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KEY: stricken = removed, old language.underscored = new language to be added

scs0826a-3

1.1Senator .................... moves to amend S.F. No. 826 as follows:
1.2Delete everything after the enacting clause and insert:

1.3"ARTICLE 1
1.4INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

1.5    Section 1. Minnesota Statutes 2014, section 16D.08, subdivision 2, is amended to read:
1.6    Subd. 2. Powers. (a) In addition to the collection remedies available to private
1.7collection agencies in this state, the commissioner, with legal assistance from the attorney
1.8general, may utilize any statutory authority granted to a referring agency for purposes of
1.9collecting debt owed to that referring agency. The commissioner may also use the tax
1.10collection remedies in sections 270C.03, subdivision 1, clause (8) (9), 270C.31, 270C.32,
1.11270C.52 , subdivisions 2 and 3, 270C.63, 270C.65, and 270C.67 to 270C.72. A debtor
1.12may take advantage of any administrative or appeal rights contained in the listed sections.
1.13For administrative and appeal rights for nontax debts, references to administrative
1.14appeals or to the taxpayer rights advocate shall be construed to be references to the case
1.15reviewer, references to Tax Court shall be construed to mean district court, and offers
1.16in compromise shall be submitted to the referring agency. A debtor who qualifies for
1.17cancellation of collection costs under section 16D.11, subdivision 3, clause (1), can apply
1.18to the commissioner for reduction or release of a continuous wage levy, if the debtor
1.19establishes that the debtor needs all or a portion of the wages being levied upon to pay
1.20for essential living expenses, such as food, clothing, shelter, medical care, or expenses
1.21necessary for maintaining employment. The commissioner's determination not to reduce
1.22or release a continuous wage levy is appealable to district court. The word "tax" or "taxes"
1.23when used in the tax collection statutes listed in this subdivision also means debts referred
1.24under this chapter.
1.25(b) Before using the tax collection remedies listed in this subdivision, notice and
1.26demand for payment of the amount due must be given to the person liable for the payment
1.27or collection of the debt at least 30 days prior to the use of the remedies. The notice must
1.28be sent to the person's last known address and must include a brief statement that sets forth
1.29in simple and nontechnical terms the amount and source of the debt, the nature of the
1.30available collection remedies, and remedies available to the debtor.
1.31EFFECTIVE DATE.This section is effective the day following final enactment.

1.32    Sec. 2. Minnesota Statutes 2014, section 136A.129, subdivision 3, is amended to read:
2.1    Subd. 3. Program components. (a) An intern must be an eligible student who has
2.2been admitted to a major program that is related to the intern experience as determined
2.3by the eligible institution.
2.4(b) To participate in the program, an eligible institution must:
2.5(1) enter into written agreements with eligible employers to provide internships that
2.6are at least eight weeks long and located in greater Minnesota; and
2.7(2) provide academic credit for the successful completion of the internship or ensure
2.8that it fulfills requirements necessary to complete a vocational technical education program.
2.9(c) To participate in the program, an eligible employer must enter into a written
2.10agreement with an eligible institution specifying that the intern:
2.11(1) would not have been hired without the tax credit described in subdivision 4;
2.12(2) did not work for the employer in the same or a similar job prior to entering
2.13the agreement;
2.14(3) (2) does not replace an existing employee;
2.15(4) (3) has not previously participated in the program;
2.16(5) (4) will be employed at a location in greater Minnesota;
2.17(6) (5) will be paid at least minimum wage for a minimum of 16 hours per week
2.18for a period of at least eight weeks; and
2.19(7) (6) will be supervised and evaluated by the employer.
2.20(d) The written agreement between the eligible institution and the eligible employer
2.21must certify a credit amount to the employer, not to exceed $2,000 per intern. The total
2.22dollar amount of credits that an eligible institution certifies to eligible employers in a
2.23calendar year may not exceed the amount of its allocation under subdivision 4.
2.24(e) Participating eligible institutions and eligible employers must report annually to
2.25the office. The report must include at least the following:
2.26(1) the number of interns hired;
2.27(2) the number of hours and weeks worked by interns; and
2.28(3) the compensation paid to interns.
2.29(f) An internship required to complete an academic program does not qualify for the
2.30greater Minnesota internship program under this section.
2.31EFFECTIVE DATE.This section is effective the day following final enactment.

2.32    Sec. 3. Minnesota Statutes 2014, section 270C.03, subdivision 1, is amended to read:
2.33    Subdivision 1. Powers and duties. The commissioner shall have and exercise
2.34the following powers and duties:
2.35    (1) administer and enforce the assessment and collection of taxes;
3.1    (2) make determinations, corrections, and assessments with respect to taxes,
3.2including interest, additions to taxes, and assessable penalties;
3.3    (3) disallow the tax effects of a transaction governed under chapter 290 that does not
3.4have economic substance;
3.5    (3) (4) use statistical or other sampling techniques consistent with generally accepted
3.6auditing standards in examining returns or records and making assessments;
3.7    (4) (5) investigate the tax laws of other states and countries, and formulate and
3.8submit to the legislature such legislation as the commissioner may deem expedient
3.9to prevent evasions of state revenue laws and to secure just and equal taxation and
3.10improvement in the system of state revenue laws;
3.11    (5) (6) consult and confer with the governor upon the subject of taxation, the
3.12administration of the laws in regard thereto, and the progress of the work of the
3.13department, and furnish the governor, from time to time, such assistance and information
3.14as the governor may require relating to tax matters;
3.15    (6) (7) execute and administer any agreement with the secretary of the treasury or the
3.16Bureau of Alcohol, Tobacco, Firearms and Explosives in the Department of Justice of the
3.17United States or a representative of another state regarding the exchange of information
3.18and administration of the state revenue laws;
3.19    (7) (8) require town, city, county, and other public officers to report information
3.20as to the collection of taxes received from licenses and other sources, and such other
3.21information as may be needful in the work of the commissioner, in such form as the
3.22commissioner may prescribe;
3.23    (8) (9) authorize the use of unmarked motor vehicles to conduct seizures or criminal
3.24investigations pursuant to the commissioner's authority;
3.25    (9) (10) authorize the participation in audits performed by the Multistate Tax
3.26Commission. For the purposes of chapter 270B, the Multistate Tax Commission will be
3.27considered to be a state for the purposes of auditing corporate sales, excise, and income
3.28tax returns;
3.29    (10) (11) maintain toll-free telephone access for taxpayer assistance for calls from
3.30locations within the state; and
3.31    (11) (12) exercise other powers and authority and perform other duties required of or
3.32imposed upon the commissioner by law.
3.33EFFECTIVE DATE.This section is effective for taxable years beginning after
3.34December 31, 2015.

3.35    Sec. 4. [270C.331] ECONOMIC SUBSTANCE.
4.1    Subdivision 1. Economic substance. (a) For the purposes of disallowing the
4.2tax effects of a transaction that does not have substance pursuant to section 270C.03,
4.3subdivision 1, clause (3), a transaction shall be treated as having economic substance
4.4only if:
4.5(1) the transaction changes in a meaningful way, apart from tax effects, the taxpayer's
4.6economic position; and
4.7(2) the taxpayer has a substantial purpose, apart from tax effects, for entering into
4.8the transaction.
4.9(b) In determining whether the requirements of paragraph (a), clauses (1) and (2),
4.10are met, the potential for profit of a transaction shall be taken into account only if the
4.11present value of the reasonable expected pretax profit from the transaction is substantial in
4.12relation to the present value of the expected net tax benefits that would be allowed if the
4.13transaction was respected. Fees and other transaction expenses shall be taken into account
4.14as expenses in determining pretax profit.
4.15(c) For the purposes of paragraph (a), clause (2), achieving a financial accounting
4.16benefit shall not be taken into account as a purpose for entering into a transaction if the
4.17origin of such financial accounting benefit is a reduction of federal, state, or local tax.
4.18    Subd. 2. Apart from tax effects. For purposes of this section, "apart from tax
4.19effects" means without regard to the state and local tax effects arising from the application
4.20of the laws of any state or local unit of government to the form of the transaction, the
4.21federal tax effects, or both.
4.22    Subd. 3. Transaction. For purposes of this section and section 270C.03, subdivision
4.231, clause (3), "transaction" includes a series of transactions.
4.24    Subd. 4. Personal transactions of individuals. In the case of an individual,
4.25subdivision 1 shall only apply to transactions entered into in connection with the trade or
4.26business activity engaged in for the production of income.
4.27    Subd. 5. Commissioner to issue guidance. (a) The commissioner shall promulgate
4.28guidance on how the provisions of this section will be applied. The guidance must
4.29include, at a minimum, types of transactions that will not be challenged as not having
4.30economic substance, and types of transactions that would be challenged as not having
4.31economic substance.
4.32(b) The commissioner shall promulgate rules to further define the terms
4.33"meaningful," "substantial," and any other term used in this section that the commissioner
4.34would apply in determining whether a transaction has economic substance.
4.35(c) The commissioner shall establish and publish a formal departmental procedure
4.36for uniform application of this section.
5.1EFFECTIVE DATE.This section is effective for taxable years beginning after
5.2December 31, 2015, except that subdivision 5 is effective the day following final enactment.

5.3    Sec. 5. Minnesota Statutes 2014, section 289A.02, subdivision 7, as amended by Laws
5.42015, chapter 1, section 1, is amended to read:
5.5    Subd. 7. Internal Revenue Code. Unless specifically defined otherwise, "Internal
5.6Revenue Code" means the Internal Revenue Code of 1986, as amended through December
5.731, 2014 April 1, 2015.
5.8EFFECTIVE DATE.This section is effective for taxable years beginning after
5.9December 31, 2014.

5.10    Sec. 6. Minnesota Statutes 2014, section 290.01, subdivision 4a, is amended to read:
5.11    Subd. 4a. Financial institution. (a) "Financial institution" means:
5.12(1) a holding company any corporation or other business entity registered (i) under
5.13state law as a bank holding company; (ii) under the federal Bank Holding Company Act
5.14of 1956, as amended; or (iii) as a savings and loan holding company under the federal
5.15National Housing Act, as amended;
5.16(2) any regulated financial corporation; or a national bank organized and existing
5.17as a national bank association pursuant to the provisions of United States Code, title
5.1812, chapter 2;
5.19(3) any other corporation organized under the laws of the United States or organized
5.20under the laws of this state or any other state or country that is carrying on the business of
5.21a financial institution. a savings association or federal savings bank as defined in United
5.22States Code, title 12, section 1813(b)(1);
5.23(4) any bank or thrift institution incorporated or organized under the laws of any state;
5.24(5) any corporation organized under United States Code, title 12, sections 611 to 631;
5.25(6) any agency or branch of a foreign depository as defined under United States
5.26Code, title 12, section 3101;
5.27(7) any corporation or other business entity that is more than 50 percent owned,
5.28directly or indirectly, by any person or business entity described in clauses (1) to (6), other
5.29than an insurance company taxable under chapter 297I;
5.30(8) a corporation or other business entity that derives more than 50 percent of its
5.31total gross income for financial accounting purposes from finance leases. For the purposes
5.32of this clause, "gross income" is the average from the current tax year and immediately
5.33preceding two years and excludes gross income from incidental or occasional transactions.
5.34For purposes of this clause, "finance lease" means any lease transaction which is the
6.1functional equivalent of an extension of credit, and that transfers substantially all of the
6.2benefits and risks incident to the ownership of property, including any direct financing
6.3lease or leverage lease that meets the criteria of Financial Accounting Standards Board
6.4Statement No. 13, accounting for leases, or any other lease that is accounted for as
6.5financing by a lessor under generally accepted accounting principles; or
6.6(9) any other person or business entity, other than an insurance company taxable under
6.7chapter 297I, which derives more than 50 percent of its gross income from activities that an
6.8entity described in clauses (2) to (6), or (8), is authorized to transact. For the purposes of
6.9this clause, gross income does not include income from nonrecurring, extraordinary items.
6.10(b) "Holding company" means any corporation registered under the Federal Bank
6.11Holding Company Act of 1956, as amended, or registered as a savings and loan holding
6.12company under the Federal National Housing Act, as amended, or a federal savings
6.13bank holding company. The commissioner is authorized to exclude any person from the
6.14application of paragraph (a), clause (9), if the person proves by clear and convincing
6.15evidence that the person's income-producing activity is not in substantial competition with
6.16any person described in paragraph (a), clauses (2) to (6), or (8).
6.17(c) "Regulated financial corporation" means an institution, the deposits or accounts
6.18of which are insured under the Federal Deposit Insurance Act or by the Federal Savings
6.19and Loan Insurance Corporation, any institution which is a member of a Federal Home
6.20Loan Bank, any other bank or thrift institution incorporated or organized under the laws of
6.21any state or any foreign country which is engaged in the business of receiving deposits,
6.22any corporation organized under the provisions of United States Code, title 12, sections
6.23611 to 631 (Edge Act Corporations), and any agency of a foreign depository as defined in
6.24United States Code, title 12, section 3101.
6.25(d) "Business of a financial institution" means:
6.26(1) the business that any corporation organized under the authority of the United
6.27States or organized under the laws of this state or any other state or country does or has
6.28authority to do which is substantially similar to the business which a corporation may be
6.29created to do under chapters 46 to 55 or any business which a corporation is authorized
6.30to do by those laws; or
6.31(2) the business that any corporation organized under the authority of the United
6.32States or organized under the laws of this state or any other state or country does or has
6.33authority to do if the corporation derives more than 50 percent of its gross income from
6.34lending activities (including discounting obligations) in substantial competition with the
6.35businesses described in clause (1). For purposes of this clause, the computation of the gross
6.36income of a corporation does not include income from nonrecurring, extraordinary items.
7.1EFFECTIVE DATE.This section is effective for taxable years beginning after
7.2December 31, 2014.

7.3    Sec. 7. Minnesota Statutes 2014, section 290.01, subdivision 7, is amended to read:
7.4    Subd. 7. Resident. (a) The term "resident" means any individual domiciled
7.5in Minnesota, except that an individual is not a "resident" for the period of time that
7.6the individual is a "qualified individual" as defined in section 911(d)(1) of the Internal
7.7Revenue Code, if the qualified individual notifies the county within three months of
7.8moving out of the country that homestead status be revoked for the Minnesota residence
7.9of the qualified individual, and the property is not classified as a homestead while the
7.10individual remains a qualified individual.
7.11(b) "Resident" also means any individual domiciled outside the state who maintains
7.12a place of abode in the state and spends in the aggregate more than one-half of the tax
7.13year in Minnesota, unless:
7.14(1) the individual or the spouse of the individual is in the armed forces of the United
7.15States; or
7.16(2) the individual is covered under the reciprocity provisions in section 290.081.
7.17For purposes of this subdivision, presence within the state for any part of a calendar
7.18day constitutes a day spent in the state. Individuals shall keep adequate records to
7.19substantiate the days spent outside the state.
7.20The term "abode" means a dwelling maintained by an individual, whether or not
7.21owned by the individual and whether or not occupied by the individual, and includes a
7.22dwelling place owned or leased by the individual's spouse.
7.23(c) In determining where an individual is domiciled, neither the commissioner nor
7.24any court shall consider:
7.25(1) charitable contributions made by an the individual within or without the state in
7.26determining if the individual is domiciled in Minnesota;
7.27(2) the location of the individual's attorney, certified public accountant, or financial
7.28advisor; or
7.29(3) the place of business of a financial institution at which the individual applies for
7.30any new type of credit or at which the individual opens or maintains any type of account.
7.31(d) For purposes of this subdivision, the following terms have the meanings given
7.32them:
7.33(1) "financial advisor" means an individual, financial institution, or other firm
7.34engaged in the business of providing services related to trust and estate administration;
7.35financial advice and budgeting; investment selection or allocation; or purchase of life,
8.1disability, long-term care, annuities, or similar insurance products; and includes certified
8.2financial planners, registered investment advisors, securities broker-dealers, associated
8.3persons and representatives of registered investment advisors and securities broker-dealers,
8.4agents licensed to sell life insurance or annuities, and similar regulated products; and
8.5(2) "financial institution" means a financial institution as that term is defined in
8.6section 47.015, subdivision 1, a state or nationally chartered credit union, and a registered
8.7broker-dealer under the Securities and Exchange Act of 1934.
8.8EFFECTIVE DATE.This section is effective for taxable years beginning after
8.9December 31, 2014.

8.10    Sec. 8. Minnesota Statutes 2014, section 290.01, is amended by adding a subdivision
8.11to read:
8.12    Subd. 19i. Accelerated recognition of certain installment sale gains. (a) For the
8.13purposes of this subdivision, the following definitions apply:
8.14(1) "realized" means realized as defined by section 1001(b) of the Internal Revenue
8.15Code;
8.16(2) "installment sale" means any installment sale under section 453 of the Internal
8.17Revenue Code, and any other sale which is reported utilizing a method of accounting
8.18authorized under subchapter E of the Internal Revenue Code, which allows taxpayers to
8.19delay reporting or recognition of a realized gain until a future year; and
8.20(3) "allocable amount" means the full amount to be apportioned to Minnesota under
8.21section 291.191, or the full amount to be assigned under section 290.17.
8.22(b) In the case of a nonresident individual or a person who becomes a nonresident
8.23individual during the tax year, net income includes the allocable amount realized upon a
8.24sale of the assets of, or the sale of any interest in, an S corporation or partnership which
8.25operated in Minnesota during the taxable year of sale, including any income or gain to be
8.26recognized in future years pursuant to an installment sale method of reporting under the
8.27Internal Revenue Code.
8.28(c) An individual who becomes a nonresident of Minnesota in any year after an
8.29installment sale is required to recognize the full amount of any income or gain not
8.30recognized in a prior year on the individual's final Minnesota resident tax return.
8.31(d) Notwithstanding paragraphs (b) and (c), taxpayers may elect to defer the
8.32recognition of installment sale gains by making an election under this paragraph. The
8.33election must be filed on a form prescribed by the commissioner and must be filed by
8.34the due date of the individual tax return, including any extension. Electing taxpayers
8.35are required to:
9.1(1) file Minnesota tax returns in all subsequent years when gains from the installment
9.2sale are recognized and reported to the Internal Revenue Service;
9.3(2) allocate gains to the state of Minnesota as though the gains were incurred in the
9.4year of sale under section 290.191 or 290.17; and
9.5(3) include all relevant federal tax documents reporting the installment sale with
9.6subsequent Minnesota tax returns.
9.7(e) Income or gain recognized for Minnesota purposes under paragraphs (b) and (c)
9.8and subjected to tax, is excluded from net income in future years.
9.9EFFECTIVE DATE.This section is effective for taxable years beginning after
9.10December 31, 2014.

9.11    Sec. 9. Minnesota Statutes 2014, section 290.01, subdivision 31, as amended by Laws
9.122015, chapter 1, section 3, is amended to read:
9.13    Subd. 31. Internal Revenue Code. Unless specifically defined otherwise, "Internal
9.14Revenue Code" means the Internal Revenue Code of 1986, as amended through December
9.1531, 2014 April 1, 2015. Internal Revenue Code also includes any uncodified provision in
9.16federal law that relates to provisions of the Internal Revenue Code that are incorporated
9.17into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1,
9.18subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as
9.19amended through March 18, 2010.
9.20EFFECTIVE DATE.This section is effective the day following final enactment,
9.21except the changes incorporated by federal changes are effective retroactively at the same
9.22time the changes were effective for federal purposes.

9.23    Sec. 10. Minnesota Statutes 2014, section 290.06, is amended by adding a subdivision
9.24to read:
9.25    Subd. 37. Refundable film production credit; appropriation. (a) A taxpayer
9.26is allowed a credit against the taxes due under this chapter equal to 25 percent of
9.27film production and postproduction expenditures made in Minnesota that are directly
9.28attributable to film production in Minnesota.
9.29(b) For purposes of this subdivision, "film" has the meaning given in section 116U.26.
9.30    (c) Expenditures that qualify for the credit under this subdivision must be
9.31"production costs" as that term is defined in section 116U.26 and must be subject to
9.32taxation in Minnesota.
10.1    (d) If the amount of the credit under this subdivision exceeds the taxpayer's tax
10.2liability under this chapter for the taxable year, the amount of the excess must be refunded
10.3to the taxpayer. The amount necessary to pay the refunds under this subdivision is
10.4appropriated annually from the general fund to the commissioner of revenue.
10.5EFFECTIVE DATE.This section is effective for taxable years beginning after
10.6December 31, 2016.

10.7    Sec. 11. Minnesota Statutes 2014, section 290.0671, subdivision 1, is amended to read:
10.8    Subdivision 1. Credit allowed. (a) An individual who is a resident of Minnesota is
10.9allowed a credit against the tax imposed by this chapter equal to a percentage of earned
10.10income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the
10.11Internal Revenue Code.
10.12(b) For individuals with no qualifying children, the credit equals 2.10 percent of the
10.13first $6,180 of earned income. The credit is reduced by 2.01 percent of earned income
10.14or adjusted gross income, whichever is greater, in excess of $8,130, but in no case is
10.15the credit less than zero.
10.16(c) For individuals with one qualifying child, the credit equals 9.35 percent of the
10.17first $11,120 of earned income. The credit is reduced by 6.02 percent of earned income
10.18or adjusted gross income, whichever is greater, in excess of $21,190, but in no case is
10.19the credit less than zero.
10.20(d) For individuals with two or more qualifying children, the credit equals 11 percent
10.21of the first $18,240 of earned income. The credit is reduced by 10.82 percent of earned
10.22income or adjusted gross income, whichever is greater, in excess of $25,130, but in no
10.23case is the credit less than zero.
10.24(e) For a nonresident or part-year resident, the credit must be allocated based on the
10.25percentage calculated under section 290.06, subdivision 2c, paragraph (e).
10.26(f) For a person who was a resident for the entire tax year and has earned income
10.27not subject to tax under this chapter, including income excluded under section 290.01,
10.28subdivision 19b
, clause (9), the credit must be allocated based on the ratio of federal
10.29adjusted gross income reduced by the earned income not subject to tax under this chapter
10.30over federal adjusted gross income. For purposes of this paragraph, the subtractions
10.31for military pay under section 290.01, subdivision 19b, clauses (10) and (11), are not
10.32considered "earned income not subject to tax under this chapter."
10.33For the purposes of this paragraph, the exclusion of combat pay under section 112
10.34of the Internal Revenue Code is not considered "earned income not subject to tax under
10.35this chapter."
11.1(g) For tax years beginning after December 31, 2007, and before December 31,
11.22010, and for tax years beginning after December 31, 2017, the $8,130 in paragraph (b),
11.3the $21,190 in paragraph (c), and the $25,130 in paragraph (d), after being adjusted for
11.4inflation under subdivision 7, are each increased by $3,000 for married taxpayers filing joint
11.5returns. For tax years beginning after December 31, 2008, the commissioner shall annually
11.6adjust the $3,000 by the percentage determined pursuant to the provisions of section 1(f)
11.7of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2007" shall be
11.8substituted for the word "1992." For 2009, the commissioner shall then determine the
11.9percent change from the 12 months ending on August 31, 2007, to the 12 months ending on
11.10August 31, 2008, and in each subsequent year, from the 12 months ending on August 31,
11.112007, to the 12 months ending on August 31 of the year preceding the taxable year. The
11.12earned income thresholds as adjusted for inflation must be rounded to the nearest $10. If the
11.13amount ends in $5, the amount is rounded up to the nearest $10. The determination of the
11.14commissioner under this subdivision is not a rule under the Administrative Procedure Act.
11.15(h)(1) For tax years beginning after December 31, 2012, and before January 1, 2014,
11.16the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph (d),
11.17after being adjusted for inflation under subdivision 7, are increased by $5,340 for married
11.18taxpayers filing joint returns; and (2) for tax years beginning after December 31, 2013, and
11.19before January 1, 2018, the $8,130 in paragraph (b), the $21,190 in paragraph (c), and the
11.20$25,130 in paragraph (d), after being adjusted for inflation under subdivision 7, are each
11.21increased by $5,000 for married taxpayers filing joint returns. For tax years beginning
11.22after December 31, 2010, and before January 1, 2012, and for tax years beginning after
11.23December 31, 2013, and before January 1, 2018, the commissioner shall annually adjust
11.24the $5,000 by the percentage determined pursuant to the provisions of section 1(f) of
11.25the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2008" shall be
11.26substituted for the word "1992." For 2011, the commissioner shall then determine the
11.27percent change from the 12 months ending on August 31, 2008, to the 12 months ending on
11.28August 31, 2010, and in each subsequent year, from the 12 months ending on August 31,
11.292008, to the 12 months ending on August 31 of the year preceding the taxable year. The
11.30earned income thresholds as adjusted for inflation must be rounded to the nearest $10. If the
11.31amount ends in $5, the amount is rounded up to the nearest $10. The determination of the
11.32commissioner under this subdivision is not a rule under the Administrative Procedure Act.
11.33(i) The commissioner shall construct tables showing the amount of the credit at
11.34various income levels and make them available to taxpayers. The tables shall follow
11.35the schedule contained in this subdivision, except that the commissioner may graduate
11.36the transition between income brackets.
12.1EFFECTIVE DATE.This section is effective for taxable years beginning after
12.2December 31, 2014.

12.3    Sec. 12. Minnesota Statutes 2014, section 290.0671, subdivision 6a, is amended to read:
12.4    Subd. 6a. TANF appropriation for working family credit expansion. (a) On
12.5an annual basis the commissioner of revenue, with the assistance of the commissioner
12.6of human services, shall calculate the value of the refundable portion of the Minnesota
12.7Working Family Credit provided under this section that qualifies for payment with funds
12.8from the federal Temporary Assistance for Needy Families (TANF) block grant. Of this
12.9total amount, the commissioner of revenue shall estimate the portion entailed by the
12.10expansion of the credit rates provided in Laws 2000, chapter 490, article 4, section 17,
12.11for individuals with qualifying children over the rates provided in Laws 1999, chapter
12.12243, article 2, section 12.
12.13(b) An amount sufficient to pay the refunds entailed by the expansion of the credit
12.14rates provided in Laws 2000, chapter 490, article 4, section 17, for individuals with
12.15qualifying children over the rates provided in Laws 1999, chapter 243, article 2, section
12.1612, as estimated in paragraph (a), is appropriated to the commissioner of human services
12.17from the federal Temporary Assistance for Needy Families (TANF) block grant funds, for
12.18transfer to the commissioner of revenue for deposit in the general fund.
12.19EFFECTIVE DATE.This section is effective only for transfers in fiscal year 2015.

12.20    Sec. 13. Minnesota Statutes 2014, section 290.0674, subdivision 1, is amended to read:
12.21    Subdivision 1. Credit allowed. An individual is allowed a credit against the
12.22tax imposed by this chapter in an amount equal to 75 percent of the amount paid for
12.23education-related expenses for a qualifying child in kindergarten preschool through grade
12.2412. For purposes of this section, "education-related expenses" means:
12.25(1) fees or tuition for instruction by an instructor under section 120A.22, subdivision
12.2610
, clause (1), (2), (3), (4), or (5), or a member of the Minnesota Music Teachers
12.27Association, and who is not a lineal ancestor or sibling of the dependent for instruction
12.28outside the regular school day or school year, including tutoring, driver's education
12.29offered as part of school curriculum, regardless of whether it is taken from a public or
12.30private entity or summer camps, in grade or age appropriate curricula that supplement
12.31curricula and instruction available during the regular school year, that assists a dependent
12.32to improve knowledge of core curriculum areas or to expand knowledge and skills under
12.33the required academic standards under section 120B.021, subdivision 1, and the elective
12.34standard under section 120B.022, subdivision 1, clause (2), and that do not include the
13.1teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such
13.2tenets, doctrines, or worship;
13.3(2) expenses for textbooks, including books and other instructional materials and
13.4equipment purchased or leased for use in preschool, elementary, and secondary schools
13.5in teaching only those subjects legally and commonly taught in public elementary and
13.6secondary schools in this state. "Textbooks" does not include instructional books and
13.7materials used in the teaching of religious tenets, doctrines, or worship, the purpose of
13.8which is to instill such tenets, doctrines, or worship, nor does it include books or materials
13.9for extracurricular activities including sporting events, musical or dramatic events, speech
13.10activities, driver's education, or similar programs;
13.11(3) a maximum expense of $200 per family for personal computer hardware,
13.12excluding single purpose processors, and educational software that assists a dependent to
13.13improve knowledge of core curriculum areas or to expand knowledge and skills under
13.14the required academic standards under section 120B.021, subdivision 1, and the elective
13.15standard under section 120B.022, subdivision 1, clause (2), purchased for use in the
13.16taxpayer's home and not used in a trade or business regardless of whether the computer is
13.17required by the dependent's school; and
13.18(4) the amount paid to others for transportation of a qualifying child attending an a
13.19preschool, elementary, or secondary school situated in Minnesota, North Dakota, South
13.20Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's
13.21compulsory attendance laws, which is not operated for profit, and which adheres to the
13.22provisions of the Civil Rights Act of 1964 and chapter 363A.
13.23For purposes of this section, "qualifying child" has the meaning given in section
13.2432(c)(3) of the Internal Revenue Code who is at least four years old when the expenses
13.25are incurred. "Preschool" means the Head Start program under section 119A.50 or a
13.26school district prekindergarten program.
13.27EFFECTIVE DATE.This section is effective for taxable years beginning after
13.28December 31, 2014.

13.29    Sec. 14. Minnesota Statutes 2014, section 290.0674, subdivision 2, is amended to read:
13.30    Subd. 2. Limitations. (a) For claimants with income not greater than $33,500
13.31$45,000, the maximum credit allowed for a family is $1,000 multiplied by the number
13.32of qualifying children in kindergarten preschool through grade 12 in the family. The
13.33maximum credit for families with one qualifying child in kindergarten preschool through
13.34grade 12 is reduced by $1 for each $4 of household income over $33,500 $45,000, and
13.35the maximum credit for families with two or more qualifying children in kindergarten
14.1through grade 12 is reduced by $2 for each $4 of household income over $33,500 $45,000,
14.2but in no case is the credit less than zero.
14.3For purposes of this section "income" has the meaning given in section 290.067,
14.4subdivision 2a
. In the case of a married claimant, a credit is not allowed unless a joint
14.5income tax return is filed.
14.6(b) For a nonresident or part-year resident, the credit determined under subdivision 1
14.7and the maximum credit amount in paragraph (a) must be allocated using the percentage
14.8calculated in section 290.06, subdivision 2c, paragraph (e).
14.9EFFECTIVE DATE.This section is effective for taxable years beginning after
14.10December 31, 2014.

14.11    Sec. 15. Minnesota Statutes 2014, section 290.068, subdivision 1, is amended to read:
14.12    Subdivision 1. Credit allowed. Subject to the requirements in subdivision 8, a
14.13corporation, partners in a partnership, or shareholders in a corporation treated as an "S"
14.14corporation under section 290.9725 are individual, trust, or estate is allowed a credit
14.15against the tax computed under this chapter for the taxable year equal to:
14.16    (a) ten percent of the first $2,000,000 of the excess (if any) of
14.17    (1) the qualified research expenses for the taxable year, over
14.18    (2) the base amount; and
14.19    (b) 2.5 percent on all of such excess expenses over $2,000,000.
14.20EFFECTIVE DATE.This section is effective for taxable years beginning after
14.21December 31, 2014.

14.22    Sec. 16. Minnesota Statutes 2014, section 290.068, subdivision 2, is amended to read:
14.23    Subd. 2. Definitions. For purposes of this section, the following terms have the
14.24meanings given.
14.25    (a) "Qualified research expenses" means (i) qualified research expenses and basic
14.26research payments as defined in section 41(b) and (e) of the Internal Revenue Code, except
14.27it does not include expenses incurred for qualified research or basic research conducted
14.28outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue
14.29Code; and (ii) contributions to a nonprofit corporation established and operated pursuant
14.30to the provisions of chapter 317A for the purpose of promoting the establishment and
14.31expansion of business in this state, provided the contributions are invested by the nonprofit
14.32corporation for the purpose of providing funds for small, technologically innovative
14.33enterprises in Minnesota during the early stages of their development.
15.1    (b) "Qualified research" means qualified research as defined in section 41(d) of the
15.2Internal Revenue Code, except that the term does not include qualified research conducted
15.3outside the state of Minnesota.
15.4    (c) "Base amount" means base amount as defined in section 41(c) of the Internal
15.5Revenue Code, except that the average annual gross receipts must be calculated using
15.6Minnesota sales or receipts under section 290.191 and the definitions contained in clauses
15.7(a) and (b) shall apply. If there are inadequate records or the records are unavailable to
15.8compute or verify the base percentage, a fixed base percentage of 16 percent must be used.
15.9EFFECTIVE DATE.This section is effective for taxable years beginning after
15.10December 31, 2014.

15.11    Sec. 17. Minnesota Statutes 2014, section 290.068, subdivision 3, is amended to read:
15.12    Subd. 3. Limitation; carryover. (a) Except as provided in subdivision 6a,
15.13paragraph (b), the credit for a taxable year beginning before January 1, 2010, and after
15.14December 31, 2012, shall not exceed the liability for tax. "Liability for tax" for purposes
15.15of this section means the sum of the tax imposed under section 290.06, subdivisions 1 and
15.162c
, for the taxable year reduced by the sum of the nonrefundable credits allowed under
15.17this chapter, on all of the entities required to be included on the combined report of the
15.18unitary business. If the amount of the credit allowed exceeds the liability for tax of the
15.19taxpayer, but is allowed as a result of the liability for tax of other members of the unitary
15.20group for the taxable year, the taxpayer must allocate the excess as a research credit
15.21to another member of the unitary group.
15.22    (b) (1) In the case of a corporation which is a partner in a partnership, the credit
15.23allowed for the taxable year shall not exceed the lesser of the amount determined under
15.24paragraph (a) for the taxable year or an amount (separately computed with respect to
15.25the corporation's interest in the trade or business or entity) equal to the amount of tax
15.26attributable to that portion of taxable income which is allocable or apportionable to the
15.27corporation's interest in the trade or business or entity; and (2) in the case of an individual
15.28who is a sole proprietor, the credit allowed for the taxable year shall not exceed the amount
15.29of tax attributable to the individual's taxable income from the sole proprietorship.
15.30    (c) If the amount of the credit determined under this section for any taxable year
15.31exceeds the limitation under paragraph (a) or (b), including amounts allowed as a refund
15.32under subdivision 6a, paragraph (b), or allocated to other members of the unitary group,
15.33the excess shall be a research credit carryover to each of the 15 succeeding taxable years.
15.34The entire amount of the excess unused credit for the taxable year shall be carried first
15.35to the earliest of the taxable years to which the credit may be carried and then to each
16.1successive year to which the credit may be carried. The amount of the unused credit
16.2which may be added under this clause shall not exceed the taxpayer's liability for tax
16.3less the research credit for the taxable year.
16.4EFFECTIVE DATE.This section is effective for taxable years beginning after
16.5December 31, 2014.

16.6    Sec. 18. Minnesota Statutes 2014, section 290.068, subdivision 6a, is amended to read:
16.7    Subd. 6a. Credit to be refundable. (a) If the amount of credit allowed in this
16.8section for qualified research expenses incurred in taxable years beginning after December
16.931, 2009, and before January 1, 2013, exceeds the taxpayer's tax liability under this
16.10chapter, the commissioner shall refund the excess amount. The credit allowed for qualified
16.11research expenses incurred in taxable years beginning after December 31, 2009, and before
16.12January 1, 2013, must be used before any research credit earned under subdivision 3.
16.13(b) If the first $15,000 of the credit allowed in this section for qualified research
16.14expenses incurred in taxable years beginning after December 31, 2014, exceeds the
16.15taxpayer's tax liability under this chapter, the commissioner shall refund the excess
16.16amount. The $15,000 limit must be applied at the corporation, partnership, or other entity
16.17level, including sole proprietorships. The credit allowed for qualified research expenses
16.18incurred in taxable years beginning before January 1, 2015, must be used before any
16.19research credit earned under subdivision 3.
16.20EFFECTIVE DATE.This section is effective for taxable years beginning after
16.21December 31, 2014.

16.22    Sec. 19. Minnesota Statutes 2014, section 290.068, is amended by adding a subdivision
16.23to read:
16.24    Subd. 8. Application and certification requirement for sole proprietors. (a) A
16.25taxpayer who is a sole proprietor claiming a credit under this section must submit an
16.26application to the commissioner for determination that the expenses for which the credit is
16.27claimed are qualified research expenses. The application must be submitted by September
16.2815 of the calendar year following the taxable year in which the qualified research
16.29expenses were incurred. The application must be in a form and manner prescribed by the
16.30commissioner and must contain information sufficient to verify that the expenses for
16.31which the credit is claimed under this section are qualified research expenses.
16.32(b) The commissioner must notify the sole proprietor of the determination of the
16.33application under paragraph (a) no later than 60 days after the application is received.
17.1(c) Upon approving an application for credit under paragraph (a), the commissioner
17.2must issue a credit certificate to the sole proprietor that verifies eligibility for the credit
17.3and states the amount of credit and the taxable year to which the credit applies.
17.4(d) The sole proprietor must claim the credit under this section in the return for the
17.5taxable year immediately following the taxable year to which the credit applies. The
17.6return must contain a copy of the credit certificate issued under paragraph (c).
17.7(e) A credit must not be issued under this section unless the commissioner has
17.8received the certification required under paragraph (c).
17.9EFFECTIVE DATE.This section is effective for taxable years beginning after
17.10December 31, 2014.

17.11    Sec. 20. [290.0693] MINNESOTA COLLEGE SAVINGS PLAN CREDIT.
17.12    Subdivision 1. Definitions. For purposes of this section, the terms "Minnesota
17.13college savings plan," "account," "nonqualified distribution," and "plan administrator"
17.14have the meanings given them in chapter 136G.
17.15    Subd. 2. Credit allowed. (a) A credit of up to $500 is allowed against the tax
17.16imposed by this chapter, subject to the limitations in paragraph (b).
17.17(b) The credit allowed must be calculated by applying the following rates to the
17.18amount contributed to a Minnesota college savings plan, as established in chapter 136G,
17.19in a taxable year:
17.20(1) 200 percent for individual filers and married couples filing a joint return who
17.21have federal adjusted gross income of not more than 150 percent of the federal poverty
17.22guideline for a household size of four;
17.23(2) 100 percent for individual filers and married couples filing a joint return who
17.24have federal adjusted gross income over 150 percent, but not more than 200 percent of
17.25the federal poverty guideline for a household size of four;
17.26(3) 50 percent for individual filers who have federal adjusted gross income over
17.27200 percent of the federal poverty guideline for a household size of four, but not more
17.28than $80,000; and
17.29(4) 50 percent for married couples filing a joint return who have federal adjusted
17.30gross income over 200 percent of the federal poverty guideline for a household size of
17.31four, except that the credit is reduced by $1 for every $160 over $80,000 in federal
17.32adjusted gross income.
17.33(c) For a nonresident or a part-year resident, the credit under this subdivision
17.34must be allocated based on the percentage calculated under section 290.06, subdivision
17.352c, paragraph (e).
18.1(d) The $80,000 in paragraph (b), clauses (3) and (4), used to calculate the credit and
18.2phaseout must be adjusted for inflation. The commissioner shall adjust by the percentage
18.3determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except
18.4that in section 1(f)(3)(B) the word "2014" shall be substituted for the word "1992." For
18.52016, the commissioner shall then determine the percent change from the 12 months ending
18.6on August 31, 2014, to the 12 months ending on August 31, 2015, and in each subsequent
18.7year, from the 12 months ending on August 31, 2014, to the 12 months ending on August
18.831 of the year preceding the taxable year. The earned income thresholds as adjusted for
18.9inflation must be rounded to the nearest $10 amount. If the amount ends in $5, the amount
18.10is rounded up to the nearest $10 amount. The determination of the commissioner under this
18.11subdivision is not a rule under the Administrative Procedure Act including section 14.386.
18.12(e) The amount used to claim the credit under this section must be excluded from
18.13any amount subtracted from federal taxable income under section 290.01, subdivision
18.1419b, clause (22).
18.15    Subd. 3. Credit transfer. (a) The credit allowed under this section must be
18.16calculated after applying all other credits to the taxpayer's tax liability. If the amount of
18.17credit that the taxpayer is eligible to receive under this section exceeds the taxpayer's tax
18.18liability after applying all other credits, the commissioner shall transfer the excess amount
18.19pursuant to the requirements of paragraph (b).
18.20(b) The commissioner shall transfer the excess amount calculated under paragraph
18.21(a) to the plan administrator to be deposited to the taxpayer's Minnesota college savings
18.22plan account. If the taxpayer made contributions to more than one account, the credit
18.23amount must be allocated based on the contributions to each account as a percentage
18.24of the total contributions to all accounts.
18.25    Subd. 4. Verification of contribution amounts. The commissioner of the Office of
18.26Higher Education must provide sufficient information to the commissioner of revenue to
18.27verify the taxpayer's annual contribution amounts to an account.
18.28    Subd. 5. Recapture of credit. In the case of a nonqualified distribution, the
18.29taxpayer is liable to the commissioner for the lesser of: ten percent of the amount of the
18.30nonqualified distribution, or the sum of credits received under this section for all years.
18.31    Subd. 6. Appropriation. An amount sufficient to pay the refunds required by this
18.32section is appropriated to the commissioner from the general fund.
18.33EFFECTIVE DATE.This section is effective for taxable years beginning after
18.34December 31, 2015.

18.35    Sec. 21. [290.0694] VETERANS JOBS TAX CREDIT.
19.1    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
19.2have the meanings given.
19.3(b)(1) "Qualified employee" means an employee as defined in section 290.92,
19.4subdivision 1, who meets the following criteria:
19.5(i) the employee is a resident of Minnesota on the date of hire;
19.6(ii) the employee is paid wages as defined in section 290.92, subdivision 1; and
19.7(iii) the employee's wages are attributable to Minnesota under section 290.191,
19.8subdivision 12;
19.9(2) "Qualified employee" does not include:
19.10(i) any employee who bears any of the relationships to the employer described in
19.11subparagraphs (A) to (G) of section 152(d)(2) of the Internal Revenue Code;
19.12(ii) if the employer is a corporation, an employee who owns, directly or indirectly,
19.13more than 50 percent in value of the outstanding stock of the corporation, or if the
19.14employer is an entity other than a corporation, an employee who owns, directly or
19.15indirectly, more than 50 percent of the capital and profits interests in the entity, as
19.16determined with the application of section 267(c) of the Internal Revenue Code; or
19.17(iii) if the employer is an estate or trust, any employee who is a fiduciary of the estate
19.18or trust, or is an individual who bears any of the relationships described in subparagraphs
19.19(A) to (G) of section 152(d)(2) of the Internal Revenue Code to a grantor, beneficiary,
19.20or fiduciary of the estate or trust.
19.21(c) "Qualified employer" means an employer that hired an unemployed veteran
19.22as a qualified employee.
19.23(d) "Unemployed veteran" is a veteran who:
19.24(1) received unemployment compensation under state or federal law at any time
19.25during the one-year period prior to the date of hire; and
19.26(2) was unemployed on the date of hire.
19.27(e) "Veteran" has the meaning given in section 197.447.
19.28(f) "Date of hire" means the day that the qualified employee begins performing
19.29services as an employee of the qualified employer.
19.30    Subd. 2. Credit for hiring unemployed veterans. A qualified employer who
19.31is required to file a return under section 289A.08, subdivision 1, 2, or 3, and hires an
19.32unemployed veteran as a qualified employee, is allowed a credit against the tax imposed
19.33by this chapter equal to ten percent of the wages paid to the qualified employee during the
19.34taxable year, but the amount of the credit shall not exceed $2,500. The credit is limited to
19.35the liability for tax under this chapter for the taxable year.
20.1    Subd. 3. Flow-through entities. Credits granted to a partnership, limited liability
20.2company taxed as a partnership, S corporation, or multiple owners of a business are passed
20.3through to the partners, members, shareholders, or owners, respectively, pro rata to each
20.4partner, member, shareholder, or owner based on their share of the entity's assets or as
20.5specially allocated in their organizational documents, as of the last day of the taxable year.
20.6EFFECTIVE DATE.This section is effective for taxable years beginning after
20.7December 31, 2015.

20.8    Sec. 22. [290.0695] EMPLOYEE CREDIT FOR CERTAIN
20.9EMPLOYER-PROVIDED FITNESS FACILITY EXPENSES.
20.10    Subdivision 1. Credit allowed. (a) A taxpayer is allowed a credit against the tax
20.11imposed by this chapter, subject to the requirements of this section. For married taxpayers
20.12filing a joint return, the maximum credit is $60. For all other taxpayers, the maximum
20.13credit is $30.
20.14(b) The credit is allowed to an employee whose employer either:
20.15(1) pays a portion of any fees, dues, or membership expenses on behalf of the
20.16employee to a fitness facility; or
20.17(2) reimburses the employee for direct payment of fees, dues, or membership
20.18expenses made by the employee to a fitness facility.
20.19(c) The credit under this section is only allowed to individuals who use the fitness
20.20facility for the preservation, maintenance, encouragement, or development of physical
20.21fitness an average of four days per month, but if the fitness facility is used fewer than three
20.22days per month, the credit is not allowed. The commissioner shall prescribe the form and
20.23manner in which eligibility for the credit is determined.
20.24(d) For purposes of this section, "fitness facility" means a facility located in the state:
20.25(1) that provides instruction in a program of physical exercise; offers facilities for
20.26the preservation, maintenance, encouragement, or development of physical fitness; or is
20.27the site of such a program of a state or local government;
20.28(2) that is not a private club owned and operated by its members;
20.29(3) that does not offer golf, hunting, sailing, or horseback riding facilities;
20.30(4) whose fitness facility is not incidental to its overall function and purpose;
20.31(5) that is compliant with antidiscrimination laws under chapter 363A and applicable
20.32federal antidiscrimination laws; and
20.33(6) is located off the employer's premises.
20.34    Subd. 2. Limitation. The credit under this section applies only if the employer's
20.35payment of fees, dues, or membership expenses to a fitness facility is available on
21.1substantially the same terms to each member of a group of employees defined under a
21.2reasonable classification by the employer, but no classification may include only highly
21.3compensated employees, as defined under section 414(q) of the Internal Revenue Code, or
21.4any other group that includes only executives, directors, or other managerial employees.
21.5    Subd. 3. Nonresidents and part-year residents; flow-through entities. For a
21.6nonresident or part-year resident, the credit must be allocated based on the percentage
21.7calculated under section 290.06, subdivision 2c, paragraph (e).
21.8EFFECTIVE DATE.This section is effective for taxable years beginning after
21.9December 31, 2014.

21.10    Sec. 23. Minnesota Statutes 2014, section 290.17, subdivision 4, is amended to read:
21.11    Subd. 4. Unitary business principle. (a) If a trade or business conducted wholly
21.12within this state or partly within and partly without this state is part of a unitary business,
21.13the entire income of the unitary business is subject to apportionment pursuant to section
21.14290.191 . Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary
21.15business is considered to be derived from any particular source and none may be allocated
21.16to a particular place except as provided by the applicable apportionment formula. The
21.17provisions of this subdivision do not apply to business income subject to subdivision 5,
21.18income of an insurance company, or income of an investment company determined under
21.19section 290.36.
21.20(b) The term "unitary business" means business activities or operations which
21.21result in a flow of value between them. The term may be applied within a single legal
21.22entity or between multiple entities and without regard to whether each entity is a sole
21.23proprietorship, a corporation, a partnership or a trust.
21.24(c) Unity is presumed whenever there is unity of ownership, operation, and use,
21.25evidenced by centralized management or executive force, centralized purchasing,
21.26advertising, accounting, or other controlled interaction, but the absence of these
21.27centralized activities will not necessarily evidence a nonunitary business. Unity is also
21.28presumed when business activities or operations are of mutual benefit, dependent upon or
21.29contributory to one another, either individually or as a group.
21.30(d) Where a business operation conducted in Minnesota is owned by a business
21.31entity that carries on business activity outside the state different in kind from that
21.32conducted within this state, and the other business is conducted entirely outside the state, it
21.33is presumed that the two business operations are unitary in nature, interrelated, connected,
21.34and interdependent unless it can be shown to the contrary.
22.1(e) Unity of ownership does not exist when two or more corporations are involved
22.2unless more than 50 percent of the voting stock of each corporation is directly or indirectly
22.3owned by a common owner or by common owners, either corporate or noncorporate, or
22.4by one or more of the member corporations of the group. For this purpose, the term
22.5"voting stock" shall include membership interests of mutual insurance holding companies
22.6formed under section 66A.40.
22.7(f) The net income and apportionment factors under section 290.191 or 290.20 of
22.8foreign corporations and other foreign entities which are part of a unitary business shall
22.9not be included in the net income or the apportionment factors of the unitary business;
22.10except that the income and apportionment factors of a foreign entity, other than an entity
22.11treated as a C corporation for federal income tax purposes, that are included in the federal
22.12taxable income, as defined in section 63 of the Internal Revenue Code as amended through
22.13the date named in section 290.01, subdivision 19, of a domestic corporation, domestic
22.14entity, or individual must be included in determining net income and the factors to be used
22.15in the apportionment of net income pursuant to section 290.191 or 290.20. A foreign
22.16corporation or other foreign entity which is not included on a combined report and which
22.17is required to file a return under this chapter shall file on a separate return basis.
22.18(g) For purposes of determining the net income of a unitary business and the factors
22.19to be used in the apportionment of net income pursuant to section 290.191 or 290.20, there
22.20must be included only the income and apportionment factors of domestic corporations
22.21or other domestic entities that are determined to be part of the unitary business pursuant
22.22to this subdivision, notwithstanding that foreign corporations or other foreign entities
22.23might be included in the unitary business; except that the income and apportionment
22.24factors of a foreign entity, other than an entity treated as a C corporation for federal
22.25income tax purposes, that is included in the federal taxable income, as defined in section
22.2663 of the Internal Revenue Code as amended through the date named in section 290.01,
22.27subdivision 19
, of a domestic corporation, domestic entity, or individual must be included
22.28in determining net income and the factors to be used in the apportionment of net income
22.29pursuant to section 290.191 or 290.20.
22.30(h) Each corporation or other entity, except a sole proprietorship, that is part of a
22.31unitary business must file combined reports as the commissioner determines. On the
22.32reports, all intercompany transactions between entities included pursuant to paragraph
22.33(g) must be eliminated and the entire net income of the unitary business determined in
22.34accordance with this subdivision is apportioned among the entities by using each entity's
22.35Minnesota factors for apportionment purposes in the numerators of the apportionment
22.36formula and the total factors for apportionment purposes of all entities included pursuant
23.1to paragraph (g) in the denominators of the apportionment formula. Except as otherwise
23.2provided by paragraph (f), all sales of the unitary business made within this state pursuant
23.3to section 290.191 or 290.20 must be included on the combined report of a corporation or
23.4other entity that is a member of the unitary business and is subject to the jurisdiction of
23.5this state to impose tax under this chapter.
23.6(i) If a corporation has been divested from a unitary business and is included in a
23.7combined report for a fractional part of the common accounting period of the combined
23.8report:
23.9(1) its income includable in the combined report is its income incurred for that part
23.10of the year determined by proration or separate accounting; and
23.11(2) its sales, property, and payroll included in the apportionment formula must
23.12be prorated or accounted for separately.
23.13(j) For purposes of this subdivision, "insurance company" means any company that is:
23.14(1) licensed to engage in the business of insurance in Minnesota pursuant to chapter
23.1560A; or
23.16(2) domiciled and licensed to engage in the business of insurance in another state
23.17or country that imposes retaliatory taxes, and that does not grant, on a reciprocal basis,
23.18exemption from such retaliatory taxes to insurance companies or their agents domiciled
23.19in Minnesota.
23.20(k) For the purposes of this subdivision, "retaliatory taxes" means taxes imposed on
23.21insurance companies organized in another state or country that result from the fact that an
23.22insurance company organized in the taxing jurisdiction and doing business in the other
23.23jurisdiction is subject to taxes, fines, deposits, penalties, licenses, or fees in an amount
23.24exceeding that imposed by the taxing jurisdiction upon an insurance company organized in
23.25the other state or country and doing business to the same extent in the taxing jurisdiction.
23.26EFFECTIVE DATE.This section is effective for taxable years beginning after
23.27December 31, 2014.

23.28    Sec. 24. Minnesota Statutes 2014, section 290.191, subdivision 5, is amended to read:
23.29    Subd. 5. Determination of sales factor. For purposes of this section, the following
23.30rules apply in determining the sales factor.
23.31    (a) The sales factor includes all sales, gross earnings, or receipts received in the
23.32ordinary course of the business, except that the following types of income are not included
23.33in the sales factor:
23.34    (1) interest;
23.35    (2) dividends;
24.1    (3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;
24.2    (4) sales of property used in the trade or business, except sales of leased property of
24.3a type which is regularly sold as well as leased; and
24.4    (5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue
24.5Code or sales of stock.; and
24.6    (6) sales of derivatives including, but not limited to, swaps, options, futures, and
24.7forwards.
24.8    (b) Sales of tangible personal property are made within this state if the property is
24.9received by a purchaser at a point within this state, regardless of the f.o.b. point, other
24.10conditions of the sale, or the ultimate destination of the property.
24.11    (c) Tangible personal property delivered to a common or contract carrier or foreign
24.12vessel for delivery to a purchaser in another state or nation is a sale in that state or nation,
24.13regardless of f.o.b. point or other conditions of the sale.
24.14    (d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine,
24.15fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is
24.16licensed by a state or political subdivision to resell this property only within the state of
24.17ultimate destination, the sale is made in that state.
24.18    (e) Sales made by or through a corporation that is qualified as a domestic
24.19international sales corporation under section 992 of the Internal Revenue Code are not
24.20considered to have been made within this state.
24.21    (f) Sales, rents, royalties, and other income in connection with real property is
24.22attributed to the state in which the property is located.
24.23    (g) Receipts from the lease or rental of tangible personal property, including finance
24.24leases and true leases, must be attributed to this state if the property is located in this
24.25state and to other states if the property is not located in this state. Receipts from the
24.26lease or rental of moving property including, but not limited to, motor vehicles, rolling
24.27stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts
24.28factor to the extent that the property is used in this state. The extent of the use of moving
24.29property is determined as follows:
24.30    (1) A motor vehicle is used wholly in the state in which it is registered.
24.31    (2) The extent that rolling stock is used in this state is determined by multiplying
24.32the receipts from the lease or rental of the rolling stock by a fraction, the numerator of
24.33which is the miles traveled within this state by the leased or rented rolling stock and the
24.34denominator of which is the total miles traveled by the leased or rented rolling stock.
24.35    (3) The extent that an aircraft is used in this state is determined by multiplying the
24.36receipts from the lease or rental of the aircraft by a fraction, the numerator of which is
25.1the number of landings of the aircraft in this state and the denominator of which is the
25.2total number of landings of the aircraft.
25.3    (4) The extent that a vessel, mobile equipment, or other mobile property is used in
25.4the state is determined by multiplying the receipts from the lease or rental of the property
25.5by a fraction, the numerator of which is the number of days during the taxable year the
25.6property was in this state and the denominator of which is the total days in the taxable year.
25.7    (h) Royalties and other income received for the use of or for the privilege of using
25.8intangible property, including patents, know-how, formulas, designs, processes, patterns,
25.9copyrights, trade names, service names, franchises, licenses, contracts, customer lists, or
25.10similar items, must be attributed to the state in which the property is used by the purchaser.
25.11If the property is used in more than one state, the royalties or other income must be
25.12apportioned to this state pro rata according to the portion of use in this state. If the portion
25.13of use in this state cannot be determined, the royalties or other income must be excluded
25.14from both the numerator and the denominator. Intangible property is used in this state if
25.15the purchaser uses the intangible property or the rights therein in the regular course of its
25.16business operations in this state, regardless of the location of the purchaser's customers.
25.17    (i) Sales of intangible property are made within the state in which the property is
25.18used by the purchaser. If the property is used in more than one state, the sales must be
25.19apportioned to this state pro rata according to the portion of use in this state. If the
25.20portion of use in this state cannot be determined, the sale must be excluded from both the
25.21numerator and the denominator of the sales factor. Intangible property is used in this
25.22state if the purchaser used the intangible property in the regular course of its business
25.23operations in this state.
25.24    (j) Receipts from the performance of services must be attributed to the state where
25.25the services are received. For the purposes of this section, receipts from the performance
25.26of services provided to a corporation, partnership, or trust may only be attributed to a state
25.27where it has a fixed place of doing business. If the state where the services are received is
25.28not readily determinable or is a state where the corporation, partnership, or trust receiving
25.29the service does not have a fixed place of doing business, the services shall be deemed
25.30to be received at the location of the office of the customer from which the services were
25.31ordered in the regular course of the customer's trade or business. If the ordering office
25.32cannot be determined, the services shall be deemed to be received at the office of the
25.33customer to which the services are billed.
25.34    (k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts
25.35from management, distribution, or administrative services performed by a corporation
25.36or trust for a fund of a corporation or trust regulated under United States Code, title 15,
26.1sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of
26.2the fund resides. Under this paragraph, receipts for services attributed to shareholders are
26.3determined on the basis of the ratio of: (1) the average of the outstanding shares in the
26.4fund owned by shareholders residing within Minnesota at the beginning and end of each
26.5year; and (2) the average of the total number of outstanding shares in the fund at the
26.6beginning and end of each year. Residence of the shareholder, in the case of an individual,
26.7is determined by the mailing address furnished by the shareholder to the fund. Residence
26.8of the shareholder, when the shares are held by an insurance company as a depositor for
26.9the insurance company policyholders, is the mailing address of the policyholders. In
26.10the case of an insurance company holding the shares as a depositor for the insurance
26.11company policyholders, if the mailing address of the policyholders cannot be determined
26.12by the taxpayer, the receipts must be excluded from both the numerator and denominator.
26.13Residence of other shareholders is the mailing address of the shareholder.
26.14EFFECTIVE DATE.This section is effective for taxable years beginning after
26.15December 31, 2014.

26.16    Sec. 25. Minnesota Statutes 2014, section 290.21, subdivision 4, is amended to read:
26.17    Subd. 4. Dividends received from another corporation. (a)(1) Eighty percent
26.18of dividends received by a corporation during the taxable year from another corporation,
26.19in which the recipient owns 20 percent or more of the stock, by vote and value, not
26.20including stock described in section 1504(a)(4) of the Internal Revenue Code when the
26.21corporate stock with respect to which dividends are paid does not constitute the stock in
26.22trade of the taxpayer or would not be included in the inventory of the taxpayer, or does not
26.23constitute property held by the taxpayer primarily for sale to customers in the ordinary
26.24course of the taxpayer's trade or business, or when the trade or business of the taxpayer
26.25does not consist principally of the holding of the stocks and the collection of the income
26.26and gains therefrom; and
26.27    (2)(i) the remaining 20 percent of dividends if the dividends received are the stock in
26.28an affiliated company transferred in an overall plan of reorganization and the dividend
26.29is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as
26.30amended through December 31, 1989;
26.31    (ii) the remaining 20 percent of dividends if the dividends are received from a
26.32corporation which is subject to tax under section 290.36 and which is a member of an
26.33affiliated group of corporations as defined by the Internal Revenue Code and the dividend
26.34is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as
27.1amended through December 31, 1989, or is deducted under an election under section
27.2243(b) of the Internal Revenue Code; or
27.3    (iii) the remaining 20 percent of the dividends if the dividends are received from a
27.4property and casualty insurer as defined under section 60A.60, subdivision 8, which is a
27.5member of an affiliated group of corporations as defined by the Internal Revenue Code
27.6and either: (A) the dividend is eliminated in consolidation under Treasury Regulation
27.71.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted
27.8under an election under section 243(b) of the Internal Revenue Code.
27.9    (b) Seventy percent of dividends received by a corporation during the taxable year
27.10from another corporation in which the recipient owns less than 20 percent of the stock,
27.11by vote or value, not including stock described in section 1504(a)(4) of the Internal
27.12Revenue Code when the corporate stock with respect to which dividends are paid does not
27.13constitute the stock in trade of the taxpayer, or does not constitute property held by the
27.14taxpayer primarily for sale to customers in the ordinary course of the taxpayer's trade or
27.15business, or when the trade or business of the taxpayer does not consist principally of the
27.16holding of the stocks and the collection of income and gain therefrom.
27.17    (c) The dividend deduction provided in this subdivision shall be allowed only with
27.18respect to dividends that are included in a corporation's Minnesota taxable net income
27.19for the taxable year.
27.20    The dividend deduction provided in this subdivision does not apply to a dividend
27.21from a corporation which, for the taxable year of the corporation in which the distribution
27.22is made or for the next preceding taxable year of the corporation, is a corporation exempt
27.23from tax under section 501 of the Internal Revenue Code.
27.24The dividend deduction provided in this subdivision does not apply to a dividend
27.25received from a real estate investment trust as defined in section 856 of the Internal
27.26Revenue Code.
27.27    The dividend deduction provided in this subdivision applies to the amount of
27.28regulated investment company dividends only to the extent determined under section
27.29854(b) of the Internal Revenue Code.
27.30    The dividend deduction provided in this subdivision shall not be allowed with
27.31respect to any dividend for which a deduction is not allowed under the provisions of
27.32section 246(c) or 246A of the Internal Revenue Code.
27.33    (d) If dividends received by a corporation that does not have nexus with Minnesota
27.34under the provisions of Public Law 86-272 are included as income on the return of
27.35an affiliated corporation permitted or required to file a combined report under section
27.36290.17, subdivision 4 , or 290.34, subdivision 2, then for purposes of this subdivision the
28.1determination as to whether the trade or business of the corporation consists principally
28.2of the holding of stocks and the collection of income and gains therefrom shall be made
28.3with reference to the trade or business of the affiliated corporation having a nexus with
28.4Minnesota.
28.5    (e) The deduction provided by this subdivision does not apply if the dividends are
28.6paid by a FSC as defined in section 922 of the Internal Revenue Code.
28.7    (f) If one or more of the members of the unitary group whose income is included on
28.8the combined report received a dividend, the deduction under this subdivision for each
28.9member of the unitary business required to file a return under this chapter is the product
28.10of: (1) 100 percent of the dividends received by members of the group; (2) the percentage
28.11allowed pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's business
28.12income apportionable to this state for the taxable year under section 290.191 or 290.20.
28.13EFFECTIVE DATE.This section is effective for taxable years beginning after
28.14December 31, 2014.

28.15    Sec. 26. Minnesota Statutes 2014, section 290A.03, subdivision 15, as amended by
28.16Laws 2015, chapter 1, section 4, is amended to read:
28.17    Subd. 15. Internal Revenue Code. "Internal Revenue Code" means the Internal
28.18Revenue Code of 1986, as amended through December 31, 2014 April 1, 2015.
28.19EFFECTIVE DATE.This section is effective for property tax refunds based on
28.20property taxes payable after December 31, 2015, and rent paid after December 31, 2014.

28.21    Sec. 27. Minnesota Statutes 2014, section 291.005, subdivision 1, is amended to read:
28.22    Subdivision 1. Scope. Unless the context otherwise clearly requires, the following
28.23terms used in this chapter shall have the following meanings:
28.24    (1) "Commissioner" means the commissioner of revenue or any person to whom the
28.25commissioner has delegated functions under this chapter.
28.26    (2) "Federal gross estate" means the gross estate of a decedent as required to be valued
28.27and otherwise determined for federal estate tax purposes under the Internal Revenue Code,
28.28increased by the value of any property in which the decedent had a qualifying income
28.29interest for life and for which an election was made under section 291.03, subdivision 1d,
28.30for Minnesota estate tax purposes, but was not made for federal estate tax purposes.
28.31    (3) "Internal Revenue Code" means the United States Internal Revenue Code of
28.321986, as amended through March 26, 2014.
29.1    (4) "Minnesota gross estate" means the federal gross estate of a decedent after
29.2(a) excluding therefrom any property included in the estate which has its situs outside
29.3Minnesota, and (b) including any property omitted from the federal gross estate which
29.4is includable in the estate, has its situs in Minnesota, and was not disclosed to federal
29.5taxing authorities.
29.6    (5) "Nonresident decedent" means an individual whose domicile at the time of
29.7death was not in Minnesota.
29.8    (6) "Personal representative" means the executor, administrator or other person
29.9appointed by the court to administer and dispose of the property of the decedent. If there
29.10is no executor, administrator or other person appointed, qualified, and acting within this
29.11state, then any person in actual or constructive possession of any property having a situs in
29.12this state which is included in the federal gross estate of the decedent shall be deemed
29.13to be a personal representative to the extent of the property and the Minnesota estate tax
29.14due with respect to the property.
29.15    (7) "Resident decedent" means an individual whose domicile at the time of death
29.16was in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and
29.17(d), apply to determinations of domicile under this chapter.
29.18    (8) "Situs of property" means, with respect to:
29.19    (i) real property, the state or country in which it is located;
29.20    (ii) tangible personal property, the state or country in which it was normally kept
29.21or located at the time of the decedent's death or for a gift of tangible personal property
29.22within three years of death, the state or country in which it was normally kept or located
29.23when the gift was executed;
29.24    (iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
29.25Code, owned by a nonresident decedent and that is normally kept or located in this state
29.26because it is on loan to an organization, qualifying as exempt from taxation under section
29.27501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is
29.28deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
29.29    (iv) intangible personal property, the state or country in which the decedent was
29.30domiciled at death or for a gift of intangible personal property within three years of death,
29.31the state or country in which the decedent was domiciled when the gift was executed.
29.32    For a nonresident decedent with an ownership interest in a pass-through entity with
29.33assets that include real or tangible personal property, situs of the real or tangible personal
29.34property, including qualified works of art, is determined as if the pass-through entity does
29.35not exist and the real or tangible personal property is personally owned by the decedent.
29.36If the pass-through entity is owned by a person or persons in addition to the decedent,
30.1ownership of the property is attributed to the decedent in proportion to the decedent's
30.2capital ownership share of the pass-through entity.
30.3(9) "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 to the extent the property is includible in the decedent's federal gross
30.11estate; but excludes
30.12    (v) an entity whose ownership interest securities are traded on an exchange regulated
30.13by the Securities and Exchange Commission as a national securities exchange under
30.14section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.
30.15EFFECTIVE DATE.This section is effective for estates of decedents dying after
30.16December 31, 2014.

30.17    Sec. 28. Minnesota Statutes 2014, section 291.03, is amended by adding a subdivision
30.18to read:
30.19    Subd. 12. Certain dispositions to government entities. Notwithstanding any
30.20provision of this section, no taxpayer shall be disqualified for the subtraction provided
30.21under section 291.016, subdivision 3, nor shall any taxpayer be liable for the recapture tax
30.22provided in subdivision 11, solely because the state, any local government unit, or any
30.23other entity that has the power of eminent domain acquires title or possession of the land
30.24for a public purpose within the three-year holding period.
30.25EFFECTIVE DATE.This section is effective retroactively for estates of decedents
30.26dying after June 30, 2011.

30.27    Sec. 29. REPORT OF FREE ELECTRONIC FILING FOR INDIVIDUAL
30.28INCOME TAX RETURNS.
30.29(a) By March 16, 2016, the commissioner of revenue must provide a written
30.30report to the chairs and ranking minority members of the legislative committees with
30.31jurisdiction over taxes regarding free electronic filing options for individual income tax
30.32filing, including a vendor-based solution. The report must include responses from a
30.33commissioner's request for information to consumer-based tax filing software vendors.
31.1The request for information may include, but is not limited to, seeking information on
31.2the following aspects of a free electronic filing solution:
31.3(1) costs, on a per return basis, that would be charged to the state of Minnesota to
31.4provide an electronic individual income tax return preparation, submission, and payment
31.5remittance process;
31.6(2) vendor capability to provide customer service and issue resolution to taxpayers
31.7using the software;
31.8(3) vendor capability to provide and maintain an appropriate link between the
31.9Department of Revenue and the Internal Revenue Service Modernized Electronic Filing
31.10Program;
31.11(4) vendor security capabilities to ensure that taxpayer return information is
31.12maintained and protected as required by Minnesota Statutes, chapters 13 and 270B,
31.13Internal Revenue Service Publication 1075, and any other applicable requirements;
31.14(5) products for the free filing and submitting of both Minnesota and federal returns
31.15offered to customers and the thresholds for using those products; and
31.16(6) add-on products offered to customers and their costs.
31.17(b) The report required under paragraph (a) must comply with Minnesota Statutes,
31.18sections 3.195 and 3.197.
31.19EFFECTIVE DATE.This section is effective the day following final enactment.

31.20    Sec. 30. VETERANS JOBS GRANT.
31.21    Subdivision 1. Establishment. The commissioner of revenue shall establish a
31.22program to award a grant to a qualified employer for hiring an unemployed veteran as
31.23a qualified employee. A qualified employer is eligible for a grant of $2,500 for each
31.24qualified employee hired.
31.25    Subd. 2. Definitions. (a) For purposes of this section, the following terms have
31.26the meanings given.
31.27(b) "Local government" means statutory or home rule charter cities, counties, and
31.28townships; special districts as defined under Minnesota Statutes, section 6.465; any
31.29instrumentality of a statutory or home rule charter city, county, or township as defined in
31.30Minnesota Statutes, section 471.59; and any joint powers board or organization created
31.31under Minnesota Statutes, section 471.59.
31.32(c) "Nonprofit organization" means an organization that has a current federal
31.33determination letter stating that the nonprofit organization qualifies as an exempt
32.1organization under section 501(c)(3) of the Internal Revenue Code and is exempt from tax
32.2under section 501(a) of the Internal Revenue Code.
32.3(d) "Qualified veteran employee" means any individual performing services within
32.4the state of Minnesota for an employer that is a local government or nonprofit organization;
32.5the performance of which services constitute, establish, and determine the relationship
32.6between the parties as that of employer and employee; and who meets the following criteria:
32.7(1) the employee is a resident of Minnesota on the date of hire;
32.8(2) the employee is paid wages as defined in Minnesota Statutes, section 290.92,
32.9subdivision 1;
32.10(3) the employee's wages are attributable to Minnesota under Minnesota Statutes,
32.11section 290.191, subdivision 12;
32.12(4) the employee is employed for a period of at least … of the 12 months
32.13immediately following the date of hire; and
32.14(5) the employee is an unemployed veteran.
32.15(e) "Qualified veteran employee" does not include any employee who, in the
32.16preceding 12 months before the employee's date of hire was, and in the calendar year in
32.17which the grant is paid, is:
32.18(1) a member of the board of the nonprofit organization employer that hired the
32.19qualified employee; or
32.20(2) an elected or appointed official of the local government that hired the qualified
32.21employee.
32.22(f) "Qualified employer" means a local government or nonprofit organization that
32.23hires a qualified employee.
32.24(g) "Unemployed veteran" is a veteran who:
32.25(1) received unemployment compensation under state or federal law at any time
32.26during the 12-month period prior to the date of hire; and
32.27(2) was unemployed on the date of hire.
32.28(h) "Veteran" has the meaning given in Minnesota Statutes, section 197.447.
32.29(i) "Date of hire" means the day that the qualified veteran employee begins
32.30performing services as an employee of the qualified employer.
32.31    Subd. 3. Application. The commissioner must develop forms and procedures for
32.32soliciting and reviewing applications for grants under this section. At a minimum:
32.33(1) a local government must include a resolution of its governing body affirming the
32.34number of qualified employees hired in the year for which the grant is applied; and
32.35(2) a nonprofit organization must include a resolution of its board affirming the
32.36number of qualified employees hired in the year for which the grant is applied.
33.1    Subd. 4. Aid payment and calculation. The commissioner of revenue shall remit
33.2grants to qualified employers. The amount of the grant equals $2,500 multiplied by the
33.3number of qualified veteran employees hired by the qualified employer. A qualified
33.4employer must not claim a grant for hiring an unemployed veteran as a qualified veteran
33.5employee if the unemployed veteran was previously employed by the qualified employer.
33.6The commissioner of revenue shall pay the aid to the treasurer or designated treasurer of
33.7each qualified employer by July 15 of the calendar year following the year in which
33.8the qualified veteran employee was hired.
33.9EFFECTIVE DATE.This section is effective January 1, 2016.

33.10    Sec. 31. APPROPRIATION.
33.11$175,000 in fiscal year 2016 is appropriated from the general fund to the
33.12commissioner of revenue for administering section 26.
33.13EFFECTIVE DATE.This section is effective the day following final enactment.

33.14    Sec. 32. APPROPRIATION.
33.15The following amounts are appropriated from the general fund to the commissioner
33.16of revenue to make grants under the veteran jobs grant program in section 27:
33.17(1) $7,600,000 in fiscal year 2016;
33.18(2) $7,200,000 in fiscal year 2017; and
33.19(3) $6,900,000 in each fiscal year thereafter.
33.20EFFECTIVE DATE.This section is effective the day following final enactment.

33.21ARTICLE 2
33.22PROPERTY TAX

33.23    Section 1. [103C.333] COUNTY LEVY AUTHORITY.
33.24Notwithstanding any other law to the contrary, a county levying a tax under section
33.25103C.331 shall not include any taxes levied under those authorities in the levy certified
33.26under section 275.07, subdivision 1, paragraph (a). A county levying under section
33.27103C.331 shall separately certify that amount, and the auditor shall extend that levy as a
33.28special taxing district levy under sections 275.066 and 275.07, subdivision 1, paragraph (b).
33.29EFFECTIVE DATE.This section is effective for certifications made in 2015 and
33.30thereafter.

34.1    Sec. 2. Minnesota Statutes 2014, section 126C.01, subdivision 3, is amended to read:
34.2    Subd. 3. Referendum market value. "Referendum market value" means the market
34.3value of all taxable property, excluding property classified as class 2, or 4c(4), or 4c(12)
34.4under section 273.13. The portion of class 2a property consisting of the house, garage, and
34.5surrounding one acre of land of an agricultural homestead is included in referendum market
34.6value. For the purposes of this subdivision, in the case of class 1a, 1b, or 2a property,
34.7"market value" means the value prior to the exclusion under section 273.13, subdivision
34.835
. In the case of class 4c(12) property, "market value" means the market value exceeding
34.9$300,000 for taxes payable in 2016 and thereafter. Any class of property, or any portion of
34.10a class of property, that is included in the definition of referendum market value and that has
34.11a classification rate of less than one percent under section 273.13 shall have a referendum
34.12market value equal to its market value times its classification rate, multiplied by 100.
34.13EFFECTIVE DATE.This section is effective for taxes payable in 2016 and
34.14thereafter.

34.15    Sec. 3. Minnesota Statutes 2014, section 138.053, is amended to read:
34.16138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR
34.17TOWNS.
34.18    The governing body of any home rule charter or statutory city or town may annually
34.19appropriate from its general fund an amount not to exceed 0.02418 percent of estimated
34.20market value, derived from ad valorem taxes on property or other revenues, to be paid to
34.21the historical society of its respective city, town, or county to be used for the promotion of
34.22historical work and to aid in defraying the expenses of carrying on the historical work in the
34.23county. No city or town may appropriate any funds for the benefit of any historical society
34.24unless the society is affiliated with and approved by the Minnesota Historical Society.
34.25EFFECTIVE DATE.This section is effective the day following final enactment.

34.26    Sec. 4. Minnesota Statutes 2014, section 273.13, subdivision 23, is amended to read:
34.27    Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural
34.28land that is homesteaded, along with any class 2b rural vacant land that is contiguous to
34.29the class 2a land under the same ownership. The market value of the house and garage
34.30and immediately surrounding one acre of land has the same classification rates as class
34.311a or 1b property under subdivision 22. The value of the remaining land including
34.32improvements up to the first tier valuation limit of agricultural homestead property has a
34.33classification rate of 0.5 percent of market value. The remaining property over the first tier
35.1has a classification rate of one percent of market value. For purposes of this subdivision,
35.2the "first tier valuation limit of agricultural homestead property" and "first tier" means
35.3the limit certified under section 273.11, subdivision 23.
35.4    (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
35.5are agricultural land and buildings. Class 2a property has a classification rate of one percent
35.6of market value, unless it is part of an agricultural homestead under paragraph (a). Class
35.72a property must also include any property that would otherwise be classified as 2b, but is
35.8interspersed with class 2a property, including but not limited to sloughs, wooded wind
35.9shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement,
35.10and other similar land that is impractical for the assessor to value separately from the rest of
35.11the property or that is unlikely to be able to be sold separately from the rest of the property.
35.12    An assessor may classify the part of a parcel described in this subdivision that is used
35.13for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
35.14    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof,
35.15that are unplatted real estate, rural in character and not used for agricultural purposes,
35.16including land used for growing trees for timber, lumber, and wood and wood products,
35.17that is not improved with a structure. The presence of a minor, ancillary nonresidential
35.18structure as defined by the commissioner of revenue does not disqualify the property from
35.19classification under this paragraph. Any parcel of 20 acres or more improved with a
35.20structure that is not a minor, ancillary nonresidential structure must be split-classified, and
35.21ten acres must be assigned to the split parcel containing the structure. Class 2b property
35.22has a classification rate of one percent of market value unless it is part of an agricultural
35.23homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
35.24    (d) Class 2c managed forest land consists of no less than 20 and no more than
35.251,920 acres statewide per taxpayer that is being managed under a forest management
35.26plan that meets the requirements of chapter 290C, but is not enrolled in the sustainable
35.27forest resource management incentive program. It has a classification rate of .65 percent,
35.28provided that the owner of the property must apply to the assessor in order for the
35.29property to initially qualify for the reduced rate and provide the information required
35.30by the assessor to verify that the property qualifies for the reduced rate. If the assessor
35.31receives the application and information before May 1 in an assessment year, the property
35.32qualifies beginning with that assessment year. If the assessor receives the application
35.33and information after April 30 in an assessment year, the property may not qualify until
35.34the next assessment year. The commissioner of natural resources must concur that the
35.35land is qualified. The commissioner of natural resources shall annually provide county
35.36assessors verification information on a timely basis. The presence of a minor, ancillary
36.1nonresidential structure as defined by the commissioner of revenue does not disqualify the
36.2property from classification under this paragraph.
36.3    (e) Agricultural land as used in this section means:
36.4    (1) contiguous acreage of ten acres or more, used during the preceding year for
36.5agricultural purposes; or
36.6    (2) contiguous acreage used during the preceding year for an intensive livestock or
36.7poultry confinement operation, provided that land used only for pasturing or grazing
36.8does not qualify under this clause.
36.9    "Agricultural purposes" as used in this section means the raising, cultivation, drying,
36.10or storage of agricultural products for sale, or the storage of machinery or equipment used
36.11in support of agricultural production by the same farm entity. For a property to be classified
36.12as agricultural based only on the drying or storage of agricultural products, the products
36.13being dried or stored must have been produced by the same farm entity as the entity
36.14operating the drying or storage facility. "Agricultural purposes" also includes enrollment
36.15in the Reinvest in Minnesota program under sections 103F.501 to 103F.535 or the federal
36.16Conservation Reserve Program as contained in Public Law 99-198 or a similar state or
36.17federal conservation program, excluding the federal Conservation Reserve Program, if
36.18the property was classified as agricultural (i) under this subdivision for taxes payable in
36.192003 because of its enrollment in a qualifying program and the land remains enrolled or
36.20(ii) in the year prior to its enrollment. Enrollment in the federal Conservation Reserve
36.21Program, as contained in Public Law 98-198, shall be considered an agricultural purpose
36.22under this section. Agricultural classification shall not be based upon the market value of
36.23any residential structures on the parcel or contiguous parcels under the same ownership.
36.24    "Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous
36.25portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion
36.26of, a set of contiguous tax parcels under that section that are owned by the same person.
36.27    (f) Agricultural land under this section also includes:
36.28    (1) contiguous acreage that is less than ten acres in size and exclusively used in the
36.29preceding year for raising or cultivating agricultural products; or
36.30    (2) contiguous acreage that contains a residence and is less than 11 acres in size, if
36.31the contiguous acreage exclusive of the house, garage, and surrounding one acre of land
36.32was used in the preceding year for one or more of the following three uses:
36.33    (i) for an intensive grain drying or storage operation, or for intensive machinery or
36.34equipment storage activities used to support agricultural activities on other parcels of
36.35property operated by the same farming entity;
37.1    (ii) as a nursery, provided that only those acres used intensively to produce nursery
37.2stock are considered agricultural land; or
37.3    (iii) for intensive market farming; for purposes of this paragraph, "market farming"
37.4means the cultivation of one or more fruits or vegetables or production of animal or other
37.5agricultural products for sale to local markets by the farmer or an organization with which
37.6the farmer is affiliated.
37.7    "Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as
37.8described in section 272.193, or all of a set of contiguous tax parcels under that section
37.9that are owned by the same person.
37.10    (g) Land shall be classified as agricultural even if all or a portion of the agricultural
37.11use of that property is the leasing to, or use by another person for agricultural purposes.
37.12    Classification under this subdivision is not determinative for qualifying under
37.13section 273.111.
37.14    (h) The property classification under this section supersedes, for property tax
37.15purposes only, any locally administered agricultural policies or land use restrictions that
37.16define minimum or maximum farm acreage.
37.17    (i) The term "agricultural products" as used in this subdivision includes production
37.18for sale of:
37.19    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
37.20animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains,
37.21bees, and apiary products by the owner;
37.22    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned
37.23for agricultural use;
37.24    (3) the commercial boarding of horses, which may include related horse training and
37.25riding instruction, if the boarding is done on property that is also used for raising pasture
37.26to graze horses or raising or cultivating other agricultural products as defined in clause (1);
37.27    (4) property which is owned and operated by nonprofit organizations used for
37.28equestrian activities, excluding racing;
37.29    (5) game birds and waterfowl bred and raised (i) on a game farm licensed under
37.30section 97A.105, provided that the annual licensing report to the Department of Natural
37.31Resources, which must be submitted annually by March 30 to the assessor, indicates
37.32that at least 500 birds were raised or used for breeding stock on the property during the
37.33preceding year and that the owner provides a copy of the owner's most recent schedule F;
37.34or (ii) for use on a shooting preserve licensed under section 97A.115;
37.35    (6) insects primarily bred to be used as food for animals;
38.1    (7) trees, grown for sale as a crop, including short rotation woody crops, and not
38.2sold for timber, lumber, wood, or wood products; and
38.3    (8) maple syrup taken from trees grown by a person licensed by the Minnesota
38.4Department of Agriculture under chapter 28A as a food processor.
38.5    (j) If a parcel used for agricultural purposes is also used for commercial or industrial
38.6purposes, including but not limited to:
38.7    (1) wholesale and retail sales;
38.8    (2) processing of raw agricultural products or other goods;
38.9    (3) warehousing or storage of processed goods; and
38.10    (4) office facilities for the support of the activities enumerated in clauses (1), (2),
38.11and (3),
38.12the assessor shall classify the part of the parcel used for agricultural purposes as class
38.131b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its
38.14use. The grading, sorting, and packaging of raw agricultural products for first sale is
38.15considered an agricultural purpose. A greenhouse or other building where horticultural
38.16or nursery products are grown that is also used for the conduct of retail sales must be
38.17classified as agricultural if it is primarily used for the growing of horticultural or nursery
38.18products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of
38.19those products. Use of a greenhouse or building only for the display of already grown
38.20horticultural or nursery products does not qualify as an agricultural purpose.
38.21    (k) The assessor shall determine and list separately on the records the market value
38.22of the homestead dwelling and the one acre of land on which that dwelling is located. If
38.23any farm buildings or structures are located on this homesteaded acre of land, their market
38.24value shall not be included in this separate determination.
38.25    (l) Class 2d airport landing area consists of a landing area or public access area of a
38.26privately owned public use airport. It has a classification rate of one percent of market
38.27value. To qualify for classification under this paragraph, a privately owned public use
38.28airport must be licensed as a public airport under section 360.018. For purposes of
38.29this paragraph, "landing area" means that part of a privately owned public use airport
38.30properly cleared, regularly maintained, and made available to the public for use by aircraft
38.31and includes runways, taxiways, aprons, and sites upon which are situated landing or
38.32navigational aids. A landing area also includes land underlying both the primary surface
38.33and the approach surfaces that comply with all of the following:
38.34    (i) the land is properly cleared and regularly maintained for the primary purposes of
38.35the landing, taking off, and taxiing of aircraft; but that portion of the land that contains
38.36facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
39.1    (ii) the land is part of the airport property; and
39.2    (iii) the land is not used for commercial or residential purposes.
39.3The land contained in a landing area under this paragraph must be described and certified
39.4by the commissioner of transportation. The certification is effective until it is modified,
39.5or until the airport or landing area no longer meets the requirements of this paragraph.
39.6For purposes of this paragraph, "public access area" means property used as an aircraft
39.7parking ramp, apron, or storage hangar, or an arrival and departure building in connection
39.8with the airport.
39.9    (m) Class 2e consists of land with a commercial aggregate deposit that is not actively
39.10being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
39.11located in a county that has elected to opt-out of the aggregate preservation program as
39.12provided in section 273.1115, subdivision 6. It has a classification rate of one percent of
39.13market value. To qualify for classification under this paragraph, the property must be at
39.14least ten contiguous acres in size and the owner of the property must record with the
39.15county recorder of the county in which the property is located an affidavit containing:
39.16    (1) a legal description of the property;
39.17    (2) a disclosure that the property contains a commercial aggregate deposit that is not
39.18actively being mined but is present on the entire parcel enrolled;
39.19    (3) documentation that the conditional use under the county or local zoning
39.20ordinance of this property is for mining; and
39.21    (4) documentation that a permit has been issued by the local unit of government
39.22or the mining activity is allowed under local ordinance. The disclosure must include a
39.23statement from a registered professional geologist, engineer, or soil scientist delineating
39.24the deposit and certifying that it is a commercial aggregate deposit.
39.25    For purposes of this section and section 273.1115, "commercial aggregate deposit"
39.26means a deposit that will yield crushed stone or sand and gravel that is suitable for use
39.27as a construction aggregate; and "actively mined" means the removal of top soil and
39.28overburden in preparation for excavation or excavation of a commercial deposit.
39.29    (n) When any portion of the property under this subdivision or subdivision 22 begins
39.30to be actively mined, the owner must file a supplemental affidavit within 60 days from
39.31the day any aggregate is removed stating the number of acres of the property that is
39.32actively being mined. The acres actively being mined must be (1) valued and classified
39.33under subdivision 24 in the next subsequent assessment year, and (2) removed from the
39.34aggregate resource preservation property tax program under section 273.1115, if the
39.35land was enrolled in that program. Copies of the original affidavit and all supplemental
39.36affidavits must be filed with the county assessor, the local zoning administrator, and the
40.1Department of Natural Resources, Division of Land and Minerals. A supplemental
40.2affidavit must be filed each time a subsequent portion of the property is actively mined,
40.3provided that the minimum acreage change is five acres, even if the actual mining activity
40.4constitutes less than five acres.
40.5    (o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are
40.6not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions
40.7in section 14.386 concerning exempt rules do not apply.
40.8EFFECTIVE DATE.This section is effective beginning with assessment year 2016.

40.9    Sec. 5. Minnesota Statutes 2014, section 273.13, subdivision 24, is amended to read:
40.10    Subd. 24. Class 3. Commercial and industrial property and utility real and personal
40.11property is class 3a.
40.12(1) Except as otherwise provided, each parcel of commercial, industrial, or utility
40.13real property has a classification rate of 1.5 1.55 percent of the first tier of market value,
40.14and 2.0 2.1 percent of the remaining market value. In the case of contiguous parcels of
40.15property owned by the same person or entity, only the value equal to the first-tier value of
40.16the contiguous parcels qualifies for the reduced classification rate, except that contiguous
40.17parcels owned by the same person or entity shall be eligible for the first-tier value
40.18classification rate on each separate business operated by the owner of the property, provided
40.19the business is housed in a separate structure. For the purposes of this subdivision, the first
40.20tier means the first $150,000 of market value. Real property owned in fee by a utility for
40.21transmission line right-of-way shall be classified at the classification rate for the higher tier.
40.22For purposes of this subdivision, parcels are considered to be contiguous even if
40.23they are separated from each other by a road, street, waterway, or other similar intervening
40.24type of property. Connections between parcels that consist of power lines or pipelines do
40.25not cause the parcels to be contiguous. Property owners who have contiguous parcels of
40.26property that constitute separate businesses that may qualify for the first-tier classification
40.27rate shall notify the assessor by July 1, for treatment beginning in the following taxes
40.28payable year.
40.29(2) All personal property that is: (i) part of an electric generation, transmission, or
40.30distribution system; or (ii) part of a pipeline system transporting or distributing water, gas,
40.31crude oil, or petroleum products; and (iii) not described in clause (3), and all railroad
40.32operating property has a classification rate as provided under clause (1) for the first tier
40.33of market value and the remaining market value. In the case of multiple parcels in one
40.34county that are owned by one person or entity, only one first tier amount is eligible for the
40.35reduced rate.
41.1(3) The entire market value of personal property that is: (i) tools, implements, and
41.2machinery of an electric generation, transmission, or distribution system; (ii) tools,
41.3implements, and machinery of a pipeline system transporting or distributing water, gas,
41.4crude oil, or petroleum products; or (iii) the mains and pipes used in the distribution of
41.5steam or hot or chilled water for heating or cooling buildings, has a classification rate as
41.6provided under clause (1) for the remaining market value in excess of the first tier.
41.7EFFECTIVE DATE.This section is effective for taxes payable in 2016 and
41.8thereafter.

41.9    Sec. 6. Minnesota Statutes 2014, section 273.1392, is amended to read:
41.10273.1392 PAYMENT; SCHOOL DISTRICTS.
41.11The amounts of bovine tuberculosis credit reimbursements under section 273.113;
41.12conservation tax credits under section 273.119; disaster or emergency reimbursement
41.13under sections 273.1231 to 273.1235; homestead and agricultural credits under section
41.14sections 273.1384 and 273.88; aids and credits under section 273.1398; enterprise zone
41.15property credit payments under section 469.171; and metropolitan agricultural preserve
41.16reduction under section 473H.10 for school districts, shall be certified to the Department
41.17of Education by the Department of Revenue. The amounts so certified shall be paid
41.18according to section 127A.45, subdivisions 9 and 13.
41.19EFFECTIVE DATE.This section is effective for property taxes payable in 2016
41.20and thereafter.

41.21    Sec. 7. Minnesota Statutes 2014, section 273.1393, is amended to read:
41.22273.1393 COMPUTATION OF NET PROPERTY TAXES.
41.23    Notwithstanding any other provisions to the contrary, "net" property taxes are
41.24determined by subtracting the credits in the order listed from the gross tax:
41.25    (1) disaster credit as provided in sections 273.1231 to 273.1235;
41.26    (2) powerline credit as provided in section 273.42;
41.27    (3) agricultural preserves credit as provided in section 473H.10;
41.28    (4) enterprise zone credit as provided in section 469.171;
41.29    (5) disparity reduction credit;
41.30    (6) conservation tax credit as provided in section 273.119;
41.31    (7) agricultural credit as provided in section 273.1384;
41.32    (8) taconite homestead credit as provided in section 273.135;
41.33    (9) supplemental homestead credit as provided in section 273.1391; and
42.1    (10) the bovine tuberculosis zone credit, as provided in section 273.113; and
42.2    (11) the targeted agricultural land credit, as provided in section 273.88.
42.3    The combination of all property tax credits must not exceed the gross tax amount.
42.4EFFECTIVE DATE.This section is effective for property taxes payable in 2016
42.5and thereafter.

42.6    Sec. 8. [273.88] TARGETED AGRICULTURAL LAND TAX CREDIT.
42.7    Subdivision 1. Eligibility; amount of credit. (a) Property classified in whole or
42.8in part as class 2a agricultural property under section 273.13, subdivision 23, paragraph
42.9(b), in both the prior year and the current year, is eligible for a property tax credit if the
42.10gross property taxes payable on that portion of the property classified as agricultural
42.11increase by more than eight percent over the property taxes payable in the prior year on the
42.12same property and the amount of that increase is $200 or more. The amount of the credit
42.13shall equal the amount of the increase over the greater of eight percent of the prior year's
42.14property taxes payable or $200. The maximum credit allowed under this section is $2,000.
42.15(b) For purposes of this subdivision, "gross property taxes payable" means property
42.16taxes payable determined without regard to the credit allowed under this section.
42.17(c) Agricultural property shall not be eligible for the credit under this section if: (1)
42.18the property's boundaries have changed in the current payable year; (2) an improvement
42.19was constructed upon the property; (3) valuation increases occurred relating to an
42.20incremental value increase due to a plat law provision or based upon the termination of an
42.21exclusion under section 273.11, subdivision 14a, 14b, or 14c; or (4) in the prior payable
42.22year, the property was enrolled under section 273.113 or 273.114, or chapter 473H or 40A,
42.23and that enrollment was removed for the current payable year.
42.24(d) If the amount of the credit exceeds the total of the net tax capacity-based gross
42.25property taxes on that portion of the property eligible for a credit under subdivision (a),
42.26the credit shall be limited to the net tax capacity-based gross property taxes payable on
42.27that part of the property classified under section 273.13, subdivision 23, paragraph (b).
42.28    Subd. 2. Credit reimbursement. The county auditor shall determine the tax
42.29reductions allowed under subdivision 1 within the county for each taxes payable year and
42.30certify that amount to the commissioner of revenue as part of the abstracts of tax listings
42.31submitted by the county auditors under section 275.29. Any prior year adjustments
42.32shall also be certified on the abstracts of tax lists. The commissioner shall review the
42.33certifications for accuracy and make changes as necessary, or return the certification to the
42.34county auditor for correction. The credit under this section must be used to proportionately
43.1reduce the net tax capacity-based property tax payable to each local taxing jurisdiction
43.2as provided in section 273.1293.
43.3    Subd. 3. Payment. (a) The commissioner of revenue shall reimburse each local
43.4taxing jurisdiction, other than school districts, for the tax reductions granted under
43.5subdivision 1 in two equal installments on October 31 and December 26 of the taxes
43.6payable year for which the reductions are granted, including in each payment the prior
43.7year adjustments certified on the abstracts for that taxes payable year. The reimbursements
43.8related to tax increments shall be issued in one installment each year on December 26.
43.9(b) The commissioner of revenue shall certify the total of the tax reductions
43.10granted under subdivision 1 for each taxes payable year within each school district
43.11to the commissioner of education, and the commissioner of education shall pay the
43.12reimbursement amounts to each school district as provided in section 273.1392.
43.13    Subd. 4. Appropriation. An amount sufficient to make the payments required by
43.14this section to taxing jurisdictions other than school districts is annually appropriated
43.15from the general fund to the commissioner of revenue. An amount sufficient to make the
43.16payments required under this section for school districts is annually appropriated from the
43.17general fund to the commissioner of education.
43.18EFFECTIVE DATE.This section is effective for property taxes payable in 2016
43.19and thereafter.

43.20    Sec. 9. Minnesota Statutes 2014, section 275.025, subdivision 1, is amended to read:
43.21    Subdivision 1. Levy amount. The state general levy is levied against
43.22commercial-industrial property and seasonal residential recreational property, as defined
43.23in this section. The state general levy base amount for commercial-industrial property is
43.24$592,000,000 $767,092,100 for taxes payable in 2002 2016. The state general levy base
43.25amount for seasonal residential recreational property is $34,057,500 for taxes payable in
43.262016. For taxes payable in subsequent years, the each levy base amount is increased each
43.27year by multiplying the levy base amount for the prior year by the sum of one plus the rate
43.28of increase, if any, in the implicit price deflator for government consumption expenditures
43.29and gross investment for state and local governments prepared by the Bureau of Economic
43.30Analysts of the United States Department of Commerce for the 12-month period ending
43.31March 31 of the year prior to the year the taxes are payable. The tax under this section is
43.32not treated as a local tax rate under section 469.177 and is not the levy of a governmental
43.33unit under chapters 276A and 473F.
43.34The commissioner shall increase or decrease the preliminary or final rate for a year
43.35as necessary to account for errors and tax base changes that affected a preliminary or final
44.1rate for either of the two preceding years. Adjustments are allowed to the extent that the
44.2necessary information is available to the commissioner at the time the rates for a year must
44.3be certified, and for the following reasons:
44.4(1) an erroneous report of taxable value by a local official;
44.5(2) an erroneous calculation by the commissioner; and
44.6(3) an increase or decrease in taxable value for commercial-industrial or seasonal
44.7residential recreational property reported on the abstracts of tax lists submitted under
44.8section 275.29 that was not reported on the abstracts of assessment submitted under
44.9section 270C.89 for the same year.
44.10The commissioner may, but need not, make adjustments if the total difference in the tax
44.11levied for the year would be less than $100,000.
44.12EFFECTIVE DATE.This section is effective for taxes payable in 2016 and
44.13thereafter.

44.14    Sec. 10. Minnesota Statutes 2014, section 275.025, subdivision 3, is amended to read:
44.15    Subd. 3. Seasonal residential recreational tax capacity. For the purposes of this
44.16section, "seasonal residential recreational tax capacity" means the tax capacity of tier III of
44.17class 1c under section 273.13, subdivision 22, and all class 4c(1), 4c(3)(ii), and 4c(12)
44.18property under section 273.13, subdivision 25, except that for each noncommercial class
44.194c(12) property: (i) the first $76,000 of market value of each noncommercial class 4c(12)
44.20property has a tax capacity for this purpose equal to 40 percent of its tax capacity under
44.21section 273.13; and (ii) the market value exceeding $300,000 shall be excluded for taxes
44.22payable in 2016 and thereafter.
44.23EFFECTIVE DATE.This section is effective for taxes payable in 2016 and
44.24thereafter.

44.25    Sec. 11. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read:
44.26    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the
44.27contrary, on or before September 30, each county and each, home rule charter or statutory
44.28city, and special taxing district, excluding the metropolitan council and the metropolitan
44.29mosquito control commission, shall certify to the county auditor the proposed property
44.30tax levy for taxes payable in the following year. The proposed levy certification date for
44.31the metropolitan council shall be as prescribed in sections 473.249 and 473.446. The
44.32proposed levy certification date for the metropolitan mosquito control district shall be
44.33as prescribed in section 473.711.
45.1    (b) Notwithstanding any law or charter to the contrary, on or before September 15,
45.2each town and each special taxing district shall adopt and certify to the county auditor a
45.3proposed property tax levy for taxes payable in the following year. For towns, the final
45.4certified levy shall also be considered the proposed levy.
45.5    (c) On or before September 30, each school district that has not mutually agreed
45.6with its home county to extend this date shall certify to the county auditor the proposed
45.7property tax levy for taxes payable in the following year. Each school district that has
45.8agreed with its home county to delay the certification of its proposed property tax levy
45.9must certify its proposed property tax levy for the following year no later than October
45.107. The school district shall certify the proposed levy as:
45.11    (1) a specific dollar amount by school district fund, broken down between
45.12voter-approved and non-voter-approved levies and between referendum market value
45.13and tax capacity levies; or
45.14    (2) the maximum levy limitation certified by the commissioner of education
45.15according to section 126C.48, subdivision 1.
45.16    (d) If the board of estimate and taxation or any similar board that establishes
45.17maximum tax levies for taxing jurisdictions within a first class city certifies the maximum
45.18property tax levies for funds under its jurisdiction by charter to the county auditor by the
45.19date specified in paragraph (a), the city shall be deemed to have certified its levies for
45.20those taxing jurisdictions.
45.21    (e) For purposes of this section, "special taxing district" means a special taxing
45.22district as defined in section 275.066. Intermediate school districts that levy a tax
45.23under chapter 124 or 136D, joint powers boards established under sections 123A.44 to
45.24123A.446 , and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are
45.25also special taxing districts for purposes of this section.
45.26(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
45.27tax levy under this subdivision, the taxing authority shall announce the time and place
45.28of its subsequent regularly scheduled meetings at which the budget and levy will be
45.29discussed and at which the public will be allowed to speak. The time and place of those
45.30meetings must be included in the proceedings or summary of proceedings published in the
45.31official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191.
45.32EFFECTIVE DATE.This section is effective beginning with proposed levy
45.33certifications for taxes payable in 2016.

45.34    Sec. 12. Minnesota Statutes 2014, section 275.065, subdivision 3, is amended to read:
46.1    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare
46.2and the county treasurer shall deliver after November 10 and on or before November 24
46.3each year, by first class mail to each taxpayer at the address listed on the county's current
46.4year's assessment roll, a notice of proposed property taxes. Upon written request by
46.5the taxpayer, the treasurer may send the notice in electronic form or by electronic mail
46.6instead of on paper or by ordinary mail.
46.7    (b) The commissioner of revenue shall prescribe the form of the notice.
46.8    (c) The notice must inform taxpayers that it contains the amount of property taxes
46.9each taxing authority proposes to collect for taxes payable the following year. In the case of
46.10a town, or in the case of the state general tax, the final tax amount will be its proposed tax.
46.11The notice must clearly state for each city that has a population over 500, county, school
46.12district, regional library authority established under section 134.201, and metropolitan
46.13taxing districts as defined in paragraph (i), the time and place of a meeting for each taxing
46.14authority in which the budget and levy will be discussed and public input allowed, prior to
46.15the final budget and levy determination. The taxing authorities must provide the county
46.16auditor with the information to be included in the notice on or before the time it certifies
46.17its proposed levy under subdivision 1. The public must be allowed to speak at that
46.18meeting, which must occur after November 24 and must not be held before 6:00 p.m. It
46.19must provide a telephone number for the taxing authority that taxpayers may call if they
46.20have questions related to the notice and an address where comments will be received by
46.21mail, except that no notice required under this section shall be interpreted as requiring the
46.22printing of a personal telephone number or address as the contact information for a taxing
46.23authority. If a taxing authority does not maintain public offices where telephone calls can
46.24be received by the authority, the authority may inform the county of the lack of a public
46.25telephone number and the county shall not list a telephone number for that taxing authority.
46.26    (d) The notice must state for each parcel:
46.27    (1) the market value of the property as determined under section 273.11, and used
46.28for computing property taxes payable in the following year and for taxes payable in the
46.29current year as each appears in the records of the county assessor on November 1 of the
46.30current year; and, in the case of residential property, whether the property is classified as
46.31homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
46.32which the market values apply and that the values are final values;
46.33    (2) the items listed below, shown separately by county, city or town, and state
46.34general tax, agricultural homestead credit under section 273.1384, targeted agricultural
46.35land credit under section 273.88, voter approved school levy, other local school levy, and
46.36the sum of the special taxing districts, and as a total of all taxing authorities:
47.1    (i) the actual tax for taxes payable in the current year; and
47.2    (ii) the proposed tax amount.
47.3    If the county levy under clause (2) includes an amount for a lake improvement
47.4district as defined under sections 103B.501 to 103B.581, the amount attributable for that
47.5purpose must be separately stated from the remaining county levy amount.
47.6    In the case of a town or the state general tax, the final tax shall also be its proposed
47.7tax unless the town changes its levy at a special town meeting under section 365.52. If a
47.8school district has certified under section 126C.17, subdivision 9, that a referendum will
47.9be held in the school district at the November general election, the county auditor must
47.10note next to the school district's proposed amount that a referendum is pending and that, if
47.11approved by the voters, the tax amount may be higher than shown on the notice. In the
47.12case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be
47.13listed separately from the remaining amount of the city's levy. In the case of the city of
47.14St. Paul, the levy for the St. Paul Library Agency must be listed separately from the
47.15remaining amount of the city's levy. In the case of Ramsey County, any amount levied
47.16under section 134.07 may be listed separately from the remaining amount of the county's
47.17levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax
47.18under chapter 276A or 473F applies, the proposed tax levy on the captured value or the
47.19proposed tax levy on the tax capacity subject to the areawide tax must each be stated
47.20separately and not included in the sum of the special taxing districts; and
47.21    (3) the increase or decrease between the total taxes payable in the current year and
47.22the total proposed taxes, expressed as a percentage.
47.23    For purposes of this section, the amount of the tax on homesteads qualifying under
47.24the senior citizens' property tax deferral program under chapter 290B is the total amount
47.25of property tax before subtraction of the deferred property tax amount.
47.26    (e) The notice must clearly state that the proposed or final taxes do not include
47.27the following:
47.28    (1) special assessments;
47.29    (2) levies approved by the voters after the date the proposed taxes are certified,
47.30including bond referenda and school district levy referenda;
47.31    (3) a levy limit increase approved by the voters by the first Tuesday after the first
47.32Monday in November of the levy year as provided under section 275.73;
47.33    (4) amounts necessary to pay cleanup or other costs due to a natural disaster
47.34occurring after the date the proposed taxes are certified;
47.35    (5) amounts necessary to pay tort judgments against the taxing authority that become
47.36final after the date the proposed taxes are certified; and
48.1    (6) the contamination tax imposed on properties which received market value
48.2reductions for contamination.
48.3    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or
48.4the county treasurer to deliver the notice as required in this section does not invalidate the
48.5proposed or final tax levy or the taxes payable pursuant to the tax levy.
48.6    (g) If the notice the taxpayer receives under this section lists the property as
48.7nonhomestead, and satisfactory documentation is provided to the county assessor by the
48.8applicable deadline, and the property qualifies for the homestead classification in that
48.9assessment year, the assessor shall reclassify the property to homestead for taxes payable
48.10in the following year.
48.11    (h) In the case of class 4 residential property used as a residence for lease or rental
48.12periods of 30 days or more, the taxpayer must either:
48.13    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
48.14renter, or lessee; or
48.15    (2) post a copy of the notice in a conspicuous place on the premises of the property.
48.16    The notice must be mailed or posted by the taxpayer by November 27 or within
48.17three days of receipt of the notice, whichever is later. A taxpayer may notify the county
48.18treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
48.19which the notice must be mailed in order to fulfill the requirements of this paragraph.
48.20    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
48.21districts" means the following taxing districts in the seven-county metropolitan area that
48.22levy a property tax for any of the specified purposes listed below:
48.23    (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325,
48.24473.446 , 473.521, 473.547, or 473.834;
48.25    (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672;
48.26and
48.27    (3) Metropolitan Mosquito Control Commission under section 473.711.
48.28    For purposes of this section, any levies made by the regional rail authorities in the
48.29county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
48.30398A shall be included with the appropriate county's levy.
48.31    (j) The governing body of a county, city, or school district may, with the consent
48.32of the county board, include supplemental information with the statement of proposed
48.33property taxes about the impact of state aid increases or decreases on property tax
48.34increases or decreases and on the level of services provided in the affected jurisdiction.
48.35This supplemental information may include information for the following year, the current
49.1year, and for as many consecutive preceding years as deemed appropriate by the governing
49.2body of the county, city, or school district. It may include only information regarding:
49.3    (1) the impact of inflation as measured by the implicit price deflator for state and
49.4local government purchases;
49.5    (2) population growth and decline;
49.6    (3) state or federal government action; and
49.7    (4) other financial factors that affect the level of property taxation and local services
49.8that the governing body of the county, city, or school district may deem appropriate to
49.9include.
49.10    The information may be presented using tables, written narrative, and graphic
49.11representations and may contain instruction toward further sources of information or
49.12opportunity for comment.
49.13EFFECTIVE DATE.This section is effective for property taxes payable in 2016
49.14and thereafter.

49.15    Sec. 13. Minnesota Statutes 2014, section 275.066, is amended to read:
49.16275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
49.17    For the purposes of property taxation and property tax state aids, the term "special
49.18taxing districts" includes the following entities:
49.19    (1) watershed districts under chapter 103D;
49.20    (2) sanitary districts under sections 442A.01 to 442A.29;
49.21    (3) regional sanitary sewer districts under sections 115.61 to 115.67;
49.22    (4) regional public library districts under section 134.201;
49.23    (5) park districts under chapter 398;
49.24    (6) regional railroad authorities under chapter 398A;
49.25    (7) hospital districts under sections 447.31 to 447.38;
49.26    (8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
49.27    (9) Duluth Transit Authority under sections 458A.21 to 458A.37;
49.28    (10) regional development commissions under sections 462.381 to 462.398;
49.29    (11) housing and redevelopment authorities under sections 469.001 to 469.047;
49.30    (12) port authorities under sections 469.048 to 469.068;
49.31    (13) economic development authorities under sections 469.090 to 469.1081;
49.32    (14) Metropolitan Council under sections 473.123 to 473.549;
49.33    (15) Metropolitan Airports Commission under sections 473.601 to 473.679;
49.34    (16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
50.1    (17) Morrison County Rural Development Financing Authority under Laws 1982,
50.2chapter 437, section 1;
50.3    (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
50.4    (19) East Lake County Medical Clinic District under Laws 1989, chapter 211,
50.5sections 1 to 6;
50.6    (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article
50.75, section 39;
50.8    (21) Middle Mississippi River Watershed Management Organization under sections
50.9103B.211 and 103B.241;
50.10    (22) emergency medical services special taxing districts under section 144F.01;
50.11    (23) a county levying under the authority of section 103B.241, 103B.245, or
50.12103B.251, or 103C.331;
50.13    (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
50.14under Laws 2003, First Special Session chapter 21, article 4, section 12;
50.15    (25) an airport authority created under section 360.0426; and
50.16    (26) any other political subdivision of the state of Minnesota, excluding counties,
50.17school districts, cities, and towns, that has the power to adopt and certify a property tax
50.18levy to the county auditor, as determined by the commissioner of revenue.
50.19EFFECTIVE DATE.This section is effective for assessment year 2016.

50.20    Sec. 14. Minnesota Statutes 2014, section 275.07, subdivision 1, is amended to read:
50.21    Subdivision 1. Certification of levy. (a) Except as provided under paragraph (b),
50.22the taxes voted by cities, counties, school districts, and special districts shall be certified
50.23by the proper authorities to the county auditor on or before five working days after
50.24December 20 in each year. A town must certify the levy adopted by the town board to
50.25the county auditor by September 15 each year. If the town board modifies the levy at a
50.26special town meeting after September 15, the town board must recertify its levy to the
50.27county auditor on or before five working days after December 20. If a city, town, county,
50.28school district, or special district fails to certify its levy by that date, its levy shall be the
50.29amount levied by it for the preceding year.
50.30(b)(i) The taxes voted by counties under sections 103B.241, 103B.245, and
50.31103B.251, and 103C.331 shall be separately certified by the county to the county auditor
50.32on or before five working days after December 20 in each year. The taxes certified
50.33shall not be reduced by the county auditor by the aid received under section 273.1398,
50.34subdivision 3
. If a county fails to certify its levy by that date, its levy shall be the amount
50.35levied by it for the preceding year.
51.1(ii) For purposes of the proposed property tax notice under section 275.065 and
51.2the property tax statement under section 276.04, for the first year in which the county
51.3implements the provisions of this paragraph, the county auditor shall reduce the county's
51.4levy for the preceding year to reflect any amount levied for water management purposes
51.5under clause (i) included in the county's levy.
51.6EFFECTIVE DATE.This section is effective for assessment year 2016.

51.7    Sec. 15. Minnesota Statutes 2014, section 276.04, subdivision 2, is amended to read:
51.8    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing
51.9of the tax statements. The commissioner of revenue shall prescribe the form of the property
51.10tax statement and its contents. The tax statement must not state or imply that property tax
51.11credits are paid by the state of Minnesota. The statement must contain a tabulated statement
51.12of the dollar amount due to each taxing authority and the amount of the state tax from the
51.13parcel of real property for which a particular tax statement is prepared. The dollar amounts
51.14attributable to the county, the state tax, the voter approved school tax, the other local school
51.15tax, the township or municipality, and the total of the metropolitan special taxing districts
51.16as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated.
51.17The amounts due all other special taxing districts, if any, may be aggregated except that
51.18any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota,
51.19Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate
51.20line directly under the appropriate county's levy. If the county levy under this paragraph
51.21includes an amount for a lake improvement district as defined under sections 103B.501
51.22to 103B.581, the amount attributable for that purpose must be separately stated from the
51.23remaining county levy amount. In the case of Ramsey County, if the county levy under this
51.24paragraph includes an amount for public library service under section 134.07, the amount
51.25attributable for that purpose may be separated from the remaining county levy amount.
51.26The amount of the tax on homesteads qualifying under the senior citizens' property tax
51.27deferral program under chapter 290B is the total amount of property tax before subtraction
51.28of the deferred property tax amount. The amount of the tax on contamination value
51.29imposed under sections 270.91 to 270.98, if any, must also be separately stated. The dollar
51.30amounts, including the dollar amount of any special assessments, may be rounded to the
51.31nearest even whole dollar. For purposes of this section whole odd-numbered dollars may
51.32be adjusted to the next higher even-numbered dollar. The amount of market value excluded
51.33under section 273.11, subdivision 16, if any, must also be listed on the tax statement.
52.1    (b) The property tax statements for manufactured homes and sectional structures
52.2taxed as personal property shall contain the same information that is required on the
52.3tax statements for real property.
52.4    (c) Real and personal property tax statements must contain the following information
52.5in the order given in this paragraph. The information must contain the current year tax
52.6information in the right column with the corresponding information for the previous year
52.7in a column on the left:
52.8    (1) the property's estimated market value under section 273.11, subdivision 1;
52.9    (2) the property's homestead market value exclusion under section 273.13,
52.10subdivision 35;
52.11    (3) the property's taxable market value under section 272.03, subdivision 15;
52.12    (4) the property's gross tax, before credits;
52.13(5) for agricultural properties, the credit under section 273.88;
52.14    (5) (6) for homestead agricultural properties, the credit under section 273.1384;
52.15    (6) (7) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
52.16273.1391 ; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of
52.17credit received under section 273.135 must be separately stated and identified as "taconite
52.18tax relief"; and
52.19    (7) (8) the net tax payable in the manner required in paragraph (a).
52.20    (d) If the county uses envelopes for mailing property tax statements and if the county
52.21agrees, a taxing district may include a notice with the property tax statement notifying
52.22taxpayers when the taxing district will begin its budget deliberations for the current
52.23year, and encouraging taxpayers to attend the hearings. If the county allows notices to
52.24be included in the envelope containing the property tax statement, and if more than
52.25one taxing district relative to a given property decides to include a notice with the tax
52.26statement, the county treasurer or auditor must coordinate the process and may combine
52.27the information on a single announcement.
52.28EFFECTIVE DATE.This section is effective for property taxes payable in 2016
52.29and thereafter.

52.30    Sec. 16. Minnesota Statutes 2014, section 279.01, subdivision 1, is amended to read:
52.31    Subdivision 1. Due dates; penalties. (a) Except as provided in subdivisions 3 to 5,
52.32on May 16 or 21 days after the postmark date on the envelope containing the property tax
52.33statement, whichever is later, a penalty accrues and thereafter is charged upon all unpaid
52.34taxes on real estate on the current lists in the hands of the county treasurer. The penalty is
52.35at a rate of two percent on homestead property until May 31 and four percent on June 1.
53.1The penalty on nonhomestead property is at a rate of four percent until May 31 and eight
53.2percent on June 1. This penalty does not accrue until June 1 of each year, or 21 days after
53.3the postmark date on the envelope containing the property tax statements, whichever is
53.4later, on commercial use real property used for seasonal residential recreational purposes
53.5and classified as class 1c or 4c, and on other commercial use real property classified as
53.6class 3a, provided that over 60 percent of the gross income earned by the enterprise on the
53.7class 3a property is earned during the months of May, June, July, and August. In order for
53.8the first half of the tax due on class 3a property to be paid after May 15 and before June 1,
53.9or 21 days after the postmark date on the envelope containing the property tax statement,
53.10whichever is later, without penalty, the owner of the property must attach an affidavit
53.11to the payment attesting to compliance with the income provision of this subdivision.
53.12Thereafter, for both homestead and nonhomestead property, on the first day of each month
53.13beginning July 1, up to and including October 1 following, an additional penalty of one
53.14percent for each month accrues and is charged on all such unpaid taxes provided that if the
53.15due date was extended beyond May 15 as the result of any delay in mailing property tax
53.16statements no additional penalty shall accrue if the tax is paid by the extended due date. If
53.17the tax is not paid by the extended due date, then all penalties that would have accrued if
53.18the due date had been May 15 shall be charged. When the taxes against any tract or lot
53.19exceed $100, one-half thereof may be paid prior to May 16 or 21 days after the postmark
53.20date on the envelope containing the property tax statement, whichever is later; and, if so
53.21paid, no penalty attaches; the remaining one-half may be paid at any time prior to October
53.2216 following, without penalty; but, if not so paid, then a penalty of two percent accrues
53.23thereon for homestead property and a penalty of four percent on nonhomestead property.
53.24Thereafter, for homestead property, on the first day of November an additional penalty of
53.25four percent accrues and on the first day of December following, an additional penalty of
53.26two percent accrues and is charged on all such unpaid taxes. Thereafter, for nonhomestead
53.27property, on the first day of November and December following, an additional penalty of
53.28four percent for each month accrues and is charged on all such unpaid taxes. If one-half of
53.29such taxes are not paid prior to May 16 or 21 days after the postmark date on the envelope
53.30containing the property tax statement, whichever is later, the same may be paid at any time
53.31prior to October 16, with accrued penalties to the date of payment added, and thereupon
53.32no penalty attaches to the remaining one-half until October 16 following.
53.33    (b) This section applies to payment of personal property taxes assessed against
53.34improvements to leased property, except as provided by section 277.01, subdivision 3.
54.1    (c) A county may provide by resolution that in the case of a property owner that has
54.2multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in
54.3installments as provided in this subdivision.
54.4    (d) The county treasurer may accept payments of more or less than the exact amount
54.5of a tax installment due. Payments must be applied first to the oldest installment that is due
54.6but which has not been fully paid. If the accepted payment is less than the amount due,
54.7payments must be applied first to the penalty accrued for the year or the installment being
54.8paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
54.9payment required as a condition for filing an appeal under section 278.03 or any other law,
54.10nor does it affect the order of payment of delinquent taxes under section 280.39.
54.11(e) No penalty under this section shall accrue if the property tax payment is delivered
54.12by mail to the county treasurer and the envelope containing the payment is postmarked
54.13within two business days of the due date prescribed under this section.
54.14EFFECTIVE DATE.This section is effective for property taxes payable in 2016
54.15and thereafter.

54.16    Sec. 17. Minnesota Statutes 2014, section 279.37, subdivision 2, is amended to read:
54.17    Subd. 2. Installment payments. (a) The owner of any such parcel, or any person to
54.18whom the right to pay taxes has been given by statute, mortgage, or other agreement, may
54.19make and file with the county auditor of the county in which the parcel is located a written
54.20offer to pay the current taxes each year before they become delinquent, or to contest
54.21the taxes under chapter 278 and agree to confess judgment for the amount provided, as
54.22determined by the county auditor. By filing the offer, the owner waives all irregularities
54.23in connection with the tax proceedings affecting the parcel and any defense or objection
54.24which the owner may have to the proceedings, and also waives the requirements of any
54.25notice of default in the payment of any installment or interest to become due pursuant to
54.26the composite judgment to be so entered. Unless the property is subject to subdivision 1a,
54.27with the offer, the owner shall (i) tender one-tenth of the amount of the delinquent taxes,
54.28costs, penalty, and interest, and (ii) tender all current year taxes and penalty due at the
54.29time the confession of judgment is entered. In the offer, the owner shall agree to pay the
54.30balance in nine equal installments, with interest as provided in section 279.03, payable
54.31annually on installments remaining unpaid from time to time, on or before December 31
54.32of each year following the year in which judgment was confessed.
54.33(b) For property which qualifies under section 279.03, subdivision 2, paragraph (b),
54.34each year the commissioner shall set the interest rate for offers made under paragraph (a)
54.35at the greater of five percent or two percent above the prime rate charged by banks during
55.1the six-month period ending on September 30 of that year, rounded to the nearest full
55.2percent, provided that the rate must not exceed the maximum annum rate specified under
55.3section 279.03, subdivision 1a. The rate of interest becomes effective on January 1 of the
55.4immediately succeeding year. The commissioner's determination under this subdivision is
55.5not a rule subject to the Administrative Procedure Act in chapter 14, including section
55.614.386 . If a default occurs in the payments under any confessed judgment entered under
55.7this paragraph, the taxes and penalties due are subject to the interest rate specified in
55.8section 279.03.
55.9For the purposes of this subdivision:
55.10(1) the term "prime rate charged by banks" means the average predominant prime
55.11rate quoted by commercial banks to large businesses, as determined by the Board of
55.12Governors of the Federal Reserve System; and
55.13(2) "default" means the cancellation of the confession of judgment due to
55.14nonpayment of the current year tax or failure to make any installment payment required by
55.15this confessed judgment within 60 days from the date on which payment was due.
55.16(c) The interest rate established at the time judgment is confessed is fixed for the
55.17duration of the judgment. By October 15 of each year, the commissioner of revenue must
55.18determine the rate of interest as provided under paragraph (b) and, by November 1 of each
55.19year, must certify the rate to the county auditor.
55.20(d) A qualified property owner eligible to enter into a second confession of judgment
55.21may do so at the interest rate provided in paragraph (b).
55.22(e) Repurchase agreements or contracts for repurchase for properties being
55.23repurchased under section 282.261 are not eligible to receive the interest rate under
55.24paragraph (b).
55.25(f) (e) The offer must be substantially as follows:
55.26"To the court administrator of the district court of ........... county, I, .....................,
55.27am the owner of the following described parcel of real estate located in ....................
55.28county, Minnesota:
55.29.............................. Upon that real estate there are delinquent taxes for the year ........., and
55.30prior years, as follows: (here insert year of delinquency and the total amount of delinquent
55.31taxes, costs, interest, and penalty). By signing this document I offer to confess judgment
55.32in the sum of $...... and waive all irregularities in the tax proceedings affecting these
55.33taxes and any defense or objection which I may have to them, and direct judgment to be
55.34entered for the amount stated above, minus the sum of $............, to be paid with this
55.35document, which is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and
55.36interest stated above. I agree to pay the balance of the judgment in nine or four equal,
56.1annual installments, with interest as provided in section 279.03, payable annually, on the
56.2installments remaining unpaid. I agree to pay the installments and interest on or before
56.3December 31 of each year following the year in which this judgment is confessed and
56.4current taxes each year before they become delinquent, or within 30 days after the entry of
56.5final judgment in proceedings to contest the taxes under chapter 278.
56.6Dated .............., ......."
56.7EFFECTIVE DATE.This section is effective for sales and repurchases occurring
56.8after June 30, 2015.

56.9    Sec. 18. Minnesota Statutes 2014, section 282.01, subdivision 4, is amended to read:
56.10    Subd. 4. Sale: method, requirements, effects. The sale authorized under
56.11subdivision 3 must be conducted by the county auditor at the county seat of the county in
56.12which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may
56.13be conducted in any county facility within the county. The sale must not be for less than
56.14the appraised value except as provided in subdivision 7a. The parcels must be sold for
56.15cash only, unless the county board of the county has adopted a resolution providing for
56.16their sale on terms, in which event the resolution controls with respect to the sale. When
56.17the sale is made on terms other than for cash only (1) a payment of at least ten percent
56.18of the purchase price must be made at the time of purchase, and the balance must be
56.19paid in no more than ten equal annual installments, or (2) the payments must be made
56.20in accordance with county board policy, but in no event may the board require more
56.21than 12 installments annually, and the contract term must not be for more than ten years.
56.22Standing timber or timber products must not be removed from these lands until an amount
56.23equal to the appraised value of all standing timber or timber products on the lands at the
56.24time of purchase has been paid by the purchaser. If a parcel of land bearing standing
56.25timber or timber products is sold at public auction for more than the appraised value, the
56.26amount bid in excess of the appraised value must be allocated between the land and the
56.27timber in proportion to their respective appraised values. In that case, standing timber or
56.28timber products must not be removed from the land until the amount of the excess bid
56.29allocated to timber or timber products has been paid in addition to the appraised value of
56.30the land. The purchaser is entitled to immediate possession, subject to the provisions of
56.31any existing valid lease made in behalf of the state.
56.32For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price
56.33is subject to interest at the rate determined pursuant to section 549.09. The unpaid balance
56.34of the purchase price for sales occurring after December 31, 1990, is subject to interest
56.35at the same rate as installment payments on confession of judgment for delinquent taxes
57.1determined in section 279.03, subdivision 1a 279.37, subdivision 2, paragraph (b). The
57.2interest rate is subject to change each year on the unpaid balance in the manner provided
57.3for rate changes in section 549.09 or 279.03, subdivision 1a, whichever, is applicable.
57.4Interest on the unpaid contract balance on sales occurring before July 1, 1982, is payable
57.5at the rate applicable to the sale at the time that the sale occurred.
57.6EFFECTIVE DATE.This section is effective for sales occurring after June 30, 2015.

57.7    Sec. 19. Minnesota Statutes 2014, section 282.261, subdivision 2, is amended to read:
57.8    Subd. 2. Interest rate. The unpaid balance on any repurchase contract approved
57.9by the county board is subject to interest at the same rate as installment payments on
57.10confession of judgment for delinquent taxes determined in section 279.03, subdivision 1a
57.11
279.37, subdivision 2, paragraph (b). The interest rate is subject to change each year on the
57.12unpaid balance in the manner provided for rate changes in section 279.03, subdivision 1a.
57.13EFFECTIVE DATE.This section is effective for repurchases occurring after June
57.1430, 2015.

57.15    Sec. 20. Minnesota Statutes 2014, section 290A.03, subdivision 13, is amended to read:
57.16    Subd. 13. Property taxes payable. "Property taxes payable" means the property tax
57.17exclusive of special assessments, penalties, and interest payable on a claimant's homestead
57.18after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2,
57.19and any other state paid property tax credits in any calendar year, and after any refund
57.20claimed and allowable under section 290A.04, subdivision 2h, that is first payable in
57.21the year that the property tax is payable. In the case of a claimant who makes ground
57.22lease payments, "property taxes payable" includes the amount of the payments directly
57.23attributable to the property taxes assessed against the parcel on which the house is located.
57.24No apportionment or reduction of the "property taxes payable" shall be required for the
57.25use of a portion of the claimant's homestead for a business purpose if the claimant does not
57.26deduct any business depreciation expenses for the use of a portion of the homestead, or
57.27elects to deduct expenses under section 280A of the Internal Revenue Code for a business
57.28operated in a home, in the determination of federal adjusted gross income. For homesteads
57.29which are manufactured homes as defined in section 273.125, subdivision 8, and for
57.30homesteads which are park trailers taxed as manufactured homes under section 168.012,
57.31subdivision 9
, "property taxes payable" shall also include 17 percent of the gross rent paid
57.32in the preceding year for the site on which the homestead is located. When a homestead
57.33is owned by two or more persons as joint tenants or tenants in common, such tenants
58.1shall determine between them which tenant may claim the property taxes payable on the
58.2homestead. If they are unable to agree, the matter shall be referred to the commissioner of
58.3revenue whose decision shall be final. Property taxes are considered payable in the year
58.4prescribed by law for payment of the taxes.
58.5In the case of a claim relating to "property taxes payable," the claimant must have
58.6owned and occupied the homestead on January 2 of the year in which the tax is payable
58.7and (i) the property must have been classified as homestead property pursuant to section
58.8273.124 , on or before December 15 of the assessment year to which the "property taxes
58.9payable" relate; or (ii) the claimant must provide documentation from the local assessor
58.10that application for homestead classification has been made on or before December 15
58.11of the year in which the "property taxes payable" were payable and that the assessor has
58.12approved the application.
58.13EFFECTIVE DATE.This section is effective for refunds based on rent paid after
58.14December 31, 2013, and property taxes payable after December 31, 2014.

58.15    Sec. 21. Minnesota Statutes 2014, section 290A.04, subdivision 2h, is amended to read:
58.16    Subd. 2h. Additional refund. (a) If the gross property taxes payable on a homestead
58.17increase more than 12 ten percent over the property taxes payable in the prior year on the
58.18same property that is owned and occupied by the same owner on January 2 of both years,
58.19and the amount of that increase is $100 or more, a claimant who is a homeowner shall
58.20be allowed an additional refund equal to 60 percent of the amount of the increase over
58.21the greater of 12 ten percent of the prior year's property taxes payable or $100. This
58.22subdivision shall not apply to any increase in the gross property taxes payable attributable
58.23to improvements made to the homestead after the assessment date for the prior year's
58.24taxes. This subdivision shall not apply to any increase in the gross property taxes payable
58.25attributable to the termination of valuation exclusions under section 273.11, subdivision 16.
58.26The maximum refund allowed under this subdivision is $1,000.
58.27(b) For purposes of this subdivision "gross property taxes payable" means property
58.28taxes payable determined without regard to the refund allowed under this subdivision.
58.29(c) In addition to the other proofs required by this chapter, each claimant under this
58.30subdivision shall file with the property tax refund return a copy of the property tax statement
58.31for taxes payable in the preceding year or other documents required by the commissioner.
58.32(d) Upon request, the appropriate county official shall make available the names and
58.33addresses of the property taxpayers who may be eligible for the additional property tax
58.34refund under this section. The information shall be provided on a magnetic computer
58.35disk. The county may recover its costs by charging the person requesting the information
59.1the reasonable cost for preparing the data. The information may not be used for any
59.2purpose other than for notifying the homeowner of potential eligibility and assisting the
59.3homeowner, without charge, in preparing a refund claim.
59.4EFFECTIVE DATE.This section is effective for refund claims based on taxes
59.5payable in 2016 and thereafter.

59.6    Sec. 22. Minnesota Statutes 2014, section 290B.03, subdivision 1, is amended to read:
59.7    Subdivision 1. Program qualifications. The qualifications for the senior citizens'
59.8property tax deferral program are as follows:
59.9(1) the property must be owned and occupied as a homestead by a person 65 years of
59.10age or older. In the case of a married couple, at least one of the spouses must be at least 65
59.11years old at the time the first property tax deferral is granted, regardless of whether the
59.12property is titled in the name of one spouse or both spouses, or titled in another way that
59.13permits the property to have homestead status, and the other spouse must be at least 62
59.14years of age;
59.15(2) the total household income of the qualifying homeowners, as defined in section
59.16290A.03, subdivision 5 , for the calendar year preceding the year of the initial application
59.17may not exceed $60,000;
59.18(3) the homestead must have been owned and occupied as the homestead of at least
59.19one of the qualifying homeowners for at least 15 five years prior to the year the initial
59.20application is filed;
59.21(4) there are no state or federal tax liens or judgment liens on the homesteaded
59.22property;
59.23(5) there are no mortgages or other liens on the property that secure future advances,
59.24except for those subject to credit limits that result in compliance with clause (6); and
59.25(6) the total unpaid balances of debts secured by mortgages and other liens on the
59.26property, including unpaid and delinquent special assessments and interest and any
59.27delinquent property taxes, penalties, and interest, but not including property taxes payable
59.28during the year, does not exceed 75 percent of the assessor's estimated market value for
59.29the year.
59.30EFFECTIVE DATE.This section is effective for applications for deferral of taxes
59.31payable in 2016 and thereafter.

59.32    Sec. 23. Minnesota Statutes 2014, section 290B.04, subdivision 1, is amended to read:
60.1    Subdivision 1. Initial application. (a) A taxpayer meeting the program
60.2qualifications under section 290B.03 may apply to the commissioner of revenue for the
60.3deferral of taxes. Applications are due on or before July November 1 for deferral of any
60.4of the following year's property taxes. A taxpayer may apply in the year in which the
60.5taxpayer becomes 65 years old, provided that no deferral of property taxes will be made
60.6until the calendar year after the taxpayer becomes 65 years old. The application, which
60.7shall be prescribed by the commissioner of revenue, shall include the following items and
60.8any other information which the commissioner deems necessary:
60.9    (1) the name, address, and Social Security number of the owner or owners;
60.10    (2) a copy of the property tax statement for the current payable year for the
60.11homesteaded property;
60.12    (3) the initial year of ownership and occupancy as a homestead;
60.13    (4) the owner's household income for the previous calendar year; and
60.14    (5) information on any mortgage loans or other amounts secured by mortgages or
60.15other liens against the property, for which purpose the commissioner may require the
60.16applicant to provide a copy of the mortgage note, the mortgage, or a statement of the
60.17balance owing on the mortgage loan provided by the mortgage holder. The commissioner
60.18may require the appropriate documents in connection with obtaining and confirming
60.19information on unpaid amounts secured by other liens.
60.20    The application must state that program participation is voluntary. The application
60.21must also state that the deferred amount depends directly on the applicant's household
60.22income, and that program participation includes authorization for the annual deferred
60.23amount, the cumulative deferral and interest that appear on each year's notice prepared by
60.24the county under subdivision 6, is public data.
60.25    The application must state that program participants may claim the property tax
60.26refund based on the full amount of property taxes eligible for the refund, including any
60.27deferred amounts. The application must also state that property tax refunds will be used to
60.28offset any deferral and interest under this program, and that any other amounts subject to
60.29revenue recapture under section 270A.03, subdivision 7, will also be used to offset any
60.30deferral and interest under this program.
60.31    (b) As part of the initial application process, the commissioner may require the
60.32applicant to obtain at the applicant's own cost and submit:
60.33    (1) if the property is registered property under chapter 508 or 508A, a copy of the
60.34original certificate of title in the possession of the county registrar of titles (sometimes
60.35referred to as "condition of register"); or
61.1    (2) if the property is abstract property, a report prepared by a licensed abstracter
61.2showing the last deed and any unsatisfied mortgages, liens, judgments, and state and
61.3federal tax lien notices which were recorded on or after the date of that last deed with
61.4respect to the property or to the applicant.
61.5    The certificate or report under clauses (1) and (2) need not include references to
61.6any documents filed or recorded more than 40 years prior to the date of the certification
61.7or report. The certification or report must be as of a date not more than 30 days prior
61.8to submission of the application.
61.9    The commissioner may also require the county recorder or county registrar of the
61.10county where the property is located to provide copies of recorded documents related to
61.11the applicant or the property, for which the recorder or registrar shall not charge a fee. The
61.12commissioner may use any information available to determine or verify eligibility under
61.13this section. The household income from the application is private data on individuals as
61.14defined in section 13.02, subdivision 12.
61.15EFFECTIVE DATE.This section is effective for applications for deferral of taxes
61.16payable in 2016 and thereafter.

61.17    Sec. 24. Minnesota Statutes 2014, section 469.194, subdivision 1, is amended to read:
61.18    Subdivision 1. Authority; aggregate limit. (a) The governing body of a
61.19municipality the city of Worthington may, by resolution, issue obligations under chapter
61.20475 to acquire land or interests in land for, and to design, engineer, and construct pipeline
61.21and other facilities and infrastructure necessary to complete the Lewis and Clark Regional
61.22Water System Project.
61.23(b) The maximum amount of bonds that may be issued under this section is limited to
61.24an aggregate a principal amount of $45,000,000 $50,000,000, plus any costs of issuance and
61.25amounts to be deposited into a debt service or reserve account. The Lewis and Clark Joint
61.26Powers Board shall allocate the limit among the municipalities designated in subdivision 2.
61.27EFFECTIVE DATE.This section is effective the day following final enactment
61.28without local approval under the provisions of Minnesota Statutes, section 645.023.

61.29    Sec. 25. Minnesota Statutes 2014, section 473H.09, is amended to read:
61.30473H.09 EARLY TERMINATION.
61.31    Subdivision 1. Public emergency. Termination of an agricultural preserve earlier
61.32than a date derived through application of section 473H.08 may be permitted only in the
61.33event of a public emergency upon petition from the owner or authority to the governor.
62.1The determination of a public emergency shall be by the governor through executive order
62.2pursuant to sections 4.035 and 12.01 to 12.46. The executive order shall identify the
62.3preserve, the reasons requiring the action and the date of termination.
62.4    Subd. 2. Death of owner. (a) Within 180 days of the death of an owner, an owner's
62.5spouse, or other qualifying person, the surviving owner may elect to terminate the
62.6agricultural preserve and the covenant allowing the land to be enrolled as an agricultural
62.7preserve by notifying the authority on a form provided by the commissioner of agriculture.
62.8Termination of a covenant under this subdivision must be executed and acknowledged in
62.9the manner required by law to execute and acknowledge a deed.
62.10(b) For purposes of this subdivision, the following definitions apply:
62.11(1) "qualifying person" includes a partner, shareholder, trustee for a trust that the
62.12decedent was the settlor or a beneficiary of, or member of an entity permitted to own
62.13agricultural land and engage in farming under section 500.24 that owned the agricultural
62.14preserve; and
62.15(2) "surviving owner" includes the executor of the estate of the decedent, trustee for a
62.16trust that the decedent was the settlor or a beneficiary of, or an entity permitted to own farm
62.17land under section 500.24 of which the decedent was a partner, shareholder, or member.
62.18(c) When an agricultural preserve is terminated under this subdivision, the property
62.19is subject to additional taxes in an amount equal to 50 percent of the taxes actually
62.20levied against the property for the current taxes payable year. The additional taxes are
62.21extended against the property on the tax list for taxes payable in the current year. The
62.22additional taxes must be distributed among the jurisdictions levying taxes on the property
62.23in proportion to the current year's taxes.
62.24EFFECTIVE DATE.This section is effective July 1, 2015.

62.25    Sec. 26. Laws 1996, chapter 471, article 3, section 51, is amended to read:
62.26    Sec. 51. RECREATION LEVY FOR SAWYER BY CARLTON COUNTY.
62.27    Subdivision 1. Levy authorized. Notwithstanding other law to the contrary, the
62.28Carlton county board of commissioners may levy in and for the unorganized township of
62.29Sawyer an amount up to $1,500 $2,000 annually for recreational purposes, beginning with
62.30taxes payable in 1997 and ending with taxes payable in 2006.
62.31    Subd. 2. Effective date. This section is effective June 1, 1996, without local
62.32approval applies to taxes payable in 2015 and thereafter, and is effective the day after the
62.33Carlton County Board of Commissioners and its chief clerical officer timely complete
62.34their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

63.1    Sec. 27. BOARD OF APPEALS AND EQUALIZATION IN-PERSON
63.2TRAINING.
63.3Notwithstanding any other law to the contrary, the Department of Revenue, in
63.4consultation with the Minnesota Association of Townships, shall offer not less than 12
63.5in-person board of appeals and equalization course trainings in 2015 and in 2016.
63.6EFFECTIVE DATE.This section is effective June 1, 2015.

63.7    Sec. 28. OPTIONAL CANCELLATION OF TAX FORFEITURE FOR CERTAIN
63.8BUILDINGS; ST. LOUIS COUNTY.
63.9    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
63.10have the meanings given.
63.11(b) "Building PIN" means a parcel identification number that is assigned to a
63.12building and does not include the land upon which the building is located; and
63.13(c) "Land PIN" means a parcel identification number that is assigned to land upon
63.14which a building associated with a building PIN is located.
63.15    Subd. 2. Optional cancellation of tax forfeiture for buildings with building PINs.
63.16Notwithstanding any law to the contrary, if any building associated with a building PIN
63.17and located in St. Louis County forfeits or has forfeited to the state of Minnesota before,
63.18on, or after the date of enactment of this section because of nonpayment of delinquent
63.19property taxes, special assessments, penalties, interest, or costs, the county auditor of St.
63.20Louis County may, with approval from the county board and the commissioner of revenue:
63.21(1) cancel the certificate of forfeiture and set aside the forfeiture without reinstating
63.22the unpaid property taxes, special assessments, penalties, interest, or costs; and
63.23(2) combine the building PIN with its associated land PIN. When this occurs, the
63.24land PIN is the only surviving parcel identification number, and includes both the building
63.25and the land upon which the building is located.
63.26    Subd. 3. Cancellation of tax forfeiture; taxation through date of cancellation.
63.27Notwithstanding any law to the contrary, if the county auditor of St. Louis County cancels
63.28a certificate of forfeiture and sets aside a forfeiture in accordance with subdivision 2,
63.29the affected building is not subject to taxation from the date of forfeiture through the
63.30date of cancellation.
63.31    Subd. 4. Appropriation. $1,000,000 in fiscal year 2016 only is appropriated from
63.32the general fund to the commissioner of revenue for a grant to St. Louis County that shall
63.33be paid on July 1, 2015. The county may only use the grant to remove any building,
64.1upon the request of the landowner, after the county has complied with the provisions of
64.2subdivision 2.
64.3EFFECTIVE DATE.This section is effective the day following final enactment.

64.4    Sec. 29. STUDY AND REPORT OF PRODUCTION BASED VALUATION OF
64.5AGRICULTURAL LAND.
64.6(a) The commissioner of agriculture and the commissioner of revenue shall conduct
64.7a study and prepare a report on the possibility of valuing agricultural land in the state for
64.8property tax purposes based on the value of agricultural commodities produced minus the
64.9cost of agricultural production.
64.10(b) The study must, to the extent practicable under the appropriation and the time
64.11available:
64.12(1) assess the availability and accuracy of data sources necessary to determine the
64.13productivity of agricultural land, the prices of agricultural commodities, and the costs of
64.14production, for all agricultural land across the state;
64.15(2) analyze the potential impacts on other types of properties and on local
64.16governments if the state were to adopt a system valuing agricultural land based on
64.17production value, including the impacts of any changes in state aids;
64.18(3) identify types of agricultural properties that are not directly used in agricultural
64.19production, and propose approaches for valuing those properties within a production
64.20value based system;
64.21(4) assign values to agricultural land based on the best currently available data, and
64.22compare the resulting values to valuations currently used for property tax purposes; to the
64.23extent possible, analyze what that relationship would be in years other than the study year;
64.24(5) analyze the potential volatility of land values under a production value based
64.25system and propose approaches for reducing the effects of agricultural land value volatility
64.26on other types of properties;
64.27(6) analyze the potential tax shifts between different types of agricultural properties
64.28under a production value based system;
64.29(7) analyze and make recommendations for how a production value based system
64.30would be administered in terms of the role of the Department of Revenue, county and
64.31local assessors, and other agencies;
64.32(8) analyze how appeals of assessments by property owners would be handled
64.33under a production value based system;
64.34(9) analyze how a production value based system would affect the green acres and
64.35metropolitan agricultural preserves programs;
65.1(10) identify other states that have adopted production based valuation systems and
65.2describe how they have been implemented, with special emphasis upon neighboring
65.3states; and
65.4(11) identify possible alternative methods of valuing agricultural land in addition to
65.5market value and production based agricultural land valuation.
65.6(c) The commissioners must seek input from the dean of the University of
65.7Minnesota College of Food, Agricultural, and Natural Resource Sciences in the design
65.8and implementation of the study.
65.9(d) The commissioners must request the involvement and participation of
65.10stakeholders including groups representing assessors and groups representing agricultural
65.11property owners.
65.12(e) The commissioners shall report the findings of the study to the committees of the
65.13house of representatives and senate having jurisdiction over taxes by February 1, 2017,
65.14and file the report as required by Minnesota Statutes, section 3.195.
65.15(f) $200,000 in fiscal year 2016 is appropriated from the general fund to the
65.16commissioner of revenue for purposes of preparing the report under this section. This is a
65.17onetime appropriation and is not added to the base.
65.18EFFECTIVE DATE.This section is effective the day following final enactment.

65.19    Sec. 30. TOWN OF TOFTE; MUNICIPAL HOUSING.
65.20(a) Notwithstanding the provisions of Laws 1988, chapter 516, and Laws 1988,
65.21chapter 719, article 19, section 27, the town of Tofte may own and operate within its
65.22boundary up to 12 units of housing for individuals over 55 years of age or families with
65.23one member of the household that is over 55 year of age.
65.24(b) The town of Tofte shall have the powers of a city under Minnesota Statutes,
65.25chapter 462C, and the powers of an authority under Minnesota Statutes, sections 469.001
65.26to 469.047, with respect to this section. Upon the approval of the town board, the town of
65.27Tofte may levy the tax described in Minnesota Statutes, section 469.033, subdivision 6.
65.28(c) Nothing in this section shall limit the power of the Cook County/Grand Marais
65.29Joint Economic Development Authority to exercise jurisdiction within the town of Tofte.
65.30The authority to undertake new projects under this section shall expire on June 30, 2016.
65.31EFFECTIVE DATE.This section is effective the day after compliance by
65.32the governing body of the town of Tofte with Minnesota Statutes, section 645.021,
65.33subdivisions 2 and 3.

66.1    Sec. 31. APPROPRIATION.
66.2$1,130,000 in fiscal year 2016 only is appropriated from the general fund to the
66.3commissioner of revenue for a grant to Hennepin County. Of this amount, $880,000 must
66.4be used for the North Branch Library EMERGE Career and Technology Center, and
66.5$250,000 must be used for the Cedar Riverside Opportunity Center.

66.6    Sec. 32. REPEALER.
66.7(a) Minnesota Statutes 2014, section 272.02, subdivision 23, is repealed.
66.8(b) Minnesota Statutes 2014, section 275.025, subdivision 4, is repealed.
66.9(c) Minnesota Statutes 2014, section 469.194, subdivisions 2 and 4, are repealed.
66.10EFFECTIVE DATE.Paragraph (a) is effective for taxes payable in 2015.
66.11Paragraph (b) is effective for taxes payable in 2016 and thereafter. Paragraph (c) is
66.12effective the day following final enactment.

66.13ARTICLE 3
66.14LOCAL DEVELOPMENT

66.15    Section 1. Minnesota Statutes 2014, section 469.1763, subdivision 1, is amended to read:
66.16    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
66.17have the meanings given.
66.18(b) "Activities" means acquisition of property, clearing of land, site preparation, soils
66.19correction, removal of hazardous waste or pollution, installation of utilities, construction
66.20of public or private improvements, and other similar activities, but only to the extent that
66.21tax increment revenues may be spent for such purposes under other law.
66.22(c) "Third party" means an entity other than (1) the person receiving the benefit
66.23of assistance financed with tax increments, or (2) the municipality or the development
66.24authority or other person substantially under the control of the municipality.
66.25(d) "Revenues derived from tax increments paid by properties in the district" means
66.26only tax increment as defined in section 469.174, subdivision 25, clause (1), and does
66.27not include tax increment as defined in section 469.174, subdivision 25, clauses (2),
66.28(3), and (4) to (5).
66.29EFFECTIVE DATE.This section is effective the day following final enactment.

66.30    Sec. 2. Minnesota Statutes 2014, section 469.1763, subdivision 2, is amended to read:
66.31    Subd. 2. Expenditures outside district. (a) For each tax increment financing
66.32district, an amount equal to at least 75 percent of the total revenue derived from tax
67.1increments paid by properties in the district must be expended on activities in the district
67.2or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities
67.3in the district or to pay, or secure payment of, debt service on credit enhanced bonds.
67.4For districts, other than redevelopment districts for which the request for certification
67.5was made after June 30, 1995, the in-district percentage for purposes of the preceding
67.6sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax
67.7increments paid by properties in the district may be expended, through a development fund
67.8or otherwise, on activities outside of the district but within the defined geographic area of
67.9the project except to pay, or secure payment of, debt service on credit enhanced bonds.
67.10For districts, other than redevelopment districts for which the request for certification was
67.11made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is
67.1220 percent. The revenue revenues derived from tax increments for paid by properties in
67.13the district that are expended on costs under section 469.176, subdivision 4h, paragraph
67.14(b), may be deducted first before calculating the percentages that must be expended within
67.15and without the district.
67.16    (b) In the case of a housing district, a housing project, as defined in section 469.174,
67.17subdivision 11
, is an activity in the district.
67.18    (c) All administrative expenses are for activities outside of the district, except that
67.19if the only expenses for activities outside of the district under this subdivision are for
67.20the purposes described in paragraph (d), administrative expenses will be considered as
67.21expenditures for activities in the district.
67.22    (d) The authority may elect, in the tax increment financing plan for the district,
67.23to increase by up to ten percentage points the permitted amount of expenditures for
67.24activities located outside the geographic area of the district under paragraph (a). As
67.25permitted by section 469.176, subdivision 4k, the expenditures, including the permitted
67.26expenditures under paragraph (a), need not be made within the geographic area of the
67.27project. Expenditures that meet the requirements of this paragraph are legally permitted
67.28expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j.
67.29To qualify for the increase under this paragraph, the expenditures must:
67.30    (1) be used exclusively to assist housing that meets the requirement for a qualified
67.31low-income building, as that term is used in section 42 of the Internal Revenue Code; and
67.32    (2) not exceed the qualified basis of the housing, as defined under section 42(c) of
67.33the Internal Revenue Code, less the amount of any credit allowed under section 42 of
67.34the Internal Revenue Code; and
67.35    (3) be used to:
67.36    (i) acquire and prepare the site of the housing;
68.1    (ii) acquire, construct, or rehabilitate the housing; or
68.2    (iii) make public improvements directly related to the housing; or
68.3(4) be used to develop housing:
68.4(i) if the market value of the housing does not exceed the lesser of:
68.5(A) 150 percent of the average market value of single-family homes in that
68.6municipality; or
68.7(B) $200,000 for municipalities located in the metropolitan area, as defined in
68.8section 473.121, or $125,000 for all other municipalities; and
68.9(ii) if the expenditures are used to pay the cost of site acquisition, relocation,
68.10demolition of existing structures, site preparation, and pollution abatement on one or
68.11more parcels, if the parcel contains a residence containing one to four family dwelling
68.12units that has been vacant for six or more months and is in foreclosure as defined in
68.13section 325N.10, subdivision 7, but without regard to whether the residence is the owner's
68.14principal residence, and only after the redemption period has expired.
68.15    (e) For a district created within a biotechnology and health sciences industry zone
68.16as defined in Minnesota Statutes 2012, section 469.330, subdivision 6, or for an existing
68.17district located within such a zone, tax increment derived from such a district may be
68.18expended outside of the district but within the zone only for expenditures required for the
68.19construction of public infrastructure necessary to support the activities of the zone, land
68.20acquisition, and other redevelopment costs as defined in section 469.176, subdivision 4j.
68.21These expenditures are considered as expenditures for activities within the district. The
68.22authority provided by this paragraph expires for expenditures made after the later of (1)
68.23December 31, 2015, or (2) the end of the five-year period beginning on the date the district
68.24was certified, provided that date was before January 1, 2016.
68.25(f) The authority under paragraph (d), clause (4), expires on December 31, 2016.
68.26Increments may continue to be expended under this authority after that date, if they are
68.27used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph
68.28(a), if December 31, 2016, is considered to be the last date of the five-year period after
68.29certification under that provision.
68.30EFFECTIVE DATE.This section is effective the day following final enactment.

68.31    Sec. 3. Minnesota Statutes 2014, section 469.1763, subdivision 3, is amended to read:
68.32    Subd. 3. Five-year rule. (a) Revenues derived from tax increments paid by
68.33properties in the district are considered to have been expended on an activity within the
68.34district under subdivision 2 only if one of the following occurs:
69.1(1) before or within five years after certification of the district, the revenues are
69.2actually paid to a third party with respect to the activity;
69.3(2) bonds, the proceeds of which must be used to finance the activity, are issued and
69.4sold to a third party before or within five years after certification, the revenues are spent
69.5to repay the bonds, and the proceeds of the bonds either are, on the date of issuance,
69.6reasonably expected to be spent before the end of the later of (i) the five-year period, or
69.7(ii) a reasonable temporary period within the meaning of the use of that term under section
69.8148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve
69.9or replacement fund;
69.10(3) binding contracts with a third party are entered into for performance of the
69.11activity before or within five years after certification of the district and the revenues are
69.12spent under the contractual obligation;
69.13(4) costs with respect to the activity are paid before or within five years after
69.14certification of the district and the revenues are spent to reimburse a party for payment
69.15of the costs, including interest on unreimbursed costs; or
69.16(5) expenditures are made for housing purposes as permitted by subdivision 2,
69.17paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted
69.18by subdivision 2, paragraph (e).
69.19(b) For purposes of this subdivision, bonds include subsequent refunding bonds if
69.20the original refunded bonds meet the requirements of paragraph (a), clause (2).
69.21(c) For a redevelopment district or a renewal and renovation district certified after
69.22June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a)
69.23are extended to ten years after certification of the district. For a redevelopment district
69.24certified after April 20, 2009, and before June 30, 2012, the five-year periods described in
69.25paragraph (a) are extended to eight years after certification of the district. This extension is
69.26provided primarily to accommodate delays in development activities due to unanticipated
69.27economic circumstances.
69.28EFFECTIVE DATE.This section is effective the day following final enactment.

69.29    Sec. 4. Minnesota Statutes 2014, section 469.178, subdivision 7, is amended to read:
69.30    Subd. 7. Interfund loans. (a) The authority or municipality may advance or loan
69.31money to finance expenditures under section 469.176, subdivision 4, from its general fund
69.32or any other fund under which it has legal authority to do so.
69.33    (b) Not later than 60 days after money is transferred, advanced, or spent, whichever
69.34is earliest, the loan or advance must be authorized, by resolution of the governing body or
70.1of the authority, whichever has jurisdiction over the fund from which the advance or loan
70.2is authorized, before money is transferred, advanced, or spent, whichever is earliest.
70.3    (c) The resolution may generally grant to the municipality or the authority the power
70.4to make interfund loans under one or more tax increment financing plans or for one or
70.5more districts. The resolution may be adopted before or after the adoption of the tax
70.6increment financing plan or the creation of the tax increment financing district from which
70.7the advance or loan is to be repaid.
70.8    (d) The terms and conditions for repayment of the loan must be provided in
70.9writing and. The written terms and conditions may be in any form, but must include, at
70.10a minimum, the principal amount, the interest rate, and maximum term. Written terms
70.11may be modified or amended in writing by the municipality or the authority before the
70.12latest decertification of the tax increment financing district from which the interfund loan
70.13will be paid. The maximum rate of interest permitted to be charged is limited to the
70.14greater of the rates specified under section 270C.40 or 549.09 as of the date the loan or
70.15advance is authorized, unless the written agreement states that the maximum interest rate
70.16will fluctuate as the interest rates specified under section 270C.40 or 549.09 are from time
70.17to time adjusted. Loans or advances may be structured as draw-down or line-of-credit
70.18obligations of the lending fund.
70.19    (e) The authority shall report in the annual report submitted pursuant to section
70.20469.175, subdivision 6:
70.21    (1) the amount of any interfund loan or advance made in a calendar year; and
70.22    (2) any amendment of an interfund loan or advance made in a calendar year.
70.23EFFECTIVE DATE.This section is effective the day following final enactment
70.24and applies to all districts, regardless of when the request for certification was made.

70.25    Sec. 5. CITY OF COON RAPIDS; TAX INCREMENT FINANCING.
70.26Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision
70.271b, or any other law to the contrary, the city of Coon Rapids may collect tax increment
70.28from District 6-1 Port Riverwalk through December 31, 2038.
70.29EFFECTIVE DATE.This section is effective upon compliance by the governing
70.30bodies of the city of Coon Rapids, Anoka County, and Independent School District No.
70.3111 with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and
70.32645.021, subdivision 3.

70.33    Sec. 6. CITY OF COTTAGE GROVE; TAX INCREMENT FINANCING.
71.1The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that
71.2activities must be undertaken within a five-year period from the date of certification of a
71.3tax increment financing district, are considered to be met for Tax Increment Financing
71.4District No. 1-12 (Gateway North), administered by the Cottage Grove Economic
71.5Development Authority, if the activities are undertaken prior to January 1, 2017.
71.6EFFECTIVE DATE.This section is effective upon compliance by the chief clerical
71.7officer of the governing body of the city of Cottage Grove with the requirements of
71.8Minnesota Statutes, section 645.021, subdivisions 2 and 3.

71.9    Sec. 7. CITY OF RICHFIELD; EXTENSION OF DISTRICT.
71.10Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other
71.11law to the contrary, the city of Richfield and the Housing and Redevelopment Authority in
71.12and for the city of Richfield may elect to extend the duration limit of the redevelopment
71.13tax increment financing district known as the Cedar Avenue Tax Increment Financing
71.14District established by Laws 2005, chapter 152, article 2, section 25, by ten years.
71.15EFFECTIVE DATE.This section is effective upon compliance by the city
71.16of Richfield, Hennepin County, and Independent School District No. 280 with the
71.17requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021,
71.18subdivisions 2 and 3.

71.19    Sec. 8. CITY OF ST. PAUL; TIF AUTHORITY.
71.20    Subdivision 1. Establishment. Under the special rules in subdivision 2, the
71.21housing and redevelopment authority of the city of St. Paul may establish one or
71.22more redevelopment tax increment financing districts located wholly within the area
71.23of the former Ford Motor Company plant properties, consisting of two tax parcels,
71.2417-28-23-31-0001 and 17-28-23-13-0002, and adjacent roads and rights-of-way.
71.25    Subd. 2. Special rules. (a) If the authority establishes any tax increment district
71.26under this section, the following special rules apply:
71.27(1) the districts are deemed to meet all the requirements of Minnesota Statutes,
71.28section 469.174, subdivision 10;
71.29(2) any expenditure for, or payment of bonds issued to finance, activities within the
71.30area described in subdivision 1 is not subject to the restrictions under Minnesota Statutes,
71.31section 469.1763, for any district established under this section, except that expenditures
72.1for activities outside the area defined in subdivision 1 are subject to the percentage limits
72.2under Minnesota Statutes, section 469.1763, subdivision 2, paragraph (a); and
72.3(3) Minnesota Statutes, section 469.176, subdivision 4j, does not apply.
72.4(b) Except as otherwise provided in paragraph (a), the provisions of Minnesota
72.5Statutes, sections 469.174 to 469.1794, apply to districts established under this section.
72.6    Subd. 3. Expiration. The authority to request certification of districts under this
72.7section expires June 30, 2020, unless the city has requested certification of at least one
72.8district by that date. The authority to request certification of any district under this section
72.9expires June 30, 2030.
72.10EFFECTIVE DATE.This section is effective upon approval by the governing
72.11body of the city of St. Paul and compliance with the requirements of Minnesota Statutes,
72.12section 645.021.

72.13ARTICLE 4
72.14SALES AND USE TAXES

72.15    Section 1. Minnesota Statutes 2014, section 289A.20, subdivision 4, is amended to read:
72.16    Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and
72.17payable to the commissioner monthly on or before the 20th day of the month following the
72.18month in which the taxable event occurred, or following another reporting period as the
72.19commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph
72.20(f) or (g), except that use taxes due on an annual use tax return as provided under section
72.21289A.11, subdivision 1 , are payable by April 15 following the close of the calendar year.
72.22    (b) A vendor having a liability of $250,000 or more during a fiscal year ending June
72.2330 must remit the June liability for the next year in the following manner:
72.24    (1) Two business days before June 30 of the year, the vendor must remit 81.4 80
72.25percent of the estimated June liability to the commissioner.
72.26    (2) On or before August 20 of the year, the vendor must pay any additional amount
72.27of tax not remitted in June.
72.28    (c) A vendor having a liability of:
72.29    (1) $10,000 or more, but less than $250,000 during a fiscal year ending June 30,
72.302013, and fiscal years thereafter, must remit by electronic means all liabilities on returns
72.31due for periods beginning in all subsequent calendar years on or before the 20th day of
72.32the month following the month in which the taxable event occurred, or on or before the
72.3320th day of the month following the month in which the sale is reported under section
72.34289A.18, subdivision 4 ; or
73.1(2) $250,000 or more, during a fiscal year ending June 30, 2013, and fiscal years
73.2thereafter, must remit by electronic means all liabilities in the manner provided in
73.3paragraph (a) on returns due for periods beginning in the subsequent calendar year, except
73.4for 81.4 80 percent of the estimated June liability, which is due two business days before
73.5June 30. The remaining amount of the June liability is due on August 20.
73.6(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's
73.7religious beliefs from paying electronically shall be allowed to remit the payment by mail.
73.8The filer must notify the commissioner of revenue of the intent to pay by mail before
73.9doing so on a form prescribed by the commissioner. No extra fee may be charged to a
73.10person making payment by mail under this paragraph. The payment must be postmarked
73.11at least two business days before the due date for making the payment in order to be
73.12considered paid on a timely basis.
73.13EFFECTIVE DATE.This section is effective for taxes due and payable after
73.14July 1, 2015.

73.15    Sec. 2. Minnesota Statutes 2014, section 289A.60, subdivision 15, is amended to read:
73.16    Subd. 15. Accelerated payment of June sales tax liability; penalty for
73.17underpayment. For payments made after December 31, 2013, if a vendor is required by
73.18law to submit an estimation of June sales tax liabilities and 81.4 80 percent payment by a
73.19certain date, the vendor shall pay a penalty equal to ten percent of the amount of actual
73.20June liability required to be paid in June less the amount remitted in June. The penalty
73.21must not be imposed, however, if the amount remitted in June equals the lesser of 81.4 80
73.22percent of the preceding May's liability or 81.4 percent of the average monthly liability for
73.23the previous calendar year.
73.24EFFECTIVE DATE.This section is effective for taxes due and payable after
73.25July 1, 2015.

73.26    Sec. 3. Minnesota Statutes 2014, section 297A.62, subdivision 3, is amended to read:
73.27    Subd. 3. Manufactured housing and park trailers; modular housing. (a) For
73.28retail sales of manufactured homes as defined in section 327.31, subdivision 6, for
73.29residential uses, the sales tax under subdivisions 1 and 1a is imposed on 65 percent of the
73.30dealer's cost of the manufactured home. For retail sales of new or used park trailers, as
73.31defined in section 168.002, subdivision 23, the sales tax under subdivisions 1 and 1a is
73.32imposed on 65 percent of the sales price of the park trailer.
74.1(b) For retail sales of a modular home, as defined in section 297A.668, subdivision
74.28, paragraph (b), for residential use, the sales tax under subdivisions 1 and 1a is imposed
74.3on 65 percent of the dealer's cost of the modular home.
74.4EFFECTIVE DATE.This section is effective for sales and purchases made after
74.5June 30, 2015.

74.6    Sec. 4. Minnesota Statutes 2014, section 297A.67, subdivision 7a, is amended to read:
74.7    Subd. 7a. Accessories and supplies. Accessories and supplies required for the
74.8effective use of durable medical equipment for home use only or purchased in a transaction
74.9covered by Medicare or, Medicaid, or other health insurance plan, that are not already
74.10exempt under subdivision 7, are exempt. Accessories and supplies for the effective use
74.11of a prosthetic device, that are not already exempt under subdivision 7, are exempt.
74.12For purposes of this subdivision "durable medical equipment," "prosthetic device,"
74.13"Medicare," and "Medicaid" have the definitions given in subdivision 7., and "other health
74.14insurance plan" means a health plan defined in section 62A.011, subdivision 3, or 62V.02,
74.15subdivision 4, or a qualified health plan defined in section 62A.011, subdivision 7.
74.16EFFECTIVE DATE.This section is effective retroactively for sales and purchases
74.17made after April 1, 2009. Any vendor who paid sales or use tax on accessories and
74.18supplies purchased in a transaction covered by a health insurance plan defined in section
74.1962A.011, subdivision 3, or 62V.02, subdivision 4, or a qualified health plan defined in
74.20section 62A.011, subdivision 7, that are not already exempt under Minnesota Statutes,
74.21section 297A.67, subdivision 7, and that were sold after April 1, 2009, and before July
74.221, 2015, may apply for a refund of the sales or use tax paid in the manner provided in
74.23Minnesota Statutes, section 289A.50, subdivision 1, but only if the vendor did not collect
74.24and remit sales tax on the accessories and supplies for which a refund is claimed. Interest
74.25on the refund shall be paid at the rate in Minnesota Statutes, section 270C.405, from 90
74.26days after the refund claim is filed with the commissioner of revenue. The amount to make
74.27the refunds is annually appropriated to the commissioner of revenue from the general
74.28fund. Refunds must not be filed until after June 30, 2015. Notwithstanding limitations
74.29on claims for refunds under Minnesota Statutes, section 289A.40, claims may be filed
74.30with the commissioner until June 30, 2016.

74.31    Sec. 5. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision
74.32to read:
75.1    Subd. 34. Precious metal bullion. (a) Sales of precious metal bullion by registered
75.2dealers under section 80G.02 that are required to be reported under Internal Revenue
75.3Service revenue procedure 92-103 are exempt. For purposes of this subdivision, "precious
75.4metal bullion" means bullion that would qualify for the exception for certain coins and
75.5bullion under section 408(m)(3) of the Internal Revenue Code of 1986 as amended
75.6through December 31, 2014. "Precious metal bullion" does not include jewelry, certified
75.7or graded coins, numismatic coins, or works of art.
75.8(b) The intent of this subdivision is to afford the sale of precious metal bullion
75.9similar treatment as afforded the sale of stock, bullion exchange traded funds, bonds,
75.10and other investment instruments.
75.11EFFECTIVE DATE.This section is effective for sales and purchases made after
75.12June 30, 2015.

75.13    Sec. 6. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision
75.14to read:
75.15    Subd. 35. Car seats. The sale of an infant or child car seat, including a booster seat,
75.16that meets the requirements of a child passenger restraint system under motor vehicle
75.17safety standards established by the United States Department of Transportation is exempt.
75.18EFFECTIVE DATE.This section is effective for sales and purchases made after
75.19June 30, 2015.

75.20    Sec. 7. Minnesota Statutes 2014, section 297A.68, subdivision 5, is amended to read:
75.21    Subd. 5. Capital equipment. (a) Capital equipment is exempt. The tax must be
75.22imposed and collected as if the rate under section 297A.62, subdivision 1, applied, and
75.23then refunded in the manner provided in section 297A.75.
75.24"Capital equipment" means machinery and equipment purchased or leased, and used
75.25in this state by the purchaser or lessee primarily for manufacturing, fabricating, mining,
75.26or refining tangible personal property to be sold ultimately at retail if the machinery and
75.27equipment are essential to the integrated production process of manufacturing, fabricating,
75.28mining, or refining. Capital equipment also includes machinery and equipment
75.29used primarily to electronically transmit results retrieved by a customer of an online
75.30computerized data retrieval system.
75.31(b) Capital equipment includes, but is not limited to:
75.32(1) machinery and equipment used to operate, control, or regulate the production
75.33equipment;
76.1(2) machinery and equipment used for research and development, design, quality
76.2control, and testing activities;
76.3(3) environmental control devices that are used to maintain conditions such as
76.4temperature, humidity, light, or air pressure when those conditions are essential to and are
76.5part of the production process;
76.6(4) materials and supplies used to construct and install machinery or equipment;
76.7(5) repair and replacement parts, including accessories, whether purchased as spare
76.8parts, repair parts, or as upgrades or modifications to machinery or equipment;
76.9(6) materials used for foundations that support machinery or equipment;
76.10(7) materials used to construct and install special purpose buildings used in the
76.11production process;
76.12(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed
76.13as part of the delivery process regardless if mounted on a chassis, repair parts for
76.14ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and
76.15(9) machinery or equipment used for research, development, design, or production
76.16of computer software.
76.17(c) Capital equipment does not include the following:
76.18(1) motor vehicles taxed under chapter 297B;
76.19(2) machinery or equipment used to receive or store raw materials;
76.20(3) building materials, except for materials included in paragraph (b), clauses (6)
76.21and (7);
76.22(4) machinery or equipment used for nonproduction purposes, including, but not
76.23limited to, the following: plant security, fire prevention, first aid, and hospital stations;
76.24support operations or administration; pollution control; and plant cleaning, disposal of
76.25scrap and waste, plant communications, space heating, cooling, lighting, or safety;
76.26(5) farm machinery and aquaculture production equipment as defined by section
76.27297A.61 , subdivisions 12 and 13;
76.28(6) machinery or equipment purchased and installed by a contractor as part of an
76.29improvement to real property;
76.30(7) machinery and equipment used by restaurants in the furnishing, preparing, or
76.31serving of prepared foods as defined in section 297A.61, subdivision 31;
76.32(8) machinery and equipment used to furnish the services listed in section 297A.61,
76.33subdivision 3
, paragraph (g), clause (6), items (i) to (vi) and (viii);
76.34(9) machinery or equipment used in the transportation, transmission, or distribution
76.35of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines,
76.36tanks, mains, or other means of transporting those products. This clause does not apply to
77.1machinery or equipment used to blend petroleum or biodiesel fuel as defined in section
77.2239.77 ; or
77.3(10) any other item that is not essential to the integrated process of manufacturing,
77.4fabricating, mining, or refining.
77.5(d) For purposes of this subdivision:
77.6(1) "Equipment" means independent devices or tools separate from machinery but
77.7essential to an integrated production process, including computers and computer software,
77.8used in operating, controlling, or regulating machinery and equipment; and any subunit or
77.9assembly comprising a component of any machinery or accessory or attachment parts of
77.10machinery, such as tools, dies, jigs, patterns, and molds.
77.11(2) "Fabricating" means to make, build, create, produce, or assemble components or
77.12property to work in a new or different manner.
77.13(3) "Integrated production process" means a process or series of operations through
77.14which tangible personal property is manufactured, fabricated, mined, or refined. For
77.15purposes of this clause, (i) manufacturing begins with the removal of raw materials
77.16from inventory and ends when the last process prior to loading for shipment has been
77.17completed; (ii) fabricating begins with the removal from storage or inventory of the
77.18property to be assembled, processed, altered, or modified and ends with the creation
77.19or production of the new or changed product; (iii) mining begins with the removal of
77.20overburden from the site of the ores, minerals, stone, peat deposit, or surface materials and
77.21ends when the last process before stockpiling is completed; and (iv) refining begins with
77.22the removal from inventory or storage of a natural resource and ends with the conversion
77.23of the item to its completed form.
77.24(4) "Machinery" means mechanical, electronic, or electrical devices, including
77.25computers and computer software, that are purchased or constructed to be used for the
77.26activities set forth in paragraph (a), beginning with the removal of raw materials from
77.27inventory through completion of the product, including packaging of the product.
77.28(5) "Machinery and equipment used for pollution control" means machinery and
77.29equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity
77.30described in paragraph (a).
77.31(6) "Manufacturing" means an operation or series of operations where raw materials
77.32are changed in form, composition, or condition by machinery and equipment and which
77.33results in the production of a new article of tangible personal property. For purposes of
77.34this subdivision, "manufacturing" includes the generation of electricity or steam to be
77.35sold at retail.
77.36(7) "Mining" means the extraction of minerals, ores, stone, or peat.
78.1(8) "Online data retrieval system" means a system whose cumulation of information
78.2is equally available and accessible to all its customers.
78.3(9) "Primarily" means machinery and equipment used 50 percent or more of the time
78.4in an activity described in paragraph (a).
78.5(10) "Refining" means the process of converting a natural resource to an intermediate
78.6or finished product, including the treatment of water to be sold at retail.
78.7(11) This subdivision does not apply to telecommunications equipment as provided
78.8in subdivision 35a, and does not apply to wire, cable, fiber, or poles, or conduit for
78.9telecommunications services.
78.10EFFECTIVE DATE.This section is effective for sales and purchases made after
78.11June 30, 2015.

78.12    Sec. 8. Minnesota Statutes 2014, section 297A.68, subdivision 35a, is amended to read:
78.13    Subd. 35a. Telecommunications or pay television services machinery and
78.14equipment. (a) Telecommunications or pay television services machinery and equipment
78.15purchased or leased for use directly by a telecommunications or pay television services
78.16provider primarily in the provision of telecommunications or pay television services
78.17that are ultimately to be sold at retail are exempt, regardless of whether purchased by
78.18the owner, a contractor, or a subcontractor.
78.19(b) For purposes of this subdivision, "telecommunications or pay television
78.20machinery and equipment" includes, but is not limited to:
78.21(1) machinery, equipment, and fixtures utilized in receiving, initiating,
78.22amplifying, processing, transmitting, retransmitting, recording, switching, or monitoring
78.23telecommunications or pay television services, such as computers, transformers, amplifiers,
78.24routers, bridges, repeaters, multiplexers, and other items performing comparable functions;
78.25(2) machinery, equipment, and fixtures used in the transportation of
78.26telecommunications or pay television services, such as radio transmitters and receivers,
78.27satellite equipment, microwave equipment, and other transporting media, but not wire,
78.28cable, including fiber, poles, or and conduit, but not including wire, cable, or poles;
78.29(3) ancillary machinery, equipment, and fixtures that regulate, control, protect, or
78.30enable the machinery in clauses (1) and (2) to accomplish its intended function, such as
78.31auxiliary power supply, test equipment, towers, heating, ventilating, and air conditioning
78.32equipment necessary to the operation of the telecommunications or pay television
78.33equipment; and software necessary to the operation of the telecommunications or pay
78.34television equipment; and
79.1(4) repair and replacement parts, including accessories, whether purchased as spare
79.2parts, repair parts, or as upgrades or modifications to qualified machinery or equipment.
79.3EFFECTIVE DATE.This section is effective for sales and purchases made after
79.4June 30, 2015.

79.5    Sec. 9. Minnesota Statutes 2014, section 297A.70, subdivision 4, is amended to read:
79.6    Subd. 4. Sales to nonprofit groups. (a) All sales, except those listed in paragraph
79.7(b) (c), to the following "nonprofit organizations" are exempt if the item purchased is
79.8used in the performance of their exempt function. The exemptions under this paragraph
79.9do not apply to:
79.10(1) a corporation, society, association, foundation, or institution organized and
79.11operated exclusively for charitable, religious, or educational purposes if the item
79.12purchased is used in the performance of charitable, religious, or educational functions;
79.13and veterans groups under subdivision 5;
79.14(2) any senior citizen group or association of groups that: hospitals, outpatient
79.15surgical centers, and critical access dental providers under subdivision 7, paragraphs (a)
79.16to (c), (e), and (f);
79.17(i) in general limits membership to persons who are either age 55 or older, or
79.18physically disabled;
79.19(ii) is organized and operated exclusively for pleasure, recreation, and other
79.20nonprofit purposes, not including housing, no part of the net earnings of which inures to
79.21the benefit of any private shareholders; and
79.22(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.
79.23(3) products and services under subdivision 7, paragraph (d); or
79.24(4) nursing homes and boarding care homes under subdivision 18.
79.25    (b) For purposes of this subdivision, charitable purpose includes the maintenance of
79.26a cemetery owned by a religious organization. "nonprofit organization" means:
79.27    (1) an organization that has a current federal determination letter stating that the
79.28nonprofit organization qualifies as an exempt organization under section 501(c)(3) of the
79.29Internal Revenue Code and has obtained a Minnesota tax identification number from the
79.30Department of Revenue under section 297A.83; or
79.31    (2) any senior citizen group or association of groups that:
79.32    (i) in general, limits membership to persons who are either age 55 or older or
79.33physically disabled;
80.1    (ii) is organized and operated exclusively for pleasure, recreation, and other
80.2nonprofit purposes, not including housing, no part of the net earnings of which inures to
80.3the benefit of any private shareholders; and
80.4    (iii) is an exempt organization under section 501(c) of the Internal Revenue Code.
80.5(b) (c) This exemption does not apply to the following sales:
80.6(1) building, construction, or reconstruction materials purchased by a contractor
80.7or a subcontractor as a part of a lump-sum contract or similar type of contract with a
80.8guaranteed maximum price covering both labor and materials for use in the construction,
80.9alteration, or repair of a building or facility;
80.10(2) construction materials purchased by tax-exempt entities or their contractors to
80.11be used in constructing buildings or facilities that will not be used principally by the
80.12tax-exempt entities;
80.13(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause
80.14(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
80.15297A.67, subdivision 2 , except wine purchased by an established religious organization
80.16for sacramental purposes or as allowed under subdivision 9a; and
80.17(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except
80.18as provided in paragraph (c) (d).
80.19(c) (d) This exemption applies to the leasing of a motor vehicle as defined in section
80.20297B.01, subdivision 11 , only if the vehicle is:
80.21(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a
80.22passenger automobile, as defined in section 168.002, if the automobile is designed and
80.23used for carrying more than nine persons including the driver; and
80.24(2) intended to be used primarily to transport tangible personal property or
80.25individuals, other than employees, to whom the organization provides service in
80.26performing its charitable, religious, or educational purpose.
80.27(d) (e) A limited liability company also qualifies for exemption under this
80.28subdivision if (1) it consists of a sole member that would qualify for the exemption, and
80.29(2) the items purchased qualify for the exemption.
80.30EFFECTIVE DATE.This section is effective for sales and purchases made after
80.31June 30, 2015.

80.32    Sec. 10. Minnesota Statutes 2014, section 297A.70, subdivision 14, is amended to read:
80.33    Subd. 14. Fund-raising events sponsored by nonprofit groups. (a) Sales of
80.34tangible personal property or services at, and admission charges for fund-raising events
80.35sponsored by, a nonprofit organization are exempt if:
81.1(1) all gross receipts are recorded as such, in accordance with generally accepted
81.2accounting practices, on the books of the nonprofit organization; and
81.3(2) the entire proceeds, less the necessary expenses for the event, will be used solely
81.4and exclusively for charitable, religious, or educational purposes. Exempt sales include
81.5the sale of prepared food, candy, and soft drinks at the fund-raising event.
81.6(b) This exemption is limited in the following manner:
81.7(1) it does not apply to admission charges for events involving bingo or other
81.8gambling activities or to charges for use of amusement devices involving bingo or other
81.9gambling activities;
81.10(2) all gross receipts are taxable if the profits are not used solely and exclusively for
81.11charitable, religious, or educational purposes;
81.12(3) it does not apply unless the organization keeps a separate accounting record,
81.13including receipts and disbursements from each fund-raising event that documents all
81.14deductions from gross receipts with receipts and other records;
81.15(4) it does not apply to any sale made by or in the name of a nonprofit corporation as
81.16the active or passive agent of a person that is not a nonprofit corporation;
81.17(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;
81.18(6) it does not apply to fund-raising events conducted on premises leased for more
81.19than five ten days but less than 30 days; and
81.20(7) it does not apply if the risk of the event is not borne by the nonprofit organization
81.21and the benefit to the nonprofit organization is less than the total amount of the state and
81.22local tax revenues forgone by this exemption.
81.23(c) For purposes of this subdivision, a "nonprofit organization" means any unit of
81.24government, corporation, society, association, foundation, or institution organized and
81.25operated for charitable, religious, educational, civic, fraternal, and senior citizens' or
81.26veterans' purposes, no part of the net earnings of which inures to the benefit of a private
81.27individual.
81.28(d) For purposes of this subdivision, "fund-raising events" means activities of
81.29limited duration, not regularly carried out in the normal course of business, that attract
81.30patrons for community, social, and entertainment purposes, such as auctions, bake sales,
81.31ice cream socials, block parties, carnivals, competitions, concerts, concession stands,
81.32craft sales, bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion
81.33shows, festivals, galas, special event workshops, sporting activities such as marathons and
81.34tournaments, and similar events. Fund-raising events do not include the operation of a
81.35regular place of business in which services are provided or sales are made during regular
82.1hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet sales,
82.2regularly scheduled classes, or other activities carried out in the normal course of business.
82.3EFFECTIVE DATE.This section is effective for sales and purchases made after
82.4June 30, 2015.

82.5    Sec. 11. Minnesota Statutes 2014, section 297A.70, is amended by adding a
82.6subdivision to read:
82.7    Subd. 20. Animal shelters. Sales of animals by a nonprofit animal shelter are
82.8exempt. For purposes of this subdivision, the term "nonprofit animal shelter" means a
82.9nonprofit organization engaged in the business of rescuing, sheltering, and finding homes
82.10for unwanted animals.
82.11EFFECTIVE DATE.This section is effective for sales and purchases made after
82.12June 30, 2015.

82.13    Sec. 12. Minnesota Statutes 2014, section 297F.05, subdivision 3, is amended to read:
82.14    Subd. 3. Rates; tobacco products. (a) Except as provided in paragraph (b) and
82.15subdivision 3a, a tax is imposed upon all tobacco products in this state and upon any
82.16person engaged in business as a distributor, at the rate of 95 percent of the wholesale sales
82.17price of the tobacco products. The tax is imposed at the time the distributor:
82.18(1) brings, or causes to be brought, into this state from outside the state tobacco
82.19products for sale;
82.20(2) makes, manufactures, or fabricates tobacco products in this state for sale in
82.21this state; or
82.22(3) ships or transports tobacco products to retailers in this state, to be sold by those
82.23retailers.
82.24(b) Notwithstanding paragraph (a), (1) A minimum tax equal to the greater of the
82.25tax imposed under paragraph (a) or a minimum tax equal to the rate imposed on a pack
82.26of 20 cigarettes weighing not more than three pounds per thousand, as established under
82.27subdivision 1, is imposed on each container of moist snuff weighing not more than 1.2
82.28ounces. When more than one container subject to tax under this clause is packaged
82.29together, each container is subject to the minimum tax; and
82.30(2) except as provided in clause (1), a tax equal to the greater of the tax imposed
82.31under paragraph (a) or a minimum tax equal to the rate imposed on a pack of 20 cigarettes
82.32weighing not more than three pounds per thousand, as established under subdivision 1,
83.1times the number of ounces of moist snuff in the container, divided by 1.2, is imposed on
83.2each container of moist snuff weighing more than 1.2 ounces.
83.3For purposes of this subdivision, a "container" means the smallest a consumer-size can,
83.4package, or other container that is marketed or packaged by the manufacturer, distributor,
83.5or retailer for separate sale to a retail purchaser. When more than one container is
83.6packaged together, each container is subject to tax.
83.7EFFECTIVE DATE.This section is effective July 1, 2015.

83.8    Sec. 13. Minnesota Statutes 2014, section 297F.09, subdivision 10, is amended to read:
83.9    Subd. 10. Accelerated tax payment; cigarette or tobacco products distributor.
83.10    A cigarette or tobacco products distributor having a liability of $250,000 or more during a
83.11fiscal year ending June 30, shall remit the June liability for the next year in the following
83.12manner:
83.13    (a) Two business days before June 30 of the year, the distributor shall remit the
83.14actual May liability and 81.4 80 percent of the estimated June liability to the commissioner
83.15and file the return in the form and manner prescribed by the commissioner.
83.16    (b) On or before August 18 of the year, the distributor shall submit a return showing
83.17the actual June liability and pay any additional amount of tax not remitted in June. A
83.18penalty is imposed equal to ten percent of the amount of June liability required to be paid
83.19in June, less the amount remitted in June. However, the penalty is not imposed if the
83.20amount remitted in June equals the lesser of:
83.21    (1) 81.4 80 percent of the actual June liability; or
83.22    (2) 81.4 80 percent of the preceding May liability.
83.23EFFECTIVE DATE.This section is effective for taxes due and payable after
83.24July 1, 2015.

83.25    Sec. 14. Minnesota Statutes 2014, section 297G.09, subdivision 9, is amended to read:
83.26    Subd. 9. Accelerated tax payment; penalty. A person liable for tax under this
83.27chapter having a liability of $250,000 or more during a fiscal year ending June 30, shall
83.28remit the June liability for the next year in the following manner:
83.29    (a) Two business days before June 30 of the year, the taxpayer shall remit the actual
83.30May liability and 81.4 80 percent of the estimated June liability to the commissioner and
83.31file the return in the form and manner prescribed by the commissioner.
83.32    (b) On or before August 18 of the year, the taxpayer shall submit a return showing
83.33the actual June liability and pay any additional amount of tax not remitted in June. A
84.1penalty is imposed equal to ten percent of the amount of June liability required to be paid
84.2in June less the amount remitted in June. However, the penalty is not imposed if the
84.3amount remitted in June equals the lesser of:
84.4    (1) 81.4 80 percent of the actual June liability; or
84.5    (2) 81.4 80 percent of the preceding May liability.
84.6EFFECTIVE DATE.This section is effective for taxes due and payable after
84.7July 1, 2015.

84.8    Sec. 15. Minnesota Statutes 2014, section 297H.04, subdivision 2, is amended to read:
84.9    Subd. 2. Rate. (a) Commercial generators that generate nonmixed municipal
84.10solid waste shall pay a solid waste management tax of 60 cents per noncompacted
84.11cubic yard of periodic waste collection capacity purchased by the generator, based on
84.12the size of the container for the nonmixed municipal solid waste, the actual volume,
84.13or the weight-to-volume conversion schedule in paragraph (c). However, the tax must
84.14be calculated by the waste management service provider using the same method for
84.15calculating the waste management service fee so that both are calculated according to
84.16container capacity, actual volume, or weight.
84.17(b) Notwithstanding section 297H.02, a residential generator that generates
84.18nonmixed municipal solid waste shall pay a solid waste management tax in the same
84.19manner as provided in paragraph (a).
84.20(c) The weight-to-volume conversion schedule for:
84.21(1) construction debris as defined in section 115A.03, subdivision 7, is one ton
84.22equals 3.33 cubic yards, or $2 per ton equal to 60 cents per cubic yard. The commissioner
84.23of revenue, after consultation with the commissioner of the Pollution Control Agency,
84.24shall determine and may publish by notice a conversion schedule for construction debris;
84.25(2) industrial waste as defined in section 115A.03, subdivision 13a, is equal to
84.2660 cents per cubic yard. The commissioner of revenue after consultation with the
84.27commissioner of the Pollution Control Agency, shall determine, and may publish by
84.28notice, a conversion schedule for various industrial wastes; and
84.29(3) infectious waste as defined in section 116.76, subdivision 12, and pathological
84.30waste as defined in section 116.76, subdivision 14, is 150 pounds equals one cubic yard, or
84.3160 cents per 150 pounds.
84.32EFFECTIVE DATE.This section is effective for sales and purchases made after
84.33June 30, 2015.

85.1    Sec. 16. Minnesota Statutes 2014, section 469.190, subdivision 1, is amended to read:
85.2    Subdivision 1. Authorization. Notwithstanding section 477A.016 or any other law,
85.3a statutory or home rule charter city may by ordinance, and a town may by the affirmative
85.4vote of the electors at the annual town meeting, or at a special town meeting, impose a
85.5tax of up to three percent on the gross receipts from the furnishing for consideration of
85.6lodging at a hotel, motel, rooming house, tourist court, or resort, other than the renting or
85.7leasing of it for a continuous period of 30 days or more. A statutory or home rule charter
85.8city may by ordinance impose the tax authorized under this subdivision on the camping
85.9site receipts of a municipal campground. Regardless of whether the tax is collected locally
85.10or by the state, a tax imposed under this subdivision or under a special law applies to
85.11the entire consideration paid to obtain access to lodging, including ancillary or related
85.12services, such as services provided by accommodation intermediaries as defined in section
85.13297A.61, and similar services.
85.14EFFECTIVE DATE.This section is effective the day following final enactment.
85.15In enacting this section, the legislature confirms its original intent in enacting Minnesota
85.16Statutes, section 469.190, its predecessor provisions, and any special laws authorizing
85.17political subdivisions to impose lodging taxes, were and are intended to apply to the
85.18entire consideration paid to obtain access to transient lodging, including ancillary or
85.19related services, such as services provided by accommodation intermediaries as defined in
85.20Minnesota Statutes, section 297A.61, and similar services. The provisions of this section
85.21must not be interpreted to imply a narrower construction of the tax base under lodging tax
85.22provisions of Minnesota law prior to the enactment of this section.

85.23    Sec. 17. Minnesota Statutes 2014, section 469.190, subdivision 7, is amended to read:
85.24    Subd. 7. Collection. (a) The statutory or home rule charter city may agree with the
85.25commissioner of revenue that a tax imposed pursuant to this section shall be collected
85.26by the commissioner together with the tax imposed by chapter 297A, and subject to the
85.27same interest, penalties, and other rules and that its proceeds, less the cost of collection,
85.28shall be remitted to the city.
85.29(b) If a tax under this section or under a special law is not collected by the
85.30commissioner of revenue, the local government imposing the tax may by ordinance limit
85.31the required filing and remittance of the tax by an accommodation intermediary, as
85.32defined in section 297A.61, subdivision 47, to once in every calendar year. The local
85.33government must inform the accommodation intermediary of the date when the return
85.34or remittance is due and the dates must coincide with one of the monthly dates for filing
85.35and remitting state sales tax under chapter 297A. The local government must also provide
86.1accommodation intermediaries electronically with geographic and zip code information
86.2necessary to correctly collect the tax
86.3EFFECTIVE DATE.This section is effective the day after final enactment.

86.4    Sec. 18. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991,
86.5chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws
86.62003, First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154,
86.7article 5, section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read:
86.8    Subd. 2. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other
86.9law, ordinance, or city charter provision to the contrary, the city of Duluth may, by
86.10ordinance, impose an additional sales tax of up to one and three-quarter percent on sales
86.11transactions which are described in Minnesota Statutes 2000, section 297A.01, subdivision
86.123, clause (c). The imposition of this tax shall not be subject to voter referendum under
86.13either state law or city charter provisions. When the city council determines that the taxes
86.14imposed under this paragraph at a rate of three-quarters of one percent and other sources
86.15of revenue produce revenue sufficient to pay debt service on bonds in the principal amount
86.16of $40,285,000 plus issuance and discount costs, issued for capital improvements at the
86.17Duluth Entertainment and Convention Center, which include a new arena, the rate of tax
86.18under this subdivision must be reduced by three-quarters of one percent.
86.19(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
86.20section 477A.016, or any other law, ordinance, or city charter provision to the contrary,
86.21the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half of
86.22one percent on sales transactions which are described in Minnesota Statutes 2000, section
86.23297A.01, subdivision 3 , clause (c). This tax expires when the city council determines
86.24that the tax imposed under this paragraph, along with the tax imposed under section
86.2522, paragraph (b), has produced revenues sufficient to pay the debt service on bonds
86.26in a principal amount of no more than $18,000,000, plus issuance and discount costs,
86.27to finance capital improvements to public facilities to support tourism and recreational
86.28activities in that portion of the city west of 34th 14th Avenue West and the area south of
86.29and including Skyline Parkway.
86.30(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation
86.31bonds under Minnesota Statutes, chapter 475, plus an additional amount to pay for the
86.32costs of issuance and any premiums. The proceeds may be used to finance capital
86.33improvements to public facilities that support tourism and recreational activities in the
86.34portion of the city west of 34th 14th Avenue West and the area south of and including
86.35Skyline Parkway, as described in paragraph (b). The issuance of the bonds is subject to the
87.1provisions of Minnesota Statutes, chapter 475, except no election shall be required unless
87.2required by the city charter. The bonds shall not be included in computing net debt. The
87.3revenues from the taxes that the city of Duluth may impose under paragraph (b) and under
87.4section 22, paragraph (b), may be pledged to pay principal of and interest on such bonds.
87.5EFFECTIVE DATE.This section is effective the day after the governing body of
87.6the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
87.7645.021, subdivisions 2 and 3.

87.8    Sec. 19. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389,
87.9article 8, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and
87.10Laws 2014, chapter 308, article 3, section 22, is amended to read:
87.11    Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND
87.12MOTELS.
87.13    (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or
87.14ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
87.15impose an additional tax of one percent upon the gross receipts from the sale of lodging
87.16for periods of less than 30 days in hotels and motels located in the city. The tax shall be
87.17collected in the same manner as the tax set forth in the Duluth city charter, section 54(d),
87.18paragraph one. The imposition of this tax shall not be subject to voter referendum under
87.19either state law or city charter provisions.
87.20(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
87.21section 477A.016, or any other law, ordinance, or city charter provision to the contrary,
87.22the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half
87.23of one percent on the gross receipts from the sale of lodging for periods of less than
87.2430 days in hotels and motels located in the city. This tax expires when the city council
87.25first determines that the tax imposed under this paragraph, along with the tax imposed
87.26under section 21, paragraph (b), has produced revenues sufficient to pay the debt
87.27service on bonds in a principal amount of no more than $18,000,000, plus issuance and
87.28discount costs, to finance capital improvements to public facilities to support tourism and
87.29recreational activities in that portion of the city west of 34th 14th Avenue West and the
87.30area south of and including Skyline Parkway.
87.31EFFECTIVE DATE.This section is effective the day after the governing body of
87.32the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
87.33645.021, subdivisions 2 and 3.

88.1    Sec. 20. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by
88.2Laws 1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9,
88.3and Laws 2009, chapter 88, article 4, section 14, is amended to read:
88.4    Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by
88.5subdivisions 1 and 2 shall be used by the city to pay the cost of collecting the tax and to
88.6pay all or a portion of the expenses of constructing and improving facilities as part of an
88.7urban revitalization project in downtown Mankato known as Riverfront 2000. Authorized
88.8expenses include, but are not limited to, acquiring property and paying relocation expenses
88.9related to the development of Riverfront 2000 and related facilities, and securing or paying
88.10debt service on bonds or other obligations issued to finance the construction of Riverfront
88.112000 and related facilities. For purposes of this section, "Riverfront 2000 and related
88.12facilities" means a civic-convention center, an arena, a riverfront park, a technology center
88.13and related educational facilities, and all publicly owned real or personal property that
88.14the governing body of the city determines will be necessary to facilitate the use of these
88.15facilities, including but not limited to parking, skyways, pedestrian bridges, lighting, and
88.16landscaping. It also includes the performing arts theatre and the Southern Minnesota
88.17Women's Hockey Exposition Center, for use by Minnesota State University, Mankato.
88.18    (b) Notwithstanding section 297A.99, subdivision 3, and subject to voter approval
88.19at a special or general election held on or before December 31, 2018, the city may by
88.20ordinance also use revenues from taxes authorized under subdivisions 1 and 2:
88.21    (1) up to a maximum of $29,000,000, plus associated bond costs, to pay all or a
88.22portion of the expenses of the following capital projects:
88.23    (i) improvements to regional recreational facilities including existing hockey and
88.24curling rinks, a baseball park, youth athletic fields and facilities, and the municipal
88.25swimming pool including improvements to make the pool compliant with the Americans
88.26with Disabilities Act;
88.27    (ii) improvements to flood control and the levee system;
88.28(iii) water quality improvement projects in Blue Earth and Nicollet Counties;
88.29(iv) expansion of the regional transit building and related multimodal transit
88.30improvements;
88.31(v) regional public safety and emergency communications improvements and
88.32equipment; and
88.33(vi) matching funds for improvements to publicly owned regional facilities including
88.34a historic museum, supportive housing, and a senior center; and
88.35(2) up to a maximum of $25,000,000, plus associated bond costs, to pay all or a
88.36portion of the costs of constructing the following new regional athletic facilities: ice
89.1sheets, swimming and aquatic facility, multi-use sports bubble, indoor field house, or
89.2indoor tennis courts.
89.3(c) The additional uses of revenues authorized in paragraph (b) must be presented to
89.4voters in one ballot question. The election must be held on the same date as the election to
89.5extend the North Mankato local option sales tax authorized under section ... of this article.
89.6EFFECTIVE DATE.This section is effective the day after the governing body of
89.7the city of Mankato and its chief clerical officer timely complete their compliance with
89.8Minnesota Statutes, section 645.021, subdivisions 2 and 3.

89.9    Sec. 21. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by
89.10Laws 2005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter
89.11366, article 7, section 10, is amended to read:
89.12    Subd. 4. Expiration of taxing authority and expenditure limitation. The
89.13authority granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax
89.14shall expire on at the later of when revenues are sufficient to pay off the bonds, including
89.15interest and all other associated bond costs authorized under subdivision 5, or December
89.1631, 2022, unless the additional uses under subdivision 3, paragraph (b), are authorized. If
89.17the additional uses allowed in subdivision 3, paragraph (b), are authorized, the taxes expire
89.18at the later of when revenues are sufficient to pay off the bonds, including interest and all
89.19other associated bond costs authorized under subdivision 5, or December 31, 2038. Upon
89.20expiration of the taxes, any remaining fund balance of revenues derived from the taxes
89.21shall be disbursed to the general fund of the city. The taxes imposed under subdivisions 1
89.22and 2 may expire at an earlier time if the city so determines by ordinance.
89.23EFFECTIVE DATE.This section is effective the day following final enactment
89.24without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.

89.25    Sec. 22. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:
89.26    Subd. 5. Bonds. (a) The city of Mankato may issue general obligation bonds of the
89.27city in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities,
89.28without election under Minnesota Statutes, chapter 475, on the question of issuance of the
89.29bonds or a tax to pay them. The debt represented by bonds issued for Riverfront 2000
89.30and related facilities shall not be included in computing any debt limitations applicable
89.31to the city of Mankato, and the levy of taxes required by section 475.61 to pay principal
89.32of and interest on the bonds shall not be subject to any levy limitation or be included in
89.33computing or applying any levy limitation applicable to the city.
90.1    (b) The city of Mankato, subject to voter approval at the election required under
90.2subdivision 3, paragraph (b), may issue general obligation bonds of the city in an amount
90.3not to exceed $29,000,000 for the projects listed under subdivision 3, paragraph (b),
90.4clause (1), and not to exceed $25,000,000 for the projects listed under subdivision 3,
90.5paragraph (b), clause (2), without election under Minnesota Statutes, chapter 475, on the
90.6question of issuance of the bonds or a tax to pay them. The debt represented by bonds
90.7under this paragraph shall not be included in computing any debt limitations applicable
90.8to the city of Mankato, and the levy of taxes required by Minnesota Statutes, section
90.9475.61, to pay principal of and interest on the bonds, and shall not be subject to any levy
90.10limitation or be included in computing or applying any levy limitation applicable to the
90.11city. The city may use tax revenue in excess of one year's principal interest reserve for
90.12intended annual bond payments to pay all or a portion of the cost of capital improvements
90.13authorized in subdivision 3.
90.14    (c) Notwithstanding the maximum bond limits in this subdivision, the city may use
90.15tax revenue in excess of any and all annual principal and interest payment obligations for
90.16capital replacement associated with the uses authorized in subdivision 3.
90.17EFFECTIVE DATE.This section is effective the day following final enactment
90.18without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.

90.19    Sec. 23. Laws 1991, chapter 291, article 8, section 27, subdivision 6, is amended to read:
90.20    Subd. 6. Reverse referendum; authorization of extensions. (a) If the Mankato city
90.21council intends to exercise the authority provided by this section, it shall pass a resolution
90.22stating the fact before July 1, 1991. The resolution must be published for two successive
90.23weeks in the official newspaper of the city or, if there is no official newspaper, in a
90.24newspaper of general circulation in the city, together with a notice fixing a date for a public
90.25hearing on the matter. The hearing must be held at least two weeks but not more than four
90.26weeks after the first publication of the resolution. Following the public hearing, the city
90.27may determine to take no further action or adopt a resolution confirming its intention to
90.28exercise the authority. That resolution must also be published in the official newspaper of
90.29the city or, if there is no official newspaper, in a newspaper of general circulation in the
90.30city. If within 30 days after publication of the resolution a petition signed by voters equal
90.31in number to ten percent of the votes cast in the city in the last general election requesting
90.32a vote on the proposed resolution is filed with the county auditor, the resolution is not
90.33effective until it has been submitted to the voters at a general or special election and a
90.34majority of votes cast on the question of approving the resolution are in the affirmative. The
90.35commissioner of revenue shall prepare a suggested form of question to be presented at the
91.1election. The referendum must be held at a special or general election before December 1,
91.21991. This subdivision applies notwithstanding any city charter provision to the contrary.
91.3    (b) If the Mankato city council wishes to extend the taxes authorized under
91.4subdivisions 1 and 2 to fund any of the projects listed in subdivision 3, paragraph (b) or
91.5(c), the city must pass a resolution extending the taxes before July 1, 2015. The tax may
91.6not be imposed unless approved by the voters.
91.7EFFECTIVE DATE.This section is effective the day following final enactment
91.8without local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.

91.9    Sec. 24. Laws 2006, chapter 257, section 2, the effective date, as amended by Laws
91.102011, First Special Session chapter 7, article 3, section 17, is amended to read:
91.11EFFECTIVE DATE.This section is effective for sales and purchases after June 30,
91.122006, and before July 1, 2015.
91.13EFFECTIVE DATE.This section is effective the day following final enactment.

91.14    Sec. 25. Laws 2008, chapter 366, article 7, section 20, is amended to read:
91.15    Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED.
91.16    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes,
91.17section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to
91.18the approval of the voters on November 7, 2006, the city of North Mankato may impose
91.19by ordinance a sales and use tax of one-half of one percent for the purposes specified
91.20in subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the
91.21imposition, administration, collection, and enforcement of the taxes authorized under
91.22this subdivision.
91.23    Subd. 2. Use of revenues. (a) Revenues received from the tax authorized by
91.24subdivision 1 must be used to pay all or part of the capital costs of the following projects:
91.25    (1) the local share of the Trunk Highway 14/County State-Aid Highway 41
91.26interchange project;
91.27    (2) development of regional parks and hiking and biking trails;
91.28    (3) expansion of the North Mankato Taylor Library;
91.29    (4) riverfront redevelopment; and
91.30    (5) lake improvement projects.
91.31    The total amount of revenues from the tax in subdivision 1 that may be used to fund
91.32these projects is $6,000,000 plus any associated bond costs.
92.1    (b) If the city extends the tax as authorized under subdivision 2a, paragraph (a), the
92.2total amount that may be used to fund these projects is increased by $9,000,000, plus
92.3associated bond costs, including interest on the bonds, minus any revenues used for the
92.4purposes listed in paragraph (c).
92.5(c) Revenues raised from the tax imposed under subdivision 1 may also be used to
92.6fund all or a portion of the costs of constructing new regional athletic facilities: ice sheets,
92.7swimming and aquatic facility, multi-use sports bubble, indoor field house, or indoor
92.8tennis courts if those facilities are constructed within the corporate boundaries of the city
92.9of North Mankato. The tax may only be used for this purpose if authorized by the voters
92.10as provided for in subdivision 2a, paragraph (b).
92.11    Subd. 2a. Authorization to extend the tax. (a) Notwithstanding section 297A.99,
92.12subdivision 3, if the North Mankato city council intends to extend the tax authorized under
92.13subdivision 1 to cover an additional $9,000,000 in bonds, plus associated bond costs,
92.14including interest on the bonds, to fund the projects in subdivision 2, paragraph (a), the
92.15city must pass a resolution extending the tax before July 1, 2015. The resolution is not
92.16effective until it has been submitted to the voters at a general or special election and a
92.17majority of votes cast on the question of approving the resolution are in the affirmative.
92.18The referendum must be held at a special or general election before December 1, 2018,
92.19and must be held on the same date as the referendum required under section ... of this
92.20article. This subdivision applies notwithstanding any city charter provision to the contrary.
92.21(b) Notwithstanding section 297A.99, subdivision 3, and subject to voter approval
92.22at a special or general election held on or before December 1, 2018, the city may use up
92.23to $5,000,000, plus associated bond costs of the additional sales tax revenue allowed to
92.24be raised under paragraph (a), to pay all or a portion of the costs of constructing the
92.25new regional athletic facilities listed in subdivision 2, paragraph (c). The referendum
92.26required under this paragraph must be held on the same date as the referendum required
92.27under paragraph (a). The uses of revenues authorized in this paragraph and paragraph (a)
92.28must be presented to voters in one ballot question. The election must be held on the
92.29same date as the election to extend the Mankato local option sales tax authorized under
92.30section 20 of this article.
92.31    Subd. 3. Bonds. (a) The city of North Mankato, pursuant to the approval of the
92.32voters at the November 7, 2006 referendum authorizing the imposition of the taxes in
92.33this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital and
92.34administrative expenses for the projects described in subdivision 2, paragraph (a), in an
92.35amount that does not exceed $6,000,000. A separate election to approve the bonds under
92.36Minnesota Statutes, section 475.58, is not required.
93.1(b) The city of North Mankato, subject to voter approval under subdivision 2a,
93.2paragraph (a), allowing for additional revenue to be spent for the projects in subdivision 2,
93.3paragraph (a), may issue additional bonds under Minnesota Statutes, chapter 475, to pay
93.4capital and administrative expenses for those projects in an amount that does not exceed
93.5$9,000,000, plus associated bond costs, including interest on the bonds. If approved by
93.6voters as required under subdivision 2a, paragraph (b), up to $5,000,000 of the bonds, plus
93.7associated bond costs, may be used to pay capital and administrative costs for the projects
93.8listed in subdivision 2, paragraph (b), instead. A separate election to approve the bonds
93.9under Minnesota Statutes, section 475.58, is not required.
93.10    (b) (c) The debt represented by the bonds is not included in computing any debt
93.11limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section
93.12475.61 , to pay principal and interest on the bonds is not subject to any levy limitation.
93.13    (d) Notwithstanding the maximum bond limits set forth above, the city may use tax
93.14revenue in excess of any and all annual principal and interest payment obligations for
93.15capital replacement associated with the uses authorized in subdivision 2.
93.16    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires when
93.17the city council determines that the amount of revenues received from the taxes to pay
93.18for the projects under subdivision 2, paragraph (a), first equals or exceeds $6,000,000
93.19plus the additional amount needed to pay the costs related to issuance of bonds under
93.20subdivision 3, including interest on the bonds, unless the tax is extended as allowed in
93.21this section. If the tax is extended as allowed under subdivision 2a, paragraph (a), the tax
93.22expires December 31, 2038. In addition, if the tax is extended to cover the projects in
93.23subdivision 2, paragraph (b), the tax expires December 31, 2038. Any funds remaining
93.24after completion of the projects and retirement or redemption of the bonds shall be placed
93.25in a capital facilities and equipment replacement fund of the city. The tax imposed under
93.26subdivision 1 may expire at an earlier time if the city so determines by ordinance.
93.27EFFECTIVE DATE.This section is effective the day after the governing body of
93.28the city of North Mankato and its chief clerical officer timely complete their compliance
93.29with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

93.30    Sec. 26. Laws 2013, chapter 143, article 8, section 22, the effective date, as amended
93.31by Laws 2014, chapter 308, article 3, section 30, is amended to read:
93.32EFFECTIVE DATE.Subdivision 7, paragraph (c), clause (2), is effective for sales
93.33and purchases made after June 30, 2013. The provisions of subdivision 7, paragraph (b),
93.34and paragraph (c), clause (8), are effective retroactively for sales and purchases made
94.1after April 1, 2009. Any vendor who paid sales or use tax on items now exempt under
94.2subdivision 7, paragraph (b), and paragraph (c), clause (8), that were sold after April 1,
94.32009, and before July 1, 2013, may apply for a refund of the sales or use tax paid in the
94.4manner provided in Minnesota Statutes, section 289A.50, subdivision 1, but only if the
94.5vendor did not collect and remit sales tax on the items for which a refund is claimed.
94.6Interest on the refund shall be paid at the rate in Minnesota Statutes, section 270C.405,
94.7from 90 days after the refund claim is filed with the commissioner of revenue. The amount
94.8to make the refunds is annually appropriated to the commissioner of revenue from the
94.9general fund. Notwithstanding limitations on claims for refunds under Minnesota Statutes,
94.10section 289A.40, claims may be filed with the commissioner until June 30, 2015 2016.
94.11EFFECTIVE DATE.This section is effective the day following final enactment.

94.12    Sec. 27. Laws 2013, chapter 143, article 8, section 23, the effective date, as amended
94.13by Laws 2014, chapter 308, article 3, section 31, is amended to read:
94.14EFFECTIVE DATE.This section is effective for sales and purchases made after
94.15June 30, 2013, except that the provision regarding accessories and supplies purchased
94.16in a transaction covered by Medicare or Medicaid that are not already exempt under
94.17Minnesota Statutes, section 297A.67, subdivision 7, and the provision defining "Medicare"
94.18and "Medicaid" are effective retroactively for sales and purchases made after April 1,
94.192009. Any vendor who paid sales or use tax on accessories and supplies purchased in a
94.20transaction covered by Medicare or Medicaid that are not already exempt under Minnesota
94.21Statutes, section 297A.67, subdivision 7, and that were sold after April 1, 2009, and before
94.22July 1, 2013, may apply for a refund of the sales or use tax paid in the manner provided in
94.23Minnesota Statutes, section 289A.50, subdivision 1, but only if the vendor did not collect
94.24and remit sales tax on the accessories and supplies for which a refund is claimed. Interest
94.25on the refund shall be paid at the rate in Minnesota Statutes, section 270C.405, from 90
94.26days after the refund claim is filed with the commissioner of revenue. The amount to make
94.27the refunds is annually appropriated to the commissioner of revenue from the general
94.28fund. Notwithstanding limitations on claims for refunds under Minnesota Statutes, section
94.29289A.40 , claims may be filed with the commissioner until June 30, 2015 2016.
94.30EFFECTIVE DATE.This section is effective retroactively for sales and purchases
94.31made after April 1, 2009.

94.32    Sec. 28. Laws 2014, chapter 308, article 7, section 7, is amended to read:
94.33    Sec. 7. CITY OF LUVERNE LOCAL SALES TAX.
95.1(a) Notwithstanding Minnesota Statutes, sections 297A.99, 297A.993, and
95.2477A.016 , or any other contrary provision of law, ordinance, or city charter, the city of
95.3Luverne may, by ordinance, impose a sales and use tax of up to one-half of one percent for
95.4the purposes specified in paragraph (b), if approved by the voters at a general election held
95.5prior to December 31, 2020. Except as otherwise provided in this section, the provisions
95.6of Minnesota Statutes, section 297A.99, subdivisions 4 to 13, govern the imposition,
95.7administration, collection, and enforcement of the tax authorized under this paragraph.
95.8(b) The proceeds of any tax imposed under paragraph (a), less refunds and costs
95.9of collection, must be first used by the city to pay debt service on bonds issued under
95.10Minnesota Statutes, section 469.194, to fund the Lewis and Clark Regional Water System
95.11project. Revenues collected in any calendar year in excess of the city obligation to pay for
95.12debt service on bonds issued under Minnesota Statutes, section 469.194, may be retained
95.13by the city and used for funding other capital projects within the city.
95.14(c) A tax imposed under paragraph (a) expires when the city's share of bonds issued
95.15under Minnesota Statutes, section 469.194, to fund the Lewis and Clark Regional Water
95.16System Project has been made, or at an earlier time if approved by the city council. The
95.17tax must not terminate before the city council determines that revenues from this tax and
95.18any other revenue source the city dedicates are sufficient to pay the city share of debt
95.19service on bonds issued under Minnesota Statutes, section 469.194.
95.20EFFECTIVE DATE.This section is effective the day following final enactment.

95.21    Sec. 29. CITY OF MARSHALL; VALIDATION OF PRIOR ACT.
95.22(a) Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city
95.23of Marshall may approve Laws 2011, First Special Session chapter 7, article 4, section 14,
95.24and file its approval with the secretary of state by June 15, 2013. If approved as authorized
95.25under this paragraph, actions undertaken by the city pursuant to the approval of the voters
95.26on November 6, 2012, and otherwise in accordance with Laws 2011, First Special Session
95.27chapter 7, article 4, section 14, are validated.
95.28(b) Notwithstanding the time limit on the imposition of tax under Laws 2011, First
95.29Special Session chapter 7, article 4, section 14, and subject to local approval under
95.30paragraph (a), the city of Marshall may impose the tax on or before July 1, 2013.
95.31EFFECTIVE DATE.This section is effective the day following final enactment.

96.1ARTICLE 5
96.2PROPERTY TAX AIDS AND CREDITS

96.3    Section 1. Minnesota Statutes 2014, section 477A.0124, subdivision 4, is amended to
96.4read:
96.5    Subd. 4. County tax-base equalization aid. (a) For 2006 and subsequent years,
96.6the money appropriated to county tax-base equalization aid each calendar year, after the
96.7payment under paragraph (f), shall be apportioned among the counties according to each
96.8county's tax-base equalization aid factor.
96.9(b) A county's tax-base equalization aid factor is equal to the amount by which (i)
96.10$185 $330 times the county's population, exceeds (ii) 9.45 12 percent of the county's
96.11net tax capacity.
96.12(c) In the case of a county with a population less than 10,000, the factor determined
96.13in paragraph (b) shall be multiplied by a factor of three.
96.14(d) In the case of a county with a population greater than or equal to 10,000, but less
96.15than 12,500, the factor determined in paragraph (b) shall be multiplied by a factor of two.
96.16(e) In the case of a county with a population greater than or equal to 12,500 but less
96.17than 16,500, the factor determined in paragraph (b) shall be multiplied by a factor of 1.25.
96.18(e) (f) In the case of a county with a population greater than 500,000, the factor
96.19determined in paragraph (b) shall be multiplied by a factor of 0.25.
96.20(g) For distributions in 2016, the allocation to a county under paragraphs (a) to (f)
96.21shall not be less than 95 percent of the sum of the tax base equalization aid in 2014 plus
96.22any supplemental program aid that was distributed to the county under Laws 2014, chapter
96.23308, article 1, section 13. For distributions in 2017 and subsequent years, the allocation
96.24to a county under paragraphs (a) to (f) shall not be less than 95 percent of the tax base
96.25equalization aid of the county in the prior year.
96.26(h) Beginning with aid payable in 2017, the amount under paragraph (b), item (i),
96.27shall be increased by the ratio of the statewide net tax capacity per capita to the statewide
96.28net tax capacity per capita in the 2014 assessment year provided that in no case shall the
96.29ratio be less than one or the ratio in the prior year, whichever is greater. The amount shall
96.30be rounded to the nearest $10. The statewide taxable market value per capita shall be
96.31calculated using the most recent population available for the relevant assessment year at
96.32the time of the calculation of the aid by the commissioner under section 477A.014.
96.33(f) (i) Before the money appropriated to county base equalization aid is apportioned
96.34among the counties as provided in paragraph (a), an amount up to $73,259 is allocated
96.35annually to Anoka County and up to $59,664 is annually allocated to Washington County
96.36for the county to pay postretirement costs of health insurance premiums for court
97.1employees. The allocation under this paragraph is in addition to the allocations under
97.2paragraphs (a) to (e) (h).
97.3EFFECTIVE DATE.This section is effective for aids payable in 2016 and thereafter.

97.4    Sec. 2. [477A.0126] REIMBURSEMENT OF COUNTY AND TRIBES FOR
97.5CERTAIN OUT-OF-HOME PLACEMENT.
97.6    Subdivision 1. Definition. When used in this section, "out-of-home placement"
97.7means 24-hour substitute care for an Indian child as defined by section 260C.007,
97.8subdivision 21, placed under the Indian Child Welfare Act (ICWA) and chapter 260C,
97.9away from the child's parent or guardian and for whom the county social services agency
97.10or county correctional agency has been assigned responsibility for the child's placement
97.11and care, which includes placement in foster care under section 260C.007, subdivision
97.1218, and a correctional facility pursuant to a court order.
97.13    Subd. 2. Determination of nonfederal share of costs. (a) By January 1, 2016, each
97.14county shall report the following information to the commissioners of human services and
97.15corrections: (1) the separate amounts paid out of its social service agency and its corrections
97.16budget for out-of-home placement of children under the ICWA in calendar years 2012,
97.172013, and 2014; and (2) the number of case days associated with the expenditures from
97.18each budget. By March 15, 2016, the commissioner of human services, in consultation with
97.19the commissioner of corrections, shall certify to the commissioner of revenue and to the
97.20legislative committees responsible for local government aids and out-of-home placement
97.21funding, whether the data reported under this subdivision accurately reflects total
97.22expenditures by counties for out-of-home placement costs of children under the ICWA.
97.23(b) By January 1, 2018, and each January 1 thereafter, each county shall report to the
97.24commissioners of human services and corrections the separate amounts paid out of its
97.25social service agency and its corrections budget for out-of-home placement of children
97.26under the ICWA in the calendar years two years before the current calendar year along
97.27with the number of case days associated with the expenditures from each budget.
97.28(c) Until the commissioner of human services develops another mechanism for
97.29collecting and verifying data on out-of-home placements of children under the ICWA, and
97.30the legislature authorizes the use of that data, the data collected under this subdivision
97.31must be used to calculate payments under subdivision 3. The commissioner of human
97.32services shall certify the information to the commissioner of revenue by July 1 of the year
97.33prior to the aid payment.
97.34    Subd. 3. Aid payments to counties. For aids payable in calendar year 2017 and
97.35thereafter, the commissioner of revenue shall reimburse each county for 100 percent of
98.1the nonfederal share of the cost of out-of-home placement of children under the ICWA
98.2provided the commissioner of human services, in consultation with the commissioner
98.3of corrections, certifies to the commissioner of revenue that accurate data is available
98.4to make the aid determination under this section. The amount of reimbursement is the
98.5county's average nonfederal share of the cost for out-of-home placement of children
98.6under the ICWA for the most recent three calendar years for which data is available.
98.7The commissioner shall pay the aid under the schedule used for local government aid
98.8payments under section 477A.015.
98.9    Subd. 4. Aid payments to tribes. (a) By January 1, 2016, and each year
98.10thereafter, each tribe must certify to the commissioner of revenue the amount of federal
98.11reimbursement received by the tribe for out-of-home placement of children under the
98.12ICWA for the immediately preceding three calendar years.
98.13(b) The amount of reimbursement to the tribe shall be the greater of: (1) five
98.14percent of the average reimbursement amount received from the federal government for
98.15out-of-home placement costs for the most recent three calendar years; or (2) $200,000.
98.16The commissioner shall pay the aid under this section under the schedule used for local
98.17governments aid payments under section 477A.015.
98.18    Subd. 5. Appropriation. An amount sufficient to pay aid under this section is
98.19annually appropriated to the commissioner of revenue from the general fund.
98.20EFFECTIVE DATE.This section is effective beginning with aids payable in 2017.

98.21    Sec. 3. Minnesota Statutes 2014, section 477A.013, subdivision 1, is amended to read:
98.22    Subdivision 1. Towns and unorganized territories. In 2014 2016 and thereafter,
98.23each town and the total area of any unorganized territory within a county is eligible for
98.24a distribution under this subdivision equal to the product of (i) its agricultural property
98.25factor, (ii) its town area factor, (iii) its population factor, and (iv) 0.0045. As used in this
98.26subdivision, the following terms have the meanings given them:
98.27(1) "agricultural property factor" means the ratio of the adjusted net tax capacity of
98.28agricultural property located in a town, or unorganized territory divided by the adjusted
98.29net tax capacity of all other property located in the town or unorganized territory. The
98.30agricultural property factor cannot exceed eight;
98.31(2) "agricultural property" means property classified under section 273.13, as
98.32homestead and nonhomestead agricultural property, rural vacant land, and noncommercial
98.33seasonal recreational property;
99.1(3) "town area factor" means the most recent estimate of total acreage, not to exceed
99.250,000 acres, located in the case of a township, or 75,000 acres in the case of unorganized
99.3territory, available as of July 1 in the aid calculation year, estimated or established by:
99.4(i) the United States Bureau of the Census;
99.5(ii) the State Land Management Information Center Minnesota Geospatial
99.6Information Office; or
99.7(iii) the secretary of state; and
99.8(4) "population factor" means the square root of the towns' town's or unorganized
99.9territory's population.
99.10If the sum of the aids payable to all towns and unorganized territories under this
99.11subdivision exceeds or is less than the limit under section 477A.03, subdivision 2c,
99.12the distribution to each town and unorganized territory must be reduced or increased
99.13proportionately so that the total amount of aids distributed under this section does not
99.14exceed the limit in section 477A.03, subdivision 2c.
99.15EFFECTIVE DATE.This section is effective for aids payable in 2016 and thereafter.

99.16    Sec. 4. Minnesota Statutes 2014, section 477A.014, subdivision 1, is amended to read:
99.17    Subdivision 1. Calculations and payments. (a) The commissioner of revenue shall
99.18make all necessary calculations and make payments pursuant to sections 477A.013 and
99.19477A.03 directly to the affected taxing authorities annually. In addition, the commissioner
99.20shall notify the authorities of their aid amounts, as well as the computational factors used
99.21in making the calculations for their authority, and those statewide total figures that are
99.22pertinent, before August 1 of the year preceding the aid distribution year. In the case of
99.23unorganized territory, the commissioner shall notify the affected county government of
99.24the aid amount for any unorganized territory within the county and make payments of aid
99.25payable based on unorganized territory to the county government. The aid received by the
99.26county government must be spent in and for the unorganized territory.
99.27(b) For the purposes of this subdivision, aid is determined for a city or, town,
99.28or unorganized territory based on its city or, town, or unorganized territory status as
99.29of June 30 of the year preceding the aid distribution year. If the effective date for a
99.30municipal incorporation, consolidation, annexation, detachment, dissolution, or township
99.31organization is on or before June 30 of the year preceding the aid distribution year, such
99.32change in boundaries or form of government shall be recognized for aid determinations for
99.33the aid distribution year. If the effective date for a municipal incorporation, consolidation,
99.34annexation, detachment, dissolution, or township organization is after June 30 of the year
100.1preceding the aid distribution year, such change in boundaries or form of government shall
100.2not be recognized for aid determinations until the following year.
100.3(c) Changes in boundaries or form of government will only be recognized for the
100.4purposes of this subdivision, to the extent that: (1) changes in market values are included
100.5in market values reported by assessors to the commissioner, and changes in population
100.6and household size are included in their respective certifications to the commissioner as
100.7referenced in section 477A.011, or (2) an annexation information report as provided in
100.8paragraph (d) is received by the commissioner on or before July 15 of the aid calculation
100.9year. Revisions to estimates or data for use in recognizing changes in boundaries or form
100.10of government are not effective for purposes of this subdivision unless received by the
100.11commissioner on or before July 15 of the aid calculation year. Clerical errors in the
100.12certification or use of estimates and data established as of July 15 in the aid calculation
100.13year are subject to correction within the time periods allowed under subdivision 3.
100.14(d) In the case of an annexation, an annexation information report may be completed
100.15by the annexing jurisdiction and submitted to the commissioner for purposes of this
100.16subdivision if the net tax capacity of annexed area for the assessment year preceding the
100.17effective date of the annexation exceeds five percent of the city's net tax capacity for the
100.18same year. The form and contents of the annexation information report shall be prescribed
100.19by the commissioner. The commissioner shall change the net tax capacity, the population,
100.20the population decline, the commercial industrial percentage, and the transformed
100.21population for the annexing jurisdiction only if the annexation information report provides
100.22data the commissioner determines to be reliable for all of these factors used to compute city
100.23revenue need for the annexing jurisdiction. The commissioner shall adjust the pre-1940
100.24housing percentage and household size only if the entire area of an existing city or, town,
100.25or unorganized territory is annexed or consolidated and only if reliable data is available
100.26for all of these factors used to compute city revenue need for the annexing jurisdiction.
100.27EFFECTIVE DATE.This section is effective for aids payable in 2016 and thereafter.

100.28    Sec. 5. Minnesota Statutes 2014, section 477A.015, is amended to read:
100.29477A.015 PAYMENT DATES.
100.30The commissioner of revenue shall make the payments of local government aid to
100.31affected taxing authorities in two four installments on March 15, July 20 and December 26
100.3215, September 15, and November 15 annually.
100.33When the commissioner of public safety determines that a local government has
100.34suffered financial hardship due to a natural disaster, the commissioner of public safety
101.1shall notify the commissioner of revenue, who shall make payments of aids under sections
101.2477A.011 to 477A.014, which are otherwise due on December 26 November 15, as soon
101.3as is practical after the determination is made but not before July 20.
101.4The commissioner may pay all or part of the payments of aids under sections
101.5477A.011 to 477A.014, which are due on December 26 November 15 at any time after
101.6August 15 if a local government requests such payment as being necessary for meeting its
101.7cash flow needs. For aids payable in 2013 only, a city that is located in an area deemed a
101.8disaster area during the month of April 2013, as defined in section 12A.02, subdivision 5,
101.9shall receive its December 26, 2013 payment with its July 20, 2013 payment.
101.10EFFECTIVE DATE.This section is effective for aids payable in calendar year
101.112016 and thereafter.

101.12    Sec. 6. Minnesota Statutes 2014, section 477A.017, subdivision 2, is amended to read:
101.13    Subd. 2. State auditor's duties. The state auditor shall prescribe uniform financial
101.14accounting and reporting standards in conformity with national standards to be applicable
101.15to cities and towns of more than 2,500 population and uniform reporting standards to be
101.16applicable to cities and towns of less than 2,500 population.
101.17EFFECTIVE DATE.This section applies to reporting of financial information for
101.18years ending on or after December 31, 2015.

101.19    Sec. 7. Minnesota Statutes 2014, section 477A.017, subdivision 3, is amended to read:
101.20    Subd. 3. Conformity. Other law to the contrary notwithstanding, in order to receive
101.21distributions under sections 477A.011 to 477A.03, counties and, cities, and towns must
101.22conform to the standards set in subdivision 2 in making all financial reports required to be
101.23made to the state auditor after June 30, 1984.
101.24EFFECTIVE DATE.This section applies to reporting of financial information for
101.25years ending on or after December 31, 2015.

101.26    Sec. 8. Minnesota Statutes 2014, section 477A.03, subdivision 2a, is amended to read:
101.27    Subd. 2a. Cities. For aids payable in 2014, the total aid paid under section
101.28477A.013, subdivision 9 , is $507,598,012. The total aid paid under section 477A.013,
101.29subdivision 9
, is $516,898,012 for aids payable in 2015. For aids payable in 2016 and
101.30thereafter, the total aid paid under section 477A.013, subdivision 9, is $519,398,012
101.31$540,940,079. For aids payable in 2017 and thereafter, the total aid paid under section
101.32477A.013, subdivision 9, is $564,982,145.
102.1EFFECTIVE DATE.This section is effective for aids payable in calendar year
102.22016 and thereafter.

102.3    Sec. 9. Minnesota Statutes 2014, section 477A.03, subdivision 2b, is amended to read:
102.4    Subd. 2b. Counties. (a) For aids payable in 2014 and thereafter through 2016,
102.5the total aid payable under section 477A.0124, subdivision 3, is $100,795,000. For
102.6aids payable in 2017 and thereafter, the total aid payable under section 477A.0124,
102.7subdivision 3, is $102,895,000. Each calendar year, $500,000 of this appropriation shall
102.8be retained by the commissioner of revenue to make reimbursements to the commissioner
102.9of management and budget for payments made under section 611.27. The reimbursements
102.10shall be to defray the additional costs associated with court-ordered counsel under section
102.11611.27 . Any retained amounts not used for reimbursement in a year shall be included in
102.12the next distribution of county need aid that is certified to the county auditors for the
102.13purpose of property tax reduction for the next taxes payable year.
102.14    (b) For aids payable in 2014 and thereafter through 2016, the total aid under section
102.15477A.0124, subdivision 4 , is $104,909,575 $129,909,575. For aids payable in 2017 and
102.16thereafter, the total aid payable under section 477A.0124, subdivision 4, is $132,509,575.
102.17The commissioner of revenue shall transfer to the commissioner of management and
102.18budget $207,000 annually for the cost of preparation of local impact notes as required by
102.19section 3.987, and other local government activities. The commissioner of revenue shall
102.20transfer to the commissioner of education $7,000 annually for the cost of preparation of
102.21local impact notes for school districts as required by section 3.987. The commissioner of
102.22revenue shall deduct the amounts transferred under this paragraph from the appropriation
102.23under this paragraph. The amounts transferred are appropriated to the commissioner of
102.24management and budget and the commissioner of education respectively.
102.25EFFECTIVE DATE.This section is effective for aids payable in 2016 and thereafter.

102.26    Sec. 10. Minnesota Statutes 2014, section 477A.03, subdivision 2c, is amended to read:
102.27    Subd. 2c. Towns and unorganized territories. For aids payable in 2014 2016
102.28and thereafter, the total aids paid under section 477A.013, subdivision 1, is limited to
102.29$10,000,000 $12,000,000. For aids payable in 2015 and thereafter, the total aids paid
102.30under section 477A.013, subdivision 1, is limited to the amount certified to be paid in
102.31the previous year.
102.32EFFECTIVE DATE.This section is effective for aids payable in 2016 and thereafter.

103.1    Sec. 11. Minnesota Statutes 2014, section 477A.12, subdivision 1, is amended to read:
103.2    Subdivision 1. Types of land; payments. The following amounts are annually
103.3appropriated to the commissioner of natural resources from the general fund for transfer
103.4to the commissioner of revenue. The commissioner of revenue shall pay the transferred
103.5funds to counties as required by sections 477A.11 to 477A.14. The amounts, based on the
103.6acreage as of July 1 of each year prior to the payment year, are:
103.7(1) $5.133 multiplied by (i) the total number of acres of acquired natural resources
103.8land or, at the county's option three-fourths of one percent of the appraised value of all
103.9acquired natural resources land in the county, whichever is greater; and (ii) the total
103.10number of acres in the county that were purchased by a federally recognized Indian tribe
103.11with funding provided under section 97A.056;
103.12(2) $5.133, multiplied by the total number of acres of transportation wetland or, at
103.13the county's option, three-fourths of one percent of the appraised value of all transportation
103.14wetland in the county, whichever is greater;
103.15(3) $5.133, multiplied by the total number of acres of wildlife management land, or,
103.16at the county's option, three-fourths of one percent of the appraised value of all wildlife
103.17management land in the county, whichever is greater;
103.18(4) 50 percent of the dollar amount as determined under clause (1), multiplied by
103.19the number of acres of military refuge land in the county;
103.20(5) $1.50 $2, multiplied by the number of acres of county-administered other natural
103.21resources land in the county;
103.22(6) $5.133, multiplied by the total number of acres of land utilization project land
103.23in the county;
103.24(7) $1.50 $2, multiplied by the number of acres of commissioner-administered other
103.25natural resources land in the county; and
103.26    (8) without regard to acreage, and notwithstanding the rules adopted under section
103.2784A.55 , $300,000 for local assessments under section 84A.55, subdivision 9, that shall be
103.28divided and distributed to the counties containing state-owned lands within a conservation
103.29area in proportion to each county's percentage of the total annual ditch assessments.; and
103.30(9) without regard to acreage, and notwithstanding the rules adopted under section
103.3184A.55, $300,000 for past unpaid local assessments under section 84A.55, subdivision 9,
103.32shall be distributed to the counties containing state-owned lands within a conservation
103.33area in proportion to each county's percentage of the total past unpaid ditch assessments.
103.34The payments shall be made for aids payable in calendar years 2016 through 2025. The
103.35payments made to counties under this paragraph shall be considered the final payment
103.36for this purpose.
104.1The commissioner of natural resources shall certify the number of acres and appraised
104.2values for wildlife management lands under clause (3) for calendar year 2013 to the
104.3commissioner of revenue by June 15, 2014. The commissioner of revenue shall make the
104.4payment for any positive difference in the 2013 payment under clause (3) by June 30, 2014.
104.5EFFECTIVE DATE.Changes to clause (1) are effective for aids payable in
104.6calendar year 2017 and thereafter. Changes to clauses (5), (7), and (9) are effective for
104.7aids payable in calendar year 2015 and thereafter.

104.8    Sec. 12. Minnesota Statutes 2014, section 477A.12, subdivision 2, is amended to read:
104.9    Subd. 2. Procedure. (a) Each county auditor shall certify to the Department of
104.10Natural Resources during July of each year prior to the payment year the number of acres
104.11of county-administered other natural resources land within the county. The Department of
104.12Natural resources may, in addition to the certification of acreage, require descriptive lists
104.13of land so certified. The commissioner of natural resources shall determine and certify to
104.14the commissioner of revenue by March 1 of the payment year:
104.15(1) the number of acres and most recent appraised value of acquired natural
104.16resources land, wildlife management land, and military refuge land within each county;
104.17(2) the number of acres of commissioner-administered natural resources land within
104.18each county;
104.19(3) the number of acres of county-administered other natural resources land within
104.20each county, based on the reports filed by each county auditor with the commissioner
104.21of natural resources; and
104.22(4) the number of acres of land utilization project land within each county; and
104.23(5) the number of acres within each county purchased by a federally recognized
104.24Indian tribe with funding provided under section 97A.056.
104.25(b) The commissioner of transportation shall determine and certify to the
104.26commissioner of revenue by March 1 of the payment year the number of acres of
104.27transportation wetland and the appraised value of the land, but only if it exceeds 500
104.28acres in a county.
104.29(c) Each auditor of a county that contains state-owned lands within a conservation
104.30area shall determine and certify to the commissioner of natural resources by May 31 of
104.31the payment year, the county's ditch assessments for state-owned lands subject to section
104.3284A.55, subdivision 9 . A joint certification for two or more counties may be submitted to
104.33the commissioner of natural resources through the Consolidated Conservation Counties
104.34Joint Powers Board. The commissioner of natural resources shall certify the ditch
104.35assessments to the commissioner of revenue by June 15 of the payment year. The
105.1commissioner of natural resources shall certify the ditch assessments under this paragraph
105.2for payment year 2013 by June 15, 2014. The commissioner of revenue shall make the
105.3payment for 2013 by June 30, 2014.
105.4(d) The commissioner of revenue shall determine the distributions provided for in this
105.5section using: (1) the number of acres and appraised values certified by the commissioner
105.6of natural resources and the commissioner of transportation by March 1 of the payment
105.7year; and (2) ditch assessments under paragraph (c), by July 15 of the payment year.
105.8EFFECTIVE DATE.This section is effective for certifications made in 2016 and
105.9thereafter.

105.10    Sec. 13. Minnesota Statutes 2014, section 477A.13, is amended to read:
105.11477A.13 TIME OF PAYMENT, DEDUCTIONS.
105.12Payments to the counties of the amounts determined under section 477A.12 must
105.13be made by the commissioner of revenue from the general fund at the time provided in
105.14section 477A.015 for the first second installment of local government aid.
105.15EFFECTIVE DATE.This section is effective for aids payable in calendar year
105.162016 and thereafter.

105.17    Sec. 14. Minnesota Statutes 2014, section 477A.15, is amended to read:
105.18477A.15 TACONITE AID REIMBURSEMENT.
105.19Any school district in which is located property which had been entitled to a reduction
105.20of tax pursuant to Minnesota Statutes 1978, section 273.135, subdivision 2, clause (c),
105.21shall receive in 1981 and subsequent years an amount equal to the amount it received in
105.221980 pursuant to Minnesota Statutes 1978, section 298.28, subdivision 1, clause (3)(b).
105.23Payments shall be made pursuant to this section and section 126C.48, subdivision 8,
105.24paragraph (5), by the commissioner of revenue to the taxing jurisdictions on the date in
105.25each calendar year when the first second installment is paid under section 477A.015.
105.26EFFECTIVE DATE.This section is effective for payments made in calendar
105.27year 2016 and thereafter.

105.28    Sec. 15. Minnesota Statutes 2014, section 477A.20, is amended to read:
105.29477A.20 DEBT SERVICE AID; LEWIS AND CLARK JOINT POWERS
105.30BOARD CITY OF WORTHINGTON.
106.1(a) The Lewis and Clark Joint Powers Board The city of Worthington is eligible to
106.2receive an aid distribution under this section equal to (1) the principal and interest payable
106.3in the succeeding calendar year for bonds issued under section 469.194 minus the sum of
106.4(2) the combined adjusted net tax capacity of Rock County and Nobles County for the
106.5assessment year prior to the aid payable year multiplied by 1.5 percent and (3) 50 percent
106.6of any federal aid received to fund the project in the calendar year the total local share. For
106.7purposes of this section, the "total local share" is as follows: the city of Worthington shall
106.8pay $300,000; the city of Luverne shall pay $100,000; Rock County shall pay $50,000; and
106.9Nobles County shall pay $50,000. Each municipality other than the city of Worthington
106.10shall pay the amount indicated to the city of Worthington by July 1 of the year following
106.11the year in which the bonds were issued and in each year thereafter until all principal
106.12and interest has been paid. If a jurisdiction fails to pay the amount as indicated, the aid
106.13reductions for that municipality under section 477A.21 shall be made. The commissioner
106.14of revenue shall add the amount of any aid reduction to the aid distribution under this
106.15section. The Board city of Worthington shall certify to the commissioner of revenue any
106.16federal aid allocated to the project for the calendar year and the principal and interest due
106.17in the succeeding calendar year by June 1 of the aid payable year. The commissioner of
106.18revenue shall calculate the aid payable under this section and certify the amount payable
106.19before July 1 of the aid distribution year. The commissioner shall pay the aid under this
106.20section to the board city of Worthington at the times specified for payments of local
106.21government aid in section 477A.015. An amount sufficient to pay the state aid authorized
106.22under this section is annually appropriated to the commissioner from the general fund.
106.23(b) The board must allocate the aid to the municipalities issuing bonds under section
106.24469.194 in proportion to their principal and interest payments.
106.25(c) If the deduction under paragraph (a), clause (3), eliminates the aid payment
106.26under this section in a calendar year, then the excess of the deduction must be carried
106.27over and used to reduce the principal and interest in the succeeding year or years used to
106.28calculate aid under paragraph (a).
106.29(d) If federal grants and aid received for the project, not deducted under paragraph
106.30(a), clause (3), exceed the total debt service payments for bonds issued under section
106.31469.194, other than payments made with state aid under this section, the joint powers
106.32board must repay any excess to the commissioner of revenue for deposit in the general
106.33fund. The repayment may not exceed the sum of state aid payments under this section and
106.34any other grants made by the state for the project.
106.35(e) (b) This section expires at the earlier of January 1, 2039, or when the bonds
106.36authorized under section 469.194 have been paid or defeased.
107.1EFFECTIVE DATE.This section is effective for aids payable in 2016 and thereafter.

107.2    Sec. 16. [477A.21] AID REDUCTIONS.
107.3If a municipality fails to pay the amount indicated in section 477A.20, paragraph (a),
107.4the following aid reduction for that municipality must be made for that year:
107.5(1) for the city of Luverne, the aid payable under Minnesota Statutes, section
107.6477A.013, subdivision 9, shall be reduced by $100,000;
107.7(2) for Rock County, the aid payable under Minnesota Statutes, section 477A.0124,
107.8subdivision 3, shall be reduced by $50,000; and
107.9(3) for Nobles County, the aid payable under Minnesota Statutes, section 477A.0124,
107.10subdivision 3, shall be reduced by $50,000.
107.11The amount of the aid reductions under this section shall cancel to the general fund.
107.12EFFECTIVE DATE.This section is effective for aids payable in 2016 and thereafter.

107.13    Sec. 17. Laws 2001, First Special Session chapter 5, article 3, section 86, is amended
107.14to read:
107.15    Sec. 86. RED RIVER WATERSHED MANAGEMENT BOARD; PAYMENT
107.16IN LIEU OF TAXES.
107.17    (a) The Red River watershed management board may spend money from its general
107.18fund to compensate counties and townships for lost tax revenue from land that becomes
107.19tax exempt after it is acquired by the board or a member watershed district for flood
107.20damage reduction project. The amount that may be paid under this section to a county
107.21or township must not exceed the tax that was payable to that taxing jurisdiction on the
107.22land in the last taxes payable year before the land became exempt due to the acquisition,
107.23not to exceed $4 $5.133 per acre, multiplied by 20. This total amount may be paid in one
107.24payment, or in equal annual installments over a period that does not exceed 20 years. A
107.25member watershed district of the Red River management board may spend money from its
107.26construction fund for the purposes described in this section.
107.27    (b) For the purposes of this section, "Red River watershed management board"
107.28refers to the board established by Laws 1976, chapter 162, section 1, as amended by Laws
107.291982, chapter 474, section 1, Laws 1983, chapter 338, section 1, Laws 1989 First Special
107.30Session chapter 1, article 5, section 45, Laws 1991, chapter 167, section 1, and Laws
107.311998, chapter 389, article 3, section 29.
107.32EFFECTIVE DATE.This section is effective for aids payable in calendar year
107.332015 and thereafter.

108.1    Sec. 18. 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.
108.2Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of
108.3Oslo shall receive the portion of its aid payment for calendar year 2013 under Minnesota
108.4Statutes, section 477A.013, that was withheld under Minnesota Statutes, section
108.5477A.017, subdivision 3, provided that the state auditor certifies to the commissioner
108.6of revenue that it received audited financial statements from the city for calendar year
108.72012 by December 31, 2013. The commissioner of revenue shall make a payment of
108.8$37,473.50 with the first payment of aids under Minnesota Statutes, section 477A.015.
108.9$37,473.50 is appropriated from the general fund to the commissioner of revenue in fiscal
108.10year 2016 to make this payment.
108.11EFFECTIVE DATE.This section is effective the day following final enactment.

108.12    Sec. 19. 2014 AID PENALTY FORGIVENESS.
108.13(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities
108.14of Dundee, Jeffers, and Woodstock shall receive all of its calendar year 2014 aid payment
108.15that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided
108.16that the state auditor certifies to the commissioner of revenue that the city complied with
108.17all reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3, for
108.18calendar years 2013 and 2014 by June 1, 2015.
108.19(b) The commissioner of revenue shall make payment to each city no later than June
108.2030, 2015. Up to $101,570 of the fiscal year 2015 appropriation for local government aid is
108.21available for the payment under this section.
108.22EFFECTIVE DATE.This section is effective the day following final enactment.

108.23ARTICLE 6
108.24WORKFORCE HOUSING

108.25    Section 1. [116J.549] WORKFORCE HOUSING TAX CREDIT.
108.26    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
108.27have the meanings given.
108.28(b) "City" means a statutory or home rule charter city.
108.29(c) "Eligible project area" means an area that meets the following criteria:
108.30(1) a census block with a population density over 200 persons per square mile
108.31according to the most recent United States census data available;
108.32(2) located in a city with a population greater than 1,500;
108.33(3) having a median number of full-time jobs of at least 500 for the last five years;
109.1(4) the average vacancy rate for housing located in the municipality and in any
109.2statutory or home rule charter city located within 15 miles or less of the boundaries of
109.3the municipality has been three percent or less for at least the immediately preceding
109.4two-year period; and
109.5(5) located in an area served by a joint county-city economic development authority or
109.6located in an area outside the following counties: Anoka, Benton, Carver, Chisago, Dakota,
109.7Hennepin, Isanti, Olmsted, Ramsey, Scott, Sherburne, Stearns, Washington, and Wright.
109.8(d) "Joint county-city economic development authority" means an economic
109.9development authority, formed under Laws 1988, chapter 516, section 1, as a joint
109.10partnership between a city and county and excluding those established by the county only.
109.11(e) "Market rate residential rental properties" means properties that are rented at
109.12market value and excludes: (1) properties constructed with financial assistance requiring
109.13the property to be occupied by residents that meet income limits under federal or state
109.14law of initial occupancy; and (2) properties constructed with federal, state, or local flood
109.15recovery assistance, regardless of whether that assistance imposed income limits as a
109.16condition of receiving assistance.
109.17(f) "Officer" means a person elected or appointed by the board of directors to
109.18manage the daily operations of a business.
109.19(g) "Principal" means a person having authority to act on behalf of a business.
109.20(h) "Qualified investment" means a cash investment or the fair market value
109.21equivalent for common stock, land, a partnership or membership interest, preferred
109.22stock, debt with mandatory conversion to equity, or an equivalent ownership interest as
109.23determined by the commissioner that is made in a qualified workforce housing project.
109.24(i) "Qualified project investor" means an investor who has been certified by the
109.25commissioner under subdivision 2.
109.26(j) "Qualifying workforce housing project" means a project:
109.27(1) for market rate residential rental properties with a minimum of three dwelling
109.28units;
109.29(2) with a cost per unit of no more than $150,000 and no less than $75,000;
109.30(3) located in an eligible project area;
109.31(4) that has more than 50 percent nonstate funding proposed to fund the project; and
109.32(5) that has been designated by the commissioner as a qualifying workforce housing
109.33project.
109.34    Subd. 2. Qualified project investor tax credits. (a) A credit of up to $1,000,000 is
109.35allowed against the tax imposed under chapter 290 for a taxpayer that makes a qualified
110.1investment in a qualified workforce housing project equal to 33 percent of the amount of
110.2the qualified investment.
110.3(b) The credit under this subdivision is allowed in the taxable year that the qualified
110.4workforce housing project has housing units that are certified for occupancy by the
110.5Department of Labor and Industry or a city inspector.
110.6(c) The commissioner must not allocate more than $5,000,000 in credits to qualified
110.7project investors for taxable years beginning after December 31, 2015, and before January
110.81, 2017, and must not allocate more than $7,000,000 in credits to qualified project
110.9investors for taxable years beginning after December 31, 2016, and before January 1,
110.102022. The commissioner must not allocate more than 40 percent of qualified project
110.11investor tax credits to the same qualified workforce housing project.
110.12(d) Applications for tax credits for a taxable year must be made available by
110.13the commissioner by November 1 of the prior calendar year. The commissioner must
110.14make every effort to provide applications and relevant data to applicants in a simple,
110.15concise manner using plain language. Tax credits must be allocated to qualified project
110.16investors in the order that the tax credit request applications are filed, except where
110.17the commissioner determines the investment is circumventing the spirit of the law or
110.18where little or no local economic growth would occur as a result of the investment. The
110.19commissioner must approve or reject a tax credit request application within 15 days of
110.20receiving the application. The investment specified in the application must be made within
110.2160 days of the allocation of the credit. If the investment is not made within 60 days, the
110.22credit allocation is canceled. A qualified project investor who fails to invest as specified in
110.23the application must notify the commissioner immediately and no later than five business
110.24days after the expiration of the 60-day investment period. The commissioner may require
110.25an application fee for the applications submitted under this subdivision.
110.26(e) All tax credit request applications filed with the department on the same day
110.27must be treated as having been filed contemporaneously. If two or more qualified project
110.28investors file tax credit request applications on the same day, and the aggregate amount of
110.29credit allocation claims exceeds the aggregate limit of credits under this section or the lesser
110.30amount of credits that remain unallocated on that day, then the credits must be allocated
110.31among the qualified project investors who filed on that day on a pro rata basis with respect
110.32to the amounts claimed. The pro rata allocation for any one qualified project investor is the
110.33product obtained by multiplying a fraction, the numerator of which is the amount of the
110.34credit allocation claim filed on behalf of a qualified project investor and the denominator
110.35of which is the total of all credit allocation claims filed on behalf of all applicants on that
110.36day, by the amount of credits that remain unallocated on that day for the taxable year.
111.1(f) If a credit allocation has been granted to the qualified project investor and the
111.2qualified project investor has made the investment specified in the application as required
111.3under paragraph (d), the commissioner must issue a credit certificate to the taxpayer
111.4designated in the application. The credit certificate must state the amount of the credit.
111.5The commissioner must notify the commissioner of revenue of credit certificates issued
111.6under this subdivision.
111.7(g) The commissioner of revenue shall prescribe the manner in which the credit
111.8may be issued or claimed.
111.9    Subd. 3. Transfer and revocation of credits. (a) A tax credit under this section
111.10is not transferable to any other taxpayer. Credits passed through to partners, members,
111.11shareholders, or owners are not considered transfers for purposes of this subdivision.
111.12(b) If the commissioner discovers that a qualified project investor did not meet the
111.13eligibility requirements for the tax credits under this section after the credits have been
111.14allocated, the commissioner may determine that credit allocated is revoked and must be
111.15repaid by the investor. The commissioner must notify the commissioner of revenue of
111.16every credit revoked and subject to full or partial repayment under this section.
111.17    Subd. 4. Reporting. Beginning in 2017, the commissioner must annually report
111.18by March 15 to the chairs and ranking minority members of the committees in the senate
111.19and house of representatives with jurisdiction over taxes and economic development, in
111.20compliance with sections 3.195 and 3.197, on tax credits issued under this section. The
111.21report must include:
111.22(1) information about the availability of workforce housing in greater Minnesota;
111.23(2) information from employers and communities in greater Minnesota about
111.24whether or not workforce housing needs are being met;
111.25(3) which projects have been funded by the workforce housing tax credit and
111.26whether previously funded projects have created economic growth;
111.27(4) any suggested legislation to accelerate construction of workforce housing;
111.28(5) the number and amount of tax credits issued and the identity of the recipients;
111.29(6) the number and amount of tax credits revoked under subdivision 3;
111.30(7) the location, total cost of, and expected rent to be received as a result of
111.31qualifying workforce housing projects funded under this section; and
111.32(8) any other relevant information needed to evaluate the effect of the workforce
111.33housing tax credits.
111.34EFFECTIVE DATE.This section is effective for taxable years beginning after
111.35December 31, 2015.

112.1    Sec. 2. Minnesota Statutes 2014, section 290.06, is amended by adding a subdivision
112.2to read:
112.3    Subd. 37. Workforce housing tax credit. (a) A taxpayer is allowed a credit against
112.4the tax under this chapter equal to the amount certified by the commissioner of employment
112.5and economic development under section 116J.549 to the taxpayer for the taxable year.
112.6(b) Credits allowed to a partnership, limited liability company taxed as a partnership,
112.7corporation, or multiple owners of property are passed through to the partners, members,
112.8shareholders, or owners, respectively, pro rata to each partner, member, shareholder, or
112.9owner based on that person's share of the entity's income for the taxable year.
112.10(c) If the amount of the credit that the taxpayer is eligible to receive under this
112.11subdivision exceeds the liability for tax under this chapter, the commissioner shall
112.12refund the excess to the taxpayer. For purposes of this subdivision, "liability for tax"
112.13means the tax imposed under this chapter for the taxable year reduced by the sum of the
112.14nonrefundable credits allowed under this chapter.
112.15EFFECTIVE DATE.This section is effective for taxable years beginning after
112.16December 31, 2015.

112.17    Sec. 3. Minnesota Statutes 2014, section 469.174, subdivision 12, is amended to read:
112.18    Subd. 12. Economic development district. "Economic development district"
112.19means a type of tax increment financing district which consists of any project, or portions
112.20of a project, which the authority finds to be in the public interest because:
112.21(1) it will discourage commerce, industry, or manufacturing from moving their
112.22operations to another state or municipality; or
112.23(2) it will result in increased employment in the state; or
112.24(3) it will result in preservation and enhancement of the tax base of the state; or
112.25(4) it satisfies the requirements of a workforce housing project under section
112.26469.176, subdivision 4c, paragraph (d).
112.27EFFECTIVE DATE.This section is effective for districts for which the request for
112.28certification is made after June 30, 2015.

112.29    Sec. 4. Minnesota Statutes 2014, section 469.175, subdivision 3, is amended to read:
112.30    Subd. 3. Municipality approval. (a) A county auditor shall not certify the original
112.31net tax capacity of a tax increment financing district until the tax increment financing plan
112.32proposed for that district has been approved by the municipality in which the district
112.33is located. If an authority that proposes to establish a tax increment financing district
113.1and the municipality are not the same, the authority shall apply to the municipality in
113.2which the district is proposed to be located and shall obtain the approval of its tax
113.3increment financing plan by the municipality before the authority may use tax increment
113.4financing. The municipality shall approve the tax increment financing plan only after a
113.5public hearing thereon after published notice in a newspaper of general circulation in the
113.6municipality at least once not less than ten days nor more than 30 days prior to the date
113.7of the hearing. The published notice must include a map of the area of the district from
113.8which increments may be collected and, if the project area includes additional area, a map
113.9of the project area in which the increments may be expended. The hearing may be held
113.10before or after the approval or creation of the project or it may be held in conjunction with
113.11a hearing to approve the project.
113.12    (b) Before or at the time of approval of the tax increment financing plan, the
113.13municipality shall make the following findings, and shall set forth in writing the reasons
113.14and supporting facts for each determination:
113.15    (1) that the proposed tax increment financing district is a redevelopment district, a
113.16renewal or renovation district, a housing district, a soils condition district, or an economic
113.17development district; if the proposed district is a redevelopment district or a renewal or
113.18renovation district, the reasons and supporting facts for the determination that the district
113.19meets the criteria of section 469.174, subdivision 10, paragraph (a), clauses (1) and (2), or
113.20subdivision 10a, must be documented in writing and retained and made available to the
113.21public by the authority until the district has been terminated;
113.22    (2) that, in the opinion of the municipality:
113.23    (i) the proposed development or redevelopment would not reasonably be expected to
113.24occur solely through private investment within the reasonably foreseeable future; and
113.25    (ii) the increased market value of the site that could reasonably be expected to occur
113.26without the use of tax increment financing would be less than the increase in the market
113.27value estimated to result from the proposed development after subtracting the present
113.28value of the projected tax increments for the maximum duration of the district permitted
113.29by the plan. The requirements of this item do not apply if the district is a housing district;
113.30    (3) that the tax increment financing plan conforms to the general plan for the
113.31development or redevelopment of the municipality as a whole;
113.32    (4) that the tax increment financing plan will afford maximum opportunity,
113.33consistent with the sound needs of the municipality as a whole, for the development or
113.34redevelopment of the project by private enterprise;
113.35    (5) that the municipality elects the method of tax increment computation set forth in
113.36section 469.177, subdivision 3, paragraph (b), if applicable.
114.1    (c) When the municipality and the authority are not the same, the municipality shall
114.2approve or disapprove the tax increment financing plan within 60 days of submission by the
114.3authority. When the municipality and the authority are not the same, the municipality may
114.4not amend or modify a tax increment financing plan except as proposed by the authority
114.5pursuant to subdivision 4. Once approved, the determination of the authority to undertake
114.6the project through the use of tax increment financing and the resolution of the governing
114.7body shall be conclusive of the findings therein and of the public need for the financing.
114.8    (d) For a district that is subject to the requirements of paragraph (b), clause (2),
114.9item (ii), the municipality's statement of reasons and supporting facts must include all of
114.10the following:
114.11    (1) an estimate of the amount by which the market value of the site will increase
114.12without the use of tax increment financing;
114.13    (2) an estimate of the increase in the market value that will result from the
114.14development or redevelopment to be assisted with tax increment financing; and
114.15    (3) the present value of the projected tax increments for the maximum duration of
114.16the district permitted by the tax increment financing plan.
114.17    (e) For purposes of this subdivision, "site" means the parcels on which the
114.18development or redevelopment to be assisted with tax increment financing will be located.
114.19(f) Before or at the time of approval of the tax increment financing plan for a district
114.20to be used to fund a workforce housing project under section 469.176, subdivision 4c,
114.21paragraph (d), the municipality shall make the following findings and shall set forth in
114.22writing the reasons and supporting facts for each determination:
114.23(1) the city has a population greater than 1,500;
114.24(2) having a median number of full-time jobs of at least 500 for the last five years;
114.25(3) located in a census block with a population density over 200 persons per square
114.26mile, according to the most recent United States census data available;
114.27(4) located in an area served by a joint county-city economic development authority
114.28or outside the following counties: Anoka, Benton, Carver, Chisago, Dakota, Hennepin,
114.29Isanti, Olmsted, Ramsey, Scott, Sherburne, Stearns, Washington, and Wright;
114.30(5) the average vacancy rate for rental housing located in the municipality, and in
114.31any statutory or home rule charter city located within 15 miles or less of the boundaries
114.32of the municipality, has been three percent or less for at least the immediately preceding
114.33two-year period;
114.34(6) at least one business located in the municipality, or within 15 miles of the
114.35municipality, that employs a minimum of 20 full-time equivalent employees in aggregate
115.1has provided a written statement to the municipality indicating that the lack of available
115.2rental housing has impeded their ability to recruit and hire employees; and
115.3(7) the municipality and the development authority intend to use increments from
115.4the district for the development of market rate residential rental properties and includes
115.5new modular homes or new manufactured homes, new manufactured homes on leased
115.6land, or in a manufacturer's home park to serve employees or business located in the
115.7municipality or surrounding area.
115.8For purposes of this section: (1) "joint county-city economic development authority"
115.9means an economic development authority, formed under Laws 1988, chapter 516, section
115.101, as a joint partnership between a city and county and excluding those established by the
115.11county only; and (2) "market rate residential rental properties" means properties that are
115.12rented at market value and excludes: (i) properties constructed with financial assistance
115.13requiring the property to be occupied by residents that meet income limits under federal or
115.14state law of initial occupancy; and (ii) properties constructed with federal, state, or local
115.15flood recovery assistance, regardless of whether that assistance imposed income limits as a
115.16condition of receiving assistance.
115.17The authority to request certification of districts under this section expires June
115.1830, 2020.
115.19EFFECTIVE DATE.This section is effective for districts for which the request for
115.20certification is made after June 30, 2015.

115.21    Sec. 5. Minnesota Statutes 2014, section 469.176, subdivision 4c, is amended to read:
115.22    Subd. 4c. Economic development districts. (a) Revenue derived from tax increment
115.23from an economic development district may not be used to provide improvements, loans,
115.24subsidies, grants, interest rate subsidies, or assistance in any form to developments
115.25consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and
115.26facilities (determined on the basis of square footage) are used for a purpose other than:
115.27    (1) the manufacturing or production of tangible personal property, including
115.28processing resulting in the change in condition of the property;
115.29    (2) warehousing, storage, and distribution of tangible personal property, excluding
115.30retail sales;
115.31    (3) research and development related to the activities listed in clause (1) or (2);
115.32    (4) telemarketing if that activity is the exclusive use of the property;
115.33    (5) tourism facilities; or
115.34    (6) space necessary for and related to the activities listed in clauses (1) to (5); or
115.35    (7) a workforce housing project that satisfies the requirements of paragraph (d).
116.1    (b) Notwithstanding the provisions of this subdivision, revenues derived from tax
116.2increment from an economic development district may be used to provide improvements,
116.3loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000
116.4square feet of any separately owned commercial facility located within the municipal
116.5jurisdiction of a small city, if the revenues derived from increments are spent only to
116.6assist the facility directly or for administrative expenses, the assistance is necessary to
116.7develop the facility, and all of the increments, except those for administrative expenses,
116.8are spent only for activities within the district.
116.9    (c) A city is a small city for purposes of this subdivision if the city was a small city
116.10in the year in which the request for certification was made and applies for the rest of
116.11the duration of the district, regardless of whether the city qualifies or ceases to qualify
116.12as a small city.
116.13(d) A project qualifies as a workforce housing project under this subdivision if
116.14increments from the district are used exclusively to assist in the acquisition of property;
116.15construction of improvements; and provision of loans or subsidies, grants, interest
116.16rate subsidies, public infrastructure, and related financing costs for rental housing
116.17developments in the municipality, and if the governing body of the municipality made the
116.18findings for the project required by section 469.175, subdivision 3, paragraph (f).
116.19EFFECTIVE DATE.This section is effective for districts for which the request for
116.20certification is made after June 30, 2015.

116.21    Sec. 6. Minnesota Statutes 2014, section 469.1761, is amended by adding a subdivision
116.22to read:
116.23    Subd. 5. Income limits; Minnesota Housing Finance Agency challenge program.
116.24For a project receiving a loan or grant from the Minnesota Housing Finance Agency
116.25challenge program under section 462A.33, the income limits under section 462A.33 are
116.26substituted for the applicable income limits under subdivision 2 or 3 for the project.
116.27EFFECTIVE DATE.This section is effective for districts for which the request for
116.28certification is made after June 30, 2015.

116.29ARTICLE 7
116.30MINERALS

116.31    Section 1. Minnesota Statutes 2014, section 298.17, is amended to read:
116.32298.17 OCCUPATION TAXES TO BE APPORTIONED.
117.1(a) All occupation taxes paid by persons, copartnerships, companies, joint stock
117.2companies, corporations, and associations, however or for whatever purpose organized,
117.3engaged in the business of mining or producing iron ore or other ores, when collected
117.4shall be apportioned and distributed in accordance with the Constitution of the state of
117.5Minnesota, article X, section 3, in the manner following: 90 percent shall be deposited
117.6in the state treasury and credited to the general fund of which four-ninths shall be used
117.7for the support of elementary and secondary schools; and ten percent of the proceeds of
117.8the tax imposed by this section shall be deposited in the state treasury and credited to the
117.9general fund for the general support of the university.
117.10(b) Of the money apportioned to the general fund by this section: (1) there
117.11is annually appropriated and credited to the mining environmental and regulatory
117.12account in the special revenue fund an amount equal to the greater of $1,500,000 or
117.13that which would have been generated by a 2-1/2 cent tax imposed by section 298.24
117.14on each taxable ton produced in the preceding calendar year. Money in the mining
117.15environmental and regulatory account is appropriated annually to the commissioner of
117.16natural resources to fund agency staff to work on environmental issues and provide
117.17regulatory services for ferrous and nonferrous mining operations in this state. Payment to
117.18the mining environmental and regulatory account shall be made by on July 1 annually.
117.19The commissioner of natural resources shall execute an interagency agreement with
117.20the Pollution Control Agency to assist with the provision of environmental regulatory
117.21services such as monitoring and permitting required for ferrous and nonferrous mining
117.22operations; (2) there is annually appropriated and credited to the Iron Range Resources and
117.23Rehabilitation Board account in the special revenue fund an amount equal to that which
117.24would have been generated by a 1.5 cent tax imposed by section 298.24 on each taxable
117.25ton produced in the preceding calendar year, to be expended for the purposes of section
117.26298.22 ; and (3) there is annually appropriated and credited to the Iron Range Resources
117.27and Rehabilitation Board account in the special revenue fund for transfer to the Iron Range
117.28school consolidation and cooperatively operated school account under section 298.28,
117.29subdivision 7a
, an amount equal to that which would have been generated by a six cent tax
117.30imposed by section 298.24 on each taxable ton produced in the preceding calendar year.
117.31Payment to the Iron Range Resources and Rehabilitation Board account shall be made by
117.32May 15 on July 1 annually; and (4) there is annually appropriated and credited to the Iron
117.33Range Resources and Rehabilitation Board account in the special revenue fund for transfer
117.34to the energy efficiency and mining protection account under section 298.227, paragraph
117.35(d), an amount equal to that which would have been generated by a 15 cent tax imposed
118.1by section 298.24 on each taxable ton produced in the preceding year. Payment to the Iron
118.2Range Resources and Rehabilitation Board account shall be made on July 1 annually.
118.3(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i)
118.4to provide environmental development grants to local governments located within any
118.5county in region 3 as defined in governor's executive order number 60, issued on June
118.612, 1970, which does not contain a municipality qualifying pursuant to section 273.134,
118.7paragraph (b)
, or (ii) to provide economic development loans or grants to businesses
118.8located within any such county, provided that the county board or an advisory group
118.9appointed by the county board to provide recommendations on economic development
118.10shall make recommendations to the Iron Range Resources and Rehabilitation Board
118.11regarding the loans. Payment to the Iron Range Resources and Rehabilitation Board
118.12account shall be made by May 15 on July 1 annually.
118.13(d) Of the money allocated to Koochiching County, one-third must be paid to the
118.14Koochiching County Economic Development Commission.
118.15EFFECTIVE DATE.This section is effective beginning with the 2015 production
118.16year.

118.17    Sec. 2. Minnesota Statutes 2014, section 298.227, is amended to read:
118.18298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
118.19    (a) An amount equal to that distributed pursuant to each taconite producer's taxable
118.20production and qualifying sales under section 298.28, subdivision 9a, shall be held by
118.21the Iron Range Resources and Rehabilitation Board in a separate taconite economic
118.22development fund for each taconite and direct reduced ore producer. Money from the
118.23fund for each producer shall be released by the commissioner after review by a joint
118.24committee consisting of an equal number of representatives of the salaried employees and
118.25the nonsalaried production and maintenance employees of that producer. The District 11
118.26director of the United States Steelworkers of America, on advice of each local employee
118.27president, shall select the employee members. In nonorganized operations, the employee
118.28committee shall be elected by the nonsalaried production and maintenance employees.
118.29The review must be completed no later than six months after the producer presents a
118.30proposal for expenditure of the funds to the committee. The funds held pursuant to this
118.31section may be released only for workforce development and associated public facility
118.32improvement, or for acquisition of plant and stationary mining equipment and facilities
118.33for the producer or for research and development in Minnesota on new mining, or
118.34taconite, iron, or steel production technology, but only if the producer provides a matching
119.1expenditure equal to the amount of the distribution to be used for the same purpose
119.2beginning with distributions in 2014. Effective for proposals for expenditures of money
119.3from the fund beginning May 26, 2007, the commissioner may not release the funds
119.4before the next scheduled meeting of the board. If a proposed expenditure is not approved
119.5by the board, the funds must be deposited in the Taconite Environmental Protection Fund
119.6under sections 298.222 to 298.225. If a producer uses money which has been released
119.7from the fund prior to May 26, 2007 to procure haulage trucks, mobile equipment, or
119.8mining shovels, and the producer removes the piece of equipment from the taconite tax
119.9relief area defined in section 273.134 within ten years from the date of receipt of the
119.10money from the fund, a portion of the money granted from the fund must be repaid to
119.11the taconite economic development fund. The portion of the money to be repaid is 100
119.12percent of the grant if the equipment is removed from the taconite tax relief area within 12
119.13months after receipt of the money from the fund, declining by ten percent for each of the
119.14subsequent nine years during which the equipment remains within the taconite tax relief
119.15area. If a taconite production facility is sold after operations at the facility had ceased, any
119.16money remaining in the fund for the former producer may be released to the purchaser of
119.17the facility on the terms otherwise applicable to the former producer under this section. If
119.18a producer fails to provide matching funds for a proposed expenditure within six months
119.19after the commissioner approves release of the funds, the funds are available for release to
119.20another producer in proportion to the distribution provided and under the conditions of
119.21this section. Any portion of the fund which is not released by the commissioner within
119.22one year of its deposit in the fund shall be divided between the taconite environmental
119.23protection fund created in section 298.223 and the Douglas J. Johnson economic protection
119.24trust fund created in section 298.292 for placement in their respective special accounts.
119.25Two-thirds of the unreleased funds shall be distributed to the taconite environmental
119.26protection fund and one-third to the Douglas J. Johnson economic protection trust fund.
119.27    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
119.28distributions and the review process, an amount equal to ten cents per taxable ton of
119.29production in 2007, for distribution in 2008 only, that would otherwise be distributed
119.30under paragraph (a), may be used for a loan or grant for the cost of providing for a
119.31value-added wood product facility located in the taconite tax relief area and in a county
119.32that contains a city of the first class. This amount must be deducted from the distribution
119.33under paragraph (a) for which a matching expenditure by the producer is not required. The
119.34granting of the loan or grant is subject to approval by the board. If the money is provided
119.35as a loan, interest must be payable on the loan at the rate prescribed in section 298.2213,
119.36subdivision 3
. (ii) Repayments of the loan and interest, if any, must be deposited in the
120.1taconite environment protection fund under sections 298.222 to 298.225. If a loan or
120.2grant is not made under this paragraph by July 1, 2012, the amount that had been made
120.3available for the loan under this paragraph must be transferred to the taconite environment
120.4protection fund under sections 298.222 to 298.225. (iii) Money distributed in 2008 to the
120.5fund established under this section that exceeds ten cents per ton is available to qualifying
120.6producers under paragraph (a) on a pro rata basis.
120.7(c) Repayment or transfer of money to the taconite environmental protection fund
120.8under paragraph (b), item (ii), must be allocated by the Iron Range Resources and
120.9Rehabilitation Board for public works projects in house legislative districts in the same
120.10proportion as taxable tonnage of production in 2007 in each house legislative district, for
120.11distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution
120.12in 2008. Notwithstanding any other law to the contrary, expenditures under this paragraph
120.13do not require approval by the governor. For purposes of this paragraph, "house legislative
120.14districts" means the legislative districts in existence on May 15, 2009.
120.15(d) An amount equal to that determined under section 298.17, paragraph (b),
120.16clause (4), shall be held by the Iron Range Resources and Rehabilitation Board in a
120.17separate energy efficiency and mining protection account within the taconite economic
120.18development fund that is hereby created for taconite and direct reduced ore producers.
120.19Funds from the account shall be released annually by the Iron Range Resources and
120.20Rehabilitation Board to each producer in direct proportion to the amount of the tax paid by
120.21that producer in the preceding year under section 298.01, as compared to the total amount
120.22of tax paid under section 298.01 in the preceding year by all producers, provided that a
120.23producer shall not be eligible for a distribution in amount greater than the amount of the
120.24tax paid in the preceding year. No expenditure under this section shall be paid unless
120.25approved by seven members of the Iron Range Resources and Rehabilitation Board.
120.26Notwithstanding any other law to the contrary, any amount allocated to the energy
120.27efficiency and mining protection account does not cancel nor is eligible for transfer to
120.28another account or fund.
120.29EFFECTIVE DATE.This section is effective beginning with the 2015 production
120.30year.

120.31    Sec. 3. Minnesota Statutes 2014, section 298.24, subdivision 1, is amended to read:
120.32    Subdivision 1. Imposed; calculation. (a) For concentrate produced in 2013, there is
120.33imposed upon taconite and iron sulphides, and upon the mining and quarrying thereof,
120.34and upon the production of iron ore concentrate therefrom, and upon the concentrate so
121.1produced, a tax of $2.56 per gross ton of merchantable iron ore concentrate produced
121.2therefrom. The tax is also imposed upon other iron-bearing material.
121.3    (b) For concentrates produced in 2014 and subsequent years, the tax rate shall be
121.4equal to the preceding year's tax rate plus an amount equal to the preceding year's tax rate
121.5multiplied by the percentage increase in the implicit price deflator from the fourth quarter
121.6of the second preceding year to the fourth quarter of the preceding year. "Implicit price
121.7deflator" means the implicit price deflator for the gross domestic product prepared by the
121.8Bureau of Economic Analysis of the United States Department of Commerce.
121.9    (c) An additional tax is imposed equal to three cents per gross ton of merchantable
121.10iron ore concentrate for each one percent that the iron content of the product exceeds 72
121.11percent, when dried at 212 degrees Fahrenheit.
121.12    (d) The tax on taconite and iron sulphides shall be imposed on the average of the
121.13production for the current year and the previous two years. The rate of the tax imposed
121.14will be the current year's tax rate. This clause shall not apply in the case of the closing
121.15of a taconite facility if the property taxes on the facility would be higher if this clause
121.16and section 298.25 were not applicable. The tax on other iron-bearing material shall be
121.17imposed on the current year production.
121.18    (e) If the tax or any part of the tax imposed by this subdivision is held to be
121.19unconstitutional, a tax of $2.56 per gross ton of merchantable iron ore concentrate
121.20produced shall be imposed.
121.21    (f) Consistent with the intent of this subdivision to impose a tax based upon the
121.22weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly
121.23determine the weight of merchantable iron ore concentrate included in fluxed pellets by
121.24subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic
121.25flux additives included in the pellets from the weight of the pellets. For purposes of this
121.26paragraph, "fluxed pellets" are pellets produced in a process in which limestone, dolomite,
121.27olivine, or other basic flux additives are combined with merchantable iron ore concentrate.
121.28No subtraction from the weight of the pellets shall be allowed for binders, mineral and
121.29chemical additives other than basic flux additives, or moisture.
121.30    (g)(1) Notwithstanding any other provision of this subdivision, for the first two years
121.31of a plant's commercial production of direct reduced ore from ore mined in this state, no
121.32tax is imposed under this section. As used in this paragraph, "commercial production" is
121.33production of more than 50,000 tons of direct reduced ore in the current year or in any prior
121.34year, "noncommercial production" is production of 50,000 tons or less of direct reduced ore
121.35in any year, and "direct reduced ore" is ore that results in a product that has an iron content
121.36of at least 75 percent. For the third year of a plant's commercial production of direct
122.1reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate otherwise
122.2determined under this subdivision. For the fourth commercial production year, the rate is
122.350 percent of the rate otherwise determined under this subdivision; for the fifth commercial
122.4production year, the rate is 75 percent of the rate otherwise determined under this
122.5subdivision; and for all subsequent commercial production years, the full rate is imposed.
122.6    (2) Subject to clause (1), production of direct reduced ore in this state is subject to
122.7the tax imposed by this section, but if that production is not produced by a producer of
122.8taconite, iron sulfides, or other iron-bearing material, the production of taconite, iron
122.9sulfides, or other iron-bearing material, that is consumed in the production of direct
122.10reduced iron in this state is not subject to the tax imposed by this section on taconite,
122.11iron sulfides, or other iron-bearing material.
122.12    (3) Notwithstanding any other provision of this subdivision, no tax is imposed
122.13on direct reduced ore under this section during the facility's noncommercial production
122.14of direct reduced ore. The taconite or iron sulphides consumed in the noncommercial
122.15production of direct reduced ore is subject to the tax imposed by this section on taconite
122.16and iron sulphides. Three-year average production of direct reduced ore does not
122.17include production of direct reduced ore in any noncommercial year. Three-year average
122.18production for a direct reduced ore facility that has noncommercial production is the
122.19average of the commercial production of direct reduced ore for the current year and the
122.20previous two commercial years.
122.21    (4) This paragraph applies only to plants for which all environmental permits have
122.22been obtained and construction has begun before July 1, 2008 2020.
122.23EFFECTIVE DATE.This section is effective for taxes based on concentrate
122.24produced in 2015 and thereafter.

122.25    Sec. 4. Minnesota Statutes 2014, section 298.24, is amended by adding a subdivision
122.26to read:
122.27    Subd. 5. TEDF; deposits redirected. (a) For concentrates produced by a plant
122.28subject to a reimbursement agreement dated September 9, 2008, by and among Itasca
122.29County, Essar Global Limited, and Minnesota Steel Industries LLC, the provisions of
122.30sections 298.227 and 298.28, subdivision 9a, do not apply to the plant's production.
122.31(b) All amounts not deposited in the taconite economic development fund as a
122.32result of paragraph (a) must be deposited in the Douglas J. Johnson economic protection
122.33trust fund created under section 298.292.
123.1(c) The provisions of this subdivision expire upon certification by the commissioner
123.2of employment and economic development that all requirements of the reimbursement
123.3agreement, as specified in paragraph (a), are satisfied.
123.4EFFECTIVE DATE.This section is effective the day following final enactment.

123.5    Sec. 5. Minnesota Statutes 2014, section 298.28, subdivision 3, is amended to read:
123.6    Subd. 3. Cities; towns. (a) 12.5 cents per taxable ton, less any amount distributed
123.7under subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid
123.8account to be distributed as provided in section 298.282.
123.9    (b) An amount must be allocated to towns or cities that is annually certified by
123.10the county auditor of a county containing a taconite tax relief area as defined in section
123.11273.134, paragraph (b) , within which there is (1) an organized township if, as of January
123.122, 1982, more than 75 percent of the assessed valuation of the township consists of iron
123.13ore or (2) a city if, as of January 2, 1980, more than 75 percent of the assessed valuation
123.14of the city consists of iron ore.
123.15    (c) The amount allocated under paragraph (b) will be the portion of a township's or
123.16city's certified levy equal to the proportion of (1) the difference between 50 percent of
123.17January 2, 1982, assessed value in the case of a township and 50 percent of the January 2,
123.181980, assessed value in the case of a city and its current assessed value to (2) the sum of
123.19its current assessed value plus the difference determined in (1), provided that the amount
123.20distributed shall not exceed $55 per capita in the case of a township or $75 per capita in
123.21the case of a city. For purposes of this limitation, population will be determined according
123.22to the 1980 decennial census conducted by the United States Bureau of the Census. If the
123.23current assessed value of the township exceeds 50 percent of the township's January 2,
123.241982, assessed value, or if the current assessed value of the city exceeds 50 percent of the
123.25city's January 2, 1980, assessed value, this paragraph shall not apply. For purposes of this
123.26paragraph, "assessed value," when used in reference to years other than 1980 or 1982,
123.27means the appropriate net tax capacities multiplied by 10.2.
123.28    (d) In addition to other distributions under this subdivision, three cents per taxable
123.29ton for distributions in 2009 must be allocated for distribution to (1) towns that are entirely
123.30located within the taconite tax relief area defined in section 273.134, paragraph (b); and
123.31(2) the following unorganized territories located in St. Louis County: 56-17; 58-22; 59-16;
123.3259-21; 60-18; and 60-19. For distribution in 2010 through 2014 and for distribution in
123.332018 and subsequent years, the three-cent amount must be annually increased in the
123.34same proportion as the increase in the implicit price deflator as provided in section
123.35298.24, subdivision 1 . The amount available under this paragraph will be to towns shall
124.1be distributed to eligible towns on a per capita basis, provided that no town may receive
124.2more than $50,000 in any year under this paragraph. Any amount of the distribution that
124.3exceeds the $50,000 limitation for a town under this paragraph must be redistributed on
124.4a per capita basis among the other eligible towns, to whose distributions do not exceed
124.5$50,000. The amount available to unorganized territories in St. Louis County may be held
124.6by the county and combined for public infrastructure projects.
124.7EFFECTIVE DATE.This section is effective beginning with the 2015 production
124.8year.

124.9    Sec. 6. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:
124.10    Subd. 7a. Iron Range school consolidation and cooperatively operated school
124.11account. The following amounts must be allocated to the Iron Range Resources and
124.12Rehabilitation Board to be deposited in the Iron Range school consolidation and
124.13cooperatively operated school account that is hereby created:
124.14(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax
124.15imposed under section 298.24; and (ii) for distributions beginning in 2024, five cents per
124.16taxable ton of the tax imposed under section 298.24;
124.17(2) the amount as determined under section 298.17, paragraph (b), clause (3);
124.18(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
124.19proceeds attributable to the increase in the implicit price deflator as provided in section
124.20298.24, subdivision 1 , with the remaining one-third to be distributed to the Douglas J.
124.21Johnson economic protection trust fund;
124.22(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the
124.23increased tax proceeds attributable to the increase in the implicit price deflator as provided
124.24in section 298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining
124.25one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
124.26(iii) for distributions in 2017 and thereafter, an amount equal to two-thirds of the
124.27sum of the increased tax proceeds attributable to the increase in the implicit price deflator
124.28as provided in section 298.24, subdivision 1, for distribution years 2015, 2016, and
124.292017, with the remaining one-third to be distributed to the Douglas J. Johnson economic
124.30protection trust fund; and
124.31(4) any other amount as provided by law.
124.32Expenditures from this account shall be made only to provide disbursements to
124.33assist school districts with the payment of bonds that were issued for qualified school
124.34projects, or for any other school disbursement as approved by the Iron Range Resources
124.35and Rehabilitation Board. For purposes of this section, "qualified school projects" means
125.1school projects within the taconite assistance area as defined in section 273.1341, that were
125.2(1) approved, by referendum, after April 3, 2006; and (2) approved by the commissioner
125.3of education pursuant to section 123B.71.
125.4Beginning in fiscal year 2019, the disbursement to school districts for payments for
125.5bonds issued under section 123A.482, subdivision 9, must be increased each year to
125.6offset any reduction in debt service equalization aid that the school district qualifies for in
125.7that year, under section 123B.53, subdivision 6, compared with the amount the school
125.8district qualified for in fiscal year 2018.
125.9No expenditure under this section shall be made unless approved by seven members
125.10of the Iron Range Resources and Rehabilitation Board.
125.11EFFECTIVE DATE.This section is effective for distributions beginning in 2016
125.12and thereafter.

125.13ARTICLE 8
125.14ELECTRIC GENERATION MACHINERY

125.15    Section 1. Minnesota Statutes 2014, section 216B.1621, subdivision 2, is amended to
125.16read:
125.17    Subd. 2. Commission approval. (a) The commission shall approve an agreement
125.18under this section upon finding that:
125.19(1) the proposed electric service power generation facility could reasonably be
125.20expected to qualify for a market value exclusion under section 272.0211;
125.21(2) (1) the public utility has a contractual option to purchase electric power from
125.22the proposed facility; and
125.23(3) (2) the public utility can use the output from the proposed facility to meet its
125.24future need for power as demonstrated in the most recent resource plan filed with and
125.25approved by the commission under section 216B.2422.
125.26(b) Sections 216B.03, 216B.05, 216B.06, 216B.07, 216B.16, 216B.162, and
125.27216B.23 do not apply to an agreement under this section.
125.28EFFECTIVE DATE.This section is effective beginning with assessment year
125.292016 and thereafter.

125.30    Sec. 2. Minnesota Statutes 2014, section 216B.164, subdivision 2a, is amended to read:
125.31    Subd. 2a. Definitions. (a) For the purposes of this section, the following terms
125.32have the meanings given them.
126.1(b) "Aggregated meter" means a meter located on the premises of a customer's
126.2owned or leased property that is contiguous with property containing the customer's
126.3designated meter.
126.4(c) "Capacity" means the number of megawatts alternating current (AC) at the point
126.5of interconnection between a distributed generation facility and a utility's electric system.
126.6(d) "Cogeneration" means a combined process whereby electrical and useful thermal
126.7energy are produced simultaneously.
126.8(e) "Contiguous property" means property owned or leased by the customer sharing
126.9a common border, without regard to interruptions in contiguity caused by easements,
126.10public thoroughfares, transportation rights-of-way, or utility rights-of-way.
126.11(f) "Customer" means the person who is named on the utility electric bill for the
126.12premises.
126.13(g) "Designated meter" means a meter that is physically attached to the customer's
126.14facility that the customer-generator designates as the first meter to which net metered
126.15credits are to be applied as the primary meter for billing purposes when the customer is
126.16serviced by more than one meter.
126.17(h) "Distributed generation" means a facility that:
126.18(1) has a capacity of ten megawatts or less;
126.19(2) is interconnected with a utility's distribution system, over which the commission
126.20has jurisdiction; and
126.21(3) generates electricity from natural gas, renewable fuel, or a similarly clean fuel,
126.22and may include waste heat, cogeneration, or fuel cell technology.
126.23(i) "High-efficiency distributed generation" means a distributed energy facility that
126.24has a minimum efficiency of 40 percent, as calculated under Minnesota Statutes 2014,
126.25section 272.0211, subdivision 1.
126.26(j) "Net metered facility" means an electric generation facility constructed for the
126.27purpose of offsetting energy use through the use of renewable energy or high-efficiency
126.28distributed generation sources.
126.29(k) "Renewable energy" has the meaning given in section 216B.2411, subdivision 2.
126.30(l) "Standby charge" means a charge imposed by an electric utility upon a distributed
126.31generation facility for the recovery of costs for the provision of standby services, as
126.32provided for in a utility's tariffs approved by the commission, necessary to make electricity
126.33service available to the distributed generation facility.
126.34EFFECTIVE DATE.This section is effective beginning with assessment year
126.352016 and thereafter.

127.1    Sec. 3. Minnesota Statutes 2014, section 216B.2424, subdivision 5, is amended to read:
127.2    Subd. 5. Mandate. (a) A public utility, as defined in section 216B.02, subdivision 4,
127.3that operates a nuclear-powered electric generating plant within this state must construct
127.4and operate, purchase, or contract to construct and operate (1) by December 31, 1998,
127.550 megawatts of electric energy installed capacity generated by farm-grown closed-loop
127.6biomass scheduled to be operational by December 31, 2001; and (2) by December 31,
127.71998, an additional 75 megawatts of installed capacity so generated scheduled to be
127.8operational by December 31, 2002.
127.9(b) Of the 125 megawatts of biomass electricity installed capacity required under
127.10this subdivision, no more than 55 megawatts of this capacity may be provided by a facility
127.11that uses poultry litter as its primary fuel source and any such facility:
127.12(1) need not use biomass that complies with the definition in subdivision 1;
127.13(2) must enter into a contract with the public utility for such capacity, that has an
127.14average purchase price per megawatt hour over the life of the contract that is equal to or
127.15less than the average purchase price per megawatt hour over the life of the contract in
127.16contracts approved by the Public Utilities Commission before April 1, 2000, to satisfy
127.17the mandate of this section, and file that contract with the Public Utilities Commission
127.18prior to September 1, 2000; and
127.19(3) must schedule such capacity to be operational by December 31, 2002.
127.20(c) Of the total 125 megawatts of biomass electric energy installed capacity required
127.21under this section, no more than 75 megawatts may be provided by a single project.
127.22(d) Of the 75 megawatts of biomass electric energy installed capacity required under
127.23paragraph (a), clause (2), no more than 33 megawatts of this capacity may be provided by
127.24a St. Paul district heating and cooling system cogeneration facility utilizing waste wood
127.25as a primary fuel source. The St. Paul district heating and cooling system cogeneration
127.26facility need not use biomass that complies with the definition in subdivision 1.
127.27(e) The public utility must accept and consider on an equal basis with other biomass
127.28proposals:
127.29(1) a proposal to satisfy the requirements of this section that includes a project that
127.30exceeds the megawatt capacity requirements of either paragraph (a), clause (1) or (2), and
127.31that proposes to sell the excess capacity to the public utility or to other purchasers; and
127.32(2) a proposal for a new facility to satisfy more than ten but not more than 20
127.33megawatts of the electrical generation requirements by a small business-sponsored
127.34independent power producer facility to be located within the northern quarter of the state,
127.35which means the area located north of Constitutional Route No. 8 as described in section
127.36161.114, subdivision 2 , and that utilizes biomass residue wood, sawdust, bark, chipped
128.1wood, or brush to generate electricity. A facility described in this clause is not required
128.2to utilize biomass complying with the definition in subdivision 1, but must be under
128.3construction by December 31, 2005.
128.4(f) If a public utility files a contract with the commission for electric energy installed
128.5capacity that uses poultry litter as its primary fuel source, the commission must do a
128.6preliminary review of the contract to determine if it meets the purchase price criteria
128.7provided in paragraph (b), clause (2). The commission shall perform its review and advise
128.8the parties of its determination within 30 days of filing of such a contract by a public
128.9utility. A public utility may submit by September 1, 2000, a revised contract to address the
128.10commission's preliminary determination.
128.11(g) The commission shall finally approve, modify, or disapprove no later than July
128.121, 2001, all contracts submitted by a public utility as of September 1, 2000, to meet the
128.13mandate set forth in this subdivision.
128.14(h) If a public utility subject to this section exercises an option to increase the
128.15generating capacity of a project in a contract approved by the commission prior to April
128.1625, 2000, to satisfy the mandate in this subdivision, the public utility must notify the
128.17commission by September 1, 2000, that it has exercised the option and include in the
128.18notice the amount of additional megawatts to be generated under the option exercised.
128.19Any review by the commission of the project after exercise of such an option shall be
128.20based on the same criteria used to review the existing contract.
128.21(i) A facility specified in this subdivision qualifies for exemption from property
128.22taxation under section 272.02, subdivision 45.
128.23EFFECTIVE DATE.This section is effective beginning with assessment year
128.242016 and thereafter.

128.25    Sec. 4. Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:
128.26    Subd. 9. Personal property; exceptions. Except for the taxable personal property
128.27enumerated below, all personal property and the property described in section 272.03,
128.28subdivision 1
, paragraphs (c) and (d), shall be exempt.
128.29The following personal property shall be taxable:
128.30(a) personal property which is part of an electric generating, transmission, or
128.31distribution system or a pipeline system transporting or distributing water, gas, crude
128.32oil, or petroleum products or mains and pipes used in the distribution of steam or hot or
128.33chilled water for heating or cooling buildings and structures;
128.34(b) railroad docks and wharves which are part of the operating property of a railroad
128.35company as defined in section 270.80;
129.1(c) personal property defined in section 272.03, subdivision 2, clause (3);
129.2(d) leasehold or other personal property interests which are taxed pursuant to section
129.3272.01, subdivision 2 ; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law
129.4providing the property is taxable as if the lessee or user were the fee owner;
129.5(e) manufactured homes and sectional structures, including storage sheds, decks,
129.6and similar removable improvements constructed on the site of a manufactured home,
129.7sectional structure, park trailer or travel trailer as provided in section 273.125, subdivision
129.88
, paragraph (f); and
129.9(f) flight property as defined in section 270.071.
129.10EFFECTIVE DATE.This section is effective beginning with assessment year
129.112016 and thereafter.

129.12    Sec. 5. Minnesota Statutes 2014, section 272.02, subdivision 10, is amended to read:
129.13    Subd. 10. Personal property used for pollution control. Personal property used
129.14primarily for the abatement and control of air, water, or land pollution is exempt to the
129.15extent that it is so used, and real property is exempt if it is used primarily for abatement
129.16and control of air, water, or land pollution as part of an agricultural operation, as a part
129.17of a centralized treatment and recovery facility operating under a permit issued by the
129.18Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota
129.19Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater
129.20treatment facility and for the treatment, recovery, and stabilization of metals, oils,
129.21chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as
129.22part of an electric generation system. For purposes of this subdivision, personal property
129.23includes ponderous machinery and equipment used in a business or production activity
129.24that at common law is considered real property. The real or personal property of an
129.25electric generation system is not eligible for an exemption under this section.
129.26Any taxpayer requesting exemption of all or a portion of any real property or any
129.27equipment or device, or part thereof, operated primarily for the control or abatement of
129.28air, water, or land pollution shall file an application with the commissioner of revenue.
129.29The commissioner shall develop an electronic means to notify interested parties when
129.30electric power generation facilities have filed an application. The Minnesota Pollution
129.31Control Agency shall upon request of the commissioner furnish information and advice to
129.32the commissioner.
129.33The information and advice furnished by the Minnesota Pollution Control
129.34Agency must include statements as to whether the equipment, device, or real property
129.35meets a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution
130.1Control Agency, and whether the equipment, device, or real property is installed or
130.2operated in accordance with it. On determining that property qualifies for exemption,
130.3the commissioner shall issue an order exempting the property from taxation. The
130.4commissioner shall develop an electronic means to notify interested parties when
130.5the commissioner has issued an order exempting property from taxation under this
130.6subdivision. The equipment, device, or real property shall continue to be exempt from
130.7taxation as long as the order issued by the commissioner remains in effect.
130.8EFFECTIVE DATE.This section is effective for assessment year 2016 and
130.9thereafter.

130.10    Sec. 6. [273.129] ELECTRIC GENERATION MACHINERY; VALUATION.
130.11    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
130.12having the meanings given.
130.13(b) "Biomass generating system" means any device used to produce energy by the
130.14direct combustion of carbon-based organisms.
130.15(c) "Coal generating system" means any device whose primary purpose is the
130.16production of electricity derived by the direct combustion of coal to produce steam.
130.17(d) "Electric generation machinery" means all personal property of an electric
130.18generation system, excluding solar energy generating systems and wind energy conversion
130.19systems, used for the purpose of generating electricity.
130.20(e) "Generation capacity" means the generation rate per megawatt as follows:
130.21(1) $0 for hydroelectric generating systems;
130.22(2) $5,000 for machinery used to generate electricity from biomass, natural gas, or
130.23nuclear fuel generation systems; and
130.24(3) $10,000 for machinery used to generate electricity from a coal or oil generation
130.25system or any other fossil fuel.
130.26(f) "Generation rate" means the rate per kilowatt hour as follows:
130.27(1) $.05 for hydroelectric generating systems;
130.28(2) $.0525 for machinery used to generate electricity from biomass, natural gas, or
130.29nuclear fuel generation systems; and
130.30(3) $.055 for machinery used to generate electricity from a coal or oil generation
130.31system or any other fossil fuel.
130.32(g) "Hydroelectric generating system" means any device whose primary purpose is
130.33the production of electricity derived from flowing water.
131.1(h) "Nameplate capacity" means the maximum rated output of a generator, prime
131.2mover, or other electric power production equipment under specific conditions designated
131.3by the manufacturer.
131.4(i) "Natural gas generating system" means any device whose primary purpose is the
131.5production of electricity derived from natural gas.
131.6(j) "Nuclear fuel generating system" means any device whose primary purpose is
131.7the production of electricity generated by the use of the thermal energy released from the
131.8fission of nuclear fuel in a reactor.
131.9(k) "Oil generating system" means any device whose primary purpose is the
131.10production of electricity derived by direct combustion of oil to produce steam.
131.11(l) "Primary fuel source" means the fuel source that is dominantly used by a facility
131.12in the production of electricity.
131.13(m) "Spent fuel" means fuel that has been irradiated in a nuclear reactor to the point
131.14where it is no longer useful in sustaining a nuclear reaction.
131.15(n) "Spent fuel tax base" means $150,000,000 per facility plus $100,000 per ton of
131.16spent fuel of a nuclear generating facility.
131.17    Subd. 1a. Rates; adjustment. The generation and capacity rates as provided in
131.18subdivision 1, paragraphs (e) and (f), shall be increased annually by an amount equal to the
131.19percentage change in the retail price of electricity for the residential sector in Minnesota
131.20for the prior year as reported by the U.S. Energy Information Administration.
131.21    Subd. 2. Electric generation tax base. (a) The commissioner shall annually
131.22calculate the electric generation tax base under this section. An electric generating system
131.23with a capacity of one megawatt or less as determined under subdivision 3 shall be
131.24exempt from the provisions of this section. The commissioner shall calculate the electric
131.25generation tax base using the applicable capacity and generation rate based on the electric
131.26generation system's primary fuel source.
131.27(b) The electric generation tax base for property described in subdivision 1 is equal
131.28to the sum of: (1) its nameplate capacity multiplied by its generation capacity rate; (2)
131.29the average of its electric energy production as reported to the commissioner of revenue
131.30for the immediately preceding five years, multiplied by its generation rate; and (3) its
131.31spent fuel tax base. For electric generating systems that have been operational for less
131.32than the immediately preceding five years, the average of its electric energy production
131.33shall be the average of its electric energy production for the time period since the facility
131.34commenced operation.
131.35(c) For purposes of a levy based on market value, the electric generation tax base
131.36shall become part of the jurisdiction's market value tax base. For all levies based on net
132.1tax capacity, the electric generation tax base multiplied by two percent shall be added
132.2to the jurisdiction's net tax capacity base.
132.3    Subd. 3. Electric generating systems; size. The total capacity of an electric
132.4generating system, pursuant to this section, shall be determined by combining all
132.5generators of each fuel type within each facility, based on the information reported to the
132.6commissioner of revenue as required under subdivision 4.
132.7    Subd. 4. Generating systems; reports. An owner of an electric generating
132.8system subject to taxation under this section shall file a report with the commissioner of
132.9revenue annually on or before February 1 detailing: (1) the amount of electricity that was
132.10produced by each generator in the previous calendar year as reported to the U.S. Energy
132.11Information Administration; and (2) the location, length, and capacity of all transmission
132.12and distribution lines. The commissioner shall prescribe the form of the report. The report
132.13must contain the information required by the commissioner to determine the electric
132.14generation tax base. If an owner of an electric generating system fails to file the report
132.15by the due date, the commissioner of revenue shall determine the tax based upon the
132.16nameplate capacity of the system multiplied by a capacity factor of 100 percent.
132.17EFFECTIVE DATE.This section is effective for assessment year 2016.

132.18    Sec. 7. Minnesota Statutes 2014, section 273.13, subdivision 24, is amended to read:
132.19    Subd. 24. Class 3. Commercial and industrial property and utility real and personal
132.20property is class 3a.
132.21(1) Except as otherwise provided, each parcel of commercial, industrial, or utility
132.22real property has a classification rate of 1.5 percent of the first tier of market value, and 2.0
132.23percent of the remaining market value. In the case of contiguous parcels of property owned
132.24by the same person or entity, only the value equal to the first-tier value of the contiguous
132.25parcels qualifies for the reduced classification rate, except that contiguous parcels owned
132.26by the same person or entity shall be eligible for the first-tier value classification rate on
132.27each separate business operated by the owner of the property, provided the business is
132.28housed in a separate structure. For the purposes of this subdivision, the first tier means the
132.29first $150,000 of market value. Real property owned in fee by a utility for transmission
132.30line right-of-way shall be classified at the classification rate for the higher tier.
132.31For purposes of this subdivision, parcels are considered to be contiguous even if
132.32they are separated from each other by a road, street, waterway, or other similar intervening
132.33type of property. Connections between parcels that consist of power lines or pipelines do
132.34not cause the parcels to be contiguous. Property owners who have contiguous parcels of
132.35property that constitute separate businesses that may qualify for the first-tier classification
133.1rate shall notify the assessor by July 1, for treatment beginning in the following taxes
133.2payable year.
133.3(2) All personal property that is: (i) part of an electric generation, transmission, or
133.4distribution system; or (ii) part of a pipeline system transporting or distributing water, gas,
133.5crude oil, or petroleum products; and (iii) not described in clause (3), and all railroad
133.6operating property has a classification rate as provided under clause (1) for the first tier
133.7of market value and the remaining market value. In the case of multiple parcels in one
133.8county that are owned by one person or entity, only one first tier amount is eligible for the
133.9reduced rate.
133.10(3) The entire market value of personal property that is: (i) tools, and implements,
133.11and machinery of an electric generation, transmission, or distribution system; (ii) tools,
133.12implements, and machinery of a pipeline system transporting or distributing water, gas,
133.13crude oil, or petroleum products; or (iii) the mains and pipes used in the distribution of
133.14steam or hot or chilled water for heating or cooling buildings, has a classification rate as
133.15provided under clause (1) for the remaining market value in excess of the first tier.
133.16EFFECTIVE DATE.This section is effective beginning with assessment year 2016.

133.17    Sec. 8. Minnesota Statutes 2014, section 273.37, subdivision 1, is amended to read:
133.18    Subdivision 1. Listing and assessment where situated. (a) Personal property of
133.19electric light and power companies, and other individuals and partnerships supplying
133.20electric light and power, having a fixed situs outside of the corporate limits of cities shall
133.21be listed and assessed in the district where situated, except as otherwise provided.
133.22(b) Notwithstanding any other law to the contrary, the nonoperating property, and
133.23operating real property of electric light and power companies that is part of an electric
133.24generation system, shall be listed and assessed by the local or county assessor.
133.25EFFECTIVE DATE.This section is effective for assessment year 2016 and
133.26thereafter.

133.27    Sec. 9. [477A.21] ELECTRIC GENERATION PROPERTY TRANSITION AID.
133.28    Subdivision 1. Definitions. For the purposes of this section, "local unit" means a
133.29home rule charter or statutory city, county, or a town.
133.30    Subd. 2. Aid eligibility; payment. For aids payable in 2017 and thereafter,
133.31transition aid under this section for an eligible local unit equals: (1) the net tax capacity of
133.32all personal property of all electric generating systems as determined for assessment year
133.332015 multiplied by the 2015 local tax rate; minus (2) the net tax capacity in the current
134.1year of all electric generating systems as determined under section 273.129, multiplied by
134.2the current local tax rate. Aid to a local unit shall cease beginning in the year following
134.3the year in which the aid equals zero. Once a local unit becomes ineligible for aid under
134.4this section, it may not subsequently become eligible.
134.5The commissioner of revenue shall compute the amount of transition aid payable to
134.6each local unit under this section. On or before August 1 of each year, the commissioner
134.7shall certify the amount of transition aid computed for aids payable in the following year
134.8for each recipient local unit. The commissioner shall pay transition aid to local units
134.9annually at the time provided for the second installment of local government aid under
134.10section 477A.015.
134.11The commissioner of revenue may require counties to provide any data that the
134.12commissioner deems necessary to administer this section.
134.13    Subd. 3. Appropriation. An amount sufficient to pay transition aid under this
134.14section is annually appropriated to the commissioner of revenue from the general fund.
134.15EFFECTIVE DATE.This section is effective beginning with aids payable in 2017.

134.16    Sec. 10. REPEALER.
134.17Minnesota Statutes 2014, sections 272.02, subdivisions 24, 29, 33, 44, 45, 47, 52,
134.1854, 55, 56, 68, 69, 70, 71, 84, 89, 92, 93, 96, and 99; 272.0211, are repealed.
134.19EFFECTIVE DATE.This section is effective beginning with assessment year
134.202016 and thereafter.

134.21ARTICLE 9
134.22RAILROAD RECODIFICATION

134.23    Section 1. Minnesota Statutes 2014, section 270.80, subdivision 1, is amended to read:
134.24    Subdivision 1. Applicability. The following words and phrases when used
134.25in sections 270.80 273.3712 to 270.87 273.3719, unless the context clearly indicates
134.26otherwise, have the meanings ascribed to them in this section.
134.27EFFECTIVE DATE.This section is effective for assessment year 2015 and
134.28thereafter.

134.29    Sec. 2. Minnesota Statutes 2014, section 270.80, subdivision 2, is amended to read:
134.30    Subd. 2. Railroad company. "Railroad company" means:
134.31(1) any company which as a common carrier operates a railroad or a line or lines of
134.32railway railroad situated within or partly within Minnesota; or
135.1(2) any company owning or operating, other than as a common carrier, a railway
135.2principally used for transportation of taconite concentrates from the plant at which the
135.3taconite concentrates are produced in shipping form to a point of consumption or port
135.4for shipment beyond the state; or
135.5(3) any company that produces concentrates from taconite and transports that
135.6taconite in the course of the concentrating process and before the concentrating process is
135.7completed to a concentrating plant located within the state over a railroad that is not a
135.8common carrier and shall does not use a common carrier or taconite railroad company as
135.9defined in clause (2) for the movement of the concentrate to a point of consumption or
135.10port for shipment beyond the state.
135.11EFFECTIVE DATE.This section is effective for assessment year 2015 and
135.12thereafter.

135.13    Sec. 3. Minnesota Statutes 2014, section 270.80, subdivision 3, is amended to read:
135.14    Subd. 3. Operating property. "Operating property" means all property owned
135.15or used by a railroad company in the performance of railroad transportation services,
135.16including without limitation franchises, rights-of-way, bridges, trestles, shops, docks,
135.17wharves, buildings and structures, but not limited to, roads, locomotives, freight cars,
135.18and improvements on leased property. Operating property is listed and assessed by the
135.19commissioner where the property is located.
135.20EFFECTIVE DATE.This section is effective for assessment year 2015 and
135.21thereafter.

135.22    Sec. 4. Minnesota Statutes 2014, section 270.80, subdivision 4, is amended to read:
135.23    Subd. 4. Nonoperating property. "Nonoperating property" means and includes all
135.24property other than property defined in subdivision 3. Nonoperating property shall include
135.25includes real property which that is leased or rented or available for lease or rent to any
135.26person which that is not a railroad company. Vacant land shall be presumed to be available
135.27for lease or rent if it has not been used as operating property for a period of one year
135.28immediately preceding the valuation date. Nonoperating property also includes land which
135.29that is not necessary and integral to the performance of railroad transportation services
135.30and which that is not used on a regular and continual basis in the performance of these
135.31services. Nonoperating property also includes that portion of a general corporation office
135.32building and its proportionate share of land which that is not used for railway railroad
135.33operation or purpose. Nonoperating property is assessed by the local or county assessor.
136.1EFFECTIVE DATE.This section is effective for assessment year 2015 and
136.2thereafter.

136.3    Sec. 5. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
136.4to read:
136.5    Subd. 6. Company. "Company" means any corporation, limited liability company,
136.6association, partnership, trust, estate, fiduciary, public or private organization of any kind,
136.7or any other legal entity.
136.8EFFECTIVE DATE.This section is effective for assessment year 2015 and
136.9thereafter.

136.10    Sec. 6. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
136.11to read:
136.12    Subd. 7. Unit value. "Unit value" means the value of the whole integrated system
136.13of a railroad company operating as a going concern without regard to the value of its
136.14component parts.
136.15EFFECTIVE DATE.This section is effective for assessment year 2015 and
136.16thereafter.

136.17    Sec. 7. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
136.18to read:
136.19    Subd. 8. Book depreciation. "Book depreciation" means the accumulated
136.20depreciation shown by a railroad company on its books or allowed to the company by
136.21the Surface Transportation Board.
136.22EFFECTIVE DATE.This section is effective for assessment year 2015 and
136.23thereafter.

136.24    Sec. 8. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
136.25to read:
136.26    Subd. 9. Equalization. "Equalization" means the adjustment of the estimated value
136.27of railroad operating property to the apparent sales ratio of commercial and industrial
136.28property.
136.29EFFECTIVE DATE.This section is effective for assessment year 2015 and
136.30thereafter.

137.1    Sec. 9. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
137.2to read:
137.3    Subd. 10. Exempt property. "Exempt property" means property which is
137.4nontaxable for ad valorem tax purposes under Minnesota Statutes, including personal
137.5property exempt from taxation under chapter 272.
137.6EFFECTIVE DATE.This section is effective for assessment year 2015 and
137.7thereafter.

137.8    Sec. 10. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
137.9to read:
137.10    Subd. 11. Original cost. "Original cost" means the amount paid for an asset by the
137.11current owner as recorded on the railroad's books or allowed by the Surface Transportation
137.12Board.
137.13EFFECTIVE DATE.This section is effective for assessment year 2015 and
137.14thereafter.

137.15    Sec. 11. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
137.16to read:
137.17    Subd. 12. System. "System" means the total property, real and personal, of a
137.18railroad, that is used in its railroad operations.
137.19EFFECTIVE DATE.This section is effective for assessment year 2015 and
137.20thereafter.

137.21    Sec. 12. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision
137.22to read:
137.23    Subd. 14. Minnesota allocated value. "Minnesota allocated value" means the value
137.24of a railroad company's operating property that is assigned to Minnesota for tax purposes.
137.25EFFECTIVE DATE.This section is effective for assessment year 2015 and
137.26thereafter.

137.27    Sec. 13. Minnesota Statutes 2014, section 270.81, subdivision 1, is amended to read:
137.28    Subdivision 1. Valuation of operating property. The operating property of every
137.29railroad company doing business in Minnesota shall be valued by the commissioner in the
137.30manner prescribed by sections 270.80 273.3712 to 270.87 273.3719.
138.1EFFECTIVE DATE.This section is effective for assessment year 2015 and
138.2thereafter.

138.3    Sec. 14. Minnesota Statutes 2014, section 270.81, subdivision 3, is amended to read:
138.4    Subd. 3. Determination of type of property. (a) The commissioner shall have has
138.5exclusive primary jurisdiction to determine what whether railroad property is operating
138.6property and what is or nonoperating property. In making such the determination, the
138.7commissioner shall may solicit information and opinions from outside the department
138.8and afford all interested persons an opportunity to submit data or views on the subject
138.9in writing or orally.
138.10(b) Local and county assessors may submit written requests to the commissioner,
138.11asking for a determination of the nature of specific whether property owned by a
138.12railroad and located within their assessing jurisdiction is operating or nonoperating. Any
138.13determination made by the commissioner may be appealed by the assessor to the Tax Court
138.14pursuant to chapter 271. The requests must be submitted by April 1 of the assessing year.
138.15The commissioner must send the assessor a written determination by May 1. Assessors may
138.16appeal determinations made by the commissioner to the Tax Court pursuant to chapter 271.
138.17EFFECTIVE DATE.This section is effective for assessment year 2015 and
138.18thereafter.

138.19    Sec. 15. Minnesota Statutes 2014, section 270.81, is amended by adding a subdivision
138.20to read:
138.21    Subd. 6. Deduction for nonoperating and exempt property. Property that was part
138.22of the system, but is nonoperating property, or that is exempt from ad valorem taxation, is
138.23excluded from the Minnesota allocated value under section 273.3718, subdivision 1a. Only
138.24qualifying property located in Minnesota may be deducted from the Minnesota allocated
138.25value. The commissioner must deduct the market value of the property to be excluded. This
138.26must be calculated by multiplying the book value of the property by the market-to-book
138.27ratio of the unit. The company has the burden of proof to establish that property should
138.28be excluded from the Minnesota allocated value. The railroad company must submit
138.29schedules of exempt or nonoperating property as the commissioner may require. The
138.30remaining amount after this deduction is the Minnesota apportionable market value.
138.31EFFECTIVE DATE.This section is effective for assessment year 2015 and
138.32thereafter.

139.1    Sec. 16. Minnesota Statutes 2014, section 270.82, is amended to read:
139.2270.82 REPORTS OF RAILROAD COMPANIES.
139.3    Subdivision 1. Annual report required. Before March 31, every railroad company
139.4doing business in Minnesota shall annually must file with the commissioner on or before
139.5March 31 a an annual report under oath setting forth the information prescribed by the
139.6commissioner to enable the commissioner to make the valuation and equalization required
139.7by sections 270.80 273.3712 to 270.87. 273.3719. The commissioner shall prescribe the
139.8content, format, and manner of the report pursuant to section 270C.30. If a report is made
139.9by electronic means, the taxpayer's signature is defined pursuant to section 270C.304,
139.10except that a "law administered by the commissioner" includes the property tax laws.
139.11    Subd. 2. Extension of time. If the commissioner for good determines that there is
139.12reasonable cause, the commissioner may extend the time for filing the report required by
139.13subdivision 1 for up to 15 days the time for filing the report required by subdivision 1.
139.14    Subd. 3. Amended reports. A railroad company may file an amended report to
139.15correct or add information to the original report. Amended reports must be filed with
139.16the commissioner by April 30.
139.17    Subd. 4. Failure to file reports. (a) The commissioner may make the valuation
139.18provided for by sections 273.3712 to 237.3719, according to the commissioner's best
139.19judgment based on available information, if any railroad company does not:
139.20(1) make the report required by this section;
139.21(2) permit an inspection and examination of its property, records, books, accounts,
139.22or other papers when requested by the commissioner; or
139.23(3) appear before the commissioner or a person appointed under 273.3715, when
139.24required to do so.
139.25(b) If the commissioner makes the valuation pursuant to paragraph (a), the
139.26commissioner's valuation is final. Notwithstanding any other law to the contrary,
139.27the commissioner's valuation made pursuant to this subdivision is not appealable
139.28administratively.
139.29EFFECTIVE DATE.This section is effective for assessment year 2015 and
139.30thereafter.

139.31    Sec. 17. Minnesota Statutes 2014, section 270.83, subdivision 1, is amended to read:
139.32    Subdivision 1. Powers of commissioner. The commissioner shall have has the
139.33power to examine or cause to be examined any books, papers, records, or memoranda
139.34relevant to the determination of the valuation of operating property as herein provided.
140.1The commissioner shall have the further power to may require the attendance of any
140.2person having knowledge or information in the premises concerning the valuation of the
140.3operating property, to compel the production of books, papers, records, or memoranda by
140.4persons so required to attend, to take testimony on matters material to such determination
140.5determine the valuation of operating property and administer oaths or affirmations.
140.6EFFECTIVE DATE.This section is effective for assessment year 2015 and
140.7thereafter.

140.8    Sec. 18. Minnesota Statutes 2014, section 270.83, subdivision 2, is amended to read:
140.9    Subd. 2. Appointment of persons; subpoenas. For the purpose of making such
140.10examinations, The commissioner may appoint such persons as the commissioner may
140.11deem deems necessary to make the examinations described in subdivision 1. Such
140.12persons shall have the rights and powers of the examining of Persons appointed may
140.13examine books, papers, records or memoranda, and of subpoenaing subpoena witnesses,
140.14administering administer oaths and affirmations, and taking of take testimony, which are
140.15conferred upon the commissioner hereby. The court administrator of any court of record,
140.16upon demand of any such person appointed, shall issue a subpoena for the attendance of
140.17any witness or the production of any books, papers, records, or memoranda before such
140.18person. The commissioner may also issue subpoenas for the appearance of witnesses
140.19before the commissioner or before such persons. Disobedience of subpoenas so issued
140.20shall be punished by the district court of the district in which the subpoena is issued for a
140.21contempt of the district court. Failure to comply with a subpoena shall be punished in the
140.22same manner as contempt of the district court.
140.23EFFECTIVE DATE.This section is effective for assessment year 2015 and
140.24thereafter.

140.25    Sec. 19. Minnesota Statutes 2014, section 270.84, is amended to read:
140.26270.84 ANNUAL VALUATION OF OPERATING PROPERTY.
140.27    Subdivision 1. Annual valuation; rules. (a) Before July 1, the commissioner
140.28shall annually between March 31 and May 31 make a determination of must determine
140.29the fair market value of the operating property of every railroad company doing business
140.30in this state as of January 2 of the year in which the valuation is made. In making
140.31this determination, The commissioner shall must employ generally accepted appraisal
140.32principles and practices which may include the unit method of determining value., and
140.33approaches approved by the Western States Association of Tax Administrators, National
141.1Conference of Unit Valuation States, and the International Association of Assessing
141.2Officers.
141.3(b) The unit value of railroad property is the reconciled value considering the cost,
141.4income, and market approaches under subdivisions 1a, 1b, and 1c. Each approach must
141.5be weighted in accordance with the reliability of the information and the commissioner's
141.6judgment.
141.7    Subd. 1a. Cost approach. (a) The commissioner may use the cost approach,
141.8including but not limited to original cost less book depreciation and replacement cost
141.9less depreciation.
141.10(b) Book depreciation is allowed as a deduction from an original cost model. Book
141.11depreciation is assumed to include all forms of appraisal depreciation.
141.12(c) Explicitly calculated appraisal depreciation, including physical, functional, and
141.13external obsolescence, is allowed as a deduction from the replacement cost model.
141.14    Subd. 1b. Income approach. (a) The commissioner may use the income approach,
141.15including but not limited to direct capitalization models and yield capitalization models.
141.16(b) The yield rate is calculated using market data on selected comparable companies
141.17in the band of investment method.
141.18(1) Discounted cash flows is a yield capitalization model that calculates the present
141.19value of explicit cash flow forecasts capitalized using the yield rate, plus revision to stable
141.20growth yield capitalization after the period of explicit forecasts.
141.21(2) Stable growth yield capitalization is a yield capitalization model that calculates
141.22the present value of anticipated future cash flows, capitalized using the yield rate and
141.23considering growth.
141.24(c) Direct capitalization is the expected net operating income for the following year,
141.25divided by the direct capitalization rate. The direct capitalization rate is calculated by
141.26using direct market observations from comparable sales or using market earning-to-price
141.27information in the band of investment method.
141.28    Subd. 1c. Market approach. The commissioner may use the market approach,
141.29including but not limited to a sales comparison model, a stock and debt model, or other
141.30market models that are available and reliable.
141.31    Subd. 2. Notice. The commissioner, after determining the fair market value of the
141.32operating property of each railroad company, shall give notice to must notify the railroad
141.33company of the valuation by first class mail, overnight delivery, or messenger service.
141.34EFFECTIVE DATE.This section is effective for assessment year 2015 and
141.35thereafter.

142.1    Sec. 20. Minnesota Statutes 2014, section 270.86, is amended to read:
142.2270.86 APPORTIONMENT AND EQUALIZATION OF VALUATION.
142.3    Subdivision 1. Apportionment of value. Upon determining After allocating to
142.4Minnesota the fair market value of the operating property of each railroad company, the
142.5commissioner shall must apportion such the value to the respective counties and to the
142.6taxing districts therein in conformity with fair and reasonable rules and standards to be
142.7established by the commissioner pursuant to notice and hearing, except as provided in
142.8section 270.81. In establishing such rules and standards the commissioner may consider
142.9(a) the physical situs of all station houses, depots, docks, wharves, and other buildings and
142.10structures with an original cost in excess of $10,000; (b) the proportion that the length and
142.11type of all the tracks used by the railroad in such county and taxing district bears to the
142.12length and type of all the track used in the state; and (c) other facts as will result in a fair
142.13and equitable apportionment of value the operating parcels in Minnesota.
142.14The apportioned market value of each company's operating parcel in Minnesota is
142.15the current original cost of each parcel as of the last assessment date plus original cost
142.16of new construction minus the original cost of property retired since the last assessment
142.17date. The total Minnesota apportionable market value of the railroad is divided by the
142.18total current original cost of the railroad in Minnesota to determine a percentage. The
142.19resulting percentage is multiplied by the current original cost of each parcel to determine
142.20the apportioned market value of each parcel.
142.21    Subd. 1a. Allocation of value. (a) After the market value of operating property has
142.22been estimated, the portion of value that is attributable to Minnesota must be determined
142.23by calculating an allocation percentage using factors relevant to the industry segment of
142.24the railroad company. The allocation percentage must be multiplied by the value of the
142.25operating property to determine the Minnesota allocated value.
142.26(b) The Minnesota allocated value is determined by averaging the following factors:
142.27(1) miles of railroad track operated in Minnesota divided by miles of railroad track
142.28operated in all states;
142.29(2) ton miles of revenue freight transported in Minnesota divided by ton miles of
142.30revenue freight transported in all states;
142.31(3) gross revenues from transportation operations within Minnesota divided by gross
142.32revenues from transportation operations in all states; and
142.33(4) cost of railroad property in Minnesota divided by cost of railroad property in
142.34all states.
142.35(c) Each of the available factors must be weighted equally.
143.1    Subd. 2. Equalized valuation. After making the apportionment provided in
143.2subdivision 1, the commissioner shall must determine the equalized valuation of the
143.3operating property in each county by applying to the apportioned value an estimated
143.4current year median sales ratio for all commercial and industrial property in that county.
143.5If the commissioner decides determines that there are insufficient sales to determine a
143.6median commercial-industrial sales ratio, an estimated current year countywide median
143.7sales ratio for all property shall must be applied to the apportioned value. No equalization
143.8shall Equalization must not be made to the market value of the operating property if the
143.9median sales ratio determined pursuant to this subdivision is within five at least 90 but less
143.10than 105 percent of the assessment ratio of the railroad operating property.
143.11EFFECTIVE DATE.This section is effective for assessment year 2015 and
143.12thereafter.

143.13    Sec. 21. Minnesota Statutes 2014, section 270.87, is amended to read:
143.14270.87 CERTIFICATION TO COUNTY ASSESSORS.
143.15After making an annual determination of the equalized fair market value of the
143.16operating property of each company in each of the respective counties, and in the taxing
143.17districts therein, The commissioner shall must certify the equalized fair market value of
143.18the operating property to the county assessor on or before June 30 August 1. The equalized
143.19fair market value of the operating property of the railroad company in the county and the
143.20taxing districts therein is the value on which taxes must be levied and collected in the
143.21same manner as on the commercial and industrial property of such county and the taxing
143.22districts therein in the counties and taxing districts. If the commissioner determines that
143.23the equalized fair market value certified on or before June 30 August 1 is in error, the
143.24commissioner may issue a corrected certification on or before August 31 October 1. The
143.25commissioner may correct errors that are merely clerical in nature until December 31.
143.26EFFECTIVE DATE.This section is effective for assessment year 2015 and
143.27thereafter.

143.28    Sec. 22. Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:
143.29    Subd. 9. Personal property; exceptions. Except for the taxable personal property
143.30enumerated below, all personal property and the property described in section 272.03,
143.31subdivision 1
, paragraphs (c) and (d), shall be exempt.
143.32The following personal property shall be taxable:
144.1(a) personal property which is part of an electric generating, transmission, or
144.2distribution system or a pipeline system transporting or distributing water, gas, crude
144.3oil, or petroleum products or mains and pipes used in the distribution of steam or hot or
144.4chilled water for heating or cooling buildings and structures;
144.5(b) railroad docks and wharves which are part of the personal property that is part of
144.6the operating property of a railroad company as defined in section 270.80 273.3712;
144.7(c) personal property defined in section 272.03, subdivision 2, clause (3);
144.8(d) leasehold or other personal property interests which are taxed pursuant to section
144.9272.01, subdivision 2 ; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law
144.10providing the property is taxable as if the lessee or user were the fee owner;
144.11(e) manufactured homes and sectional structures, including storage sheds, decks,
144.12and similar removable improvements constructed on the site of a manufactured home,
144.13sectional structure, park trailer or travel trailer as provided in section 273.125, subdivision
144.148
, paragraph (f); and
144.15(f) flight property as defined in section 270.071.
144.16EFFECTIVE DATE.This section is effective for assessment year 2015 and
144.17thereafter.

144.18    Sec. 23. SEVERABILITY.
144.19If any part of this article is found to be invalid because it is in conflict with a
144.20provision of the Minnesota Constitution or for any other reason, all other provisions
144.21of this act shall remain valid and any rights, remedies, and privileges that have been
144.22otherwise accrued by this act, shall remain in effect and may be proceeded with and
144.23concluded under the provisions of this act.

144.24    Sec. 24. REVISOR'S INSTRUCTION.
144.25The revisor of statutes shall renumber the provisions of Minnesota Statutes listed
144.26in column A to the references listed in column B. The revisor shall also make necessary
144.27cross-reference changes in Minnesota Statutes and Minnesota Rules consistent with
144.28renumbering.
144.29
Column A
Column B
144.30
270.80
273.3712
144.31
270.81
273.3713
144.32
270.82
273.3714
144.33
270.83
273.3715
144.34
270.84
273.3716
145.1
270.85
273.3717
145.2
270.86
273.3718
145.3
270.87
273.3719
145.4EFFECTIVE DATE.This section is effective for assessment year 2015 and
145.5thereafter.

145.6    Sec. 25. REPEALER.
145.7Minnesota Statutes 2014, sections 270.81, subdivision 4; and 270.83, subdivision 3,
145.8and Minnesota Rules, parts 8106.0100, subparts 1, 2, 3, 4, 5, 6, 7, 8, 10, 12, 13, 14, 17,
145.917a, 18, 19, 20, and 21; 8106.0300, subparts 1 and 3; 8106.0400; 8106.0500; 8106.0600;
145.108106.0700; 8106.0800; and 8106.9900, are repealed.
145.11EFFECTIVE DATE.This section is effective for assessment year 2015 and
145.12thereafter.

145.13ARTICLE 10
145.14PUBLIC FINANCE

145.15    Section 1. Minnesota Statutes 2014, section 126C.40, subdivision 1, is amended to read:
145.16    Subdivision 1. To lease building or land. (a) When an independent or a special
145.17school district or a group of independent or special school districts finds it economically
145.18advantageous to rent or lease a building or land for any instructional purposes or for school
145.19storage or furniture repair, and it determines that the operating capital revenue authorized
145.20under section 126C.10, subdivision 13, is insufficient for this purpose, it may apply to seek
145.21permission from the commissioner for permission to make an additional capital expenditure
145.22levy for this purpose. An application for permission to levy under this subdivision must
145.23contain financial justification for the proposed levy, the terms and conditions of the
145.24proposed lease, and a description of the space to be leased and its proposed use.
145.25    (b) In granting permission to levy under this subdivision, the commissioner may
145.26consider the financial justification for the proposed levy, the terms and conditions
145.27of the proposed lease, and a description of the space to be leased and its proposed
145.28use. Additional information shall be provided for consideration upon request of the
145.29commissioner. The criteria for approval of applications granting permission to levy under
145.30this subdivision must include: the reasonableness of the price, the appropriateness of the
145.31space to the proposed activity, the feasibility of transporting pupils to the leased building
145.32or land, conformity of the lease to the laws and rules of the state of Minnesota, and the
145.33appropriateness of the proposed lease to the space needs and the financial condition of the
146.1district. The commissioner must not authorize a levy under this subdivision in an amount
146.2greater than the cost to the district of renting or leasing a building or land for approved
146.3purposes. The proceeds of this levy must not be used for custodial or other maintenance
146.4services. A district may not levy under this subdivision for the purpose of leasing or
146.5renting a district-owned building or site to itself.
146.6    (c) For agreements finalized after July 1, 1997, a district may not levy under this
146.7subdivision for the purpose of leasing: (1) a newly constructed building used primarily
146.8for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
146.9building addition or additions used primarily for regular kindergarten, elementary, or
146.10secondary instruction that contains more than 20 percent of the square footage of the
146.11previously existing building.
146.12    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
146.13purpose of leasing or renting a district-owned building or site to itself only if the amount
146.14is needed by the district to make payments required by a lease purchase agreement,
146.15installment purchase agreement, or other deferred payments agreement authorized by law,
146.16and the levy meets the requirements of paragraph (c). A levy authorized for a district by
146.17the commissioner under this paragraph may be in the amount needed by the district to
146.18make payments required by a lease purchase agreement, installment purchase agreement,
146.19or other deferred payments agreement authorized by law, provided that any agreement
146.20include a provision giving the school districts the right to terminate the agreement
146.21annually without penalty.
146.22    (e) The total levy under this subdivision for a district for any year must not exceed
146.23$212 times the adjusted pupil units for the fiscal year to which the levy is attributable.
146.24    (f) For agreements for which a review and comment have been submitted to the
146.25Department of Education after April 1, 1998, the term "instructional purpose" as used in
146.26this subdivision excludes expenditures on stadiums.
146.27    (g) The commissioner of education may authorize a school district to exceed the
146.28limit in paragraph (e) if the school district petitions the commissioner for approval. The
146.29commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
146.30for not more than five years if the district meets the following criteria:
146.31    (1) the school district has been experiencing pupil enrollment growth in the
146.32preceding five years;
146.33    (2) the purpose of the increased levy is in the long-term public interest;
146.34    (3) the purpose of the increased levy promotes colocation of government services; and
146.35    (4) the purpose of the increased levy is in the long-term interest of the district by
146.36avoiding over construction of school facilities.
147.1    (h) A school district that is a member of an intermediate school district may include
147.2in its authority under this section the costs associated with leases of administrative and
147.3classroom space for intermediate school district programs. This authority must not exceed
147.4$65 times the adjusted pupil units of the member districts. This authority is in addition to
147.5any other authority authorized under this section.
147.6    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in
147.72012 to 2023, a district that is a member of the "Technology and Information Education
147.8Systems" data processing joint board, that finds it economically advantageous to enter into
147.9a lease agreement to finance improvements to a building and land for a group of school
147.10districts or special school districts for staff development purposes, may levy for its portion
147.11of lease costs attributed to the district within the total levy limit in paragraph (e). The total
147.12levy authority under this paragraph shall not exceed $632,000.
147.13(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the
147.14purpose of leasing administrative space if the district can demonstrate to the satisfaction of
147.15the commissioner that the lease cost for the administrative space is no greater than the
147.16lease cost for instructional space that the district would otherwise lease. The commissioner
147.17must deny this levy authority unless the district passes a resolution stating its intent to
147.18lease instructional space under this section if the commissioner does not grant authority
147.19under this paragraph. The resolution must also certify that the lease cost for administrative
147.20space under this paragraph is no greater than the lease cost for the district's proposed
147.21instructional lease.

147.22    Sec. 2. Minnesota Statutes 2014, section 366.095, subdivision 1, is amended to read:
147.23    Subdivision 1. Certificates of indebtedness. The town board may issue certificates
147.24of indebtedness within the debt limits for a town purpose otherwise authorized by law.
147.25The certificates shall be payable in not more than ten years and be issued on the terms and
147.26in the manner as the board may determine, provided that notes issued for projects that
147.27eliminate R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2),
147.28shall be payable in not more than 20 years. If the amount of the certificates to be issued
147.29exceeds 0.25 percent of the estimated market value of the town, they shall not be issued
147.30for at least ten days after publication in a newspaper of general circulation in the town of
147.31the board's resolution determining to issue them. If within that time, a petition asking for
147.32an election on the proposition signed by voters equal to ten percent of the number of voters
147.33at the last regular town election is filed with the clerk, the certificates shall not be issued
147.34until their issuance has been approved by a majority of the votes cast on the question at
148.1a regular or special election. A tax levy shall be made to pay the principal and interest
148.2on the certificates as in the case of bonds.

148.3    Sec. 3. Minnesota Statutes 2014, section 383B.117, subdivision 2, is amended to read:
148.4    Subd. 2. Equipment acquisition; capital notes. The board may, by resolution and
148.5without public referendum, issue capital notes within existing debt limits for the purpose
148.6of purchasing ambulance and other medical equipment, road construction or maintenance
148.7equipment, public safety equipment and other capital equipment having an expected
148.8useful life at least equal to the term of the notes issued. The notes shall be payable
148.9in not more than ten years and shall be issued on terms and in a manner as the board
148.10determines, provided that notes issued for projects that eliminate R-22, as such projects
148.11are defined in section 240A.09, paragraph (b), clause (2), shall be payable in not more
148.12than 20 years. The total principal amount of the notes issued for any fiscal year shall not
148.13exceed one percent of the total annual budget for that year and shall be issued solely for
148.14the purchases authorized in this subdivision. A tax levy shall be made for the payment
148.15of the principal and interest on such notes as in the case of bonds. For purposes of this
148.16subdivision, "equipment" includes computer hardware and software, whether bundled with
148.17machinery or equipment or unbundled. For purposes of this subdivision, the term "medical
148.18equipment" includes computer hardware and software and other intellectual property for
148.19use in medical diagnosis, medical procedures, research, record keeping, billing, and other
148.20hospital applications, together with application development services and training related
148.21to the use of the computer hardware and software and other intellectual property, all
148.22without regard to their useful life. For purposes of determining the amount of capital notes
148.23which the county may issue in any year, the budget of the county and Hennepin Healthcare
148.24System, Inc. shall be combined and the notes issuable under this subdivision shall be in
148.25addition to obligations issuable under section 373.01, subdivision 3.

148.26    Sec. 4. Minnesota Statutes 2014, section 410.32, is amended to read:
148.27410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
148.28    (a) Notwithstanding any contrary provision of other law or charter, a home rule
148.29charter city may, by resolution and without public referendum, issue capital notes subject
148.30to the city debt limit to purchase capital equipment.
148.31    (b) For purposes of this section, "capital equipment" means:
148.32    (1) public safety equipment, ambulance and other medical equipment, road
148.33construction and maintenance equipment, and other capital equipment; and
149.1    (2) computer hardware and software, whether bundled with machinery or equipment
149.2or unbundled, together with application development services and training related to the
149.3use of the computer hardware and software.
149.4    (c) The equipment or software must have an expected useful life at least as long
149.5as the term of the notes.
149.6    (d) The notes shall be payable in not more than ten years and be issued on terms and
149.7in the manner the city determines, provided that notes issued for projects that eliminate
149.8R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2), shall be
149.9payable in not more than 20 years. The total principal amount of the capital notes issued
149.10in a fiscal year shall not exceed 0.03 percent of the estimated market value of taxable
149.11property in the city for that year.
149.12    (e) A tax levy shall be made for the payment of the principal and interest on the
149.13notes, in accordance with section 475.61, as in the case of bonds.
149.14    (f) Notes issued under this section shall require an affirmative vote of two-thirds of
149.15the governing body of the city.
149.16    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
149.17city may also issue capital notes subject to its debt limit in the manner and subject to the
149.18limitations applicable to statutory cities pursuant to section 412.301.

149.19    Sec. 5. Minnesota Statutes 2014, section 412.301, is amended to read:
149.20412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
149.21    (a) The council may issue certificates of indebtedness or capital notes subject to the
149.22city debt limits to purchase capital equipment.
149.23    (b) For purposes of this section, "capital equipment" means:
149.24    (1) public safety equipment, ambulance and other medical equipment, road
149.25construction and maintenance equipment, and other capital equipment; and
149.26    (2) computer hardware and software, whether bundled with machinery or equipment
149.27or unbundled, together with application development services and training related to the
149.28use of the computer hardware or software.
149.29    (c) The equipment or software must have an expected useful life at least as long as
149.30the terms of the certificates or notes.
149.31    (d) Such certificates or notes shall be payable in not more than ten years and shall
149.32be issued on such terms and in such manner as the council may determine, provided,
149.33however, that notes issued for projects that eliminate R-22, as such projects are defined in
149.34section 240A.09, paragraph (b), clause (2), shall be payable in not more than 20 years.
150.1    (e) If the amount of the certificates or notes to be issued to finance any such purchase
150.2exceeds 0.25 percent of the estimated market value of taxable property in the city, they
150.3shall not be issued for at least ten days after publication in the official newspaper of
150.4a council resolution determining to issue them; and if before the end of that time, a
150.5petition asking for an election on the proposition signed by voters equal to ten percent
150.6of the number of voters at the last regular municipal election is filed with the clerk, such
150.7certificates or notes shall not be issued until the proposition of their issuance has been
150.8approved by a majority of the votes cast on the question at a regular or special election.
150.9    (f) A tax levy shall be made for the payment of the principal and interest on such
150.10certificates or notes, in accordance with section 475.61, as in the case of bonds.

150.11    Sec. 6. Minnesota Statutes 2014, section 469.034, subdivision 2, is amended to read:
150.12    Subd. 2. General obligation revenue bonds. (a) An authority may pledge the
150.13general obligation of the general jurisdiction governmental unit as additional security for
150.14bonds payable from income or revenues of the project or the authority. The authority
150.15must find that the pledged revenues will equal or exceed 110 percent of the principal and
150.16interest due on the bonds for each year. The proceeds of the bonds must be used for a
150.17qualified housing development project or projects. The obligations must be issued and
150.18sold in the manner and following the procedures provided by chapter 475, except the
150.19obligations are not subject to approval by the electors, and the maturities may extend to
150.20not more than 35 years for obligations sold to finance housing for the elderly and 40 years
150.21for other obligations issued under this subdivision. The authority is the municipality for
150.22purposes of chapter 475.
150.23    (b) The principal amount of the issue must be approved by the governing body of
150.24the general jurisdiction governmental unit whose general obligation is pledged. Public
150.25hearings must be held on issuance of the obligations by both the authority and the general
150.26jurisdiction governmental unit. The hearings must be held at least 15 days, but not more
150.27than 120 days, before the sale of the obligations.
150.28    (c) The maximum amount of general obligation bonds that may be issued and
150.29outstanding under this section equals the greater of (1) one-half of one percent of the
150.30estimated market value of the general jurisdiction governmental unit whose general
150.31obligation is pledged, or (2) $3,000,000 $5,000,000. In the case of county or multicounty
150.32general obligation bonds, the outstanding general obligation bonds of all cities in the
150.33county or counties issued under this subdivision must be added in calculating the limit
150.34under clause (1).
151.1    (d) "General jurisdiction governmental unit" means the city in which the housing
151.2development project is located. In the case of a county or multicounty authority, the
151.3county or counties may act as the general jurisdiction governmental unit. In the case of
151.4a multicounty authority, the pledge of the general obligation is a pledge of a tax on the
151.5taxable property in each of the counties.
151.6    (e) "Qualified housing development project" means a housing development project
151.7providing housing either for the elderly or for individuals and families with incomes not
151.8greater than 80 percent of the median family income as estimated by the United States
151.9Department of Housing and Urban Development for the standard metropolitan statistical
151.10area or the nonmetropolitan county in which the project is located. The project must be
151.11owned for the term of the bonds either by the authority or by a limited partnership or other
151.12entity in which the authority or another entity under the sole control of the authority is
151.13the sole general partner and the partnership or other entity must receive (1) an allocation
151.14from the Department of Management and Budget or an entitlement issuer of tax-exempt
151.15bonding authority for the project and a preliminary determination by the Minnesota
151.16Housing Finance Agency or the applicable suballocator of tax credits that the project
151.17will qualify for four percent low-income housing tax credits or (2) a reservation of nine
151.18percent low-income housing tax credits from the Minnesota Housing Finance Agency or a
151.19suballocator of tax credits for the project. A qualified housing development project may
151.20admit nonelderly individuals and families with higher incomes if:
151.21    (1) three years have passed since initial occupancy;
151.22    (2) the authority finds the project is experiencing unanticipated vacancies resulting in
151.23insufficient revenues, because of changes in population or other unforeseen circumstances
151.24that occurred after the initial finding of adequate revenues; and
151.25    (3) the authority finds a tax levy or payment from general assets of the general
151.26jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher
151.27income individuals or families are not admitted.
151.28    (f) The authority may issue bonds to refund bonds issued under this subdivision in
151.29accordance with section 475.67. The finding of the adequacy of pledged revenues required
151.30by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the
151.31issuance of refunding bonds. This paragraph applies to refunding bonds issued on and
151.32after July 1, 1992.

151.33    Sec. 7. Minnesota Statutes 2014, section 469.101, subdivision 1, is amended to read:
151.34    Subdivision 1. Establishment. An economic development authority may create
151.35and define the boundaries of economic development districts at any place or places within
152.1the city, except that the district boundaries must be contiguous, and may use the powers
152.2granted in sections 469.090 to 469.108 to carry out its purposes. First the authority must
152.3hold a public hearing on the matter. At least ten days before the hearing, the authority
152.4shall publish notice of the hearing in a daily newspaper of general circulation in the city.
152.5Also, the authority shall find that an economic development district is proper and desirable
152.6to establish and develop within the city.

152.7    Sec. 8. Minnesota Statutes 2014, section 475.58, subdivision 3b, is amended to read:
152.8    Subd. 3b. Street reconstruction and bituminous overlays. (a) A municipality may,
152.9without regard to the election requirement under subdivision 1, issue and sell obligations
152.10for street reconstruction or bituminous overlays, if the following conditions are met:
152.11    (1) the streets are reconstructed or overlaid under a street reconstruction or overlay
152.12plan that describes the street reconstruction or overlay to be financed, the estimated costs,
152.13and any planned reconstruction or overlay of other streets in the municipality over the next
152.14five years, and the plan and issuance of the obligations has been approved by a vote of
152.15all a majority of the members of the governing body present at the meeting following a
152.16public hearing for which notice has been published in the official newspaper at least ten
152.17days but not more than 28 days prior to the hearing; and
152.18    (2) if a petition requesting a vote on the issuance is signed by voters equal to
152.19five percent of the votes cast in the last municipal general election and is filed with the
152.20municipal clerk within 30 days of the public hearing, the municipality may issue the bonds
152.21only after obtaining the approval of a majority of the voters voting on the question of the
152.22issuance of the obligations. If the municipality elects not to submit the question to the
152.23voters, the municipality shall not propose the issuance of bonds under this section for the
152.24same purpose and in the same amount for a period of 365 days from the date of receipt
152.25of the petition. If the question of issuing the bonds is submitted and not approved by the
152.26voters, the provisions of section 475.58, subdivision 1a, shall apply.
152.27    (b) Obligations issued under this subdivision are subject to the debt limit of the
152.28municipality and are not excluded from net debt under section 475.51, subdivision 4.
152.29    (c) For purposes of this subdivision, street reconstruction and bituminous overlays
152.30includes utility replacement and relocation and other activities incidental to the street
152.31reconstruction, turn lanes and other improvements having a substantial public safety
152.32function, realignments, other modifications to intersect with state and county roads, and
152.33the local share of state and county road projects. For purposes of this subdivision, "street
152.34reconstruction" includes expenditures for street reconstruction that have been incurred
152.35by a municipality before approval of a street reconstruction plan, if such expenditures
153.1are included in a street reconstruction plan approved on or before the date of the public
153.2hearing under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.
153.3    (d) Except in the case of turn lanes, safety improvements, realignments, intersection
153.4modifications, and the local share of state and county road projects, street reconstruction
153.5and bituminous overlays does not include the portion of project cost allocable to widening
153.6a street or adding curbs and gutters where none previously existed.

153.7    Sec. 9. Minnesota Statutes 2014, section 475.60, subdivision 2, is amended to read:
153.8    Subd. 2. Requirements waived. The requirements as to public sale shall not
153.9apply to:
153.10(1) obligations issued under the provisions of a home rule charter or of a law
153.11specifically authorizing a different method of sale, or authorizing them to be issued in such
153.12manner or on such terms and conditions as the governing body may determine;
153.13(2) obligations sold by an issuer in an amount not exceeding the total sum of
153.14$1,200,000 in any 12-month period;
153.15(3) obligations issued by a governing body other than a school board in anticipation
153.16of the collection of taxes or other revenues appropriated for expenditure in a single year, if
153.17sold in accordance with the most favorable of two or more proposals solicited privately;
153.18(4) obligations sold to any board, department, or agency of the United States of
153.19America or of the state of Minnesota, in accordance with rules or regulations promulgated
153.20by such board, department, or agency;
153.21(5) obligations issued to fund pension and retirement fund liabilities under section
153.22475.52, subdivision 6 , obligations issued with tender options under section 475.54,
153.23subdivision 5a
, crossover refunding obligations referred to in section 475.67, subdivision
153.2413
, and any issue of obligations comprised in whole or in part of obligations bearing
153.25interest at a rate or rates which vary periodically referred to in section 475.56;
153.26(6) obligations to be issued for a purpose, in a manner, and upon terms and
153.27conditions authorized by law, if the governing body of the municipality, on the advice of
153.28bond counsel or special tax counsel, determines that interest on the obligations cannot be
153.29represented to be excluded from gross income for purposes of federal income taxation;
153.30(7) obligations issued in the form of an installment purchase contract, lease purchase
153.31agreement, or other similar agreement;
153.32(8) obligations sold under a bond reinvestment program; and
153.33(9) if the municipality has retained an independent financial municipal advisor,
153.34obligations which the governing body determines shall be sold by private negotiation.

154.1ARTICLE 11
154.2SUSTAINABLE FOREST INCENTIVE ACT MODIFICATIONS

154.3    Section 1. Minnesota Statutes 2014, section 290C.01, is amended to read:
154.4290C.01 PURPOSE.
154.5It is the policy of this state to promote sustainable forest resource management on
154.6the state's public and private lands. Recognizing that The state's private forests comprise
154.7approximately one-half of the state forest land resources, that healthy and robust forest
154.8land provides significant benefits to the state of Minnesota, and that ad. These forests
154.9play a critical role in protecting water quality and soil resources, and provide extensive
154.10wildlife habitat, diverse recreational experiences, and significant forest products that
154.11support the state's economy. Ad valorem property taxes represent a significant annual
154.12cost that can discourage long-term forest management investments. In order to foster
154.13silviculture investments and retain these forests for their economic and ecological benefits,
154.14this chapter, hereafter referred to as the "Sustainable Forest Incentive Act," is enacted
154.15to encourage the state's private forest landowners to make a long-term commitment to
154.16sustainable forest management.

154.17    Sec. 2. Minnesota Statutes 2014, section 290C.02, subdivision 1, is amended to read:
154.18    Subdivision 1. Application. When used in sections 290C.01 to 290C.11 290C.13,
154.19the terms in this section have the meanings given them.
154.20EFFECTIVE DATE.This section is effective the day following final enactment.

154.21    Sec. 3. Minnesota Statutes 2014, section 290C.02, subdivision 3, is amended to read:
154.22    Subd. 3. Claimant. (a) "Claimant" means:
154.23    (1) a person, as that term is defined in section 290.01, subdivision 2, who owns
154.24forest land in Minnesota and files an application authorized by the Sustainable Forest
154.25Incentive Act;
154.26    (2) a purchaser or grantee if property enrolled in the program was sold or transferred
154.27after the original application was filed and prior to the annual incentive payment being
154.28made; or
154.29    (3) an owner of land previously covered by an auxiliary forest contract that
154.30automatically qualifies for inclusion in the Sustainable Forest Incentive Act program
154.31pursuant to section 88.49, subdivision 9a, or 88.491, subdivision 2.
154.32    The purchaser or grantee must notify the commissioner in writing of the sale or
154.33transfer of the property. Owners of land that qualifies for inclusion pursuant to section
155.188.49, subdivision 9a , or 88.491, subdivision 2, must notify the commissioner in writing
155.2of the expiration of the auxiliary forest contract or land trade with a governmental unit
155.3and submit an application to the commissioner by August 15 July 1 in order to be eligible
155.4to receive a payment by October 1 of that same year. For purposes of section 290C.11,
155.5claimant also includes any person bound by the covenant required in section 290C.04.
155.6    (b) No more than one claimant is entitled to a payment under this chapter with
155.7respect to any tract, parcel, or piece of land enrolled under this chapter that has been
155.8assigned the same parcel identification number. When enrolled forest land is owned by
155.9two or more persons, the owners must determine between them which person is eligible to
155.10claim the payments provided under sections 290C.01 to 290C.11. In the case of property
155.11sold or transferred, the former owner and the purchaser or grantee must determine between
155.12them which person is eligible to claim the payments provided under sections 290C.01 to
155.13290C.11 . The owners, transferees, or grantees must notify the commissioner in writing
155.14which person is eligible to claim the payments.
155.15EFFECTIVE DATE.This section is effective for certifications and applications
155.16due in 2016 and thereafter.

155.17    Sec. 4. Minnesota Statutes 2014, section 290C.02, subdivision 6, is amended to read:
155.18    Subd. 6. Forest land. "Forest land" means land containing a minimum of 20
155.19contiguous acres for which the owner has implemented a forest management plan that was
155.20prepared or updated within the past ten years by an approved plan writer. For purposes of
155.21this subdivision, acres are considered to be contiguous even if they are separated by a road,
155.22waterway, railroad track, or other similar intervening property. At least 50 percent of the
155.23contiguous acreage must meet the definition of forest land in section 88.01, subdivision
155.247
. For the purposes of sections 290C.01 to 290C.11, forest land does not include (i)
155.25land used for residential or agricultural purposes, (ii) land enrolled in the reinvest in
155.26Minnesota program, a state or federal conservation reserve or easement reserve program
155.27under sections 103F.501 to 103F.531, the Minnesota agricultural property tax law under
155.28section 273.111, or land subject to agricultural land preservation controls or restrictions
155.29as defined in section 40A.02 or under the Metropolitan Agricultural Preserves Act under
155.30chapter 473H, (iii) land exceeding 60,000 acres that is subject to a single conservation
155.31easement funded under section 97A.056 or a comparable permanent easement conveyed
155.32to a governmental or nonprofit entity; (iv) any land that becomes subject to a conservation
155.33easement funded under section 97A.056 or a comparable permanent easement conveyed
155.34to a governmental or nonprofit entity after May 30, 2013; or (v) (iv) land improved with a
156.1structure, pavement, sewer, campsite, or any road, other than a township road, used for
156.2purposes not prescribed in the forest management plan.
156.3EFFECTIVE DATE.This section is effective for applications made in 2016 and
156.4thereafter.

156.5    Sec. 5. Minnesota Statutes 2014, section 290C.03, is amended to read:
156.6290C.03 ELIGIBILITY REQUIREMENTS.
156.7(a) Land may be enrolled in the sustainable forest incentive program under this
156.8chapter if all of the following conditions are met:
156.9(1) the land consists of at least 20 contiguous acres and at least 50 percent of the
156.10land must meet the definition of forest land in section 88.01, subdivision 7, during the
156.11enrollment;
156.12(2) a forest management plan for the land must be prepared by an approved plan
156.13writer and implemented during the period in which the land is enrolled;
156.14(3) timber harvesting and forest management guidelines must be used in conjunction
156.15with any timber harvesting or forest management activities conducted on the land during
156.16the period in which the land is enrolled;
156.17(4) the land must be enrolled for a minimum of eight years;
156.18(5) there are no delinquent property taxes on the land; and
156.19(6) claimants enrolling more than 1,920 acres or enrolling any land that is subject
156.20to a conservation easement funded under section 97A.056, or a comparable permanent
156.21easement conveyed to a governmental or nonprofit entity in the sustainable forest incentive
156.22program must allow year-round, nonmotorized access to fish and wildlife resources and
156.23motorized access on established and maintained roads and trails, unless the road or trail is
156.24temporarily closed for safety, natural resource, or road damage reasons on enrolled land
156.25except within one-fourth mile of a permanent dwelling or during periods of high fire
156.26hazard as determined by the commissioner of natural resources; and
156.27(7) the claimant has registered with the forest management plan under clause (2)
156.28with the commissioner of natural resources, who has determined that the land meets
156.29qualifications for enrollment; and
156.30(8) the land is not classified as class 2c managed forest land.
156.31(b) Claimants required to allow access under paragraph (a), clause (6), do not by
156.32that action:
156.33(1) extend any assurance that the land is safe for any purpose;
157.1(2) confer upon the person the legal status of an invitee or licensee to whom a duty
157.2of care is owed; or
157.3(3) assume responsibility for or incur liability for any injury to the person or property
157.4caused by an act or omission of the person.
157.5(c) The commissioner of natural resources shall annually provide county assessors
157.6verification information regarding plan registration under paragraph (a), clause (7), on
157.7a timely basis.
157.8(d) A minimum of three acres must be excluded from enrolled land when the land is
157.9improved with a structure that is not a minor, ancillary, nonresidential structure.
157.10(e) If land does not meet the definition of forest land in section 290C.02, subdivision
157.116, because the land is: (1) enrolled in the reinvest in Minnesota program; (2) enrolled in
157.12a state or federal conservation reserve or easement program under sections 103F.501 to
157.13103F.531; (3) subject to the Minnesota agricultural property tax under section 273.111; or
157.14(4) subject to agricultural land preservation controls or restrictions as defined in section
157.1540A.02, or the Metropolitan Agricultural Preserves Act under chapter 473H, the entire tax
157.16parcel that contains the land is not eligible to be enrolled in the program.
157.17EFFECTIVE DATE.This section is effective for certifications and applications
157.18due in 2016 and thereafter.

157.19    Sec. 6. Minnesota Statutes 2014, section 290C.04, is amended to read:
157.20290C.04 APPLICATIONS.
157.21    (a) A landowner may apply to enroll forest land for the sustainable forest incentive
157.22program under this chapter. The claimant must complete, sign, and submit an application
157.23to the commissioner by September 30 in order for the land to become eligible beginning
157.24in the next year. The application shall be on a form prescribed by the commissioner
157.25commissioners of revenue and natural resources and must include the information the
157.26commissioner deems necessary. At a minimum, the application must show the following
157.27information for the land and the claimant: (i) the claimant's Social Security number or
157.28state or federal business tax registration number and date of birth, (ii) the claimant's
157.29address, (iii) the claimant's signature, (iv) the county's parcel identification numbers for
157.30the tax parcels that completely contain the claimant's forest land that is sought to be
157.31enrolled, (v) the number of acres eligible for enrollment in the program, (vi) the approved
157.32plan writer's signature and identification number, and (vii) proof, in a form specified by the
157.33commissioner, that the claimant has executed and acknowledged in the manner required
157.34by law for a deed, and recorded, a covenant that the land is not and shall not be developed
158.1in a manner inconsistent with the requirements and conditions of this chapter, and (viii) a
158.2registration number for the forest management plan, issued by the commissioner of natural
158.3resources. The covenant shall state in writing that the covenant is binding on the claimant
158.4and the claimant's successor or assignee, and that it runs with the land for a period of not
158.5less than eight years unless the claimant requests termination of the covenant after a
158.6reduction in payments due to changes in the payment formula under section 290C.07. The
158.7commissioner shall specify the form of the covenant and provide copies upon request.
158.8The covenant must include a legal description that encompasses all the forest land that the
158.9claimant wishes to enroll under this section or the certificate of title number for that land if
158.10it is registered land. The commissioner of natural resources shall record the area eligible
158.11for enrollment into the Sustainable Forest Incentive Act as electronic geospatial data, as
158.12defined in section 16E.30, subdivision 10.
158.13(b) The commissioner shall provide a copy of the application filed by the claimant
158.14and all supporting materials to the commissioner of natural resources within 15 days of
158.15receipt or by September 1, whichever is sooner. The commissioner of natural resources
158.16must notify the commissioner whether the applicant qualifies for enrollment within 30
158.17days of receipt, and if the applicant qualifies for enrollment, the commissioner of natural
158.18resources shall specify the number of qualifying acres per tax parcel.
158.19    (b) In all cases, (c) The commissioner shall notify the claimant within 90 days after
158.20receipt of a completed application that either the land has or has not been approved for
158.21enrollment. A claimant whose application is denied may appeal the denial as provided
158.22in section 290C.13.
158.23    (c) (d) Within 90 days after the denial of an application, or within 90 days after the
158.24final resolution of any appeal related to the denial, the commissioner shall execute and
158.25acknowledge a document releasing the land from the covenant required under this chapter.
158.26The document must be mailed to the claimant and is entitled to be recorded.
158.27    (d) (e) The Social Security numbers collected from individuals under this section are
158.28private data as provided in section 13.355. The federal business tax registration number
158.29and date of birth data collected under this section are also private data on individuals or
158.30nonpublic data, as defined in section 13.02, subdivisions 9 and 12, but may be shared
158.31with county assessors for purposes of tax administration and with county treasurers for
158.32purposes of the revenue recapture under chapter 270A.
158.33EFFECTIVE DATE.This section is effective for certifications and applications
158.34due in 2016 and thereafter.

158.35    Sec. 7. Minnesota Statutes 2014, section 290C.05, is amended to read:
159.1290C.05 ANNUAL CERTIFICATION AND MONITORING.
159.2    (a) On or before July 1 May 15 of each year, beginning with the year after the
159.3original claimant has received an approved application, the commissioner shall send each
159.4claimant enrolled under the sustainable forest incentive program a certification form. For
159.5purposes of this section, the original claimant is the person that filed the first application
159.6under section 290C.04 to enroll the land in the program current property owner on record,
159.7or the person designated by the owners in the case of multiple ownership. The claimant
159.8must sign and return the certification, attesting to the commissioner by July 1 of that
159.9same year, and (1) attest that the requirements and conditions for continued enrollment
159.10in the program are currently being met, and must return the signed certification form to
159.11the commissioner by August 15 of that same year (2) provide a report in the form and
159.12manner determined by the commissioner of natural resources describing the management
159.13practices that have been carried out on the enrolled property during the prior year. If the
159.14claimant does not return an annual certification form by the due date, the provisions
159.15in section 290C.11 apply. The commissioner of natural resources will verify that the
159.16claimant meets program requirements.
159.17(b) The commissioner must provide the certification form and annual report described
159.18in paragraph (a), clause (2), to the commissioner of natural resources by August 1.
159.19(c) The commissioner of natural resources must conduct annual monitoring
159.20of a subset of claimants, excluding land also enrolled in a conservation easement
159.21program. Claimants will be selected for monitoring based on reported violations, annual
159.22certification, and random selections. Monitoring will be conducted on ten percent of
159.23claimants as of July 1 of each year. Monitoring may include, but is not limited to, a site
159.24visit by a department of natural resources or a contracted forester. The commissioner of
159.25natural resources will develop a monitoring form to record the monitoring data.
159.26EFFECTIVE DATE.Paragraphs (a) and (b) are effective for certifications and
159.27applications due in 2016 and thereafter. Paragraph (c) is effective July 1, 2018.

159.28    Sec. 8. Minnesota Statutes 2014, section 290C.055, is amended to read:
159.29290C.055 LENGTH OF COVENANT.
159.30(a) The covenant remains in effect for a minimum of eight years Claimants enrolling
159.31any land that is subject to a conservation easement funded under section 97A.056 or a
159.32comparable permanent easement conveyed to a governmental or nonprofit entity must
159.33enroll their land under a covenant with a minimum duration of eight years. All other
159.34claimants may choose to enroll their land under a covenant with a minimum duration of
160.1eight, 20, or 50 years. If land is removed the claimant requests removal from the program
160.2before it has been enrolled for four years half the number of years of the covenant's
160.3duration, the covenant remains in effect for eight years the entire duration of the covenant
160.4from the date recorded.
160.5(b) If land that has been enrolled for four years half the number of years of the
160.6covenant's minimum duration or more is removed from the program for any reason, there
160.7is a waiting period before the covenant terminates. The covenant terminates on January 1
160.8of the fifth, eleventh, or twenty-sixth calendar year for the eight, 20, or 50 year minimum
160.9covenant, respectively, that begins after the date that:
160.10(1) the commissioner receives notification from the claimant that the claimant wishes
160.11to remove the land from the program under section 290C.10; or
160.12(2) the date that the land is removed from the program under section 290C.11.
160.13(c) Notwithstanding the other provisions of this section, the covenant is terminated:
160.14(1) at the same time that the land is removed from the program due to acquisition of
160.15title or possession for a public purpose under section 290C.10; or
160.16(2) at the request of the claimant after a reduction in payments due to changes in the
160.17payment formula under section 290C.07.

160.18    Sec. 9. Minnesota Statutes 2014, section 290C.07, is amended to read:
160.19290C.07 CALCULATION OF INCENTIVE PAYMENT.
160.20    An approved claimant under the sustainable forest incentive program is eligible to
160.21receive an annual payment for each acre of enrolled land. The payment shall equal $7
160.22per acre for each acre enrolled in the sustainable forest incentive program a percentage of
160.23the property tax that would be paid on the land determined by using the previous year's
160.24statewide average total tax rate for all taxes levied within townships or unorganized
160.25territories, the estimated market value per acre as calculated in section 290C.06, and
160.26a class rate of one percent as follows: (1) for claimants enrolling land that is subject
160.27to a conservation easement funded under section 97A.056 or a comparable permanent
160.28easement conveyed to a governmental or nonprofit entity before May 31, 2013, under an
160.29eight-year covenant, 25 percent; (2) for claimants enrolling land that is not subject to
160.30a conservation easement under an eight-year covenant, 65 percent; (3) for claimants
160.31enrolling land that is not subject to a conservation easement under a 20-year covenant, 90
160.32percent; and (4) for claimants enrolling land that is not subject to a conservation easement
160.33under a 50-year covenant, 115 percent. The calculated payment shall not be less than the
160.34payment received in 2016 and shall not increase or decrease by more than ten percent
160.35relative to the payment received for the previous year.
161.1EFFECTIVE DATE.This section is effective for calculations made in 2016 and
161.2thereafter.

161.3    Sec. 10. Minnesota Statutes 2014, section 290C.08, subdivision 1, is amended to read:
161.4    Subdivision 1. Annual payment. An incentive payment for each acre of enrolled
161.5land will be made annually to each claimant in the amount determined under section
161.6290C.07 . By September 15 of each year, the commissioner of natural resources will
161.7certify to the commissioner the eligibility of each claimant to receive a payment. The
161.8incentive payment shall be paid by the commissioner on or before October 1 each year
161.9based on the certifications due August 15 July 1 of that year. Interest at the annual rate
161.10determined under section 270C.40 shall be included with any incentive payment not
161.11paid by the later of October 1 of the year the certification was due, or 45 days after the
161.12completed certification was returned or filed if the commissioner accepts a certification
161.13filed after August 15 July 1 of the taxes payable year as the resolution of an appeal.
161.14EFFECTIVE DATE.This section is effective for certifications and applications
161.15due in 2016 and thereafter.

161.16    Sec. 11. Minnesota Statutes 2014, section 290C.10, is amended to read:
161.17290C.10 WITHDRAWAL PROCEDURES.
161.18An approved claimant (a) The current owner of land enrolled under the sustainable
161.19forest incentive program for a minimum of four years half the number of years of the
161.20covenant's minimum duration may notify the commissioner of the intent to terminate
161.21enrollment. Within 90 days of receipt of notice to terminate enrollment, the commissioner
161.22shall inform the claimant in writing, acknowledging receipt of this notice and indicating
161.23the effective date of termination from the sustainable forest incentive program.
161.24Termination of enrollment in the sustainable forest incentive program occurs on January 1
161.25of the fifth, eleventh, or twenty-sixth calendar year for the eight, 20, or 50 year respective
161.26minimum covenant that begins after receipt by the commissioner of the termination
161.27notice. After the commissioner issues an effective date of termination, a claimant wishing
161.28to continue the land's enrollment in the sustainable forest incentive program beyond the
161.29termination date must apply for enrollment as prescribed in section 290C.04. A claimant
161.30who withdraws a parcel of land from this program may not reenroll the parcel for a period
161.31of three years. Within 90 days after the termination date, the commissioner shall execute
161.32and acknowledge a document releasing the land from the covenant required under this
161.33chapter. The document must be mailed to the claimant and is entitled to be recorded.
162.1(b) Notwithstanding paragraph (a), on request of the claimant, the commissioner may
162.2allow early withdrawal from the Sustainable Forest Incentive Act without penalty when the
162.3state of Minnesota, any local government unit, or any other entity which has the power of
162.4eminent domain acquires title or possession to the land for a public purpose notwithstanding
162.5the provisions of this section. In the case of such an eligible acquisition under this
162.6paragraph, the commissioner shall execute and acknowledge a document releasing the
162.7land acquired by the state, local government unit, or other entity from the covenant.
162.8(c) Notwithstanding paragraph (a), on request of the claimant, the commissioner
162.9shall allow early withdrawal from the Sustainable Forest Incentive Act without penalty
162.10when the government or nonprofit entity acquires a permanent conservation easement
162.11on the enrolled property and the conservation easement is at least as restrictive as the
162.12covenant required under section 290C.04. The commissioner of natural resources must
162.13notify the commissioner of lands acquired under this paragraph that are eligible for
162.14withdrawal. In the case of an eligible easement acquisition under this paragraph, the
162.15commissioner shall execute and acknowledge a document releasing the land subject to
162.16the easement from the covenant.
162.17(d) Notwithstanding paragraph (a), on request of the claimant, the commissioner
162.18shall allow early withdrawal from the Sustainable Forest Incentive Act without penalty for
162.19land that is subject to fee or easement acquisition or lease to the state of Minnesota or a
162.20political subdivision of the state for the public purpose of a paved trail. The commissioner
162.21of natural resources must notify the commissioner of lands acquired under this paragraph
162.22that are eligible for withdrawal. In the case of an eligible fee or easement acquisition or
162.23lease under this paragraph, the commissioner shall execute and acknowledge a document
162.24releasing the land subject to fee or easement acquisition or lease by the state or political
162.25subdivision of the state.
162.26(e) All other enrolled land must remain in the program.
162.27EFFECTIVE DATE.Paragraphs (c) and (d) are effective the day following final
162.28enactment. Paragraphs (a), (b), and (e) are effective for notifications made in 2016 and
162.29thereafter.

162.30    Sec. 12. [290C.101] TRANSFER OF OWNERSHIP.
162.31    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
162.32have the meanings provided.
162.33(b) "New owner" means a prospective purchaser or grantee.
162.34(c) "Owner" means a grantor or seller.
163.1    Subd. 2. Notification to commissioner. (a) An owner must notify the commissioner
163.2if the owner transfers any or all of the owner's land enrolled in the sustainable forest
163.3incentive program to one or more new owners within 60 days of the transfer of title to the
163.4property. The notification must include the legal descriptions of the transferred property, the
163.5tax parcel numbers, and the name and addresses of the new owners. If transfer of ownership
163.6is a result of the death of the claimant, the provisions of section 290C.12 shall apply.
163.7(b) Upon notification, the commissioner shall inform the new owner of the
163.8restrictions of the covenant required by section 290C.04 and the withdrawal procedures
163.9under section 290C.10. In order for the new owner to receive payments pursuant to this
163.10chapter, the new owner must file an application and register a new forest management plan
163.11with the commissioner of natural resources within two years from the date the title of the
163.12property was transferred to remain eligible.
163.13    Subd. 3. Termination of enrollment. The commissioner will terminate enrollment
163.14according to the procedure in section 290C.10 for failure of the new owner to register a
163.15forest management plan within the time period in subdivision 2, paragraph (b).
163.16EFFECTIVE DATE.This section is effective the day following final enactment.

163.17    Sec. 13. Minnesota Statutes 2014, section 290C.11, is amended to read:
163.18290C.11 PENALTIES FOR REMOVAL.
163.19    (a) If the commissioner determines that land enrolled in the sustainable forest
163.20incentive program is in violation of the conditions for enrollment as specified in section
163.21290C.03 , or upon notification by the commissioner of natural resources that land enrolled
163.22is in violation of the conditions for enrollment, the commissioner shall notify the claimant
163.23current owner of the land of the intent to remove all the tax parcel of the enrolled land
163.24where the violation has occurred from the sustainable forest incentive program. The
163.25penalties described under paragraph (c) shall apply. The claimant current owner has 60
163.26days to appeal this determination under the provisions of section 290C.13.
163.27    (b) If the commissioner determines the land is to be removed from the sustainable
163.28forest incentive program due to the construction or addition of an improvement to the
163.29property, the claimant owner of the tax parcel that is in violation is liable for payment to
163.30the commissioner in the amount equal to : (1) the payments received issued related to the
163.31enrolled tax parcel under this chapter for the previous four-year period in the case of an
163.32eight-year minimum covenant, ten-year period in the case of 20-year minimum covenant,
163.33and 25-year period in the case of a 50-year minimum covenant, plus interest; and (2) 25
164.1percent of the estimated market value of the property as reclassified under section 273.13
164.2due to the structure being on the tax parcel, as determined by the assessor.
164.3(c) If the commissioner of natural resources determines that the land is used for
164.4purposes other than forestry purposes, the commissioner of natural resources shall notify
164.5the commissioner of revenue, who shall notify the current owner of the tax parcel that is in
164.6violation that the current owner is liable to the commissioner in an amount equal to: (1) 30
164.7percent of the estimated market value as property reclassified under section 273.13, due to
164.8the change in use, as determined by the assessor; and (2) the payments issued related to
164.9the enrolled tax parcel under this chapter for the previous four-year period in the case of
164.10an eight-year covenant, ten-year period in the case of a 20-year covenant, and 25-year
164.11period in the case of a 50-year covenant, plus interest.
164.12    (d) The claimant has 90 days to satisfy the payment for removal of land from the
164.13sustainable forest incentive program under this section. If the penalty is not paid within
164.14the 90-day period under this paragraph, the commissioner shall certify the amount to the
164.15county auditor for collection as a part of the general ad valorem real property taxes on the
164.16land in the following taxes payable year.
164.17EFFECTIVE DATE.This section is effective the day following final enactment.

164.18    Sec. 14. Minnesota Statutes 2014, section 290C.13, subdivision 6, is amended to read:
164.19    Subd. 6. Determination of appeal. On the basis of applicable law and available
164.20information, the commissioner shall determine the validity, if any, in whole or in part,
164.21of the appeal and notify the claimant of the decision. This notice must be in writing
164.22and contain the basis for the determination. The commissioner shall consult with the
164.23commissioner of natural resources when an appeal relates to the use of the property for
164.24forestry or nonforestry purposes and for appeals related to forest management plans.
164.25EFFECTIVE DATE.This section is effective the day following final enactment.

164.26    Sec. 15. SUSTAINABLE FOREST INCENTIVE ACT; TRANSITION
164.27PROVISION.
164.28(a) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2015, the
164.29owner of enrolled lands may elect through May 15, 2017, and without penalty, to change
164.30the length of a covenant, if eligible, under Minnesota Statutes, section 290C.055. The
164.31owner of enrolled land must provide notice to the Department of Revenue of its intent to
164.32change the length of its covenant.
165.1(b) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2015, the
165.2owner of enrolled land must comply with the changes made in the act by certifications due
165.3in 2017, as required under Minnesota Statutes, section 290C.05.
165.4EFFECTIVE DATE.This section is effective the day following final enactment.

165.5    Sec. 16. REPEALER.
165.6Minnesota Statutes 2014, sections 290C.02, subdivisions 5 and 9, are repealed.
165.7EFFECTIVE DATE.This section is effective the day following final enactment.

165.8ARTICLE 12
165.9MISCELLANEOUS

165.10    Section 1. Minnesota Statutes 2014, section 16A.152, subdivision 2, is amended to read:
165.11    Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general
165.12fund revenues and expenditures, the commissioner of management and budget determines
165.13that there will be a positive unrestricted budgetary general fund balance at the close of
165.14the biennium, the commissioner of management and budget must allocate money to the
165.15following accounts and purposes in priority order:
165.16    (1) the cash flow account established in subdivision 1 until that account reaches
165.17$350,000,000;
165.18    (2) the budget reserve account established in subdivision 1a until that account
165.19reaches $810,992,000 $994,339,000;
165.20    (3) the amount necessary to increase the aid payment schedule for school district
165.21aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
165.22nearest tenth of a percent without exceeding the amount available and with any remaining
165.23funds deposited in the budget reserve; and
165.24    (4) the amount necessary to restore all or a portion of the net aid reductions under
165.25section 127A.441 and to reduce the property tax revenue recognition shift under section
165.26123B.75, subdivision 5 , by the same amount.
165.27    (b) The amounts necessary to meet the requirements of this section are appropriated
165.28from the general fund within two weeks after the forecast is released or, in the case of
165.29transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
165.30schedules otherwise established in statute.
165.31    (c) The commissioner of management and budget shall certify the total dollar
165.32amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
165.33education. The commissioner of education shall increase the aid payment percentage and
166.1reduce the property tax shift percentage by these amounts and apply those reductions to
166.2the current fiscal year and thereafter.
166.3EFFECTIVE DATE.This section is effective July 1, 2015.

166.4    Sec. 2. Minnesota Statutes 2014, section 16A.152, subdivision 8, is amended to read:
166.5    Subd. 8. Report on budget reserve percentage. (a) The commissioner of
166.6management and budget shall develop and annually review a methodology for evaluating
166.7the adequacy of the budget reserve based on the volatility of Minnesota's general fund
166.8tax structure. The review must take into consideration relevant statistical and economic
166.9literature. After completing the review, the commissioner may revise the methodology
166.10if necessary. The commissioner must use the methodology to annually estimate the
166.11percentage of the current biennium's general fund nondedicated revenues recommended
166.12as a budget reserve.
166.13    (b) By January 15 August 31 of each year, the commissioner shall report the
166.14percentage of the current biennium's general fund nondedicated revenue that is
166.15recommended as a budget reserve to the chairs and ranking minority members of the
166.16legislative committees with jurisdiction over the Department of Management and Budget
166.17senate Finance Committee, the house of representatives Ways and Means Committee, and
166.18the senate and house of representatives committees on taxes. The report must also specify:
166.19    (1) whether the commissioner revised the recommendation as a result of significant
166.20changes in the mix of general fund taxes or the base of one or more general fund taxes;
166.21    (2) whether the commissioner revised the recommendation as a result of a revision
166.22to the methodology; and
166.23    (3) any additional appropriate information.
166.24EFFECTIVE DATE.This section is effective July 1, 2015.

166.25    Sec. 3. Minnesota Statutes 2014, section 271.08, subdivision 1, is amended to read:
166.26    Subdivision 1. Written order. The Tax Court, except in Small Claims Division,
166.27shall determine every appeal by written order containing findings of fact and the decision
166.28of the tax court. A memorandum of the grounds of the decision shall be appended. Notice
166.29of the entry of the order and of the substance of the decision shall be mailed to all parties.
166.30A motion for rehearing, which includes a motion for amended findings of fact, conclusions
166.31of law, or a new trial, must be served by the moving party within 15 30 days after mailing
166.32of the notice by the court as specified in this subdivision, and the motion must be heard
167.1within 30 60 days thereafter, unless the time for hearing is extended by the court within
167.2the 30-day 60-day period for good cause shown.
167.3EFFECTIVE DATE.This section is effective the day following final enactment.

167.4    Sec. 4. Minnesota Statutes 2014, section 271.21, subdivision 2, is amended to read:
167.5    Subd. 2. Jurisdiction. At the election of the taxpayer, the Small Claims Division
167.6shall have jurisdiction only in the following matters:
167.7(a) cases involving valuation, assessment, or taxation of real or personal property, if:
167.8(i) the issue is a denial of a current year application for the homestead classification
167.9for the taxpayer's property;
167.10(ii) only one parcel is included in the petition, the entire parcel is classified as
167.11homestead class 1a or 1b under section 273.13, and the parcel contains no more than
167.12one dwelling unit;
167.13(iii) the entire property is classified as agricultural homestead class 2a or 1b under
167.14section 273.13; or
167.15(iv) the assessor's estimated market value of the property included in the petition
167.16is less than $300,000; or
167.17(b) any case not involving valuation, assessment, or taxation of real and personal
167.18property in which the amount in controversy does not exceed $5,000 $15,000, including
167.19penalty and interest.
167.20EFFECTIVE DATE.This section is effective the day following final enactment.

167.21    Sec. 5. Minnesota Statutes 2014, section 296A.01, subdivision 12, is amended to read:
167.22    Subd. 12. Compressed natural gas or CNG. "Compressed natural gas" or "CNG"
167.23means natural gas, primarily methane, condensed under high pressure and stored in
167.24specially designed storage tanks at between 2,000 and 3,600 pounds per square inch.
167.25For purposes of this chapter, the energy content of CNG is considered to be 1,000 900
167.26BTUs per cubic foot.
167.27EFFECTIVE DATE.This section is effective for sales and purchases made after
167.28June 30, 2015.

167.29    Sec. 6. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision
167.30to read:
167.31    Subd. 13a. Dealer of gasoline used as a substitute for aviation gasoline. "Dealer
167.32of gasoline used as a substitute for aviation gasoline" means any person who sells gasoline
168.1on the premises of an airport as defined under section 360.013, subdivision 39, to be
168.2dispensed directly into the fuel tank of an aircraft.
168.3EFFECTIVE DATE.This section is effective for sales and purchases made after
168.4June 30, 2015.

168.5    Sec. 7. Minnesota Statutes 2014, section 296A.07, subdivision 4, is amended to read:
168.6    Subd. 4. Exemptions. The provisions of subdivision 1 do not apply to gasoline or
168.7denatured ethanol purchased by:
168.8    (1) a transit system or transit provider receiving financial assistance or
168.9reimbursement under section 174.24, 256B.0625, subdivision 17, or 473.384;
168.10    (2) providers of transportation to recipients of medical assistance home and
168.11community-based services waivers enrolled in day programs, including adult day care,
168.12family adult day care, day treatment and habilitation, prevocational services, and
168.13structured day services;
168.14(3) an ambulance service licensed under chapter 144E;
168.15(4) providers of medical or dental services by a federally qualified health center,
168.16as defined under title 19 of the Social Security Act, as amended by Section 4161 of the
168.17Omnibus Budget Reconciliation Act of 1990, with a motor vehicle used exclusively as a
168.18mobile medical unit; or
168.19    (5) a licensed distributor to be delivered to a terminal for use in blending; or
168.20    (6) a dealer of gasoline used as a substitute for aviation gasoline.
168.21EFFECTIVE DATE.This section is effective for sales and purchases made after
168.22June 30, 2015.

168.23    Sec. 8. Minnesota Statutes 2014, section 296A.08, subdivision 2, is amended to read:
168.24    Subd. 2. Rate of tax. The special fuel excise tax is imposed at the following rates:
168.25    (a) Liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon.
168.26    (b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.
168.27    (c) Compressed natural gas is taxed at the rate of $2.174 $1.974 per thousand cubic
168.28feet; or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline
168.29equivalent," as defined by the National Conference on Weights and Measures, is 5.66
168.30pounds of natural gas or 126.67 cubic feet.
168.31    (d) All other special fuel is taxed at the same rate as the gasoline excise tax as
168.32specified in section 296A.07, subdivision 2. The tax is payable in the form and manner
168.33prescribed by the commissioner.
169.1EFFECTIVE DATE.This section is effective for sales and purchases made after
169.2June 30, 2015.

169.3    Sec. 9. Minnesota Statutes 2014, section 296A.09, subdivision 1, is amended to read:
169.4    Subdivision 1. Gasoline tax imposed. Subject to any refunds or credits there is
169.5imposed an excise tax, at the rate of five cents per gallon on all aviation gasoline received,
169.6sold, stored, or withdrawn from storage in this state and on all gasoline used as a substitute
169.7for aviation gasoline. Aviation gasoline is defined in section 296A.01, subdivision 7.
169.8EFFECTIVE DATE.This section is effective for sales and purchases made after
169.9June 30, 2015.

169.10    Sec. 10. Minnesota Statutes 2014, section 296A.09, subdivision 3, is amended to read:
169.11    Subd. 3. Exception to tax for aviation use. The provisions of subdivisions 1 and 2
169.12do not apply to gasoline used as a substitute for aviation gasoline, aviation gasoline or
169.13special fuel purchased and placed in the fuel tanks of an aircraft outside the state, even
169.14though the gasoline may be consumed within this state.
169.15EFFECTIVE DATE.This section is effective for sales and purchases made after
169.16June 30, 2015.

169.17    Sec. 11. Minnesota Statutes 2014, section 296A.09, subdivision 5, is amended to read:
169.18    Subd. 5. Tax not on consumption. The taxes imposed by subdivisions 1 and 2 are
169.19expressly declared not to be a tax upon consumption of gasoline used as a substitute for
169.20aviation gasoline, aviation gasoline or special fuel by an aircraft.
169.21EFFECTIVE DATE.This section is effective for sales and purchases made after
169.22June 30, 2015.

169.23    Sec. 12. Minnesota Statutes 2014, section 296A.09, subdivision 6, is amended to read:
169.24    Subd. 6. Exemptions. The provisions of subdivisions 1 and 2 do not apply to
169.25gasoline used as a substitute for aviation gasoline, aviation gasoline or jet fuel purchased
169.26by an ambulance service licensed under chapter 144E.
169.27EFFECTIVE DATE.This section is effective for sales and purchases made after
169.28June 30, 2015.

169.29    Sec. 13. Minnesota Statutes 2014, section 296A.15, subdivision 1, is amended to read:
170.1    Subdivision 1. Monthly gasoline report; shrinkage allowance. (a) Except
170.2as provided in paragraph (e), on or before the 23rd day of each month, every person
170.3who is required to pay a gasoline tax shall file with the commissioner a report, in the
170.4form and manner prescribed by the commissioner, showing the number of gallons of
170.5petroleum products received by the reporter during the preceding calendar month, and
170.6other information the commissioner may require. A written report is deemed to have
170.7been filed as required in this subdivision if postmarked on or before the 23rd day of the
170.8month in which the tax is payable.
170.9(b) The number of gallons of gasoline must be reported in United States standard
170.10liquid gallons, 231 cubic inches, except that the commissioner may upon written
170.11application and for cause shown permit the distributor to report the number of gallons of
170.12gasoline as corrected to a temperature of 60-degrees Fahrenheit. If the application is
170.13granted, all gasoline covered in the application and allowed by the commissioner must
170.14continue to be reported by the distributor on the adjusted basis for a period of one year
170.15from the date of the granting of the application. The number of gallons of petroleum
170.16products other than gasoline must be reported as originally invoiced. Each report must
170.17show separately the number of gallons of aviation gasoline received by the reporter during
170.18each calendar month and the number of gallons of gasoline sold to a dealer of gasoline
170.19used as a substitute for aviation fuel during each calendar month.
170.20(c) Each report must also include the amount of gasoline tax on gasoline received by
170.21the reporter during the preceding month. In computing the tax a deduction of 2.5 percent
170.22of the quantity of gasoline received by a distributor shall be made for evaporation and loss.
170.23At the time of reporting, the reporter shall submit satisfactory evidence that one-third of
170.24the 2.5 percent deduction has been credited or paid to dealers on quantities sold to them.
170.25(d) Each report shall contain a confession of judgment for the amount of the tax
170.26shown due to the extent not timely paid.
170.27(e) Under certain circumstances and with the approval of the commissioner,
170.28taxpayers may be allowed to file reports annually.
170.29EFFECTIVE DATE.This section is effective for sales and purchases made after
170.30June 30, 2015.

170.31    Sec. 14. Minnesota Statutes 2014, section 296A.15, subdivision 4, is amended to read:
170.32    Subd. 4. Failure to use or sell for intended purpose; report required. (a) Any
170.33person who buys gasoline from a dealer of gasoline used as a substitute for aviation
170.34gasoline, or buys aviation gasoline or special fuel for aircraft use and who has paid the
170.35excise taxes due directly or indirectly through the amount of the tax being included in the
171.1price, or otherwise, and uses said gasoline or special fuel in motor vehicles or knowingly
171.2sells it to any person for use in motor vehicles shall, on or before the 23rd day of the month
171.3following that in which such gasoline or special fuel was so used or sold, report the fact of
171.4the use or sale to the commissioner in the form and manner prescribed by the commissioner.
171.5(b) Any person who buys gasoline other than aviation gasoline and who has paid the
171.6motor vehicle gasoline excise tax directly or indirectly through the amount of the tax being
171.7included in the price of the gasoline, or otherwise, who knowingly sells such gasoline to any
171.8person to be used for the purpose of producing or generating power for propelling aircraft,
171.9or who receives, stores, or withdraws from storage gasoline to be used for that purpose,
171.10shall, on or before the 23rd day of the month following that in which such gasoline was so
171.11sold, stored, or withdrawn from storage, report the fact of the sale, storage, or withdrawal
171.12from storage to the commissioner in the form and manner prescribed by the commissioner.
171.13EFFECTIVE DATE.This section is effective for sales and purchases made after
171.14June 30, 2015.

171.15    Sec. 15. Minnesota Statutes 2014, section 296A.17, subdivision 1, is amended to read:
171.16    Subdivision 1. Aviation refund requirements. Any person claiming to be entitled
171.17to any refund or credit provided for in subdivision 3 shall receive the refund or credit
171.18upon filing with the commissioner a claim in such form and manner prescribed by the
171.19commissioner. The claim shall set forth, among other things, the total number of gallons
171.20of gasoline used as a substitute for aviation gasoline, aviation gasoline or special fuel
171.21for aircraft use upon which the claimant has directly or indirectly paid the excise tax
171.22provided for in this chapter, during the calendar year, which has been received, stored, or
171.23withdrawn from storage by the claimant in this state and not sold or otherwise disposed of
171.24to others. All claims for refunds under this subdivision shall be made on or before April
171.2530 following the end of the calendar year for which the refund is claimed.
171.26EFFECTIVE DATE.This section is effective for sales and purchases made after
171.27June 30, 2015.

171.28    Sec. 16. Minnesota Statutes 2014, section 296A.17, subdivision 2, is amended to read:
171.29    Subd. 2. Claim for refund; aviation tax. (a) Any person who buys gasoline used
171.30as a substitute for aviation gasoline, aviation gasoline or special fuel for aircraft use and
171.31who has paid the excise taxes directly or indirectly through the amount of the tax being
171.32included in the price, or otherwise, who does not use it in motor vehicles or receive, sell,
171.33store, or withdraw it from storage for the purpose of producing or generating power for
172.1propelling aircraft, shall be reimbursed and repaid the amount of the tax paid upon filing
172.2with the commissioner a claim in the form and manner prescribed by the commissioner.
172.3The claim shall state the total amount of the gasoline used as a substitute for aviation
172.4gasoline, aviation gasoline or special fuel for aircraft use purchased and used by the
172.5applicant, and shall state when and for what purpose it was used. On being satisfied that
172.6the claimant is entitled to payment, the commissioner shall approve the claim and transmit
172.7it to the commissioner of management and budget. The postmark on the envelope in
172.8which a written claim is mailed determines the date of filing.
172.9(b) If a claim contains an error in preparation in computation or preparation, the
172.10commissioner is authorized to adjust the claim in accordance with the evidence shown on
172.11the claim or other information available to the commissioner.
172.12(c) An applicant who files a claim that is false or fraudulent, is subject to the
172.13penalties provided in section 296A.23 for knowingly and willfully making a false claim.
172.14EFFECTIVE DATE.This section is effective for sales and purchases made after
172.15June 30, 2015.

172.16    Sec. 17. Minnesota Statutes 2014, section 296A.17, subdivision 3, is amended to read:
172.17    Subd. 3. Refund on graduated basis. Any person who has directly or indirectly
172.18paid the excise tax on gasoline used as a substitute for aviation gasoline, aviation gasoline
172.19or special fuel for aircraft use provided for by this chapter and either paid the airflight
172.20property tax under section 270.072 or is a commercial pesticide applicator with a category
172.21B, general aerial license, under section 18B.33, for use in the aerial application of
172.22pesticide, shall, as to all such gasoline used as a substitute for aviation gasoline, aviation
172.23gasoline and special fuel received, stored, or withdrawn from storage by the person in
172.24this state in any calendar year and not sold or otherwise disposed of to others, or intended
172.25for sale or other disposition to others, on which such tax has been so paid, be entitled to
172.26the following graduated reductions in such tax for that calendar year, to be obtained by
172.27means of the following refunds:
172.28(1) on each gallon of such gasoline used as a substitute for aviation gasoline, aviation
172.29gasoline or special fuel up to 50,000 gallons, all but five cents per gallon;
172.30(2) on each gallon of such gasoline used as a substitute for aviation gasoline, aviation
172.31gasoline or special fuel above 50,000 gallons and not more than 150,000 gallons, all
172.32but two cents per gallon;
172.33(3) on each gallon of such gasoline used as a substitute for aviation gasoline, aviation
172.34gasoline or special fuel above 150,000 gallons and not more than 200,000 gallons, all
172.35but one cent per gallon;
173.1(4) on each gallon of such gasoline used as a substitute for aviation gasoline, aviation
173.2gasoline or special fuel above 200,000, all but one-half cent per gallon.
173.3EFFECTIVE DATE.This section is effective for sales and purchases made after
173.4June 30, 2015.

173.5    Sec. 18. Minnesota Statutes 2014, section 296A.18, subdivision 1, is amended to read:
173.6    Subdivision 1. Intent; gasoline use. All gasoline received in this state and all
173.7gasoline produced in or brought into this state except aviation gasoline, gasoline sold to a
173.8dealer of gasoline used as a substitute for aviation gasoline, and marine gasoline shall be
173.9determined to be intended for use in motor vehicles in this state.
173.10EFFECTIVE DATE.This section is effective for sales and purchases made after
173.11June 30, 2015.

173.12    Sec. 19. Minnesota Statutes 2014, section 296A.18, subdivision 8, is amended to read:
173.13    Subd. 8. Airports. The revenues derived from the excise taxes on gasoline used
173.14as a substitute for aviation gasoline, aviation gasoline and on special fuel received, sold,
173.15stored, or withdrawn from storage as substitutes for aviation gasoline, shall be paid into
173.16the state treasury and credited to the state airports fund. There is hereby appropriated such
173.17sums as are needed to carry out the provisions of this subdivision.
173.18EFFECTIVE DATE.This section is effective for sales and purchases made after
173.19June 30, 2015.

173.20    Sec. 20. Minnesota Statutes 2014, section 296A.19, subdivision 1, is amended to read:
173.21    Subdivision 1. Retention. All distributors, dealers, special fuel dealers, bulk
173.22purchasers, dealers of gasoline used as a substitute for aviation gasoline, and all users of
173.23special fuel shall keep a true and accurate record of all purchases, transfers, sales, and use
173.24of petroleum products and special fuel, including copies of all sales tickets issued, in a form
173.25and manner approved by the commissioner, and shall retain all such records for 3-1/2 years.
173.26EFFECTIVE DATE.This section is effective for sales and purchases made after
173.27June 30, 2015.

173.28    Sec. 21. Minnesota Statutes 2014, section 297A.994, subdivision 4, is amended to read:
173.29    Subd. 4. General fund allocations. The commissioner must retain and deposit to
173.30the general fund the following amounts, as required by subdivision 3, clause (3):
174.1(1) for state bond debt service support beginning in calendar year 2021, and for each
174.2calendar year thereafter through calendar year 2046, periodic amounts so that not later than
174.3December 31, 2046, an aggregate amount equal to a present value of $150,000,000 has been
174.4deposited in the general fund. To determine aggregate present value, the commissioner
174.5must consult with the commissioner of management and budget regarding the present value
174.6dates, discount rate or rates, and schedules of annual amounts. The present value date or
174.7dates must be based on the date or dates bonds are sold under section 16A.965, or the date
174.8or dates other state funds, if any, are deposited into the construction fund. The discount rate
174.9or rates must be based on the true interest cost of the bonds issued under section 16A.965,
174.10or an equivalent 30-year bond index, as determined by the commissioner of management
174.11and budget. The schedule of annual amounts must be certified to the commissioner by the
174.12commissioner of management and budget and the finance officer of the city;
174.13(2) for the capital improvement reserve appropriation to the Minnesota Sports
174.14Facilities Authority beginning in calendar year 2021, and for each calendar year thereafter
174.15through calendar year 2046, an aggregate annual amount equal to the amount paid by the
174.16state for this purpose in that calendar year under section 473J.13, subdivision 4;
174.17(3) for the operating expense appropriation to the Minnesota Sports Facilities
174.18Authority beginning in calendar year 2021, and for each calendar year thereafter through
174.19calendar year 2046, an aggregate annual amount equal to the amount paid by the state for
174.20this purpose in that calendar year under section 473J.13, subdivision 2;
174.21(4) for recapture of state advances for capital improvements and operating expenses
174.22for calendar years 2016 through 2020 beginning in calendar year 2021, and for each
174.23calendar year thereafter until all amounts under this clause have been paid, proportionate
174.24amounts periodically until an aggregate amount equal to the present value of all amounts
174.25paid by the state have been deposited in the general fund. To determine the present
174.26value of the amounts paid by the state to the authority and the present value of amounts
174.27deposited to the general fund under this clause, the commissioner shall consult with the
174.28commissioner of management and budget regarding the present value dates, discount rate
174.29or rates, and schedule of annual amounts. The present value dates must be based on
174.30the dates state funds are paid to the authority, or the dates the commissioner of revenue
174.31deposits taxes for purposes of this clause to the general fund. The discount rates must be
174.32based on the reasonably equivalent cost of state funds as determined by the commissioner
174.33of management and budget. The schedule of annual amounts must be revised to reflect
174.34amounts paid under section 473J.13, subdivision 2, paragraph (b), for 2016 to 2020,
174.35and subdivision 4, paragraph (c), for 2016 to 2020, and taxes deposited to the general
174.36fund from time to time under this clause, and the schedule and revised schedules must
175.1be certified to the commissioner by the commissioner of management and budget and
175.2the finance officer of the city, and are transferred as accrued from the general fund for
175.3repayment of advances made by the state to the authority; and
175.4(5) to capture increases in taxes imposed under the special law, for the benefit of
175.5the Minnesota Sports Facilities Authority, beginning in calendar year 2013 and for each
175.6calendar year thereafter through 2046, there shall be deposited to the general fund in
175.7proportionate periodic payments in the following year, an amount equal to the following:
175.8(i) 50 percent of the difference, if any, by which the amount of the net annual taxes
175.9for the previous year exceeds the sum of the net actual taxes in calendar year 2011 plus
175.10$1,000,000, inflated at two percent per year since 2011, minus
175.11(ii) 25 percent of the difference, if any, by which the amount of the net annual taxes
175.12for the preceding year exceeds the sum of the net actual taxes in calendar year 2011 plus
175.13$3,000,000, inflated at two percent per year since 2011; and
175.14(iii) of the amounts determined under items (i) and (ii), a total of $2,700,000 shall
175.15be used to offset taxes paid by the NFL and its employees in connection with a world
175.16championship football game sponsored by the NFL played at the stadium.
175.17EFFECTIVE DATE.This section is effective the day following final enactment.

175.18    Sec. 22. [383B.83] LIMITS ON RAILROAD CONDEMNATION POWERS
175.19OVER CERTAIN GOVERNMENTAL PROPERTY INTERESTS.
175.20Notwithstanding anything to the contrary in chapter 117, sections 222.26, 222.27,
175.21222.36, or any other law, the powers of a foreign or domestic railroad corporation or a
175.22railroad company or a railroad interest acting as a public service corporation or a common
175.23carrier do not include the power to exercise eminent domain over a property interest of
175.24Hennepin County, the Hennepin County Housing and Redevelopment Authority, or the
175.25Hennepin County Regional Railroad Authority if the governmental power, by resolution
175.26of its governing board, determines based on specific findings that the public safety or
175.27access of first responders would be substantially and adversely affected by the exercise.
175.28EFFECTIVE DATE.This section is effective retroactively from March 2, 2015,
175.29and applies to any eminent domain action to acquire any property interest of any of the
175.30named entities.

175.31    Sec. 23. [465.95] BROADBAND SERVICE PUBLIC-PRIVATE PARTNERSHIPS.
175.32    Subdivision 1. Local authority; broadband service. (a) A local unit of government
175.33may finance, acquire, and construct broadband equipment.
176.1(b) Local units of government and broadband joint powers boards, authorized under
176.2subdivision 3, are authorized to partner or contract with a private provider or cooperative
176.3to finance, acquire and construct the broadband equipment. For purposes of this section, a
176.4"local unit of government" means a statutory city, a home rule charter city, or county.
176.5    Subd. 2. Local authority; broadband infrastructure bonding. (a) Each local unit
176.6of government may, by resolution, authorize the issuance of general obligation bonds to
176.7provide funds for the acquisition or betterment of its broadband infrastructure, or for
176.8refunding any outstanding bonds issued for that purpose.
176.9(b) The proceeds of the bonds may also be used, in part, to establish a reserve as
176.10further security for the payment of the principal and interest of the bonds when due.
176.11(c) The local unit of government may pledge its full faith, credit, and taxing powers,
176.12or the proceeds of any designated tax levies, or the gross or net revenues or charges to
176.13be derived from any broadband service operated for the local unit of government, or any
176.14combination thereof. Taxes levied for the payment of the bonds and interest shall not reduce
176.15the amounts of other taxes which the local unit of government is authorized by law to levy.
176.16(d) Bonds issued under this section may be sold at public or private sale upon the terms
176.17and conditions the local unit of government determines. Except as otherwise provided, the
176.18bonds shall be issued and sold in accordance with the provisions of chapter 475.
176.19    Subd. 3. Broadband joint powers board. (a) A local unit of government may enter
176.20into an agreement under section 471.59 with other local units of government to finance,
176.21acquire, and construct broadband equipment in the territory within the jurisdiction of all
176.22participating local units of government.
176.23(b) An agreement entered into under this section may provide that:
176.24(1) each local unit of government shall issue bonds to pay their respective shares of
176.25the cost of the broadband projects;
176.26(2) one of the local units of government shall issue bonds to pay the full costs of the
176.27project and the other participating local units of government shall levy the tax authorized
176.28under this subdivision and pledge the collections of the tax to the local unit of government
176.29that issues the bonds; or
176.30(3) the joint powers board shall issue revenue bonds to pay the full costs of the
176.31project and the participating local units of government shall levy the tax authorized
176.32under this subdivision and pledge the collections of the tax to the joint powers entity for
176.33payment of the revenue bonds.
176.34    Subd. 4. Exemption. Section 237.19 does not apply to broadband activities under
176.35this section.
177.1    Subd. 5. Applicability. Subdivisions 2 and 3 apply only when a local unit of
177.2government partners or enters into an agreement with a private provider or cooperative to
177.3operate and maintain broadband service and equipment.
177.4    Subd. 6. Additional authority. This section is in addition to and does not limit
177.5any other authority of a local unit of government to engage in the activities authorized
177.6by this section.
177.7EFFECTIVE DATE.This section is effective the day following final enactment.

177.8    Sec. 24. Minnesota Statutes 2014, section 469.169, is amended by adding a subdivision
177.9to read:
177.10    Subd. 20. Additional border city allocations; 2015. In addition to the tax
177.11reductions authorized in subdivisions 12 to 19, the commissioner shall allocate $2,000,000
177.12for tax reductions to border city enterprise zones in cities located on the western border of
177.13the state. The commissioner shall allocate this amount among cities on a per capita basis.
177.14Allocations made under this subdivision may be used for tax reductions under sections
177.15469.171, 469.1732, and 469.1734, or for other offsets of taxes imposed on or remitted
177.16by businesses located in the enterprise zone, but only if the municipality determines
177.17that the granting of the tax reduction or offset is necessary to retain a business within
177.18or attract a business to the zone.
177.19EFFECTIVE DATE.This section is effective July 1, 2015.

177.20    Sec. 25. Minnesota Statutes 2014, section 469.40, subdivision 11, as amended by Laws
177.212015, chapter 1, section 6, is amended to read:
177.22    Subd. 11. Public infrastructure project. (a) "Public infrastructure project" means
177.23a project financed in part or in whole with public money in order to support the medical
177.24business entity's development plans, as identified in the DMCC development plan. A
177.25public infrastructure project may:
177.26(1) acquire real property and other assets associated with the real property;
177.27(2) demolish, repair, or rehabilitate buildings;
177.28(3) remediate land and buildings as required to prepare the property for acquisition
177.29or development;
177.30(4) install, construct, or reconstruct elements of public infrastructure required to
177.31support the overall development of the destination medical center development district
177.32including, but not limited to, streets, roadways, utilities systems and related facilities,
177.33utility relocations and replacements, network and communication systems, streetscape
178.1improvements, drainage systems, sewer and water systems, subgrade structures and
178.2associated improvements, landscaping, façade construction and restoration, wayfinding
178.3and signage, and other components of community infrastructure;
178.4(5) acquire, construct or reconstruct, and equip parking facilities and other facilities
178.5to encourage intermodal transportation and public transit;
178.6(6) install, construct or reconstruct, furnish, and equip parks, cultural, and
178.7recreational facilities, facilities to promote tourism and hospitality, conferencing and
178.8conventions, and broadcast and related multimedia infrastructure;
178.9(7) make related site improvements including, without limitation, excavation,
178.10earth retention, soil stabilization and correction, and site improvements to support the
178.11destination medical center development district;
178.12(8) prepare land for private development and to sell or lease land;
178.13(9) provide costs of relocation benefits to occupants of acquired properties; and
178.14(10) construct and equip all or a portion of one or more suitable structures on land
178.15owned by the city for sale or lease to private development; provided, however, that the
178.16portion of any structure directly financed by the city as a public infrastructure project must
178.17not be sold or leased to a medical business entity.
178.18(b) A public infrastructure project is not a business subsidy under section 116J.993.
178.19(c) Public infrastructure project includes the planning, preparation, and modification
178.20of the development plan under section 469.43, and. The cost of that planning, preparation,
178.21and any modification is a capital cost of the public infrastructure project.
178.22EFFECTIVE DATE.This section is effective the day after the governing body of
178.23the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
178.24645.021, subdivisions 2 and 3, and applies retroactively to the original effective dates of
178.25the laws that are amended.

178.26    Sec. 26. Minnesota Statutes 2014, section 469.43, is amended by adding a subdivision
178.27to read:
178.28    Subd. 6a. Restriction on city funds to support nonprofit economic development
178.29agency. The nonprofit economic development agency shall not require the city to pay
178.30any amounts to the nonprofit economic development agency that are unrelated to public
178.31infrastructure project costs.
178.32EFFECTIVE DATE.This section is effective the day after the governing body of
178.33the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
178.34645.021, subdivisions 2 and 3, and applies retroactively from June 22, 2013.

179.1    Sec. 27. Minnesota Statutes 2014, section 469.45, subdivision 1, is amended to read:
179.2    Subdivision 1. Rochester, other local taxes authorized. (a) Notwithstanding
179.3section 477A.016 or any other contrary provision of law, ordinance, or city charter, and in
179.4addition to any taxes the city may impose on these transactions under another statute or
179.5law, the city of Rochester may, by ordinance, impose at a rate or rates, determined by the
179.6city, any of the following taxes:
179.7(1) a tax on the gross receipts from the furnishing for consideration of lodging and
179.8related services as defined in section 297A.61, subdivision 3, paragraph (g), clause (2); the
179.9city may choose to impose a differential tax based on the number of rooms in the facility;
179.10(2) a tax on the gross receipts of food and beverages sold primarily for consumption
179.11on the premises by restaurants and places of refreshment that occur in the city of
179.12Rochester; the city may elect to impose the tax in a defined district of the city; and
179.13(3) a tax on the admission receipts to entertainment and recreational facilities, as
179.14defined by ordinance, in the city of Rochester.
179.15(b) The provisions of section 297A.99, subdivisions 4 to 13, govern the
179.16administration, collection, and enforcement of any tax imposed by the city under
179.17paragraph (a).
179.18(c) The proceeds of any taxes imposed under this subdivision, less refunds and
179.19costs of collection, must be used by the city only to meet its share of obligations for
179.20public infrastructure projects contained in the development plan and approved by the
179.21corporation, including any associated financing costs or to pay any other costs qualifying
179.22as a local matching contribution under section 469.47, subdivision 4. Any tax imposed
179.23under paragraph (a) expires at the earlier of December 31, 2049, or when the city council
179.24determines that sufficient funds have been raised from the tax plus all other local funding
179.25sources authorized in Laws 2013, chapter 143, article 10, to meet the city obligation for
179.26financing public infrastructure projects contained in the development plan and approved
179.27by the corporation, including any associated financing costs.
179.28EFFECTIVE DATE.This section is effective the day after the governing body of
179.29the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
179.30645.021, subdivisions 2 and 3, and applies retroactively to the original effective dates of
179.31the laws that are amended.

179.32    Sec. 28. Minnesota Statutes 2014, section 469.45, subdivision 2, is amended to read:
179.33    Subd. 2. General sales tax authority. The city may elect to extend the existing
179.34local sales and use tax under Laws 2013, chapter 143, article 10, section 13, or to impose
179.35an additional rate of up to one quarter of one percent tax on sales and use under Laws
180.12013, chapter 143, article 10, section 11. The proceeds of any extended or additional taxes
180.2imposed under this subdivision, less refunds and costs of collection, must be used by the
180.3city only to meet its share of obligations for public infrastructure projects contained in the
180.4development plan and approved by the corporation, including all financing costs. Revenues
180.5collected in any year to meet the obligations must be used for payment of obligations or
180.6expenses for public infrastructure projects approved by the corporation or of any other
180.7costs qualifying as a local matching contribution under section 469.47, subdivision 4.
180.8EFFECTIVE DATE.This section is effective the day after the governing body of
180.9the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
180.10645.021, subdivisions 2 and 3, and applies retroactively to the original effective dates of
180.11the laws that are amended.

180.12    Sec. 29. Minnesota Statutes 2014, section 469.47, subdivision 4, as amended by Laws
180.132015, chapter 1, section 10, is amended to read:
180.14    Subd. 4. General aid; local matching contribution. In order to qualify for general
180.15state infrastructure aid, the city must enter a written agreement with the commissioner that
180.16requires the city to make a qualifying local matching contribution to pay for $128,000,000
180.17of the cost of public infrastructure projects approved by the corporation, including
180.18financing costs, using funds other than state aid received under this section. Through June
180.1930, 2020, the $128,000,000 required local matching contribution is reduced by one-half of
180.20the any amounts the city pays for operating and administrative costs out of funds other
180.21than state aid received under this section for the support, administration, or operations of
180.22the corporation and the economic development agency up to a maximum amount agreed
180.23to by the board and the city. These amounts include any costs the city incurs in providing
180.24services, goods, or other support to the corporation or agency. Beginning on July 1,
180.252020, the required local matching contribution is reduced by one-half of the amounts
180.26the city pays for support, operating, and administrative costs of the corporation up to a
180.27maximum amount agreed to by the board and the city. The agreement must provide for the
180.28manner, timing, and amounts of the city contributions, including the city's commitment
180.29for each year. Notwithstanding any law to the contrary, the agreement may provide that
180.30the city contributions for public infrastructure project principal costs may be made over a
180.3120-year period at a rate not greater than $1 from the city for each $2.55 from the state.
180.32The local match contribution may be provided by the city from any source identified in
180.33section 469.45 and any other local tax proceeds or other funds from the city and may
180.34include providing funds to prepare the development plan, to assist developers undertaking
180.35projects in accordance with the development plan, or by the city directly undertaking
181.1public infrastructure projects in accordance with the development plan, provided the
181.2projects have been approved by the corporation. City contributions that are in excess of
181.3this ratio carry forward and are credited toward subsequent years. The commissioner and
181.4city may agree to amend the agreement at any time in light of new information or other
181.5appropriate factors. The city may enter into arrangements with the county to pay for or
181.6otherwise meet the local matching contribution requirement. Any public infrastructure
181.7project within the area that will be in the destination medical center development district
181.8whose implementation is started or funded by the city after June 22, 2013, but before the
181.9development plan is adopted, as provided by section 469.43, subdivision 1, will be included
181.10for the purposes of determining the amount the city has contributed as required by this
181.11section and the agreement with the commissioner, subject to approval by the corporation.
181.12EFFECTIVE DATE.This section is effective the day after the governing body of
181.13the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
181.14645.021, subdivisions 2 and 3, and applies retroactively to the original effective dates of
181.15the laws that are amended.

181.16    Sec. 30. Minnesota Statutes 2014, section 524.3-916, is amended to read:
181.17524.3-916 APPORTIONMENT OF ESTATE TAXES AND
181.18GENERATION-SKIPPING TAX.
181.19(a) For purposes of this section:
181.20(1) "estate" means the gross estate of a decedent as determined for the purpose of
181.21federal estate tax or the estate tax payable to this state;
181.22(2) "decedent's generation-skipping transfers" means all generation-skipping transfers
181.23as determined for purposes of the federal generation-skipping tax which occur by reason
181.24of the decedent's death which relate to property which is included in the decedent's estate;
181.25(3) "person" means any individual, partnership, association, joint stock company,
181.26corporation, limited liability company, government, political subdivision, governmental
181.27agency, or local governmental agency;
181.28(4) "person interested in the estate" means any person entitled to receive, or who has
181.29received, from a decedent or by reason of the death of a decedent any property or interest
181.30therein included in the decedent's estate. It includes a personal representative, guardian,
181.31conservator, trustee, and custodian;
181.32(5) "state" means any state, territory, or possession of the United States, the District
181.33of Columbia, and the Commonwealth of Puerto Rico;
182.1(6) "estate tax" means the federal estate tax and the state estate tax determined by the
182.2commissioner of revenue pursuant to chapter 291 and interest and penalties imposed in
182.3addition to the tax;
182.4(7) "decedent's generation-skipping tax" means the federal generation-skipping
182.5tax imposed on the decedent's generation-skipping transfers and interest and penalties
182.6imposed in addition to the tax;
182.7(8) "fiduciary" means personal representative or trustee.
182.8(b) Unless the will or other governing instrument otherwise provides: Any tax
182.9occasioned by a decedent's death shall be apportioned as set forth in clauses (1) to (4).
182.10(1) the Estate tax taxes shall be apportioned among all persons interested in the
182.11estate. The apportionment is to be made in the proportion that the value of the interest of
182.12each person interested in the estate bears to the total value of the interests of all persons
182.13interested in the estate. The values used in determining the tax are to shall be used for
182.14that purpose; and in apportioning the tax.
182.15(2) Notwithstanding the general rule set forth in clause (1), if property is included in
182.16the decedent's gross estate pursuant to section 2044 of the Internal Revenue Code of 1986,
182.17as amended, or any similar provision of any state estate tax law, the difference between the
182.18total estate tax payable by the decedent's estate and the amount of estate tax that would
182.19have been payable by the decedent's estate if the property had not been included in the
182.20decedent's gross estate shall be apportioned ratably among the holders of interests in the
182.21property. The values used in determining the tax shall be used in apportioning the tax. The
182.22balance of the tax, if any, shall be apportioned as provided in clause (1).
182.23(3) The decedent's generation-skipping tax shall be apportioned as provided by
182.24federal law. To the extent not provided by federal law, the decedent's generation-skipping
182.25tax shall be apportioned among all persons receiving the decedent's generation-skipping
182.26transfers whose tax apportionment is not provided by federal law in the proportion that the
182.27value of the transfer to each person bears to the total value of all such transfers.
182.28(4) If the decedent's will or other written instrument directs a method of
182.29apportionment of estate tax or of the decedent's generation-skipping tax different from
182.30the method methods described in this section, the method described in the will or other
182.31written instrument controls shall control; provided, however, that:
182.32(i) unless the decedent's will or other written instrument specifically indicates an
182.33intent to waive any right of recovery under section 2207A of the Internal Revenue Code of
182.341986, as amended, estate taxes on property described in clause (2) must be apportioned
182.35under the method described in this section to property included in the decedent's estate
182.36under section 2044 of the Internal Revenue Code of 1986, as amended clause (2); and
183.1(ii) unless the decedent's will or other written instrument specifically indicates an
183.2intent to waive any right of recovery under section 2207B of the Internal Revenue Code of
183.31986, as amended, estate taxes must be apportioned under the method described in this
183.4section to on property included in the decedent's estate under section 2036 of the Internal
183.5Revenue Code of 1986, as amended, must be apportioned under the method described
183.6in clause (1).
183.7(c)(1) The court in which venue lies for the administration of the estate of a decedent,
183.8on petition for the purpose may determine the apportionment of the estate tax or of the
183.9decedent's generation-skipping tax.
183.10(2) If the court finds that it is inequitable to apportion interest and penalties in
183.11the manner provided in subsection (b), because of special circumstances, it may direct
183.12apportionment thereof in the manner it finds equitable.
183.13(3) If the court finds that the assessment of penalties and interest assessed in relation
183.14to the estate tax or the decedent's generation-skipping tax is due to delay caused by the
183.15negligence of the fiduciary, the court may charge the fiduciary with the amount of the
183.16assessed penalties and interest.
183.17(4) In any action to recover from any person interested in the estate the amount of
183.18the estate tax or of the decedent's generation-skipping tax apportioned to the person in
183.19accordance with this section the determination of the court in respect thereto shall be
183.20prima facie correct.
183.21(d)(1) The personal representative or other person in possession of the property
183.22of the decedent required to pay the estate tax or the decedent's generation-skipping tax
183.23may withhold from any property distributable to any person interested in the estate,
183.24upon its distribution, the amount of any taxes attributable to the person's interest. If the
183.25property in possession of the personal representative or other person required to pay any
183.26taxes and distributable to any person interested in the estate is insufficient to satisfy the
183.27proportionate amount of the taxes determined to be due from the person, the personal
183.28representative or other person required to pay any taxes may recover the deficiency from
183.29the person interested in the estate. If the property is not in the possession of the personal
183.30representative or the other person required to pay any taxes, the personal representative or
183.31the other person required to pay any taxes may recover from any person interested in the
183.32estate the amount of any taxes apportioned to the person in accordance with this section.
183.33(2) If property held by the personal representative or other person in possession
183.34of the property of the decedent required to pay the estate tax or the decedent's
183.35generation-skipping tax is distributed prior to final apportionment of the estate tax or
183.36the decedent's generation-skipping tax, the distributee shall provide a bond or other
184.1security for the apportionment liability in the form and amount prescribed by the personal
184.2representative or other person, as the case may be.
184.3(e)(1) In making an apportionment, allowances shall be made for any exemptions
184.4granted, any classification made of persons interested in the estate and for any deductions
184.5and credits allowed by the law imposing the tax.
184.6(2) Any exemption or deduction allowed by reason of the relationship of any person
184.7to the decedent, by reason of the purposes of the gift, or by allocation to the gift (either
184.8by election by the fiduciary or by operation of federal law), inures to the benefit of the
184.9person bearing such relationship or receiving the gift; but if an interest is subject to a prior
184.10present interest which is not allowable as a deduction, the tax apportionable against the
184.11present interest shall be paid from principal.
184.12(3) Any deduction for property previously taxed and any credit for gift taxes or
184.13death taxes of a foreign country paid by the decedent or the decedent's estate inures to the
184.14proportionate benefit of all persons liable to apportionment.
184.15(4) Any credit for inheritance, succession or estate taxes or taxes in the nature
184.16thereof applicable to property or interests includable in the estate, inures to the benefit of
184.17the persons or interests chargeable with the payment thereof to the extent proportionately
184.18that the credit reduces the tax.
184.19(5) To the extent that property passing to or in trust for a surviving spouse or any
184.20charitable, public or similar gift or devise is not an allowable deduction for purposes of
184.21the estate tax solely by reason of an estate tax imposed upon and deductible from the
184.22property, the property is not included in the computation provided for in subsection (b)(1)
184.23hereof, and to that extent no apportionment is made against the property. The sentence
184.24immediately preceding does not apply to any case if the result would be to deprive the
184.25estate of a deduction otherwise allowable under section 2053(d) of the Internal Revenue
184.26Code of 1986, as amended, of the United States, relating to deduction for state death taxes
184.27on transfers for public, charitable, or religious uses.
184.28(f) No interest in income and no estate for years or for life or other temporary interest
184.29in any property or fund is subject to apportionment as between the temporary interest
184.30and the remainder. The estate tax on the temporary interest and the estate tax, if any, on
184.31the remainder is chargeable against the corpus of the property or funds subject to the
184.32temporary interest and remainder. The decedent's generation-skipping tax is chargeable
184.33against the property which constitutes the decedent's generation-skipping transfer.
184.34(g) Neither the personal representative nor other person required to pay the tax is
184.35under any duty to institute any action to recover from any person interested in the estate
184.36the amount of the estate tax or of the decedent's generation-skipping tax apportioned to the
185.1person until the final determination of the tax. A personal representative or other person
185.2required to pay the estate tax or decedent's generation-skipping tax who institutes the
185.3action within a reasonable time after final determination of the tax is not subject to any
185.4liability or surcharge because any portion of the tax apportioned to any person interested
185.5in the estate was collectible at a time following the death of the decedent but thereafter
185.6became uncollectible. If the personal representative or other person required to pay the
185.7estate tax or decedent's generation-skipping tax cannot collect from any person interested
185.8in the estate the amount of the tax apportioned to the person, the amount not recoverable
185.9shall be equitably apportioned among the other persons interested in the estate who are
185.10subject to apportionment of the tax involved.
185.11(h) A personal representative acting in another state or a person required to pay the
185.12estate tax or decedent's generation-skipping tax domiciled in another state may institute an
185.13action in the courts of this state and may recover a proportionate amount of the federal
185.14estate tax, of an estate tax payable to another state or of a death duty due by a decedent's
185.15estate to another state, or of the decedent's generation-skipping tax, from a person
185.16interested in the estate who is either domiciled in this state or who owns property in this
185.17state subject to attachment or execution. For the purposes of the action the determination
185.18of apportionment by the court having jurisdiction of the administration of the decedent's
185.19estate in the other state is prima facie correct.

185.20    Sec. 31. REPEALER.
185.21(a) Minnesota Statutes 2014, section 3.192, is repealed.
185.22(b) Minnesota Rules, part 8125.1300, subpart 3, is repealed.
185.23EFFECTIVE DATE.Paragraph (a) is effective retroactively from January 1, 2014.
185.24Paragraph (b) is effective the day following final enactment.

185.25ARTICLE 13
185.26DEPARTMENT POLICY AND TECHNICAL PROVISIONS - INCOME,
185.27CORPORATE FRANCHISE, AND ESTATE TAXES

185.28    Section 1. Minnesota Statutes 2014, section 289A.08, subdivision 11, is amended to
185.29read:
185.30    Subd. 11. Information included in income tax return. (a) The return must state:
185.31    (1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the
185.32address of the taxpayer in the same name or names and same address as the taxpayer has
185.33used in making the taxpayer's income tax return to the United States;
185.34    (2) the date or dates of birth of the taxpayer or taxpayers;
186.1    (3) the Social Security number of the taxpayer, or taxpayers, if a Social Security
186.2number has been issued by the United States with respect to the taxpayers; and
186.3    (4) the amount of the taxable income of the taxpayer as it appears on the federal
186.4return for the taxable year to which the Minnesota state return applies.
186.5    (b) The taxpayer must attach to the taxpayer's Minnesota state income tax return
186.6a copy of the federal income tax return that the taxpayer has filed or is about to file for
186.7the period, unless the taxpayer is eligible to telefile the federal return and does file the
186.8Minnesota return by telefiling.
186.9EFFECTIVE DATE.This section is effective the day following final enactment.

186.10    Sec. 2. Minnesota Statutes 2014, section 289A.08, subdivision 16, is amended to read:
186.11    Subd. 16. Tax refund or return preparers; electronic filing; paper filing fee
186.12imposed. (a) A "tax refund or return preparer," as defined in section 289A.60, subdivision
186.1313
, paragraph (f), who is a tax return preparer for purposes of section 6011(e) of the
186.14Internal Revenue Code, and who reasonably expects to prepare more than ten Minnesota
186.15individual income, corporate franchise, S corporation, partnership, or fiduciary income tax
186.16returns for the prior calendar year must file all Minnesota individual income, corporate
186.17franchise, S corporation, partnership, or fiduciary income tax returns prepared for that
186.18calendar year by electronic means.
186.19(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return
186.20that the taxpayer did not want the return filed by electronic means.
186.21(c) For each return that is not filed electronically by a tax refund or return preparer
186.22under this subdivision, including returns filed under paragraph (b), a paper filing fee
186.23of $5 is imposed upon the preparer. The fee is collected from the preparer in the same
186.24manner as income tax. The fee does not apply to returns that the commissioner requires
186.25to be filed in paper form.
186.26EFFECTIVE DATE.This section is effective for taxable years beginning after
186.27December 31, 2014.

186.28    Sec. 3. Minnesota Statutes 2014, section 289A.09, subdivision 2, is amended to read:
186.29    Subd. 2. Withholding statement. (a) A person required to deduct and withhold
186.30from an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision
186.312
, or who would have been required to deduct and withhold a tax under section 290.92,
186.32subdivision 2a
or 3, or persons required to withhold tax under section 290.923, subdivision
186.332
, determined without regard to section 290.92, subdivision 19, if the employee or payee
187.1had claimed no more than one withholding exemption, or who paid wages or made
187.2payments not subject to withholding under section 290.92, subdivision 2a or 3, or 290.923,
187.3subdivision 2
, to an employee or person receiving royalty payments in excess of $600,
187.4or who has entered into a voluntary withholding agreement with a payee under section
187.5290.92, subdivision 20 , must give every employee or person receiving royalty payments in
187.6respect to the remuneration paid by the person to the employee or person receiving royalty
187.7payments during the calendar year, on or before January 31 of the succeeding year, or, if
187.8employment is terminated before the close of the calendar year, within 30 days after the
187.9date of receipt of a written request from the employee if the 30-day period ends before
187.10January 31, a written statement showing the following:
187.11    (1) name of the person;
187.12    (2) the name of the employee or payee and the employee's or payee's Social Security
187.13account number;
187.14    (3) the total amount of wages as that term is defined in section 290.92, subdivision
187.151
, paragraph (1); the total amount of remuneration subject to withholding under section
187.16290.92, subdivision 20 ; the amount of sick pay as required under section 6051(f) of the
187.17Internal Revenue Code; and the amount of royalties subject to withholding under section
187.18290.923, subdivision 2 ; and
187.19    (4) the total amount deducted and withheld as tax under section 290.92, subdivision
187.202a
or 3, or 290.923, subdivision 2.
187.21    (b) The statement required to be furnished by paragraph (a) with respect to any
187.22remuneration must be furnished at those times, must contain the information required, and
187.23must be in the form the commissioner prescribes.
187.24    (c) The commissioner may prescribe rules providing for reasonable extensions of
187.25time, not in excess of 30 days, to employers or payers required to give the statements to
187.26their employees or payees under this subdivision.
187.27    (d) A duplicate of any statement made under this subdivision and in accordance
187.28with rules prescribed by the commissioner, along with a reconciliation in the form the
187.29commissioner prescribes of the statements for the calendar year, including a reconciliation
187.30of the quarterly returns required to be filed under subdivision 1, must be filed with the
187.31commissioner on or before February 28 of the year after the payments were made.
187.32    (e) If an employer cancels the employer's Minnesota withholding account number
187.33required by section 290.92, subdivision 24, the information required by paragraph (d),
187.34must be filed with the commissioner within 30 days of the end of the quarter in which
187.35the employer cancels its account number.
188.1    (f) The employer must submit the statements required to be sent to the commissioner
188.2in the same manner required to satisfy the federal reporting requirements of section
188.36011(e) of the Internal Revenue Code and the regulations issued under it. An employer
188.4must submit statements to the commissioner required by this section by electronic means
188.5if the employer is required to send more than 25 statements to the commissioner, even
188.6though the employer is not required to submit the returns federally by electronic means.
188.7For statements issued for wages paid in 2011 and after, the threshold is ten. All statements
188.8issued for withholding required under section 290.92 are aggregated for purposes of
188.9determining whether the electronic submission threshold is met. The commissioner shall
188.10prescribe the content, format, and manner of the statement pursuant to section 270C.30.
188.11    (g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph
188.12(a), clause (2), must submit the returns required by this subdivision and subdivision 1,
188.13paragraph (a), with the commissioner by electronic means.
188.14EFFECTIVE DATE.This section is effective for statements required to be sent to
188.15the commissioner after December 31, 2015.

188.16    Sec. 4. Minnesota Statutes 2014, section 289A.12, subdivision 14, is amended to read:
188.17    Subd. 14. Regulated investment companies; Reporting exempt interest and
188.18exempt-interest dividends. (a) A regulated investment company paying $10 or more in
188.19exempt-interest dividends to an individual who is a resident of Minnesota, or any person
188.20receiving $10 or more of exempt interest or exempt-interest dividends and paying as
188.21nominee to an individual who is a resident of Minnesota, must make a return indicating
188.22the amount of the exempt interest or exempt-interest dividends, the name, address, and
188.23Social Security number of the recipient, and any other information that the commissioner
188.24specifies. The return must be provided to the shareholder recipient by February 15 of the
188.25year following the year of the payment. The return provided to the shareholder recipient
188.26must include a clear statement, in the form prescribed by the commissioner, that the
188.27exempt interest or exempt-interest dividends must be included in the computation of
188.28Minnesota taxable income. By June 1 of each year, the regulated investment company
188.29payor must file a copy of the return with the commissioner.
188.30    (b) For purposes of this subdivision, the following definitions apply.
188.31    (1) "Exempt-interest dividends" mean exempt-interest dividends as defined in
188.32section 852(b)(5) of the Internal Revenue Code, but does not include the portion of
188.33exempt-interest dividends that are not required to be added to federal taxable income
188.34under section 290.01, subdivision 19a, clause (1)(ii).
189.1    (2) "Regulated investment company" means regulated investment company as
189.2defined in section 851(a) of the Internal Revenue Code or a fund of the regulated
189.3investment company as defined in section 851(g) of the Internal Revenue Code.
189.4    (3) "Exempt interest" means income on obligations of any state other than
189.5Minnesota, or a political or governmental subdivision, municipality, or governmental
189.6agency or instrumentality of any state other than Minnesota, and exempt from federal
189.7income taxes under the Internal Revenue Code or any other federal statute.
189.8EFFECTIVE DATE.This section is effective for reports required to be filed after
189.9December 31, 2015.

189.10    Sec. 5. Minnesota Statutes 2014, section 289A.60, subdivision 28, is amended to read:
189.11    Subd. 28. Preparer identification number. Any Minnesota individual income tax
189.12return or claim for refund prepared by a "tax refund or return preparer" as defined in
189.13subdivision 13, paragraph (f), shall bear the identification number the preparer is required
189.14to use federally under section 6109(a)(4) of the Internal Revenue Code. A tax refund or
189.15return preparer who prepares a Minnesota tax return for an individual income tax return,
189.16corporation, S corporation, partnership, fiduciary, or claim for refund and fails to include
189.17the required number on the return or claim is subject to a penalty of $50 for each failure.
189.18EFFECTIVE DATE.This section is effective for taxable years beginning after
189.19December 31, 2014.

189.20    Sec. 6. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:
189.21    Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
189.22and trusts, there shall be subtracted from federal taxable income:
189.23    (1) net interest income on obligations of any authority, commission, or
189.24instrumentality of the United States to the extent includable in taxable income for federal
189.25income tax purposes but exempt from state income tax under the laws of the United States;
189.26    (2) if included in federal taxable income, the amount of any overpayment of income
189.27tax to Minnesota or to any other state, for any previous taxable year, whether the amount
189.28is received as a refund or as a credit to another taxable year's income tax liability;
189.29    (3) the amount paid to others, less the amount used to claim the credit allowed under
189.30section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
189.31to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
189.32transportation of each qualifying child in attending an elementary or secondary school
189.33situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
190.1resident of this state may legally fulfill the state's compulsory attendance laws, which
190.2is not operated for profit, and which adheres to the provisions of the Civil Rights Act
190.3of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
190.4tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
190.5"textbooks" includes books and other instructional materials and equipment purchased
190.6or leased for use in elementary and secondary schools in teaching only those subjects
190.7legally and commonly taught in public elementary and secondary schools in this state.
190.8Equipment expenses qualifying for deduction includes expenses as defined and limited in
190.9section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
190.10books and materials used in the teaching of religious tenets, doctrines, or worship, the
190.11purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
190.12or materials for, or transportation to, extracurricular activities including sporting events,
190.13musical or dramatic events, speech activities, driver's education, or similar programs. No
190.14deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
190.15the qualifying child's vehicle to provide such transportation for a qualifying child. For
190.16purposes of the subtraction provided by this clause, "qualifying child" has the meaning
190.17given in section 32(c)(3) of the Internal Revenue Code;
190.18    (4) income as provided under section 290.0802;
190.19    (5) to the extent included in federal adjusted gross income, income realized on
190.20disposition of property exempt from tax under section 290.491;
190.21    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
190.22of the Internal Revenue Code in determining federal taxable income by an individual
190.23who does not itemize deductions for federal income tax purposes for the taxable year, an
190.24amount equal to 50 percent of the excess of charitable contributions over $500 allowable
190.25as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
190.26under the provisions of Public Law 109-1 and Public Law 111-126;
190.27    (7) for individuals who are allowed a federal foreign tax credit for taxes that do not
190.28qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
190.29of subnational foreign taxes for the taxable year, but not to exceed the total subnational
190.30foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
190.31"federal foreign tax credit" means the credit allowed under section 27 of the Internal
190.32Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
190.33under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
190.34the extent they exceed the federal foreign tax credit;
190.35    (8) in each of the five tax years immediately following the tax year in which an
190.36addition is required under subdivision 19a, clause (7), or 19c, clause (12) (11), in the case of
191.1a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
191.2delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
191.3of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
191.4clause (12) (11), in the case of a shareholder of an S corporation, minus the positive value
191.5of any net operating loss under section 172 of the Internal Revenue Code generated for the
191.6tax year of the addition. The resulting delayed depreciation cannot be less than zero;
191.7    (9) job opportunity building zone income as provided under section 469.316;
191.8    (10) to the extent included in federal taxable income, the amount of compensation
191.9paid to members of the Minnesota National Guard or other reserve components of the
191.10United States military for active service, including compensation for services performed
191.11under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
191.12service" means (i) state active service as defined in section 190.05, subdivision 5a, clause
191.13(1); or (ii) federally funded state active service as defined in section 190.05, subdivision
191.145b
, and "active service" includes service performed in accordance with section 190.08,
191.15subdivision 3
;
191.16    (11) to the extent included in federal taxable income, the amount of compensation
191.17paid to Minnesota residents who are members of the armed forces of the United States
191.18or United Nations for active duty performed under United States Code, title 10; or the
191.19authority of the United Nations;
191.20    (12) an amount, not to exceed $10,000, equal to qualified expenses related to a
191.21qualified donor's donation, while living, of one or more of the qualified donor's organs
191.22to another person for human organ transplantation. For purposes of this clause, "organ"
191.23means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
191.24"human organ transplantation" means the medical procedure by which transfer of a human
191.25organ is made from the body of one person to the body of another person; "qualified
191.26expenses" means unreimbursed expenses for both the individual and the qualified donor
191.27for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
191.28may be subtracted under this clause only once; and "qualified donor" means the individual
191.29or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
191.30individual may claim the subtraction in this clause for each instance of organ donation for
191.31transplantation during the taxable year in which the qualified expenses occur;
191.32    (13) in each of the five tax years immediately following the tax year in which an
191.33addition is required under subdivision 19a, clause (8), or 19c, clause (13) (12), in the case
191.34of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of
191.35the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13)
191.36(12), in the case of a shareholder of a corporation that is an S corporation, minus the
192.1positive value of any net operating loss under section 172 of the Internal Revenue Code
192.2generated for the tax year of the addition. If the net operating loss exceeds the addition for
192.3the tax year, a subtraction is not allowed under this clause;
192.4    (14) to the extent included in the federal taxable income of a nonresident of
192.5Minnesota, compensation paid to a service member as defined in United States Code, title
192.610, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
192.7Act, Public Law 108-189, section 101(2);
192.8    (15) to the extent included in federal taxable income, the amount of national service
192.9educational awards received from the National Service Trust under United States Code,
192.10title 42, sections 12601 to 12604, for service in an approved Americorps National Service
192.11program;
192.12(16) to the extent included in federal taxable income, discharge of indebtedness
192.13income resulting from reacquisition of business indebtedness included in federal taxable
192.14income under section 108(i) of the Internal Revenue Code. This subtraction applies only
192.15to the extent that the income was included in net income in a prior year as a result of the
192.16addition under subdivision 19a, clause (13);
192.17(17) the amount of the net operating loss allowed under section 290.095, subdivision
192.1811
, paragraph (c);
192.19(18) the amount of expenses not allowed for federal income tax purposes due
192.20to claiming the railroad track maintenance credit under section 45G(a) of the Internal
192.21Revenue Code;
192.22(19) the amount of the limitation on itemized deductions under section 68(b) of the
192.23Internal Revenue Code;
192.24(20) the amount of the phaseout of personal exemptions under section 151(d) of
192.25the Internal Revenue Code; and
192.26(21) to the extent included in federal taxable income, the amount of qualified
192.27transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal
192.28Revenue Code. The subtraction is limited to the lesser of the amount of qualified
192.29transportation fringe benefits received in excess of the limitations under section
192.30132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the
192.31maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal
192.32Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A)
192.33of the Internal Revenue Code.
192.34EFFECTIVE DATE.This section is effective the day following final enactment.

192.35    Sec. 7. Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read:
193.1    Subd. 19c. Corporations; additions to federal taxable income. For corporations,
193.2there shall be added to federal taxable income:
193.3    (1) the amount of any deduction taken for federal income tax purposes for income,
193.4excise, or franchise taxes based on net income or related minimum taxes, including but not
193.5limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota,
193.6another state, a political subdivision of another state, the District of Columbia, or any
193.7foreign country or possession of the United States;
193.8    (2) interest not subject to federal tax upon obligations of: the United States, its
193.9possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
193.10state, any of its political or governmental subdivisions, any of its municipalities, or any
193.11of its governmental agencies or instrumentalities; the District of Columbia; or Indian
193.12tribal governments;
193.13    (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
193.14Revenue Code;
193.15    (4) the amount of any net operating loss deduction taken for federal income tax
193.16purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
193.17deduction under section 810 of the Internal Revenue Code;
193.18    (5) the amount of any special deductions taken for federal income tax purposes
193.19under sections 241 to 247 and 965 of the Internal Revenue Code;
193.20    (6) losses from the business of mining, as defined in section 290.05, subdivision 1,
193.21clause (a), that are not subject to Minnesota income tax;
193.22    (7) the amount of any capital losses deducted for federal income tax purposes under
193.23sections 1211 and 1212 of the Internal Revenue Code;
193.24    (8) the amount of percentage depletion deducted under sections 611 through 614 and
193.25291 of the Internal Revenue Code;
193.26    (9) for certified pollution control facilities placed in service in a taxable year
193.27beginning before December 31, 1986, and for which amortization deductions were elected
193.28under section 169 of the Internal Revenue Code of 1954, as amended through December
193.2931, 1985, the amount of the amortization deduction allowed in computing federal taxable
193.30income for those facilities;
193.31    (10) (9) the amount of a partner's pro rata share of net income which does not flow
193.32through to the partner because the partnership elected to pay the tax on the income under
193.33section 6242(a)(2) of the Internal Revenue Code;
193.34    (11) (10) any increase in subpart F income, as defined in section 952(a) of the
193.35Internal Revenue Code, for the taxable year when subpart F income is calculated without
193.36regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
194.1    (12) (11) 80 percent of the depreciation deduction allowed under section
194.2168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if
194.3the taxpayer has an activity that in the taxable year generates a deduction for depreciation
194.4under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable
194.5year that the taxpayer is not allowed to claim for the taxable year, "the depreciation
194.6allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess
194.7of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A)
194.8over the amount of the loss from the activity that is not allowed in the taxable year. In
194.9succeeding taxable years when the losses not allowed in the taxable year are allowed, the
194.10depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;
194.11    (13) (12) 80 percent of the amount by which the deduction allowed by section 179 of
194.12the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
194.13Revenue Code of 1986, as amended through December 31, 2003;
194.14    (14) (13) to the extent deducted in computing federal taxable income, the amount of
194.15the deduction allowable under section 199 of the Internal Revenue Code;
194.16    (15) (14) the amount of expenses disallowed under section 290.10, subdivision 2; and
194.17(16) (15) discharge of indebtedness income resulting from reacquisition of business
194.18indebtedness and deferred under section 108(i) of the Internal Revenue Code.
194.19EFFECTIVE DATE.This section is effective the day following final enactment.

194.20    Sec. 8. Minnesota Statutes 2014, section 290.01, subdivision 19d, is amended to read:
194.21    Subd. 19d. Corporations; modifications decreasing federal taxable income. For
194.22corporations, there shall be subtracted from federal taxable income after the increases
194.23provided in subdivision 19c:
194.24    (1) the amount of foreign dividend gross-up added to gross income for federal
194.25income tax purposes under section 78 of the Internal Revenue Code;
194.26    (2) the amount of salary expense not allowed for federal income tax purposes due to
194.27claiming the work opportunity credit under section 51 of the Internal Revenue Code;
194.28    (3) any dividend (not including any distribution in liquidation) paid within the
194.29taxable year by a national or state bank to the United States, or to any instrumentality of
194.30the United States exempt from federal income taxes, on the preferred stock of the bank
194.31owned by the United States or the instrumentality;
194.32    (4) the deduction for capital losses pursuant to sections 1211 and 1212 of the
194.33Internal Revenue Code, except that:
194.34    (i) for capital losses incurred in taxable years beginning after December 31, 1986,
194.35capital loss carrybacks shall not be allowed;
195.1    (ii) for capital losses incurred in taxable years beginning after December 31, 1986,
195.2a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
195.3allowed;
195.4    (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
195.5capital loss carryback to each of the three taxable years preceding the loss year, subject to
195.6the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and
195.7    (iv) for capital losses incurred in taxable years beginning before January 1, 1987,
195.8a capital loss carryover to each of the five taxable years succeeding the loss year to the
195.9extent such loss was not used in a prior taxable year and subject to the provisions of
195.10Minnesota Statutes 1986, section 290.16, shall be allowed;
195.11    (5) an amount for interest and expenses relating to income not taxable for federal
195.12income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
195.13expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
195.14291 of the Internal Revenue Code in computing federal taxable income;
195.15    (6) in the case of mines, oil and gas wells, other natural deposits, and timber for
195.16which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a
195.17reasonable allowance for depletion based on actual cost. In the case of leases the deduction
195.18must be apportioned between the lessor and lessee in accordance with rules prescribed
195.19by the commissioner. In the case of property held in trust, the allowable deduction must
195.20be apportioned between the income beneficiaries and the trustee in accordance with the
195.21pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
195.22of the trust's income allocable to each;
195.23    (7) for certified pollution control facilities placed in service in a taxable year
195.24beginning before December 31, 1986, and for which amortization deductions were elected
195.25under section 169 of the Internal Revenue Code of 1954, as amended through December
195.2631, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
195.271986, section 290.09, subdivision 7;
195.28    (8) (7) amounts included in federal taxable income that are due to refunds of
195.29income, excise, or franchise taxes based on net income or related minimum taxes paid
195.30by the corporation to Minnesota, another state, a political subdivision of another state,
195.31the District of Columbia, or a foreign country or possession of the United States to the
195.32extent that the taxes were added to federal taxable income under subdivision 19c, clause
195.33(1), in a prior taxable year;
195.34    (9) (8) income or gains from the business of mining as defined in section 290.05,
195.35subdivision 1
, clause (a), that are not subject to Minnesota franchise tax;
196.1    (10) (9) the amount of disability access expenditures in the taxable year which are not
196.2allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
196.3    (11) (10) the amount of qualified research expenses not allowed for federal income
196.4tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent
196.5that the amount exceeds the amount of the credit allowed under section 290.068;
196.6    (12) (11) the amount of salary expenses not allowed for federal income tax purposes
196.7due to claiming the Indian employment credit under section 45A(a) of the Internal
196.8Revenue Code;
196.9    (13) (12) any decrease in subpart F income, as defined in section 952(a) of the
196.10Internal Revenue Code, for the taxable year when subpart F income is calculated without
196.11regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
196.12    (14) (13) in each of the five tax years immediately following the tax year in which an
196.13addition is required under subdivision 19c, clause (12) (11), an amount equal to one-fifth
196.14of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the
196.15amount of the addition made by the taxpayer under subdivision 19c, clause (12) (11). The
196.16resulting delayed depreciation cannot be less than zero;
196.17    (15) (14) in each of the five tax years immediately following the tax year in which an
196.18addition is required under subdivision 19c, clause (13) (12), an amount equal to one-fifth
196.19of the amount of the addition;
196.20(16) (15) to the extent included in federal taxable income, discharge of indebtedness
196.21income resulting from reacquisition of business indebtedness included in federal taxable
196.22income under section 108(i) of the Internal Revenue Code. This subtraction applies only
196.23to the extent that the income was included in net income in a prior year as a result of the
196.24addition under subdivision 19c, clause (16) (15); and
196.25(17) (16) the amount of expenses not allowed for federal income tax purposes due
196.26to claiming the railroad track maintenance credit under section 45G(a) of the Internal
196.27Revenue Code.
196.28EFFECTIVE DATE.This section is effective the day following final enactment.

196.29    Sec. 9. Minnesota Statutes 2014, section 290.0672, subdivision 1, is amended to read:
196.30    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
196.31have the meanings given.
196.32(b) "Long-term care insurance" means a policy that:
196.33(1) qualifies for a deduction under section 213 of the Internal Revenue Code,
196.34disregarding the 7.5 percent adjusted gross income test; or meets the requirements
197.1given in section 62A.46; or provides similar coverage issued under the laws of another
197.2jurisdiction; and
197.3(2) has a lifetime long-term care benefit limit of not less than $100,000; and
197.4(3) has been offered in compliance with the inflation protection requirements of
197.5section 62S.23.
197.6(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.
197.7(d) "Premiums deducted in determining federal taxable income" means the lesser of
197.8(1) long-term care insurance premiums that qualify as deductions under section 213 of
197.9the Internal Revenue Code; and (2) the total amount deductible for medical care under
197.10section 213 of the Internal Revenue Code.
197.11EFFECTIVE DATE.This section is effective retroactively for taxable years
197.12beginning after December 31, 2012.

197.13    Sec. 10. Minnesota Statutes 2014, section 290.091, subdivision 3, is amended to read:
197.14    Subd. 3. Exemption amount. (a) For purposes of computing the alternative
197.15minimum tax, the exemption amount is, for taxable years beginning after December 31,
197.162005, $60,000 for married couples filing joint returns, $30,000 for married individuals
197.17filing separate returns, estates, and trusts, and $45,000 for unmarried individuals.
197.18    (b) The exemption amount determined under this subdivision is subject to the phase
197.19out under section 55(d)(3) of the Internal Revenue Code, except that alternative minimum
197.20taxable income as determined under this section must be substituted in the computation of
197.21the phase out.
197.22    (c) For taxable years beginning after December 31, 2006, the exemption amount
197.23under paragraph (a), clause (2), must be adjusted for inflation. The commissioner shall
197.24adjust the exemption amount by the percentage determined pursuant to the provisions of
197.25section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) the word "2005"
197.26shall be substituted for the word "1992." For 2007, the commissioner shall then determine
197.27the percent change from the 12 months ending on August 31, 2005, to the 12 months
197.28ending on August 31, 2006, and in each subsequent year, from the 12 months ending on
197.29August 31, 2005, to the 12 months ending on August 31 of the year preceding the taxable
197.30year. The exemption amount as adjusted must be rounded to the nearest $10. If the amount
197.31ends in $5, it must be rounded up to the nearest $10 amount. The determination of the
197.32commissioner under this subdivision is not a rule under the Administrative Procedure Act.
197.33EFFECTIVE DATE.This section is effective the day following final enactment.

198.1    Sec. 11. Minnesota Statutes 2014, section 290.0921, subdivision 3, is amended to read:
198.2    Subd. 3. Alternative minimum taxable income. "Alternative minimum taxable
198.3income" is Minnesota net income as defined in section 290.01, subdivision 19, and
198.4includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e),
198.5(f), and (h) of the Internal Revenue Code. If a corporation files a separate company
198.6Minnesota tax return, the minimum tax must be computed on a separate company basis.
198.7If a corporation is part of a tax group filing a unitary return, the minimum tax must be
198.8computed on a unitary basis. The following adjustments must be made.
198.9(1) The portion of the depreciation deduction allowed for federal income tax
198.10purposes under section 168(k) of the Internal Revenue Code that is required as an addition
198.11under section 290.01, subdivision 19c, clause (12) (11), is disallowed in determining
198.12alternative minimum taxable income.
198.13(2) The subtraction for depreciation allowed under section 290.01, subdivision
198.1419d
, clause (14) (13), is allowed as a depreciation deduction in determining alternative
198.15minimum taxable income.
198.16(3) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d)
198.17of the Internal Revenue Code does not apply.
198.18(4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal
198.19Revenue Code does not apply.
198.20(5) The tax preference for depletion under section 57(a)(1) of the Internal Revenue
198.21Code does not apply.
198.22(6) The tax preference for tax exempt interest under section 57(a)(5) of the Internal
198.23Revenue Code does not apply.
198.24(7) The tax preference for charitable contributions of appreciated property under
198.25section 57(a)(6) of the Internal Revenue Code does not apply.
198.26(8) For purposes of calculating the adjustment for adjusted current earnings in
198.27section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable
198.28income" as it is used in section 56(g) of the Internal Revenue Code, means alternative
198.29minimum taxable income as defined in this subdivision, determined without regard to the
198.30adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.
198.31(9) For purposes of determining the amount of adjusted current earnings under
198.32section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section
198.3356(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend
198.34gross-up subtracted as provided in section 290.01, subdivision 19d, clause (1), or (ii) the
198.35amount of refunds of income, excise, or franchise taxes subtracted as provided in section
198.36290.01, subdivision 19d , clause (8) (7).
199.1(10) Alternative minimum taxable income excludes the income from operating in a
199.2job opportunity building zone as provided under section 469.317.
199.3Items of tax preference must not be reduced below zero as a result of the
199.4modifications in this subdivision.
199.5EFFECTIVE DATE.This section is effective the day following final enactment.

199.6    Sec. 12. Minnesota Statutes 2014, section 290A.19, is amended to read:
199.7290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT
199.8CERTIFICATE.
199.9(a) The owner or managing agent of any property for which rent is paid for
199.10occupancy as a homestead must furnish a certificate of rent paid to a person who is a
199.11renter on December 31, in the form prescribed by the commissioner. If the renter moves
199.12before December 31, the owner or managing agent may give the certificate to the renter
199.13at the time of moving, or mail the certificate to the forwarding address if an address has
199.14been provided by the renter. The certificate must be made available to the renter before
199.15February 1 of the year following the year in which the rent was paid. The owner or
199.16managing agent must retain a duplicate of each certificate or an equivalent record showing
199.17the same information for a period of three years. The duplicate or other record must be
199.18made available to the commissioner upon request.
199.19(b) The commissioner may require the owner or managing agent, through a
199.20simple process, to furnish to the commissioner on or before March 1 a copy of each
199.21certificate of rent paid furnished to a renter for rent paid in the prior year, in the content,
199.22format, and manner prescribed by the commissioner pursuant to section 270C.30. Prior
199.23to implementation, the commissioner, after consulting with representatives of owners
199.24or managing agents, shall develop an implementation and administration plan for the
199.25requirements of this paragraph that attempts to minimize financial burdens, administration
199.26and compliance costs, and takes into consideration existing systems of owners and
199.27managing agents.
199.28(c) For the purposes of this section, "owner" includes a park owner as defined under
199.29section 327C.01, subdivision 6, and "property" includes a lot as defined under section
199.30327C.01, subdivision 3 .
199.31EFFECTIVE DATE.This section is effective for certificates of rent paid for rent
199.32paid after December 31, 2014.

199.33    Sec. 13. Minnesota Statutes 2014, section 291.03, subdivision 10, is amended to read:
200.1    Subd. 10. Qualified farm property. Property satisfying all of the following
200.2requirements is qualified farm property:
200.3(1) The value of the property was included in the federal adjusted taxable estate.
200.4(2) The property consists of agricultural land and is owned by a person or entity that
200.5is either not subject to or is in compliance with section 500.24.
200.6(3) For property taxes payable in the taxable year of the decedent's death, the
200.7property is classified as class 2a property under section 273.13, subdivision 23, and is
200.8classified as agricultural homestead, agricultural relative homestead, or special agricultural
200.9homestead under section 273.124.
200.10(4) The decedent continuously owned the property, including property the decedent
200.11is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for
200.12the three-year period ending on the date of death of the decedent either by ownership of
200.13the agricultural land or pursuant to holding an interest in an entity that is not subject to
200.14or is in compliance with section 500.24.
200.15(5) The property is classified for property tax purposes as class 2a property under
200.16section 273.13, subdivision 23, for three years following the date of death of the decedent.
200.17No property shall cease to be qualified farm property solely because a residence existing
200.18at the time of the decedent's death is reclassified as class 4bb property under section
200.19273.13, subdivision 25, during the three-year period. No property shall cease to be
200.20qualified farm property solely because a portion consisting of no more than one-fifth is
200.21reclassified as 2b property under section 273.13, subdivision 23, during the three-year
200.22period, so long as the qualified heir has not substantially altered the reclassified property
200.23during the holding period.
200.24(6) The estate and the qualified heir elect to treat the property as qualified farm
200.25property and agree, in a form prescribed by the commissioner, to pay the recapture tax
200.26under subdivision 11, if applicable.
200.27EFFECTIVE DATE.This section is effective retroactively for estates of decedents
200.28dying after June 30, 2011.

200.29    Sec. 14. Minnesota Statutes 2014, section 291.031, is amended to read:
200.30291.031 CREDIT.
200.31(a) The estate of a nonresident decedent that is subject to tax under this chapter on
200.32the value of Minnesota situs property held in a pass-through entity is allowed a credit
200.33against the tax due under section 291.03 equal to the lesser of:
201.1(1) the amount of estate or inheritance tax paid to another state that is attributable to
201.2the Minnesota situs property held in the pass-through entity; or
201.3(2) the amount of tax paid under this section due under section 291.03 attributable to
201.4the Minnesota situs property held in the pass-through entity.
201.5(b) The amount of tax attributable to the Minnesota situs property held in the
201.6pass-through entity must be determined by the increase in the estate or inheritance tax that
201.7results from including the market value of the property in the estate or treating the value
201.8as a taxable inheritance to the recipient of the property.
201.9EFFECTIVE DATE.This section is effective retroactively for estates of decedents
201.10dying after December 31, 2013.

201.11    Sec. 15. REPEALER.
201.12Minnesota Rules, part 8092.2000, is repealed.
201.13EFFECTIVE DATE.This section is effective the day following final enactment.

201.14ARTICLE 14
201.15DEPARTMENT POLICY AND TECHNICAL PROVISIONS -
201.16SPECIAL TAXES AND SALES TAXES

201.17    Section 1. Minnesota Statutes 2014, section 69.021, subdivision 5, is amended to read:
201.18    Subd. 5. Calculation of state aid. (a) The amount of fire state aid available for
201.19apportionment, before the addition of the minimum fire state aid allocation amount under
201.20subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state
201.21upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported to
201.22the commissioner by insurers on the Minnesota Firetown Premium Report. This amount
201.23must be reduced by the amount required to pay the state auditor's costs and expenses of
201.24the audits or exams of the firefighters relief associations.
201.25The total amount for apportionment in respect to fire state aid must not be less than
201.26two percent of the premiums reported to the commissioner by insurers on the Minnesota
201.27Firetown Premium Report after subtracting the following amounts:
201.28(1) the amount required to pay the state auditor's costs and expenses of the audits or
201.29exams of the firefighters relief associations; and
201.30(2) one percent of the premiums reported by town and farmers' township mutual
201.31insurance companies and mutual property and casualty companies with total assets of
201.32$5,000,000 or less.
201.33(b) The total amount for apportionment as police state aid is equal to 104 percent
201.34of the amount of premium taxes paid to the state on the premiums reported to the
202.1commissioner by insurers on the Minnesota Aid to Police Premium Report. The total
202.2amount for apportionment in respect to the police state aid program must not be less than
202.3two percent of the amount of premiums reported to the commissioner by insurers on the
202.4Minnesota Aid to Police Premium Report.
202.5(c) The commissioner shall calculate the percentage of increase or decrease reflected
202.6in the apportionment over or under the previous year's available state aid using the same
202.7premiums as a basis for comparison.
202.8(d) In addition to the amount for apportionment of police state aid under paragraph
202.9(b), each year $100,000 must be apportioned for police state aid. An amount sufficient to
202.10pay this increase is annually appropriated from the general fund.
202.11EFFECTIVE DATE.This section is effective the day following final enactment.

202.12    Sec. 2. Minnesota Statutes 2014, section 289A.38, subdivision 6, is amended to read:
202.13    Subd. 6. Omission in excess of 25 percent. Additional taxes may be assessed
202.14within 6-1/2 years after the due date of the return or the date the return was filed,
202.15whichever is later, if:
202.16(1) the taxpayer omits from gross income an amount properly includable in it that is
202.17in excess of 25 percent of the amount of gross income stated in the return;
202.18(2) the taxpayer omits from a sales, use, or withholding tax return, or a return for a
202.19tax imposed under section 295.52, an amount of taxes in excess of 25 percent of the
202.20taxes reported in the return; or
202.21(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the
202.22gross estate reported in the return.
202.23EFFECTIVE DATE.This section is effective the day following final enactment.

202.24    Sec. 3. Minnesota Statutes 2014, section 290.0922, subdivision 2, is amended to read:
202.25    Subd. 2. Exemptions. The following entities are exempt from the tax imposed
202.26by this section:
202.27(1) corporations exempt from tax under section 290.05;
202.28(2) real estate investment trusts;
202.29(3) regulated investment companies or a fund thereof; and
202.30(4) entities having a valid election in effect under section 860D(b) of the Internal
202.31Revenue Code;
202.32(5) town and farmers' township mutual insurance companies;
203.1(6) cooperatives organized under chapter 308A or 308B that provide housing
203.2exclusively to persons age 55 and over and are classified as homesteads under section
203.3273.124, subdivision 3 ; and
203.4(7) a qualified business as defined under section 469.310, subdivision 11, if for the
203.5taxable year all of its property is located in a job opportunity building zone designated
203.6under section 469.314 and all of its payroll is a job opportunity building zone payroll
203.7under section 469.310.
203.8Entities not specifically exempted by this subdivision are subject to tax under this
203.9section, notwithstanding section 290.05.
203.10EFFECTIVE DATE.This section is effective the day following final enactment.

203.11    Sec. 4. Minnesota Statutes 2014, section 295.54, subdivision 2, is amended to read:
203.12    Subd. 2. Pharmacy refund. A pharmacy may claim an annual refund against
203.13the total amount of tax, if any, the pharmacy owes during that calendar year under
203.14section 295.52, subdivision 4. The refund shall equal the amount paid by the pharmacy
203.15to a wholesale drug distributor subject to tax under section 295.52, subdivision 3, for
203.16legend drugs delivered by the pharmacy outside of Minnesota, multiplied by the tax
203.17percentage specified in section 295.52, subdivision 3. If the amount of the refund exceeds
203.18the tax liability of the pharmacy under section 295.52, subdivision 4, the commissioner
203.19shall provide the pharmacy with a refund equal to the excess amount. Each qualifying
203.20pharmacy must apply for the refund on the annual return as provided under section
203.21295.55, subdivision 5 prescribed by the commissioner, on or before March 15 of the year
203.22following the calendar year the legend drugs were delivered outside Minnesota. The
203.23refund must be claimed within 18 months from the date the drugs were delivered outside
203.24of Minnesota shall not be allowed if the initial claim for refund is filed more than one year
203.25after the original due date of the return. Interest on refunds paid under this subdivision
203.26will begin to accrue 60 days after the date a claim for refund is filed. For purposes of this
203.27subdivision, the date a claim is filed is the due date of the return if a return is due or the
203.28date of the actual claim for refund, whichever is later.
203.29EFFECTIVE DATE.This section is effective for qualifying legend drugs delivered
203.30outside Minnesota after December 31, 2014.

203.31    Sec. 5. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision
203.32to read:
204.1    Subd. 9a. Bulk storage or bulk storage facility. "Bulk storage" or "bulk storage
204.2facility" means a single property, or contiguous or adjacent properties used for a common
204.3purpose and owned or operated by the same person, on or in which are located one or more
204.4stationary tanks that are used singularly or in combination for the storage or containment
204.5of more than 1,100 gallons of petroleum.
204.6EFFECTIVE DATE.This section is effective the day following final enactment.

204.7    Sec. 6. Minnesota Statutes 2014, section 296A.01, subdivision 33, is amended to read:
204.8    Subd. 33. Motor fuel. "Motor fuel" means a liquid or gaseous form of fuel,
204.9regardless of its composition or properties, used to propel a motor vehicle.
204.10EFFECTIVE DATE.This section is effective the day following final enactment.

204.11    Sec. 7. Minnesota Statutes 2014, section 296A.01, subdivision 42, is amended to read:
204.12    Subd. 42. Petroleum products. "Petroleum products" means all of the products
204.13defined in subdivisions 2, 7, 8, 8a, 8b, 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.
204.14EFFECTIVE DATE.This section is effective the day following final enactment.

204.15    Sec. 8. Minnesota Statutes 2014, section 296A.07, subdivision 1, is amended to read:
204.16    Subdivision 1. Tax imposed. There is imposed an excise tax on gasoline, gasoline
204.17blended with ethanol, and agricultural alcohol gasoline used in producing and generating
204.18power for propelling motor vehicles used on the public highways of this state. The tax
204.19is imposed on the first licensed distributor who received the product in Minnesota. For
204.20purposes of this section, gasoline is defined in section 296A.01, subdivisions 8b, 10, 18,
204.2120, 23, 24, 25, 32, and 34
. The tax is payable at the time and in the form and manner
204.22prescribed by the commissioner. The tax is payable at the rates specified in subdivision 3,
204.23subject to the exceptions and reductions specified in section 296A.17.
204.24EFFECTIVE DATE.This section is effective the day following final enactment.

204.25    Sec. 9. Minnesota Statutes 2014, section 297A.82, subdivision 4a, is amended to read:
204.26    Subd. 4a. Deposit in state airports fund. Tax revenue, including interest and
204.27penalties, collected from the sale or purchase of an aircraft taxable under this chapter must
204.28be deposited in the state airports fund established in section 360.017. For purposes of this
204.29subdivision, "revenue" does not include the revenue, including interest and penalties,
205.1generated by the sales tax imposed under section 297A.62, subdivision 1a, which must be
205.2deposited as provided under the Minnesota Constitution, article XI, section 15.
205.3EFFECTIVE DATE.This section is effective the day following final enactment.

205.4    Sec. 10. Minnesota Statutes 2014, section 297E.02, subdivision 7, is amended to read:
205.5    Subd. 7. Untaxed gambling product. (a) In addition to penalties or criminal
205.6sanctions imposed by this chapter, a person, organization, or business entity possessing or
205.7selling a pull-tab, electronic pull-tab game, or tipboard upon which the tax imposed by
205.8this chapter has not been paid is liable for a tax of six percent of the ideal gross of each
205.9pull-tab, electronic pull-tab game, or tipboard. The tax on a partial deal must be assessed
205.10as if it were a full deal.
205.11(b) In addition to penalties and criminal sanctions imposed by this chapter, a person
205.12(1) not licensed by the board who conducts bingo, linked bingo, electronic linked bingo,
205.13raffles, or paddlewheel games, or (2) who conducts gambling prohibited under sections
205.14609.75 to 609.763, other than activities subject to tax under section 297E.03, is liable for a
205.15tax of six percent of the gross receipts from that activity.
205.16(c) The tax must may be assessed by the commissioner. An assessment must be
205.17considered a jeopardy assessment or jeopardy collection as provided in section 270C.36.
205.18The commissioner shall assess the tax based on personal knowledge or information
205.19available to the commissioner. The commissioner shall mail to the taxpayer at the
205.20taxpayer's last known address, or serve in person, a written notice of the amount of tax,
205.21demand its immediate payment, and, if payment is not immediately made, collect the tax
205.22by any method described in chapter 270C, except that the commissioner need not await the
205.23expiration of the times specified in chapter 270C. The tax assessed by the commissioner
205.24is presumed to be valid and correctly determined and assessed. The burden is upon the
205.25taxpayer to show its incorrectness or invalidity. The tax imposed under this subdivision
205.26does not apply to gambling that is exempt from taxation under subdivision 2.
205.27(d) A person, organization, or business entity conducting gambling activity under
205.28this subdivision must file monthly tax returns with the commissioner, in the form required
205.29by the commissioner. The returns must be filed on or before the 20th day of the month
205.30following the month in which the gambling activity occurred. The tax imposed by this
205.31section is due and payable at the time when the returns are required to be filed.
205.32(e) Notwithstanding any law to the contrary, neither the commissioner nor a public
205.33employee may reveal facts contained in a tax return filed with the commissioner of
205.34revenue as required by this subdivision, nor can any information contained in the report or
205.35return be used against the tax obligor in any criminal proceeding, unless independently
206.1obtained, except in connection with a proceeding involving taxes due under this section,
206.2or as provided in section 270C.055, subdivision 1. However, this paragraph does not
206.3prohibit the commissioner from publishing statistics that do not disclose the identity of
206.4tax obligors or the contents of particular returns or reports. Any person violating this
206.5paragraph is guilty of a gross misdemeanor.
206.6EFFECTIVE DATE.This section is effective for games played or purchased after
206.7June 30, 2015.

206.8    Sec. 11. Minnesota Statutes 2014, section 297H.06, subdivision 2, is amended to read:
206.9    Subd. 2. Materials. The tax is not imposed upon charges to generators of mixed
206.10municipal solid waste or upon the volume of nonmixed municipal solid waste for waste
206.11management services to manage the following materials:
206.12(1) mixed municipal solid waste and nonmixed municipal solid waste generated
206.13outside of Minnesota;
206.14(2) recyclable materials that are separated for recycling by the generator, collected
206.15separately from other waste, and recycled, to the extent the price of the service for
206.16handling recyclable material is separately itemized on a bill to the generator;
206.17(3) recyclable nonmixed municipal solid waste that is separated for recycling by
206.18the generator, collected separately from other waste, delivered to a waste facility for the
206.19purpose of recycling, and recycled;
206.20(4) industrial waste, when it is transported to a facility owned and operated by
206.21the same person that generated it;
206.22(5) mixed municipal solid waste from a recycling facility that separates or processes
206.23recyclable materials and reduces the volume of the waste by at least 85 percent, provided
206.24that the exempted waste is managed separately from other waste;
206.25(6) recyclable materials that are separated from mixed municipal solid waste by the
206.26generator, collected and delivered to a waste facility that recycles at least 85 percent of its
206.27waste, and are collected with mixed municipal solid waste that is segregated in leakproof
206.28bags, provided that the mixed municipal solid waste does not exceed five percent of the
206.29total weight of the materials delivered to the facility and is ultimately delivered to a waste
206.30facility identified as a preferred waste management facility in county solid waste plans
206.31under section 115A.46;
206.32(7) source-separated compostable waste materials, if the waste is materials are
206.33delivered to a facility exempted as described in this clause. To initially qualify for an
206.34exemption, a facility must apply for an exemption in its application for a new or amended
206.35solid waste permit to the Pollution Control Agency. The first time a facility applies to the
207.1agency it must certify in its application that it will comply with the criteria in items (i) to (v)
207.2and the commissioner of the agency shall so certify to the commissioner of revenue who
207.3must grant the exemption. The facility must annually apply to the agency for certification
207.4to renew its exemption for the following year. The application must be filed according to
207.5the procedures of, and contain the information required by, the agency. The commissioner
207.6of revenue shall grant the exemption if the commissioner of the Pollution Control Agency
207.7finds and certifies to the commissioner of revenue that based on an evaluation of the
207.8composition of incoming waste and residuals and the quality and use of the product:
207.9(i) generators separate materials at the source;
207.10(ii) the separation is performed in a manner appropriate to the technology specific
207.11to the facility that:
207.12(A) maximizes the quality of the product;
207.13(B) minimizes the toxicity and quantity of residuals rejects; and
207.14(C) provides an opportunity for significant improvement in the environmental
207.15efficiency of the operation;
207.16(iii) the operator of the facility educates generators, in coordination with each county
207.17using the facility, about separating the waste to maximize the quality of the waste stream
207.18for technology specific to the facility;
207.19(iv) process residuals rejects do not exceed 15 percent of the weight of the total
207.20material delivered to the facility; and
207.21(v) the final product is accepted for use;
207.22(8) waste and waste by-products for which the tax has been paid; and
207.23(9) daily cover for landfills that has been approved in writing by the Minnesota
207.24Pollution Control Agency.
207.25EFFECTIVE DATE.This section is effective the day following final enactment.

207.26    Sec. 12. Minnesota Statutes 2014, section 297I.05, subdivision 2, is amended to read:
207.27    Subd. 2. Town and farmers' Township mutual insurance. A tax is imposed on
207.28town and farmers' township mutual insurance companies. The rate of tax is equal to one
207.29percent of gross premiums less return premiums on all direct business received by the
207.30insurer or agents of the insurer in Minnesota, in cash or otherwise, during the year.
207.31EFFECTIVE DATE.This section is effective the day following final enactment.

207.32    Sec. 13. Minnesota Statutes 2014, section 297I.10, subdivision 1, is amended to read:
208.1    Subdivision 1. Cities of the first class. (a) The commissioner shall order and direct
208.2a surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross
208.3premiums, less return premiums, on all direct business received by any licensed foreign or
208.4domestic fire insurance company on property in a city of the first class, or by its agents for
208.5it, in cash or otherwise.
208.6(b) By July 31 and December 31 of each year, the commissioner of management
208.7and budget shall pay to each city of the first class a warrant for an amount equal to the
208.8total amount of the surcharge on the premiums collected within that city since the previous
208.9payment.
208.10(c) The treasurer of the city shall place the money received under this subdivision
208.11in a special account or fund to defray all or a portion of the employer contribution
208.12requirement of public employees police and fire plan coverage for city firefighters.
208.13EFFECTIVE DATE.This section is effective the day following final enactment.

208.14    Sec. 14. Minnesota Statutes 2014, section 297I.10, subdivision 3, is amended to read:
208.15    Subd. 3. Appropriation. The amount necessary to make the payments required
208.16under this section is appropriated to the commissioner of management and budget from
208.17the general fund.
208.18EFFECTIVE DATE.This section is effective the day following final enactment.

208.19    Sec. 15. Minnesota Statutes 2014, section 298.01, subdivision 3b, is amended to read:
208.20    Subd. 3b. Deductions. (a) For purposes of determining taxable income under
208.21subdivision 3, the deductions from gross income include only those expenses necessary
208.22to convert raw ores to marketable quality. Such expenses include costs associated with
208.23refinement but do not include expenses such as transportation, stockpiling, marketing, or
208.24marine insurance that are incurred after marketable ores are produced, unless the expenses
208.25are included in gross income. The allowable deductions from a mine or plant that mines
208.26and produces more than one mineral, metal, or energy resource must be determined
208.27separately for the purposes of computing the deduction in section 290.01, subdivision 19c,
208.28clause (8). These deductions may be combined on one occupation tax return to arrive at
208.29the deduction from gross income for all production.
208.30(b) The provisions of section 290.01, subdivisions 19c, clauses (6) and (8), and 19d,
208.31clauses (6) and (9) (8), are not used to determine taxable income.
208.32EFFECTIVE DATE.This section is effective the day following final enactment.

209.1    Sec. 16. Minnesota Statutes 2014, section 298.01, subdivision 4c, is amended to read:
209.2    Subd. 4c. Special deductions; net operating loss. (a) For purposes of determining
209.3taxable income under subdivision 4, the provisions of section 290.01, subdivisions 19c,
209.4clauses (6)
and (8), and 19d, clauses (6) and (9) (8), are not used to determine taxable
209.5income.
209.6(b) The amount of net operating loss incurred in a taxable year beginning before
209.7January 1, 1990, that may be carried over to a taxable year beginning after December 31,
209.81989, is the amount of net operating loss carryover determined in the calculation of the
209.9hypothetical corporate franchise tax under Minnesota Statutes 1988, sections 298.40
209.10
and 298.402.
209.11EFFECTIVE DATE.This section is effective the day following final enactment.

209.12ARTICLE 15
209.13DEPARTMENT OF REVENUE TECHNICAL AND POLICY -
209.14PROPERTY TAX PROVISIONS

209.15    Section 1. Minnesota Statutes 2014, section 13.51, subdivision 2, is amended to read:
209.16    Subd. 2. Income property assessment data. The following data collected by
209.17political subdivisions and the state from individuals or business entities concerning
209.18income properties are classified as private or nonpublic data pursuant to section 13.02,
209.19subdivisions 9
and 12:
209.20(a) detailed income and expense figures;
209.21(b) average vacancy factors;
209.22(c) verified net rentable areas or net usable areas, whichever is appropriate;
209.23(d) anticipated income and expenses;
209.24(e) projected vacancy factors; and
209.25(f) lease information.
209.26EFFECTIVE DATE.This section is effective the day following final enactment.

209.27    Sec. 2. Minnesota Statutes 2014, section 270.071, subdivision 2, is amended to read:
209.28    Subd. 2. Air commerce. (a) "Air commerce" means the transportation by aircraft
209.29of persons or property for hire in interstate, intrastate, or international transportation
209.30on regularly scheduled flights or on intermittent or irregularly timed flights by airline
209.31companies and includes transportation by any airline company making three or more
209.32flights in or out of Minnesota, or within Minnesota, during a calendar year.
209.33(b) "Air commerce" includes but is not limited to an intermittent or irregularly timed
209.34flight, a flight arranged at the convenience of an airline and the person contracting for the
210.1transportation, or a charter flight. It includes any airline company making three or more
210.2flights in or out of Minnesota during a calendar year.
210.3(c) "Air commerce" does not include casual transportation for hire by aircraft
210.4commonly owned and used for private air flight purposes if the person furnishing the
210.5transportation does not hold out to be engaged regularly in transportation for hire.
210.6EFFECTIVE DATE.This section is effective for assessment year 2016 and
210.7thereafter.

210.8    Sec. 3. Minnesota Statutes 2014, section 270.071, subdivision 7, is amended to read:
210.9    Subd. 7. Flight property. "Flight property" means all aircraft and flight equipment
210.10used in connection therewith, including spare flight equipment. Flight property also
210.11includes computers and computer software used in operating, controlling, or regulating
210.12aircraft and flight equipment. Flight property does not include aircraft with a maximum
210.13takeoff weight of less than 30,000 pounds.
210.14EFFECTIVE DATE.This section is effective for assessment year 2016 and
210.15thereafter.

210.16    Sec. 4. Minnesota Statutes 2014, section 270.071, subdivision 8, is amended to read:
210.17    Subd. 8. Person. "Person" means any an individual, corporation, firm,
210.18copartnership, company, or association, and includes any guardian, trustee, executor,
210.19administrator, receiver, conservator, or any person acting in any fiduciary capacity therefor
210.20trust, estate, fiduciary, partnership, company, corporation, limited liability company,
210.21association, governmental unit or agency, public or private organization of any kind,
210.22or other legal entity.
210.23EFFECTIVE DATE.This section is effective for assessment year 2016 and
210.24thereafter.

210.25    Sec. 5. Minnesota Statutes 2014, section 270.071, is amended by adding a subdivision
210.26to read:
210.27    Subd. 10. Intermittent or irregularly timed flights. "Intermittently or irregularly
210.28timed flights" means any flight in which the departure time, departure location, and arrival
210.29location are specifically negotiated with the customer or the customer's representative,
210.30including but not limited to charter flights.
211.1EFFECTIVE DATE.This section is effective for assessment year 2016 and
211.2thereafter.

211.3    Sec. 6. Minnesota Statutes 2014, section 270.072, subdivision 2, is amended to read:
211.4    Subd. 2. Assessment of flight property. Flight property that is owned by, or is
211.5leased, loaned, or otherwise made available to an airline company operating in Minnesota
211.6shall be assessed and appraised annually by the commissioner with reference to its value
211.7on January 2 of the assessment year in the manner prescribed by sections 270.071 to
211.8270.079 . Aircraft with a gross weight of less than 30,000 pounds and used on intermittent
211.9or irregularly timed flights shall be excluded from the provisions of sections 270.071 to
211.10270.079.
211.11EFFECTIVE DATE.This section is effective for assessment year 2016 and
211.12thereafter.

211.13    Sec. 7. Minnesota Statutes 2014, section 270.072, subdivision 3, is amended to read:
211.14    Subd. 3. Report by airline company. (a) Each year, on or before July 1, every
211.15airline company engaged in air commerce in this state shall file with the commissioner a
211.16report under oath setting forth specifically the information prescribed by the commissioner
211.17to enable the commissioner to make the assessment required in sections 270.071 to
211.18270.079 , unless the commissioner determines that the airline company or person should be
211.19excluded from is exempt from filing because its activities do not constitute air commerce
211.20as defined herein.
211.21    (b) The commissioner shall prescribe the content, format, and manner of the report
211.22pursuant to section 270C.30, except that a "law administered by the commissioner"
211.23includes the property tax laws. If a report is made by electronic means, the taxpayer's
211.24signature is defined pursuant to section 270C.304, except that a "law administered by the
211.25commissioner" includes the property tax laws.
211.26EFFECTIVE DATE.The amendment to paragraph (a) is effective for reports
211.27filed in 2016 and thereafter. The amendment adding paragraph (b) is effective the day
211.28following final enactment.

211.29    Sec. 8. Minnesota Statutes 2014, section 270.072, is amended by adding a subdivision
211.30to read:
211.31    Subd. 3a. Commissioner filed reports. If an airline company fails to file a report
211.32required by subdivision 3, the commissioner may, from information in the commissioner's
212.1possession or obtainable by the commissioner, make and file a report for the airline
212.2company, or may issue a notice of net tax capacity and tax under section 270.075,
212.3subdivision 2.
212.4EFFECTIVE DATE.This section is effective for assessment year 2016 and
212.5thereafter.

212.6    Sec. 9. Minnesota Statutes 2014, section 270.12, is amended by adding a subdivision
212.7to read:
212.8    Subd. 6. Reassessment orders. If the State Board of Equalization determines that a
212.9considerable amount of property has been undervalued or overvalued compared to like
212.10property such that the assessment is grossly unfair or inequitable, the State Board of
212.11Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue orders
212.12to the county assessor to reassess all or any part of a parcel in a county.
212.13EFFECTIVE DATE.This section is effective for assessment year 2016 and
212.14thereafter.

212.15    Sec. 10. Minnesota Statutes 2014, section 270.82, subdivision 1, is amended to read:
212.16    Subdivision 1. Annual report required. Every railroad company doing business
212.17in Minnesota shall annually file with the commissioner on or before March 31 a report
212.18under oath setting forth the information prescribed by the commissioner to enable the
212.19commissioner to make the valuation and equalization required by sections 270.80 to
212.20270.87 . The commissioner shall prescribe the content, format, and manner of the report
212.21pursuant to section 270C.30, except that a "law administered by the commissioner"
212.22includes the property tax laws. If a report is made by electronic means, the taxpayer's
212.23signature is defined pursuant to section 270C.304, except that a "law administered by the
212.24commissioner" includes the property tax laws.
212.25EFFECTIVE DATE.This section is effective the day following final enactment.

212.26    Sec. 11. Minnesota Statutes 2014, section 270C.89, subdivision 1, is amended to read:
212.27    Subdivision 1. Initial report. Each county assessor shall file by April 1 with the
212.28commissioner a copy of the abstract that will be acted upon by the local and county
212.29boards of review. The abstract must list the real and personal property in the county
212.30itemized by assessment districts. The assessor of each county in the state shall file with
212.31the commissioner, within ten working days following final action of the local board of
212.32review or equalization and within five days following final action of the county board of
213.1equalization, any changes made by the local or county board. The information must be
213.2filed in the manner prescribed by the commissioner. It must be accompanied by a printed
213.3or typewritten copy of the proceedings of the appropriate board.
213.4EFFECTIVE DATE.This section is effective for county boards of appeal and
213.5equalization meetings held in 2016 and thereafter.

213.6    Sec. 12. Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:
213.7    Subd. 9. Personal property; exceptions. Except for the taxable personal property
213.8enumerated below, all personal property and the property described in section 272.03,
213.9subdivision 1
, paragraphs (c) and (d), shall be exempt.
213.10The following personal property shall be taxable:
213.11(a) personal property which is part of (i) an electric generating, transmission, or
213.12distribution system or; (ii) a pipeline system transporting or distributing water, gas, crude
213.13oil, or petroleum products; or (iii) mains and pipes used in the distribution of steam or hot
213.14or chilled water for heating or cooling buildings and structures;
213.15(b) railroad docks and wharves which are part of the operating property of a railroad
213.16company as defined in section 270.80;
213.17(c) personal property defined in section 272.03, subdivision 2, clause (3);
213.18(d) leasehold or other personal property interests which are taxed pursuant to section
213.19272.01, subdivision 2 ; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law
213.20providing the property is taxable as if the lessee or user were the fee owner;
213.21(e) manufactured homes and sectional structures, including storage sheds, decks,
213.22and similar removable improvements constructed on the site of a manufactured home,
213.23sectional structure, park trailer or travel trailer as provided in section 273.125, subdivision
213.248
, paragraph (f); and
213.25(f) flight property as defined in section 270.071.
213.26EFFECTIVE DATE.This section is effective the day following final enactment.

213.27    Sec. 13. Minnesota Statutes 2014, section 272.029, subdivision 2, is amended to read:
213.28    Subd. 2. Definitions. (a) For the purposes of this section, the term:
213.29(1) "wind energy conversion system" has the meaning given in section 216C.06,
213.30subdivision 19, and also includes a substation that is used and owned by one or more
213.31wind energy conversion facilities;
214.1(2) "large scale wind energy conversion system" means a wind energy conversion
214.2system of more than 12 megawatts, as measured by the nameplate capacity of the system
214.3or as combined with other systems as provided in paragraph (b);
214.4(3) "medium scale wind energy conversion system" means a wind energy conversion
214.5system of over two and not more than 12 megawatts, as measured by the nameplate
214.6capacity of the system or as combined with other systems as provided in paragraph (b); and
214.7(4) "small scale wind energy conversion system" means a wind energy conversion
214.8system of two megawatts and under, as measured by the nameplate capacity of the system
214.9or as combined with other systems as provided in paragraph (b).
214.10(b) For systems installed and contracted for after January 1, 2002, the total size of a
214.11wind energy conversion system under this subdivision shall be determined according to
214.12this paragraph. Unless the systems are interconnected with different distribution systems,
214.13the nameplate capacity of one wind energy conversion system shall be combined with the
214.14nameplate capacity of any other wind energy conversion system that is:
214.15(1) located within five miles of the wind energy conversion system;
214.16(2) constructed within the same calendar year 12-month period as the wind energy
214.17conversion system; and
214.18(3) under common ownership.
214.19In the case of a dispute, the commissioner of commerce shall determine the total size
214.20of the system, and shall draw all reasonable inferences in favor of combining the systems.
214.21(c) In making a determination under paragraph (b), the commissioner of commerce
214.22may determine that two wind energy conversion systems are under common ownership
214.23when the underlying ownership structure contains similar persons or entities, even if the
214.24ownership shares differ between the two systems. Wind energy conversion systems are
214.25not under common ownership solely because the same person or entity provided equity
214.26financing for the systems.
214.27EFFECTIVE DATE.This section is effective for reports filed in 2016 and thereafter.

214.28    Sec. 14. Minnesota Statutes 2014, section 272.029, subdivision 4, is amended to read:
214.29    Subd. 4. Reports. (a) An owner of a wind energy conversion system subject to tax
214.30under subdivision 3 shall file a report with the commissioner of revenue annually on
214.31or before February 1 January 15 detailing the amount of electricity in kilowatt-hours
214.32that was produced by the wind energy conversion system for the previous calendar year.
214.33The commissioner shall prescribe the form of the report. The report must contain the
214.34information required by the commissioner to determine the tax due to each county under
214.35this section for the current year. If an owner of a wind energy conversion system subject
215.1to taxation under this section fails to file the report by the due date, the commissioner
215.2of revenue shall determine the tax based upon the nameplate capacity of the system
215.3multiplied by a capacity factor of 60 percent.
215.4(b) On or before February 28, the commissioner of revenue shall notify the owner of
215.5the wind energy conversion systems of the tax due to each county for the current year and
215.6shall certify to the county auditor of each county in which the systems are located the tax
215.7due from each owner for the current year.
215.8EFFECTIVE DATE.This section is effective for reports filed in 2016 and thereafter.

215.9    Sec. 15. Minnesota Statutes 2014, section 272.029, is amended by adding a subdivision
215.10to read:
215.11    Subd. 8. Extension. The commissioner may, for good cause, extend the time for
215.12filing the report required by subdivision 4. The extension must not exceed 15 days.
215.13EFFECTIVE DATE.This section is effective for reports filed in 2016 and thereafter.

215.14    Sec. 16. Minnesota Statutes 2014, section 273.032, is amended to read:
215.15273.032 MARKET VALUE DEFINITION.
215.16    (a) Unless otherwise provided, for the purpose of determining any property tax
215.17levy limitation based on market value or any limit on net debt, the issuance of bonds,
215.18certificates of indebtedness, or capital notes based on market value, any qualification to
215.19receive state aid based on market value, or any state aid amount based on market value,
215.20the terms "market value," "estimated market value," and "market valuation," whether
215.21equalized or unequalized, mean the estimated market value of taxable property within the
215.22local unit of government before any of the following or similar adjustments for:
215.23    (1) the market value exclusions under:
215.24    (i) section 273.11, subdivisions 14a and 14c (vacant platted land);
215.25    (ii) section 273.11, subdivision 16 (certain improvements to homestead property);
215.26    (iii) section 273.11, subdivisions 19 and 20 (certain improvements to business
215.27properties);
215.28    (iv) section 273.11, subdivision 21 (homestead property damaged by mold);
215.29    (v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);
215.30    (vi) (v) section 273.13, subdivision 34 (homestead of a disabled veteran or family
215.31caregiver); or
215.32    (vii) (vi) section 273.13, subdivision 35 (homestead market value exclusion); or
215.33    (2) the deferment of value under:
216.1    (i) the Minnesota Agricultural Property Tax Law, section 273.111;
216.2    (ii) the Aggregate Resource Preservation Law, section 273.1115;
216.3    (iii) the Minnesota Open Space Property Tax Law, section 273.112;
216.4    (iv) the rural preserves property tax program, section 273.114; or
216.5    (v) the Metropolitan Agricultural Preserves Act, section 473H.10; or
216.6    (3) the adjustments to tax capacity for:
216.7    (i) tax increment financing under sections 469.174 to 469.1794;
216.8    (ii) fiscal disparities under chapter 276A or 473F; or
216.9    (iii) powerline credit under section 273.425.
216.10    (b) Estimated market value under paragraph (a) also includes the market value
216.11of tax-exempt property if the applicable law specifically provides that the limitation,
216.12qualification, or aid calculation includes tax-exempt property.
216.13    (c) Unless otherwise provided, "market value," "estimated market value," and
216.14"market valuation" for purposes of property tax levy limitations and calculation of state
216.15aid, refer to the estimated market value for the previous assessment year and for purposes
216.16of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital notes
216.17refer to the estimated market value as last finally equalized.
216.18    (d) For purposes of a provision of a home rule charter or of any special law that is not
216.19codified in the statutes and that imposes a levy limitation based on market value or any limit
216.20on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market
216.21value, the terms "market value," "taxable market value," and "market valuation," whether
216.22equalized or unequalized, mean "estimated market value" as defined in paragraph (a).
216.23EFFECTIVE DATE.This section is effective the day following final enactment.

216.24    Sec. 17. Minnesota Statutes 2014, section 273.061, subdivision 7, is amended to read:
216.25    Subd. 7. Division of duties between local and county assessor. The duty of the
216.26duly appointed local assessor shall be to view and appraise the value of all property as
216.27provided by law, but all the book work shall be done by the county assessor, or the
216.28assessor's assistants, and the value of all property subject to assessment and taxation shall
216.29be determined by the county assessor, except as otherwise hereinafter provided. If directed
216.30by the county assessor, the local assessor shall must perform the duties enumerated in
216.31subdivision 8, clause (16), and must enter construction and valuation data into the records
216.32in the manner prescribed by the county auditor.
216.33EFFECTIVE DATE.This section is effective for assessment year 2016 and
216.34thereafter.

217.1    Sec. 18. Minnesota Statutes 2014, section 273.08, is amended to read:
217.2273.08 ASSESSOR'S DUTIES.
217.3The assessor shall actually view, and determine the market value of each tract or lot
217.4of real property listed for taxation, including the value of all improvements and structures
217.5thereon, at maximum intervals of five years and shall enter the value opposite each
217.6description. When directed by the county assessor, local assessors must enter construction
217.7and valuation data into the records in the manner prescribed by the county assessor.
217.8EFFECTIVE DATE.This section is effective for assessment year 2016 and
217.9thereafter.

217.10    Sec. 19. Minnesota Statutes 2014, section 273.121, is amended by adding a subdivision
217.11to read:
217.12    Subd. 3. Compliance. A county assessor, or a city assessor having the powers
217.13of a county assessor, who does not comply with the timely notice requirement under
217.14subdivision 1 must:
217.15(1) mail an additional valuation notice to each person who was not provided timely
217.16notice; and
217.17(2) convene a supplemental local board of appeal and equalization or local review
217.18session no sooner than ten days after sending the additional notices required by clause (1).
217.19EFFECTIVE DATE.This section is effective for valuation notices sent in 2016
217.20and thereafter.

217.21    Sec. 20. Minnesota Statutes 2014, section 273.33, subdivision 1, is amended to read:
217.22    Subdivision 1. Listing and assessment in county. The personal property of express,
217.23stage and transportation companies, and of pipeline companies engaged in the business
217.24of transporting natural gas, gasoline, crude oil, or other petroleum products, except as
217.25otherwise provided by law, shall be listed and assessed in the county, town or district
217.26where the same is usually kept.
217.27EFFECTIVE DATE.This section is effective the day following final enactment.

217.28    Sec. 21. Minnesota Statutes 2014, section 273.33, subdivision 2, is amended to read:
217.29    Subd. 2. Listing and assessment by commissioner. The personal property,
217.30consisting of the pipeline system of mains, pipes, and equipment attached thereto, of
217.31pipeline companies and others engaged in the operations or business of transporting
218.1natural gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed
218.2with and assessed by the commissioner of revenue and the values provided to the
218.3city or county assessor by order. This subdivision shall not apply to the assessment of
218.4the products transported through the pipelines nor to the lines of local commercial gas
218.5companies engaged primarily in the business of distributing gas products to consumers at
218.6retail nor to pipelines used by the owner thereof to supply natural gas or other petroleum
218.7products exclusively for such owner's own consumption and not for resale to others. If
218.8more than 85 percent of the natural gas or other petroleum products actually transported
218.9over the pipeline is used for the owner's own consumption and not for resale to others,
218.10then this subdivision shall not apply; provided, however, that in that event, the pipeline
218.11shall be assessed in proportion to the percentage of gas products actually transported over
218.12such pipeline that is not used for the owner's own consumption. On or before August 1,
218.13the commissioner shall certify to the auditor of each county, the amount of such personal
218.14property assessment against each company in each district in which such property is
218.15located. If the commissioner determines that the amount of personal property assessment
218.16certified on or before August 1 is in error, the commissioner may issue a corrected
218.17certification on or before October 1. The commissioner may correct errors that are merely
218.18clerical in nature until December 31.
218.19EFFECTIVE DATE.This section is effective the day following final enactment.

218.20    Sec. 22. Minnesota Statutes 2014, section 273.371, is amended to read:
218.21273.371 REPORTS OF UTILITY COMPANIES.
218.22    Subdivision 1. Report required. Every electric light, power, gas, water, express,
218.23stage, and transportation company, and pipeline company doing business in Minnesota
218.24shall annually file with the commissioner on or before March 31 a report under oath setting
218.25forth the information prescribed by the commissioner to enable the commissioner to make
218.26valuations, recommended valuations, and equalization required under sections 273.33,
218.27273.35 , 273.36, 273.37, and 273.3711. If all the required information is not available on
218.28March 31, the company or pipeline shall file the information that is available on or before
218.29March 31, and the balance of the information as soon as it becomes available.
218.30    Subd. 2. Extension. The commissioner for good cause may extend the time for
218.31filing the report required by subdivision 1. The extension may must not exceed 15 days.
218.32    Subd. 3. Reports filed by the commissioner. If a company fails to file a report
218.33required by subdivision 1, the commissioner may, from information in the commissioner's
218.34possession or obtainable by the commissioner, make and file a report for the company, or
219.1make the valuations, recommended valuations, and equalizations required under sections
219.2273.33, 273.35 to 273.37, and 273.3711.
219.3EFFECTIVE DATE.This section is effective for assessment year 2016 and
219.4thereafter.

219.5    Sec. 23. Minnesota Statutes 2014, section 273.372, subdivision 2, is amended to read:
219.6    Subd. 2. Contents and filing of petition. (a) In all appeals to court that are required
219.7to be brought against the commissioner under this section, the petition initiating the appeal
219.8must be served on the commissioner and must be filed with the Tax Court in Ramsey
219.9County, as provided in paragraph (b) or (c).
219.10(b) If the appeal to court is from an order of the commissioner, it must be brought
219.11under chapter 271 and filed within the time period prescribed in section 271.06,
219.12subdivision 2, except that when the provisions of this section conflict with chapter
219.13271 or 278, this section prevails. In addition, the petition must include all the parcels
219.14encompassed by that order which the petitioner claims have been partially, unfairly,
219.15or unequally assessed, assessed at a valuation greater than their real or actual value,
219.16misclassified, or are exempt. For this purpose, an order of the commissioner is either (1) a
219.17certification or notice of value by the commissioner for property described in subdivision
219.181, or (2) the final determination by the commissioner of either an administrative appeal
219.19conference or informal administrative appeal described in subdivision 4.
219.20(c) If the appeal is from the tax that results from implementation of the
219.21commissioner's order, certification, or recommendation, it must be brought under
219.22chapter 278, and the provisions in that chapter apply, except that service shall be on the
219.23commissioner only and not on the local officials specified in section 278.01, subdivision 1,
219.24and if any other provision of this section conflicts with chapter 278, this section prevails.
219.25In addition, the petition must include either all the utility parcels or all the railroad parcels
219.26in the state in which the petitioner claims an interest and which the petitioner claims have
219.27been partially, unfairly, or unequally assessed, assessed at a valuation greater than their
219.28real or actual value, misclassified, or are exempt.
219.29EFFECTIVE DATE.This section is effective for assessment year 2016 and
219.30thereafter.

219.31    Sec. 24. Minnesota Statutes 2014, section 273.372, subdivision 4, is amended to read:
219.32    Subd. 4. Administrative appeals. (a) Companies that submit the reports under
219.33section 270.82 or 273.371 by the date specified in that section, or by the date specified
220.1by the commissioner in an extension, may appeal administratively to the commissioner
220.2prior to bringing an action in court.
220.3    (b) Companies that must submit reports under section 270.82 must submit file a
220.4written request to for an appeal with the commissioner for a conference within ten 30
220.5days after the notice date of the commissioner's valuation certification or other notice
220.6to the company, or by June 15, whichever is earlier. For purposes of this section, the
220.7term "notice date" means the date of the valuation certification, commissioner's order,
220.8recommendation, or other notice.
220.9    (c) Companies that submit reports under section 273.371 must submit a written
220.10request to the commissioner for a conference within ten days after the date of the
220.11commissioner's valuation certification or notice to the company, or by July 1, whichever
220.12is earlier. The appeal need not be in any particular form but must contain the following
220.13information:
220.14    (1) name and address of the company;
220.15    (2) the date;
220.16    (3) its Minnesota identification number;
220.17    (4) the assessment year or period involved;
220.18    (5) the findings in the valuation that the company disputes;
220.19    (6) a summary statement specifying its reasons for disputing each item; and
220.20    (7) the signature of the company's duly authorized agent or representative.
220.21    (d) When requested in writing and within the time allowed for filing an
220.22administrative appeal, the commissioner may extend the time for filing an appeal for a
220.23period of not more than 15 days from the expiration of the time for filing the appeal.
220.24    (d) (e) The commissioner shall conduct the conference either in person or by
220.25telephone upon the commissioner's entire files and records and such further information as
220.26may be offered. The conference must be held no later than 20 days after the date of the
220.27commissioner's valuation certification or notice to the company, or by the date specified
220.28by the commissioner in an extension request for an appeal. Within 60 30 days after the
220.29conference the commissioner shall make a final determination of the matter and shall
220.30notify the company promptly of the determination. The conference is not a contested
220.31case hearing subject to chapter 14.
220.32    (e) In addition to the opportunity for a conference under paragraph (a), the
220.33commissioner shall also provide the railroad and utility companies the opportunity to
220.34discuss any questions or concerns relating to the values established by the commissioner
220.35through certification or notice in a less formal manner. This does not change or modify
220.36the deadline for requesting a conference under paragraph (a), the deadline in section
221.1271.06 for appealing an order of the commissioner, or the deadline in section 278.01 for
221.2appealing property taxes in court.
221.3EFFECTIVE DATE.This section is effective for assessment year 2016 and
221.4thereafter.

221.5    Sec. 25. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision
221.6to read:
221.7    Subd. 5. Agreement determining valuation. When it appears to be in the best
221.8interest of the state, the commissioner may settle any matter under consideration regarding
221.9an appeal filed under this section. The agreement must be in writing and signed by
221.10the commissioner and the company or the company's authorized representative. The
221.11agreement is final and conclusive, and except upon a showing of fraud, malfeasance,
221.12or misrepresentation of a material fact, the case may not be reopened as to the matters
221.13agreed upon.
221.14EFFECTIVE DATE.This section is effective for assessment year 2016 and
221.15thereafter.

221.16    Sec. 26. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision
221.17to read:
221.18    Subd. 6. Dismissal of administrative appeal. If a taxpayer files an administrative
221.19appeal from an order of the commissioner and also files an appeal to the tax court for
221.20that same order of the commissioner, the administrative appeal is dismissed and the
221.21commissioner is no longer required to make the determination of appeal under subdivision
221.224.
221.23EFFECTIVE DATE.This section is effective beginning with assessment year 2015.

221.24    Sec. 27. Minnesota Statutes 2014, section 274.01, subdivision 1, is amended to read:
221.25    Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town
221.26board of a town, or the council or other governing body of a city, is the local board
221.27of appeal and equalization except (1) in cities whose charters provide for a board of
221.28equalization or (2) in any city or town that has transferred its local board of review power
221.29and duties to the county board as provided in subdivision 3. The county assessor shall
221.30fix a day and time when the board or the local board of equalization shall meet in the
221.31assessment districts of the county. Notwithstanding any law or city charter to the contrary,
221.32a city board of equalization shall be referred to as a local board of appeal and equalization.
222.1On or before February 15 of each year the assessor shall give written notice of the time
222.2to the city or town clerk. Notwithstanding the provisions of any charter to the contrary,
222.3the meetings must be held between April 1 and May 31 each year. The clerk shall give
222.4published and posted notice of the meeting at least ten days before the date of the meeting.
222.5    The board shall meet either at a central location within the county or at the office of
222.6the clerk to review the assessment and classification of property in the town or city. No
222.7changes in valuation or classification which are intended to correct errors in judgment by
222.8the county assessor may be made by the county assessor after the board has adjourned
222.9in those cities or towns that hold a local board of review; however, corrections of errors
222.10that are merely clerical in nature or changes that extend homestead treatment to property
222.11are permitted after adjournment until the tax extension date for that assessment year. The
222.12changes must be fully documented and maintained in the assessor's office and must be
222.13available for review by any person. A copy of the changes made during this period in
222.14those cities or towns that hold a local board of review must be sent to the county board no
222.15later than December 31 of the assessment year.
222.16    (b) The board shall determine whether the taxable property in the town or city has
222.17been properly placed on the list and properly valued by the assessor. If real or personal
222.18property has been omitted, the board shall place it on the list with its market value, and
222.19correct the assessment so that each tract or lot of real property, and each article, parcel,
222.20or class of personal property, is entered on the assessment list at its market value. No
222.21assessment of the property of any person may be raised unless the person has been
222.22duly notified of the intent of the board to do so. On application of any person feeling
222.23aggrieved, the board shall review the assessment or classification, or both, and correct
222.24it as appears just. The board may not make an individual market value adjustment or
222.25classification change that would benefit the property if the owner or other person having
222.26control over the property has refused the assessor access to inspect the property and the
222.27interior of any buildings or structures as provided in section 273.20. A board member
222.28shall not participate in any actions of the board which result in market value adjustments
222.29or classification changes to property owned by the board member, the spouse, parent,
222.30stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew,
222.31or niece of a board member, or property in which a board member has a financial interest.
222.32The relationship may be by blood or marriage.
222.33    (c) A local board may reduce assessments upon petition of the taxpayer but the total
222.34reductions must not reduce the aggregate assessment made by the county assessor by more
222.35than one percent. If the total reductions would lower the aggregate assessments made by
222.36the county assessor by more than one percent, none of the adjustments may be made. The
223.1assessor shall correct any clerical errors or double assessments discovered by the board
223.2without regard to the one percent limitation.
223.3    (d) A local board does not have authority to grant an exemption or to order property
223.4removed from the tax rolls.
223.5    (e) A majority of the members may act at the meeting, and adjourn from day to day
223.6until they finish hearing the cases presented. The assessor shall attend and take part in
223.7the proceedings, but must not vote. The county assessor, or an assistant delegated by the
223.8county assessor shall attend the meetings. The board shall list separately all omitted
223.9property added to the list by the board and all items of property increased or decreased,
223.10with the market value of each item of property, added or changed by the board. The
223.11county assessor shall enter all changes made by the board.
223.12    (f) Except as provided in subdivision 3, if a person fails to appear in person, by
223.13counsel, or by written communication before the board after being duly notified of the
223.14board's intent to raise the assessment of the property, or if a person feeling aggrieved by an
223.15assessment or classification fails to apply for a review of the assessment or classification,
223.16the person may not appear before the county board of appeal and equalization for a review.
223.17This paragraph does not apply if an assessment was made after the local board meeting, as
223.18provided in section 273.01, or if the person can establish not having received notice of
223.19market value at least five days before the local board meeting.
223.20    (g) The local board must complete its work and adjourn within 20 days from the
223.21time of convening stated in the notice of the clerk, unless a longer period is approved by
223.22the commissioner of revenue. No action taken after that date is valid. All complaints
223.23about an assessment or classification made after the meeting of the board must be heard
223.24and determined by the county board of equalization. A nonresident may, at any time,
223.25before the meeting of the board file written objections to an assessment or classification
223.26with the county assessor. The objections must be presented to the board at its meeting by
223.27the county assessor for its consideration.
223.28EFFECTIVE DATE.This section is effective the day following final enactment.

223.29    Sec. 28. Minnesota Statutes 2014, section 274.13, subdivision 1, is amended to read:
223.30    Subdivision 1. Members; meetings; rules for equalizing assessments. The county
223.31commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be
223.32present, the deputy county auditor, or, if there is no deputy, the court administrator of the
223.33district court, shall form a board for the equalization of the assessment of the property
223.34of the county, including the property of all cities whose charters provide for a board of
223.35equalization. This board shall be referred to as the county board of appeal and equalization.
224.1The board shall meet annually, on the date specified in section 274.14, at the office of the
224.2auditor. Each member shall take an oath to fairly and impartially perform duties as a
224.3member. Members shall not participate in any actions of the board which result in market
224.4value adjustments or classification changes to property owned by the board member, the
224.5spouse, parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle,
224.6aunt, nephew, or niece of a board member, or property in which a board member has a
224.7financial interest. The relationship may be by blood or marriage. The board shall examine
224.8and compare the returns of the assessment of property of the towns or districts, and
224.9equalize them so that each tract or lot of real property and each article or class of personal
224.10property is entered on the assessment list at its market value, subject to the following rules:
224.11    (1) The board shall raise the valuation of each tract or lot of real property which
224.12in its opinion is returned below its market value to the sum believed to be its market
224.13value. The board must first give notice of intention to raise the valuation to the person in
224.14whose name it is assessed, if the person is a resident of the county. The notice must fix
224.15a time and place for a hearing.
224.16    (2) The board shall reduce the valuation of each tract or lot which in its opinion is
224.17returned above its market value to the sum believed to be its market value.
224.18    (3) The board shall raise the valuation of each class of personal property which
224.19in its opinion is returned below its market value to the sum believed to be its market
224.20value. It shall raise the aggregate value of the personal property of individuals, firms, or
224.21corporations, when it believes that the aggregate valuation, as returned, is less than the
224.22market value of the taxable personal property possessed by the individuals, firms, or
224.23corporations, to the sum it believes to be the market value. The board must first give notice
224.24to the persons of intention to do so. The notice must set a time and place for a hearing.
224.25    (4) The board shall reduce the valuation of each class of personal property that
224.26is returned above its market value to the sum it believes to be its market value. Upon
224.27complaint of a party aggrieved, the board shall reduce the aggregate valuation of the
224.28individual's personal property, or of any class of personal property for which the individual
224.29is assessed, which in its opinion has been assessed at too large a sum, to the sum it believes
224.30was the market value of the individual's personal property of that class.
224.31    (5) The board must not reduce the aggregate value of all the property of its county, as
224.32submitted to the county board of equalization, with the additions made by the auditor under
224.33this chapter, by more than one percent of its whole valuation. The board may raise the
224.34aggregate valuation of real property, and of each class of personal property, of the county,
224.35or of any town or district of the county, when it believes it is below the market value of the
224.36property, or class of property, to the aggregate amount it believes to be its market value.
225.1    (6) The board shall change the classification of any property which in its opinion
225.2is not properly classified.
225.3    (7) The board does not have the authority to grant an exemption or to order property
225.4removed from the tax rolls.
225.5    (8) The board may not make an individual market value adjustment or classification
225.6change that would benefit property if the owner or other person having control over the
225.7property has refused the assessor access to inspect the property and the interior of any
225.8buildings or structures as provided in section 273.20.
225.9EFFECTIVE DATE.This section is effective for county board of appeal and
225.10equalization meetings in 2016 and thereafter.

225.11    Sec. 29. Minnesota Statutes 2014, section 274.135, subdivision 3, is amended to read:
225.12    Subd. 3. Proof of compliance; transfer of duties. (a) Any county that conducts
225.13county boards of appeal and equalization meetings must provide proof to the commissioner
225.14by December 1, 2009, and each year thereafter, February 1 that it is in compliance with the
225.15requirements of subdivision 2. Beginning in 2009, This notice must also verify that there
225.16was a quorum of voting members at each meeting of the board of appeal and equalization
225.17in the current previous year. A county that does not comply with these requirements is
225.18deemed to have transferred its board of appeal and equalization powers to the special
225.19board of equalization appointed pursuant to section 274.13, subdivision 2, beginning
225.20with the following year's assessment and continuing unless the powers are reinstated
225.21under paragraph (c). A county that does not comply with the requirements of subdivision
225.222 and has not appointed a special board of equalization shall appoint a special board of
225.23equalization before the following year's assessment.
225.24    (b) The county shall notify the taxpayers when the board of appeal and equalization
225.25for a county has been transferred to the special board of equalization under this subdivision
225.26and, prior to the meeting time of the special board of equalization, the county shall make
225.27available to those taxpayers a procedure for a review of the assessments, including, but
225.28not limited to, open book meetings. This alternate review process must take place in
225.29April and May.
225.30    (c) A county board whose powers are transferred to the special board of equalization
225.31under this subdivision may be reinstated by resolution of the county board and upon proof
225.32of compliance with the requirements of subdivision 2. The resolution and proofs must
225.33be provided to the commissioner by December February 1 in order to be effective for
225.34the following current year's assessment.
226.1(d) If a person who was entitled to appeal to the county board of appeal and
226.2equalization or to the county special board of equalization is not able to do so in a
226.3particular year because the county board or special board did not meet the quorum and
226.4training requirements in this section and section 274.13, or because the special board
226.5was not appointed, that person may instead appeal to the commissioner of revenue,
226.6provided that the appeal is received by the commissioner prior to August 1. The appeal
226.7is not subject to either chapter 14 or section 270C.92. The commissioner must issue
226.8an appropriate order to the county assessor in response to each timely appeal, either
226.9upholding or changing the valuation or classification of the property. Prior to October 1 of
226.10each year, the commissioner must charge and bill the county where the property is located
226.11$500 for each tax parcel covered by an order issued under this paragraph in that year.
226.12Amounts received by the commissioner under this paragraph must be deposited in the
226.13state's general fund. If payment of a billed amount is not received by the commissioner
226.14before December 1 of the year when billed, the commissioner must deduct that unpaid
226.15amount from any state aid the commissioner would otherwise pay to the county under
226.16chapter 477A in the next year. Late payments may either be returned to the county
226.17uncashed and undeposited or may be accepted. If a late payment is accepted, the state aid
226.18paid to the county under chapter 477A must be adjusted within 12 months to eliminate any
226.19reduction that occurred because the payment was late. Amounts needed to make these
226.20adjustments are included in the appropriation under section 477A.03, subdivision 2.
226.21EFFECTIVE DATE.This section is effective for county boards of appeal and
226.22equalization meetings held in 2016 and thereafter.

226.23    Sec. 30. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read:
226.24    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the
226.25contrary, on or before September 30, each county and each home rule charter or statutory
226.26city shall certify to the county auditor the proposed property tax levy for taxes payable in
226.27the following year.
226.28    (b) Notwithstanding any law or charter to the contrary, on or before September 15,
226.29each town and each special taxing district shall adopt and certify to the county auditor a
226.30proposed property tax levy for taxes payable in the following year. For towns, the final
226.31certified levy shall also be considered the proposed levy.
226.32    (c) On or before September 30, each school district that has not mutually agreed
226.33with its home county to extend this date shall certify to the county auditor the proposed
226.34property tax levy for taxes payable in the following year. Each school district that has
226.35agreed with its home county to delay the certification of its proposed property tax levy
227.1must certify its proposed property tax levy for the following year no later than October
227.27. The school district shall certify the proposed levy as:
227.3    (1) a specific dollar amount by school district fund, broken down between
227.4voter-approved and non-voter-approved levies and between referendum market value
227.5and tax capacity levies; or
227.6    (2) the maximum levy limitation certified by the commissioner of education
227.7according to section 126C.48, subdivision 1.
227.8    (d) If the board of estimate and taxation or any similar board that establishes
227.9maximum tax levies for taxing jurisdictions within a first class city certifies the maximum
227.10property tax levies for funds under its jurisdiction by charter to the county auditor by the
227.11date specified in paragraph (a), the city shall be deemed to have certified its levies for
227.12those taxing jurisdictions.
227.13    (e) For purposes of this section, "special taxing district" means a special taxing
227.14district as defined in section 275.066. Intermediate school districts that levy a tax
227.15under chapter 124 or 136D, joint powers boards established under sections 123A.44 to
227.16123A.446 , and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are
227.17also special taxing districts for purposes of this section.
227.18(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
227.19tax levy under this subdivision, the taxing authority shall announce the time and place
227.20of its any subsequent regularly scheduled meetings at which the budget and levy will be
227.21discussed and at which the public will be allowed to speak. The time and place of those
227.22meetings must be included in the proceedings or summary of proceedings published in the
227.23official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191.
227.24EFFECTIVE DATE.This section is effective the day following final enactment.

227.25    Sec. 31. Minnesota Statutes 2014, section 275.62, subdivision 2, is amended to read:
227.26    Subd. 2. Local governments required to report. For purposes of this section,
227.27"local governmental unit" means a county, home rule charter or statutory city with a
227.28population greater than 2,500, a town with a population greater than 5,000, or a home rule
227.29charter or statutory city or town that receives a distribution from the taconite municipal aid
227.30account in the levy year.
227.31EFFECTIVE DATE.This section is effective the day following final enactment.

227.32    Sec. 32. Minnesota Statutes 2014, section 278.01, subdivision 1, is amended to read:
228.1    Subdivision 1. Determination of validity. (a) Any person having personal property,
228.2or any estate, right, title, or interest in or lien upon any parcel of land, who claims that
228.3such property has been partially, unfairly, or unequally assessed in comparison with other
228.4property in the (1) city, or (2) county, or (3) in the case of a county containing a city of the
228.5first class, the portion of the county excluding the first class city, or that the parcel has
228.6been assessed at a valuation greater than its real or actual value, or that the tax levied
228.7against the same is illegal, in whole or in part, or has been paid, or that the property is
228.8exempt from the tax so levied, may have the validity of the claim, defense, or objection
228.9determined by the district court of the county in which the tax is levied or by the Tax
228.10Court by serving one copy of a petition for such determination upon the county auditor,
228.11one copy on the county attorney, one copy on the county treasurer, and three copies on the
228.12county assessor. The county assessor shall immediately forward one copy of the petition
228.13to the appropriate governmental authority in a home rule charter or statutory city or town
228.14in which the property is located if that city or town employs its own certified assessor.
228.15A copy of the petition shall also be forwarded by the assessor to the school board of the
228.16school district in which the property is located.
228.17(b) In counties where the office of county treasurer has been combined with the
228.18office of county auditor, the county may elect to require the petitioner to serve the number
228.19of copies as determined by the county. The county assessor shall immediately forward one
228.20copy of the petition to the appropriate governmental authority in a home rule charter or
228.21statutory city or town in which the property is located if that city or town employs its own
228.22certified assessor. A list of petitioned properties, including the name of the petitioner, the
228.23identification number of the property, and the estimated market value, shall be sent on
228.24or before the first day of July by the county auditor/treasurer to the school board of the
228.25school district in which the property is located.
228.26(c) For all counties, the petitioner must file the copies with proof of service, in the
228.27office of the court administrator of the district court on or before April 30 of the year in
228.28which the tax becomes payable. A petition for determination under this section may be
228.29transferred by the district court to the Tax Court. An appeal may also be taken to the Tax
228.30Court under chapter 271 at any time following receipt of the valuation notice that county
228.31assessors are required by section 273.121 to send to persons whose property is to be
228.32included on the assessment roll that year, but prior to May 1 of the year in which the
228.33taxes are payable.
228.34EFFECTIVE DATE.This section is effective the day following final enactment.

228.35    Sec. 33. Minnesota Statutes 2014, section 282.01, subdivision 1a, is amended to read:
229.1    Subd. 1a. Conveyance to public entities. (a) Upon written request from a state
229.2agency or a governmental subdivision of the state, a parcel of unsold tax-forfeited land
229.3must be withheld from sale or lease to others for a maximum of six months. The request
229.4must be submitted to the county auditor. Upon receipt, the county auditor must withhold
229.5the parcel from sale or lease to any other party for six months, and must confirm the
229.6starting date of the six-month withholding period to the requesting agency or subdivision.
229.7If the request is from a governmental subdivision of the state, the governmental
229.8subdivision must pay the maintenance costs incurred by the county during the period the
229.9parcel is withheld. The county board may approve a sale or conveyance to the requesting
229.10party during the withholding period. A conveyance of the property to the requesting
229.11party terminates the withholding period.
229.12A governmental subdivision of the state must not make, and a county auditor must
229.13not act upon, a second request to withhold a parcel from sale or lease within 18 months
229.14of a previous request for that parcel. A county may reject a request made under this
229.15paragraph if the request is made more than 30 days after the county has given notice to the
229.16requesting state agency or governmental subdivision of the state that the county intends to
229.17sell or otherwise dispose of the property.
229.18(b) Nonconservation tax-forfeited lands may be sold by the county board, for
229.19their market value as determined by the county board, to an organized or incorporated
229.20governmental subdivision of the state for any public purpose for which the subdivision is
229.21authorized to acquire property. When the term "market value" is used in this section, it
229.22means an estimate of the full and actual market value of the parcel as determined by the
229.23county board, but in making this determination, the board and the persons employed by or
229.24under contract with the board in order to perform, conduct, or assist in the determination,
229.25are exempt from the licensure requirements of chapter 82B.
229.26(c) Nonconservation tax-forfeited lands may be released from the trust in favor of
229.27the taxing districts on application to sold by the county board by, for their market value as
229.28determined by the county board, to a state agency for an authorized use at not less than
229.29their market value as determined by the county board any public purpose for which the
229.30agency is authorized to acquire property.
229.31(d) Nonconservation tax-forfeited lands may be sold by the county board to an
229.32organized or incorporated governmental subdivision of the state or state agency for less
229.33than their market value if:
229.34(1) the county board determines that a sale at a reduced price is in the public interest
229.35because a reduced price is necessary to provide an incentive to correct the blighted
230.1conditions that make the lands undesirable in the open market, or the reduced price will
230.2lead to the development of affordable housing; and
230.3(2) the governmental subdivision or state agency has documented its specific plans
230.4for correcting the blighted conditions or developing affordable housing, and the specific
230.5law or laws that empower it to acquire real property in furtherance of the plans.
230.6If the sale under this paragraph is to a governmental subdivision of the state, the
230.7commissioner of revenue must convey the property on behalf of the state by quitclaim
230.8deed. If the sale under this paragraph is to a state agency, the property is released from
230.9the trust in favor of the taxing districts and the commissioner of revenue must issue a
230.10conveyance document that releases the property from the trust in favor of the taxing
230.11districts convey the property on behalf of the state by quitclaim deed to the agency.
230.12(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts
230.13may be conveyed by the commissioner of revenue in the name of the state to a
230.14governmental subdivision for an authorized public use, if an application is submitted to the
230.15commissioner which includes a statement of facts as to the use to be made of the tract and
230.16the favorable recommendation of the county board. For the purposes of this paragraph,
230.17"authorized public use" means a use that allows an indefinite segment of the public to
230.18physically use and enjoy the property in numbers appropriate to its size and use, or is for a
230.19public service facility. Authorized public uses as defined in this paragraph are limited to:
230.20(1) a road, or right-of-way for a road;
230.21(2) a park that is both available to, and accessible by, the public that contains
230.22improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;
230.23(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
230.24with a reasonable amount of surrounding land maintained in its natural state;
230.25(4) transit facilities for buses, light rail transit, commuter rail or passenger rail,
230.26including transit ways, park-and-ride lots, transit stations, maintenance and garage
230.27facilities, and other facilities related to a public transit system;
230.28(5) public beaches or boat launches;
230.29(6) public parking;
230.30(7) civic recreation or conference facilities; and
230.31(8) public service facilities such as fire halls, police stations, lift stations, water
230.32towers, sanitation facilities, water treatment facilities, and administrative offices.
230.33No monetary compensation or consideration is required for the conveyance, except as
230.34provided in subdivision 1g, but the conveyance is subject to the conditions provided in
230.35law, including, but not limited to, the reversion provisions of subdivisions 1c and 1d.
231.1(f) The commissioner of revenue shall convey a parcel of nonconservation
231.2tax-forfeited land to a local governmental subdivision of the state by quitclaim deed
231.3on behalf of the state upon the favorable recommendation of the county board if the
231.4governmental subdivision has certified to the board that prior to forfeiture the subdivision
231.5was entitled to the parcel under a written development agreement or instrument, but
231.6the conveyance failed to occur prior to forfeiture. No compensation or consideration is
231.7required for, and no conditions attach to, the conveyance.
231.8(g) The commissioner of revenue shall convey a parcel of nonconservation
231.9tax-forfeited land to the association of a common interest community by quitclaim deed
231.10upon the favorable recommendation of the county board if the association certifies to the
231.11board that prior to forfeiture the association was entitled to the parcel under a written
231.12agreement, but the conveyance failed to occur prior to forfeiture. No compensation or
231.13consideration is required for, and no conditions attach to, the conveyance.
231.14(h) Conservation tax-forfeited land may be sold to a governmental subdivision of
231.15the state for less than its market value for either: (1) creation or preservation of wetlands;
231.16(2) drainage or storage of storm water under a storm water management plan; or (3)
231.17preservation, or restoration and preservation, of the land in its natural state. The deed must
231.18contain a restrictive covenant limiting the use of the land to one of these purposes for
231.1930 years or until the property is reconveyed back to the state in trust. At any time, the
231.20governmental subdivision may reconvey the property to the state in trust for the taxing
231.21districts. The deed of reconveyance is subject to approval by the commissioner of revenue.
231.22No part of a purchase price determined under this paragraph shall be refunded upon a
231.23reconveyance, but the amount paid for a conveyance under this paragraph may be taken
231.24into account by the county board when setting the terms of a future sale of the same
231.25property to the same governmental subdivision under paragraph (b) or (d). If the lands
231.26are unplatted and located outside of an incorporated municipality and the commissioner
231.27of natural resources determines there is a mineral use potential, the sale is subject to the
231.28approval of the commissioner of natural resources.
231.29(i) A park and recreation board in a city of the first class is a governmental
231.30subdivision for the purposes of this section.
231.31(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed
231.32by the commissioner of revenue in the name of the state to a governmental subdivision for
231.33a school forest under section 89.41. An application that includes a statement of facts as
231.34to the use to be made of the tract and the favorable recommendation of the county board
231.35and the commissioner of natural resources must be submitted to the commissioner of
231.36revenue. No monetary compensation or consideration is required for the conveyance, but
232.1the conveyance is subject to the conditional use and reversion provisions of subdivisions
232.21c and 1d, paragraph (e). At any time, the governmental subdivision may reconvey the
232.3property back to the state in trust for the taxing districts. The deed of reconveyance is
232.4subject to approval by the commissioner of revenue.
232.5EFFECTIVE DATE.This section is effective the day following final enactment.

232.6    Sec. 34. Minnesota Statutes 2014, section 282.01, subdivision 1d, is amended to read:
232.7    Subd. 1d. Reverter for failure to use; conveyance to state. (a) After three years
232.8from the date of any conveyance of tax-forfeited land to a governmental subdivision for
232.9an authorized public use as provided in this section, regardless of when the deed for the
232.10authorized public use was executed, if the governmental subdivision has failed to put the
232.11land to that use, or abandons that use, the governing body of the subdivision must: (1)
232.12with the approval of the county board, purchase the property for an authorized public
232.13purpose at the present market value as determined by the county board, or (2) authorize
232.14the proper officers to convey the land, or the part of the land not required for an authorized
232.15public use, to the state of Minnesota in trust for the taxing districts. If the governing body
232.16purchases the property under clause (1), the commissioner of revenue shall, upon proper
232.17application submitted by the county auditor and upon the reconveyance of the land subject
232.18to the conditional use deed to the state, convey the property on behalf of the state by
232.19quitclaim deed to the subdivision free of a use restriction and the possibility of reversion
232.20or defeasement. If the governing body decides to reconvey the property to the state under
232.21this clause, the officers shall execute a deed of conveyance immediately. The conveyance
232.22is subject to the approval of the commissioner and its form must be approved by the
232.23attorney general. For 15 years from the date of the conveyance, there is no failure to put
232.24the land to the authorized public use and no abandonment of that use if a formal plan of
232.25the governmental subdivision, including, but not limited to, a comprehensive plan or land
232.26use plan, shows an intended future use of the land for the authorized public use.
232.27(b) Property held by a governmental subdivision of the state under a conditional use
232.28deed executed under this section by the commissioner of revenue on or after January 1,
232.292007, may be acquired by that governmental subdivision after 15 years from the date
232.30of the conveyance if the commissioner determines upon written application from the
232.31subdivision that the subdivision has in fact put the property to the authorized public use for
232.32which it was conveyed, and the subdivision has made a finding that it has no current plans
232.33to change the use of the lands. Prior to conveying the property, the commissioner shall
232.34inquire whether the county board where the land is located objects to a conveyance of the
232.35property to the subdivision without conditions and without further act by or obligation
233.1of the subdivision. If the county does not object within 60 days, and the commissioner
233.2makes a favorable determination, the commissioner shall issue a quitclaim deed on behalf
233.3of the state unconditionally conveying the property to the governmental subdivision. For
233.4purposes of this paragraph, demonstration of an intended future use for the authorized
233.5public use in a formal plan of the governmental subdivision does not constitute use for
233.6that authorized public use.
233.7(c) Property held by a governmental subdivision of the state under a conditional use
233.8deed executed under this section by the commissioner of revenue before January 1, 2007,
233.9is released from the use restriction and possibility of reversion on January 1, 2022, if the
233.10county board records a resolution describing the land and citing this paragraph. The
233.11county board may authorize the county treasurer to deduct the amount of the recording
233.12fees from future settlements of property taxes to the subdivision.
233.13(d) Except for tax-forfeited land conveyed to establish a school forest under section
233.1489.41 , property conveyed under a conditional use deed executed under this section by
233.15the commissioner of revenue, regardless of when the deed for the authorized public use
233.16was executed, is released from the use restriction and reverter, and any use restriction or
233.17reverter for which no declaration of reversion has been recorded with the county recorder
233.18or registrar of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30
233.19years from the date the deed was acknowledged; or (3) final resolution of an appeal to
233.20district court under subdivision 1e, if a lis pendens related to the appeal is recorded in the
233.21office of the county recorder or registrar of titles, as appropriate, prior to January 1, 2015.
233.22(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a
233.23school forest under section 89.41 is subject to a perpetual conditional use deed and reverter.
233.24The property reverts to the state in trust for the taxing districts by operation of law if the
233.25commissioner of natural resources determines and reports to the commissioner of revenue
233.26under section 89.41, subdivision 3, that the governmental subdivision has failed to use the
233.27land for school forest purposes for three consecutive years. The commissioner of revenue
233.28shall record a declaration of reversion for land that has reverted under this paragraph.
233.29EFFECTIVE DATE.This section is effective the day following final enactment.

233.30    Sec. 35. Minnesota Statutes 2014, section 477A.013, is amended by adding a
233.31subdivision to read:
233.32    Subd. 14. Communication by electronic mail. Prior to receiving aid pursuant to
233.33this section, a city must register an official electronic mail address with the commissioner,
233.34which the commissioner may use as an exclusive means to communicate with the city.
234.1EFFECTIVE DATE.This section is effective for aids payable in 2016 and thereafter.

234.2    Sec. 36. Minnesota Statutes 2014, section 477A.19, is amended by adding a
234.3subdivision to read:
234.4    Subd. 3a. Certification. On or before June 1 of each year, the commissioner of
234.5natural resources shall certify to the commissioner of revenue the number of watercraft
234.6launches and the number of watercraft trailer parking spaces in each county.
234.7EFFECTIVE DATE.This section is effective for transition aid payable in 2016
234.8and thereafter.

234.9    Sec. 37. Minnesota Statutes 2014, section 477A.19, is amended by adding a
234.10subdivision to read:
234.11    Subd. 3b. Certification. On or before June 1 of each year, the commissioner of
234.12natural resources shall certify to the commissioner of revenue the counties that complied
234.13with the requirements of subdivision 3 the prior year and are eligible to receive aid
234.14under this section.
234.15EFFECTIVE DATE.This section is effective for transition aid payable in 2016
234.16and thereafter.

234.17    Sec. 38. Minnesota Statutes 2014, section 559.202, subdivision 2, is amended to read:
234.18    Subd. 2. Exception. This section does not apply to sales made under chapter 282 or
234.19if the purchaser is represented throughout the transaction by either:
234.20(1) a person licensed to practice law in this state; or
234.21(2) a person licensed as a real estate broker or salesperson under chapter 82,
234.22provided that the representation does not create a dual agency, as that term is defined
234.23in section 82.55, subdivision 6.
234.24EFFECTIVE DATE.This section is effective for sales of tax-forfeited land
234.25occurring after the day following final enactment.

234.26    Sec. 39. Laws 2014, chapter 308, article 1, section 14, subdivision 2, is amended to read:
234.27    Subd. 2. Payment of supplemental credit. (a) The commissioner must pay
234.28supplemental credit amounts to each qualifying taxpayer by October 15, 2014.
234.29(b) If the commissioner cannot locate the qualifying taxpayer by October 15, 2016,
234.30or if a qualifying taxpayer to whom a warrant was issued does not cash that warrant within
235.1two years from the date the warrant was issued, the right to the credit shall lapse and the
235.2warrant shall be deposited in the general fund.
235.3EFFECTIVE DATE.This section is effective the day following final enactment.

235.4    Sec. 40. REPEALER.
235.5(a) Minnesota Statutes 2014, section 290C.02, subdivisions 5 and 9, are repealed.
235.6(b) Minnesota Statutes 2014, sections 273.111, subdivision 9a; and 281.22, are
235.7repealed.
235.8EFFECTIVE DATE.This section is effective the day following final enactment.

235.9ARTICLE 16
235.10DEPARTMENT POLICY AND TECHNICAL PROVISIONS - MISCELLANEOUS

235.11    Section 1. Minnesota Statutes 2014, section 270.82, subdivision 1, is amended to read:
235.12    Subdivision 1. Annual report required. Every railroad company doing business
235.13in Minnesota shall annually file with the commissioner on or before March 31 a report
235.14under oath setting forth the information prescribed by the commissioner to enable the
235.15commissioner to make the valuation and equalization required by sections 270.80 to
235.16270.87 . The commissioner shall prescribe the content, format, and manner of the report
235.17pursuant to section 270C.30, except that a "law administered by the commissioner"
235.18includes the property tax laws. If a report is made by electronic means, the taxpayer's
235.19signature is defined pursuant to section 270C.304, except that a "law administered by the
235.20commissioner" includes the property tax laws.
235.21EFFECTIVE DATE.This section is effective the day following final enactment.

235.22    Sec. 2. Minnesota Statutes 2014, section 270A.03, subdivision 5, is amended to read:
235.23    Subd. 5. Debt. (a) "Debt" means a legal obligation of a natural person to pay a fixed
235.24and certain amount of money, which equals or exceeds $25 and which is due and payable
235.25to a claimant agency. The term includes criminal fines imposed under section 609.10 or
235.26609.125 , fines imposed for petty misdemeanors as defined in section 609.02, subdivision
235.274a
, and restitution. A debt may arise under a contractual or statutory obligation, a court
235.28order, or other legal obligation, but need not have been reduced to judgment.
235.29    A debt includes any legal obligation of a current recipient of assistance which is
235.30based on overpayment of an assistance grant where that payment is based on a client
235.31waiver or an administrative or judicial finding of an intentional program violation;
235.32or where the debt is owed to a program wherein the debtor is not a client at the time
236.1notification is provided to initiate recovery under this chapter and the debtor is not a
236.2current recipient of food support, transitional child care, or transitional medical assistance.
236.3    (b) A debt does not include any legal obligation to pay a claimant agency for medical
236.4care, including hospitalization if the income of the debtor at the time when the medical
236.5care was rendered does not exceed the following amount:
236.6    (1) for an unmarried debtor, an income of $8,800 $12,360 or less;
236.7    (2) for a debtor with one dependent, an income of $11,270 $15,830 or less;
236.8    (3) for a debtor with two dependents, an income of $13,330 $18,730 or less;
236.9    (4) for a debtor with three dependents, an income of $15,120 $21,240 or less;
236.10    (5) for a debtor with four dependents, an income of $15,950 $22,410 or less; and
236.11    (6) for a debtor with five or more dependents, an income of $16,630 $23,360 or less.
236.12For purposes of this paragraph, "debtor" means the individual whose income,
236.13together with the income of the individual's spouse if domiciled in the same household,
236.14brings the individual within the income provisions of this paragraph. For purposes of this
236.15paragraph, a spouse domiciled in the same household shall be considered a dependent.
236.16    (c) The commissioner shall adjust the income amounts in paragraph (b) by the
236.17percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue
236.18Code, except that in section 1(f)(3)(B) the word "1999 2013" shall be substituted for
236.19the word "1992." For 2001 2015, the commissioner shall then determine the percent
236.20change from the 12 months ending on August 31, 1999 2013, to the 12 months ending on
236.21August 31, 2000 2014, and in each subsequent year, from the 12 months ending on August
236.2231, 1999 2013, to the 12 months ending on August 31 of the year preceding the taxable
236.23year. The determination of the commissioner pursuant to this subdivision shall not be
236.24considered a "rule" and shall not be subject to the Administrative Procedure Act contained
236.25in chapter 14. The income amount as adjusted must be rounded to the nearest $10 amount.
236.26If the amount ends in $5, the amount is rounded up to the nearest $10 amount.
236.27    (d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of
236.28the dollar amount of the premium authorized under section 256L.15, subdivision 1a.
236.29EFFECTIVE DATE.The section is effective retroactively for debts incurred after
236.30December 31, 2013.

236.31    Sec. 3. Minnesota Statutes 2014, section 270B.14, subdivision 1, is amended to read:
236.32    Subdivision 1. Disclosure to commissioner of human services. (a) On the request
236.33of the commissioner of human services, the commissioner shall disclose return information
236.34regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to
236.35the extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
237.1    (b) Data that may be disclosed are limited to data relating to the identity,
237.2whereabouts, employment, income, and property of a person owing or alleged to be owing
237.3an obligation of child support.
237.4    (c) The commissioner of human services may request data only for the purposes of
237.5carrying out the child support enforcement program and to assist in the location of parents
237.6who have, or appear to have, deserted their children. Data received may be used only
237.7as set forth in section 256.978.
237.8    (d) The commissioner shall provide the records and information necessary to
237.9administer the supplemental housing allowance to the commissioner of human services.
237.10    (e) At the request of the commissioner of human services, the commissioner of
237.11revenue shall electronically match the Social Security numbers and names of participants
237.12in the telephone assistance plan operated under sections 237.69 to 237.71, with those of
237.13property tax refund filers, and determine whether each participant's household income is
237.14within the eligibility standards for the telephone assistance plan.
237.15    (f) The commissioner may provide records and information collected under sections
237.16295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid
237.17Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law
237.18102-234. Upon the written agreement by the United States Department of Health and
237.19Human Services to maintain the confidentiality of the data, the commissioner may provide
237.20records and information collected under sections 295.50 to 295.59 to the Centers for
237.21Medicare and Medicaid Services section of the United States Department of Health and
237.22Human Services for purposes of meeting federal reporting requirements.
237.23    (g) The commissioner may provide records and information to the commissioner of
237.24human services as necessary to administer the early refund of refundable tax credits.
237.25    (h) The commissioner may disclose information to the commissioner of human
237.26services as necessary to verify income for welfare income verification for eligibility and
237.27premium payment under the MinnesotaCare program, under section 256L.05, subdivision
237.282
, as well as the medical assistance program under section 256B.
237.29    (i) The commissioner may disclose information to the commissioner of human
237.30services necessary to verify whether applicants or recipients for the Minnesota family
237.31investment program, general assistance, food support, Minnesota supplemental aid
237.32program, and child care assistance have claimed refundable tax credits under chapter 290
237.33and the property tax refund under chapter 290A, and the amounts of the credits.
237.34    (j) The commissioner may disclose information to the commissioner of human
237.35services necessary to verify income for purposes of calculating parental contribution
237.36amounts under section 252.27, subdivision 2a.
238.1EFFECTIVE DATE.This section is effective the day following final enactment.

238.2    Sec. 4. Minnesota Statutes 2014, section 270C.30, is amended to read:
238.3270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING.
238.4Except as otherwise provided by law, the commissioner shall prescribe the content
238.5and, format, and manner of all returns and other forms required to be filed under a law
238.6administered by the commissioner, and may furnish them subject to charge on application.
238.7EFFECTIVE DATE.This section is effective the day following final enactment.

238.8    Sec. 5. Minnesota Statutes 2014, section 270C.33, subdivision 5, is amended to read:
238.9    Subd. 5. Prohibition against collection during appeal period of an order. No
238.10collection action can be taken on an order of assessment, or any other order imposing a
238.11liability, including the filing of liens under section 270C.63, and no late payment penalties
238.12may be imposed when a return has been filed for the tax type and period upon which the
238.13order is based, during the appeal period of an order. The appeal period of an order ends:
238.14(1) 60 days after the order has been mailed to the taxpayer notice date designated by the
238.15commissioner on the order; (2) if an administrative appeal is filed under section 270C.35,
238.1660 days after the notice date designated by the commissioner on the written determination
238.17of the administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when
238.18the decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the
238.19appeal is based upon a constitutional challenge to the tax, 60 days after final determination
238.20of the appeal. This subdivision does not apply to a jeopardy assessment under section
238.21270C.36 , or a jeopardy collection under section 270C.36.
238.22EFFECTIVE DATE.This section is effective for orders dated after September
238.2330, 2015.

238.24    Sec. 6. Minnesota Statutes 2014, section 270C.33, subdivision 8, is amended to read:
238.25    Subd. 8. Sufficiency of notice. An assessment of tax made by the commissioner,
238.26sent postage prepaid by United States mail to the taxpayer at the taxpayer's last known
238.27address, or sent by electronic mail to the taxpayer's last known electronic mailing address
238.28as provided for in section 325L.08, is sufficient even if the taxpayer is deceased or is
238.29under a legal disability, or, in the case of a corporation, has terminated its existence, unless
238.30the commissioner has been provided with a new address by a party authorized to receive
238.31notices of assessment. Notice of an assessment is sufficient if it is sent on or before the
238.32notice date designated by the commissioner on the assessment.
239.1EFFECTIVE DATE.This section is effective for assessments dated after
239.2September 30, 2015.

239.3    Sec. 7. Minnesota Statutes 2014, section 270C.34, subdivision 2, is amended to read:
239.4    Subd. 2. Procedure. (a) A request for abatement of penalty under subdivision 1 or
239.5section 289A.60, subdivision 4, or a request for abatement of interest or additional tax
239.6charge, must be filed with the commissioner within 60 days of the notice date of the notice
239.7was mailed to the taxpayer's last known address, stating that a penalty has been imposed
239.8or additional tax charge. For purposes of this section, the term "notice date" means the
239.9notice date designated by the commissioner on the order or other notice that a penalty or
239.10additional tax charge has been imposed.
239.11(b) If the commissioner issues an order denying a request for abatement of penalty,
239.12interest, or additional tax charge, the taxpayer may file an administrative appeal as
239.13provided in section 270C.35 or appeal to Tax Court as provided in section 271.06.
239.14(c) If the commissioner does not issue an order on the abatement request within
239.1560 days from the date the request is received, the taxpayer may appeal to Tax Court as
239.16provided in section 271.06.
239.17EFFECTIVE DATE.This section is effective for orders and notices dated after
239.18September 30, 2015.

239.19    Sec. 8. Minnesota Statutes 2014, section 270C.347, subdivision 1, is amended to read:
239.20    Subdivision 1. Checks and warrants, authority to reissue. Notwithstanding any
239.21other provision of law, the commissioner may, based on a showing of reasonable cause,
239.22reissue an uncashed rebate, supplemental agricultural credit, or property tax refund warrant
239.23or check that has lapsed under any provision of law relating to rebates or under section
239.24290A.18, subdivision 2 . The authority to reissue warrants or checks under this subdivision
239.25is limited to five years after the date of issuance of the original warrant or check.
239.26EFFECTIVE DATE.This section is effective the day following final enactment.

239.27    Sec. 9. Minnesota Statutes 2014, section 270C.35, subdivision 3, is amended to read:
239.28    Subd. 3. Notice date. For purposes of this section, the term "notice date" means the
239.29date of designated by the commissioner on the order adjusting the tax or order denying a
239.30request for abatement, or, in the case of a denied refund, the notice date of designated by
239.31the commissioner on the notice of denial.
240.1EFFECTIVE DATE.This section is effective for orders and notices dated after
240.2September 30, 2015.

240.3    Sec. 10. Minnesota Statutes 2014, section 270C.35, is amended by adding a
240.4subdivision to read:
240.5    Subd. 11. Dismissal of administrative appeal. If a taxpayer files an administrative
240.6appeal for an order of the commissioner and also files an appeal to the Tax Court for
240.7that same order of the commissioner, the administrative appeal is dismissed and the
240.8commissioner is no longer required to make a determination of appeal under subdivision 6.
240.9EFFECTIVE DATE.This section is effective for all administrative appeals filed
240.10after June 30, 2015.

240.11    Sec. 11. Minnesota Statutes 2014, section 270C.38, subdivision 1, is amended to read:
240.12    Subdivision 1. Sufficient notice. (a) If no method of notification of a written
240.13determination or action of the commissioner is otherwise specifically provided for by
240.14law, notice of the determination or action sent postage prepaid by United States mail to
240.15the taxpayer or other person affected by the determination or action at the taxpayer's
240.16or person's last known address, is sufficient. If the taxpayer or person being notified is
240.17deceased or is under a legal disability, or, in the case of a corporation being notified that
240.18has terminated its existence, notice to the last known address of the taxpayer, person, or
240.19corporation is sufficient, unless the department has been provided with a new address by a
240.20party authorized to receive notices from the commissioner.
240.21(b) If a taxpayer or other person agrees to accept notification by electronic means,
240.22notice of a determination or action of the commissioner sent by electronic mail to the
240.23taxpayer's or person's last known electronic mailing address as provided for in section
240.24325L.08 is sufficient.
240.25(c) Notice of a determination or action of the commissioner is sufficient if it is sent
240.26on or before the notice date designated by the commissioner on the notice.
240.27EFFECTIVE DATE.This section is effective for notices dated after September
240.2830, 2015.

240.29    Sec. 12. Minnesota Statutes 2014, section 270C.445, is amended by adding a
240.30subdivision to read:
240.31    Subd. 9. Enforcement; limitations. (a) Notwithstanding any other law, the
240.32imposition of a penalty or any other action against a tax return preparer authorized by
241.1subdivision 6 with respect to a return may be taken by the commissioner within the period
241.2provided by section 289A.38 to assess tax on that return.
241.3(b) Imposition of a penalty or other action against a tax return preparer authorized
241.4by subdivision 6 other than with respect to a return must be taken by the commissioner
241.5within five years of the violation of statute.
241.6EFFECTIVE DATE.This section is effective for tax preparation services provided
241.7after the day following final enactment.

241.8    Sec. 13. Minnesota Statutes 2014, section 270C.446, subdivision 5, is amended to read:
241.9    Subd. 5. Removal from list. The commissioner shall remove the name of a tax
241.10preparer from the list of tax preparers published under this section:
241.11(1) when the commissioner determines that the name was included on the list in error;
241.12(2) within 90 days three years after the preparer has demonstrated to the commissioner
241.13that the preparer fully paid all fines or penalties imposed, served any suspension, satisfied
241.14any sentence imposed, successfully completed any probationary period imposed, and
241.15successfully completed any remedial actions required by the commissioner, the State
241.16Board of Accountancy, or the Lawyers Board of Professional Responsibility; or
241.17(3) when the commissioner has been notified that the tax preparer is deceased.
241.18EFFECTIVE DATE.This section is effective the day following final enactment.

241.19    Sec. 14. Minnesota Statutes 2014, section 270C.72, subdivision 4, is amended to read:
241.20    Subd. 4. Licensing authority; duties. All licensing authorities must require
241.21the applicant to provide the applicant's Social Security number or individual taxpayer
241.22identification number and Minnesota business identification number, as applicable, on
241.23all license applications. Upon request of the commissioner, the licensing authority
241.24must provide the commissioner with a list of all applicants, including the name,
241.25address, business name and address, and Social Security number, or individual taxpayer
241.26identification number and business identification number, as applicable, of each applicant.
241.27The commissioner may request from a licensing authority a list of the applicants no more
241.28than once each calendar year.
241.29EFFECTIVE DATE.This section is effective the day following final enactment.

241.30    Sec. 15. Minnesota Statutes 2014, section 271.06, subdivision 2, is amended to read:
241.31    Subd. 2. Time; notice; intervention. Except as otherwise provided by law, within
241.3260 days after the notice of the making and filing date of an order of the commissioner of
242.1revenue, the appellant, or the appellant's attorney, shall serve a notice of appeal upon
242.2the commissioner and file the original, with proof of such service, with the Tax Court
242.3administrator or with the court administrator of district court acting as court administrator
242.4of the Tax Court; provided, that the Tax Court, for cause shown, may by written order
242.5extend the time for appealing for an additional period not exceeding 30 days. For purposes
242.6of this section, the term "notice date" means the notice date designated by the commissioner
242.7on the order. The notice of appeal shall be in the form prescribed by the Tax Court. Within
242.8five days after receipt, the commissioner shall transmit a copy of the notice of appeal to
242.9the attorney general. The attorney general shall represent the commissioner, if requested,
242.10upon all such appeals except in cases where the attorney general has appealed in behalf of
242.11the state, or in other cases where the attorney general deems it against the interests of the
242.12state to represent the commissioner, in which event the attorney general may intervene or
242.13be substituted as an appellant in behalf of the state at any stage of the proceedings.
242.14Upon a final determination of any other matter over which the court is granted
242.15jurisdiction under section 271.01, subdivision 5, the taxpayer or the taxpayer's attorney
242.16shall file a petition or notice of appeal as provided by law with the court administrator of
242.17district court, acting in the capacity of court administrator of the Tax Court, with proof of
242.18service of the petition or notice of appeal as required by law and within the time required
242.19by law. As used in this subdivision, "final determination" includes a notice of assessment
242.20and equalization for the year in question received from the local assessor, an order of the
242.21local board of equalization, or an order of a county board of equalization.
242.22The Tax Court shall prescribe a filing system so that the notice of appeal or petition
242.23filed with the district court administrator acting as court administrator of the Tax Court is
242.24forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning
242.25property valuation for which the assessor, a local board of equalization, a county board of
242.26equalization or the commissioner of revenue has issued an order, the officer issuing the
242.27order shall be notified of the filing of the appeal. The notice of appeal or petition shall be
242.28in the form prescribed by the Tax Court.
242.29EFFECTIVE DATE.This section is effective for orders dated after September
242.3030, 2015.

242.31    Sec. 16. Minnesota Statutes 2014, section 271.06, subdivision 7, is amended to read:
242.32    Subd. 7. Rules. Except as provided in section 278.05, subdivision 6, the Rules
242.33of Evidence and Civil Procedure for the district court of Minnesota shall govern the
242.34procedures in the Tax Court, where practicable. The Rules of Civil Procedure do not apply
242.35to alter the 60-day period of time to file a notice of appeal provided in subdivision 2. The
243.1Tax Court may adopt rules under chapter 14. The rules in effect on January 1, 1989,
243.2apply until superseded.
243.3EFFECTIVE DATE.This section is effective for orders dated after September
243.430, 2015.

243.5    Sec. 17. Minnesota Statutes 2014, section 272.02, subdivision 10, is amended to read:
243.6    Subd. 10. Personal property used for pollution control. Personal property used
243.7primarily for the abatement and control of air, water, or land pollution is exempt to the
243.8extent that it is so used, and real property is exempt if it is used primarily for abatement
243.9and control of air, water, or land pollution as part of an agricultural operation, as a part
243.10of a centralized treatment and recovery facility operating under a permit issued by the
243.11Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota
243.12Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater
243.13treatment facility and for the treatment, recovery, and stabilization of metals, oils,
243.14chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as
243.15part of an electric generation system. For purposes of this subdivision, personal property
243.16includes ponderous machinery and equipment used in a business or production activity
243.17that at common law is considered real property.
243.18Any taxpayer requesting exemption of all or a portion of any real property or any
243.19equipment or device, or part thereof, operated primarily for the control or abatement of air,
243.20water, or land pollution shall file an application with the commissioner of revenue. The
243.21commissioner shall develop an electronic means to notify interested parties when electric
243.22power generation facilities have filed an application. The commissioner shall prescribe
243.23the content, format, and manner of the application pursuant to section 270C.30, except
243.24that a "law administered by the commissioner" includes the property tax laws, and if an
243.25application is made by electronic means, the taxpayer's signature is defined pursuant to
243.26section 270C.304, except that a "law administered by the commissioner" includes the
243.27property tax laws. The Minnesota Pollution Control Agency shall upon request of the
243.28commissioner furnish information and advice to the commissioner.
243.29The information and advice furnished by the Minnesota Pollution Control
243.30Agency must include statements as to whether the equipment, device, or real property
243.31meets a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution
243.32Control Agency, and whether the equipment, device, or real property is installed or
243.33operated in accordance with it. On determining that property qualifies for exemption,
243.34the commissioner shall issue an order exempting the property from taxation. The
243.35commissioner shall develop an electronic means to notify interested parties when
244.1the commissioner has issued an order exempting property from taxation under this
244.2subdivision. The equipment, device, or real property shall continue to be exempt from
244.3taxation as long as the order issued by the commissioner remains in effect.
244.4EFFECTIVE DATE.This section is effective the day following final enactment.

244.5    Sec. 18. Minnesota Statutes 2014, section 272.0211, subdivision 1, is amended to read:
244.6    Subdivision 1. Efficiency determination and certification. An owner or operator
244.7of a new or existing electric power generation facility, excluding wind energy conversion
244.8systems, may apply to the commissioner of revenue for a market value exclusion on the
244.9property as provided for in this section. This exclusion shall apply only to the market
244.10value of the equipment of the facility, and shall not apply to the structures and the land
244.11upon which the facility is located. The commissioner of revenue shall prescribe the forms
244.12content, format, manner, and procedures for this application pursuant to section 270C.30,
244.13except that a "law administered by the commissioner" includes the property tax laws. If
244.14an application is made by electronic means, the taxpayer's signature is defined pursuant
244.15to section 270C.304, except that a "law administered by the commissioner" includes the
244.16property tax laws. Upon receiving the application, the commissioner of revenue shall: (1)
244.17request the commissioner of commerce to make a determination of the efficiency of the
244.18applicant's electric power generation facility; and (2) shall develop an electronic means to
244.19notify interested parties when electric power generation facilities have filed an application.
244.20The commissioner of commerce shall calculate efficiency as the ratio of useful energy
244.21outputs to energy inputs, expressed as a percentage, based on the performance of the
244.22facility's equipment during normal full load operation. The commissioner must include in
244.23this formula the energy used in any on-site preparation of materials necessary to convert
244.24the materials into the fuel used to generate electricity, such as a process to gasify petroleum
244.25coke. The commissioner shall use the Higher Heating Value (HHV) for all substances in
244.26the commissioner's efficiency calculations, except for wood for fuel in a biomass-eligible
244.27project under section 216B.2424; for these instances, the commissioner shall adjust the
244.28heating value to allow for energy consumed for evaporation of the moisture in the wood.
244.29The applicant shall provide the commissioner of commerce with whatever information the
244.30commissioner deems necessary to make the determination. Within 30 days of the receipt
244.31of the necessary information, the commissioner of commerce shall certify the findings of
244.32the efficiency determination to the commissioner of revenue and to the applicant. The
244.33commissioner of commerce shall determine the efficiency of the facility and certify the
244.34findings of that determination to the commissioner of revenue every two years thereafter
244.35from the date of the original certification.
245.1EFFECTIVE DATE.This section is effective the day following final enactment.

245.2    Sec. 19. Minnesota Statutes 2014, section 272.025, subdivision 1, is amended to read:
245.3    Subdivision 1. Statement of exemption. (a) Except in the case of property owned
245.4by the state of Minnesota or any political subdivision thereof, and property exempt from
245.5taxation under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at
245.6the times provided in subdivision 3, a taxpayer claiming an exemption from taxation
245.7on property described in section 272.02, subdivisions 2 to 33, must file a statement of
245.8exemption with the assessor of the assessment district in which the property is located.
245.9(b) A taxpayer claiming an exemption from taxation on property described in section
245.10272.02, subdivision 10 , must file a statement of exemption with the commissioner of
245.11revenue, on or before February 15 of each year for which the taxpayer claims an exemption.
245.12(c) In case of sickness, absence or other disability or for good cause, the assessor
245.13or the commissioner may extend the time for filing the statement of exemption for a
245.14period not to exceed 60 days.
245.15(d) The commissioner of revenue shall prescribe the form and contents content,
245.16format, and manner of the statement of exemption pursuant to section 270C.30, except
245.17that a "law administered by the commissioner" includes the property tax laws.
245.18(e) If a statement is made by electronic means, the taxpayer's signature is defined
245.19pursuant to section 270C.304, except that a "law administered by the commissioner"
245.20includes the property tax laws.
245.21EFFECTIVE DATE.This section is effective the day following final enactment.

245.22    Sec. 20. Minnesota Statutes 2014, section 272.029, subdivision 4, is amended to read:
245.23    Subd. 4. Reports. (a) An owner of a wind energy conversion system subject to tax
245.24under subdivision 3 shall file a report with the commissioner of revenue annually on or
245.25before February 1 detailing the amount of electricity in kilowatt-hours that was produced
245.26by the wind energy conversion system for the previous calendar year. The commissioner
245.27shall prescribe the form content, format, and manner of the report pursuant to section
245.28270C.30, except that a "law administered by the commissioner" includes the property tax
245.29laws. The report must contain the information required by the commissioner to determine
245.30the tax due to each county under this section for the current year. If an owner of a wind
245.31energy conversion system subject to taxation under this section fails to file the report
245.32by the due date, the commissioner of revenue shall determine the tax based upon the
245.33nameplate capacity of the system multiplied by a capacity factor of 60 percent.
246.1(b) If a report is made by electronic means, the taxpayer's signature is defined
246.2pursuant to section 270C.304, except that a "law administered by the commissioner"
246.3includes the property tax laws.
246.4(b) (c) On or before February 28, the commissioner of revenue shall notify the owner
246.5of the wind energy conversion systems of the tax due to each county for the current year
246.6and shall certify to the county auditor of each county in which the systems are located the
246.7tax due from each owner for the current year.
246.8EFFECTIVE DATE.This section is effective the day following final enactment.

246.9    Sec. 21. Minnesota Statutes 2014, section 272.0295, subdivision 4, is amended to read:
246.10    Subd. 4. Reports. An owner of a solar energy generating system subject to tax
246.11under this section shall file a report with the commissioner of revenue annually on or
246.12before January 15 detailing the amount of electricity in megawatt-hours that was produced
246.13by the system in the previous calendar year. The commissioner shall prescribe the form
246.14content, format, and manner of the report pursuant to section 270C.30. The report must
246.15contain the information required by the commissioner to determine the tax due to each
246.16county under this section for the current year. If an owner of a solar energy generating
246.17system subject to taxation under this section fails to file the report by the due date, the
246.18commissioner of revenue shall determine the tax based upon the nameplate capacity of
246.19the system multiplied by a capacity factor of 30 percent.
246.20EFFECTIVE DATE.This section is effective the day following final enactment.

246.21    Sec. 22. Minnesota Statutes 2014, section 272.115, subdivision 2, is amended to read:
246.22    Subd. 2. Form; information required. The certificate of value shall require
246.23such facts and information as may be determined by the commissioner to be reasonably
246.24necessary in the administration of the state education aid formulas. The form
246.25commissioner shall prescribe the content, format, and manner of the certificate of value
246.26shall be prescribed by the Department of Revenue which shall provide an adequate
246.27supply of forms to each county auditor pursuant to section 270C.30, except that a "law
246.28administered by the commissioner" includes the property tax laws.
246.29EFFECTIVE DATE.This section is effective the day following final enactment.

246.30    Sec. 23. Minnesota Statutes 2014, section 273.124, subdivision 13, is amended to read:
247.1    Subd. 13. Homestead application. (a) A person who meets the homestead
247.2requirements under subdivision 1 must file a homestead application with the county
247.3assessor to initially obtain homestead classification.
247.4    (b) The format and contents of a uniform homestead application shall be prescribed
247.5by the commissioner of revenue. The commissioner shall prescribe the content, format,
247.6and manner of the homestead application required to be filed under this chapter pursuant
247.7to section 270C.30. The application must clearly inform the taxpayer that this application
247.8must be signed by all owners who occupy the property or by the qualifying relative and
247.9returned to the county assessor in order for the property to receive homestead treatment.
247.10    (c) Every property owner applying for homestead classification must furnish to the
247.11county assessor the Social Security number of each occupant who is listed as an owner
247.12of the property on the deed of record, the name and address of each owner who does not
247.13occupy the property, and the name and Social Security number of each owner's spouse who
247.14occupies the property. The application must be signed by each owner who occupies the
247.15property and by each owner's spouse who occupies the property, or, in the case of property
247.16that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
247.17    If a property owner occupies a homestead, the property owner's spouse may not
247.18claim another property as a homestead unless the property owner and the property owner's
247.19spouse file with the assessor an affidavit or other proof required by the assessor stating that
247.20the property qualifies as a homestead under subdivision 1, paragraph (e).
247.21    Owners or spouses occupying residences owned by their spouses and previously
247.22occupied with the other spouse, either of whom fail to include the other spouse's name
247.23and Social Security number on the homestead application or provide the affidavits or
247.24other proof requested, will be deemed to have elected to receive only partial homestead
247.25treatment of their residence. The remainder of the residence will be classified as
247.26nonhomestead residential. When an owner or spouse's name and Social Security number
247.27appear on homestead applications for two separate residences and only one application is
247.28signed, the owner or spouse will be deemed to have elected to homestead the residence for
247.29which the application was signed.
247.30    (d) If residential real estate is occupied and used for purposes of a homestead by a
247.31relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in
247.32order for the property to receive homestead status, a homestead application must be filed
247.33with the assessor. The Social Security number of each relative and spouse of a relative
247.34occupying the property shall be required on the homestead application filed under this
247.35subdivision. If a different relative of the owner subsequently occupies the property, the
247.36owner of the property must notify the assessor within 30 days of the change in occupancy.
248.1The Social Security number of a relative or relative's spouse occupying the property
248.2is private data on individuals as defined by section 13.02, subdivision 12, but may be
248.3disclosed to the commissioner of revenue, or, for the purposes of proceeding under the
248.4Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
248.5    (e) The homestead application shall also notify the property owners that if the
248.6property is granted homestead status for any assessment year, that same property shall
248.7remain classified as homestead until the property is sold or transferred to another person,
248.8or the owners, the spouse of the owner, or the relatives no longer use the property as their
248.9homestead. Upon the sale or transfer of the homestead property, a certificate of value must
248.10be timely filed with the county auditor as provided under section 272.115. Failure to
248.11notify the assessor within 30 days that the property has been sold, transferred, or that the
248.12owner, the spouse of the owner, or the relative is no longer occupying the property as a
248.13homestead, shall result in the penalty provided under this subdivision and the property
248.14will lose its current homestead status.
248.15    (f) If a homestead application has not been filed with the county by December 15,
248.16the assessor shall classify the property as nonhomestead for the current assessment year
248.17for taxes payable in the following year, provided that the owner may be entitled to receive
248.18the homestead classification by proper application under section 375.192.
248.19EFFECTIVE DATE.This section is effective the day following final enactment.

248.20    Sec. 24. Minnesota Statutes 2014, section 273.371, subdivision 1, is amended to read:
248.21    Subdivision 1. Report required. Every electric light, power, gas, water, express,
248.22stage, and transportation company and pipeline doing business in Minnesota shall
248.23annually file with the commissioner on or before March 31 a report under oath setting
248.24forth the information prescribed by the commissioner to enable the commissioner to
248.25make valuations, recommended valuations, and equalization required under sections
248.26273.33 , 273.35, 273.36, 273.37, and 273.3711. The commissioner shall prescribe the
248.27content, format, and manner of the report pursuant to section 270C.30, except that
248.28a "law administered by the commissioner" includes the property tax laws. If all the
248.29required information is not available on March 31, the company or pipeline shall file the
248.30information that is available on or before March 31, and the balance of the information
248.31as soon as it becomes available. If a report is made by electronic means, the taxpayer's
248.32signature is defined pursuant to section 270C.304, except that a "law administered by the
248.33commissioner" includes the property tax laws.
248.34EFFECTIVE DATE.This section is effective the day following final enactment.

249.1    Sec. 25. Minnesota Statutes 2014, section 287.2205, is amended to read:
249.2287.2205 TAX-FORFEITED LAND.
249.3    Before a state deed for tax-forfeited land may be issued, the deed tax must be paid
249.4by the purchaser of tax-forfeited land whether the purchase is the result of a public
249.5auction or private sale or a repurchase of tax-forfeited land. State agencies and local
249.6units of government that acquire tax-forfeited land by purchase or any other means are
249.7subject to this section. The deed tax is $1.65 for a conveyance of tax-forfeited lands to a
249.8governmental subdivision for an authorized public use under section 282.01, subdivision
249.91a
, for a school forest under section 282.01, subdivision 1a, or for redevelopment purposes
249.10under section 282.01, subdivision 1b.
249.11EFFECTIVE DATE.This section is effective the day following final enactment.

249.12    Sec. 26. Minnesota Statutes 2014, section 289A.08, is amended by adding a
249.13subdivision to read:
249.14    Subd. 17. Format. The commissioner shall prescribe the content, format, and
249.15manner of the returns and other documents pursuant to section 270C.30. This does not
249.16authorize the commissioner to require individual income taxpayers to file individual
249.17income tax returns electronically.
249.18EFFECTIVE DATE.This section is effective the day following final enactment.

249.19    Sec. 27. Minnesota Statutes 2014, section 289A.09, subdivision 1, is amended to read:
249.20    Subdivision 1. Returns. (a) An employer who is required to deduct and withhold tax
249.21under section 290.92, subdivision 2a or 3, and a person required to deduct and withhold
249.22tax under section 290.923, subdivision 2, must file a return with the commissioner for each
249.23quarterly period unless otherwise prescribed by the commissioner.
249.24(b) A person or corporation required to make deposits under section 290.9201,
249.25subdivision 8
, must file an entertainer withholding tax return with the commissioner.
249.26(c) A person required to withhold an amount under section 290.9705, subdivision 1,
249.27must file a return.
249.28(d) A partnership required to deduct and withhold tax under section 290.92,
249.29subdivision 4b
, must file a return.
249.30(e) An S corporation required to deduct and withhold tax under section 290.92,
249.31subdivision 4c
, must also file a return.
249.32(f) Returns must be filed in the form and manner, and contain the information
249.33prescribed by the commissioner The commissioner shall prescribe the content, format,
250.1and manner of the returns pursuant to section 270C.30. Every return for taxes withheld
250.2must be signed by the employer, entertainment entity, contract payor, partnership, or S
250.3corporation, or a designee.
250.4EFFECTIVE DATE.This section is effective the day following final enactment.

250.5    Sec. 28. Minnesota Statutes 2014, section 289A.11, subdivision 1, is amended to read:
250.6    Subdivision 1. Return required. (a) Except as provided in section 289A.18,
250.7subdivision 4
, for the month in which taxes imposed by chapter 297A are payable, or for
250.8which a return is due, a return for the preceding reporting period must be filed with the
250.9commissioner in the form and manner the commissioner prescribes. The commissioner
250.10shall prescribe the content, format, and manner of the returns pursuant to section 270C.30.
250.11A person making sales at retail at two or more places of business may file a consolidated
250.12return subject to rules prescribed by the commissioner. In computing the dollar amount of
250.13items on the return, the amounts are rounded off to the nearest whole dollar, disregarding
250.14amounts less than 50 cents and increasing amounts of 50 cents to 99 cents to the next
250.15highest dollar.
250.16(b) Notwithstanding this subdivision, a person who is not required to hold a sales tax
250.17permit under chapter 297A and who makes annual purchases, for use in a trade or business,
250.18of less than $18,500, or a person who is not required to hold a sales tax permit and who
250.19makes purchases for personal use, that are subject to the use tax imposed by section
250.20297A.63 , may file an annual use tax return on a form prescribed by the commissioner.
250.21The commissioner shall prescribe the content, format, and manner of the return pursuant
250.22to section 270C.30. If a person who qualifies for an annual use tax reporting period is
250.23required to obtain a sales tax permit or makes use tax purchases, for use in a trade or
250.24business, in excess of $18,500 during the calendar year, the reporting period must be
250.25considered ended at the end of the month in which the permit is applied for or the purchase
250.26in excess of $18,500 is made and a return must be filed for the preceding reporting period.
250.27(c) Notwithstanding paragraph paragraphs (a) and (b), a person prohibited by the
250.28person's religious beliefs from using electronics shall be allowed to file by mail, without
250.29any additional fees. The filer must notify the commissioner of revenue of the intent to file
250.30by mail on a form prescribed by the commissioner. A return filed under this paragraph
250.31must be postmarked no later than the day the return is due in order to be considered filed
250.32on a timely basis.
250.33EFFECTIVE DATE.This section is effective the day following final enactment.

251.1    Sec. 29. Minnesota Statutes 2014, section 289A.50, subdivision 7, is amended to read:
251.2    Subd. 7. Remedies. (a) If the taxpayer is notified by the commissioner that the
251.3refund claim is denied in whole or in part, the taxpayer may:
251.4(1) file an administrative appeal as provided in section 270C.35, or an appeal
251.5with the Tax Court, within 60 days after issuance the notice date of the commissioner's
251.6notice of denial; or
251.7(2) file an action in the district court to recover the refund.
251.8(b) An action in the district court on a denied claim for refund must be brought
251.9within 18 months of the notice date of the denial of the claim by the commissioner. For
251.10the purposes of this section, "notice date" is defined in section 270C.35, subdivision 3.
251.11(c) No action in the district court or the Tax Court shall be brought within six months
251.12of the filing of the refund claim unless the commissioner denies the claim within that period.
251.13(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial
251.14of the claim, the taxpayer may bring an action in the district court or the Tax Court at any
251.15time after the expiration of six months from the time the claim was filed.
251.16(e) The commissioner and the taxpayer may agree to extend the period for bringing
251.17an action in the district court.
251.18(f) An action for refund of tax by the taxpayer must be brought in the district court
251.19of the district in which lies the county of the taxpayer's residence or principal place of
251.20business. In the case of an estate or trust, the action must be brought at the principal place
251.21of its administration. Any action may be brought in the district court for Ramsey County.
251.22EFFECTIVE DATE.This section is effective for claims for refund denied after
251.23September 30, 2015.

251.24    Sec. 30. [290B.11] FORMS.
251.25The commissioner shall prescribe the content, format, and manner of all forms and
251.26other documents required to be filed under this chapter pursuant to section 270C.30.
251.27EFFECTIVE DATE.This section is effective the day following final enactment.

251.28    Sec. 31. Minnesota Statutes 2014, section 290C.13, subdivision 3, is amended to read:
251.29    Subd. 3. Notice date. For purposes of this section, the term "notice date" means the
251.30notice date designated by the commissioner on the order or notice of the determination
251.31removing enrolled land or the notice date of designated by the commissioner on the notice
251.32denying an application to enroll land or denying part or all of an incentive payment.
252.1EFFECTIVE DATE.This section is effective for orders and notices dated after
252.2September 30, 2015.

252.3    Sec. 32. [293.15] FORMS.
252.4The commissioner shall prescribe the content, format, and manner of all forms and
252.5other documents required to be filed under this chapter pursuant to section 270C.30.
252.6EFFECTIVE DATE.This section is effective the day following final enactment.

252.7    Sec. 33. Minnesota Statutes 2014, section 295.55, subdivision 6, is amended to read:
252.8    Subd. 6. Form of returns. The estimated payments and annual return must contain
252.9the information and be in the form prescribed by the commissioner. The commissioner
252.10shall prescribe the content, format, and manner of the estimated payment forms and annual
252.11return pursuant to section 270C.30.
252.12EFFECTIVE DATE.This section is effective the day following final enactment.

252.13    Sec. 34. Minnesota Statutes 2014, section 296A.02, is amended by adding a
252.14subdivision to read:
252.15    Subd. 5. Forms. The commissioner shall prescribe the content, format, and manner
252.16of all forms and other documents required to be filed under this chapter pursuant to section
252.17270C.30.
252.18EFFECTIVE DATE.This section is effective the day following final enactment.

252.19    Sec. 35. Minnesota Statutes 2014, section 296A.22, subdivision 9, is amended to read:
252.20    Subd. 9. Abatement of penalty. (a) The commissioner may by written order
252.21abate any penalty imposed under this section, if in the commissioner's opinion there is
252.22reasonable cause to do so.
252.23(b) A request for abatement of penalty must be filed with the commissioner within
252.2460 days of the notice date of the notice stating that a penalty has been imposed was mailed
252.25to the taxpayer's last known address. For purposes of this section, the term "notice date"
252.26means the notice date designated by the commissioner on the order or other notice that a
252.27penalty has been imposed.
252.28(c) If the commissioner issues an order denying a request for abatement of penalty,
252.29the taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to
252.30Tax Court as provided in section 271.06. If the commissioner does not issue an order on
253.1the abatement request within 60 days from the date the request is received, the taxpayer
253.2may appeal to Tax Court as provided in section 271.06.
253.3EFFECTIVE DATE.This section is effective for orders and notices dated after
253.4September 30, 2015.

253.5    Sec. 36. Minnesota Statutes 2014, section 296A.26, is amended to read:
253.6296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT.
253.7In lieu of an administrative appeal under section 270C.35, any person aggrieved by
253.8an order of the commissioner fixing a tax, penalty, or interest under this chapter may, within
253.960 days from the notice date of the notice of the order, appeal to the Tax Court in the manner
253.10provided under section 271.06. For purposes of this section, the term "notice date" means
253.11the notice date designated by the commissioner on the order fixing a tax, penalty, or interest.
253.12EFFECTIVE DATE.This section is effective for orders dated after September
253.1330, 2015.

253.14    Sec. 37. Minnesota Statutes 2014, section 297D.02, is amended to read:
253.15297D.02 ADMINISTRATION.
253.16The commissioner of revenue shall administer this chapter. The commissioner shall
253.17prescribe the content, format, and manner of all forms and other documents required to be
253.18filed under this chapter pursuant to section 270C.30. Payments required by this chapter
253.19must be made to the commissioner on the form provided by the commissioner. Tax obligors
253.20are not required to give their name, address, Social Security number, or other identifying
253.21information on the form. The commissioner shall collect all taxes under this chapter.
253.22EFFECTIVE DATE.This section is effective the day following final enactment.

253.23    Sec. 38. Minnesota Statutes 2014, section 297E.02, subdivision 3, is amended to read:
253.24    Subd. 3. Collection; disposition. (a) Taxes imposed by this section are due
253.25and payable to the commissioner when the gambling tax return is required to be filed.
253.26Distributors must file their monthly sales figures with the commissioner on a form
253.27prescribed by the commissioner. Returns covering the taxes imposed under this section
253.28must be filed with the commissioner on or before the 20th day of the month following the
253.29close of the previous calendar month. The commissioner may require that the returns be
253.30filed via magnetic media or electronic data transfer. The commissioner shall prescribe the
253.31content, format, and manner of returns or other documents pursuant to section 270C.30.
254.1The proceeds, along with the revenue received from all license fees and other fees under
254.2sections 349.11 to 349.191, 349.211, and 349.213, must be paid to the commissioner of
254.3management and budget for deposit in the general fund.
254.4(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by
254.5the distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards
254.6by the organization is exempt from taxes imposed by chapter 297A and is exempt from all
254.7local taxes and license fees except a fee authorized under section 349.16, subdivision 8.
254.8(c) One-half of one percent of the revenue deposited in the general fund under
254.9paragraph (a), is appropriated to the commissioner of human services for the compulsive
254.10gambling treatment program established under section 245.98. One-half of one percent
254.11of the revenue deposited in the general fund under paragraph (a), is appropriated to
254.12the commissioner of human services for a grant to the state affiliate recognized by
254.13the National Council on Problem Gambling to increase public awareness of problem
254.14gambling, education and training for individuals and organizations providing effective
254.15treatment services to problem gamblers and their families, and research relating to
254.16problem gambling. Money appropriated by this paragraph must supplement and must not
254.17replace existing state funding for these programs.
254.18EFFECTIVE DATE.This section is effective the day following final enactment.

254.19    Sec. 39. Minnesota Statutes 2014, section 297E.04, subdivision 1, is amended to read:
254.20    Subdivision 1. Reports of sales. A manufacturer who sells gambling product for
254.21use or resale in this state, or for receipt by a person or entity in this state, shall file with the
254.22commissioner, on a form prescribed by the commissioner, a report of gambling product
254.23sold to any person in the state, including the established governing body of an Indian tribe
254.24recognized by the United States Department of the Interior. The report must be filed
254.25monthly on or before the 20th day of the month succeeding the month in which the sale
254.26was made. The commissioner may require that the report be submitted via magnetic
254.27media or electronic data transfer. The commissioner shall prescribe the content, format,
254.28and manner of returns or other documents pursuant to section 270C.30. The commissioner
254.29may inspect the premises, books, records, and inventory of a manufacturer without notice
254.30during the normal business hours of the manufacturer. A person violating this section is
254.31guilty of a misdemeanor.
254.32EFFECTIVE DATE.This section is effective the day following final enactment.

254.33    Sec. 40. Minnesota Statutes 2014, section 297E.05, subdivision 4, is amended to read:
255.1    Subd. 4. Reports. A distributor shall report monthly to the commissioner, on a form
255.2the commissioner prescribes, its sales of each type of gambling product. This report must
255.3be filed monthly on or before the 20th day of the month succeeding the month in which
255.4the sale was made. The commissioner may require that a distributor submit the monthly
255.5report and invoices required in this subdivision via magnetic media or electronic data
255.6transfer. The commissioner shall prescribe the content, format, and manner of returns or
255.7other documents pursuant to section 270C.30.
255.8EFFECTIVE DATE.This section is effective the day following final enactment.

255.9    Sec. 41. Minnesota Statutes 2014, section 297E.06, subdivision 1, is amended to read:
255.10    Subdivision 1. Reports. An organization must file with the commissioner, on a form
255.11prescribed by the commissioner, a report showing all gambling activity conducted by that
255.12organization for each month. Gambling activity includes all gross receipts, prizes, all
255.13gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful
255.14purpose and board-approved expenditures. The report must be filed with the commissioner
255.15on or before the 20th day of the month following the month in which the gambling activity
255.16takes place. The commissioner may require that the reports be filed via magnetic media or
255.17electronic data transfer. The commissioner shall prescribe the content, format, and manner
255.18of returns or other documents pursuant to section 270C.30.
255.19EFFECTIVE DATE.This section is effective the day following final enactment.

255.20    Sec. 42. Minnesota Statutes 2014, section 297F.09, subdivision 1, is amended to read:
255.21    Subdivision 1. Monthly return; cigarette distributor. On or before the 18th day
255.22of each calendar month, a distributor with a place of business in this state shall file a
255.23return with the commissioner showing the quantity of cigarettes manufactured or brought
255.24in from outside the state or purchased during the preceding calendar month and the
255.25quantity of cigarettes sold or otherwise disposed of in this state and outside this state
255.26during that month. A licensed distributor outside this state shall in like manner file a
255.27return showing the quantity of cigarettes shipped or transported into this state during the
255.28preceding calendar month. Returns must be made in the form and manner prescribed by
255.29The commissioner shall prescribe the content, format, and manner of returns pursuant to
255.30section 270C.30, and the returns must contain any other information required by the
255.31commissioner. The return must be accompanied by a remittance for the full unpaid tax
255.32liability shown by it. For distributors subject to the accelerated tax payment requirements
256.1in subdivision 10, the return for the May liability is due two business days before June 30th
256.2of the year and the return for the June liability is due on or before August 18th of the year.
256.3EFFECTIVE DATE.This section is effective the day following final enactment.

256.4    Sec. 43. Minnesota Statutes 2014, section 297F.23, is amended to read:
256.5297F.23 JUDICIAL REVIEW.
256.6In lieu of an administrative appeal under section 270C.35, a person aggrieved by an
256.7order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 60
256.8days from the notice date of the notice of the order, appeal to the Tax Court in the manner
256.9provided under section 271.06. For purposes of this section, the term "notice date" means
256.10the notice date designated by the commissioner on the order fixing a tax, penalty, or interest.
256.11EFFECTIVE DATE.This section is effective for orders dated after September
256.1230, 2015.

256.13    Sec. 44. Minnesota Statutes 2014, section 297G.09, subdivision 1, is amended to read:
256.14    Subdivision 1. Monthly returns; manufacturers, wholesalers, brewers, or
256.15importers. On or before the 18th day of each calendar month following the month in
256.16which a licensed manufacturer or wholesaler first sells wine and distilled spirits within
256.17the state, or a brewer or importer first sells or imports fermented malt beverages, or a
256.18wholesaler knowingly acquires title to or possession of untaxed fermented malt beverages,
256.19the licensed manufacturer, wholesaler, brewer, or importer liable for the excise tax must
256.20file a return with the commissioner, and in addition must keep records and render reports
256.21as required by the commissioner. Returns must be made in a form and manner prescribed
256.22by the commissioner, and The commissioner shall prescribe the content, format, and
256.23manner of returns pursuant to section 270C.30. The returns must contain any other
256.24information required by the commissioner. Returns must be accompanied by a remittance
256.25for the full unpaid tax liability. Returns must be filed regardless of whether a tax is due.
256.26EFFECTIVE DATE.This section is effective the day following final enactment.

256.27    Sec. 45. Minnesota Statutes 2014, section 297G.22, is amended to read:
256.28297G.22 JUDICIAL REVIEW.
256.29In lieu of an administrative appeal under this chapter, a person aggrieved by an order
256.30of the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 days
256.31from the date of the notice date of the order, appeal to the Tax Court in the manner provided
257.1under section 271.06. For purposes of this section, the term "notice date" means the notice
257.2date designated by the commissioner on the order fixing a tax, penalty, or interest.
257.3EFFECTIVE DATE.This section is effective for orders dated after September
257.430, 2015.

257.5    Sec. 46. Minnesota Statutes 2014, section 297I.30, is amended by adding a subdivision
257.6to read:
257.7    Subd. 11. Format. The commissioner shall prescribe the content, format, and
257.8manner of returns or other documents pursuant to section 270C.30.
257.9EFFECTIVE DATE.This section is effective the day following final enactment.

257.10    Sec. 47. Minnesota Statutes 2014, section 297I.60, subdivision 2, is amended to read:
257.11    Subd. 2. Remedies. (a) If the taxpayer is notified that the refund claim is denied in
257.12whole or in part, the taxpayer may contest the denial by:
257.13(1) filing an administrative appeal with the commissioner under section 270C.35;
257.14(2) filing an appeal in Tax Court within 60 days of the notice date of the notice of
257.15denial; or
257.16(3) filing an action in the district court to recover the refund.
257.17(b) An action in the district court must be brought within 18 months following of the
257.18notice date of the notice of denial. For purposes of this section, "notice date" is defined in
257.19section 270C.35, subdivision 3. An action for refund of tax or surcharge must be brought
257.20in the district court of the district in which lies the taxpayer's principal place of business or
257.21in the District Court for Ramsey County. If a taxpayer files a claim for refund and the
257.22commissioner has not issued a denial of the claim, the taxpayer may bring an action in
257.23the district court or the Tax Court at any time after the expiration of six months from the
257.24time the claim was filed.
257.25EFFECTIVE DATE.This section is effective for claims for refund denied after
257.26September 30, 2015.

257.27    Sec. 48. Minnesota Statutes 2014, section 469.319, subdivision 5, is amended to read:
257.28    Subd. 5. Waiver authority. (a) The commissioner may waive all or part of a
257.29repayment required under subdivision 1, if the commissioner, in consultation with
257.30the commissioner of employment and economic development and appropriate officials
257.31from the local government units in which the qualified business is located, determines
257.32that requiring repayment of the tax is not in the best interest of the state or the local
258.1government units and the business ceased operating as a result of circumstances beyond
258.2its control including, but not limited to:
258.3    (1) a natural disaster;
258.4    (2) unforeseen industry trends; or
258.5    (3) loss of a major supplier or customer.
258.6    (b)(1) The commissioner shall waive repayment required under subdivision 1a if
258.7the commissioner has waived repayment by the operating business under subdivision 1,
258.8unless the person that received benefits without having to operate a business in the zone
258.9was a contributing factor in the qualified business becoming subject to repayment under
258.10subdivision 1;
258.11    (2) the commissioner shall waive the repayment required under subdivision 1a, even
258.12if the repayment has not been waived for the operating business if:
258.13    (i) the person that received benefits without having to operate a business in the zone
258.14and the business that operated in the zone are not related parties as defined in section
258.15267(b) of the Internal Revenue Code of 1986, as amended through December 31, 2007; and
258.16    (ii) actions of the person were not a contributing factor in the qualified business
258.17becoming subject to repayment under subdivision 1.
258.18(c) Requests for waiver must be made no later than 60 days after the earlier of the
258.19notice date of an order issued under subdivision 4, paragraph (d), or the date of a tax
258.20statement issued under subdivision 4, paragraph (c). For purposes of this section, the term
258.21"notice date" means the notice date designated by the commissioner on the order.
258.22EFFECTIVE DATE.This section is effective for orders of the commissioner of
258.23revenue dated after September 30, 2015."
258.24Delete the title and insert:
258.25"A bill for an act
258.26relating to financing of state and local government; making changes to individual
258.27income and corporate franchise, property, sales and use, estate, mineral, tobacco,
258.28special, local, and other taxes and tax-related provisions; providing for and
258.29expanding credits; modifying local government aids; modifying exclusions,
258.30exemptions, and levy deadlines; modifying sales and use tax exemptions;
258.31changing sales, use, and excise tax remittances; modifying certain local sales
258.32and use taxes; modifying income tax credits; modifying the payment in lieu of
258.33tax provisions; clarifying estate tax provisions; providing for and modifying
258.34certain local development projects; modifying electric generation machinery
258.35valuation; clarifying tax increment financing rules; modifying property tax
258.36interest rates; modifying valuation and taxation of railroad property; modifying
258.37the Sustainable Forest Incentive Act; modifying certain county levy authority;
258.38allocating additional tax reductions for border cities; modifying the distribution
258.39of taconite production and occupation taxes; modifying and providing provisions
258.40for public finance; making conforming, policy, and technical changes to tax
258.41provisions; requiring reports; appropriating money;amending Minnesota
258.42Statutes 2014, sections 13.51, subdivision 2; 16A.152, subdivisions 2, 8;
258.4316D.08, subdivision 2; 69.021, subdivision 5; 126C.01, subdivision 3; 126C.40,
259.1subdivision 1; 136A.129, subdivision 3; 138.053; 216B.1621, subdivision 2;
259.2216B.164, subdivision 2a; 216B.2424, subdivision 5; 270.071, subdivisions
259.32, 7, 8, by adding a subdivision; 270.072, subdivisions 2, 3, by adding a
259.4subdivision; 270.12, by adding a subdivision; 270.80, subdivisions 1, 2, 3,
259.54, by adding subdivisions; 270.81, subdivisions 1, 3, by adding a subdivision;
259.6270.82; 270.83, subdivisions 1, 2; 270.84; 270.86; 270.87; 270A.03, subdivision
259.75; 270B.14, subdivision 1; 270C.03, subdivision 1; 270C.30; 270C.33,
259.8subdivisions 5, 8; 270C.34, subdivision 2; 270C.347, subdivision 1; 270C.35,
259.9subdivision 3, by adding a subdivision; 270C.38, subdivision 1; 270C.445,
259.10by adding a subdivision; 270C.446, subdivision 5; 270C.72, subdivision 4;
259.11270C.89, subdivision 1; 271.06, subdivisions 2, 7; 271.08, subdivision 1; 271.21,
259.12subdivision 2; 272.02, subdivisions 9, 10; 272.0211, subdivision 1; 272.025,
259.13subdivision 1; 272.029, subdivisions 2, 4, by adding a subdivision; 272.0295,
259.14subdivision 4; 272.115, subdivision 2; 273.032; 273.061, subdivision 7; 273.08;
259.15273.121, by adding a subdivision; 273.124, subdivision 13; 273.13, subdivisions
259.1623, 24; 273.1392; 273.1393; 273.33, subdivisions 1, 2; 273.37, subdivision 1;
259.17273.371; 273.372, subdivisions 2, 4, by adding subdivisions; 274.01, subdivision
259.181; 274.13, subdivision 1; 274.135, subdivision 3; 275.025, subdivisions 1, 3;
259.19275.065, subdivisions 1, 3; 275.066; 275.07, subdivision 1; 275.62, subdivision
259.202; 276.04, subdivision 2; 278.01, subdivision 1; 279.01, subdivision 1; 279.37,
259.21subdivision 2; 282.01, subdivisions 1a, 1d, 4; 282.261, subdivision 2; 287.2205;
259.22289A.02, subdivision 7, as amended; 289A.08, subdivisions 11, 16, by adding
259.23a subdivision; 289A.09, subdivisions 1, 2; 289A.11, subdivision 1; 289A.12,
259.24subdivision 14; 289A.20, subdivision 4; 289A.38, subdivision 6; 289A.50,
259.25subdivision 7; 289A.60, subdivisions 15, 28; 290.01, subdivisions 4a, 7,
259.2619b, 19c, 19d, 31, as amended, by adding a subdivision; 290.06, by adding a
259.27subdivision; 290.0671, subdivisions 1, 6a; 290.0672, subdivision 1; 290.0674,
259.28subdivisions 1, 2; 290.068, subdivisions 1, 2, 3, 6a, by adding a subdivision;
259.29290.091, subdivision 3; 290.0921, subdivision 3; 290.0922, subdivision 2;
259.30290.17, subdivision 4; 290.191, subdivision 5; 290.21, subdivision 4; 290A.03,
259.31subdivisions 13, 15, as amended; 290A.04, subdivision 2h; 290A.19; 290B.03,
259.32subdivision 1; 290B.04, subdivision 1; 290C.01; 290C.02, subdivisions 1, 3,
259.336; 290C.03; 290C.04; 290C.05; 290C.055; 290C.07; 290C.08, subdivision 1;
259.34290C.10; 290C.11; 290C.13, subdivisions 3, 6; 291.005, subdivision 1; 291.03,
259.35subdivision 10, by adding a subdivision; 291.031; 295.54, subdivision 2; 295.55,
259.36subdivision 6; 296A.01, subdivisions 12, 33, 42, by adding subdivisions;
259.37296A.02, by adding a subdivision; 296A.07, subdivisions 1, 4; 296A.08,
259.38subdivision 2; 296A.09, subdivisions 1, 3, 5, 6; 296A.15, subdivisions 1, 4;
259.39296A.17, subdivisions 1, 2, 3; 296A.18, subdivisions 1, 8; 296A.19, subdivision
259.401; 296A.22, subdivision 9; 296A.26; 297A.62, subdivision 3; 297A.67,
259.41subdivision 7a, by adding subdivisions; 297A.68, subdivisions 5, 35a; 297A.70,
259.42subdivisions 4, 14, by adding a subdivision; 297A.82, subdivision 4a; 297A.994,
259.43subdivision 4; 297D.02; 297E.02, subdivisions 3, 7; 297E.04, subdivision
259.441; 297E.05, subdivision 4; 297E.06, subdivision 1; 297F.05, subdivision 3;
259.45297F.09, subdivisions 1, 10; 297F.23; 297G.09, subdivisions 1, 9; 297G.22;
259.46297H.04, subdivision 2; 297H.06, subdivision 2; 297I.05, subdivision 2; 297I.10,
259.47subdivisions 1, 3; 297I.30, by adding a subdivision; 297I.60, subdivision 2;
259.48298.01, subdivisions 3b, 4c; 298.17; 298.227; 298.24, subdivision 1, by adding
259.49a subdivision; 298.28, subdivisions 3, 7a; 366.095, subdivision 1; 383B.117,
259.50subdivision 2; 410.32; 412.301; 469.034, subdivision 2; 469.101, subdivision
259.511; 469.169, by adding a subdivision; 469.174, subdivision 12; 469.175,
259.52subdivision 3; 469.176, subdivision 4c; 469.1761, by adding a subdivision;
259.53469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; 469.190, subdivisions
259.541, 7; 469.194, subdivision 1; 469.319, subdivision 5; 469.40, subdivision
259.5511, as amended; 469.43, by adding a subdivision; 469.45, subdivisions 1, 2;
259.56469.47, subdivision 4, as amended; 473H.09; 475.58, subdivision 3b; 475.60,
259.57subdivision 2; 477A.0124, subdivision 4; 477A.013, subdivision 1, by adding
259.58a subdivision; 477A.014, subdivision 1; 477A.015; 477A.017, subdivisions
260.12, 3; 477A.03, subdivisions 2a, 2b, 2c; 477A.12, subdivisions 1, 2; 477A.13;
260.2477A.15; 477A.19, by adding subdivisions; 477A.20; 524.3-916; 559.202,
260.3subdivision 2; Laws 1980, chapter 511, sections 1, subdivision 2, as amended;
260.42, as amended; Laws 1991, chapter 291, article 8, section 27, subdivisions 3, as
260.5amended, 4, as amended, 5, 6; Laws 1996, chapter 471, article 3, section 51;
260.6Laws 2001, First Special Session chapter 5, article 3, section 86; Laws 2006,
260.7chapter 257, section 2, as amended; Laws 2008, chapter 366, article 7, section
260.820; Laws 2013, chapter 143, article 8, sections 22, as amended; 23, as amended;
260.9Laws 2014, chapter 308, article 1, section 14, subdivision 2; article 7, section
260.107; proposing coding for new law in Minnesota Statutes, chapters 103C; 116J;
260.11270C; 273; 290; 290B; 290C; 293; 383B; 465; 477A; repealing Minnesota
260.12Statutes 2014, sections 3.192; 270.81, subdivision 4; 270.83, subdivision 3;
260.13272.02, subdivisions 23, 24, 29, 33, 44, 45, 47, 52, 54, 55, 56, 68, 69, 70, 71, 84,
260.1489, 92, 93, 96, 99; 272.0211; 273.111, subdivision 9a; 275.025, subdivision 4;
260.15281.22; 290C.02, subdivisions 5, 9; 469.194, subdivisions 2, 4; Minnesota Rules,
260.16parts 8092.2000; 8106.0100, subparts 1, 2, 3, 4, 5, 6, 7, 8, 10, 12, 13, 14, 17, 17a,
260.1718, 19, 20, 21; 8106.0300, subparts 1, 3; 8106.0400; 8106.0500; 8106.0600;
260.188106.0700; 8106.0800; 8106.9900; 8125.1300, subpart 3."