STATE OF
MINNESOTA
Journal of the House
EIGHTY-SEVENTH
SESSION - 2012
_____________________
ONE
HUNDRED EIGHTEENTH DAY
Saint Paul, Minnesota, Wednesday, May 9, 2012
The House of Representatives convened at
1:00 p.m. and was called to order by Speaker pro tempore Davids.
Prayer was offered by the Reverend Grady
St. Dennis, House Chaplain.
The members of the House gave the pledge
of allegiance to the flag of the United States of America.
The roll was called and the following
members were present:
Abeler
Allen
Anderson, B.
Anderson, D.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Banaian
Beard
Benson, J.
Benson, M.
Bills
Brynaert
Buesgens
Carlson
Champion
Cornish
Crawford
Daudt
Davids
Davnie
Dean
Dettmer
Dill
Dittrich
Doepke
Downey
Drazkowski
Eken
Erickson
Fabian
Falk
Franson
Fritz
Garofalo
Gauthier
Gottwalt
Greene
Greiling
Gruenhagen
Gunther
Hackbarth
Hamilton
Hancock
Hansen
Hausman
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Johnson
Kahn
Kath
Kelly
Kieffer
Kiel
Kiffmeyer
Knuth
Kriesel
Laine
Lanning
Leidiger
LeMieur
Lenczewski
Lesch
Liebling
Lillie
Loeffler
Lohmer
Loon
Mack
Mahoney
Marquart
McDonald
McElfatrick
McFarlane
McNamara
Melin
Moran
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Murray
Myhra
Nelson
Nornes
Norton
O'Driscoll
Paymar
Pelowski
Peppin
Persell
Petersen, B.
Poppe
Quam
Rukavina
Runbeck
Sanders
Scalze
Schomacker
Scott
Shimanski
Simon
Slawik
Slocum
Smith
Stensrud
Swedzinski
Thissen
Tillberry
Torkelson
Urdahl
Vogel
Wagenius
Ward
Wardlow
Westrom
Winkler
Woodard
Spk. Zellers
A quorum was present.
Huntley and Peterson, S., were excused.
Barrett and
Clark were excused until 2:40 p.m.
Mariani was excused until 2:35 p.m.
Mazorol was excused until 4:05 p.m.
The Chief Clerk proceeded to read the
Journal of the preceding day. There
being no objection, further reading of the Journal was dispensed with and the
Journal was approved as corrected by the Chief Clerk.
PETITIONS AND COMMUNICATIONS
The following communication was received:
STATE OF
MINNESOTA
OFFICE OF
THE SECRETARY OF STATE
ST. PAUL
55155
The Honorable Kurt Zellers
Speaker of the House of
Representatives
The Honorable Michelle L.
Fischbach
President of the Senate
I have the honor to inform you that the
following enrolled Act of the 2012 Session of the State Legislature has been
received from the Office of the Governor and is deposited in the Office of the
Secretary of State for preservation, pursuant to the State Constitution,
Article IV, Section 23:
S. F. No. |
H. F. No. |
Session Laws Chapter No. |
Time and Date Approved 2012 |
Date Filed 2012 |
506 283 11:45 a.m.
May 7 May 7
Sincerely,
Mark
Ritchie
Secretary
of State
INTRODUCTION AND FIRST READING OF HOUSE BILLS
The
following House Files were introduced:
Anderson, S., introduced:
H. F. No. 3049, A bill for an act relating to economic
development; science and technology; creating a technology transfer corporate
tax exemption for certain licensing agreements; amending Minnesota Statutes
2010, section 290.01, subdivision 19d; proposing coding for new law in
Minnesota Statutes, chapter 116J.
The bill was read for the first time and referred to the
Committee on Jobs and Economic Development Finance.
Fritz, Slawik, Hausman, Mullery, Greene, Liebling and Allen
introduced:
H. F. No. 3050, A bill for an act relating to child care;
modifying a child care licensure requirement; amending Minnesota Statutes 2010,
section 245A.1435.
The bill was read for the first time and referred to the
Committee on Health and Human Services Reform.
Clark introduced:
H. F. No. 3051, A bill for an act relating to food safety;
regulating genetically engineered food; authorizing rulemaking; requiring a
report; proposing coding for new law in Minnesota Statutes, chapter 31.
The bill was read for the first time and referred to the
Committee on Agriculture and Rural Development Policy and Finance.
Hamilton moved that the House recess
subject to the call of the Chair. The
motion prevailed.
RECESS
RECONVENED
The House reconvened and was called to
order by Speaker pro tempore Anderson, S.
Thissen was excused between the hours of
2:10 p.m. and 3:40 p.m.
Morrow was excused between the hours of
2:10 p.m. and 1:00 a.m.
MESSAGES FROM
THE SENATE
The
following messages were received from the Senate:
Mr. Speaker:
I hereby announce that the Senate accedes to the request of the House for the appointment of a Conference Committee on the amendments adopted by the Senate to the following House File:
H. F. No. 247, A bill for an act relating to taxation; providing for voluntary contributions to the state on the income tax form; proposing coding for new law in Minnesota Statutes, chapter 290.
The Senate has appointed as such committee:
Senators Ortman, Limmer and Michel.
Said House File is herewith returned to the House.
Cal R. Ludeman, Secretary of the Senate
Mr. Speaker:
I hereby announce the following change in the membership of the Conference Committee on H. F. No. 2958:
The names of Robling and Skoe have been stricken, and the names of Rosen and Reinert have been added.
H. F. No. 2958, A bill for an act relating to finance; modifying the membership of the Legislative Advisory Commission; authorizing the Legislative Advisory Commission to review requests to spend federal money; limiting the authority to spend federal money without legislative review to certain emergency management purposes; providing for the validation of certain appropriation bonds; establishing an apprenticeship and on-the-job training program to administer a portion of the Minnesota GI Bill program; eliminating a surcharge on special veteran's plates for certain trucks; appropriating money for honor guards, soft body armor, and disaster deficiency; amending Minnesota Statutes 2010, sections 3.30, subdivision 2; 3.3005, subdivisions 2a, 4, 5, 6, by adding a subdivision; 12.22, subdivision 1; 116.03, subdivision 3; 197.791, subdivision 6, by adding a subdivision; Minnesota Statutes 2011 Supplement, sections 16A.96, by adding a subdivision; 168.123, subdivision 1.
Cal R. Ludeman, Secretary of the Senate
Mr. Speaker:
I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:
H. F. No. 2690, A bill for
an act relating to taxation; making technical, administrative, and clarifying
changes to individual income, corporate franchise, estate, property, sales and
use, special, mineral, and various taxes and tax-related provisions; amending
Minnesota Statutes 2010, sections 16C.16, subdivision 7; 41A.036, subdivision
2; 117.025, subdivision 10; 216C.436, subdivisions 7, 8; 270B.14, subdivision
3; 272.02, subdivision 77; 273.13, subdivision 24; 273.1398, subdivision 4;
276A.01, subdivision 3; 289A.10, by adding a subdivision; 289A.12, by adding a
subdivision; 289A.18, by adding a subdivision; 289A.20, subdivision 3, by
adding a subdivision; 290.01, subdivision 29; 290.067, subdivision 1; 290.0921,
subdivision 3; 373.40, subdivisions 1, 2, 4; 469.015, subdivision 4; 469.033,
subdivision 7; 469.166, subdivisions 3, 5, 6; 469.167, subdivision 2; 469.171,
subdivisions 1, 4, 7, 9, 11; 469.172; 469.173, subdivisions 5, 6; 469.174,
subdivisions 20, 25; 469.176, subdivision 7; 469.1763, subdivision 6; 469.1764,
subdivision 1; 469.177, subdivision 1; 469.1793; 469.1813, subdivision 6b;
473F.02, subdivision 3; 474A.02, subdivision 23a; 475.521, subdivisions 2, 4;
475.58, subdivision 3b; Minnesota Statutes 2011 Supplement, sections 290.01,
subdivision 19b; 290.06, subdivision 2c; 290.0671, subdivision 1; 290.091,
subdivision 2; 290.0922, subdivisions 2, 3; 291.03, subdivisions 8, 9, 10, 11;
297A.75, subdivision 1; repealing Minnesota Statutes 2010, sections 272.02,
subdivision 83; 290.06, subdivisions 24, 32; 297A.68, subdivision 41; 469.042,
subdivisions 2, 3, 4; 469.043; 469.059, subdivision 13; 469.129; 469.134;
469.162, subdivision 2; 469.1651; 469.166, subdivisions 7, 8, 9, 10, 11, 12;
469.167, subdivisions 1, 3; 469.168; 469.169, subdivisions 1, 2, 3, 4, 5, 6, 7,
8, 9, 10, 11, 13; 469.170, subdivisions 1, 2, 3, 4, 5, 5a, 5b, 5c, 5d, 5e, 6,
7, 8; 469.171, subdivisions 2, 5, 6a, 6b; 469.173, subdivisions 1, 3; 469.1765;
469.1791; 469.1799, subdivision 2; 469.301, subdivisions 1, 2, 3, 4, 5;
469.302; 469.303; 469.304; 469.321;
469.3215; 469.322; 469.323; 469.324; 469.325; 469.326; 469.327; 469.328; 469.329; 473.680.
Cal R. Ludeman, Secretary of the Senate
CONCURRENCE AND REPASSAGE
Davids moved that the House concur in the
Senate amendments to H. F. No. 2690 and that the bill be
repassed as amended by the Senate. The
motion prevailed.
H. F. No. 2690, A bill for an act relating to financing of state and local government; making changes to individual income, corporate franchise, property, sales and use, and other taxes and tax-related provisions; providing a supplemental targeting refund; modifying city aid payments and exempting certain cities from 2011 aid payment penalties; making technical, minor, and clarifying changes in enterprise zone and economic development powers and eliminating obsolete provisions; requiring a funds transfer; appropriating money; amending Minnesota Statutes 2010, sections 16C.16, subdivision 7; 41A.036, subdivision 2; 117.025, subdivision 10; 270B.14, subdivision 3; 272.02, subdivision 77; 273.13, subdivision 24; 273.1398, subdivision 4; 276A.01, subdivision 3; 290.01, subdivision 29; 290.067, subdivision 1; 290.0921, subdivision 3; 469.015, subdivision 4; 469.033, subdivision 7; 469.166, subdivisions 3, 5, 6; 469.167, subdivision 2; 469.171, subdivisions 1, 4, 6a, 7, 9, 11; 469.172; 469.173, subdivisions 5, 6; 469.174, subdivisions 20, 25; 469.176, subdivision 7; 469.1763, subdivision 6; 469.1764, subdivision 1; 469.177, subdivision 1; 469.1793; 469.1813, subdivision 6b; 473F.02, subdivision 3; 477A.011, subdivision 36; 477A.013, by adding a subdivision; Minnesota Statutes 2011 Supplement, sections 290.01, subdivision 19b; 290.06, subdivision 2c; 290.0671, subdivision 1; 290.091, subdivision 2; 290.0922, subdivisions 2, 3; 297A.75, subdivision 1; 477A.013, subdivision 9; repealing Minnesota Statutes 2010, sections 272.02, subdivision 83; 290.06, subdivisions 24, 32; 297A.68, subdivision 41; 469.042, subdivisions 2, 3, 4; 469.043; 469.059, subdivision 13; 469.129; 469.134; 469.162, subdivision 2; 469.1651; 469.166, subdivisions 7, 8, 9, 10, 11, 12; 469.167, subdivisions 1, 3; 469.168; 469.169, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13; 469.170, subdivisions 1, 2, 3, 4, 5, 5a, 5b, 5c, 5d, 5e, 6, 7, 8; 469.171, subdivisions 2, 5, 6b; 469.173, subdivisions 1, 3; 469.1765; 469.1791; 469.1799, subdivision 2; 469.301, subdivisions 1, 2, 3, 4, 5; 469.302; 469.303; 469.304; 469.321; 469.3215; 469.322; 469.323; 469.324; 469.325; 469.326; 469.327; 469.328; 469.329; 473.680.
The bill was read for the third time, as
amended by the Senate, and placed upon its repassage.
The question was taken on the repassage of
the bill and the roll was called. There
were 99 yeas and 30 nays as follows:
Those who voted in the affirmative were:
Abeler
Anderson, B.
Anderson, D.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Banaian
Barrett
Beard
Benson, J.
Benson, M.
Bills
Brynaert
Carlson
Cornish
Crawford
Daudt
Davids
Davnie
Dean
Dettmer
Dill
Doepke
Downey
Drazkowski
Eken
Erickson
Fabian
Falk
Franson
Fritz
Garofalo
Gottwalt
Gruenhagen
Gunther
Hackbarth
Hamilton
Hancock
Holberg
Hoppe
Hornstein
Howes
Johnson
Kath
Kelly
Kieffer
Kiel
Kiffmeyer
Knuth
Kriesel
Lanning
Leidiger
LeMieur
Liebling
Lillie
Lohmer
Loon
Mack
McDonald
McElfatrick
McFarlane
McNamara
Melin
Mullery
Murdock
Murray
Myhra
Nornes
Norton
O'Driscoll
Paymar
Pelowski
Peppin
Persell
Petersen, B.
Poppe
Quam
Rukavina
Runbeck
Sanders
Scalze
Schomacker
Scott
Shimanski
Slawik
Slocum
Smith
Stensrud
Swedzinski
Thissen
Torkelson
Urdahl
Vogel
Ward
Wardlow
Westrom
Woodard
Spk. Zellers
Those who voted in the negative were:
Allen
Buesgens
Champion
Clark
Dittrich
Gauthier
Greene
Greiling
Hansen
Hausman
Hilstrom
Hilty
Hortman
Hosch
Kahn
Laine
Lenczewski
Lesch
Loeffler
Mahoney
Mariani
Marquart
Moran
Murphy, E.
Murphy, M.
Nelson
Simon
Tillberry
Wagenius
Winkler
The bill was repassed, as amended by the
Senate, and its title agreed to.
The
following Conference Committee Report was received:
CONFERENCE COMMITTEE REPORT ON H. F. No. 247
A bill for an act relating to taxation; providing for voluntary contributions to the state on the income tax form; proposing coding for new law in Minnesota Statutes, chapter 290.
May 9, 2012
The Honorable Kurt Zellers
Speaker of the House of Representatives
The Honorable Michelle L. Fischbach
President of the Senate
We, the undersigned conferees for H. F. No. 247 report that we have agreed upon the items in dispute and recommend as follows:
That the Senate recede from its amendments and that H. F. No. 247 be further amended as follows:
Delete everything after the enacting clause and insert:
"ARTICLE 1
DEPARTMENT POLICY AND TECHNICAL: INCOME AND CORPORATE FRANCHISE TAXES
Section 1. Minnesota Statutes 2010, section 289A.02, is amended by adding a subdivision to read:
Subd. 9. Field audit. "Field audit" means the physical presence of examiners in the taxpayer's or taxpayer's representative's office conducting an examination of the taxpayer with the intention of issuing an assessment or notice of change in tax or which results in the issuing of an assessment or notice of change in tax. The examination may include inspecting a taxpayer's place of business, tangible personal property, equipment, computer systems and facilities, pertinent books, records, papers, vouchers, computer printouts, accounts, and documents.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2010, section 289A.26, subdivision 3, is amended to read:
Subd. 3. Short taxable year. (a) A corporation or an entity with a short taxable year of less than 12 months, but at least four months, must pay estimated tax in equal installments on or before the 15th day of the third, sixth, ninth, and final month of the short taxable year, to the extent applicable based on the number of months in the short taxable year.
(b) A corporation or an entity is not required to make estimated tax payments for a short taxable year unless its tax liability before the first day of the last month of the taxable year can reasonably be expected to exceed $500.
(c) No payment is required for a short taxable year of less than four months.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2010, section 289A.26, subdivision 4, is amended to read:
Subd. 4. Underpayment of estimated tax. If there is an underpayment of estimated tax by a corporation or an entity, there shall be added to the tax for the taxable year an amount determined at the rate in section 270C.40 on the amount of the underpayment, determined under subdivision 5, for the period of the underpayment determined under subdivision 6. This subdivision does not apply in the first taxable year that a corporation is subject to the tax imposed under section 290.02 or an entity is subject to the tax imposed under section 290.05, subdivision 3.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2010, section 289A.26, subdivision 7, is amended to read:
Subd. 7. Required installments. (a) Except as otherwise provided in this subdivision, the amount of a required installment is 25 percent of the required annual payment.
(b) Except as otherwise provided in this subdivision, the term "required annual payment" means the lesser of:
(1) 100 percent of the tax shown on the return for the taxable year, or, if no return is filed, 100 percent of the tax for that year; or
(2) 100 percent of the tax shown on the return of the corporation or entity for the preceding taxable year provided the return was for a full 12-month period, showed a liability, and was filed by the corporation or entity.
(c) Except for determining the first required installment for any taxable year, paragraph (b), clause (2), does not apply in the case of a large corporation. The term "large corporation" means a corporation or any predecessor corporation that had taxable net income of $1,000,000 or more for any taxable year during the testing period. The term "testing period" means the three taxable years immediately preceding the taxable year involved. A reduction allowed to a large corporation for the first installment that is allowed by applying paragraph (b), clause (2), must be recaptured by increasing the next required installment by the amount of the reduction.
(d) In the case of a required installment, if the corporation or entity establishes that the annualized income installment is less than the amount determined in paragraph (a), the amount of the required installment is the annualized income installment and the recapture of previous quarters' reductions allowed by this paragraph must be recovered by increasing later required installments to the extent the reductions have not previously been recovered.
(e) The "annualized income installment" is the excess, if any, of:
(1) an amount equal to the applicable percentage of the tax for the taxable year computed by placing on an annualized basis the taxable income:
(i) for the first two months of the taxable year, in the case of the first required installment;
(ii) for the first two months or for the first five months of the taxable year, in the case of the second required installment;
(iii) for the first six months or for the first eight months of the taxable year, in the case of the third required installment; and
(iv) for the first nine months or for the first 11 months of the taxable year, in the case of the fourth required installment, over
(2) the aggregate amount of any prior required installments for the taxable year.
(3) For the purpose of this paragraph, the annualized income shall be computed by placing on an annualized basis the taxable income for the year up to the end of the month preceding the due date for the quarterly payment multiplied by 12 and dividing the resulting amount by the number of months in the taxable year (2, 5, 6, 8, 9, or 11 as the case may be) referred to in clause (1).
(4) The "applicable percentage" used in clause (1) is:
For the following required installments: |
The applicable percentage is: |
|||
|
|
|
||
|
1st |
25 |
|
|
|
2nd |
50 |
|
|
|
3rd |
75 |
|
|
|
4th |
100 |
|
|
(f)(1) If this paragraph applies, the amount determined for any installment must be determined in the following manner:
(i) take the taxable income for the months during the taxable year preceding the filing month;
(ii) divide that amount by the base period percentage for the months during the taxable year preceding the filing month;
(iii) determine the tax on the amount determined under item (ii); and
(iv) multiply the tax computed under item (iii) by the base period percentage for the filing month and the months during the taxable year preceding the filing month.
(2) For purposes of this paragraph:
(i) the "base period percentage" for a period of months is the average percent that the taxable income for the corresponding months in each of the three preceding taxable years bears to the taxable income for the three preceding taxable years;
(ii) the term "filing month" means the month in which the installment is required to be paid;
(iii) this paragraph only applies if the base period percentage for any six consecutive months of the taxable year equals or exceeds 70 percent; and
(iv) the commissioner may provide by rule for the determination of the base period percentage in the case of reorganizations, new corporations or entities, and other similar circumstances.
(3) In the case of a required installment determined under this paragraph, if the corporation or entity determines that the installment is less than the amount determined in paragraph (a), the amount of the required installment is the amount determined under this paragraph and the recapture of previous quarters' reductions allowed by this paragraph must be recovered by increasing later required installments to the extent the reductions have not previously been recovered.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. Minnesota Statutes 2010, section 289A.26, subdivision 9, is amended to read:
Subd. 9. Failure to file an estimate. In the case of a corporation or an entity that fails to file an estimated tax for a taxable year when one is required, the period of the underpayment runs from the four installment dates in subdivision 2 or 3, whichever applies, to the earlier of the periods in subdivision 6, clauses (1) and (2).
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 6. Minnesota Statutes 2010, section 289A.38, subdivision 7, is amended to read:
Subd. 7. Federal
tax changes. If the amount of
income, items of tax preference, deductions, or credits for any year of a
taxpayer, or the wages paid by a taxpayer for any period, as reported to the
Internal Revenue Service is changed or corrected by the commissioner of
Internal Revenue or other officer of the United States or other competent
authority, or where a renegotiation of a contract or subcontract with the
United States results in a change in income, items of tax preference,
deductions, credits, or withholding tax, or, in the case of estate tax, where
there are adjustments to the taxable estate, the taxpayer shall report the
change or correction or renegotiation results in writing to the commissioner of
revenue. The report must be submitted
within 180 days after the final determination and must be in the form of
either an amended Minnesota estate, withholding tax, corporate franchise tax,
or income tax return conceding the accuracy of the federal determination or a
letter detailing how the federal determination is incorrect or does not change
the Minnesota tax. An amended Minnesota
income tax return must be accompanied by an amended property tax refund return,
if necessary. A taxpayer filing an
amended federal tax return must also file a copy of the amended return with the
commissioner of revenue within 180 days after filing the amended return.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 7. Minnesota Statutes 2010, section 289A.38, subdivision 8, is amended to read:
Subd. 8. Failure
to report change or correction of federal return Time requirement to
report federal tax changes. If
a taxpayer fails to make a report as required by subdivision 7, the
commissioner may recompute the tax, including a refund, based on information
available to the commissioner. The tax
may be recomputed within six years after the report should have been filed,
notwithstanding any period of limitations to the contrary. A taxpayer must submit the report or file
the amended return required by subdivision 7 within 180 days after the final
determination by the commissioner of internal revenue or other officer of the
United States or other competent authority of a change or correction of the
person's federal tax return or the filing of an amended federal tax return.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2010, section 289A.38, subdivision 9, is amended to read:
Subd. 9. Report
made of change or correction of federal return Limitations on time for
assessment for federal tax changes. (a)
If a taxpayer is required to make a submits the report under
or files the amended return as required by subdivision 7, and does
report the change or files a copy of the amended return at any time
within six years after the time period provided by subdivision 8, the
commissioner may recompute and reassess the tax due,
including a refund (1) within one year after the report or amended return is filed with the commissioner, notwithstanding any period of limitations to the contrary, or (2) within any other applicable period stated in this section, whichever period is longer. The period provided for the carryback of any amount of loss or credit is also extended as provided in this subdivision, notwithstanding any law to the contrary.
(b) If a taxpayer fails to submit the
report or file the amended return as required by subdivision 7, the
commissioner may recompute the tax, including a refund, based on information
available to the commissioner. The tax
may be recomputed within six years after the time period provided by
subdivision 8, notwithstanding any period of limitations to the contrary.
(c) If the commissioner has completed a field audit of the taxpayer, and, but for this subdivision, the commissioner's time period to adjust the tax has expired, the additional tax due or refund is limited to only those changes that are required to be made to the return which relate to the changes made on the federal return. This subdivision does not apply to sales and use tax.
For purposes of this subdivision and section
289A.42, subdivision 2, a "field audit" is the physical presence of
examiners in the taxpayer's or taxpayer's representative's office conducting an
examination of the taxpayer with the intention of issuing an assessment or
notice of change in tax or which results in the issuing of an assessment or
notice of change in tax. The examination
may include inspecting a taxpayer's place of business, tangible personal
property, equipment, computer systems and facilities, pertinent books, records,
papers, vouchers, computer printouts, accounts, and documents.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 9. Minnesota Statutes 2010, section 289A.42, subdivision 2, is amended to read:
Subd. 2. Federal extensions. When a taxpayer consents to an extension of time for the assessment of federal withholding or income taxes, the period in which the commissioner may recompute the tax is also extended, notwithstanding any period of limitations to the contrary, as follows:
(1) for the periods provided in section 289A.38, subdivisions 8 and 9;
(2) for six months following the
expiration of the extended federal period of limitations when no change is made
by the federal authority. If no change
is made by the federal authority, and, but for this subdivision, the
commissioner's time period to adjust the tax has expired, and if the
commissioner has completed a field audit of the taxpayer, no additional changes
resulting in additional tax due or a refund may be made. For purposes of this subdivision,
"field audit" has the meaning given it in section 289A.38,
subdivision 9.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 10. Minnesota Statutes 2010, section 289A.60, subdivision 24, is amended to read:
Subd. 24. Penalty
for failure to notify of federal change.
If a person fails to report to the commissioner a change or
correction of the person's federal return in the manner prescribed by
section 289A.38, subdivision 7, and within the 180-day time period
prescribed in section 289A.38, subdivision 7 8, there must be
added to the tax an amount equal to ten percent of the amount of any
underpayment of Minnesota tax attributable to the federal change.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 11. Minnesota Statutes 2010, section 290.01, subdivision 6b, is amended to read:
Subd. 6b. Foreign operating corporation. The term "foreign operating corporation," when applied to a corporation, means a domestic corporation with the following characteristics:
(1) it is part of a unitary business at least one member of which is taxable in this state;
(2) it is not a foreign sales corporation under section 922 of the Internal Revenue Code, as amended through December 31, 1999, for the taxable year;
(3) it is not an interest charge domestic international sales corporation under sections 992, 993, 994, and 995 of the Internal Revenue Code;
(4) either (i) it has in effect a valid
election under section 936 of the Internal Revenue Code; or (ii) at least
80 percent of the gross income from all sources of the corporation in the tax
year is active foreign business income; and
(5) for purposes of this subdivision, active foreign business income means gross income that is (i) derived from sources without the United States, as defined in subtitle A, chapter 1, subchapter N, part 1, of the Internal Revenue Code; and (ii) attributable to the active conduct of a trade or business in a foreign country.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2011.
Sec. 12. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19b, is amended to read:
Subd. 19b. Subtractions from federal taxable income. For individuals, estates, and trusts, there shall be subtracted from federal taxable income:
(1) net interest income on obligations of any authority, commission, or instrumentality of the United States to the extent includable in taxable income for federal income tax purposes but exempt from state income tax under the laws of the United States;
(2) if included in federal taxable income, the amount of any overpayment of income tax to Minnesota or to any other state, for any previous taxable year, whether the amount is received as a refund or as a credit to another taxable year's income tax liability;
(3) the amount paid to others, less the amount used to claim the credit allowed under section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and transportation of each qualifying child in attending an elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory attendance laws, which is not operated for profit, and which adheres to the provisions of the Civil Rights Act of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, "textbooks" includes books and other instructional materials and equipment purchased or leased for use in elementary and secondary schools in teaching only those subjects legally and commonly taught in public elementary and secondary schools in this state. Equipment expenses qualifying for deduction includes expenses as defined and limited in section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional books and materials used in the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship, nor does it include books or materials for, or transportation to, extracurricular activities including sporting events, musical or dramatic events, speech activities, driver's education, or similar programs. No deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or the qualifying child's vehicle to provide such transportation for a qualifying child. For purposes of the subtraction provided by this clause, "qualifying child" has the meaning given in section 32(c)(3) of the Internal Revenue Code;
(4) income as provided under section 290.0802;
(5) to the extent included in federal adjusted gross income, income realized on disposition of property exempt from tax under section 290.491;
(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) of the Internal Revenue Code in determining federal taxable income by an individual who does not itemize deductions for federal income tax purposes for the taxable year, an amount equal to 50 percent of the excess of charitable contributions over $500 allowable as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, under the provisions of Public Law 109-1 and Public Law 111-126;
(7) for individuals who are allowed a federal foreign tax credit for taxes that do not qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover of subnational foreign taxes for the taxable year, but not to exceed the total subnational foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, "federal foreign tax credit" means the credit allowed under section 27 of the Internal Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed under section 904(c) of the Internal Revenue Code minus national level foreign taxes to the extent they exceed the federal foreign tax credit;
(8) in each of the five tax years
immediately following the tax year in which an addition is required under
subdivision 19a, clause (7), or 19c, clause (15) (14) , in the
case of a shareholder of a corporation that is an S corporation, an amount
equal to one-fifth of the delayed depreciation.
For purposes of this clause, "delayed depreciation" means the
amount of the addition made by the taxpayer under subdivision 19a, clause (7),
or subdivision 19c, clause (15) (14) , in the case of a
shareholder of an S corporation, minus the positive value of any net operating
loss under section 172 of the Internal Revenue Code generated for the tax year
of the addition. The resulting delayed
depreciation cannot be less than zero;
(9) job opportunity building zone income as provided under section 469.316;
(10) to the extent included in federal taxable income, the amount of compensation paid to members of the Minnesota National Guard or other reserve components of the United States military for active service, excluding compensation for services performed under the Active Guard Reserve (AGR) program. For purposes of this clause, "active service" means (i) state active service as defined in section 190.05, subdivision 5a, clause (1); or (ii) federally funded state active service as defined in section 190.05, subdivision 5b, but "active service" excludes service performed in accordance with section 190.08, subdivision 3;
(11) to the extent included in federal taxable income, the amount of compensation paid to Minnesota residents who are members of the armed forces of the United States or United Nations for active duty performed under United States Code, title 10; or the authority of the United Nations;
(12) an amount, not to exceed $10,000, equal to qualified expenses related to a qualified donor's donation, while living, of one or more of the qualified donor's organs to another person for human organ transplantation. For purposes of this clause, "organ" means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; "human organ transplantation" means the medical procedure by which transfer of a human organ is made from the body of one person to the body of another person; "qualified expenses" means unreimbursed expenses for both the individual and the qualified donor for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses may be subtracted under this clause only once; and "qualified donor" means the individual or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An individual may claim the subtraction in this clause for each instance of organ donation for transplantation during the taxable year in which the qualified expenses occur;
(13) in each of the five tax
years immediately following the tax year in which an addition is required under
subdivision 19a, clause (8), or 19c, clause (16) (15) , in the
case of a shareholder of a corporation that is an S corporation, an amount
equal to one-fifth of the addition made by the taxpayer under subdivision 19a,
clause (8), or 19c, clause (16) (15) , in the case of a
shareholder of a corporation that is an S corporation, minus the positive value
of any net operating loss under section 172 of the Internal Revenue Code
generated for the tax year of the addition.
If the net operating loss exceeds the addition for the tax year, a
subtraction is not allowed under this clause;
(14) to the extent included in the federal taxable income of a nonresident of Minnesota, compensation paid to a service member as defined in United States Code, title 10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2);
(15) international economic development zone income as provided under section 469.325;
(16) to the extent included in federal taxable income, the amount of national service educational awards received from the National Service Trust under United States Code, title 42, sections 12601 to 12604, for service in an approved Americorps National Service program;
(17) to the extent included in federal taxable income, discharge of indebtedness income resulting from reacquisition of business indebtedness included in federal taxable income under section 108(i) of the Internal Revenue Code. This subtraction applies only to the extent that the income was included in net income in a prior year as a result of the addition under section 290.01, subdivision 19a, clause (16); and
(18) the amount of the net operating loss allowed under section 290.095, subdivision 11, paragraph (c).
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2011.
Sec. 13. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19c, is amended to read:
Subd. 19c. Corporations; additions to federal taxable income. For corporations, there shall be added to federal taxable income:
(1) the amount of any deduction taken for federal income tax purposes for income, excise, or franchise taxes based on net income or related minimum taxes, including but not limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota, another state, a political subdivision of another state, the District of Columbia, or any foreign country or possession of the United States;
(2) interest not subject to federal tax upon obligations of: the United States, its possessions, its agencies, or its instrumentalities; the state of Minnesota or any other state, any of its political or governmental subdivisions, any of its municipalities, or any of its governmental agencies or instrumentalities; the District of Columbia; or Indian tribal governments;
(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal Revenue Code;
(4) the amount of any net operating loss deduction taken for federal income tax purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss deduction under section 810 of the Internal Revenue Code;
(5) the amount of any special deductions taken for federal income tax purposes under sections 241 to 247 and 965 of the Internal Revenue Code;
(6) losses from the business of mining, as defined in section 290.05, subdivision 1, clause (a), that are not subject to Minnesota income tax;
(7) the amount of any capital losses deducted for federal income tax purposes under sections 1211 and 1212 of the Internal Revenue Code;
(8) the exempt foreign trade income of a foreign sales corporation under sections 921(a) and 291 of the Internal Revenue Code;
(9) the
amount of percentage depletion deducted under sections 611 through 614 and 291
of the Internal Revenue Code;
(10) for certified pollution control facilities placed in service in a taxable year beginning before December 31, 1986, and for which amortization deductions were elected under section 169 of the Internal Revenue Code of 1954, as amended through December 31, 1985, the amount of the amortization deduction allowed in computing federal taxable income for those facilities;
(11) the amount of any deemed dividend from
a foreign operating corporation determined pursuant to section 290.17,
subdivision 4, paragraph (g). The deemed
dividend shall be reduced by the amount of the addition to income required by
clauses (19), (20), (21), and (22) , and (23) ;
(12) the amount of a partner's pro rata share of net income which does not flow through to the partner because the partnership elected to pay the tax on the income under section 6242(a)(2) of the Internal Revenue Code;
(13) the amount of net income excluded
under section 114 of the Internal Revenue Code;
(14) (13) any increase in
subpart F income, as defined in section 952(a) of the Internal Revenue Code,
for the taxable year when subpart F income is calculated without regard to the
provisions of Division C, title III, section 303(b) of Public Law 110-343;
(15) (14) 80 percent of the
depreciation deduction allowed under section 168(k)(1)(A) and (k)(4)(A) of the
Internal Revenue Code. For purposes of
this clause, if the taxpayer has an activity that in the taxable year generates
a deduction for depreciation under section 168(k)(1)(A) and (k)(4)(A) and the
activity generates a loss for the taxable year that the taxpayer is not allowed
to claim for the taxable year, "the depreciation allowed under section
168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of
the depreciation claimed by the activity under section 168(k)(1)(A) and
(k)(4)(A) over the amount of the loss from the activity that is not allowed in
the taxable year. In succeeding taxable
years when the losses not allowed in the taxable year are allowed, the
depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;
(16) (15) 80 percent of the
amount by which the deduction allowed by section 179 of the Internal Revenue
Code exceeds the deduction allowable by section 179 of the Internal Revenue
Code of 1986, as amended through December 31, 2003;
(17) (16) to the extent
deducted in computing federal taxable income, the amount of the deduction
allowable under section 199 of the Internal Revenue Code;
(18) (17) for taxable years
beginning before January 1, 2013, the exclusion allowed under section 139A of
the Internal Revenue Code for federal subsidies for prescription drug plans;
(19) (18) the amount of
expenses disallowed under section 290.10, subdivision 2;
(20) (19) an amount equal to
the interest and intangible expenses, losses, and costs paid, accrued, or
incurred by any member of the taxpayer's unitary group to or for the benefit of
a corporation that is a member of the taxpayer's unitary business group that
qualifies as a foreign operating corporation.
For purposes of this clause, intangible expenses and costs include:
(i) expenses, losses, and costs for, or related to, the direct or indirect acquisition, use, maintenance or management, ownership, sale, exchange, or any other disposition of intangible property;
(ii) losses incurred, directly or indirectly, from factoring transactions or discounting transactions;
(iii) royalty, patent, technical, and copyright fees;
(iv) licensing fees; and
(v) other similar expenses and costs.
For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent applications, trade names, trademarks, service marks, copyrights, mask works, trade secrets, and similar types of intangible assets.
This clause does not apply to any item of interest or intangible expenses or costs paid, accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect to such item of income to the extent that the income to the foreign operating corporation is income from sources without the United States as defined in subtitle A, chapter 1, subchapter N, part 1, of the Internal Revenue Code;
(21) (20) except as already
included in the taxpayer's taxable income pursuant to clause (20) (19)
, any interest income and income generated from intangible property received or
accrued by a foreign operating corporation that is a member of the taxpayer's
unitary group. For purposes of this
clause, income generated from intangible property includes:
(i) income related to the direct or indirect acquisition, use, maintenance or management, ownership, sale, exchange, or any other disposition of intangible property;
(ii) income from factoring transactions or discounting transactions;
(iii) royalty, patent, technical, and copyright fees;
(iv) licensing fees; and
(v) other similar income.
For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent applications, trade names, trademarks, service marks, copyrights, mask works, trade secrets, and similar types of intangible assets.
This clause does not apply to any item of interest or intangible income received or accrued by a foreign operating corporation with respect to such item of income to the extent that the income is income from sources without the United States as defined in subtitle A, chapter 1, subchapter N, part 1, of the Internal Revenue Code;
(22) (21) the dividends
attributable to the income of a foreign operating corporation that is a member
of the taxpayer's unitary group in an amount that is equal to the dividends
paid deduction of a real estate investment trust under section 561(a) of the
Internal Revenue Code for amounts paid or accrued by the real estate investment
trust to the foreign operating corporation;
(23) (22) the income of a
foreign operating corporation that is a member of the taxpayer's unitary group
in an amount that is equal to gains derived from the sale of real or personal property
located in the United States;
(24) (23) for taxable years beginning before January 1, 2010, the additional amount allowed as a deduction for donation of computer technology and equipment under section 170(e)(6) of the Internal Revenue Code, to the extent deducted from taxable income; and
(25) (24) discharge of
indebtedness income resulting from reacquisition of business indebtedness and
deferred under section 108(i) of the Internal Revenue Code.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2011.
Sec. 14. Minnesota Statutes 2010, section 290.01, subdivision 19d, is amended to read:
Subd. 19d. Corporations; modifications decreasing federal taxable income. For corporations, there shall be subtracted from federal taxable income after the increases provided in subdivision 19c:
(1) the amount of foreign dividend gross-up added to gross income for federal income tax purposes under section 78 of the Internal Revenue Code;
(2) the amount of salary expense not allowed for federal income tax purposes due to claiming the work opportunity credit under section 51 of the Internal Revenue Code;
(3) any dividend (not including any distribution in liquidation) paid within the taxable year by a national or state bank to the United States, or to any instrumentality of the United States exempt from federal income taxes, on the preferred stock of the bank owned by the United States or the instrumentality;
(4) amounts disallowed for intangible drilling costs due to differences between this chapter and the Internal Revenue Code in taxable years beginning before January 1, 1987, as follows:
(i) to the extent the disallowed costs are represented by physical property, an amount equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09, subdivision 7, subject to the modifications contained in subdivision 19e; and
(ii) to the extent the disallowed costs are not represented by physical property, an amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section 290.09, subdivision 8;
(5) the deduction for capital losses pursuant to sections 1211 and 1212 of the Internal Revenue Code, except that:
(i) for capital losses incurred in taxable years beginning after December 31, 1986, capital loss carrybacks shall not be allowed;
(ii) for capital losses incurred in taxable years beginning after December 31, 1986, a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be allowed;
(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a capital loss carryback to each of the three taxable years preceding the loss year, subject to the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and
(iv) for capital losses incurred in taxable years beginning before January 1, 1987, a capital loss carryover to each of the five taxable years succeeding the loss year to the extent such loss was not used in a prior taxable year and subject to the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed;
(6) an amount for interest and expenses relating to income not taxable for federal income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or 291 of the Internal Revenue Code in computing federal taxable income;
(7) in the case of mines, oil and gas wells, other natural deposits, and timber for which percentage depletion was disallowed pursuant to subdivision 19c, clause (9), a reasonable allowance for depletion based on actual cost. In the case of leases the deduction must be apportioned between the lessor and lessee in accordance with rules prescribed by the commissioner. In the case of property held in trust, the allowable deduction must be apportioned between the income beneficiaries and the trustee in accordance with the pertinent provisions of the trust, or if there is no provision in the instrument, on the basis of the trust's income allocable to each;
(8) for certified pollution control facilities placed in service in a taxable year beginning before December 31, 1986, and for which amortization deductions were elected under section 169 of the Internal Revenue Code of 1954, as amended through December 31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09, subdivision 7;
(9) amounts included in federal taxable income that are due to refunds of income, excise, or franchise taxes based on net income or related minimum taxes paid by the corporation to Minnesota, another state, a political subdivision of another state, the District of Columbia, or a foreign country or possession of the United States to the extent that the taxes were added to federal taxable income under section 290.01, subdivision 19c, clause (1), in a prior taxable year;
(10) 80 percent of royalties, fees, or other like income accrued or received from a foreign operating corporation or a foreign corporation which is part of the same unitary business as the receiving corporation, unless the income resulting from such payments or accruals is income from sources within the United States as defined in subtitle A, chapter 1, subchapter N, part 1, of the Internal Revenue Code;
(11) income or gains from the business of mining as defined in section 290.05, subdivision 1, clause (a), that are not subject to Minnesota franchise tax;
(12) the amount of disability access expenditures in the taxable year which are not allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
(13) the amount of qualified research expenses not allowed for federal income tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that the amount exceeds the amount of the credit allowed under section 290.068;
(14) the amount of salary expenses not allowed for federal income tax purposes due to claiming the Indian employment credit under section 45A(a) of the Internal Revenue Code;
(15) for a corporation whose foreign
sales corporation, as defined in section 922 of the Internal Revenue Code,
constituted a foreign operating corporation during any taxable year ending
before January 1, 1995, and a return was filed by August 15, 1996, claiming the
deduction under section 290.21, subdivision 4, for income received from the
foreign operating corporation, an amount equal to 1.23 multiplied by the amount
of income excluded under section 114 of the Internal Revenue Code, provided the
income is not income of a foreign operating company;
(16) (15) any decrease in
subpart F income, as defined in section 952(a) of the Internal Revenue Code,
for the taxable year when subpart F income is calculated without regard to the
provisions of Division C, title III, section 303(b) of Public Law 110-343;
(17) (16) in each of
the five tax years immediately following the tax year in which an addition is
required under subdivision 19c, clause (15) (14) , an amount
equal to one-fifth of the delayed depreciation.
For purposes of this clause, "delayed depreciation" means the
amount of the addition made by the taxpayer under subdivision 19c, clause (15)
(14). The resulting delayed depreciation
cannot be less than zero;
(18) (17) in each of the five
tax years immediately following the tax year in which an addition is required
under subdivision 19c, clause (16) (15) , an amount equal to
one-fifth of the amount of the addition; and
(19) (18) to the extent
included in federal taxable income, discharge of indebtedness income resulting
from reacquisition of business indebtedness included in federal taxable income
under section 108(i) of the Internal Revenue Code. This subtraction applies only to the extent
that the income was included in net income in a prior year as a result of the
addition under section 290.01, subdivision 19c, clause (25) (24)
.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2011.
Sec. 15. Minnesota Statutes 2010, section 290.0921, subdivision 3, is amended to read:
Subd. 3. Alternative minimum taxable income. "Alternative minimum taxable income" is Minnesota net income as defined in section 290.01, subdivision 19, and includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), (f), and (h) of the Internal Revenue Code. If a corporation files a separate company Minnesota tax return, the minimum tax must be computed on a separate company basis. If a corporation is part of a tax group filing a unitary return, the minimum tax must be computed on a unitary basis. The following adjustments must be made.
(1) For purposes of the depreciation adjustments under section 56(a)(1) and 56(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal income tax purposes, including any modification made in a taxable year under section 290.01, subdivision 19e, or Minnesota Statutes 1986, section 290.09, subdivision 7, paragraph (c).
For taxable years beginning after December 31, 2000, the amount of any remaining modification made under section 290.01, subdivision 19e, or Minnesota Statutes 1986, section 290.09, subdivision 7, paragraph (c), not previously deducted is a depreciation allowance in the first taxable year after December 31, 2000.
(2) The portion of the depreciation
deduction allowed for federal income tax purposes under section 168(k) of the
Internal Revenue Code that is required as an addition under section 290.01,
subdivision 19c, clause (15) (14) , is disallowed in determining
alternative minimum taxable income.
(3) The subtraction for depreciation
allowed under section 290.01, subdivision 19d, clause (17) (16) ,
is allowed as a depreciation deduction in determining alternative minimum
taxable income.
(4) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d) of the Internal Revenue Code does not apply.
(5) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal Revenue Code does not apply.
(6) The special rule for dividends from
section 936 companies under section 56(g)(4)(C)(iii) does not apply.
(7) (6) The tax preference for depletion under section 57(a)(1) of the Internal Revenue Code does not apply.
(8) (7) The tax preference
for intangible drilling costs under section 57(a)(2) of the Internal Revenue
Code must be calculated without regard to
subparagraph (E) and the subtraction under section 290.01, subdivision 19d,
clause (4).
(9) (8) The tax preference for tax exempt
interest under section 57(a)(5) of the Internal Revenue Code does not apply.
(10) (9) The tax preference
for charitable contributions of appreciated property under section 57(a)(6) of
the Internal Revenue Code does not apply.
(11) (10) For purposes of
calculating the tax preference for accelerated depreciation or amortization on
certain property placed in service before January 1, 1987, under section
57(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable
year is the deduction allowed under section 290.01, subdivision 19e.
For taxable years beginning after December 31, 2000, the amount of any remaining modification made under section 290.01, subdivision 19e, not previously deducted is a depreciation or amortization allowance in the first taxable year after December 31, 2004.
(12) (11) For purposes of
calculating the adjustment for adjusted current earnings in section 56(g) of
the Internal Revenue Code, the term "alternative minimum taxable
income" as it is used in section 56(g) of the Internal Revenue Code, means
alternative minimum taxable income as defined in this subdivision, determined
without regard to the adjustment for adjusted current earnings in section 56(g)
of the Internal Revenue Code.
(13) (12) For purposes of
determining the amount of adjusted current earnings under section 56(g)(3) of
the Internal Revenue Code, no adjustment shall be made under section 56(g)(4)
of the Internal Revenue Code with respect to (i) the amount of foreign dividend
gross-up subtracted as provided in section 290.01, subdivision 19d, clause (1),
(ii) the amount of refunds of income, excise, or franchise taxes subtracted as
provided in section 290.01, subdivision 19d, clause (9), or (iii) the amount of
royalties, fees or other like income subtracted as provided in section 290.01,
subdivision 19d, clause (10).
(14) (13) Alternative minimum
taxable income excludes the income from operating in a job opportunity building
zone as provided under section 469.317.
(15) (14) Alternative minimum
taxable income excludes the income from operating in a biotechnology and health
sciences industry zone as provided under section 469.337.
(16) (15) Alternative minimum
taxable income excludes the income from operating in an international economic
development zone as provided under section 469.326.
Items of tax preference must not be reduced below zero as a result of the modifications in this subdivision.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2011.
Sec. 16. Minnesota Statutes 2010, section 290.17, subdivision 4, is amended to read:
Subd. 4. Unitary business principle. (a) If a trade or business conducted wholly within this state or partly within and partly without this state is part of a unitary business, the entire income of the unitary business is subject to apportionment pursuant to section 290.191. Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary business is considered to be derived from any particular source and none may be allocated to a particular place except as provided by the applicable apportionment formula. The provisions of this subdivision do not apply to business income subject to subdivision 5, income of an insurance company, or income of an investment company determined under section 290.36.
(b) The term "unitary business" means business activities or operations which result in a flow of value between them. The term may be applied within a single legal entity or between multiple entities and without regard to whether each entity is a sole proprietorship, a corporation, a partnership or a trust.
(c) Unity is presumed whenever there is unity of ownership, operation, and use, evidenced by centralized management or executive force, centralized purchasing, advertising, accounting, or other controlled interaction, but the absence of these centralized activities will not necessarily evidence a nonunitary business. Unity is also presumed when business activities or operations are of mutual benefit, dependent upon or contributory to one another, either individually or as a group.
(d) Where a business operation conducted in Minnesota is owned by a business entity that carries on business activity outside the state different in kind from that conducted within this state, and the other business is conducted entirely outside the state, it is presumed that the two business operations are unitary in nature, interrelated, connected, and interdependent unless it can be shown to the contrary.
(e) Unity of ownership is does
not deemed to exist when a corporation is two or more
corporations are involved unless that corporation is a member of a group
of two or more business entities and more than 50 percent of the voting
stock of each member of the group corporation is directly or
indirectly owned by a common owner or by common owners, either corporate or
noncorporate, or by one or more of the member corporations of the group. For this purpose, the term "voting
stock" shall include membership interests of mutual insurance holding
companies formed under section 66A.40.
(f) The net income and apportionment factors under section 290.191 or 290.20 of foreign corporations and other foreign entities which are part of a unitary business shall not be included in the net income or the apportionment factors of the unitary business. A foreign corporation or other foreign entity which is required to file a return under this chapter shall file on a separate return basis. The net income and apportionment factors under section 290.191 or 290.20 of foreign operating corporations shall not be included in the net income or the apportionment factors of the unitary business except as provided in paragraph (g).
(g) The adjusted net income of a foreign operating corporation shall be deemed to be paid as a dividend on the last day of its taxable year to each shareholder thereof, in proportion to each shareholder's ownership, with which such corporation is engaged in a unitary business. Such deemed dividend shall be treated as a dividend under section 290.21, subdivision 4.
Dividends actually paid by a foreign operating corporation to a corporate shareholder which is a member of the same unitary business as the foreign operating corporation shall be eliminated from the net income of the unitary business in preparing a combined report for the unitary business. The adjusted net income of a foreign operating corporation shall be its net income adjusted as follows:
(1) any taxes paid or accrued to a foreign country, the commonwealth of Puerto Rico, or a United States possession or political subdivision of any of the foregoing shall be a deduction; and
(2) the subtraction from federal taxable income for payments received from foreign corporations or foreign operating corporations under section 290.01, subdivision 19d, clause (10), shall not be allowed.
If a foreign operating corporation incurs a net loss, neither income nor deduction from that corporation shall be included in determining the net income of the unitary business.
(h) For purposes of determining the net income of a unitary business and the factors to be used in the apportionment of net income pursuant to section 290.191 or 290.20, there must be included only the income and apportionment factors of domestic corporations or other domestic entities other than foreign operating corporations that are determined to be part of the unitary business pursuant to this subdivision, notwithstanding that foreign corporations or other foreign entities might be included in the unitary business.
(i) Deductions for expenses, interest, or taxes otherwise allowable under this chapter that are connected with or allocable against dividends, deemed dividends described in paragraph (g), or royalties, fees, or other like income described in section 290.01, subdivision 19d, clause (10), shall not be disallowed.
(j) Each corporation or other entity, except a sole proprietorship, that is part of a unitary business must file combined reports as the commissioner determines. On the reports, all intercompany transactions between entities included pursuant to paragraph (h) must be eliminated and the entire net income of the unitary business determined in accordance with this subdivision is apportioned among the entities by using each entity's Minnesota factors for apportionment purposes in the numerators of the apportionment formula and the total factors for apportionment purposes of all entities included pursuant to paragraph (h) in the denominators of the apportionment formula.
(k) If a corporation has been divested from a unitary business and is included in a combined report for a fractional part of the common accounting period of the combined report:
(1) its income includable in the combined report is its income incurred for that part of the year determined by proration or separate accounting; and
(2) its sales, property, and payroll included in the apportionment formula must be prorated or accounted for separately.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 2
DEPARTMENT POLICY AND TECHNICAL: PROPERTY TAX
Section 1. Minnesota Statutes 2010, section 13.4965, subdivision 3, is amended to read:
Subd. 3. Homestead
and other applications. The
classification and disclosure of certain information collected to determine eligibility
of property for a homestead or other classification or benefit
under section 273.13 are governed by section sections
273.124, subdivision subdivisions 13, 13a, 13c, and 13d, and
273.1315.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2010, section 270.077, is amended to read:
270.077
TAXES CREDITED TO STATE AIRPORTS FUND.
All taxes levied under sections 270.071 to 270.079 must be collected by the commissioner and credited to the state airports fund created in section 360.017.
EFFECTIVE
DATE. This section is
effective for reports filed on July 1, 2012, and thereafter.
Sec. 3. Minnesota Statutes 2010, section 270.41, subdivision 5, is amended to read:
Subd. 5. Prohibited activity. A licensed assessor or other person employed by an assessment jurisdiction or contracting with an assessment jurisdiction for the purpose of valuing or classifying property for property tax purposes is prohibited from making appraisals or analyses, accepting an appraisal assignment, or preparing an appraisal report as defined in section 82B.021, subdivisions 2, 4, 6, and 7, on any property within the assessment jurisdiction where the individual is employed or performing the duties of the assessor under contract. Violation of this prohibition shall result in immediate revocation of the individual's license to assess property for property tax purposes. This prohibition must not be construed to prohibit an individual from carrying out any duties required for
the proper assessment of property for property tax purposes or performing duties enumerated in section 273.061, subdivision 7 or 8. If a formal resolution has been adopted by the governing body of a governmental unit, which specifies the purposes for which such work will be done, this prohibition does not apply to appraisal activities undertaken on behalf of and at the request of the governmental unit that has employed or contracted with the individual. The resolution may only allow appraisal activities which are related to condemnations, right-of-way acquisitions, land exchanges, or special assessments.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2011 Supplement, section 270C.34, subdivision 1, is amended to read:
Subdivision 1. Authority. (a) The commissioner may abate, reduce, or refund any penalty or interest that is imposed by a law administered by the commissioner, or imposed by section 270.0725, subdivision 1 or 2, or 270.075, as a result of the late payment of tax or late filing of a return, or any part of an additional tax charge under section 289A.25, subdivision 2, or 289A.26, subdivision 4, if the failure to timely pay the tax or failure to timely file the return is due to reasonable cause, or if the taxpayer is located in a presidentially declared disaster or in a presidentially declared state of emergency area or in an area declared to be in a state of emergency by the governor under section 12.31.
(b) The commissioner shall abate any part of a penalty or additional tax charge under section 289A.25, subdivision 2, or 289A.26, subdivision 4, attributable to erroneous advice given to the taxpayer in writing by an employee of the department acting in an official capacity, if the advice:
(1) was reasonably relied on and was in response to a specific written request of the taxpayer; and
(2) was not the result of failure by the taxpayer to provide adequate or accurate information.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. Minnesota Statutes 2010, section 272.01, subdivision 2, is amended to read:
Subd. 2. Exempt property used by private entity for profit. (a) When any real or personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is leased, loaned, or otherwise made available and used by a private individual, association, or corporation in connection with a business conducted for profit, there shall be imposed a tax, for the privilege of so using or possessing such real or personal property, in the same amount and to the same extent as though the lessee or user was the owner of such property.
(b) The tax imposed by this subdivision shall not apply to:
(1) property leased or used as a concession in or relative to the use in whole or part of a public park, market, fairgrounds, port authority, economic development authority established under chapter 469, municipal auditorium, municipal parking facility, municipal museum, or municipal stadium;
(2) property of an airport owned by a city, town, county, or group thereof which is:
(i) leased to or used by any person or entity including a fixed base operator; and
(ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods, services, or facilities to the airport or general public;
the exception from taxation provided in this clause does not apply to:
(i) property located at an airport owned or operated by the Metropolitan Airports Commission or by a city of over 50,000 population according to the most recent federal census or such a city's airport authority; or
(ii) hangars leased by a private individual, association, or corporation in connection with a business conducted for profit other than an aviation-related business;
(3) property constituting or used as a public pedestrian ramp or concourse in connection with a public airport;
(4) property constituting or used as a passenger check-in area or ticket sale counter, boarding area, or luggage claim area in connection with a public airport but not the airports owned or operated by the Metropolitan Airports Commission or cities of over 50,000 population or an airport authority therein. Real estate owned by a municipality in connection with the operation of a public airport and leased or used for agricultural purposes is not exempt;
(5) property leased, loaned, or otherwise made available to a private individual, corporation, or association under a cooperative farming agreement made pursuant to section 97A.135; or
(6) property leased, loaned, or otherwise made available to a private individual, corporation, or association under section 272.68, subdivision 4.
(c) Taxes imposed by this subdivision are payable as in the case of personal property taxes and shall be assessed to the lessees or users of real or personal property in the same manner as taxes assessed to owners of real or personal property, except that such taxes shall not become a lien against the property. When due, the taxes shall constitute a debt due from the lessee or user to the state, township, city, county, and school district for which the taxes were assessed and shall be collected in the same manner as personal property taxes. If property subject to the tax imposed by this subdivision is leased or used jointly by two or more persons, each lessee or user shall be jointly and severally liable for payment of the tax.
(d) The tax on real property of the federal government, the state or any of its political subdivisions that is leased by a private individual, association, or corporation and becomes taxable under this subdivision or other provision of law must be assessed and collected as a personal property assessment. The taxes do not become a lien against the real property.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 6. Minnesota Statutes 2011 Supplement, section 273.114, subdivision 6, is amended to read:
Subd. 6. Additional taxes. (a) When real property which is being, or has been valued and assessed under this section is sold, transferred, or no longer qualifies under subdivision 2, the portion sold, transferred, or no longer qualifying shall be subject to additional taxes in the amount equal to the difference between the taxes determined in accordance with subdivision 3 and the amount determined under subdivision 4, provided that the amount determined under subdivision 4 shall not be greater than it would have been had the actual bona fide sale price of the real property at an arm's-length transaction been used in lieu of the market value determined under subdivision 4. The additional taxes shall be extended against the property on the tax list for taxes payable in the current year, provided that no interest or penalties shall be levied on the additional taxes if timely paid and provided that the additional taxes shall only be levied with respect to the current year plus two prior years that the property has been valued and assessed under this section.
(b) In the case of a sale or transfer,
the additional taxes under paragraph (a) shall not be extended against the
property if the new owner submits a successful application by the later of May
1 of the current year or 30 days after the sale or transfer.
(c) For the purposes of this
section, the following events do not constitute a sale or transfer for property
that qualified under subdivision 2 prior to the event:
(1) death of a property owner when the
surviving owners retain ownership of the property;
(2) divorce of a married couple when
one of the spouses retains ownership of the property;
(3) marriage of a single property owner
when that owner retains ownership of the property in whole or in part;
(4) the organization or reorganization
of a farm ownership entity that is not prohibited from owning agricultural land
in this state under section 500.24, if all owners maintain the same beneficial
interest both before and after the organization or reorganization; and
(5) transfer of the property to a trust
or trustee, provided that the individual owners of the property are the grantors of the trust and they maintain the same
beneficial interest both before and after placement of the property in trust.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 7. Minnesota Statutes 2010, section 273.124, subdivision 13, is amended to read:
Subd. 13. Homestead application. (a) A person who meets the homestead requirements under subdivision 1 must file a homestead application with the county assessor to initially obtain homestead classification.
(b) The format and contents of a uniform homestead application shall be prescribed by the commissioner of revenue. The application must clearly inform the taxpayer that this application must be signed by all owners who occupy the property or by the qualifying relative and returned to the county assessor in order for the property to receive homestead treatment.
(c) Every property owner applying for homestead classification must furnish to the county assessor the Social Security number of each occupant who is listed as an owner of the property on the deed of record, the name and address of each owner who does not occupy the property, and the name and Social Security number of each owner's spouse who occupies the property. The application must be signed by each owner who occupies the property and by each owner's spouse who occupies the property, or, in the case of property that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
If a property owner occupies a homestead, the property owner's spouse may not claim another property as a homestead unless the property owner and the property owner's spouse file with the assessor an affidavit or other proof required by the assessor stating that the property qualifies as a homestead under subdivision 1, paragraph (e).
Owners or spouses occupying residences owned by their spouses and previously occupied with the other spouse, either of whom fail to include the other spouse's name and Social Security number on the homestead application or provide the affidavits or other proof requested, will be deemed to have elected to receive only partial homestead treatment of their residence. The remainder of the residence will be classified as nonhomestead residential. When an owner or spouse's name and Social Security number appear on homestead applications for two separate residences and only one application is signed, the owner or spouse will be deemed to have elected to homestead the residence for which the application was signed.
The Social Security numbers, state or
federal tax returns or tax return information, including the federal income tax
schedule F, required by this section, or section 273.13, and
affidavits or other proofs of the property owners and spouses submitted under
this or another section to support a claim for a property tax homestead
classification or other classification or benefit under section 273.13, are
private data on individuals as defined by section 13.02,
subdivision 12, or nonpublic data as defined in section 13.02, subdivision 9, but, notwithstanding that section, the private and nonpublic data may be disclosed to the commissioner of revenue, or, for purposes of proceeding under the Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
(d) If residential real estate is occupied and used for purposes of a homestead by a relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for the property to receive homestead status, a homestead application must be filed with the assessor. The Social Security number of each relative and spouse of a relative occupying the property shall be required on the homestead application filed under this subdivision. If a different relative of the owner subsequently occupies the property, the owner of the property must notify the assessor within 30 days of the change in occupancy. The Social Security number of a relative or relative's spouse occupying the property is private data on individuals as defined by section 13.02, subdivision 12, but may be disclosed to the commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
(e) The homestead application shall also
notify the property owners that the application filed under this section
will not be mailed annually and that if the property is granted homestead
status for any assessment year, that same property shall remain classified as
homestead until the property is sold or transferred to another person, or the
owners, the spouse of the owner, or the relatives no longer use the property as
their homestead. Upon the sale or
transfer of the homestead property, a certificate of value must be timely filed
with the county auditor as provided under section 272.115. Failure to notify the assessor within 30 days
that the property has been sold, transferred, or that the owner, the spouse of
the owner, or the relative is no longer occupying the property as a homestead,
shall result in the penalty provided under this subdivision and the property
will lose its current homestead status.
(f) If the homestead application is not
returned within 30 days, the county will send a second application to the
present owners of record. The notice of
proposed property taxes prepared under section 275.065, subdivision 3, shall
reflect the property's classification.
If a homestead application has not been filed with the county by
December 15, the assessor shall classify the property as nonhomestead for the
current assessment year for taxes payable in the following year, provided that
the owner may be entitled to receive the homestead classification by proper
application under section 375.192.
Subd. 13a. Occupant
list. (g) At the request
of the commissioner, each county must give the commissioner a list that
includes the name and Social Security number of each occupant of homestead
property who is the property owner, property owner's spouse, qualifying
relative of a property owner, or a spouse of a qualifying relative. The commissioner shall use the information
provided on the lists as appropriate under the law, including for the detection
of improper claims by owners, or relatives of owners, under chapter 290A.
Subd. 13b. Improper
homestead. (h) (a)
If the commissioner finds that a property owner may be claiming a fraudulent
homestead, the commissioner shall notify the appropriate counties. Within 90 days of the notification, the
county assessor shall investigate to determine if the homestead classification
was properly claimed. If the property
owner does not qualify, the county assessor shall notify the county auditor who
will determine the amount of homestead benefits that had been improperly
allowed. For the purpose of this section
subdivision, "homestead benefits" means the tax reduction
resulting from the classification as a homestead under section 273.13, the
taconite homestead credit under section 273.135, the residential homestead and
agricultural homestead credits under section 273.1384, and the supplemental
homestead credit under section 273.1391.
The county auditor shall send a notice to the person who owned the affected property at the time the homestead application related to the improper homestead was filed, demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent of the homestead benefits. The person notified may appeal the county's determination by serving copies of a petition for review with county officials as provided in section 278.01 and filing proof of service as provided in section 278.01 with the Minnesota Tax Court within 60 days of the date of the notice from the county. Procedurally, the appeal is governed by the provisions in chapter 271 which apply to the appeal of a
property tax assessment or levy, but without requiring any prepayment of the amount in controversy. If the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal has been filed, the county auditor shall certify the amount of taxes and penalty to the county treasurer. The county treasurer will add interest to the unpaid homestead benefits and penalty amounts at the rate provided in section 279.03 for real property taxes becoming delinquent in the calendar year during which the amount remains unpaid. Interest may be assessed for the period beginning 60 days after demand for payment was made.
If the person notified is the current owner of the property, the treasurer may add the total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes otherwise payable on the property by including the amounts on the property tax statements under section 276.04, subdivision 3. The amounts added under this paragraph to the ad valorem taxes shall include interest accrued through December 31 of the year preceding the taxes payable year for which the amounts are first added. These amounts, when added to the property tax statement, become subject to all the laws for the enforcement of real or personal property taxes for that year, and for any subsequent year.
If the person notified is not the current owner of the property, the treasurer may collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of the powers granted in sections 277.20 and 277.21 without exclusion, to enforce payment of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent tax obligations of the person who owned the property at the time the application related to the improperly allowed homestead was filed. The treasurer may relieve a prior owner of personal liability for the homestead benefits, penalty, interest, and costs, and instead extend those amounts on the tax lists against the property as provided in this paragraph to the extent that the current owner agrees in writing. On all demands, billings, property tax statements, and related correspondence, the county must list and state separately the amounts of homestead benefits, penalty, interest and costs being demanded, billed or assessed.
(i) (b) Any amount of
homestead benefits recovered by the county from the property owner shall be
distributed to the county, city or town, and school district where the property
is located in the same proportion that each taxing district's levy was to the
total of the three taxing districts' levy for the current year. Any amount recovered attributable to taconite
homestead credit shall be transmitted to the St. Louis County auditor to
be deposited in the taconite property tax relief account. Any amount recovered that is attributable to
supplemental homestead credit is to be transmitted to the commissioner of
revenue for deposit in the general fund of the state treasury. The total amount of penalty collected must be
deposited in the county general fund.
(j) (c) If a property owner
has applied for more than one homestead and the county assessors cannot
determine which property should be classified as homestead, the county
assessors will refer the information to the commissioner. The commissioner shall make the determination
and notify the counties within 60 days.
Subd. 13c. Property
lists. (k) In addition to
lists of homestead properties, the commissioner may ask the counties to furnish
lists of all properties and the record owners.
The Social Security numbers and federal identification numbers that are
maintained by a county or city assessor for property tax administration purposes,
and that may appear on the lists retain their classification as private or
nonpublic data; but may be viewed, accessed, and used by the county auditor or
treasurer of the same county for the limited purpose of assisting the
commissioner in the preparation of microdata samples under section 270C.12. The commissioner shall use the information
provided on the lists as appropriate under the law, including for the detection
of improper claims by owners, or relatives of owners, under chapter 290A.
Subd. 13d. Homestead
data. (l) On or before
April 30 each year beginning in 2007, each county must provide the commissioner
with the following data for each parcel of homestead property by electronic
means as defined in section 289A.02, subdivision 8:
(i) (1) the property
identification number assigned to the parcel for purposes of taxes payable in
the current year;
(ii) (2) the name and Social Security number of each occupant of homestead property who is the property owner, property owner's spouse, qualifying relative of a property owner, or spouse of a qualifying relative;
(iii) (3) the classification
of the property under section 273.13 for taxes payable in the current year and
in the prior year;
(iv) (4) an indication of
whether the property was classified as a homestead for taxes payable in the
current year because of occupancy by a relative of the owner or by a spouse of
a relative;
(v) (5) the property taxes
payable as defined in section 290A.03, subdivision 13, for the current year and
the prior year;
(vi) (6) the market value of
improvements to the property first assessed for tax purposes for taxes payable
in the current year;
(vii) (7) the assessor's
estimated market value assigned to the property for taxes payable in the
current year and the prior year;
(viii) (8) the taxable market value
assigned to the property for taxes payable in the current year and the prior year;
(ix) (9) whether there are
delinquent property taxes owing on the homestead;
(x) (10) the unique taxing
district in which the property is located; and
(xi) (11) such other
information as the commissioner decides is necessary.
The commissioner shall use the information provided on the lists as appropriate under the law, including for the detection of improper claims by owners, or relatives of owners, under chapter 290A.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2011 Supplement, section 273.13, subdivision 25, is amended to read:
Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more units and used or held for use by the owner or by the tenants or lessees of the owner as a residence for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt under section 272.02, and contiguous property used for hospital purposes, without regard to whether the property has been platted or subdivided. The market value of class 4a property has a class rate of 1.25 percent.
(b) Class 4b includes:
(1) residential real estate containing less than four units that does not qualify as class 4bb, other than seasonal residential recreational property;
(2) manufactured homes not classified under any other provision;
(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm classified under subdivision 23, paragraph (b) containing two or three units; and
(4) unimproved property that is classified residential as determined under subdivision 33.
The market value of class 4b property has a class rate of 1.25 percent.
(c) Class 4bb includes:
(1)
nonhomestead residential real estate containing one unit, other than seasonal residential recreational property;
and
(2) a single family dwelling, garage,
and surrounding one acre of property on a nonhomestead farm classified under
subdivision 23, paragraph (b).
Class 4bb property has the same class rates as class 1a property under subdivision 22.
Property that has been classified as seasonal residential recreational property at any time during which it has been owned by the current owner or spouse of the current owner does not qualify for class 4bb.
(d) Class 4c property includes:
(1) except as provided in subdivision 22, paragraph (c), real and personal property devoted to commercial temporary and seasonal residential occupancy for recreation purposes, for not more than 250 days in the year preceding the year of assessment. For purposes of this clause, property is devoted to a commercial purpose on a specific day if any portion of the property is used for residential occupancy, and a fee is charged for residential occupancy. Class 4c property under this clause must contain three or more rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site equipped with water and electrical hookups for recreational vehicles. A camping pad offered for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c under this clause regardless of the term of the rental agreement, as long as the use of the camping pad does not exceed 250 days. In order for a property to be classified under this clause, either (i) the business located on the property must provide recreational activities, at least 40 percent of the annual gross lodging receipts related to the property must be from business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid bookings by lodging guests during the year must be for periods of at least two consecutive nights; or (B) at least 20 percent of the annual gross receipts must be from charges for providing recreational activities, or (ii) the business must contain 20 or fewer rental units, and must be located in a township or a city with a population of 2,500 or less located outside the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion of a state trail administered by the Department of Natural Resources. For purposes of item (i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c property also includes commercial use real property used exclusively for recreational purposes in conjunction with other class 4c property classified under this clause and devoted to temporary and seasonal residential occupancy for recreational purposes, up to a total of two acres, provided the property is not devoted to commercial recreational use for more than 250 days in the year preceding the year of assessment and is located within two miles of the class 4c property with which it is used. In order for a property to qualify for classification under this clause, the owner must submit a declaration to the assessor designating the cabins or units occupied for 250 days or less in the year preceding the year of assessment by January 15 of the assessment year. Those cabins or units and a proportionate share of the land on which they are located must be designated class 4c under this clause as otherwise provided. The remainder of the cabins or units and a proportionate share of the land on which they are located will be designated as class 3a. The owner of property desiring designation as class 4c property under this clause must provide guest registers or other records demonstrating that the units for which class 4c designation is sought were not occupied for more than 250 days in the year preceding the assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility operated on a commercial basis not directly related to temporary and seasonal residential occupancy for recreation purposes does not qualify for class 4c. For the purposes of this paragraph, "recreational activities" means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country ski equipment; providing marina services, launch services, or guide services; or selling bait and fishing tackle;
(2) qualified property used as a golf course if:
(i) it is open to the public on a daily fee basis. It may charge membership fees or dues, but a membership fee may not be required in order to use the property for golfing, and its green fees for golfing must be comparable to green fees typically charged by municipal courses; and
(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with the golf course is classified as class 3a property;
(3) real property up to a maximum of three acres of land owned and used by a nonprofit community service oriented organization and not used for residential purposes on either a temporary or permanent basis, provided that:
(i) the property is not used for a revenue-producing activity for more than six days in the calendar year preceding the year of assessment; or
(ii) the organization makes annual charitable contributions and donations at least equal to the property's previous year's property taxes and the property is allowed to be used for public and community meetings or events for no charge, as appropriate to the size of the facility.
For purposes of this clause:
(A) "charitable contributions and donations" has the same meaning as lawful gambling purposes under section 349.12, subdivision 25, excluding those purposes relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;
(B) "property taxes" excludes the state general tax;
(C) a "nonprofit community service oriented organization" means any corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, fraternal, civic, or educational purposes, and which is exempt from federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal Revenue Code; and
(D) "revenue-producing activities" shall include but not be limited to property or that portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling alley, a retail store, gambling conducted by organizations licensed under chapter 349, an insurance business, or office or other space leased or rented to a lessee who conducts a for-profit enterprise on the premises.
Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use of the property for social events open exclusively to members and their guests for periods of less than 24 hours, when an admission is not charged nor any revenues are received by the organization shall not be considered a revenue-producing activity.
The organization shall maintain records of its charitable contributions and donations and of public meetings and events held on the property and make them available upon request any time to the assessor to ensure eligibility. An organization meeting the requirement under item (ii) must file an application by May 1 with the assessor for eligibility for the current year's assessment. The commissioner shall prescribe a uniform application form and instructions;
(4) postsecondary student housing of not more than one acre of land that is owned by a nonprofit corporation organized under chapter 317A and is used exclusively by a student cooperative, sorority, or fraternity for on-campus housing or housing located within two miles of the border of a college campus;
(5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding manufactured home parks described in section 273.124, subdivision 3a, and (ii) manufactured home parks as defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision 3a;
(6) real property that is actively and exclusively devoted to indoor fitness, health, social, recreational, and related uses, is owned and operated by a not-for-profit corporation, and is located within the metropolitan area as defined in section 473.121, subdivision 2;
(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under section 272.01, subdivision 2, and the land on which it is located, provided that:
(i) the land is on an airport owned or operated by a city, town, county, Metropolitan Airports Commission, or group thereof; and
(ii) the land lease, or any ordinance or signed agreement restricting the use of the leased premise, prohibits commercial activity performed at the hangar.
If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be filed by the new owner with the assessor of the county where the property is located within 60 days of the sale;
(8) a privately owned noncommercial aircraft storage hangar not exempt under section 272.01, subdivision 2, and the land on which it is located, provided that:
(i) the land abuts a public airport; and
(ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement restricting the use of the premises, prohibiting commercial use or activity performed at the hangar; and
(9) residential real estate, a portion of which is used by the owner for homestead purposes, and that is also a place of lodging, if all of the following criteria are met:
(i) rooms are provided for rent to transient guests that generally stay for periods of 14 or fewer days;
(ii) meals are provided to persons who rent rooms, the cost of which is incorporated in the basic room rate;
(iii) meals are not provided to the general public except for special events on fewer than seven days in the calendar year preceding the year of the assessment; and
(iv) the owner is the operator of the property.
The market value subject to the 4c classification under this clause is limited to five rental units. Any rental units on the property in excess of five, must be valued and assessed as class 3a. The portion of the property used for purposes of a homestead by the owner must be classified as class 1a property under subdivision 22;
(10) real property up to a maximum of three acres and operated as a restaurant as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B) is either devoted to commercial purposes for not more than 250 consecutive days, or receives
at least 60 percent of its annual gross receipts from business conducted during four consecutive months. Gross receipts from the sale of alcoholic beverages must be included in determining the property's qualification under subitem (B). The property's primary business must be as a restaurant and not as a bar. Gross receipts from gift shop sales located on the premises must be excluded. Owners of real property desiring 4c classification under this clause must submit an annual declaration to the assessor by February 1 of the current assessment year, based on the property's relevant information for the preceding assessment year;
(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public and devoted to recreational use for marina services. The marina owner must annually provide evidence to the assessor that it provides services, including lake or river access to the public by means of an access ramp or other facility that is either located on the property of the marina or at a publicly owned site that abuts the property of the marina. No more than 800 feet of lakeshore may be included in this classification. Buildings used in conjunction with a marina for marina services, including but not limited to buildings used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified as class 3a property; and
(12) real and personal property devoted to noncommercial temporary and seasonal residential occupancy for recreation purposes.
Class 4c property has a class rate of 1.5 percent of market value, except that (i) each parcel of noncommercial seasonal residential recreational property under clause (12) has the same class rates as class 4bb property, (ii) manufactured home parks assessed under clause (5), item (i), have the same class rate as class 4b property, and the market value of manufactured home parks assessed under clause (5), item (ii), has the same class rate as class 4d property if more than 50 percent of the lots in the park are occupied by shareholders in the cooperative corporation or association and a class rate of one percent if 50 percent or less of the lots are so occupied, (iii) commercial-use seasonal residential recreational property and marina recreational land as described in clause (11), has a class rate of one percent for the first $500,000 of market value, and 1.25 percent for the remaining market value, (iv) the market value of property described in clause (4) has a class rate of one percent, (v) the market value of property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property in clause (9) qualifying for class 4c property has a class rate of 1.25 percent.
(e) Class 4d property is qualifying low-income rental housing certified to the assessor by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of the units in the building qualify as low-income rental housing units as certified under section 273.128, subdivision 3, only the proportion of qualifying units to the total number of units in the building qualify for class 4d. The remaining portion of the building shall be classified by the assessor based upon its use. Class 4d also includes the same proportion of land as the qualifying low-income rental housing units are to the total units in the building. For all properties qualifying as class 4d, the market value determined by the assessor must be based on the normal approach to value using normal unrestricted rents.
Class 4d property has a class rate of 0.75 percent.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2013 and thereafter.
Sec. 9. Minnesota Statutes 2010, section 273.1315, subdivision 1, is amended to read:
Subdivision 1. Class 1b homestead declaration before 2009. Any property owner seeking classification and assessment of the owner's homestead as class 1b property pursuant to section 273.13, subdivision 22, paragraph (b), on or before October 1, 2008, shall file with the commissioner of revenue a 1b homestead declaration, on a form prescribed by the commissioner. The declaration shall contain the following information:
(a) (1) the information necessary to verify that on or before June 30 of the filing year, the property owner or the owner's spouse satisfies the requirements of section 273.13, subdivision 22, paragraph (b), for 1b classification; and
(b) (2) any additional
information prescribed by the commissioner.
The declaration must be filed on or before
October 1 to be effective for property taxes payable during the succeeding
calendar year. The declaration and any
supplementary information received from the property owner pursuant to this
subdivision shall be subject to chapter 270B.
If approved by the commissioner, the declaration remains in effect until
the property no longer qualifies under section 273.13, subdivision 22, paragraph
(b). Failure to notify the commissioner
within 30 days that the property no longer qualifies under that paragraph
because of a sale, change in occupancy, or change in the status or condition of
an occupant shall result in the penalty provided in section 273.124,
subdivision 13 13b, computed on the basis of the class 1b
benefits for the property, and the property shall lose its current class 1b
classification.
The commissioner shall provide to the assessor on or before November 1 a listing of the parcels of property qualifying for 1b classification.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 10. Minnesota Statutes 2010, section 273.1315, subdivision 2, is amended to read:
Subd. 2. Class 1b homestead declaration 2009 and thereafter. (a) Any property owner seeking classification and assessment of the owner's homestead as class 1b property pursuant to section 273.13, subdivision 22, paragraph (b), after October 1, 2008, shall file with the county assessor a class 1b homestead declaration, on a form prescribed by the commissioner of revenue. The declaration must contain the following information:
(1) the information necessary to verify that, on or before June 30 of the filing year, the property owner or the owner's spouse satisfies the requirements of section 273.13, subdivision 22, paragraph (b), for class 1b classification; and
(2) any additional information prescribed by the commissioner.
(b) The declaration must be filed on or
before October 1 to be effective for property taxes payable during the
succeeding calendar year. The Social
Security numbers and income and medical information received from the property
owner pursuant to this subdivision are private data on individuals as defined
in section 13.02. If approved by the
assessor, the declaration remains in effect until the property no longer
qualifies under section 273.13, subdivision 22, paragraph (b). Failure to notify the assessor within 30 days
that the property no longer qualifies under that paragraph because of a sale,
change in occupancy, or change in the status or condition of an occupant shall
result in the penalty provided in section 273.124, subdivision 13 13b,
computed on the basis of the class 1b benefits for the property, and the
property shall lose its current class 1b classification.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 11. Minnesota Statutes 2010, section 273.19, subdivision 1, is amended to read:
Subdivision 1. Tax-exempt property; lease. Except as provided in subdivision 3 or 4, tax-exempt property held under a lease for a term of at least one year, and not taxable under section 272.01, subdivision 2, or under a contract for the purchase thereof, shall be considered, for all purposes of taxation, as the property of the person holding it. In this subdivision, "tax-exempt property" means property owned by the United States, the state or any of its political subdivisions, a school, or any religious, scientific, or benevolent society or institution, incorporated or unincorporated, or any corporation whose property is not taxed in the same manner as other property. This subdivision does not apply to property exempt from taxation under section 272.01, subdivision 2, paragraph (b), clauses (2), (3), and (4), or to property exempt from taxation under section 272.0213.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 12. Minnesota Statutes 2010, section 273.372, subdivision 4, is amended to read:
Subd. 4. Administrative
appeals. (a) Companies that submit
the reports under section 270.82 or 273.371 by the date specified in that
section, or by the date specified by the commissioner in an extension, may
appeal administratively to the commissioner prior to bringing an action in
court by submitting.
(b) Companies that must submit reports
under section 270.82 must submit a written request with to
the commissioner for a conference within ten days after the date of the
commissioner's valuation certification or notice to the company, or by May
June 15, whichever is earlier.
(c) Companies that submit reports under
section 273.371 must submit a written request to the commissioner for a
conference within ten days after the date of the commissioner's valuation certification
or notice to the company, or by July 1, whichever is earlier.
(d) The commissioner shall conduct the conference upon the commissioner's entire files and records and such further information as may be offered. The conference must be held no later than 20 days after the date of the commissioner's valuation certification or notice to the company, or by the date specified by the commissioner in an extension. Within 60 days after the conference the commissioner shall make a final determination of the matter and shall notify the company promptly of the determination. The conference is not a contested case hearing.
(b) (e) In addition to the
opportunity for a conference under paragraph (a), the commissioner shall also
provide the railroad and utility companies the opportunity to discuss any
questions or concerns relating to the values established by the commissioner
through certification or notice in a less formal manner. This does not change or modify the deadline
for requesting a conference under paragraph (a), the deadline in section 271.06
for appealing an order of the commissioner, or the deadline in section 278.01
for appealing property taxes in court.
EFFECTIVE
DATE. This section is
effective beginning with assessment year 2013.
Sec. 13. Minnesota Statutes 2010, section 273.39, is amended to read:
273.39
RURAL AREA.
As used in sections 273.39 to 273.41, the
term "rural area" shall be deemed to mean any area of the state not
included within the boundaries of any incorporated statutory city or
home rule charter city, and such term shall be deemed to include both farm
and nonfarm population thereof.
EFFECTIVE
DATE. This section is
effective beginning with assessment year 2012.
Sec. 14. Minnesota Statutes 2010, section 279.06, subdivision 1, is amended to read:
Subdivision 1. List and notice. Within five days after the filing of such list, the court administrator shall return a copy thereof to the county auditor, with a notice prepared and signed by the court administrator, and attached thereto, which may be substantially in the following form:
State of Minnesota )
) ss.
County of …………….)
District Court
….….………………………Judicial District.
The state of Minnesota, to all persons, companies, or corporations who have or claim any estate, right, title, or interest in, claim to, or lien upon, any of the several parcels of land described in the list hereto attached:
The list of taxes and penalties
on real property for the county of ............................... remaining delinquent on the first Monday in
January, ......., has been filed in the office of the court administrator of
the district court of said county, of which that hereto attached is a copy. Therefore, you, and each of you, are hereby
required to file in the office of said court administrator, on or before the
20th day after the publication of this notice and list, your answer, in
writing, setting forth any objection or defense you may have to the taxes, or
any part thereof, upon any parcel of land described in the list, in, to, or on
which you have or claim any estate, right, title, interest, claim, or lien,
and, in default thereof, judgment will be entered against such parcel of land
for the taxes on such list appearing against it, and for all penalties,
interest, and costs. Based upon said
judgment, the land shall be sold to the state of Minnesota on the second Monday
in May, ....... The period of
redemption for all lands sold to the state at a tax judgment sale shall be three years from the date of sale to the
state of Minnesota if the land is within an incorporated area unless it is:
(a) nonagricultural homesteaded land as
defined in section 273.13, subdivision 22;
(b) homesteaded agricultural land as
defined in section 273.13, subdivision 23, paragraph (a);
(c) seasonal residential recreational
land as defined in section 273.13, subdivisions 22, paragraph (c) , and 25,
paragraph (d), clause (1), in which event the period of redemption is five
years from the date of sale to the state of Minnesota;
(d) abandoned property and pursuant to
section 281.173 a court order has been entered shortening the redemption period
to five weeks; or
(e) vacant property as described under
section 281.174, subdivision 2, and for which a court order is entered
shortening the redemption period under section 281.174.
The period of redemption for all other
lands sold to the state at a tax judgment sale shall be five years from the
date of sale.
Inquiries
as to the proceedings set forth above can be made to the county auditor of.....
county whose address is ......
(Signed) ,……………………………………………….….
Court Administrator of the District Court of the
County of…………………………………………………..
(Here insert list.)
The notice must contain a narrative
description of the various periods to redeem specified in sections 281.17,
281.173, and 281.174, in the manner prescribed by the commissioner of revenue
under subdivision 2.
The list referred to in the notice shall be substantially in the following form:
List of real property for the county of ......................., on which taxes remain delinquent on the first Monday in January, .......
Town of (Fairfield),
Township (40), Range (20),
As to platted property, the form of heading shall conform to circumstances and be substantially in the following form:
City of (Smithtown)
Brown's Addition, or Subdivision
Names (and Current Filed Addresses) for the Taxpayers and Fee Owners and in Addition Those Parties Who Have Filed Their Addresses Pursuant to section 276.041 |
Lot |
Block |
Tax Parcel Number |
Total Tax and Penalty $ cts. |
|
|
|
|
|
John Jones (825 Fremont Fairfield, MN 55000) |
15 |
9 |
58243 |
2.20 |
|
|
|
|
|
Bruce Smith (2059 Hand Fairfield, MN 55000) and Fairfield State Bank (100 Main Street Fairfield, MN 55000) |
16 |
9 |
58244 |
3.15 |
The names, descriptions, and figures employed in parentheses in the above forms are merely for purposes of illustration.
The name of the town, township, range or city, and addition or subdivision, as the case may be, shall be repeated at the head of each column of the printed lists as brought forward from the preceding column.
Errors in the list shall not be deemed to be a material defect to affect the validity of the judgment and sale.
EFFECTIVE
DATE. This section is
effective for lists and notices required after December 31, 2012.
Sec. 15. Minnesota Statutes 2010, section 290A.25, is amended to read:
290A.25
VERIFICATION OF SOCIAL SECURITY NUMBERS.
Annually, the commissioner of revenue shall furnish a list to the county assessor containing the names and Social Security numbers of persons who have applied for both homestead classification under section 273.13 and a property tax refund as a renter under this chapter.
Within 90 days of the
notification, the county assessor shall investigate to determine if the
homestead classification was improperly claimed. If the property owner does not qualify, the
county assessor shall notify the county auditor who will determine the amount
of homestead benefits that has been improperly allowed. For the purpose of this section,
"homestead benefits" has the meaning given in section 273.124,
subdivision 13, paragraph (h) 13b. The county auditor shall send a notice to
persons who owned the affected property at the time the homestead application
related to the improper homestead was filed, demanding reimbursement of the
homestead benefits plus a penalty equal to 100 percent of the homestead
benefits. The person notified may appeal
the county's determination with the Minnesota Tax Court within 60 days of the
date of the notice from the county as provided in section 273.124, subdivision 13,
paragraph (h) 13b.
If the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal has been filed, the county auditor shall certify the amount of taxes and penalty to the county treasurer. The county treasurer will add interest to the unpaid homestead benefits and penalty amounts at the rate provided for delinquent personal property taxes for the period beginning 60 days after demand for payment was made until payment. If the person notified is the current owner of the property, the treasurer may add the total amount of benefits, penalty, interest, and costs to the real estate taxes otherwise payable on the property in the following year. If the person notified is not the current owner of the property, the treasurer may collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of the powers granted in sections 277.20 and 277.21 without exclusion, to enforce payment of the benefits, penalty, interest, and costs, as if those amounts were delinquent tax obligations of the person who owned the property at the time the application related to the improperly allowed homestead was filed. The treasurer may relieve a prior owner of personal liability for the benefits, penalty, interest, and costs, and instead extend those amounts on the tax lists against the property for taxes payable in the following year to the extent that the current owner agrees in writing.
Any amount of homestead benefits recovered by the county from the property owner shall be distributed to the county, city or town, and school district where the property is located in the same proportion that each taxing district's levy was to the total of the three taxing districts' levy for the current year. Any amount recovered attributable to taconite homestead credit shall be transmitted to the St. Louis County auditor to be deposited in the taconite property tax relief account. Any amount recovered that is attributable to supplemental homestead credit is to be transmitted to the commissioner of revenue for deposit in the general fund of the state treasury. The total amount of penalty collected must be deposited in the county general fund.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 16. Minnesota Statutes 2010, section 290B.04, subdivision 2, is amended to read:
Subd. 2. Approval; recording. The commissioner shall approve all initial applications that qualify under this chapter and shall notify qualifying homeowners on or before December 1. The commissioner may investigate the facts or require confirmation in regard to an application. The commissioner shall record or file a notice of qualification for deferral, including the names of the qualifying homeowners and a legal description of the property, in the office of the county recorder, or registrar of titles, whichever is applicable, in the county where the qualifying property is located. The notice must state that it serves as a notice of lien and that it includes deferrals under this section for future years. The commissioner shall prescribe the form of the notice. Execution of the notice by the original or facsimile signature of the commissioner or a delegate entitles them to be recorded, and no other attestation, certification, or acknowledgment is necessary. The homeowner shall pay the recording or filing fees for the notice, which, notwithstanding section 357.18, shall be paid by the homeowner at the time of satisfaction of the lien.
EFFECTIVE DATE. This section is effective for notices that are
both executed and recorded after June 30, 2012.
Sec. 17. Minnesota Statutes 2011 Supplement, section 373.01, subdivision 1, is amended to read:
Subdivision 1. Public corporation; listed powers. (a) Each county is a body politic and corporate and may:
(1) Sue and be sued.
(2) Acquire and hold real and personal property for
the use of the county, and lands sold
for taxes as provided by law.
(3) Purchase and hold for the benefit of the county real estate sold by virtue of judicial proceedings, to which the county is a party.
(4) Sell, lease, and convey real or personal estate owned by the county, and give contracts or options to sell, lease, or convey it, and make orders respecting it as deemed conducive to the interests of the county's inhabitants.
(5) Make all contracts and do all other acts in relation to the property and concerns of the county necessary to the exercise of its corporate powers.
(b) No sale, lease, or conveyance of real estate owned by the county, except the lease of a residence acquired for the furtherance of an approved capital improvement project, nor any contract or option for it, shall be valid, without first advertising for bids or proposals in the official newspaper of the county for three consecutive weeks and once in a newspaper of general circulation in the area where the property is located. The notice shall state the time and place of considering the proposals, contain a legal description of any real estate, and a brief description of any personal property. Leases that do not exceed $15,000 for any one year may be negotiated and are not subject to the competitive bid procedures of this section. All proposals estimated to exceed $15,000 in any one year shall be considered at the time set for the bid opening, and the one most favorable to the county accepted, but the county board may, in the interest of the county, reject any or all proposals.
(c) Sales of personal property the value of which is estimated to be $15,000 or more shall be made only after advertising for bids or proposals in the county's official newspaper, on the county's Web site, or in a recognized industry trade journal. At the same time it posts on its Web site or publishes in a trade journal, the county must publish in the official newspaper, either as part of the minutes of a regular meeting of the county board or in a separate notice, a summary of all requests for bids or proposals that the county advertises on its Web site or in a trade journal. After publication in the official newspaper, on the Web site, or in a trade journal, bids or proposals may be solicited and accepted by the electronic selling process authorized in section 471.345, subdivision 17. Sales of personal property the value of which is estimated to be less than $15,000 may be made either on competitive bids or in the open market, in the discretion of the county board. "Web site" means a specific, addressable location provided on a server connected to the Internet and hosting World Wide Web pages and other files that are generally accessible on the Internet all or most of a day.
(d) Notwithstanding anything to the contrary herein, the county may, when acquiring real property for county highway right-of-way, exchange parcels of real property of substantially similar or equal value without advertising for bids. The estimated values for these parcels shall be determined by the county assessor.
(e) Notwithstanding anything in this section to the contrary, the county may, when acquiring real property for purposes other than county highway right-of-way, exchange parcels of real property of substantially similar or equal value without advertising for bids. The estimated values for these parcels must be determined by the county assessor or a private appraisal performed by a licensed Minnesota real estate appraiser. For the purpose of making these estimates, the county assessor need not be licensed under chapter 82B. Before giving final approval to any exchange of land, the county board shall hold a public hearing on the exchange. At least two weeks before the hearing, the county auditor shall post a notice in the auditor's office and the official newspaper of the county of the hearing that contains a description of the lands affected.
(f) If real estate or personal property remains unsold after advertising for and consideration of bids or proposals the county may employ a broker to sell the property. The broker may sell the property for not less than 90 percent of its appraised market value as determined by the county. The broker's fee shall be set by agreement with the county but may not exceed ten percent of the sale price and must be paid from the proceeds of the sale.
(g) A county or its agent may rent a county-owned residence acquired for the furtherance of an approved capital improvement project subject to the conditions set by the county board and not subject to the conditions for lease otherwise provided by paragraph (a), clause (4), and paragraphs (b), (c), (d), (f), and (h).
(h) In no case shall lands be disposed of without there being reserved to the county all iron ore and other valuable minerals in and upon the lands, with right to explore for, mine and remove the iron ore and other valuable minerals, nor shall the minerals and mineral rights be disposed of, either before or after disposition of the surface rights, otherwise than by mining lease, in similar general form to that provided by section 93.20 for mining leases affecting state lands. The lease shall be for a term not exceeding 50 years, and be issued on a royalty basis, the royalty to be not less than 25 cents per ton of 2,240 pounds, and fix a minimum amount of royalty payable during each year, whether mineral is removed or not. Prospecting options for mining leases may be granted for periods not exceeding one year. The options shall require, among other things, periodical showings to the county board of the results of exploration work done.
(i) Notwithstanding anything in this subdivision to the contrary, the county may, when selling real property owned in fee simple that cannot be improved because of noncompliance with local ordinances regarding minimum area, shape, frontage, or access, proceed to sell the nonconforming parcel without advertising for bid. At the county's discretion, the real property may be restricted to sale to adjoining landowners or may be sold to any other interested party. The property shall be sold to the highest bidder, but in no case shall the property be sold for less than 90 percent of its fair market value as determined by the county assessor. All owners of land adjoining the land to be sold shall be given a written notice at least 30 days before the sale. This paragraph shall be liberally construed to encourage the sale of nonconforming real property and promote its return to the tax roles.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 18. REPEALER.
(a) Minnesota Statutes 2010, section
272.69, is repealed.
(b) Minnesota Statutes 2010, section
273.11, subdivision 22, is repealed.
EFFECTIVE
DATE. Paragraph (a) is
effective the day following final enactment.
Paragraph (b) is effective for taxes payable in 2013 and thereafter.
ARTICLE 3
DEPARTMENT POLICY AND TECHNICAL: SALES AND USE TAXES; SPECIAL TAXES
Section 1. Minnesota Statutes 2010, section 65B.84, subdivision 1, is amended to read:
Subdivision 1. Program described; commissioner's duties; appropriation. (a) The commissioner of commerce shall:
(1) develop and sponsor the implementation of statewide plans, programs, and strategies to combat automobile theft, improve the administration of the automobile theft laws, and provide a forum for identification of critical problems for those persons dealing with automobile theft;
(2) coordinate the development, adoption, and implementation of plans, programs, and strategies relating to interagency and intergovernmental cooperation with respect to automobile theft enforcement;
(3) annually audit the plans and programs that have been funded in whole or in part to evaluate the effectiveness of the plans and programs and withdraw funding should the commissioner determine that a plan or program is ineffective or is no longer in need of further financial support from the fund;
(4) develop a plan of operation including:
(i) an assessment of the scope of the problem of automobile theft, including areas of the state where the problem is greatest;
(ii) an analysis of various methods of combating the problem of automobile theft;
(iii) a plan for providing financial support to combat automobile theft;
(iv) a plan for eliminating car hijacking; and
(v) an estimate of the funds required to implement the plan; and
(5) distribute money, in consultation with the commissioner of public safety, pursuant to subdivision 3 from the automobile theft prevention special revenue account for automobile theft prevention activities, including:
(i) paying the administrative costs of the program;
(ii) providing financial support to the State Patrol and local law enforcement agencies for automobile theft enforcement teams;
(iii) providing financial support to state or local law enforcement agencies for programs designed to reduce the incidence of automobile theft and for improved equipment and techniques for responding to automobile thefts;
(iv)
providing financial support to local prosecutors for programs designed to
reduce the incidence of automobile theft;
(v)
providing financial support to judicial agencies for programs designed to
reduce the incidence of automobile theft;
(vi) providing financial support for neighborhood or community organizations or business organizations for programs designed to reduce the incidence of automobile theft and to educate people about the common methods of automobile theft, the models of automobiles most likely to be stolen, and the times and places automobile theft is most likely to occur; and
(vii) providing financial support for automobile theft educational and training programs for state and local law enforcement officials, driver and vehicle services exam and inspections staff, and members of the judiciary.
(b) The commissioner may not spend in any
fiscal year more than ten percent of the money in the fund for the program's
administrative and operating costs. The
commissioner is annually appropriated and must distribute the amount of the
proceeds credited to the automobile theft prevention special revenue account
each year, less the transfer of $1,300,000 each year to the general fund
described in section 168A.40, subdivision 4 297I.11, subdivision 2.
EFFECTIVE
DATE. This section is
effective for premiums collected after June 30, 2012.
Sec. 2. Minnesota Statutes 2010, section 287.20, is amended by adding a subdivision to read:
Subd. 11. Partition. "Partition" means the
division by conveyance of real property that is held jointly or in common by
two or more persons into individually owned interests. If one of the co-owners gives consideration
for all or a part of the individually owned interest conveyed to them, that
portion of the conveyance is not a part of the partition.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2010, section 297A.665, is amended to read:
297A.665
PRESUMPTION OF TAX; BURDEN OF PROOF.
(a) For the purpose of the proper administration of this chapter and to prevent evasion of the tax, until the contrary is established, it is presumed that:
(1) all gross receipts are subject to the tax; and
(2) all retail sales for delivery in Minnesota are for storage, use, or other consumption in Minnesota.
(b) The burden of proving that a sale is not a taxable retail sale is on the seller. However, a seller is relieved of liability if:
(1) the seller obtains a fully completed exemption certificate or all the relevant information required by section 297A.72, subdivision 2, at the time of the sale or within 90 days after the date of the sale; or
(2) if the seller has not obtained a fully completed exemption certificate or all the relevant information required by section 297A.72, subdivision 2, within the time provided in clause (1), within 120 days after a request for substantiation by the commissioner, the seller either:
(i) obtains in good faith from the
purchaser a fully completed exemption certificate or all the relevant
information required by section 297A.72, subdivision 2, from the purchaser
taken in good faith which means that the exemption certificate claims an
exemption that (A) was statutorily available on the date of the transaction,
(B) could be applicable to the item for which the exemption is claimed, and (C)
is reasonable for the purchaser's type of business; or
(ii) proves by other means that the transaction was not subject to tax.
(c) Notwithstanding paragraph (b), relief from liability does not apply to a seller who:
(1) fraudulently fails to collect the tax; or
(2) solicits purchasers to participate in the unlawful claim of an exemption.
(d) Notwithstanding paragraph (b),
relief from liability does not apply to a seller who has obtained information
under paragraph (b), clause (2), if through the audit process the commissioner
finds the following:
(1) that at the time the information
was provided the seller had knowledge or had reason to know that the
information relating to the exemption was materially false; or
(2) that the seller knowingly
participated in activity intended to purposefully evade the sales tax due on
the transaction.
(d) (e) A certified service
provider, as defined in section 297A.995, subdivision 2, is relieved of
liability under this section to the extent a seller who is its client is
relieved of liability.
(e) (f) A purchaser of
tangible personal property or any items listed in section 297A.63 that are
shipped or brought to Minnesota by the purchaser has the burden of proving that
the property was not purchased from a retailer for storage, use, or consumption
in Minnesota.
(f) (g) If a seller claims
that certain sales are exempt and does not provide the certificate,
information, or proof required by paragraph (b), clause (2), within 120 days
after the date of the commissioner's request for substantiation, then the
exemptions claimed by the seller that required substantiation are disallowed.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2010, section 297F.01, subdivision 23, is amended to read:
Subd. 23. Wholesale
sales price. "Wholesale sales
price" means the price stated on the price list in effect at the time
of sale for which a manufacturer or person sells a tobacco product to a
distributor, exclusive of any discount, promotional offer, or other reduction. For purposes of this subdivision, "price
list" means the manufacturer's price at which tobacco products are made
available for sale to all distributors on an ongoing basis at which a
distributor purchases a tobacco product without any reduction for federal
excise taxes, freight charges, discounts, packaging, or other reductions. Wholesale sales price includes the applicable
federal excise tax regardless of whether it is included in the purchase price.
EFFECTIVE
DATE. This section is
effective for purchases made after December 31, 2012.
Sec. 5. Minnesota Statutes 2010, section 297G.04, subdivision 2, is amended to read:
Subd. 2. Tax credit. A qualified brewer producing fermented malt beverages is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year beginning July 1, regardless of the alcohol content of the product. Qualified brewers may take the credit on the 18th day of each month, but the total credit allowed may not exceed in any fiscal year the lesser of:
(1) the liability for tax; or
(2) $115,000.
For purposes of this subdivision, a
"qualified brewer" means a brewer, whether or not located in this
state, manufacturing less than 100,000 barrels of fermented malt beverages in
the calendar year immediately preceding the calendar fiscal year
for which the credit under this subdivision is claimed. In determining the number of barrels, all
brands or labels of a brewer must be combined.
All facilities for the manufacture of fermented malt beverages owned or
controlled by the same person, corporation, or other entity must be treated as
a single brewer. A brewer is owned or
controlled when more than 50 percent of the voting stock of each member of the
group is directly or indirectly owned by a common owner or by common owners,
whether they are corporate or noncorporate.
EFFECTIVE
DATE. This section is effective
for claims filed after December 31, 2012.
Sec. 6. Minnesota Statutes 2011 Supplement, section 297I.05, subdivision 7, is amended to read:
Subd. 7. Nonadmitted insurance premium tax. (a) A tax is imposed on surplus lines brokers. The rate of tax is equal to three percent of the gross premiums less return premiums paid by an insured whose home state is Minnesota.
(b) A tax is imposed on persons, firms,
or corporations a person, firm, corporation, or purchasing group as
defined in section 60E.02, or any member of a purchasing group, that
procure insurance directly from a nonadmitted insurer. The rate of tax is equal to two percent of
the gross premiums less return premiums paid by an insured whose home state is
Minnesota.
(c) No state other than the home state of an insured may require any premium tax payment for nonadmitted insurance. When Minnesota is the home state of the insured, as provided under section 297I.01, 100 percent of the gross premiums are taxable in Minnesota with no allocation of the tax to other states.
EFFECTIVE
DATE. This section is
effective for premiums received after December 31, 2012.
Sec. 7. Minnesota Statutes 2010, section 297I.05, subdivision 11, is amended to read:
Subd. 11. Retaliatory provisions. (a) If any other state or country imposes any taxes, fines, deposits, penalties, licenses, or fees upon any insurance companies of this state and their agents doing business in another state or country that are in addition to or in excess of those imposed by the laws of this state upon foreign insurance companies and their agents doing business in this state, the same taxes, fines, deposits, penalties, licenses, and fees are imposed upon every similar insurance company of that state or country and their agents doing or applying to do business in this state.
(b) If any conditions precedent to the right to do business in any other state or country are imposed by the laws of that state or country, beyond those imposed upon foreign companies by the laws of this state, the same conditions precedent are imposed upon every similar insurance company of that state or country and their agents doing or applying to do business in that state.
(c) For purposes of this subdivision, "taxes, fines, deposits, penalties, licenses, or fees" means an amount of money that is deposited in the general revenue fund of the state or other similar fund in another state or country and is not dedicated to a special purpose or use or money deposited in the general revenue fund of the state or other similar fund in another state or country and appropriated to the commissioner of commerce or insurance for the operation of the Department of Commerce or other similar agency with jurisdiction over insurance. Taxes, fines, deposits, penalties, licenses, or fees do not include:
(1) special purpose obligations or assessments imposed in connection with particular kinds of insurance, including but not limited to assessments imposed in connection with residual market mechanisms; or
(2) assessments made by the insurance guaranty association, life and health guarantee association, or similar association.
(d) This subdivision applies to taxes
imposed under subdivisions 1, ; 3, ; 4, 6, and;
12, paragraph (a), clauses (1) and (2) ; and 14.
(e) This subdivision does not apply to insurance companies organized or domiciled in a state or country, the laws of which do not impose retaliatory taxes, fines, deposits, penalties, licenses, or fees or which grant, on a reciprocal basis, exemptions from retaliatory taxes, fines, deposits, penalties, licenses, or fees to insurance companies domiciled in this state.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2011 Supplement, section 297I.05, subdivision 12, is amended to read:
Subd. 12. Other entities. (a) A tax is imposed equal to two percent of:
(1) gross premiums less return premiums written for risks resident or located in Minnesota by a risk retention group;
(2) gross premiums less return premiums received by an attorney in fact acting in accordance with chapter 71A;
(3) gross premiums less return premiums
received pursuant to assigned risk policies and contracts of coverage under
chapter 79; and
(4) the direct funded premium received by
the reinsurance association under section 79.34 from self-insurers approved
under section 176.181 and political subdivisions that self-insure; and.
(5) gross premiums less return premiums
paid to an insurer other than a licensed insurance company or a surplus lines broker
for coverage of risks resident or located in Minnesota by a purchasing group or
any members of the purchasing group to a broker or agent for the purchasing
group.
(b) A tax is imposed on a joint self-insurance plan operating under chapter 60F. The rate of tax is equal to two percent of the total amount of claims paid during the fund year, with no deduction for claims wholly or partially reimbursed through stop-loss insurance.
(c) A tax is imposed on a joint self-insurance plan operating under chapter 62H. The rate of tax is equal to two percent of the total amount of claims paid during the fund's fiscal year, with no deduction for claims wholly or partially reimbursed through stop-loss insurance.
(d) A tax is imposed equal to the tax imposed under section 297I.05, subdivision 5, on the gross premiums less return premiums on all coverages received by an accountable provider network or agents of an accountable provider network in Minnesota, in cash or otherwise, during the year.
EFFECTIVE
DATE. This section is
effective for premiums received after December 31, 2012.
Sec. 9. [297I.11]
AUTOMOBILE THEFT PREVENTION SURCHARGE.
Subdivision 1. Surcharge. Each insurer engaged in the writing of
policies of automobile insurance shall collect a surcharge, at the rate of 50
cents per vehicle for every six months of coverage, on each policy of
automobile insurance providing comprehensive insurance coverage issued or
renewed in this state. The surcharge may
not be considered premium for any purpose, including the computation of premium
tax or agents' commissions. The amount
of the surcharge must be separately stated on either a billing or policy
declaration sent to an insured. Insurers
shall remit the revenue derived from this surcharge to the commissioner of
revenue for purposes of the automobile theft prevention program described in
section 65B.84. For purposes of this
subdivision, "policy of automobile insurance" has the meaning given
it in section 65B.14, covering only the following types of vehicles as defined
in section 168.002:
(1) a passenger automobile;
(2) a pickup truck;
(3) a van but not commuter vans as
defined in section 168.126; or
(4) a motorcycle,
except that no vehicle with a gross vehicle weight in
excess of 10,000 pounds is included within this definition.
Subd. 2. Automobile
theft prevention account. A
special revenue account in the state treasury shall be credited with the
proceeds of the surcharge imposed under subdivision 1. Of the revenue in the account, $1,300,000 each
year must be transferred to the general fund.
Revenues in excess of $1,300,000 each year may be used only for the
automobile theft prevention program described in section 65B.84.
Subd. 3. Collection
and administration. The
commissioner shall collect and administer the surcharge imposed by this section
in the same manner as the taxes imposed by this chapter. The commissioner is appropriated annually,
from the automobile theft prevention special revenue account, an amount to
reimburse the Department of Revenue for the costs incurred in administering and
collecting the surcharge imposed under subdivision 1.
EFFECTIVE
DATE. This section is
effective for premiums collected after June 30, 2012.
Sec. 10. Minnesota Statutes 2011 Supplement, section 297I.30, subdivision 1, is amended to read:
Subdivision 1. General
rule. On or before March 1, every
taxpayer subject to taxation under section 297I.05, subdivisions 1 to 5,
; 7, paragraph (b) , ; 12, paragraphs (a), clauses (1)
to (4), (b), (c), and (d),; and 14, shall file an annual return for
the preceding calendar year in the form prescribed by the commissioner.
EFFECTIVE
DATE. This section is
effective for premiums received after December 31, 2012.
Sec. 11. Minnesota Statutes 2011 Supplement, section 297I.30, subdivision 2, is amended to read:
Subd. 2. Surplus
lines brokers and purchasing groups.
On or before February 15 and August 15 of each year, every surplus
lines broker subject to taxation under section 297I.05, subdivision 7,
paragraph (a), and every purchasing group or member of a purchasing group
subject to tax under section 297I.05, subdivision 12, paragraph (a), clause
(5), shall file a return with the commissioner for the preceding six-month
period ending December 31, or June 30, in the form prescribed by the
commissioner.
EFFECTIVE
DATE. This section is
effective for premiums received after December 31, 2012.
Sec. 12. Minnesota Statutes 2010, section 297I.30, is amended by adding a subdivision to read:
Subd. 10. Automobile
theft prevention surcharge. On
or before May 1, August 1, November 1, and February 1 of each year, every
insurer required to pay the surcharge under section 297I.11 shall file a return
with the commissioner for the preceding three-month period ending March 31,
June 30, September 30, and December 31, in the form prescribed by the
commissioner.
EFFECTIVE
DATE. This section is
effective for premiums collected after June 30, 2012.
Sec. 13. REPEALER.
Minnesota Statutes 2010, section
168A.40, subdivisions 3 and 4, are repealed.
EFFECTIVE DATE. This section is effective for premiums collected after June 30, 2012.
ARTICLE 4
DEPARTMENT POLICY AND TECHNICAL: MINERALS
Section 1. Minnesota Statutes 2011 Supplement, section 272.02, subdivision 97, is amended to read:
Subd. 97. Property used in business of mining subject to net proceeds tax. The following property used in the business of mining that is subject to the net proceeds tax under section 298.015 is exempt:
(1) deposits of ores, metals, and minerals and the lands in which they are contained;
(2) all real and personal property used in mining, quarrying, producing, or refining ores, minerals, or metals, including lands occupied by or used in connection with the mining, quarrying, production, or ore refining facilities; and
(3) concentrate or direct reduced ore.
This exemption applies for each year that a person subject to tax under section 298.015 uses the property for mining, quarrying, producing, or refining ores, metals, or minerals.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2011 Supplement, section 298.01, subdivision 3, is amended to read:
Subd. 3. Occupation tax; other ores. Every person engaged in the business of mining, refining, or producing ores, metals, or minerals in this state, except iron ore or taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided in this subdivision. For purposes of this subdivision, mining includes the application of hydrometallurgical processes. Hydrometallurgical processes are processes that extract the ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and recover the ore, metal, or mineral. The tax is determined in the same manner as the tax imposed by section 290.02, except that sections 290.05, subdivision 1, clause (a), 290.17, subdivision 4, and 290.191, subdivision 2, do not apply, and the occupation tax must be computed by applying to taxable income the rate of 2.45 percent. A person subject to occupation tax under this section shall apportion its net income on the basis of the percentage obtained by taking the sum of:
(1) 75 percent of the percentage which the sales made within this state in connection with the trade or business during the tax period are of the total sales wherever made in connection with the trade or business during the tax period;
(2) 12.5 percent of the percentage which the total tangible property used by the taxpayer in this state in connection with the trade or business during the tax period is of the total tangible property, wherever located, used by the taxpayer in connection with the trade or business during the tax period; and
(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred in this state or paid in respect to labor performed in this state in connection with the trade or business during the tax period are of the taxpayer's total payrolls paid or incurred in connection with the trade or business during the tax period.
The tax is in addition to all other taxes.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2010, section 298.018, subdivision 2, is amended to read:
Subd. 2. Outside
taconite assistance area. The
proceeds of the tax paid under sections 298.015 to 298.017 on ores, metals,
or minerals and energy resources mined or extracted outside of the
taconite assistance area defined in section 273.1341, shall be deposited in the
general fund.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 5
DEPARTMENT POLICY AND TECHNICAL: MISCELLANEOUS
Section 1. Minnesota Statutes 2010, section 16A.46, is amended to read:
16A.46
LOST OR DESTROYED WARRANT DUPLICATE; INDEMNITY.
Subdivision 1. Duplicate
warrant. The commissioner may
issue a duplicate of an unpaid warrant to an owner if the owner certifies that
the original was lost or destroyed. The
commissioner may require certification be documented by affidavit. The commissioner may refuse to issue a
duplicate of an unpaid state warrant. If
the commissioner acts in good faith the commissioner is not liable, whether the
application is granted or denied.
Subd. 2. Original
warrant is void. When the
duplicate is issued, the original is void.
The commissioner may require an indemnity bond from the applicant to the
state for double the amount of the warrant for anyone damaged by the issuance
of the duplicate. The commissioner may
refuse to issue a duplicate of an unpaid state warrant. If the commissioner acts in good faith the
commissioner is not liable, whether the application is granted or denied is
not liable to any holder who took the void original warrant for value, whether
the commissioner required an indemnity bond from the applicant or not.
Subd. 3. Unpaid refund or rebate. For an unpaid refund or rebate issued under a tax law administered by the commissioner of revenue that has been lost or destroyed, an affidavit is not required for the commissioner to issue a duplicate if the duplicate is issued to the same name and Social Security number as the original warrant and that information is verified on a tax return filed by the recipient.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2010, section 270C.38, subdivision 1, is amended to read:
Subdivision 1. Sufficient notice. (a) If no method of notification of a written determination or action of the commissioner is otherwise specifically provided for by law, notice of the determination or action sent postage prepaid by United States mail to the taxpayer or other person affected by the determination or action at the taxpayer's or person's last known address, is sufficient. If the taxpayer or person being notified is deceased or is under a legal disability, or, in the case of a corporation being notified that has terminated its existence, notice to the last known address of the taxpayer, person, or corporation is sufficient, unless the department has been provided with a new address by a party authorized to receive notices from the commissioner.
(b) If a taxpayer or other person
agrees to accept notification by electronic means, notice of a determination or
action of the commissioner sent by electronic mail to the taxpayer's or
person's last known electronic mailing address as provided for in section
325L.08 is sufficient.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2010, section 270C.42, subdivision 2, is amended to read:
Subd. 2. Penalty
for failure to pay electronically. In
addition to other applicable penalties imposed by law, after notification from
the commissioner to the taxpayer that payments for a tax payable to the commissioner
are required to be made by electronic means, and the payments are remitted by
some other means, there is a penalty in the amount of five percent of each
payment that should have been remitted electronically. After the commissioner's initial notification
to the taxpayer that payments are required to be made by electronic means, the
commissioner is not required to notify the taxpayer in subsequent periods if
the initial notification specified the amount of tax liability at which a
taxpayer is required to remit payments by electronic means. The penalty can be abated under the abatement
procedures prescribed in section 270C.34 if the failure to remit the payment
electronically is due to reasonable cause.
The penalty bears interest at the rate specified in section 270C.40 from
the due date of the payment of the tax provided in section
270C.40, subdivision 3, to the date of payment of the penalty.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2010, section 270C.69, subdivision 1, is amended to read:
Subdivision 1. Notice and procedures. (a) The commissioner may, within five years after the date of assessment of the tax, or if a lien has been filed under section 270C.63, within the statutory period for enforcement of the lien, give notice to any employer deriving income which has a taxable situs in this state regardless of whether the income is exempt from taxation, that an employee of that employer is delinquent in a certain amount with respect to any taxes, including penalties, interest, and costs. The commissioner can proceed under this section only if the tax is uncontested or if the time for appeal of the tax has expired. The commissioner shall not proceed under this section until the expiration of 30 days after mailing to the taxpayer, at the taxpayer's last known address, a written notice of (1) the amount of taxes, interest, and penalties due from the taxpayer and demand for their payment, and (2) the commissioner's intention to require additional withholding by the taxpayer's employer pursuant to this section. The effect of the notice shall expire one year after it has been mailed to the taxpayer provided that the notice may be renewed by mailing a new notice which is in accordance with this section. The renewed notice shall have the effect of reinstating the priority of the original claim. The notice to the taxpayer shall be in substantially the same form as that provided in section 571.72. The notice shall further inform the taxpayer of the wage exemptions contained in section 550.37, subdivision 14. If no statement of exemption is received by the commissioner within 30 days from the mailing of the notice, the commissioner may proceed under this section. The notice to the taxpayer's employer may be served by mail or by delivery by an agent of the department and shall be in substantially the same form as provided in section 571.75. Upon receipt of notice, the employer shall withhold from compensation due or to become due to the employee, the total amount shown by the notice, subject to the provisions of section 571.922. The employer shall continue to withhold each pay period until the notice is released by the commissioner under section 270C.7109. Upon receipt of notice by the employer, the claim of the state of Minnesota shall have priority over any subsequent garnishments or wage assignments. The commissioner may arrange between the employer and the employee for withholding a portion of the total amount due the employee each pay period, until the total amount shown by the notice plus accrued interest has been withheld.
(b) The "compensation due" any employee is defined in accordance with the provisions of section 571.921. The maximum withholding allowed under this section for any one pay period shall be decreased by any amounts payable pursuant to a garnishment action with respect to which the employer was served prior to being served with the notice of delinquency and any amounts covered by any irrevocable and previously effective assignment of wages; the employer shall give notice to the commissioner of the amounts and the facts relating to such assignments within ten days after the service of the notice of delinquency on the form provided by the commissioner as noted in this section.
(c) Within ten days after the
expiration of such pay period, the employer shall remit to the commissioner, on
a form and in the manner prescribed by the commissioner, the amount withheld
during each pay period under this section.
The employer must file all wage levy disclosure forms and remit all
wage levy payments by electronic means.
EFFECTIVE
DATE. This section is
effective for wage levy disclosures or wage levy payments filed or made after
December 31, 2012.
Sec. 5. Minnesota Statutes 2010, section 287.385, subdivision 7, is amended to read:
Subd. 7. Interest
on penalties. A penalty imposed
under this chapter bears interest from the date payment was required to be
paid, including any extensions, provided in section 270C.40, subdivision
3, to the date of payment of the penalty.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 6. Minnesota Statutes 2010, section 289A.55, subdivision 9, is amended to read:
Subd. 9. Interest
on penalties. (a) A penalty imposed
under section 289A.60, subdivision 1, 2, 2a, 4, 5, 6, or 21 bears interest from
the date the return or payment was required to be filed or paid, including
any extensions provided in section 270C.40, subdivision 3, to the
date of payment of the penalty.
(b) A penalty not included in paragraph (a) bears interest only if it is not paid within 60 days from the date of notice. In that case interest is imposed from the date of notice to the date of payment.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 7. Minnesota Statutes 2010, section 289A.60, subdivision 4, is amended to read:
Subd. 4. Substantial understatement of liability; penalty. (a) The commissioner of revenue shall impose a penalty for substantial understatement of any tax payable to the commissioner, except a tax imposed under chapter 297A.
(b) There must be added to the tax an amount equal to 20 percent of the amount of any underpayment attributable to the understatement. There is a substantial understatement of tax for the period if the amount of the understatement for the period exceeds the greater of:
(1) ten percent of the tax required to be shown on the return for the period; or
(2)(i) $10,000 in the case of a mining company or a corporation, other than an S corporation as defined in section 290.9725, when the tax is imposed by chapter 290 or section 298.01 or 298.015, or
(ii) $5,000 in the case of any other taxpayer, and in the case of a mining company or a corporation any tax not imposed by chapter 290 or section 298.01 or 298.015.
(c) For a corporation, other than an S corporation, there is also a substantial understatement of tax for any taxable year if the amount of the understatement for the taxable year exceeds the lesser of:
(1) ten percent of the tax required to be shown on the return for the taxable year (or, if greater, $10,000); or
(2) $10,000,000.
(d) The term "understatement" means the excess of the amount of the tax required to be shown on the return for the period, over the amount of the tax imposed that is shown on the return. The excess must be determined without regard to items to which subdivision 27 applies. The amount of the understatement shall be reduced by that part of the understatement that is attributable to the tax treatment of any item by the taxpayer if (1) there is or was substantial authority for the treatment, or (2)(i) any item with respect to which the relevant facts affecting the item's tax treatment are adequately disclosed in the return or in a statement attached to the return and (ii) there is a reasonable basis for the tax treatment of the item. The exception for substantial authority under clause (1) does not apply to positions listed by the Secretary of the Treasury under section 6662(d)(3) of the Internal Revenue Code. A corporation does not have a reasonable basis for its tax treatment of an item attributable to a multiple-party financing transaction if the treatment does not clearly reflect the income of the corporation within the meaning of section 6662(d)(2)(B) of the Internal Revenue Code. The special rules in cases involving tax shelters provided in section 6662(d)(2)(C) of the Internal Revenue Code shall apply and shall apply to a tax shelter the principal purpose of which is the avoidance or evasion of state taxes.
(e) The commissioner may abate all or any
part of the addition to the tax provided by this section on a showing by the
taxpayer that there was reasonable cause for the understatement, or part of it,
and that the taxpayer acted in good faith.
The additional tax and penalty shall bear interest at the rate as
specified in section 270C.40 from the time the tax should have been paid
until paid.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2010, section 296A.22, is amended to read:
296A.22
NONPAYMENT OF TAX; CIVIL PENALTIES.
Subdivision 1. Penalty for failure to pay tax, general rule. Upon the failure of any person to pay any tax or fee when due, a penalty of one percent per day for the first ten days of delinquency shall accrue, and thereafter the tax, fees, and penalty shall bear interest at the rate specified in section 270C.40 until paid.
Subd. 2. Collection authority. Upon such a failure to pay any tax or fees within the time provided by this chapter, all taxes and fees imposed by this chapter shall become immediately due and payable, and may be collected as provided in chapter 270C.
Subd. 3. Operating
without license. If any person
operates as a distributor, special fuel dealer, bulk purchaser, or motor
carrier without first securing the license required under this chapter, any tax
or fee imposed by this chapter shall become immediately due and payable. A penalty of 25 percent is imposed upon the
tax and fee due. The tax, and
fees, and penalty shall bear interest at the rate specified in section
270C.40. The penalty imposed in this
subdivision shall bear interest from the date provided in section 270C.40,
subdivision 3, to the date of payment of the penalty.
Subd. 4. Unlawful use of dyed fuel. (a) If any dyed fuel is sold or held for sale by a person for any use which the person knows or has reason to know is not a nontaxable use of the fuel; or if any dyed fuel is held for use or used in a licensed motor vehicle or for any other use by a person for a use other than a nontaxable use and the person knew, or had reason to know, that the fuel was so dyed; or if a person willfully alters, or attempts to alter, the strength or composition of any dye or marking in any dyed fuel, then the person shall pay a penalty in addition to the tax, if any.
(b) Except as provided in paragraph (c), the amount of penalty under paragraph (a) for each act is the greater of $1,000, or $10 for each gallon of dyed fuel involved.
(c) With regard to a multiple violation under paragraph (a), the penalty shall be applied by increasing the amount in paragraph (b) by the product of (1) such amount, and (2) the number of prior penalties, if any, imposed by this section on the person, or a related person, or any predecessor of the person or related person.
(d) If a penalty is imposed under this subdivision on a business entity, each officer, employee, or agent of the entity who willfully participated in any act giving rise to the penalty is jointly and severally liable with the entity for the penalty.
Subd. 5. Receiver appointed. In the event a suit is instituted as provided in subdivision 2, the court shall, upon application, appoint a receiver of the property and business of the delinquent defendant for the purpose of impounding the same as security for any judgment which has been or may be recovered.
Subd. 6. Sale prohibited under certain conditions. No petroleum product shall be unloaded or sold by any person or distributor whose tax and fees are the basis for collection action under subdivision 2.
Subd. 7. Payment of penalties. The penalties imposed by this section are collected and paid in the same manner as taxes.
Subd. 8. Penalties are additional. The civil penalties imposed by this section are in addition to the criminal penalties imposed by this chapter.
Subd. 9. Abatement of penalty. (a) The commissioner may by written order abate any penalty imposed under this section, if in the commissioner's opinion there is reasonable cause to do so.
(b) A request for abatement of penalty must be filed with the commissioner within 60 days of the date the notice stating that a penalty has been imposed was mailed to the taxpayer's last known address.
(c) If the commissioner issues an order denying a request for abatement of penalty, the taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to Tax Court as provided in section 271.06. If the commissioner does not issue an order on the abatement request within 60 days from the date the request is received, the taxpayer may appeal to Tax Court as provided in section 271.06.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 9. Minnesota Statutes 2010, section 297E.14, subdivision 7, is amended to read:
Subd. 7. Interest
on penalties. (a) A penalty imposed
under section 297E.12, subdivision 1, 2, 3, 4, or 5, bears interest from the
date the return or payment was required to be filed or paid, including any
extensions provided in section 270C.40, subdivision 3, to the date
of payment of the penalty.
(b) A penalty not included in paragraph (a) bears interest only if it is not paid within ten days from the date of notice. In that case interest is imposed from the date of notice to the date of payment.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 10. Minnesota Statutes 2010, section 297F.09, subdivision 9, is amended to read:
Subd. 9. Interest. The amount of tax not timely paid,
together with any penalty imposed in this section, bears interest at the
rate specified in section 270C.40 from the time such tax should have been paid
until paid. The penalty imposed in
this section bears interest at the rate specified in section 270C.40 from the
date provided in section 270C.40, subdivision 3, to the date of payment of the
penalty. Any interest and penalty is
added to the tax and collected as a part of it.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 11. Minnesota Statutes 2010, section 297F.18, subdivision 7, is amended to read:
Subd. 7. Interest
on penalties. (a) A penalty imposed
under section 297F.19, subdivisions 2 to 7, bears interest from the date the
return or payment was required to be filed or paid, including any extensions
provided in section 270C.40, subdivision 3, to the date of payment of
the penalty.
(b) A penalty not included in paragraph (a) bears interest only if it is not paid within ten days from the date of the notice. In that case interest is imposed from the date of notice to the date of payment.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 12. Minnesota Statutes 2010, section 297G.09, subdivision 8, is amended to read:
Subd. 8. Interest. The amount of tax not timely paid,
together with any penalty imposed by this chapter, bears interest at the
rate specified in section 270C.40 from the time the tax should have been paid
until paid. Any penalty imposed by
this chapter bears interest from the date provided in section 270C.40,
subdivision 3, to the date of payment of the penalty. Any interest and penalty is added to the tax
and collected as a part of it.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 13. Minnesota Statutes 2010, section 297G.17, subdivision 7, is amended to read:
Subd. 7. Interest
on penalties. (a) A penalty imposed
under section 297G.18, subdivisions 2 to 7, bears interest from the date the
return or payment was required to be filed or paid, including any extensions
provided in section 270C.40, subdivision 3, to the date of payment of
the penalty.
(b) A penalty not included in paragraph (a) bears interest only if it is not paid within ten days from the date of the notice. In that case interest is imposed from the date of notice to the date of payment.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 14. Minnesota Statutes 2010, section 297I.80, subdivision 1, is amended to read:
Subdivision 1. Payable to commissioner. (a) When interest is required under this section, interest is computed at the rate specified in section 270C.40.
(b) If a tax or surcharge is not paid within the time named by law for payment, the unpaid tax or surcharge bears interest from the date the tax or surcharge should have been paid until the date the tax or surcharge is paid.
(c) Whenever a taxpayer is liable for additional tax or surcharge because of a redetermination by the commissioner or other reason, the additional tax or surcharge bears interest from the time the tax or surcharge should have been paid until the date the tax or surcharge is paid.
(d) A penalty bears interest from the date
the return or payment was required to be filed or paid provided in
section 270C.40, subdivision 3, to the date of payment of the penalty.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 6
PUBLIC FINANCE
Section 1. Minnesota Statutes 2010, section 373.40, subdivision 1, is amended to read:
Subdivision 1. Definitions. For purposes of this section, the following terms have the meanings given.
(a) "Bonds" means an obligation as defined under section 475.51.
(b) "Capital improvement" means acquisition or betterment of public lands, buildings, or other improvements within the county for the purpose of a county courthouse, administrative building, health or social service facility, correctional facility, jail, law enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads and bridges, public works facilities, fairgrounds buildings, and records and data storage facilities, and the acquisition of development rights in the form of conservation easements under chapter 84C. An improvement must have an expected useful life of five years or more to qualify. "Capital improvement" does not include a recreation or sports facility building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility, swimming pool, exercise room or health spa), unless the building is part of an outdoor park facility and is incidental to the primary purpose of outdoor recreation.
(c) "Metropolitan county" means a county located in the seven-county metropolitan area as defined in section 473.121 or a county with a population of 90,000 or more.
(d) "Population" means the population established by the most recent of the following (determined as of the date the resolution authorizing the bonds was adopted):
(1) the federal decennial census,
(2) a special census conducted under contract by the United States Bureau of the Census, or
(3) a
population estimate made either by
the Metropolitan Council or by the
state demographer under section 4A.02.
(e) "Qualified indoor ice arena" means a facility that meets the requirements of section 373.43.
(f) "Tax capacity" means total taxable market value, but does not include captured market value.
Sec. 2. Minnesota Statutes 2010, section 373.40, subdivision 2, is amended to read:
Subd. 2. Application of election requirement. (a) Bonds issued by a county to finance capital improvements under an approved capital improvement plan are not subject to the election requirements of section 375.18 or 475.58. The bonds must be approved by vote of at least three-fifths of the members of the county board. In the case of a metropolitan county, the bonds must be approved by vote of at least two-thirds of the members of the county board.
(b) Before issuance of bonds qualifying under this section, the county must publish a notice of its intention to issue the bonds and the date and time of a hearing to obtain public comment on the matter. The notice must be published in the official newspaper of the county or in a newspaper of general circulation in the county. The notice must be published at least 14, but not more than 28, days before the date of the hearing.
(c) A county may issue the bonds only upon obtaining the approval of a majority of the voters voting on the question of issuing the obligations, if a petition requesting a vote on the issuance is signed by voters equal to five percent of the votes cast in the county in the last county general election and is filed with the county auditor within
30 days after the public
hearing. The commissioner of revenue
shall prepare a suggested form of the question to be presented at the election
If the county elects not to submit the question to the voters, the county
shall not propose the issuance of bonds under this section for the same purpose
and in the same amount for a period of 365 days from the date of receipt of the
petition. If the question of issuing the
bonds is submitted and not approved by the voters, the provisions of section
475.58, subdivision 1a, apply.
Sec. 3. Minnesota Statutes 2010, section 373.40, subdivision 4, is amended to read:
Subd. 4. Limitations on amount. A county may not issue bonds under this section if the maximum amount of principal and interest to become due in any year on all the outstanding bonds issued pursuant to this section (including the bonds to be issued) will equal or exceed 0.12 percent of taxable market value of property in the county. Calculation of the limit must be made using the taxable market value for the taxes payable year in which the obligations are issued and sold, provided that, for purposes of determining the principal and interest due in any year, the county may deduct the amount of interest expected to be paid or reimbursed to the county by the federal government in that year on any outstanding bonds or the bonds to be issued. This section does not limit the authority to issue bonds under any other special or general law.
Sec. 4. Minnesota Statutes 2010, section 474A.02, subdivision 23a, is amended to read:
Subd. 23a. Qualified bonds. "Qualified bonds" means the specific type or types of obligations that are subject to the annual volume cap. Qualified bonds include the following types of obligations as defined in federal tax law:
(a) "public facility bonds"
means "exempt facility bonds" as defined in federal tax law, except
for residential rental project bonds, which are those obligations issued to
finance airports, docks and wharves, mass commuting facilities, facilities for
the furnishing of water, sewage facilities, solid waste disposal facilities,
facilities for the local furnishing of electric energy or gas, local district
heating or cooling facilities, and qualified hazardous waste facilities. New bonds and other obligations are
ineligible to receive state allocations or entitlement authority for public
facility projects under this section if they have been issued:
(1) for the purpose of refinancing, refunding, or otherwise defeasing existing debt; and
(2) more than one calendar year prior to the date of application;
(b) "residential rental project bonds" which are those obligations issued to finance qualified residential rental projects;
(c) "mortgage bonds";
(d) "small issue bonds" issued to finance manufacturing projects and the acquisition or improvement of agricultural real or personal property under sections 41C.01 to 41C.13;
(e) "student loan bonds" issued by or on behalf of the Minnesota Office of Higher Education;
(f) "redevelopment bonds";
(g) "governmental bonds" with a nonqualified amount in excess of $15,000,000 as set forth in section 141(b)5 of federal tax law; and
(h) "enterprise zone facility
bonds" issued to finance facilities located within empowerment zones or
enterprise communities, as authorized under Public Law 103-66, section 13301
section 1394 of the Internal Revenue Code.
Sec. 5. Minnesota Statutes 2010, section 474A.04, subdivision 1a, is amended to read:
Subd. 1a. Entitlement
reservations; carryforward; deduction.
Any amount returned by an entitlement issuer before July 15 shall be
reallocated through the housing pool. Any
amount returned on or after July 15 shall be reallocated through the unified
pool. An amount returned after the last
Monday in November shall be reallocated to the Minnesota housing finance agency. Any amount of bonding authority that an
entitlement issuer carries forward under federal tax law that is not
permanently issued or for which the governing body of the entitlement issuer
has not enacted a resolution electing to use the authority for mortgage credit
certificates and has not provided a notice of issue to the commissioner before
4:30 p.m. on the last business day in December of the succeeding calendar year
shall be deducted from the entitlement allocation for that entitlement issuer
in the next succeeding calendar year. Any
amount deducted from an entitlement issuer's allocation under this subdivision
shall be reallocated to other entitlement issuers, the housing pool, the small
issue pool, and the public facilities pool on a proportional basis consistent
with section 474A.03.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to any bonding
authority allocated in 2011 and subsequent years.
Sec. 6. Minnesota Statutes 2010, section 474A.062, is amended to read:
474A.062
MINNESOTA OFFICE OF HIGHER EDUCATION 120-DAY ISSUANCE EXEMPTION.
The Minnesota Office of Higher Education
is exempt from the 120-day issuance requirements in this chapter and may carry
forward allocations for student loan bonds into one successive calendar year,
subject to carryforward notice requirements of section 474A.131, subdivision 2.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to any bonding
authority allocated in 2011 and subsequent years.
Sec. 7. Minnesota Statutes 2010, section 474A.091, subdivision 3a, is amended to read:
Subd. 3a. Mortgage bonds. (a) Bonding authority remaining in the unified pool on October 1 is available for single-family housing programs for cities that applied in January and received an allocation under section 474A.061, subdivision 2a, in the same calendar year. The Minnesota Housing Finance Agency shall receive an allocation for mortgage bonds pursuant to this section, minus any amounts for a city or consortium that intends to issue bonds on its own behalf under paragraph (c).
(b) The agency may issue bonds on behalf of participating cities. The agency shall request an allocation from the commissioner for all applicants who choose to have the agency issue bonds on their behalf and the commissioner shall allocate the requested amount to the agency. Allocations shall be awarded by the commissioner each Monday commencing on the first Monday in October through the last Monday in November for applications received by 4:30 p.m. on the Monday of the week preceding an allocation.
For cities who choose to have the agency issue bonds on their behalf, allocations will be made loan by loan, on a first-come, first-served basis among the cities. The agency shall submit an application fee pursuant to section 474A.03, subdivision 4, and an application deposit equal to two percent of the requested allocation to the commissioner when requesting an allocation from the unified pool. After awarding an allocation and receiving a notice of issuance for mortgage bonds issued on behalf of the participating cities, the commissioner shall transfer the application deposit to the Minnesota Housing Finance Agency.
For purposes of paragraphs (a) to (d), "city" means a county or a consortium of local government units that agree through a joint powers agreement to apply together for single-family housing programs, and has the meaning given it in section 462C.02, subdivision 6. "Agency" means the Minnesota Housing Finance Agency.
(c) Any city that received an allocation pursuant to section 474A.061, subdivision 2a, paragraph (f) , in the current year that wishes to receive an additional allocation from the unified pool and issue bonds on its own behalf or pursuant to a joint powers agreement shall notify the Minnesota Housing Finance Agency by the third Monday in September. The total amount of allocation for mortgage bonds for a city choosing to issue bonds on its own behalf or through a joint powers agreement is limited to the lesser of: (i) the amount requested, or (ii) the product of the total amount available for mortgage bonds from the unified pool, multiplied by the ratio of the population of each city that applied in January and received an allocation under section 474A.061, subdivision 2a, in the same calendar year, as determined by the most recent estimate of the city's population released by the state demographer's office to the total of the population of all the cities that applied in January and received an allocation under section 474A.061, subdivision 2a, in the same calendar year. If a city choosing to issue bonds on its own behalf or through a joint powers agreement is located within a county that has also chosen to issue bonds on its own behalf or through a joint powers agreement, the city's population will be deducted from the county's population in calculating the amount of allocations under this paragraph.
The Minnesota Housing Finance Agency shall notify each city choosing to issue bonds on its own behalf or pursuant to a joint powers agreement of the amount of its allocation by October 15. Upon determining the amount of the allocation of each choosing to issue bonds on its own behalf or through a joint powers agreement, the agency shall forward a list specifying the amounts allotted to each city.
A city that chooses to issue bonds on its own behalf or through a joint powers agreement may request an allocation from the commissioner by forwarding an application with an application fee pursuant to section 474A.03, subdivision 4, and an application deposit equal to two percent of the requested amount to the commissioner no later than 4:30 p.m. on the Monday of the week preceding an allocation. Allocations to cities that choose to issue bonds on their own behalf shall be awarded by the commissioner on the first Monday after October 15 through the last Monday in November. No city may receive an allocation from the commissioner after the last Monday in November. The commissioner shall allocate the requested amount to the city or cities subject to the limitations under this subdivision.
If a city issues mortgage bonds from an allocation received under this paragraph, the issuer must provide for the recycling of funds into new loans. If the issuer is not able to provide for recycling, the issuer must notify the commissioner in writing of the reason that recycling was not possible and the reason the issuer elected not to have the Minnesota Housing Finance Agency issue the bonds. "Recycling" means the use of money generated from the repayment and prepayment of loans for further eligible loans or for the redemption of bonds and the issuance of current refunding bonds.
(d) No entitlement city or county or city in an entitlement county may apply for or be allocated authority to issue mortgage bonds or use mortgage credit certificates from the unified pool.
(e) An allocation awarded to the agency
for mortgage bonds under this section may be carried forward by the agency into
the next succeeding calendar year subject to notice requirements under
section 474A.131 and is available until the last business day in December of
that succeeding calendar year.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to any bonding
authority allocated in 2011 and subsequent years.
Sec. 8. Minnesota Statutes 2010, section 475.521, subdivision 2, is amended to read:
Subd. 2. Election requirement. (a) Bonds issued by a municipality to finance capital improvements under an approved capital improvements plan are not subject to the election requirements of section 475.58. The bonds must be approved by an affirmative vote of three-fifths of the members of a five-member governing body. In the case of a governing body having more or less than five members, the bonds must be approved by a vote of at least two-thirds of the members of the governing body.
(b) Before the issuance of bonds qualifying under this section, the municipality must publish a notice of its intention to issue the bonds and the date and time of the hearing to obtain public comment on the matter. The notice must be published in the official newspaper of the municipality or in a newspaper of general circulation in the municipality. Additionally, the notice may be posted on the official Web site, if any, of the municipality. The notice must be published at least 14 but not more than 28 days before the date of the hearing.
(c) A municipality may issue the bonds
only after obtaining the approval of a majority of the voters voting on the
question of issuing the obligations, if a petition requesting a vote on the
issuance is signed by voters equal to five percent of the votes cast in the
municipality in the last municipal general election and is filed with
the clerk within 30 days after the public hearing. The commissioner of revenue shall prepare
a suggested form of the question to be presented at the election If the
municipality elects not to submit the question to the voters, the municipality
shall not propose the issuance of bonds under this section for the same purpose
and in the same amount for a period of 365 days from the date of receipt of the
petition. If the question of issuing the
bonds is submitted and not approved by the voters, the provisions of section
475.58, subdivision 1a, apply.
Sec. 9. Minnesota Statutes 2010, section 475.521, subdivision 4, is amended to read:
Subd. 4. Limitations on amount. A municipality may not issue bonds under this section if the maximum amount of principal and interest to become due in any year on all the outstanding bonds issued under this section, including the bonds to be issued, will equal or exceed 0.16 percent of the taxable market value of property in the municipality. Calculation of the limit must be made using the taxable market value for the taxes payable year in which the obligations are issued and sold, provided that, for purposes of determining the principal and interest due in any year, the municipality may deduct the amount of interest expected to be paid or reimbursed to the municipality by the federal government in that year on any outstanding bonds or the bonds to be issued. In the case of a municipality with a population of 2,500 or more, the bonds are subject to the net debt limits under section 475.53. In the case of a shared facility in which more than one municipality participates, upon compliance by each participating municipality with the requirements of subdivision 2, the limitations in this subdivision and the net debt represented by the bonds shall be allocated to each participating municipality in proportion to its required financial contribution to the financing of the shared facility, as set forth in the joint powers agreement relating to the shared facility. This section does not limit the authority to issue bonds under any other special or general law.
Sec. 10. Minnesota Statutes 2010, section 475.58, subdivision 3b, is amended to read:
Subd. 3b. Street reconstruction. (a) A municipality may, without regard to the election requirement under subdivision 1, issue and sell obligations for street reconstruction, if the following conditions are met:
(1) the streets are reconstructed under a street reconstruction plan that describes the street reconstruction to be financed, the estimated costs, and any planned reconstruction of other streets in the municipality over the next five years, and the plan and issuance of the obligations has been approved by a vote of all of the members of the governing body present at the meeting following a public hearing for which notice has been published in the official newspaper at least ten days but not more than 28 days prior to the hearing; and
(2) if a petition requesting a vote on the issuance is signed by voters equal to five percent of the votes cast in the last municipal general election and is filed with the municipal clerk within 30 days of the public hearing, the municipality may issue the bonds only after obtaining the approval of a majority of the voters voting on the question of the issuance of the obligations. If the municipality elects not to submit the question to the voters, the municipality shall not propose the issuance of bonds under this section for the same purpose and in the same amount for a period of 365 days from the date of receipt of the petition. If the question of issuing the bonds is submitted and not approved by the voters, the provisions of subdivision 1a, apply.
(b) Obligations issued under this subdivision are subject to the debt limit of the municipality and are not excluded from net debt under section 475.51, subdivision 4.
(c) For purposes of this subdivision, street reconstruction includes utility replacement and relocation and other activities incidental to the street reconstruction, turn lanes and other improvements having a substantial public safety function, realignments, other modifications to intersect with state and county roads, and the local share of state and county road projects.
(d) Except in the case of turn lanes, safety improvements, realignments, intersection modifications, and the local share of state and county road projects, street reconstruction does not include the portion of project cost allocable to widening a street or adding curbs and gutters where none previously existed.
Sec. 11. Laws 1971, chapter 773, section 1, subdivision 2, as amended by Laws 1974, chapter 351, section 5, Laws 1976, chapter 234, sections 1 and 7, Laws 1978, chapter 788, section 1, Laws 1981, chapter 369, section 1, Laws 1983, chapter 302, section 1, Laws 1988, chapter 513, section 1, Laws 1992, chapter 511, article 9, section 23, Laws 1998, chapter 389, article 3, section 27, and Laws 2002, chapter 390, section 23, is amended to read:
Subd. 2. For each of the years 2003 to 2013 2012
to 2024, the city of St. Paul is authorized to issue bonds in the
aggregate principal amount of $20,000,000 for each year.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 12. Laws 2003, chapter 127, article 12, section 28, is amended to read:
Sec. 28. NURSING
HOME BONDS AUTHORIZED.
(a) Itasca County may issue bonds
under Minnesota Statutes, sections 376.55 and 376.56, to finance the
construction of a 35-bed nursing home facility to replace an existing 35-bed
private facility located in the county. The
bonds issued under this section must may be payable solely from
revenues and or may not be general obligations of the
county.
(b) Before issuing general obligation
bonds under this section, the county must publish a notice of its intention to
issue the bonds and the date and time of a hearing to obtain public comment on
the matter. The notice must be published
on the official Web site of the county or in a newspaper of general circulation
in the county. The notice must be
published at least 14 but not more than 28 days before the date of the hearing. The county may issue the bonds only upon
obtaining the approval of a majority of the voters voting on the question of
issuing the obligations, if a petition requesting a vote on the issuance is
signed by voters equal to five percent of the votes cast in the county in the
last general election and is filed with the county auditor within 30 days after
the public hearing.
EFFECTIVE
DATE; LOCAL APPROVAL. This
section is effective the day after the governing body of Itasca County and its
chief clerical officer timely complete their compliance with Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
Sec. 13. CARRYFORWARD
OF BONDING AUTHORITY FOR 2008, 2009, AND 2010; NO DEDUCTION FROM ENTITLEMENT
ALLOCATION.
Notwithstanding Minnesota Statutes,
section 474A.04, subdivision 1a, and Laws 2009, chapter 88, article 6, section
27, bonding authority that was allocated to an entitlement issuer in 2008,
2009, and 2010 and that was carried forward under federal tax law, but for
which the entitlement issuer did not provide a notice of issue to the
commissioner of management and budget before 4:30 p.m. on the last business day
of December 2011 must not be deducted from the entitlement allocation for that
entitlement issuer in 2012.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies retroactively to
rescind any reallocation by the commissioner of management and budget under
Minnesota Statutes, section 474A.04, subdivision 1a, of any amounts so
deducted.
Sec. 14. WOODBURY;
EXEMPTION FROM REFERENDUM.
(a) Notwithstanding the referendum
requirement in Minnesota Statutes, section 475.58, subdivision 1, or any other
provision of law, the city of Woodbury may issue and sell obligations to pay
for the cost of renovating, improving, expanding, and equipping the Bielenberg
Sports Center, along with costs of issuance of the obligations and capitalized
interest, if:
(1) the obligations are secured by a
pledge of revenues from the facility; and
(2) the city finds, based on analysis
provided by a professional experienced in finance, that the facility's revenues
and a property tax levy equal to the maximum annual property tax levy used to
pay the bonds previously issued to finance, in whole or in part, the facility
will in the aggregate be sufficient to pay the obligations without the
imposition of an additional property tax levy pledged to the obligations.
(b) Before issuing bonds under this
section, the city must publish a notice of its intention to issue the bonds and
the date and time of a hearing to obtain public comment on the matter. The notice must be published on the official
Web site of the city or in a newspaper of general circulation in the city. The notice must be published at least 14 but
not more than 28 days before the date of the hearing. The city may issue the bonds only upon
obtaining the approval of a majority of the voters voting on the question of
issuing the obligations, if a petition requesting a vote on the issuance is
signed by voters equal to five percent of the votes cast in the city in the
last general election and is filed with the city clerk within 30 days after the
public hearing.
EFFECTIVE
DATE; LOCAL APPROVAL. This
section is effective the day after the governing body of the city of Woodbury
and its chief clerical officer timely complete their compliance with Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
ARTICLE 7
PROPERTY TAXES
Section 1. Minnesota Statutes 2010, section 6.91, subdivision 2, is amended to read:
Subd. 2. Benefits of participation. (a) A county or city that elects to participate in the standard measures program for 2011 is: (1) eligible for per capita reimbursement of $0.14 per capita, but not to exceed $25,000 for any government entity; and (2) exempt from levy limits under sections 275.70 to 275.74 for taxes payable in 2012, if levy limits are in effect.
(b) Any county or city that elects to
participate in the standard measures program for 2012 is eligible for per
capita reimbursement of $0.14 per capita, but not to exceed $25,000 for any government
entity, provided that for 2012, a county or city with a population over
5,000 must also participate in the expenditure-type reporting under
section 471.703 in order to be eligible. Any jurisdiction participating in the comprehensive performance measurement program is exempt from levy limits under sections 275.70 to 275.74 for taxes payable in 2013 if levy limits are in effect.
(c) Any county or city that elects to participate in the standard measures program for 2013 or any year thereafter is eligible for per capita reimbursement of $0.14 per capita, but not to exceed $25,000 for any government entity. Any jurisdiction participating in the comprehensive performance measurement program for 2013 or any year thereafter is exempt from levy limits under sections 275.70 to 275.74 for taxes payable in the following year, if levy limits are in effect.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2011 Supplement, section 270C.991, subdivision 4, as amended by Laws 2012, chapter 187, article 1, section 45, is amended to read:
Subd. 4. Property tax working group. (a) A property tax working group is established as provided in this subdivision. The goals of the working group are:
(1) to investigate ways to simplify the property tax system and make advisory recommendations on ways to make the system more understandable;
(2) to reexamine the property tax calendar to determine what changes could be made to shorten the two-year cycle from assessment through property tax collection; and
(3) to determine the cost versus the benefits of the various property tax components, including property classifications, credits, aids, exclusions, exemptions, and abatements, and to suggest ways to achieve some of the goals in simpler and more cost-efficient ways.
(b) The 12-member working group shall consist of the following members:
(1) two state representatives, both appointed by the chair of the house of representatives Taxes Committee, one from the majority party and one from the largest minority party;
(2) two senators appointed by the Subcommittee on Committees of the Senate Rules and Administration Committee, one from the majority party and one from the largest minority party;
(3) one person appointed by the Association of Minnesota Counties;
(4) one person appointed by the League of Minnesota Cities;
(5) one person appointed by the Minnesota Association of Townships;
(6) one person appointed by the Minnesota Chamber of Commerce;
(7) one person appointed by the Minnesota Association of Assessing Officers;
(8) two homeowners, one who is under 65 years of age, and one who is 65 years of age or older, both appointed by the commissioner of revenue; and
(9) one person jointly appointed by the Minnesota Farm Bureau and the Minnesota Farmers Union.
The commissioner of revenue shall chair the initial meeting, and the working group shall elect a chair at that initial meeting. The working group will meet at the call of the chair. Members of the working group shall serve without compensation. The commissioner of revenue must provide administrative support to the working group. Chapter 13D does not apply to meetings of the working group. Meetings of the working group must be open to the public and the working group must provide notice of a meeting to potentially interested persons at least seven days before the meeting. A meeting of the working group occurs when a quorum is present.
(c) The working group shall make its
advisory recommendations to the chairs of the house of representatives and
senate Taxes Committees on or before February 1, 2013, at which time the
working group shall be finished and this subdivision expires. The advisory recommendations should be
reviewed by the Taxes Committees under subdivision 5.
Sec. 3. Minnesota Statutes 2010, section 273.113, is amended to read:
273.113
TAX CREDIT FOR PROPERTY IN PROPOSED BOVINE TUBERCULOSIS MODIFIED
ACCREDITED MANAGEMENT ZONE.
Subdivision 1. Definitions. For the purposes of this section, the following terms have the meanings given to them:
(1) "bovine tuberculosis modified
accredited management zone" means the modified accredited
management zone designated by the Board of Animal Health under section
35.244;
(2) "located within" means that the herd is kept in the area for at least a part of calendar year 2006, 2007, or 2008; and
(3) "animal" means cattle, bison, goats, and farmed cervidae.
Subd. 2. Eligibility;
amount of credit. Agricultural and
rural vacant land classified under section 273.13, subdivision 23, located
within a bovine tuberculosis modified accredited management zone
is eligible for a property tax credit equal to the greater of: (1) $5 per acre on the first 160 acres of the
property where the herd had been located; or (2) an amount equal to $5 per acre
times five acres times the highest number of animals tested on the property for
bovine tuberculosis in a whole-herd test as reported by the Board of Animal
Health in 2006, 2007, or 2008 the amount of credit received under this
section for taxes payable in 2011. The
amount of the credit cannot exceed the property tax payable on the property
where the herd had been located, excluding any tax attributable to residential
structures. To begin to qualify
for the tax credit for taxes payable in 2012, the owner shall file an
application with the county by December 1 of the levy year July 1,
2012. For taxes payable in 2012,
the credit shall be paid as a direct payment to the property owner, issued by
the county within 30 days of receipt of the application, provided that there
are no delinquent taxes on the property.
The credit must be given for each subsequent taxes payable year until
the credit terminates under subdivision 4.
For taxes payable in 2013 and thereafter, the assessor shall
indicate the amount of the property tax reduction on the property tax statement
of each taxpayer receiving a credit under this section. For taxes payable in 2013 and thereafter,
the credit paid pursuant to this section shall be deducted from the tax due on
the property as provided in section 273.1393.
Subd. 3. Reimbursement for lost revenue. The county auditor shall certify to the commissioner of revenue, as part of the abstracts of tax lists required to be filed with the commissioner under section 275.29, the amount of tax lost to the county from the property tax credit under subdivision 2, except that for taxes payable in 2012 only, the county shall submit the credit amounts to the commissioner of revenue in a separate report, in a form prescribed by the commissioner, prior to August 15, 2012. Any prior year adjustments must also be certified in the abstracts of tax lists. The commissioner of revenue shall review the certifications to determine their accuracy. The commissioner may make the changes in the certification that are considered necessary or return a certification to the county auditor
for corrections. The commissioner shall reimburse each taxing district, other than school districts, for the taxes lost. The payments must be made at the time provided in section 473H.10 for payment to taxing jurisdictions in the same proportion that the ad valorem tax is distributed, except that for taxes payable in 2012 the entire reimbursement must be made to the county. Reimbursements to school districts must be made as provided in section 273.1392. The amount necessary to make the reimbursements under this section is annually appropriated from the general fund to the commissioner of revenue.
Subd. 4.
Termination of credit. The credits provided under this section
cease to be available beginning with taxes payable in the year following the
date when the Board of Animal Health notifies the commissioner of revenue in
writing that the board has certified that the state is free of discontinued
all required bovine tuberculosis related activities within the bovine
tuberculosis management zone.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2012 and thereafter.
Sec. 4. Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read:
Subdivision 1. Levy
amount. The state general levy is
levied against commercial-industrial property and seasonal residential
recreational property, as defined in this section. The state general levy base amount is $592,000,000
$817,423,000 for taxes payable in 2002 2013. For taxes payable in subsequent years, the
levy base amount is increased each year by multiplying the levy base amount for
the prior year by the sum of one plus the rate of increase, if any, in the
implicit price deflator for government consumption expenditures and gross
investment for state and local governments prepared by the Bureau of Economic
Analysts of the United States Department of Commerce for the 12-month period
ending March 31 of the year prior to the year the taxes are payable. The tax under this section is not treated as
a local tax rate under section 469.177 and is not the levy of a governmental
unit under chapters 276A and 473F.
The commissioner shall increase or decrease
the preliminary or final rate rates for a year as necessary to
account for errors and tax base changes that affected a preliminary or final
rate for either of the two preceding years.
Adjustments are allowed to the extent that the necessary information is
available to the commissioner at the time the rates for a year must be
certified, and for the following reasons:
(1) an erroneous report of taxable value by a local official;
(2) an erroneous calculation by the commissioner; and
(3) an increase or decrease in taxable value for commercial-industrial or seasonal residential recreational property reported on the abstracts of tax lists submitted under section 275.29 that was not reported on the abstracts of assessment submitted under section 270C.89 for the same year.
The commissioner may, but need not, make adjustments if the total difference in the tax levied for the year would be less than $100,000.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2013 and thereafter.
Sec. 5. Minnesota Statutes 2010, section 275.065, subdivision 1, is amended to read:
Subdivision 1. Proposed
levy. (a) Notwithstanding any law or
charter to the contrary, on or before September 15, each taxing authority,
other than a school district, shall adopt a proposed budget and shall certify
to the county auditor the proposed or, in the case of a town, the final
property tax levy for taxes payable in the following year. All counties with a population of more
than 5,000 and home rule charter or statutory cities with a population of more
than 5,000, shall also provide to the county auditor the county or city Web
site, if there is one, where the public is able to access the budget
information required to be reported under section 471.703.
(b) On or before September 30, each school district that has not mutually agreed with its home county to extend this date shall certify to the county auditor the proposed property tax levy for taxes payable in the following year. Each school district that has agreed with its home county to delay the certification of its proposed property tax levy must certify its proposed property tax levy for the following year no later than October 7. The school district shall certify the proposed levy as:
(1) a specific dollar amount by school district fund, broken down between voter-approved and non-voter-approved levies and between referendum market value and tax capacity levies; or
(2) the maximum levy limitation certified by the commissioner of education according to section 126C.48, subdivision 1.
(c) If the board of estimate and taxation or any similar board that establishes maximum tax levies for taxing jurisdictions within a first class city certifies the maximum property tax levies for funds under its jurisdiction by charter to the county auditor by September 15, the city shall be deemed to have certified its levies for those taxing jurisdictions.
(d) For purposes of this section, "taxing authority" includes all home rule and statutory cities, towns, counties, school districts, and special taxing districts as defined in section 275.066. Intermediate school districts that levy a tax under chapter 124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing districts for purposes of this section.
(e) At the meeting at which the taxing
authority, other than a town, adopts its proposed tax levy under paragraph (a)
or (b), the taxing authority shall announce the time and place of its
subsequent regularly scheduled meetings at which the budget and levy will be
discussed and at which the public will be allowed to speak. The time and place of those meetings The
following information must be included in the proceedings or summary of
proceedings published in the official newspaper of the taxing authority under
section 123B.09, 375.12, or 412.191:
(1) the time and place of the meetings
described in this paragraph; and
(2) a statement that the budget information required to be reported under section 471.703 is available on the county or city Web site, if there is one.
EFFECTIVE
DATE. This section is
effective July 1, 2012.
Sec. 6. Minnesota Statutes 2010, section 275.065, subdivision 3, is amended to read:
Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare and the county treasurer shall deliver after November 10 and on or before November 24 each year, by first class mail to each taxpayer at the address listed on the county's current year's assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer, the treasurer may send the notice in electronic form or by electronic mail instead of on paper or by ordinary mail.
(b) The commissioner of revenue shall prescribe the form of the notice.
(c) The notice must inform taxpayers that it contains the amount of property taxes each taxing authority proposes to collect for taxes payable the following year. In the case of a town, or in the case of the state general tax, the final tax amount will be its proposed tax. The notice must clearly state for each city that has a population over 500, county, school district, regional library authority established under section 134.201, and metropolitan taxing districts as defined in paragraph (i), the time and place of a meeting for each taxing authority in which the budget and levy
will be discussed and public input allowed, prior to the final budget and levy determination. The notice must clearly state for each county with a population of more than 5,000 and for each city with a population of more than 5,000 that the budget information required to be reported under section 471.703 is available on the county or city Web site, if there is one. The taxing authorities must provide the county auditor with the information to be included in the notice on or before the time it certifies its proposed levy under subdivision 1. The public must be allowed to speak at that meeting, which must occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone number for the taxing authority that taxpayers may call if they have questions related to the notice and an address where comments will be received by mail, except that no notice required under this section shall be interpreted as requiring the printing of a personal telephone number or address as the contact information for a taxing authority. If a taxing authority does not maintain public offices where telephone calls can be received by the authority, the authority may inform the county of the lack of a public telephone number and the county shall not list a telephone number for that taxing authority.
(d) The notice must state for each parcel:
(1) the market value of the property as determined under section 273.11, and used for computing property taxes payable in the following year and for taxes payable in the current year as each appears in the records of the county assessor on November 1 of the current year; and, in the case of residential property, whether the property is classified as homestead or nonhomestead. The notice must clearly inform taxpayers of the years to which the market values apply and that the values are final values;
(2) the items listed below, shown separately by county, city or town, and state general tax, net of the residential and agricultural homestead credit under section 273.1384, voter approved school levy, other local school levy, and the sum of the special taxing districts, and as a total of all taxing authorities:
(i) the actual tax for taxes payable in the current year; and
(ii) the proposed tax amount.
If the county levy under clause (2) includes an amount for a lake improvement district as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose must be separately stated from the remaining county levy amount.
In the case of a town or the state general tax, the final tax shall also be its proposed tax unless the town changes its levy at a special town meeting under section 365.52. If a school district has certified under section 126C.17, subdivision 9, that a referendum will be held in the school district at the November general election, the county auditor must note next to the school district's proposed amount that a referendum is pending and that, if approved by the voters, the tax amount may be higher than shown on the notice. In the case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for the St. Paul Library Agency must be listed separately from the remaining amount of the city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be listed separately from the remaining amount of the county's levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F applies, the proposed tax levy on the captured value or the proposed tax levy on the tax capacity subject to the areawide tax must each be stated separately and not included in the sum of the special taxing districts; and
(3) the increase or decrease between the total taxes payable in the current year and the total proposed taxes, expressed as a percentage.
For purposes of this section, the amount of the tax on homesteads qualifying under the senior citizens' property tax deferral program under chapter 290B is the total amount of property tax before subtraction of the deferred property tax amount.
(e) The notice must clearly state that the proposed or final taxes do not include the following:
(1) special assessments;
(2) levies approved by the voters after the date the proposed taxes are certified, including bond referenda and school district levy referenda;
(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday in November of the levy year as provided under section 275.73;
(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring after the date the proposed taxes are certified;
(5) amounts necessary to pay tort judgments against the taxing authority that become final after the date the proposed taxes are certified; and
(6) the contamination tax imposed on properties which received market value reductions for contamination.
(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the county treasurer to deliver the notice as required in this section does not invalidate the proposed or final tax levy or the taxes payable pursuant to the tax levy.
(g) If the notice the taxpayer receives under this section lists the property as nonhomestead, and satisfactory documentation is provided to the county assessor by the applicable deadline, and the property qualifies for the homestead classification in that assessment year, the assessor shall reclassify the property to homestead for taxes payable in the following year.
(h) In the case of class 4 residential property used as a residence for lease or rental periods of 30 days or more, the taxpayer must either:
(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter, or lessee; or
(2) post a copy of the notice in a conspicuous place on the premises of the property.
The notice must be mailed or posted by the taxpayer by November 27 or within three days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to which the notice must be mailed in order to fulfill the requirements of this paragraph.
(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing districts" means the following taxing districts in the seven-county metropolitan area that levy a property tax for any of the specified purposes listed below:
(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446, 473.521, 473.547, or 473.834;
(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
(3) Metropolitan Mosquito Control Commission under section 473.711.
For purposes of this section, any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be included with the appropriate county's levy.
(j) The governing body of a county, city, or school district may, with the consent of the county board, include supplemental information with the statement of proposed property taxes about the impact of state aid increases or decreases on property tax increases or decreases and on the level of services provided in the affected jurisdiction. This supplemental information may include information for the following year, the current year, and for as many consecutive preceding years as deemed appropriate by the governing body of the county, city, or school district. It may include only information regarding:
(1) the impact of inflation as measured by the implicit price deflator for state and local government purchases;
(2) population growth and decline;
(3) state or federal government action; and
(4) other financial factors that affect the level of property taxation and local services that the governing body of the county, city, or school district may deem appropriate to include.
The information may be presented using tables, written narrative, and graphic representations and may contain instruction toward further sources of information or opportunity for comment.
EFFECTIVE
DATE. This section is
effective July 1, 2012.
Sec. 7. Minnesota Statutes 2010, section 275.065, subdivision 3, is amended to read:
Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare and the county treasurer shall deliver after November 10 and on or before November 24 each year, by first class mail to each taxpayer at the address listed on the county's current year's assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer, the treasurer may send the notice in electronic form or by electronic mail instead of on paper or by ordinary mail.
(b) The commissioner of revenue shall prescribe the form of the notice.
(c) The notice must inform taxpayers that it
contains the amount of property taxes each taxing authority proposes to collect
for taxes payable the following year. In
the case of a town, or in the case of the state general tax, the final tax
amount will be its proposed tax. The
notice must clearly state For each city that has a population over 500,
county, school district, regional library authority established under section
134.201, and metropolitan taxing districts as defined in paragraph (i), the
notice must state the time and place of a meeting for each taxing authority
in which the budget and levy will be discussed and public input allowed, prior
to the final budget and levy determination.
For each special taxing district, the notice must: (1) list separately any levy by a special
taxing district that exceeds 25 percent of the total of all special taxing
district levies; and (2) provide county government contact information where
additional information may be obtained for each special taxing district. The taxing authorities must provide the
county auditor with the information to be included in the notice on or before
the time it certifies its proposed levy under subdivision 1. The public must be allowed to speak at that
meeting, which must occur after November 24 and must not be held before 6:00 p.m.
It must provide a telephone number for the taxing authority that taxpayers may
call if they have questions related to the notice and an address where comments
will be received by mail, except that no notice required under this section
shall be interpreted as requiring the printing of a personal telephone number
or
address as the contact information for a taxing authority. If a taxing authority does not maintain public offices where telephone calls can be received by the authority, the authority may inform the county of the lack of a public telephone number and the county shall not list a telephone number for that taxing authority.
(d) The notice must state for each parcel:
(1) the market value of the property as determined under section 273.11, and used for computing property taxes payable in the following year and for taxes payable in the current year as each appears in the records of the county assessor on November 1 of the current year; and, in the case of residential property, whether the property is classified as homestead or nonhomestead. The notice must clearly inform taxpayers of the years to which the market values apply and that the values are final values;
(2) the items listed below, shown separately
by county, city or town, and state general tax, net of the residential and
agricultural homestead credit under section 273.1384, voter approved school
levy, other local school levy, and the sum of the each special
taxing districts district, provided that the levies of all
special taxing districts whose levies do not exceed 25 percent of the total
amount of all special taxing district levies may be aggregated, and as
a total of for all taxing authorities:
(i) the actual tax for taxes payable in the current year; and
(ii) the proposed tax amount.
If the county levy under clause (2) includes an amount for a lake improvement district as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose must be separately stated from the remaining county levy amount.
In the case of a town or the state general tax, the final tax shall also be its proposed tax unless the town changes its levy at a special town meeting under section 365.52. If a school district has certified under section 126C.17, subdivision 9, that a referendum will be held in the school district at the November general election, the county auditor must note next to the school district's proposed amount that a referendum is pending and that, if approved by the voters, the tax amount may be higher than shown on the notice. In the case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for the St. Paul Library Agency must be listed separately from the remaining amount of the city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be listed separately from the remaining amount of the county's levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F applies, the proposed tax levy on the captured value or the proposed tax levy on the tax capacity subject to the areawide tax must each be stated separately and not included in the sum of the special taxing districts; and
(3) the increase or decrease between the total taxes payable in the current year and the total proposed taxes, expressed as a percentage.
For purposes of this section, the amount of the tax on homesteads qualifying under the senior citizens' property tax deferral program under chapter 290B is the total amount of property tax before subtraction of the deferred property tax amount.
(e) The notice must clearly state that the proposed or final taxes do not include the following:
(1) special assessments;
(2) levies approved by the voters after the date the proposed taxes are certified, including bond referenda and school district levy referenda;
(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday in November of the levy year as provided under section 275.73;
(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring after the date the proposed taxes are certified;
(5) amounts necessary to pay tort judgments against the taxing authority that become final after the date the proposed taxes are certified; and
(6) the contamination tax imposed on properties which received market value reductions for contamination.
(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the county treasurer to deliver the notice as required in this section does not invalidate the proposed or final tax levy or the taxes payable pursuant to the tax levy.
(g) If the notice the taxpayer receives under this section lists the property as nonhomestead, and satisfactory documentation is provided to the county assessor by the applicable deadline, and the property qualifies for the homestead classification in that assessment year, the assessor shall reclassify the property to homestead for taxes payable in the following year.
(h) In the case of class 4 residential property used as a residence for lease or rental periods of 30 days or more, the taxpayer must either:
(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter, or lessee; or
(2) post a copy of the notice in a conspicuous place on the premises of the property.
The notice must be mailed or posted by the taxpayer by November 27 or within three days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to which the notice must be mailed in order to fulfill the requirements of this paragraph.
(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing districts" means the following taxing districts in the seven-county metropolitan area that levy a property tax for any of the specified purposes listed below:
(1)
Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
473.521, 473.547, or 473.834;
(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
(3) Metropolitan Mosquito Control Commission under section 473.711.
For purposes of this section, any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be included with the appropriate county's levy.
(j) The governing body of a county, city, or school district may, with the consent of the county board, include supplemental information with the statement of proposed property taxes about the impact of state aid increases or decreases on property tax increases or decreases and on the level of services provided in the affected jurisdiction.
This supplemental information may include information for the following year, the current year, and for as many consecutive preceding years as deemed appropriate by the governing body of the county, city, or school district. It may include only information regarding:
(1) the impact of inflation as measured by the implicit price deflator for state and local government purchases;
(2) population growth and decline;
(3) state or federal government action; and
(4) other financial factors that affect the level of property taxation and local services that the governing body of the county, city, or school district may deem appropriate to include.
The information may be presented using tables, written narrative, and graphic representations and may contain instruction toward further sources of information or opportunity for comment.
EFFECTIVE
DATE. This section is
effective for tax statements relating to taxes payable in 2014 and thereafter.
Sec. 8. Minnesota Statutes 2011 Supplement, section 276.04, subdivision 2, is amended to read:
Subd. 2. Contents
of tax statements. (a) The treasurer
shall provide for the printing of the tax statements. The commissioner of revenue shall prescribe
the form of the property tax statement and its contents. The tax statement must not state or imply
that property tax credits are paid by the state of Minnesota. The statement must contain a tabulated
statement of the dollar amount due to each taxing authority and the amount of
the state tax from the parcel of real property for which a particular tax
statement is prepared. The dollar
amounts attributable to the county, the state tax, the voter approved school
tax, the other local school tax, the township or municipality, and the total of
the metropolitan special taxing districts as defined in section 275.065,
subdivision 3, paragraph (i), must be separately stated. The amounts due all other special taxing
districts, if any, may be aggregated except that (1) any levies
made by the regional rail authorities in the county of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a
separate line directly under the appropriate county's levy, and (2) any levy
by a special taxing district that exceeds 25 percent of the total of all
special taxing district levies on a tax statement must be separately stated. If the county levy under this paragraph
includes an amount for a lake improvement district as defined under sections
103B.501 to 103B.581, the amount attributable for that purpose must be
separately stated from the remaining county levy amount. In the case of Ramsey County, if the county
levy under this paragraph includes an amount for public library service under
section 134.07, the amount attributable for that purpose may be separated from
the remaining county levy amount. The
amount of the tax on homesteads qualifying under the senior citizens' property
tax deferral program under chapter 290B is the total amount of property tax
before subtraction of the deferred property tax amount. The amount of the tax on contamination value
imposed under sections 270.91 to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
amount of any special assessments, may be rounded to the nearest even whole
dollar. For purposes of this section
whole odd-numbered dollars may be adjusted to the next higher even-numbered
dollar. The amount of market value
excluded under section 273.11, subdivision 16, if any, must also be listed on
the tax statement.
(b) The property tax statements for manufactured homes and sectional structures taxed as personal property shall contain the same information that is required on the tax statements for real property.
(c) Real and personal property tax statements must contain the following information in the order given in this paragraph. The information must contain the current year tax information in the right column with the corresponding information for the previous year in a column on the left:
(1) the property's estimated market value under section 273.11, subdivision 1;
(2) the property's homestead market value exclusion under section 273.13, subdivision 35;
(3) the property's taxable market value after reductions under sections 273.11, subdivisions 1a and 16, and 273.13, subdivision 35;
(4) the property's gross tax, before credits;
(5) for homestead agricultural properties, the credit under section 273.1384;
(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit received under section 273.135 must be separately stated and identified as "taconite tax relief"; and
(7) the net tax payable in the manner required in paragraph (a).
(d) If the county uses envelopes for mailing property tax statements and if the county agrees, a taxing district may include a notice with the property tax statement notifying taxpayers when the taxing district will begin its budget deliberations for the current year, and encouraging taxpayers to attend the hearings. If the county allows notices to be included in the envelope containing the property tax statement, and if more than one taxing district relative to a given property decides to include a notice with the tax statement, the county treasurer or auditor must coordinate the process and may combine the information on a single announcement.
EFFECTIVE
DATE. This section is
effective for tax statements relating to taxes payable in 2014 and thereafter.
Sec. 9. Minnesota Statutes 2010, section 290A.04, subdivision 2h, is amended to read:
Subd. 2h. Additional
refund. (a) If the gross property
taxes payable on a homestead increase more than 12 percent over the property
taxes payable in the prior year on the same property that is owned and occupied
by the same owner on January 2 of both years, and the amount of that increase
is $100 or more, a claimant who is a homeowner shall be allowed an additional
refund equal to 60 75 percent of the amount of the increase over
the greater of 12 percent of the prior year's property taxes payable or $100. This subdivision shall not apply to any
increase in the gross property taxes payable attributable to improvements made
to the homestead after the assessment date for the prior year's taxes. This subdivision shall not apply to any
increase in the gross property taxes payable attributable to the termination of
valuation exclusions under section 273.11, subdivision 16.
The maximum refund allowed under this subdivision is $1,000.
(b) For purposes of this subdivision "gross property taxes payable" means property taxes payable determined without regard to the refund allowed under this subdivision.
(c) In addition to the other proofs required by this chapter, each claimant under this subdivision shall file with the property tax refund return a copy of the property tax statement for taxes payable in the preceding year or other documents required by the commissioner.
(d) Upon request, the appropriate county official shall make available the names and addresses of the property taxpayers who may be eligible for the additional property tax refund under this section. The information shall be provided on a magnetic computer disk. The county may recover its costs by charging the person requesting the
information the reasonable cost for preparing the data. The information may not be used for any purpose other than for notifying the homeowner of potential eligibility and assisting the homeowner, without charge, in preparing a refund claim.
EFFECTIVE
DATE. This section is
effective beginning with refunds based on taxes payable in 2013.
Sec. 10. [471.703]
EXPENDITURE TYPE REPORTING.
Subdivision 1. Purpose. In order to facilitate involvement of
the public in local government budgeting, municipalities shall provide the
following budgetary information on a municipal Web site, except as provided in
subdivision 4, and publicize the availability of this information as part of
the property tax and budget notices required in section 275.065.
Subd. 2. Definitions. (a) For purposes of this section, the
following terms have the meanings given in this subdivision.
(b) "Municipality" means a
county with a population of more than 5,000 or a home rule charter or statutory
city with a population of more than 5,000.
(c) "Population" means the
population of the municipality as established by the last federal census, by a
special census conducted under contract with the United States Bureau of the
Census, by a population estimate made by the Metropolitan Council pursuant to
section 473.24, or by a population estimate of the state demographer made
pursuant to section 4A.02, whichever is the most recent as to the stated date
of the count or estimate for the preceding calendar year, and which has been
certified to the commissioner of revenue on or before July 15 of the year in
which the information is required to be reported.
Subd. 3. Electronic
budgetary information. (a) By
July 31 of each year, a municipality shall publish on its Web site, except as
provided in subdivision 4, four years of budget information on both revenues
and expenditures organized by function and by expenditure type. The four years shall include actual data from
the three most recently concluded budget years and estimated data for the
current budget year.
(b) The governmental funds included in
the budget information required under this section shall include the
municipality's general fund, debt service fund, and special revenue funds,
except for special revenue funds specifically used for the acquisition and
construction of major capital facilities. The reported information shall also exclude
enterprise funds and fiduciary funds.
(c) The forms and reporting requirements
for revenues and expenditures by function shall be established by the state
auditor's office and shall be based on the revenue and expenditure breakdowns
used by that office in the five-year summary tables for annual revenue,
expenditure, and debt reports for counties and cities with a population over
2,500, under section 6.75.
(d) The forms and reporting requirements
for expenditures by expenditure type shall be established by the state
auditor's office and at minimum shall include the following line items: employee costs, purchased services, supplies,
central services, capital items, debt service, transfer to other funds, and
miscellaneous; with employee costs further subdivided into the following items: wages and salaries, pensions, Social
Security, health care, and other benefits.
The state auditor shall consult with the commissioner of management and
budget, city and county representatives, and members of the governmental
accounting community in developing the definition of expenditure types for
reporting purposes.
Subd. 4. Alternative
publication of budgetary information.
A municipality that does not maintain an official Web site must
either (1) set up a separate Web site to make accessible the budgetary
information as required in subdivision 3, or (2) publish the same information
required in subdivision 3 by August 31 of each year in one issue
of the official newspaper of the
municipality. If a county publishes the
information in its official newspaper it must also publish the same information
in one other newspaper, if one of general circulation is located in a different
city in the county than the official newspaper.
The state auditor must prescribe the form for the newspaper notice.
Subd. 5. Incentives. In 2012 only, a city or county that
complies with the requirement of this section and section 6.91, subdivision 1,
shall receive the benefits pursuant to section 6.91, subdivision 2.
Subd. 6. Penalties. In 2013 and thereafter, failure of a
municipality to provide the information required in this section shall result
in the withholding of aids payable the following calendar year under sections
162.01 to 162.14, 423A.02, and 477A.011 to 477A.014.
EFFECTIVE
DATE. This section is
effective July 1, 2012.
Sec. 11. Minnesota Statutes 2010, section 477A.017, subdivision 3, is amended to read:
Subd. 3. Conformity. Other law to the contrary
notwithstanding, in order to receive distributions under sections 477A.011 to
477A.03, counties and cities must conform to the standards set in subdivision 2
in making all financial reports required to be made to the state auditor after
June 30, 1984 by the deadline set by the state auditor. Counties and cities that fail to submit the
required information to the state auditor within 45 days of the reporting
deadline shall forfeit an amount equal to ten percent of the distributions
under sections 477A.011 to 477A.03. Counties
and cities that fail to submit the required information within 60 days of the
reporting deadline shall forfeit an amount equal to 30 percent of the
distributions. Counties and cities that
fail to submit the required information within 90 days of the reporting
deadline shall forfeit an amount equal to 50 percent of the distributions.
EFFECTIVE
DATE. This section is
effective for financial reports for calendar year 2012 and thereafter.
Sec. 12. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243, article 6, section 9, Laws 2000, chapter 490, article 6, section 15, and Laws 2008, chapter 154, article 2, section 30, is amended to read:
Sec. 3. TAX;
PAYMENT OF EXPENSES.
(a) The tax levied by the hospital district under Minnesota Statutes, section 447.34, must not be levied at a rate that exceeds the amount authorized to be levied under that section. The proceeds of the tax may be used for all purposes of the hospital district, except as provided in paragraph (b).
(b) 0.015 percent of taxable market value of
the tax in paragraph (a) may be used solely by the Cook ambulance
service and the Orr ambulance service for the purpose of capital
expenditures as it relates to:
(1) ambulance acquisitions for the
Cook ambulance service and the Orr ambulance service and not;
(2) attached and portable equipment for
use in and for the ambulances; and
(3) parts and replacement parts for
maintenance and repair of the ambulances.
The money may not be used for administrative, operation, or salary expenses.
(c) The part of the levy referred to
in paragraph (b) must be administered by the Cook Hospital and passed on
directly to the Cook area ambulance service board and the city of Orr to be held
in trust until funding for a new ambulance is needed by either the Cook
ambulance service or the Orr ambulance service used for the purposes in
paragraph (b).
Sec. 13. Laws 1999, chapter 243, article 6, section 11, is amended to read:
Sec. 11. CEMETERY
LEVY FOR SAWYER BY CARLTON COUNTY.
Subdivision 1. Levy
authorized. Notwithstanding
other law to the contrary, the Carlton county board of commissioners may annually
levy in and for the unorganized township of Sawyer an amount up to $1,000
annually for cemetery purposes, beginning with taxes payable in 2000 and
ending with taxes payable in 2009.
Subd. 2. Effective
date. This section is effective June
1, 1999, without local approval.
EFFECTIVE
DATE; LOCAL APPROVAL. This
section applies to taxes payable in 2013 and thereafter, and is effective the
day after the Carlton county board of commissioners and its chief clerical
officer timely complete their compliance with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
Sec. 14. Laws 2010, chapter 389, article 1, section 12, the effective date, is amended to read:
EFFECTIVE
DATE. This section is effective for
assessment years year 2010 and 2011, for taxes payable in 2011
and 2012 thereafter.
EFFECTIVE
DATE. This section is
effective for assessment year 2012 and thereafter.
Sec. 15. HOLDING
OF PROPERTY FOR ECONOMIC DEVELOPMENT; TEMPORARY EXTENSION.
(a) For purposes of Minnesota Statutes,
section 272.02, subdivision 39, a political subdivision's holding for resale
for economic development of a property that is located in a city in the
metropolitan area, or in a city with a population of more than 5,000 outside of
the metropolitan area, as defined in Minnesota Statutes, section 473.121,
subdivision 2, for up to ten years, is a public purpose.
(b) The authority under this section
expires on December 31, 2015.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 16. REPEALER.
Minnesota Statutes 2010, section
270C.991, subdivision 5, is repealed.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 8
INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES
Section 1. Minnesota Statutes 2011 Supplement, section 116J.8737, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have the meanings given.
(b) "Qualified small business" means a business that has been certified by the commissioner under subdivision 2.
(c) "Qualified investor" means an investor who has been certified by the commissioner under subdivision 3.
(d) "Qualified fund" means a pooled angel investment network fund that has been certified by the commissioner under subdivision 4.
(e) "Qualified investment" means a cash investment in a qualified small business of a minimum of:
(1) $10,000 in a calendar year by a qualified investor; or
(2) $30,000 in a calendar year by a qualified fund.
A qualified investment must be made in exchange for common stock, a partnership or membership interest, preferred stock, debt with mandatory conversion to equity, or an equivalent ownership interest as determined by the commissioner.
(f) "Family" means a family member within the meaning of the Internal Revenue Code, section 267(c)(4).
(g) "Pass-through entity" means a corporation that for the applicable taxable year is treated as an S corporation or a general partnership, limited partnership, limited liability partnership, trust, or limited liability company and which for the applicable taxable year is not taxed as a corporation under chapter 290.
(h) "Intern" means a student of an accredited institution of higher education, or a former student who has graduated in the past six months from an accredited institution of higher education, who is employed by a qualified small business in a nonpermanent position for a duration of nine months or less that provides training and experience in the primary business activity of the business.
(i) "Liquidation event" means
a conversion of qualified investment for cash, cash and other consideration, or
any other form of equity or debt interest.
EFFECTIVE
DATE. This section is
effective for qualified small businesses certified after June 30, 2012.
Sec. 2. Minnesota Statutes 2011 Supplement, section 116J.8737, subdivision 2, is amended to read:
Subd. 2. Certification of qualified small businesses. (a) Businesses may apply to the commissioner for certification as a qualified small business for a calendar year. The application must be in the form and be made under the procedures specified by the commissioner, accompanied by an application fee of $150. Application fees are deposited in the small business investment tax credit administration account in the special revenue fund. The application for certification for 2010 must be made available on the department's Web site by August 1, 2010. Applications for subsequent years' certification must be made available on the department's Web site by November 1 of the preceding year.
(b) Within 30 days of receiving an application for certification under this subdivision, the commissioner must either certify the business as satisfying the conditions required of a qualified small business, request additional information from the business, or reject the application for certification. If the commissioner requests additional information from the business, the commissioner must either certify the business or reject the application within 30 days of receiving the additional information. If the commissioner neither certifies the business nor rejects the application within 30 days of receiving the original application or within 30 days of receiving the additional information requested, whichever is later, then the application is deemed rejected, and the commissioner must refund the $150 application fee. A business that applies for certification and is rejected may reapply.
(c) To receive certification, a business must satisfy all of the following conditions:
(1) the business has its headquarters in Minnesota;
(2) at least 51 percent of the business's employees are employed in Minnesota, and 51 percent of the business's total payroll is paid or incurred in the state;
(3) the business is engaged in, or is committed to engage in, innovation in Minnesota in one of the following as its primary business activity:
(i) using proprietary technology to add value to a product, process, or service in a qualified high-technology field;
(ii) researching or developing a proprietary product, process, or service in a qualified high-technology field; or
(iii) researching, developing, or producing a new proprietary technology for use in the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;
(4) other than the activities specifically listed in clause (3), the business is not engaged in real estate development, insurance, banking, lending, lobbying, political consulting, information technology consulting, wholesale or retail trade, leisure, hospitality, transportation, construction, ethanol production from corn, or professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants;
(5) the business has fewer than 25 employees;
(6) the business must pay its employees annual wages of at least 175 percent of the federal poverty guideline for the year for a family of four and must pay its interns annual wages of at least 175 percent of the federal minimum wage used for federally covered employers, except that this requirement must be reduced proportionately for employees and interns who work less than full-time, and does not apply to an executive, officer, or member of the board of the business, or to any employee who owns, controls, or holds power to vote more than 20 percent of the outstanding securities of the business;
(7) the business has not been in operation for more than ten years, except as provided in clause (8) ;
(8) the business has not been in
operation for more than 20 years if the business is engaged in the research,
development, or production of medical devices or pharmaceuticals for which U.S.
Food and Drug Administration approval is required for use in the treatment or
diagnosis of a disease or condition;
(8) (9) the business has not
previously received private equity investments of more than $4,000,000; and
(9) (10) the business is not
an entity disqualified under section 80A.50, paragraph (b), clause (3) ; and
(11) the business has not issued securities that are traded on a public exchange.
(d) In applying the limit under paragraph (c), clause (5), the employees in all members of the unitary business, as defined in section 290.17, subdivision 4, must be included.
(e) In order for a qualified investment in
a business to be eligible for tax credits, :
(1) the business must have applied
for and received certification for the calendar year in which the investment
was made prior to the date on which the qualified investment was made. ;
(2) the business must not have issued
securities that are traded on a public exchange;
(3)
the business must not issue securities that are traded on a public exchange
within 180 days subsequent to the date on which the qualified investment was
made; and
(4) the business must not have a
liquidation event within 180 days subsequent to the date on which the qualified
investment was made.
(f) The commissioner must maintain a list of businesses certified under this subdivision for the calendar year and make the list accessible to the public on the department's Web site.
(g) For purposes of this subdivision, the following terms have the meanings given:
(1) "qualified high-technology field" includes aerospace, agricultural processing, renewable energy, energy efficiency and conservation, environmental engineering, food technology, cellulosic ethanol, information technology, materials science technology, nanotechnology, telecommunications, biotechnology, medical device products, pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar fields; and
(2) "proprietary technology" means the technical innovations that are unique and legally owned or licensed by a business and includes, without limitation, those innovations that are patented, patent pending, a subject of trade secrets, or copyrighted.
EFFECTIVE
DATE. This section is
effective for qualified small businesses certified after June 30, 2012, except
the amendments to paragraph (c), clause (7), and paragraph (c), adding clause
(8), are effective the day following final enactment.
Sec. 3. Minnesota Statutes 2010, section 116J.8737, subdivision 5, is amended to read:
Subd. 5. Credit
allowed. (a) A qualified investor or
qualified fund is eligible for a credit equal to 25 percent of the qualified
investment in a qualified small business.
Investments made by a pass-through entity qualify for a credit only if
the entity is a qualified fund. The
commissioner must not allocate more than $11,000,000 in credits to qualified
investors or qualified funds for taxable years beginning after December 31,
2009, and before January 1, 2011, and must not allocate more than $12,000,000
in credits per year for taxable years beginning after December 31, 2010, and
before January 1, 2015 2012, must not allocate more than $16,500,000
in credits per year for taxable years beginning after December 31, 2011, and
before January 1, 2013, and must not allocate more than $12,000,000 in credits
per year for taxable years beginning after December 31, 2012, and before
January 1, 2015. Any portion of a
taxable year's credits that is not allocated by the commissioner does not
cancel and may be carried forward to subsequent taxable years until all credits
have been allocated.
(b) The commissioner may not allocate more than a total maximum amount in credits for a taxable year to a qualified investor for the investor's cumulative qualified investments as an individual qualified investor and as an investor in a qualified fund; for married couples filing joint returns the maximum is $250,000, and for all other filers the maximum is $125,000. The commissioner may not allocate more than a total of $1,000,000 in credits over all taxable years for qualified investments in any one qualified small business.
(c) The commissioner may not allocate a credit to a qualified investor either as an individual qualified investor or as an investor in a qualified fund if the investor receives more than 50 percent of the investor's gross annual income from the qualified small business in which the qualified investment is proposed. A member of the family of an individual disqualified by this paragraph is not eligible for a credit under this section. For a married couple filing a joint return, the limitations in this paragraph apply collectively to the investor and spouse. For purposes of determining the ownership interest of an investor under this paragraph, the rules under section 267(c) and 267(e) of the Internal Revenue Code apply.
(d) Applications for tax credits for 2010 must be made available on the department's Web site by September 1, 2010, and the department must begin accepting applications by September 1, 2010. Applications for subsequent years must be made available by November 1 of the preceding year.
(e) Qualified investors and qualified funds must apply to the commissioner for tax credits. Tax credits must be allocated to qualified investors or qualified funds in the order that the tax credit request applications are filed with the department. The commissioner must approve or reject tax credit request applications within 15 days of receiving the application. The investment specified in the application must be made within 60 days of the allocation of the credits. If the investment is not made within 60 days, the credit allocation is canceled and available for reallocation. A qualified investor or qualified fund that fails to invest as specified in the application, within 60 days of allocation of the credits, must notify the commissioner of the failure to invest within five business days of the expiration of the 60-day investment period.
(f) All tax credit request applications filed with the department on the same day must be treated as having been filed contemporaneously. If two or more qualified investors or qualified funds file tax credit request applications on the same day, and the aggregate amount of credit allocation claims exceeds the aggregate limit of credits under this section or the lesser amount of credits that remain unallocated on that day, then the credits must be allocated among the qualified investors or qualified funds who filed on that day on a pro rata basis with respect to the amounts claimed. The pro rata allocation for any one qualified investor or qualified fund is the product obtained by multiplying a fraction, the numerator of which is the amount of the credit allocation claim filed on behalf of a qualified investor and the denominator of which is the total of all credit allocation claims filed on behalf of all applicants on that day, by the amount of credits that remain unallocated on that day for the taxable year.
(g) A qualified investor or qualified fund, or a qualified small business acting on their behalf, must notify the commissioner when an investment for which credits were allocated has been made, and the taxable year in which the investment was made. A qualified fund must also provide the commissioner with a statement indicating the amount invested by each investor in the qualified fund based on each investor's share of the assets of the qualified fund at the time of the qualified investment. After receiving notification that the investment was made, the commissioner must issue credit certificates for the taxable year in which the investment was made to the qualified investor or, for an investment made by a qualified fund, to each qualified investor who is an investor in the fund. The certificate must state that the credit is subject to revocation if the qualified investor or qualified fund does not hold the investment in the qualified small business for at least three years, consisting of the calendar year in which the investment was made and the two following years. The three-year holding period does not apply if:
(1) the investment by the qualified investor or qualified fund becomes worthless before the end of the three-year period;
(2) 80 percent or more of the assets of the qualified small business is sold before the end of the three-year period;
(3) the qualified small business is sold before the end of the three-year period; or
(4) the qualified small business's common stock begins trading on a public exchange before the end of the three-year period.
(h) The commissioner must notify the commissioner of revenue of credit certificates issued under this section.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2011.
Sec. 4. Minnesota Statutes 2010, section 116J.8737, is amended by adding a subdivision to read:
Subd. 5a. Promotion
of credit in greater Minnesota. (a)
By July 1, 2012, the commissioner shall develop a plan to increase awareness of
and use of the credit for investments in greater Minnesota businesses with a
target goal that a minimum of 30 percent of the credit will be awarded for
those investments during the second half of calendar year 2013 and for each
full calendar year thereafter. Beginning
with the legislative report due on March 15, 2013, under subdivision 9, the
commissioner shall report on its plan under this subdivision and the results
achieved.
(b) If the target goal of 30 percent
under paragraph (a) is not achieved for the six-month period ending on December
31, 2013, the credit percentage under subdivision 5, paragraph (a), is
increased to 40 percent for a qualified investment made after December 31,
2013, in a greater Minnesota business. This
paragraph does not apply and the credit percentage for all qualified
investments is the rate provided under subdivision 5 for any calendar year
beginning after a calendar year for which the commissioner determines the 30
percent target has been satisfied. The
commissioner shall timely post notification of changes in the credit rate under
this paragraph on the department's website.
(c) For purposes of this section, a
"greater Minnesota business" means a qualified small business with
its headquarters and 51 percent or more of its employees employed at Minnesota
locations outside of the metropolitan area as defined in section 473.121,
subdivision 2.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. Minnesota Statutes 2010, section 116J.8737, subdivision 8, is amended to read:
Subd. 8. Data privacy. (a) Data contained in an application submitted to the commissioner under subdivision 2, 3, or 4 are nonpublic data, or private data on individuals, as defined in section 13.02, subdivision 9 or 12, except that the following data items are public:
(1) the name, mailing address, telephone number, e-mail address, contact person's name, and industry type of a qualified small business upon approval of the application and certification by the commissioner under subdivision 2;
(2) the name of a qualified investor upon approval of the application and certification by the commissioner under subdivision 3;
(3) the name of a qualified fund upon approval of the application and certification by the commissioner under subdivision 4;
(4) for credit certificates issued under subdivision 5, the amount of the credit certificate issued, amount of the qualifying investment, the name of the qualifying investor or qualifying fund that received the certificate, and the name of the qualifying small business in which the qualifying investment was made;
(5) for credits revoked under subdivision 7, paragraph (a), the amount revoked and the name of the qualified investor or qualified fund; and
(6) for credits revoked under subdivision 7, paragraphs (b) and (c), the amount revoked and the name of the qualified small business.
(b) The following data, including data classified as nonpublic or private, must be provided to the consultant for use in conducting the program evaluation under subdivision 10:
(1) the commissioner of employment and economic development shall provide data contained in an application for certification received from a qualified small business, qualified investor, or qualified fund, and any annual reporting information received on a qualified small business, qualified investor, or qualified fund; and
(2) the commissioner of revenue shall provide data contained in any applicable tax returns of a qualified small business, qualified investor, or qualified fund.
EFFECTIVE
DATE. This section is
effective for businesses requesting certification starting on the day following
final enactment.
Sec. 6. Minnesota Statutes 2011 Supplement, section 289A.02, subdivision 7, is amended to read:
Subd. 7.
Internal Revenue Code. Unless specifically defined otherwise,
"Internal Revenue Code" means the Internal Revenue Code of 1986, as
amended through April 14, 2011 February 14, 2012.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 7. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19, is amended to read:
Subd. 19. Net income. The term "net income" means the federal taxable income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through the date named in this subdivision, incorporating the federal effective dates of changes to the Internal Revenue Code and any elections made by the taxpayer in accordance with the Internal Revenue Code in determining federal taxable income for federal income tax purposes, and with the modifications provided in subdivisions 19a to 19f.
In the case of a regulated investment company or a fund thereof, as defined in section 851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, except that:
(1) the
exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal Revenue Code does not apply;
(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue Code must be applied by allowing a deduction for capital gain dividends and exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code; and
(3) the deduction for dividends paid must also be applied in the amount of any undistributed capital gains which the regulated investment company elects to have treated as provided in section 852(b)(3)(D) of the Internal Revenue Code.
The net income of a real estate investment trust as defined and limited by section 856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
The net income of a designated settlement fund as defined in section 468B(d) of the Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal Revenue Code.
The Internal Revenue Code of 1986, as amended
through April 14, 2011 February 14, 2012, shall be in effect for
taxable years beginning after December 31, 1996. The provisions of the act of January 22,
2010, Public Law 111-126, to accelerate the benefits for charitable cash
contributions for the relief of victims of the Haitian earthquake, are
effective at the same time they became effective for federal purposes and apply
to the subtraction under subdivision 19b, clause (6). The provisions of title II, section 2112, of
the act of September 27, 2010, Public Law 111-240, rollovers from elective
deferral plans to designated Roth accounts, are effective at the same time they
became effective for federal purposes and taxable rollovers are included in net
income at the same time they are included in gross income for federal purposes.
Except as otherwise provided, references to the Internal Revenue Code in subdivisions 19 to 19f mean the code in effect for purposes of determining net income for the applicable year.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 31, is amended to read:
Subd. 31. Internal
Revenue Code. Unless specifically
defined otherwise, "Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended through April 14, 2011 February 14, 2012. Internal Revenue Code also includes any
uncodified provision in federal law that relates to provisions of the Internal
Revenue Code that are incorporated into Minnesota law. When used in this chapter, the reference to
"subtitle A, chapter 1, subchapter N, part 1, of the Internal Revenue
Code" is to the Internal Revenue Code as amended through March 18, 2010.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 9. Minnesota Statutes 2010, section 290.068, subdivision 1, is amended to read:
Subdivision 1. Credit allowed. A corporation, partners in a partnership, or shareholders in a corporation treated as an "S" corporation under section 290.9725 are allowed a credit against the tax computed under this chapter for the taxable year equal to:
(a) ten percent of the first $2,000,000 of the excess (if any) of
(1) the qualified research expenses for the taxable year, over
(2) the base amount; and
(b) 2.5 2.8 percent on all of
such excess expenses over $2,000,000 for taxable years beginning after
December 31, 2011.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2011.
Sec. 10. Minnesota Statutes 2010, section 290.0681, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the meanings given.
(b) "Account" means the historic credit administration account in the special revenue fund.
(c) "Office" means the State Historic Preservation Office of the Minnesota Historical Society.
(d) "Project" means
rehabilitation of a certified historic structure, as defined in section
47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is
allowed a federal credit under section 47(a)(2) of the Internal Revenue Code.
(e) "Society" means the Minnesota Historical Society.
(f) "Federal credit" means the
credit allowed under section 47(a)(2) of the Internal Revenue Code.
(g) "Placed in service" has
the meaning used in section 47 of the Internal Revenue Code.
(h) "Qualified rehabilitation
expenditures" has the meaning given in section 47 of the Internal Revenue
Code.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 11. Minnesota Statutes 2010, section 290.0681, subdivision 3, is amended to read:
Subd. 3.
Applications; allocations. (a) To qualify for a credit or grant
under this section, the developer of a project must apply to the office before
the rehabilitation begins. The
application must contain the information and be in the form prescribed by the
office. The office may collect a fee for
application of up to $5,000, based on estimated qualified rehabilitation expenses
expenditures, to offset costs associated with personnel and
administrative expenses related to administering the credit and preparing the
economic impact report in subdivision 9.
Application fees are deposited in the account. The application must indicate if the
application is for a credit or a grant in lieu of the credit or a combination
of the two and designate the taxpayer qualifying
for the credit or the recipient of the grant.
(b) Upon approving an application for credit, the office shall issue allocation certificates that:
(1) verify eligibility for the credit or grant;
(2) state the amount of credit or grant anticipated with the project, with the credit amount equal to 100 percent and the grant amount equal to 90 percent of the federal credit anticipated in the application;
(3) state that the credit or grant allowed may increase or decrease if the federal credit the project receives at the time it is placed in service is different than the amount anticipated at the time the allocation certificate is issued; and
(4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer or grant recipient is entitled to receive the credit or grant at the time the project is placed in service, provided that date is within three calendar years following the issuance of the allocation certificate.
(c) The office, in consultation with the
commissioner of revenue, shall determine if the project is eligible for
a credit or a grant under this section and must notify the developer in
writing of its determination. Eligibility
for the credit is subject to review and audit by the commissioner of revenue.
(d) The federal credit recapture and repayment requirements under section 50 of the Internal Revenue Code do not apply to the credit allowed under this section.
(e) Any decision of the office under
paragraph (c) of this subdivision may be challenged as a contested case under
chapter 14. The contested case
proceeding must be initiated within 45 days of the date of written notification
by the office.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 12. Minnesota Statutes 2010, section 290.0681, subdivision 4, is amended to read:
Subd. 4. Credit certificates; grants. (a)(1) The developer of a project for which the office has issued an allocation certificate must notify the office when the project is placed in service. Upon verifying that the project has been placed in service, and was allowed a federal credit, the office must issue a credit certificate to the taxpayer designated in the application or must issue a grant to the recipient designated in the application. The credit certificate must state the amount of the credit.
(2) The credit amount equals the federal credit allowed for the project.
(3) The grant amount equals 90 percent of the federal credit allowed for the project.
(b) The recipient of a credit certificate may assign the certificate to another taxpayer, which is then allowed the credit under this section or section 297I.20, subdivision 3. An assignment is not valid unless the assignee notifies the commissioner within 30 days of the date that the assignment is made. The commissioner shall prescribe the forms necessary for notifying the commissioner of the assignment of a credit certificate and for claiming a credit by assignment.
(c) Credits passed through
pursuant to subdivision 5 of this section are not an assignment of a credit
certificate under this subdivision.
(d) A grant agreement between the office
and the recipient of a grant may allow the grant to be issued to another
individual or entity.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 13. Minnesota Statutes 2010, section 290.0681, subdivision 5, is amended to read:
Subd. 5. Partnerships; multiple owners. Credits granted to a partnership, a limited liability company taxed as a partnership, S corporation, or multiple owners of property are passed through to the partners, members, shareholders, or owners, respectively, pro rata to each partner, member, shareholder, or owner based on their share of the entity's assets or as specially allocated in their organizational documents or any other executed agreement, as of the last day of the taxable year.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 14. Minnesota Statutes 2010, section 290.0681, subdivision 10, is amended to read:
Subd. 10. Sunset. This section expires after fiscal year 2015
2021, except that the office's authority to issue credit certificates
under subdivision 4 based on allocation certificates that were issued before
fiscal year 2016 2022 remains in effect through 2018 2024,
and the reporting requirements in subdivision 9 remain in effect through the
year following the year in which all allocation certificates have either been
canceled or resulted in issuance of credit certificates, or 2019 2025,
whichever is earlier.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 15. [290.0693]
VETERANS JOBS TAX CREDIT.
Subdivision 1. Definitions. (a) For purposes of this section, the
following terms have the meanings given.
(b)(1) "Full-time employee"
means an employee as defined in section 290.92, subdivision 1, who meets the
following criteria:
(i) the employee is paid wages as
defined in section 290.92, subdivision 1, for at least 1,820 hours during the
12-month period that starts on the date of hire;
(ii) the employee's wages are
attributable to Minnesota under section 290.191, subdivision 12;
(iii) the employee performs services for the employer in at least 50 weeks during the 12-month period that starts on the date of hire; and
(iv) the employee's total compensation,
including benefits not mandated by law, is at least $25,000 for the 12-month
period that starts on the date of hire.
(2) "Full-time employee" does
not include:
(i) any employee who bears any of the
relationships described in subparagraphs (A) to (G) of section 152(d)(2) of the
Internal Revenue Code to the employer;
(ii) if the employer is a
corporation, any employee who owns, directly or indirectly, more than 50
percent in value of the outstanding stock of the corporation, or if the
employer is an entity other than a corporation, an employee who owns, directly
or indirectly, more than 50 percent of the capital and profits interests in the
entity, as determined with the application of section 267(c) of the Internal
Revenue Code; or
(iii) if the employer is an estate or
trust, any employee who is a fiduciary of the estate or trust, or is an
individual who bears any of the relationships described in subparagraphs (A) to
(G) of section 152(d)(2) of the Internal Revenue Code to a grantor,
beneficiary, or fiduciary of the estate or trust.
(c) "Qualified employer"
means an employer that:
(1) employed a total of five or more
full-time employees on December 31, 2011; and
(2) hired one or more qualified
full-time employees after March 31, 2012.
(d) "Qualified full-time
employee" means a full-time employee who:
(1) has completed 12 consecutive months
of service as a full-time employee for a qualified employer;
(2) is a qualified unemployed veteran;
and
(3) is a resident of Minnesota on the
date of hire.
(e) "Qualified unemployed
veteran" is a person who:
(1) was in active military service in a
designated area after September 11, 2001, as defined in section 290.0677;
(2) was separated from active military
service at any time during the five-year period prior to the date of hire;
(3) received unemployment compensation
under state or federal law for not less than four weeks during the one-year
period prior to the date of hire; and
(4) was unemployed on the date of hire.
(f) "Date of hire" means the
day that the qualified full-time employee begins performing services as an
employee for the qualified employer.
(g) "Construction trades
employer" means a person carrying on a trade or business described in
industry code numbers 23 through 238990 of the North American Industry
Classification System.
Subd. 2. Credit
for new full-time employees. (a)
A qualified employer who is required to file a return under section 289A.08,
subdivision 1, 2, or 3, is allowed a credit against the tax imposed by this
chapter for the net increase in qualified full-time employees.
(b)(1) For hiring qualified full-time
employees after March 30, 2012, but before January 1, 2013, the credit is equal
to $3,000 times the net increase in full-time employees. The net increase in full-time employees is
the difference between:
(i) the total number of full-time
employees employed by the employer on December 31, 2011; and
(ii) the number of full-time employees
employed by the employer on December 31, 2012.
The net increase in full-time
employees cannot exceed the number of qualified full-time employees hired after
March 31, 2012, but before January 1, 2013.
(2) For hiring qualified full-time
employees after December 31, 2012, but before July 1, 2013, the credit is equal
to $1,500 times the net increase in full-time employees. The net increase in full-time employees is
the difference between:
(i) the total number of full-time
employees employed by the taxpayer on December 31, 2011; and
(ii) the number of full-time employees
employed by the taxpayer on December 31, 2013.
The net increase in full-time employees cannot exceed the
number of qualified full-time employees hired after December 31, 2012, but
before July 1, 2013.
(c) The credit may be claimed in the
taxable year in which the qualified full-time employee completes 12 consecutive
months of continuous service as a full-time employee of the qualified employer.
(d) The maximum aggregate credits
allowed to a qualified employer under this section for all taxable years is
$50,000.
(e) For members of a unitary business
whose income and factors are included on a combined income report under section
289A.08, subdivision 3, the number of full-time employees and the maximum
allowable credit are not determined at the individual member level but are
instead determined at the group level.
Subd. 3. Allocation
of credits. (a) By July 1,
2012, the commissioner shall develop an Internet application that allows
employers to apply for tentative credits.
The application must include the employer's name, tax identification
number, and North American Industry Classification System industry code, and
the name and date of hire of the employee.
(b) The credit is available only to
employers who apply for a tentative credit using the application in paragraph
(a) and who receive notice that their application has been approved for a
tentative credit.
(c) Employers may apply for a tentative
credit no earlier than the date of hire of each qualified full-time employee. Any employer may file more than one tentative
credit application, but no employer may apply for tentative credits for more
than a total of 16 employees hired in 2012 or 33 employees hired in 2013.
(d) The commissioner shall approve
applications seeking tentative credits for the first 1,250 full-time employees
based on the order in which the applications are received.
(e) The commissioner must promptly
notify employers if they are eligible for a tentative credit. The notice must state that the employer is
eligible for a credit only after the employee named in the application has
worked for 12 consecutive months and all other conditions of eligibility are
met.
(f) The commissioner shall promptly
publish public notice when all 2,500 tentative credits have been applied for.
Subd. 4. Tentative
credits for construction trades employers.
(a) Any construction trades employer may apply for a tentative
credit.
(b) To remain eligible for a credit, a
construction trades employer who has received a tentative credit must renew the
tentative credit by filing an application with the commissioner no earlier than
180 days after date of hire and no more than 210 days after date of hire. The renewal notice must state that the
employee for whom the tentative credit was originally granted is still an
employee and that the employer reasonably believes that all qualifications of
eligibility for a credit will be met.
(c) Any tentative credit issued
to a construction trades employer that is not renewed within the time required
for renewal is canceled. Any canceled
tentative credits are available to be reissued by the commissioner to employers
under subdivision 3.
Subd. 5. Flow-through
entities. Credits granted to
a partnership, limited liability company taxed as a partnership, S corporation,
or multiple owners of a business are passed through to the partners, members,
shareholders, or owners, respectively, pro rata to each partner, member,
shareholder, or owner based on their share of the entity's assets or as
specially allocated in their organizational documents, as of the last day of
the taxable year.
Subd. 6. Refundable. If the amount of the credit allowed
under this section exceeds the liability for tax under this chapter, the
commissioner shall refund the excess to the taxpayer.
Subd. 7. Appropriation. An amount sufficient to pay the
refunds authorized by this section is appropriated to the commissioner from the
general fund.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 16. Minnesota Statutes 2011 Supplement, section 290A.03, subdivision 15, is amended to read:
Subd. 15. Internal
Revenue Code. "Internal Revenue
Code" means the Internal Revenue Code of 1986, as amended through April
14, 2011 February 14, 2012.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 17. Minnesota Statutes 2011 Supplement, section 291.005, subdivision 1, is amended to read:
Subdivision 1. Scope. Unless the context otherwise clearly requires, the following terms used in this chapter shall have the following meanings:
(1) "Commissioner" means the commissioner of revenue or any person to whom the commissioner has delegated functions under this chapter.
(2) "Federal gross estate" means the gross estate of a decedent as required to be valued and otherwise determined for federal estate tax purposes under the Internal Revenue Code.
(3) "Internal Revenue Code" means
the United States Internal Revenue Code of 1986, as amended through April
14, 2011 February 14, 2012, but without regard to the provisions of
sections 501 and 901 of Public Law 107-16, as amended by Public Law 111-312,
and section 301(c) of Public Law 111-312.
(4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as defined by section 2011(b)(3) of the Internal Revenue Code, plus
(i) the amount of deduction for state death taxes allowed under section 2058 of the Internal Revenue Code; less
(ii)(A) the value of qualified small business property under section 291.03, subdivision 9, and the value of qualified farm property under section 291.03, subdivision 10, or (B) $4,000,000, whichever is less.
(5) "Minnesota gross estate" means the federal gross estate of a decedent after (a) excluding therefrom any property included therein which has its situs outside Minnesota, and (b) including therein any property omitted from the federal gross estate which is includable therein, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
(6) "Nonresident decedent" means an individual whose domicile at the time of death was not in Minnesota.
(7) "Personal representative" means the executor, administrator or other person appointed by the court to administer and dispose of the property of the decedent. If there is no executor, administrator or other person appointed, qualified, and acting within this state, then any person in actual or constructive possession of any property having a situs in this state which is included in the federal gross estate of the decedent shall be deemed to be a personal representative to the extent of the property and the Minnesota estate tax due with respect to the property.
(8) "Resident decedent" means an individual whose domicile at the time of death was in Minnesota.
(9) "Situs of property" means, with respect to real property, the state or country in which it is located; with respect to tangible personal property, the state or country in which it was normally kept or located at the time of the decedent's death; and with respect to intangible personal property, the state or country in which the decedent was domiciled at death.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 18. Laws 2010, chapter 216, section 11, the effective date, is amended to read:
EFFECTIVE
DATE. This section is effective for
taxable years beginning after December 31, 2009, for certified historic
structures for which qualified costs of rehabilitation are first paid under
construction contracts entered into after May 1, 2010 rehabilitation
expenditures are first paid by the developer or taxpayer after May 1, 2010, for
rehabilitation that occurs after May 1, 2010, provided that the application
under subdivision 3 is submitted before the project is placed in service.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies retroactively for
taxable years beginning after December 31, 2009, and for certified historic
structures placed in service after May 1, 2010, but the office may not issue
certificates allowed under the change to this section until July 1, 2012.
Sec. 19. AMENDED
RETURNS; CERTAIN IRA ROLLOVERS.
An individual who excludes an amount
from net income in a prior taxable year through rollover of an airline payment
amount to a traditional IRA, as authorized under Public Law 112-95, section
1106, may file an amended individual income tax return and claim for refund of
state taxes as provided under Minnesota Statutes, section 289A.40, subdivision
1, or, if later, by April 15, 2013.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 9
SALES AND SPECIAL TAXES
Section 1. Minnesota Statutes 2010, section 289A.20, subdivision 4, is amended to read:
Subd. 4. Sales
and use tax. (a) The taxes imposed
by chapter 297A are due and payable to the commissioner monthly on or before
the 20th day of the month following the month in which the taxable event
occurred, or following another reporting period as the commissioner prescribes
or as allowed under section 289A.18, subdivision 4, paragraph (f) or (g),
except that:
(1) use taxes due on an annual use
tax return as provided under section 289A.11, subdivision 1, are payable by
April 15 following the close of the calendar year; and.
(2) except as provided in
paragraph (f), for a vendor having a liability of $120,000 or more during a
fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes
imposed by chapter 297A, except as provided in paragraph (b), are due and
payable to the commissioner monthly in the following manner:
(i) On or before the 14th day of the
month following the month in which the taxable event occurred, the vendor must
remit to the commissioner 90 percent of the estimated liability for the month
in which the taxable event occurred.
(ii) On or before the 20th day of the
month in which the taxable event occurs, the vendor must remit to the
commissioner a prepayment for the month in which the taxable event occurs equal
to 67 percent of the liability for the previous month.
(iii) On or before the 20th day of the
month following the month in which the taxable event occurred, the vendor must
pay any additional amount of tax not previously remitted under either item (i)
or (ii ) or, if the payment made under item (i) or (ii) was greater than the
vendor's liability for the month in which the taxable event occurred, the
vendor may take a credit against the next month's liability in a manner
prescribed by the commissioner.
(iv) Once the vendor first pays under
either item (i) or (ii), the vendor is required to continue to make payments in
the same manner, as long as the vendor continues having a liability of $120,000
or more during the most recent fiscal year ending June 30.
(v) Notwithstanding items (i), (ii), and
(iv), if a vendor fails to make the required payment in the first month that
the vendor is required to make a payment under either item (i) or (ii), then
the vendor is deemed to have elected to pay under item (ii) and must make
subsequent monthly payments in the manner provided in item (ii).
(vi) For vendors making an accelerated
payment under item (ii), for the first month that the vendor is required to
make the accelerated payment, on the 20th of that month, the vendor will pay
100 percent of the liability for the previous month and a prepayment for the
first month equal to 67 percent of the liability for the previous month.
(b) Notwithstanding paragraph (a), A
vendor having a liability of $120,000 or more during a fiscal year ending June
30 must remit the June liability for the next year in the following manner:
(1) Two business days before June 30 of the year, the vendor must remit 90 percent of the estimated June liability to the commissioner.
(2) On or before August 20 of the year, the vendor must pay any additional amount of tax not remitted in June.
(c) A vendor having a liability of:
(1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30, 2009, and fiscal years thereafter, must remit by electronic means all liabilities on returns due for periods beginning in the subsequent calendar year on or before the 20th day of the month following the month in which the taxable event occurred, or on or before the 20th day of the month following the month in which the sale is reported under section 289A.18, subdivision 4; or
(2) $120,000 or more, during a fiscal year
ending June 30, 2009, and fiscal years thereafter, must remit by electronic
means all liabilities in the manner provided in paragraph (a) , clause (2),
on returns due for periods beginning in the subsequent calendar year, except
for 90 percent of the estimated June liability, which is due two business days
before June 30. The remaining amount of
the June liability is due on August 20.
(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's religious beliefs from paying electronically shall be allowed to remit the payment by mail. The filer must notify the commissioner of revenue of the intent to pay by mail before doing so on a form prescribed by the commissioner. No extra fee may be charged to a person making payment by mail under this paragraph. The payment must be postmarked at least two business days before the due date for making the payment in order to be considered paid on a timely basis.
(e) Whenever the liability is
$120,000 or more separately for: (1) the
tax imposed under chapter 297A; (2) a fee that is to be reported on the same
return as and paid with the chapter 297A taxes; or (3) any other tax that is to
be reported on the same return as and paid with the chapter 297A taxes, then
the payment of all the liabilities on the return must be accelerated as
provided in this subdivision.
(f) At the start of the first calendar
quarter at least 90 days after the cash flow account established in section
16A.152, subdivision 1, and the budget reserve account established in section
16A.152, subdivision 1a, reach the amounts listed in section 16A.152,
subdivision 2, paragraph (a), the remittance of the accelerated payments
required under paragraph (a), clause (2), must be suspended. The commissioner of management and budget
shall notify the commissioner of revenue when the accounts have reached the
required amounts. Beginning with the
suspension of paragraph (a), clause (2), for a vendor with a liability of
$120,000 or more during a fiscal year ending June 30, 2009, and fiscal years
thereafter, the taxes imposed by chapter 297A are due and payable to the
commissioner on the 20th day of the month following the month in which the
taxable event occurred. Payments of tax
liabilities for taxable events occurring in June under paragraph (b) are not
changed.
EFFECTIVE
DATE. This section is
effective for taxes due and payable after June 30, 2012.
Sec. 2. Minnesota Statutes 2011 Supplement, section 295.53, subdivision 1, is amended to read:
Subdivision 1. Exemptions. (a) The following payments are excluded from the gross revenues subject to the hospital, surgical center, or health care provider taxes under sections 295.50 to 295.59:
(1) payments received for services provided under the Medicare program, including payments received from the government, and organizations governed by sections 1833 and 1876 of title XVIII of the federal Social Security Act, United States Code, title 42, section 1395, and enrollee deductibles, coinsurance, and co-payments, whether paid by the Medicare enrollee or by a Medicare supplemental coverage as defined in section 62A.011, subdivision 3, clause (10), or by Medicaid payments under title XIX of the federal Social Security Act. Payments for services not covered by Medicare are taxable;
(2) payments received for home health care services;
(3) payments received from hospitals or surgical centers for goods and services on which liability for tax is imposed under section 295.52 or the source of funds for the payment is exempt under clause (1), (7), (10), or (14);
(4) payments received from health care providers for goods and services on which liability for tax is imposed under this chapter or the source of funds for the payment is exempt under clause (1), (7), (10), or (14);
(5) amounts paid for legend drugs, other than nutritional products and blood and blood components, to a wholesale drug distributor who is subject to tax under section 295.52, subdivision 3, reduced by reimbursements received for legend drugs otherwise exempt under this chapter;
(6) payments received by a health care provider or the wholly owned subsidiary of a health care provider for care provided outside Minnesota;
(7) payments received from the chemical dependency fund under chapter 254B;
(8) payments received in the nature of charitable donations that are not designated for providing patient services to a specific individual or group;
(9) payments received for providing patient services incurred through a formal program of health care research conducted in conformity with federal regulations governing research on human subjects. Payments received from patients or from other persons paying on behalf of the patients are subject to tax;
(10) payments received from any governmental agency for services benefiting the public, not including payments made by the government in its capacity as an employer or insurer or payments made by the government for services provided under general assistance medical care, the MinnesotaCare program, or the medical assistance program governed by title XIX of the federal Social Security Act, United States Code, title 42, sections 1396 to 1396v;
(11) government payments received by the commissioner of human services for state-operated services;
(12) payments received by a health care provider for hearing aids and related equipment or prescription eyewear delivered outside of Minnesota;
(13) payments received by an educational institution from student tuition, student activity fees, health care service fees, government appropriations, donations, or grants, and for services identified in and provided under an individualized education program as defined in section 256B.0625 or Code of Federal Regulations, chapter 34, section 300.340(a). Fee for service payments and payments for extended coverage are taxable;
(14) payments received under the federal
Employees Health Benefits Act, United States Code, title 5, section 8909(f), as
amended by the Omnibus Reconciliation Act of 1990. Enrollee deductibles, coinsurance, and
co-payments are subject to tax; and
(15) payments received under the federal
Tricare program, Code of Federal Regulations, title 32, section 199.17(a)(7). Enrollee deductibles, coinsurance, and co-payments
are subject to tax. ; and
(16) payments for laboratory services
to examine and report results for a biological specimen that is collected
outside the state. The entity claiming
the exemption is required to keep adequate records demonstrating that the
specimen was collected outside the state, so that the commissioner can ensure
that the correct amount of tax is paid.
(b) Payments received by wholesale drug distributors for legend drugs sold directly to veterinarians or veterinary bulk purchasing organizations are excluded from the gross revenues subject to the wholesale drug distributor tax under sections 295.50 to 295.59.
EFFECTIVE
DATE. This section is
effective for gross revenues received from laboratory services provided on or
after July 1, 2013.
Sec. 3. Minnesota Statutes 2010, section 297A.61, subdivision 4, is amended to read:
Subd. 4. Retail sale. (a) A "retail sale" means any sale, lease, or rental for any purpose, other than resale, sublease, or subrent of items by the purchaser in the normal course of business as defined in subdivision 21.
(b) A sale of property used by the owner only by leasing it to others or by holding it in an effort to lease it, and put to no use by the owner other than resale after the lease or effort to lease, is a sale of property for resale.
(c) A sale of master computer software that is purchased and used to make copies for sale or lease is a sale of property for resale.
(d) A sale of building materials, supplies, and equipment to owners, contractors, subcontractors, or builders for the erection of buildings or the alteration, repair, or improvement of real property is a retail sale in whatever quantity sold, whether the sale is for purposes of resale in the form of real property or otherwise.
(e) A sale of carpeting, linoleum, or similar floor covering to a person who provides for installation of the floor covering is a retail sale and not a sale for resale since a sale of floor covering which includes installation is a contract for the improvement of real property.
(f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides for installation of the items is a retail sale and not a sale for resale since a sale of shrubbery, plants, sod, trees, and similar items that includes installation is a contract for the improvement of real property.
(g) A sale of tangible personal property that is awarded as prizes is a retail sale and is not considered a sale of property for resale.
(h) A sale of tangible personal property utilized or employed in the furnishing or providing of services under subdivision 3, paragraph (g), clause (1), including, but not limited to, property given as promotional items, is a retail sale and is not considered a sale of property for resale.
(i) A sale of tangible personal property used in conducting lawful gambling under chapter 349 or the State Lottery under chapter 349A, including, but not limited to, property given as promotional items, is a retail sale and is not considered a sale of property for resale.
(j) A sale of machines, equipment, or devices that are used to furnish, provide, or dispense goods or services, including, but not limited to, coin-operated devices, is a retail sale and is not considered a sale of property for resale.
(k) In the case of a lease, a retail sale
occurs (1) when an obligation to make a lease payment becomes due under the
terms of the agreement or the trade practices of the lessor or; (2)
in the case of a lease of a motor vehicle, as defined in section 297B.01,
subdivision 11, but excluding vehicles with a manufacturer's gross vehicle
weight rating greater than 10,000 pounds and rentals of vehicles for not more
than 28 days, at the time the lease is executed; or (3) for rent-to-own or
lease-to-own used vehicles where the lessee may purchase or return the vehicle
at any time without penalty, at the time each payment is made under the terms
of the agreement.
(l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of title or possession of the tangible personal property.
(m) A sale of a bundled transaction in which one or more of the products included in the bundle is a taxable product is a retail sale, except that if one of the products is a telecommunication service, ancillary service, Internet access, or audio or video programming service, and the seller has maintained books and records identifying through reasonable and verifiable standards the portions of the price that are attributable to the distinct and separately identifiable products, then the products are not considered part of a bundled transaction. For purposes of this paragraph:
(1) the books and records maintained by the seller must be maintained in the regular course of business, and do not include books and records created and maintained by the seller primarily for tax purposes;
(2) books and records maintained in the regular course of business include, but are not limited to, financial statements, general ledgers, invoicing and billing systems and reports, and reports for regulatory tariffs and other regulatory matters; and
(3) books and records are maintained primarily for tax purposes when the books and records identify taxable and nontaxable portions of the price, but the seller maintains other books and records that identify different prices attributable to the distinct products included in the same bundled transaction.
EFFECTIVE
DATE. This section is
effective for leases entered into after June 30, 2012.
Sec. 4. Minnesota Statutes 2010, section 297A.68, subdivision 5, is amended to read:
Subd. 5. Capital equipment. (a) Capital equipment is exempt. Except as provided in paragraph (e), the tax must be imposed and collected as if the rate under section 297A.62, subdivision 1, applied, and then refunded in the manner provided in section 297A.75.
"Capital equipment" means machinery and equipment purchased or leased, and used in this state by the purchaser or lessee primarily for manufacturing, fabricating, mining, or refining tangible personal property to be sold ultimately at retail if the machinery and equipment are essential to the integrated production process of manufacturing, fabricating, mining, or refining. Capital equipment also includes machinery and equipment used primarily to electronically transmit results retrieved by a customer of an online computerized data retrieval system.
(b) Capital equipment includes, but is not limited to:
(1) machinery and equipment used to operate, control, or regulate the production equipment;
(2) machinery and equipment used for research and development, design, quality control, and testing activities;
(3) environmental control devices that are used to maintain conditions such as temperature, humidity, light, or air pressure when those conditions are essential to and are part of the production process;
(4) materials and supplies used to construct and install machinery or equipment;
(5) repair and replacement parts, including accessories, whether purchased as spare parts, repair parts, or as upgrades or modifications to machinery or equipment;
(6) materials used for foundations that support machinery or equipment;
(7) materials used to construct and install special purpose buildings used in the production process;
(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed as part of the delivery process regardless if mounted on a chassis, repair parts for ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and
(9) machinery or equipment used for research, development, design, or production of computer software.
(c) Capital equipment does not include the following:
(1) motor vehicles taxed under chapter 297B;
(2) machinery or equipment used to receive or store raw materials;
(3) building materials, except for materials included in paragraph (b), clauses (6) and (7);
(4) machinery or equipment used for nonproduction purposes, including, but not limited to, the following: plant security, fire prevention, first aid, and hospital stations; support operations or administration; pollution control; and plant cleaning, disposal of scrap and waste, plant communications, space heating, cooling, lighting, or safety;
(5)
farm machinery and aquaculture production equipment as defined by section
297A.61, subdivisions 12 and 13;
(6) machinery or equipment purchased and installed by a contractor as part of an improvement to real property;
(7) machinery and equipment used by restaurants in the furnishing, preparing, or serving of prepared foods as defined in section 297A.61, subdivision 31;
(8) machinery and equipment used to furnish the services listed in section 297A.61, subdivision 3, paragraph (g), clause (6), items (i) to (vi) and (viii);
(9) machinery or equipment used in the transportation, transmission, or distribution of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines, tanks, mains, or other means of transporting those products. This clause does not apply to machinery or equipment used to blend petroleum or biodiesel fuel as defined in section 239.77; or
(10) any other item that is not essential to the integrated process of manufacturing, fabricating, mining, or refining.
(d) For purposes of this subdivision:
(1) "Equipment" means independent devices or tools separate from machinery but essential to an integrated production process, including computers and computer software, used in operating, controlling, or regulating machinery and equipment; and any subunit or assembly comprising a component of any machinery or accessory or attachment parts of machinery, such as tools, dies, jigs, patterns, and molds.
(2) "Fabricating" means to make, build, create, produce, or assemble components or property to work in a new or different manner.
(3) "Integrated production process" means a process or series of operations through which tangible personal property is manufactured, fabricated, mined, or refined. For purposes of this clause, (i) manufacturing begins with the removal of raw materials from inventory and ends when the last process prior to loading for shipment has been completed; (ii) fabricating begins with the removal from storage or inventory of the property to be assembled, processed, altered, or modified and ends with the creation or production of the new or changed product; (iii) mining begins with the removal of overburden from the site of the ores, minerals, stone, peat deposit, or surface materials and ends when the last process before stockpiling is completed; and (iv) refining begins with the removal from inventory or storage of a natural resource and ends with the conversion of the item to its completed form.
(4) "Machinery" means mechanical, electronic, or electrical devices, including computers and computer software, that are purchased or constructed to be used for the activities set forth in paragraph (a), beginning with the removal of raw materials from inventory through completion of the product, including packaging of the product.
(5) "Machinery and equipment used for pollution control" means machinery and equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity described in paragraph (a).
(6) "Manufacturing" means an operation or series of operations where raw materials are changed in form, composition, or condition by machinery and equipment and which results in the production of a new article of tangible personal property. For purposes of this subdivision, "manufacturing" includes the generation of electricity or steam to be sold at retail.
(7) "Mining" means the extraction of minerals, ores, stone, or peat.
(8) "Online data retrieval system" means a system whose cumulation of information is equally available and accessible to all its customers.
(9) "Primarily" means machinery and equipment used 50 percent or more of the time in an activity described in paragraph (a).
(10) "Refining" means the process of converting a natural resource to an intermediate or finished product, including the treatment of water to be sold at retail.
(11) This subdivision does not apply to telecommunications equipment as provided in subdivision 35, and does not apply to wire, cable, fiber, poles, or conduit for telecommunications services.
(e) Materials exempt under this section
may be purchased without imposing and collecting the tax and applying for a
refund under section 297A.75, provided that:
(1) the purchaser employed not more than 50 full-time employees at any time during the calendar year that is immediately prior to the calendar year of the sale and purchase; and
(2) if another business owns at least
20 percent of the purchaser, then the sum of the number of full-time employees
employed by the purchaser and the number of full-time employees employed by any
other business that owns at least 20 percent of the purchaser's business is not
more than 50 full-time employees at any time during the calendar year that is
immediately prior to the calendar year of the sale and purchase. This clause must be applied for each business
that owns at least 20 percent of the purchaser.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2012.
Sec. 5. Minnesota Statutes 2011 Supplement, section 297A.68, subdivision 42, is amended to read:
Subd. 42. Qualified data centers. (a) Purchases of enterprise information technology equipment and computer software for use in a qualified data center are exempt. The tax on purchases exempt under this paragraph must be imposed and collected as if the rate under section 297A.62, subdivision 1, applied, and then refunded after June 30, 2013, in the manner provided in section 297A.75. This exemption includes enterprise information technology equipment and computer software purchased to replace or upgrade enterprise information technology equipment and computer software in a qualified data center.
(b) Electricity used or consumed in the operation of a qualified data center is exempt.
(c) For purposes of this subdivision, "qualified data center" means a facility in Minnesota:
(1) that is comprised of one or more buildings that consist in the aggregate of at least 30,000 square feet, and that are located on a single parcel or on contiguous parcels, where the total cost of construction or refurbishment, investment in enterprise information technology equipment, and computer software is at least $50,000,000 within a 24-month period;
(2) that is constructed or substantially
refurbished after June 30, 2012, where "substantially refurbished"
means that at least 30,000 25,000 square feet have been rebuilt
or modified; and, including:
(i) installation of enterprise
information technology equipment, computer software, environmental control and
energy efficiency improvements; and
(ii) building improvements; and
(3) that is used to house enterprise information technology equipment, where the facility has the following characteristics:
(i) uninterruptible power supplies, generator backup power, or both;
(ii) sophisticated fire suppression and prevention systems; and
(iii) enhanced security. A facility will be considered to have enhanced security if it has restricted access to the facility to selected personnel; permanent security guards; video camera surveillance; an electronic system requiring pass codes, keycards, or biometric scans, such as hand scans and retinal or fingerprint recognition; or similar security features.
In determining whether the facility has
the required square footage, the square footage of the following spaces shall
be included if the spaces support the operation of enterprise information
technology equipment: office space,
meeting space, and mechanical and other support facilities. For purposes of this subdivision,
"computer software" includes, but is not limited to, software
utilized or loaded at the qualified data center, including maintenance,
licensing, and software customization.
(d) For purposes of this subdivision, "enterprise information technology equipment" means computers and equipment supporting computing, networking, or data storage, including servers and routers. It includes, but is not limited to: cooling systems, cooling towers, and other temperature control infrastructure; power infrastructure for transformation, distribution, or management of electricity used for the maintenance and operation of a qualified data center, including but not limited to exterior dedicated business-owned substations, backup power generation systems, battery systems, and related infrastructure; and racking systems, cabling, and trays, which are necessary for the maintenance and operation of the qualified data center.
(e) A qualified data center may claim the exemptions in this subdivision for purchases made either within 20 years of the date of its first purchase qualifying for the exemption under paragraph (a), or by June 30, 2042, whichever is earlier.
(f) The purpose of this exemption is to create jobs in the construction and data center industries.
(g) This subdivision is effective for sales and purchases made after June 30, 2012, and before July 1, 2042.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2012.
Sec. 6. Minnesota Statutes 2010, section 297A.70, subdivision 4, is amended to read:
Subd. 4. Sales to nonprofit groups. (a) All sales, except those listed in paragraph (b), to the following "nonprofit organizations" are exempt:
(1) a corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes if the item purchased is used in the performance of charitable, religious, or educational functions; and
(2) any senior citizen group or association of groups that:
(i) in general limits membership to persons who are either age 55 or older, or physically disabled;
(ii) is organized and operated exclusively for pleasure, recreation, and other nonprofit purposes, not including housing, no part of the net earnings of which inures to the benefit of any private shareholders; and
(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.
For purposes of this subdivision, charitable purpose includes the maintenance of a cemetery owned by a religious organization.
(b) This exemption does not apply to the following sales:
(1) building, construction, or reconstruction materials purchased by a contractor or a subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed maximum price covering both labor and materials for use in the construction, alteration, or repair of a building or facility;
(2) construction materials purchased by tax-exempt entities or their contractors to be used in constructing buildings or facilities that will not be used principally by the tax-exempt entities; and
(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67, subdivision 2, except wine purchased by an established religious organization for sacramental purposes or as allowed under subdivision 9a; and
(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except as provided in paragraph (c).
(c) This exemption applies to the leasing of a motor vehicle as defined in section 297B.01, subdivision 11, only if the vehicle is:
(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a passenger automobile, as defined in section 168.002, if the automobile is designed and used for carrying more than nine persons including the driver; and
(2) intended to be used primarily to transport tangible personal property or individuals, other than employees, to whom the organization provides service in performing its charitable, religious, or educational purpose.
(d) A limited liability company also qualifies for exemption under this subdivision if (1) it consists of a sole member that would qualify for the exemption, and (2) the items purchased qualify for the exemption.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2012.
Sec. 7. Minnesota Statutes 2010, section 297A.70, is amended by adding a subdivision to read:
Subd. 9a. Established
religious orders. (a) Sales
of lodging, prepared food, candy, soft drinks, and alcoholic beverages at
noncatered events between an established religious order and an affiliated
institution of higher education are exempt.
(b) For purposes of this subdivision,
"established religious order" means an organization directly or indirectly
under the control or supervision of a church or convention or association of
churches, where members of the organization (1) normally live together as part
of a community, (2) make long-term commitments to live under a strict set of
moral and spiritual rules, and (3) work or engage full time in a combination of
prayer, religious study, church reform or renewal, or other religious,
educational, or charitable goals of the organization.
(c) For purposes of this subdivision,
an institution of higher education is "affiliated" with an
established religious order if members of the religious order are represented
on the governing board of the institution of higher education and the two
organization share campus space and common facilities.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2012.
Sec. 8. Minnesota Statutes 2010, section 297A.70, is amended by adding a subdivision to read:
Subd. 18. Nursing
homes and boarding care homes. (a)
All sales, except those listed in paragraph (b), to a nursing home licensed
under section 144A.02 or a boarding care home certified as a nursing facility
under title 19 of the Social Security Act are exempt if the facility:
(1) is exempt from federal income
taxation pursuant to section 501(c)(3) of the Internal Revenue Code; and
(2) is certified to participate in the
medical assistance program under title 19 of the Social Security Act, or
certifies to the commissioner that it does not discharge residents due to the
inability to pay.
(b) This exemption does not apply to
the following sales:
(1) building, construction, or
reconstruction materials purchased by a contractor or a subcontractor as a part
of a lump-sum contract or similar type of contract with a guaranteed maximum
price covering both labor and materials for use in the construction,
alteration, or repair of a building or facility;
(2) construction materials purchased by
tax-exempt entities or their contractors to be used in constructing buildings
or facilities that will not be used principally by the tax-exempt entities;
(3) lodging as defined under section
297A.61, subdivision 3, paragraph (g), clause (2), and prepared food, candy,
soft drinks, and alcoholic beverages as defined in section 297A.67, subdivision
2; and
(4) leasing of a motor vehicle as
defined in section 297B.01, subdivision 11, except as provided in paragraph
(c).
(c) This exemption applies to the
leasing of a motor vehicle as defined in section 297B.01, subdivision 11, only
if the vehicle is:
(1) a truck, as defined in section
168.002; a bus, as defined in section 168.002; or a passenger automobile, as
defined in section 168.002, if the automobile is designed and used for carrying
more than nine persons including the driver; and
(2) intended to be used primarily to
transport tangible personal property or residents of the nursing home or
boarding care home.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2012.
Sec. 9. Minnesota Statutes 2010, section 297A.815, subdivision 3, is amended to read:
Subd. 3. Motor vehicle lease sales tax revenue. (a) For purposes of this subdivision, "net revenue" means an amount equal to:
(1) the revenues, including interest and penalties, collected under this section and on the leases under section 297A.61, subdivision 4, paragraph (k), clause (3) , during the fiscal year; less
(2) in fiscal year 2011, $30,100,000; in fiscal year 2012, $31,100,000; and in fiscal year 2013 and following fiscal years, $32,000,000.
(b) On or before June 30 of each fiscal year, the commissioner of revenue shall estimate the amount of the revenues and subtraction under paragraph (a) for the current fiscal year.
(c) On or after July 1 of the subsequent fiscal year, the commissioner of management and budget shall transfer the net revenue as estimated in paragraph (b) from the general fund, as follows:
(1) 50 percent to the greater Minnesota transit account; and
(2) 50 percent to the county state-aid highway fund. Notwithstanding any other law to the contrary, the commissioner of transportation shall allocate the funds transferred under this clause to the counties in the metropolitan area, as defined in section 473.121, subdivision 4, excluding the counties of Hennepin and Ramsey, so that each county shall receive of such amount the percentage that its population, as defined in section 477A.011, subdivision 3, estimated or established by July 15 of the year prior to the current calendar year, bears to the total population of the counties receiving funds under this clause.
(d) For fiscal years 2010 and 2011, the amount under paragraph (a), clause (1), must be calculated using the following percentages of the total revenues:
(1) for fiscal year 2010, 83.75 percent; and
(2) for fiscal year 2011, 93.75 percent.
EFFECTIVE
DATE. This section is
effective for leases entered into after June 30, 2012.
Sec. 10. Minnesota Statutes 2010, section 297A.8155, is amended to read:
297A.8155
LIQUOR REPORTING REQUIREMENTS; PENALTY.
A person who sells liquor, as defined in
section 295.75, subdivision 1, in Minnesota to a retailer that sells liquor,
shall file with the commissioner an annual informational report, in the form
and manner prescribed by the commissioner, indicating the name, address, and
Minnesota business identification number of each retailer, and the total dollar
amount of liquor sold to each retailer in the previous calendar year. The report must be filed on or before March
31 following the close of the calendar year.
A person failing to file this report is subject to the penalty imposed
under section 289A.60. A person
required to file a report under this section is not required to provide a copy
of an exemption certificate, as defined in section 297A.72, provided to the
person by a retailer, along with the annual informational report.
EFFECTIVE
DATE. This section is
effective for reports required to be filed beginning in calendar year 2012 and
thereafter.
Sec. 11. Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by Laws 2005, First Special Session chapter 3, article 5, section 28, and Laws 2011, First Special Session chapter 7, article 4, section 5, is amended to read:
Subd. 3. Use of revenues. (a) Revenues received from the taxes authorized by subdivisions 1 and 2 must be used by the city to pay for the cost of collecting and administering the taxes and to pay for the following projects:
(1) transportation infrastructure improvements including regional highway and airport improvements;
(2) improvements to the civic center complex;
(3) a municipal water, sewer, and storm sewer project necessary to improve regional ground water quality; and
(4) construction of a regional recreation and sports center and other higher education facilities available for both community and student use.
(b) The total amount of capital expenditures or bonds for projects listed in paragraph (a) that may be paid from the revenues raised from the taxes authorized in this section may not exceed $111,500,000. The total amount of capital expenditures or bonds for the project in clause (4) that may be paid from the revenues raised from the taxes authorized in this section may not exceed $28,000,000.
(c) In addition to the projects authorized in paragraph (a) and not subject to the amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an election under subdivision 5, paragraph (c), use the revenues received from the taxes and bonds authorized in this section to pay the costs of or bonds for the following purposes:
(1) $17,000,000 for capital expenditures and bonds for the following Olmsted County transportation infrastructure improvements:
(i) County State Aid Highway 34 reconstruction;
(ii) Trunk Highway 63 and County State Aid Highway 16 interchange;
(iii) phase II of the Trunk Highway 52 and County State Aid Highway 22 interchange;
(iv) widening of County State Aid Highway 22 West Circle Drive; and
(v) 60th Avenue Northwest corridor preservation;
(2) $30,000,000 for city transportation projects including:
(i) Trunk Highway 52 and 65th Street interchange;
(ii) NW transportation corridor acquisition;
(iii) Phase I of the Trunk Highway 52 and County State Aid Highway 22 interchange;
(iv) Trunk Highway 14 and Trunk Highway 63 intersection;
(v) Southeast transportation corridor acquisition;
(vi) Rochester International Airport expansion; and
(vii) a transit operations center bus facility;
(3) $14,000,000 for the University of Minnesota Rochester academic and complementary facilities;
(4) $6,500,000 for the Rochester Community and Technical College/Winona State University career technical education and science and math facilities;
(5) $6,000,000 for the Rochester Community and Technical College regional recreation facilities at University Center Rochester;
(6) $20,000,000 for the Destination Medical Community Initiative;
(7) $8,000,000 for the regional public safety and 911 dispatch center facilities;
(8) $20,000,000 for a regional recreation/senior center;
(9) $10,000,000 for an economic development fund; and
(10) $8,000,000 for downtown infrastructure.
(d) No revenues from the taxes raised from the taxes authorized in subdivisions 1 and 2 may be used to fund transportation improvements related to a railroad bypass that would divert traffic from the city of Rochester.
(e) The city shall use $5,000,000 of the
money allocated to the purpose in paragraph (c), clause (9), for grants to the
cities of Byron, Chatfield, Dodge Center, Dover, Elgin, Eyota, Kasson,
Mantorville, Oronoco, Pine Island, Plainview, St. Charles, Stewartville,
Zumbrota, Spring Valley, West Concord, and Hayfield, and any other
city with a 2010 population of at least 1,000 that has a city boundary within
25 miles of the geographic center of Rochester and is closer to Rochester than
to any other city located wholly outside of the seven-county metropolitan area
with a population of 20,000 or more, for economic development projects that
these communities would fund through their economic development authority or
housing and redevelopment authority.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 12. Laws 2002, chapter 377, article 3, section 25, as amended by Laws 2009, chapter 88, article 4, section 19, and Laws 2010, chapter 389, article 5, section 3, is amended to read:
Sec. 25. ROCHESTER
LODGING TAX.
Subdivision 1. Authorization. Notwithstanding Minnesota Statutes, section 469.190 or 477A.016, or any other law, the city of Rochester may impose an additional tax of one percent on the gross receipts from the furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it for a continuous period of 30 days or more.
Subd. 1a. Authorization. Notwithstanding Minnesota Statutes,
section 469.190 or 477A.016, or any other law, and in addition to the tax
authorized by subdivision 1, the city of Rochester may impose an additional tax
of one three percent on the gross receipts from the furnishing
for consideration of lodging at a hotel, motel, rooming house, tourist court,
or resort, other than the renting or leasing of it for a continuous period of
30 days or more only upon the approval of the city governing body of a total
financial package for the project.
Subd. 2. Disposition of proceeds. (a) The gross proceeds from the tax imposed under subdivision 1 must be used by the city to fund a local convention or tourism bureau for the purpose of marketing and promoting the city as a tourist or convention center.
(b) The gross proceeds from the one three
percent tax imposed under subdivision 1a shall be used to pay for (1)
construction, renovation, improvement, and expansion of the Mayo Civic Center
and related skyway access, lighting, parking, or landscaping; and (2) for
payment of any principal, interest, or premium on bonds issued to finance the
construction, renovation, improvement, and expansion of the Mayo Civic Center
Complex.
Subd. 2a. Bonds. The city of Rochester may issue, without
an election, general obligation bonds of the city, in one or more series, in
the aggregate principal amount not to exceed $43,500,000, to pay for capital
and administrative costs for the design, construction, renovation, improvement,
and expansion of the Mayo Civic Center Complex, and related skyway, access,
lighting, parking, and landscaping. The
city may pledge the lodging tax authorized by subdivision 1a and the food
and beverage tax authorized under Laws 2009, chapter 88, article 4,
section 23, to the payment of the bonds. The debt represented by the bonds is not included in computing any debt limitations applicable to the city, and the levy of taxes required by Minnesota Statutes, section 475.61, to pay the principal of and interest on the bonds is not subject to any levy limitation or included in computing or applying any levy limitation applicable to the city.
Subd. 3.
Expiration of taxing authority. The authority of the city to impose a tax
under subdivision 1a shall expire when the principal and interest on any bonds
or other obligations issued prior to December 31, 2014 2016, to
finance the construction, renovation, improvement, and expansion of the Mayo
Civic Center Complex and related skyway access, lighting, parking, or
landscaping have been paid, including any bonds issued to refund such bonds, or
at an earlier time as the city shall, by ordinance, determine. Any funds remaining after completion of the
project and retirement or redemption of the bonds shall be placed in the
general fund of the city.
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Rochester and its
chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
Sec. 13. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision 2, is amended to read:
Subd. 2. Use of revenues. (a) Revenues received from the tax authorized by subdivision 1 by the city of St. Cloud must be used for the cost of collecting and administering the tax and to pay all or part of the capital or administrative costs of the development, acquisition, construction, improvement, and securing and paying debt service on bonds or other obligations issued to finance the following regional projects as approved by the voters and specifically detailed in the referendum authorizing the tax or extending the tax:
(1) St. Cloud Regional Airport;
(2) regional transportation improvements;
(3) regional community and aquatics centers and facilities;
(4) regional public libraries; and
(5) acquisition and improvement of regional park land and open space.
(b) Revenues received from the tax authorized by subdivision 1 by the cities of St. Joseph, Waite Park, Sartell, Sauk Rapids, and St. Augusta must be used for the cost of collecting and administering the tax and to pay all or part of the capital or administrative costs of the development, acquisition, construction, improvement, and securing and paying debt service on bonds or other obligations issued to fund the projects specifically approved by the voters at the referendum authorizing the tax or extending the tax. The portion of revenues from the city going to fund the regional airport or regional library located in the city of St. Cloud will be as required under the applicable joint powers agreement.
(c) The use of revenues received from the taxes authorized in subdivision 1 for projects allowed under paragraphs (a) and (b) are limited to the amount authorized for each project under the enabling referendum.
EFFECTIVE
DATE. This section is
effective for the city that approves them the day after compliance by the
governing body of each city with Minnesota Statutes, section 645.021,
subdivision 3.
Sec. 14. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision 4, is amended to read:
Subd. 4. Termination of tax. The tax imposed in the cities of St. Joseph, St. Cloud, St. Augusta, Sartell, Sauk Rapids, and Waite Park under subdivision 1 expires when the city council determines that sufficient funds have been collected from the tax to retire or redeem the bonds and obligations authorized under subdivision 2, paragraph (a),
but no later than December 31,
2018. Notwithstanding Minnesota
Statutes, section 297A.99, subdivision 3, paragraphs (a), (c), and (d), a city
may extend the tax imposed under subdivision 1 through December 31, 2038, if
approved under the referendum authorizing the tax under subdivision 1 or if
approved by voters of the city at a general election held no later than
November 6, 2017.
EFFECTIVE
DATE. This section is
effective for the city that approves them the day after compliance by the
governing body of each city with Minnesota Statutes, section 645.021,
subdivision 3.
Sec. 15. Laws 2008, chapter 366, article 7, section 19, subdivision 3, as amended by Laws 2011, First Special Session chapter 7, article 4, section 8, is amended to read:
Subd. 3. Use of
revenues. Notwithstanding Minnesota
Statutes, section 297A.99, subdivision 3, paragraph (b), the proceeds of the
tax imposed under this section shall be used to pay for the costs of improvements
to the Sportsman Park/Ballfields, Riverside Park, Lions Park/Pavilion, Cedar
South Park also known as Eldorado Park, and Spring Street Park; improvements to
and extension of the River County bike trail; acquisition, and
construction, improvement, and development of regional parks, bicycle
trails, park land, open space, and of a pedestrian walkways, as
described in the city improvement plan adopted by the city council by
resolution on December 12, 2006, and walkway over Interstate 94 and
State Highway 24; and the acquisition of land and construction of
buildings for a community and recreation center. The total amount of revenues from the taxes
in subdivisions 1 and 2 that may be used to fund these projects is $12,000,000
plus any associated bond costs.
EFFECTIVE
DATE. This section is
effective the day after compliance by the governing body of the city of
Clearwater with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 16. LIQUOR
REPORTING REQUIREMENTS.
A person who was required to submit an
annual informational report under Minnesota Statutes, section 297A.8155, to the
commissioner of revenue during calendar year 2010 or 2011 is not required to
provide a copy of an exemption certificate or a retailer's tax identification
number along with the informational report.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to reports required to
be filed in calendar year 2010 or 2011.
Sec. 17. REPEALER.
(a) Minnesota Statutes 2011 Supplement,
section 289A.60, subdivision 31, is repealed.
(b) Laws 2009, chapter 88, article 4,
section 23, as amended by Laws 2010, chapter 389, article 5, section 4, is
repealed.
EFFECTIVE
DATE. Paragraph (a) is
effective for taxes due and payable after June 30, 2012. Paragraph (b) is effective the day following
final enactment.
ARTICLE 10
LOCAL DEVELOPMENT
Section 1. Minnesota Statutes 2010, section 469.174, subdivision 2, is amended to read:
Subd. 2. Authority. "Authority" means a rural development financing authority created pursuant to sections 469.142 to 469.151; a housing and redevelopment authority created pursuant to sections 469.001 to 469.047; a port authority created pursuant to sections 469.048 to 469.068; an economic development authority created pursuant to
sections 469.090 to 469.108; a redevelopment agency as defined in sections 469.152 to 469.165; a municipality that is administering a development district created pursuant to sections 469.124 to 469.134 or any special law; a municipality that undertakes a project pursuant to sections 469.152 to 469.165, except a town located outside the metropolitan area or with a population of 5,000 persons or less; a municipality that undertakes a project located in an area designated under subdivision 30; or a municipality that exercises the powers of a port authority pursuant to any general or special law.
EFFECTIVE DATE. This section is effective the day
following final enactment.
Sec. 2. Minnesota Statutes 2010, section 469.174, subdivision 10, is amended to read:
Subd. 10. Redevelopment district. (a) "Redevelopment district" means a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that one or more of the following conditions, reasonably distributed throughout the district, exists:
(1) parcels consisting of 70 percent of the area of the
district are occupied by buildings, streets, utilities, paved or gravel parking
lots, or other similar structures and more than 50 percent or more
of the buildings, not including outbuildings, are structurally substandard to a
degree requiring substantial renovation or clearance;
(2) the property consists of vacant, unused, underused, inappropriately used, or infrequently used rail yards, rail storage facilities, or excessive or vacated railroad rights-of-way;
(3) tank facilities, or property whose immediately previous use was for tank facilities, as defined in section 115C.02, subdivision 15, if the tank facilities:
(i) have or had a capacity of more than 1,000,000 gallons;
(ii) are located adjacent to rail facilities; and
(iii) have been removed or are unused, underused, inappropriately used, or infrequently used; or
(4) a qualifying disaster area, as defined in subdivision 10b.
(b) For purposes of this subdivision, "structurally substandard" shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance.
(c) A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building. An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard. Items of evidence that support such a conclusion include recent fire or police inspections, on-site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence. Written documentation of the findings and reasons why an interior
inspection was not conducted must be made and retained under section 469.175, subdivision 3, clause (1). Failure of a building to be disqualified under the provisions of this paragraph is a necessary, but not a sufficient, condition to determining that the building is substandard.
(d) A parcel is deemed to be occupied by a structurally substandard building for purposes of the finding under paragraph (a) or by the improvements described in paragraph (e) if all of the following conditions are met:
(1) the parcel was occupied by a substandard building or met the requirements of paragraph (e), as the case may be, within three years of the filing of the request for certification of the parcel as part of the district with the county auditor;
(2) the substandard building or the improvements described in paragraph (e) were demolished or removed by the authority or the demolition or removal was financed by the authority or was done by a developer under a development agreement with the authority;
(3) the authority found by resolution before the demolition or removal that the parcel was occupied by a structurally substandard building or met the requirements of paragraph (e) and that after demolition and clearance the authority intended to include the parcel within a district; and
(4) upon filing the request for certification of the tax capacity of the parcel as part of a district, the authority notifies the county auditor that the original tax capacity of the parcel must be adjusted as provided by section 469.177, subdivision 1, paragraph (f).
(e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or other similar structures.
(f) For districts consisting of two or more noncontiguous areas, each area must qualify as a redevelopment district under paragraph (a) to be included in the district, and the entire area of the district must satisfy paragraph (a).
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2010, section 469.174, is amended by adding a subdivision to read:
Subd. 19a. Soil
deficiency district. "Soil
deficiency district" means a type of tax increment financing district
consisting of a project, or portions of a project, within which the authority
finds by resolution that the following conditions exist:
(1) parcels consisting of 70 percent of
the area of the district contain unusual terrain or soil deficiencies which
require substantial filling, grading, or other physical preparation for use and
a parcel is eligible for inclusion if at least 50 percent of the area of the
parcel requires substantial filling, grading, or other physical preparation for
use; and
(2) the estimated cost of the physical
preparation under clause (1), but excluding costs directly related to roads as
defined in section 160.01, and local improvements as described in sections
429.021, subdivision 1, clauses (1) to (7), (11), and (12), and 430.01, exceeds
the fair market value of the land before completion of the preparation.
EFFECTIVE
DATE. This section is
effective for districts for which the request for certification is made after
April 30, 2012.
Sec. 4. Minnesota Statutes 2010, section 469.174, is amended by adding a subdivision to read:
Subd. 30. Mining
reclamation project area. (a)
An authority may designate an area within its jurisdiction as a mining
reclamation project area by finding by resolution, that parcels consisting of
at least 70 percent of the acreage, excluding street and railroad
rights-of-way, are characterized by one or more of the following conditions:
(1) peat or other soils with
geotechnical deficiencies that impair development of buildings or infrastructure;
(2) soils or terrain that requires
substantial filling in order to permit the development of buildings or
infrastructure;
(3) landfills, dumps, or similar
deposits of municipal or private waste;
(4) quarries or similar resource
extraction sites;
(5) floodway; and
(6) substandard buildings, within the
meaning of section 469.174, subdivision 10.
(b) For the purposes of paragraph (a),
clauses (1) to (5), a parcel is characterized by the relevant condition if at
least 50 percent of the area of the parcel contains the relevant condition. For the purposes of paragraph (a), clause
(6), a parcel is characterized by substandard buildings if substandard
buildings occupy at least 30 percent of the area of the parcel.
EFFECTIVE
DATE. This section is
effective for districts for which the request for certification is made after
April 30, 2012.
Sec. 5. Minnesota Statutes 2010, section 469.175, subdivision 3, is amended to read:
Subd. 3. Municipality approval. (a) A county auditor shall not certify the original net tax capacity of a tax increment financing district until the tax increment financing plan proposed for that district has been approved by the municipality in which the district is located. If an authority that proposes to establish a tax increment financing district and the municipality are not the same, the authority shall apply to the municipality in which the district is proposed to be located and shall obtain the approval of its tax increment financing plan by the municipality before the authority may use tax increment financing. The municipality shall approve the tax increment financing plan only after a public hearing thereon after published notice in a newspaper of general circulation in the municipality at least once not less than ten days nor more than 30 days prior to the date of the hearing. The published notice must include a map of the area of the district from which increments may be collected and, if the project area includes additional area, a map of the project area in which the increments may be expended. The hearing may be held before or after the approval or creation of the project or it may be held in conjunction with a hearing to approve the project.
(b) Before or at the time of approval of the tax increment financing plan, the municipality shall make the following findings, and shall set forth in writing the reasons and supporting facts for each determination:
(1) that the proposed tax increment financing district is a redevelopment district, a renewal or renovation district, a housing district, a soils condition district, soil deficiency district, or an economic development district; if the proposed district is a redevelopment district or a renewal or renovation district, the reasons and supporting facts for the determination that the district meets the criteria of section 469.174, subdivision 10, paragraph (a), clauses (1) and (2), or subdivision 10a, must be documented in writing and retained and made available to the public by the authority until the district has been terminated;
(2) that, in the opinion of the municipality:
(i) the proposed development or redevelopment would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future; and
(ii) the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the plan. The requirements of this item do not apply if the district is a housing district;
(3) that the tax increment financing plan conforms to the general plan for the development or redevelopment of the municipality as a whole;
(4) that the tax increment financing plan will afford maximum opportunity, consistent with the sound needs of the municipality as a whole, for the development or redevelopment of the project by private enterprise;
(5) that the municipality elects the method
of tax increment computation set forth in section 469.177, subdivision 3,
paragraph (b) , if applicable; and
(6) that for a redevelopment district, renewal and renovation district, soils condition district, or soil deficiency district established by the authority in a mining reclamation project area, the reasons and supporting facts for the determination that the mining reclamation project area meets the requirements under section 469.174, subdivision 30, must be documented in writing and retained and made available to the public by the authority until two years after the district is decertified. These findings must have been made and documented no more than ten years before approval of the tax increment financing plan for the district.
(c) When the municipality and the authority are not the same, the municipality shall approve or disapprove the tax increment financing plan within 60 days of submission by the authority. When the municipality and the authority are not the same, the municipality may not amend or modify a tax increment financing plan except as proposed by the authority pursuant to subdivision 4. Once approved, the determination of the authority to undertake the project through the use of tax increment financing and the resolution of the governing body shall be conclusive of the findings therein and of the public need for the financing.
(d) For a district that is subject to the requirements of paragraph (b), clause (2), item (ii), the municipality's statement of reasons and supporting facts must include all of the following:
(1) an estimate of the amount by which the market value of the site will increase without the use of tax increment financing;
(2) an estimate of the increase in the market value that will result from the development or redevelopment to be assisted with tax increment financing; and
(3) the present value of the projected tax increments for the maximum duration of the district permitted by the tax increment financing plan.
(e) For purposes of this subdivision, "site" means the parcels on which the development or redevelopment to be assisted with tax increment financing will be located.
EFFECTIVE
DATE. This section is
effective for districts for which the request for certification is made after
April 30, 2012.
Sec. 6. Minnesota Statutes 2010, section 469.176, subdivision 1b, is amended to read:
Subd. 1b. Duration limits; terms. (a) No tax increment shall in any event be paid to the authority:
(1) after 15 years after receipt by the authority of the first increment for a renewal and renovation district;
(2) after 20 years after receipt by the authority of the first increment for a soils condition district or a soil deficiency district;
(3) after eight years after receipt by the authority of the first increment for an economic development district;
(4) for a housing district, a compact development district, or a redevelopment district, after 25 years from the date of receipt by the authority of the first increment.
(b) For purposes of determining a duration limit under this subdivision or subdivision 1e that is based on the receipt of an increment, any increments from taxes payable in the year in which the district terminates shall be paid to the authority. This paragraph does not affect a duration limit calculated from the date of approval of the tax increment financing plan or based on the recovery of costs or to a duration limit under subdivision 1c. This paragraph does not supersede the restrictions on payment of delinquent taxes in subdivision 1f.
(c) An action by the authority to waive or decline to accept an increment has no effect for purposes of computing a duration limit based on the receipt of increment under this subdivision or any other provision of law. The authority is deemed to have received an increment for any year in which it waived or declined to accept an increment, regardless of whether the increment was paid to the authority.
(d) Receipt by a hazardous substance subdistrict of an increment as a result of a reduction in original net tax capacity under section 469.174, subdivision 7, paragraph (b), does not constitute receipt of increment by the overlying district for the purpose of calculating the duration limit under this section.
EFFECTIVE
DATE. This section is
effective for districts for which the request for certification is made after
April 30, 2012.
Sec. 7. Minnesota Statutes 2010, section 469.176, subdivision 4b, is amended to read:
Subd. 4b. Soils
condition districts. Revenue derived
from Tax increment from a soils condition district may be used only to (1)
acquire parcels on which the improvements described in clause (2) will occur;
(2) pay for the cost of removal or remedial action; and (3) pay for the administrative
expenses of the authority allocable to the district, including the cost of
preparation of the development action response plan. For a soils condition district located in
a mining reclamation project area, tax increments may also be expended on the
additional cost of public improvements directly caused by the removal or
remedial action and located within the mining reclamation project area.
EFFECTIVE
DATE. This section is
effective for districts for which the request for certification is made after
April 30, 2012.
Sec. 8. Minnesota Statutes 2011 Supplement, section 469.176, subdivision 4c, is amended to read:
Subd. 4c. Economic development districts. (a) Revenue derived from tax increment from an economic development district may not be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and facilities (determined on the basis of square footage) are used for a purpose other than:
(1) the manufacturing or production of tangible personal property, including processing resulting in the change in condition of the property;
(2) warehousing, storage, and distribution of tangible personal property, excluding retail sales;
(3) research and development related to the activities listed in clause (1) or (2);
(4) telemarketing if that activity is the exclusive use of the property;
(5) tourism facilities;
(6) qualified border retail facilities; or
(7) space necessary for and related to the activities listed in clauses (1) to (6).
(b) Notwithstanding the provisions of this subdivision, revenues derived from tax increment from an economic development district may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000 square feet of any separately owned commercial facility located within the municipal jurisdiction of a small city, if the revenues derived from increments are spent only to assist the facility directly or for administrative expenses, the assistance is necessary to develop the facility, and all of the increments, except those for administrative expenses, are spent only for activities within the district.
(c) A city is a small city for purposes of this subdivision if the city was a small city in the year in which the request for certification was made and applies for the rest of the duration of the district, regardless of whether the city qualifies or ceases to qualify as a small city.
(d) Notwithstanding the requirements of paragraph (a) and the finding requirements of section 469.174, subdivision 12, tax increments from an economic development district may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities, if all the following conditions are met:
(1) the municipality finds that the project
will create or retain jobs in this state, including construction jobs, and that
construction of the project would not have commenced before July 1, 2012
January 1, 2014, without the authority providing assistance under the
provisions of this paragraph;
(2) construction of the project begins no
later than July 1, 2012 January 1, 2014;
(3) the request for certification of the
district is made no later than June 30, 2012 December 31, 2013;
and
(4) for development of housing under this paragraph, the construction must begin before January 1, 2012.
The provisions of this paragraph may not be used to assist housing that is developed to qualify under section 469.1761, subdivision 2 or 3, or similar requirements of other law, if construction of the project begins later than July 1, 2011.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 9. Minnesota Statutes 2011 Supplement, section 469.176, subdivision 4m, is amended to read:
Subd. 4m. Temporary authority to stimulate construction. (a) Notwithstanding the restrictions in any other subdivision of this section or any other law to the contrary, except the requirement to pay bonds to which the increments are pledged and the provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or more of the following purposes:
(1)
to provide improvements, loans, interest rate subsidies, or assistance in any
form to private development consisting of the construction or substantial
rehabilitation of buildings and ancillary facilities, if doing so will create
or retain jobs in this state, including construction jobs, and that the
construction commences before July 1, 2012 January 1, 2014, and
would not have commenced before that date without the assistance; or
(2) to make an equity or similar investment in a corporation, partnership, or limited liability company that the authority determines is necessary to make construction of a development that meets the requirements of clause (1) financially feasible.
(b) The authority may undertake actions
under the authority of this subdivision only after approval by the municipality
of a written spending plan that specifically authorizes the authority to
take the actions. The spending
plan must contain a detailed description of each action to be undertaken. The municipality shall approve the spending
plan only after a public hearing after published notice in a newspaper of
general circulation in the municipality at least once, not less than ten days
nor more than 30 days prior to the date of the hearing.
(c) The authority to spend tax increments
under this subdivision expires December 31, 2012 June 30, 2014.
(d) For a development consisting of housing, the authority to spend tax increments under this subdivision expires December 31, 2011, and construction must commence before July 1, 2011, except the authority to spend tax increments on market rate housing developments under this subdivision expires July 31, 2012, and construction must commence before January 1, 2012.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to all tax increment
financing districts, regardless of when the request for certification was made. The amendments to paragraph (b) apply to
projects approved after June 30, 2012.
Sec. 10. Minnesota Statutes 2010, section 469.176, is amended by adding a subdivision to read:
Subd. 4n. Soil
deficiency district. Tax
increments from a soil deficiency district may only be used to pay for the
following costs for activities located within the mining reclamation project area:
(1) acquisition of parcels on which the
improvements described in clause (2) will occur;
(2) the cost of correcting the unusual
terrain or soil deficiencies and the additional cost of installing public
improvements directly caused by the deficiencies;
(3) administrative expenses of the
authority allocable to the district; and
(4) costs described in subdivision 4j
for the district, if these payments do not exceed 25 percent of the tax
increment from the district.
EFFECTIVE
DATE. This section is effective
for districts for which the request for certification is made after April 30,
2012.
Sec. 11. Minnesota Statutes 2011 Supplement, section 469.1763, subdivision 2, is amended to read:
Subd. 2. Expenditures outside district. (a) For each tax increment financing district, an amount equal to at least 75 percent of the total revenue derived from tax increments paid by properties in the district must be expended on activities in the district or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities in the district or to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other than redevelopment districts for which the request for certification was made after June 30, 1995, the in-district
percentage for purposes of the preceding sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax increments paid by properties in the district may be expended, through a development fund or otherwise, on activities outside of the district but within the defined geographic area of the project except to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other than redevelopment districts for which the request for certification was made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is 20 percent. The revenue derived from tax increments for the district that are expended on costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before calculating the percentages that must be expended within and without the district.
(b) In the case of a housing district, a housing project, as defined in section 469.174, subdivision 11, is an activity in the district.
(c) All administrative expenses are for activities outside of the district, except that if the only expenses for activities outside of the district under this subdivision are for the purposes described in paragraph (d), administrative expenses will be considered as expenditures for activities in the district.
(d) The authority may elect, in the tax increment financing plan for the district, to increase by up to ten percentage points the permitted amount of expenditures for activities located outside the geographic area of the district under paragraph (a). As permitted by section 469.176, subdivision 4k, the expenditures, including the permitted expenditures under paragraph (a), need not be made within the geographic area of the project. Expenditures that meet the requirements of this paragraph are legally permitted expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, 4d, and 4j. To qualify for the increase under this paragraph, the expenditures must:
(1) be used exclusively to assist housing that
(i) meets the requirement for a
qualified low-income building, as that term is used in section 42 of the
Internal Revenue Code; and
(2) (ii) does not exceed the
qualified basis of the housing, as defined under section 42(c) of the Internal
Revenue Code, less the amount of any credit allowed under section 42 of the
Internal Revenue Code; and
(3) be (iii) is used to:
(i) (A) acquire and prepare the
site of the housing;
(ii) (B) acquire, construct, or
rehabilitate the housing; or
(iii) (C) make public improvements
directly related to the housing; or
(4) (2) be used to develop
housing:
(i) if the market value of the housing prior to demolition or rehabilitation does not exceed the lesser of:
(A) 150 percent of the average market value of single-family homes in that municipality; or
(B) $200,000 for municipalities located in the metropolitan area, as defined in section 473.121, or $125,000 for all other municipalities; and
(ii) if the expenditures are used to pay
the cost of site acquisition, relocation, demolition of existing structures,
site preparation, rehabilitation, and pollution abatement on one or more
parcels, if provided that the parcel contains a residence
containing is occupied by one to four family dwelling units that
has been vacant for six or more months
and is in foreclosure as defined in section 325N.10, subdivision 7, but without regard to whether the residence is the owner's principal residence, and only after the redemption period stated in the notice provided under section 580.06 has expired with respect to which a mortgage was foreclosed under chapter 580, 581, or 582; any applicable redemption period has expired without redemption; and the authority or developer enters into a purchase agreement to acquire the parcel no earlier than 30 days after expiration of the redemption period.
(e) For a district created within a biotechnology and health sciences industry zone as defined in section 469.330, subdivision 6, or for an existing district located within such a zone, tax increment derived from such a district may be expended outside of the district but within the zone only for expenditures required for the construction of public infrastructure necessary to support the activities of the zone, land acquisition, and other redevelopment costs as defined in section 469.176, subdivision 4j. These expenditures are considered as expenditures for activities within the district.
(f) The authority under paragraph (d),
clause (4) (2) , expires on December 31, 2016. Increments may continue to be expended under
this authority after that date, if they are used to pay bonds or binding
contracts that would qualify under subdivision 3, paragraph (a), if December
31, 2016, is considered to be the last date of the five-year period after
certification under that provision.
(g) The authority may elect, in the tax
increment financing plan, for a district located in a mining reclamation area
that "activities within the district" under paragraph (a) includes
activities within the geographic area of the mining reclamation area.
EFFECTIVE
DATE. This section is
effective for any district that is subject to the provisions of Minnesota
Statutes, section 469.1763, regardless of when the request for certification
was made, except the amendment adding paragraph (g) is effective for districts
for which the request for certification was made after April 30, 2012.
Sec. 12. Minnesota Statutes 2010, section 469.1763, subdivision 3, is amended to read:
Subd. 3. Five-year rule. (a) Revenues derived from tax increments are considered to have been expended on an activity within the district under subdivision 2 only if one of the following occurs:
(1) before or within five years after certification of the district, the revenues are actually paid to a third party with respect to the activity;
(2) bonds, the proceeds of which must be used to finance the activity, are issued and sold to a third party before or within five years after certification, the revenues are spent to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, reasonably expected to be spent before the end of the later of (i) the five-year period, or (ii) a reasonable temporary period within the meaning of the use of that term under section 148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve or replacement fund;
(3) binding contracts with a third party are entered into for performance of the activity before or within five years after certification of the district and the revenues are spent under the contractual obligation;
(4) costs with respect to the activity are paid before or within five years after certification of the district and the revenues are spent to reimburse a party for payment of the costs, including interest on unreimbursed costs; or
(5) expenditures are made for housing purposes as permitted by subdivision 2, paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted by subdivision 2, paragraph (e).
(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the original refunded bonds meet the requirements of paragraph (a), clause (2).
(c) For a redevelopment district or a renewal and renovation district certified after June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are extended to ten years after certification of the district. This extension is provided primarily to accommodate delays in development activities due to unanticipated economic circumstances.
(d) If the authority so elects in the
tax increment financing plan for a redevelopment district, renewal and
renovation district, soils condition district, or soil deficiency district
located in a mining reclamation project area, the five-year periods described
in paragraph (a) do not apply.
EFFECTIVE
DATE. This section is
effective for districts for which the request for certification is made after
April 30, 2012.
Sec. 13. Minnesota Statutes 2010, section 469.1763, subdivision 4, is amended to read:
Subd. 4. Use of revenues for decertification. (a) In each year beginning with the sixth year following certification of the district, if the applicable in-district percent of the revenues derived from tax increments paid by properties in the district exceeds the amount of expenditures that have been made for costs permitted under subdivision 3, an amount equal to the difference between the in-district percent of the revenues derived from tax increments paid by properties in the district and the amount of expenditures that have been made for costs permitted under subdivision 3 must be used and only used to pay or defease the following or be set aside to pay the following:
(1) outstanding bonds, as defined in subdivision 3, paragraphs (a), clause (2), and (b);
(2) contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4);
(3) credit enhanced bonds to which the revenues derived from tax increments are pledged, but only to the extent that revenues of the district for which the credit enhanced bonds were issued are insufficient to pay the bonds and to the extent that the increments from the applicable pooling percent share for the district are insufficient; or
(4) the amount provided by the tax increment financing plan to be paid under subdivision 2, paragraphs (b), (d), and (e).
(b) The district must be decertified and the pledge of tax increment discharged when the outstanding bonds have been defeased and when sufficient money has been set aside to pay, based on the increment to be collected through the end of the calendar year, the following amounts:
(1) contractual obligations as defined in subdivision 3, paragraph (a), clauses (3) and (4);
(2) the amount specified in the tax increment financing plan for activities qualifying under subdivision 2, paragraph (b), that have not been funded with the proceeds of bonds qualifying under paragraph (a), clause (1); and
(3) the additional expenditures permitted by the tax increment financing plan for housing activities under an election under subdivision 2, paragraph (d), that have not been funded with the proceeds of bonds qualifying under paragraph (a), clause (1).
(c) If the authority so elects in the
tax increment financing plan for a redevelopment district, renewal and
renovation district, soils condition district, or soil deficiency district
located in a mining reclamation project area, the provisions of this section do
not apply.
EFFECTIVE
DATE. This section is
effective for districts for which the request for certification is made after
April 30, 2012.
Sec. 14. Laws 2008, chapter 366, article 5, section
34, as amended by Laws 2009, chapter 88, article 5, section 11,
Sec. 34. CITY
OF OAKDALE; ORIGINAL TAX CAPACITY.
Subdivision 1. Original tax capacity election. (a) The provisions of this section apply to redevelopment tax increment financing districts created by the Housing and Redevelopment Authority in and for the city of Oakdale in the areas comprised of the parcels with the following parcel identification numbers: (1) 3102921320053; 3102921320054; 3102921320055; 3102921320056; 3102921320057; 3102921320058; 3102921320062; 3102921320063; 3102921320059; 3102921320060; 3102921320061; 3102921330005; and 3102921330004; and (2) 2902921330001 and 2902921330005.
(b) For a district subject to this section, the Housing and Redevelopment Authority may, when requesting certification of the original tax capacity of the district under Minnesota Statutes, section 469.177, elect to have the original tax capacity of the district be certified as the tax capacity of the land.
(c) The authority to request certification
of a district under this section expires on July 1, 2013 December 31, 2017.
Subd. 2. Parcels
deemed occupied. (a) Parcel
numbers 3102921320054, 3102921320055, 3102921320056, 3102921320057,
3102921320061, and 3102921330004 are deemed to meet the requirements of
Minnesota Statutes, section 469.174, subdivision 10, paragraph (d),
notwithstanding any contrary provisions of that paragraph, if the following
conditions are met:
(1) a building located on any part of
each of the specified parcels was demolished after the authority adopted a
resolution under Minnesota Statutes, section 469.174, subdivision 10, paragraph
(d), clause (3);
(2) the building was removed either by
the authority, by a developer under a development agreement with the authority,
or by the owner of the property without entering into a development agreement
with the authority; and
(3) the request for certification of
the parcel as part of a district is filed with the county auditor by December 31, 2017.
(b) The provisions of subdivision 1
apply to allow an election by the authority for the parcels deemed occupied
under paragraph (a), notwithstanding the provisions of Minnesota Statutes,
sections 469.174, subdivision 10, paragraph (d), and 469.177, subdivision 1,
paragraph (f).
EFFECTIVE
DATE. This section is
effective upon compliance by the governing body of the city of Oakdale with the
requirements of Minnesota Statutes, section 645.021, subdivision 3.
Sec. 15. CITY
OF BLOOMINGTON; TAX INCREMENT FINANCING.
Notwithstanding Minnesota Statutes,
section 469.176, or Laws 1996, chapter 464, article 1, section 8, or any other
law to the contrary, the city of Bloomington and its port authority may extend
the duration limits of tax increment financing district No. 1-G,
containing the former Met Center property, including Lindau Lane and that
portion of tax increment financing district No. 1-C north of the existing
building line on Lot 1, Block 1, Mall of America 7th Addition, exclusive of
Lots 2 and 3, through December 31, 2038.
EFFECTIVE
DATE. This section is
effective upon compliance of the governing bodies of the city of Bloomington,
Hennepin County, and Independent School District No. 271, Bloomington,
with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2,
and 645.021, subdivision 3.
Sec. 16. CITY
OF BLOOMINGTON; TAX INCREMENT FINANCING EXTENSION.
Notwithstanding the provisions of
Minnesota Statutes, section 469.176, or any other law to the contrary, the city
of Bloomington and its port authority may extend the duration limits of Tax
Increment Financing District No. 1-I, containing the Bloomington Central
Station property for a period through December 31, 2038.
EFFECTIVE
DATE. This section is
effective upon compliance of the governing body of the city of Bloomington with
the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and
645.021, subdivision 3.
Sec. 17. DAKOTA
COUNTY COMMUNITY DEVELOPMENT AGENCY; TAX INCREMENT FINANCING DISTRICT.
Subdivision 1. Authorization. Notwithstanding the provisions of any
other law, the Dakota County Community Development Agency may establish a
redevelopment tax increment financing district comprised of the properties that
(1) were included in the CDA 10 Robert and South Street district in the city of
West St. Paul, and (2) were not decertified before July 1, 2012. The district created under this section terminates
no later than December 31, 2027.
Subd. 2. Special
rules. The requirements for
qualifying a redevelopment district under Minnesota Statutes, section 469.174,
subdivision 10, do not apply to parcels located within the district. Minnesota Statutes, section 469.176,
subdivisions 4g, paragraph (c), clause (1), item (ii), 4j, and 4l, do not apply
to the district. The original tax
capacity of the district is $93,239.
Subd. 3. Authorized
expenditures. Tax increment
from the district may be expended to pay for any eligible activities authorized
by Minnesota Statutes, chapter 469, within the redevelopment area that includes
the district. All such expenditures are
deemed to be activities within the district under Minnesota Statutes, section
469.1763, subdivisions 2, 3, and 4.
Subd. 4. Adjusted
net tax capacity. The
captured tax capacity of the district must be included in the adjusted net tax
capacity of the city, county, and school district for the purposes of
determining local government aid, education aid, and county program aid. The county auditor shall report to the
commissioner of revenue the amount of the captured tax capacity for the
district at the time the assessment abstracts are filed.
EFFECTIVE
DATE. This section is
effective upon compliance by the governing body of the Dakota County Community
Development Agency with the requirements of Minnesota Statutes, section
645.021, subdivision 3.
Sec. 18. CITY
OF BROOKLYN PARK; TAX INCREMENT FINANCING; SPECIAL RULES.
The requirement of Minnesota Statutes,
section 469.1763, subdivision 3, that activities must be undertaken within a
five-year period from the date of certification of a tax increment financing
district, is considered to be met for Tax Increment Financing District No. 23
in the city of Brooklyn Park if the activities were undertaken by July 1, 2014.
EFFECTIVE
DATE. This section is
effective upon compliance by the governing body of the city of Brooklyn Park
with the requirements of Minnesota Statutes, section 645.021, subdivision 3.
Sec. 19. ST. CLOUD;
TAX INCREMENT FINANCING.
The request for certification of Tax
Increment District No. 2, commonly referred to as the Norwest District, in
the city of St. Cloud is deemed to have been made on or after August 1,
1979, and before July 1, 1982. Revenues
derived from tax increment for that district must be treated for purposes of
any law as revenue of a tax increment financing district for which the request
for certification was made during that time period.
EFFECTIVE
DATE. This section is
effective upon approval by the governing body of the city of St. Cloud and
compliance with Minnesota Statutes, section 645.021, subdivision 3.
ARTICLE 11
ESTATE TAXES
Section 1. Minnesota Statutes 2010, section 289A.10, is amended by adding a subdivision to read:
Subd. 1a. Recapture tax return required. If a disposition or cessation as pro