1.1.................... moves to amend H.F. No. 991, the second engrossment, as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. Minnesota Statutes 2020, section 289A.02, subdivision 7, is amended to read:
1.6    Subd. 7. Internal Revenue Code. Unless specifically defined otherwise, "Internal
1.7Revenue Code" means the Internal Revenue Code of 1986, as amended through December
1.831, 2018 2020.
1.9EFFECTIVE DATE.This section is effective the day following final enactment, except
1.10the changes incorporated by federal changes are effective retroactively at the same time as
1.11the changes were effective for federal purposes.

1.12    Sec. 2. Minnesota Statutes 2020, section 290.01, subdivision 19, is amended to read:
1.13    Subd. 19. Net income. (a) For a trust or estate taxable under section 290.03, and a
1.14corporation taxable under section 290.02, the term "net income" means the federal taxable
1.15income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through
1.16the date named in this subdivision, incorporating the federal effective dates of changes to
1.17the Internal Revenue Code and any elections made by the taxpayer in accordance with the
1.18Internal Revenue Code in determining federal taxable income for federal income tax
1.19purposes, and with the modifications provided in sections 290.0131 to 290.0136.
1.20(b) For an individual, the term "net income" means federal adjusted gross income with
1.21the modifications provided in sections 290.0131, 290.0132, and 290.0135 to 290.0137.
1.22(c) In the case of a regulated investment company or a fund thereof, as defined in section
1.23851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
2.1company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
2.2except that:
2.3(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
2.4Revenue Code does not apply;
2.5(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue
2.6Code must be applied by allowing a deduction for capital gain dividends and exempt-interest
2.7dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code;
2.8and
2.9(3) the deduction for dividends paid must also be applied in the amount of any
2.10undistributed capital gains which the regulated investment company elects to have treated
2.11as provided in section 852(b)(3)(D) of the Internal Revenue Code.
2.12(d) The net income of a real estate investment trust as defined and limited by section
2.13856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
2.14taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
2.15(e) The net income of a designated settlement fund as defined in section 468B(d) of the
2.16Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal
2.17Revenue Code.
2.18(f) The Internal Revenue Code of 1986, as amended through December 31, 2018 2020,
2.19shall be in effect for taxable years beginning after December 31, 1996.
2.20(g) Except as otherwise provided, references to the Internal Revenue Code in this
2.21subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of
2.22determining net income for the applicable year.
2.23EFFECTIVE DATE.This section is effective the day following final enactment, except
2.24the changes incorporated by federal changes are effective retroactively at the same time as
2.25the changes were effective for federal purposes.

2.26    Sec. 3. Minnesota Statutes 2020, section 290.01, subdivision 31, is amended to read:
2.27    Subd. 31. Internal Revenue Code. Unless specifically defined otherwise, "Internal
2.28Revenue Code" means the Internal Revenue Code of 1986, as amended through December
2.2931, 2018 2020. Internal Revenue Code also includes any uncodified provision in federal
2.30law that relates to provisions of the Internal Revenue Code that are incorporated into
2.31Minnesota law.
3.1EFFECTIVE DATE.This section is effective the day following final enactment, except
3.2the changes incorporated by federal changes are effective retroactively at the same time as
3.3the changes were effective for federal purposes.

3.4    Sec. 4. Minnesota Statutes 2020, section 290.0122, subdivision 4, is amended to read:
3.5    Subd. 4. Charitable contributions. (a) A taxpayer is allowed a deduction for charitable
3.6contributions. The deduction equals the amount of the charitable contribution deduction
3.7allowable to the taxpayer under section 170 of the Internal Revenue Code, including the
3.8denial of the deduction under section 408(d)(8), except that the provisions of section
3.9170(b)(1)(G) apply regardless of the taxable year deduction under this subdivision is limited
3.10to 60 percent of the taxpayer's contribution base as defined in section 170(b)(1)(H) of the
3.11Internal Revenue Code.
3.12(b) For taxable years beginning after December 31, 2017, the determination of carryover
3.13amounts must be made by applying the rules under section 170 of the Internal Revenue
3.14Code based on the charitable contribution deductions claimed and allowable under this
3.15section.
3.16EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
3.17after December 31, 2019.

3.18    Sec. 5. Minnesota Statutes 2020, section 290.0131, is amended by adding a subdivision
3.19to read:
3.20    Subd. 19. Business interest. The amount of business interest deducted under section
3.21163(j) of the Internal Revenue Code of 1986, as amended through December 31, 2020, that
3.22exceeds the amount of business interest allowed to be deducted under section 163(j) of the
3.23Internal Revenue Code of 1986, as amended through December 31, 2018, is an addition.
3.24EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
3.25after December 31, 2017, and before January 1, 2021.

3.26    Sec. 6. Minnesota Statutes 2020, section 290.0131, is amended by adding a subdivision
3.27to read:
3.28    Subd. 20. Excess business losses. The amount by which an excess business loss under
3.29section 461(l)(3) of the Internal Revenue Code of 1986, as amended through December 31,
3.302018, exceeds the amount of a disallowed loss carryover under section 461(l)(3) of the
3.31Internal Revenue Code of 1986, as amended through December 31, 2020, is an addition.
4.1EFFECTIVE DATE.This section is effective retroactively at the same time and for
4.2the same taxable years as the temporary changes in section 2304 of Public Law 116-136
4.3were effective for federal purposes.

4.4    Sec. 7. Minnesota Statutes 2020, section 290.0131, is amended by adding a subdivision
4.5to read:
4.6    Subd. 21. Net operating loss. The amount by which a net operating loss deducted under
4.7section 172 of the Internal Revenue Code of 1986, as amended through December 31, 2020,
4.8exceeds the amount of a net operating loss allowed to be deducted under the Internal Revenue
4.9Code of 1986, as amended through December 31, 2018, including the amount of the addition
4.10required under subdivision 20 to the extent the amount is not included under section 172
4.11of the Internal Revenue Code of 1986, as amended through December 31, 2018, is an
4.12addition.
4.13EFFECTIVE DATE.This section is effective retroactively at the same time and for
4.14the same taxable years as the temporary changes in section 2303 of Public Law 116-136
4.15were effective for federal purposes.

4.16    Sec. 8. Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision
4.17to read:
4.18    Subd. 30. Delayed business interest. (a) The amount of delayed business interest is a
4.19subtraction.
4.20(b) For purposes of this subdivision, the following terms have the meanings given:
4.21(1) "delayed business interest" means the lesser of:
4.22(i) the base amount; or
4.23(ii) the amount of business interest deductible under section 163(j) of the Internal Revenue
4.24Code, excluding the special rule under section 163(j)(10) of the Internal Revenue Code,
4.25less the amount of business interest deducted under section 163(j) of the Internal Revenue
4.26Code for the taxable year; and
4.27(2) "base amount" means the sum of each addition required under section 290.0131,
4.28subdivision 19, for all prior taxable years, less the sum of all subtractions claimed under
4.29this subdivision for all prior taxable years.
5.1EFFECTIVE DATE.This section is effective retroactively at the same time and for
5.2the same taxable years as the temporary changes in section 2306 of Public Law 116-136
5.3were effective for federal purposes and thereafter.

5.4    Sec. 9. Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision
5.5to read:
5.6    Subd. 31. Delayed net operating loss. (a) The amount of a delayed net operating loss
5.7is a subtraction.
5.8(b) For purposes of this subdivision, the following terms have the meanings given:
5.9(1) "delayed net operating loss" means the lesser of:
5.10(i) the base amount; or
5.11(ii) the net operating loss deduction limit under section 172(a) of the Internal Revenue
5.12Code of 1986, as amended through December 31, 2018, including the amount of the addition
5.13required under section 290.0131, subdivision 20, to the extent the amount is not included
5.14under section 172 of the Internal Revenue Code, less the amount of any net operating loss
5.15deducted under section 172 of the Internal Revenue Code for the taxable year; and
5.16(2) "base amount" means the sum of each addition required under section 290.0131,
5.17subdivision 21, for all prior taxable years, less the sum of all subtractions claimed under
5.18this subdivision for all prior taxable years.
5.19EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
5.20after December 31, 2018.

5.21    Sec. 10. Minnesota Statutes 2020, section 290.0133, is amended by adding a subdivision
5.22to read:
5.23    Subd. 15. Business interest. The amount of business interest deducted under section
5.24163(j) of the Internal Revenue Code of 1986, as amended through December 31, 2020, or
5.25section 290.34, that exceeds the amount of business interest allowed to be deducted under
5.26section 163(j) of the Internal Revenue Code of 1986, as amended through December 31,
5.272018, or section 290.34, is an addition.
5.28EFFECTIVE DATE.This section is effective the day following final enactment, except
5.29the changes incorporated by federal changes are effective retroactively at the same time as
5.30the changes were effective for federal purposes.

6.1    Sec. 11. Minnesota Statutes 2020, section 290.0134, is amended by adding a subdivision
6.2to read:
6.3    Subd. 20. Delayed business interest. (a) The amount of delayed business interest is a
6.4subtraction.
6.5(b) For purposes of this subdivision, the following terms have the meanings given:
6.6(1) "delayed business interest" means the portion of the base amount equal to the
6.7difference, if any, between:
6.8(i) the amount of business interest deductible under section 290.34 or section 163(j) of
6.9the Internal Revenue Code, excluding the special rule under section 163(j)(10) of the Internal
6.10Revenue Code; and
6.11(ii) the amount of business interest deducted under section 163(j) of the Internal Revenue
6.12Code for the taxable year; and
6.13(2) "base amount" means the sum of each addition required under section 290.0131,
6.14subdivision 16, for all prior taxable years, less the sum of all subtractions claimed under
6.15this subdivision for all prior taxable years.
6.16EFFECTIVE DATE.This section is effective retroactively at the same time and for
6.17the same taxable years as the temporary changes in section 2306 of Public Law 116-136
6.18were effective for federal purposes and thereafter.

6.19    Sec. 12. Minnesota Statutes 2020, section 290.993, is amended to read:
6.20290.993 SPECIAL LIMITED ADJUSTMENT.
6.21(a) For an individual income taxpayer subject to tax under section 290.06, subdivision
6.222c, or a partnership that elects to file a composite return under section 289A.08, subdivision
6.237, for taxable years beginning after December 31, 2017, and before January 1, 2019, the
6.24following special rules apply:
6.25(1) an individual income taxpayer may: (i) take the standard deduction; or (ii) make an
6.26election under section 63(e) of the Internal Revenue Code to itemize, for Minnesota individual
6.27income tax purposes, regardless of the choice made on their federal return; and
6.28(2) there is an adjustment to tax equal to the difference between the tax calculated under
6.29this chapter using the Internal Revenue Code as amended through December 16, 2016, and
6.30the tax calculated under this chapter using the Internal Revenue Code amended through
6.31December 31, 2018, before the application of credits. The end result must be zero additional
6.32tax due or refund.
7.1(b) The adjustment in paragraph (a), clause (2), does not apply to any changes due to
7.2sections 11012, 13101, 13201, 13202, 13203, 13204, 13205, 13207, 13301, 13302, 13303,
7.313313, 13502, 13503, 13801, 14101, 14102, 14211 through 14215, and 14501 of Public
7.4Law 115-97; and section 40411 of Public Law 115-123.
7.5(c) For an individual, estate, trust, or partnership subject to an adjustment under this
7.6section, any change in tax as a result of this act, including amendments to the Internal
7.7Revenue Code that are incorporated in this act, must be calculated after the adjustment.
7.8EFFECTIVE DATE.This section is effective the day following final enactment, except
7.9the changes incorporated by federal changes are effective retroactively at the same time as
7.10the changes were effective for federal purposes.

7.11    Sec. 13. Minnesota Statutes 2020, section 290A.03, subdivision 15, is amended to read:
7.12    Subd. 15. Internal Revenue Code. "Internal Revenue Code" means the Internal Revenue
7.13Code of 1986, as amended through December 31, 2018 2020.
7.14EFFECTIVE DATE.This section is effective for property tax refunds based on property
7.15taxes payable after December 31, 2021, and rent paid after December 31, 2020.

7.16    Sec. 14. Minnesota Statutes 2020, section 291.005, subdivision 1, is amended to read:
7.17    Subdivision 1. Scope. Unless the context otherwise clearly requires, the following terms
7.18used in this chapter shall have the following meanings:
7.19    (1) "Commissioner" means the commissioner of revenue or any person to whom the
7.20commissioner has delegated functions under this chapter.
7.21    (2) "Federal gross estate" means the gross estate of a decedent as required to be valued
7.22and otherwise determined for federal estate tax purposes under the Internal Revenue Code,
7.23increased by the value of any property in which the decedent had a qualifying income interest
7.24for life and for which an election was made under section 291.03, subdivision 1d, for
7.25Minnesota estate tax purposes, but was not made for federal estate tax purposes.
7.26    (3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986,
7.27as amended through December 31, 2018 2020.
7.28    (4) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
7.29excluding therefrom any property included in the estate which has its situs outside Minnesota,
7.30and (b) including any property omitted from the federal gross estate which is includable in
7.31the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
8.1    (5) "Nonresident decedent" means an individual whose domicile at the time of death
8.2was not in Minnesota.
8.3    (6) "Personal representative" means the executor, administrator or other person appointed
8.4by the court to administer and dispose of the property of the decedent. If there is no executor,
8.5administrator or other person appointed, qualified, and acting within this state, then any
8.6person in actual or constructive possession of any property having a situs in this state which
8.7is included in the federal gross estate of the decedent shall be deemed to be a personal
8.8representative to the extent of the property and the Minnesota estate tax due with respect
8.9to the property.
8.10    (7) "Resident decedent" means an individual whose domicile at the time of death was
8.11in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and (d), apply
8.12to determinations of domicile under this chapter.
8.13    (8) "Situs of property" means, with respect to:
8.14    (i) real property, the state or country in which it is located;
8.15    (ii) tangible personal property, the state or country in which it was normally kept or
8.16located at the time of the decedent's death or for a gift of tangible personal property within
8.17three years of death, the state or country in which it was normally kept or located when the
8.18gift was executed;
8.19    (iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
8.20Code, owned by a nonresident decedent and that is normally kept or located in this state
8.21because it is on loan to an organization, qualifying as exempt from taxation under section
8.22501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is
8.23deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
8.24    (iv) intangible personal property, the state or country in which the decedent was domiciled
8.25at death or for a gift of intangible personal property within three years of death, the state or
8.26country in which the decedent was domiciled when the gift was executed.
8.27    For a nonresident decedent with an ownership interest in a pass-through entity with
8.28assets that include real or tangible personal property, situs of the real or tangible personal
8.29property, including qualified works of art, is determined as if the pass-through entity does
8.30not exist and the real or tangible personal property is personally owned by the decedent. If
8.31the pass-through entity is owned by a person or persons in addition to the decedent, ownership
8.32of the property is attributed to the decedent in proportion to the decedent's capital ownership
8.33share of the pass-through entity.
9.1(9) "Pass-through entity" includes the following:
9.2(i) an entity electing S corporation status under section 1362 of the Internal Revenue
9.3Code;
9.4(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
9.5(iii) a single-member limited liability company or similar entity, regardless of whether
9.6it is taxed as an association or is disregarded for federal income tax purposes under Code
9.7of Federal Regulations, title 26, section 301.7701-3; or
9.8(iv) a trust to the extent the property is includable in the decedent's federal gross estate;
9.9but excludes
9.10(v) an entity whose ownership interest securities are traded on an exchange regulated
9.11by the Securities and Exchange Commission as a national securities exchange under section
9.126 of the Securities Exchange Act, United States Code, title 15, section 78f.
9.13EFFECTIVE DATE.This section is effective the day following final enactment, except
9.14the changes incorporated by federal changes are effective retroactively at the same time as
9.15the changes were effective for federal purposes.

9.16    Sec. 15. TEMPORARY NONCONFORMITY ADDITIONS AND SUBTRACTIONS.
9.17    Subdivision 1. Definitions. (a) For the purposes of this section, the terms in this section
9.18have the meanings given.
9.19(b) For an individual, estate, or trust:
9.20(1) "subtraction" has the meaning given in Minnesota Statutes, section 290.0132,
9.21subdivision 1, and the rules in that subdivision apply for this section; and
9.22(2) "addition" has the meaning given in Minnesota Statutes, section 290.0131, subdivision
9.231, and the rules in that subdivision apply for this section.
9.24(c) For a corporation other than an S corporation:
9.25(1) "subtraction" has the meaning given in Minnesota Statutes, section 290.0134,
9.26subdivision 1, and the rules in that subdivision apply for this section; and
9.27(2) "addition" has the meaning given in Minnesota Statutes, section 290.0133, subdivision
9.281, and the rules in that subdivision apply for this section.
9.29(d) The definitions in Minnesota Statutes, section 290.01, apply for this section.
10.1    Subd. 2. Temporary subtraction; federal credits for sick and family leave;
10.2individuals, estates, and trusts. (a) For an individual, estate, or trust, the amount by which
10.3gross income is increased under the following credits is a subtraction:
10.4(1) the payroll credit for required paid sick leave under section 7001 of Public Law
10.5116-127; and
10.6(2) the payroll credit for required paid family leave under section 7003 of Public Law
10.7116-127.
10.8(b) This subdivision is effective retroactively for taxable years in which a taxpayer
10.9claimed the credits described in paragraph (a).
10.10    Subd. 3. Temporary subtraction; federal credits for sick and family leave;
10.11corporations. (a) For a corporation other than an S corporation, the amount by which gross
10.12income is increased under the following credits is a subtraction:
10.13(1) the payroll credit for required paid sick leave under section 7001 of Public Law
10.14116-127; and
10.15(2) the payroll credit for required paid family leave under section 7003 of Public Law
10.16116-127.
10.17(b) This subdivision is effective retroactively for taxable years in which a taxpayer
10.18claimed the credits described in paragraph (a).
10.19    Subd. 4. Temporary subtraction; wages used to claim employee retention credit;
10.20individuals, estates, and trusts. (a) For an individual, estate, or trust, the amount disallowed
10.21under section 2301(e) of Public Law 116-136 is a subtraction.
10.22(b) This subdivision is effective retroactively for taxable years in which a taxpayer had
10.23a deduction disallowed under section 2301(e) of Public Law 116-136.
10.24    Subd. 5. Temporary subtraction; wages used to claim employee retention credit;
10.25corporations. (a) For a corporation other than an S corporation, the amount disallowed
10.26under section 2301(e) of Public Law 116-136 is a subtraction.
10.27(b) This subdivision is effective retroactively for taxable years in which a taxpayer had
10.28a deduction disallowed under section 2301(e) of Public Law 116-136.
10.29    Subd. 6. Temporary addition; business meals; individuals, estates, and trusts. (a)
10.30For an individual, estate, or trust, the amount deducted for food or beverages under section
10.31274(n)(2) of the Internal Revenue Code that exceeds the 50 percent limit in section 274(n)(1)
10.32of the Internal Revenue Code is an addition.
11.1(b) This subdivision is effective retroactively for expenses paid or incurred after December
11.231, 2020, and before January 1, 2023.
11.3    Subd. 7. Temporary addition; business meals; C corporations. (a) For a corporation
11.4other than an S corporation, the amount deducted for food or beverages under section
11.5274(n)(2) of the Internal Revenue Code that exceeds the 50 percent limit in section 274(n)(1)
11.6of the Internal Revenue Code is an addition.
11.7(b) This subdivision is effective retroactively for expenses paid or incurred after December
11.831, 2020, and before January 1, 2023.
11.9    Subd. 8. Temporary addition; PPP expenses for individuals, estates, and trusts. (a)
11.10For the purposes of this subdivision:
11.11(1) "qualifying business" means a business with paycheck protection program expenses
11.12in the taxable year that is a partnership, limited liability company, S corporation, or sole
11.13proprietorship;
11.14(2) "paycheck protection program expenses" means amounts allowed as a deduction
11.15under section 276 of the COVID-related Tax Relief Act of 2020 in Public Law 116-260;
11.16and
11.17(3) "paycheck protection program loan" means a discharged loan that is excluded from
11.18gross income under section 1106(i) of Public Law 116-136.
11.19(b) For a qualifying business, for each paycheck protection program loan, the amount
11.20of paycheck protection program expenses in excess of $350,000 is an addition.
11.21(c) This section is effective retroactively at the same time and for the same taxable years
11.22as the changes in section 276 of the COVID-related Tax Relief Act of 2020 in Public Law
11.23116-260.
11.24    Subd. 9. Temporary addition; PPP expenses for C corporations. (a) For the purposes
11.25of this subdivision:
11.26(1) "qualifying business" means a business with paycheck protection program expenses
11.27that is a corporation other than an S corporation;
11.28(2) "paycheck protection program expenses" means amounts allowed as a deduction
11.29under section 276 of the COVID-related Tax Relief Act of 2020 in Public Law 116-260;
11.30and
11.31(3) "paycheck protection program loan" means a discharged loan that is excluded from
11.32gross income under section 1106(i) of Public Law 116-136.
12.1(b) For a qualifying business, for each paycheck protection program loan, the amount
12.2of paycheck protection program expenses in excess of $350,000 is an addition.
12.3(c) This section is effective retroactively at the same time and for the same taxable years
12.4as the changes in section 276 of the COVID-related Tax Relief Act of 2020 in Public Law
12.5116-260.
12.6    Subd. 10. Nonresident apportionment; alternative minimum tax. (a) For the purpose
12.7of calculating the percentage under Minnesota Statutes, section 290.06, subdivision 2c,
12.8paragraph (e), the commissioner of revenue must increase:
12.9(1) the numerator in Minnesota Statutes, section 290.06, subdivision 2c, paragraph (e),
12.10clause (1), by the subtractions in subdivisions 2 and 4; and
12.11(2) the denominator in Minnesota Statutes, section 290.06, subdivision 2c, paragraph
12.12(e), clause (2), by the additions in subdivisions 6 and 8.
12.13(b) For the purpose of determining "income" under Minnesota Statutes, section 289A.08,
12.14the commissioner of revenue must consider the additions under subdivisions 6 and 8 and
12.15the subtractions under subdivisions 2 and 4.
12.16(c) A taxpayer's alternative minimum taxable income under Minnesota Statutes, section
12.17290.091, is increased by the amount of the taxpayer's additions under subdivisions 6 and 8,
12.18and reduced by the amount of the taxpayer's subtractions under subdivisions 2 and 4.
12.19(d) This section is effective for taxable years in which a taxpayer had an addition or
12.20subtraction under this section.
12.21EFFECTIVE DATE.This section is effective for the taxable years specified in each
12.22subdivision.

12.23    Sec. 16. WORKING FAMILY CREDIT; SPECIAL EARNED INCOME RULES
12.24FOR TAX YEAR 2020.
12.25For the purposes of calculating the credit under Minnesota Statutes, section 290.067,
12.26the commissioner of revenue must allow a taxpayer to elect to determine earned income
12.27using the rules in section 211 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020
12.28in Public Law 116-260.
12.29EFFECTIVE DATE.This section is effective for taxable years beginning after December
12.3031, 2019, and before January 1, 2021.

13.1    Sec. 17. TEMPORARY INDIVIDUAL INCOME TAX SUBTRACTION;
13.2UNEMPLOYMENT INSURANCE BENEFITS.
13.3(a) For the purposes of this section:
13.4(1) "subtraction" has the meaning given in Minnesota Statutes, section 290.0132; and
13.5(2) "unemployment compensation" has the meaning given in section 85(b) of the Internal
13.6Revenue Code.
13.7(b) For taxable years beginning after December 31, 2019, and before January 1, 2021,
13.8an individual taxpayer with adjusted gross income that is less than $150,000 is allowed a
13.9subtraction equal to the amount of unemployment compensation received in the taxable
13.10year. The subtraction is limited to $10,200, except for a joint return the subtraction is limited
13.11to $10,200 in unemployment compensation received by each spouse.
13.12EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
13.13after December 31, 2019, and before January 1, 2021.

13.14    Sec. 18. MMB REQUIRED TO SEEK TREASURY GUIDANCE.
13.15No later than June 15, 2021, the commissioner of management and budget must request
13.16guidance from the Department of Treasury about whether the revenue reductions in this
13.17article are an eligible use of funds received under section 9901 of Public Law 117-2.


13.20    Section 1. Minnesota Statutes 2020, section 41B.0391, subdivision 2, is amended to read:
13.21    Subd. 2. Tax credit for owners of agricultural assets. (a) An owner of agricultural
13.22assets may take a credit against the tax due under chapter 290 for the sale or rental of
13.23agricultural assets to a beginning farmer in the amount allocated by the authority under
13.24subdivision 4. An owner of agricultural assets is eligible for allocation of a credit equal to:
13.25(1) five percent of the lesser of the sale price or the fair market value of the agricultural
13.26asset, up to a maximum of $32,000;
13.27(2) ten percent of the gross rental income in each of the first, second, and third years of
13.28a rental agreement, up to a maximum of $7,000 per year; or
13.29(3) 15 percent of the cash equivalent of the gross rental income in each of the first,
13.30second, and third years of a share rent agreement, up to a maximum of $10,000 per year.
14.1(b) A qualifying rental agreement includes cash rent of agricultural assets or a share rent
14.2agreement. The agricultural asset must be rented at prevailing community rates as determined
14.3by the authority.
14.4(c) The credit may be claimed only after approval and certification by the authority, and
14.5is limited to the amount stated on the certificate issued under subdivision 4. An owner of
14.6agricultural assets must apply to the authority for certification and allocation of a credit, in
14.7a form and manner prescribed by the authority.
14.8(d) An owner of agricultural assets or beginning farmer may terminate a rental agreement,
14.9including a share rent agreement, for reasonable cause upon approval of the authority. If a
14.10rental agreement is terminated without the fault of the owner of agricultural assets, the tax
14.11credits shall not be retroactively disallowed. In determining reasonable cause, the authority
14.12must look at which party was at fault in the termination of the agreement. If the authority
14.13determines the owner of agricultural assets did not have reasonable cause, the owner of
14.14agricultural assets must repay all credits received as a result of the rental agreement to the
14.15commissioner of revenue. The repayment is additional income tax for the taxable year in
14.16which the authority makes its decision or when a final adjudication under subdivision 5,
14.17paragraph (a), is made, whichever is later.
14.18(e) The credit is limited to the liability for tax as computed under chapter 290 for the
14.19taxable year. If the amount of the credit determined under this section for any taxable year
14.20exceeds this limitation, the excess is a beginning farmer incentive credit carryover according
14.21to section 290.06, subdivision 37.
14.22(f) Notwithstanding subdivision 1, paragraph (c), for purposes of the credit for the sale
14.23of an agricultural asset under paragraph (a), clause (1), the family member definitional
14.24exclusions in subdivision 1, paragraph (c), clauses (4) and (5), do not apply.
14.25(g) For a qualifying sale to a family member, to qualify for the credit under paragraph
14.26(a), clause (1), the sale price of the agricultural asset must equal or exceed the assessed
14.27value of the asset as of the date of the sale. If there is no assessed value, the sale price must
14.28equal or exceed 80 percent of the fair market value of the asset as of the date of the sale.
14.29(h) For the purposes of this section, "qualifying sale to a family member" means a sale
14.30to a beginning farmer in which the beginning farmer or the beginning farmer's spouse is a
14.31family member of:
14.32(1) the owner of the agricultural asset; or
14.33(2) a partner, member, shareholder, or trustee of the owner of the agricultural asset.
15.1(i) For a sale to a socially disadvantaged farmer or rancher, the credit rate under paragraph
15.2(a), clause (1), is ten percent rather than five percent. For the purposes of this section,
15.3"socially disadvantaged farmer or rancher" has the meaning given in United States Code,
15.4title 7, section 2279(a)(5).
15.5EFFECTIVE DATE.This section is effective for taxable years beginning after December
15.631, 2020.

15.7    Sec. 2. Minnesota Statutes 2020, section 41B.0391, subdivision 4, is amended to read:
15.8    Subd. 4. Authority duties. (a) The authority shall:
15.9(1) approve and certify or recertify beginning farmers as eligible for the program under
15.10this section;
15.11(2) approve and certify or recertify owners of agricultural assets as eligible for the tax
15.12credit under subdivision 2 subject to the allocation limits in paragraph (c);
15.13(3) provide necessary and reasonable assistance and support to beginning farmers for
15.14qualification and participation in financial management programs approved by the authority;
15.15(4) refer beginning farmers to agencies and organizations that may provide additional
15.16pertinent information and assistance; and
15.17(5) notwithstanding section 41B.211, the Rural Finance Authority must share information
15.18with the commissioner of revenue to the extent necessary to administer provisions under
15.19this subdivision and section 290.06, subdivisions 37 and 38. The Rural Finance Authority
15.20must annually notify the commissioner of revenue of approval and certification or
15.21recertification of beginning farmers and owners of agricultural assets under this section.
15.22For credits under subdivision 2, the notification must include the amount of credit approved
15.23by the authority and stated on the credit certificate.
15.24(b) The certification of a beginning farmer or an owner of agricultural assets under this
15.25section is valid for the year of the certification and the two following years, after which
15.26time the beginning farmer or owner of agricultural assets must apply to the authority for
15.27recertification.
15.28(c) For credits for owners of agricultural assets allowed under subdivision 2, the authority
15.29must not allocate more than $5,000,000 for taxable years beginning after December 31,
15.302017, and before January 1, 2019, and must not allocate more than $6,000,000 for taxable
15.31years beginning after December 31, 2018. The authority must allocate credits on a first-come,
15.32first-served basis beginning on January 1 of each year, except that recertifications for the
16.1second and third years of credits under subdivision 2, paragraph (a), clauses (1) and (2),
16.2have first priority. Any amount authorized but not allocated in any taxable year does not
16.3cancel and is added to the allocation for the next taxable year.
16.4(d) For taxable years beginning after December 31, 2020, the amount available to be
16.5allocated for the taxable year under paragraph (c) is reduced by five percent. Beginning in
16.6fiscal year 2022, an amount equal to the reduction under this paragraph is annually
16.7appropriated from the general fund to the Rural Finance Authority to develop an online
16.8application system and administer the credits under this section. The amount of the
16.9appropriation for a fiscal year must be determined based on the reduction for taxable years
16.10beginning after December 31 of the previous fiscal year and before January 1 of the fiscal
16.11year of the appropriation. The Rural Finance Authority must disregard amounts carried
16.12forward from previous taxable years when calculating the reduction under this paragraph.
16.13EFFECTIVE DATE.This section is effective for taxable years beginning after December
16.1431, 2020.

16.15    Sec. 3. Minnesota Statutes 2020, section 116J.8737, subdivision 5, is amended to read:
16.16    Subd. 5. Credit allowed. (a) A qualified investor or qualified fund is eligible for a credit
16.17equal to 25 percent of the qualified investment in a qualified small business. Investments
16.18made by a pass-through entity qualify for a credit only if the entity is a qualified fund. The
16.19commissioner must not allocate more than $10,000,000 in credits to qualified investors or
16.20qualified funds for the taxable years listed in paragraph (i). For each taxable year, 50 percent
16.21must be allocated to credits for qualified investments in qualified greater Minnesota
16.22businesses and minority-owned, women-owned, or veteran-owned qualified small businesses
16.23in Minnesota. Any portion of a taxable year's credits that is reserved for qualified investments
16.24in greater Minnesota businesses and minority-owned, women-owned, or veteran-owned
16.25qualified small businesses in Minnesota that is not allocated by September 30 of the taxable
16.26year is available for allocation to other credit applications beginning on October 1. Any
16.27portion of a taxable year's credits that is not allocated by the commissioner does not cancel
16.28and may be carried forward to subsequent taxable years until all credits have been allocated.
16.29(b) The commissioner may not allocate more than a total maximum amount in credits
16.30for a taxable year to a qualified investor for the investor's cumulative qualified investments
16.31as an individual qualified investor and as an investor in a qualified fund; for married couples
16.32filing joint returns the maximum is $250,000, and for all other filers the maximum is
16.33$125,000. The commissioner may not allocate more than a total of $1,000,000 in credits
16.34over all taxable years for qualified investments in any one qualified small business.
17.1(c) The commissioner may not allocate a credit to a qualified investor either as an
17.2individual qualified investor or as an investor in a qualified fund if, at the time the investment
17.3is proposed:
17.4(1) the investor is an officer or principal of the qualified small business; or
17.5(2) the investor, either individually or in combination with one or more members of the
17.6investor's family, owns, controls, or holds the power to vote 20 percent or more of the
17.7outstanding securities of the qualified small business.
17.8A member of the family of an individual disqualified by this paragraph is not eligible for a
17.9credit under this section. For a married couple filing a joint return, the limitations in this
17.10paragraph apply collectively to the investor and spouse. For purposes of determining the
17.11ownership interest of an investor under this paragraph, the rules under section 267(c) and
17.12267(e) of the Internal Revenue Code apply.
17.13(d) Applications for tax credits for 2010 must be made available on the department's
17.14website by September 1, 2010, and the department must begin accepting applications by
17.15September 1, 2010. Applications for subsequent years must be made available by November
17.161 of the preceding year.
17.17(e) Qualified investors and qualified funds must apply to the commissioner for tax credits.
17.18Tax credits must be allocated to qualified investors or qualified funds in the order that the
17.19tax credit request applications are filed with the department. The commissioner must approve
17.20or reject tax credit request applications within 15 days of receiving the application. The
17.21investment specified in the application must be made within 60 days of the allocation of
17.22the credits. If the investment is not made within 60 days, the credit allocation is canceled
17.23and available for reallocation. A qualified investor or qualified fund that fails to invest as
17.24specified in the application, within 60 days of allocation of the credits, must notify the
17.25commissioner of the failure to invest within five business days of the expiration of the
17.2660-day investment period.
17.27(f) All tax credit request applications filed with the department on the same day must
17.28be treated as having been filed contemporaneously. If two or more qualified investors or
17.29qualified funds file tax credit request applications on the same day, and the aggregate amount
17.30of credit allocation claims exceeds the aggregate limit of credits under this section or the
17.31lesser amount of credits that remain unallocated on that day, then the credits must be allocated
17.32among the qualified investors or qualified funds who filed on that day on a pro rata basis
17.33with respect to the amounts claimed. The pro rata allocation for any one qualified investor
17.34or qualified fund is the product obtained by multiplying a fraction, the numerator of which
18.1is the amount of the credit allocation claim filed on behalf of a qualified investor and the
18.2denominator of which is the total of all credit allocation claims filed on behalf of all
18.3applicants on that day, by the amount of credits that remain unallocated on that day for the
18.4taxable year.
18.5(g) A qualified investor or qualified fund, or a qualified small business acting on their
18.6behalf, must notify the commissioner when an investment for which credits were allocated
18.7has been made, and the taxable year in which the investment was made. A qualified fund
18.8must also provide the commissioner with a statement indicating the amount invested by
18.9each investor in the qualified fund based on each investor's share of the assets of the qualified
18.10fund at the time of the qualified investment. After receiving notification that the investment
18.11was made, the commissioner must issue credit certificates for the taxable year in which the
18.12investment was made to the qualified investor or, for an investment made by a qualified
18.13fund, to each qualified investor who is an investor in the fund. The certificate must state
18.14that the credit is subject to revocation if the qualified investor or qualified fund does not
18.15hold the investment in the qualified small business for at least three years, consisting of the
18.16calendar year in which the investment was made and the two following years. The three-year
18.17holding period does not apply if:
18.18(1) the investment by the qualified investor or qualified fund becomes worthless before
18.19the end of the three-year period;
18.20(2) 80 percent or more of the assets of the qualified small business is sold before the end
18.21of the three-year period;
18.22(3) the qualified small business is sold before the end of the three-year period;
18.23(4) the qualified small business's common stock begins trading on a public exchange
18.24before the end of the three-year period; or
18.25    (5) the qualified investor dies before the end of the three-year period.
18.26(h) The commissioner must notify the commissioner of revenue of credit certificates
18.27issued under this section.
18.28(i) The credit allowed under this subdivision is effective for each of the following taxable
18.29years: taxable years beginning after December 31, 2020, and before January 1, 2023.
18.30(1) taxable years beginning after December 31, 2018, and before January 1, 2020; and
18.31(2) taxable years beginning after December 31, 2020, and before January 1, 2022.
18.32EFFECTIVE DATE.This section is effective the day following final enactment.

19.1    Sec. 4. Minnesota Statutes 2020, section 116J.8737, subdivision 12, is amended to read:
19.2    Subd. 12. Sunset. This section expires for taxable years beginning after December 31,
19.32021 2022, except that reporting requirements under subdivision 6 and revocation of credits
19.4under subdivision 7 remain in effect through 2023 2024 for qualified investors and qualified
19.5funds, and through 2025 2026 for qualified small businesses, reporting requirements under
19.6subdivision 9 remain in effect through 2021 2022, and the appropriation in subdivision 11
19.7remains in effect through 2025 2026.
19.8EFFECTIVE DATE.This section is effective the day following final enactment.

19.9    Sec. 5. [116U.27] FILM PRODUCTION CREDIT.
19.10    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
19.11the meanings given.
19.12(b) "Allocation certificate" means a certificate issued by the commissioner to a taxpayer
19.13upon receipt of an initial application for a credit for a project that has not yet been completed.
19.14(c) "Application" means the application for a credit under subdivision 4.
19.15(d) "Commissioner" means the commissioner of employment and economic development.
19.16(e) "Credit certificate" means a certificate issued by the commissioner upon submission
19.17of the cost verification report in subdivision 4, paragraph (e).
19.18(f) "Eligible production costs" means eligible production costs as defined in section
19.19116U.26, paragraph (b), clause (1), incurred in Minnesota that are directly attributable to
19.20the production of a film project in Minnesota.
19.21(g) "Film" has the meaning given in section 116U.26, paragraph (b), clause (2).
19.22(h) "Project" means a film:
19.23(1) that includes the promotion of Minnesota;
19.24(2) for which the taxpayer has expended at least $1,000,000 in the taxable year for
19.25eligible production costs; and
19.26(3) to the extent practicable, that employs Minnesota residents.
19.27(i) "Promotion of Minnesota" or "promotion" means visible display of a static or animated
19.28logo, approved by the commissioner and lasting approximately five seconds, that promotes
19.29Minnesota within its presentation and all promotional trailers worldwide in the end credits
19.30before the below-the-line crew crawl for the life of the project.
20.1    Subd. 2. Credit allowed. A taxpayer is eligible for a credit up to 25 percent of eligible
20.2production costs paid in a taxable year. A taxpayer may only claim a credit if the taxpayer
20.3was issued a credit certificate under subdivision 4.
20.4    Subd. 3. Credit assignable. A taxpayer who is eligible for a credit under this subdivision
20.5may assign the credit, in whole or in part, to another taxpayer, who is then allowed the credit
20.6under section 290.06, subdivision 39, or 297I.20, subdivision 4. An assignment is not valid
20.7unless the assignee notifies the commissioner within 30 days of the date that the assignment
20.8is made. The commissioner shall prescribe the forms necessary for notifying the
20.9commissioner of the assignment of a credit certificate and for claiming a credit by assignment.
20.10A credit must be assigned for at least 75 percent of the credit amount subject to assignment.
20.11A credit may be assigned at any time, provided that, for an assignment of a credit carryover
20.12under section 290.06, subdivision 39, paragraph (b), only the unused amount of the carryover
20.13is assigned.
20.14    Subd. 4. Applications; allocations. (a) To qualify for a credit under this section, a
20.15taxpayer must submit to the commissioner an initial application for a credit in the form
20.16prescribed by the commissioner, in consultation with the commissioner of revenue.
20.17(b) Upon approving an application for a credit that meets the requirements of this section,
20.18the commissioner shall issue allocation certificates that:
20.19(1) verify eligibility for the credit;
20.20(2) state the amount of credit anticipated for the eligible project, with the credit amount
20.21up to 25 percent of eligible project costs; and
20.22(3) state the taxable year in which the credit is allocated.
20.23The commissioner must consult with Minnesota Film and Television prior to issuing an
20.24allocation certificate.
20.25(c) The commissioner must not issue allocation certificates for more than $10,000,000
20.26of credits each year. If the entire amount is not allocated in that taxable year, any remaining
20.27amount is available for allocation for the four following taxable years until the entire
20.28allocation has been made. The commissioner must not award any credits for taxable years
20.29beginning after December 31, 2024, and any unallocated amounts cancel on that date.
20.30(d) The commissioner must allocate credits on a first-come, first-served basis.
20.31(e) Upon completion of a project, the taxpayer shall submit to the commissioner a report
20.32prepared by an independent certified public accountant licensed in the state of Minnesota
20.33to verify the amount of eligible production costs related to the project. The report must be
21.1prepared in accordance with generally accepted accounting principles. Upon receipt and
21.2review of the cost verification report, the commissioner shall determine the final amount
21.3of eligible production costs and issue a credit certificate to the taxpayer. The credit may not
21.4exceed the anticipated credit amount on the allocation certificate. If the credit is less than
21.5the anticipated amount on the allocation credit, the difference is returned to the amount
21.6available for allocation under paragraph (c). To claim the credit under section 290.06,
21.7subdivision 39, or 297I.20, subdivision 4, a taxpayer must include a copy of the certificate
21.8as part of the taxpayer's return.
21.9    Subd. 5. Report required. By March 15, 2024, the commissioner, in consultation with
21.10the commissioner of revenue, must provide a report to the chairs and ranking minority
21.11members of the legislative committees with jurisdiction over economic development and
21.12taxes. The report must comply with sections 3.195 and 3.197, and must detail the following:
21.13(1) the amount of credits earned in each taxable year;
21.14(2) the number of applications received and approved for the credit;
21.15(3) the types of projects eligible for the credit;
21.16(4) the total economic impact of the credit in Minnesota, including the number of jobs
21.17resulting from the credit; and
21.18(5) any other information the commissioner, in consultation with the commissioner of
21.19revenue, deems necessary for purposes of claiming and administering the credit.
21.20    Subd. 6. Expiration. This section expires January 1, 2025, for taxable years beginning
21.21after December 31, 2024.
21.22EFFECTIVE DATE.This section is effective for taxable years beginning after December
21.2331, 2020, and before January 1, 2025.

21.24    Sec. 6. Minnesota Statutes 2020, section 289A.08, subdivision 7, is amended to read:
21.25    Subd. 7. Composite income tax returns for nonresident partners, shareholders, and
21.26beneficiaries. (a) The commissioner may allow a partnership with nonresident partners to
21.27file a composite return and to pay the tax on behalf of nonresident partners who have no
21.28other Minnesota source income. This composite return must include the names, addresses,
21.29Social Security numbers, income allocation, and tax liability for the nonresident partners
21.30electing to be covered by the composite return.
21.31(b) The computation of a partner's tax liability must be determined by multiplying the
21.32income allocated to that partner by the highest rate used to determine the tax liability for
22.1individuals under section 290.06, subdivision 2c. Nonbusiness deductions, standard
22.2deductions, or personal exemptions are not allowed.
22.3(c) The partnership must submit a request to use this composite return filing method for
22.4nonresident partners. The requesting partnership must file a composite return in the form
22.5prescribed by the commissioner of revenue. The filing of a composite return is considered
22.6a request to use the composite return filing method.
22.7(d) The electing partner must not have any Minnesota source income other than the
22.8income from the partnership and other electing partnerships. If it is determined that the
22.9electing partner has other Minnesota source income, the inclusion of the income and tax
22.10liability for that partner under this provision will not constitute a return to satisfy the
22.11requirements of subdivision 1. The tax paid for the individual as part of the composite return
22.12is allowed as a payment of the tax by the individual on the date on which the composite
22.13return payment was made. If the electing nonresident partner has no other Minnesota source
22.14income, filing of the composite return is a return for purposes of subdivision 1.
22.15(e) This subdivision does not negate the requirement that an individual pay estimated
22.16tax if the individual's liability would exceed the requirements set forth in section 289A.25.
22.17The individual's liability to pay estimated tax is, however, satisfied when the partnership
22.18pays composite estimated tax in the manner prescribed in section 289A.25.
22.19(f) If an electing partner's share of the partnership's gross income from Minnesota sources
22.20is less than the filing requirements for a nonresident under this subdivision, the tax liability
22.21is zero. However, a statement showing the partner's share of gross income must be included
22.22as part of the composite return.
22.23(g) The election provided in this subdivision is only available to a partner who has no
22.24other Minnesota source income and who is either (1) a full-year nonresident individual or
22.25(2) a trust or estate that does not claim a deduction under either section 651 or 661 of the
22.26Internal Revenue Code.
22.27(h) A corporation defined in section 290.9725 and its nonresident shareholders may
22.28make an election under this paragraph. The provisions covering the partnership apply to
22.29the corporation and the provisions applying to the partner apply to the shareholder.
22.30(i) Estates and trusts distributing current income only and the nonresident individual
22.31beneficiaries of the estates or trusts may make an election under this paragraph. The
22.32provisions covering the partnership apply to the estate or trust. The provisions applying to
22.33the partner apply to the beneficiary.
23.1(j) For the purposes of this subdivision, "income" means the partner's share of federal
23.2adjusted gross income from the partnership modified by the additions provided in section
23.3290.0131, subdivisions 8 to 10 and, 16, and 19 to 23, and the subtractions provided in: (1)
23.4section 290.0132, subdivision 9, to the extent the amount is assignable or allocable to
23.5Minnesota under section 290.17; and (2) section 290.0132, subdivision subdivisions 14,
23.630, and 31. The subtraction allowed under section 290.0132, subdivision 9, is only allowed
23.7on the composite tax computation to the extent the electing partner would have been allowed
23.8the subtraction.
23.9EFFECTIVE DATE.This section is effective for taxable years beginning after December
23.1031, 2020, except that the provisions relating to section 290.0131, subdivisions 20 and 21,
23.11are effective retroactively for taxable years beginning after December 31, 2017, and the
23.12provisions relating to section 290.0131, subdivision 19, and section 290.0132, subdivisions
23.1330 and 31, are effective retroactively for taxable years beginning after December 31, 2018.

23.14    Sec. 7. Minnesota Statutes 2020, section 289A.08, is amended by adding a subdivision to
23.15read:
23.16    Subd. 7a. Pass-through entity tax. (a) For the purposes of this subdivision, the following
23.17terms have the meanings given:
23.18(1) "income" has the meaning given in subdivision 7, paragraph (j), except that the
23.19provisions that apply to a partnership apply to a qualifying entity and the provisions that
23.20apply to a partner apply to a qualifying owner. The income of both a resident and nonresident
23.21qualifying owner is allocated and assigned to this state as provided for nonresident partners
23.22and shareholders under section 290.17;
23.23(2) "qualifying owner" means a resident or nonresident individual, estate, or trust that
23.24is a partner, member, or shareholder of a qualifying entity; and
23.25(3) "qualifying entity" means a partnership, limited liability company, or corporation
23.26organized under subchapter S of the Internal Revenue Code for federal income tax purposes,
23.27including a qualified subsidiary also organized under subchapter S of the Internal Revenue
23.28Code. Qualifying entity does not include a partnership, limited liability company, or
23.29corporation that has a partnership, limited liability company, or corporation as a partner,
23.30member, or shareholder.
23.31(b) A qualifying entity may elect to file a return and pay the pass-through entity tax
23.32imposed under paragraph (c). The election:
24.1(1) must be made on or before the due date or extended due date of the qualifying entity's
24.2pass-through entity tax return;
24.3(2) may only be made by qualifying owners who hold more than a 50 percent ownership
24.4interest in a qualifying entity; and
24.5(3) is binding on all qualifying owners who have an ownership interest in the qualifying
24.6entity.
24.7(c) Subject to the election in paragraph (b), a pass-through entity tax is imposed on a
24.8qualifying entity in an amount equal to the sum of the tax liability of each qualifying owner.
24.9(d) The amount of a qualifying owner's tax liability under paragraph (c) is the amount
24.10of the qualifying owner's income multiplied by the tax rates and brackets used to determine
24.11the tax liability for married individuals filing separate returns, estates, and trusts under
24.12section 290.06, subdivision 2c. When making this determination:
24.13(1) nonbusiness deductions, standard deductions, or personal exemptions are not allowed;
24.14and
24.15(2) a credit or deduction is allowed only to the extent allowed to the qualifying owner.
24.16(e) The amount of each credit and deduction used to determine a qualifying owner's tax
24.17liability under paragraph (d) must also be used to determine that qualifying owner's individual
24.18income tax liability under chapter 290.
24.19(f) This subdivision does not negate the requirement that a qualifying owner pay estimated
24.20tax if the qualifying owner's tax liability would exceed the requirements set forth in section
24.21289A.25. The qualifying owner's liability to pay estimated tax on the qualifying owner's
24.22tax liability as determined under paragraph (d) is, however, satisfied when the qualifying
24.23entity pays estimated tax in the manner prescribed in section 289A.25 for composite estimated
24.24tax.
24.25(g) A qualifying owner's adjusted basis in the interest in the qualifying entity, and the
24.26treatment of distributions, is determined as if the election to pay the pass-through entity tax
24.27under paragraph (b) is not made.
24.28(h) To the extent not inconsistent with this subdivision, for purposes of this chapter, a
24.29pass-through entity tax return must be treated as a composite return and a qualifying entity
24.30filing a pass-through entity tax return must be treated as a partnership filing a composite
24.31return.
25.1(i) The provisions of subdivision 17 apply to the election to pay the pass-through entity
25.2tax under this subdivision.
25.3(j) If a nonresident qualifying owner of a qualifying entity making the election to file
25.4and pay the tax under this subdivision has no other Minnesota source income, filing of the
25.5pass-through entity tax return is a return for purposes of subdivision 1, provided that the
25.6nonresident qualifying owner must not have any Minnesota source income other than the
25.7income from the qualifying entity and other electing qualifying entities. If it is determined
25.8that the nonresident qualifying owner has other Minnesota source income, the inclusion of
25.9the income and tax liability for that owner under this provision will not constitute a return
25.10to satisfy the requirements of subdivision 1. The tax paid for the individual as part of the
25.11pass-through entity tax return is allowed as a payment of the tax by the individual on the
25.12date on which the pass-through entity tax return payment was made.
25.13EFFECTIVE DATE.This section is effective for taxable years beginning after December
25.1431, 2020.

25.15    Sec. 8. Minnesota Statutes 2020, section 289A.08, subdivision 11, is amended to read:
25.16    Subd. 11. Information included in income tax return. (a) The return must state:
25.17    (1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the address
25.18of the taxpayer in the same name or names and same address as the taxpayer has used in
25.19making the taxpayer's income tax return to the United States;
25.20    (2) the date or dates of birth of the taxpayer or taxpayers;
25.21    (3) the following information:
25.22    (i) the Social Security number of the taxpayer, or taxpayers, if a Social Security number
25.23has been issued by the United States with respect to the taxpayers; or
25.24    (ii) the individual tax identification number of the taxpayer, or taxpayers, if a Social
25.25Security number has not been issued by the United States with respect to the taxpayers, as
25.26allowed under section 290.0671; and
25.27    (4) the amount of the taxable income of the taxpayer as it appears on the federal return
25.28for the taxable year to which the Minnesota state return applies.
25.29    (b) The taxpayer must attach to the taxpayer's Minnesota state income tax return a copy
25.30of the federal income tax return that the taxpayer has filed or is about to file for the period.
25.31EFFECTIVE DATE.This section is effective for taxable years beginning after December
25.3231, 2020.

26.1    Sec. 9. Minnesota Statutes 2020, section 290.01, is amended by adding a subdivision to
26.2read:
26.3    Subd. 7c. Resident trust. (a) "Resident trust" means a trust, except a grantor type trust,
26.4which has sufficient relevant connections with Minnesota during the applicable tax year to
26.5be permissibly taxed, consistent with due process, as a resident trust. Relevant connections
26.6with Minnesota include but are not limited to the following:
26.7(1) one or more of the trustees, fiduciaries, nonfiduciary service providers, settlors,
26.8grantors, or beneficiaries of the trust are residents or part-year residents of Minnesota;
26.9(2) tangible or intangible assets making up any part of the trust are located in Minnesota;
26.10(3) any part of the administration of the trust took place in Minnesota;
26.11(4) the laws of Minnesota are specifically made applicable to the trust or to the parties
26.12to the trust, whether by choice of law or by operation of law;
26.13(5) the trust was created by a will of a decedent who at death was domiciled in Minnesota;
26.14(6) the trust and the will under which it was created were probated in Minnesota or were
26.15otherwise approved or enforced by Minnesota's courts; and
26.16(7) Minnesota's courts have a continuing supervisory or other existing relationship with
26.17the trust.
26.18(b) The term "grantor type trust" means a trust where the income or gains of the trust
26.19are taxable to the grantor or others treated as substantial owners under sections 671 to 678
26.20of the Internal Revenue Code.
26.21(c) The term "administration of the trust" means the performance of any administrative
26.22function for the trust, including but not limited to the following:
26.23(1) investing of trust assets;
26.24(2) distributing of trust assets;
26.25(3) conducting trust business;
26.26(4) conducting any litigation or other legal proceedings;
26.27(5) conducting administrative services, including but not limited to record keeping and
26.28the preparation and filing of tax returns;
26.29(6) making fiduciary decisions, including but not limited to decisions regarding any of
26.30the administrative functions listed in this paragraph; and
27.1(7) official keeping of books and records of the trust, including but not limited to the
27.2original minutes of trustee meetings and the original trust instruments, are located in
27.3Minnesota.
27.4EFFECTIVE DATE.This section is effective for taxable years beginning after December
27.531, 2020.

27.6    Sec. 10. Minnesota Statutes 2020, section 290.0122, subdivision 8, is amended to read:
27.7    Subd. 8. Losses. A taxpayer is allowed a deduction for losses. The deduction equals the
27.8amount allowed under sections 165(d) and 165(h) of the Internal Revenue Code, disregarding
27.9the limitation on personal casualty losses in paragraph (h)(5). section 165(a) of the Internal
27.10Revenue Code, including the limitation provided in section 67(b)(3) of the Internal Revenue
27.11Code, for the following:
27.12(1) losses described in paragraphs (2) and (3) of section 165(c) of the Internal Revenue
27.13Code, including the provisions of section 165(h) of the Internal Revenue Code but
27.14disregarding paragraph (h)(5); and
27.15(2) losses described in section 165(d) of the Internal Revenue Code.
27.16EFFECTIVE DATE.This section is effective the day following final enactment, except
27.17that the reference to paragraph (2) of section 165(c) of the Internal Revenue Code is effective
27.18retroactively for taxable years beginning after December 31, 2018.

27.19    Sec. 11. Minnesota Statutes 2020, section 290.0131, is amended by adding a subdivision
27.20to read:
27.21    Subd. 22. Previously taxed deferred foreign income. The amount received by a resident
27.22or part-year resident that is excluded from federal adjusted gross income or federal taxable
27.23income under section 959 of the Internal Revenue Code, because the amount was previously
27.24included under sections 951A or 965 of the Internal Revenue Code, is an addition.
27.25EFFECTIVE DATE.This section is effective for taxable years beginning after December
27.2631, 2020.

27.27    Sec. 12. Minnesota Statutes 2020, section 290.0131, is amended by adding a subdivision
27.28to read:
27.29    Subd. 23. Income attributable to domestic production activities of cooperatives. The
27.30amount of the deduction allowable under section 199A(g) of the Internal Revenue Code is
27.31an addition.
28.1EFFECTIVE DATE.This section is effective for taxable years beginning after December
28.231, 2020.

28.3    Sec. 13. Minnesota Statutes 2020, section 290.0132, subdivision 27, is amended to read:
28.4    Subd. 27. Deferred foreign income. The amount of deferred foreign income recognized
28.5because of under section 965 of the Internal Revenue Code is a subtraction.
28.6EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
28.7after December 31, 2015, except the changes incorporated by federal changes are effective
28.8retroactively at the same time the changes became effective for federal purposes.

28.9    Sec. 14. Minnesota Statutes 2020, section 290.0133, subdivision 6, is amended to read:
28.10    Subd. 6. Special deductions. The amount of any special deductions under sections 241
28.11to 247, and 250, and 965 of the Internal Revenue Code is an addition.
28.12EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
28.13after December 31, 2015, except that the changes incorporated by federal changes are
28.14effective retroactively at the same time the changes became effective for federal purposes.

28.15    Sec. 15. Minnesota Statutes 2020, section 290.0133, is amended by adding a subdivision
28.16to read:
28.17    Subd. 16. Previously taxed deferred foreign income. The amount received by a
28.18corporation that is excluded from gross income under section 959 of the Internal Revenue
28.19Code, because the amount was previously included under sections 951A or 965 of the
28.20Internal Revenue Code, is an addition.
28.21EFFECTIVE DATE.This section is effective for taxable years beginning after December
28.2231, 2020.

28.23    Sec. 16. Minnesota Statutes 2020, section 290.0133, is amended by adding a subdivision
28.24to read:
28.25    Subd. 17. Income attributable to domestic production activities of cooperatives. The
28.26amount of the deduction allowable under section 199A(g) of the Internal Revenue Code is
28.27an addition.
28.28EFFECTIVE DATE.This section is effective for taxable years beginning after December
28.2931, 2020.

29.1    Sec. 17. Minnesota Statutes 2020, section 290.0134, subdivision 18, is amended to read:
29.2    Subd. 18. Deferred foreign income. The amount of deferred foreign income recognized
29.3because of under section 965 of the Internal Revenue Code is a subtraction.
29.4EFFECTIVE DATE.This section is effective for taxable years beginning after December
29.531, 2020.

29.6    Sec. 18. Minnesota Statutes 2020, section 290.06, subdivision 2c, is amended to read:
29.7    Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income taxes
29.8imposed by this chapter upon married individuals filing joint returns and surviving spouses
29.9as defined in section 2(a) of the Internal Revenue Code must be computed by applying to
29.10their taxable net income the following schedule of rates:
29.11    (1) On the first $38,770 $42,800, 5.35 percent;
29.12    (2) On all over $38,770 $42,800, but not over $154,020 $154,010, 6.8 percent;
29.13    (3) On all over $154,020 $154,010, but not over $269,010 $276,200, 7.85 percent;
29.14(4) On all over $269,010 $276,200, but not over $1,000,000, 9.85 percent.;
29.15(5) On all over $1,000,000, 11.15 percent.
29.16    Married individuals filing separate returns, estates, and trusts must compute their income
29.17tax by applying the above rates to their taxable income, except that the income brackets
29.18will be one-half of the above amounts after the adjustment required in subdivision 2d.
29.19    (b) The income taxes imposed by this chapter upon unmarried individuals must be
29.20computed by applying to taxable net income the following schedule of rates:
29.21    (1) On the first $26,520 $29,270, 5.35 percent;
29.22    (2) On all over $26,520 $29,270, but not over $87,110 $86,620, 6.8 percent;
29.23    (3) On all over $87,110 $86,620, but not over $161,720 $166,040, 7.85 percent;
29.24(4) On all over $161,720 $166,040, but not over $500,000, 9.85 percent.;
29.25(5) On all over $500,000, 11.15 percent.
29.26    (c) The income taxes imposed by this chapter upon unmarried individuals qualifying as
29.27a head of household as defined in section 2(b) of the Internal Revenue Code must be
29.28computed by applying to taxable net income the following schedule of rates:
29.29    (1) On the first $32,650 $36,030, 5.35 percent;
30.1    (2) On all over $32,650 $36,030, but not over $131,190 $131,230, 6.8 percent;
30.2    (3) On all over $131,190 $131,230, but not over $214,980 $220,730, 7.85 percent;
30.3(4) On all over $214,980 $220,730, but not over $750,000, 9.85 percent.;
30.4(5) On all over $750,000, 11.15 percent.
30.5    (d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax
30.6of any individual taxpayer whose taxable net income for the taxable year is less than an
30.7amount determined by the commissioner must be computed in accordance with tables
30.8prepared and issued by the commissioner of revenue based on income brackets of not more
30.9than $100. The amount of tax for each bracket shall be computed at the rates set forth in
30.10this subdivision, provided that the commissioner may disregard a fractional part of a dollar
30.11unless it amounts to 50 cents or more, in which case it may be increased to $1.
30.12    (e) An individual who is not a Minnesota resident for the entire year must compute the
30.13individual's Minnesota income tax as provided in this subdivision. After the application of
30.14the nonrefundable credits provided in this chapter, the tax liability must then be multiplied
30.15by a fraction in which:
30.16    (1) the numerator is the individual's Minnesota source federal adjusted gross income as
30.17defined in section 62 of the Internal Revenue Code and increased by:
30.18    (i) the additions required under sections 290.0131, subdivisions 2, 6, 8 to 10, 16, and
30.1917, and 19 to 23, and 290.0137, paragraph (a); and reduced by
30.20    (ii) the Minnesota assignable portion of the subtraction for United States government
30.21interest under section 290.0132, subdivision 2, the subtractions under sections 290.0132,
30.22subdivisions 9, 10, 14, 15, 17, 18, and 27, 30, and 31, and 290.0137, paragraph (c), after
30.23applying the allocation and assignability provisions of section 290.081, clause (a), or 290.17;
30.24and
30.25    (2) the denominator is the individual's federal adjusted gross income as defined in section
30.2662 of the Internal Revenue Code, increased by:
30.27    (i) the additions required under sections 290.0131, subdivisions 2, 6, 8 to 10, 16, and
30.2817, and 19 to 23, and 290.0137, paragraph (a); and reduced by
30.29    (ii) the subtractions under sections 290.0132, subdivisions 2, 9, 10, 14, 15, 17, 18, and
30.3027, 30, and 31, and 290.0137, paragraph (c).
30.31EFFECTIVE DATE.This section is effective for taxable years beginning after December
30.3231, 2020.

31.1    Sec. 19. Minnesota Statutes 2020, section 290.06, subdivision 2d, is amended to read:
31.2    Subd. 2d. Inflation adjustment of brackets. The commissioner shall annually adjust
31.3the minimum and maximum dollar amounts for each rate bracket for which a tax is imposed
31.4in subdivision 2c as provided in section 270C.22. The statutory year is taxable year 2019
31.52021. The rate applicable to any rate bracket must not be changed. The dollar amounts
31.6setting forth the tax shall be adjusted to reflect the changes in the rate brackets. The rate
31.7brackets as adjusted must be rounded to the nearest $10 amount. If the rate bracket ends in
31.8$5, it must be rounded up to the nearest $10 amount. The commissioner shall determine the
31.9rate bracket for married filing separate returns after this adjustment is done. The rate bracket
31.10for married filing separate must be one-half of the rate bracket for married filing joint.
31.11EFFECTIVE DATE.This section is effective for taxable years beginning after December
31.1231, 2021.

31.13    Sec. 20. Minnesota Statutes 2020, section 290.06, subdivision 22, is amended to read:
31.14    Subd. 22. Credit for taxes paid to another state. (a) A taxpayer who is liable for taxes
31.15based on net income to another state, as provided in paragraphs (b) through (f), upon income
31.16allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to another state
31.17if the tax is actually paid in the taxable year or a subsequent taxable year. A taxpayer who
31.18is a resident of this state pursuant to section 290.01, subdivision 7, paragraph (b), and who
31.19is subject to income tax as a resident in the state of the individual's domicile is not allowed
31.20this credit unless the state of domicile does not allow a similar credit.
31.21(b) For an individual, estate, or trust, the credit is determined by multiplying the tax
31.22payable under this chapter by the ratio derived by dividing the income subject to tax in the
31.23other state that is also subject to tax in Minnesota while a resident of Minnesota by the
31.24taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue
31.25Code, modified by the addition required by section 290.0131, subdivision 2, and the
31.26subtraction allowed by section 290.0132, subdivision 2, to the extent the income is allocated
31.27or assigned to Minnesota under sections 290.081 and 290.17.
31.28(c) If the taxpayer is an athletic team that apportions all of its income under section
31.29290.17, subdivision 5, the credit is determined by multiplying the tax payable under this
31.30chapter by the ratio derived from dividing the total net income subject to tax in the other
31.31state by the taxpayer's Minnesota taxable income.
32.1(d)(1) The credit determined under paragraph (b) or (c) shall not exceed the amount of
32.2tax so paid to the other state on the gross income earned within the other state subject to
32.3tax under this chapter; and
32.4(2) the allowance of the credit does not reduce the taxes paid under this chapter to an
32.5amount less than what would be assessed if the gross income earned within the other state
32.6were excluded from taxable net income.
32.7(e) In the case of the tax assessed on a lump-sum distribution under section 290.032, the
32.8credit allowed under paragraph (a) is the tax assessed by the other state on the lump-sum
32.9distribution that is also subject to tax under section 290.032, and shall not exceed the tax
32.10assessed under section 290.032. To the extent the total lump-sum distribution defined in
32.11section 290.032, subdivision 1, includes lump-sum distributions received in prior years or
32.12is all or in part an annuity contract, the reduction to the tax on the lump-sum distribution
32.13allowed under section 290.032, subdivision 2, includes tax paid to another state that is
32.14properly apportioned to that distribution.
32.15(f) If a Minnesota resident reported an item of income to Minnesota and is assessed tax
32.16in such other state on that same income after the Minnesota statute of limitations has expired,
32.17the taxpayer shall receive a credit for that year under paragraph (a), notwithstanding any
32.18statute of limitations to the contrary. The claim for the credit must be submitted within one
32.19year from the date the taxes were paid to the other state. The taxpayer must submit sufficient
32.20proof to show entitlement to a credit.
32.21(g) For the purposes of this subdivision, a resident shareholder of a corporation treated
32.22as an "S" corporation under section 290.9725, must be considered to have paid a tax imposed
32.23on the shareholder in an amount equal to the shareholder's pro rata share of any net income
32.24tax paid by the S corporation to another state. For the purposes of the preceding sentence,
32.25the term "net income tax" means any tax imposed on or measured by a corporation's net
32.26income.
32.27(h) For the purposes of this subdivision, a resident partner of an entity taxed as a
32.28partnership under the Internal Revenue Code must be considered to have paid a tax imposed
32.29on the partner in an amount equal to the partner's pro rata share of any net income tax paid
32.30by the partnership to another state. For purposes of the preceding sentence, the term "net
32.31income" tax means any tax imposed on or measured by a partnership's net income. For
32.32purposes of this paragraph, "partnership" includes a limited liability company and "partner"
32.33includes a member of a limited liability company.
32.34(i) For the purposes of this subdivision, "another state":
33.1(1) includes:
33.2(i) the District of Columbia; and
33.3(ii) a province or territory of Canada; but
33.4(2) excludes Puerto Rico and the several territories organized by Congress.
33.5(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a state
33.6by state basis.
33.7(k) For a tax imposed by a province or territory of Canada, the tax for purposes of this
33.8subdivision is the excess of the tax over the amount of the foreign tax credit allowed under
33.9section 27 of the Internal Revenue Code. In determining the amount of the foreign tax credit
33.10allowed, the net income taxes imposed by Canada on the income are deducted first. Any
33.11remaining amount of the allowable foreign tax credit reduces the provincial or territorial
33.12tax that qualifies for the credit under this subdivision.
33.13(l)(1) The credit allowed to a qualifying individual under this section for tax paid to a
33.14qualifying state equals the credit calculated under paragraphs (b) and (d), plus the amount
33.15calculated by multiplying:
33.16(i) the difference between the preliminary credit and the credit calculated under paragraphs
33.17(b) and (d), by
33.18(ii) the ratio derived by dividing the income subject to tax in the qualifying state that
33.19consists of compensation for performance of personal or professional services by the total
33.20amount of income subject to tax in the qualifying state.
33.21(2) If the amount of the credit that a qualifying individual is eligible to receive under
33.22clause (1) for tax paid to a qualifying state exceeds the tax due under this chapter before
33.23the application of the credit calculated under clause (1), the commissioner shall refund the
33.24excess to the qualifying individual. An amount sufficient to pay the refunds required by this
33.25subdivision is appropriated to the commissioner from the general fund.
33.26    (3) For purposes of this paragraph, "preliminary credit" means the credit that a qualifying
33.27individual is eligible to receive under paragraphs (b) and (d) for tax paid to a qualifying
33.28state without regard to the limitation in paragraph (d), clause (2); "qualifying individual"
33.29means a Minnesota resident under section 290.01, subdivision 7, paragraph (a), who received
33.30compensation during the taxable year for the performance of personal or professional services
33.31within a qualifying state; and "qualifying state" means a state with which an agreement
33.32under section 290.081 is not in effect for the taxable year but was in effect for a taxable
33.33year beginning before January 1, 2010.
34.1EFFECTIVE DATE.This section is effective for taxable years beginning after December
34.231, 2020.

34.3    Sec. 21. Minnesota Statutes 2020, section 290.06, is amended by adding a subdivision to
34.4read:
34.5    Subd. 39. Film production credit. (a) A taxpayer, including a taxpayer to whom a credit
34.6has been assigned under section 116U.27, subdivision 3, may claim a credit against the tax
34.7imposed by this chapter equal to the amount certified on a credit certificate under section
34.8116U.27, subject to the limitations in this subdivision.
34.9(b) The credit is limited to the liability for tax, as computed under this chapter, for the
34.10taxable year. If the amount of the credit determined under this subdivision for any taxable
34.11year exceeds this limitation, the excess is a film production credit carryover to each of the
34.12five succeeding taxable years. The entire amount of the excess unused credit for the taxable
34.13year is carried first to the earliest of the taxable years to which the credit may be carried
34.14and then to each successive year to which the credit may be carried. The amount of the
34.15unused credit that may be added under this paragraph must not exceed the taxpayer's liability
34.16for tax, less any film production credit for the taxable year.
34.17(c) Credits allowed to a partnership, a limited liability company taxed as a partnership,
34.18or an S corporation are passed through to the partners, members, shareholders, or owners,
34.19respectively, pro rata to each based on the partner's, member's, shareholder's, or owner's
34.20share of the entity's assets, or as specially allocated in the organizational documents or any
34.21other executed agreement, as of the last day of the taxable year.
34.22(d) Notwithstanding the approval and certification by the commissioner of employment
34.23and economic development under section 116U.27, the commissioner may utilize any audit
34.24and examination powers under chapter 270C or 289A to the extent necessary to verify that
34.25the taxpayer is eligible for the credit and to assess the amount of any improperly claimed
34.26credit. The commissioner may only assess the original recipient of the credit certificate for
34.27the amount of improperly claimed credits. The commissioner may not assess a credit
34.28certificate transferee for any amount of improperly claimed credits, and a transferee's claim
34.29for credit is not affected by the commissioner's assessment of improperly claimed credits
34.30against the transferor.
34.31(e) This subdivision expires January 1, 2025, for taxable years beginning after December
34.3231, 2024, except that the expiration of this section does not affect the commissioner of
34.33revenue's authority to audit or power of examination and assessment for credits claimed
34.34under this subdivision.
35.1EFFECTIVE DATE.This section is effective for taxable years beginning after December
35.231, 2020, and before January 1, 2025.

35.3    Sec. 22. Minnesota Statutes 2020, section 290.06, is amended by adding a subdivision to
35.4read:
35.5    Subd. 40. Pass-through entity tax credit. (a) A qualifying owner of a qualifying entity
35.6that elects to pay the pass-through entity tax under section 289A.08, subdivision 7a, may
35.7claim a credit against the tax due under this chapter equal to the amount of the owner's tax
35.8liability as calculated under section 289A.08, subdivision 7a, paragraph (d).
35.9(b) If the amount of the credit the taxpayer may claim under this subdivision exceeds
35.10the taxpayer's tax liability under this chapter, the commissioner of revenue shall refund the
35.11excess to the taxpayer. The amount necessary to pay the claim for the refund provided in
35.12this subdivision is appropriated from the general fund to the commissioner of revenue.
35.13(c) For purposes of this subdivision, "qualifying entity," "qualifying owner," and "tax
35.14liability" have the meanings given in section 289A.08, subdivision 7a, paragraphs (a) and
35.15(d).
35.16EFFECTIVE DATE.This section is effective for taxable years beginning after December
35.1731, 2020.

35.18    Sec. 23. Minnesota Statutes 2020, section 290.0671, subdivision 1, is amended to read:
35.19    Subdivision 1. Credit allowed. (a) An individual who is a resident of Minnesota is
35.20allowed a credit against the tax imposed by this chapter equal to a percentage of earned
35.21income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the
35.22Internal Revenue Code, except that:.
35.23(b) A taxpayer who is a resident of Minnesota and is otherwise eligible for the credit
35.24under section 32 of the Internal Revenue Code may qualify for the credit under this section
35.25under one or more of the following exceptions:
35.26(1) a taxpayer with the taxpayer had no qualifying children who has and attained the
35.27age of 21, but not attained the age of 65, before the close of the taxable year and is otherwise
35.28eligible for a credit under section 32 of the Internal Revenue Code may also receive a credit;
35.29and
35.30(2) a taxpayer who is otherwise eligible for a credit under section 32 of the Internal
35.31Revenue Code remains eligible for the credit even if the taxpayer otherwise qualifies for a
36.1credit under this section and the taxpayer's earned income or adjusted gross income exceeds
36.2the income limitation under section 32 of the Internal Revenue Code.; or
36.3(3) the taxpayer does not meet the requirements of section 32(m) of the Internal Revenue
36.4Code but provides an individual taxpayer identification number.
36.5(b) (c) For individuals with no qualifying children, the credit equals 3.9 5 percent of the
36.6first $7,150 $8,000 of earned income. The credit is reduced by 2.0 percent of earned income
36.7or adjusted gross income, whichever is greater, in excess of the phaseout threshold, but in
36.8no case is the credit less than zero.
36.9(c) (d) For individuals with one qualifying child, the credit equals 9.35 percent of the
36.10first $11,950 $12,270 of earned income. The credit is reduced by 6.0 percent of earned
36.11income or adjusted gross income, whichever is greater, in excess of the phaseout threshold,
36.12but in no case is the credit less than zero.
36.13(d) (e) For individuals with two qualifying children, the credit equals 11 percent of the
36.14first $19,600 $20,120 of earned income. The credit is reduced by 10.5 percent of earned
36.15income or adjusted gross income, whichever is greater, in excess of the phaseout threshold,
36.16but in no case is the credit less than zero.
36.17(e) (f) For individuals with three or more qualifying children, the credit equals 12.5
36.18percent of the first $20,000 $20,530 of earned income. The credit is reduced by 10.5 percent
36.19of earned income or adjusted gross income, whichever is greater, in excess of the phaseout
36.20threshold, but in no case is the credit less than zero.
36.21(f) (g) For a part-year resident, the credit must be allocated based on the percentage
36.22calculated under section 290.06, subdivision 2c, paragraph (e).
36.23(g) (h) For a person who was a resident for the entire tax year and has earned income
36.24not subject to tax under this chapter, including income excluded under section 290.0132,
36.25subdivision 10, the credit must be allocated based on the ratio of federal adjusted gross
36.26income reduced by the earned income not subject to tax under this chapter over federal
36.27adjusted gross income. For purposes of this paragraph, the following clauses are not
36.28considered "earned income not subject to tax under this chapter":
36.29(1) the subtractions for military pay under section 290.0132, subdivisions 11 and 12;
36.30(2) the exclusion of combat pay under section 112 of the Internal Revenue Code; and
36.31(3) income derived from an Indian reservation by an enrolled member of the reservation
36.32while living on the reservation.
37.1(h) (i) For the purposes of this section, the phaseout threshold equals:
37.2(1) $14,570 $14,960 for married taxpayers filing joint returns with no qualifying children;
37.3(2) $8,730 $8,960 for all other taxpayers with no qualifying children;
37.4(3) $28,610 $29,380 for married taxpayers filing joint returns with one qualifying child;
37.5(4) $22,770 $23,380 for all other taxpayers with one qualifying child;
37.6(5) $32,840 $33,720 for married taxpayers filing joint returns with two qualifying
37.7children;
37.8(6) $27,000 $27,720 for all other taxpayers with two qualifying children;
37.9(7) $33,140 $34,030 for married taxpayers filing joint returns with three or more
37.10qualifying children; and
37.11(8) $27,300 $28,030 for all other taxpayers with three or more qualifying children.
37.12(i) (j) The commissioner shall construct tables showing the amount of the credit at various
37.13income levels and make them available to taxpayers. The tables shall follow the schedule
37.14contained in this subdivision, except that the commissioner may graduate the transition
37.15between income brackets.
37.16EFFECTIVE DATE.This section is effective for taxable years beginning after December
37.1731, 2020.

37.18    Sec. 24. Minnesota Statutes 2020, section 290.0671, subdivision 1a, is amended to read:
37.19    Subd. 1a. Definitions. (a) For purposes of this section, the following terms "Qualifying
37.20child," and have the meanings given.
37.21(b) "Earned income," have has the meanings meaning given in section 32(c) of the
37.22Internal Revenue Code, and the term "adjusted gross income" has the meaning given in
37.23section 62 of the Internal Revenue Code.
37.24(c) "Earned income of the lesser-earning spouse" has the meaning given in section
37.25290.0675, subdivision 1, paragraph (d).
37.26(d) "Qualifying child" has the meaning given in section 32(c) of the Internal Revenue
37.27Code, except that the requirements of section 32(m) of the Internal Revenue Code do not
37.28apply for the purposes of determining a qualifying child if the taxpayer provides an individual
37.29taxpayer identification number.
38.1EFFECTIVE DATE.This section is effective for taxable years beginning after December
38.231, 2020.

38.3    Sec. 25. Minnesota Statutes 2020, section 290.0671, subdivision 7, is amended to read:
38.4    Subd. 7. Inflation adjustment. The commissioner shall annually adjust the earned
38.5income amounts used to calculate the credit and the phase-out thresholds in subdivision 1
38.6as provided in section 270C.22. The statutory year is taxable year 2019 2021.

38.7    Sec. 26. Minnesota Statutes 2020, section 290.0674, subdivision 2a, is amended to read:
38.8    Subd. 2a. Income. (a) For purposes of this section, "income" means the sum of the
38.9following:
38.10(1) federal adjusted gross income as defined in section 62 of the Internal Revenue Code;
38.11and
38.12(2) the sum of the following amounts to the extent not included in clause (1):
38.13(i) all nontaxable income;
38.14(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
38.15paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
38.16carryover allowed under section 469(b) of the Internal Revenue Code;
38.17(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
38.18solvent individual excluded from gross income under section 108(g) of the Internal Revenue
38.19Code;
38.20(iv) cash public assistance and relief;
38.21(v) any pension or annuity (including railroad retirement benefits, all payments received
38.22under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
38.23which was not exclusively funded by the claimant or spouse, or which was funded exclusively
38.24by the claimant or spouse and which funding payments were excluded from federal adjusted
38.25gross income in the years when the payments were made;
38.26(vi) interest received from the federal or a state government or any instrumentality or
38.27political subdivision thereof;
38.28(vii) workers' compensation;
38.29(viii) nontaxable strike benefits;
39.1(ix) the gross amounts of payments received in the nature of disability income or sick
39.2pay as a result of accident, sickness, or other disability, whether funded through insurance
39.3or otherwise;
39.4(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
39.51986, as amended through December 31, 1995;
39.6(xi) contributions made by the claimant to an individual retirement account, including
39.7a qualified voluntary employee contribution; simplified employee pension plan;
39.8self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
39.9the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
39.10Revenue Code;
39.11(xii) nontaxable scholarship or fellowship grants;
39.12(xiii) the amount of deduction allowed under section 199 199A(g) of the Internal Revenue
39.13Code;
39.14(xiv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
39.15Code;
39.16(xv) the amount deducted for tuition expenses under section 222 of the Internal Revenue
39.17Code; and
39.18(xvi) the amount deducted for certain expenses of elementary and secondary school
39.19teachers under section 62(a)(2)(D) of the Internal Revenue Code.
39.20In the case of an individual who files an income tax return on a fiscal year basis, the
39.21term "federal adjusted gross income" means federal adjusted gross income reflected in the
39.22fiscal year ending in the next calendar year. Federal adjusted gross income may not be
39.23reduced by the amount of a net operating loss carryback or carryforward or a capital loss
39.24carryback or carryforward allowed for the year.
39.25(b) "Income" does not include:
39.26(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
39.27(2) amounts of any pension or annuity that were exclusively funded by the claimant or
39.28spouse if the funding payments were not excluded from federal adjusted gross income in
39.29the years when the payments were made;
39.30(3) surplus food or other relief in kind supplied by a governmental agency;
39.31(4) relief granted under chapter 290A;
40.1(5) child support payments received under a temporary or final decree of dissolution or
40.2legal separation; and
40.3(6) restitution payments received by eligible individuals and excludable interest as
40.4defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
40.5Public Law 107-16.
40.6EFFECTIVE DATE.This section is effective for taxable years beginning after December
40.731, 2020.

40.8    Sec. 27. Minnesota Statutes 2020, section 290.0681, subdivision 10, is amended to read:
40.9    Subd. 10. Sunset. This section expires after fiscal year 2021 2029, except that the office's
40.10authority to issue credit certificates under subdivision 4 based on allocation certificates that
40.11were issued before fiscal year 2022 2030 remains in effect through 2024 2032, and the
40.12reporting requirements in subdivision 9 remain in effect through the year following the year
40.13in which all allocation certificates have either been canceled or resulted in issuance of credit
40.14certificates, or 2025 2033, whichever is earlier.
40.15EFFECTIVE DATE.This section is effective the day following final enactment.

40.16    Sec. 28. Minnesota Statutes 2020, section 290.0682, is amended to read:
40.17290.0682 STUDENT LOAN CREDIT.
40.18    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
40.19the meanings given.
40.20(b) "Adjusted gross income" means federal adjusted gross income as defined in section
40.2162 of the Internal Revenue Code.
40.22(c) "Earned income" has the meaning given in section 32(c) of the Internal Revenue
40.23Code 290.0675, subdivision 1, paragraph (b).
40.24(d) "Eligible individual" means a resident individual with one or more qualified education
40.25loans related to an undergraduate or graduate degree program at a postsecondary educational
40.26institution.
40.27(e) "Eligible loan payments" means the amount the eligible individual paid during the
40.28taxable year in principal and interest on qualified education loans.
40.29(f) "Postsecondary educational institution" means a public or nonprofit postsecondary
40.30institution eligible for state student aid under section 136A.103 or, if the institution is not
40.31located in this state, a public or nonprofit postsecondary institution participating in the
41.1federal Pell Grant program under title IV of the Higher Education Act of 1965, Public Law
41.289-329, as amended.
41.3(g) "Qualified education loan" has the meaning given in section 221 of the Internal
41.4Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual.
41.5    Subd. 2. Credit allowed. (a) An eligible individual is allowed a credit against the tax
41.6due under this chapter.
41.7(b) The credit for an eligible individual equals the least of:
41.8(1) eligible loan payments minus ten percent of an amount equal to adjusted gross income
41.9in excess of $10,000, but in no case less than zero;
41.10(2) the earned income for the taxable year of the eligible individual, if any;
41.11(3) the sum of:
41.12(i) the interest portion of eligible loan payments made during the taxable year; and
41.13(ii) ten percent of the original loan amount of all qualified education loans of the eligible
41.14individual; or
41.15(4) $500.
41.16(c) For a part-year resident, the credit must be allocated based on the percentage calculated
41.17under section 290.06, subdivision 2c, paragraph (e).
41.18(d) In the case of a married couple, each spouse is eligible for the credit in this section.
41.19For the purposes of paragraph (b), for married taxpayers filing joint returns, each spouse's
41.20adjusted gross income equals the spouse's percentage share of the couple's earned income,
41.21multiplied by the couple's combined adjusted gross income.
41.22    Subd. 3. Credit refundable; appropriation. (a) If the amount of credit which a claimant
41.23is eligible to receive under this section exceeds the claimant's tax liability under this chapter,
41.24the commissioner shall refund the excess to the claimant.
41.25(b) An amount sufficient to pay the refunds required by this section is appropriated to
41.26the commissioner from the general fund.
41.27EFFECTIVE DATE.This section is effective for taxable years beginning after December
41.2831, 2020.

42.1    Sec. 29. Minnesota Statutes 2020, section 290.0685, subdivision 1, is amended to read:
42.2    Subdivision 1. Credit allowed. (a) An eligible individual is allowed a credit against the
42.3tax imposed by this chapter equal to $2,000 for each birth for which a certificate of birth
42.4resulting in stillbirth has been issued under section 144.2151 stillbirth. The credit under this
42.5section is allowed only in the taxable year in which the stillbirth occurred and if the child
42.6would have been a dependent of the taxpayer as defined in section 152 of the Internal
42.7Revenue Code.
42.8(b) For a nonresident or part-year resident, the credit must be allocated based on the
42.9percentage calculated under section 290.06, subdivision 2c, paragraph (e).
42.10EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
42.11after December 31, 2015.

42.12    Sec. 30. Minnesota Statutes 2020, section 290.0685, is amended by adding a subdivision
42.13to read:
42.14    Subd. 1a. Definitions. (a) For purposes of this section, the following terms have the
42.15meanings given, unless the context clearly indicates otherwise.
42.16(b) "Certificate of birth" means the printed certificate of birth resulting in stillbirth issued
42.17under section 144.2151 or for a birth occurring in another state or country a similar certificate
42.18issued under that state's or country's law.
42.19(c) "Eligible individual" means an individual who is:
42.20(1)(i) a resident; or
42.21(ii) the nonresident spouse of a resident who is a member of armed forces of the United
42.22States or the United Nations; and
42.23(2)(i) the individual who gave birth resulting in stillbirth and is listed as a parent on the
42.24certificate of birth;
42.25(ii) if no individual meets the requirements of clause (i) for a stillbirth that occurs in this
42.26state, then the first parent listed on the certificate of birth resulting in still birth; or
42.27(iii) the individual who gave birth resulting in stillbirth for a birth outside of this state
42.28for which no certificate of birth was issued.
42.29(d) "Stillbirth" means a birth for which a fetal death report would be required under
42.30section 144.222, subdivision 1, if the birth occurred in this state.
43.1EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
43.2after December 31, 2015.

43.3    Sec. 31. Minnesota Statutes 2020, section 290.091, subdivision 2, is amended to read:
43.4    Subd. 2. Definitions. For purposes of the tax imposed by this section, the following
43.5terms have the meanings given.
43.6    (a) "Alternative minimum taxable income" means the sum of the following for the taxable
43.7year:
43.8    (1) the taxpayer's federal alternative minimum taxable income as defined in section
43.955(b)(2) of the Internal Revenue Code;
43.10    (2) the taxpayer's itemized deductions allowed in computing federal alternative minimum
43.11taxable income, but excluding:
43.12    (i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
43.13    (ii) the medical expense deduction;
43.14    (iii) the casualty, theft, and disaster loss deduction; and
43.15    (iv) the impairment-related work expenses of a person with a disability;
43.16    (3) for depletion allowances computed under section 613A(c) of the Internal Revenue
43.17Code, with respect to each property (as defined in section 614 of the Internal Revenue Code),
43.18to the extent not included in federal alternative minimum taxable income, the excess of the
43.19deduction for depletion allowable under section 611 of the Internal Revenue Code for the
43.20taxable year over the adjusted basis of the property at the end of the taxable year (determined
43.21without regard to the depletion deduction for the taxable year);
43.22    (4) to the extent not included in federal alternative minimum taxable income, the amount
43.23of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue
43.24Code determined without regard to subparagraph (E);
43.25    (5) to the extent not included in federal alternative minimum taxable income, the amount
43.26of interest income as provided by section 290.0131, subdivision 2;
43.27    (6) the amount of addition required by section 290.0131, subdivisions 9, 10, and 16, and
43.2819 to 23;
43.29(7) the deduction allowed under section 199A of the Internal Revenue Code, to the extent
43.30not included in the addition required under clause (6); and
44.1(8) to the extent not included in federal alternative minimum taxable income, the amount
44.2of foreign-derived intangible income deducted under section 250 of the Internal Revenue
44.3Code;
44.4    less the sum of the amounts determined under the following:
44.5    (i) interest income as defined in section 290.0132, subdivision 2;
44.6    (ii) an overpayment of state income tax as provided by section 290.0132, subdivision
44.73, to the extent included in federal alternative minimum taxable income;
44.8    (iii) the amount of investment interest paid or accrued within the taxable year on
44.9indebtedness to the extent that the amount does not exceed net investment income, as defined
44.10in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted
44.11in computing federal adjusted gross income;
44.12    (iv) amounts subtracted from federal taxable or adjusted gross income as provided by
44.13section 290.0132, subdivisions 7, 9 to 15, 17, 21, 24, and 26 to 29, 30, and 31;
44.14(v) the amount of the net operating loss allowed under section 290.095, subdivision 11,
44.15paragraph (c); and
44.16(vi) the amount allowable as a Minnesota itemized deduction under section 290.0122,
44.17subdivision 7.
44.18    In the case of an estate or trust, alternative minimum taxable income must be computed
44.19as provided in section 59(c) of the Internal Revenue Code, except alternative minimum
44.20taxable income must be increased by the addition in section 290.0131, subdivision 16.
44.21    (b) "Investment interest" means investment interest as defined in section 163(d)(3) of
44.22the Internal Revenue Code.
44.23    (c) "Net minimum tax" means the minimum tax imposed by this section.
44.24    (d) "Regular tax" means the tax that would be imposed under this chapter (without regard
44.25to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed
44.26under this chapter.
44.27    (e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income
44.28after subtracting the exemption amount determined under subdivision 3.
44.29EFFECTIVE DATE.This section is effective for taxable years beginning after December
44.3031, 2020, except that the provisions relating to section 290.0131, subdivisions 20 and 21,
44.31are effective retroactively for taxable years beginning after December 31, 2017, and the
45.1provisions relating to section 290.0131, subdivision 19, and section 290.0132, subdivisions
45.230 and 31, are effective retroactively for taxable years beginning after December 31, 2018.

45.3    Sec. 32. Minnesota Statutes 2020, section 290.17, is amended by adding a subdivision to
45.4read:
45.5    Subd. 4a. Controlled foreign corporations. (a) For purposes of applying subdivision
45.64, a controlled foreign corporation as defined in section 957 of the Internal Revenue Code
45.7is deemed to be a domestic corporation if:
45.8(1) a United States shareholder of a controlled foreign corporation is required for the
45.9taxable year to include in gross income the shareholder's global intangible low-taxed income
45.10under section 951A of the Internal Revenue Code; and
45.11(2) the controlled foreign corporation is a member of a unitary group.
45.12(b) In the event the taxpayer fails to designate the controlled foreign corporation as a
45.13member of a unitary group and the commissioner subsequently determines that the controlled
45.14foreign corporation is a member of a unitary group, the commissioner's determination is
45.15prima facie valid. The taxpayer subject to the determination has the burden of establishing
45.16the incorrectness of the determination in any related action or proceeding.
45.17(c) For purposes of imposing a tax under this chapter, the federal taxable income of a
45.18controlled foreign corporation deemed to be a domestic corporation under this subdivision
45.19must be computed as follows:
45.20(1) a profit and loss statement must be prepared in the currency in which the books of
45.21account of the controlled foreign corporation are regularly maintained;
45.22(2) except as determined by the commissioner or otherwise allowed under the Internal
45.23Revenue Code, adjustments must be made to the profit and loss statement to conform the
45.24statement to the accounting principles generally accepted in the United States for the
45.25preparation of those statements;
45.26(3) adjustments must be made to the profit and loss statement to conform it to the tax
45.27accounting standards required by the commissioner;
45.28(4) unless otherwise authorized by the commissioner, the apportionment factors and
45.29profit and loss statement of each member of the combined group must be converted into
45.30the currency in which the parent company maintains its books and records; and
45.31(5) the taxpayer's apportionment factors and profit and loss statement must be expressed
45.32in United States dollars.
46.1EFFECTIVE DATE.This section is effective for taxable years beginning after December
46.231, 2020.

46.3    Sec. 33. Minnesota Statutes 2020, section 290.17, is amended by adding a subdivision to
46.4read:
46.5    Subd. 4b. Worldwide election. (a) Taxpayer members of a unitary group, of which one
46.6or more members are deemed to be domestic corporations under subdivision 4a for the
46.7taxable year, may elect to determine each of their apportioned shares of the net business
46.8income or loss of the combined group under a worldwide election. Under the election,
46.9taxpayer members must take into account the entire income and apportionment factors of
46.10each member of the unitary group, regardless of the place where a member is incorporated
46.11or formed. Corporations or other entities incorporated or formed outside of the United States
46.12are subject to the requirements of subdivision 4a, paragraph (c), in reporting their income.
46.13(b) A worldwide election is effective only if made on a timely filed, original return for
46.14the tax year by each member of the unitary group subject to tax under this chapter.
46.15(c) A worldwide election is binding for and applies to the taxable year it is made and
46.16for the ten following taxable years.
46.17EFFECTIVE DATE.This section is effective for taxable years beginning after December
46.1831, 2020.

46.19    Sec. 34. Minnesota Statutes 2020, section 290.17, is amended by adding a subdivision to
46.20read:
46.21    Subd. 4c. Withdrawal; reinstitution. (a) The election under subdivision 4b, paragraph
46.22(a), may be withdrawn:
46.23(1) after expiration of the ten-year period in subdivision 4b, paragraph (c), provided that
46.24the withdrawal is made in writing within one year after the expiration of the election; or
46.25(2) prior to the expiration of the ten-year period, if the taxpayer members:
46.26(i) file a written withdrawal request with the commissioner;
46.27(ii) demonstrate that they would experience an extraordinary financial hardship due to
46.28increased tax arising from unforeseen changes in this state's tax statutes, laws, or policies;
46.29and
46.30(iii) receive written permission from the commissioner approving the withdrawal, which
46.31the commissioner may grant.
47.1(b) A withdrawal made under paragraph (a) is binding for ten years. If no withdrawal
47.2is properly made under paragraph (a), clause (1), the worldwide election is binding for an
47.3additional ten taxable years. If the commissioner grants written permission to withdraw
47.4under paragraph (a), clause (2), the commissioner must impose any requirement deemed
47.5necessary to prevent evasion of tax or to clearly reflect income for the election period before
47.6or after withdrawal.
47.7(c) Notwithstanding the requirement binding withdrawal for ten years under paragraph
47.8(b), the election may be reinstituted if the taxpayer members:
47.9(1) file a written reinstitution request with the commissioner;
47.10(2) demonstrate that they would experience an extraordinary hardship due to unforeseen
47.11changes in this state's tax statutes, laws, or policies; and
47.12(3) receive written permission from the commissioner approving the reinstitution, which
47.13the commissioner may grant.
47.14(d) A reinstitution under paragraph (c) is binding for a period of ten years. The withdrawal
47.15provisions of paragraph (a) apply to a reinstitution under paragraph (c), and the provisions
47.16of paragraph (c) apply to a reinstitution following a subsequent withdrawal.
47.17EFFECTIVE DATE.This section is effective for taxable years beginning after December
47.1831, 2020.

47.19    Sec. 35. Minnesota Statutes 2020, section 290.21, subdivision 9, is amended to read:
47.20    Subd. 9. Controlled foreign corporations. The net income of a domestic corporation
47.21that is included pursuant to section 951 of the Internal Revenue Code is dividend income.
47.22EFFECTIVE DATE.This section is effective the day following final enactment.

47.23    Sec. 36. Minnesota Statutes 2020, section 290.21, is amended by adding a subdivision to
47.24read:
47.25    Subd. 10. Previously taxed deferred foreign income. The amount included under
47.26section 290.0133, subdivision 16, is dividend income.
47.27EFFECTIVE DATE.This section is effective for taxable years beginning after December
47.2831, 2020.

48.1    Sec. 37. Minnesota Statutes 2020, section 290.92, subdivision 4b, is amended to read:
48.2    Subd. 4b. Withholding by partnerships. (a) A partnership shall deduct and withhold
48.3a tax as provided in paragraph (b) for nonresident individual partners based on their
48.4distributive shares of partnership income for a taxable year of the partnership.
48.5(b) The amount of tax withheld is determined by multiplying the partner's distributive
48.6share allocable to Minnesota under section 290.17, paid or credited during the taxable year
48.7by the highest rate used to determine the income tax liability for an individual under section
48.8290.06, subdivision 2c, except that the amount of tax withheld may be determined by the
48.9commissioner if the partner submits a withholding exemption certificate under subdivision
48.105.
48.11(c) The commissioner may reduce or abate the tax withheld under this subdivision if the
48.12partnership had reasonable cause to believe that no tax was due under this section.
48.13(d) Notwithstanding paragraph (a), a partnership is not required to deduct and withhold
48.14tax for a nonresident partner if:
48.15(1) the partner elects to have the tax due paid as part of the partnership's composite return
48.16under section 289A.08, subdivision 7;
48.17(2) the partner has Minnesota assignable federal adjusted gross income from the
48.18partnership of less than $1,000; or
48.19(3) the partnership is liquidated or terminated, the income was generated by a transaction
48.20related to the termination or liquidation, and no cash or other property was distributed in
48.21the current or prior taxable year;
48.22(4) the distributive shares of partnership income are attributable to:
48.23(i) income required to be recognized because of discharge of indebtedness;
48.24(ii) income recognized because of a sale, exchange, or other disposition of real estate,
48.25depreciable property, or property described in section 179 of the Internal Revenue Code;
48.26or
48.27(iii) income recognized on the sale, exchange, or other disposition of any property that
48.28has been the subject of a basis reduction pursuant to section 108, 734, 743, 754, or 1017 of
48.29the Internal Revenue Code
48.30to the extent that the income does not include cash received or receivable or, if there is cash
48.31received or receivable, to the extent that the cash is required to be used to pay indebtedness
48.32by the partnership or a secured debt on partnership property; or
49.1(5) the partnership is a publicly traded partnership, as defined in section 7704(b) of the
49.2Internal Revenue Code.; or
49.3(6) the partnership has elected to pay the pass-through entity tax under section 289A.08,
49.4subdivision 7a.
49.5(e) For purposes of sections 270C.60, 289A.09, subdivision 2, 289A.20, subdivision 2,
49.6paragraph (c), 289A.50, 289A.56, 289A.60, and 289A.63, a partnership is considered an
49.7employer.
49.8(f) To the extent that income is exempt from withholding under paragraph (d), clause
49.9(4), the commissioner has a lien in an amount up to the amount that would be required to
49.10be withheld with respect to the income of the partner attributable to the partnership interest,
49.11but for the application of paragraph (d), clause (4). The lien arises under section 270C.63
49.12from the date of assessment of the tax against the partner, and attaches to that partner's share
49.13of the profits and any other money due or to become due to that partner in respect of the
49.14partnership. Notice of the lien may be sent by mail to the partnership, without the necessity
49.15for recording the lien. The notice has the force and effect of a levy under section 270C.67,
49.16and is enforceable against the partnership in the manner provided by that section. Upon
49.17payment in full of the liability subsequent to the notice of lien, the partnership must be
49.18notified that the lien has been satisfied.
49.19EFFECTIVE DATE.This section is effective for taxable years beginning after December
49.2031, 2020.

49.21    Sec. 38. Minnesota Statutes 2020, section 290.92, subdivision 4c, is amended to read:
49.22    Subd. 4c. Withholding by S corporations. (a) A corporation having a valid election in
49.23effect under section 290.9725 shall deduct and withhold a tax as provided in paragraph (b)
49.24for nonresident individual shareholders their share of the corporation's income for the taxable
49.25year.
49.26(b) The amount of tax withheld is determined by multiplying the amount of income
49.27allocable to Minnesota under section 290.17 by the highest rate used to determine the income
49.28tax liability of an individual under section 290.06, subdivision 2c, except that the amount
49.29of tax withheld may be determined by the commissioner if the shareholder submits a
49.30withholding exemption certificate under subdivision 5.
49.31(c) Notwithstanding paragraph (a), a corporation is not required to deduct and withhold
49.32tax for a nonresident shareholder, if:
50.1(1) the shareholder elects to have the tax due paid as part of the corporation's composite
50.2return under section 289A.08, subdivision 7;
50.3(2) the shareholder has Minnesota assignable federal adjusted gross income from the
50.4corporation of less than $1,000; or
50.5(3) the corporation is liquidated or terminated, the income was generated by a transaction
50.6related to the termination or liquidation, and no cash or other property was distributed in
50.7the current or prior taxable year.; or
50.8(4) the S corporation has elected to pay the pass-through entity tax under section 289A.08,
50.9subdivision 7a.
50.10(d) For purposes of sections 270C.60, 289A.09, subdivision 2, 289A.20, subdivision 2,
50.11paragraph (c), 289A.50, 289A.56, 289A.60, and 289A.63, a corporation is considered an
50.12employer.
50.13EFFECTIVE DATE.This section is effective for taxable years beginning after December
50.1431, 2020.

50.15    Sec. 39. Minnesota Statutes 2020, section 290A.03, subdivision 3, is amended to read:
50.16    Subd. 3. Income. (a) "Income" means the sum of the following:
50.17(1) federal adjusted gross income as defined in the Internal Revenue Code; and
50.18(2) the sum of the following amounts to the extent not included in clause (1):
50.19(i) all nontaxable income;
50.20(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
50.21paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
50.22carryover allowed under section 469(b) of the Internal Revenue Code;
50.23(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
50.24solvent individual excluded from gross income under section 108(g) of the Internal Revenue
50.25Code;
50.26(iv) cash public assistance and relief;
50.27(v) any pension or annuity (including railroad retirement benefits, all payments received
50.28under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
50.29which was not exclusively funded by the claimant or spouse, or which was funded exclusively
50.30by the claimant or spouse and which funding payments were excluded from federal adjusted
50.31gross income in the years when the payments were made;
51.1(vi) interest received from the federal or a state government or any instrumentality or
51.2political subdivision thereof;
51.3(vii) workers' compensation;
51.4(viii) nontaxable strike benefits;
51.5(ix) the gross amounts of payments received in the nature of disability income or sick
51.6pay as a result of accident, sickness, or other disability, whether funded through insurance
51.7or otherwise;
51.8(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
51.91986, as amended through December 31, 1995;
51.10(xi) contributions made by the claimant to an individual retirement account, including
51.11a qualified voluntary employee contribution; simplified employee pension plan;
51.12self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
51.13the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
51.14Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
51.15the claimant and spouse;
51.16(xii) to the extent not included in federal adjusted gross income, distributions received
51.17by the claimant or spouse from a traditional or Roth style retirement account or plan;
51.18(xiii) nontaxable scholarship or fellowship grants;
51.19(xiv) alimony received to the extent not included in the recipient's income;
51.20(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
51.21Code;
51.22(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
51.23Code; and
51.24(xvii) the amount deducted for certain expenses of elementary and secondary school
51.25teachers under section 62(a)(2)(D) of the Internal Revenue Code.; and
51.26(xviii) the amount of deduction allowed under section 199A(g) of the Internal Revenue
51.27Code.
51.28In the case of an individual who files an income tax return on a fiscal year basis, the
51.29term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
51.30the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
51.31by the amount of a net operating loss carryback or carryforward or a capital loss carryback
51.32or carryforward allowed for the year.
52.1(b) "Income" does not include:
52.2(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
52.3(2) amounts of any pension or annuity which was exclusively funded by the claimant
52.4or spouse and which funding payments were not excluded from federal adjusted gross
52.5income in the years when the payments were made;
52.6(3) to the extent included in federal adjusted gross income, amounts contributed by the
52.7claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
52.8the retirement base amount reduced by the amount of contributions excluded from federal
52.9adjusted gross income, but not less than zero;
52.10(4) surplus food or other relief in kind supplied by a governmental agency;
52.11(5) relief granted under this chapter;
52.12(6) child support payments received under a temporary or final decree of dissolution or
52.13legal separation;
52.14(7) restitution payments received by eligible individuals and excludable interest as
52.15defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
52.16Public Law 107-16; or
52.17(8) alimony paid.
52.18(c) The sum of the following amounts may be subtracted from income:
52.19(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
52.20(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
52.21(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
52.22(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
52.23(5) for the claimant's fifth dependent, the exemption amount; and
52.24(6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or
52.25before December 31 of the year for which the taxes were levied or rent paid, the exemption
52.26amount.
52.27(d) For purposes of this subdivision, the following terms have the meanings given:
52.28(1) "exemption amount" means the exemption amount under section 290.0121,
52.29subdivision 1, paragraph (b), for the taxable year for which the income is reported;
53.1(2) "retirement base amount" means the deductible amount for the taxable year for the
53.2claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
53.3inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
53.4to whether the claimant or spouse claimed a deduction; and
53.5(3) "traditional or Roth style retirement account or plan" means retirement plans under
53.6sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.
53.7EFFECTIVE DATE.This section is effective for taxable years beginning after December
53.831, 2020.

53.9    Sec. 40. Minnesota Statutes 2020, section 297I.20, is amended by adding a subdivision
53.10to read:
53.11    Subd. 4. Film production credit. (a) A taxpayer may claim a credit against the premiums
53.12tax imposed under this chapter equal to the amount indicated on the credit certificate
53.13statement issued to the company under section 116U.27. If the amount of the credit exceeds
53.14the taxpayer's liability for tax under this chapter, the excess is a credit carryover to each of
53.15the five succeeding taxable years. The entire amount of the excess unused credit for the
53.16taxable year must be carried first to the earliest of the taxable years to which the credit may
53.17be carried and then to each successive year to which the credit may be carried. This credit
53.18does not affect the calculation of fire state aid under section 477B.03 and police state aid
53.19under section 477C.03.
53.20(b) This subdivision expires January 1, 2025, for taxable years beginning after and
53.21premiums received after December 31, 2024.
53.22EFFECTIVE DATE.This section is effective for taxable years beginning after and for
53.23premiums received after December 31, 2020, and before January 1, 2025.

53.24    Sec. 41. CLARIFICATION OF SECTION 179 EXPENSING CONFORMITY.
53.25For taxable years beginning after December 31, 2019, no addition is required under
53.26Minnesota Statutes, sections 290.0131, subdivision 10, and 290.0133, subdivision 12, for
53.27property placed in service in taxable years beginning before January 1, 2020, including the
53.28following:
53.29(1) the addition for carryover amounts pursuant to section 179(b)(3) of the Internal
53.30Revenue Code for property placed in service in taxable years beginning before January 1,
53.312020; and
54.1(2) the addition for property placed in service in taxable years beginning before January
54.21, 2020, resulting from being a shareholder or partner in an S-corporation or partnership
54.3with a taxable year that began before January 1, 2020.
54.4EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
54.5after December 31, 2019.

54.6    Sec. 42. REPEALER.
54.7(a) Minnesota Statutes 2020, sections 290.01, subdivision 19i; and 290.0131, subdivision
54.818, are repealed effective retroactively for taxable years beginning after December 31, 2015.
54.9(b) Minnesota Statutes 2020, section 290.01, subdivision 7b, is repealed effective for
54.10taxable years beginning after December 31, 2020.


54.13    Section 1. Minnesota Statutes 2020, section 270C.445, subdivision 6, is amended to read:
54.14    Subd. 6. Enforcement; administrative order; penalties; cease and desist. (a) The
54.15commissioner may impose an administrative penalty of not more than $1,000 per violation
54.16of subdivision 3 or 5, or section 270C.4451, provided that a penalty may not be imposed
54.17for any conduct for which a tax preparer penalty is imposed under section 289A.60,
54.18subdivision 13. The commissioner may terminate a tax preparer's authority to transmit
54.19returns electronically to the state, if the commissioner determines the tax preparer engaged
54.20in a pattern and practice of violating this section. Imposition of a penalty under this paragraph
54.21is subject to the contested case procedure under chapter 14. The commissioner shall collect
54.22the penalty in the same manner as the income tax. There is no right to make a claim for
54.23refund under section 289A.50 of the penalty imposed under this paragraph. Penalties imposed
54.24under this paragraph are public data.
54.25(b) In addition to the penalty under paragraph (a), if the commissioner determines that
54.26a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may
54.27issue an administrative order to the tax preparer requiring the tax preparer to cease and
54.28desist from committing the violation. The administrative order may include an administrative
54.29penalty provided in paragraph (a).
54.30(c) If the commissioner issues an administrative order under paragraph (b), the
54.31commissioner must send the order to the tax preparer addressed to the last known address
54.32of the tax preparer.
55.1(d) A cease and desist order under paragraph (b) must:
55.2(1) describe the act, conduct, or practice committed and include a reference to the law
55.3that the act, conduct, or practice violates; and
55.4(2) provide notice that the tax preparer may request a hearing as provided in this
55.5subdivision.
55.6(e) Within 30 days after the commissioner issues an administrative order under paragraph
55.7(b), the tax preparer may request a hearing to review the commissioner's action. The request
55.8for hearing must be made in writing and must be served on the commissioner at the address
55.9specified in the order. The hearing request must specifically state the reasons for seeking
55.10review of the order. The date on which a request for hearing is served by mail is the postmark
55.11date on the envelope in which the request for hearing is mailed.
55.12(f) If a tax preparer does not timely request a hearing regarding an administrative order
55.13issued under paragraph (b), the order becomes a final order of the commissioner and is not
55.14subject to review by any court or agency.
55.15(g) If a tax preparer timely requests a hearing regarding an administrative order issued
55.16under paragraph (b), the hearing must be commenced within ten days after the commissioner
55.17receives the request for a hearing.
55.18(h) A hearing timely requested under paragraph (e) is subject to the contested case
55.19procedure under chapter 14, as modified by this subdivision. The administrative law judge
55.20must issue a report containing findings of fact, conclusions of law, and a recommended
55.21order within ten days after the completion of the hearing, the receipt of late-filed exhibits,
55.22or the submission of written arguments, whichever is later.
55.23(i) Within five days of the date of the administrative law judge's report issued under
55.24paragraph (h), any party aggrieved by the administrative law judge's report may submit
55.25written exceptions and arguments to the commissioner. Within 15 days after receiving the
55.26administrative law judge's report, the commissioner must issue an order vacating, modifying,
55.27or making final the administrative order.
55.28(j) The commissioner and the tax preparer requesting a hearing may by agreement
55.29lengthen any time periods prescribed in paragraphs (g) to (i).
55.30(k) An administrative order issued under paragraph (b) is in effect until it is modified
55.31or vacated by the commissioner or an appellate court. The administrative hearing provided
55.32by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute
55.33the exclusive remedy for a tax preparer aggrieved by the order.
56.1(l) The commissioner may impose an administrative penalty, in addition to the penalty
56.2under paragraph (a), up to $5,000 per violation of a cease and desist order issued under
56.3paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case
56.4procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under
56.5this paragraph, the tax preparer assessed the penalty may request a hearing to review the
56.6penalty order. The request for hearing must be made in writing and must be served on the
56.7commissioner at the address specified in the order. The hearing request must specifically
56.8state the reasons for seeking review of the order. The cease and desist order issued under
56.9paragraph (b) is not subject to review in a proceeding to challenge the penalty order under
56.10this paragraph. The date on which a request for hearing is served by mail is the postmark
56.11date on the envelope in which the request for hearing is mailed. If the tax preparer does not
56.12timely request a hearing, the penalty order becomes a final order of the commissioner and
56.13is not subject to review by any court or agency. A penalty imposed by the commissioner
56.14under this paragraph may be collected and enforced by the commissioner as an income tax
56.15liability. There is no right to make a claim for refund under section 289A.50 of the penalty
56.16imposed under this paragraph. A penalty imposed under this paragraph is public data.
56.17(m) If a tax preparer violates a cease and desist order issued under paragraph (b), the
56.18commissioner may terminate the tax preparer's authority to transmit returns electronically
56.19to the state. Termination under this paragraph is public data.
56.20(n) A cease and desist order issued under paragraph (b) is public data when it is a final
56.21order.
56.22(o) Notwithstanding any other law, the commissioner may impose a penalty or take other
56.23action under this subdivision against a tax preparer, with respect to a return, within the
56.24period to assess tax on that return as provided by section sections 289A.38 to 289A.382.
56.25(p) Notwithstanding any other law, the imposition of a penalty or any other action against
56.26a tax preparer under this subdivision, other than with respect to a return, must be taken by
56.27the commissioner within five years of the violation of statute.
56.28EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
56.29after December 31, 2017, except that for partnerships that make an election under Code of
56.30Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
56.31and applies to the same tax periods to which the election relates.

57.1    Sec. 2. Minnesota Statutes 2020, section 289A.31, subdivision 1, is amended to read:
57.2    Subdivision 1. Individual income, fiduciary income, mining company, corporate
57.3franchise, and entertainment taxes. (a) Individual income, fiduciary income, mining
57.4company, and corporate franchise taxes, and interest and penalties, must be paid by the
57.5taxpayer upon whom the tax is imposed, except in the following cases:
57.6(1) the tax due from a decedent for that part of the taxable year in which the decedent
57.7died during which the decedent was alive and the taxes, interest, and penalty due for the
57.8prior years must be paid by the decedent's personal representative, if any. If there is no
57.9personal representative, the taxes, interest, and penalty must be paid by the transferees, as
57.10defined in section 270C.58, subdivision 3, to the extent they receive property from the
57.11decedent;
57.12(2) the tax due from an infant or other incompetent person must be paid by the person's
57.13guardian or other person authorized or permitted by law to act for the person;
57.14(3) the tax due from the estate of a decedent must be paid by the estate's personal
57.15representative;
57.16(4) the tax due from a trust, including those within the definition of a corporation, as
57.17defined in section 290.01, subdivision 4, must be paid by a trustee; and
57.18(5) the tax due from a taxpayer whose business or property is in charge of a receiver,
57.19trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge
57.20of the business or property so far as the tax is due to the income from the business or property.
57.21(b) Entertainment taxes are the joint and several liability of the entertainer and the
57.22entertainment entity. The payor is liable to the state for the payment of the tax required to
57.23be deducted and withheld under section 290.9201, subdivision 7, and is not liable to the
57.24entertainer for the amount of the payment.
57.25(c) The taxes imposed under sections 289A.35, paragraph (b), 289A.382, subdivision
57.263, and 290.0922 on partnerships are the joint and several liability of the partnership and the
57.27general partners.
57.28EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
57.29after December 31, 2017, except that for partnerships that make an election under Code of
57.30Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
57.31and applies to the same tax periods to which the election relates.

58.1    Sec. 3. Minnesota Statutes 2020, section 289A.37, subdivision 2, is amended to read:
58.2    Subd. 2. Erroneous refunds. (a) Except as provided in paragraph (b), an erroneous
58.3refund occurs when the commissioner issues a payment to a person that exceeds the amount
58.4the person is entitled to receive under law. An erroneous refund is considered an
58.5underpayment of tax on the date issued.
58.6(b) To the extent that the amount paid does not exceed the amount claimed by the
58.7taxpayer, an erroneous refund does not include the following:
58.8(1) any amount of a refund or credit paid pursuant to a claim for refund filed by a
58.9taxpayer, including but not limited to refunds of claims made under section 290.06,
58.10subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068;
58.11290.0681; or 290.0692; or chapter 290A; or
58.12(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a
58.13taxpayer.
58.14(c) The commissioner may make an assessment to recover an erroneous refund at any
58.15time within two years from the issuance of the erroneous refund. If all or part of the erroneous
58.16refund was induced by fraud or misrepresentation of a material fact, the assessment may
58.17be made at any time.
58.18(d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be
58.19conducted under section sections 289A.38 to 289A.382.
58.20EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
58.21after December 31, 2017, except that for partnerships that make an election under Code of
58.22Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
58.23and applies to the same tax periods to which the election relates.

58.24    Sec. 4. Minnesota Statutes 2020, section 289A.38, subdivision 7, is amended to read:
58.25    Subd. 7. Federal tax changes. (a) If the amount of income, items of tax preference,
58.26deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for any
58.27period, as reported to the Internal Revenue Service is changed or corrected by the
58.28commissioner of Internal Revenue or other officer of the United States or other competent
58.29authority, or where a renegotiation of a contract or subcontract with the United States results
58.30in a change in income, items of tax preference, deductions, credits, or withholding tax, or,
58.31in the case of estate tax, where there are adjustments to the taxable estate, the taxpayer shall
58.32report the change or correction or renegotiation results federal adjustments in writing to the
58.33commissioner. The federal adjustments report must be submitted within 180 days after the
59.1final determination date and must be in the form of either an amended Minnesota estate,
59.2withholding tax, corporate franchise tax, or income tax return conceding the accuracy of
59.3the federal determination adjustment or a letter detailing how the federal determination
59.4adjustment is incorrect or does not change the Minnesota tax. An amended Minnesota
59.5income tax return must be accompanied by an amended property tax refund return, if
59.6necessary. A taxpayer filing an amended federal tax return must also file a copy of the
59.7amended return with the commissioner of revenue within 180 days after filing the amended
59.8return.
59.9(b) For the purposes of paragraph (a), a change or correction includes any case where a
59.10taxpayer reaches a closing agreement or compromise with the Internal Revenue Service
59.11under section 7121 or 7122 of the Internal Revenue Code. In the case of a final federal
59.12adjustment arising from a partnership-level audit or an administrative adjustment request
59.13filed by a partnership under section 6227 of the Internal Revenue Code, a taxpayer must
59.14report adjustments as provided for under section 289A.382, and not this section.
59.15EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
59.16after December 31, 2017, except that for partnerships that make an election under Code of
59.17Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
59.18and applies to the same tax periods to which the election relates.

59.19    Sec. 5. Minnesota Statutes 2020, section 289A.38, subdivision 8, is amended to read:
59.20    Subd. 8. Failure to report change or correction of federal return. If a taxpayer fails
59.21to make a federal adjustments report as required by subdivision 7 or section 289A.382, the
59.22commissioner may recompute the tax, including a refund, based on information available
59.23to the commissioner. The tax may be recomputed within six years after the federal
59.24adjustments report should have been filed, notwithstanding any period of limitations to the
59.25contrary.
59.26EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
59.27after December 31, 2017, except that for partnerships that make an election under Code of
59.28Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
59.29and applies to the same tax periods to which the election relates.

59.30    Sec. 6. Minnesota Statutes 2020, section 289A.38, subdivision 9, is amended to read:
59.31    Subd. 9. Report made of change or correction of federal return. If a taxpayer is
59.32required to make a federal adjustments report under subdivision 7 or section 289A.382, and
59.33does report the change or files a copy of the amended return, the commissioner may
60.1recompute and reassess the tax due, including a refund (1) within one year after the federal
60.2adjustments report or amended return is filed with the commissioner, notwithstanding any
60.3period of limitations to the contrary, or (2) within any other applicable period stated in this
60.4section, whichever period is longer. The period provided for the carryback of any amount
60.5of loss or credit is also extended as provided in this subdivision, notwithstanding any law
60.6to the contrary. If the commissioner has completed a field audit of the taxpayer, and, but
60.7for this subdivision, the commissioner's time period to adjust the tax has expired, the
60.8additional tax due or refund is limited to only those changes that are required to be made
60.9to the return which relate to the changes made on the federal return. This subdivision does
60.10not apply to sales and use tax.
60.11For purposes of this subdivision and section 289A.42, subdivision 2, a "field audit" is
60.12the physical presence of examiners in the taxpayer's or taxpayer's representative's office
60.13conducting an examination of the taxpayer with the intention of issuing an assessment or
60.14notice of change in tax or which results in the issuing of an assessment or notice of change
60.15in tax. The examination may include inspecting a taxpayer's place of business, tangible
60.16personal property, equipment, computer systems and facilities, pertinent books, records,
60.17papers, vouchers, computer printouts, accounts, and documents.
60.18A taxpayer may make estimated payments to the commissioner of the tax expected to
60.19result from a pending audit by the Internal Revenue Service. The taxpayer may make
60.20estimated payments prior to the due date of the federal adjustments report without the
60.21taxpayer having to file the report with the commissioner. The commissioner must credit the
60.22estimated tax payments against any tax liability of the taxpayer ultimately found to be due
60.23to the commissioner. The estimated payments limit the accrual of further statutory interest
60.24on that amount. If the estimated tax payments exceed the final tax liability plus statutory
60.25interest ultimately determined to be due, the taxpayer is entitled to a refund or credit for the
60.26excess, provided the taxpayer files a federal adjustments report, or claim for refund or credit
60.27of tax, no later than one year following the final determination date.
60.28EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
60.29after December 31, 2017, except that for partnerships that make an election under Code of
60.30Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
60.31and applies to the same tax periods to which the election relates.

60.32    Sec. 7. Minnesota Statutes 2020, section 289A.38, subdivision 10, is amended to read:
60.33    Subd. 10. Incorrect determination of federal adjusted gross income. Notwithstanding
60.34any other provision of this chapter, if a taxpayer whose net income is determined under
61.1section 290.01, subdivision 19, omits from income an amount that will under the Internal
61.2Revenue Code extend the statute of limitations for the assessment of federal income taxes,
61.3or otherwise incorrectly determines the taxpayer's federal adjusted gross income resulting
61.4in adjustments by the Internal Revenue Service, then the period of assessment and
61.5determination of tax will be that under the Internal Revenue Code. When a change is made
61.6to federal income during the extended time provided under this subdivision, the provisions
61.7under subdivisions 7 to 9 and section 289A.382 regarding additional extensions apply.
61.8EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
61.9after December 31, 2017, except that for partnerships that make an election under Code of
61.10Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
61.11and applies to the same tax periods to which the election relates.

61.12    Sec. 8. [289A.381] DEFINITIONS; PARTNERSHIPS; FEDERAL ADJUSTMENTS.
61.13    Subdivision 1. Definitions relating to federal adjustments. Unless otherwise specified,
61.14the definitions in this section apply for the purposes of sections 289A.38, subdivisions 7 to
61.159, 289A.381, and 289A.382.
61.16    Subd. 2. Administrative adjustment request. "Administrative adjustment request"
61.17means an administrative adjustment request filed by a partnership under section 6227 of
61.18the Internal Revenue Code.
61.19    Subd. 3. Audited partnership. "Audited partnership" means a partnership subject to a
61.20federal adjustment resulting from a partnership-level audit.
61.21    Subd. 4. Corporate partner. "Corporate partner" means a partner that is subject to tax
61.22under section 290.02.
61.23    Subd. 5. Direct partner. "Direct partner" means a partner that holds an immediate legal
61.24ownership interest in a partnership or pass-through entity.
61.25    Subd. 6. Exempt partner. "Exempt partner" means a partner that is exempt from taxes
61.26on its net income under section 290.05, subdivision 1.
61.27    Subd. 7. Federal adjustment. "Federal adjustment" means any change in an amount
61.28calculated under the Internal Revenue Code, whether to income, gross estate, a credit, an
61.29item of preference, or any other item that is used by a taxpayer to compute a tax administered
61.30under this chapter for the reviewed year whether that change results from action by the
61.31Internal Revenue Service or other competent authority, including a partnership-level audit,
61.32or from the filing of an amended federal return, federal refund claim, or an administrative
61.33adjustment request by the taxpayer. A federal adjustment is positive to the extent that it
62.1increases taxable income as determined under section 290.01, subdivision 29, and is negative
62.2to the extent that it decreases taxable income as determined under section 290.01, subdivision
62.329.
62.4    Subd. 8. Federal adjustments report. "Federal adjustments report" includes a method
62.5or form prescribed by the commissioner for use by a taxpayer to report federal adjustments,
62.6including an amended Minnesota tax return or a uniform multistate report.
62.7    Subd. 9. Federal partnership representative. "Federal partnership representative"
62.8means the person the partnership designates for the taxable year as the partnership's
62.9representative, or the person the Internal Revenue Service has appointed to act as the
62.10partnership representative, pursuant to section 6223(a) of the Internal Revenue Code.
62.11    Subd. 10. Final determination date. "Final determination date" means:
62.12(1) for a federal adjustment arising from an audit by the Internal Revenue Service or
62.13other competent authority, the first day on which no federal adjustment arising from that
62.14audit remains to be finally determined, whether by agreement, or, if appealed or contested,
62.15by a final decision with respect to which all rights of appeal have been waived or exhausted;
62.16(2) for a federal adjustment arising from an audit or other action by the Internal Revenue
62.17Service or other competent authority, if the taxpayer filed as a member of a combined report
62.18under section 290.17, subdivision 4, the first day on which no related federal adjustments
62.19arising from that audit remain to be finally determined as described in clause (1) for the
62.20entire combined group;
62.21(3) for a federal adjustment arising from the filing of an amended federal return, a federal
62.22refund claim, or the filing by a partnership of an administrative adjustment request, the date
62.23on which the amended return, refund claim, or administrative adjustment request was filed;
62.24or
62.25(4) for agreements required to be signed by the Internal Revenue Service and the taxpayer,
62.26the date on which the last party signed the agreement.
62.27    Subd. 11. Final federal adjustment. "Final federal adjustment" means a federal
62.28adjustment after the final determination date for that federal adjustment has passed.
62.29    Subd. 12. Indirect partner. "Indirect partner" means either:
62.30(1) a partner in a partnership or pass-through entity that itself holds an immediate legal
62.31ownership interest in another partnership or pass-through entity; or
63.1(2) a partner in a partnership or pass-through entity that holds an indirect interest in
63.2another partnership or pass-through entity through another indirect partner.
63.3    Subd. 13. Partner. "Partner" means a person that holds an interest directly or indirectly
63.4in a partnership or other pass-through entity.
63.5    Subd. 14. Partnership. "Partnership" has the meaning provided under section 7701(a)(2)
63.6of the Internal Revenue Code.
63.7    Subd. 15. Partnership-level audit. "Partnership-level audit" means an examination by
63.8the Internal Revenue Service at the partnership level pursuant to subtitle F, chapter 63,
63.9subchapter C, of the Internal Revenue Code, which results in federal adjustments and
63.10adjustments to partnership-related items.
63.11    Subd. 16. Pass-through entity. "Pass-through entity" means an entity, other than a
63.12partnership, that is not subject to the tax imposed under section 290.02. The term pass-through
63.13entity includes but is not limited to S corporations, estates, and trusts other than grantor
63.14trusts.
63.15    Subd. 17. Resident partner. "Resident partner" means an individual, trust, or estate
63.16partner who is a resident of Minnesota under section 290.01, subdivision 7, 7a, or 7b, for
63.17the relevant tax period.
63.18    Subd. 18. Reviewed year. "Reviewed year" means the taxable year of a partnership that
63.19is subject to a partnership-level audit from which federal adjustments arise.
63.20    Subd. 19. Tiered partner. "Tiered partner" means any partner that is a partnership or
63.21pass-through entity.
63.22    Subd. 20. Unrelated business taxable income. "Unrelated business taxable income"
63.23has the meaning provided under section 512 of the Internal Revenue Code.
63.24EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
63.25after December 31, 2017, except that for partnerships that make an election under Code of
63.26Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
63.27and applies to the same tax periods to which the election relates.

63.28    Sec. 9. [289A.382] REPORTING AND PAYMENT REQUIREMENTS.
63.29    Subdivision 1. State partnership representative. (a) With respect to an action required
63.30or permitted to be taken by a partnership under this section, or in a proceeding under section
63.31270C.35 or 271.06, the state partnership representative for the reviewed year shall have the
64.1sole authority to act on behalf of the partnership, and its direct partners and indirect partners
64.2shall be bound by those actions.
64.3(b) The state partnership representative for the reviewed year is the partnership's federal
64.4partnership representative unless the partnership, in a form and manner prescribed by the
64.5commissioner, designates another person as its state partnership representative.
64.6    Subd. 2. Reporting and payment requirements for partnerships and tiered
64.7partners. (a) Except for when an audited partnership makes the election in subdivision 3,
64.8and except for negative federal adjustments required under federal law taken into account
64.9by the partnership in the partnership return for the adjustment or other year, all final federal
64.10adjustments of an audited partnership must comply with paragraph (b) and each direct
64.11partner of the audited partnership, other than a tiered partner, must comply with paragraph
64.12(c).
64.13(b) No later than 90 days after the final determination date, the audited partnership must:
64.14(1) file a completed federal adjustments report, including all partner-level information
64.15required under section 289A.12, subdivision 3, with the commissioner;
64.16(2) notify each of its direct partners of their distributive share of the final federal
64.17adjustments;
64.18(3) file an amended composite report for all direct partners who were included in a
64.19composite return under section 289A.08, subdivision 7, in the reviewed year, and pay the
64.20additional amount that would have been due had the federal adjustments been reported
64.21properly as required; and
64.22(4) file amended withholding reports for all direct partners who were or should have
64.23been subject to nonresident withholding under section 290.92, subdivision 4b, in the reviewed
64.24year, and pay the additional amount that would have been due had the federal adjustments
64.25been reported properly as required.
64.26(c) No later than 180 days after the final determination date, each direct partner, other
64.27than a tiered partner, that is subject to a tax administered under this chapter, other than the
64.28sales tax, must:
64.29(1) file a federal adjustments report reporting their distributive share of the adjustments
64.30reported to them under paragraph (b), clause (2); and
64.31(2) pay any additional amount of tax due as if the final federal adjustment had been
64.32properly reported, plus any penalty and interest due under this chapter, and less any credit
65.1for related amounts paid or withheld and remitted on behalf of the direct partner under
65.2paragraph (b), clauses (3) and (4).
65.3    Subd. 3. Election; partnership or tiered partners pay. (a) An audited partnership may
65.4make an election under this subdivision to pay its assessment at the entity level. If an audited
65.5partnership makes an election to pay its assessment at the entity level it must:
65.6(1) no later than 90 days after the final determination date:
65.7(i) file a completed federal adjustments report, which includes the residency information
65.8for all individual, trust, and estate direct partners and information pertaining to all other
65.9direct partners as prescribed by the commissioner; and
65.10(ii) notify the commissioner that it is making the election under this subdivision; and
65.11(2) no later than 180 days after the final determination date, pay an amount, determined
65.12as follows, in lieu of taxes on partners:
65.13(i) exclude from final federal adjustments the distributive share of these adjustments
65.14made to a direct exempt partner that is not unrelated business taxable income;
65.15(ii) exclude from final federal adjustments the distributive share of these adjustments
65.16made to a direct partner that has filed a federal adjustments report and paid the applicable
65.17tax, as required under subdivision 2, for the distributive share of adjustments reported on a
65.18federal return under section 6225(c) of the Internal Revenue Code;
65.19(iii) assign and apportion at the partnership level using sections 290.17 to 290.20 the
65.20total distributive share of the remaining final federal adjustments for the reviewed year
65.21attributed to direct corporate partners and direct exempt partners; multiply the total by the
65.22highest tax rate in section 290.06, subdivision 1, for the reviewed year; and calculate interest
65.23and penalties as applicable under this chapter;
65.24(iv) allocate at the partnership level using section 290.17, subdivision 1, the total
65.25distributive share of all final federal adjustments attributable to individual resident direct
65.26partners for the reviewed year; multiply the total by the highest tax rate in section 290.06,
65.27subdivision 2c, for the reviewed year; and calculate interest and penalties as applicable
65.28under this chapter;
65.29(v) assign and apportion at the partnership level using sections 290.17 to 290.20 the total
65.30distributive share of the remaining final federal adjustments attributable to nonresident
65.31individual direct partners and direct partners who are an estate or a trust for the reviewed
65.32year; multiply the total by the highest tax rate in section 290.06, subdivision 2c, for the
65.33reviewed year; and calculate interest and penalties as applicable under this chapter;
66.1(vi) for the total distributive share of the remaining final federal adjustments reported
66.2to tiered partners:
66.3(A) determine the amount of the adjustments that would be assigned using section 290.17,
66.4subdivision 2, paragraphs (a) to (d), excluding income or gains from intangible personal
66.5property not employed in the business of the recipient of the income or gains if the recipient
66.6of the income or gains is a resident of this state or is a resident trust or estate under section
66.7290.17, subdivision 2, paragraph (c), or apportioned using sections 290.17, subdivision 3,
66.8290.191, and 290.20; and then determine the portion of the amount that would be allocated
66.9to this state;
66.10(B) determine the amount of the adjustments that are fully sourced to the taxpayer's state
66.11of residency under section 290.17, subdivision 2, paragraph (e), and income or gains from
66.12intangible personal property not employed in the business of the recipient of the income or
66.13gains if the recipient of the income or gains is a resident of this state or is a resident trust
66.14or estate under section 290.17, subdivision 2, paragraph (c);
66.15(C) determine the portion of the amount determined in subitem (B) that can be established
66.16to be properly allocable to nonresident indirect partners or other partners not subject to tax
66.17on the adjustments; and
66.18(D) multiply the total of the amounts determined in subitems (A) and (B) reduced by
66.19the amount determined in subitem (C) by the highest tax rate in section 290.06, subdivision
66.202c, for the reviewed year, and calculate interest and penalties as applicable under this chapter;
66.21and
66.22(vii) add the amounts determined in items (iii) to (vi), and pay all applicable taxes,
66.23penalties, and interest to the commissioner.
66.24(b) An audited partnership may not make an election under this subdivision to report:
66.25(1) a federal adjustment that results in unitary business income to a corporate partner
66.26required to file as a member of a combined report under section 290.17, subdivision 4; or
66.27(2) any final federal adjustments resulting from an administrative adjustment request.
66.28(c) An audited partnership not otherwise subject to any reporting or payment obligation
66.29to this state may not make an election under this subdivision.
66.30    Subd. 4. Tiered partners and indirect partners. The direct and indirect partners of an
66.31audited partnership that are tiered partners, and all the partners of the tiered partners, that
66.32are subject to tax under chapter 290 are subject to the reporting and payment requirements
66.33contained in subdivision 2, and the tiered partners are entitled to make the elections provided
67.1in subdivision 3. The tiered partners or their partners shall make required reports and
67.2payments no later than 90 days after the time for filing and furnishing of statements to tiered
67.3partners and their partners as established under section 6226 of the Internal Revenue Code.
67.4    Subd. 5. Effects of election by partnership or tiered partner and payment of amount
67.5due. (a) Unless the commissioner determines otherwise, an election under subdivision 3 is
67.6irrevocable.
67.7(b) If an audited partnership or tiered partner properly reports and pays an amount
67.8determined in subdivision 3, the amount must be treated as paid in lieu of taxes owed by
67.9the partnership's direct partners and indirect partners, to the extent applicable, on the same
67.10final federal adjustments. The direct partners or indirect partners of the partnership who are
67.11not resident partners may not take any deduction or credit for this amount or claim a refund
67.12of the amount in this state.
67.13(c) Nothing in this subdivision precludes resident direct partners from claiming a credit
67.14against taxes paid under section 290.06 on any amounts paid by the audited partnership or
67.15tiered partners on the resident partner's behalf to another state or local tax jurisdiction.
67.16    Subd. 6. Failure of partnership or tiered partner to report or pay. Nothing in this
67.17section prevents the commissioner from assessing direct partners or indirect partners for
67.18taxes they owe, using the best information available, in the event that, for any reason, a
67.19partnership or tiered partner fails to timely make any report or payment required by this
67.20section.
67.21EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
67.22after December 31, 2017, except that for partnerships that make an election under Code of
67.23Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
67.24and applies to the same tax periods to which the election relates.

67.25    Sec. 10. Minnesota Statutes 2020, section 289A.42, is amended to read:
67.26289A.42 CONSENT TO EXTEND STATUTE.
67.27    Subdivision 1. Extension agreement. If before the expiration of time prescribed in
67.28sections 289A.38 to 289A.382 and 289A.40 for the assessment of tax or the filing of a claim
67.29for refund, both the commissioner and the taxpayer have consented in writing to the
67.30assessment or filing of a claim for refund after that time, the tax may be assessed or the
67.31claim for refund filed at any time before the expiration of the agreed-upon period. The
67.32period may be extended by later agreements in writing before the expiration of the period
68.1previously agreed upon. The taxpayer and the commissioner may also agree to extend the
68.2period for collection of the tax.
68.3    Subd. 2. Federal extensions. When a taxpayer consents to an extension of time for the
68.4assessment of federal withholding or income taxes, the period in which the commissioner
68.5may recompute the tax is also extended, notwithstanding any period of limitations to the
68.6contrary, as follows:
68.7(1) for the periods provided in section sections 289A.38, subdivisions 8 and 9, and
68.8289A.382, subdivisions 2 and 3;
68.9(2) for six months following the expiration of the extended federal period of limitations
68.10when no change is made by the federal authority. If no change is made by the federal
68.11authority, and, but for this subdivision, the commissioner's time period to adjust the tax has
68.12expired, and if the commissioner has completed a field audit of the taxpayer, no additional
68.13changes resulting in additional tax due or a refund may be made. For purposes of this
68.14subdivision, "field audit" has the meaning given it in section 289A.38, subdivision 9.
68.15EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
68.16after December 31, 2017, except that for partnerships that make an election under Code of
68.17Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
68.18and applies to the same tax periods to which the election relates.

68.19    Sec. 11. Minnesota Statutes 2020, section 289A.60, subdivision 24, is amended to read:
68.20    Subd. 24. Penalty for failure to notify of federal change. If a person fails to report to
68.21the commissioner a change or correction of the person's federal return in the manner and
68.22time prescribed in section sections 289A.38, subdivision 7, and 289A.382, there must be
68.23added to the tax an amount equal to ten percent of the amount of any underpayment of
68.24Minnesota tax attributable to the federal change.
68.25EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
68.26after December 31, 2017, except that for partnerships that make an election under Code of
68.27Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
68.28and applies to the same tax periods to which the election relates.

68.29    Sec. 12. Minnesota Statutes 2020, section 290.31, subdivision 1, is amended to read:
68.30    Subdivision 1. Partners, not partnership, subject to tax. Except as provided under
68.31section sections 289A.35, paragraph (b), and 289A.382, subdivision 3, a partnership as such
68.32shall not be subject to the income tax imposed by this chapter, but is subject to the tax
69.1imposed under section 290.0922. Persons carrying on business as partners shall be liable
69.2for income tax only in their separate or individual capacities.
69.3EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
69.4after December 31, 2017, except that for partnerships that make an election under Code of
69.5Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
69.6and applies to the same tax periods to which the election relates.

69.7    Sec. 13. Minnesota Statutes 2020, section 297F.17, subdivision 6, is amended to read:
69.8    Subd. 6. Time limit for bad debt refund. Claims for refund must be filed with the
69.9commissioner during the one-year period beginning with the timely filing of the taxpayer's
69.10federal income tax return containing the bad debt deduction that is being claimed. Claimants
69.11under this subdivision are subject to the notice requirements of section sections 289A.38,
69.12subdivision 7, and 289A.382.
69.13EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
69.14after December 31, 2017, except that for partnerships that make an election under Code of
69.15Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
69.16and applies to the same tax periods to which the election relates.

69.17    Sec. 14. Minnesota Statutes 2020, section 297G.16, subdivision 7, is amended to read:
69.18    Subd. 7. Time limit for a bad debt deduction. Claims for refund must be filed with
69.19the commissioner within one year of the filing of the taxpayer's income tax return containing
69.20the bad debt deduction that is being claimed. Claimants under this subdivision are subject
69.21to the notice requirements of section 289A.38, subdivision 7 sections 289A.38 to 289A.382.
69.22EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
69.23after December 31, 2017, except that for partnerships that make an election under Code of
69.24Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
69.25and applies to the same tax periods to which the election relates.

69.26    Sec. 15. Minnesota Statutes 2020, section 469.319, subdivision 4, is amended to read:
69.27    Subd. 4. Repayment procedures. (a) For the repayment of taxes imposed under chapter
69.28290 or 297A or local taxes collected pursuant to section 297A.99, a business must file an
69.29amended return with the commissioner of revenue and pay any taxes required to be repaid
69.30within 30 days after becoming subject to repayment under this section. The amount required
69.31to be repaid is determined by calculating the tax for the period or periods for which repayment
69.32is required without regard to the exemptions and credits allowed under section 469.315.
70.1    (b) For the repayment of taxes imposed under chapter 297B, a business must pay any
70.2taxes required to be repaid to the motor vehicle registrar, as agent for the commissioner of
70.3revenue, within 30 days after becoming subject to repayment under this section.
70.4    (c) For the repayment of property taxes, the county auditor shall prepare a tax statement
70.5for the business, applying the applicable tax extension rates for each payable year and
70.6provide a copy to the business and to the taxpayer of record. The business must pay the
70.7taxes to the county treasurer within 30 days after receipt of the tax statement. The business
70.8or the taxpayer of record may appeal the valuation and determination of the property tax to
70.9the Tax Court within 30 days after receipt of the tax statement.
70.10    (d) The provisions of chapters 270C and 289A relating to the commissioner's authority
70.11to audit, assess, and collect the tax and to hear appeals are applicable to the repayment
70.12required under paragraphs (a) and (b). The commissioner may impose civil penalties as
70.13provided in chapter 289A, and the additional tax and penalties are subject to interest at the
70.14rate provided in section 270C.40. The additional tax shall bear interest from 30 days after
70.15becoming subject to repayment under this section until the date the tax is paid. Any penalty
70.16imposed pursuant to this section shall bear interest from the date provided in section 270C.40,
70.17subdivision 3, to the date of payment of the penalty.
70.18    (e) If a property tax is not repaid under paragraph (c), the county treasurer shall add the
70.19amount required to be repaid to the property taxes assessed against the property for payment
70.20in the year following the year in which the auditor provided the statement under paragraph
70.21(c).
70.22    (f) For determining the tax required to be repaid, a reduction of a state or local sales or
70.23use tax is deemed to have been received on the date that the good or service was purchased
70.24or first put to a taxable use. In the case of an income tax or franchise tax, including the credit
70.25payable under section 469.318, a reduction of tax is deemed to have been received for the
70.26two most recent tax years that have ended prior to the date that the business became subject
70.27to repayment under this section. In the case of a property tax, a reduction of tax is deemed
70.28to have been received for the taxes payable in the year that the business became subject to
70.29repayment under this section and for the taxes payable in the prior year.
70.30    (g) The commissioner may assess the repayment of taxes under paragraph (d) any time
70.31within two years after the business becomes subject to repayment under subdivision 1, or
70.32within any period of limitations for the assessment of tax under section sections 289A.38
70.33to 289A.382, whichever period is later. The county auditor may send the statement under
71.1paragraph (c) any time within three years after the business becomes subject to repayment
71.2under subdivision 1.
71.3    (h) A business is not entitled to any income tax or franchise tax benefits, including
71.4refundable credits, for any part of the year in which the business becomes subject to
71.5repayment under this section nor for any year thereafter. Property is not exempt from tax
71.6under section 272.02, subdivision 64, for any taxes payable in the year following the year
71.7in which the property became subject to repayment under this section nor for any year
71.8thereafter. A business is not eligible for any sales tax benefits beginning with goods or
71.9services purchased or first put to a taxable use on the day that the business becomes subject
71.10to repayment under this section.
71.11EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
71.12after December 31, 2017, except that for partnerships that make an election under Code of
71.13Federal Regulations, title 26, section 301.9100-22T, this section is effective retroactively
71.14and applies to the same tax periods to which the election relates.


71.17    Section 1. Minnesota Statutes 2020, section 297A.67, is amended by adding a subdivision
71.18to read:
71.19    Subd. 38. Season ticket purchasing rights to collegiate events. The sale of a right to
71.20purchase the privilege of admission to a college or university athletic event in a preferred
71.21viewing location for a season of a particular athletic event is exempt provided that:
71.22(1) the consideration paid for the right to purchase is used entirely to support student
71.23scholarships, wellness, and academic costs;
71.24(2) the consideration paid for the right to purchase is separately stated from the admission
71.25price; and
71.26(3) the admission price is equal to or greater than the highest priced general admission
71.27ticket for the closest seat not in the preferred viewing location.
71.28EFFECTIVE DATE.This section is effective for sales and purchases made after June
71.2930, 2021.

72.1    Sec. 2. Minnesota Statutes 2020, section 297A.70, subdivision 13, is amended to read:
72.2    Subd. 13. Fund-raising sales by or for nonprofit groups. (a) The following sales by
72.3the specified organizations for fund-raising purposes are exempt, subject to the limitations
72.4listed in paragraph (b):
72.5(1) all sales made by a nonprofit organization that exists solely for the purpose of
72.6providing educational or social activities for young people primarily age 18 and under;
72.7(2) all sales made by an organization that is a senior citizen group or association of
72.8groups if (i) in general it limits membership to persons age 55 or older; (ii) it is organized
72.9and operated exclusively for pleasure, recreation, and other nonprofit purposes; and (iii) no
72.10part of its net earnings inures to the benefit of any private shareholders;
72.11(3) the sale or use of tickets or admissions to a golf tournament held in Minnesota if the
72.12beneficiary of the tournament's net proceeds qualifies as a tax-exempt organization under
72.13section 501(c)(3) of the Internal Revenue Code; and
72.14(4) sales of candy sold for fund-raising purposes by a nonprofit organization that provides
72.15educational and social activities primarily for young people age 18 and under.
72.16(b) The exemptions listed in paragraph (a) are limited in the following manner:
72.17(1) the exemption under paragraph (a), clauses (1) and (2), applies only to the first
72.18$20,000 of the gross annual receipts of the organization from fund-raising; and
72.19(2) the exemption under paragraph (a), clause (1), does not apply if the sales are derived
72.20from admission charges or from activities for which the money must be deposited with the
72.21school district treasurer under section 123B.49, subdivision 2, or; and
72.22(3) the exemption under paragraph (a), clause (1), does not apply if the sales are derived
72.23from admission charges or from activities for which the money must be recorded in the
72.24same manner as other revenues or expenditures of the school district under section 123B.49,
72.25subdivision 4., unless the following conditions are both met:
72.26(i) the sales are made for fund-raising purposes of a club, association, or other
72.27organization of elementary or secondary school students organized for the purpose of
72.28carrying on sports activities, educational activities, or other extracurricular activities; and
72.29(ii) the school district reserves revenue raised for extracurricular activities, as provided
72.30in section 123B.49, subdivision 4, paragraph (e), and spends the revenue raised by a particular
72.31extracurricular activity only for that extracurricular activity.
73.1(c) Sales of tangible personal property and services are exempt if the entire proceeds,
73.2less the necessary expenses for obtaining the property or services, will be contributed to a
73.3registered combined charitable organization described in section 43A.50, to be used
73.4exclusively for charitable, religious, or educational purposes, and the registered combined
73.5charitable organization has given its written permission for the sale. Sales that occur over
73.6a period of more than 24 days per year are not exempt under this paragraph.
73.7(d) For purposes of this subdivision, a club, association, or other organization of
73.8elementary or secondary school students organized for the purpose of carrying on sports,
73.9educational, or other extracurricular activities is a separate organization from the school
73.10district or school for purposes of applying the $20,000 limit.
73.11EFFECTIVE DATE.This section is effective for sales and purchases made after the
73.12date of final enactment.

73.13    Sec. 3. Minnesota Statutes 2020, section 297A.70, is amended by adding a subdivision to
73.14read:
73.15    Subd. 22. Prepared food used by certain nonprofits. Sales of prepared food to a
73.16nonprofit organization that, as part of its charitable mission, is sponsoring and managing
73.17the provision of meals and other food through the federal Child and Adult Care Food Program
73.18or the federal Summer Food Service Program to unaffiliated centers and sites are exempt
73.19from sales tax. Only prepared food purchased from a caterer or other business under a
73.20contract with the nonprofit and used directly in the federal Child and Adult Care Food
73.21Program or the federal Summer Food Service Program qualifies for this exemption. Prepared
73.22food purchased by the nonprofit for other purposes remains taxable.
73.23EFFECTIVE DATE.This section is effective for sales and purchases made after June
73.2430, 2021.

73.25    Sec. 4. Minnesota Statutes 2020, section 297A.71, subdivision 52, is amended to read:
73.26    Subd. 52. Construction; certain local government facilities. (a) Materials and supplies
73.27used in and equipment incorporated into the construction, reconstruction, upgrade, expansion,
73.28or remodeling of the following local government owned facilities are exempt:
73.29(1) a new fire station, which includes firefighting, emergency management, public safety
73.30training, and other public safety facilities in the city of Monticello if materials, supplies,
73.31and equipment are purchased after January 31, 2019, and before January 1, 2022;
74.1(2) a new fire station, which includes firefighting and public safety training facilities
74.2and public safety facilities, in the city of Inver Grove Heights if materials, supplies, and
74.3equipment are purchased after June 30, 2018, and before January 1, 2021;
74.4(3) a fire station and police station, including access roads, lighting, sidewalks, and
74.5utility components, on or adjacent to the property on which the fire station or police station
74.6are located that are necessary for safe access to and use of those buildings, in the city of
74.7Minnetonka if materials, supplies, and equipment are purchased after May 23, 2019, and
74.8before January 1, 2021 2022;
74.9(4) the school building in Independent School District No. 414, Minneota, if materials,
74.10supplies, and equipment are purchased after January 1, 2018, and before January 1, 2021;
74.11(5) a fire station in the city of Mendota Heights, if materials, supplies, and equipment
74.12are purchased after December 31, 2018, and before January 1, 2021; and
74.13(6) a Dakota County law enforcement collaboration center, also known as the Safety
74.14and Mental Health Alternative Response Training (SMART) Center, if materials, supplies,
74.15and equipment are purchased after June 30, 2019, and before July 1, 2021.
74.16(b) The tax must be imposed and collected as if the rate under section 297A.62,
74.17subdivision 1, applied and then refunded in the manner provided in section 297A.75.
74.18(c) The total refund for the project listed in paragraph (a), clause (3), must not exceed
74.19$850,000.
74.20EFFECTIVE DATE.This section is effective the day following final enactment.

74.21    Sec. 5. Minnesota Statutes 2020, section 297A.71, is amended by adding a subdivision to
74.22read:
74.23    Subd. 53. Public safety facilities. (a) Materials and supplies used or consumed in and
74.24equipment incorporated into the construction, remodeling, expansion, or improvement of
74.25a fire station or police station, including related facilities, owned and operated by a local
74.26government, as defined in section 297A.70, subdivision 2, paragraph (d), are exempt.
74.27(b) For purposes of this subdivision, "related facilities" includes access roads, lighting,
74.28sidewalks, and utility components on or adjacent to the property on which the fire station
74.29or police station is located that are necessary for safe access to and use of those buildings.
74.30(c) The tax must be imposed and collected as if the rate under section 297A.62,
74.31subdivision 1, applied and then refunded in the manner provided in section 297A.75.
75.1EFFECTIVE DATE.This section is effective for sales and purchases made after June
75.230, 2021.

75.3    Sec. 6. Minnesota Statutes 2020, section 297A.75, subdivision 1, is amended to read:
75.4    Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the following
75.5exempt items must be imposed and collected as if the sale were taxable and the rate under
75.6section 297A.62, subdivision 1, applied. The exempt items include:
75.7    (1) building materials for an agricultural processing facility exempt under section
75.8297A.71, subdivision 13;
75.9    (2) building materials for mineral production facilities exempt under section 297A.71,
75.10subdivision 14;
75.11    (3) building materials for correctional facilities under section 297A.71, subdivision 3;
75.12    (4) building materials used in a residence for veterans with a disability exempt under
75.13section 297A.71, subdivision 11;
75.14    (5) elevators and building materials exempt under section 297A.71, subdivision 12;
75.15    (6) materials and supplies for qualified low-income housing under section 297A.71,
75.16subdivision 23;
75.17    (7) materials, supplies, and equipment for municipal electric utility facilities under
75.18section 297A.71, subdivision 35;
75.19    (8) equipment and materials used for the generation, transmission, and distribution of
75.20electrical energy and an aerial camera package exempt under section 297A.68, subdivision
75.2137;
75.22    (9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph
75.23(a), clause (10);
75.24    (10) materials, supplies, and equipment for construction or improvement of projects and
75.25facilities under section 297A.71, subdivision 40;
75.26(11) materials, supplies, and equipment for construction, improvement, or expansion of
75.27a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 45;
75.28(12) enterprise information technology equipment and computer software for use in a
75.29qualified data center exempt under section 297A.68, subdivision 42;
75.30(13) materials, supplies, and equipment for qualifying capital projects under section
75.31297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);
76.1(14) items purchased for use in providing critical access dental services exempt under
76.2section 297A.70, subdivision 7, paragraph (c);
76.3(15) items and services purchased under a business subsidy agreement for use or
76.4consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
76.544;
76.6(16) building materials, equipment, and supplies for constructing or replacing real
76.7property exempt under section 297A.71, subdivisions 49; 50, paragraph (b); and 51; and
76.8(17) building materials, equipment, and supplies for qualifying capital projects under
76.9section 297A.71, subdivision 52.; and
76.10(18) building materials, equipment, and supplies for constructing, remodeling, expanding,
76.11or improving a fire station, police station, or related facilities exempt under section 297A.71,
76.12subdivision 53.
76.13EFFECTIVE DATE.This section is effective for sales and purchases made after June
76.1430, 2021.

76.15    Sec. 7. Minnesota Statutes 2020, section 297A.75, subdivision 2, is amended to read:
76.16    Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the
76.17commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must
76.18be paid to the applicant. Only the following persons may apply for the refund:
76.19    (1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;
76.20    (2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
76.21    (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
76.22provided in United States Code, title 38, chapter 21;
76.23    (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
76.24property;
76.25    (5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;
76.26    (6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a
76.27joint venture of municipal electric utilities;
76.28    (7) for subdivision 1, clauses (8), (11), (12), and (15), the owner of the qualifying
76.29business;
76.30    (8) for subdivision 1, clauses (9), (10), (13), and (17), and (18), the applicant must be
76.31the governmental entity that owns or contracts for the project or facility; and
77.1    (9) for subdivision 1, clause (16), the applicant must be the owner or developer of the
77.2building or project.
77.3EFFECTIVE DATE.This section is effective for sales and purchases made after June
77.430, 2021.

77.5    Sec. 8. Minnesota Statutes 2020, section 297A.75, subdivision 3, is amended to read:
77.6    Subd. 3. Application. (a) The application must include sufficient information to permit
77.7the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor,
77.8or builder, under subdivision 1, clauses (3) to (13) or (15) to (17) (18), the contractor,
77.9subcontractor, or builder must furnish to the refund applicant a statement including the cost
77.10of the exempt items and the taxes paid on the items unless otherwise specifically provided
77.11by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under
77.12this section.
77.13    (b) An applicant may not file more than two applications per calendar year for refunds
77.14for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
77.15EFFECTIVE DATE.This section is effective for sales and purchases made after June
77.1630, 2021.

77.17    Sec. 9. Laws 2017, First Special Session chapter 1, article 3, section 32, the effective date,
77.18as amended by Laws 2019, First Special Session chapter 6, article 3, section 18, is amended
77.19to read:
77.20EFFECTIVE DATE.Paragraph (a) is effective retroactively for sales and purchases
77.21made after September 30, 2016, and before January July 1, 2023. Paragraph (b) is effective
77.22for sales and purchases made (1) after September 30, 2016, and before July 1, 2017; and
77.23(2) after December 31, 2018, and before July 1, 2019.
77.24EFFECTIVE DATE.This section is effective the day following final enactment.

77.25    Sec. 10. PROPERTIES DESTROYED OR DAMAGED BY FIRE; CITY OF
77.26ALEXANDRIA.
77.27(a) The sale and purchase of the following items are exempt from sales and use tax
77.28imposed under Minnesota Statutes, chapter 297A, if the items are used to repair, replace,
77.29clean, or otherwise remediate damage to real and personal property damaged or destroyed
77.30in the February 25, 2020, fire in the city of Alexandria, if sales and purchases are made after
77.31February 24, 2020, and before February 28, 2023:
78.1(1) building materials and supplies used or consumed in, and equipment incorporated
78.2into the construction, replacement, or repair of real property; and
78.3(2) durable equipment used in a restaurant for food storage, preparation, and serving.
78.4(b) Building cleaning and disinfecting services related to mitigating smoke damage to
78.5real property are exempt from sales and use tax imposed under Minnesota Statutes, chapter
78.6297A, if sales and purchases are made after February 24, 2020, and before January 1, 2021.
78.7(c) For sales and purchases made after February 24, 2020, and before July 1, 2021, the
78.8tax must be imposed and collected as if the rate under Minnesota Statutes, section 297A.62,
78.9subdivision 1, applied and then refunded in the manner provided in Minnesota Statutes,
78.10section 297A.75. The amount required to pay the refunds under this section is appropriated
78.11from the general fund to the commissioner of revenue. Refunds for eligible purchases must
78.12not be issued until after June 30, 2021.
78.13EFFECTIVE DATE.This section is effective the day following final enactment and
78.14applies retroactively to sales and purchases made after February 24, 2020.

78.15    Sec. 11. CITY OF BUFFALO; SALES TAX EXEMPTION FOR CONSTRUCTION
78.16MATERIALS.
78.17    Subdivision 1. Exemption; refund. (a) Materials and supplies used in and equipment
78.18incorporated into the construction of a new fire station, which includes firefighting,
78.19emergency management, public safety training, and other public safety facilities in the city
78.20of Buffalo, are exempt from sales and use tax imposed under Minnesota Statutes, chapter
78.21297A, if materials, supplies, and equipment are purchased after March 31, 2020, and before
78.22July 1, 2021.
78.23(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
78.24297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
78.25under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
78.26purchases must not be issued until after June 30, 2021.
78.27    Subd. 2. Appropriation. The amount required to pay the refunds under subdivision 1
78.28is appropriated from the general fund to the commissioner of revenue.
78.29EFFECTIVE DATE.This section is effective retroactively from April 1, 2020, and
78.30applies to sales and purchases made after March 31, 2020, and before July 1, 2021.

79.1    Sec. 12. CITY OF HIBBING; SALES TAX EXEMPTION FOR CONSTRUCTION
79.2MATERIALS.
79.3    Subdivision 1. Exemption; refund. (a) Materials and supplies used in and equipment
79.4incorporated into the following projects in the city of Hibbing are exempt from sales and
79.5use tax imposed under Minnesota Statutes, chapter 297A, if materials, supplies, and
79.6equipment are purchased after May 1, 2019, and before January 1, 2025:
79.7(1) the addition of an Early Childhood Family Education Center to an existing elementary
79.8school; and
79.9(2) improvements to an existing athletic facility in Independent School District No. 701.
79.10(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
79.11297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
79.12under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
79.13purchases must not be issued until after June 30, 2021.
79.14    Subd. 2. Appropriation. The amount required to pay the refunds under subdivision 1
79.15is appropriated from the general fund to the commissioner of revenue.
79.16EFFECTIVE DATE.This section is effective retroactively from May 2, 2019, and
79.17applies to sales and purchases made after May 1, 2019, and before January 1, 2025.

79.18    Sec. 13. CITY OF MAPLEWOOD; SALES TAX EXEMPTION FOR
79.19CONSTRUCTION MATERIALS.
79.20    Subdivision 1. Exemption; refund. (a) Materials and supplies used in and equipment
79.21incorporated into the construction of a new fire station and emergency management
79.22operations center, including on-site infrastructure improvements of parking lot, road access,
79.23lighting, sidewalks, and utility components in the city of Maplewood are exempt from sales
79.24and use tax imposed under Minnesota Statutes, chapter 297A, if materials, supplies, and
79.25equipment are purchased after September 30, 2020, and before July 1, 2021.
79.26(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
79.27297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
79.28under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
79.29purchases must not be issued until after June 30, 2021.
79.30    Subd. 2. Appropriation. The amount required to pay the refunds under subdivision 1
79.31is appropriated from the general fund to the commissioner of revenue.
80.1EFFECTIVE DATE.This section is effective retroactively from August 1, 2020, and
80.2applies to sales and purchases made after September 30, 2020, and before July 1, 2021.

80.3    Sec. 14. CITY OF MARSHALL; SALES TAX EXEMPTION FOR CONSTRUCTION
80.4MATERIALS.
80.5    Subdivision 1. Exemption; refund. (a) Materials and supplies used in and equipment
80.6incorporated into the following projects in the city of Marshall in Independent School District
80.7No. 413 are exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A,
80.8if materials, supplies, and equipment are purchased after May 1, 2019, and before January
80.91, 2022:
80.10(1) the construction of a new elementary school; and
80.11(2) the remodeling of existing school buildings.
80.12(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
80.13297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
80.14under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
80.15purchases must not be issued until after June 30, 2021.
80.16    Subd. 2. Appropriation. The amount required to pay the refunds under subdivision 1
80.17is appropriated from the general fund to the commissioner of revenue.
80.18EFFECTIVE DATE.This section is effective retroactively to May 2, 2019, and applies
80.19to materials, supplies, and equipment purchased after May 1, 2019, and before January 1,
80.202022.

80.21    Sec. 15. CITY OF PLYMOUTH; SALES TAX EXEMPTION FOR CONSTRUCTION
80.22MATERIALS.
80.23    Subdivision 1. Exemption; refund. (a) Materials and supplies used in and equipment
80.24incorporated into the following projects in the city of Plymouth are exempt from sales and
80.25use tax imposed under Minnesota Statutes, chapter 297A, if materials, supplies, and
80.26equipment are purchased after January 1, 2021, and before July 1, 2021:
80.27(1) demolition and replacement of the existing Fire Station No. 2 on its existing site;
80.28and
80.29(2) renovation and expansion of Fire Station No. 3.
80.30(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
80.31297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
81.1under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
81.2purchases must not be issued until after June 30, 2021.
81.3    Subd. 2. Appropriation. The amount required to pay the refunds under subdivision 1
81.4is appropriated from the general fund to the commissioner of revenue.
81.5EFFECTIVE DATE.This section is effective retroactively from January 2, 2021, and
81.6applies to sales and purchases made after January 1, 2021, and before July 1, 2021.

81.7    Sec. 16. CITY OF PROCTOR; SALES TAX EXEMPTION FOR CONSTRUCTION
81.8MATERIALS.
81.9    Subdivision 1. Exemption; refund. (a) Materials and supplies used in and equipment
81.10incorporated into the construction of a sand and salt storage facility in the city of Proctor
81.11are exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if
81.12materials, supplies, and equipment are purchased after March 31, 2021, and before January
81.131, 2023.
81.14(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
81.15297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
81.16under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
81.17purchases must not be issued until after June 30, 2021.
81.18    Subd. 2. Appropriation. The amount required to pay the refunds under subdivision 1
81.19is appropriated from the general fund to the commissioner of revenue.
81.20EFFECTIVE DATE.This section is effective retroactively from April 1, 2021, and
81.21applies to sales and purchases made after March 31, 2021, and before January 1, 2023.

81.22    Sec. 17. CITY OF VIRGINIA; SALES TAX EXEMPTION FOR CONSTRUCTION
81.23MATERIALS.
81.24    Subdivision 1. Exemption; refund. (a) Materials and supplies used in and equipment
81.25incorporated into the construction of a regional public safety center and training facility for
81.26fire and police departments, emergency medical services, regional emergency services
81.27training, and other regional community needs are exempt from sales and use tax imposed
81.28under Minnesota Statutes, chapter 297A, if materials, supplies, and equipment are purchased
81.29after May 1, 2021, and before July 1, 2021.
81.30(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
81.31297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
82.1under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
82.2purchases must not be issued until after June 30, 2021.
82.3    Subd. 2. Appropriation. The amount required to pay the refunds under subdivision 1
82.4is appropriated from the general fund to the commissioner of revenue.
82.5EFFECTIVE DATE.This section is effective retroactively from May 2, 2021, and
82.6applies to sales and purchases made after May 1, 2021, and before July 1, 2021.

82.7    Sec. 18. ROCK RIDGE PUBLIC SCHOOLS; SALES TAX EXEMPTION FOR
82.8CONSTRUCTION MATERIALS.
82.9    Subdivision 1. Exemption; refund. (a) Materials and supplies used in and equipment
82.10incorporated into the construction of two new elementary school buildings and a new high
82.11school building in Independent School District No. 2909, Rock Ridge Public Schools, are
82.12exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if materials,
82.13supplies, and equipment are purchased after May 1, 2019, and before January 1, 2024.
82.14(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
82.15297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
82.16under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
82.17purchases must not be issued until after June 30, 2021.
82.18    Subd. 2. Appropriation. The amount required to pay the refunds under subdivision 1
82.19is appropriated from the general fund to the commissioner of revenue.
82.20EFFECTIVE DATE.This section is effective retroactively from May 2, 2019, and
82.21applies to sales and purchases made after May 1, 2019, and before January 1, 2024.

82.22    Sec. 19. MSP AIRPORT; SALES TAX EXEMPTION FOR CONSTRUCTION
82.23MATERIALS.
82.24    Subdivision 1. Exemption; refund. (a) Materials and supplies used in and equipment
82.25incorporated into the following projects at the Minneapolis-St. Paul International Airport
82.26are exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if
82.27materials, supplies, and equipment are purchased after June 30, 2021, and before January
82.281, 2024:
82.29(1) construction of an aircraft rescue and firefighting station and associated facilities;
82.30(2) construction of a facility for the storage of trades materials and equipment;
82.31(3) replacement and rehabilitation of a terminal building roof;
83.1(4) replacement, rehabilitation, and improvements of a baggage handling system; and
83.2(5) replacement, rehabilitation, and operational improvements of Terminal 1 passenger
83.3arrivals and departures area.
83.4(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
83.5297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
83.6under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
83.7    Subd. 2. Appropriation. The amount required to pay the refunds under subdivision 1
83.8is appropriated from the general fund to the commissioner of revenue.
83.9EFFECTIVE DATE.This section is effective from July 1, 2021, and applies to sales
83.10and purchases made after June 30, 2021, and before January 1, 2024.

83.11    Sec. 20. PROPERTIES DESTROYED OR DAMAGED DURING PROTESTS AND
83.12UNREST IN MAY AND JUNE OF 2020.
83.13    Subdivision 1. Exemption. (a) The sale and purchase of the following items are exempt
83.14if the items are used to repair, replace, clean, or otherwise remediate damage to real and
83.15personal property damaged or destroyed after May 24, 2020, and before June 16, 2020,
83.16resulting from protests and unrest in the cities included in the peacetime emergency declared
83.17in the governor's Executive Order No. 20-64:
83.18(1) building materials and supplies used or consumed in, and equipment incorporated
83.19into, the construction, replacement, or repair of real property;
83.20(2) retail fixtures, office equipment, and restaurant equipment, so long as each item has
83.21a useful life of more than one year and costs at least $5,000; and
83.22(3) building cleaning and disinfecting services related to mitigating smoke damage and
83.23graffiti on and in impacted buildings.
83.24(b) The exemption in this subdivision only applies to materials, supplies, and services
83.25purchased to repair, replace, clean, or otherwise remediate damage to buildings owned by
83.26a government entity or by a private owner provided the building housed one or more of the
83.27following entities at the time of the damage or destruction:
83.28(1) a commercial establishment with an annual gross income of $30,000,000 or less in
83.29calendar year 2019;
83.30(2) a nonprofit organization; or
84.1(3) a low-income housing development that meets the certification requirements under
84.2Minnesota Statutes, section 273.128, whether or not the development was occupied at the
84.3time of its damage or destruction.
84.4(c) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
84.5297A.62, subdivision 1, applied and then refunded in the manner provided in Minnesota
84.6Statutes, section 297A.75, except that the applicant must have been an owner or occupant
84.7of the real property at the time of its destruction. The exemption under paragraph (a) applies
84.8to sales and purchases made after May 25, 2020, and before December 1, 2022. Refunds
84.9for eligible purchases must not be issued until after June 30, 2021.
84.10(d) Both the owner and occupants of the real property at the time of the damage or
84.11destruction may apply for a refund under this subdivision but may only request a refund for
84.12the goods and services they paid for, or were contracted and paid for on their behalf. The
84.13exemption does not apply to purchases of an owner if the owner did not own the real property
84.14at the time of the damage or destruction.
84.15    Subd. 2. Appropriation. The amount necessary to pay the refunds under subdivision 1
84.16is appropriated from the general fund to the commissioner of revenue.
84.17EFFECTIVE DATE.This section is effective retroactively for sales and purchases
84.18made after May 25, 2020.

84.19    Sec. 21. SALES TAX EXEMPTION FOR CERTAIN PURCHASES RELATED TO
84.20COVID-19.
84.21(a) Notwithstanding Minnesota Statutes, section 289A.50, or any law to the contrary,
84.22the sale and purchase of any materials, supplies, or equipment used in this state by a restaurant
84.23to adapt to health guidelines or any executive order related to COVID-19 is exempt from
84.24sales and use taxes imposed under Minnesota Statutes, chapter 297A. For the purposes of
84.25this section, "restaurant" means an establishment used as, maintained as, advertised as, or
84.26held out to be an operation that prepares, serves, or otherwise provides food or beverages,
84.27or both, for human consumption, which operates from a location for more than 21 days
84.28annually. Restaurant does not include food carts, mobile food units, grocery stores,
84.29convenience stores, gas stations, bakeries, or delis.
84.30(b) The maximum refund allowed under this section is $1,000 per federal employer
84.31identification number or Minnesota sales and use tax account number, whichever number
84.32is used to file sales tax returns. A business using a consolidated return to report sales tax
84.33information from more than one restaurant location, as provided in Minnesota Statutes,
85.1section 289A.11, subdivision 1, paragraph (a), is eligible for a refund of up to $1,000, per
85.2restaurant location reported.
85.3(c) The tax on the gross receipts from the sale of the items exempt under paragraph (a)
85.4must be imposed and collected as if the sale were taxable and the rate under Minnesota
85.5Statutes, section 297A.62, subdivision 1, applied. Refunds for eligible purchases must not
85.6be issued until after June 30, 2021.
85.7(d) Upon application on forms prescribed by the commissioner, a refund equal to the
85.8tax paid on the gross receipts of the exempt items or $1,000, whichever is less, must be paid
85.9to the applicant. Only the owner of the restaurant may apply for the refund. The application
85.10must include sufficient information to permit the commissioner to verify the tax paid and
85.11that the applicant is the owner of the restaurant.
85.12EFFECTIVE DATE; APPLICATION.This section is effective retroactively from
85.13March 1, 2020, and applies to sales and purchases made after February 29, 2020, and before
85.14January 1, 2022.


85.17    Section 1. Minnesota Statutes 2020, section 297F.01, is amended by adding a subdivision
85.18to read:
85.19    Subd. 7a. Delivery sale. "Delivery sale" has the meaning given in section 325F.781,
85.20subdivision 1.
85.21EFFECTIVE DATE.This section is effective January 1, 2022.

85.22    Sec. 2. Minnesota Statutes 2020, section 297F.01, is amended by adding a subdivision to
85.23read:
85.24    Subd. 7b. Heat device. "Heat device" means any electronic heat device, heat system,
85.25or similar product or device, meant to be used with a cigarette to produce a vapor or aerosol,
85.26regardless of whether sold with a cigarette. A heat device includes any batteries, heating
85.27elements, components, parts, accessories, apparel, or other items that are packaged with,
85.28connected to, attached to, or contained within the product or device.
85.29EFFECTIVE DATE.This section is effective January 1, 2022.

86.1    Sec. 3. Minnesota Statutes 2020, section 297F.01, subdivision 19, is amended to read:
86.2    Subd. 19. Tobacco products. (a) "Tobacco products" means any product containing,
86.3made, or derived from tobacco that is intended for human consumption, whether chewed,
86.4smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or
86.5any component, part, or accessory of a tobacco product, including, but not limited to, cigars;
86.6cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking
86.7tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing
86.8tobacco; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds
86.9and forms of tobacco; but does not include cigarettes as defined in this section. Tobacco
86.10products includes nicotine solution products and heat devices. Tobacco products excludes
86.11any tobacco product that has been approved by the United States Food and Drug
86.12Administration for sale as a tobacco cessation product, as a tobacco dependence product,
86.13or for other medical purposes, and is being marketed and sold solely for such an approved
86.14purpose.
86.15(b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4, tobacco
86.16products includes a premium cigar, as defined in subdivision 13a.
86.17EFFECTIVE DATE.This section is effective January 1, 2022.

86.18    Sec. 4. Minnesota Statutes 2020, section 297F.01, subdivision 22b, is amended to read:
86.19    Subd. 22b. Nicotine solution products. (a) "Nicotine solution products" means any
86.20cartridge, bottle, or other package that contains nicotine made or derived from tobacco, that
86.21is in a solution that is consumed, or meant to be consumed, through the use of a heating
86.22element, power source, electronic circuit, or other electronic, chemical, or mechanical means
86.23that produces vapor or aerosol. This paragraph expires December 31, 2019.
86.24(b) Beginning January 1, 2020, "nicotine solution products" means any cartridge, bottle,
86.25or other package that contains nicotine, including nicotine made or derived from tobacco
86.26or sources other than tobacco, that is in a solution that is consumed, or meant to be consumed,
86.27through the use of a heating element, power source, electronic circuit, or other electronic,
86.28chemical, or mechanical means that produces vapor or aerosol.
86.29(c) Nicotine solution products includes any electronic cigarette, electronic cigar, electronic
86.30cigarillo, electronic pipe, electronic nicotine delivery system, electronic vaping device,
86.31electronic vape pen, electronic oral device, electronic delivery device, or similar product
86.32or device, and meant to be used in the consumption of a solution containing nicotine
86.33regardless of whether sold with a solution containing nicotine. Nicotine solution products
87.1include any batteries, heating elements, or other components, parts, or accessories sold with
87.2and meant to be used in the consumption of a solution containing nicotine, apparel, or other
87.3items that are packaged with, connected to, attached to, or contained within the product or
87.4device.
87.5EFFECTIVE DATE.This section is effective January 1, 2022.

87.6    Sec. 5. Minnesota Statutes 2020, section 297F.01, subdivision 23, is amended to read:
87.7    Subd. 23. Wholesale sales price. (a) "Wholesale sales price" means the price at which
87.8a distributor purchases a tobacco product.
87.9(b) When a distributor sells a cartridge, bottle, or other package of a solution containing
87.10nicotine that is part of a kit that also includes a product, device, component, part, or accessory
87.11described in subdivision 22b:
87.12(1), or other item, the wholesale sales price is the price at which the distributor purchases
87.13the kit; except that.
87.14(2) if the distributor also separately sells the same package of solution containing nicotine
87.15that is sold with the kit and can isolate the cost of the package of solution containing nicotine,
87.16then the wholesale sales price includes only the price at which the distributor separately
87.17purchases the package of the solution containing nicotine and any taxes, charges, and costs
87.18listed in paragraph (c).
87.19(c) When a distributor sells a heat device that is part of a kit that also includes a product,
87.20device, component, part, accessory, or other item, the wholesale sales price is the price at
87.21which the distributor purchases the kit.
87.22(c) (d) Wholesale sales price includes the applicable federal excise tax, freight charges,
87.23or packaging costs, regardless of whether they were included in the purchase price.
87.24EFFECTIVE DATE.This section is effective for kits purchased by distributors after
87.25December 31, 2021.

87.26    Sec. 6. Minnesota Statutes 2020, section 297F.031, is amended to read:
87.27297F.031 REGISTRATION REQUIREMENT.
87.28Prior to making delivery sales or shipping cigarettes or tobacco products in connection
87.29with any sales, an out-of-state retailer shall must file with the Department of Revenue a
87.30statement setting forth the out-of-state retailer's name, trade name, and the address of the
87.31out-of-state retailer's, principal place of business, and any other place of business.
88.1EFFECTIVE DATE.This section is effective for all delivery sales occurring after
88.2December 31, 2021.

88.3    Sec. 7. Minnesota Statutes 2020, section 297F.05, is amended by adding a subdivision to
88.4read:
88.5    Subd. 4b. Retailer collection and remittance of use tax. A retailer or out-of-state
88.6retailer must, for any delivery sale, collect and pay to the state any use tax imposed by this
88.7section. The retailer or out-of-state retailer must give the purchaser a receipt for the tax paid.
88.8EFFECTIVE DATE.This section is effective for all delivery sales occurring after
88.9December 31, 2021.

88.10    Sec. 8. Minnesota Statutes 2020, section 297F.09, subdivision 3, is amended to read:
88.11    Subd. 3. Use tax return; cigarette or tobacco products consumer and retailers
88.12making delivery sales. (a) On or before the 18th day of each calendar month, a consumer
88.13who, during the preceding calendar month, has acquired title to or possession of cigarettes
88.14or tobacco products for use or storage in this state, upon which cigarettes or tobacco products
88.15the tax imposed by this chapter has not been paid, shall file a return with the commissioner
88.16showing the quantity of cigarettes or tobacco products so acquired. The return must be made
88.17in the form and manner prescribed by the commissioner, and must contain any other
88.18information required by the commissioner. The return must be accompanied by a remittance
88.19for the full unpaid tax liability shown by it.
88.20(b) On or before the 18th day of each calendar month, a retailer or out-of-state retailer
88.21who, during the preceding calendar month, made delivery sales must file a return with the
88.22commissioner showing the quantity of cigarettes or tobacco products so delivered. The
88.23commissioner shall prescribe the content, format, and manner of returns pursuant to section
88.24270C.30. The return must be accompanied by a remittance for the full unpaid tax liability.
88.25EFFECTIVE DATE.This section is effective for all delivery sales occurring after
88.26December 31, 2021.

88.27    Sec. 9. Minnesota Statutes 2020, section 297F.09, subdivision 4a, is amended to read:
88.28    Subd. 4a. Reporting requirements. No later than the 18th day of each calendar month,
88.29an a retailer or out-of-state retailer that has made a delivery of cigarettes or tobacco products
88.30or shipped or delivered cigarettes or tobacco products into the state in a delivery sale in the
88.31previous calendar month shall file with the Department of Revenue reports a report in the
88.32form and in the manner prescribed by the commissioner of revenue that provides for each
89.1delivery sale, the name and address of the purchaser and the brand or brands and quantity
89.2of cigarettes or tobacco products sold. A tobacco retailer or out-of-state retailer that meets
89.3the requirements of United States Code, title 15, section 375 et seq. satisfies the requirements
89.4of this subdivision. The filing of a return under subdivision 3, paragraph (b), satisfies the
89.5requirements of this subdivision for the applicable month.
89.6EFFECTIVE DATE.This section is effective for all delivery sales occurring after
89.7December 31, 2021.

89.8    Sec. 10. Minnesota Statutes 2020, section 297F.09, subdivision 7, is amended to read:
89.9    Subd. 7. Electronic payment. A cigarette or distributor, tobacco products distributor,
89.10retailer, or out-of-state retailer having a liability of $10,000 or more during a fiscal year
89.11ending June 30 must remit all liabilities in all subsequent calendar years by electronic means.
89.12EFFECTIVE DATE.This section is effective for all delivery sales occurring after
89.13December 31, 2021.

89.14    Sec. 11. Minnesota Statutes 2020, section 297F.09, subdivision 10, is amended to read:
89.15    Subd. 10. Accelerated tax payment; cigarette or tobacco products distributor. A
89.16cigarette or distributor, tobacco products distributor, retailer, or out-of-state retailer having
89.17a liability of $250,000 or more during a fiscal year ending June 30, shall remit the June
89.18liability for the next year in the following manner:
89.19    (a) Two business days before June 30 of calendar years 2020 and 2021, the distributor
89.20shall remit the actual May liability and 87.5 percent of the estimated June liability to the
89.21commissioner and file the return in the form and manner prescribed by the commissioner.
89.22    (b) On or before August 18 of the year, the distributor, retailer, or out-of-state retailer
89.23shall submit a return showing the actual June liability and pay any additional amount of tax
89.24not remitted in June. A penalty is imposed equal to ten percent of the amount of June liability
89.25required to be paid in June, less the amount remitted in June. However, the penalty is not
89.26imposed if the amount remitted in June equals the lesser of:
89.27    (1) 87.5 percent of the actual June liability for the calendar year 2020 and 2021 June
89.28liabilities and 84.5 of the actual June liability for June 2022 and thereafter; or
89.29    (2) 87.5 percent of the preceding May liability for the calendar year 2020 and 2021 June
89.30liabilities and 84.5 percent of the preceding May liability for June 2022 and thereafter.
90.1(c) For calendar year 2022 and thereafter, the percent of the estimated June liability the
90.2vendor must remit by two business days before June 30 is 84.5 percent.
90.3EFFECTIVE DATE.This section is effective for all delivery sales occurring after
90.4December 31, 2021.

90.5    Sec. 12. Minnesota Statutes 2020, section 325F.781, subdivision 1, is amended to read:
90.6    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
90.7the meanings given, unless the language or context clearly provides otherwise.
90.8(b) "Consumer" means an individual who purchases, receives, or possesses tobacco
90.9products for personal consumption and not for resale.
90.10(c) "Delivery sale" means:
90.11(1) a sale of tobacco products to a consumer in this state when:
90.12(i) the purchaser submits the order for the sale by means of a telephonic or other method
90.13of voice transmission, the mail or any other delivery service, or the Internet or other online
90.14service; or
90.15(ii) the tobacco products are delivered by use of the mail or other delivery service; or
90.16(2) a sale of tobacco products that satisfies the criteria in clause (1), item (i), regardless
90.17of whether the seller is located inside or outside of the state.
90.18A sale of tobacco products to an individual in this state must be treated as a sale to a
90.19consumer, unless the individual is licensed as a distributor or retailer of tobacco products.
90.20(d) "Delivery service" means a person, including the United States Postal Service, that
90.21is engaged in the commercial delivery of letters, packages, or other containers.
90.22(e) "Distributor" means a person, whether located inside or outside of this state, other
90.23than a retailer, who sells or distributes tobacco products in the state. Distributor does not
90.24include a tobacco products manufacturer, export warehouse proprietor, or importer with a
90.25valid permit under United States Code, title 26, section 5712 (1997), if the person sells or
90.26distributes tobacco products in this state only to distributors who hold valid and current
90.27licenses under the laws of a state, or to an export warehouse proprietor or another
90.28manufacturer. Distributor does not include a common or contract carrier that is transporting
90.29tobacco products under a proper bill of lading or freight bill that states the quantity, source,
90.30and destination of tobacco products, or a person who ships tobacco products through this
90.31state by common or contract carrier under a bill of lading or freight bill.
91.1(f) "Retailer" means a person, whether located inside or outside this state, who sells or
91.2distributes tobacco products to a consumer in this state.
91.3(g) "Tobacco products" means: cigarettes and tobacco products as defined in section
91.4297F.01.
91.5(1) cigarettes, as defined in section 297F.01, subdivision 3;
91.6(2) smokeless tobacco as defined in section 325F.76; and
91.7(3) premium cigars as defined in section 297F.01, subdivision 13a.
91.8EFFECTIVE DATE.This section is effective January 1, 2022.

91.9    Sec. 13. Minnesota Statutes 2020, section 325F.781, subdivision 5, is amended to read:
91.10    Subd. 5. Registration requirement. Prior to making delivery sales or shipping tobacco
91.11products in connection with any sales, an out-of-state retailer must meet the requirements
91.12of register with the commissioner of revenue as required under section 297F.031.
91.13EFFECTIVE DATE.This section is effective for all delivery sales occurring after
91.14December 31, 2021.

91.15    Sec. 14. Minnesota Statutes 2020, section 325F.781, subdivision 6, is amended to read:
91.16    Subd. 6. Collection of taxes. (a) Prior to shipping any tobacco products to a purchaser
91.17in this state, the out-of-state A retailer shall comply with all requirements of making delivery
91.18sales must file all returns and reports, collect and pay all taxes, and maintain all records
91.19required under chapter 297F and shall ensure that all state excise taxes and fees that apply
91.20to such tobacco products have been collected and paid to the state and that all related state
91.21excise tax stamps or other indicators of state excise tax payment have been properly affixed
91.22to those tobacco products.
91.23(b) In addition to any penalties under chapter 297F, a distributor a retailer making delivery
91.24sales who fails to pay any tax due according to paragraph (a) under chapter 297F, shall pay,
91.25in addition to any other penalty, a penalty of 50 percent of the tax due but unpaid.
91.26EFFECTIVE DATE.This section is effective for all delivery sales occurring after
91.27December 31, 2021.


92.3    Section 1. Minnesota Statutes 2020, section 297H.04, subdivision 2, is amended to read:
92.4    Subd. 2. Rate. (a) Commercial generators that generate nonmixed municipal solid waste
92.5shall pay a solid waste management tax of 60 cents per noncompacted cubic yard of periodic
92.6waste collection capacity purchased by the generator, based on the size of the container for
92.7the nonmixed municipal solid waste, the actual volume, or the weight-to-volume conversion
92.8schedule in paragraph (c). However, the tax must be calculated by the waste management
92.9service provider using the same method for calculating the waste management service fee
92.10so that both are calculated according to container capacity, actual volume, or weight.
92.11(b) Notwithstanding section 297H.02, a residential generator that generates nonmixed
92.12municipal solid waste shall pay a solid waste management tax in the same manner as provided
92.13in paragraph (a).
92.14(c) The weight-to-volume conversion schedule tax for:
92.15(1) construction debris as defined in section 115A.03, subdivision 7, is equal to 60 cents
92.16per cubic yard. The commissioner of revenue, after consultation with the commissioner of
92.17the Pollution Control Agency, shall determine and may publish by notice a weight-to-volume
92.18conversion schedule for construction debris;
92.19(2) industrial waste as defined in section 115A.03, subdivision 13a, is equal to 60 cents
92.20per cubic yard. The commissioner of revenue after consultation with the commissioner of
92.21the Pollution Control Agency, shall determine, and may publish by notice, a
92.22weight-to-volume conversion schedule for various industrial wastes; and
92.23(3) infectious waste as defined in section 116.76, subdivision 12, and pathological waste
92.24as defined in section 116.76, subdivision 14, is 150 pounds equals one cubic yard, or 60
92.25cents per 150 pounds.
92.26EFFECTIVE DATE.This section is effective July 1, 2021.

92.27    Sec. 2. Minnesota Statutes 2020, section 297H.05, is amended to read:
92.28297H.05 SELF-HAULERS.
92.29(a) A self-hauler of mixed municipal solid waste shall pay the tax to the operator of the
92.30waste management facility to which the waste is delivered at the rate imposed under section
92.31297H.03, based on the sales price of the waste management services.
93.1(b) A self-hauler of nonmixed municipal solid waste shall pay the tax to the operator of
93.2the waste management facility to which the waste is delivered at the rate imposed under
93.3section 297H.04.
93.4(c) The tax imposed on the self-hauler of nonmixed municipal solid waste may be based
93.5either on the capacity of the container, the actual volume, or the weight-to-volume conversion
93.6schedule in paragraph (d). However, the tax must be calculated by the operator using the
93.7same method for calculating the tipping fee so that both are calculated according to container
93.8capacity, actual volume, or weight.
93.9(d) The weight-to-volume conversion schedule tax for:
93.10(1) construction debris as defined in section 115A.03, subdivision 7, is one ton equals
93.113.33 cubic yards, or $2 per ton equal to 60 cents per cubic yard. The commissioner of
93.12revenue, after consultation with the commissioner of the Pollution Control Agency, shall
93.13determine and publish by notice a weight-to-volume conversion schedule for construction
93.14debris;
93.15(2) industrial waste as defined in section 115A.03, subdivision 13a, is equal to 60 cents
93.16per cubic yard. The commissioner of revenue, after consultation with the commissioner of
93.17the Pollution Control Agency, shall determine, and may publish by notice, a
93.18weight-to-volume conversion schedule for various industrial wastes; and
93.19(3) infectious waste as defined in section 116.76, subdivision 12, and pathological waste
93.20as defined in section 116.76, subdivision 14, is 150 pounds equals one cubic yard, or 60
93.21cents per 150 pounds.
93.22(e) For mixed municipal solid waste the tax is imposed upon the difference between the
93.23market price and the tip fee at a processing or disposal facility if the tip fee is less than the
93.24market price and the political subdivision subsidizes the cost of service at the facility. The
93.25political subdivision is liable for the tax.
93.26EFFECTIVE DATE.This section is effective July 1, 2021, except the new rate for
93.27construction debris applies to waste delivered after June 30, 2021.

93.28    Sec. 3. Minnesota Statutes 2020, section 297I.05, subdivision 7, is amended to read:
93.29    Subd. 7. Nonadmitted insurance premium tax. (a) A tax is imposed on surplus lines
93.30brokers. The rate of tax is equal to three percent of the gross premiums less return premiums
93.31paid by an insured whose home state is Minnesota.
94.1(b) A tax is imposed on a person, firm, corporation, or purchasing group as defined in
94.2section 60E.02, or any member of a purchasing group, that procures insurance directly from
94.3a nonadmitted insurer. The rate of tax is equal to two three percent of the gross premiums
94.4less return premiums paid by an insured whose home state is Minnesota.
94.5(c) No state other than the home state of an insured may require any premium tax payment
94.6for nonadmitted insurance. When Minnesota is the home state of the insured, as provided
94.7under section 297I.01, 100 percent of the gross premiums are taxable in Minnesota with no
94.8allocation of the tax to other states.
94.9EFFECTIVE DATE.This section is effective for policies with an effective date after
94.10December 31, 2021.

94.11    Sec. 4. Minnesota Statutes 2020, section 298.001, is amended by adding a subdivision to
94.12read:
94.13    Subd. 13. Merchantable iron ore concentrate. "Merchantable iron ore concentrate"
94.14means iron-bearing material that has been treated in Minnesota by any means of beneficiation,
94.15separation, concentration, or refinement for the purpose of making it salable for its iron ore
94.16content.
94.17EFFECTIVE DATE.This section is effective for taxes payable in 2022 and thereafter.

94.18    Sec. 5. Minnesota Statutes 2020, section 298.24, subdivision 1, is amended to read:
94.19    Subdivision 1. Imposed; calculation. (a) For concentrate produced in 2013, there is
94.20imposed upon taconite and iron sulphides, and upon the mining and quarrying thereof, and
94.21upon the production of iron ore concentrate therefrom, and upon the concentrate so produced,
94.22a tax of $2.56 per gross ton of merchantable iron ore concentrate produced therefrom.
94.23    (b) For concentrates produced in 2014 and subsequent years, the tax rate shall be equal
94.24to the preceding year's tax rate plus an amount equal to the preceding year's tax rate multiplied
94.25by the percentage increase in the implicit price deflator from the fourth quarter of the second
94.26preceding year to the fourth quarter of the preceding year. "Implicit price deflator" means
94.27the implicit price deflator for the gross domestic product prepared by the Bureau of Economic
94.28Analysis of the United States Department of Commerce.
94.29    (c) An additional tax is imposed equal to three cents per gross ton of merchantable iron
94.30ore concentrate for each one percent that the iron content of the product exceeds 72 percent,
94.31when dried at 212 degrees Fahrenheit.
95.1    (d) The tax on taconite and iron sulphides shall be imposed on the average of the
95.2production for the current year and the previous two years. The rate of the tax imposed will
95.3be the current year's tax rate. This clause shall not apply in the case of the closing of a
95.4taconite facility if the property taxes on the facility would be higher if this clause and section
95.5298.25 were not applicable.
95.6    (e) The tax under paragraph (a) is also imposed upon other iron-bearing material as
95.7described in section 298.405 on the tonnage of merchantable iron ore concentrate produced
95.8therefrom. The tax on other iron-bearing material shall be imposed on the current year
95.9production. The rate of the tax imposed is the current year's tax rate.
95.10    (f) If the tax or any part of the tax imposed by this subdivision is held to be
95.11unconstitutional, a tax of $2.56 per gross ton of merchantable iron ore concentrate produced
95.12shall be imposed.
95.13    (g) Consistent with the intent of this subdivision to impose a tax based upon the weight
95.14of merchantable iron ore concentrate, the commissioner of revenue may indirectly determine
95.15the weight of merchantable iron ore concentrate included in fluxed pellets by subtracting
95.16the weight of the limestone, dolomite, or olivine derivatives or other basic flux additives
95.17included in the pellets from the weight of the pellets. For purposes of this paragraph, "fluxed
95.18pellets" are pellets produced in a process in which limestone, dolomite, olivine, or other
95.19basic flux additives are combined with merchantable iron ore concentrate. No subtraction
95.20from the weight of the pellets shall be allowed for binders, mineral and chemical additives
95.21other than basic flux additives, or moisture.
95.22    (h)(1) Notwithstanding any other provision of this subdivision, for the first two years
95.23of a plant's commercial production of direct reduced ore from ore mined in this state, no
95.24tax is imposed under this section. For the third year of a plant's commercial production of
95.25direct reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate
95.26otherwise determined under this subdivision. For the fourth commercial production year,
95.27the rate is 50 percent of the rate otherwise determined under this subdivision; for the fifth
95.28commercial production year, the rate is 75 percent of the rate otherwise determined under
95.29this subdivision; and for all subsequent commercial production years, the full rate is imposed.
95.30    (2) Subject to clause (1), production of direct reduced ore in this state is subject to the
95.31tax imposed by this section, but if that production is not produced by a producer of taconite,
95.32iron sulfides, or other iron-bearing material, the production of taconite, iron sulfides, or
95.33other iron-bearing material, that is consumed in the production of direct reduced ore in this
96.1state is not subject to the tax imposed by this section on taconite, iron sulfides, or other
96.2iron-bearing material.
96.3    (3) Notwithstanding any other provision of this subdivision, no tax is imposed on direct
96.4reduced ore under this section during the facility's noncommercial production of direct
96.5reduced ore. The taconite or iron sulphides consumed in the noncommercial production of
96.6direct reduced ore is subject to the tax imposed by this section on taconite and iron sulphides.
96.7Three-year average production of direct reduced ore does not include production of direct
96.8reduced ore in any noncommercial year.
96.9    (4) Three-year average production for a direct reduced ore facility that has noncommercial
96.10production is the average of the commercial production of direct reduced ore for the current
96.11year and the previous two commercial years.
96.12    (5) As used in this paragraph, "commercial production" means production of more than
96.1350,000 tons of direct reduced ore in the current year or in any prior year, and "noncommercial
96.14production" means production of 50,000 tons or less of direct reduced ore in any year.
96.15    (6) This paragraph applies only to plants for which all environmental permits have been
96.16obtained and construction has begun before July 1, 2008.
96.17EFFECTIVE DATE.This section is effective for taxes payable in 2022 and thereafter.

96.18    Sec. 6. Minnesota Statutes 2020, section 298.405, subdivision 1, is amended to read:
96.19    Subdivision 1. Definition. Iron-bearing material, other than taconite and semitaconite,
96.20having not more than 46.5 percent natural iron content on the average, is subject to taxation
96.21under section 298.24. The tax under that section applies to material that is:
96.22    (1) finer than or ground to 90 percent passing 20 mesh; and
96.23    (2) treated in Minnesota for the purpose of separating the iron particles from silica,
96.24alumina, or other detrimental compounds or elements unless used in a direct reduction
96.25process: making the iron-bearing material merchantable by any means of beneficiation,
96.26separation, concentration, or refinement. The tax under section 298.24 does not apply to
96.27unmined iron ore and low-grade iron-bearing formations as described in section 273.13,
96.28subdivision 31, clause (1).
96.29    (i) by electrostatic separation, roasting and magnetic separation, or flotation;
96.30    (ii) by a direct reduction process;
96.31    (iii) by any combination of such processes; or
97.1    (iv) by any other process or method not presently employed in gravity separation plants
97.2employing only crushing, screening, washing, jigging, heavy media separation, spirals,
97.3cyclones, drying or any combination thereof.
97.4EFFECTIVE DATE.This section is effective for taxes payable in 2022 and thereafter.


97.7    Section 1. Minnesota Statutes 2020, section 270B.12, subdivision 8, is amended to read:
97.8    Subd. 8. County assessors; homestead classification and renter credit. The
97.9commissioner may disclose names and Social Security numbers or names and individual
97.10taxpayer identification numbers of individuals who have applied for both homestead
97.11classification under section 273.13 and a property tax refund as a renter under chapter 290A
97.12for the purpose of and to the extent necessary to administer section 290A.25.
97.13EFFECTIVE DATE.This section is effective for allowed disclosures made in 2021
97.14and thereafter.

97.15    Sec. 2. Minnesota Statutes 2020, section 270B.12, subdivision 9, is amended to read:
97.16    Subd. 9. County assessors; homestead application, determination, and income tax
97.17status. (a) If, as a result of an audit, the commissioner determines that a person is a Minnesota
97.18nonresident or part-year resident for income tax purposes, the commissioner may disclose
97.19the person's name, address, and Social Security number or the person's name, address, and
97.20individual taxpayer identification number to the assessor of any political subdivision in the
97.21state, when there is reason to believe that the person may have claimed or received homestead
97.22property tax benefits for a corresponding assessment year in regard to property apparently
97.23located in the assessor's jurisdiction.
97.24(b) To the extent permitted by section 273.124, subdivision 1, paragraph (a), the
97.25Department of Revenue may verify to a county assessor whether an individual who is
97.26requesting or receiving a homestead classification has filed a Minnesota income tax return
97.27as a resident for the most recent taxable year for which the information is available.
97.28EFFECTIVE DATE.This section is effective for allowed disclosures made in 2021
97.29and thereafter.

98.1    Sec. 3. Minnesota Statutes 2020, section 272.02, is amended by adding a subdivision to
98.2read:
98.3    Subd. 104. Certain property owned by an Indian Tribe. (a) Property is exempt that:
98.4(1) is located in a county with a population greater than 28,000 but less than 29,000 as
98.5of the 2010 federal census;
98.6(2) was on January 2, 2018, and is for the current assessment owned by a federally
98.7recognized Indian Tribe or its instrumentality, that is located in Minnesota;
98.8(3) was on January 2, 2018, erroneously treated as exempt under subdivision 7; and
98.9(4) is used for the same purpose as the property was used on January 2, 2018.
98.10(b) The owner of property exempt under paragraph (a) may apply to the county for a
98.11refund of any state general tax paid for property taxes payable in 2020 and 2021. The county
98.12may prescribe the form and manner of the application. The county auditor must certify to
98.13the commissioner of revenue the amount needed for refunds under this section, which the
98.14commissioner must pay to the county. An amount necessary for refunds under this paragraph
98.15is appropriated from the general fund to the commissioner of revenue in fiscal year 2022.
98.16This paragraph expires June 30, 2022.
98.17EFFECTIVE DATE.(a) The amendments in paragraph (a) are effective beginning
98.18with assessment year 2021. For assessment year 2021, an exemption application under this
98.19section must be filed with the county assessor by August 1, 2021.
98.20(b) The amendments in paragraph (b) are effective the day following final enactment.

98.21    Sec. 4. Minnesota Statutes 2020, section 272.115, subdivision 1, is amended to read:
98.22    Subdivision 1. Requirement. Except as otherwise provided in subdivision 5, 6, or 7,
98.23whenever any real estate is sold for a consideration in excess of $3,000, whether by warranty
98.24deed, quitclaim deed, contract for deed or any other method of sale, the grantor, grantee or
98.25the legal agent of either shall file a certificate of value with the county auditor in the county
98.26in which the property is located when the deed or other document is presented for recording.
98.27Contract for deeds are subject to recording under section 507.235, subdivision 1. Value
98.28shall, in the case of any deed not a gift, be the amount of the full actual consideration thereof,
98.29paid or to be paid, including the amount of any lien or liens assumed. The items and value
98.30of personal property transferred with the real property must be listed and deducted from the
98.31sale price. The certificate of value shall include the classification to which the property
98.32belongs for the purpose of determining the fair market value of the property, and shall
99.1include any proposed change in use of the property known to the person filing the certificate
99.2that could change the classification of the property. The certificate shall include financing
99.3terms and conditions of the sale which are necessary to determine the actual, present value
99.4of the sale price for purposes of the sales ratio study. If the property is being acquired as
99.5part of a like-kind exchange under section 1031 of the Internal Revenue Code of 1986, as
99.6amended through December 31, 2006, that must be indicated on the certificate. The
99.7commissioner of revenue shall promulgate administrative rules specifying the financing
99.8terms and conditions which must be included on the certificate. The certificate of value
99.9must include the Social Security number, individual tax identification number, or the federal
99.10employer identification number of the grantors and grantees. However, a married person
99.11who is not an owner of record and who is signing a conveyance instrument along with the
99.12person's spouse solely to release and convey their marital interest, if any, in the real property
99.13being conveyed is not a grantor for the purpose of the preceding sentence. A statement in
99.14the deed that is substantially in the following form is sufficient to allow the county auditor
99.15to accept a certificate for filing without the Social Security number or individual tax
99.16identification number of the named spouse: "(Name) claims no ownership interest in the
99.17real property being conveyed and is executing this instrument solely to release and convey
99.18a marital interest, if any, in that real property." The identification numbers of the grantors
99.19and grantees are private data on individuals or nonpublic data as defined in section 13.02,
99.20subdivisions 9 and 12, but, notwithstanding that section, the private or nonpublic data may
99.21be disclosed to the commissioner of revenue for purposes of tax administration. The
99.22information required to be shown on the certificate of value is limited to the information
99.23required as of the date of the acknowledgment on the deed or other document to be recorded.
99.24EFFECTIVE DATE.This section is effective the day following final enactment.

99.25    Sec. 5. Minnesota Statutes 2020, section 273.124, subdivision 1, is amended to read:
99.26    Subdivision 1. General rule. (a) Residential real estate that is occupied and used for
99.27the purposes of a homestead by its owner, who must be a Minnesota resident, is a residential
99.28homestead.
99.29    Agricultural land, as defined in section 273.13, subdivision 23, that is occupied and used
99.30as a homestead by its owner, who must be a Minnesota resident, is an agricultural homestead.
99.31    Dates for establishment of a homestead and homestead treatment provided to particular
99.32types of property are as provided in this section.
99.33    Property held by a trustee under a trust is eligible for homestead classification if the
99.34requirements under this chapter are satisfied.
100.1    The assessor shall require proof, as provided in subdivision 13, of the facts upon which
100.2classification as a homestead may be determined. Notwithstanding any other law, the assessor
100.3may at any time require a homestead application to be filed in order to verify that any
100.4property classified as a homestead continues to be eligible for homestead status.
100.5Notwithstanding any other law to the contrary, the Department of Revenue may, upon
100.6request from an assessor, verify whether an individual who is requesting or receiving
100.7homestead classification has filed a Minnesota income tax return as a resident for the most
100.8recent taxable year for which the information is available.
100.9    When there is a name change or a transfer of homestead property, the assessor may
100.10reclassify the property in the next assessment unless a homestead application is filed to
100.11verify that the property continues to qualify for homestead classification.
100.12    (b) For purposes of this section, homestead property shall include property which is used
100.13for purposes of the homestead but is separated from the homestead by a road, street, lot,
100.14waterway, or other similar intervening property. The term "used for purposes of the
100.15homestead" shall include but not be limited to uses for gardens, garages, or other outbuildings
100.16commonly associated with a homestead, but shall not include vacant land held primarily
100.17for future development. In order to receive homestead treatment for the noncontiguous
100.18property, the owner must use the property for the purposes of the homestead, and must apply
100.19to the assessor, both by the deadlines given in subdivision 9. After initial qualification for
100.20the homestead treatment, additional applications for subsequent years are not required.
100.21    (c) Residential real estate that is occupied and used for purposes of a homestead by a
100.22relative of the owner is a homestead but only to the extent of the homestead treatment that
100.23would be provided if the related owner occupied the property. For purposes of this paragraph
100.24and paragraph (g), "relative" means a parent, stepparent, child, stepchild, grandparent,
100.25grandchild, brother, sister, uncle, aunt, nephew, or niece. This relationship may be by blood
100.26or marriage. Property that has been classified as seasonal residential recreational property
100.27at any time during which it has been owned by the current owner or spouse of the current
100.28owner will not be reclassified as a homestead unless it is occupied as a homestead by the
100.29owner; this prohibition also applies to property that, in the absence of this paragraph, would
100.30have been classified as seasonal residential recreational property at the time when the
100.31residence was constructed. Neither the related occupant nor the owner of the property may
100.32claim a property tax refund under chapter 290A for a homestead occupied by a relative. In
100.33the case of a residence located on agricultural land, only the house, garage, and immediately
100.34surrounding one acre of land shall be classified as a homestead under this paragraph, except
100.35as provided in paragraph (d).
101.1    (d) Agricultural property that is occupied and used for purposes of a homestead by a
101.2relative of the owner, is a homestead, only to the extent of the homestead treatment that
101.3would be provided if the related owner occupied the property, and only if all of the following
101.4criteria are met:
101.5    (1) the relative who is occupying the agricultural property is a grandchild, child, sibling,
101.6or parent, grandparent, stepparent, stepchild, uncle, aunt, nephew, or niece of the owner of
101.7the agricultural property or of the spouse of the owner;
101.8    (2) the owner of the agricultural property must be a Minnesota resident;
101.9    (3) the owner of the agricultural property must not receive homestead treatment on any
101.10other agricultural property in Minnesota; and
101.11    (4) the owner of the agricultural property is limited to only one agricultural homestead
101.12per family under this paragraph.
101.13    Neither the related occupant nor the owner of the property may claim a property tax
101.14refund under chapter 290A for a homestead occupied by a relative qualifying under this
101.15paragraph. For purposes of this paragraph, "agricultural property" means the house, garage,
101.16other farm buildings and structures, and agricultural land.
101.17    Application must be made to the assessor by the owner of the agricultural property to
101.18receive homestead benefits under this paragraph. The assessor may require the necessary
101.19proof that the requirements under this paragraph have been met.
101.20    (e) In the case of property owned by a property owner who is married, the assessor must
101.21not deny homestead treatment in whole or in part if only one of the spouses occupies the
101.22property and the other spouse is absent due to: (1) marriage dissolution proceedings, (2)
101.23legal separation, (3) employment or self-employment in another location, or (4) other
101.24personal circumstances causing the spouses to live separately, not including an intent to
101.25obtain two homestead classifications for property tax purposes. To qualify under clause (3),
101.26the spouse's place of employment or self-employment must be at least 50 miles distant from
101.27the other spouse's place of employment, and the homesteads must be at least 50 miles distant
101.28from each other.
101.29    (f) The assessor must not deny homestead treatment in whole or in part if:
101.30    (1) in the case of a property owner who is not married, the owner is absent due to
101.31residence in a nursing home, boarding care facility, or an elderly assisted living facility
101.32property as defined in section 273.13, subdivision 25a, and the property is not otherwise
101.33occupied; or
102.1    (2) in the case of a property owner who is married, the owner or the owner's spouse or
102.2both are absent due to residence in a nursing home, boarding care facility, or an elderly
102.3assisted living facility property as defined in section 273.13, subdivision 25a, and the property
102.4is not occupied or is occupied only by the owner's spouse.
102.5    (g) If an individual is purchasing property with the intent of claiming it as a homestead
102.6and is required by the terms of the financing agreement to have a relative shown on the deed
102.7as a co-owner, the assessor shall allow a full homestead classification. This provision only
102.8applies to first-time purchasers, whether married or single, or to a person who had previously
102.9been married and is purchasing as a single individual for the first time. The application for
102.10homestead benefits must be on a form prescribed by the commissioner and must contain
102.11the data necessary for the assessor to determine if full homestead benefits are warranted.
102.12    (h) If residential or agricultural real estate is occupied and used for purposes of a
102.13homestead by a child of a deceased owner and the property is subject to jurisdiction of
102.14probate court, the child shall receive relative homestead classification under paragraph (c)
102.15or (d) to the same extent they would be entitled to it if the owner was still living, until the
102.16probate is completed. For purposes of this paragraph, "child" includes a relationship by
102.17blood or by marriage.
102.18    (i) If a single-family home, duplex, or triplex classified as either residential homestead
102.19or agricultural homestead is also used to provide licensed child care, the portion of the
102.20property used for licensed child care must be classified as a part of the homestead property.
102.21EFFECTIVE DATE.This section is effective beginning with property taxes payable
102.22in 2022 and thereafter.

102.23    Sec. 6. Minnesota Statutes 2020, section 273.124, subdivision 3a, is amended to read:
102.24    Subd. 3a. Manufactured home park cooperative. (a) When a manufactured home park
102.25is owned by a corporation or association organized under chapter 308A or 308B, and each
102.26person who owns a share or shares in the corporation or association is entitled to occupy a
102.27lot within the park, the corporation or association may claim homestead treatment for the
102.28park. Each lot must be designated by legal description or number, and each lot is limited to
102.29not more than one-half acre of land.
102.30    (b) The manufactured home park shall be entitled to homestead treatment if all of the
102.31following criteria are met:
103.1    (1) the occupant or the cooperative corporation or association is paying the ad valorem
103.2property taxes and any special assessments levied against the land and structure either
103.3directly, or indirectly through dues to the corporation or association; and
103.4    (2) the corporation or association organized under chapter 308A or 308B is wholly
103.5owned by persons having a right to occupy a lot owned by the corporation or association.
103.6    (c) A charitable corporation, organized under the laws of Minnesota with no outstanding
103.7stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt status,
103.8qualifies for homestead treatment with respect to a manufactured home park if its members
103.9hold residential participation warrants entitling them to occupy a lot in the manufactured
103.10home park.
103.11    (d) "Homestead treatment" under this subdivision means the classification rate provided
103.12for class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause
103.13(5), item (ii), and the homestead market value exclusion under section 273.13, subdivision
103.1435, does not apply.
103.15EFFECTIVE DATE.This section is effective beginning with property taxes payable
103.16in 2023 and thereafter.

103.17    Sec. 7. Minnesota Statutes 2020, section 273.124, subdivision 6, is amended to read:
103.18    Subd. 6. Leasehold cooperatives. When one or more dwellings or one or more buildings
103.19which each contain several dwelling units is owned by a nonprofit corporation subject to
103.20the provisions of chapter 317A and qualifying under section 501(c)(3) or 501(c)(4) of the
103.21Internal Revenue Code, or a limited partnership which corporation or partnership operates
103.22the property in conjunction with a cooperative association, and has received public financing,
103.23homestead treatment may be claimed by the cooperative association on behalf of the members
103.24of the cooperative for each dwelling unit occupied by a member of the cooperative. The
103.25cooperative association must provide the assessor with the Social Security numbers or
103.26individual tax identification numbers of those members. To qualify for the treatment provided
103.27by this subdivision, the following conditions must be met:
103.28    (a) the cooperative association must be organized under chapter 308A or 308B and all
103.29voting members of the board of directors must be resident tenants of the cooperative and
103.30must be elected by the resident tenants of the cooperative;
103.31    (b) the cooperative association must have a lease for occupancy of the property for a
103.32term of at least 20 years, which permits the cooperative association, while not in default on
103.33the lease, to participate materially in the management of the property, including material
104.1participation in establishing budgets, setting rent levels, and hiring and supervising a
104.2management agent;
104.3    (c) to the extent permitted under state or federal law, the cooperative association must
104.4have a right under a written agreement with the owner to purchase the property if the owner
104.5proposes to sell it; if the cooperative association does not purchase the property it is offered
104.6for sale, the owner may not subsequently sell the property to another purchaser at a price
104.7lower than the price at which it was offered for sale to the cooperative association unless
104.8the cooperative association approves the sale;
104.9    (d) a minimum of 40 percent of the cooperative association's members must have incomes
104.10at or less than 60 percent of area median gross income as determined by the United States
104.11Secretary of Housing and Urban Development under section 142(d)(2)(B) of the Internal
104.12Revenue Code. For purposes of this clause, "member income" means the income of a member
104.13existing at the time the member acquires cooperative membership;
104.14    (e) if a limited partnership owns the property, it must include as the managing general
104.15partner a nonprofit organization operating under the provisions of chapter 317A and
104.16qualifying under section 501(c)(3) or 501(c)(4) of the Internal Revenue Code and the limited
104.17partnership agreement must provide that the managing general partner have sufficient powers
104.18so that it materially participates in the management and control of the limited partnership;
104.19    (f) prior to becoming a member of a leasehold cooperative described in this subdivision,
104.20a person must have received notice that (1) describes leasehold cooperative property in plain
104.21language, including but not limited to the effects of classification under this subdivision on
104.22rents, property taxes and tax credits or refunds, and operating expenses, and (2) states that
104.23copies of the articles of incorporation and bylaws of the cooperative association, the lease
104.24between the owner and the cooperative association, a sample sublease between the
104.25cooperative association and a tenant, and, if the owner is a partnership, a copy of the limited
104.26partnership agreement, can be obtained upon written request at no charge from the owner,
104.27and the owner must send or deliver the materials within seven days after receiving any
104.28request;
104.29    (g) if a dwelling unit of a building was occupied on the 60th day prior to the date on
104.30which the unit became leasehold cooperative property described in this subdivision, the
104.31notice described in paragraph (f) must have been sent by first class mail to the occupant of
104.32the unit at least 60 days prior to the date on which the unit became leasehold cooperative
104.33property. For purposes of the notice under this paragraph, the copies of the documents
104.34referred to in paragraph (f) may be in proposed version, provided that any subsequent
105.1material alteration of those documents made after the occupant has requested a copy shall
105.2be disclosed to any occupant who has requested a copy of the document. Copies of the
105.3articles of incorporation and certificate of limited partnership shall be filed with the secretary
105.4of state after the expiration of the 60-day period unless the change to leasehold cooperative
105.5status does not proceed;
105.6    (h) the county attorney of the county in which the property is located must certify to the
105.7assessor that the property meets the requirements of this subdivision;
105.8    (i) the public financing received must be from at least one of the following sources:
105.9    (1) tax increment financing proceeds used for the acquisition or rehabilitation of the
105.10building or interest rate write-downs relating to the acquisition of the building;
105.11    (2) government issued bonds exempt from taxes under section 103 of the Internal Revenue
105.12Code, the proceeds of which are used for the acquisition or rehabilitation of the building;
105.13    (3) programs under section 221(d)(3), 202, or 236, of Title II of the National Housing
105.14Act;
105.15    (4) rental housing program funds under Section 8 of the United States Housing Act of
105.161937, as amended, or the market rate family graduated payment mortgage program funds
105.17administered by the Minnesota Housing Finance Agency that are used for the acquisition
105.18or rehabilitation of the building;
105.19    (5) low-income housing credit under section 42 of the Internal Revenue Code;
105.20    (6) public financing provided by a local government used for the acquisition or
105.21rehabilitation of the building, including grants or loans from (i) federal community
105.22development block grants; (ii) HOME block grants; or (iii) residential rental bonds issued
105.23under chapter 474A; or
105.24    (7) other rental housing program funds provided by the Minnesota Housing Finance
105.25Agency for the acquisition or rehabilitation of the building;
105.26    (j) at the time of the initial request for homestead classification or of any transfer of
105.27ownership of the property, the governing body of the municipality in which the property is
105.28located must hold a public hearing and make the following findings:
105.29    (1) that the granting of the homestead treatment of the apartment's units will facilitate
105.30safe, clean, affordable housing for the cooperative members that would otherwise not be
105.31available absent the homestead designation;
106.1    (2) that the owner has presented information satisfactory to the governing body showing
106.2that the savings garnered from the homestead designation of the units will be used to reduce
106.3tenant's rents or provide a level of furnishing or maintenance not possible absent the
106.4designation; and
106.5    (3) that the requirements of paragraphs (b), (d), and (i) have been met.
106.6    Homestead treatment must be afforded to units occupied by members of the cooperative
106.7association and the units must be assessed as provided in subdivision 3, provided that any
106.8unit not so occupied shall be classified and assessed pursuant to the appropriate class. No
106.9more than three acres of land may, for assessment purposes, be included with each dwelling
106.10unit that qualifies for homestead treatment under this subdivision.
106.11    When dwelling units no longer qualify under this subdivision, the current owner must
106.12notify the assessor within 60 days. Failure to notify the assessor within 60 days shall result
106.13in the loss of benefits under this subdivision for taxes payable in the year that the failure is
106.14discovered. For these purposes, "benefits under this subdivision" means the difference in
106.15the net tax capacity of the units which no longer qualify as computed under this subdivision
106.16and as computed under the otherwise applicable law, times the local tax rate applicable to
106.17the building for that taxes payable year. Upon discovery of a failure to notify, the assessor
106.18shall inform the auditor of the difference in net tax capacity for the building or buildings in
106.19which units no longer qualify, and the auditor shall calculate the benefits under this
106.20subdivision. Such amount, plus a penalty equal to 100 percent of that amount, shall then be
106.21demanded of the building's owner. The property owner may appeal the county's determination
106.22by serving copies of a petition for review with county officials as provided in section 278.01
106.23and filing a proof of service as provided in section 278.01 with the Minnesota Tax Court
106.24within 60 days of the date of the notice from the county. The appeal shall be governed by
106.25the Tax Court procedures provided in chapter 271, for cases relating to the tax laws as
106.26defined in section 271.01, subdivision 5; disregarding sections 273.125, subdivision 5, and
106.27278.03, but including section 278.05, subdivision 2. If the amount of the benefits under this
106.28subdivision and penalty are not paid within 60 days, and if no appeal has been filed, the
106.29county auditor shall certify the amount of the benefit and penalty to the succeeding year's
106.30tax list to be collected as part of the property taxes on the affected buildings.
106.31EFFECTIVE DATE.This section is effective beginning with assessment year 2021
106.32and thereafter.

107.1    Sec. 8. Minnesota Statutes 2020, section 273.124, subdivision 9, is amended to read:
107.2    Subd. 9. Homestead established after assessment date. Any property that was not
107.3used for the purpose of a homestead on the assessment date, but which was used for the
107.4purpose of a homestead on December 1 31 of a year, constitutes class 1 or class 2a.
107.5Any taxpayer meeting the requirements of this subdivision must notify the county
107.6assessor, or the assessor who has the powers of the county assessor under section 273.063,
107.7in writing, by December 15 31 of the year of occupancy in order to qualify under this
107.8subdivision. The assessor must not deny full homestead treatment to a property that is
107.9partially homesteaded on January 2 but occupied for the purpose of a full homestead on
107.10December 1 31 of a year.
107.11The county assessor and the county auditor may make the necessary changes on their
107.12assessment and tax records to provide for proper homestead classification as provided in
107.13this subdivision.
107.14If homestead classification has not been requested as of December 15 31, the assessor
107.15will classify the property as nonhomestead for the current assessment year for taxes payable
107.16in the following year, provided that the owner of any property qualifying under this
107.17subdivision, which has not been accorded the benefits of this subdivision, may be entitled
107.18to receive homestead classification by proper application as provided in section 375.192.
107.19The county assessor may publish in a newspaper of general circulation within the county
107.20a notice requesting the public to file an application for homestead as soon as practicable
107.21after acquisition of a homestead, but no later than December 15 31.
107.22The county assessor shall publish in a newspaper of general circulation within the county
107.23no later than December 1 of each year a notice informing the public of the requirement to
107.24file an application for homestead by December 15 31.
107.25In the case of manufactured homes assessed as personal property, the homestead must
107.26be established, and a homestead classification requested, by May 29 of the assessment year.
107.27The assessor may include information on these deadlines for manufactured homes assessed
107.28as personal property in the published notice or notices.
107.29EFFECTIVE DATE.This section is effective beginning with assessments in 2021.

108.1    Sec. 9. Minnesota Statutes 2020, section 273.124, subdivision 13, is amended to read:
108.2    Subd. 13. Homestead application. (a) A person who meets the homestead requirements
108.3under subdivision 1 must file a homestead application with the county assessor to initially
108.4obtain homestead classification.
108.5    (b) The commissioner shall prescribe the content, format, and manner of the homestead
108.6application required to be filed under this chapter pursuant to section 270C.30. The
108.7application must clearly inform the taxpayer that this application must be signed by all
108.8owners who occupy the property or by the qualifying relative and returned to the county
108.9assessor in order for the property to receive homestead treatment.
108.10    (c) Every property owner applying for homestead classification must furnish to the
108.11county assessor the Social Security number or individual tax identification number of each
108.12occupant who is listed as an owner of the property on the deed of record, the name and
108.13address of each owner who does not occupy the property, and the name and Social Security
108.14number or individual tax identification number of the spouse of each occupying owner. The
108.15application must be signed by each owner who occupies the property and by each owner's
108.16spouse who occupies the property, or, in the case of property that qualifies as a homestead
108.17under subdivision 1, paragraph (c), by the qualifying relative.
108.18    If a property owner occupies a homestead, the property owner's spouse may not claim
108.19another property as a homestead unless the property owner and the property owner's spouse
108.20file with the assessor an affidavit or other proof required by the assessor stating that the
108.21property qualifies as a homestead under subdivision 1, paragraph (e).
108.22    Owners or spouses occupying residences owned by their spouses and previously occupied
108.23with the other spouse, either of whom fail to include the other spouse's name and Social
108.24Security number or individual tax identification number on the homestead application or
108.25provide the affidavits or other proof requested, will be deemed to have elected to receive
108.26only partial homestead treatment of their residence. The remainder of the residence will be
108.27classified as nonhomestead residential. When an owner or spouse's name and Social Security
108.28number or individual tax identification number appear on homestead applications for two
108.29separate residences and only one application is signed, the owner or spouse will be deemed
108.30to have elected to homestead the residence for which the application was signed.
108.31    (d) If residential real estate is occupied and used for purposes of a homestead by a relative
108.32of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for
108.33the property to receive homestead status, a homestead application must be filed with the
108.34assessor. The Social Security number or individual tax identification number of each relative
109.1occupying the property and the name and Social Security number or individual tax
109.2identification number of the spouse of a relative occupying the property shall be required
109.3on the homestead application filed under this subdivision. If a different relative of the owner
109.4subsequently occupies the property, the owner of the property must notify the assessor
109.5within 30 days of the change in occupancy. The Social Security number or individual tax
109.6identification number of a relative occupying the property or the spouse of a relative
109.7occupying the property is private data on individuals as defined by section 13.02, subdivision
109.812, but may be disclosed to the commissioner of revenue, or, for the purposes of proceeding
109.9under the Revenue Recapture Act to recover personal property taxes owing, to the county
109.10treasurer.
109.11    (e) The homestead application shall also notify the property owners that if the property
109.12is granted homestead status for any assessment year, that same property shall remain
109.13classified as homestead until the property is sold or transferred to another person, or the
109.14owners, the spouse of the owner, or the relatives no longer use the property as their
109.15homestead. Upon the sale or transfer of the homestead property, a certificate of value must
109.16be timely filed with the county auditor as provided under section 272.115. Failure to notify
109.17the assessor within 30 days that the property has been sold, transferred, or that the owner,
109.18the spouse of the owner, or the relative is no longer occupying the property as a homestead,
109.19shall result in the penalty provided under this subdivision and the property will lose its
109.20current homestead status.
109.21    (f) If a homestead application has not been filed with the county by December 15 31,
109.22the assessor shall classify the property as nonhomestead for the current assessment year for
109.23taxes payable in the following year, provided that the owner may be entitled to receive the
109.24homestead classification by proper application under section 375.192.
109.25EFFECTIVE DATE.This section is effective beginning with assessments in 2021.

109.26    Sec. 10. Minnesota Statutes 2020, section 273.124, subdivision 13a, is amended to read:
109.27    Subd. 13a. Occupant list. At the request of the commissioner, each county must give
109.28the commissioner a list that includes the name and Social Security number or individual
109.29tax identification number of each occupant of homestead property who is the property owner,
109.30property owner's spouse, qualifying relative of a property owner, or a spouse of a qualifying
109.31relative. The commissioner shall use the information provided on the lists as appropriate
109.32under the law, including for the detection of improper claims by owners, or relatives of
109.33owners, under chapter 290A.
110.1EFFECTIVE DATE.This section is effective beginning with assessment year 2021
110.2and thereafter.

110.3    Sec. 11. Minnesota Statutes 2020, section 273.124, subdivision 13c, is amended to read:
110.4    Subd. 13c. Property lists. In addition to lists of homestead properties, the commissioner
110.5may ask the counties to furnish lists of all properties and the record owners. The Social
110.6Security numbers, individual tax identification numbers, and federal identification numbers
110.7that are maintained by a county or city assessor for property tax administration purposes,
110.8and that may appear on the lists retain their classification as private or nonpublic data; but
110.9may be viewed, accessed, and used by the county auditor or treasurer of the same county
110.10for the limited purpose of assisting the commissioner in the preparation of microdata samples
110.11under section 270C.12. The commissioner shall use the information provided on the lists
110.12as appropriate under the law, including for the detection of improper claims by owners, or
110.13relatives of owners, under chapter 290A.
110.14EFFECTIVE DATE.This section is effective for homestead data provided to the
110.15commissioner of revenue in 2022 and thereafter.

110.16    Sec. 12. Minnesota Statutes 2020, section 273.124, subdivision 13d, is amended to read:
110.17    Subd. 13d. Homestead data. On or before April 30 each year beginning in 2007, each
110.18county must provide the commissioner with the following data for each parcel of homestead
110.19property by electronic means as defined in section 289A.02, subdivision 8:
110.20    (1) the property identification number assigned to the parcel for purposes of taxes payable
110.21in the current year;
110.22    (2) the name and Social Security number or individual tax identification number of each
110.23occupant of homestead property who is the property owner or qualifying relative of a property
110.24owner, and the spouse of the property owner who occupies homestead property or spouse
110.25of a qualifying relative of a property owner who occupies homestead property;
110.26    (3) the classification of the property under section 273.13 for taxes payable in the current
110.27year and in the prior year;
110.28    (4) an indication of whether the property was classified as a homestead for taxes payable
110.29in the current year because of occupancy by a relative of the owner or by a spouse of a
110.30relative;
110.31    (5) the property taxes payable as defined in section 290A.03, subdivision 13, for the
110.32current year and the prior year;
111.1    (6) the market value of improvements to the property first assessed for tax purposes for
111.2taxes payable in the current year;
111.3    (7) the assessor's estimated market value assigned to the property for taxes payable in
111.4the current year and the prior year;
111.5    (8) the taxable market value assigned to the property for taxes payable in the current
111.6year and the prior year;
111.7    (9) whether there are delinquent property taxes owing on the homestead;
111.8    (10) the unique taxing district in which the property is located; and
111.9    (11) such other information as the commissioner decides is necessary.
111.10    The commissioner shall use the information provided on the lists as appropriate under
111.11the law, including for the detection of improper claims by owners, or relatives of owners,
111.12under chapter 290A.
111.13EFFECTIVE DATE.This section is effective for homestead data provided to the
111.14commissioner of revenue in 2022 and thereafter.

111.15    Sec. 13. Minnesota Statutes 2020, section 273.124, subdivision 14, is amended to read:
111.16    Subd. 14. Agricultural homesteads; special provisions. (a) Real estate of less than ten
111.17acres that is the homestead of its owner must be classified as class 2a under section 273.13,
111.18subdivision 23, paragraph (a), if:
111.19    (1) the parcel on which the house is located is contiguous on at least two sides to (i)
111.20agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
111.21Service, or (iii) land administered by the Department of Natural Resources on which in lieu
111.22taxes are paid under sections 477A.11 to 477A.14;
111.23    (2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20
111.24acres;
111.25    (3) the noncontiguous land is located not farther than four townships or cities, or a
111.26combination of townships or cities from the homestead; and
111.27    (4) the agricultural use value of the noncontiguous land and farm buildings is equal to
111.28at least 50 percent of the market value of the house, garage, and one acre of land.
111.29    Homesteads initially classified as class 2a under the provisions of this paragraph shall
111.30remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
111.31properties, as long as the homestead remains under the same ownership, the owner owns a
112.1noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
112.2value qualifies under clause (4). Homestead classification under this paragraph is limited
112.3to property that qualified under this paragraph for the 1998 assessment.
112.4    (b)(i) Agricultural property shall be classified as the owner's homestead, to the same
112.5extent as other agricultural homestead property, if all of the following criteria are met:
112.6    (1) the agricultural property consists of at least 40 acres including undivided government
112.7lots and correctional 40's;
112.8    (2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the owner
112.9or of the owner's spouse, is actively farming the agricultural property, either on the person's
112.10own behalf as an individual or on behalf of a partnership operating a family farm, family
112.11farm corporation, joint family farm venture, or limited liability company of which the person
112.12is a partner, shareholder, or member;
112.13    (3) both the owner of the agricultural property and the person who is actively farming
112.14the agricultural property under clause (2), are Minnesota residents;
112.15    (4) neither the owner nor the spouse of the owner claims another agricultural homestead
112.16in Minnesota; and
112.17    (5) neither the owner nor the person actively farming the agricultural property lives
112.18farther than four townships or cities, or a combination of four townships or cities, from the
112.19agricultural property, except that if the owner or the owner's spouse is required to live in
112.20employer-provided housing, the owner or owner's spouse, whichever is actively farming
112.21the agricultural property, may live more than four townships or cities, or combination of
112.22four townships or cities from the agricultural property.
112.23    The relationship under this paragraph may be either by blood or marriage.
112.24    (ii) Property containing the residence of an owner who owns qualified property under
112.25clause (i) shall be classified as part of the owner's agricultural homestead, if that property
112.26is also used for noncommercial storage or drying of agricultural crops.
112.27(iii) As used in this paragraph, "agricultural property" means class 2a property and any
112.28class 2b property that is contiguous to and under the same ownership as the class 2a property.
112.29    (c) Noncontiguous land shall be included as part of a homestead under section 273.13,
112.30subdivision 23, paragraph (a), only if the homestead is classified as class 2a and the detached
112.31land is located in the same township or city, or not farther than four townships or cities or
112.32combination thereof from the homestead. Any taxpayer of these noncontiguous lands must
112.33notify the county assessor that the noncontiguous land is part of the taxpayer's homestead,
113.1and, if the homestead is located in another county, the taxpayer must also notify the assessor
113.2of the other county.
113.3    (d) Agricultural land used for purposes of a homestead and actively farmed by a person
113.4holding a vested remainder interest in it must be classified as a homestead under section
113.5273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, any other
113.6dwellings on the land used for purposes of a homestead by persons holding vested remainder
113.7interests who are actively engaged in farming the property, and up to one acre of the land
113.8surrounding each homestead and reasonably necessary for the use of the dwelling as a home,
113.9must also be assessed class 2a.
113.10    (e) Agricultural land and buildings that were class 2a homestead property under section
113.11273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain classified as
113.12agricultural homesteads for subsequent assessments if:
113.13    (1) the property owner abandoned the homestead dwelling located on the agricultural
113.14homestead as a result of the April 1997 floods;
113.15    (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or
113.16Wilkin;
113.17    (3) the agricultural land and buildings remain under the same ownership for the current
113.18assessment year as existed for the 1997 assessment year and continue to be used for
113.19agricultural purposes;
113.20    (4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles
113.21of one of the parcels of agricultural land that is owned by the taxpayer; and
113.22    (5) the owner notifies the county assessor that the relocation was due to the 1997 floods,
113.23and the owner furnishes the assessor any information deemed necessary by the assessor in
113.24verifying the change in dwelling. Further notifications to the assessor are not required if the
113.25property continues to meet all the requirements in this paragraph and any dwellings on the
113.26agricultural land remain uninhabited.
113.27    (f) Agricultural land and buildings that were class 2a homestead property under section
113.28273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain classified
113.29agricultural homesteads for subsequent assessments if:
113.30    (1) the property owner abandoned the homestead dwelling located on the agricultural
113.31homestead as a result of damage caused by a March 29, 1998, tornado;
113.32    (2) the property is located in the county of Blue Earth, Brown, Cottonwood, LeSueur,
113.33Nicollet, Nobles, or Rice;
114.1    (3) the agricultural land and buildings remain under the same ownership for the current
114.2assessment year as existed for the 1998 assessment year;
114.3    (4) the dwelling occupied by the owner is located in this state and is within 50 miles of
114.4one of the parcels of agricultural land that is owned by the taxpayer; and
114.5    (5) the owner notifies the county assessor that the relocation was due to a March 29,
114.61998, tornado, and the owner furnishes the assessor any information deemed necessary by
114.7the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the
114.8owner must notify the assessor by December 1, 1998. Further notifications to the assessor
114.9are not required if the property continues to meet all the requirements in this paragraph and
114.10any dwellings on the agricultural land remain uninhabited.
114.11    (g) Agricultural property of a family farm corporation, joint family farm venture, family
114.12farm limited liability company, or partnership operating a family farm as described under
114.13subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead
114.14property, if all of the following criteria are met:
114.15    (1) the property consists of at least 40 acres including undivided government lots and
114.16correctional 40's;
114.17    (2) a shareholder, member, or partner of that entity is actively farming the agricultural
114.18property;
114.19    (3) that shareholder, member, or partner who is actively farming the agricultural property
114.20is a Minnesota resident;
114.21    (4) neither that shareholder, member, or partner, nor the spouse of that shareholder,
114.22member, or partner claims another agricultural homestead in Minnesota; and
114.23    (5) that shareholder, member, or partner does not live farther than four townships or
114.24cities, or a combination of four townships or cities, from the agricultural property.
114.25Homestead treatment applies under this paragraph even if:
114.26(i) the shareholder, member, or partner of that entity is actively farming the agricultural
114.27property on the shareholder's, member's, or partner's own behalf; or
114.28(ii) the family farm is operated by a family farm corporation, joint family farm venture,
114.29partnership, or limited liability company other than the family farm corporation, joint family
114.30farm venture, partnership, or limited liability company that owns the land, provided that:
114.31(A) the shareholder, member, or partner of the family farm corporation, joint family
114.32farm venture, partnership, or limited liability company that owns the land who is actively
115.1farming the land is a shareholder, member, or partner of the family farm corporation, joint
115.2family farm venture, partnership, or limited liability company that is operating the farm;
115.3and
115.4(B) more than half of the shareholders, members, or partners of each family farm
115.5corporation, joint family farm venture, partnership, or limited liability company are persons
115.6or spouses of persons who are a qualifying relative under section 273.124, subdivision 1,
115.7paragraphs (c) and (d).
115.8    Homestead treatment applies under this paragraph for property leased to a family farm
115.9corporation, joint farm venture, limited liability company, or partnership operating a family
115.10farm if legal title to the property is in the name of an individual who is a member, shareholder,
115.11or partner in the entity.
115.12    (h) To be eligible for the special agricultural homestead under this subdivision, an initial
115.13full application must be submitted to the county assessor where the property is located.
115.14Owners and the persons who are actively farming the property shall be required to complete
115.15only a one-page abbreviated version of the application in each subsequent year provided
115.16that none of the following items have changed since the initial application:
115.17    (1) the day-to-day operation, administration, and financial risks remain the same;
115.18    (2) the owners and the persons actively farming the property continue to live within the
115.19four townships or city criteria and are Minnesota residents;
115.20    (3) the same operator of the agricultural property is listed with the Farm Service Agency;
115.21    (4) a Schedule F or equivalent income tax form was filed for the most recent year;
115.22    (5) the property's acreage is unchanged; and
115.23    (6) none of the property's acres have been enrolled in a federal or state farm program
115.24since the initial application.
115.25    The owners and any persons who are actively farming the property must include the
115.26appropriate Social Security numbers or individual tax identification numbers, and sign and
115.27date the application. If any of the specified information has changed since the full application
115.28was filed, the owner must notify the assessor, and must complete a new application to
115.29determine if the property continues to qualify for the special agricultural homestead. The
115.30commissioner of revenue shall prepare a standard reapplication form for use by the assessors.
116.1    (i) Agricultural land and buildings that were class 2a homestead property under section
116.2273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain classified
116.3agricultural homesteads for subsequent assessments if:
116.4    (1) the property owner abandoned the homestead dwelling located on the agricultural
116.5homestead as a result of damage caused by the August 2007 floods;
116.6    (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele,
116.7Wabasha, or Winona;
116.8    (3) the agricultural land and buildings remain under the same ownership for the current
116.9assessment year as existed for the 2007 assessment year;
116.10    (4) the dwelling occupied by the owner is located in this state and is within 50 miles of
116.11one of the parcels of agricultural land that is owned by the taxpayer; and
116.12    (5) the owner notifies the county assessor that the relocation was due to the August 2007
116.13floods, and the owner furnishes the assessor any information deemed necessary by the
116.14assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the
116.15owner must notify the assessor by December 1, 2008. Further notifications to the assessor
116.16are not required if the property continues to meet all the requirements in this paragraph and
116.17any dwellings on the agricultural land remain uninhabited.
116.18    (j) Agricultural land and buildings that were class 2a homestead property under section
116.19273.13, subdivision 23, paragraph (a), for the 2008 assessment shall remain classified as
116.20agricultural homesteads for subsequent assessments if:
116.21    (1) the property owner abandoned the homestead dwelling located on the agricultural
116.22homestead as a result of the March 2009 floods;
116.23    (2) the property is located in the county of Marshall;
116.24    (3) the agricultural land and buildings remain under the same ownership for the current
116.25assessment year as existed for the 2008 assessment year and continue to be used for
116.26agricultural purposes;
116.27    (4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles
116.28of one of the parcels of agricultural land that is owned by the taxpayer; and
116.29    (5) the owner notifies the county assessor that the relocation was due to the 2009 floods,
116.30and the owner furnishes the assessor any information deemed necessary by the assessor in
116.31verifying the change in dwelling. Further notifications to the assessor are not required if the
117.1property continues to meet all the requirements in this paragraph and any dwellings on the
117.2agricultural land remain uninhabited.
117.3EFFECTIVE DATE.This section is effective for applications for homestead filed in
117.42021 and thereafter.

117.5    Sec. 14. Minnesota Statutes 2020, section 273.1245, subdivision 1, is amended to read:
117.6    Subdivision 1. Private or nonpublic data. The following data are private or nonpublic
117.7data as defined in section 13.02, subdivisions 9 and 12, when they are submitted to a county
117.8or local assessor under section 273.124, 273.13, or another section, to support a claim for
117.9the property tax homestead classification under section 273.13, or other property tax
117.10classification or benefit:
117.11(1) Social Security numbers;
117.12(2) individual tax identification numbers;
117.13(2) (3) copies of state or federal income tax returns; and
117.14(3) (4) state or federal income tax return information, including the federal income tax
117.15schedule F.
117.16EFFECTIVE DATE.This section is effective for applications for homestead filed in
117.172021 and thereafter.

117.18    Sec. 15. Minnesota Statutes 2020, section 273.13, subdivision 23, is amended to read:
117.19    Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural land
117.20that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class
117.212a land under the same ownership. The market value of the house and garage and immediately
117.22surrounding one acre of land has the same classification rates as class 1a or 1b property
117.23under subdivision 22. The value of the remaining land including improvements up to the
117.24first tier valuation limit of agricultural homestead property has a classification rate of 0.5
117.25percent of market value. The remaining property over the first tier has a classification rate
117.26of one percent of market value. For purposes of this subdivision, the "first tier valuation
117.27limit of agricultural homestead property" and "first tier" means the limit certified under
117.28section 273.11, subdivision 23.
117.29(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
117.30are agricultural land and buildings. Class 2a property has a classification rate of one percent
117.31of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a
118.1property must also include any property that would otherwise be classified as 2b, but is
118.2interspersed with class 2a property, including but not limited to sloughs, wooded wind
118.3shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement,
118.4and other similar land that is impractical for the assessor to value separately from the rest
118.5of the property or that is unlikely to be able to be sold separately from the rest of the property.
118.6An assessor may classify the part of a parcel described in this subdivision that is used
118.7for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
118.8(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that
118.9are unplatted real estate, rural in character and not used for agricultural purposes, including
118.10land used for growing trees for timber, lumber, and wood and wood products, that is not
118.11improved with a structure. The presence of a minor, ancillary nonresidential structure as
118.12defined by the commissioner of revenue does not disqualify the property from classification
118.13under this paragraph. Any parcel of 20 acres or more improved with a structure that is not
118.14a minor, ancillary nonresidential structure must be split-classified, and ten acres must be
118.15assigned to the split parcel containing the structure. If a parcel of 20 acres or more is enrolled
118.16in the sustainable forest management incentive program under chapter 290C, the number
118.17of acres assigned to the split parcel improved with a structure that is not a minor, ancillary
118.18nonresidential structure must equal three acres or the number of acres excluded from the
118.19sustainable forest incentive act covenant due to the structure, whichever is greater. Class
118.202b property has a classification rate of one percent of market value unless it is part of an
118.21agricultural homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
118.22(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
118.23acres statewide per taxpayer that is being managed under a forest management plan that
118.24meets the requirements of chapter 290C, but is not enrolled in the sustainable forest resource
118.25management incentive program. It has a classification rate of .65 percent, provided that the
118.26owner of the property must apply to the assessor in order for the property to initially qualify
118.27for the reduced rate and provide the information required by the assessor to verify that the
118.28property qualifies for the reduced rate. If the assessor receives the application and information
118.29before May 1 in an assessment year, the property qualifies beginning with that assessment
118.30year. If the assessor receives the application and information after April 30 in an assessment
118.31year, the property may not qualify until the next assessment year. The commissioner of
118.32natural resources must concur that the land is qualified. The commissioner of natural
118.33resources shall annually provide county assessors verification information on a timely basis.
118.34The presence of a minor, ancillary nonresidential structure as defined by the commissioner
118.35of revenue does not disqualify the property from classification under this paragraph.
119.1(e) Agricultural land as used in this section means:
119.2(1) contiguous acreage of ten acres or more, used during the preceding year for
119.3agricultural purposes; or
119.4(2) contiguous acreage used during the preceding year for an intensive livestock or
119.5poultry confinement operation, provided that land used only for pasturing or grazing does
119.6not qualify under this clause.
119.7"Agricultural purposes" as used in this section means the raising, cultivation, drying, or
119.8storage of agricultural products for sale, or the storage of machinery or equipment used in
119.9support of agricultural production by the same farm entity. For a property to be classified
119.10as agricultural based only on the drying or storage of agricultural products, the products
119.11being dried or stored must have been produced by the same farm entity as the entity operating
119.12the drying or storage facility. "Agricultural purposes" also includes (i) enrollment in a local
119.13conservation program or the Reinvest in Minnesota program under sections 103F.501 to
119.14103F.535 or the federal Conservation Reserve Program as contained in Public Law 99-198
119.15or a similar state or federal conservation program if the property was classified as agricultural
119.16(A) under this subdivision for taxes payable in 2003 because of its enrollment in a qualifying
119.17program and the land remains enrolled or (B) in the year prior to its enrollment, or (ii) use
119.18of land, not to exceed three acres, to provide environmental benefits such as buffer strips,
119.19old growth forest restoration or retention, or retention ponds to prevent soil erosion. For
119.20purposes of this section, a "local conservation program" means a program administered by
119.21a town, statutory or home rule charter city, or county, including a watershed district, water
119.22management organization, or soil and water conservation district, in which landowners
119.23voluntarily enroll land and receive incentive payments equal to at least $50 per acre in
119.24exchange for use or other restrictions placed on the land. In order for property to qualify
119.25under the local conservation program provision, a taxpayer must apply to the assessor by
119.26February 1 of the assessment year and must submit the information required by the assessor,
119.27including but not limited to a copy of the program requirements, the specific agreement
119.28between the land owner and the local agency, if applicable, and a map of the conservation
119.29area. Agricultural classification shall not be based upon the market value of any residential
119.30structures on the parcel or contiguous parcels under the same ownership.
119.31"Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous
119.32portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion
119.33of, a set of contiguous tax parcels under that section that are owned by the same person.
119.34(f) Agricultural land under this section also includes:
120.1(1) contiguous acreage that is less than ten acres in size and exclusively used in the
120.2preceding year for raising or cultivating agricultural products; or
120.3(2) contiguous acreage that contains a residence and is less than 11 acres in size, if the
120.4contiguous acreage exclusive of the house, garage, and surrounding one acre of land was
120.5used in the preceding year for one or more of the following three uses:
120.6(i) for an intensive grain drying or storage operation, or for intensive machinery or
120.7equipment storage activities used to support agricultural activities on other parcels of property
120.8operated by the same farming entity;
120.9(ii) as a nursery, provided that only those acres used intensively to produce nursery stock
120.10are considered agricultural land; or
120.11(iii) for intensive market farming; for purposes of this paragraph, "market farming"
120.12means the cultivation of one or more fruits or vegetables or production of animal or other
120.13agricultural products for sale to local markets by the farmer or an organization with which
120.14the farmer is affiliated.
120.15"Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as
120.16described in section 272.193, or all of a set of contiguous tax parcels under that section that
120.17are owned by the same person.
120.18(g) Land shall be classified as agricultural even if all or a portion of the agricultural use
120.19of that property is the leasing to, or use by another person for agricultural purposes.
120.20Classification under this subdivision is not determinative for qualifying under section
120.21273.111.
120.22(h) The property classification under this section supersedes, for property tax purposes
120.23only, any locally administered agricultural policies or land use restrictions that define
120.24minimum or maximum farm acreage.
120.25(i) The term "agricultural products" as used in this subdivision includes production for
120.26sale of:
120.27(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
120.28animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, bees,
120.29and apiary products by the owner;
120.30(2) aquacultural products for sale and consumption, as defined under section 17.47, if
120.31the aquaculture occurs on land zoned for agricultural use;
121.1(3) the commercial boarding of horses, which may include related horse training and
121.2riding instruction, if the boarding is done on property that is also used for raising pasture
121.3to graze horses or raising or cultivating other agricultural products as defined in clause (1);
121.4(4) property which is owned and operated by nonprofit organizations used for equestrian
121.5activities, excluding racing;
121.6(5) game birds and waterfowl bred and raised (i) on a game farm licensed under section
121.797A.105, provided that the annual licensing report to the Department of Natural Resources,
121.8which must be submitted annually by March 30 to the assessor, indicates that at least 500
121.9birds were raised or used for breeding stock on the property during the preceding year and
121.10that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a
121.11shooting preserve licensed under section 97A.115;
121.12(6) insects primarily bred to be used as food for animals;
121.13(7) trees, grown for sale as a crop, including short rotation woody crops, and not sold
121.14for timber, lumber, wood, or wood products; and
121.15(8) maple syrup taken from trees grown by a person licensed by the Minnesota
121.16Department of Agriculture under chapter 28A as a food processor.
121.17(j) If a parcel used for agricultural purposes is also used for commercial or industrial
121.18purposes, including but not limited to:
121.19(1) wholesale and retail sales;
121.20(2) processing of raw agricultural products or other goods;
121.21(3) warehousing or storage of processed goods; and
121.22(4) office facilities for the support of the activities enumerated in clauses (1), (2), and
121.23(3),
121.24the assessor shall classify the part of the parcel used for agricultural purposes as class
121.251b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use.
121.26The grading, sorting, and packaging of raw agricultural products for first sale is considered
121.27an agricultural purpose. A greenhouse or other building where horticultural or nursery
121.28products are grown that is also used for the conduct of retail sales must be classified as
121.29agricultural if it is primarily used for the growing of horticultural or nursery products from
121.30seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products.
121.31Use of a greenhouse or building only for the display of already grown horticultural or nursery
121.32products does not qualify as an agricultural purpose.
122.1(k) The assessor shall determine and list separately on the records the market value of
122.2the homestead dwelling and the one acre of land on which that dwelling is located. If any
122.3farm buildings or structures are located on this homesteaded acre of land, their market value
122.4shall not be included in this separate determination.
122.5(l) Class 2d airport landing area consists of a landing area or public access area of a
122.6privately owned public use airport. It has a classification rate of one percent of market value.
122.7To qualify for classification under this paragraph, a privately owned public use airport must
122.8be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing
122.9area" means that part of a privately owned public use airport properly cleared, regularly
122.10maintained, and made available to the public for use by aircraft and includes runways,
122.11taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing
122.12area also includes land underlying both the primary surface and the approach surfaces that
122.13comply with all of the following:
122.14(i) the land is properly cleared and regularly maintained for the primary purposes of the
122.15landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities
122.16for servicing, repair, or maintenance of aircraft is not included as a landing area;
122.17(ii) the land is part of the airport property; and
122.18(iii) the land is not used for commercial or residential purposes.
122.19The land contained in a landing area under this paragraph must be described and certified
122.20by the commissioner of transportation. The certification is effective until it is modified, or
122.21until the airport or landing area no longer meets the requirements of this paragraph. For
122.22purposes of this paragraph, "public access area" means property used as an aircraft parking
122.23ramp, apron, or storage hangar, or an arrival and departure building in connection with the
122.24airport.
122.25(m) Class 2e consists of land with a commercial aggregate deposit that is not actively
122.26being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
122.27located in a county that has elected to opt-out of the aggregate preservation program as
122.28provided in section 273.1115, subdivision 6. It has a classification rate of one percent of
122.29market value. To qualify for classification under this paragraph, the property must be at
122.30least ten contiguous acres in size and the owner of the property must record with the county
122.31recorder of the county in which the property is located an affidavit containing:
122.32(1) a legal description of the property;
123.1(2) a disclosure that the property contains a commercial aggregate deposit that is not
123.2actively being mined but is present on the entire parcel enrolled;
123.3(3) documentation that the conditional use under the county or local zoning ordinance
123.4of this property is for mining; and
123.5(4) documentation that a permit has been issued by the local unit of government or the
123.6mining activity is allowed under local ordinance. The disclosure must include a statement
123.7from a registered professional geologist, engineer, or soil scientist delineating the deposit
123.8and certifying that it is a commercial aggregate deposit.
123.9For purposes of this section and section 273.1115, "commercial aggregate deposit"
123.10means a deposit that will yield crushed stone or sand and gravel that is suitable for use as
123.11a construction aggregate; and "actively mined" means the removal of top soil and overburden
123.12in preparation for excavation or excavation of a commercial deposit.
123.13(n) When any portion of the property under this subdivision or subdivision 22 begins to
123.14be actively mined, the owner must file a supplemental affidavit within 60 days from the
123.15day any aggregate is removed stating the number of acres of the property that is actively
123.16being mined. The acres actively being mined must be (1) valued and classified under
123.17subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate
123.18resource preservation property tax program under section 273.1115, if the land was enrolled
123.19in that program. Copies of the original affidavit and all supplemental affidavits must be
123.20filed with the county assessor, the local zoning administrator, and the Department of Natural
123.21Resources, Division of Land and Minerals. A supplemental affidavit must be filed each
123.22time a subsequent portion of the property is actively mined, provided that the minimum
123.23acreage change is five acres, even if the actual mining activity constitutes less than five
123.24acres.
123.25(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not
123.26rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in
123.27section 14.386 concerning exempt rules do not apply.
123.28EFFECTIVE DATE.This section is effective for assessment year 2022 and thereafter.

123.29    Sec. 16. Minnesota Statutes 2020, section 273.13, subdivision 25, is amended to read:
123.30    Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more units
123.31and used or held for use by the owner or by the tenants or lessees of the owner as a residence
123.32for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a
123.33also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt
124.1under section 272.02, and contiguous property used for hospital purposes, without regard
124.2to whether the property has been platted or subdivided. The market value of class 4a property
124.3has a classification rate of 1.25 percent.
124.4    (b) Class 4b includes:
124.5    (1) residential real estate containing less than four units, including property rented as a
124.6short-term rental property for more than 14 days in the preceding year, that does not qualify
124.7as class 4bb, other than seasonal residential recreational property;
124.8    (2) manufactured homes not classified under any other provision;
124.9    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm
124.10classified under subdivision 23, paragraph (b) containing two or three units; and
124.11    (4) unimproved property that is classified residential as determined under subdivision
124.1233.
124.13    For the purposes of this paragraph, "short-term rental property" means nonhomestead
124.14residential real estate rented for periods of less than 30 consecutive days.
124.15    The market value of class 4b property has a classification rate of 1.25 percent.
124.16    (c) Class 4bb includes:
124.17    (1) nonhomestead residential real estate containing one unit, other than seasonal
124.18residential recreational property;
124.19    (2) a single family dwelling, garage, and surrounding one acre of property on a
124.20nonhomestead farm classified under subdivision 23, paragraph (b); and
124.21    (3) a condominium-type storage unit having an individual property identification number
124.22that is not used for a commercial purpose.
124.23    Class 4bb property has the same classification rates as class 1a property under subdivision
124.2422.
124.25    Property that has been classified as seasonal residential recreational property at any time
124.26during which it has been owned by the current owner or spouse of the current owner does
124.27not qualify for class 4bb.
124.28    (d) Class 4c property includes:
124.29    (1) except as provided in subdivision 22, paragraph (c), real and personal property
124.30devoted to commercial temporary and seasonal residential occupancy for recreation purposes,
124.31for not more than 250 days in the year preceding the year of assessment. For purposes of
125.1this clause, property is devoted to a commercial purpose on a specific day if any portion of
125.2the property is used for residential occupancy, and a fee is charged for residential occupancy.
125.3Class 4c property under this clause must contain three or more rental units. A "rental unit"
125.4is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
125.5equipped with water and electrical hookups for recreational vehicles. A camping pad offered
125.6for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c
125.7under this clause regardless of the term of the rental agreement, as long as the use of the
125.8camping pad does not exceed 250 days. In order for a property to be classified under this
125.9clause, either (i) the business located on the property must provide recreational activities,
125.10at least 40 percent of the annual gross lodging receipts related to the property must be from
125.11business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid
125.12bookings by lodging guests during the year must be for periods of at least two consecutive
125.13nights; or (B) at least 20 percent of the annual gross receipts must be from charges for
125.14providing recreational activities, or (ii) the business must contain 20 or fewer rental units,
125.15and must be located in a township or a city with a population of 2,500 or less located outside
125.16the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion
125.17of a state trail administered by the Department of Natural Resources. For purposes of item
125.18(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c
125.19property also includes commercial use real property used exclusively for recreational
125.20purposes in conjunction with other class 4c property classified under this clause and devoted
125.21to temporary and seasonal residential occupancy for recreational purposes, up to a total of
125.22two acres, provided the property is not devoted to commercial recreational use for more
125.23than 250 days in the year preceding the year of assessment and is located within two miles
125.24of the class 4c property with which it is used. In order for a property to qualify for
125.25classification under this clause, the owner must submit a declaration to the assessor
125.26designating the cabins or units occupied for 250 days or less in the year preceding the year
125.27of assessment by January 15 of the assessment year. Those cabins or units and a proportionate
125.28share of the land on which they are located must be designated class 4c under this clause
125.29as otherwise provided. The remainder of the cabins or units and a proportionate share of
125.30the land on which they are located will be designated as class 3a. The owner of property
125.31desiring designation as class 4c property under this clause must provide guest registers or
125.32other records demonstrating that the units for which class 4c designation is sought were not
125.33occupied for more than 250 days in the year preceding the assessment if so requested. The
125.34portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center
125.35or meeting room, and (5) other nonresidential facility operated on a commercial basis not
125.36directly related to temporary and seasonal residential occupancy for recreation purposes
126.1does not qualify for class 4c. For the purposes of this paragraph, "recreational activities"
126.2means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country
126.3ski equipment; providing marina services, launch services, or guide services; or selling bait
126.4and fishing tackle;
126.5    (2) qualified property used as a golf course if:
126.6    (i) it is open to the public on a daily fee basis. It may charge membership fees or dues,
126.7but a membership fee may not be required in order to use the property for golfing, and its
126.8green fees for golfing must be comparable to green fees typically charged by municipal
126.9courses; and
126.10    (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
126.11    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with
126.12the golf course is classified as class 3a property;
126.13    (3) real property up to a maximum of three acres of land owned and used by a nonprofit
126.14community service oriented organization and not used for residential purposes on either a
126.15temporary or permanent basis, provided that:
126.16    (i) the property is not used for a revenue-producing activity for more than six days in
126.17the calendar year preceding the year of assessment; or
126.18    (ii) the organization makes annual charitable contributions and donations at least equal
126.19to the property's previous year's property taxes and the property is allowed to be used for
126.20public and community meetings or events for no charge, as appropriate to the size of the
126.21facility.
126.22    For purposes of this clause:
126.23    (A) "charitable contributions and donations" has the same meaning as lawful gambling
126.24purposes under section 349.12, subdivision 25, excluding those purposes relating to the
126.25payment of taxes, assessments, fees, auditing costs, and utility payments;
126.26    (B) "property taxes" excludes the state general tax;
126.27    (C) a "nonprofit community service oriented organization" means any corporation,
126.28society, association, foundation, or institution organized and operated exclusively for
126.29charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
126.30federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
126.31Revenue Code; and
127.1    (D) "revenue-producing activities" shall include but not be limited to property or that
127.2portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
127.3liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
127.4alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
127.5insurance business, or office or other space leased or rented to a lessee who conducts a
127.6for-profit enterprise on the premises.
127.7    Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The
127.8use of the property for social events open exclusively to members and their guests for periods
127.9of less than 24 hours, when an admission is not charged nor any revenues are received by
127.10the organization shall not be considered a revenue-producing activity.
127.11    The organization shall maintain records of its charitable contributions and donations
127.12and of public meetings and events held on the property and make them available upon
127.13request any time to the assessor to ensure eligibility. An organization meeting the requirement
127.14under item (ii) must file an application by May 1 with the assessor for eligibility for the
127.15current year's assessment. The commissioner shall prescribe a uniform application form
127.16and instructions;
127.17    (4) postsecondary student housing of not more than one acre of land that is owned by a
127.18nonprofit corporation organized under chapter 317A and is used exclusively by a student
127.19cooperative, sorority, or fraternity for on-campus housing or housing located within two
127.20miles of the border of a college campus;
127.21    (5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding
127.22including manufactured home parks described in items (ii) and (iii), (ii) manufactured home
127.23parks as defined in section 327.14, subdivision 3, that are described in section 273.124,
127.24subdivision 3a, and (iii) class I manufactured home parks as defined in section 327C.01,
127.25subdivision 13;
127.26    (6) real property that is actively and exclusively devoted to indoor fitness, health, social,
127.27recreational, and related uses, is owned and operated by a not-for-profit corporation, and is
127.28located within the metropolitan area as defined in section 473.121, subdivision 2;
127.29    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt under
127.30section 272.01, subdivision 2, and the land on which it is located, provided that:
127.31    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
127.32Airports Commission, or group thereof; and
128.1    (ii) the land lease, or any ordinance or signed agreement restricting the use of the leased
128.2premise, prohibits commercial activity performed at the hangar.
128.3    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be
128.4filed by the new owner with the assessor of the county where the property is located within
128.560 days of the sale;
128.6    (8) a privately owned noncommercial aircraft storage hangar not exempt under section
128.7272.01, subdivision 2, and the land on which it is located, provided that:
128.8    (i) the land abuts a public airport; and
128.9    (ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement
128.10restricting the use of the premises, prohibiting commercial use or activity performed at the
128.11hangar; and
128.12    (9) residential real estate, a portion of which is used by the owner for homestead purposes,
128.13and that is also a place of lodging, if all of the following criteria are met:
128.14    (i) rooms are provided for rent to transient guests that generally stay for periods of 14
128.15or fewer days;
128.16    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated in
128.17the basic room rate;
128.18    (iii) meals are not provided to the general public except for special events on fewer than
128.19seven days in the calendar year preceding the year of the assessment; and
128.20    (iv) the owner is the operator of the property.
128.21    The market value subject to the 4c classification under this clause is limited to five rental
128.22units. Any rental units on the property in excess of five, must be valued and assessed as
128.23class 3a. The portion of the property used for purposes of a homestead by the owner must
128.24be classified as class 1a property under subdivision 22;
128.25    (10) real property up to a maximum of three acres and operated as a restaurant as defined
128.26under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under
128.27section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to
128.28commercial purposes for not more than 250 consecutive days, or receives at least 60 percent
128.29of its annual gross receipts from business conducted during four consecutive months. Gross
128.30receipts from the sale of alcoholic beverages must be included in determining the property's
128.31qualification under item (ii). The property's primary business must be as a restaurant and
128.32not as a bar. Gross receipts from gift shop sales located on the premises must be excluded.
129.1Owners of real property desiring 4c classification under this clause must submit an annual
129.2declaration to the assessor by February 1 of the current assessment year, based on the
129.3property's relevant information for the preceding assessment year;
129.4(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as
129.5a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public
129.6and devoted to recreational use for marina services. The marina owner must annually provide
129.7evidence to the assessor that it provides services, including lake or river access to the public
129.8by means of an access ramp or other facility that is either located on the property of the
129.9marina or at a publicly owned site that abuts the property of the marina. No more than 800
129.10feet of lakeshore may be included in this classification. Buildings used in conjunction with
129.11a marina for marina services, including but not limited to buildings used to provide food
129.12and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified
129.13as class 3a property; and
129.14(12) real and personal property devoted to noncommercial temporary and seasonal
129.15residential occupancy for recreation purposes.
129.16    Class 4c property has a classification rate of 1.5 percent of market value, except that (i)
129.17each parcel of noncommercial seasonal residential recreational property under clause (12)
129.18has the same classification rates as class 4bb property, (ii) manufactured home parks assessed
129.19under clause (5), item (i), have the same classification rate as class 4b property, the market
129.20value of manufactured home parks assessed under clause (5), item (ii), have a classification
129.21rate of 0.75 percent if more than 50 percent of the lots in the park are occupied by
129.22shareholders in the cooperative corporation or association and a classification rate of one
129.23percent if 50 percent or less of the lots are so occupied, and class I manufactured home
129.24parks as defined in section 327C.01, subdivision 13, have a classification rate of 1.0 have
129.25a classification rate of 0.75 percent, (iii) commercial-use seasonal residential recreational
129.26property and marina recreational land as described in clause (11), has a classification rate
129.27of one percent for the first $500,000 of market value, and 1.25 percent for the remaining
129.28market value, (iv) the market value of property described in clause (4) has a classification
129.29rate of one percent, (v) the market value of property described in clauses (2), (6), and (10)
129.30has a classification rate of 1.25 percent, (vi) that portion of the market value of property in
129.31clause (9) qualifying for class 4c property has a classification rate of 1.25 percent, and (vii)
129.32property qualifying for classification under clause (3) that is owned or operated by a
129.33congressionally chartered veterans organization has a classification rate of one percent. The
129.34commissioner of veterans affairs must provide a list of congressionally chartered veterans
130.1organizations to the commissioner of revenue by June 30, 2017, and by January 1, 2018,
130.2and each year thereafter.
130.3    (e) Class 4d property is qualifying low-income rental housing certified to the assessor
130.4by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of
130.5the units in the building qualify as low-income rental housing units as certified under section
130.6273.128, subdivision 3, only the proportion of qualifying units to the total number of units
130.7in the building qualify for class 4d. The remaining portion of the building shall be classified
130.8by the assessor based upon its use. Class 4d also includes the same proportion of land as
130.9the qualifying low-income rental housing units are to the total units in the building. For all
130.10properties qualifying as class 4d, the market value determined by the assessor must be based
130.11on the normal approach to value using normal unrestricted rents.
130.12    (f) The first tier of market value of class 4d property has a classification rate of 0.75
130.13percent. The remaining value of class 4d property has a classification rate of 0.25 percent.
130.14For the purposes of this paragraph, the "first tier of market value of class 4d property" means
130.15the market value of each housing unit up to the first tier limit. For the purposes of this
130.16paragraph, all class 4d property value must be assigned to individual housing units. The
130.17first tier limit is $100,000 $174,000 for assessment year 2014 2022 and assessment year
130.182023. For subsequent years, the limit is adjusted each year by the average statewide change
130.19in estimated market value of property classified as class 4a and 4d under this section for
130.20the previous assessment year, excluding valuation change due to new construction, rounded
130.21to the nearest $1,000, provided, however, that the limit may never be less than $100,000.
130.22Beginning with assessment year 2015, the commissioner of revenue must certify the limit
130.23for each assessment year by November 1 of the previous year.
130.24EFFECTIVE DATE; APPLICATION.(a) The amendment to paragraph (d) is effective
130.25beginning with property taxes payable in 2023 and thereafter.
130.26(b) The amendment to paragraph (f) is effective beginning with assessment year 2022.

130.27    Sec. 17. Minnesota Statutes 2020, section 273.13, subdivision 34, is amended to read:
130.28    Subd. 34. Homestead of veteran with a disability or family caregiver. (a) All or a
130.29portion of the market value of property owned by a veteran and serving as the veteran's
130.30homestead under this section is excluded in determining the property's taxable market value
130.31if the veteran has a service-connected disability of 70 percent or more as certified by the
130.32United States Department of Veterans Affairs. To qualify for exclusion under this subdivision,
130.33the veteran must have been honorably discharged from the United States armed forces, as
131.1indicated by United States Government Form DD214 or other official military discharge
131.2papers.
131.3    (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded,
131.4except as provided in clause (2); and
131.5    (2) for a total (100 percent) and permanent disability, $300,000 of market value is
131.6excluded.
131.7    (c) If a veteran with a disability qualifying for a valuation exclusion under paragraph
131.8(b), clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
131.9spouse holds the legal or beneficial title to the homestead and permanently resides there,
131.10the exclusion shall carry over to the benefit of the veteran's spouse until such time as the
131.11spouse remarries, or sells, transfers, or otherwise disposes of the property, except as otherwise
131.12provided in paragraph (n). Qualification under this paragraph requires an application under
131.13paragraph (h), and a spouse must notify the assessor if there is a change in the spouse's
131.14marital status, ownership of the property, or use of the property as a permanent residence.
131.15(d) If the spouse of a member of any branch or unit of the United States armed forces
131.16who dies due to a service-connected cause while serving honorably in active service, as
131.17indicated on United States Government Form DD1300 or DD2064, holds the legal or
131.18beneficial title to a homestead and permanently resides there, the spouse is entitled to the
131.19benefit described in paragraph (b), clause (2), until such time as the spouse remarries or
131.20sells, transfers, or otherwise disposes of the property, except as otherwise provided in
131.21paragraph (n).
131.22(e) If a veteran meets the disability criteria of paragraph (a) but does not own property
131.23classified as homestead in the state of Minnesota, then the homestead of the veteran's primary
131.24family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify
131.25for under paragraph (b).
131.26    (f) In the case of an agricultural homestead, only the portion of the property consisting
131.27of the house and garage and immediately surrounding one acre of land qualifies for the
131.28valuation exclusion under this subdivision.
131.29    (g) A property qualifying for a valuation exclusion under this subdivision is not eligible
131.30for the market value exclusion under subdivision 35, or classification under subdivision 22,
131.31paragraph (b).
131.32    (h) To qualify for a valuation exclusion under this subdivision a property owner must
131.33apply to the assessor by December 15 31 of the first assessment year for which the exclusion
132.1is sought. For an application received after December 15, the exclusion shall become effective
132.2for the following assessment year. Except as provided in paragraph (c), the owner of a
132.3property that has been accepted for a valuation exclusion must notify the assessor if there
132.4is a change in ownership of the property or in the use of the property as a homestead.
132.5(i) A first-time application by a qualifying spouse for the market value exclusion under
132.6paragraph (d) must be made any time within two years of the death of the service member.
132.7(j) For purposes of this subdivision:
132.8(1) "active service" has the meaning given in section 190.05;
132.9(2) "own" means that the person's name is present as an owner on the property deed;
132.10(3) "primary family caregiver" means a person who is approved by the secretary of the
132.11United States Department of Veterans Affairs for assistance as the primary provider of
132.12personal care services for an eligible veteran under the Program of Comprehensive Assistance
132.13for Family Caregivers, codified as United States Code, title 38, section 1720G; and
132.14(4) "veteran" has the meaning given the term in section 197.447.
132.15(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion
132.16under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit
132.17under paragraph (b), clause (2), until the spouse remarries or sells, transfers, or otherwise
132.18disposes of the property, except as otherwise provided in paragraph (n), if:
132.19(1) the spouse files a first-time application within two years of the death of the service
132.20member or by June 1, 2019, whichever is later;
132.21(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the
132.22homestead and permanently resides there;
132.23(3) the veteran met the honorable discharge requirements of paragraph (a); and
132.24(4) the United States Department of Veterans Affairs certifies that:
132.25(i) the veteran met the total (100 percent) and permanent disability requirement under
132.26paragraph (b), clause (2); or
132.27(ii) the spouse has been awarded dependency and indemnity compensation.
132.28(l) The purpose of this provision of law providing a level of homestead property tax
132.29relief for veterans with a disability, their primary family caregivers, and their surviving
132.30spouses is to help ease the burdens of war for those among our state's citizens who bear
132.31those burdens most heavily.
133.1(m) By July 1, the county veterans service officer must certify the disability rating and
133.2permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.
133.3(n) A spouse who received the benefit in paragraph (c), (d), or (k) but no longer holds
133.4the legal or beneficial title to the property may continue to receive the exclusion for a
133.5property other than the property for which the exclusion was initially granted until the spouse
133.6remarries or sells, transfers, or otherwise disposes of the property, provided that:
133.7(1) the spouse applies under paragraph (h) for the continuation of the exclusion allowed
133.8under this paragraph;
133.9(2) the spouse holds the legal or beneficial title to the property for which the continuation
133.10of the exclusion is sought under this paragraph, and permanently resides there;
133.11(3) the estimated market value of the property for which the exclusion is sought under
133.12this paragraph is less than or equal to the estimated market value of the property that first
133.13received the exclusion, based on the value of each property on the date of the sale of the
133.14property that first received the exclusion; and
133.15(4) the spouse has not previously received the benefit under this paragraph for a property
133.16other than the property for which the exclusion is sought.
133.17EFFECTIVE DATE.This section is effective beginning with assessments in 2021.

133.18    Sec. 18. Minnesota Statutes 2020, section 273.1315, subdivision 2, is amended to read:
133.19    Subd. 2. Class 1b homestead declaration 2009 and thereafter. (a) Any property owner
133.20seeking classification and assessment of the owner's homestead as class 1b property pursuant
133.21to section 273.13, subdivision 22, paragraph (b), after October 1, 2008, shall file with the
133.22county assessor a class 1b homestead declaration, on a form prescribed by the commissioner
133.23of revenue. The declaration must contain the following information:
133.24    (1) the information necessary to verify that, on or before June 30 of the filing year, the
133.25property owner or the owner's spouse satisfies the requirements of section 273.13, subdivision
133.2622, paragraph (b), for class 1b classification; and
133.27    (2) any additional information prescribed by the commissioner.
133.28    (b) The declaration must be filed on or before October 1 to be effective for property
133.29taxes payable during the succeeding calendar year. The Social Security numbers, individual
133.30tax identification numbers, and income and medical information received from the property
133.31owner pursuant to this subdivision are private data on individuals as defined in section
133.3213.02. If approved by the assessor, the declaration remains in effect until the property no
134.1longer qualifies under section 273.13, subdivision 22, paragraph (b). Failure to notify the
134.2assessor within 30 days that the property no longer qualifies under that paragraph because
134.3of a sale, change in occupancy, or change in the status or condition of an occupant shall
134.4result in the penalty provided in section 273.124, subdivision 13b, computed on the basis
134.5of the class 1b benefits for the property, and the property shall lose its current class 1b
134.6classification.
134.7EFFECTIVE DATE.This section is effective for applications for homestead filed in
134.82021 and thereafter.

134.9    Sec. 19. Minnesota Statutes 2020, section 275.025, subdivision 1, is amended to read:
134.10    Subdivision 1. Levy amount. The state general levy is levied against
134.11commercial-industrial property and seasonal residential recreational property, as defined
134.12in this section. The state general levy for commercial-industrial property is $737,090,000
134.13$716,990,000 for taxes payable in 2020 2022 and thereafter. The state general levy for
134.14seasonal-recreational property is $41,690,000 for taxes payable in 2020 and thereafter. The
134.15tax under this section is not treated as a local tax rate under section 469.177 and is not the
134.16levy of a governmental unit under chapters 276A and 473F.
134.17The commissioner shall increase or decrease the preliminary or final rate for a year as
134.18necessary to account for errors and tax base changes that affected a preliminary or final rate
134.19for either of the two preceding years. Adjustments are allowed to the extent that the necessary
134.20information is available to the commissioner at the time the rates for a year must be certified,
134.21and for the following reasons:
134.22(1) an erroneous report of taxable value by a local official;
134.23(2) an erroneous calculation by the commissioner; and
134.24(3) an increase or decrease in taxable value for commercial-industrial or seasonal
134.25residential recreational property reported to the commissioner under section 270C.85,
134.26subdivision 2, clause (4), for the same year.
134.27The commissioner may, but need not, make adjustments if the total difference in the tax
134.28levied for the year would be less than $100,000.
134.29EFFECTIVE DATE.This section is effective beginning with property taxes payable
134.30in 2022 and thereafter.

135.1    Sec. 20. Minnesota Statutes 2020, section 275.025, subdivision 2, is amended to read:
135.2    Subd. 2. Commercial-industrial tax capacity. For the purposes of this section,
135.3"commercial-industrial tax capacity" means the tax capacity of all taxable property classified
135.4as class 3 or class 5(1) under section 273.13, excluding:
135.5(1) the tax capacity attributable to the first $100,000 $150,000 of market value of each
135.6parcel of commercial-industrial property as defined under section 273.13, subdivision 24,
135.7clauses (1) and (2);
135.8(2) electric generation attached machinery under class 3; and
135.9(3) property described in section 473.625.
135.10County commercial-industrial tax capacity amounts are not adjusted for the captured
135.11net tax capacity of a tax increment financing district under section 469.177, subdivision 2,
135.12the net tax capacity of transmission lines deducted from a local government's total net tax
135.13capacity under section 273.425, or fiscal disparities contribution and distribution net tax
135.14capacities under chapter 276A or 473F. For purposes of this subdivision, the procedures
135.15for determining eligibility for tier 1 under section 273.13, subdivision 24, clauses (1) and
135.16(2), shall apply in determining the portion of a property eligible to be considered within the
135.17first $100,000 $150,000 of market value.
135.18EFFECTIVE DATE.This section is effective beginning with property taxes payable
135.19in 2022 and thereafter.

135.20    Sec. 21. Minnesota Statutes 2020, section 275.065, subdivision 1, is amended to read:
135.21    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the contrary,
135.22on or before September 30, each county, home rule charter or statutory city, town, and
135.23special taxing district, excluding the Metropolitan Council and the Metropolitan Mosquito
135.24Control Commission, shall certify to the county auditor the proposed property tax levy for
135.25taxes payable in the following year. For towns, the final certified levy shall also be considered
135.26the proposed levy.
135.27(b) Each county and city with a population of at least 500 must annually notify the public
135.28of its revenue, expenditures, fund balances, and other relevant budget information that is
135.29used to establish the proposed property tax levy. Each county and city with a population of
135.30at least 500 must hold a public meeting on the budget and proposed levy. The meeting must
135.31be held at least seven days prior to the day that the proposed levy under this subdivision is
135.32certified, the public must be allowed to speak at the meeting, and the meeting must not
135.33begin before 6:00 p.m.
136.1    (b) (c) Notwithstanding any law or charter to the contrary, on or before September 15,
136.2the Metropolitan Council and the Metropolitan Mosquito Control Commission shall adopt
136.3and certify to the county auditor a proposed property tax levy for taxes payable in the
136.4following year.
136.5    (c) (d) On or before September 30, each school district that has not mutually agreed with
136.6its home county to extend this date shall certify to the county auditor the proposed property
136.7tax levy for taxes payable in the following year. Each school district that has agreed with
136.8its home county to delay the certification of its proposed property tax levy must certify its
136.9proposed property tax levy for the following year no later than October 7. The school district
136.10shall certify the proposed levy as:
136.11    (1) a specific dollar amount by school district fund, broken down between voter-approved
136.12and non-voter-approved levies and between referendum market value and tax capacity
136.13levies; or
136.14    (2) the maximum levy limitation certified by the commissioner of education according
136.15to section 126C.48, subdivision 1.
136.16    (d) (e) If the board of estimate and taxation or any similar board that establishes maximum
136.17tax levies for taxing jurisdictions within a first class city certifies the maximum property
136.18tax levies for funds under its jurisdiction by charter to the county auditor by the date specified
136.19in paragraph (a), the city shall be deemed to have certified its levies for those taxing
136.20jurisdictions.
136.21    (e) (f) For purposes of this section, "special taxing district" means a special taxing district
136.22as defined in section 275.066. Intermediate school districts that levy a tax under chapter
136.23124 or 136D, joint powers boards established under sections 123A.44 to 123A.445, and
136.24Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special
136.25taxing districts for purposes of this section.
136.26(f) (g) At the meeting at which a taxing authority, other than a town, adopts its proposed
136.27tax levy under this subdivision, the taxing authority shall announce the time and place of
136.28any subsequent regularly scheduled meetings at which the budget and levy will be discussed
136.29and at which the public will be allowed to speak. The time and place of those meetings must
136.30be included in the proceedings or summary of proceedings published in the official newspaper
136.31of the taxing authority under section 123B.09, 375.12, or 412.191.
136.32EFFECTIVE DATE.This section is effective for property taxes payable in 2022 and
136.33thereafter.

137.1    Sec. 22. Minnesota Statutes 2020, section 275.065, subdivision 3, is amended to read:
137.2    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare and
137.3the county treasurer shall deliver after November 10 and on or before November 24 each
137.4year, by first class mail to each taxpayer at the address listed on the county's current year's
137.5assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
137.6the treasurer may send the notice in electronic form or by electronic mail e-mail instead of
137.7on paper or by ordinary mail.
137.8    (b) The commissioner of revenue shall prescribe the form of the notice.
137.9    (c) The notice must inform taxpayers that it contains the amount of property taxes each
137.10taxing authority proposes to collect for taxes payable the following year. In the case of a
137.11town, or in the case of the state general tax, the final tax amount will be its proposed tax.
137.12The notice must clearly state for each city that has a population over 500, county, school
137.13district, regional library authority established under section 134.201, and metropolitan taxing
137.14districts as defined in paragraph (i), and fire protection special taxing districts established
137.15under section 299O.01, the time and place of a meeting for each taxing authority in which
137.16the budget and levy will be discussed and public input allowed, prior to the final budget
137.17and levy determination. The taxing authorities must provide the county auditor with the
137.18information to be included in the notice on or before the time it certifies its proposed levy
137.19under subdivision 1. The public must be allowed to speak at that meeting, which must occur
137.20after November 24 and must not be held before 6:00 p.m. The notice must state for each
137.21city that has a population over 500, county, and school district, the time and place of the
137.22meeting to be held pursuant to subdivision 11. The taxing authorities must provide the
137.23county auditor with the information to be included in the notice on or before the time it
137.24certifies its proposed levy under subdivision 1. It must provide a telephone number for the
137.25taxing authority that taxpayers may call if they have questions related to the notice and an
137.26address where comments will be received by mail, except that no notice required under this
137.27section shall be interpreted as requiring the printing of a personal telephone number or
137.28address as the contact information for a taxing authority. If a taxing authority does not
137.29maintain public offices where telephone calls can be received by the authority, the authority
137.30may inform the county of the lack of a public telephone number and the county shall not
137.31list a telephone number for that taxing authority.
137.32    (d) The notice must state for each parcel:
137.33    (1) the market value of the property as determined under section 273.11, and used for
137.34computing property taxes payable in the following year and for taxes payable in the current
138.1year as each appears in the records of the county assessor on November 1 of the current
138.2year; and, in the case of residential property, whether the property is classified as homestead
138.3or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
138.4values apply and that the values are final values;
138.5    (2) the items listed below, shown separately by county, city or town, and state general
138.6tax, agricultural homestead credit under section 273.1384, school building bond agricultural
138.7credit under section 273.1387, voter approved school levy, other local school levy, and the
138.8sum of the special taxing districts, and as a total of all taxing authorities:
138.9    (i) the actual tax for taxes payable in the current year; and
138.10    (ii) the proposed tax amount.
138.11    If the county levy under clause (2) includes an amount for a lake improvement district
138.12as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
138.13must be separately stated from the remaining county levy amount.
138.14    In the case of a town or the state general tax, the final tax shall also be its proposed tax
138.15unless the town changes its levy at a special town meeting under section 365.52. If a school
138.16district has certified under section 126C.17, subdivision 9, that a referendum will be held
138.17in the school district at the November general election, the county auditor must note next
138.18to the school district's proposed amount that a referendum is pending and that, if approved
138.19by the voters, the tax amount may be higher than shown on the notice. In the case of the
138.20city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
138.21from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
138.22the St. Paul Library Agency must be listed separately from the remaining amount of the
138.23city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
138.24listed separately from the remaining amount of the county's levy. In the case of a parcel
138.25where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
138.26applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
138.27capacity subject to the areawide tax must each be stated separately and not included in the
138.28sum of the special taxing districts; and
138.29    (3) the increase or decrease between the total taxes payable in the current year and the
138.30total proposed taxes, expressed as a percentage.
138.31    For purposes of this section, the amount of the tax on homesteads qualifying under the
138.32senior citizens' property tax deferral program under chapter 290B is the total amount of
138.33property tax before subtraction of the deferred property tax amount.
139.1    (e) The notice must clearly state that the proposed or final taxes do not include the
139.2following:
139.3    (1) special assessments;
139.4    (2) levies approved by the voters after the date the proposed taxes are certified, including
139.5bond referenda and school district levy referenda;
139.6    (3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
139.7in November of the levy year as provided under section 275.73;
139.8    (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
139.9after the date the proposed taxes are certified;
139.10    (5) amounts necessary to pay tort judgments against the taxing authority that become
139.11final after the date the proposed taxes are certified; and
139.12    (6) the contamination tax imposed on properties which received market value reductions
139.13for contamination.
139.14    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
139.15county treasurer to deliver the notice as required in this section does not invalidate the
139.16proposed or final tax levy or the taxes payable pursuant to the tax levy.
139.17    (g) If the notice the taxpayer receives under this section lists the property as
139.18nonhomestead, and satisfactory documentation is provided to the county assessor by the
139.19applicable deadline, and the property qualifies for the homestead classification in that
139.20assessment year, the assessor shall reclassify the property to homestead for taxes payable
139.21in the following year.
139.22    (h) In the case of class 4 residential property used as a residence for lease or rental
139.23periods of 30 days or more, the taxpayer must either:
139.24    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
139.25or lessee; or
139.26    (2) post a copy of the notice in a conspicuous place on the premises of the property.
139.27    The notice must be mailed or posted by the taxpayer by November 27 or within three
139.28days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
139.29of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
139.30notice must be mailed in order to fulfill the requirements of this paragraph.
140.1    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
140.2districts" means the following taxing districts in the seven-county metropolitan area that
140.3levy a property tax for any of the specified purposes listed below:
140.4    (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
140.5473.521, 473.547, or 473.834;
140.6    (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
140.7    (3) Metropolitan Mosquito Control Commission under section 473.711.
140.8    For purposes of this section, any levies made by the regional rail authorities in the county
140.9of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
140.10shall be included with the appropriate county's levy.
140.11    (j) The governing body of a county, city, or school district may, with the consent of the
140.12county board, include supplemental information with the statement of proposed property
140.13taxes about the impact of state aid increases or decreases on property tax increases or
140.14decreases and on the level of services provided in the affected jurisdiction. This supplemental
140.15information may include information for the following year, the current year, and for as
140.16many consecutive preceding years as deemed appropriate by the governing body of the
140.17county, city, or school district. It may include only information regarding:
140.18    (1) the impact of inflation as measured by the implicit price deflator for state and local
140.19government purchases;
140.20    (2) population growth and decline;
140.21    (3) state or federal government action; and
140.22    (4) other financial factors that affect the level of property taxation and local services
140.23that the governing body of the county, city, or school district may deem appropriate to
140.24include.
140.25    The information may be presented using tables, written narrative, and graphic
140.26representations and may contain instruction toward further sources of information or
140.27opportunity for comment.
140.28EFFECTIVE DATE.This section is effective for property taxes payable in 2022 and
140.29thereafter.

141.1    Sec. 23. Minnesota Statutes 2020, section 275.065, is amended by adding a subdivision
141.2to read:
141.3    Subd. 3b. Notice of proposed property taxes required supplemental information. (a)
141.4The county auditor must prepare a separate statement to be delivered with the notice of
141.5proposed taxes described in subdivision 3. The statement must fit on one sheet of paper and
141.6contain for each parcel:
141.7(1) for the county, city or township, and school district in which the parcel lies, the
141.8certified levy for the current taxes payable year, the proposed levy for taxes payable in the
141.9following year, and the increase or decrease between these two amounts, expressed as a
141.10percentage;
141.11(2) summary budget information listed in paragraph (b); and
141.12(3) information on how to access each taxing authority's website where the taxpayer can
141.13find the proposed budget and information on how to participate in person and remotely in
141.14the Minnesota Property Taxpayer's Day meetings, held pursuant to subdivision 11.
141.15(b) Summary budget information must contain budget data from the county, city, and
141.16school district that proposes a property tax levy on the parcel for taxes payable the following
141.17year. For the school district, the summary budget data must include the information provided
141.18to the public under section 123B.10, subdivision 1, paragraph (b), for the current year and
141.19prior year. For the county and city, the reported summary budget data must contain the same
141.20information, in the same categories, and in the same format as provided to the Office of the
141.21State Auditor as required by section 6.745. The statement must provide the governmental
141.22revenues and current expenditures information in clauses (1) and (2) for the taxing authority's
141.23budget for taxes payable the following year and the taxing authority's budget from taxes
141.24payable in the current year, as well as the percent change between the two years. The city
141.25must provide the county auditor with the summary budget data at the same time as the
141.26information required under subdivision 3. Only cities with a population of at least 500 are
141.27required to report the data described in this paragraph. If a city with a population over 500
141.28fails to report the required information to the county auditor, the county auditor must list
141.29the city as "budget information not reported" on the portion of the statement dedicated to
141.30the city's budget information. The statement may take the same format as the annual summary
141.31budget report for cities and counties issued by the Office of the State Auditor. The summary
141.32budget data must include:
141.33(1) a governmental revenues category, including and separately stating:
142.1(i) "property taxes" defined as property taxes levied on an assessed valuation of real
142.2property and personal property, if applicable, by the city and county, including fiscal
142.3disparities;
142.4(ii) "special assessments" defined as levies made against certain properties to defray all
142.5or part of the costs of a specific improvement, such as new sewer and water mains, deemed
142.6to benefit primarily those properties;
142.7(iii) "state general purpose aid" defined as aid received from the state that has no
142.8restrictions on its use, including local government aid, county program aid, and market
142.9value credits; and
142.10(iv) "state categorical aid" defined as revenues received for a specific purpose, such as
142.11streets and highways, fire relief, and flood control, including but not limited to police and
142.12fire state aid and out-of-home placement aid; and
142.13(2) a current expenditures category, including and separately stating:
142.14(i) "general government" defined as administration costs of city or county governments,
142.15including salaries of officials and maintenance of buildings;
142.16(ii) "public safety" defined as costs related to the protection of persons and property,
142.17such as police, fire, ambulance services, building inspections, animal control, and flood
142.18control;
142.19(iii) "streets and highways" defined as costs associated with the maintenance and repair
142.20of local highways, streets, bridges, and street equipment, such as patching, seal coating,
142.21street lighting, street cleaning, and snow removal;
142.22(iv) "sanitation" defined as costs of refuse collection and disposal, recycling, and weed
142.23and pest control;
142.24(v) "human services" defined as activities designed to provide public assistance and
142.25institutional care for individuals economically unable to provide for themselves;
142.26(vi) "health" defined as costs of the maintenance of vital statistics, restaurant inspection,
142.27communicable disease control, and various health services and clinics;
142.28(vii) "culture and recreation" defined as costs of libraries, park maintenance, mowing,
142.29planting, removal of trees, festivals, bands, museums, community centers, cable television,
142.30baseball fields, and organized recreation activities;
143.1(viii) "conservation of natural resources" defined as the conservation and development
143.2of natural resources, including agricultural and forestry programs and services, weed
143.3inspection services, and soil and water conservation services;
143.4(ix) "economic development and housing" defined as costs for development and
143.5redevelopment activities in blighted or otherwise economically disadvantaged areas, including
143.6low-interest loans, cleanup of hazardous sites, rehabilitation of substandard housing and
143.7other physical facilities, and other assistance to those wanting to provide housing and
143.8economic opportunity within a disadvantaged area; and
143.9(x) "all other current expenditures" defined as costs not classified elsewhere, such as
143.10airport expenditures, cemeteries, unallocated insurance costs, unallocated pension costs,
143.11and public transportation costs.
143.12(c) If a taxing authority reporting this data does not have revenues or expenditures in a
143.13category listed in paragraph (b), then the taxing authority must designate the amount as "0"
143.14for that specific category.
143.15(d) The supplemental statement provided under this subdivision must be sent in electronic
143.16form or by e-mail if the taxpayer requests an electronic version the notice of proposed
143.17property taxes under subdivision 3, paragraph (a).
143.18EFFECTIVE DATE.This section is effective for property taxes payable in 2022 and
143.19thereafter.

143.20    Sec. 24. Minnesota Statutes 2020, section 275.065, is amended by adding a subdivision
143.21to read:
143.22    Subd. 11. Minnesota Property Taxpayer's Day. (a) Notwithstanding any other provision
143.23of law, on the first Wednesday following the first Monday in December, each county, city
143.24with a population of at least 500, and each school district must annually hold a meeting to
143.25discuss each taxing authority's budget and levy, prior to the final budget and levy
143.26determination. The meeting shall be known as "Minnesota Property Taxpayer's Day."
143.27(b) Counties must begin a meeting at 6:00 p.m. and discuss the county's budget and levy.
143.28The public must be allowed to speak no later than 20 minutes after the start of the meeting.
143.29Cities must begin a meeting to discuss their budget and levy at 7:00 p.m. and must allow
143.30the public to speak no later than 20 minutes after the start of the meeting. School districts
143.31must begin a meeting to discuss their budget and levy at 8:00 p.m. and must allow the public
143.32to speak no later than 20 minutes after the start of the meeting.
144.1(c) Each taxing jurisdiction must broadcast the meeting virtually and provide a method
144.2for the public to participate in person and remotely. Information about the meeting, including
144.3instructions on how to participate remotely, must be posted on the website of each taxing
144.4jurisdiction required to hold a meeting under this subdivision by November 10.
144.5EFFECTIVE DATE.This section is effective July 1, 2021.

144.6    Sec. 25. Minnesota Statutes 2020, section 275.066, is amended to read:
144.7275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
144.8    For the purposes of property taxation and property tax state aids, the term "special taxing
144.9districts" includes the following entities:
144.10    (1) watershed districts under chapter 103D;
144.11    (2) sanitary districts under sections 442A.01 to 442A.29;
144.12    (3) regional sanitary sewer districts under sections 115.61 to 115.67;
144.13    (4) regional public library districts under section 134.201;
144.14    (5) park districts under chapter 398;
144.15    (6) regional railroad authorities under chapter 398A;
144.16    (7) hospital districts under sections 447.31 to 447.38;
144.17    (8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
144.18    (9) Duluth Transit Authority under sections 458A.21 to 458A.37;
144.19    (10) regional development commissions under sections 462.381 to 462.398;
144.20    (11) housing and redevelopment authorities under sections 469.001 to 469.047;
144.21    (12) port authorities under sections 469.048 to 469.068;
144.22    (13) economic development authorities under sections 469.090 to 469.1081;
144.23    (14) Metropolitan Council under sections 473.123 to 473.549;
144.24    (15) Metropolitan Airports Commission under sections 473.601 to 473.679;
144.25    (16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
144.26    (17) Morrison County Rural Development Financing Authority under Laws 1982, chapter
144.27437, section 1;
144.28    (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
145.1    (19) East Lake County Medical Clinic District under Laws 1989, chapter 211, sections
145.21 to 6;
145.3    (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 5,
145.4section 39;
145.5    (21) Middle Mississippi River Watershed Management Organization under sections
145.6103B.211 and 103B.241;
145.7    (22) emergency medical services special taxing districts under section 144F.01;
145.8    (23) a county levying under the authority of section 103B.241, 103B.245, or 103B.251;
145.9    (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
145.10under Laws 2003, First Special Session chapter 21, article 4, section 12;
145.11    (25) an airport authority created under section 360.0426; and
145.12    (26) fire protection special taxing districts under section 299O.01; and
145.13    (27) any other political subdivision of the state of Minnesota, excluding counties, school
145.14districts, cities, and towns, that has the power to adopt and certify a property tax levy to the
145.15county auditor, as determined by the commissioner of revenue.
145.16EFFECTIVE DATE.This section is effective the day following final enactment.

145.17    Sec. 26. Minnesota Statutes 2020, section 290A.25, is amended to read:
145.18290A.25 VERIFICATION OF SOCIAL SECURITY NUMBERS.
145.19Annually, the commissioner of revenue shall furnish a list to the county assessor
145.20containing the names and, Social Security numbers, and individual tax identification numbers
145.21of persons who have applied for both homestead classification under section 273.13 and a
145.22property tax refund as a renter under this chapter.
145.23Within 90 days of the notification, the county assessor shall investigate to determine if
145.24the homestead classification was improperly claimed. If the property owner does not qualify,
145.25the county assessor shall notify the county auditor who will determine the amount of
145.26homestead benefits that has been improperly allowed. For the purpose of this section,
145.27"homestead benefits" has the meaning given in section 273.124, subdivision 13b. The county
145.28auditor shall send a notice to persons who owned the affected property at the time the
145.29homestead application related to the improper homestead was filed, demanding
145.30reimbursement of the homestead benefits plus a penalty equal to 100 percent of the homestead
145.31benefits. The person notified may appeal the county's determination with the Minnesota
146.1Tax Court within 60 days of the date of the notice from the county as provided in section
146.2273.124, subdivision 13b.
146.3If the amount of homestead benefits and penalty is not paid within 60 days, and if no
146.4appeal has been filed, the county auditor shall certify the amount of taxes and penalty to
146.5the county treasurer. The county treasurer will add interest to the unpaid homestead benefits
146.6and penalty amounts at the rate provided for delinquent personal property taxes for the
146.7period beginning 60 days after demand for payment was made until payment. If the person
146.8notified is the current owner of the property, the treasurer may add the total amount of
146.9benefits, penalty, interest, and costs to the real estate taxes otherwise payable on the property
146.10in the following year. If the person notified is not the current owner of the property, the
146.11treasurer may collect the amounts due under the Revenue Recapture Act in chapter 270A,
146.12or use any of the powers granted in sections 277.20 and 277.21 without exclusion, to enforce
146.13payment of the benefits, penalty, interest, and costs, as if those amounts were delinquent
146.14tax obligations of the person who owned the property at the time the application related to
146.15the improperly allowed homestead was filed. The treasurer may relieve a prior owner of
146.16personal liability for the benefits, penalty, interest, and costs, and instead extend those
146.17amounts on the tax lists against the property for taxes payable in the following year to the
146.18extent that the current owner agrees in writing.
146.19Any amount of homestead benefits recovered by the county from the property owner
146.20shall be distributed to the county, city or town, and school district where the property is
146.21located in the same proportion that each taxing district's levy was to the total of the three
146.22taxing districts' levy for the current year. Any amount recovered attributable to taconite
146.23homestead credit shall be transmitted to the St. Louis County auditor to be deposited in the
146.24taconite property tax relief account. Any amount recovered that is attributable to supplemental
146.25homestead credit is to be transmitted to the commissioner of revenue for deposit in the
146.26general fund of the state treasury. The total amount of penalty collected must be deposited
146.27in the county general fund.
146.28EFFECTIVE DATE.This section is effective for lists furnished by the commissioner
146.29of revenue to county assessors in 2021 and thereafter.

146.30    Sec. 27. [299O.01] FIRE PROTECTION SPECIAL TAXING DISTRICTS.
146.31    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
146.32the meanings given unless the context clearly indicates otherwise.
146.33(b) "City" means a statutory or home rule charter city.
147.1(c) "Governing body" means for a city, the city council; for a county, the county board;
147.2and for a town, the board of supervisors.
147.3(d) "Political subdivision" means a county, city, or township organized to provide town
147.4government.
147.5    Subd. 2. Authority to establish. (a) Two or more political subdivisions may establish,
147.6by resolution of their governing bodies, a special taxing district to provide fire protection
147.7or emergency medical services or both in the area of the district, comprising the jurisdiction
147.8of each of the political subdivisions forming the district. For a county that participates in
147.9establishing a district, the county's jurisdiction comprises the unorganized territory of the
147.10county that it designates in its resolution for inclusion in the district. The area of the special
147.11taxing district does not need to be contiguous or its boundaries continuous.
147.12(b) Before establishing a district under this section, the participating political subdivisions
147.13must enter an agreement that specifies how any liabilities, other than debt issued under
147.14subdivision 6, and assets of the district will be distributed if the district is dissolved. The
147.15agreement may also include other terms, including a method for apportioning the levy of
147.16the district among participating political subdivisions under subdivision 4, paragraph (b),
147.17as the political subdivisions determine appropriate. The agreement must be adopted no later
147.18than upon passage of the resolution establishing the district under paragraph (a), but may
147.19be later amended by agreement of each of the political subdivisions participating in the
147.20district.
147.21(c) If the special taxing district includes the operation of a fire department, the resolution
147.22under paragraph (a) or agreement under paragraph (b) must specify which, if any, volunteer
147.23firefighter pension plan is associated with the district. A special taxing district that operates
147.24a fire department under this section may be associated with only one volunteer firefighting
147.25relief association or one account in the voluntary statewide volunteer firefighting retirement
147.26plan at one time.
147.27(d) If the special taxing district includes the operation of a fire department, it must file
147.28its resolution establishing the fire protection special taxing district, and any agreements
147.29required for the establishment of the special taxing district, with the commissioner of revenue,
147.30including any amendments to those documents. If the resolution or agreement does not
147.31include sufficient information defining the fire department service area of the fire protection
147.32special taxing district, the secretary of the district board must file a written statement with
147.33the commissioner defining the fire department service area.
148.1    Subd. 3. Board. The special taxing district established under this section is governed
148.2by a board made up initially of representatives of each participating political subdivision
148.3in the proportions set out in the establishing resolution, subject to change as provided in the
148.4district's charter, if any, or in the district's bylaws. Each participating political subdivision's
148.5representative must be an elected member of the governing body of the political subdivision
148.6and serves at the pleasure of that participant's governing body.
148.7    Subd. 4. Property tax levy. (a) The board may levy a tax on the taxable real and personal
148.8property in the district. The proceeds of the levy must be used as provided in subdivision
148.95. The board shall certify the levy at the times provided under section 275.07. The board
148.10shall provide the county with whatever information is necessary to identify the property
148.11that is located within the district. If the boundaries include a part of a parcel, the entire parcel
148.12is included in the district. The county auditor must spread, collect, and distribute the proceeds
148.13of the tax at the same time and in the same manner as provided by law for all other property
148.14taxes.
148.15(b) As an alternative to paragraph (a), the board may apportion its levy among the political
148.16subdivisions that are members of the district under a formula or method, such as population,
148.17number of service calls, cost of providing service, the market value of improvements, or
148.18other measure or measures, that was approved by the governing body of each of the political
148.19subdivisions that is a member of the district. The amount of the levy allocated to each
148.20political subdivision must be added to that political subdivision's levy and spread at the
148.21same time and in the same manner as provided by law for other taxes. The proceeds of the
148.22levy must be collected and remitted to the district and used as provided in subdivision 5.
148.23    Subd. 5. Use of levy proceeds. The proceeds of property taxes levied under this section
148.24must be used to provide fire protection or emergency medical services to residents of the
148.25district and property located in the district, as well as to pay debt issued under subdivision
148.266. Services may be provided by employees of the district or by contracting for services
148.27provided by other governmental or private entities.
148.28    Subd. 6. Debt. (a) The district may incur debt under chapter 475 when the board
148.29determines doing so is necessary to accomplish its duties.
148.30(b) In addition, the board of the district may issue certificates of indebtedness or capital
148.31notes under section 412.301 to purchase capital equipment. In applying section 412.301,
148.32paragraph (e), to the district the following rules apply:
148.33(1) the taxable property of the entire district must be used to calculate the percent of
148.34estimated market value; and
149.1(2) "the number of voters at the last municipal election" means the sum of the number
149.2of voters at the last municipal election for each of the cities that is a member of the district
149.3plus the number of registered voters in each town that is a participating member of the
149.4district.
149.5    Subd. 7. Powers. (a) In addition to authority expressly granted in this section, a special
149.6taxing district may exercise any power that may be exercised by any of its participating
149.7political subdivisions and that is necessary or reasonable to support the services set out in
149.8subdivision 5. The district may only levy the taxes authorized in subdivision 4. These powers
149.9include, without limitation, the authority to participate in state programs and to enforce or
149.10carry out state laws related to fire protection or emergency medical services, including
149.11programs providing state aid, reimbursement or funding of employee benefits, authorizing
149.12local enforcement of state standards, and similar, to the extent the special taxing district
149.13meets the qualification criteria and requirements of a program. These include but are not
149.14limited to fire protection related programs and political subdivision powers or responsibilities
149.15under chapters 299A, 424A, and 477B; sections 6.495, 353.64, and 423A.022; and any
149.16administrative rules related to the fire code.
149.17(b) To the extent that the district's authority under this subdivision overlaps with or may
149.18conflict with the authority of the participating political subdivision, the agreement under
149.19subdivision 2, paragraph (b), must provide for allocation of those powers or responsibilities
149.20between the participating political subdivisions and the district and may provide for resolution
149.21of conflicts in the exercise of those powers.
149.22    Subd. 8. Additions and withdrawals. (a) The board of the district may add additional
149.23eligible political subdivisions to a special taxing district under this section. The governing
149.24body of the proposed eligible political subdivision must agree to the addition in a resolution
149.25of its governing body. No political subdivision may be added to the district if it would cause
149.26the district to be out of compliance with subdivision 2, paragraph (c).
149.27(b) A political subdivision may withdraw from a special taxing district under this section
149.28by resolution of its governing body. The political subdivision must notify the board of the
149.29special taxing district of the withdrawal by providing a copy of the resolution at least two
149.30years in advance of the proposed withdrawal. The taxable property of the withdrawing
149.31member is subject to the property tax levy under subdivision 4 for the two taxes payable
149.32years following the notice of the withdrawal, unless the board and the withdrawing member
149.33agree otherwise by a resolution adopted by each of their governing bodies. If a political
149.34subdivision withdraws from a district for which debt was issued under subdivision 6 when
149.35the political subdivision was a participating member of the district and which is outstanding
150.1when the political subdivision withdraws from the district, the taxable property of the
150.2withdrawing political subdivision remains subject to the special taxing district debt levy
150.3until that outstanding debt has been paid or defeased. If the district's property levy to repay
150.4the debt was apportioned among the political subdivisions under an alternative formula or
150.5method under subdivision 4, paragraph (b), the withdrawing political subdivision is subject
150.6to the same percentage of the debt levy as applied in the taxes payable year immediately
150.7before its withdrawal from the district.
150.8(c) Notwithstanding subdivision 2, a special taxing district comprised of two political
150.9subdivisions continues to exist even if one of the political subdivisions withdraws.
150.10    Subd. 9. Dissolution. The special taxing district may be dissolved by resolution approved
150.11by majority vote of the board. If the special taxing district is dissolved, the assets and
150.12liabilities may be assigned to a successor entity, if any, or otherwise disposed of for public
150.13purposes as provided in the agreement adopted under subdivision 2, paragraph (b), or
150.14otherwise agreed to by the participating political subdivisions. A district may not be dissolved
150.15until all debt issued under subdivision 6 has been paid or defeased.
150.16EFFECTIVE DATE.This section is effective the day following final enactment.

150.17    Sec. 28. Minnesota Statutes 2020, section 429.021, subdivision 1, is amended to read:
150.18    Subdivision 1. Improvements authorized. The council of a municipality shall have
150.19power to make the following improvements:
150.20(1) To acquire, open, and widen any street, and to improve the same by constructing,
150.21reconstructing, and maintaining sidewalks, pavement, gutters, curbs, and vehicle parking
150.22strips of any material, or by grading, graveling, oiling, or otherwise improving the same,
150.23including the beautification thereof and including storm sewers or other street drainage and
150.24connections from sewer, water, or similar mains to curb lines.
150.25(2) To acquire, develop, construct, reconstruct, extend, and maintain storm and sanitary
150.26sewers and systems, including outlets, holding areas and ponds, treatment plants, pumps,
150.27lift stations, service connections, and other appurtenances of a sewer system, within and
150.28without the corporate limits.
150.29(3) To construct, reconstruct, extend, and maintain steam heating mains.
150.30(4) To install, replace, extend, and maintain street lights and street lighting systems and
150.31special lighting systems.
151.1(5) To acquire, improve, construct, reconstruct, extend, and maintain water works systems,
151.2including mains, valves, hydrants, service connections, wells, pumps, reservoirs, tanks,
151.3treatment plants, and other appurtenances of a water works system, within and without the
151.4corporate limits.
151.5(6) To acquire, improve and equip parks, open space areas, playgrounds, and recreational
151.6facilities within or without the corporate limits.
151.7(7) To plant trees on streets and provide for their trimming, care, and removal.
151.8(8) To abate nuisances and to drain swamps, marshes, and ponds on public or private
151.9property and to fill the same.
151.10(9) To construct, reconstruct, extend, and maintain dikes and other flood control works.
151.11(10) To construct, reconstruct, extend, and maintain retaining walls and area walls.
151.12(11) To acquire, construct, reconstruct, improve, alter, extend, operate, maintain, and
151.13promote a pedestrian skyway system. Such improvement may be made upon a petition
151.14pursuant to section 429.031, subdivision 3.
151.15(12) To acquire, construct, reconstruct, extend, operate, maintain, and promote
151.16underground pedestrian concourses.
151.17(13) To acquire, construct, improve, alter, extend, operate, maintain, and promote public
151.18malls, plazas or courtyards.
151.19(14) To construct, reconstruct, extend, and maintain district heating systems.
151.20(15) To construct, reconstruct, alter, extend, operate, maintain, and promote fire protection
151.21systems in existing buildings, but only upon a petition pursuant to section 429.031,
151.22subdivision 3.
151.23(16) To acquire, construct, reconstruct, improve, alter, extend, and maintain highway
151.24sound barriers.
151.25(17) To improve, construct, reconstruct, extend, and maintain gas and electric distribution
151.26facilities owned by a municipal gas or electric utility.
151.27(18) To purchase, install, and maintain signs, posts, and other markers for addressing
151.28related to the operation of enhanced 911 telephone service.
151.29(19) To improve, construct, extend, and maintain facilities for Internet access and other
151.30communications purposes, if the council finds that:
152.1(i) the facilities are necessary to make available Internet access or other communications
152.2services that are not and will not be available through other providers or the private market
152.3in the reasonably foreseeable future; and
152.4(ii) the service to be provided by the facilities will not compete with service provided
152.5by private entities.
152.6(20) To assess affected property owners for all or a portion of the costs agreed to with
152.7an electric utility, telecommunications carrier, or cable system operator to bury or alter a
152.8new or existing distribution system within the public right-of-way that exceeds the utility's
152.9design and construction standards, or those set by law, tariff, or franchise, but only upon
152.10petition under section 429.031, subdivision 3.
152.11(21) To assess affected property owners for repayment of voluntary energy improvement
152.12financings under section 216C.436, subdivision 7, or 216C.437, subdivision 28.
152.13(22) To construct, reconstruct, alter, extend, operate, maintain, and promote energy
152.14improvement projects in existing buildings, provided that:
152.15(i) a petition for the improvement is made by a property owner under section 429.031,
152.16subdivision 3;
152.17(ii) the municipality funds and administers the energy improvement project;
152.18(iii) project funds are only used for the installation of improvements to heating,
152.19ventilation, and air conditioning equipment and building envelope and for the installation
152.20of renewable energy systems;
152.21(iv) each property owner petitioning for the improvement receives notice that free or
152.22low-cost energy improvements may be available under federal, state, or utility programs;
152.23(v) for energy improvement projects on residential property, only residential property
152.24with five or more units may obtain financing for projects under this clause; and
152.25(vi) prior to financing an energy improvement project or imposing an assessment for a
152.26project, written notice is provided to the mortgage lender of any mortgage encumbering or
152.27otherwise secured by the property proposed to be improved.
152.28EFFECTIVE DATE.This section is effective for special assessments payable in 2022
152.29and thereafter.

153.1    Sec. 29. Minnesota Statutes 2020, section 429.031, subdivision 3, is amended to read:
153.2    Subd. 3. Petition by all owners. Whenever all owners of real property abutting upon
153.3any street named as the location of any improvement shall petition the council to construct
153.4the improvement and to assess the entire cost against their property, the council may, without
153.5a public hearing, adopt a resolution determining such fact and ordering the improvement.
153.6The validity of the resolution shall not be questioned by any taxpayer or property owner or
153.7the municipality unless an action for that purpose is commenced within 30 days after adoption
153.8of the resolution as provided in section 429.036. Nothing herein prevents any property
153.9owner from questioning the amount or validity of the special assessment against the owner's
153.10property pursuant to section 429.081. In the case of a petition for the municipality to own
153.11and install a fire protection system, energy improvement projects, a pedestrian skyway
153.12system, or on-site water contaminant improvements, the petition must contain or be
153.13accompanied by an undertaking satisfactory to the city by the petitioner that the petitioner
153.14will grant the municipality the necessary property interest in the building to permit the city
153.15to enter upon the property and the building to construct, maintain, and operate the fire
153.16protection system, energy improvement projects, pedestrian skyway system, or on-site water
153.17contaminant improvements. In the case of a petition for the installation of a privately owned
153.18fire protection system, energy improvement projects, a privately owned pedestrian skyway
153.19system, or privately owned on-site water contaminant improvements, the petition shall
153.20contain the plans and specifications for the improvement, the estimated cost of the
153.21improvement and a statement indicating whether the city or the owner will contract for the
153.22construction of the improvement. If the owner is contracting for the construction of the
153.23improvement, the city shall not approve the petition until it has reviewed and approved the
153.24plans, specifications, and cost estimates contained in the petition. The construction cost
153.25financed under section 429.091 shall not exceed the amount of the cost estimate contained
153.26in the petition. In the case of a petition for the installation of a fire protection system, energy
153.27improvement projects, a pedestrian skyway system, or on-site water contaminant
153.28improvements, the petitioner may request abandonment of the improvement at any time
153.29after it has been ordered pursuant to subdivision 1 and before contracts have been awarded
153.30for the construction of the improvement under section 429.041, subdivision 2. If such a
153.31request is received, the city council shall abandon the proceedings but in such case the
153.32petitioner shall reimburse the city for any and all expenses incurred by the city in connection
153.33with the improvement.
153.34EFFECTIVE DATE.This section is effective for special assessments payable in 2022
153.35and thereafter.

154.1    Sec. 30. Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by Laws
154.22013, chapter 143, article 4, section 37, and Laws 2019, First Special Session chapter 6,
154.3article 4, section 34, is amended to read:
154.4    Subd. 3. Tax. The district board may impose a property tax on taxable property as
154.5provided in this subdivision to pay the costs of providing fire or ambulance services, or
154.6both, throughout the district. The board shall annually determine the total amount of the
154.7levy that is attributable to the cost of providing fire services and the cost of providing
154.8ambulance services within the primary service area. For those municipalities that only
154.9receive ambulance services, the costs for the provision of ambulance services shall be levied
154.10against taxable property within those municipalities at a rate necessary not to exceed 0.019
154.11percent of the estimated market value. For those municipalities that receive both fire and
154.12ambulance services, the tax shall be imposed at a rate that does not exceed 0.2835 percent
154.13of estimated market value.
154.14When a member municipality opts to receive fire service from the district or an additional
154.15municipality becomes a member of the district, the cost of providing fire services to that
154.16community shall be determined by the board and added to the maximum levy amount.
154.17Each county auditor of a county that contains a municipality subject to the tax under
154.18this section must collect the tax and pay it to the Fire and Ambulance Special Taxing District.
154.19The district may also impose other fees or charges as allowed by law for the provision of
154.20fire and ambulance services.
154.21EFFECTIVE DATE.This section is effective the day after the governing body of the
154.22Cloquet Area Fire and Ambulance Special Taxing District and its chief clerical officer
154.23comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

154.24    Sec. 31. SUSTAINABLE FOREST INCENTIVE ACT; VIOLATIONS.
154.25Land that was split-classified under Minnesota Statutes 2018, section 273.13, subdivision
154.2623, paragraph (c), while enrolled in the sustainable forest incentive act management program
154.27under Minnesota Statutes, chapter 290C, is not in violation of the conditions of enrollment
154.28under Minnesota Statutes, sections 290C.03 and 290C.11, if, at the time of enrollment, a
154.29structure that is not a minor, ancillary nonresidential structure, or an excluded area three
154.30acres or larger that now contains a structure that is not a minor, ancillary nonresidential
154.31structure, was identified on the covenant required under Minnesota Statutes, section 290C.04,
154.32and appropriate acreage was excluded in accordance with Minnesota Statutes, section
154.33290C.03.
155.1EFFECTIVE DATE.This section is effective for determinations of violations of the
155.2conditions of enrollment after June 30, 2021.

155.3    Sec. 32. REPEALER.
155.4Minnesota Statutes 2020, sections 327C.01, subdivision 13; and 327C.16, are repealed.
155.5EFFECTIVE DATE.This section is effective beginning with property taxes payable
155.6in 2023.


155.9    Section 1. Minnesota Statutes 2020, section 477A.013, subdivision 13, is amended to
155.10read:
155.11    Subd. 13. Certified aid adjustments. (a) A city that received an aid base increase under
155.12Minnesota Statutes 2012, section 477A.011, subdivision 36, paragraph (e), shall have its
155.13total aid under subdivision 9 increased by an amount equal to $150,000 for aids payable in
155.142014 through 2018.
155.15(b) (a) A city that received an aid base increase under Minnesota Statutes 2012, section
155.16477A.011, subdivision 36, paragraph (r), shall have its total aid under subdivision 9 increased
155.17by an amount equal to $160,000 for aids payable in 2014 and thereafter.
155.18(c) A city that received a temporary aid increase under Minnesota Statutes 2012, section
155.19477A.011, subdivision 36, paragraph (o), shall have its total aid under subdivision 9 increased
155.20by an amount equal to $1,000,000 for aids payable in 2014 only.
155.21(b) The city of Floodwood shall have its total aid under subdivision 9 increased by
155.22$250,000 for aids payable in 2022 through 2026.
155.23(c) The city of Staples shall have its total aid under subdivision 9 increased by $320,000
155.24for aids payable in 2022 through 2026.
155.25(d) The city of Warren shall have its total aid under subdivision 9 increased by $320,000
155.26for aids payable in 2022 through 2026.
155.27EFFECTIVE DATE.This section is effective for aids payable in calendar year 2022
155.28and thereafter.

156.1    Sec. 2. Minnesota Statutes 2020, section 477A.03, subdivision 2a, is amended to read:
156.2    Subd. 2a. Cities. For aids payable in 2016 and 2017, the total aid paid under section
156.3477A.013, subdivision 9, is $519,398,012. For aids payable in 2018 and 2019, the total aid
156.4paid under section 477A.013, subdivision 9, is $534,398,012. For aids payable in 2020, the
156.5total aid paid under section 477A.013, subdivision 9, is $560,398,012. For aids payable in
156.62021 and thereafter, the total aid payable under section 477A.013, subdivision 9, is
156.7$564,398,012. For aids payable in 2022 through 2026, the total aid payable under section
156.8477A.013, subdivision 9, is $565,288,012. For aids payable in 2027 and thereafter, the total
156.9aid payable under section 477A.013, subdivision 9, is $564,398,012.
156.10EFFECTIVE DATE.This section is effective for aids payable in calendar year 2022
156.11and thereafter.

156.12    Sec. 3. Minnesota Statutes 2020, section 477A.03, subdivision 2b, is amended to read:
156.13    Subd. 2b. Counties. (a) For aids payable in 2018 and 2019, the total aid payable under
156.14section 477A.0124, subdivision 3, is $103,795,000, of which $3,000,000 shall be allocated
156.15as required under Laws 2014, chapter 150, article 4, section 6. For aids payable in 2020,
156.16the total aid payable under section 477A.0124, subdivision 3, is $116,795,000, of which
156.17$3,000,000 shall be allocated as required under Laws 2014, chapter 150, article 4, section
156.186. For aids payable in 2021 through 2024, the total aid payable under section 477A.0124,
156.19subdivision 3, is $118,795,000, of which $3,000,000 shall be allocated as required under
156.20Laws 2014, chapter 150, article 4, section 6. For aids payable in 2025 and thereafter, the
156.21total aid payable under section 477A.0124, subdivision 3, is $115,795,000. Each calendar
156.22year On or before the first installment date provided in section 477A.015, paragraph (a),
156.23$500,000 of this appropriation shall be retained transferred each year by the commissioner
156.24of revenue to make reimbursements to the commissioner of management and budget the
156.25Board of Public Defense for payments made the payment of services under section 611.27.
156.26The reimbursements shall be to defray the additional costs associated with court-ordered
156.27counsel under section 611.27. Any retained transferred amounts not used for reimbursement
156.28in a year expended or encumbered in a fiscal year shall be certified by the board of public
156.29defense to the commissioner of revenue on or before October 1 and shall be included in the
156.30next distribution certification of county need aid that is certified to the county auditors for
156.31the purpose of property tax reduction for the next taxes payable year.
156.32    (b) For aids payable in 2018 and 2019, the total aid under section 477A.0124, subdivision
156.334, is $130,873,444. For aids payable in 2020, the total aid under section 477A.0124,
156.34subdivision 4, is $143,873,444. For aids payable in 2021 and thereafter, the total aid under
157.1section 477A.0124, subdivision 4, is $145,873,444. The commissioner of revenue shall
157.2transfer to the commissioner of management and budget $207,000 annually for the cost of
157.3preparation of local impact notes as required by section 3.987, and other local government
157.4activities. The commissioner of revenue shall transfer to the commissioner of education
157.5$7,000 annually for the cost of preparation of local impact notes for school districts as
157.6required by section 3.987. The commissioner of revenue shall deduct the amounts transferred
157.7under this paragraph from the appropriation under this paragraph. The amounts transferred
157.8are appropriated to the commissioner of management and budget and the commissioner of
157.9education respectively.

157.10    Sec. 4. [477A.30] LOCAL HOMELESS PREVENTION AID.
157.11    Subdivision 1. Definitions. For purposes of this section, the following terms have the
157.12meanings given:
157.13(1) "city" means a statutory or home rule charter city;
157.14(2) "distribution factor" means the total number of students experiencing homelessness
157.15in a county in the current school year and the previous two school years divided by the total
157.16number of students experiencing homelessness in all counties in the current school year and
157.17the previous two school years; and
157.18(3) "families" means families and persons 24 years of age or younger.
157.19    Subd. 2. Purpose. The purpose of this section is to help local governments ensure no
157.20child is homeless within a local jurisdiction by keeping families from losing housing and
157.21helping those experiencing homelessness find housing.
157.22    Subd. 3. Distribution. The money appropriated to local homeless prevention aid under
157.23this section must be allocated to counties by multiplying each county's distribution factor
157.24by the total distribution available under this section. Distribution factors must be based on
157.25the most recent counts of students experiencing homelessness in each county, as certified
157.26by the commissioner of education to the commissioner of revenue by July 1 of the year the
157.27aid is certified to the counties under subdivision 5.
157.28    Subd. 4. Use of proceeds. (a) Counties that receive a distribution under this section must
157.29use the proceeds to fund new or existing family homeless prevention and assistance projects
157.30or programs. These projects or programs may be administered by a county, a group of
157.31contiguous counties jointly acting together, a city, a group of contiguous cities jointly acting
157.32together, a Tribe, a group of Tribes, or a community-based nonprofit organization. Each
157.33project or program must include plans for:
158.1(1) targeting families with children who are eligible for a prekindergarten through grade
158.212 academic program and are:
158.3(i) living in overcrowded conditions in their current housing;
158.4(ii) paying more than 50 percent of their income for rent; or
158.5(iii) lacking a fixed, regular, and adequate nighttime residence;
158.6(2) targeting unaccompanied youth in need of an alternative residential setting;
158.7(3) connecting families with the social services necessary to maintain the families'
158.8stability in their homes, including but not limited to housing navigation, legal representation,
158.9and family outreach; and
158.10(4) one or more of the following:
158.11(i) providing rental assistance for a specified period of time which may exceed 24 months;
158.12or
158.13(ii) providing support and case management services to improve housing stability,
158.14including but not limited to housing navigation and family outreach.
158.15(b) Counties may choose not to spend all or a portion of the distribution under this
158.16section. Any unspent funds must be returned to the commissioner of revenue by December
158.1731 of the year following the year that the aid was received. Any funds returned to the
158.18commissioner under this paragraph must be added to the overall distribution of aids certified
158.19under this section in the following year. Any unspent funds returned to the commissioner
158.20after the expiration under subdivision 8 are canceled to the general fund.
158.21    Subd. 5. Payments. The commissioner of revenue must compute the amount of local
158.22homeless prevention aid payable to each county under this section. On or before August 1
158.23of each year, the commissioner shall certify the amount to be paid to each county in the
158.24following year. The commissioner shall pay local homeless prevention aid annually at the
158.25times provided in section 477A.015.
158.26    Subd. 6. Appropriation. $25,000,000 is annually appropriated from the general fund
158.27to the commissioner of revenue to make payments required under this section.
158.28    Subd. 7. Report. (a) No later than January 15, 2024, the commissioner of revenue must
158.29produce a report on projects and programs funded by counties under this section. The report
158.30must include a list of the projects and programs, the number of people served by each, and
158.31an assessment of how each project and program impacts people who are currently
158.32experiencing homelessness or who are at risk of experiencing homelessness, as reported by
159.1the counties to the commissioner by December 31 each year on a form prescribed by the
159.2commissioner. The commissioner must provide a copy of the report to the chairs and ranking
159.3minority members of the legislative committees with jurisdiction over property taxes and
159.4services for persons experiencing homelessness.
159.5(b) The report in paragraph (a) must be updated every two years and the commissioner
159.6of revenue must provide copies of the updated reports to the chairs and ranking minority
159.7members of the legislative committees with jurisdiction over property taxes and services
159.8for persons experiencing homelessness by January 15 of the year the report is due. Report
159.9requirements under this subdivision expire following the report which includes the final
159.10distribution preceding the expiration in subdivision 8.
159.11    Subd. 8. Expiration. Distributions under this section expire after aids payable in 2029
159.12have been distributed.
159.13EFFECTIVE DATE.This section is effective beginning with aids payable in 2022 and
159.14thereafter.

159.15    Sec. 5. COUNTY RELIEF GRANTS TO LOCAL BUSINESSES; APPROPRIATION.
159.16    Subdivision 1. Appropriation. (a) $94,650,000 in fiscal year 2022 is appropriated from
159.17the general fund to the commissioner of revenue for payments to counties for relief grants
159.18under this section. This is a onetime appropriation. The appropriation under this section
159.19must be used for the following purposes:
159.20(1) $87,900,000 must be used for grants under subdivision 2;
159.21(2) $2,000,000 must be used for grants under subdivision 3; and
159.22(3) $4,750,000 must be used for grants under subdivision 4.
159.23(b) Each county may use the greater of $6,250 or 2.5 percent of the total amount received
159.24under subdivisions 1 and 2 for administrative costs incurred from making grants under this
159.25section. A county may contract with a third party to administer the grant program on behalf
159.26of the county.
159.27    Subd. 2. Business relief grants. (a) From the amount appropriated under subdivision
159.281, paragraph (a), clause (1), each county shall be issued a payment in the amount of $150,000
159.29or a per capita amount determined by reference to the population of each county according
159.30to the most recently available 2019 population estimate from the state demographer as of
159.31December 1, 2020, whichever is greater.
160.1(b) Counties shall use the funds under this subdivision to make grants to individual
160.2businesses, nonprofits, and establishments operated by congressionally chartered veterans'
160.3organizations that, to the extent it is feasible for the county to determine:
160.4(1) are located in the applicable county in the state, in a county with which there is a
160.5collaborative agreement under paragraph (g), or on adjacent Tribal land;
160.6(2) have no current tax liens on record with the secretary of state as of the time of
160.7application for a grant under this section; and
160.8(3) were impacted by an executive order related to the COVID-19 pandemic.
160.9(c) A county shall determine grant recipients and the grant amount awarded per grant.
160.10A county may award a grant to a business that is owned by a Tribal government and located
160.11on Tribal land if the business has voluntarily complied with Executive Order No. 20-99.
160.12Nonprofits, including nonprofit arts organizations, museums, and fitness centers, that earn
160.13revenue similar to businesses, including but not limited to ticket sales and membership fees,
160.14are eligible for grants under this section.
160.15(d) Grant funds must be used by an eligible business or nonprofit for operating expenses
160.16incurred during the COVID-19 pandemic.
160.17(e) Grants under this subdivision must be awarded by July 31, 2021.
160.18(f) Grants and the process of making grants under this subdivision are exempt from the
160.19following statutes and related policies: Minnesota Statutes, sections 16A.15, subdivision 3;
160.2016B.97; and 16B.98, subdivisions 5, 7, and 8. A county opting to use a third party to
160.21administer grants is exempt from Minnesota Statutes, section 471.345, in the selection of
160.22the third-party administrator. The exemptions under this paragraph expire July 31, 2021.
160.23(g) Two or more counties may enter into a collaborative agreement and combine payments
160.24received under paragraph (a). These combined funds must be used to make grants as allowed
160.25by this subdivision.
160.26(h) By January 31, 2022, the commissioner of employment and economic development
160.27shall report to the legislative committees with jurisdiction over economic development
160.28policy and finance on the grants provided under this subdivision.
160.29(i) Any amount from the appropriation in subdivision 1, paragraph (a), clause (1),
160.30unexpended after August 15, 2021, is canceled.
160.31    Subd. 3. Northwest Angle grants. (a) Lake of the Woods County shall be issued a
160.32payment equal to the amount appropriated under subdivision 1, paragraph (a), clause (2),
161.1to make grants to individual businesses, nonprofits, and establishments operated by
161.2congressionally chartered veterans' organizations that, to the extent it is feasible for the
161.3county to determine:
161.4(1) are located in Angle Township; and
161.5(2) have no current tax liens on record with the secretary of state as of the time of
161.6application for a grant under this section.
161.7(b) The county shall determine grant recipients and the grant amount awarded per grant.
161.8(c) Grants under this subdivision must be awarded by July 31, 2021.
161.9(d) Grants and the process of making grants under this subdivision are exempt from the
161.10following statutes and related policies: Minnesota Statutes, sections 16A.15, subdivision 3;
161.1116B.97; and 16B.98, subdivisions 5, 7, and 8. A county opting to use a third party to
161.12administer grants is exempt from Minnesota Statutes, section 471.345, in the selection of
161.13the third-party administrator. The exemptions under this paragraph expire July 31, 2021.
161.14(e) By January 31, 2022, the commissioner of employment and economic development
161.15shall report to the legislative committees with jurisdiction over economic development
161.16policy and finance on the grants provided under this subdivision.
161.17(f) Any amount from the appropriation in subdivision 1, paragraph (a), clause (2),
161.18unexpended after August 15, 2021, is canceled.
161.19    Subd. 4. Damage remediation grants. (a) Hennepin County shall be issued a payment
161.20equal to the amount appropriated under subdivision 1, paragraph (a), clause (3), for grants
161.21to remediate the effects of fires and vandalism that occurred due to the unrest in the city of
161.22Minneapolis and surrounding communities after May 24, 2020, and before June 16, 2020.
161.23(b) A grant recipient must use the money issued under this subdivision for remediation
161.24costs, including disaster recovery, infrastructure, reimbursement for emergency personnel
161.25costs, reimbursement for equipment costs, and reimbursement for property tax abatements,
161.26incurred by public or private entities as a result of the fires and vandalism. This appropriation
161.27under subdivision 1, paragraph (a), clause (3), is available until June 30, 2023.
161.28EFFECTIVE DATE.This section is effective the day following final enactment.


162.3    Section 1. Laws 2019, First Special Session chapter 6, article 6, section 25, is amended
162.4to read:
162.5    Sec. 25. CITY OF PLYMOUTH; LOCAL LODGING TAX AUTHORIZED.
162.6(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of
162.7law, ordinance, or city charter, the city council for the city of Plymouth may impose by
162.8ordinance a tax of up to three percent on the gross receipts subject to the lodging tax under
162.9Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under
162.10Minnesota Statutes, section 469.190, and the total tax imposed under that section and this
162.11provision must not exceed six percent.
162.12(b) Two-thirds of the revenue from the tax imposed under this section must be dedicated
162.13and used for capital improvements to public recreational facilities and marketing and
162.14promotion of the community, and the remaining one-third of the revenue must be used for
162.15the same purposes as a tax imposed under Minnesota Statutes, section 469.190.
162.16(c) The tax imposed under this authority terminates at the earlier of: (1) ten years after
162.17the tax is first imposed; or (2) December 31, 2030 when the city council determines that
162.18the amount received from the tax is sufficient to retire bonds issued before January 1, 2022,
162.19for capital improvements under paragraph (b), plus an amount sufficient to pay costs,
162.20including interest costs, related to the issuance of the bonds.
162.21EFFECTIVE DATE.This section is effective the day following final enactment.

162.22    Sec. 2. Laws 2019, First Special Session chapter 6, article 6, section 27, is amended to
162.23read:
162.24    Sec. 27. CITY OF SARTELL; LOCAL TAXES AUTHORIZED.
162.25    Subdivision 1. Food and beverage tax authorized. Notwithstanding Minnesota Statutes,
162.26section 297A.99 or 477A.016, or any ordinance or other provision of law, and if approved
162.27by voters at the November 3, 2020, a general election, or at a special election held before
162.28November 3, 2020 pursuant to a resolution adopted by its governing body, the city of Sartell
162.29may, by ordinance, impose a sales tax of up to 1-1/2 percent on the gross receipts of all food
162.30and beverages sold by a restaurant or place of refreshment, as defined by ordinance of the
163.1city, that is located within the city. For purposes of this section, "food and beverages" include
163.2retail on-sale of intoxicating liquor and fermented malt beverages.
163.3    Subd. 2. Use of proceeds from authorized taxes. The proceeds of the taxes imposed
163.4under subdivision 1 must be used by the city to fund capital or operational costs for new
163.5and existing recreational facilities and related amenities within the city. Authorized expenses
163.6include securing or paying debt service on bonds or other obligations issued to finance
163.7construction and improvement projects.
163.8    Subd. 3. Termination of taxes. The tax imposed under subdivision 1 expires five years
163.9after the tax is first imposed.
163.10    Subd. 4. Collection, administration, and enforcement. The city may enter into an
163.11agreement with the commissioner of revenue to administer, collect, and enforce the taxes
163.12under subdivision 1. If the commissioner agrees to collect the tax, the provisions of Minnesota
163.13Statutes, sections 270C.171 and 297A.99, related to collection, administration, and
163.14enforcement apply.
163.15EFFECTIVE DATE.This section is effective the day after the governing body of the
163.16city of Sartell and its chief clerical officer comply with Minnesota Statutes, section 645.021,
163.17subdivisions 2 and 3.

163.18    Sec. 3. CARLTON COUNTY; LOCAL SALES AND USE TAX AUTHORIZED.
163.19    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
163.20sections 297A.99, subdivision 2, paragraph (b), and 477A.016, or any other law or ordinance,
163.21and if approved by the voters at a general election as required under Minnesota Statutes,
163.22section 297A.99, subdivision 3, Carlton County may impose, by ordinance, a sales and use
163.23tax of one-half of one percent for the purposes specified in subdivision 2. Except as otherwise
163.24provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the
163.25imposition, administration, collection, and enforcement of the tax authorized under this
163.26subdivision.
163.27    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
163.28under subdivision 1 must be used by Carlton County to pay the costs of collecting and
163.29administering the tax, and to finance up to $60,000,000 for the construction of a new law
163.30enforcement center and jail serving a regional female offender program. Authorized costs
163.31include related parking, design, construction, reconstruction, mechanical upgrades, and
163.32engineering costs, as well as the associated bond costs for any bonds issued under subdivision
163.333.
164.1    Subd. 3. Bonding authority. (a) Carlton County may issue bonds under Minnesota
164.2Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
164.3subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
164.4not exceed $60,000,000, plus an amount applied to the payment of costs of issuing the
164.5bonds. The bonds may be paid from or secured by any funds available to the county,
164.6including the tax authorized under subdivision 1. The issuance of bonds under this
164.7subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
164.8(b) The bonds are not included in computing any debt limitation applicable to the county.
164.9Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
164.10on the bonds is not subject to any levy limitation. A separate election to approve the bonds
164.11under Minnesota Statutes, section 475.58, is not required.
164.12    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
164.13earlier of: (1) 30 years after the tax is first imposed; or (2) when the county determines that
164.14it has received from this tax $60,000,000 to fund the project listed in subdivision 2, plus an
164.15amount sufficient to pay costs, including interest costs, related to the issuance of the bonds
164.16authorized in subdivision 3. Except as otherwise provided in Minnesota Statutes, section
164.17297A.99, subdivision 3, paragraph (f), any funds remaining after payment of the allowed
164.18costs due to timing of the termination of the tax under Minnesota Statutes, section 297A.99,
164.19subdivision 12, shall be placed in the county's general fund. The tax imposed under
164.20subdivision 1 may expire at an earlier time if the county determines by ordinance.
164.21EFFECTIVE DATE.This section is effective the day after the governing body of
164.22Carlton County and its chief clerical officer comply with Minnesota Statutes, section 645.021,
164.23subdivisions 2 and 3.

164.24    Sec. 4. CITY OF CLOQUET; TAXES AUTHORIZED.
164.25    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
164.26section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
164.27and if approved by the voters at a general election as required under Minnesota Statutes,
164.28section 297A.99, subdivision 3, the city of Cloquet may impose by ordinance a sales and
164.29use tax of one-half of one percent for the purposes specified in subdivision 2. Except as
164.30otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99,
164.31govern the imposition, administration, collection, and enforcement of the tax authorized
164.32under this subdivision. The tax imposed under this subdivision is in addition to any local
164.33sales and use tax imposed under any other special law.
165.1    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
165.2under subdivision 1 must be used by the city of Cloquet to pay the costs of collecting and
165.3administering the tax and the capital and administrative costs of any or all of the projects
165.4listed in this subdivision. The amount spent on each project is limited to the amount set
165.5forth below plus an amount equal to interest on and the costs of issuing any bonds:
165.6(1) construction, reconstruction, expansion, or improvement related to the Pine Valley
165.7Regional Park Project, including ski jump repairs, chalet replacement, and parking and
165.8lighting improvements, in an amount not to exceed $2,124,700; and
165.9(2) restoration, repair, and upgrading of the Cloquet Ice Arena in an amount not to exceed
165.10$6,025,500.
165.11    Subd. 3. Bonding authority. (a) The city of Cloquet may issue bonds under Minnesota
165.12Statutes, chapter 475, to finance up to $8,150,200 of the portion of the costs of the facilities
165.13authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes,
165.14section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
165.15issued under this subdivision may not exceed $8,150,200 plus an amount to be applied to
165.16the payment of the costs of issuing the bonds. The bonds may be paid from or secured by
165.17any funds available to the city of Cloquet, including the tax authorized under subdivision
165.181. The issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections
165.19275.60 and 275.61.
165.20    (b) The bonds are not included in computing any debt limitation applicable to the city
165.21of Cloquet, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
165.22and interest on the bonds is not subject to any levy limitation. A separate election to approve
165.23the bonds under Minnesota Statutes, section 475.58, is not required.
165.24    Subd. 4. Termination of taxes. Subject to Minnesota Statutes, section 297A.99,
165.25subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 10 years
165.26after the tax is first imposed, or (2) when the city council determines that the amount received
165.27from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
165.28projects approved by voters as required under Minnesota Statutes, section 297A.99,
165.29subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
165.30of any bonds authorized under subdivision 3, including interest on the bonds. Except as
165.31otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
165.32any funds remaining after payment of the allowed costs due to the timing of the termination
165.33of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
166.1general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
166.2if the city so determines by ordinance.
166.3EFFECTIVE DATE.This section is effective the day after the governing body of the
166.4city of Cloquet and its chief clerical officer comply with Minnesota Statutes, section 645.021,
166.5subdivisions 2 and 3.

166.6    Sec. 5. CITY OF EDINA; TAXES AUTHORIZED.
166.7    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
166.8section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
166.9and if approved by the voters at a general election as required under Minnesota Statutes,
166.10section 297A.99, subdivision 3, the city of Edina may impose by ordinance a sales and use
166.11tax of one-half of one percent for the purposes specified in subdivision 2. Except as otherwise
166.12provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the
166.13imposition, administration, collection, and enforcement of the tax authorized under this
166.14subdivision. The tax imposed under this subdivision is in addition to any local sales and
166.15use tax imposed under any other special law.
166.16    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
166.17under subdivision 1 must be used by the city of Edina to pay the costs of collecting and
166.18administering the tax and paying for the following projects in the city, including securing
166.19and paying debt service on bonds issued to finance all or part of the following projects:
166.20(1) $17,700,000 plus associated bonding costs for development of Fred Richards Park
166.21as identified in the Fred Richards Park Master Plan; and
166.22(2) $21,600,000 plus associated bonding costs for improvements to Braemar Park as
166.23identified in the Braemar Park Master Plan.
166.24    Subd. 3. Bonding authority. (a) The city of Edina may issue bonds under Minnesota
166.25Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
166.26subdivision 2 and approved by the voters as required under Minnesota Statutes, section
166.27297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
166.28under this subdivision may not exceed: (1) $17,700,000 for the project listed in subdivision
166.292, clause (1), plus an amount to be applied to the payment of the costs of issuing the bonds;
166.30and (2) $21,600,000 for the project listed in subdivision 2, clause (2), plus an amount to be
166.31applied to the payment of the costs of issuing the bonds. The bonds may be paid from or
166.32secured by any funds available to the city of Edina, including the tax authorized under
167.1subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota
167.2Statutes, sections 275.60 and 275.61.
167.3    (b) The bonds are not included in computing any debt limitation applicable to the city
167.4of Edina, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
167.5and interest on the bonds is not subject to any levy limitation. A separate election to approve
167.6the bonds under Minnesota Statutes, section 475.58, is not required.
167.7    Subd. 4. Termination of taxes. Subject to Minnesota Statutes, section 297A.99,
167.8subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 19 years
167.9after the tax is first imposed, or (2) when the city council determines that the amount received
167.10from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
167.11projects approved by voters as required under Minnesota Statutes, section 297A.99,
167.12subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
167.13of any bonds authorized under subdivision 3, including interest on the bonds. Except as
167.14otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
167.15any funds remaining after payment of the allowed costs due to the timing of the termination
167.16of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
167.17general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
167.18if the city so determines by ordinance.
167.19EFFECTIVE DATE.This section is effective the day after the governing body of the
167.20city of Edina and its chief clerical officer comply with Minnesota Statutes, section 645.021,
167.21subdivisions 2 and 3.

167.22    Sec. 6. CITY OF FERGUS FALLS; TAXES AUTHORIZED.
167.23    Subdivision 1. Sales and use tax; authorization. Notwithstanding Minnesota Statutes,
167.24section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
167.25the city of Fergus Falls may, if approved by the voters at a general election as required under
167.26Minnesota Statutes, section 297A.99, subdivision 3, impose, by ordinance, a sales and use
167.27tax of one-half of one percent for the purposes specified in subdivision 2. Except as otherwise
167.28provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the
167.29imposition, administration, collection, and enforcement of the tax authorized under this
167.30subdivision. The tax imposed under this subdivision is in addition to any local sales and
167.31use tax imposed under any other special law.
167.32    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
167.33under subdivision 1 must be used by the city of Fergus Falls to pay the costs of collecting
168.1and administering the tax and for the following projects in the city, including securing and
168.2paying debt service, on bonds issued to finance all or part of the following projects:
168.3(1) $7,800,000 for an aquatics center; and
168.4(2) $5,200,000 for the DeLagoon Improvement Project.
168.5    Subd. 3. Bonding authority. (a) The city of Fergus Falls may issue bonds under
168.6Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
168.7authorized in subdivision 2, and approved by the voters as required under Minnesota Statutes,
168.8section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
168.9issued under this subdivision may not exceed:
168.10(1) $7,800,000 for the project listed in subdivision 2, clause (1), plus an amount needed
168.11to pay capitalized interest and an amount to be applied to the payment of the costs of issuing
168.12the bonds; and
168.13(2) $5,200,000 for the project listed in subdivision 2, clause (2), plus an amount needed
168.14to pay capitalized interest and an amount to be applied to the payment of the costs of issuing
168.15the bonds.
168.16    (b) The bonds may be paid from or secured by any funds available to the city of Fergus
168.17Falls, including the tax authorized under subdivision 1. The issuance of bonds under this
168.18subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
168.19    (c) The bonds are not included in computing any debt limitation applicable to the city
168.20of Fergus Falls, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
168.21principal and interest on the bonds is not subject to any levy limitation. A separate election
168.22to approve the bonds under Minnesota Statutes, section 475.58, is not required.
168.23    Subd. 4. Termination of taxes. Subject to Minnesota Statutes, section 297A.99,
168.24subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) December
168.2531, 2037, or (2) when the city council determines that the amount received from the tax is
168.26sufficient to pay for the project costs authorized under subdivision 2 for projects approved
168.27by voters as required under Minnesota Statutes, section 297A.99, subdivision 3, paragraph
168.28(a), plus an amount sufficient to pay the costs related to issuance of any bonds authorized
168.29under subdivision 3, including interest on the bonds. Except as otherwise provided in
168.30Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining
168.31after payment of the allowed costs due to the timing of the termination of the tax under
168.32Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of
169.1the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so
169.2determines by ordinance.
169.3EFFECTIVE DATE.This section is effective the day after the governing body of the
169.4city of Fergus Falls and its chief clerical officer comply with Minnesota Statutes, section
169.5645.021, subdivisions 2 and 3.

169.6    Sec. 7. CITY OF GRAND RAPIDS; TAXES AUTHORIZED.
169.7    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
169.8section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
169.9and if approved by the voters at a general election as required under Minnesota Statutes,
169.10section 297A.99, subdivision 3, the city of Grand Rapids may impose by ordinance a sales
169.11and use tax of one-half of one percent for the purposes specified in subdivision 2. Except
169.12as otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99,
169.13govern the imposition, administration, collection, and enforcement of the tax authorized
169.14under this subdivision.
169.15    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
169.16under subdivision 1 must be used by the city of Grand Rapids to pay the costs of collecting
169.17and administering the tax including securing and paying debt service on bonds issued and
169.18to finance up to $5,980,000 for reconstruction, remodeling, and upgrades to the Grand
169.19Rapids IRA Civic Center. Authorized costs include design, construction, reconstruction,
169.20mechanical upgrades, and engineering costs, as well as the associated bond costs for any
169.21bonds issued under subdivision 3.
169.22    Subd. 3. Bonding authority. (a) The city of Grand Rapids may issue bonds under
169.23Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
169.24authorized in subdivision 2. The aggregate principal amount of bonds issued under this
169.25subdivision may not exceed $5,980,000, plus an amount to be applied to the payment of
169.26the costs of issuing the bonds. The bonds may be paid from or secured by any funds available
169.27to the city of Grand Rapids, including the tax authorized under subdivision 1. The issuance
169.28of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and
169.29275.61.
169.30    (b) The bonds are not included in computing any debt limitation applicable to the city
169.31of Grand Rapids, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
169.32principal and interest on the bonds is not subject to any levy limitation. A separate election
169.33to approve the bonds under Minnesota Statutes, section 475.58, is not required.
170.1    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
170.2earlier of: (1) seven years after the tax is first imposed; or (2) when the city council
170.3determines that $5,980,000, plus an amount sufficient to pay the costs related to issuance
170.4of any bonds authorized under subdivision 3, including interest on the bonds, has been
170.5received from the tax to pay the costs of the project authorized under subdivision 2, and
170.6approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision
170.73. Any funds remaining after payment of all such costs and retirement or redemption of the
170.8bonds shall be placed in the general fund of the city, except for funds required to be retained
170.9in the state general fund under Minnesota Statutes, section 297A.99, subdivision 3. The tax
170.10imposed under subdivision 1 may expire at an earlier time if the city so determines by
170.11ordinance.
170.12EFFECTIVE DATE.This section is effective the day after the governing body of the
170.13city of Grand Rapids and its chief clerical officer comply with Minnesota Statutes, section
170.14645.021, subdivisions 2 and 3.

170.15    Sec. 8. CITY OF HERMANTOWN; TAXES AUTHORIZED.
170.16    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
170.17section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
170.18and if approved by the voters at a general election as required under Minnesota Statutes,
170.19section 297A.99, subdivision 3, the city of Hermantown may impose by ordinance a sales
170.20and use tax of one-half of one percent for the purposes specified in subdivision 2. Except
170.21as otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99,
170.22govern the imposition, administration, collection, and enforcement of the tax authorized
170.23under this subdivision. The tax imposed under this subdivision is in addition to any local
170.24sales and use tax imposed under any other special law.
170.25    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
170.26under subdivision 1 must be used by the city of Hermantown to pay the costs of collecting
170.27and administering the tax and paying for the following projects in the city related to a
170.28Community Recreational Initiative, including securing and paying debt service on bonds
170.29issued to finance all or part of the following projects:
170.30(1) $10,840,000 for an addition of a second ice sheet with locker rooms and other facilities
170.31and upgrades to the Hermantown Hockey Arena; and
170.32(2) $4,570,000 for construction of the Hermantown-Proctor trail running from the Essentia
170.33Wellness Center to the border with Proctor and eventually connecting to the Munger Trail.
171.1    Subd. 3. Bonding authority. (a) The city of Hermantown may issue bonds under
171.2Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
171.3authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes,
171.4section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
171.5issued under this subdivision may not exceed: (1) $10,840,000 for the project listed in
171.6subdivision 2, clause (1), plus an amount to be applied to the payment of the costs of issuing
171.7the bonds; and (2) $4,570,000 for the project listed in subdivision 2, clause (2), plus an
171.8amount to be applied to the payment of the costs of issuing the bonds. The bonds may be
171.9paid from or secured by any funds available to the city of Hermantown, including the tax
171.10authorized under subdivision 1. The issuance of bonds under this subdivision is not subject
171.11to Minnesota Statutes, sections 275.60 and 275.61.
171.12    (b) The bonds are not included in computing any debt limitation applicable to the city
171.13of Hermantown, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
171.14principal and interest on the bonds is not subject to any levy limitation. A separate election
171.15to approve the bonds under Minnesota Statutes, section 475.58, is not required.
171.16    Subd. 4. Termination of taxes. Subject to Minnesota Statutes, section 297A.99,
171.17subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 16 years
171.18after being first imposed, or (2) when the city council determines that the amount received
171.19from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
171.20projects approved by voters as required under Minnesota Statutes, section 297A.99,
171.21subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
171.22of any bonds authorized under subdivision 3, including interest on the bonds. Except as
171.23otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
171.24any funds remaining after payment of the allowed costs due to the timing of the termination
171.25of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
171.26general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
171.27if the city so determines by ordinance.
171.28EFFECTIVE DATE.This section is effective the day after the governing body of the
171.29city of Hermantown and its chief clerical officer comply with Minnesota Statutes, section
171.30645.021, subdivisions 2 and 3.

171.31    Sec. 9. ITASCA COUNTY; TAXES AUTHORIZED.
171.32    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
171.33section 297A.99, subdivision 1, or 477A.016, or any other law or ordinance and if approved
171.34by the voters at a general election as required under Minnesota Statutes, section 297A.99,
172.1subdivision 3, Itasca County may impose by ordinance a sales and use tax of one percent
172.2for the purposes specified in subdivision 2. Except as otherwise provided in this section,
172.3the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
172.4collection, and enforcement of the tax authorized under this subdivision.
172.5    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
172.6under subdivision 1 must be used by Itasca County to pay the costs of collecting and
172.7administering the tax and paying for up to $75,000,000 for new construction of or upgrades
172.8to correctional facilities, new construction of or upgrades to court facilities including ancillary
172.9support accommodations, and new construction of or upgrades to county offices, plus an
172.10amount needed for securing and paying debt service on bonds issued for the project.
172.11    Subd. 3. Bonding authority. (a) Itasca County may issue bonds under Minnesota Statutes,
172.12chapter 475, to finance the costs of the facility authorized in subdivision 2. The aggregate
172.13principal amount of bonds issued under this subdivision may not exceed $75,000,000 for
172.14the project listed in subdivision 2, plus an amount to be applied to the payment of the costs
172.15of issuing the bonds. The bonds may be paid from or secured by any funds available to the
172.16county, including the tax authorized under subdivision 1. The issuance of bonds under this
172.17subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
172.18    (b) The bonds are not included in computing any debt limitation applicable to the county,
172.19and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest
172.20on the bonds is not subject to any levy limitation. A separate election to approve the bonds
172.21under Minnesota Statutes, section 475.58, is not required.
172.22    Subd. 4. Termination of taxes. Subject to Minnesota Statutes, section 297A.99,
172.23subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 30 years
172.24after the tax is first imposed, or (2) when the county board determines that the amount
172.25received from the tax is sufficient to pay $75,000,000 in project costs authorized under
172.26subdivision 2, plus an amount sufficient to pay the costs related to issuance of any bonds
172.27authorized under subdivision 3, including interest on the bonds. Except as otherwise provided
172.28in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining
172.29after payment of the allowed costs due to the timing of the termination of the tax under
172.30Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of
172.31the county. The tax imposed under subdivision 1 may expire at an earlier time if the county
172.32so determines by ordinance.
173.1EFFECTIVE DATE.This section is effective the day after the governing body of Itasca
173.2County and its chief clerical officer comply with Minnesota Statutes, section 645.021,
173.3subdivisions 2 and 3.

173.4    Sec. 10. CITY OF LITCHFIELD; TAXES AUTHORIZED.
173.5    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
173.6section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
173.7and if approved by the voters at a general election as required under Minnesota Statutes,
173.8section 297A.99, subdivision 3, the city of Litchfield may impose by ordinance a sales and
173.9use tax of one-half of one percent for the purposes specified in subdivision 2. Except as
173.10otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99,
173.11govern the imposition, administration, collection, and enforcement of the tax authorized
173.12under this subdivision.
173.13    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
173.14under subdivision 1 must be used by the city of Litchfield to pay the costs of collecting and
173.15administering the tax and for up to $10,000,000 for the cost of constructing a community
173.16wellness/recreation center that will include a gymnasium and general fitness spaces, a
173.17dedicated walking section, a community room, and any locker rooms and mechanical
173.18equipment needed for future additions to the facility.
173.19    Subd. 3. Bonding authority. (a) The city of Litchfield may issue bonds under Minnesota
173.20Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
173.21subdivision 2 and approved by the voters as required under Minnesota Statutes, section
173.22297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
173.23under this subdivision may not exceed $10,000,000 for the project listed in subdivision 2
173.24plus an amount to be applied to the payment of the costs of issuing the bonds. The bonds
173.25may be paid from or secured by any funds available to the city of Litchfield, including the
173.26tax authorized under subdivision 1. The issuance of bonds under this subdivision is not
173.27subject to Minnesota Statutes, sections 275.60 and 275.61.
173.28    (b) The bonds are not included in computing any debt limitation applicable to the city
173.29of Litchfield and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
173.30and interest on the bonds is not subject to any levy limitation. A separate election to approve
173.31the bonds under Minnesota Statutes, section 475.58, is not required.
173.32    Subd. 4. Termination of taxes. Subject to Minnesota Statutes, section 297A.99,
173.33subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
173.34after being first imposed, or (2) when the city council determines that the amount received
174.1from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
174.2projects approved by voters as required under Minnesota Statutes, section 297A.99,
174.3subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
174.4of any bonds authorized under subdivision 3, including interest on the bonds. Except as
174.5otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
174.6any funds remaining after payment of the allowed costs due to the timing of the termination
174.7of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
174.8general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
174.9if the city so determines by ordinance.
174.10EFFECTIVE DATE.This section is effective the day after the governing body of the
174.11city of Litchfield and its chief clerical officer comply with Minnesota Statutes, section
174.12645.021, subdivisions 2 and 3.

174.13    Sec. 11. CITY OF LITTLE FALLS; TAXES AUTHORIZED.
174.14    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
174.15section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
174.16and if approved by the voters at a general election as required under Minnesota Statutes,
174.17section 297A.99, subdivision 3, the city of Little Falls may impose by ordinance a sales and
174.18use tax of one-half of one percent for the purposes specified in subdivision 2. Except as
174.19otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99,
174.20govern the imposition, administration, collection, and enforcement of the tax authorized
174.21under this subdivision.
174.22    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
174.23under subdivision 1 must be used by the city of Little Falls to pay the costs of collecting
174.24and administering the tax and for up to $17 million for the cost of constructing a community
174.25recreational facility that includes a gymnasium with an indoor track, multipurpose rooms
174.26for meeting and educational spaces, office and storage space, and outdoor recreational
174.27facilities for aquatic recreation with a master plan to incorporate future additions to the
174.28facility.
174.29    Subd. 3. Bonding authority. (a) The city of Little Falls may issue bonds under Minnesota
174.30Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
174.31subdivision 2 and approved by the voters as required under Minnesota Statutes, section
174.32297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
174.33under this subdivision may not exceed $17,000,000 for the project listed in subdivision 2
174.34plus an amount needed to pay capitalized interest and an amount to be applied to the payment
175.1of the costs of issuing the bonds. The bonds may be paid from or secured by any funds
175.2available to the city of Little Falls, including the tax authorized under subdivision 1. The
175.3issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60
175.4and 275.61.
175.5    (b) The bonds are not included in computing any debt limitation applicable to the city
175.6of Little Falls, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
175.7principal and interest on the bonds is not subject to any levy limitation. A separate election
175.8to approve the bonds under Minnesota Statutes, section 475.58, is not required.
175.9    Subd. 4. Termination of taxes. Subject to Minnesota Statutes, section 297A.99,
175.10subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 30 years
175.11after being first imposed, or (2) when the city council determines that the amount received
175.12from the tax is sufficient to pay for the project costs authorized under subdivision 2 for the
175.13project if approved by voters as required under Minnesota Statutes, section 297A.99,
175.14subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
175.15of any bonds authorized under subdivision 3, including interest on the bonds. Except as
175.16otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
175.17any funds remaining after payment of the allowed costs due to the timing of the termination
175.18of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
175.19general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
175.20if the city so determines by ordinance.
175.21EFFECTIVE DATE.This section is effective the day after the governing body of the
175.22city of Little Falls and its chief clerical officer comply with Minnesota Statutes, section
175.23645.021, subdivisions 2 and 3.

175.24    Sec. 12. CITY OF MAPLE GROVE; TAXES AUTHORIZED.
175.25    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
175.26section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
175.27at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
175.28the city of Maple Grove may impose by ordinance a sales and use tax of one-half of one
175.29percent for the purposes specified in subdivision 2. Except as otherwise provided in this
175.30section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
175.31administration, collection, and enforcement of the tax authorized under this subdivision.
175.32The tax imposed under this subdivision is in addition to any local sales and use tax imposed
175.33under any other special law.
176.1    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
176.2under subdivision 1 must be used by the city of Maple Grove to pay the costs of collecting
176.3and administering the tax, and to finance up to $90,000,000 for the expansion and renovation
176.4of the Maple Grove Community Center, plus an amount needed for securing and paying
176.5debt service on bonds issued to finance the project.
176.6    Subd. 3. Bonding authority. (a) The city of Maple Grove may issue bonds under
176.7Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project
176.8authorized in subdivision 2, and approved by the voters as required under Minnesota Statutes,
176.9section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
176.10issued under this subdivision may not exceed $90,000,000, plus an amount applied to the
176.11payment of the costs of issuing the bonds. The bonds may be paid from or secured by any
176.12funds available to the city, including the tax authorized under subdivision 1. The issuance
176.13of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and
176.14275.61.
176.15(b) The bonds are not included in computing any debt limitation applicable to the city.
176.16Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
176.17on the bonds is not subject to any levy limitation. A separate election to approve the bonds
176.18under Minnesota Statutes, section 475.58, is not required.
176.19    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
176.20earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines
176.21that the amount received from the tax is sufficient to pay for the project costs authorized
176.22under subdivision 2 for the project approved by voters as required under Minnesota Statutes,
176.23section 297A.99, subdivision 3, paragraph (a), plus an amount sufficient to pay the costs
176.24related to issuance of any bonds authorized under subdivision 3, including interest on the
176.25bonds. Except as otherwise provided in Minnesota Statutes, section 297A.99, subdivision
176.263, paragraph (f), any funds remaining after payment of allowed costs due to the timing of
176.27the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall
176.28be placed in the general fund of the city. The tax imposed under subdivision 1 may expire
176.29at an earlier time if the city so determines by ordinance.
176.30EFFECTIVE DATE.This section is effective the day after the governing body of the
176.31city of Maple Grove and its chief clerical officer comply with Minnesota Statutes, section
176.32645.021, subdivisions 2 and 3.

177.1    Sec. 13. COUNTY OF MILLE LACS; TAXES AUTHORIZED.
177.2    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
177.3section 477A.016, or any other law or ordinance, and if approved by the voters at a general
177.4election as required under Minnesota Statutes, section 297A.99, subdivision 3, Mille Lacs
177.5County may impose by ordinance a sales and use tax of one-half of one percent for the
177.6purposes specified in subdivision 2. Except as otherwise provided in this section, the
177.7provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
177.8collection, and enforcement of the tax authorized under this subdivision.
177.9    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
177.10under subdivision 1 must be used by Mille Lacs County to pay the costs of collecting and
177.11administering the tax, and to finance up to $10,000,000 for the construction of a public
177.12works building in Mille Lacs County, plus an amount needed for securing and paying debt
177.13service on bonds issued to finance the project.
177.14    Subd. 3. Bonding authority. (a) Mille Lacs County may issue bonds under Minnesota
177.15Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
177.16subdivision 2, and approved by the voters as required under Minnesota Statutes, section
177.17297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
177.18under this subdivision may not exceed $10,000,000, plus an amount applied to the payment
177.19of the costs of issuing the bonds. The bonds may be paid from or secured by any funds
177.20available to the county, including the tax authorized under subdivision 1. The issuance of
177.21bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and
177.22275.61.
177.23(b) The bonds are not included in computing any debt limitation applicable to the county.
177.24Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
177.25on the bonds is not subject to any levy limitation. A separate election to approve the bonds
177.26under Minnesota Statutes, section 475.58, is not required.
177.27    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
177.28earlier of: (1) eight years after the tax is first imposed; or (2) when the county board
177.29determines that the amount received from the tax is sufficient to pay for the project costs
177.30authorized under subdivision 2 for the project approved by voters as required under
177.31Minnesota Statutes, section 297A.99, subdivision 3, paragraph (a), plus an amount sufficient
177.32to pay the costs related to issuance of any bonds authorized under subdivision 3, including
177.33interest on the bonds. Except as otherwise provided in Minnesota Statutes, section 297A.99,
177.34subdivision 3, paragraph (f), any funds remaining after payment of allowed costs due to the
178.1timing of the termination of the tax under Minnesota Statutes, section 297A.99, subdivision
178.212, shall be placed in the general fund of the county. The tax imposed under subdivision 1
178.3may expire at an earlier time if the county so determines by ordinance.
178.4EFFECTIVE DATE.This section is effective the day after the governing body of Mille
178.5Lacs County and its chief clerical officer comply with Minnesota Statutes, section 645.021,
178.6subdivisions 2 and 3.

178.7    Sec. 14. CITY OF MOORHEAD; TAXES AUTHORIZED.
178.8    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
178.9section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
178.10at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
178.11the city of Moorhead may impose by ordinance a sales and use tax of one-half of one percent
178.12for the purposes specified in subdivision 2. Except as otherwise provided in this section,
178.13the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
178.14collection, and enforcement of the tax authorized under this subdivision. The tax imposed
178.15under this subdivision is in addition to any local sales and use tax imposed under any other
178.16special law.
178.17    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
178.18under subdivision 1 must be used by the city of Moorhead to pay the costs of collecting and
178.19administering the tax, and to finance up to $31,590,000 for the construction of a regional
178.20library and community center in the city of Moorhead, plus an amount needed for securing
178.21and paying debt service on bonds issued to finance the project.
178.22    Subd. 3. Bonding authority. (a) The city of Moorhead may issue bonds under Minnesota
178.23Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
178.24subdivision 2, and approved by the voters as required under Minnesota Statutes, section
178.25297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
178.26under this subdivision may not exceed $31,590,000, plus an amount applied to the payment
178.27of the costs of issuing the bonds. The bonds may be paid from or secured by any funds
178.28available to the city, including the tax authorized under subdivision 1. The issuance of bonds
178.29under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
178.30(b) The bonds are not included in computing any debt limitation applicable to the city.
178.31Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
178.32on the bonds is not subject to any levy limitation. A separate election to approve the bonds
178.33under Minnesota Statutes, section 475.58, is not required.
179.1    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
179.2earlier of: (1) 22 years after the tax is first imposed; or (2) when the city council determines
179.3that the amount received from the tax is sufficient to pay for the project costs authorized
179.4under subdivision 2 for the project approved by voters as required under Minnesota Statutes,
179.5section 297A.99, subdivision 3, paragraph (a), plus an amount sufficient to pay the costs
179.6related to issuance of any bonds authorized under subdivision 3, including interest on the
179.7bonds. Except as otherwise provided in Minnesota Statutes, section 297A.99, subdivision
179.83, paragraph (f), any funds remaining after payment of allowed costs due to the timing of
179.9the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall
179.10be placed in the general fund of the city. The tax imposed under subdivision 1 may expire
179.11at an earlier time if the city so determines by ordinance.
179.12EFFECTIVE DATE.This section is effective the day after the governing body of the
179.13city of Moorhead and its chief clerical officer comply with Minnesota Statutes, section
179.14645.021, subdivisions 2 and 3.

179.15    Sec. 15. CITY OF OAKDALE; TAXES AUTHORIZED.
179.16    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
179.17section 477A.016, or any other ordinance or city charter, and if approved by the voters at
179.18a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
179.19the city of Oakdale may impose, by ordinance, a sales and use tax of one-half of one percent
179.20for the purposes specified in subdivision 2. Except as otherwise provided in this section,
179.21the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
179.22collection, and enforcement of the tax authorized under this subdivision.
179.23    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
179.24under subdivision 1 must be used by the city of Oakdale to pay the costs of collecting and
179.25administering the tax and paying for the following projects in the city, including securing
179.26and paying debt service on bonds issued to finance all or part of the following projects:
179.27(1) $22,000,000 plus associated bonding costs for construction of a new public works
179.28facility; and
179.29(2) $15,000,000 plus associated bonding costs for expansion of the police department
179.30facility.
179.31    Subd. 3. Bonding authority. (a) The city of Oakdale may issue bonds under Minnesota
179.32Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
179.33subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
180.1not exceed: (1) $22,000,000 for the project listed in subdivision 2, clause (1), plus an amount
180.2applied to the payment of costs of issuing the bonds; and (2) $15,000,000 for the projects
180.3listed in subdivision 2, clause (2), plus an amount applied to the payment of costs of issuing
180.4the bonds. The bonds may be paid from or secured by any funds available to the city of
180.5Oakdale, including the tax authorized under subdivision 1. The issuance of bonds under
180.6this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
180.7(b) The bonds are not included in computing any debt limitation applicable to the city.
180.8Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
180.9on the bonds is not subject to any levy limitation. A separate election to approve the bonds
180.10under Minnesota Statutes, section 475.58, is not required.
180.11    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
180.12earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines
180.13that the city has received from this tax $37,000,000 to fund the projects listed in subdivision
180.142 plus an amount sufficient to pay costs, including interest costs, related to the issuance of
180.15the bonds authorized in subdivision 3. Except as otherwise provided under Minnesota
180.16Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment
180.17of the allowed costs due to timing of the termination under Minnesota Statutes, section
180.18297A.99, shall be placed in the city's general fund. The tax imposed under subdivision 1
180.19may expire at an earlier time if the city so determines by ordinance.
180.20EFFECTIVE DATE.This section is effective the day after the governing body of the
180.21city of Oakdale and its chief clerical officer comply with Minnesota Statutes, section 645.021,
180.22subdivisions 2 and 3.

180.23    Sec. 16. CITY OF ST. CLOUD; TAXES AUTHORIZED.
180.24    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
180.25section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
180.26at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
180.27the city of St. Cloud may impose, by ordinance, a sales and use tax of one-half of one percent
180.28for the purposes specified in subdivision 2. Except as otherwise provided in this section,
180.29the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
180.30collection, and enforcement of the tax authorized under this subdivision. The tax imposed
180.31under this subdivision is in addition to any local sales and use tax imposed under any other
180.32special law.
180.33    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
180.34under subdivision 1 must be used by the city of St. Cloud to pay the costs of collecting and
181.1administering the tax, including securing and paying debt service on bonds issued, and to
181.2finance up to $21,100,000 plus associated bonding costs for expansion and improvement
181.3of St. Cloud's Municipal Athletic Complex.
181.4    Subd. 3. Bonding authority. (a) The city of St. Cloud may issue bonds under Minnesota
181.5Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
181.6subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
181.7not exceed $21,100,000 plus an amount applied to the payment of costs of issuing the bonds.
181.8The bonds may be paid from or secured by any funds available to the city of St. Cloud,
181.9including the tax authorized under subdivision 1. The issuance of bonds under this
181.10subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
181.11(b) The bonds are not included in computing any debt limitation applicable to the city.
181.12Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
181.13on the bonds is not subject to any levy limitation. A separate election to approve the bonds
181.14under Minnesota Statutes, section 475.58, is not required.
181.15    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
181.16earlier of: (1) five years after the tax is first imposed; or (2) when the city council determines
181.17that the amount received from the tax is sufficient to pay for the project costs authorized
181.18under subdivision 2, and approved by the voters as required under Minnesota Statutes,
181.19section 297A.99, subdivision 3, plus an amount sufficient to pay costs, including interest
181.20costs, related to the issuance of the bonds authorized in subdivision 3. Any funds remaining
181.21after payment of the allowed costs due to timing of the termination under Minnesota Statutes,
181.22section 297A.99, shall be placed in the city's general fund. The tax imposed under subdivision
181.231 may expire at an earlier time if the city so determines by ordinance.
181.24EFFECTIVE DATE.This section is effective the day after the governing body of the
181.25city of St. Cloud and its chief clerical officer comply with Minnesota Statutes, section
181.26645.021, subdivisions 2 and 3.

181.27    Sec. 17. CITY OF ST. PETER; TAXES AUTHORIZED.
181.28    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
181.29section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
181.30and if approved by the voters at a general election as required under Minnesota Statutes,
181.31section 297A.99, subdivision 3, the city of St. Peter may impose by ordinance a sales and
181.32use tax of one-half of one percent for the purposes specified in subdivision 2. Except as
181.33otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99,
182.1govern the imposition, administration, collection, and enforcement of the tax authorized
182.2under this subdivision.
182.3    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
182.4under subdivision 1 must be used by the city of St. Peter to pay the costs of collecting and
182.5administering the tax and paying for up to $9,121,000 for construction of a new fire station,
182.6plus an amount needed for securing and paying debt service on bonds issued to finance the
182.7project.
182.8    Subd. 3. Bonding authority. (a) The city of St. Peter may issue bonds under Minnesota
182.9Statutes, chapter 475, to finance the costs of the facility authorized in subdivision 2. The
182.10aggregate principal amount of bonds issued under this subdivision may not exceed $9,121,000
182.11for the project listed in subdivision 2, plus an amount to be applied to the payment of the
182.12costs of issuing the bonds. The bonds may be paid from or secured by any funds available
182.13to the city of St. Peter, including the tax authorized under subdivision 1. The issuance of
182.14bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and
182.15275.61.
182.16    (b) The bonds are not included in computing any debt limitation applicable to the city
182.17of St. Peter; and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
182.18and interest on the bonds is not subject to any levy limitation. A separate election to approve
182.19the bonds under Minnesota Statutes, section 475.58, is not required.
182.20    Subd. 4. Termination of taxes. Subject to Minnesota Statutes, section 297A.99,
182.21subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 40 years
182.22after the tax is first imposed, or (2) when the city council determines that the amount received
182.23from the tax is sufficient to pay for the $9,121,000 in project costs authorized under
182.24subdivision 2, plus an amount sufficient to pay the costs related to issuance of any bonds
182.25authorized under subdivision 3, including interest on the bonds. Except as otherwise provided
182.26in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining
182.27after payment of the allowed costs due to the timing of the termination of the tax under
182.28Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of
182.29the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so
182.30determines by ordinance.
182.31EFFECTIVE DATE.This section is effective the day after the governing body of the
182.32city of St. Peter and its chief clerical officer comply with Minnesota Statutes, section 645.021,
182.33subdivisions 2 and 3.

183.1    Sec. 18. CITY OF WADENA; TAXES AUTHORIZED.
183.2    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
183.3section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
183.4at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,
183.5the city of Wadena may impose, by ordinance, a sales and use tax of one-quarter of one
183.6percent for the purposes specified in subdivision 2. Except as otherwise provided in this
183.7section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
183.8administration, collection, and enforcement of the tax authorized under this subdivision.
183.9    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
183.10under subdivision 1 must be used by the city of Wadena to pay the costs of collecting and
183.11administering the tax and to finance up to $3,000,000, plus associated bonding costs including
183.12securing and paying debt service on bonds issued, for the Wadena Library Rehabilitation
183.13Project.
183.14    Subd. 3. Bonding authority. (a) The city of Wadena may issue bonds under Minnesota
183.15Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
183.16subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
183.17not exceed $3,000,000, plus an amount applied to the payment of costs of issuing the bonds.
183.18The bonds may be paid from or secured by any funds available to the city of Wadena,
183.19including the tax authorized under subdivision 1. The issuance of bonds under this
183.20subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
183.21(b) The bonds are not included in computing any debt limitation applicable to the city.
183.22Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
183.23on the bonds is not subject to any levy limitation. A separate election to approve the bonds
183.24under Minnesota Statutes, section 475.58, is not required.
183.25    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
183.26earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines
183.27that the amount received from the tax is sufficient to pay for the project costs authorized
183.28under subdivision 2, and approved by the voters as required under Minnesota Statutes,
183.29section 297A.99, subdivision 3, plus an amount sufficient to pay costs, including interest
183.30costs, related to the issuance of the bonds authorized in subdivision 3. Any funds remaining
183.31after payment of the allowed costs due to timing of the termination under Minnesota Statutes,
183.32section 297A.99, shall be placed in the city's general fund. The tax imposed under subdivision
183.331 may expire at an earlier time if the city so determines by ordinance.
184.1EFFECTIVE DATE.This section is effective the day after the governing body of the
184.2city of Wadena and its chief clerical officer comply with Minnesota Statutes, section 645.021,
184.3subdivisions 2 and 3.

184.4    Sec. 19. CITY OF WAITE PARK; TAXES AUTHORIZED.
184.5    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
184.6section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
184.7and if approved by the voters at a general election as required under Minnesota Statutes,
184.8section 297A.99, subdivision 3, the city of Waite Park may impose by ordinance a sales
184.9and use tax of one-half of one percent for the purposes specified in subdivision 2. Except
184.10as otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99,
184.11govern the imposition, administration, collection, and enforcement of the tax authorized
184.12under this subdivision. The tax imposed under this subdivision is in addition to any local
184.13sales and use tax imposed under any other special law.
184.14    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
184.15under subdivision 1 must be used by the city of Waite Park to pay the costs of collecting
184.16and administering the tax and for the following projects in the city, including securing and
184.17paying debt service on bonds issued to finance all or part of the following projects:
184.18(1) up to $7,500,000 plus associated bonding costs for regional trail connections; and
184.19(2) up to $20,000,000 plus associated bonding costs for construction and equipping of
184.20a public safety facility.
184.21    Subd. 3. Bonding authority. (a) The city of Waite Park may issue bonds under Minnesota
184.22Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
184.23subdivision 2 and approved by the voters as required under Minnesota Statutes, section
184.24297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
184.25under this subdivision may not exceed:
184.26(1) $7,500,000 for the project listed in subdivision 2, clause (1), plus an amount needed
184.27to pay capitalized interest and an amount to be applied to the payment of the costs of issuing
184.28the bonds; and
184.29(2) $20,000,000 for the project listed in subdivision 2, clause (2), plus an amount needed
184.30to pay capitalized interest and an amount to be applied to the payment of the costs of issuing
184.31the bonds.
185.1The bonds may be paid from or secured by any funds available to the city of Waite Park,
185.2including the tax authorized under subdivision 1. The issuance of bonds under this
185.3subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
185.4    (b) The bonds are not included in computing any debt limitation applicable to the city
185.5of Waite Park, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
185.6principal and interest on the bonds is not subject to any levy limitation. A separate election
185.7to approve the bonds under Minnesota Statutes, section 475.58, is not required.
185.8    Subd. 4. Termination of taxes. Subject to Minnesota Statutes, section 297A.99,
185.9subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 19 years
185.10after the tax is first imposed, or (2) when the city council determines that the amount received
185.11from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
185.12projects approved by voters as required under Minnesota Statutes, section 297A.99,
185.13subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
185.14of any bonds authorized under subdivision 3, including interest on the bonds. Except as
185.15otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
185.16any funds remaining after payment of the allowed costs due to the timing of the termination
185.17of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
185.18general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
185.19if the city so determines by ordinance.
185.20EFFECTIVE DATE.This section is effective the day after the governing body of the
185.21city of Waite Park and its chief clerical officer comply with Minnesota Statutes, section
185.22645.021, subdivisions 2 and 3.


185.25    Section 1. Minnesota Statutes 2020, section 469.176, is amended by adding a subdivision
185.26to read:
185.27    Subd. 4n. Temporary use of increment authorized. (a) Notwithstanding any other
185.28provision of this section or any other law to the contrary, except the requirements to pay
185.29bonds to which increments are pledged, the authority may elect by resolution to transfer
185.30unobligated increments from a district either (1) to the municipality for deposit into the
185.31municipality's general fund upon the request of the municipality, or (2) to provide
185.32improvements, loans, interest rate subsidies, or assistance in any form to businesses impacted
185.33by COVID-19. The authority may transfer increments under this subdivision after the
186.1spending plan and public hearing requirements under paragraph (c) are met. The municipality
186.2may expend transferred increments under clause (1) for any purpose permitted under the
186.3municipality's general fund.
186.4(b) For each calendar year for which transfers are permitted under this subdivision, the
186.5maximum transfer equals the excess of the district's unobligated increments which includes
186.6any increment not required for payments of obligations due during the six months following
186.7the transfer on outstanding bonds, binding contracts, and other outstanding financial
186.8obligations of the district to which the district's increments are pledged.
186.9(c) The authority may transfer increments permitted under this subdivision after creating
186.10a written spending plan that authorizes the authority to take the action described in paragraph
186.11(a) and details the use of transferred increments. Additionally, the municipality must approve
186.12the authority's spending plan after holding a public hearing. The municipality must publish
186.13notice of the hearing in a newspaper of general circulation in the municipality and on the
186.14municipality's public website at least ten days, but not more than 30 days, prior to the date
186.15of the hearing.
186.16(d) Increment that is improperly retained, received, spent, or transferred is not eligible
186.17for a transfer under this subdivision.
186.18(e) An authority making a transfer under this subdivision must provide to the Office of
186.19the State Auditor a copy of the spending plan approved and signed by the municipality.
186.20(f) The authority to transfer increments under this subdivision expires on December 31,
186.212022. All transferred increments must be spent by December 31, 2022. If the municipality
186.22cannot spend the transferred increments by December 31, 2022, the municipality must adopt
186.23a spending plan that details the use of transferred increments, and must provide a copy of
186.24this spending plan to the Office of the State Auditor.
186.25EFFECTIVE DATE; APPLICATION.This section is effective the day following
186.26final enactment and applies to increments from any district that are unobligated as of the
186.27date of final enactment regardless of when the authority made a request for certification.

186.28    Sec. 2. Minnesota Statutes 2020, section 469.1763, subdivision 2, is amended to read:
186.29    Subd. 2. Expenditures outside district. (a) For each tax increment financing district,
186.30an amount equal to at least 75 percent of the total revenue derived from tax increments paid
186.31by properties in the district must be expended on activities in the district or to pay bonds,
186.32to the extent that the proceeds of the bonds were used to finance activities in the district or
186.33to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other
187.1than redevelopment districts for which the request for certification was made after June 30,
187.21995, the in-district percentage for purposes of the preceding sentence is 80 percent. Not
187.3more than 25 percent of the total revenue derived from tax increments paid by properties
187.4in the district may be expended, through a development fund or otherwise, on activities
187.5outside of the district but within the defined geographic area of the project except to pay,
187.6or secure payment of, debt service on credit enhanced bonds. For districts, other than
187.7redevelopment districts for which the request for certification was made after June 30, 1995,
187.8the pooling percentage for purposes of the preceding sentence is 20 percent. The revenues
187.9derived from tax increments paid by properties in the district that are expended on costs
187.10under section 469.176, subdivision 4h, paragraph (b), may be deducted first before calculating
187.11the percentages that must be expended within and without the district.
187.12    (b) In the case of a housing district, a housing project, as defined in section 469.174,
187.13subdivision 11, is an activity in the district. the following are considered to be activities in
187.14the district:
187.15(1) a housing project, as defined in section 469.174, subdivision 11; and
187.16(2) a transfer of increments to an affordable housing trust fund established pursuant to
187.17section 462C.16, for expenditures made in conformity with the political subdivision's
187.18ordinance and policy establishing the trust fund. Any transfers made pursuant to this clause
187.19are not subject to the annual reporting requirements imposed by section 469.175, subdivision
187.206, except that the amount of any transfer must be reported.
187.21    (c) All administrative expenses are for activities outside of the district, except that if the
187.22only expenses for activities outside of the district under this subdivision are for the purposes
187.23described in paragraph (d), administrative expenses will be considered as expenditures for
187.24activities in the district.
187.25    (d) The authority may elect, in the tax increment financing plan for the district, to increase
187.26by up to ten 25 percentage points the permitted amount of expenditures for activities located
187.27outside the geographic area of the district under paragraph (a). As permitted by section
187.28469.176, subdivision 4k, the expenditures, including the permitted expenditures under
187.29paragraph (a), need not be made within the geographic area of the project. Expenditures
187.30that meet the requirements of this paragraph are legally permitted expenditures of the district,
187.31notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase
187.32under this paragraph, the expenditures must:
188.1    (1) be used exclusively to assist housing that meets the requirement for a qualified
188.2low-income building, as that term is used in section 42 of the Internal Revenue Code, or to
188.3assist owner-occupied housing that meets the requirements of section 469.1761; and
188.4    (2) not exceed the qualified basis of the housing, as defined under section 42(c) of the
188.5Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal
188.6Revenue Code; and
188.7    (3) be used to:
188.8    (i) acquire and prepare the site of the housing;
188.9    (ii) acquire, construct, or rehabilitate the housing; or
188.10    (iii) make public improvements directly related to the housing; or
188.11(4) be used to develop housing:
188.12(i) if the market value of the housing does not exceed the lesser of:
188.13(A) 150 percent of the average market value of single-family homes in that municipality;
188.14or
188.15(B) $200,000 for municipalities located in the metropolitan area, as defined in section
188.16473.121, or $125,000 for all other municipalities; and
188.17(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition
188.18of existing structures, site preparation, and pollution abatement on one or more parcels, if
188.19the parcel contains a residence containing one to four family dwelling units that has been
188.20vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision
188.217, but without regard to whether the residence is the owner's principal residence, and only
188.22after the redemption period has expired.
188.23(e) The authority under paragraph (d), clause (4), expires on December 31, 2016.
188.24Increments may continue to be expended under this authority after that date, if they are used
188.25to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if
188.26December 31, 2016, is considered to be the last date of the five-year period after certification
188.27under that provision.
188.28EFFECTIVE DATE.This section is effective the day following final enactment.

189.1    Sec. 3. Minnesota Statutes 2020, section 469.1763, subdivision 3, is amended to read:
189.2    Subd. 3. Five-year rule. (a) Revenues derived from tax increments paid by properties
189.3in the district are considered to have been expended on an activity within the district under
189.4subdivision 2 only if one of the following occurs:
189.5(1) before or within five years after certification of the district, the revenues are actually
189.6paid to a third party with respect to the activity;
189.7(2) bonds, the proceeds of which must be used to finance the activity, are issued and
189.8sold to a third party before or within five years after certification, the revenues are spent to
189.9repay the bonds, and the proceeds of the bonds either are, on the date of issuance, reasonably
189.10expected to be spent before the end of the later of (i) the five-year period, or (ii) a reasonable
189.11temporary period within the meaning of the use of that term under section 148(c)(1) of the
189.12Internal Revenue Code, or are deposited in a reasonably required reserve or replacement
189.13fund;
189.14(3) binding contracts with a third party are entered into for performance of the activity
189.15before or within five years after certification of the district and the revenues are spent under
189.16the contractual obligation;
189.17(4) costs with respect to the activity are paid before or within five years after certification
189.18of the district and the revenues are spent to reimburse a party for payment of the costs,
189.19including interest on unreimbursed costs; or
189.20(5) expenditures are made for housing purposes as permitted by subdivision 2, paragraphs
189.21(b) and (d), or for public infrastructure purposes within a zone as permitted by subdivision
189.222, paragraph (e).
189.23(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the
189.24original refunded bonds meet the requirements of paragraph (a), clause (2).
189.25(c) For a redevelopment district or a renewal and renovation district certified after June
189.2630, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are
189.27extended to ten years after certification of the district. For a redevelopment district certified
189.28after April 20, 2009, and before June 30, 2012, the five-year periods described in paragraph
189.29(a) are extended to eight years after certification of the district. This extension is provided
189.30primarily to accommodate delays in development activities due to unanticipated economic
189.31circumstances.
189.32(d) For a redevelopment district that was certified after December 31, 2017, the five-year
189.33periods described in paragraph (a) are extended to ten years after certification of the district.
190.1EFFECTIVE DATE.This section is effective the day following final enactment.

190.2    Sec. 4. Minnesota Statutes 2020, section 469.1763, subdivision 4, is amended to read:
190.3    Subd. 4. Use of revenues for decertification. (a) In each year beginning with the sixth
190.4year following certification of the district, or beginning with the 11th year following
190.5certification of the district for districts whose five-year rule is extended to ten years under
190.6subdivision 3, paragraph (d), if the applicable in-district percent of the revenues derived
190.7from tax increments paid by properties in the district exceeds the amount of expenditures
190.8that have been made for costs permitted under subdivision 3, an amount equal to the
190.9difference between the in-district percent of the revenues derived from tax increments paid
190.10by properties in the district and the amount of expenditures that have been made for costs
190.11permitted under subdivision 3 must be used and only used to pay or defease the following
190.12or be set aside to pay the following:
190.13(1) outstanding bonds, as defined in subdivision 3, paragraphs (a), clause (2), and (b);
190.14(2) contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4);
190.15(3) credit enhanced bonds to which the revenues derived from tax increments are pledged,
190.16but only to the extent that revenues of the district for which the credit enhanced bonds were
190.17issued are insufficient to pay the bonds and to the extent that the increments from the
190.18applicable pooling percent share for the district are insufficient; or
190.19(4) the amount provided by the tax increment financing plan to be paid under subdivision
190.202, paragraphs (b), (d), and (e).
190.21(b) The district must be decertified and the pledge of tax increment discharged when
190.22the outstanding bonds have been defeased and when sufficient money has been set aside to
190.23pay, based on the increment to be collected through the end of the calendar year, the following
190.24amounts:
190.25(1) contractual obligations as defined in subdivision 3, paragraph (a), clauses (3) and
190.26(4);
190.27(2) the amount specified in the tax increment financing plan for activities qualifying
190.28under subdivision 2, paragraph (b), that have not been funded with the proceeds of bonds
190.29qualifying under paragraph (a), clause (1); and
190.30(3) the additional expenditures permitted by the tax increment financing plan for housing
190.31activities under an election under subdivision 2, paragraph (d), that have not been funded
190.32with the proceeds of bonds qualifying under paragraph (a), clause (1).
191.1EFFECTIVE DATE.This section is effective the day following final enactment.

191.2    Sec. 5. CITY OF BLOOMINGTON; TIF AUTHORITY; AMERICAN BOULEVARD.
191.3    Subdivision 1. Establishment. Pursuant to the special rules established in subdivision
191.42, the housing and redevelopment authority of the city of Bloomington or the city of
191.5Bloomington may establish a redevelopment district within the city of Bloomington, limited
191.6to the following parcels, identified by tax identification numbers, together with adjacent
191.7roads and rights-of-way: 04-027-24-11-0032, 04-027-24-11-0033, and 04-027-24-11-0034.
191.8    Subd. 2. Special rules. If the city or authority establishes a tax increment financing
191.9district under this section, the following special rules apply:
191.10(1) the district meets all the requirements of Minnesota Statutes, section 469.174,
191.11subdivision 10;
191.12(2) expenditures incurred in connection with the development of the property described
191.13in subdivision 1 meet the requirements of Minnesota Statutes, section 469.176, subdivision
191.144j; and
191.15(3) increments generated from the district may be expended on undergrounding or
191.16overhead power lines, transformers, and related utility infrastructure within the project area
191.17and all such expenditures are deemed expended on activities within the district for purposes
191.18of Minnesota Statutes, section 469.1763.
191.19EFFECTIVE DATE.This section is effective the day after the governing body of the
191.20city of Bloomington and its chief clerical officer comply with the requirements of Minnesota
191.21Statutes, section 645.021, subdivisions 2 and 3.

191.22    Sec. 6. CITY OF BLOOMINGTON; TIF AUTHORITY; 98TH & ALDRICH.
191.23    Subdivision 1. Establishment. Pursuant to the special rules established in subdivision
191.242, the housing and redevelopment authority of the city of Bloomington or the city of
191.25Bloomington may establish a redevelopment district within the city of Bloomington, limited
191.26to the following parcels, identified by tax identification numbers, together with adjacent
191.27roads and rights-of-way: 16-027-24-41-0010, 16-027-24-41-0011, and 16-027-24-41-0012.
191.28    Subd. 2. Special rules. If the city or authority establishes a tax increment financing
191.29district under this section, the following special rules apply:
191.30(1) the district meets all the requirements of Minnesota Statutes, section 469.174,
191.31subdivision 10; and
192.1(2) expenditures incurred in connection with the development of the property described
192.2in subdivision 1 meet the requirements of Minnesota Statutes, section 469.176, subdivision
192.34j.
192.4EFFECTIVE DATE.This section is effective the day after the governing body of the
192.5city of Bloomington and its chief clerical officer comply with the requirements of Minnesota
192.6Statutes, section 645.021, subdivisions 2 and 3.

192.7    Sec. 7. CITY OF BURNSVILLE; TIF AUTHORITY.
192.8    Subdivision 1. Establishment. Under the special rules established in subdivision 2, the
192.9economic development authority of the city of Burnsville or the city of Burnsville may
192.10establish one or more redevelopment districts located wholly within the area of the city of
192.11Burnsville, Dakota County, Minnesota, limited to the parcels comprising the Burnsville
192.12Center mall together with adjacent roads and rights-of-way.
192.13    Subd. 2. Special rules. If the city or authority establishes a tax increment financing
192.14district under this section, the following special rules apply:
192.15(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
192.16469.174, subdivision 10;
192.17(2) expenditures incurred in connection with the development of the property described
192.18in subdivision 1 are deemed to meet the requirements of Minnesota Statutes, section 469.176,
192.19subdivision 4j; and
192.20(3) increments generated from the districts may be expended for the construction and
192.21acquisition of property for a bridge, tunnel, or other connector from the property described
192.22in subdivision 1 across adjacent roads and rights-of-way and all such expenditures are
192.23deemed expended on activities within the district for purposes of Minnesota Statutes, section
192.24469.1763.
192.25EFFECTIVE DATE.This section is effective the day after the governing body of the
192.26city of Burnsville and its chief clerical officer comply with the requirements of Minnesota
192.27Statutes, section 645.021, subdivisions 2 and 3.

192.28    Sec. 8. CITY OF FRIDLEY; TAX INCREMENT FINANCING DISTRICT; SPECIAL
192.29RULES.
192.30    Subdivision 1. Housing program uses. Notwithstanding Minnesota Statutes, section
192.31469.176, subdivision 4j, or 469.1763, subdivision 2, or any law to the contrary, the governing
192.32body of the city of Fridley or its development authority may elect to spend tax increments
193.1from Tax Increment Financing District No. 20 on housing programs outside of the district.
193.2The authorized housing programs include but are not limited to:
193.3(1) the revolving rehab loan program;
193.4(2) the multifamily improvement loan program;
193.5(3) the mobile home improvement loan program;
193.6(4) the last resort emergency deferred loan program;
193.7(5) the senior deferred loan program;
193.8(6) the down payment assistance loan program;
193.9(7) the residential major project grant program;
193.10(8) the residential paint rebate grant program; and
193.11(9) the front door grant program.
193.12    Subd. 2. Decertification. The five-year rule under Minnesota Statutes, section 469.1763,
193.13subdivision 3, and the use of revenues for decertification in Minnesota Statutes, section
193.14469.1763, subdivision 4, do not apply to Tax Increment Financing District No. 20.
193.15    Subd. 3. Expiration. The authority to make the election under this section expires
193.16December 31, 2023.
193.17EFFECTIVE DATE.This section is effective the day after the governing body of the
193.18city of Fridley and its chief clerical officer comply with Minnesota Statutes, section 645.021,
193.19subdivisions 2 and 3.

193.20    Sec. 9. CITY OF MINNETONKA; USE OF INCREMENT AUTHORIZED.
193.21(a) Notwithstanding Minnesota Statutes, section 469.1763, or any law to the contrary,
193.22tax increments from any redevelopment tax increment financing district in the city of
193.23Minnetonka may be used to assist affordable housing development that meets the
193.24requirements of Minnesota Statutes, section 469.1761, subdivision 2 or 3.
193.25(b) The city of Minnetonka, or its economic development authority, is authorized to
193.26transfer tax increments from tax increment districts in the city of Minnetonka to the affordable
193.27housing trust fund established by the city of Minnetonka pursuant to Minnesota Statutes,
193.28section 462C.16, for expenditures made in conformity with the city ordinance establishing
193.29the trust fund. Transfers made pursuant to this paragraph are in addition to tax increment
193.30expenditures under Minnesota Statutes, section 469.1763, subdivision 2, paragraph (d). Any
193.31transfers made pursuant to this paragraph are not subject to the annual reporting requirements
194.1imposed by Minnesota Statutes, section 469.175, subdivision 6, except that the amount of
194.2any transfer must be reported.
194.3EFFECTIVE DATE.This section is effective the day after the governing body of the
194.4city of Minnetonka and its chief clerical officer comply with the requirements of Minnesota
194.5Statutes, section 645.021, subdivisions 2 and 3.

194.6    Sec. 10. CITY OF MOUNTAIN LAKE; TIF DISTRICT NO. 1-8; FIVE-YEAR RULE
194.7EXTENSION.
194.8(a) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
194.9must be undertaken within a five-year period from the date of certification of a tax increment
194.10financing district, is extended by a five-year period for Tax Increment Financing District
194.11No. 1-8, administered by the city of Mountain Lake or its economic development authority.
194.12(b) The requirement of Minnesota Statutes, section 469.1763, subdivision 4, relating to
194.13the use of increment after the expiration of the five-year period in Minnesota Statutes,
194.14section 469.1763, subdivision 3, is extended to the district's 11th year.
194.15EFFECTIVE DATE.This section is effective the day after the governing body of the
194.16city of Mountain Lake and its chief clerical officer comply with Minnesota Statutes, section
194.17645.021, subdivisions 2 and 3.

194.18    Sec. 11. CITY OF RICHFIELD; USE OF TAX INCREMENT AUTHORIZED.
194.19(a) Notwithstanding Minnesota Statutes, section 469.1763, or any law to the contrary,
194.20tax increments from any tax increment financing district in the city of Richfield may be
194.21used to assist affordable housing development that meets the requirements of Minnesota
194.22Statutes, section 469.1761, subdivision 2 or 3.
194.23(b) The city of Richfield, or its housing and redevelopment authority, is authorized to
194.24transfer up to 15 percent of tax increments from redevelopment tax increment districts in
194.25the city of Richfield, including amounts previously accumulated, to the Affordable Housing
194.26Trust Fund established by the city of Richfield pursuant to Minnesota Statutes, section
194.27462C.16, for expenditures made in conformity with the city ordinance establishing the trust
194.28fund. Transfers made pursuant to this paragraph are in addition to tax increment expenditures
194.29under Minnesota Statutes, section 469.1763, subdivision 2, paragraph (d). Any transfers
194.30made pursuant to this paragraph are not subject to the annual reporting requirements imposed
194.31by Minnesota Statutes, section 469.175, subdivision 6, except that the amount of any transfer
194.32must be reported.
195.1(c) The authority to make transfers of tax increments pursuant to this section expires
195.2December 31, 2030.
195.3EFFECTIVE DATE.This section is effective the day after the governing body of the
195.4city of Richfield and its chief clerical officer comply with the requirements of Minnesota
195.5Statutes, section 645.021, subdivisions 2 and 3.

195.6    Sec. 12. CITY OF ST. LOUIS PARK; USE OF INCREMENT AUTHORIZED.
195.7(a) Notwithstanding Minnesota Statutes, section 469.1763, subdivision 2, paragraph (d),
195.8or any law to the contrary, tax increment from any district for which the economic
195.9development authority of St. Louis Park has elected to increase the permitted amount of
195.10expenditures for activities located outside the district's area, as allowed by Minnesota
195.11Statutes, section 469.1763, subdivision 2, paragraph (d), clause (1), must be used exclusively
195.12to assist housing development that meets either the requirements of Minnesota Statutes,
195.13section 469.1761, subdivision 2, or Minnesota Statutes, section 469.1763, subdivision 2,
195.14paragraph (d), clauses (1) to (3).
195.15(b) The economic development authority of St. Louis Park is authorized to make
195.16permanent transfers of tax increments accumulated for housing development pursuant to
195.17either Minnesota Statutes, section 469.1763, subdivision 2, paragraph (b) or (d), from the
195.18tax increment accounts to the Affordable Housing Trust Fund established by the city of St.
195.19Louis Park pursuant to Minnesota Statutes, section 462C.16, for expenditures made in
195.20conformity with the city ordinance and policy establishing such trust fund. Any transfers
195.21made pursuant to this paragraph are not subject to the annual reporting requirements imposed
195.22by Minnesota Statutes, section 469.175, subdivision 6, except that the amount of any transfer
195.23must be reported.
195.24EFFECTIVE DATE.This section is effective the day after the governing body of the
195.25city of St. Louis Park and its chief clerical officer comply with the requirements of Minnesota
195.26Statutes, section 645.021, subdivisions 2 and 3.

195.27    Sec. 13. CITY OF WAYZATA; TIF DISTRICT NO. 6.
195.28Notwithstanding Minnesota Statutes, section 469.1763, subdivision 2, the city of Wayzata
195.29may expend increments generated from Tax Increment Financing District No. 6 for the
195.30design and construction of the lakefront pedestrian walkway and community transient lake
195.31public access infrastructure related to the Panoway on Wayzata Bay project, and all such
195.32expenditures are deemed expended on activities within the district.
196.1EFFECTIVE DATE.This section is effective the day after the governing body of the
196.2city of Wayzata and its chief clerical officer comply with the requirements of Minnesota
196.3Statutes, section 645.021, subdivisions 2 and 3.

196.4    Sec. 14. CITY OF WINDOM; TIF DISTRICT 1-22; FIVE-YEAR RULE EXTENDED.
196.5(a) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
196.6must be undertaken within a five-year period from the date of certification of a tax increment
196.7financing district, is considered to be met for Tax Increment Financing District 1-22,
196.8administered by the city of Windom or its economic development authority, if activities are
196.9undertaken within ten years of the district's certification.
196.10(b) The requirement of Minnesota Statutes, section 469.1763, subdivision 4, relating to
196.11the use of increment after the expiration of the five-year period in Minnesota Statutes,
196.12section 469.1763, subdivision 3, is extended to the district's 11th year.
196.13EFFECTIVE DATE.This section is effective the day after the governing body of the
196.14city of Windom and its chief clerical officer comply with Minnesota Statutes, section
196.15645.021, subdivisions 2 and 3.

196.16    Sec. 15. CITY OF WINDOM; TIF DISTRICT 1-22; DURATION EXTENSION.
196.17Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other law
196.18to the contrary, the city of Windom or its economic development authority may elect to
196.19extend the duration limit of Tax Increment Financing District 1-22 by five years.
196.20EFFECTIVE DATE.This section is effective upon compliance by the city of Windom,
196.21Cottonwood County, and Independent School District No. 177 with the requirements of
196.22Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, subdivisions 2 and 3.


196.25    Section 1. Minnesota Statutes 2020, section 297A.993, subdivision 2, is amended to read:
196.26    Subd. 2. Allocation; termination. The proceeds of the taxes must be dedicated
196.27exclusively to: (1) payment of the capital cost of a specific transportation project or
196.28improvement; (2) payment of the costs, which may include both capital and operating costs,
196.29of a specific transit project or improvement; (3) payment of the capital costs of a safe routes
196.30to school program under section 174.40; or (4) payment of transit operating costs; or (5)
196.31payment of the capital cost of constructing buildings and other facilities for maintaining
197.1transportation or transit projects or improvements. The transportation or transit project or
197.2improvement must be designated by the board of the county, or more than one county acting
197.3under a joint powers agreement. Except for taxes for operating costs of a transit project or
197.4improvement, or for transit operations, the taxes must terminate when revenues raised are
197.5sufficient to finance the project. Nothing in this subdivision prohibits the exclusive dedication
197.6of the proceeds of the taxes to payments for more than one project or improvement. After
197.7a public hearing a county may, by resolution, dedicate the proceeds of the tax for a new
197.8enumerated project.

197.9    Sec. 2. Minnesota Statutes 2020, section 453A.04, subdivision 21, is amended to read:
197.10    Subd. 21. All other powers Exercising powers of a municipal power agency. It may
197.11exercise all other powers not inconsistent with the Constitution of the state of Minnesota
197.12or the United States Constitution, which powers may be reasonably necessary or appropriate
197.13for or incidental to the effectuation of its authorized purposes or to the exercise of any of
197.14the powers enumerated in this section, and generally may exercise in connection with its
197.15property and affairs, and in connection with property within its control, any and all powers
197.16which might be exercised by a natural person or a private corporation in connection with
197.17similar property and affairs. It may exercise the powers of a municipal power agency under
197.18chapter 453, for the limited purpose of engaging in tax-exempt prepayments and related
197.19transactions as described in section 148(b)(4) of the Internal Revenue Code of 1986, as
197.20amended, and the Code of Federal Regulations, title 26, part 1, section 1.148-1(e)(2)(iii),
197.21both as may be amended from time to time, or as may otherwise be authorized by statute
197.22or the Commissioner of Internal Revenue.

197.23    Sec. 3. Minnesota Statutes 2020, section 453A.04, is amended by adding a subdivision to
197.24read:
197.25    Subd. 22. All other powers. It may exercise all other powers not inconsistent with the
197.26Constitution of the state of Minnesota or the United States Constitution, which powers may
197.27be reasonably necessary or appropriate for or incidental to the effectuation of its authorized
197.28purposes or to the exercise of any of the powers enumerated in this section, and generally
197.29may exercise in connection with its property and affairs, and in connection with property
197.30within its control, any and all powers which might be exercised by a natural person or a
197.31private corporation in connection with similar property and affairs.

198.1    Sec. 4. Minnesota Statutes 2020, section 465.71, is amended to read:
198.2465.71 INSTALLMENT, LEASE PURCHASE; CITY, COUNTY, TOWN,
198.3SCHOOL.
198.4A home rule charter city, statutory city, county, town, or school district may purchase
198.5personal property under an installment contract, or lease real or personal property with an
198.6option to purchase under a lease-purchase agreement, by which contract or agreement title
198.7is retained by the seller or vendor or assigned to a third party as security for the purchase
198.8price, including interest, if any, but such purchases are subject to statutory and charter
198.9provisions applicable to the purchase of real or personal property. For purposes of the bid
198.10requirements contained in section 471.345, "the amount of the contract" shall include the
198.11total of all lease payments for the entire term of the lease under a lease-purchase agreement.
198.12The obligation created by an installment contract or a lease-purchase agreement for personal
198.13property, or an installment contract or a lease-purchase agreement for real property if the
198.14amount of the contract for purchase of the real property is less than $1,000,000, shall not
198.15be included in the calculation of net debt for purposes of section 475.53, and shall not
198.16constitute debt under any other statutory provision. No election shall be required in
198.17connection with the execution of an installment contract or a lease-purchase agreement
198.18authorized by this section. The city, county, town, or school district must have the right to
198.19terminate a lease-purchase agreement at the end of any fiscal year during its term.

198.20    Sec. 5. Minnesota Statutes 2020, section 475.56, is amended to read:
198.21475.56 INTEREST RATE.
198.22(a) Any municipality issuing obligations under any law may issue obligations bearing
198.23interest at a single rate or at rates varying from year to year which may be lower or higher
198.24in later years than in earlier years. Such higher rate for any period prior to maturity may be
198.25represented in part by separate coupons designated as additional coupons, extra coupons,
198.26or B coupons, but the The highest aggregate rate of interest contracted to be so paid for any
198.27period shall not exceed the maximum rate authorized by law. Such higher rate may also be
198.28represented in part by the issuance of additional obligations of the same series, over and
198.29above but not exceeding two percent of the amount otherwise authorized to be issued, and
198.30the amount of such additional obligations shall not be included in the amount required by
198.31section 475.59 to be stated in any bond resolution, notice, or ballot, or in the sale price
198.32required by section 475.60 or any other law to be paid; but if the principal amount of the
198.33entire series exceeds its cash sale price, such excess shall not, when added to the total amount
198.34of interest payable on all obligations of the series to their stated maturity dates, cause and
199.1the average annual rate of such interest to may not exceed the maximum rate authorized by
199.2law. This section does not authorize a provision in any such obligations for the payment of
199.3a higher rate of interest after maturity than before.
199.4(b) Any municipality issuing obligations under any law may sell original issue discount
199.5or premium obligations having a stated principal amount in excess of the authorized amount
199.6and the sale price, provided that:. To determine the average annual rate of interest on the
199.7obligations, any discount shall be added to, and any premium subtracted from, the total
199.8amount of interest on the obligations to their stated maturity dates.
199.9(1) the sale price does not exceed by more than two percent the amount of obligations
199.10otherwise authorized to be issued;
199.11(2) the underwriting fee, discount, or other sales or underwriting commission does not
199.12exceed two percent of the sale price; and
199.13(3) the discount rate necessary to present value total principal and interest payments
199.14over the term of the issue to the sale price does not exceed the lesser of the maximum rate
199.15permitted by law for municipal obligations or ten percent.
199.16(c) Any obligation may bear interest at a rate varying periodically at the time or times
199.17and on the terms, including convertibility to a fixed rate of interest, determined by the
199.18governing body of the municipality, but the rate of interest for any period shall not exceed
199.19any maximum rate of interest for the obligations established by law. For purposes of section
199.20475.61, subdivisions 1 and 3, the interest payable on variable rate obligations for their term
199.21shall be determined as if their rate of interest is the lesser of the maximum rate of interest
199.22payable on the obligations in accordance with their terms or the rate estimated for such
199.23purpose by the governing body, but if the interest rate is subsequently converted to a fixed
199.24rate the levy may be modified to provide at least five percent in excess of amounts necessary
199.25to pay principal of and interest at the fixed rate on the obligations when due. For purposes
199.26of computing debt service or interest pursuant to section 475.67, subdivision 12, interest
199.27throughout the term of bonds issued pursuant to this subdivision is deemed to accrue at the
199.28rate of interest first borne by the bonds. The provisions of this paragraph do not apply to
199.29general obligations issued by a statutory or home rule charter city with a population of less
199.30than 7,500, as defined in section 477A.011, subdivision 3, or to general obligations that are
199.31not rated A or better, or an equivalent subsequently established rating, by Standard and
199.32Poor's Corporation, Moody's Investors Service or other similar nationally recognized rating
199.33agency, except that any statutory or home rule charter city, regardless of population or bond
200.1rating, may issue variable rate obligations as a participant in a bond pooling program
200.2established by the League of Minnesota Cities that meets this bond rating requirement.

200.3    Sec. 6. Minnesota Statutes 2020, section 475.58, subdivision 3b, is amended to read:
200.4    Subd. 3b. Street reconstruction and bituminous overlays. (a) A municipality may,
200.5without regard to the election requirement under subdivision 1, issue and sell obligations
200.6for street reconstruction or bituminous overlays, if the following conditions are met:
200.7    (1) the streets are reconstructed or overlaid under a street reconstruction or overlay plan
200.8that describes the street reconstruction or overlay to be financed, the estimated costs, and
200.9any planned reconstruction or overlay of other streets in the municipality over the next five
200.10years, and the plan and issuance of the obligations has been approved by a vote of a two-thirds
200.11majority of the members of the governing body present at the meeting following a public
200.12hearing for which notice has been published in the official newspaper at least ten days but
200.13not more than 28 days prior to the hearing; and
200.14    (2) if a petition requesting a vote on the issuance is signed by voters equal to five percent
200.15of the votes cast in the last municipal general election and is filed with the municipal clerk
200.16within 30 days of the public hearing, the municipality may issue the bonds only after
200.17obtaining the approval of a majority of the voters voting on the question of the issuance of
200.18the obligations. If the municipality elects not to submit the question to the voters, the
200.19municipality shall not propose the issuance of bonds under this section for the same purpose
200.20and in the same amount for a period of 365 days from the date of receipt of the petition. If
200.21the question of issuing the bonds is submitted and not approved by the voters, the provisions
200.22of section 475.58, subdivision 1a, shall apply.
200.23    (b) Obligations issued under this subdivision are subject to the debt limit of the
200.24municipality and are not excluded from net debt under section 475.51, subdivision 4.
200.25    (c) For purposes of this subdivision, street reconstruction and bituminous overlays
200.26includes include but are not limited to: utility replacement and relocation and other activities
200.27incidental to the street reconstruction,; the addition or reconstruction of turn lanes, bicycle
200.28lanes, sidewalks, paths, and other improvements having a substantial public safety function,;
200.29realignments, and other modifications to intersect with state and county roads,; and the local
200.30share of state and county road projects. For purposes of this subdivision, "street
200.31reconstruction" includes expenditures for street reconstruction that have been incurred by
200.32a municipality before approval of a street reconstruction plan, if such expenditures are
200.33included in a street reconstruction plan approved on or before the date of the public hearing
200.34under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.
201.1    (d) Except in the case of turn lanes, bicycle lanes, sidewalks, paths, and other safety
201.2improvements,; realignments,; intersection modifications,; and the local share of state and
201.3county road projects, street reconstruction and bituminous overlays does not include the
201.4portion of project cost allocable to widening a street or adding curbs and gutters where none
201.5previously existed.

201.6    Sec. 7. Minnesota Statutes 2020, section 475.60, subdivision 1, is amended to read:
201.7    Subdivision 1. Advertisement. All obligations shall be negotiated and sold by the
201.8governing body, except when authority therefor is delegated by the governing body or by
201.9the charter of the municipality to a board, department, or officers of the municipality. Except
201.10as provided in section 475.56, obligations shall be sold at not less than par value plus accrued
201.11interest to date of delivery and not greater than two percent greater than the amount
201.12authorized to be issued plus accrued interest. Except as provided in subdivision 2 all
201.13obligations shall be sold at competitive sale after notice given as provided in subdivision
201.143.

201.15    Sec. 8. Minnesota Statutes 2020, section 475.67, subdivision 8, is amended to read:
201.16    Subd. 8. Escrow account securities. Securities purchased for the escrow account shall
201.17be limited to:
201.18(1) general obligations of the United States, securities whose principal and interest
201.19payments are guaranteed by the United States, including but not limited to Resolution
201.20Funding Corporation Interest Separate Trading of Registered Interest and Principal of
201.21Securities and United States Agency for International Development Bonds, and securities
201.22issued by the following agencies of the United States: Banks for Cooperatives, United States
201.23government-sponsored enterprises including but not limited to Federal Home Loan Banks,
201.24Federal Intermediate Credit Banks, Federal Land Banks, and the Federal Farm Credit System,
201.25the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation;
201.26or
201.27(2) obligations issued or guaranteed by any state or any political subdivision of a state,
201.28which at the date of purchase are rated in the highest or the next highest rating category by
201.29Standard and Poor's Corporation, Moody's Investors Service, or a similar nationally
201.30recognized rating agency, but not less than the rating on the refunded bonds immediately
201.31prior to the refunding.
202.1"Rating category," as used in this subdivision, means a generic securities rating category,
202.2without regard in the case of a long-term rating category to any refinement or gradation of
202.3such long-term rating category by a numerical modifier or otherwise.

202.4    Sec. 9. REPEALER.
202.5Minnesota Statutes 2020, section 469.055, subdivision 7, is repealed.


202.8    Section 1. Minnesota Statutes 2020, section 3.192, is amended to read:
202.93.192 REQUIREMENTS FOR NEW OR RENEWED TAX EXPENDITURES.
202.10(a) Any bill that creates, renews, or continues a tax expenditure must include a statement
202.11of intent that clearly provides the purpose of the tax expenditure and a standard or goal
202.12against which its effectiveness may be measured.
202.13(b) For purposes of this section, "tax expenditure" has the meaning given in section
202.14270C.11, subdivision 6.
202.15(c) Any bill that creates a new tax expenditure or continues an expiring tax expenditure
202.16must include an expiration date for the tax expenditure that is no more than eight years from
202.17the day the provision takes effect.
202.18EFFECTIVE DATE.This section is effective beginning with the 2022 legislative
202.19session.

202.20    Sec. 2. Minnesota Statutes 2020, section 3.8853, subdivision 2, is amended to read:
202.21    Subd. 2. Director; staff. (a) The Legislative Budget Office Oversight Commission must
202.22appoint a director and establish the director's duties. The director may hire staff necessary
202.23to do the work of the office. The director serves in the unclassified service for a term of six
202.24years and may not be removed during a term except for cause after a public hearing.
202.25(b) The director and staff hired under this section must provide professional and technical
202.26assistance to the Tax Expenditure Review Commission under section 3.8855.

202.27    Sec. 3. [3.8855] TAX EXPENDITURE REVIEW COMMISSION.
202.28    Subdivision 1. Establishment. The Tax Expenditure Review Commission is created to
202.29review Minnesota's tax expenditures and evaluate their effectiveness and fiscal impact.
203.1    Subd. 2. Definitions. For the purposes of this section, "significant tax expenditure,"
203.2"tax," and "tax expenditure" have the meanings given in section 270C.11, subdivision 6.
203.3    Subd. 3. Membership. (a) The commission consists of:
203.4(1) two senators appointed by the senate majority leader;
203.5(2) two senators appointed by the senate minority leader;
203.6(3) two representatives appointed by the speaker of the house;
203.7(4) two representatives appointed by the minority leader of the house of representatives;
203.8and
203.9(5) the commissioner of revenue or the commissioner's designee.
203.10(b) Each appointing authority must make appointments by January 31 of the regular
203.11legislative session in the odd-numbered year.
203.12(c) If the chair of the house or senate committee with primary jurisdiction over taxes is
203.13not an appointed member, the chair is an ex officio, nonvoting member of the commission.
203.14    Subd. 4. Duties. (a) In the first three years after the commission is established, the
203.15commission must complete an initial review of the state's tax expenditures. The initial review
203.16must identify the purpose of each of the state's tax expenditures, if none was identified in
203.17the enacting legislation in accordance with section 3.192. The commission may also identify
203.18metrics for evaluating the effectiveness of an expenditure.
203.19(b) In each year following the initial review under paragraph (a), the commission must
203.20review and evaluate Minnesota's tax expenditures on a regular, rotating basis. The
203.21commission must establish a review schedule that ensures each tax expenditure will be
203.22reviewed by the commission at least once every ten years. The commission may review
203.23expenditures affecting similar constituencies or policy areas in the same year, but the
203.24commission must review a subset of the tax expenditures within each tax type each year.
203.25To the extent possible, the commission must review a similar number of tax expenditures
203.26within each tax type each year. The commission may decide not to review a tax expenditure
203.27that is adopted by reference to federal law.
203.28(c) Before December 1 of the year a tax expenditure is included in a commission report,
203.29the commission must hold a public hearing on the expenditure, including but not limited to
203.30a presentation of the review components in subdivision 5.
203.31    Subd. 5. Components of review. (a) When reviewing a tax expenditure, the commission
203.32must at a minimum:
204.1(1) provide an estimate of the annual revenue lost as a result of the expenditure;
204.2(2) identify the purpose of the tax expenditure if none was identified in the enacting
204.3legislation in accordance with section 3.192;
204.4(3) estimate the measurable impacts and efficiency of the tax expenditure in
204.5accomplishing the purpose of the expenditure;
204.6(4) compare the effectiveness of the tax expenditure and a direct expenditure with the
204.7same purpose;
204.8(5) identify potential modifications to the tax expenditure to increase its efficiency or
204.9effectiveness;
204.10(6) estimate the amount by which the tax rate for the relevant tax could be reduced if
204.11the revenue lost due to the tax expenditure were applied to a rate reduction;
204.12(7) if the tax expenditure is a significant tax expenditure, estimate the incidence of the
204.13tax expenditure and the effect of the expenditure on the incidence of the state's tax system;
204.14(8) consider the cumulative fiscal impacts of other state and federal taxes providing
204.15benefits to taxpayers for similar activities; and
204.16(9) recommend whether the expenditure be continued, repealed, or modified.
204.17(b) The commission may omit a component in paragraph (a) if the commission determines
204.18it is not feasible due to the lack of available data, third-party research, staff resources, or
204.19lack of a majority support for a recommendation.
204.20    Subd. 6. Department of Revenue; research support. (a) The research division of the
204.21Department of Revenue must provide the commission with the data required to complete
204.22the review components in subdivision 5, paragraph (a), clauses (1), (6), (7), and (8).
204.23(b) At the request of the commission, the research division of the Department of Revenue
204.24must provide the commission with summary data on a tax expenditure in support of a review.
204.25(c) Data shared under this section must comply with the rules governing statistical studies
204.26under section 270B.04.
204.27    Subd. 7. Report to legislature. (a) By December 15 of each year, the commission must
204.28submit a written report to the legislative committees with jurisdiction over tax policy. The
204.29report must detail the results of the commission's review of tax expenditures in the previous
204.30calendar year, including the review components detailed in subdivision 5.
205.1(b) Notwithstanding paragraph (a), during the period of initial review under subdivision
205.24, the report may be limited to the purpose statements and metrics for evaluating the
205.3effectiveness of expenditures, as identified by the commission. The report may also include
205.4relevant publicly available data on an expenditure.
205.5(c) The report may include any additional information the commission deems relevant
205.6to the review of an expenditure.
205.7(d) The legislative committees with jurisdiction over tax policy must hold a public
205.8hearing on the report during the regular legislative session in the year following the year in
205.9which the report was submitted.
205.10    Subd. 8. Terms; vacancies. (a) Members of the commission serve a term beginning
205.11upon appointment and ending at the beginning of the regular legislative session in the next
205.12odd-numbered year. The appropriate appointing authority must fill a vacancy for a seat of
205.13a current legislator for the remainder of the unexpired term. Members may be removed or
205.14replaced at the pleasure of the appointing authority.
205.15(b) If a commission member ceases to be a member of the legislative body from which
205.16the member was appointed, the member vacates membership on the commission.
205.17    Subd. 9. Officers. The commission shall elect a chair and vice-chair as presiding officers.
205.18The chair and vice-chair must alternate every two years between members of the house of
205.19representatives and senate. The chair and vice-chair may not be from the same legislative
205.20chamber.
205.21    Subd. 10. Staff. Legislative Budget Office staff hired under section 3.8853, subdivision
205.222, must provide professional and technical assistance to the commission as the commission
205.23deems necessary, including assistance with the report under subdivision 7.
205.24    Subd. 11. Expenses. The members of the commission and its staff shall be reimbursed
205.25for all expenses actually and necessarily incurred in the performance of their duties.
205.26Reimbursement for expenses incurred shall be made in accordance with policies adopted
205.27by the Legislative Coordinating Commission.
205.28EFFECTIVE DATE; SPECIAL PROVISIONS.(a) This section is effective the day
205.29following final enactment.
205.30(b) Appointing authorities for the commission must make initial appointments by January
205.3115, 2022. The speaker of the house must designate one member of the commission to convene
205.32the first meeting of the commission by July 1, 2022. The first report of the commission
205.33under Minnesota Statutes, section 3.8855, subdivision 7, is due on December 15, 2022.

206.1    Sec. 4. Minnesota Statutes 2020, section 270B.14, is amended by adding a subdivision to
206.2read:
206.3    Subd. 22. Tax Expenditure Review Commission. The commissioner must disclose to
206.4the Tax Expenditure Review Commission the data required under section 3.8855, subdivision
206.56.
206.6EFFECTIVE DATE.This section is effective the day following final enactment.

206.7    Sec. 5. Minnesota Statutes 2020, section 270C.11, subdivision 2, is amended to read:
206.8    Subd. 2. Preparation; submission. The commissioner shall prepare a tax expenditure
206.9budget for the state. The tax expenditure budget report shall be submitted to the legislature
206.10by February November 1 of each even-numbered year.
206.11EFFECTIVE DATE.This section is effective for tax expenditure budgets due on or
206.12after November 1, 2023.

206.13    Sec. 6. Minnesota Statutes 2020, section 270C.11, subdivision 4, is amended to read:
206.14    Subd. 4. Contents. (a) The report shall detail for each tax expenditure item:
206.15(1) the amount of tax revenue forgone,;
206.16(2) a citation of the statutory or other legal authority for the expenditure, and;
206.17(3) the year in which it was enacted or the tax year in which it became effective.;
206.18(4) the purpose of the expenditure, as identified in the enacting legislation in accordance
206.19with section 3.192 or by the Tax Expenditure Review Commission;
206.20(5) the incidence of the expenditure, if it is a significant sales or income tax expenditure;
206.21and
206.22(6) the revenue-neutral amount by which the relevant tax rate could be reduced if the
206.23expenditure were repealed.
206.24(b) The report may contain additional information which the commissioner considers
206.25relevant to the legislature's consideration and review of individual tax expenditure items.
206.26This may include, but is not limited to, statements of the intended purpose of the tax
206.27expenditure, analysis of whether the expenditure is achieving that objective, and the effect
206.28of the expenditure device on the distribution of the tax burden and administration of the tax
206.29system.
207.1EFFECTIVE DATE.This section is effective for tax expenditure budgets due on or
207.2after November 1, 2023.

207.3    Sec. 7. Minnesota Statutes 2020, section 270C.11, subdivision 6, is amended to read:
207.4    Subd. 6. Definitions. For purposes of this section, the following terms have the meanings
207.5given:
207.6(1) "business tax credit" means:
207.7(i) a credit against the corporate franchise tax claimed by a C corporation; or
207.8(ii) a credit against the individual or fiduciary income tax claimed by a pass-through
207.9entity that is allocated to its partners, members, or shareholders;
207.10(2) "pass-through entity" means a partnership, limited liability corporation, or S
207.11corporation;
207.12(3) "significant tax expenditure" means a tax expenditure, but excluding any tax
207.13expenditure that:
207.14(i) is incorporated into state law by reference to a federal definition of income;
207.15(ii) results in a revenue reduction of less than $10,000,000 per biennium; or
207.16(iii) is a business tax credit;
207.17(4) "tax expenditure" means a tax provision which provides a gross income definition,
207.18deduction, exemption, credit, or rate for certain persons, types of income, transactions, or
207.19property that results in reduced tax revenue, but excludes provisions used to mitigate tax
207.20pyramiding; and
207.21(2) (5) "tax" means any tax of statewide application or any tax authorized by state law
207.22to be levied by local governments generally. It does not include a special local tax levied
207.23pursuant to special law or to a special local tax levied pursuant to general authority that is
207.24no longer applicable to local governments generally.; and
207.25(6) "tax pyramiding" means imposing sales taxes under chapter 297A on intermediate
207.26business-to-business transactions rather than sales to final consumers.
207.27EFFECTIVE DATE.This section is effective for tax expenditure budgets due on or
207.28after November 1, 2023.

208.1    Sec. 8. Minnesota Statutes 2020, section 270C.13, subdivision 1, is amended to read:
208.2    Subdivision 1. Biennial report. (a) The commissioner shall report to the legislature by
208.3March 1 of each odd-numbered year on the overall incidence of the income tax, sales and
208.4excise taxes, and property tax.
208.5(b) The commissioner must submit the report:
208.6(1) by March 1, 2021; and
208.7(2) by March 1, 2024, and each even-numbered year thereafter.
208.8(c) The report shall present information on the distribution of the tax burden as follows:
208.9(1) for the overall income distribution, using a systemwide incidence measure such as the
208.10Suits index or other appropriate measures of equality and inequality; (2) by income classes,
208.11including at a minimum deciles of the income distribution; and (3) by other appropriate
208.12taxpayer characteristics.
208.13EFFECTIVE DATE.This section is effective for tax incidence reports due on or after
208.14March 1, 2021.

208.15    Sec. 9. STATEMENT OF INTENT; TAX EXPENDITURE PURPOSE
208.16STATEMENTS.
208.17The intent of sections 10 to 15 is to identify purpose statements for the tax expenditures
208.18identified, in accordance with Minnesota Statutes, section 3.192. The purpose statements
208.19in this act for previously enacted expenditures were included in proposed legislation, but
208.20were omitted from the legislation that enacted the expenditures. The provisions of this act
208.21are intended to provide context for evaluating the effectiveness of the tax expenditures
208.22referenced and are not intended to have a substantive effect on the meaning or administration
208.23of the laws referenced.

208.24    Sec. 10. PURPOSE STATEMENTS; 2021 OMNIBUS TAX BILL.
208.25    Subdivision 1. Intent. In accordance with the requirements in Minnesota Statutes, section
208.263.192, the purpose and goals for the tax expenditures in this act are listed in this section.
208.27    Subd. 2. Sales tax purpose statements. (a) The purpose of the exemption in article 4,
208.28section 1, is to create parity between the purchase of season tickets in a preferred viewing
208.29location for a college sporting event with the purchase of suite licenses in a stadium for an
208.30amusement or athletic event. The standard against which effectiveness is to be measured is
208.31the increase in the number of college sporting event season tickets purchased.
209.1(b) The purpose of the exemption in article 4, section 2, is to allow student groups to
209.2make fund-raising sales without the requirement of collecting sales tax and to restore the
209.3exemption that existed prior to a 2019 law change that imposed the requirement for student
209.4groups to collect sales tax on fund-raising sales when the proceeds are deposited into a
209.5school district account. The standard against which effectiveness is to be measured is the
209.6amount of time school districts spent collecting and filing sales tax and to increase the
209.7amount raised by school groups.
209.8(c) The purpose of the exemption in article 4, section 3, is to reduce the cost to nonprofit
209.9organizations for providing prepared food through their charitable missions. The standard
209.10against which effectiveness is to be measured is the number of meals nonprofit organizations
209.11provided to those in need.
209.12(d) The purpose of the exemptions in article 4, sections 4, 5, and 11 to 19, is to reduce
209.13the cost of constructions of public safety facilities and other publicly owned buildings. The
209.14standard against which effectiveness is to be measured is the decrease in the growth in local
209.15property taxes and services in these communities.
209.16(e) The purpose of the exemptions in article 4, sections 9, 10, and 20, is to encourage
209.17rebuilding in the damaged area of each city. The standard against which effectiveness is to
209.18be measured is whether these properties returned to the tax rolls at the same or greater value.
209.19(f) The purpose of the exemption in article 4, section 21, is to reduce the cost to
209.20restaurants for purchasing items that adapt the building to health guidelines surrounding
209.21COVID-19. The standard against which effectiveness is to be measured is the profitability
209.22of restaurants affected by the peacetime health emergency.
209.23    Subd. 3. Income and corporate franchise tax purpose statements. (a) The purpose
209.24of the tax expenditure in article 2, sections 2 and 3, extending the sunset date for the small
209.25business investment credit is to encourage investment in innovative small businesses in
209.26Minnesota. The standard against which effectiveness is to be measured is the increase in
209.27the number of these businesses in the state, the number of people employed by these
209.28businesses in the state, the productivity of these businesses, or the sales of these businesses.
209.29(b) The purpose of the tax expenditure in article 2, sections 5, 21, and 40, establishing
209.30the film production credit is to encourage investment in Minnesota film productions. The
209.31standard against which effectiveness is to be measured is the increase in the number of these
209.32productions and people employed in the state's film industry.
209.33(c) The purpose of the tax expenditure in article 2, section 27, extending the sunset date
209.34for the credit for historic structure rehabilitation is to encourage investment in rehabilitating
210.1historic buildings. The standard against which effectiveness is to be measured is the increase
210.2in the number of historic rehabilitation projects in the state.
210.3(d) The purpose of the tax expenditures in article 1, sections 1, 2, 3, 13, and 14,
210.4conforming Minnesota individual income, corporate franchise, and estate taxes to changes
210.5in federal law through December 31, 2020, is to simplify compliance with and administration
210.6of those taxes. The standard against which effectiveness is to be measured is the reduction
210.7in the number of income tax forms and text in the instructions for taxpayers resulting from
210.8this provision.
210.9(e) The purpose of the tax expenditure in article 1, section 17, providing a subtraction
210.10for a portion of unemployment compensation is to provide financial support to unemployed
210.11persons and to encourage economic activity in the state. The standard against which
210.12effectiveness is to be measured is the increase in after-tax income of unemployed persons
210.13and gross state product.
210.14(f) The purpose of the tax expenditure in article 1, section 15, subdivisions 2 and 3,
210.15providing a subtraction for gross income related to the federal employer credits for paid
210.16family and medical leave is to provide financial support to businesses in Minnesota. The
210.17standard against which effectiveness is to be measured is the amount of tax paid by small
210.18businesses receiving the federal credits and the number of individuals employed by businesses
210.19receiving the federal credits.
210.20(g) The purpose of the tax expenditure in article 1, section 15, subdivisions 4 and 5,
210.21providing a subtraction for wages used to claim the federal employee retention credit is to
210.22encourage businesses to retain their employees. The standard against which effectiveness
210.23is to be measured is the employment rate in Minnesota and the number of individuals
210.24employed by businesses receiving the federal credits.
210.25    Subd. 4. Property tax purpose statements. (a) The provision in article 7, section 3,
210.26creating a property tax exemption for certain property owned by an Indian Tribe is intended
210.27to reduce the tax burden on Tribe-owned property that fails to qualify for an exemption
210.28under Minnesota Statutes, section 272.02, subdivision 7, because the Tribe is not exempt
210.29from federal income taxation under section 501(c)(3) of the Internal Revenue Code. The
210.30standard against which effectiveness is to be measured is the reduction in property tax levied
210.31on Tribe-owned property.
210.32(b) The provision in article 7, section 16, which sets the classification rate of all
210.33manufactured home park property at 0.75 percent is intended to reduce the tax burden on
210.34manufactured home parks and preserve manufactured home parks as an affordable housing
211.1option in Minnesota. The standard against which effectiveness is to be measured is the
211.2reduction in property tax burden on manufactured home parks and the number of
211.3manufactured home parks in Minnesota.

211.4    Sec. 11. PURPOSE STATEMENTS; 2019 OMNIBUS TAX BILL.
211.5    Subdivision 1. Source of purpose statements. The purpose statements in this section
211.6were originally included in the 2019 bill styled as House File 2125, the third engrossment,
211.7in the 91st Legislature. The tax expenditures referenced were enacted in Laws 2019, First
211.8Special Session chapter 6.
211.9    Subd. 2. Sales tax purpose statements. (a) The purpose of the exemption in Minnesota
211.10Statutes, section 297A.67, subdivision 37, is to level the playing field for costs between
211.11local governments and private entities of managing invasive species in lakes. The goal is
211.12an increase in the number of lakes where invasive species are being controlled.
211.13(b) The purpose of the exemption in Minnesota Statutes, section 297A.70, subdivision
211.1410, paragraph (c), is to reduce the cost of providing education on the state's farming history.
211.15The goal is to decrease the public cost of access to this facility.
211.16(c) The purpose of the exemption in Minnesota Statutes, section 297A.70, subdivision
211.1720, is to decrease maintenance costs for the ice arena. The goal is to increase local recreation
211.18opportunities and reduce local participation costs.
211.19(d) The purpose of the exemption in Minnesota Statutes, section 297A.70, subdivision
211.2021, is to help county agricultural societies maintain county fairgrounds. The goal is to
211.21increase spending on fairground maintenance and capital improvements.
211.22(e) The purpose of the exemptions in Minnesota Statutes, section 297A.71, subdivision
211.2350, is to encourage rebuilding in the damaged area of each city. The goal is to have these
211.24properties returned to the tax rolls at the same or greater value.
211.25(f) The purpose of the exemptions in Minnesota Statutes, section 297A.71, subdivision
211.2651, is to encourage rebuilding in the damaged area of each city. The goal is to have these
211.27properties returned to the tax rolls at the same or greater value.
211.28(g) The purpose of the exemption in Minnesota Statutes, section 297A.71, subdivision
211.2952, is to reduce the cost of providing local public services in these communities. The goal
211.30is to decrease the growth in local property taxes and service fees in these communities.
211.31    Subd. 3. Income and corporate franchise tax purpose statements. (a) The purpose
211.32and goal of the tax expenditure under Minnesota Statutes, sections 290.0132, subdivision
212.129; 290.0134, subdivision 18; 290.0921, subdivisions 2 and 3; relating to disallowed expenses
212.2under section 280E of the Internal Revenue Code, is to provide equitable state tax treatment
212.3between medical cannabis manufacturers that are not allowed to deduct their business
212.4expenses under the Internal Revenue Code and manufacturers of other goods who may
212.5deduct these expenses.
212.6(b) The purpose of the tax expenditures under Minnesota Statutes, section 116J.8737,
212.7subdivision 1, relating to the minimum qualified investment threshold for minority-, veteran-,
212.8or women-owned businesses; subdivision 5, relating to the $10,000,000 allocation for taxable
212.9years beginning after December 31, 2018, and before January 1, 2020, and beginning after
212.10December 31, 2020, and before January 1, 2022; and subdivision 12, relating to the extension
212.11of the sunset date; is to encourage investment in innovative small businesses in Minnesota
212.12and the goal of the these expenditures is to increase the number of these businesses in the
212.13state, the number of people employed by these businesses in the state, the productivity of
212.14these businesses, or the sales of these businesses.

212.15    Sec. 12. PURPOSE STATEMENTS; 2017 OMNIBUS TAX BILL.
212.16    Subdivision 1. Source of purpose statements. The purpose statements in this section
212.17were originally included in the 2015 bill styled as House File 848, the third engrossment,
212.18in the 89th Legislature. The tax expenditures referenced were enacted in Laws 2017, First
212.19Special Session chapter 1.
212.20    Subd. 2. Sales tax purpose statements. (a) The provision of Minnesota Statutes, section
212.21297A.67, subdivision 34, is intended to provide equitable tax treatment for different types
212.22of investments. The standard against which effectiveness is to be measured is the increase
212.23in precious metal bullion sold in the state and in number of coin and precious metal trade
212.24shows held in the state.
212.25(b) The provisions of Minnesota Statutes, section 297A.70, subdivision 14, are intended
212.26to increase the ability of the nonprofit to provide opportunities for educating the public on
212.27the history of farming. The standard against which effectiveness is to be measured is an
212.28increase in the percent of the organization's budget being used for direct spending for its
212.29mission.
212.30    Subd. 3. Income and corporate franchise tax purpose statements. (a) The provisions
212.31of Minnesota Statutes, section 290.0132, subdivision 26, are intended to attract to Minnesota
212.32recipients of Social Security benefits and to retain those already present, by providing a
212.33phased-in subtraction of Social Security benefits. The standard against which effectiveness
213.1is to be measured is the change over time in the number of Social Security recipients in
213.2Minnesota, after adjusting for demographic changes.
213.3(b) The provisions of Minnesota Statutes, section 290.0132, subdivision 23, and
213.4Minnesota Statutes, section 290.0684, are intended to increase saving for higher education
213.5expenses. The standard against which effectiveness is to be measured is the change over
213.6time, as tracked by the Minnesota Office of Higher Education, in: (1) the estimated number
213.7of Minnesota residents making contributions to the Minnesota College Savings Plan, and
213.8(2) the amount contributed.
213.9(c) The modifications to Minnesota Dependent Care Credit amending Minnesota Statutes,
213.10section 290.067, subdivision 1, and repealing Minnesota Statutes, section 290.067,
213.11subdivision 2, modifying the limitations for claiming the credit, are intended to simplify
213.12the dependent care credit by tying it more closely to the federal credit and to recognize an
213.13increased burden in dependent care expenses as a cost of workforce participation for parents.
213.14The standard against which effectiveness is to be measured is the change in the error rate
213.15on claims for dependent care credits and the change in the average credit amount claimed
213.16by parents in the income range eligible for the credit under present law.
213.17(d) The provisions of Minnesota Statutes, section 290.0686, are intended to improve the
213.18quality of teaching in Minnesota kindergarten through grade 12 schools by encouraging
213.19teachers to obtain master's degrees in the subject areas they teach. The standard against
213.20which effectiveness is to be measured is the change over time in the number of kindergarten
213.21through grade 12 classroom teachers with master's degrees in the subject area that they
213.22teach.
213.23(e) The provisions of Minnesota Statutes, section 290.0682, are intended to reduce the
213.24debt burden of recent graduates of higher education programs and to reduce and potentially
213.25reverse the current net demographic loss of young adults in Minnesota. The standard against
213.26which effectiveness is to be measured is the change over time in the number of young adults
213.27choosing to move to or remain in Minnesota, as measured by the state demographer.
213.28(f) The purpose of the tax expenditures under Minnesota Statutes, sections 290.01,
213.29subdivision 19; 289A.02, subdivision 7; 290.01, subdivision 31; and 290A.03, subdivision
213.3015; conforming Minnesota individual income, corporate franchise, and estate taxes to changes
213.31in federal law through December 16, 2016, are intended to simplify compliance with and
213.32administration of those taxes. The standard against which effectiveness is to be measured
213.33is the reduction in the number of income tax forms and text in the instructions for taxpayers
213.34resulting from this provision.
214.1    Subd. 4. Other purpose statements. (a ) The provisions in Minnesota Statutes, section
214.2290.06, subdivision 38, are intended to reduce the effect of school bond referenda on owners
214.3of agricultural property. The standard against which the effectiveness of the credit is to be
214.4measured is the amount of property tax reductions provided to owners of agricultural land.
214.5(b) The provisions in Minnesota Statutes, section 298.24, subdivision 1, are intended to
214.6encourage the production of direct reduced ore and the establishment of more direct reduced
214.7ore production facilities in Minnesota. The standard against which this effectiveness is to
214.8be measured is the amount of direct reduced ore produced and the number of producers of
214.9direct reduced ore before and after enactment.

214.10    Sec. 13. PURPOSE STATEMENTS; 2017 TAX CONFORMITY BILL.
214.11    Subdivision 1. Source of purpose statements. The purpose statements in this section
214.12were originally included in the 2015 bill styled as House File 848, the third engrossment,
214.13in the 89th Legislature. The tax expenditure referenced was enacted in Laws 2017, chapter
214.141.
214.15    Subd. 2. Income and corporate franchise tax purpose statements. The purpose of
214.16the tax expenditures under Minnesota Statutes, sections 290.01, subdivision 19; 289A.02,
214.17subdivision 7; 290.01, subdivision 31; and 290A.03, subdivision 15; conforming Minnesota
214.18individual income, corporate franchise, and estate taxes to changes in federal law through
214.19December 16, 2016, are intended to simplify compliance with and administration of those
214.20taxes. The standard against which effectiveness is to be measured is the reduction in the
214.21number of income tax forms and text in the instructions for taxpayers resulting from this
214.22provision.

214.23    Sec. 14. PURPOSE STATEMENTS; 2016 OMNIBUS SUPPLEMENTAL SPENDING
214.24BILL.
214.25    Subdivision 1. Source of purpose statements. The purpose statements in this section
214.26were originally included in the 2015 bill styled as House File 848, the third engrossment,
214.27in the 89th Legislature. The tax expenditure referenced was enacted in Laws 2016, chapter
214.28189.
214.29    Subd. 2. Income and corporate franchise tax purpose statements. The provisions of
214.30Minnesota Statutes, section 290.0132, subdivision 21, are intended to attract to Minnesota
214.31military retirees, and to retain those already present, by allowing a subtraction from income
214.32tied to the number of years of military service provided. The standard against which
215.1effectiveness is to be measured is the change over time in the number of military retirees
215.2in Minnesota.

215.3    Sec. 15. PURPOSE STATEMENTS; 2014 OMNIBUS TAX BILL.
215.4    Subdivision 1. Source of purpose statements. The purpose statements in this section
215.5were originally included in the 2014 bill styled as House File 3167, the third engrossment,
215.6in the 89th Legislature. The tax expenditures referenced were enacted in Laws 2014, chapter
215.7308.
215.8    Subd. 2. Sales tax purpose statements. (a) The provision of Minnesota Statutes, section
215.9297A.68, subdivision 3a, defining certain coin-operated amusement devices as sales for
215.10resale is intended to reduce tax pyramiding by exempting an input to a taxable service.
215.11(b) The provision of Minnesota Statutes, section 297A.70, subdivision 2, paragraph (b),
215.12clause (5), modifying the sales tax on certain local government purchases is intended to
215.13reduce the cost of providing local government services, remove a barrier for
215.14intergovernmental cooperation, and reduce existing compliance and administration costs
215.15for local governments.
215.16(c) The provisions of Minnesota Statutes, section 297A.70, subdivision 13, raising the
215.17limit on tax exempt fund-raising by nonprofit organizations are intended to reflect the impact
215.18on inflation over time on the limit and reduce compliance costs for groups that exceed the
215.19limit.
215.20(d) The provision of Minnesota Statutes, section 297G.03, subdivision 5, allowing a
215.21microdistillery credit is to relieve small distillers of the burden of paying excise tax on the
215.22distribution of free samples of their products and to encourage the development and marketing
215.23of products by niche distillers in the state.
215.24    Subd. 3. Income and corporate franchise tax purpose statements. The modifications
215.25to the National Guard subtraction contained in Laws 2014, chapter 308, article 4, section
215.2612, are intended to provide equitable tax treatment to Minnesota residents who are members
215.27of the National Guard and serve full time in Active Guard/Reserve status by allowing an
215.28income tax subtraction for military pay equivalent to that allowed under Minnesota Statutes
215.292014, section 290.01, subdivision 19b, clause (11), now codified as Minnesota Statutes,
215.30section 290.0132, subdivision 11, for Minnesota residents who serve full time in the armed
215.31forces of the United States.
215.32    Subd. 4. Other purpose statements. The purpose of the tax expenditure under Minnesota
215.33Statutes, section 291.005, subdivision 1, clause (8), subclause (iii), deeming certain qualified
216.1art on loan to Minnesota nonprofit entities as property with a situs outside Minnesota under
216.2the estate tax is intended to prevent the Minnesota estate tax from discouraging nonresident
216.3owners of art from loaning it to Minnesota nonprofit museums.

216.4    Sec. 16. APPROPRIATION; TAX EXPENDITURE REVIEW.
216.5(a) $36,000 in fiscal year 2022 and $766,000 in fiscal year 2023 are appropriated from
216.6the general fund to the Legislative Coordinating Commission for the Tax Expenditure
216.7Review Commission under Minnesota Statutes, section 3.8855. The base for this
216.8appropriation is $745,000 in fiscal year 2024 and $796,000 in fiscal year 2025.
216.9(b) $148,000 in fiscal year 2023 is appropriated from the general fund to the commissioner
216.10of revenue to provide research support to the Tax Expenditure Review Commission under
216.11Minnesota Statutes, section 3.8855.


216.14    Section 1. [16A.067] TAXPAYER RECEIPT.
216.15(a) The commissioner, in consultation with the commissioner of revenue, must develop
216.16and publish on the Department of Management and Budget's website an interactive taxpayer
216.17receipt in accordance with this section. The receipt must describe the share of state general
216.18fund expenditures represented by major expenditure categories in the most recent fiscal
216.19year for which data is available. The receipt must show the approximate allocation of motor
216.20vehicle fuel taxes among eligible transportation purposes.
216.21(b) For each expenditure category, the receipt must include select data on the performance
216.22goals and outcomes for the category, based on the goals and outcomes data required under
216.23section 16A.10, subdivision 1b.
216.24(c) The website must allow a user to input an income amount, and must estimate the
216.25amount of major state taxes paid by the user. The website must allocate the user's estimated
216.26state tax liability to each major expenditure category based on the category's percentage
216.27share of total state general fund spending. For the purposes of this section, "major state
216.28taxes" means income, sales, alcohol, tobacco, and motor vehicle fuels taxes.
216.29(d) Using the income amount entered by the user, the website must estimate the amount
216.30of income and direct sales taxes paid based upon the taxpayer's income. The website must
216.31allow a user to indicate whether the user used tobacco, consumed alcohol, or purchased
217.1motor vehicle fuel in the previous year, and provide a corresponding estimate of the cigarette,
217.2alcohol, and motor vehicle fuel taxes paid by the user.
217.3(e) The commissioner, in consultation with the commissioner of revenue, must update
217.4the receipt by December 31 of each year, and must annually promote to the public the
217.5availability of the website.

217.6    Sec. 2. Minnesota Statutes 2020, section 16A.152, subdivision 2, is amended to read:
217.7    Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general fund
217.8revenues and expenditures, the commissioner of management and budget determines that
217.9there will be a positive unrestricted budgetary general fund balance at the close of the
217.10biennium, the commissioner of management and budget must allocate money to the following
217.11accounts and purposes in priority order:
217.12    (1) the cash flow account established in subdivision 1 until that account reaches
217.13$350,000,000;
217.14    (2) the budget reserve account established in subdivision 1a until that account reaches
217.15$1,596,522,000;
217.16    (3) the amount necessary to increase the aid payment schedule for school district aids
217.17and credits payments in section 127A.45 to not more than 90 percent rounded to the nearest
217.18tenth of a percent without exceeding the amount available and with any remaining funds
217.19deposited in the budget reserve;
217.20    (4) the amount necessary to restore all or a portion of the net aid reductions under section
217.21127A.441 and to reduce the property tax revenue recognition shift under section 123B.75,
217.22subdivision 5, by the same amount;
217.23    (5) the clean water fund established in section 114D.50 until $22,000,000 has been
217.24transferred into the fund; and
217.25(6) (5) the amount necessary to increase the Minnesota 21st century fund by not more
217.26than the difference between $5,000,000 and the sum of the amounts credited and canceled
217.27to it in the previous 12 months under Laws 2020, chapter 71, article 1, section 11, until the
217.28sum of all transfers under this section and all amounts credited or canceled under Laws
217.292020, chapter 71, article 1, section 11, equals $20,000,000.; and
217.30(6) for a forecast in November only, the amount necessary to reduce the percentage of
217.31accelerated June liability tax payments required under sections 289A.20, subdivision 4,
217.32paragraph (b); 297F.09, subdivision 10; and 297G.09, subdivision 9, until the percentage
218.1equals zero, rounded to the nearest tenth of a percent with any remaining funds deposited
218.2in the budget reserve.By March 15 following the November forecast, the commissioner
218.3must provide the commissioner of revenue with the percentage of accelerated June liability
218.4owed based on the reduction required by this clause. By April 15 each year, the commissioner
218.5of revenue must certify that percentage to qualifying vendors and distributors.
218.6    (b) The amounts necessary to meet the requirements of this section are appropriated
218.7from the general fund within two weeks after the forecast is released or, in the case of
218.8transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
218.9schedules otherwise established in statute.
218.10    (c) The commissioner of management and budget shall certify the total dollar amount
218.11of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education.
218.12The commissioner of education shall increase the aid payment percentage and reduce the
218.13property tax shift percentage by these amounts and apply those reductions to the current
218.14fiscal year and thereafter.
218.15    (d) Paragraph (a), clause (5), expires after the entire amount of the transfer has been
218.16made.
218.17EFFECTIVE DATE.This section is effective July 1, 2021.

218.18    Sec. 3. Minnesota Statutes 2020, section 270A.03, subdivision 2, is amended to read:
218.19    Subd. 2. Claimant agency. "Claimant agency" means any state agency, as defined by
218.20section 14.02, subdivision 2, the regents of the University of Minnesota, any district court
218.21of the state, any county, any statutory or home rule charter city, including a city that is
218.22presenting a claim for a municipal hospital or a public library or a municipal ambulance
218.23service, a hospital district, a private nonprofit hospital that leases its building from the county
218.24or city in which it is located, any ambulance service licensed under chapter 144E, any public
218.25agency responsible for child support enforcement, any public agency responsible for the
218.26collection of court-ordered restitution, and any public agency established by general or
218.27special law that is responsible for the administration of a low-income housing program.
218.28EFFECTIVE DATE.This section is effective the day following final enactment.

218.29    Sec. 4. Minnesota Statutes 2020, section 289A.08, is amended by adding a subdivision to
218.30read:
218.31    Subd. 18. Taxpayer receipt. (a) The commissioner must offer all individual income
218.32taxpayers the opportunity to elect to receive information about a taxpayer receipt via e-mail
219.1or United States mail. In the manner selected by the taxpayer, the commissioner must provide
219.2the taxpayer with information about how to access the taxpayer receipt website established
219.3under section 16A.067. The commissioner must allow a taxpayer to elect not to receive
219.4information about the receipt.
219.5(b) Both the long and short forms described in subdivision 13 must include the
219.6opportunity to elect to receive information about the receipt.
219.7EFFECTIVE DATE.This section is effective for taxable years beginning after December
219.831, 2020.

219.9    Sec. 5. Minnesota Statutes 2020, section 289A.20, subdivision 4, is amended to read:
219.10    Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and payable
219.11to the commissioner monthly on or before the 20th day of the month following the month
219.12in which the taxable event occurred, or following another reporting period as the
219.13commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph (f)
219.14or (g), except that use taxes due on an annual use tax return as provided under section
219.15289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.
219.16    (b) A vendor having a liability of $250,000 or more during a fiscal year ending June 30
219.17must remit the June liability for the next year in the following manner:
219.18    (1) Two business days before June 30 of calendar year 2020 and 2021, the vendor must
219.19remit 87.5 percent of the estimated June liability to the commissioner. Two business days
219.20before June 30 of calendar year 2022 and thereafter, the vendor must remit 84.5 percent, or
219.21a reduced percentage as certified by the commissioner under section 16A.152, subdivision
219.222, paragraph (a), clause (6), of the estimated June liability to the commissioner.
219.23    (2) On or before August 20 of the year, the vendor must pay any additional amount of
219.24tax not remitted in June.
219.25    (c) A vendor having a liability of:
219.26    (1) $10,000 or more, but less than $250,000, during a fiscal year ending June 30, 2013,
219.27and fiscal years thereafter, must remit by electronic means all liabilities on returns due for
219.28periods beginning in all subsequent calendar years on or before the 20th day of the month
219.29following the month in which the taxable event occurred, or on or before the 20th day of
219.30the month following the month in which the sale is reported under section 289A.18,
219.31subdivision 4; or
220.1(2) $250,000 or more, during a fiscal year ending June 30, 2013, and fiscal years
220.2thereafter, must remit by electronic means all liabilities in the manner provided in paragraph
220.3(a) on returns due for periods beginning in the subsequent calendar year, except for 90
220.4percent of the estimated June liability, which is due two business days before June 30. The
220.5remaining amount of the June liability is due on August 20.
220.6(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's religious
220.7beliefs from paying electronically shall be allowed to remit the payment by mail. The filer
220.8must notify the commissioner of revenue of the intent to pay by mail before doing so on a
220.9form prescribed by the commissioner. No extra fee may be charged to a person making
220.10payment by mail under this paragraph. The payment must be postmarked at least two business
220.11days before the due date for making the payment in order to be considered paid on a timely
220.12basis.
220.13(e) Paragraph (b) expires after the percentage of estimated payment is reduced to zero
220.14in accordance with section 16A.152, subdivision 2, paragraph (a), clause (6).
220.15EFFECTIVE DATE.This section is effective for estimate payments required to be
220.16made after July 1, 2021.

220.17    Sec. 6. Minnesota Statutes 2020, section 289A.60, subdivision 15, is amended to read:
220.18    Subd. 15. Accelerated payment of June sales tax liability; penalty for
220.19underpayment. (a) For payments made after December 31, 2019 and before December 31,
220.202021, if a vendor is required by law to submit an estimation of June sales tax liabilities and
220.2187.5 percent payment by a certain date, the vendor shall pay a penalty equal to ten percent
220.22of the amount of actual June liability required to be paid in June less the amount remitted
220.23in June. The penalty must not be imposed, however, if the amount remitted in June equals
220.24the lesser of 87.5 percent of the preceding May's liability or 87.5 percent of the average
220.25monthly liability for the previous calendar year.
220.26    (b) For payments made after December 31, 2021, the penalty must not be imposed if
220.27the amount remitted in June equals the lesser of 84.5 percent, or a reduced percentage as
220.28certified by the commissioner under section 16A.152, subdivision 2, paragraph (a), clause
220.29(6), of the preceding May's liability or 84.5 percent of the average monthly liability for the
220.30previous calendar year.
220.31(c) This subdivision expires after the percentage of estimated payment is reduced to zero
220.32in accordance with section 16A.152, subdivision 2, paragraph (a), clause (6).
221.1EFFECTIVE DATE.This section is effective for estimate payments required to be
221.2made after July 1, 2021.

221.3    Sec. 7. Minnesota Statutes 2020, section 290A.04, subdivision 2, is amended to read:
221.4    Subd. 2. Homeowners; homestead credit refund. A claimant whose property taxes
221.5payable are in excess of the percentage of the household income stated below shall pay an
221.6amount equal to the percent of income shown for the appropriate household income level
221.7along with the percent to be paid by the claimant of the remaining amount of property taxes
221.8payable. The state refund equals the amount of property taxes payable that remain, up to
221.9the state refund amount shown below.

221.10 221.11 221.12	Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
221.13	$0 to 1,739	1.0 percent	15 percent	$	2,770
221.14	1,740 to 3,459	1.1 percent	15 percent	$	2,770
221.15	3,460 to 5,239	1.2 percent	15 percent	$	2,770
221.16	5,240 to 6,989	1.3 percent	20 percent	$	2,770
221.17	6,990 to 8,719	1.4 percent	20 percent	$	2,770
221.18	8,720 to 12,219	1.5 percent	20 percent	$	2,770
221.19	12,220 to 13,949	1.6 percent	20 percent	$	2,770
221.20	13,950 to 15,709	1.7 percent	20 percent	$	2,770
221.21	15,710 to 17,449	1.8 percent	20 percent	$	2,770
221.22	17,450 to 19,179	1.9 percent	25 percent	$	2,770
221.23	19,180 to 24,429	2.0 percent	25 percent	$	2,770
221.24	24,430 to 26,169	2.0 percent	30 percent	$	2,770
221.25	26,170 to 29,669	2.0 percent	30 percent	$	2,770
221.26	29,670 to 41,859	2.0 percent	35 percent	$	2,770
221.27	41,860 to 61,049	2.0 percent	35 percent	$	2,240
221.28	61,050 to 69,769	2.0 percent	40 percent	$	1,960
221.29	69,770 to 78,499	2.1 percent	40 percent	$	1,620
221.30	78,500 to 87,219	2.2 percent	40 percent	$	1,450
221.31	87,220 to 95,939	2.3 percent	40 percent	$	1,270
221.32	95,940 to 101,179	2.4 percent	45 percent	$	1,070
221.33	101,180 to 104,689	2.5 percent	45 percent	$	890
221.34	104,690 to 108,919	2.5 percent	50 percent	$	730
221.35	108,920 to 113,149	2.5 percent	50 percent	$	540

222.1 222.2 222.3	Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
222.4	$0 to 1,820	1.0 percent	15 percent	$	3,150
222.5	1,820 to 3,630	1.1 percent	15 percent	$	3,150
222.6	3,630 to 5,490	1.2 percent	15 percent	$	3,150
222.7	5,490 to 7,330	1.3 percent	20 percent	$	3,150
222.8	7,330 to 9,140	1.4 percent	20 percent	$	3,150
222.9	9,140 to 12,810	1.5 percent	20 percent	$	3,150
222.10	12,810 to 14,630	1.6 percent	20 percent	$	3,150
222.11	14,630 to 16,470	1.7 percent	20 percent	$	3,150
222.12	16,470 to 18,300	1.8 percent	20 percent	$	3,150
222.13	18,300 to 20,110	1.9 percent	25 percent	$	3,150
222.14	20,110 to 25,620	2.0 percent	25 percent	$	3,150
222.15	25,620 to 27,440	2.0 percent	30 percent	$	3,150
222.16	27,440 to 31,110	2.0 percent	30 percent	$	3,150
222.17	31,110 to 43,890	2.0 percent	35 percent	$	3,150
222.18	43,890 to 64,020	2.0 percent	35 percent	$	2,600
222.19	64,020 to 73,160	2.0 percent	40 percent	$	2,310
222.20	73,160 to 82,320	2.1 percent	40 percent	$	1,950
222.21	82,320 to 91,460	2.2 percent	40 percent	$	1,770
222.22	91,460 to 100,600	2.3 percent	40 percent	$	1,580
222.23	100,600 to 106,100	2.4 percent	45 percent	$	1,320
222.24	106,100 to 109,780	2.5 percent	45 percent	$	1,080
222.25	109,780 to 114,210	2.5 percent	50 percent	$	870
222.26	114,210 to 118,650	2.5 percent	50 percent	$	620

222.27    The payment made to a claimant shall be the amount of the state refund calculated under
222.28this subdivision. No payment is allowed if the claimant's household income is $113,150
222.29$118,650 or more.
222.30EFFECTIVE DATE.This section is effective for refunds based on property taxes
222.31payable after December 31, 2021.

222.32    Sec. 8. Minnesota Statutes 2020, section 290A.04, subdivision 2a, is amended to read:
222.33    Subd. 2a. Renters. A claimant whose rent constituting property taxes exceeds the
222.34percentage of the household income stated below must pay an amount equal to the percent
222.35of income shown for the appropriate household income level along with the percent to be
222.36paid by the claimant of the remaining amount of rent constituting property taxes. The state
223.1refund equals the amount of rent constituting property taxes that remain, up to the maximum
223.2state refund amount shown below.

223.3 223.4 223.5	Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
223.6	$0 to 5,269	1.0 percent	5 percent	$	2,150
223.7	5,270 to 6,999	1.0 percent	10 percent	$	2,150
223.8	7,000 to 8,749	1.1 percent	10 percent	$	2,090
223.9	8,750 to 12,269	1.2 percent	10 percent	$	2,040
223.10	12,270 to 15,779	1.3 percent	15 percent	$	1,980
223.11	15,780 to 17,519	1.4 percent	15 percent	$	1,930
223.12	17,520 to 19,259	1.4 percent	20 percent	$	1,880
223.13	19,260 to 22,779	1.5 percent	20 percent	$	1,820
223.14	22,780 to 24,529	1.6 percent	20 percent	$	1,770
223.15	24,530 to 26,279	1.7 percent	25 percent	$	1,770
223.16	26,280 to 29,789	1.8 percent	25 percent	$	1,770
223.17	29,790 to 31,529	1.9 percent	30 percent	$	1,770
223.18	31,530 to 36,789	2.0 percent	30 percent	$	1,770
223.19	36,790 to 42,039	2.0 percent	35 percent	$	1,770
223.20	42,040 to 49,059	2.0 percent	40 percent	$	1,770
223.21	49,060 to 50,799	2.0 percent	45 percent	$	1,610
223.22	50,800 to 52,559	2.0 percent	45 percent	$	1,450
223.23	52,560 to 54,319	2.0 percent	45 percent	$	1,230
223.24	54,320 to 56,059	2.0 percent	50 percent	$	1,070
223.25	56,060 to 57,819	2.0 percent	50 percent	$	970
223.26	57,820 to 59,569	2.0 percent	50 percent	$	540
223.27	59,570 to 61,319	2.0 percent	50 percent	$	210

223.28 223.29 223.30	Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
223.31	$0 to 5,530	1.0 percent	5 percent	$	2,250
223.32	5,530 to 7,340	1.0 percent	5 percent	$	2,250
223.33	7,340 to 9,180	1.1 percent	5 percent	$	2,190
223.34	9,180 to 12,870	1.2 percent	5 percent	$	2,140
223.35	12,870 to 16,550	1.3 percent	10 percent	$	2,080
223.36	16,550 to 18,370	1.4 percent	10 percent	$	2,020
223.37	18,370 to 20,200	1.4 percent	15 percent	$	1,970
223.38	20,200 to 23,890	1.5 percent	15 percent	$	1,910
224.1	23,890 to 25,720	1.6 percent	15 percent	$	1,860
224.2	25,720 to 27,560	1.7 percent	20 percent	$	1,860
224.3	27,560 to 31,240	1.8 percent	20 percent	$	1,860
224.4	31,240 to 33,060	1.9 percent	25 percent	$	1,860
224.5	33,060 to 38,580	2.0 percent	25 percent	$	1,860
224.6	38,580 to 44,080	2.0 percent	30 percent	$	1,860
224.7	44,080 to 51,440	2.0 percent	30 percent	$	1,860
224.8	51,440 to 53,270	2.0 percent	30 percent	$	1,690
224.9	53,270 to 55,100	2.0 percent	30 percent	$	1,520
224.10	55,100 to 56,960	2.0 percent	30 percent	$	1,290
224.11	56,960 to 58,780	2.0 percent	35 percent	$	1,120
224.12	58,780 to 60,630	2.0 percent	35 percent	$	1,020
224.13	60,630 to 62,470	2.0 percent	35 percent	$	570
224.14	62,470 to 64,300	2.0 percent	35 percent	$	220

224.15    The payment made to a claimant is the amount of the state refund calculated under this
224.16subdivision. No payment is allowed if the claimant's household income is $61,320 $64,300
224.17or more.
224.18EFFECTIVE DATE.This section is effective for refunds based on rent paid after
224.19December 31, 2020.

224.20    Sec. 9. Minnesota Statutes 2020, section 297E.021, subdivision 4, is amended to read:
224.21    Subd. 4. Appropriation; general reserve account. To the extent the commissioner
224.22determines that revenues are available under subdivision 3 for the fiscal year, those amounts
224.23are appropriated from the general fund for deposit in a general reserve account established
224.24by order of the commissioner of management and budget until the amount in the reserve is
224.25equal to $100,000,000. Amounts in this reserve are appropriated as necessary for application
224.26against any shortfall in the amounts deposited to the general fund under section 297A.994
224.27or, after consultation with the Legislative Commission on Planning and Fiscal Policy,
224.28amounts in this reserve are appropriated to the commissioner of management and budget
224.29for other uses related to the stadium authorized under section 473J.03, subdivision 8, that
224.30the commissioner deems financially prudent including but not limited to reimbursements
224.31for capital and operating costs relating to the stadium, refundings, and prepayment of debt.
224.32In no event, shall available revenues be pledged, nor shall the appropriations of available
224.33revenues made by this section constitute a pledge of available revenues as security for the
224.34prepayment of principal and interest on the appropriation bonds under section 16A.965.

225.1    Sec. 10. Minnesota Statutes 2020, section 297F.09, subdivision 10, is amended to read:
225.2    Subd. 10. Accelerated tax payment; cigarette or tobacco products distributor. A
225.3cigarette or tobacco products distributor having a liability of $250,000 or more during a
225.4fiscal year ending June 30, shall remit the June liability for the next year in the following
225.5manner:
225.6    (a) Two business days before June 30 of calendar years 2020 and year 2021, the
225.7distributor shall remit the actual May liability and 87.5 percent of the estimated June liability
225.8to the commissioner and file the return in the form and manner prescribed by the
225.9commissioner. Two business days before June 30 of calendar year 2022 and each calendar
225.10year thereafter, the distributor must remit the actual May liability and 84.5 percent, or a
225.11reduced percentage as certified by the commissioner under section 16A.152, subdivision
225.122, paragraph (a), clause (6), of the estimated June liability to the commissioner and file the
225.13return in the form and manner prescribed by the commissioner.
225.14    (b) On or before August 18 of the year, the distributor shall submit a return showing the
225.15actual June liability and pay any additional amount of tax not remitted in June. A penalty
225.16is imposed equal to ten percent of the amount of June liability required to be paid in June,
225.17less the amount remitted in June. However, the penalty is not imposed if the amount remitted
225.18in June equals the lesser of:
225.19    (1) for calendar year 2021, 87.5 percent of the actual June liability for the that calendar
225.20year 2020 and 2021 June liabilities and 84.5 of the actual June liability for June 2022 and
225.21thereafter or 87.5 percent of the May liability for that calendar year; or
225.22    (2) 87.5 percent of the preceding May liability for the calendar year 2020 and 2021 June
225.23liabilities and 84.5 percent of the preceding May liability for June 2022 and thereafter. for
225.24calendar year 2022 and each calendar year thereafter, 84.5 percent, or a reduced percentage
225.25as certified by the commissioner under section 16A.152, subdivision 2, paragraph (a), clause
225.26(6), of the actual June liability for that calendar year or 84.5 percent, or a reduced percentage
225.27as certified by the commissioner under section 16A.152, subdivision 2, paragraph (a), clause
225.28(6), of the May liability for that calendar year.
225.29(c) For calendar year 2022 and thereafter, the percent of the estimated June liability the
225.30vendor must remit by two business days before June 30 is 84.5 percent. This subdivision
225.31expires after the percentage of estimated payment is reduced to zero in accordance with
225.32section 16A.152, subdivision 2, paragraph (a), clause (6).
225.33EFFECTIVE DATE.This section is effective for estimate payments required to be
225.34made after July 1, 2021.

226.1    Sec. 11. Minnesota Statutes 2020, section 297F.10, subdivision 1, is amended to read:
226.2    Subdivision 1. Tax and use tax on cigarettes. Revenue received from cigarette taxes,
226.3as well as related penalties, interest, license fees, and miscellaneous sources of revenue
226.4shall be deposited by the commissioner in the state treasury and credited as follows:
226.5(1) $22,250,000 each year must be credited to the Academic Health Center special
226.6revenue fund hereby created and is annually appropriated to the Board of Regents at the
226.7University of Minnesota for Academic Health Center funding at the University of Minnesota;
226.8and
226.9(2) $3,937,000 each year must be credited to the medical education and research costs
226.10account hereby created in the special revenue fund and is annually appropriated to the
226.11commissioner of health for distribution under section 62J.692, subdivision 4; and
226.12(3) $15,000,000 each year must be credited to the tobacco use prevention and cessation
226.13account hereby created in the special revenue fund and is annually appropriated to the
226.14commissioner of health for tobacco use prevention and cessation projects consistent with
226.15the duties specified in section 144.392; a public information program under section 144.393;
226.16the development of health promotion and health education materials about tobacco use
226.17prevention and cessation; tobacco use prevention activities under section 144.396; and
226.18statewide tobacco cessation services under section 144.397. In activities funded under this
226.19clause, the commissioner of health must prioritize preventing youth use of commercial
226.20tobacco and electronic delivery devices, must promote racial and health equity, and must
226.21use strategies that are evidence-based or based on promising practices. For purposes of this
226.22clause, "tobacco" and "electronic delivery device" have the meanings given in section
226.23609.685, subdivision 1. This clause expires after the deposit made in fiscal year 2029; and
226.24(3) (4) the balance of the revenues derived from taxes, penalties, and interest (under this
226.25chapter) and from license fees and miscellaneous sources of revenue shall be credited to
226.26the general fund.
226.27EFFECTIVE DATE.This section is effective for revenue received after June 30, 2021.

226.28    Sec. 12. Minnesota Statutes 2020, section 297G.09, subdivision 9, is amended to read:
226.29    Subd. 9. Accelerated tax payment; penalty. A person liable for tax under this chapter
226.30having a liability of $250,000 or more during a fiscal year ending June 30, shall remit the
226.31June liability for the next year in the following manner:
226.32    (a) Two business days before June 30 of calendar years 2020 and year 2021, the taxpayer
226.33shall remit the actual May liability and 87.5 percent of the estimated June liability to the
227.1commissioner and file the return in the form and manner prescribed by the commissioner.
227.2Two business days before June 30 of calendar year 2022 and each calendar year thereafter,
227.3the distributor must remit the actual May liability and 84.5 percent, or a reduced percentage
227.4as certified by the commissioner under section 16A.152, subdivision 2, paragraph (a), clause
227.5(6), of the estimated June liability to the commissioner and file the return in the form and
227.6manner prescribed by the commissioner.
227.7    (b) On or before August 18 of the year, the taxpayer shall submit a return showing the
227.8actual June liability and pay any additional amount of tax not remitted in June. A penalty
227.9is imposed equal to ten percent of the amount of June liability required to be paid in June
227.10less the amount remitted in June. However, the penalty is not imposed if the amount remitted
227.11in June equals the lesser of:
227.12    (1) for calendar year 2021, 87.5 percent of the actual June liability for the that calendar
227.13year 2020 and 2021 June liabilities and 84.5 percent of the actual June liability for June
227.142022 and thereafter or 87.5 percent of the May liability for that calendar year; or
227.15    (2) 87.5 percent of the preceding May liability for the calendar year 2020 and 2021 June
227.16liabilities and 84.5 percent of the preceding May liability for June 2022 and thereafter. for
227.17calendar year 2022 and thereafter, 84.5 percent, or a reduced percentage as certified by the
227.18commissioner under section 16A.152, subdivision 2, paragraph (a), clause (6), of the actual
227.19June liability for that calendar year or 84.5 percent, or a reduced percentage as certified by
227.20the commissioner under section 16A.152, subdivision 2, paragraph (a), clause (6), of the
227.21May liability for that calendar year.
227.22(c) For calendar year 2022 and thereafter, the percent of the estimated June liability the
227.23vendor must remit by two business days before June 30 is 84.5 percent. This subdivision
227.24expires after the percentage of estimated payment is reduced to zero in accordance with
227.25section 16A.152, subdivision 2, paragraph (a), clause (6).
227.26EFFECTIVE DATE.This section is effective for estimate payments required to be
227.27made after July 1, 2021.

227.28    Sec. 13. [428B.01] DEFINITIONS.
227.29    Subdivision 1. Applicability. As used in sections 428B.01 to 428B.09, the terms in this
227.30section have the meanings given them.
227.31    Subd. 2. Activity. "Activity" means but is not limited to all of the following:
227.32(1) promotion of tourism within the district;
228.1(2) promotion of business activity, including but not limited to tourism, of businesses
228.2subject to the service charge within the tourism improvement district;
228.3(3) marketing, sales, and economic development; and
228.4(4) other services provided for the purpose of conferring benefits upon businesses located
228.5in the tourism improvement district that are subject to the tourism improvement district
228.6service charge.
228.7    Subd. 3. Business. "Business" means the type or class of lodging business that is
228.8described in the municipality's ordinance, which benefits from district activities, adopted
228.9under section 428B.02.
228.10    Subd. 4. Business owner. "Business owner" means a person recognized by a municipality
228.11as the owner of a business.
228.12    Subd. 5. City. "City" means a home rule charter or statutory city.
228.13    Subd. 6. Clerk. "Clerk" means the chief clerical officer of the municipality.
228.14    Subd. 7. Governing body. "Governing body" means, with respect to a city, a city council
228.15or other governing body of a city. With respect to a town, governing body means a town
228.16board or other governing body of a town. With respect to a county, governing body means
228.17a board of commissioners or other governing body of a county.
228.18    Subd. 8. Impacted business owners. "Impacted business owners" means a majority of
228.19business owners located within a tourism improvement district.
228.20    Subd. 9. Municipality. "Municipality" means a county, city, or town.
228.21    Subd. 10. Tourism improvement association. "Tourism improvement association"
228.22means a new or existing and tax-exempt nonprofit corporation, entity, or agency charged
228.23with promoting tourism within the tourism improvement district and that is under contract
228.24with the municipality to administer the tourism improvement district and implement the
228.25activities and improvements listed in the municipality's ordinance.
228.26    Subd. 11. Tourism improvement district. "Tourism improvement district" means a
228.27tourism improvement district established under this chapter.
228.28EFFECTIVE DATE.This section is effective the day following final enactment.

229.1    Sec. 14. [428B.02] ESTABLISHMENT OF TOURISM IMPROVEMENT DISTRICT.
229.2    Subdivision 1. Ordinance. (a) Upon a petition by impacted business owners, a governing
229.3body of a municipality may adopt an ordinance establishing a tourism improvement district
229.4after holding a public hearing on the district. The ordinance must include:
229.5(1) a map that identifies the tourism improvement district boundaries in sufficient detail
229.6to allow a business owner to reasonably determine whether a business is located within the
229.7tourism improvement district boundaries;
229.8(2) the name of the tourism improvement association designated to administer the tourism
229.9improvement district and implement the approved activities and improvements;
229.10(3) a list of the proposed activities and improvements in the tourism improvement district;
229.11(4) the time and manner of collecting the service charge and any interest and penalties
229.12for nonpayment;
229.13(5) a definition describing the type or class of businesses to be included in the tourism
229.14improvement district and subject to the service charge;
229.15(6) the rate, method, and basis of the service charge for the district, including the portion
229.16dedicated to covering expenses listed in subdivision 4, paragraph (b); and
229.17(7) the number of years the service charge will be in effect.
229.18(b) If the boundaries of a proposed tourism improvement district overlap with the
229.19boundaries of an existing special service district, the tourism improvement district ordinance
229.20may list measures to avoid any impediments on the ability of the special service district to
229.21continue to provide its services to benefit its property owners.
229.22    Subd. 2. Notice. A municipality must provide notice of the hearing by publication in at
229.23least two issues of the official newspaper of the municipality. The two publications must
229.24be two weeks apart and the municipality must hold the hearing at least three days after the
229.25last publication. Not less than ten days before the hearing, the municipality must mail notice
229.26to the business owner of each business subject to the proposed service charge by the tourism
229.27improvement district. The notice must include:
229.28(1) a map showing the boundaries of the proposed district;
229.29(2) the time and place of the public hearing;
229.30(3) a statement that all interested persons will be given an opportunity to be heard at the
229.31hearing regarding the proposed service charge; and
230.1(4) a brief description of the proposed activities, improvements, and service charge.
230.2    Subd. 3. Business owner determination. A business must provide ownership information
230.3to the municipality. A municipality has no obligation to obtain other information regarding
230.4the ownership of businesses, and its determination of ownership shall be final for the purposes
230.5of this chapter. If this chapter requires the signature of a business owner, the signature of
230.6the authorized representative of a business owner is sufficient.
230.7    Subd. 4. Service charges; relationship to services. (a) A municipality may impose a
230.8service charge on a business pursuant to this chapter for the purpose of providing activities
230.9and improvements that will provide benefits to a business that is located within the tourism
230.10improvement district and subject to the tourism improvement district service charge. Each
230.11business paying a service charge within a district must benefit directly or indirectly from
230.12improvements provided by a tourism improvement association, provided, however, the
230.13business need not benefit equally. Service charges must be based on a percent of gross
230.14business revenue, a fixed dollar amount per transaction, or any other reasonable method
230.15based upon benefit and approved by the municipality.
230.16(b) Service charges may be used to cover the costs of collections, as well as other
230.17administrative costs associated with operating, forming, or maintaining the district.
230.18    Subd. 5. Public hearing. At the public hearing regarding the adoption of the ordinance
230.19establishing a tourism improvement district, business owners and persons affected by the
230.20proposed district may testify on issues relevant to the proposed district. The hearing may
230.21be adjourned from time to time. The ordinance establishing the district may be adopted at
230.22any time within six months after the date of the conclusion of the hearing by a vote of the
230.23majority of the governing body of the municipality.
230.24    Subd. 6. Appeal to district court. Within 45 days after the adoption of the ordinance
230.25establishing a tourism improvement district, a person aggrieved, who is not precluded by
230.26failure to object before or at the public hearing, may appeal to the district court by serving
230.27a notice on the clerk of the municipality or governing body. The validity of the tourism
230.28improvement district and the service charge imposed under this chapter shall not be contested
230.29in an action or proceeding unless the action or proceeding is commenced within 45 days
230.30after the adoption of the ordinance establishing a tourism improvement district. The petitioner
230.31must file notice with the court administrator of the district court within ten days after its
230.32service. The clerk of the municipality must provide the petitioner with a certified copy of
230.33the findings and determination of the governing body. The court may affirm the action
230.34objected to or, if the petitioner's objections have merit, modify or cancel it. If the petitioner
231.1does not prevail on the appeal, the costs incurred shall be taxed to the petitioner by the court
231.2and judgment entered for them. All objections shall be deemed waived unless presented on
231.3appeal.
231.4EFFECTIVE DATE.This section is effective the day following final enactment.

231.5    Sec. 15. [428B.03] SERVICE CHARGE AUTHORITY; NOTICE; HEARING
231.6REQUIREMENT.
231.7    Subdivision 1. Authority. A municipality may impose service charges authorized under
231.8section 428B.02, subdivision 4, to finance an activity or improvement in the tourism
231.9improvement district that is provided by the municipality if the activity or improvement is
231.10provided in the tourism improvement district at an increased level of service. The service
231.11charges may be imposed in the amount needed to pay for the increased level of service
231.12provided by the activity or improvement.
231.13    Subd. 2. Annual hearing requirement; notice. Beginning one year after the
231.14establishment of the tourism improvement district, the municipality must hold an annual
231.15hearing regarding continuation of the service charges in the tourism improvement district.
231.16The municipality must provide notice of the hearing by publication in the official newspaper
231.17at least seven days before the hearing. The municipality must mail notice of the hearing to
231.18business owners subject to the service charge at least seven days before the hearing. At the
231.19public hearing, a person affected by the proposed district may testify on issues relevant to
231.20the proposed district. Within six months of the public hearing, the municipality may adopt
231.21a resolution to continue imposing service charges within the district not exceeding the
231.22amount or rate expressed in the notice. For purposes of this section, the notice must include:
231.23(1) a map showing the boundaries of the district;
231.24(2) the time and place of the public hearing;
231.25(3) a statement that all interested persons will be given an opportunity to be heard at the
231.26hearing regarding the proposed service charge;
231.27(4) a brief description of the proposed activities and improvements;
231.28(5) the estimated annual amount of proposed expenditures for activities and
231.29improvements;
231.30(6) the rate of the service charge for the district during the year and the nature and
231.31character of the proposed activities and improvements for the district during the year in
231.32which service charges are collected;
232.1(7) the number of years the service charge will be in effect; and
232.2(8) a statement that the petition requirement of section 428B.07 has either been met or
232.3does not apply to the proposed service charge.
232.4EFFECTIVE DATE.This section is effective the day following final enactment.

232.5    Sec. 16. [428B.04] MODIFICATION OF ORDINANCE.
232.6    Subdivision 1. Adoption of ordinance; request for modification. Upon written request
232.7of the tourism improvement association, the governing body of a municipality may adopt
232.8an ordinance to modify the district after conducting a public hearing on the proposed
232.9modifications. If the modification includes a change to the rate, method, and basis of
232.10imposing the service charge or the expansion of the tourism improvement district's geographic
232.11boundaries, a petition as described in section 428B.07 must be submitted by impacted
232.12business owners to initiate proceedings for modification.
232.13    Subd. 2. Notice of modification. A municipality must provide notice of the hearing by
232.14publication in at least two issues of the municipality's official newspaper. The two
232.15publications must be two weeks apart and the municipality must hold a hearing at least three
232.16days after the last publication. Not less than ten days before the hearing, the municipality
232.17must mail notice to the business owner of each business subject to the service charge by
232.18the tourism improvement district. The notice must include:
232.19(1) a map showing the boundaries of the district;
232.20(2) the time and place of the public hearing;
232.21(3) a statement that all interested persons will be given an opportunity to be heard at the
232.22hearing regarding the proposed service charge; and
232.23(4) a brief description of the proposed modification to the ordinance.
232.24    Subd. 3. Hearing on modification. At the public hearing regarding modification to the
232.25ordinance, a person affected by the proposed modification may testify on issues relevant to
232.26the proposed modification. Within six months after the conclusion of the hearing, the
232.27municipality may adopt the ordinance modifying the district by a vote of the majority of
232.28the governing body in accordance with the request for modification by the tourism
232.29improvement association and as described in the notice.
232.30    Subd. 4. Objection. If the modification of the ordinance includes the expansion of the
232.31tourism improvement district's geographic boundaries, the ordinance modifying the district
232.32may be adopted after following the notice and veto requirements in section 428B.08;
233.1however, a successful objection will be determined based on a majority of business owners
233.2who will pay the service charge in the expanded area of the district. For all other
233.3modifications, the ordinance modifying the district may be adopted following the notice
233.4and veto requirements in section 428B.08.
233.5EFFECTIVE DATE.This section is effective the day following final enactment.

233.6    Sec. 17. [428B.05] COLLECTION OF SERVICE CHARGES; PENALTIES.
233.7The service charges imposed under this chapter may be collected by the municipality,
233.8tourism improvement association, or other designated agency or entity. Collection of the
233.9service charges must be made at the time and in the manner set forth in the ordinance. The
233.10entity collecting the service charges may charge interest and penalties on delinquent payments
233.11for service charges imposed under this chapter as set forth in the municipality's ordinance.
233.12EFFECTIVE DATE.This section is effective the day following final enactment.

233.13    Sec. 18. [428B.06] TOURISM IMPROVEMENT ASSOCIATION.
233.14    Subdivision 1. Composition and duties. The tourism improvement association must
233.15be designated in the municipality's ordinance. The tourism improvement association shall
233.16appoint a governing board or committee composed of a majority of business owners who
233.17pay the tourism improvement district service charge, or the representatives of those business
233.18owners. The governing board or committee must manage the funds raised by the tourism
233.19improvement district and fulfill the obligations of the tourism improvement district. A
233.20tourism improvement association has full discretion to select the specific activities and
233.21improvements that are funded with tourism improvement district service charges within the
233.22authorized activities and improvements described in the ordinance.
233.23    Subd. 2. Annual report. The tourism improvement association must submit to the
233.24municipality an annual report for each year in which a service charge is imposed. The report
233.25must include a financial statement of revenue raised by the district. The municipality may
233.26also, as part of the enabling ordinance, require the submission of other relevant information
233.27related to the association.
233.28EFFECTIVE DATE.This section is effective the day following final enactment.

234.1    Sec. 19. [428B.07] PETITION REQUIRED.
234.2A municipality may not establish a tourism improvement district under section 428B.02
234.3unless impacted business owners file a petition requesting a public hearing on the proposed
234.4action with the clerk of the municipality.
234.5EFFECTIVE DATE.This section is effective the day following final enactment.

234.6    Sec. 20. [428B.08] VETO POWER OF OWNERS.
234.7    Subdivision 1. Notice of right to file objections. The effective date of an ordinance or
234.8resolution adopted under this chapter must be at least 45 days after it is adopted by the
234.9municipality. Within five days after the municipality adopts the ordinance or resolution,
234.10the municipality must mail a summary of the ordinance or resolution to each business owner
234.11subject to the service charge within the tourism improvement district in the same manner
234.12that notice is mailed under section 428B.02. The mailing must include a notice that business
234.13owners subject to the service charge have the right to veto, by a simple majority, the
234.14ordinance or resolution by filing the required number of objections with the clerk of the
234.15municipality before the effective date of the ordinance or resolution and include notice that
234.16a copy of the ordinance or resolution is available for public inspection with the clerk of the
234.17municipality.
234.18    Subd. 2. Requirements for veto. If impacted business owners file an objection to the
234.19ordinance or resolution before the effective date of the ordinance or resolution, the ordinance
234.20or resolution does not become effective.
234.21EFFECTIVE DATE.This section is effective the day following final enactment.

234.22    Sec. 21. [428B.09] DISESTABLISHMENT.
234.23    Subdivision 1. Procedure for disestablishment. An ordinance adopted under this chapter
234.24must provide a 30-day period each year in which business owners subject to the service
234.25charge may request disestablishment of the district. Beginning one year after establishment
234.26of the tourism improvement district, an annual 30-day period of disestablishment begins
234.27with the anniversary of the date of establishment. Upon submission of a petition from
234.28impacted business owners, the municipality may disestablish a tourism improvement district
234.29by adopting an ordinance after holding a public hearing on the disestablishment. Prior to
234.30the public hearing, the municipality must publish notice of the public hearing on
234.31disestablishment in at least two issues of the municipality's official newspaper. The two
234.32publications must be two weeks apart and the municipality must hold the hearing at least
235.1three days after the last publication. Not less than ten days before the hearing, the
235.2municipality must mail notice to the business owner of each business subject to the service
235.3charge. The notice must include:
235.4(1) the time and place of the public hearing;
235.5(2) a statement that all interested persons will be given an opportunity to be heard at the
235.6hearing regarding disestablishment;
235.7(3) the reason for disestablishment; and
235.8(4) a proposal to dispose of any assets acquired with the revenues of the service charge
235.9imposed under the tourism improvement district.
235.10    Subd. 2. Objection. An ordinance disestablishing the tourism improvement district
235.11becomes effective following the notice and veto requirements in section 428B.08.
235.12    Subd. 3. Refund to business owners. (a) Upon the disestablishment of a tourism
235.13improvement district, any remaining revenues derived from the service charge, or any
235.14revenues derived from the sale of assets acquired with the service charge revenues, shall
235.15be refunded to business owners located and operating within the tourism improvement
235.16district in which service charges were imposed by applying the same method and basis that
235.17was used to calculate the service charges levied in the fiscal year in which the district is
235.18disestablished.
235.19(b) If the disestablishment occurs before the service charge is imposed for the fiscal
235.20year, the method and basis that was used to calculate the service charge imposed in the
235.21immediate prior fiscal year shall be used to calculate the amount of a refund, if any.
235.22EFFECTIVE DATE.This section is effective the day following final enactment.

235.23    Sec. 22. [428B.10] COORDINATION OF DISTRICTS.
235.24If a county establishes a tourism improvement district in a city or town under this chapter,
235.25a city or town may not establish a tourism improvement district in the part of the city or
235.26town located in the county-established district. If a city or town establishes a tourism
235.27improvement district under this chapter, a county may not establish a tourism improvement
235.28district in the part of the city or town located in the city- or town-established district.
235.29EFFECTIVE DATE.This section is effective the day following final enactment.

236.1    Sec. 23. Minnesota Statutes 2020, section 462A.38, is amended to read:
236.2462A.38 WORKFORCE AND AFFORDABLE HOMEOWNERSHIP
236.3DEVELOPMENT PROGRAM.
236.4    Subdivision 1. Establishment. A workforce and affordable homeownership development
236.5program is established to award homeownership development grants and loans to cities,
236.6counties, Tribal governments, nonprofit organizations, cooperatives created under chapter
236.7308A or 308B, and community land trusts created for the purposes outlined in section
236.8462A.31, subdivision 1, for development of workforce and affordable homeownership
236.9projects. The purpose of the program is to increase the supply of workforce and affordable,
236.10owner-occupied multifamily or single-family housing throughout Minnesota.
236.11    Subd. 2. Use of funds. (a) Grant funds and loans awarded under this program may be
236.12used for:
236.13(1) development costs;
236.14(2) rehabilitation;
236.15(3) land development; and
236.16(4) residential housing, including storm shelters and related community facilities.
236.17(b) A project funded through the grant this program shall serve households that meet
236.18the income limits as provided in section 462A.33, subdivision 5, unless a project is intended
236.19for the purpose outlined in section 462A.02, subdivision 6.
236.20    Subd. 3. Application. The commissioner shall develop forms and procedures for soliciting
236.21and reviewing applications for grants and loans under this section. The commissioner shall
236.22consult with interested stakeholders when developing the guidelines and procedures for the
236.23program. In making grants and loans, the commissioner shall establish semiannual application
236.24deadlines in which grants and loans will be authorized from all or part of the available
236.25appropriations.
236.26    Subd. 4. Awarding grants and loans. Among comparable proposals, preference must
236.27be given to proposals that include contributions from nonstate resources for the greatest
236.28portion of the total development cost.
236.29    Subd. 5. Statewide program. The agency shall attempt to make grants and loans in
236.30approximately equal amounts to applicants outside and within the metropolitan area, as
236.31defined in section 473.121, subdivision 2.
237.1    Subd. 6. Report. Beginning January 15, 2018 2022, the commissioner must annually
237.2submit a report to the chairs and ranking minority members of the senate and house of
237.3representatives committees having jurisdiction over housing and workforce development
237.4specifying the projects that received grants and loans under this section and the specific
237.5purposes for which the grant or loan funds were used.
237.6    Subd. 7. Workforce and affordable homeownership development account. A
237.7workforce and affordable homeownership development account is established in the housing
237.8development fund. Money in the account, including interest, is appropriated to the
237.9commissioner of the Housing Finance Agency for the purposes of this section. The amount
237.10appropriated under this section must supplement traditional sources of funding for this
237.11purpose and must not be used as a substitute or to pay debt service on bonds.
237.12    Subd. 8. Deposits; funding amount. (a) In fiscal years 2022 to 2029, an amount equal
237.13to $15,000,000 of the state's portion of the proceeds derived from the mortgage registry tax
237.14imposed under section 287.035 and the deed tax imposed under section 287.21 is appropriated
237.15from the general fund to the commissioner of the Housing Finance Agency to transfer to
237.16the housing development fund for deposit into the workforce and affordable homeownership
237.17development account. The appropriation must be made annually by September 15.
237.18(b) All loan repayments received under this section are to be deposited into the workforce
237.19and affordable homeownership development account in the housing development fund.
237.20(c) This subdivision expires September 16, 2028.
237.21EFFECTIVE DATE.This section is effective July 1, 2021.

237.22    Sec. 24. 4D AFFORDABLE HOUSING PROGRAMS REPORT.
237.23(a) No later than January 15, 2022, the commissioner of revenue, in consultation with
237.24the Minnesota Housing Finance Agency, must produce a report on class 4d property, as
237.25defined in Minnesota Statutes, section 273.13, subdivision 25, and on local 4d affordable
237.26housing programs. The commissioner must provide a copy of the report to the chairs and
237.27ranking minority members of the legislative committees with jurisdiction over property
237.28taxation. The report must comply with the requirements of Minnesota Statutes, sections
237.293.195 and 3.197. The report must include the following to the extent available:
237.30(1) for properties classified in part or in whole as 4d qualifying under Minnesota Statutes,
237.31section 273.128, subdivision 1, clauses (1) to (4), with separate amounts given for properties
237.32under each clause:
238.1(i) the number of units classified as 4d in each property in the previous assessment year
238.2as reported by each county;
238.3(ii) the number of units not classified as 4d in each property in the previous assessment
238.4year;
238.5(iii) the property tax paid in 2021;
238.6(iv) the property tax reduction in 2021 resulting from the property being classified as
238.74d rather than 4a; and
238.8(v) the total number of 4d units in each of the last ten years; and
238.9(2) for properties classified in part or in whole as 4d qualifying under Minnesota Statutes,
238.10section 273.128, subdivision 1, clauses (1) to (4):
238.11(i) the percent change in each political subdivision's net tax capacity if the first-tier class
238.12rate of the 4d classification was reduced from 0.75 percent to 0.25 percent;
238.13(ii) the number of 4d properties located within tax increment financing districts, and the
238.14impact on increment generation in those districts as a result of these properties being
238.15classified as 4d rather than 4a;
238.16(iii) the impact that a 4d class rate reduction from 0.75 percent to 0.25 percent for the
238.17entire valuation would have on the property tax burden for homestead property;
238.18(iv) the total number of 4d units whose value qualifies for the second tier in each year
238.19since 2019;
238.20(v) the impact that a reduction of the 4d class rate from 0.75 percent to 0.25 percent for
238.21the entire valuation would have on property tax refunds received by renters and on property
238.22tax refunds received by homeowners in jurisdictions that contain 4d property; and
238.23(vi) a profile of income limits and area median incomes used in Minnesota by the United
238.24States Department of Housing and Urban Development to determine the eligibility for
238.25assisted housing programs.
238.26(b) Counties must report to the commissioner of revenue any data required by paragraph
238.27(a), clauses (1) and (2), by November 1, 2021.
238.28EFFECTIVE DATE.This section is effective the day following final enactment.

238.29    Sec. 25. BUDGET RESERVE REDUCTION.
238.30On July 1, 2021, the balance of the budget reserve account established in Minnesota
238.31Statutes, section 16A.152, subdivision 1a, is reduced by $150,000,000. This reduction is in
239.1addition to the reduction authorized in Laws 2019, First Special Session chapter 6, article
239.211, section 17.

239.3    Sec. 26. APPROPRIATIONS; FIRE REMEDIATION GRANTS.
239.4    Subdivision 1. City of Melrose. $643,729 in fiscal year 2022 is appropriated from the
239.5general fund to the commissioner of revenue for a grant to the city of Melrose to remediate
239.6the effects of fires in the city on September 8, 2016. This appropriation represents the
239.7amounts that lapsed by the terms of the appropriation in Laws 2017, First Special Session
239.8chapter 1, article 4, section 31. The commissioner of revenue must remit the funds to the
239.9city of Melrose by July 20, 2021. The city must use the funds to administer grants to public
239.10or private entities for use in accordance with subdivision 3.
239.11    Subd. 2. City of Alexandria. $120,000 in fiscal year 2022 is appropriated from the
239.12general fund to the commissioner of revenue for a grant to the city of Alexandria to remediate
239.13the effects of the fire in the city on February 25, 2020. The commissioner of revenue must
239.14remit the funds to the city of Alexandria by July 20, 2021. The city must use the funds to
239.15administer grants to public or private entities for use in accordance with subdivision 3.
239.16    Subd. 3. Allowed use. A grant recipient must use the money appropriated under this
239.17section for remediation costs, including disaster recovery, infrastructure, reimbursement
239.18for emergency personnel costs, reimbursement for equipment costs, and reimbursements
239.19for property tax abatements, incurred by public or private entities as a result of the fires.
239.20These appropriations are onetime and are available until June 30, 2023.
239.21EFFECTIVE DATE.This section is effective the day following final enactment.

239.22    Sec. 27. DEPARTMENT OF REVENUE FREE FILING REPORT.
239.23    Subdivision 1. Report required. (a) By February 15, 2022, the commissioner of revenue
239.24must provide a written report to the chairs and ranking minority members of the legislative
239.25committees with jurisdiction over taxes. The report must comply with the requirements of
239.26Minnesota Statutes, sections 3.195 and 3.197, and must also provide information on free
239.27electronic filing options for preparing and filing Minnesota individual income tax returns.
239.28(b) The commissioner must survey tax preparation software vendors for information on
239.29a free electronic preparation and filing option for taxpayers to file Minnesota individual
239.30income tax returns. The survey must request information from vendors that addresses the
239.31following concerns:
240.1(1) system development, capability, security, and costs for consumer-based tax filing
240.2software;
240.3(2) costs per return that would be charged to the state of Minnesota to provide an
240.4electronic individual income tax return preparation, submission, and payment remittance
240.5process;
240.6(3) providing customer service and issue resolution to taxpayers using the software;
240.7(4) providing and maintaining an appropriate link between the Department of Revenue
240.8and the Internal Revenue Service Modernized Electronic Filing Program;
240.9(5) ensuring that taxpayer return information is maintained and protected as required by
240.10Minnesota Statutes, chapters 13 and 270B, Internal Revenue Service Publication 1075, and
240.11any other applicable requirements; and
240.12(6) current availability of products for the free filing and submitting of both Minnesota
240.13and federal returns offered to customers and the income thresholds for using those products.
240.14(c) The report by the commissioner must include at a minimum:
240.15(1) a review of options that other states use for state electronic filing;
240.16(2) an assessment of taxpayer needs for electronic filing, including current filing practices;
240.17(3) an analysis of alternative options to provide free filing, such as tax credits, vendor
240.18incentives, or other benefits; and
240.19(4) an analysis of the Internal Revenue Service Free File Program usage.
240.20    Subd. 2. Appropriation. $175,000 in fiscal year 2022 is appropriated from the general
240.21fund to the commissioner of revenue for the free filing report required under this section.
240.22This is a onetime appropriation.

240.23    Sec. 28. APPROPRIATION; TAXPAYER RECEIPT.
240.24(a) $100,000 in fiscal year 2022 is appropriated from the general fund to the commissioner
240.25of management and budget to develop and publish the taxpayer receipt under Minnesota
240.26Statutes, section 16A.067. The base funding for this program is $47,000 in fiscal year 2023
240.27and thereafter.
240.28(b) $19,000 in fiscal year 2022 is appropriated from the general fund to the commissioner
240.29of revenue to coordinate with the commissioner of management and budget to provide
240.30information that meets the requirements of the taxpayer receipt under Minnesota Statutes,
240.31section 16A.067. The base funding is $8,000 in fiscal year 2023 and thereafter.


241.4    Section 1. Minnesota Statutes 2020, section 289A.08, subdivision 7, is amended to read:
241.5    Subd. 7. Composite income tax returns for nonresident partners, shareholders, and
241.6beneficiaries. (a) The commissioner may allow a partnership with nonresident partners to
241.7file a composite return and to pay the tax on behalf of nonresident partners who have no
241.8other Minnesota source income. This composite return must include the names, addresses,
241.9Social Security numbers, income allocation, and tax liability for the nonresident partners
241.10electing to be covered by the composite return.
241.11(b) The computation of a partner's tax liability must be determined by multiplying the
241.12income allocated to that partner by the highest rate used to determine the tax liability for
241.13individuals under section 290.06, subdivision 2c. Nonbusiness deductions, standard
241.14deductions, or personal exemptions are not allowed.
241.15(c) The partnership must submit a request to use this composite return filing method for
241.16nonresident partners. The requesting partnership must file a composite return in the form
241.17prescribed by the commissioner of revenue. The filing of a composite return is considered
241.18a request to use the composite return filing method.
241.19(d) The electing partner must not have any Minnesota source income other than the
241.20income from the partnership and other electing partnerships. If it is determined that the
241.21electing partner has other Minnesota source income, the inclusion of the income and tax
241.22liability for that partner under this provision will not constitute a return to satisfy the
241.23requirements of subdivision 1. The tax paid for the individual as part of the composite return
241.24is allowed as a payment of the tax by the individual on the date on which the composite
241.25return payment was made. If the electing nonresident partner has no other Minnesota source
241.26income, filing of the composite return is a return for purposes of subdivision 1.
241.27(e) This subdivision does not negate the requirement that an individual pay estimated
241.28tax if the individual's liability would exceed the requirements set forth in section 289A.25.
241.29The individual's liability to pay estimated tax is, however, satisfied when the partnership
241.30pays composite estimated tax in the manner prescribed in section 289A.25.
241.31(f) If an electing partner's share of the partnership's gross income from Minnesota sources
241.32is less than the filing requirements for a nonresident under this subdivision, the tax liability
241.33is zero. However, a statement showing the partner's share of gross income must be included
241.34as part of the composite return.
242.1(g) The election provided in this subdivision is only available to a partner who has no
242.2other Minnesota source income and who is either (1) a full-year nonresident individual or
242.3(2) a trust or estate that does not claim a deduction under either section 651 or 661 of the
242.4Internal Revenue Code.
242.5(h) A corporation defined in section 290.9725 and its nonresident shareholders may
242.6make an election under this paragraph. The provisions covering the partnership apply to
242.7the corporation and the provisions applying to the partner apply to the shareholder.
242.8(i) Estates and trusts distributing current income only and the nonresident individual
242.9beneficiaries of the estates or trusts may make an election under this paragraph. The
242.10provisions covering the partnership apply to the estate or trust. The provisions applying to
242.11the partner apply to the beneficiary.
242.12(j) For the purposes of this subdivision, "income" means the partner's share of federal
242.13adjusted gross income from the partnership modified by the additions provided in section
242.14290.0131, subdivisions 8 to 10 and, 16, and 17, and the subtractions provided in: (1) section
242.15290.0132, subdivision subdivisions 9, 27, and 28, to the extent the amount is assignable or
242.16allocable to Minnesota under section 290.17; and (2) section 290.0132, subdivision 14. The
242.17subtraction allowed under section 290.0132, subdivision 9, is only allowed on the composite
242.18tax computation to the extent the electing partner would have been allowed the subtraction.
242.19EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
242.20after December 31, 2015.

242.21    Sec. 2. Minnesota Statutes 2020, section 289A.09, subdivision 2, is amended to read:
242.22    Subd. 2. Withholding statement. (a) A person required to deduct and withhold from
242.23an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, or
242.24who would have been required to deduct and withhold a tax under section 290.92, subdivision
242.252a or 3, or persons required to withhold tax under section 290.923, subdivision 2, determined
242.26without regard to section 290.92, subdivision 19, if the employee or payee had claimed no
242.27more than one withholding exemption allowance, or who paid wages or made payments
242.28not subject to withholding under section 290.92, subdivision 2a or 3, or 290.923, subdivision
242.292, to an employee or person receiving royalty payments in excess of $600, or who has
242.30entered into a voluntary withholding agreement with a payee under section 290.92,
242.31subdivision 20, must give every employee or person receiving royalty payments in respect
242.32to the remuneration paid by the person to the employee or person receiving royalty payments
242.33during the calendar year, on or before January 31 of the succeeding year, or, if employment
242.34is terminated before the close of the calendar year, within 30 days after the date of receipt
243.1of a written request from the employee if the 30-day period ends before January 31, a written
243.2statement showing the following:
243.3    (1) name of the person;
243.4    (2) the name of the employee or payee and the employee's or payee's Social Security
243.5account number;
243.6    (3) the total amount of wages as that term is defined in section 290.92, subdivision 1,
243.7paragraph (1); the total amount of remuneration subject to withholding under section 290.92,
243.8subdivision 20; the amount of sick pay as required under section 6051(f) of the Internal
243.9Revenue Code; and the amount of royalties subject to withholding under section 290.923,
243.10subdivision 2; and
243.11    (4) the total amount deducted and withheld as tax under section 290.92, subdivision 2a
243.12or 3, or 290.923, subdivision 2.
243.13    (b) The statement required to be furnished by paragraph (a) with respect to any
243.14remuneration must be furnished at those times, must contain the information required, and
243.15must be in the form the commissioner prescribes.
243.16    (c) The commissioner may prescribe rules providing for reasonable extensions of time,
243.17not in excess of 30 days, to employers or payers required to give the statements to their
243.18employees or payees under this subdivision.
243.19    (d) A duplicate of any statement made under this subdivision and in accordance with
243.20rules prescribed by the commissioner must be filed with the commissioner on or before
243.21January 31 of the year after the payments were made.
243.22    (e) If an employer cancels the employer's Minnesota withholding account number required
243.23by section 290.92, subdivision 24, the information required by paragraph (d), must be filed
243.24with the commissioner within 30 days of the end of the quarter in which the employer
243.25cancels its account number.
243.26    (f) The employer must submit the statements required to be sent to the commissioner.
243.27The commissioner shall prescribe the content, format, and manner of the statement pursuant
243.28to section 270C.30.
243.29    (g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph
243.30(a), clause (2), must submit the returns required by this subdivision and subdivision 1,
243.31paragraph (a), with the commissioner by electronic means.
244.1EFFECTIVE DATE.This section is effective for taxable years beginning after December
244.231, 2020.

244.3    Sec. 3. Minnesota Statutes 2020, section 290.0121, subdivision 3, is amended to read:
244.4    Subd. 3. Inflation adjustment. For taxable years beginning after December 31, 2019,
244.5the commissioner must adjust for inflation the exemption amount in subdivision 1, paragraph
244.6(b), and the threshold amounts in subdivision 2, as provided in section 270C.22. The statutory
244.7year is taxable year 2019. The amounts as adjusted must be rounded down to the nearest
244.8$50 amount. If the amount ends in $25, the amount is rounded down to the nearest $50
244.9amount. The threshold amount for married individuals filing separate returns must be one-half
244.10of the adjusted amount for married individuals filing joint returns.
244.11EFFECTIVE DATE.This section is effective the day following final enactment.

244.12    Sec. 4. Minnesota Statutes 2020, section 290.92, subdivision 1, is amended to read:
244.13    Subdivision 1. Definitions. (1) Wages. For purposes of this section, the term "wages"
244.14means the same as that term is defined in section 3401(a), (f), and (i) of the Internal Revenue
244.15Code.
244.16(2) Payroll period. For purposes of this section the term "payroll period" means a period
244.17for which a payment of wages is ordinarily made to the employee by the employee's
244.18employer, and the term "miscellaneous payroll period" means a payroll period other than a
244.19daily, weekly, biweekly, semimonthly, monthly, quarterly, semiannual, or annual payroll
244.20period.
244.21(3) Employee. For purposes of this section the term "employee" means any resident
244.22individual performing services for an employer, either within or without, or both within and
244.23without the state of Minnesota, and every nonresident individual performing services within
244.24the state of Minnesota, the performance of which services constitute, establish, and determine
244.25the relationship between the parties as that of employer and employee. As used in the
244.26preceding sentence, the term "employee" includes an officer of a corporation, and an officer,
244.27employee, or elected official of the United States, a state, or any political subdivision thereof,
244.28or the District of Columbia, or any agency or instrumentality of any one or more of the
244.29foregoing.
244.30(4) Employer. For purposes of this section the term "employer" means any person,
244.31including individuals, fiduciaries, estates, trusts, partnerships, limited liability companies,
244.32and corporations transacting business in or deriving any income from sources within the
245.1state of Minnesota for whom an individual performs or performed any service, of whatever
245.2nature, as the employee of such person, except that if the person for whom the individual
245.3performs or performed the services does not have control of the payment of the wages for
245.4such services, the term "employer," except for purposes of paragraph (1), means the person
245.5having control of the payment of such wages. As used in the preceding sentence, the term
245.6"employer" includes any corporation, individual, estate, trust, or organization which is
245.7exempt from taxation under section 290.05 and further includes, but is not limited to, officers
245.8of corporations who have control, either individually or jointly with another or others, of
245.9the payment of the wages.
245.10(5) Number of withholding exemptions allowances claimed. For purposes of this
245.11section, the term "number of withholding exemptions allowances claimed" means the number
245.12of withholding exemptions allowances claimed in a withholding exemption allowances
245.13certificate in effect under subdivision 5, except that if no such certificate is in effect, the
245.14number of withholding exemptions allowances claimed shall be considered to be zero.
245.15EFFECTIVE DATE.This section is effective for taxable years beginning after December
245.1631, 2020.

245.17    Sec. 5. Minnesota Statutes 2020, section 290.92, subdivision 2a, is amended to read:
245.18    Subd. 2a. Collection at source. (1) Deductions. Every employer making payment of
245.19wages shall deduct and withhold upon such wages a tax as provided in this section.
245.20(2) Withholding on payroll period. The employer shall withhold the tax on the basis
245.21of each payroll period or as otherwise provided in this section.
245.22(3) Withholding tables. Unless the amount of tax to be withheld is determined as
245.23provided in subdivision 3, the amount of tax to be withheld for each individual shall be
245.24based upon tables to be prepared and distributed by the commissioner. The tables shall be
245.25computed for the several permissible withholding periods and shall take account of
245.26exemptions allowances allowed under this section; and the amounts computed for withholding
245.27shall be such that the amount withheld for any individual during the individual's taxable
245.28year shall approximate in the aggregate as closely as possible the tax which is levied and
245.29imposed under this chapter for that taxable year, upon the individual's salary, wages, or
245.30compensation for personal services of any kind for the employer.
245.31(4) Miscellaneous payroll period. If wages are paid with respect to a period which is
245.32not a payroll period, the amount to be deducted and withheld shall be that applicable in the
245.33case of a miscellaneous payroll period containing a number of days, including Sundays and
246.1holidays, equal to the number of days in the period with respect to which such wages are
246.2paid.
246.3(5) Miscellaneous payroll period. (a) In any case in which wages are paid by an
246.4employer without regard to any payroll period or other period, the amount to be deducted
246.5and withheld shall be that applicable in the case of a miscellaneous payroll period containing
246.6a number of days equal to the number of days, including Sundays and holidays, which have
246.7elapsed since the date of the last payment of such wages by such employer during the
246.8calendar year, or the date of commencement of employment with such employer during
246.9such year, or January 1 of such year, whichever is the later.
246.10(b) In any case in which the period, or the time described in clause (a), in respect of any
246.11wages is less than one week, the commissioner, under rules prescribed by the commissioner,
246.12may authorize an employer to determine the amount to be deducted and withheld under the
246.13tables applicable in the case of a weekly payroll period, in which case the aggregate of the
246.14wages paid to the employee during the calendar week shall be considered the weekly wages.
246.15(6) Wages computed to nearest dollar. If the wages exceed the highest bracket, in
246.16determining the amount to be deducted and withheld under this subdivision, the wages may,
246.17at the election of the employer, be computed to the nearest dollar.
246.18(7) Rules on withholding. The commissioner may, by rule, authorize employers:
246.19(a) to estimate the wages which will be paid to any employee in any quarter of the
246.20calendar year;
246.21(b) to determine the amount to be deducted and withheld upon each payment of wages
246.22to such employee during such quarter as if the appropriate average of the wages so estimated
246.23constituted the actual wages paid; and
246.24(c) to deduct and withhold upon any payment of wages to such employee during such
246.25quarter such amount as may be necessary to adjust the amount actually deducted and withheld
246.26upon wages of such employee during such quarter to the amount required to be deducted
246.27and withheld during such quarter without regard to this paragraph (7).
246.28(8) Additional withholding. The commissioner is authorized to provide by rule for
246.29increases or decreases in the amount of withholding otherwise required under this section
246.30in cases where the employee requests the changes. Such additional withholding shall for
246.31all purposes be considered tax required to be deducted and withheld under this section.
246.32(9) Tips. In the case of tips which constitute wages, this subdivision shall be applicable
246.33only to such tips as are included in a written statement furnished to the employer pursuant
247.1to section 6053 of the Internal Revenue Code and only to the extent that the tax can be
247.2deducted and withheld by the employer, at or after the time such statement is so furnished
247.3and before the close of the calendar year in which such statement is furnished, from such
247.4wages of the employee (excluding tips, but including funds turned over by the employee to
247.5the employer for the purpose of such deduction and withholding) as are under the control
247.6of the employer; and an employer who is furnished by an employee a written statement of
247.7tips (received in a calendar month) pursuant to section 6053 of the Internal Revenue Code
247.8to which subdivision 1 is applicable may deduct and withhold the tax with respect to such
247.9tips from any wages of the employee (excluding tips) under the employer's control, even
247.10though at the time such statement is furnished the total amount of the tips included in
247.11statements furnished to the employer as having been received by the employee in such
247.12calendar month in the course of employment by such employer is less than $20. Such tax
247.13shall not at any time be deducted and withheld in an amount which exceeds the aggregate
247.14of such wages and funds as are under the control of the employer minus any tax required
247.15by other provisions of state or federal law to be collected from such wages and funds.
247.16(10) Vehicle fringe benefits. An employer shall not deduct and withhold any tax under
247.17this section with respect to any vehicle fringe benefit provided to an employee if the employer
247.18has so elected for federal purposes and the requirement of and the definition contained in
247.19section 3402(s) of the Internal Revenue Code are complied with.
247.20EFFECTIVE DATE.This section is effective for taxable years beginning after December
247.2131, 2020.

247.22    Sec. 6. Minnesota Statutes 2020, section 290.92, subdivision 3, is amended to read:
247.23    Subd. 3. Withholding, irregular period. If payment of wages is made to an employee
247.24by an employer
247.25(a) With respect to a payroll period or other period, any part of which is included in a
247.26payroll period or other period with respect to which wages are also paid to such employees
247.27by such employer, or
247.28(b) Without regard to any payroll period or other period, but on or prior to the expiration
247.29of a payroll period or other period with respect to which wages are also paid to such employee
247.30by such employer, or
247.31(c) With respect to a period beginning in one and ending in another calendar year, or
247.32(d) Through an agent, fiduciary, or other person who also has the control, receipt, custody,
247.33or disposal of or pays, the wages payable by another employer to such employee.
248.1The manner of withholding and the amount to be deducted and withheld under subdivision
248.22a shall be determined in accordance with rules prescribed by the commissioner under which
248.3the withholding exemption allowance allowed to the employee in any calendar year shall
248.4approximate the withholding exemption allowance allowable with respect to an annual
248.5payroll period, except that if supplemental wages are not paid concurrent with a payroll
248.6period the employer shall withhold tax on the supplemental payment at the rate of 6.25
248.7percent as if no exemption allowance had been claimed.
248.8EFFECTIVE DATE.This section is effective for taxable years beginning after December
248.931, 2020.

248.10    Sec. 7. Minnesota Statutes 2020, section 290.92, subdivision 4b, is amended to read:
248.11    Subd. 4b. Withholding by partnerships. (a) A partnership shall deduct and withhold
248.12a tax as provided in paragraph (b) for nonresident individual partners based on their
248.13distributive shares of partnership income for a taxable year of the partnership.
248.14(b) The amount of tax withheld is determined by multiplying the partner's distributive
248.15share allocable to Minnesota under section 290.17, paid or credited during the taxable year
248.16by the highest rate used to determine the income tax liability for an individual under section
248.17290.06, subdivision 2c, except that the amount of tax withheld may be determined by the
248.18commissioner if the partner submits a withholding exemption allowance certificate under
248.19subdivision 5.
248.20(c) The commissioner may reduce or abate the tax withheld under this subdivision if the
248.21partnership had reasonable cause to believe that no tax was due under this section.
248.22(d) Notwithstanding paragraph (a), a partnership is not required to deduct and withhold
248.23tax for a nonresident partner if:
248.24(1) the partner elects to have the tax due paid as part of the partnership's composite return
248.25under section 289A.08, subdivision 7;
248.26(2) the partner has Minnesota assignable federal adjusted gross income from the
248.27partnership of less than $1,000; or
248.28(3) the partnership is liquidated or terminated, the income was generated by a transaction
248.29related to the termination or liquidation, and no cash or other property was distributed in
248.30the current or prior taxable year;
248.31(4) the distributive shares of partnership income are attributable to:
248.32(i) income required to be recognized because of discharge of indebtedness;
249.1(ii) income recognized because of a sale, exchange, or other disposition of real estate,
249.2depreciable property, or property described in section 179 of the Internal Revenue Code;
249.3or
249.4(iii) income recognized on the sale, exchange, or other disposition of any property that
249.5has been the subject of a basis reduction pursuant to section 108, 734, 743, 754, or 1017 of
249.6the Internal Revenue Code
249.7to the extent that the income does not include cash received or receivable or, if there is cash
249.8received or receivable, to the extent that the cash is required to be used to pay indebtedness
249.9by the partnership or a secured debt on partnership property; or
249.10(5) the partnership is a publicly traded partnership, as defined in section 7704(b) of the
249.11Internal Revenue Code.
249.12(e) For purposes of sections 270C.60, 289A.09, subdivision 2, 289A.20, subdivision 2,
249.13paragraph (c), 289A.50, 289A.56, 289A.60, and 289A.63, a partnership is considered an
249.14employer.
249.15(f) To the extent that income is exempt from withholding under paragraph (d), clause
249.16(4), the commissioner has a lien in an amount up to the amount that would be required to
249.17be withheld with respect to the income of the partner attributable to the partnership interest,
249.18but for the application of paragraph (d), clause (4). The lien arises under section 270C.63
249.19from the date of assessment of the tax against the partner, and attaches to that partner's share
249.20of the profits and any other money due or to become due to that partner in respect of the
249.21partnership. Notice of the lien may be sent by mail to the partnership, without the necessity
249.22for recording the lien. The notice has the force and effect of a levy under section 270C.67,
249.23and is enforceable against the partnership in the manner provided by that section. Upon
249.24payment in full of the liability subsequent to the notice of lien, the partnership must be
249.25notified that the lien has been satisfied.
249.26EFFECTIVE DATE.This section is effective for taxable years beginning after December
249.2731, 2020.

249.28    Sec. 8. Minnesota Statutes 2020, section 290.92, subdivision 4c, is amended to read:
249.29    Subd. 4c. Withholding by S corporations. (a) A corporation having a valid election in
249.30effect under section 290.9725 shall deduct and withhold a tax as provided in paragraph (b)
249.31for nonresident individual shareholders their share of the corporation's income for the taxable
249.32year.
250.1(b) The amount of tax withheld is determined by multiplying the amount of income
250.2allocable to Minnesota under section 290.17 by the highest rate used to determine the income
250.3tax liability of an individual under section 290.06, subdivision 2c, except that the amount
250.4of tax withheld may be determined by the commissioner if the shareholder submits a
250.5withholding exemption allowance certificate under subdivision 5.
250.6(c) Notwithstanding paragraph (a), a corporation is not required to deduct and withhold
250.7tax for a nonresident shareholder, if:
250.8(1) the shareholder elects to have the tax due paid as part of the corporation's composite
250.9return under section 289A.08, subdivision 7;
250.10(2) the shareholder has Minnesota assignable federal adjusted gross income from the
250.11corporation of less than $1,000; or
250.12(3) the corporation is liquidated or terminated, the income was generated by a transaction
250.13related to the termination or liquidation, and no cash or other property was distributed in
250.14the current or prior taxable year.
250.15(d) For purposes of sections 270C.60, 289A.09, subdivision 2, 289A.20, subdivision 2,
250.16paragraph (c), 289A.50, 289A.56, 289A.60, and 289A.63, a corporation is considered an
250.17employer.
250.18EFFECTIVE DATE.This section is effective for taxable years beginning after December
250.1931, 2020.

250.20    Sec. 9. Minnesota Statutes 2020, section 290.92, subdivision 5, is amended to read:
250.21    Subd. 5. Exemptions Allowances. (1) Entitlement. An employee receiving wages shall
250.22on any day be entitled to claim withholding exemptions allowances in a number not to
250.23exceed the number of withholding exemptions allowances that the employee claims and
250.24that are allowable pursuant to section 3402(f)(1), (m), and (n) of the Internal Revenue Code
250.25for federal withholding purposes, except:
250.26(i) the standard deduction amount for the purposes of section 3402(f)(1)(E) of the Internal
250.27Revenue Code shall be the amount calculated under section 290.0123, subdivision 1; and
250.28(ii) the exemption allowance amount for the purposes of section 3402(f)(1)(A) of the
250.29Internal Revenue Code shall be the amount calculated under section 290.0121, subdivision
250.301.;
250.31(iii) withholding allowances under sections 3402(f)(1)(C) and (D) of the Internal Revenue
250.32Code are not allowed;
251.1(iv) estimated itemized deductions allowable under section 290.0122, but only if the
251.2employee's spouse does not have in effect a withholding certificate electing this allowance;
251.3and
251.4(v) any additional allowances, at the discretion of the commissioner, that are in the best
251.5interests of determining the proper amount to withhold for the payment of taxes under this
251.6chapter.
251.7(2) Withholding exemption allowance certificate. The provisions concerning exemption
251.8allowance certificates contained in section 3402(f)(2) and (3) of the Internal Revenue Code
251.9shall apply.
251.10(3) Form of certificate. Withholding exemption allowance certificates shall be in such
251.11form and contain such information as the commissioner may by rule prescribe.
251.12EFFECTIVE DATE.This section is effective for taxable years beginning after December
251.1331, 2020.

251.14    Sec. 10. Minnesota Statutes 2020, section 290.92, subdivision 5a, is amended to read:
251.15    Subd. 5a. Verification of withholding exemptions allowances; appeal. (a) An employer
251.16shall submit to the commissioner a copy of any withholding exemption allowance certificate
251.17or any affidavit of residency received from an employee on which the employee claims any
251.18of the following:
251.19(1) a total number of withholding exemptions allowances in excess of ten or a number
251.20prescribed by the commissioner, or
251.21(2) a status that would exempt the employee from Minnesota withholding, including
251.22where the employee is a nonresident exempt from withholding under subdivision 4a, clause
251.23(3), except where the employer reasonably expects, at the time that the certificate is received,
251.24that the employee's wages under subdivision 1 from the employer will not then usually
251.25exceed $200 per week, or
251.26(3) any number of withholding exemptions allowances which the employer has reason
251.27to believe is in excess of the number to which the employee is entitled.
251.28(b) Copies of exemption allowance certificates and affidavits of residency required to
251.29be submitted by paragraph (a) shall be submitted to the commissioner within 30 days after
251.30receipt by the employer unless the employer is also required by federal law to submit copies
251.31to the Internal Revenue Service, in which case the employer may elect to submit the copies
252.1to the commissioner at the same time that the employer is required to submit them to the
252.2Internal Revenue Service.
252.3(c) An employer who submits a copy of a withholding exemption allowance certificate
252.4in accordance with paragraph (a) shall honor the certificate until notified by the commissioner
252.5that the certificate is invalid. The commissioner shall mail a copy of any such notice to the
252.6employee. Upon notification that a particular certificate is invalid, the employer shall not
252.7honor that certificate or any subsequent certificate unless instructed to do so by the
252.8commissioner. The employer shall allow the employee the number of exemptions allowances
252.9and compute the withholding tax as instructed by the commissioner in accordance with
252.10paragraph (d).
252.11(d) The commissioner may require an employee to verify entitlement to the number of
252.12exemptions allowances or to the exempt status claimed on the withholding exemption
252.13allowance certificate or, to verify nonresidency. The employee shall be allowed at least 30
252.14days to submit the verification, after which time the commissioner shall, on the basis of the
252.15best information available to the commissioner, determine the employee's status and allow
252.16the employee the maximum number of withholding exemptions allowances allowable under
252.17this chapter. The commissioner shall mail a notice of this determination to the employee at
252.18the address listed on the exemption allowance certificate in question or to the last known
252.19address of the employee. Pursuant to section 270B.06, the commissioner may notify the
252.20employer of this determination and instruct the employer to withhold tax in accordance with
252.21the determination.
252.22However, where the commissioner has reasonable grounds for believing that the employee
252.23is about to leave the state or that the collection of any tax due under this chapter will be
252.24jeopardized by delay, the commissioner may immediately notify the employee and the
252.25employer, pursuant to section 270B.06, that the certificate is invalid, and the employer must
252.26not honor that certificate or any subsequent certificate unless instructed to do so by the
252.27commissioner. The employer shall allow the employee the number of exemptions allowances
252.28and compute the withholding tax as instructed by the commissioner.
252.29(e) The commissioner's determination under paragraph (d) shall be appealable to Tax
252.30Court in accordance with section 271.06, and shall remain in effect for withholding tax
252.31purposes pending disposition of any appeal.
252.32EFFECTIVE DATE.This section is effective for taxable years beginning after December
252.3331, 2020.

253.1    Sec. 11. Minnesota Statutes 2020, section 290.92, subdivision 19, is amended to read:
253.2    Subd. 19. Employees incurring no income tax liability. Notwithstanding any other
253.3provision of this section, except the provisions of subdivision 5a, an employer is not required
253.4to deduct and withhold any tax under this chapter from wages paid to an employee if:
253.5(1) the employee furnished the employer with a withholding exemption allowance
253.6certificate that:
253.7(i) certifies the employee incurred no liability for income tax imposed under this chapter
253.8for the employee's preceding taxable year;
253.9(ii) certifies the employee anticipates incurring no liability for income tax imposed under
253.10this chapter for the current taxable year; and
253.11(iii) is in a form and contains any other information prescribed by the commissioner; or
253.12(2)(i) the employee is not a resident of Minnesota when the wages were paid; and
253.13(ii) the employer reasonably expects that the employer will not pay the employee enough
253.14wages assignable to Minnesota under section 290.17, subdivision 2, paragraph (a)(1), to
253.15meet the nonresident requirement to file a Minnesota individual income tax return for the
253.16taxable year under section 289A.08, subdivision 1, paragraph (a).
253.17EFFECTIVE DATE.This section is effective for taxable years beginning after December
253.1831, 2020.

253.19    Sec. 12. Minnesota Statutes 2020, section 290.92, subdivision 20, is amended to read:
253.20    Subd. 20. Voluntary withholding agreements Miscellaneous withholding
253.21arrangements. (a) For purposes of this section, any payment of an annuity to an individual,
253.22if at the time the payment is made a request that such annuity be subject to withholding
253.23under this section is in effect, or distribution to an individual as defined under section
253.243405(e)(2) or (3) of the Internal Revenue Code shall be treated as if it were a payment of
253.25wages by an employer to an employee for a payroll period. Any payment to an individual
253.26of sick pay which does not constitute wages, determined without regard to this subdivision,
253.27shall be treated as if it were a payment of wages by an employer to an employee for a payroll
253.28period, if, at the time the payment is made a request that such sick pay be subject to
253.29withholding under this section is in effect. Sick pay means any amount which:
253.30(1) is paid to an employee pursuant to a plan to which the employer is a party, and
254.1(2) constitutes remuneration or a payment in lieu of remuneration for any period during
254.2which the employee is temporarily absent from work on account of sickness or personal
254.3injuries.
254.4(b) A request for withholding, the amount withheld, and sick pay paid pursuant to certain
254.5collective bargaining agreements shall conform with the provisions of section 3402(o)(3),
254.6(4), and (5) of the Internal Revenue Code.
254.7(c) The commissioner is authorized by rules to provide for withholding:
254.8(1) from remuneration for services performed by an employee for the employer which,
254.9without regard to this subdivision, does not constitute wages, and
254.10(2) from any other type of payment with respect to which the commissioner finds that
254.11withholding would be appropriate under the provisions of this section, if the employer and
254.12the employee, or in the case of any other type of payment the person making and the person
254.13receiving the payment, agree to such withholding. Such agreement shall be made in such
254.14form and manner as the commissioner may by rules provide. For purposes of this section
254.15remuneration or other payments with respect to which such agreement is made shall be
254.16treated as if they were wages paid by an employer to an employee to the extent that such
254.17remuneration is paid or other payments are made during the period for which the agreement
254.18is in effect.
254.19(d) An individual receiving a payment or distribution under paragraph (a) may elect to
254.20have paragraph (a) not apply to the payment or distribution as follows.
254.21(1) For payments defined under section 3405(e)(2) of the Internal Revenue Code, an
254.22election remains in effect until revoked by such individual.
254.23(2) For distributions defined under section 3405(e)(3) of the Internal Revenue Code, the
254.24election is on a distribution-by-distribution basis.
254.25EFFECTIVE DATE.This section is effective for payments and distributions made
254.26after December 31, 2021.

254.27    Sec. 13. Minnesota Statutes 2020, section 290.923, subdivision 9, is amended to read:
254.28    Subd. 9. Payees incurring no income tax liability. Notwithstanding any other provision
254.29of this section a payor shall not be required to deduct and withhold any tax under this chapter
254.30upon a payment of royalties to a payee if there is in effect with respect to the payment a
254.31withholding exemption allowance certificate, in the form and containing the information
255.1prescribed by the commissioner, furnished to the payor by the payee certifying that the
255.2payee:
255.3(1) incurred no liability for income tax imposed under this chapter for the payee's
255.4preceding taxable year; and
255.5(2) anticipates incurring no liability for income tax under this chapter for the current
255.6taxable year.
255.7The commissioner shall provide by rule for the coordination of the provisions of this
255.8subdivision with the provisions of subdivision 4.
255.9EFFECTIVE DATE.This section is effective for taxable years beginning after December
255.1031, 2020.

255.11    Sec. 14. Minnesota Statutes 2020, section 290.993, is amended to read:
255.12290.993 SPECIAL LIMITED ADJUSTMENT.
255.13(a) For an individual income taxpayer subject to tax under section 290.06, subdivision
255.142c, estate, or trust, or a partnership that elects to file a composite return under section
255.15289A.08, subdivision 7, for taxable years beginning after December 31, 2017, and before
255.16January 1, 2019, the following special rules apply:
255.17(1) an individual income taxpayer may: (i) take the standard deduction; or (ii) make an
255.18election under section 63(e) of the Internal Revenue Code to itemize, for Minnesota individual
255.19income tax purposes, regardless of the choice made on their federal return; and
255.20(2) there is an adjustment to tax equal to the difference between the tax calculated under
255.21this chapter using the Internal Revenue Code as amended through December 16, 2016, and
255.22the tax calculated under this chapter using the Internal Revenue Code amended through
255.23December 31, 2018, before the application of credits. The end result must be zero additional
255.24tax due or refund.
255.25(b) The adjustment in paragraph (a), clause (2), does not apply to any changes due to
255.26sections 11012, 13101, 13201, 13202, 13203, 13204, 13205, 13207, 13301, 13302, 13303,
255.2713313, 13502, 13503, 13801, 14101, 14102, 14211 through 14215, and 14501 of Public
255.28Law 115-97; and section 40411 of Public Law 115-123.
255.29EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
255.30after December 31, 2017, and before January 1, 2019.


256.4    Section 1. Minnesota Statutes 2020, section 270.41, subdivision 3a, is amended to read:
256.5    Subd. 3a. Report on disciplinary actions. Each odd-numbered year, When issuing the
256.6report required under section 214.07, the board must publish a report detailing include the
256.7number and types of disciplinary actions recommended by the commissioner of revenue
256.8under section 273.0645, subdivision 2, and the disposition of those recommendations by
256.9the board. The report must be presented to the house of representatives and senate committees
256.10with jurisdiction over property taxes by February 1 of each odd-numbered year in addition
256.11to the recipients required under section 214.07.
256.12EFFECTIVE DATE.This section is effective for reports issued in 2022 and thereafter.

256.13    Sec. 2. Minnesota Statutes 2020, section 270.44, is amended to read:
256.14270.44 CHARGES FOR COURSES, EXAMINATIONS OR MATERIALS.
256.15    The board shall charge the following fees:
256.16    (1) $150 for a senior accredited Minnesota assessor license;
256.17    (2) $125 for an accredited Minnesota assessor license;
256.18    (3) $95 for a certified Minnesota assessor specialist license;
256.19    (4) $85 for a certified Minnesota assessor license;
256.20    (5) $85 for a temporary license;
256.21    (6) $50 for a trainee registration;
256.22    (7) $80 for grading a form appraisal;
256.23    (8) $140 for grading a narrative appraisal; and
256.24    (9) $50 for reinstatement; and.
256.25    (10) $20 for record retention.
256.26EFFECTIVE DATE.This section is effective the day following final enactment.

256.27    Sec. 3. Minnesota Statutes 2020, section 272.029, subdivision 2, is amended to read:
256.28    Subd. 2. Definitions. (a) For the purposes of this section:
257.1(1) "wind energy conversion system" has the meaning given in section 216C.06,
257.2subdivision 19, and also includes a substation that is used and owned by one or more wind
257.3energy conversion facilities;
257.4(2) "large scale wind energy conversion system" means a wind energy conversion system
257.5of more than 12 megawatts, as measured by the nameplate capacity of the system or as
257.6combined with other systems as provided in paragraph (b);
257.7(3) "medium scale wind energy conversion system" means a wind energy conversion
257.8system of over two and not more than 12 megawatts, as measured by the nameplate capacity
257.9of the system or as combined with other systems as provided in paragraph (b); and
257.10(4) "small scale wind energy conversion system" means a wind energy conversion system
257.11of two megawatts and under, as measured by the nameplate capacity of the system or as
257.12combined with other systems as provided in paragraph (b).
257.13(b) For systems installed and contracted for after January 1, 2002, the total size of a
257.14wind energy conversion system under this subdivision shall be determined according to this
257.15paragraph. Unless the systems are interconnected with different distribution systems, the
257.16nameplate capacity of one wind energy conversion system shall be combined with the
257.17nameplate capacity of any other wind energy conversion system that is:
257.18(1) located within five miles of the wind energy conversion system;
257.19(2) constructed within the same 12-month period as the wind energy conversion system;
257.20and
257.21(3) under common ownership.
257.22In the case of a dispute, the commissioner of commerce shall determine the total size of the
257.23system, and shall draw all reasonable inferences in favor of combining the systems.
257.24For the purposes of making a determination under this paragraph, the original construction
257.25date of an existing wind energy conversion system is not changed if the system is replaced,
257.26repaired, or otherwise maintained or altered.
257.27(c) In making a determination under paragraph (b), the commissioner of commerce may
257.28determine that two wind energy conversion systems are under common ownership when
257.29the underlying ownership structure contains similar persons or entities, even if the ownership
257.30shares differ between the two systems. Wind energy conversion systems are not under
257.31common ownership solely because the same person or entity provided equity financing for
257.32the systems.
258.1EFFECTIVE DATE.This section is effective the day following final enactment.

258.2    Sec. 4. Minnesota Statutes 2020, section 272.0295, subdivision 2, is amended to read:
258.3    Subd. 2. Definitions. (a) For the purposes of this section, the term "solar energy
258.4generating system" means a set of devices whose primary purpose is to produce electricity
258.5by means of any combination of collecting, transferring, or converting solar generated
258.6energy.
258.7(b) The total size of a solar energy generating system under this subdivision shall be
258.8determined according to this paragraph. Unless the systems are interconnected with different
258.9distribution systems, the nameplate capacity of a solar energy generating system shall be
258.10combined with the nameplate capacity of any other solar energy generating system that:
258.11(1) is constructed within the same 12-month period as the solar energy generating system;
258.12and
258.13(2) exhibits characteristics of being a single development, including but not limited to
258.14ownership structure, an umbrella sales arrangement, shared interconnection, revenue-sharing
258.15arrangements, and common debt or equity financing.
258.16In the case of a dispute, the commissioner of commerce shall determine the total size of the
258.17system and shall draw all reasonable inferences in favor of combining the systems.
258.18For the purposes of making a determination under this paragraph, the original construction
258.19date of an existing solar energy conversion system is not changed if the system is replaced,
258.20repaired, or otherwise maintained or altered.
258.21(c) In making a determination under paragraph (b), the commissioner of commerce may
258.22determine that two solar energy generating systems are under common ownership when the
258.23underlying ownership structure contains similar persons or entities, even if the ownership
258.24shares differ between the two systems. Solar energy generating systems are not under
258.25common ownership solely because the same person or entity provided equity financing for
258.26the systems.
258.27EFFECTIVE DATE.This section is effective the day following final enactment.

258.28    Sec. 5. Minnesota Statutes 2020, section 272.0295, subdivision 5, is amended to read:
258.29    Subd. 5. Notification of tax. (a) On or before February 28, the commissioner of revenue
258.30shall notify the owner of each solar energy generating system of the tax due to each county
259.1for the current year and shall certify to the county auditor of each county in which the system
259.2is located the tax due from each owner for the current year.
259.3(b) If the commissioner of revenue determines that the amount of production tax has
259.4been erroneously calculated, the commissioner may correct the error. The commissioner
259.5must notify the owner of the solar energy generating system of the correction and the amount
259.6of tax due to each county and must certify the correction to the county auditor of each county
259.7in which the system is located on or before April 1 of the current year. The commissioner
259.8may correct errors that are clerical in nature until December 31.
259.9EFFECTIVE DATE.This section is effective the day following final enactment.

259.10    Sec. 6. Minnesota Statutes 2020, section 273.063, is amended to read:
259.11273.063 APPLICATION; LIMITATIONS.
259.12The provisions of sections 272.161, 273.061, 273.062, 273.063, 273.072, 273.08, 273.10,
259.13274.01, and 375.192 shall apply to all counties except Ramsey County. The following
259.14limitations shall apply as to the extent of the county assessors jurisdiction:
259.15In counties having a city of the first class, the powers and duties of the county assessor
259.16within such city shall be performed by the duly appointed city assessor. In all other cities
259.17having a population of 30,000 persons or more, according to the last preceding federal
259.18census, except in counties having a county assessor on January 1, 1967, the powers and
259.19duties of the county assessor within such cities shall be performed by the duly appointed
259.20city assessor, provided that the county assessor shall retain the supervisory duties contained
259.21in section 273.061, subdivision 8. For purposes of this section, "powers and duties" means
259.22the powers and duties identified in section 273.061, subdivision 8, clauses (5) to (16).
259.23EFFECTIVE DATE.This section is effective the day following final enactment.

259.24    Sec. 7. Minnesota Statutes 2020, section 273.0755, is amended to read:
259.25273.0755 TRAINING AND EDUCATION OF PROPERTY TAX PERSONNEL.
259.26(a) Beginning with the four-year period starting on July 1, 2000 2020, every person
259.27licensed by the state Board of Assessors at the Accredited Minnesota Assessor level or
259.28higher, shall successfully complete a weeklong Minnesota laws course 30 hours of
259.29educational coursework on Minnesota laws, assessment administration, and administrative
259.30procedures sponsored by the Department of Revenue at least once in every four-year period.
259.31An assessor need not attend the course if they successfully pass the test for the course.
260.1(b) The commissioner of revenue may require that each county, and each city for which
260.2the city assessor performs the duties of county assessor, have (1) a person on the assessor's
260.3staff who is certified by the Department of Revenue in sales ratio calculations, (2) an officer
260.4or employee who is certified by the Department of Revenue in tax calculations, and (3) an
260.5officer or employee who is certified by the Department of Revenue in the proper preparation
260.6of information reported to the commissioner under section 270C.85, subdivision 2, clause
260.7(4). Certifications under this paragraph expire after four years.
260.8(c) Beginning with the four-year educational licensing period starting on July 1, 2004,
260.9every Minnesota assessor licensed by the State Board of Assessors must attend and participate
260.10in a seminar that focuses on ethics, professional conduct and the need for standardized
260.11assessment practices developed and presented by the commissioner of revenue. This
260.12requirement must be met at least once in every subsequent four-year period. This requirement
260.13applies to all assessors licensed for one year or more in the four-year period.
260.14(d) When the commissioner of revenue determines that an individual or board that
260.15performs functions related to property tax administration has performed those functions in
260.16a manner that is not uniform or equitable, the commissioner may require that the individual
260.17or members of the board complete supplemental training. The commissioner may not require
260.18that an individual complete more than 32 hours of supplemental training pursuant to this
260.19paragraph. If the individual is required to complete supplemental training due to that
260.20individual's membership on a local or county board of appeal and equalization, the
260.21commissioner may not require that the individual complete more than two hours of
260.22supplemental training.
260.23EFFECTIVE DATE.This section is effective retroactively for the four-year licensing
260.24period starting on July 1, 2020, and thereafter.

260.25    Sec. 8. Minnesota Statutes 2020, section 273.124, subdivision 14, is amended to read:
260.26    Subd. 14. Agricultural homesteads; special provisions. (a) Real estate of less than ten
260.27acres that is the homestead of its owner must be classified as class 2a under section 273.13,
260.28subdivision 23, paragraph (a), if:
260.29    (1) the parcel on which the house is located is contiguous on at least two sides to (i)
260.30agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
260.31Service, or (iii) land administered by the Department of Natural Resources on which in lieu
260.32taxes are paid under sections 477A.11 to 477A.14 or section 477A.17;
261.1    (2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20
261.2acres;
261.3    (3) the noncontiguous land is located not farther than four townships or cities, or a
261.4combination of townships or cities from the homestead; and
261.5    (4) the agricultural use value of the noncontiguous land and farm buildings is equal to
261.6at least 50 percent of the market value of the house, garage, and one acre of land.
261.7    Homesteads initially classified as class 2a under the provisions of this paragraph shall
261.8remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
261.9properties, as long as the homestead remains under the same ownership, the owner owns a
261.10noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
261.11value qualifies under clause (4). Homestead classification under this paragraph is limited
261.12to property that qualified under this paragraph for the 1998 assessment.
261.13    (b)(i) Agricultural property shall be classified as the owner's homestead, to the same
261.14extent as other agricultural homestead property, if all of the following criteria are met:
261.15    (1) the agricultural property consists of at least 40 acres including undivided government
261.16lots and correctional 40's;
261.17    (2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the owner
261.18or of the owner's spouse, is actively farming the agricultural property, either on the person's
261.19own behalf as an individual or on behalf of a partnership operating a family farm, family
261.20farm corporation, joint family farm venture, or limited liability company of which the person
261.21is a partner, shareholder, or member;
261.22    (3) both the owner of the agricultural property and the person who is actively farming
261.23the agricultural property under clause (2), are Minnesota residents;
261.24    (4) neither the owner nor the spouse of the owner claims another agricultural homestead
261.25in Minnesota; and
261.26    (5) neither the owner nor the person actively farming the agricultural property lives
261.27farther than four townships or cities, or a combination of four townships or cities, from the
261.28agricultural property, except that if the owner or the owner's spouse is required to live in
261.29employer-provided housing, the owner or owner's spouse, whichever is actively farming
261.30the agricultural property, may live more than four townships or cities, or combination of
261.31four townships or cities from the agricultural property.
261.32    The relationship under this paragraph may be either by blood or marriage.
262.1    (ii) Property containing the residence of an owner who owns qualified property under
262.2clause (i) shall be classified as part of the owner's agricultural homestead, if that property
262.3is also used for noncommercial storage or drying of agricultural crops.
262.4(iii) As used in this paragraph, "agricultural property" means class 2a property and any
262.5class 2b property that is contiguous to and under the same ownership as the class 2a property.
262.6    (c) Noncontiguous land shall be included as part of a homestead under section 273.13,
262.7subdivision 23, paragraph (a), only if the homestead is classified as class 2a and the detached
262.8land is located in the same township or city, or not farther than four townships or cities or
262.9combination thereof from the homestead. Any taxpayer of these noncontiguous lands must
262.10notify the county assessor that the noncontiguous land is part of the taxpayer's homestead,
262.11and, if the homestead is located in another county, the taxpayer must also notify the assessor
262.12of the other county.
262.13    (d) Agricultural land used for purposes of a homestead and actively farmed by a person
262.14holding a vested remainder interest in it must be classified as a homestead under section
262.15273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, any other
262.16dwellings on the land used for purposes of a homestead by persons holding vested remainder
262.17interests who are actively engaged in farming the property, and up to one acre of the land
262.18surrounding each homestead and reasonably necessary for the use of the dwelling as a home,
262.19must also be assessed class 2a.
262.20    (e) Agricultural land and buildings that were class 2a homestead property under section
262.21273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain classified as
262.22agricultural homesteads for subsequent assessments if:
262.23    (1) the property owner abandoned the homestead dwelling located on the agricultural
262.24homestead as a result of the April 1997 floods;
262.25    (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or
262.26Wilkin;
262.27    (3) the agricultural land and buildings remain under the same ownership for the current
262.28assessment year as existed for the 1997 assessment year and continue to be used for
262.29agricultural purposes;
262.30    (4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles
262.31of one of the parcels of agricultural land that is owned by the taxpayer; and
262.32    (5) the owner notifies the county assessor that the relocation was due to the 1997 floods,
262.33and the owner furnishes the assessor any information deemed necessary by the assessor in
263.1verifying the change in dwelling. Further notifications to the assessor are not required if the
263.2property continues to meet all the requirements in this paragraph and any dwellings on the
263.3agricultural land remain uninhabited.
263.4    (f) Agricultural land and buildings that were class 2a homestead property under section
263.5273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain classified
263.6agricultural homesteads for subsequent assessments if:
263.7    (1) the property owner abandoned the homestead dwelling located on the agricultural
263.8homestead as a result of damage caused by a March 29, 1998, tornado;
263.9    (2) the property is located in the county of Blue Earth, Brown, Cottonwood, LeSueur,
263.10Nicollet, Nobles, or Rice;
263.11    (3) the agricultural land and buildings remain under the same ownership for the current
263.12assessment year as existed for the 1998 assessment year;
263.13    (4) the dwelling occupied by the owner is located in this state and is within 50 miles of
263.14one of the parcels of agricultural land that is owned by the taxpayer; and
263.15    (5) the owner notifies the county assessor that the relocation was due to a March 29,
263.161998, tornado, and the owner furnishes the assessor any information deemed necessary by
263.17the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the
263.18owner must notify the assessor by December 1, 1998. Further notifications to the assessor
263.19are not required if the property continues to meet all the requirements in this paragraph and
263.20any dwellings on the agricultural land remain uninhabited.
263.21    (g) Agricultural property of a family farm corporation, joint family farm venture, family
263.22farm limited liability company, or partnership operating a family farm as described under
263.23subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead
263.24property, if all of the following criteria are met:
263.25    (1) the property consists of at least 40 acres including undivided government lots and
263.26correctional 40's;
263.27    (2) a shareholder, member, or partner of that entity is actively farming the agricultural
263.28property;
263.29    (3) that shareholder, member, or partner who is actively farming the agricultural property
263.30is a Minnesota resident;
263.31    (4) neither that shareholder, member, or partner, nor the spouse of that shareholder,
263.32member, or partner claims another agricultural homestead in Minnesota; and
264.1    (5) that shareholder, member, or partner does not live farther than four townships or
264.2cities, or a combination of four townships or cities, from the agricultural property.
264.3Homestead treatment applies under this paragraph even if:
264.4(i) the shareholder, member, or partner of that entity is actively farming the agricultural
264.5property on the shareholder's, member's, or partner's own behalf; or
264.6(ii) the family farm is operated by a family farm corporation, joint family farm venture,
264.7partnership, or limited liability company other than the family farm corporation, joint family
264.8farm venture, partnership, or limited liability company that owns the land, provided that:
264.9(A) the shareholder, member, or partner of the family farm corporation, joint family
264.10farm venture, partnership, or limited liability company that owns the land who is actively
264.11farming the land is a shareholder, member, or partner of the family farm corporation, joint
264.12family farm venture, partnership, or limited liability company that is operating the farm;
264.13and
264.14(B) more than half of the shareholders, members, or partners of each family farm
264.15corporation, joint family farm venture, partnership, or limited liability company are persons
264.16or spouses of persons who are a qualifying relative under section 273.124, subdivision 1,
264.17paragraphs (c) and (d).
264.18    Homestead treatment applies under this paragraph for property leased to a family farm
264.19corporation, joint farm venture, limited liability company, or partnership operating a family
264.20farm if legal title to the property is in the name of an individual who is a member, shareholder,
264.21or partner in the entity.
264.22    (h) To be eligible for the special agricultural homestead under this subdivision, an initial
264.23full application must be submitted to the county assessor where the property is located.
264.24Owners and the persons who are actively farming the property shall be required to complete
264.25only a one-page abbreviated version of the application in each subsequent year provided
264.26that none of the following items have changed since the initial application:
264.27    (1) the day-to-day operation, administration, and financial risks remain the same;
264.28    (2) the owners and the persons actively farming the property continue to live within the
264.29four townships or city criteria and are Minnesota residents;
264.30    (3) the same operator of the agricultural property is listed with the Farm Service Agency;
264.31    (4) a Schedule F or equivalent income tax form was filed for the most recent year;
264.32    (5) the property's acreage is unchanged; and
265.1    (6) none of the property's acres have been enrolled in a federal or state farm program
265.2since the initial application.
265.3    The owners and any persons who are actively farming the property must include the
265.4appropriate Social Security numbers, and sign and date the application. If any of the specified
265.5information has changed since the full application was filed, the owner must notify the
265.6assessor, and must complete a new application to determine if the property continues to
265.7qualify for the special agricultural homestead. The commissioner of revenue shall prepare
265.8a standard reapplication form for use by the assessors.
265.9    (i) Agricultural land and buildings that were class 2a homestead property under section
265.10273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain classified
265.11agricultural homesteads for subsequent assessments if:
265.12    (1) the property owner abandoned the homestead dwelling located on the agricultural
265.13homestead as a result of damage caused by the August 2007 floods;
265.14    (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele,
265.15Wabasha, or Winona;
265.16    (3) the agricultural land and buildings remain under the same ownership for the current
265.17assessment year as existed for the 2007 assessment year;
265.18    (4) the dwelling occupied by the owner is located in this state and is within 50 miles of
265.19one of the parcels of agricultural land that is owned by the taxpayer; and
265.20    (5) the owner notifies the county assessor that the relocation was due to the August 2007
265.21floods, and the owner furnishes the assessor any information deemed necessary by the
265.22assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the
265.23owner must notify the assessor by December 1, 2008. Further notifications to the assessor
265.24are not required if the property continues to meet all the requirements in this paragraph and
265.25any dwellings on the agricultural land remain uninhabited.
265.26    (j) Agricultural land and buildings that were class 2a homestead property under section
265.27273.13, subdivision 23, paragraph (a), for the 2008 assessment shall remain classified as
265.28agricultural homesteads for subsequent assessments if:
265.29    (1) the property owner abandoned the homestead dwelling located on the agricultural
265.30homestead as a result of the March 2009 floods;
265.31    (2) the property is located in the county of Marshall;
266.1    (3) the agricultural land and buildings remain under the same ownership for the current
266.2assessment year as existed for the 2008 assessment year and continue to be used for
266.3agricultural purposes;
266.4    (4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles
266.5of one of the parcels of agricultural land that is owned by the taxpayer; and
266.6    (5) the owner notifies the county assessor that the relocation was due to the 2009 floods,
266.7and the owner furnishes the assessor any information deemed necessary by the assessor in
266.8verifying the change in dwelling. Further notifications to the assessor are not required if the
266.9property continues to meet all the requirements in this paragraph and any dwellings on the
266.10agricultural land remain uninhabited.
266.11EFFECTIVE DATE.This section is effective the day following final enactment.

266.12    Sec. 9. Minnesota Statutes 2020, section 273.18, is amended to read:
266.13273.18 LISTING, VALUATION, AND ASSESSMENT OF EXEMPT PROPERTY
266.14BY COUNTY AUDITORS.
266.15(a) In every sixth year after the year 2010, the county auditor shall enter the description
266.16of each tract of real property exempt by law from taxation, with the name of the owner, and
266.17the assessor shall value and assess the same in the same manner that other real property is
266.18valued and assessed, and shall designate in each case the purpose for which the property is
266.19used.
266.20(b) The county auditor shall include in the exempt property information that the
266.21commissioner may require under section 270C.85, subdivision 2, clause (4), the total number
266.22of acres of all natural resources lands for which in lieu payments are made under sections
266.23477A.11 to 477A.14 and 477A.17. The assessor shall estimate its market value, provided
266.24that if the assessor is not able to estimate the market value of the land on a per parcel basis,
266.25the assessor shall furnish the commissioner of revenue with an estimate of the average value
266.26per acre of this land within the county.
266.27EFFECTIVE DATE.This section is effective the day following final enactment.

266.28    Sec. 10. Minnesota Statutes 2020, section 287.04, is amended to read:
266.29287.04 EXEMPTIONS.
266.30The tax imposed by section 287.035 does not apply to:
266.31(a) (1) a decree of marriage dissolution or an instrument made pursuant to it.;
267.1(b) (2) a mortgage given to correct a misdescription of the mortgaged property.;
267.2(c) (3) a mortgage or other instrument that adds additional security for the same debt
267.3for which mortgage registry tax has been paid.;
267.4(d) (4) a contract for the conveyance of any interest in real property, including a contract
267.5for deed.;
267.6(e) (5) a mortgage secured by real property subject to the minerals production tax of
267.7sections 298.24 to 298.28.;
267.8(f) The principal amount of (6) a mortgage loan made under a low and moderate income
267.9housing program, or other affordable housing program, if: (i) the mortgagee is a federal,
267.10state, or local government agency.; or (ii) the assignee is a federal, state, or local government
267.11agency;
267.12(g) (7) mortgages granted by fraternal benefit societies subject to section 64B.24.;
267.13(h) (8) a mortgage amendment or extension, as defined in section 287.01.;
267.14(i) (9) an agricultural mortgage if the proceeds of the loan secured by the mortgage are
267.15used to acquire or improve real property classified under section 273.13, subdivision 23,
267.16paragraph (a) or (b).; and
267.17(j) (10) a mortgage on an armory building as set forth in section 193.147.
267.18EFFECTIVE DATE.This section is effective for mortgages recorded after June 30,
267.192021.

267.20    Sec. 11. Minnesota Statutes 2020, section 477A.10, is amended to read:
267.21477A.10 NATURAL RESOURCES LAND PAYMENTS IN LIEU; PURPOSE.
267.22The purposes of sections 477A.11 to 477A.14 and 477A.17 are:
267.23(1) to compensate local units of government for the loss of tax base from state ownership
267.24of land and the need to provide services for state land;
267.25(2) to address the disproportionate impact of state land ownership on local units of
267.26government with a large proportion of state land; and
267.27(3) to address the need to manage state lands held in trust for the local taxing districts.
267.28EFFECTIVE DATE.This section is effective the day following final enactment.


268.4    Section 1. Minnesota Statutes 2020, section 289A.20, subdivision 4, is amended to read:
268.5    Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and payable
268.6to the commissioner monthly on or before the 20th day of the month following the month
268.7in which the taxable event occurred, or following another reporting period as the
268.8commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph (f)
268.9or (g), except that use taxes due on an annual use tax return as provided under section
268.10289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.
268.11    (b) A vendor having a liability of $250,000 or more during a fiscal year ending June 30
268.12must remit the June liability for the next year in the following manner:
268.13    (1) Two business days before June 30 of calendar year 2020 and 2021, the vendor must
268.14remit 87.5 percent of the estimated June liability to the commissioner. Two business days
268.15before June 30 of calendar year 2022 and thereafter, the vendor must remit 84.5 percent of
268.16the estimated June liability to the commissioner.
268.17    (2) On or before August 20 of the year, the vendor must pay any additional amount of
268.18tax not remitted in June.
268.19    (c) A vendor having a liability of:
268.20    (1) $10,000 or more, but less than $250,000 during a fiscal year ending June 30, 2013,
268.21and fiscal years thereafter, must remit by electronic means all liabilities on returns due for
268.22periods beginning in all subsequent calendar years on or before the 20th day of the month
268.23following the month in which the taxable event occurred, or on or before the 20th day of
268.24the month following the month in which the sale is reported under section 289A.18,
268.25subdivision 4; or
268.26(2) $250,000 or more, during a fiscal year ending June 30, 2013, and fiscal years
268.27thereafter, must remit by electronic means all liabilities in the manner provided in paragraph
268.28(a) on returns due for periods beginning in the subsequent calendar year, except for 90
268.29percent the percentage of the estimated June liability, as provided in paragraph (b), clause
268.30(1), which is due two business days before June 30. The remaining amount of the June
268.31liability is due on August 20.
268.32(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's religious
268.33beliefs from paying electronically shall be allowed to remit the payment by mail. The filer
269.1must notify the commissioner of revenue of the intent to pay by mail before doing so on a
269.2form prescribed by the commissioner. No extra fee may be charged to a person making
269.3payment by mail under this paragraph. The payment must be postmarked at least two business
269.4days before the due date for making the payment in order to be considered paid on a timely
269.5basis.
269.6EFFECTIVE DATE.This section is effective the day following final enactment.

269.7    Sec. 2. Minnesota Statutes 2020, section 295.75, subdivision 2, is amended to read:
269.8    Subd. 2. Gross receipts tax imposed. A tax is imposed on each liquor retailer equal to
269.92.5 percent of gross receipts from retail sales in Minnesota of liquor. The liquor retailer
269.10may, but is not required to, collect the tax from the purchaser. If separately stated on the
269.11invoice, bill of sale, or similar document given to the purchaser, the tax is excluded from
269.12the sales price for purposes of the tax imposed under chapter 297A.
269.13EFFECTIVE DATE.This section is effective the day following final enactment.

269.14    Sec. 3. Minnesota Statutes 2020, section 297A.66, subdivision 3, is amended to read:
269.15    Subd. 3. Marketplace provider liability. (a) A marketplace provider is deemed the
269.16retailer or seller for all retail sales it facilitates, and is subject to audit on the retail sales it
269.17facilitates if it is required to collect sales and use taxes and remit them to the commissioner
269.18under subdivision 2, paragraphs (b) and (c).
269.19(b) A marketplace provider is not liable for failing to file, collect, and remit sales and
269.20use taxes to the commissioner if the marketplace provider demonstrates that the error was
269.21due to incorrect or insufficient information given to the marketplace provider by the retailer.
269.22This paragraph does not apply if the marketplace provider and the marketplace retailer are
269.23related as defined in subdivision 4, paragraph (b).
269.24EFFECTIVE DATE.This section is effective the day following final enactment.

269.25    Sec. 4. REPEALER.
269.26Minnesota Statutes 2020, section 270C.17, subdivision 2, is repealed.
269.27EFFECTIVE DATE.This section is effective the day following final enactment.


270.3    Section 1. Minnesota Statutes 2020, section 296A.06, subdivision 2, is amended to read:
270.4    Subd. 2. Suspension of license. (a) Notwithstanding subdivision 1, the license of a
270.5distributor, special fuel dealer, or bulk purchaser that has not filed a tax return or report or
270.6paid a delinquent tax or fee within five days after notice and demand by the commissioner
270.7is suspended. The suspension remains in effect until the demanded tax return or report has
270.8been filed and the tax and fees shown on that return or report have been paid. If the
270.9commissioner determines that the failure to file or failure to pay is due to reasonable cause,
270.10then a license must not be suspended, or if suspended, must be reinstated.
270.11(b) A licensee whose license is suspended under this subdivision may request a contested
270.12case hearing under chapter 14. Any such hearing must be held within 20 days of the issuance
270.13of the notice and demand issued under paragraph (a), unless the parties agree to a later
270.14hearing date. The administrative law judge's report must be issued within 20 days after the
270.15close of the hearing record, unless the parties agree to a later report issuance date. The
270.16commissioner must issue a final decision within 30 days after receipt of the report of the
270.17administrative law judge and subsequent exceptions and argument under section 14.61. The
270.18suspension imposed under paragraph (a) remains in effect during any contested case hearing
270.19process requested pursuant to this paragraph.
270.20EFFECTIVE DATE.This section is effective the day following final enactment.

270.21    Sec. 2. Minnesota Statutes 2020, section 297F.04, subdivision 2, is amended to read:
270.22    Subd. 2. Refusal to issue or renew; revocation. The commissioner must not issue or
270.23renew a license under this chapter, and may revoke a license under this chapter, if the
270.24applicant or licensee:
270.25(1) owes $500 or more in delinquent taxes as defined in section 270C.72, subdivision
270.262;
270.27(2) after demand, has not filed tax returns required by the commissioner;
270.28(3) had a cigarette or tobacco license revoked by the commissioner within the past two
270.29years;
270.30(4) had a sales and use tax permit revoked by the commissioner within the past two
270.31years; or
271.1(5) has been convicted of a crime involving cigarettes or tobacco products, including
271.2but not limited to: selling stolen cigarettes or tobacco products, receiving stolen cigarettes
271.3or tobacco products, or involvement in the smuggling of cigarettes or tobacco products.
271.4EFFECTIVE DATE.This section is effective the day following final enactment.

271.5    Sec. 3. Minnesota Statutes 2020, section 297F.09, subdivision 10, is amended to read:
271.6    Subd. 10. Accelerated tax payment; cigarette or tobacco products distributor. A
271.7cigarette or tobacco products distributor having a liability of $250,000 or more during a
271.8fiscal year ending June 30, shall remit the June liability for the next year in the following
271.9manner:
271.10    (a) Two business days before June 30 of calendar years 2020 and year 2021, the
271.11distributor shall remit the actual May liability and 87.5 percent of the estimated June liability
271.12to the commissioner and file the return in the form and manner prescribed by the
271.13commissioner. Two business days before June 30 of calendar year 2022 and each calendar
271.14year thereafter, the distributor must remit the actual May liability and 84.5 percent of the
271.15estimated June liability to the commissioner and file the return in the form and manner
271.16prescribed by the commissioner.
271.17    (b) On or before August 18 of the year, the distributor shall submit a return showing the
271.18actual June liability and pay any additional amount of tax not remitted in June. A penalty
271.19is imposed equal to ten percent of the amount of June liability required to be paid in June,
271.20less the amount remitted in June. However, the penalty is not imposed if the amount remitted
271.21in June equals the lesser of:
271.22    (1) for calendar year 2021, the lesser of 87.5 percent of the actual June liability for the
271.23that calendar year 2020 and 2021 June liabilities and 84.5 of the actual June liability for
271.24June 2022 and thereafter or 87.5 percent of the May liability for that calendar year; or
271.25    (2) 87.5 for calendar year 2022 and each calendar year thereafter, the lesser of 84.5
271.26percent of the preceding actual June liability for that calendar year or 84.5 percent of the
271.27May liability for the calendar year 2020 and 2021 June liabilities and 84.5 percent of the
271.28preceding May liability for June 2022 and thereafter for that calendar year.
271.29(c) For calendar year 2022 and thereafter, the percent of the estimated June liability the
271.30vendor must remit by two business days before June 30 is 84.5 percent.
271.31EFFECTIVE DATE.This section is effective for estimated payments required to be
271.32made after the date following final enactment.

272.1    Sec. 4. Minnesota Statutes 2020, section 297F.13, subdivision 4, is amended to read:
272.2    Subd. 4. Retailer and subjobber to preserve purchase invoices. Every retailer and
272.3subjobber shall procure itemized invoices of all cigarettes or tobacco products purchased.
272.4The retailer and subjobber shall preserve a legible copy of each invoice for one year
272.5from the date of the invoice or as long as the cigarette or tobacco product listed on the
272.6invoice is available for sale or in their possession, whichever period is longer. The retailer
272.7and subjobber shall preserve copies of the invoices at each retail location or at a central
272.8location provided that the invoice must be produced and made available at a retail location
272.9within one hour when requested by the commissioner or duly authorized agents and
272.10employees. Copies should be numbered and kept in chronological order.
272.11To determine whether the business is in compliance with the provisions of this chapter,
272.12at any time during usual business hours, the commissioner, or duly authorized agents and
272.13employees, may enter any place of business of a retailer or subjobber without a search
272.14warrant and inspect the premises, the records required to be kept under this chapter, and the
272.15packages of cigarettes, tobacco products, and vending devices contained on the premises.
272.16EFFECTIVE DATE.This section is effective for all cigarette and tobacco products
272.17available for sale or in a retailer or subjobber's possession after December 31, 2021.

272.18    Sec. 5. Minnesota Statutes 2020, section 297F.17, subdivision 1, is amended to read:
272.19    Subdivision 1. General rule. Except as otherwise provided in this chapter, the amount
272.20of any tax due must be assessed within 3-1/2 years after a return is filed. The taxes are
272.21considered assessed within the meaning of this section when the commissioner has prepared
272.22a notice of tax assessment and mailed it to the person required to file a return to the post
272.23office address given in the return. The notice of tax assessment must be sent by mail to the
272.24post office address given in the return and the record of the mailing is presumptive evidence
272.25of the giving of such notice, and such records must be preserved by the commissioner.
272.26EFFECTIVE DATE.This section is effective for notices of tax assessment issued after
272.27the date of final enactment.

272.28    Sec. 6. Minnesota Statutes 2020, section 297G.09, subdivision 9, is amended to read:
272.29    Subd. 9. Accelerated tax payment; penalty. A person liable for tax under this chapter
272.30having a liability of $250,000 or more during a fiscal year ending June 30, shall remit the
272.31June liability for the next year in the following manner:
273.1    (a) Two business days before June 30 of calendar years 2020 and year 2021, the taxpayer
273.2shall remit the actual May liability and 87.5 percent of the estimated June liability to the
273.3commissioner and file the return in the form and manner prescribed by the commissioner.
273.4Two business days before June 30 of calendar year 2022 and each calendar year thereafter,
273.5the distributor must remit the actual May liability and 84.5 percent of the estimated June
273.6liability to the commissioner and file the return in the form and manner prescribed by the
273.7commissioner.
273.8    (b) On or before August 18 of the year, the taxpayer shall submit a return showing the
273.9actual June liability and pay any additional amount of tax not remitted in June. A penalty
273.10is imposed equal to ten percent of the amount of June liability required to be paid in June
273.11less the amount remitted in June. However, the penalty is not imposed if the amount remitted
273.12in June equals the lesser of:
273.13    (1) for calendar year 2021, the lesser of 87.5 percent of the actual June liability for the
273.14that calendar year 2020 and 2021 June liabilities and 84.5 percent of the actual June liability
273.15for June 2022 and thereafter or 87.5 percent of the May liability for that calendar year; or
273.16    (2) 87.5 for calendar year 2022 and each calendar year thereafter, the lesser of 84.5
273.17percent of the preceding actual June liability for that calendar year or 84.5 percent of the
273.18May liability for the calendar year 2020 and 2021 June liabilities and 84.5 percent of the
273.19preceding May liability for June 2022 and thereafter for that calendar year.
273.20(c) For calendar year 2022 and thereafter, the percent of the estimated June liability the
273.21vendor must remit by two business days before June 30 is 84.5 percent.
273.22EFFECTIVE DATE.This section is effective for estimated payments required to be
273.23made after the date following final enactment.

273.24    Sec. 7. Minnesota Statutes 2020, section 609B.153, is amended to read:
273.25609B.153 CIGARETTE AND TOBACCO DISTRIBUTOR OR SUBJOBBER
273.26LICENSE; SUSPENSION OR REVOCATION.
273.27Under section 297F.04, the commissioner of revenue must not issue or renew a license
273.28issued under chapter 297F, and may revoke a license issued under chapter 297F, if the
273.29applicant has been convicted of a crime involving cigarettes or tobacco products.
273.30EFFECTIVE DATE.This section is effective the day following final enactment.


274.3    Section 1. Minnesota Statutes 2020, section 270C.22, subdivision 1, is amended to read:
274.4    Subdivision 1. Adjustment; definition; period; rounding. (a) The commissioner shall
274.5annually make a cost of living adjustment to the dollar amounts noted in sections that
274.6reference this section. The commissioner shall adjust the amounts based on the index as
274.7provided in this section. For purposes of this section, "index" means the Chained Consumer
274.8Price Index for All Urban Consumers published by the Bureau of Labor Statistics. The
274.9values of the index used to determine the adjustments under this section are the latest
274.10published values when the Bureau of Labor Statistics publishes the initial value of the index
274.11for August of the year preceding the year to which the adjustment applies.
274.12(b) For the purposes of this section, "statutory year" means the year preceding the first
274.13year for which dollar amounts are to be adjusted for inflation under sections that reference
274.14this section. For adjustments under chapter 290A, the statutory year refers to the year in
274.15which a taxpayer's household income used to calculate refunds under chapter 290A was
274.16earned and not the year in which refunds are payable. For all other adjustments, the statutory
274.17year refers to the taxable year unless otherwise specified.
274.18(c) To determine the dollar amounts for taxable year 2020, the commissioner shall
274.19determine the percentage change in the index for the 12-month period ending on August
274.2031, 2019, and increase each of the unrounded dollar amounts in the sections referencing
274.21this section by that percentage change. For each subsequent taxable year, the commissioner
274.22shall increase the dollar amounts by the percentage change in the index from August 31 of
274.23the year preceding the statutory year to August 31 of the year preceding the taxable year.
274.24(d) To determine the dollar amounts for refunds payable in 2020 under chapter 290A,
274.25the commissioner shall determine the percentage change in the index for the 12-month
274.26period ending on August 31, 2019, and increase each of the unrounded dollar amounts in
274.27the sections referencing this section by that percentage change. For each subsequent year,
274.28the commissioner shall increase the dollar amounts by the percentage change in the index
274.29from August 31 of the year preceding the statutory year to August 31 of the year preceding
274.30the year in which refunds are payable.
274.31(e) Unless otherwise provided, the commissioner shall round the amounts as adjusted
274.32to the nearest $10 amount. If an amount ends in $5, the amount is rounded up to the nearest
274.33$10 amount.
275.1EFFECTIVE DATE.This section is effective retroactively for property tax refunds
275.2based on property taxes payable in 2020, and rent paid in 2019.

275.3    Sec. 2. Minnesota Statutes 2020, section 270C.445, subdivision 3, is amended to read:
275.4    Subd. 3. Standards of conduct. No tax preparer shall:
275.5(1) without good cause fail to promptly, diligently, and without unreasonable delay
275.6complete a client's return;
275.7(2) obtain the signature of a client to a return or authorizing document that contains
275.8blank spaces to be filled in after it has been signed;
275.9(3) fail to sign a client's return when compensation for services rendered has been made;
275.10(4) fail to provide on a client's return the preparer tax identification number when required
275.11under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28;
275.12(5) fail or refuse to give a client a copy of any document requiring the client's signature
275.13within a reasonable time after the client signs the document;
275.14(6) fail to retain for at least four years a copy of a client's returns;
275.15(7) fail to maintain a confidential relationship with clients or former clients;
275.16(8) fail to take commercially reasonable measures to safeguard a client's nonpublic
275.17personal information;
275.18(9) make, authorize, publish, disseminate, circulate, or cause to make, either directly or
275.19indirectly, any false, deceptive, or misleading statement or representation relating to or in
275.20connection with the offering or provision of tax preparation services;
275.21(10) require a client to enter into a loan arrangement in order to complete a client's return;
275.22(11) claim credits or deductions on a client's return for which the tax preparer knows or
275.23reasonably should know the client does not qualify;
275.24(12) report a household income on a client's claim filed under chapter 290A that the tax
275.25preparer knows or reasonably should know is not accurate;
275.26(13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision
275.2713, 20, 20a, 26, or 28;
275.28(14) whether or not acting as a taxpayer representative, fail to conform to the standards
275.29of conduct required by Minnesota Rules, part 8052.0300, subpart 4;
276.1(15) whether or not acting as a taxpayer representative, engage in any conduct that is
276.2incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;
276.3(16) whether or not acting as a taxpayer representative, engage in any conduct that is
276.4disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;
276.5(17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated
276.6refund for tax preparation services;
276.7(18) under any circumstances, withhold or fail to return to a client a document provided
276.8by the client for use in preparing the client's return;
276.9(19) establish take control or ownership of a client's refund by any means, including:
276.10(i) directly or indirectly endorsing or otherwise negotiating a check or other refund
276.11instrument, including an electronic version of a check;
276.12(ii) directing an electronic or direct deposit of the refund into an account unless the
276.13client's name is on the account; and
276.14(iii) establishing or using an account in the preparer's name to receive a client's refund
276.15through a direct deposit or any other instrument unless the client's name is also on the
276.16account, except that a taxpayer may assign the portion of a refund representing the Minnesota
276.17education credit available under section 290.0674 to a bank account without the client's
276.18name, as provided under section 290.0679;
276.19(20) fail to act in the best interests of the client;
276.20(21) fail to safeguard and account for any money handled for the client;
276.21(22) fail to disclose all material facts of which the preparer has knowledge which might
276.22reasonably affect the client's rights and interests;
276.23(23) violate any provision of section 332.37;
276.24(24) include any of the following in any document provided or signed in connection
276.25with the provision of tax preparation services:
276.26(i) a hold harmless clause;
276.27(ii) a confession of judgment or a power of attorney to confess judgment against the
276.28client or appear as the client in any judicial proceeding;
276.29(iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against
276.30a debtor;
277.1(iv) an assignment of or an order for payment of wages or other compensation for
277.2services;
277.3(v) a provision in which the client agrees not to assert any claim or defense otherwise
277.4available;
277.5(vi) a waiver of any provision of this section or a release of any obligation required to
277.6be performed on the part of the tax preparer; or
277.7(vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on
277.8a class basis; or
277.9(25) if making, providing, or facilitating a refund anticipation loan, fail to provide all
277.10disclosures required by the federal Truth in Lending Act, United States Code, title 15, in a
277.11form that may be retained by the client.
277.12EFFECTIVE DATE.This section is effective the day following final enactment."
277.13Amend the title accordingly