to issuers from the small issue pool for that year, whichever is
122.33less, is reserved within the unified pool for small issue bonds to the extent such amounts
122.34are available within the unified pool.
122.35(h) The total amount of allocations for mortgage bonds from the housing pool and
122.36the unified pool may not exceed:
123.1(1) $10,000,000 for any one city; or
123.2(2) $20,000,000 for any number of cities in any one county.
123.3(i) The total amount of allocations for student loan bonds from the unified pool may
123.4not exceed $10,000,000 $25,000,000 per year.
123.5(j) If there is insufficient bonding authority to fund all projects within any qualified
123.6bond category other than enterprise zone facility projects, manufacturing projects, and
123.7residential rental projects, allocations shall be awarded by lot unless otherwise agreed to
123.8by the respective issuers.
123.9(k) If an application is rejected, the commissioner must notify the applicant and
123.10return the application deposit to the applicant within 30 days unless the applicant requests
123.11in writing that the application be resubmitted.
123.12(l) The granting of an allocation of bonding authority under this section must be
123.13evidenced by issuance of a certificate of allocation.

123.14    Sec. 10. Laws 2010, chapter 216, section 3, is amended by adding a subdivision to read:
123.15    Subd. 3a. Authority. "Authority" means a housing and redevelopment authority or
123.16economic development authority created pursuant to Minnesota Statutes, section 469.003,
123.17469.004, or 469.091, or another entity authorized by law to exercise the powers of an
123.18authority created pursuant to one of those sections.
123.19EFFECTIVE DATE.This section is effective the day following final enactment.

123.20    Sec. 11. Laws 2010, chapter 216, section 3, is amended by adding a subdivision to read:
123.21    Subd. 3b. Implementing entity. "Implementing entity" means the local government
123.22or an authority designated by the local government by resolution to implement and
123.23administer programs described in Minnesota Statutes, section 216C.436.
123.24EFFECTIVE DATE.This section is effective the day following final enactment.

123.25    Sec. 12. Laws 2010, chapter 216, section 3, subdivision 6, is amended to read:
123.26    Subd. 6. Qualifying real property. "Qualifying real property" means a
123.27single-family or multifamily residential dwelling, or a commercial or industrial building,
123.28that the city implementing entity has determined, after review of an energy audit or
123.29renewable energy system feasibility study, can be benefited by installation of energy
123.30improvements.
123.31EFFECTIVE DATE.This section is effective the day following final enactment.

124.1    Sec. 13. Laws 2010, chapter 216, section 4, subdivision 1, is amended to read:
124.2    Subdivision 1. Program authority. A local government An implementing entity
124.3may establish a program to finance energy improvements to enable owners of qualifying
124.4real property to pay for cost-effective energy improvements to the qualifying real property
124.5with the net proceeds and interest earnings of revenue bonds authorized in this section.
124.6A local government An implementing entity may limit the number of qualifying real
124.7properties for which a property owner may receive program financing.
124.8EFFECTIVE DATE.This section is effective the day following final enactment.

124.9    Sec. 14. Laws 2010, chapter 216, section 4, subdivision 2, is amended to read:
124.10    Subd. 2. Program requirements. A financing program must:
124.11(1) impose requirements and conditions on financing arrangements to ensure timely
124.12repayment;
124.13(2) require an energy audit or renewable energy system feasibility study to be
124.14conducted on the qualifying real property and reviewed by the local government
124.15implementing entity prior to approval of the financing;
124.16(3) require the inspection of all installations and a performance verification of at
124.17least ten percent of the energy improvements financed by the program;
124.18(4) require that all cost-effective energy improvements be made to a qualifying
124.19real property prior to, or in conjunction with, an applicant's repayment of financing for
124.20energy improvements for that property;
124.21(5) have energy improvements financed by the program performed by licensed
124.22contractors as required by chapter 326B or other law or ordinance;
124.23(6) require disclosures to borrowers by the local government implementing entity
124.24of the risks involved in borrowing, including the risk of foreclosure if a tax delinquency
124.25results from a default;
124.26(7) provide financing only to those who demonstrate an ability to repay;
124.27(8) not provide financing for a qualifying real property in which the owner is not
124.28current on mortgage or real property tax payments;
124.29(9) require a petition to the implementing entity by all owners of the qualifying
124.30real property requesting collections of repayments as a special assessment under section
124.31429.101 ;
124.32(10) provide that payments and assessments are not accelerated due to a default and
124.33that a tax delinquency exists only for assessments not paid when due; and
124.34(11) require that liability for special assessments related to the financing runs with
124.35the qualifying real property.
125.1EFFECTIVE DATE.This section is effective the day following final enactment.

125.2    Sec. 15. Laws 2010, chapter 216, section 4, subdivision 4, is amended to read:
125.3    Subd. 4. Financing terms. Financing provided under this section must have:
125.4(1) a term not to exceed the weighted average of the useful life of the energy
125.5improvements installed, as determined by the local government implementing entity, but
125.6in no event may a term exceed 20 years;
125.7(2) a principal amount not to exceed the lesser of ten percent of the assessed value
125.8of the real property on which the improvements are to be installed or the actual cost of
125.9installing the energy improvements, including the costs of necessary equipment, materials,
125.10and labor, the costs of each related energy audit or renewable energy system feasibility
125.11study, and the cost of verification of installation; and
125.12(3) an interest rate sufficient to pay the financing costs of the program, including the
125.13issuance of bonds and any financing delinquencies.
125.14EFFECTIVE DATE.This section is effective the day following final enactment.

125.15    Sec. 16. Laws 2010, chapter 216, section 4, subdivision 6, is amended to read:
125.16    Subd. 6. Certificate of participation. Upon completion of a project, a local
125.17government an implementing entity shall provide a borrower with a certificate stating
125.18participation in the program and what energy improvements have been made with
125.19financing program proceeds.
125.20EFFECTIVE DATE.This section is effective the day following final enactment.

125.21    Sec. 17. Laws 2010, chapter 216, section 4, subdivision 7, is amended to read:
125.22    Subd. 7. Repayment. A local government financing An implementing entity that
125.23finances an energy improvement under this section must:
125.24(1) secure payment with a lien against the benefited qualifying real property; and
125.25(2) collect repayments as a special assessment as provided for in section 429.101
125.26or by charter.
125.27If the implementing entity is an authority, the local government that authorized
125.28the authority to act as implementing entity shall impose and collect special assessments
125.29necessary to pay debt service on bonds issued by the implementing entity under
125.30subdivision 8, and shall transfer all collections of the assessments upon receipt to the
125.31authority.
125.32EFFECTIVE DATE.This section is effective the day following final enactment.

126.1    Sec. 18. Laws 2010, chapter 216, section 4, subdivision 8, is amended to read:
126.2    Subd. 8. Bond issuance; repayment. (a) A local government An implementing
126.3entity may issue revenue bonds as provided in chapter 475 for the purposes of this section.
126.4(b) The bonds must be payable as to both principal and interest solely from the
126.5revenues from the assessments established in subdivision 7.
126.6(c) No holder of bonds issued under this subdivision may compel any exercise of the
126.7taxing power of the implementing entity that issued the bonds to pay principal or interest
126.8on the bonds, and if the implementing entity is an authority, no holder of the bonds may
126.9compel any exercise of the taxing power of the local government that issued the bonds
126.10to pay principal or interest on the bonds. Bonds issued under this subdivision are not
126.11a debt or obligation of the issuer or any local government that issued them, nor is the
126.12payment of the bonds enforceable out of any money other than the revenue pledged to
126.13the payment of the bonds.
126.14EFFECTIVE DATE.This section is effective the day following final enactment.

126.15    Sec. 19. Laws 2010, chapter 216, section 58, is amended to read:
126.16    Sec. 58. 2010 DISTRIBUTIONS ONLY.
126.17    For distributions in 2010 only, a special fund is established to receive 28.757 cents
126.18per ton that otherwise would be allocated under Minnesota Statutes, section 298.28,
126.19subdivision 6 . The following amounts are allocated to St. Louis County acting as the fiscal
126.20agent for the recipients for the specific purposes:
126.21    (1) 0.764 cent per ton must be paid to Northern Minnesota Dental to provide
126.22incentives for at least two dentists to establish dental practices in high-need areas of the
126.23taconite tax relief area;
126.24(2) 0.955 cent per ton must be paid to the city of Virginia for repairs and geothermal
126.25heat at the Olcott Park Greenhouse/Virginia Commons project;
126.26(3) 0.796 cent per ton must be paid to the city of Virginia for health and safety
126.27repairs at the Miners Memorial;
126.28(4) 1.114 cents per ton must be paid to the city of Eveleth for the reconstruction
126.29of Highway 142/Grant and Park Avenues;
126.30(5) 0.478 cent per ton must be paid to the Greenway Joint Recreation Board for
126.31upgrades and capital improvements to the public arena in Coleraine;
126.32(6) 0.796 cent per ton must be paid to the city of Calumet for water treatment and
126.33pumphouse modifications;
127.1(7) 0.159 cent per ton must be paid to the city of Bovey for residential and
127.2commercial claims for water damage due to water and flood-related damage caused by
127.3the Canisteo Pit;
127.4(8) 0.637 cent per ton must be paid to the city of Nashwauk for a community and
127.5child care center;
127.6(9) 0.637 cent per ton must be paid to the city of Keewatin for water and sewer
127.7upgrades;
127.8(10) 0.637 cent per ton must be paid to the city of Marble for the city hall and
127.9library project;
127.10(11) 0.955 cent per ton must be paid to the city of Grand Rapids for extension of
127.11water and sewer services for Lakewood Housing;
127.12(12) 0.159 cent per ton must be paid to the city of Grand Rapids for exhibits at
127.13the Children's Museum;
127.14(13) 0.637 cent per ton must be paid to the city of Grand Rapids for Block 20/21 soil
127.15corrections. This amount must be matched by local sources;
127.16(14) 0.605 cent per ton must be paid to the city of Aitkin for three water loops;
127.17(15) 0.048 cent per ton must be paid to the city of Aitkin for signage;
127.18(16) 0.159 cent per ton must be paid to Aitkin County for a trail;
127.19(17) 0.637 cent per ton must be paid to the city of Cohasset for the Beiers Road
127.20railroad crossing;
127.21(18) 0.088 cent per ton must be paid to the town of Clinton for expansion and
127.22striping of the community center parking lot;
127.23(19) 0.398 cent per ton must be paid to the city of Kinney for water line replacement;
127.24(20) 0.796 cent per ton must be paid to the city of Gilbert for infrastructure
127.25improvements, milling, and overlay for Summit Street between Alaska Avenue and
127.26Highway 135;
127.27(21) 0.318 cent per ton must be paid to the city of Gilbert for sanitary sewer main
127.28replacements and improvements in the Northeast Lower Alley area;
127.29(22) 0.637 cent per ton must be paid to the town of White for replacement of the
127.30Stepetz Road culvert;
127.31(23) 0.796 cent per ton must be paid to the city of Buhl for reconstruction of Sharon
127.32Street and associated infrastructure;
127.33(24) 0.796 cent per ton must be paid to the city of Mountain Iron for site
127.34improvements at the Park Ridge development;
127.35(25) 0.796 cent per ton must be paid to the city of Mountain Iron for infrastructure
127.36and site preparation for its renewable and sustainable energy park;
128.1(26) 0.637 cent per ton must be paid to the city of Biwabik for sanitary sewer
128.2improvements;
128.3(27) 0.796 cent per ton must be paid to the city of Aurora for alley and road
128.4rebuilding for the Summit Addition;
128.5(28) 0.955 cent per ton must be paid to the city of Silver Bay for bioenergy facility
128.6improvements;
128.7(29) 0.318 cent per ton must be paid to the city of Grand Marais for water and
128.8sewer infrastructure improvements;
128.9(30) 0.318 cent per ton must be paid to the city of Orr for airport, water, and sewer
128.10improvements;
128.11(31) 0.716 cent per ton must be paid to the city of Cook for street and bridge
128.12improvements and land purchase, provided that if the city sells or otherwise disposes of
128.13any of the land purchased with the money provided under this clause within a period of
128.14ten years after it was purchased, the city must transfer a portion of the proceeds of the
128.15sale equal to the amount of the purchase price paid from the money provided under this
128.16clause to the commissioner of Iron Range Resources and Rehabilitation for deposit in the
128.17taconite environmental protection fund to be used for the purposes of the fund under
128.18Minnesota Statutes, section 298.223;
128.19(32) 0.955 cent per ton must be paid to the city of Ely for street, water, and sewer
128.20improvements;
128.21(33) 0.318 cent per ton must be paid to the city of Tower for water and sewer
128.22improvements;
128.23(34) 0.955 cent per ton must be paid to the city of Two Harbors for water and sewer
128.24improvements;
128.25(35) 0.637 cent per ton must be paid to the city of Babbitt for water and sewer
128.26improvements;
128.27(36) 0.096 cent per ton must be paid to the township of Duluth for infrastructure
128.28improvements;
128.29(37) 0.096 cent per ton must be paid to the township of Tofte for infrastructure
128.30improvements;
128.31(38) 3.184 cents per ton must be paid to the city of Hibbing for sewer improvements;
128.32(39) 1.273 cents per ton must be paid to the city of Chisholm for NW Area Project
128.33infrastructure improvements;
128.34(40) 0.318 cent per ton must be paid to the city of Chisholm for health and safety
128.35improvements at the athletic facility;
129.1(41) 0.796 cent per ton must be paid to the city of Hoyt Lakes for residential street
129.2improvements;
129.3(42) 0.796 cent per ton must be paid to the Bois Forte Indian Reservation for
129.4infrastructure related to a housing development;
129.5(43) 0.159 cent per ton must be paid to Balkan Township for building improvements;
129.6(44) 0.159 cent per ton must be paid to the city of Grand Rapids for a grant to
129.7a nonprofit for a signage kiosk;
129.8(45) 0.318 cent per ton must be paid to the city of Crane Lake for sanitary sewer
129.9lines and adjacent development near County State-Aid Highway 24; and
129.10(46) 0.159 cent per ton must be paid to the city of Chisholm to rehabilitate historic
129.11wall infrastructure around the athletic complex.
129.12EFFECTIVE DATE.This section is effective for the 2010 distribution, all of
129.13which must be made in the August 2010 payment retroactively from the day following
129.14final enactment.
129.15EFFECTIVE DATE.This section is effective retroactively from April 2, 2010.

129.16    Sec. 20. CITY OF LANDFALL VILLAGE; TAX INCREMENT FINANCING
129.17DISTRICT; SPECIAL RULES.
129.18The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that
129.19activities must be undertaken within a five-year period from the date of certification of
129.20a tax increment financing district, is considered to be met for Tax Increment Financing
129.21District No. 1-1 in the city of Landfall Village if the activities were undertaken within
129.22eight years from the date of certification of the district.
129.23EFFECTIVE DATE.This section is effective upon compliance by the governing
129.24body of the city of Landfall with the requirements of Minnesota Statutes, section 645.021,
129.25subdivision 3.

129.26    Sec. 21. CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT;
129.27SPECIAL RULES.
129.28(a) If the city of Ramsey or an authority of the city elects upon the adoption of
129.29a tax increment financing plan for a district, the rules under this section apply to a
129.30redevelopment tax increment financing district established by the city or an authority
129.31of the city. The redevelopment tax increment district includes parcels within the area
129.32bounded on the North by Bunker Lake Boulevard as extended West to Llama Street, on the
129.33West by Llama Street, and on the south by a line running parallel to and 600 feet south of
130.1the southerly right-of-way for U.S. Highway 10, but including Parcels 28-32-25-43-0007
130.2and 28-32-25-34-0002 in their entirety, and excluding the Anoka County Regional Park
130.3property in its entirety. A parcel within this area that is included in a tax increment
130.4financing district that was certified before the date of enactment of this act may be included
130.5in the district created under this act if the initial district is decertified.
130.6(b) The requirements for qualifying a redevelopment tax increment district under
130.7Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcels located
130.8within the district.
130.9(c) In addition to the costs permitted by Minnesota Statutes, section 469.176,
130.10subdivision 4j, eligible expenditures within the district include the city's share of the
130.11costs necessary to provide for the construction of the Northstar Transit Station and
130.12related infrastructure, including structured parking, a pedestrian overpass, and roadway
130.13improvements.
130.14(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3,
130.15does not apply to a district established under this section.
130.16EFFECTIVE DATE.This section is effective upon approval by the governing
130.17body of the city of Ramsey, and upon compliance by the city with Minnesota Statutes,
130.18section 645.021, subdivision 3.

130.19    Sec. 22. CITY OF WAYZATA; TAX INCREMENT FINANCING DISTRICT;
130.20SPECIAL RULES.
130.21    Subdivision 1. First receipt extended. Notwithstanding Minnesota Statutes, section
130.22469.175, subdivision 1, paragraph (b), the city of Wayzata may modify the tax increment
130.23financing plan for Redevelopment Tax Increment Financing District No. 5 to change the
130.24first year in which it elects to receive increment, up to nine years following the year of
130.25approval of the district. Minnesota Statutes, section 469.175, subdivision 4, paragraph (b),
130.26does not apply to such modification of the tax increment financing plan.
130.27    Subd. 2. Five-year rule. The requirement of Minnesota Statutes, section 469.1763,
130.28subdivision 3, that activities must be undertaken within a five-year period from the
130.29date of certification of a tax increment financing district, is considered to be met for
130.30Redevelopment Tax Increment Financing District No. 5 in the city of Wayzata if the
130.31activities were undertaken within ten years from the date of certification of the district.
130.32    Subd. 3. Parcels deemed occupied. Any parcel in Redevelopment Tax Increment
130.33Financing District No. 5 in the city of Wayzata is deemed to meet the requirements of
131.1Minnesota Statutes, section 469.174, subdivision 10, paragraph (d), clause (1), if the
131.2following conditions are met:
131.3(1) a building on the parcel was demolished by a developer or the city after the city
131.4council found the building to be structurally substandard upon approval of original tax
131.5increment financing plan for the district; and
131.6(2) the city decertifies Redevelopment Tax Increment Financing District No. 5,
131.7but files a request with the county auditor for certification of the parcel as part of a
131.8subsequent redevelopment or renewal and renovation district within ten years after the
131.9date of demolition.
131.10EFFECTIVE DATE.This section is effective upon compliance by the governing
131.11body of the city of Wayzata with the requirements of Minnesota Statutes, section 645.021,
131.12subdivision 3.

131.13    Sec. 23. APPLICATION.
131.14Section 7 applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
131.15Scott, and Washington.
131.16EFFECTIVE DATE.This section is effective the day following final enactment.

131.17    Sec. 24. REVISOR'S INSTRUCTION.
131.18The revisor of statutes shall code section 19 as Minnesota Statutes, section 298.2961,
131.19subdivision 7.

131.20    Sec. 25. REPEALER.
131.21Laws 2010, chapter 215, article 9, section 3, is repealed.


131.24    Section 1. Minnesota Statutes 2008, section 282.01, subdivision 1, is amended to read:
131.25    Subdivision 1. Classification as conservation or nonconservation. It is the
131.26general policy of this state to encourage the best use of tax-forfeited lands, recognizing
131.27(a) When acting on behalf of the state under laws allowing the county board to classify
131.28and manage tax-forfeited lands held by the state in trust for the local units as provided in
131.29section 281.25, the county board has the discretion to decide that some lands in public
131.30ownership should be retained and managed for public benefits while other lands should be
131.31returned to private ownership. Parcels of land becoming the property of the state in trust
132.1under law declaring the forfeiture of lands to the state for taxes must be classified by the
132.2county board of the county in which the parcels lie as conservation or nonconservation. In
132.3making the classification the board shall consider the present use of adjacent lands, the
132.4productivity of the soil, the character of forest or other growth, accessibility of lands
132.5to established roads, schools, and other public services, their peculiar suitability or
132.6desirability for particular uses, and the suitability of the forest resources on the land for
132.7multiple use, and sustained yield management. The classification, furthermore, must: (1)
132.8encourage and foster a mode of land utilization that will facilitate the economical and
132.9adequate provision of transportation, roads, water supply, drainage, sanitation, education,
132.10and recreation; (2) facilitate reduction of governmental expenditures; (3) conserve and
132.11develop the natural resources; and (4) foster and develop agriculture and other industries
132.12in the districts and places best suited to them.
132.13In making the classification the county board may use information made available
132.14by any office or department of the federal, state, or local governments, or by any other
132.15person or agency possessing pertinent information at the time the classification is made.
132.16The lands may be reclassified from time to time as the county board considers necessary
132.17or desirable, except for conservation lands held by the state free from any trust in favor of
132.18any taxing district.
132.19If the lands are located within the boundaries of an organized town, with taxable
132.20valuation in excess of $20,000, or incorporated municipality, the classification or
132.21reclassification and sale must first be approved by the town board of the town or the
132.22governing body of the municipality in which the lands are located. The town board of
132.23the town or the governing body of the municipality is considered to have approved
132.24the classification or reclassification and sale if the county board is not notified of the
132.25disapproval of the classification or reclassification and sale within 60 days of the date the
132.26request for approval was transmitted to the town board of the town or governing body
132.27of the municipality. If the town board or governing body desires to acquire any parcel
132.28lying in the town or municipality by procedures authorized in this section, it must file a
132.29written application with the county board to withhold the parcel from public sale. The
132.30application must be filed within 60 days of the request for classification or reclassification
132.31and sale. The county board shall then withhold the parcel from public sale for six months.
132.32A municipality or governmental subdivision shall pay maintenance costs incurred by
132.33the county during the six-month period while the property is withheld from public sale,
132.34provided the property is not offered for public sale after the six-month period. A clerical
132.35error made by county officials does not serve to eliminate the request of the town board
132.36or governing body if the board or governing body has forwarded the application to the
133.1county auditor. If the town board or governing body of the municipality fails to submit an
133.2application and a resolution of the board or governing body to acquire the property within
133.3the withholding period, the county may offer the property for sale upon the expiration of
133.4the withholding period.
133.5(b) Whenever the county board deems it appropriate, the board may hold a meeting
133.6for the purpose of reclassifying tax-forfeited land that has not been sold or released from
133.7the trust. The criteria and procedures for reclassification are the same as those required for
133.8an initial classification.
133.9(c) Prior to meeting for the purpose of classifying or reclassifying tax-forfeited lands,
133.10the county board must give notice of its intent to meet for that purpose as provided in this
133.11paragraph. The notice must be given no more than 90 days and no less than 60 days before
133.12the date of the meeting; provided that if the meeting is rescheduled, notice of the new
133.13date, time, and location must be given at least 14 days before the date of the rescheduled
133.14meeting. The notice must be posted on a Web site. The notice must also be mailed or
133.15otherwise delivered to each person who has filed a request for notice of special meetings
133.16with the public body, regardless of whether the matter is considered at a regular or special
133.17meeting. The notice must be mailed or delivered at least 60 days before the date of the
133.18meeting. If the meeting is rescheduled, notice of the new date, time, and location must be
133.19mailed or delivered at least 14 days before the date of the rescheduled meeting. The public
133.20body shall publish the notice once, at least 30 days before the meeting, in a newspaper of
133.21general circulation within the area of the public body's authority. The board must also mail
133.22a notice by electronic means to each person who requests notice of meetings dealing with
133.23this subject and who agrees as provided in chapter 325L to accept notice that is mailed
133.24by electronic means. Receipt of actual notice under the conditions specified in section
133.2513D.04, subdivision 7, satisfies the notice requirements of this paragraph.
133.26The board may classify or reclassify tax-forfeited lands at any regular or special
133.27meeting, as those terms are defined in chapter 13D and may conduct only this business, or
133.28this business as well as other business or activities at the meeting.
133.29(d) At the meeting, the county board must allow any person or agency possessing
133.30pertinent information to make or submit comments and recommendations about the
133.31pending classification or reclassification. In addition, representatives of governmental
133.32entities in attendance must be allowed to describe plans, ideas, or projects that may
133.33involve use or acquisition of the property by that or another governmental entity. The
133.34county board must solicit and consider any relevant components of current municipal or
133.35metropolitan comprehensive land use plans that incorporate the area in which the land
133.36is located. After allowing testimony, the board may classify, reclassify, or delay taking
134.1action on any parcel or parcels. In order for a state agency or a governmental subdivision
134.2of the state to preserve its right to request a purchase or other acquisition of a forfeited
134.3parcel, it may, at any time following forfeiture, file a written request to withhold the parcel
134.4from sale or lease to others under the provisions of subdivision 1a.
134.5(e) When classifying, reclassifying, appraising, and selling lands under this chapter,
134.6the county board may designate the tracts as assessed and acquired, or may by resolution
134.7provide for the subdivision of the tracts into smaller units or for the grouping of several
134.8tracts into one tract when the subdivision or grouping is deemed advantageous for
134.9conservation or sale purposes. This paragraph does not authorize the county board to
134.10subdivide a parcel or tract of tax-forfeited land that, as assessed and acquired, is withheld
134.11from sale under section 282.018, subdivision 1.
134.12(f) A county board may by resolution elect to use the classification and
134.13reclassification procedures provided in paragraphs (g), (h), and (i), instead of the
134.14procedures provided in paragraphs (b), (c), and (d). Once an election is made under this
134.15paragraph, it is effective for a minimum of five years.
134.16(g) The classification or reclassification of tax-forfeited land that has not been sold or
134.17released from the trust may be made by the county board using information made available
134.18to it by any office or department of the federal, state, or local governments, or by any other
134.19person or agency possessing pertinent information at the time the classification is made.
134.20(h) If the lands are located within the boundaries of an organized town or
134.21incorporated municipality, a classification or reclassification and sale must first be
134.22approved by the town board of the town or the governing body of the municipality in
134.23which the lands are located. The town board of the town or the governing body of the
134.24municipality is considered to have approved the classification or reclassification and sale
134.25if the county board is not notified of the disapproval of the classification or reclassification
134.26and sale within 60 days of the date the request for approval was transmitted to the town
134.27board of the town or governing body of the municipality. If the town board or governing
134.28body disapproves of the classification or reclassification and sale, the county board must
134.29follow the procedures in paragraphs (c) and (d), with regard to the parcel, and must
134.30additionally cause to be published in a newspaper a notice of the date, time, location, and
134.31purpose of the required meeting.
134.32(i) If a town board or a governing body of a municipality or a park and recreation
134.33board in a city of the first class desires to acquire any parcel lying in the town or
134.34municipality by procedures authorized in this section, it may file a written request under
134.35subdivision 1a, paragraph (a).
134.36EFFECTIVE DATE.This section is effective July 1, 2010.

135.1    Sec. 2. Minnesota Statutes 2008, section 282.01, subdivision 1a, is amended to read:
135.2    Subd. 1a. Conveyance; generally to public entities. (a) Upon written request
135.3from a state agency or a governmental subdivision of the state, a parcel of unsold
135.4tax-forfeited land must be withheld from sale or lease to others for a maximum of six
135.5months. The request must be submitted to the county auditor. Upon receipt, the county
135.6auditor must withhold the parcel from sale or lease to any other party for six months, and
135.7must confirm the starting date of the six-month withholding period to the requesting
135.8agency or subdivision. If the request is from a governmental subdivision of the state, the
135.9governmental subdivision must pay the maintenance costs incurred by the county during
135.10the period the parcel is withheld. The county board may approve a sale or conveyance to
135.11the requesting party during the withholding period. A conveyance of the property to the
135.12requesting party terminates the withholding period.
135.13A governmental subdivision of the state must not make, and a county auditor must
135.14not act upon, a second request to withhold a parcel from sale or lease within 18 months
135.15of a previous request for that parcel. A county may reject a request made under this
135.16paragraph if the request is made more than 30 days after the county has given notice to the
135.17requesting state agency or governmental subdivision of the state that the county intends to
135.18sell or otherwise dispose of the property.
135.19(b) Nonconservation tax-forfeited lands may be sold by the county board, for
135.20their market value as determined by the county board, to an organized or incorporated
135.21governmental subdivision of the state for any public purpose for which the subdivision is
135.22authorized to acquire property or. When the term "market value" is used in this section, it
135.23means an estimate of the full and actual market value of the parcel as determined by the
135.24county board, but in making this determination, the board and the persons employed by or
135.25under contract with the board in order to perform, conduct, or assist in the determination,
135.26are exempt from the licensure requirements of chapter 82B.
135.27(c) Nonconservation tax-forfeited lands may be released from the trust in favor of the
135.28taxing districts on application of to the county board by a state agency for an authorized
135.29use at not less than their market value as determined by the county board.
135.30(d) Nonconservation tax-forfeited lands may be sold by the county board to an
135.31organized or incorporated governmental subdivision of the state or state agency for less
135.32than their market value if:
135.33(1) the county board determines that a sale at a reduced price is in the public interest
135.34because a reduced price is necessary to provide an incentive to correct the blighted
135.35conditions that make the lands undesirable in the open market, or the reduced price will
135.36lead to the development of affordable housing; and
136.1(2) the governmental subdivision or state agency has documented its specific plans
136.2for correcting the blighted conditions or developing affordable housing, and the specific
136.3law or laws that empower it to acquire real property in furtherance of the plans.
136.4If the sale under this paragraph is to a governmental subdivision of the state, the
136.5commissioner of revenue must convey the property on behalf of the state by quit claim
136.6deed. If the sale under this paragraph is to a state agency, the commissioner must issue a
136.7conveyance document that releases the property from the trust in favor of the taxing
136.8districts.
136.9(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts
136.10may be conveyed by the commissioner of revenue may convey by deed in the name
136.11of the state a tract of tax-forfeited land held in trust in favor of the taxing districts to a
136.12governmental subdivision for an authorized public use, if an application is submitted to
136.13the commissioner which includes a statement of facts as to the use to be made of the tract
136.14and the need therefor and the favorable recommendation of the county board. For the
136.15purposes of this paragraph, "authorized public use" means a use that allows an indefinite
136.16segment of the public to physically use and enjoy the property in numbers appropriate
136.17to its size and use, or is for a public service facility. Authorized public uses as defined
136.18in this paragraph are limited to:
136.19(1) a road, or right-of-way for a road;
136.20(2) a park that is both available to, and accessible by, the public that contains
136.21amenities such as campgrounds, playgrounds, athletic fields, trails, or shelters;
136.22(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
136.23with a reasonable amount of surrounding land maintained in its natural state;
136.24(4) transit facilities for buses, light rail transit, commuter rail or passenger rail,
136.25including transit ways, park-and-ride lots, transit stations, maintenance and garage
136.26facilities, and other facilities related to a public transit system;
136.27(5) public beaches or boat launches;
136.28(6) public parking;
136.29(7) civic recreation or conference facilities; and
136.30(8) public service facilities such as fire halls, police stations, lift stations, water
136.31towers, sanitation facilities, water treatment facilities, and administrative offices.
136.32No monetary compensation or consideration is required for the conveyance, except as
136.33provided in subdivision 1g, but the conveyance is subject to the conditions provided in
136.34law, including, but not limited to, the reversion provisions of subdivisions 1c and 1d.
136.35(f) The commissioner of revenue shall convey a parcel of nonconservation
136.36tax-forfeited land to a local governmental subdivision of the state by quit claim deed
137.1on behalf of the state upon the favorable recommendation of the county board if the
137.2governmental subdivision has certified to the board that prior to forfeiture the subdivision
137.3was entitled to the parcel under a written development agreement or instrument, but
137.4the conveyance failed to occur prior to forfeiture. No compensation or consideration is
137.5required for, and no conditions attach to, the conveyance.
137.6(g) The commissioner of revenue shall convey a parcel of nonconservation
137.7tax-forfeited land to the association of a common interest community by quit claim deed
137.8upon the favorable recommendation of the county board if the association certifies to the
137.9board that prior to forfeiture the association was entitled to the parcel under a written
137.10agreement, but the conveyance failed to occur prior to forfeiture. No compensation or
137.11consideration is required for, and no conditions attach to, the conveyance.
137.12(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the
137.13state for less than its market value for either: (1) creation or preservation of wetlands;
137.14(2) drainage or storage of storm water under a storm water management plan; or (3)
137.15preservation, or restoration and preservation, of the land in its natural state. The deed must
137.16contain a restrictive covenant limiting the use of the land to one of these purposes for
137.1730 years or until the property is reconveyed back to the state in trust. At any time, the
137.18governmental subdivision may reconvey the property to the state in trust for the taxing
137.19districts. The deed of reconveyance is subject to approval by the commissioner of revenue.
137.20No part of a purchase price determined under this paragraph shall be refunded upon a
137.21reconveyance, but the amount paid for a conveyance under this paragraph may be taken
137.22into account by the county board when setting the terms of a future sale of the same
137.23property to the same governmental subdivision under paragraph (b) or (d). If the lands
137.24are unplatted and located outside of an incorporated municipality and the commissioner
137.25of natural resources determines there is a mineral use potential, the sale is subject to the
137.26approval of the commissioner of natural resources.
137.27(i) A park and recreation board in a city of the first class is a governmental
137.28subdivision for the purposes of this section.
137.29EFFECTIVE DATE.This section is effective July 1, 2010.

137.30    Sec. 3. Minnesota Statutes 2008, section 282.01, subdivision 1b, is amended to read:
137.31    Subd. 1b. Conveyance; targeted neighborhood lands. (a) Notwithstanding
137.32subdivision 1a, in the case of tax-forfeited lands located in a targeted neighborhood, as
137.33defined in section 469.201, subdivision 10 in a city of the first class, the commissioner of
137.34revenue shall convey by quit claim deed in the name of the state any tract of tax-forfeited
137.35land held in trust in favor of the taxing districts, to a political subdivision of the state that
138.1submits an application to the commissioner of revenue and the favorable recommendation
138.2of the county board. For purposes of this subdivision, the term "targeted neighborhood"
138.3has the meaning given in section 469.201, subdivision 10, except that the land must be
138.4located within a first class city.
138.5(b) The application under paragraph (a) must include a statement of facts as to the
138.6use to be made of the tract, the need therefor, and a resolution, adopted by the governing
138.7body of the political subdivision, finding that the conveyance of a tract of tax-forfeited
138.8land to the political subdivision is necessary to provide for the redevelopment of land as
138.9productive taxable property. Deeds of conveyance issued under paragraph (a) are not
138.10conditioned on continued use of the property for the use stated in the application.
138.11EFFECTIVE DATE.This section is effective July 1, 2010.

138.12    Sec. 4. Minnesota Statutes 2008, section 282.01, subdivision 1c, is amended to read:
138.13    Subd. 1c. Deed of conveyance; form; approvals. The deed of conveyance for
138.14property conveyed for a an authorized public use under the authorities in subdivision
138.151a, paragraph (e), must be on a form approved by the attorney general and must be
138.16conditioned on continued use for the purpose stated in the application as provided in this
138.17section. These deeds are conditional use deeds that convey a defeasible estate. Reversion
138.18of the estate occurs by operation of law and without the requirement for any affirmative
138.19act by or on behalf of the state when there is a failure to put the property to the approved
138.20authorized public use for which it was conveyed, or an abandonment of that use, except as
138.21provided in subdivision 1d.
138.22EFFECTIVE DATE.This section is effective July 1, 2010.

138.23    Sec. 5. Minnesota Statutes 2008, section 282.01, subdivision 1d, is amended to read:
138.24    Subd. 1d. Reverter for failure to use; conveyance to state. (a) If after three years
138.25from the date of the conveyance a governmental subdivision to which tax-forfeited land
138.26has been conveyed for a specified an authorized public use as provided in this section
138.27subdivision 1a, paragraph (e), fails to put the land to that use, or abandons that use, the
138.28governing body of the subdivision may, must: (1) with the approval of the county board,
138.29purchase the property for an authorized public purpose at the present appraised market
138.30value as determined by the county board. In that case, the commissioner of revenue shall,
138.31upon proper written application approved by the county board, issue an appropriate deed
138.32to the subdivisions free of a use restriction and reverter. The governing body may also, or
138.33(2) authorize the proper officers to convey the land, or the part of the land not required for
139.1an authorized public use, to the state of Minnesota. in trust for the taxing districts. If the
139.2governing body purchases the property under clause (1), the commissioner of revenue
139.3shall, upon proper application submitted by the county auditor, convey the property on
139.4behalf of the state by quit claim deed to the subdivision free of a use restriction and the
139.5possibility of reversion or defeasement. If the governing body decides to reconvey the
139.6property to the state under this clause, the officers shall execute a deed of conveyance
139.7immediately. The conveyance is subject to the approval of the commissioner and its form
139.8must be approved by the attorney general. A sale, lease, transfer, or other conveyance
139.9of tax-forfeited lands by a housing and redevelopment authority, a port authority, an
139.10economic development authority, or a city as authorized by chapter 469 is not an
139.11abandonment of use and the lands shall not be reconveyed to the state nor shall they
139.12revert to the state. A certificate made by a housing and redevelopment authority, a port
139.13authority, an economic development authority, or a city referring to a conveyance by it
139.14and stating that the conveyance has been made as authorized by chapter 469 may be filed
139.15with the county recorder or registrar of titles, and the rights of reverter in favor of the state
139.16provided by subdivision 1e will then terminate. No vote of the people is required for the
139.17conveyance. For the purposes of this paragraph, there is no failure to put the land to the
139.18authorized public use and no abandonment of that use if a formal plan of the governmental
139.19subdivision, including, but not limited to, a comprehensive plan or land use plan that
139.20shows an intended future use of the land for the authorized public use.
139.21(b) Property held by a governmental subdivision of the state under a conditional use
139.22deed executed under subdivision 1a, paragraph (e), by the commissioner of revenue on or
139.23after January 1, 2007, may be acquired by that governmental subdivision after 15 years
139.24from the date of the conveyance if the commissioner determines upon written application
139.25from the subdivision that the subdivision has in fact put the property to the authorized
139.26public use for which it was conveyed, and the subdivision has made a finding that it
139.27has no current plans to change the use of the lands. Prior to conveying the property, the
139.28commissioner shall inquire whether the county board where the land is located objects to a
139.29conveyance of the property to the subdivision without conditions and without further act
139.30by or obligation of the subdivision. If the county does not object within 60 days, and the
139.31commissioner makes a favorable determination, the commissioner shall issue a quit claim
139.32deed on behalf of the state unconditionally conveying the property to the governmental
139.33subdivision. For purposes of this paragraph, demonstration of an intended future use
139.34for the authorized public use in a formal plan of the governmental subdivision does not
139.35constitute use for that authorized public use.
140.1(c) Property held by a governmental subdivision of the state under a conditional
140.2use deed executed under subdivision 1a, paragraph (e), by the commissioner of revenue
140.3before January 1, 2007, is released from the use restriction and possibility of reversion on
140.4January 1, 2022, if the county board records a resolution describing the land and citing
140.5this paragraph. The county board may authorize the county treasurer to deduct the amount
140.6of the recording fees from future settlements of property taxes to the subdivision.
140.7(d) All property conveyed under a conditional use deed executed under subdivision
140.81a, paragraph (e), by the commissioner of revenue is released from the use restriction and
140.9reverter, and any use restriction or reverter for which no declaration of reversion has been
140.10recorded with the county recorder or registrar of titles, as appropriate, is nullified on the
140.11later of: (1) January 1, 2015; (2) 30 years from the date the deed was acknowledged; or
140.12(3) final resolution of an appeal to district court under subdivision 1e, if a lis pendens
140.13related to the appeal is recorded in the office of the county recorder or registrar of titles,
140.14as appropriate, prior to January 1, 2015.
140.15EFFECTIVE DATE.This section is effective July 1, 2010.

140.16    Sec. 6. Minnesota Statutes 2008, section 282.01, is amended by adding a subdivision
140.17to read:
140.18    Subd. 1g. Conditional use deed fees. (a) A governmental subdivision of the state
140.19applying for a conditional use deed under subdivision 1a, paragraph (e), must submit a fee
140.20of $250 to the commissioner of revenue along with the application. If the application is
140.21denied, the commissioner shall refund $150 of the application fee.
140.22(b) The proceeds from the fees must be deposited in a Department of Revenue
140.23conditional use deed revolving fund. The sums deposited into the revolving fund are
140.24appropriated to the commissioner of revenue for the purpose of making the refunds
140.25described in this subdivision, and administering conditional use deed laws.
140.26EFFECTIVE DATE.This section is effective for applications received by the
140.27commissioner after June 30, 2010.

140.28    Sec. 7. Minnesota Statutes 2008, section 282.01, is amended by adding a subdivision
140.29to read:
140.30    Subd. 1h. Conveyance; form. The instruments of conveyance executed and issued
140.31by the commissioner of revenue under subdivision 1a, paragraphs (c), (d), (e), (f), (g),
140.32and (h), and subdivision 1d, paragraph (b), must be on a form approved by the attorney
141.1general and are prima facie evidence of the facts stated therein and that the execution and
141.2issuance of the conveyance complies with the applicable laws.
141.3EFFECTIVE DATE.This section is effective for deeds executed by the
141.4commissioner of revenue after June 30, 2010.

141.5    Sec. 8. Minnesota Statutes 2008, section 282.01, subdivision 2, is amended to read:
141.6    Subd. 2. Conservation lands; county board supervision. (a) Lands classified as
141.7conservation lands, unless reclassified as nonconservation lands, sold to a governmental
141.8subdivision of the state, designated as lands primarily suitable for forest production and
141.9sold as hereinafter provided, or released from the trust in favor of the taxing districts, as
141.10herein provided, will must be held under the supervision of the county board of the county
141.11within which such the parcels lie. and must not be conveyed or sold unless the lands are:
141.12The county board may, by resolution duly adopted, declare lands classified as
141.13conservation lands as primarily suitable for timber production and as lands which should
141.14be placed in private ownership for such purposes. If such action be approved by the
141.15commissioner of natural resources, the lands so designated, or any part thereof, may be
141.16sold by the county board in the same manner as provided for the sale of lands classified as
141.17nonconservation lands. Such county action and the approval of the commissioner shall be
141.18limited to lands lying within areas zoned for restricted uses under the provisions of Laws
141.191939, chapter 340, or any amendments thereof.
141.20(1) reclassified as nonconservation lands;
141.21(2) conveyed to a governmental subdivision of the state under subdivision 1a;
141.22(3) released from the trust in favor of the taxing districts as provided in paragraph
141.23(b); or
141.24(4) conveyed or sold under the authority of another general or special law.
141.25(b) The county board may, by resolution duly adopted, resolve that certain lands
141.26classified as conservation lands shall be devoted to conservation uses and may submit
141.27such a resolution to the commissioner of natural resources. If, upon investigation,
141.28the commissioner of natural resources determines that the lands covered by such the
141.29resolution, or any part thereof, can be managed and developed for conservation purposes,
141.30the commissioner shall make a certificate describing the lands and reciting the acceptance
141.31thereof on behalf of the state for such purposes. The commissioner shall transmit the
141.32certificate to the county auditor, who shall note the same upon the auditor's records and
141.33record the same with the county recorder. The title to all lands so accepted shall be held
141.34by the state free from any trust in favor of any and all taxing districts and such the lands
141.35shall be devoted thereafter to the purposes of forestry, water conservation, flood control,
142.1parks, game refuges, controlled game management areas, public shooting grounds, or
142.2other public recreational or conservation uses, and managed, controlled, and regulated
142.3for such purposes under the jurisdiction of the commissioner of natural resources and
142.4the divisions of the department.
142.5(c) All proceeds derived from the sale of timber, lease of crops of hay, or other
142.6revenue from lands under the jurisdiction of the commissioner of natural resources shall
142.7be credited to the general fund of the state.
142.8In case (d) If the commissioner of natural resources shall determine determines that
142.9any tract of land so held acquired by the state under paragraph (b) and situated within or
142.10adjacent to the boundaries of any governmental subdivision of the state is suitable for use
142.11by such the subdivision for any authorized public purpose, the commissioner may convey
142.12such the tract by deed in the name of the state to such the subdivision upon the filing
142.13with the commissioner of a resolution adopted by a majority vote of all the members
142.14of the governing body thereof, stating the purpose for which the land is desired. The
142.15deed of conveyance shall be upon a form approved by the attorney general and must be
142.16conditioned upon continued use for the purpose stated in the resolution. All proceeds
142.17derived from the sale of timber, lease of hay stumpage, or other revenue from such
142.18lands under the jurisdiction of the natural resources commissioner shall be paid into the
142.19general fund of the state.
142.20(e) The county auditor, with the approval of the county board, may lease conservation
142.21lands remaining under the jurisdiction supervision of the county board and sell timber
142.22and hay stumpage thereon in the manner hereinafter provided, and all proceeds derived
142.23therefrom shall be distributed in the same manner as provided in section 282.04.
142.24EFFECTIVE DATE.This section is effective July 1, 2010.

142.25    Sec. 9. Minnesota Statutes 2008, section 282.01, subdivision 3, is amended to read:
142.26    Subd. 3. Nonconservation lands; appraisal and sale. (a) All parcels of land
142.27classified as nonconservation, except those which may be reserved, shall be sold as
142.28provided, if it is determined, by the county board of the county in which the parcels lie,
142.29that it is advisable to do so, having in mind their accessibility, their proximity to existing
142.30public improvements, and the effect of their sale and occupancy on the public burdens.
142.31Any parcels of land proposed to be sold shall be first appraised by the county board of
142.32the county in which the parcels lie. The parcels may be reappraised whenever the county
142.33board deems it necessary to carry out the intent of sections 282.01 to 282.13.
142.34(b) In an appraisal the value of the land and any standing timber on it shall be
142.35separately determined. No parcel of land containing any standing timber may be sold until
143.1the appraised value of the timber on it and the sale of the land have been approved by the
143.2commissioner of natural resources. The commissioner shall base review of a proposed
143.3sale on the policy and considerations specified in subdivision 1. The decision of the
143.4commissioner shall be in writing and shall state the reasons for it. The commissioner's
143.5decision is exempt from the rulemaking provisions of chapter 14 and section 14.386
143.6does not apply. The county may appeal the decision of the commissioner in accordance
143.7with chapter 14.
143.8(c) In any county in which a state forest or any part of it is located, the county
143.9auditor shall submit to the commissioner at least 60 days before the first publication of the
143.10list of lands to be offered for sale a list of all lands included on the list which are situated
143.11outside of any incorporated municipality. If, at any time before the opening of the sale, the
143.12commissioner notifies the county auditor in writing that there is standing timber on any
143.13parcel of such land, the parcel shall not be sold unless the requirements of this section
143.14respecting the separate appraisal of the timber and the approval of the appraisal by the
143.15commissioner have been complied with. The commissioner may waive the requirement
143.16of the 60-day notice as to any parcel of land which has been examined and the timber
143.17value approved as required by this section.
143.18(d) If any public improvement is made by a municipality after any parcel of land has
143.19been forfeited to the state for the nonpayment of taxes, and the improvement is assessed in
143.20whole or in part against the property benefited by it, the clerk of the municipality shall
143.21certify to the county auditor, immediately upon the determination of the assessments for
143.22the improvement, the total amount that would have been assessed against the parcel of land
143.23if it had been subject to assessment; or if the public improvement is made, petitioned for,
143.24ordered in or assessed, whether the improvement is completed in whole or in part, at any
143.25time between the appraisal and the sale of the parcel of land, the cost of the improvement
143.26shall be included as a separate item and added to the appraised value of the parcel of land
143.27at the time it is sold. No sale of a parcel of land shall discharge or free the parcel of land
143.28from lien for the special benefit conferred upon it by reason of the public improvement
143.29until the cost of it, including penalties, if any, is paid. The county board shall determine
143.30the amount, if any, by which the value of the parcel was enhanced by the improvement and
143.31include the amount as a separate item in fixing the appraised value for the purpose of sale.
143.32In classifying, appraising, and selling the lands, the county board may designate the tracts
143.33as assessed and acquired, or may by resolution provide for the subdivision of the tracts into
143.34smaller units or for the grouping of several tracts into one tract when the subdivision or
143.35grouping is deemed advantageous for the purpose of sale. Each such smaller tract or larger
143.36tract must be classified and appraised as such before being offered for sale. If any such
144.1lands have once been classified, the board of county commissioners, in its discretion, may,
144.2by resolution, authorize the sale of the smaller tract or larger tract without reclassification.
144.3EFFECTIVE DATE.This section is effective July 1, 2010.

144.4    Sec. 10. Minnesota Statutes 2008, section 282.01, subdivision 4, is amended to read:
144.5    Subd. 4. Sale: method, requirements, effects. The sale authorized under
144.6subdivision 3 must be conducted by the county auditor at the county seat of the county in
144.7which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may
144.8be conducted in any county facility within the county. The sale must not be for less than
144.9the appraised value except as provided in subdivision 7a. The parcels must be sold for
144.10cash only and at not less than the appraised value, unless the county board of the county
144.11has adopted a resolution providing for their sale on terms, in which event the resolution
144.12controls with respect to the sale. When the sale is made on terms other than for cash only
144.13(1) a payment of at least ten percent of the purchase price must be made at the time of
144.14purchase, and the balance must be paid in no more than ten equal annual installments, or
144.15(2) the payments must be made in accordance with county board policy, but in no event
144.16may the board require more than 12 installments annually, and the contract term must not
144.17be for more than ten years. Standing timber or timber products must not be removed from
144.18these lands until an amount equal to the appraised value of all standing timber or timber
144.19products on the lands at the time of purchase has been paid by the purchaser. If a parcel of
144.20land bearing standing timber or timber products is sold at public auction for more than
144.21the appraised value, the amount bid in excess of the appraised value must be allocated
144.22between the land and the timber in proportion to their respective appraised values. In that
144.23case, standing timber or timber products must not be removed from the land until the
144.24amount of the excess bid allocated to timber or timber products has been paid in addition
144.25to the appraised value of the land. The purchaser is entitled to immediate possession,
144.26subject to the provisions of any existing valid lease made in behalf of the state.
144.27For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price
144.28is subject to interest at the rate determined pursuant to section 549.09. The unpaid balance
144.29of the purchase price for sales occurring after December 31, 1990, is subject to interest
144.30at the rate determined in section 279.03, subdivision 1a. The interest rate is subject to
144.31change each year on the unpaid balance in the manner provided for rate changes in section
144.32549.09 or 279.03, subdivision 1a, whichever, is applicable. Interest on the unpaid contract
144.33balance on sales occurring before July 1, 1982, is payable at the rate applicable to the sale
144.34at the time that the sale occurred.
145.1EFFECTIVE DATE.This section is effective July 1, 2010.

145.2    Sec. 11. Minnesota Statutes 2008, section 282.01, subdivision 7, is amended to read:
145.3    Subd. 7. County sales; notice, purchase price, disposition. The sale must
145.4commence at the time determined by the county board of the county in which the parcels
145.5are located. The county auditor shall offer the parcels of land in order in which they
145.6appear in the notice of sale, and shall sell them to the highest bidder, but not for a sum
145.7less than the appraised value, until all of the parcels of land have been offered. Then the
145.8county auditor shall sell any remaining parcels to anyone offering to pay the appraised
145.9value, except that if the person could have repurchased a parcel of property under section
145.10282.012 or 282.241, that person may not purchase that same parcel of property at the sale
145.11under this subdivision for a purchase price less than the sum of all taxes, assessments,
145.12penalties, interest, and costs due at the time of forfeiture computed under section 282.251,
145.13and any special assessments for improvements certified as of the date of sale. The sale
145.14must continue until all the parcels are sold or until the county board orders a reappraisal or
145.15withdraws any or all of the parcels from sale. The list of lands may be added to and the
145.16added lands may be sold at any time by publishing the descriptions and appraised values.
145.17The added lands must be: (1) parcels of land that have become forfeited and classified
145.18as nonconservation since the commencement of any prior sale; (2) parcels classified as
145.19nonconservation that have been reappraised; (3) parcels that have been reclassified as
145.20nonconservation; or (4) other parcels that are subject to sale but were omitted from the
145.21existing list for any reason. The descriptions and appraised values must be published in
145.22the same manner as provided for the publication of the original list. Parcels added to the
145.23list must first be offered for sale to the highest bidder before they are sold at appraised
145.24value. All parcels of land not offered for immediate sale, as well as parcels that are offered
145.25and not immediately sold, continue to be held in trust by the state for the taxing districts
145.26interested in each of the parcels, under the supervision of the county board. Those parcels
145.27may be used for public purposes until sold, as directed by the county board.
145.28EFFECTIVE DATE.This section is effective July 1, 2010.

145.29    Sec. 12. Minnesota Statutes 2008, section 282.01, subdivision 7a, is amended to read:
145.30    Subd. 7a. City sales; alternate procedures. Land located in a home rule charter
145.31or statutory city, or in a town which cannot be improved because of noncompliance with
145.32local ordinances regarding minimum area, shape, frontage or access may be sold by the
145.33county auditor pursuant to this subdivision if the auditor determines that a nonpublic sale
145.34will encourage the approval of sale of the land by the city or town and promote its return
146.1to the tax rolls. If the physical characteristics of the land indicate that its highest and best
146.2use will be achieved by combining it with an adjoining parcel and the city or town has not
146.3adopted a local ordinance governing minimum area, shape, frontage, or access, the land
146.4may also be sold pursuant to this subdivision. If the property consists of an undivided
146.5interest in land or land and improvements, the property may also be sold to the other
146.6owners under this subdivision. The sale of land pursuant to this subdivision shall be
146.7subject to any conditions imposed by the county board pursuant to section 282.03. The
146.8governing body of the city or town may recommend to the county board conditions to be
146.9imposed on the sale. The county auditor may restrict the sale to owners of lands adjoining
146.10the land to be sold. The county auditor shall conduct the sale by sealed bid or may select
146.11another means of sale. The land shall be sold to the highest bidder but in no event shall the
146.12land and may be sold for less than its appraised value. All owners of land adjoining the
146.13land to be sold shall be given a written notice at least 30 days prior to the sale.
146.14This subdivision shall be liberally construed to encourage the sale and utilization
146.15of tax-forfeited land, to eliminate nuisances and dangerous conditions and to increase
146.16compliance with land use ordinances.
146.17EFFECTIVE DATE.This section is effective July 1, 2010.

146.18    Sec. 13. Minnesota Statutes 2008, section 282.01, is amended by adding a subdivision
146.19to read:
146.20    Subd. 12. Notice; public hearing for use change. If a governmental subdivision
146.21that acquired a parcel for public use under this section later determines to change the use,
146.22it must hold a public hearing on the proposed use change. The governmental subdivision
146.23must mail written notice of the proposed use change and the public hearing to each owner
146.24of property that is within 400 feet of the parcel at least ten days and no more than 60 days
146.25before it holds the hearing. The notice must identify: (1) the parcel, (2) its current use,
146.26(3) the proposed use, (4) the date, time, and place of the public hearing, and (5) where
146.27to submit written comments on the proposal and that the public is invited to testify at
146.28the public hearing.
146.29EFFECTIVE DATE.This section is effective July 1, 2010, and applies to a change
146.30in use of a parcel acquired under Minnesota Statutes, section 282.01, whether acquired by
146.31the governmental subdivision before or after the effective date of this section.

146.32    Sec. 14. REPEALER.
147.1Minnesota Statutes 2008, sections 282.01, subdivisions 9, 10, and 11; and 383A.76,
147.2are repealed.
147.3EFFECTIVE DATE.This section is effective July 1, 2010.


147.6    Section 1. Minnesota Statutes 2008, section 270C.34, subdivision 1, is amended to read:
147.7    Subdivision 1. Authority. (a) The commissioner may abate, reduce, or refund any
147.8penalty or interest that is imposed by a law administered by the commissioner, or imposed
147.9by section 270.0725, subdivision 1 or 2, as a result of the late payment of tax or late
147.10filing of a return, if the failure to timely pay the tax or failure to timely file the return is
147.11due to reasonable cause, or if the taxpayer is located in a presidentially declared disaster
147.12or in a presidentially declared state of emergency area or in an area declared to be in a
147.13state of emergency by the governor under section 12.31.
147.14    (b) The commissioner shall abate any part of a penalty or additional tax charge
147.15under section 289A.25, subdivision 2, or 289A.26, subdivision 4, attributable to erroneous
147.16advice given to the taxpayer in writing by an employee of the department acting in
147.17an official capacity, if the advice:
147.18    (1) was reasonably relied on and was in response to a specific written request of the
147.19taxpayer; and
147.20    (2) was not the result of failure by the taxpayer to provide adequate or accurate
147.21information.
147.22    (c) The commissioner may abate a penalty imposed under section 270.0725,
147.23subdivision 1 or 2, if the failure to timely file is due to reasonable cause, or if the airline
147.24company is located in a presidentially declared disaster area.
147.25EFFECTIVE DATE.This section is effective the day following final enactment.

147.26    Sec. 2. Minnesota Statutes 2008, section 270C.52, subdivision 2, is amended to read:
147.27    Subd. 2. Payment agreements. (a) When any portion of any tax payable to the
147.28commissioner together with interest and penalty thereon, if any, has not been paid, the
147.29commissioner may extend the time for payment for a further period. When the authority
147.30of this section is invoked, the extension shall be evidenced by written agreement signed by
147.31the taxpayer and the commissioner, stating the amount of the tax with penalty and interest,
147.32if any, and providing for the payment of the amount in installments.
148.1(b) The agreement may contain a confession of judgment for the amount and for any
148.2unpaid portion thereof. If the agreement contains a confession of judgment, the confession
148.3of judgment must provide that the commissioner may enter judgment against the taxpayer
148.4in the district court of the county of residence as shown upon the taxpayer's tax return for
148.5the unpaid portion of the amount specified in the extension agreement.
148.6(c) The agreement shall provide that it can be terminated, after notice by the
148.7commissioner, if information provided by the taxpayer prior to the agreement was
148.8inaccurate or incomplete, collection of the tax covered by the agreement is in jeopardy,
148.9there is a subsequent change in the taxpayer's financial condition, the taxpayer has failed
148.10to make a payment due under the agreement, or the taxpayer has failed to pay any other
148.11tax or file a tax return coming due after the agreement.
148.12(d) The notice must be given at least 14 calendar days prior to termination, and shall
148.13advise the taxpayer of the right to request a reconsideration from the commissioner of
148.14whether termination is reasonable and appropriate under the circumstances. A request for
148.15reconsideration does not stay collection action beyond the 14-day notice period. If the
148.16commissioner has reason to believe that collection of the tax covered by the agreement
148.17is in jeopardy, the commissioner may proceed under section 270C.36 and terminate the
148.18agreement without regard to the 14-day period.
148.19(e) The commissioner may accept other collateral the commissioner considers
148.20appropriate to secure satisfaction of the tax liability. The principal sum specified in the
148.21agreement shall bear interest at the rate specified in section 270C.40 on all unpaid portions
148.22thereof until the same has been fully paid or the unpaid portion thereof has been entered as
148.23a judgment. The judgment shall bear interest at the rate specified in section 270C.40.
148.24(f) If it appears to the commissioner that the tax reported by the taxpayer is in excess
148.25of the amount actually owing by the taxpayer, the extension agreement or the judgment
148.26entered pursuant thereto shall be corrected. If after making the extension agreement
148.27or entering judgment with respect thereto, the commissioner determines that the tax as
148.28reported by the taxpayer is less than the amount actually due, the commissioner shall
148.29assess a further tax in accordance with the provisions of law applicable to the tax.
148.30(g) The authority granted to the commissioner by this section is in addition to any
148.31other authority granted to the commissioner by law to extend the time of payment or the
148.32time for filing a return and shall not be construed in limitation thereof.
148.33(h) The commissioner shall charge a fee for entering into payment agreements
148.34that reflects the commissioner's costs for entering into payment agreements. The fee is
148.35initially set at $25 and is adjusted annually as necessary. The fee is charged for entering
148.36into a payment agreement, for entering into a new payment agreement after the taxpayer
149.1has defaulted on a prior agreement, and for entering into a new payment agreement as
149.2a result of renegotiation of the terms of an existing agreement. The fee is paid to the
149.3commissioner before the payment agreement becomes effective and does not reduce
149.4the amount of the liability.
149.5By June 1 of each year, the commissioner shall determine the cost to the
149.6commissioner for entering into payment agreements during the fiscal year and adjust the
149.7payment agreement fee as necessary to most nearly equal those costs. Determination
149.8of the fee for payment agreements under this section is not subject to the fee setting
149.9requirements of section 16A.1283.
149.10EFFECTIVE DATE.This section is effective for payment agreements entered
149.11into or renegotiated after June 30, 2010.

149.12    Sec. 3. APPROPRIATION.
149.13$2,800,000 is appropriated from the general fund to the commissioner of
149.14management and budget for transfer to the cash flow account established under Minnesota
149.15Statutes, section 16A.152."
149.16Amend the title accordingly