STATE OF
MINNESOTA
EIGHTY-EIGHTH
SESSION - 2014
_____________________
EIGHTY-THIRD
DAY
Saint Paul, Minnesota, Friday, April 4, 2014
The House of Representatives convened at 2:00
p.m. and was called to order by Paul Thissen, Speaker of the House.
Prayer was offered by Deacon Nathan E.
Allen, Archdiocese of St. Paul and Minneapolis.
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
Albright
Allen
Anderson, M.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Barrett
Beard
Benson, J.
Bernardy
Bly
Brynaert
Carlson
Clark
Cornish
Daudt
Davids
Davnie
Dean, M.
Dettmer
Dill
Dorholt
Drazkowski
Erhardt
Erickson, R.
Erickson, S.
Fabian
Falk
Faust
Fischer
FitzSimmons
Franson
Freiberg
Fritz
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Halverson
Hamilton
Hansen
Hausman
Hertaus
Hilstrom
Holberg
Hoppe
Hornstein
Hortman
Howe
Huntley
Isaacson
Johnson, B.
Johnson, C.
Johnson, S.
Kahn
Kelly
Kieffer
Kiel
Kresha
Laine
Leidiger
Lenczewski
Liebling
Lien
Lillie
Loeffler
Lohmer
Loon
Mahoney
Mariani
Marquart
Masin
McNamar
McNamara
Melin
Metsa
Moran
Morgan
Mullery
Murphy, E.
Murphy, M.
Myhra
Nelson
Newberger
Newton
Nornes
Norton
O'Driscoll
O'Neill
Paymar
Pelowski
Peppin
Persell
Petersburg
Poppe
Pugh
Quam
Radinovich
Rosenthal
Runbeck
Sanders
Savick
Sawatzky
Schomacker
Selcer
Simonson
Slocum
Sundin
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Wagenius
Ward, J.A.
Ward, J.E.
Wills
Winkler
Woodard
Yarusso
Zellers
Spk. Thissen
A quorum was present.
Benson, M.; Dehn, R.; Lesch; McDonald;
Scott; Simon and Zerwas were excused.
Schoen was excused until 3:05 p.m. Mack was excused until 5:10 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.
REPORTS OF CHIEF CLERK
S. F. No. 1747 and
H. F. No. 2719, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical with certain exceptions.
SUSPENSION
OF RULES
Anzelc moved that the rules be so far
suspended that S. F. No. 1747 be substituted for
H. F. No. 2719 and that the House File be indefinitely
postponed. The motion prevailed.
S. F. No. 2108 and
H. F. No. 2413, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical.
Schoen moved that
S. F. No. 2108 be substituted for H. F. No. 2413
and that the House File be indefinitely postponed. The motion prevailed.
S. F. No. 2162 and
H. F. No. 2613, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical.
Nelson moved that
S. F. No. 2162 be substituted for H. F. No. 2613
and that the House File be indefinitely postponed. The motion prevailed.
S. F. No. 2221 and
H. F. No. 2571, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical.
Hansen moved that
S. F. No. 2221 be substituted for H. F. No. 2571
and that the House File be indefinitely postponed. The motion prevailed.
S. F. No. 2571 and
H. F. No. 2928, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical.
Slocum moved that
S. F. No. 2571 be substituted for H. F. No. 2928
and that the House File be indefinitely postponed. The motion prevailed.
PETITIONS AND COMMUNICATIONS
The following communications were
received:
STATE
OF MINNESOTA
OFFICE OF
THE GOVERNOR
SAINT PAUL
55155
April 3,
2014
The
Honorable Paul Thissen
Speaker
of the House of Representatives
The
State of Minnesota
Dear Speaker Thissen:
Please be advised that I have received,
approved, signed, and deposited in the Office of the Secretary of State
H. F. No. 2385.
Sincerely,
Mark
Dayton
Governor
STATE OF
MINNESOTA
OFFICE OF
THE SECRETARY OF STATE
ST. PAUL
55155
The Honorable Paul Thissen
Speaker of the House of
Representatives
The Honorable Sandra L. Pappas
President of the Senate
I have the honor to inform you that the
following enrolled Acts of the 2014 Session of the State Legislature have been
received from the Office of the Governor and are 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 2014 |
Date Filed 2014 |
2385 153 1:33 p.m. April 3 April 3
2100 154 1:35 p.m.
April 3 April
3
1892 155 1:36 p.m.
April 3 April
3
Sincerely,
Mark
Ritchie
Secretary
of State
REPORTS
OF STANDING COMMITTEES AND DIVISIONS
Carlson from the Committee on Ways and Means to which was referred:
H. F. No. 1863, A bill for an act relating to state government; modifying laws governing certain executive branch advisory groups; amending Minnesota Statutes 2012, sections 3.922, subdivision 8; 15B.11, subdivision 2; 16B.055, subdivision 1; 28A.21, subdivision 6; 43A.316, subdivisions 2, 3, 6; 62J.495, subdivision 2; 79A.02, subdivision 1; 85.0146, subdivision 1; 89A.03, subdivision 5; 89A.08, subdivision 1; 92.35; 93.0015, subdivision 3; 97A.055, subdivision 4b; 103F.518, subdivision 1; 115.55, subdivision 12; 115.741, by adding a subdivision; 116U.25; 120B.365, subdivision 2; 134.31, subdivision 6; 144.1255, subdivision 1; 144.1481, subdivision 1; 144.608, subdivision 2; 144G.06; 145A.10, subdivision 10; 148.7805, subdivision 2; 153A.20, subdivision 2; 162.07, subdivision 5; 162.13, subdivision 3; 174.52, subdivision 3; 175.007, subdivision 1; 182.656, subdivision 3; 206.805; 214.13, subdivision 4; 216B.813, subdivision 2; 216B.815; 216C.02, subdivision 1; 240.18, subdivision 4; 241.021, subdivision 4c; 243.1606, subdivision 4; 252.30; 256B.0625, subdivisions 13c, 13i; 256B.27, subdivision 3; 256C.28, subdivision 1; 270C.12, subdivision 5; 298.2213, subdivision 5; 298.2214, subdivision 1; 298.297; 299A.62, subdivision 2; 299A.63, subdivision 2; 299E.04, subdivision 5; 326B.07, subdivision 1; 611A.32, subdivision 2; 611A.33; 611A.345; 611A.35; 629.342, subdivision 2; Minnesota Statutes 2013 Supplement, sections 103I.105; 125A.28; 136A.031, subdivision 3; 144.98, subdivision 10; 254A.035, subdivision 2; 254A.04; 256B.064, subdivision 1a; 256B.093, subdivision 1; 260.835, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 162; repealing Minnesota Statutes 2012, sections 6.81; 15.059, subdivision 5; 15B.32, subdivision 7; 16E.0475; 43A.316, subdivision 4; 43A.317, subdivision 4; 62U.09; 82B.021, subdivision 10; 82B.05, subdivisions 1, 3, 5, 6, 7; 82B.06; 84.964; 103F.518, subdivision 11; 116C.711; 116C.712; 116L.361, subdivision 2; 116L.363; 127A.70, subdivision 3; 136A.031, subdivision 5; 144.011, subdivision 2; 145.98, subdivisions 1, 3; 147E.35, subdivision 4; 162.02, subdivisions 2, 3; 162.09, subdivisions 2, 3; 196.30; 197.585, subdivision 4; 243.93; 245.97, subdivision 7; 252.31; 270C.991, subdivision 4; 298.2213, subdivision 5; 299C.156; 299M.02; 402A.15; 611A.34; Minnesota Statutes 2013 Supplement, sections 15.059, subdivision 5b; 197.585, subdivision 2.
Reported the same back with the recommendation that the bill be placed on the General Register.
The
report was adopted.
Carlson from the Committee on Ways and Means to which was referred:
H. F. No. 2112, A bill for an act relating to housing; creating the Housing Opportunities Made Equitable (HOME) pilot project; requiring reports; modifying prior appropriations; appropriating money; amending Laws 2013, chapter 85, article 1, section 4, subdivisions 1, 2.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"Section 1. HOUSING
OPPORTUNITIES MADE EQUITABLE (HOME) PILOT PROJECT.
(a) The Housing Opportunities Made Equitable (HOME) pilot project is established to support closing the disparity gap in affordable homeownership for all communities of color and American Indians in Minnesota and increase housing opportunities for specific groups while closing the disparity gap that exists in Minnesota. The pilot project may also support the redevelopment and rebuilding of challenged neighborhoods affected by the foreclosure crisis. The Minnesota Housing Finance Agency shall collaborate with the Chicano Latino Affairs Council, Council on Asian-Pacific Minnesotans, Council on Black Minnesotans, and Minnesota Indian Affairs Council in designing the implementation of the pilot project.
(b)
If funds are available to the Minnesota Housing Finance Agency, the
commissioner may use the available funds to:
support the capacity of several local community nonprofit housing and
service providers to administer the HOME pilot project under this section,
support providers that assist families to attain sustainable, affordable
homeownership as described in paragraph (c), and make first mortgage loans as
described in paragraph (d).
(c) Assistance to attain sustainable
affordable homeownership may include long-term financial education, training,
case management, credit mending, homebuyer education, and foreclosure
prevention mitigation services. The
Minnesota Housing Finance Agency shall choose providers of the assistance
described in this paragraph that have proven track records of assisting
culturally diverse groups of people with long-term education services and that
have historically resulted in sustainable affordable housing opportunities for
culturally diverse groups.
(d) Funds may be used to make first mortgage financing to homebuyers who have the financial resources to pay a mortgage but are unable to access a mortgage that meets their needs. The mortgage loans will be originated by qualified providers. A qualified provider is a provider that has a proven track record of assisting culturally diverse groups of people in attaining sustainable affordable homeownership and that, at a minimum, is in good standing with the Minnesota Department of Commerce, is licensed to originate mortgage loans, and has demonstrated an ability to underwrite to FHA or conventional underwriting guidelines. Qualified providers may be paid an origination fee, a service release premium, and a standard fee set in order to expand capacity to assist more families with purchasing a home."
Amend the title as follows:
Page 1, line 3, delete everything after "project" and insert a period
Page 1, delete line 4
With the recommendation that when so amended the bill be placed on the General Register.
The
report was adopted.
Carlson from the Committee on Ways and Means to which was referred:
H. F. No. 2166, A bill for an act relating to elections; providing a study of the use of electronic rosters in elections; requiring secretary of state to evaluate electronic rosters in 2014 election; authorizing the use of electronic rosters statewide; proposing coding for new law in Minnesota Statutes, chapter 201.
Reported the same back with the recommendation that the bill be placed on the General Register.
The
report was adopted.
Hilstrom from the Committee on Judiciary Finance and Policy to which was referred:
H. F. No. 2455, A bill for an act relating to courts; modifying provisions for court reporters; amending Minnesota Statutes 2012, sections 486.01; 486.05; 486.06; 486.10, subdivisions 2, 3; repealing Minnesota Statutes 2012, section 486.055.
Reported the same back with the following amendments:
Page 2, after line 3, insert:
"Sec. 2. Minnesota Statutes 2012, section 486.02, is amended to read:
486.02
STENOGRAPHIC OFFICIAL RECORD.
Except as provided in section 484.72, a
competent stenographer A court reporter who meets minimum
qualifications promulgated by the Supreme Court, shall make capture
a complete stenographic record of all testimony given and all
proceedings had before the judge upon the trial of issues of fact, with or
without a jury, or before any referee appointed by such judge. In so doing the stenographer court
reporter shall take down or record all questions in the exact
language thereof, and all answers thereto precisely as given by the witness or
by the sworn interpreter. The stenographer
court reporter shall also record, capture a verbatim,
record of all objections made, and the grounds thereof as stated by
counsel, all rulings thereon, all exceptions taken, all motions, orders, and
admissions made and the charge to the jury.
When directed so to do by the judge, the stenographer court
reporter shall make capture a like record of any other matter
or proceeding, and shall read to, play back for, or transcribe for such
judge or referee any record made captured by the stenographer
court reporter, or transcribe the same, without charge, for any
purpose in furtherance of justice.
EFFECTIVE
DATE. This section is
effective August 1, 2014, and applies to legal proceedings commencing on or
after that date.
Sec. 3. [486.025]
ELECTRONIC RECORDING OF COURT PROCEEDINGS.
Subdivision 1. Authorization. Electronic recording equipment may be
used to record court proceedings. A
court reporter shall operate and monitor electronic recording equipment. At the request of any party to any
proceedings, the court may, in its discretion, require a competent stenographer
who meets minimum qualifications promulgated by the Supreme Court to make a
complete stenographic record of the proceedings.
Subd. 2. Limitations
on operation of electronic recording equipment. Except as provided in subdivisions 4
and 5, a court reporter who meets minimum qualifications as promulgated by the
Supreme Court shall make a complete official record of the following court
proceedings:
(1) felony and gross misdemeanor
offenses;
(2) district court jury trials; and
(3) contested district court trials and
fact-finding hearings.
Subd. 3. Malfunction
of electronic recording. If,
when electronic recording equipment is used, a malfunction occurs in the
recording process so that the recording is incomplete, the court may declare a
mistrial if the malfunction is discovered during the trial. If the malfunction is discovered in the
course of preparing a transcript after a verdict has been entered, the court
may grant a new trial upon motion of any party.
Subd. 4. Court
reporter unavailability. Subject
to judicial district reassignment policies and collective bargaining
agreements, if a court reporter is not available to capture the record of court
proceedings, the court may use a person who meets minimum qualifications as
promulgated by the state court administrator to operate electronic recording
equipment.
Subd. 5. Expedited
child support process. Hearings
and proceedings conducted in the expedited child support process under section
484.702 may be reported by use of electronic recording equipment provided that
the equipment meets the minimum standards promulgated by the state court
administrator. Electronic recording
equipment must be operated and monitored by a person who meets the minimum
qualifications promulgated by the state court administrator.
EFFECTIVE DATE. This section is effective August 1, 2014, and applies to legal proceedings commencing on or after that date."
Page 3, line 5, after "parties" insert "except that fees may be waived or reduced to low-income parties"
Page 3, delete section 6 and insert:
"Sec. 8. REPEALER.
Minnesota Statutes 2012, sections
484.72; and 486.055, are repealed."
Renumber the sections in sequence
Correct the title numbers accordingly
With the recommendation that when so amended the bill be re-referred to the Committee on Rules and Legislative Administration.
The
report was adopted.
Carlson from the Committee on Ways and Means to which was referred:
H. F. No. 2556, A bill for an act relating to veterans; veterans housing and long-term care; providing exemptions for certain moratoriums on new residential facilities; providing grants for housing needs assessments for veterans; appropriating money; amending Minnesota Statutes 2012, section 256I.04, subdivision 3; Minnesota Statutes 2013 Supplement, section 245A.03, subdivision 7.
Reported the same back with the following amendments:
Page 6, after line 29, insert:
"Sec. 4. APPROPRIATION;
HUMAN SERVICES.
$340,000 in fiscal year 2015 is appropriated from the general fund to the commissioner of human services for sections 1 and 2. Of this amount, $74,000 is for medical assistance, long-term waivers and home care and $266,000 is for group residential housing grants."
With the recommendation that when so amended the bill be placed on the General Register.
The
report was adopted.
Hilstrom from the Committee on Judiciary Finance and Policy to which was referred:
H. F. No. 2602, A bill for an act relating to crime; clarifying the crime of failure to pay court-ordered support; amending Minnesota Statutes 2012, section 609.375, subdivisions 1, 7, 8.
Reported the same back with the recommendation that the bill be re-referred to the Committee on Rules and Legislative Administration.
The
report was adopted.
Carlson from the Committee on Ways and Means to which was referred:
H. F. No. 2757, A bill for an act relating to veterans homes; modifying cost of care calculations; providing for annual adjustments; amending Minnesota Statutes 2012, section 198.03, subdivisions 2, 3.
Reported the same back with the recommendation that the bill be placed on the General Register.
The
report was adopted.
Lenczewski from the Committee on Taxes to which was referred:
H. F. No. 2852, A bill for an act relating to natural resources; modifying game and fish laws; modifying use of vehicles for hunting; modifying oversight committee provisions; modifying provisions for wildlife management areas; modifying license provisions and fees; modifying invasive species provisions; providing for certain grants; requiring development of certain master plan; modifying provisions for taking wild animals; authorizing nonlethal hazing of Canada geese; modifying disability-related angling and hunting licenses and special permit provisions; providing for designations on driver's license and Minnesota identification card; updating and eliminating certain obsolete language; modifying prior appropriations; requiring issuance of general permit; requiring rulemaking; amending Minnesota Statutes 2012, sections 84.154, subdivisions 1, 2, 3; 84.777, subdivision 2; 84.87, by adding a subdivision; 84.944, subdivision 2; 84A.10; 84A.50; 84D.01, subdivision 8b; 97A.025; 97A.055, subdivision 4b; 97A.131; 97A.137, subdivision 3, by adding a subdivision; 97A.311, subdivision 5, by adding a subdivision; 97A.434, subdivision 1; 97A.441, subdivisions 1, 5; 97A.473, subdivisions 2a, 2b, 5, 5a; 97A.502; 97B.031, subdivision 5; 97B.055, subdivision 3; 97B.081, subdivision 3; 97B.086; 97B.095; 97B.106, subdivision 1; 97B.111, subdivision 1; 97B.516; 97B.605; 97B.655, subdivision 1; 97B.667, subdivisions 3, 4; 97B.731, subdivision 1; 97C.821; 171.07, subdivision 15, by adding a subdivision; Minnesota Statutes 2013 Supplement, sections 97A.441, subdivisions 6, 6a; 97A.475, subdivisions 2, 3; 97A.485, subdivision 6; Laws 2008, chapter 363, article 5, section 4, subdivision 7, as amended; proposing coding for new law in Minnesota Statutes, chapters 87A; 97B; 97C; repealing Minnesota Statutes 2012, sections 84.154, subdivision 5; 84A.04; 84A.08; 84A.11; 97A.081; 97A.083; 97A.445, subdivision 3; 97A.4742, subdivision 3; 97B.061; 97B.611; 97B.615; 97B.621, subdivisions 1, 4; 97B.625; 97B.631; 97B.635; 97B.711; 97B.715, subdivision 2; 97B.803; 97B.911; 97B.915; 97B.921; 97B.925; 97C.011; 97C.827; Minnesota Rules, part 6100.5100.
Reported the same back with the following amendments:
Page 14, delete section 31 and insert:
"Sec. 31. Minnesota Statutes 2012, section 97B.031, subdivision 5, is amended to read:
Subd. 5. Scopes; visually impaired hunters. (a) Notwithstanding any other law to the contrary, the commissioner may issue a special permit, without a fee, to use a muzzleloader with a scope to take deer during the muzzleloader season to a person who obtains the required licenses and who has a visual impairment. The scope may not have magnification capabilities.
(b) The visual impairment must be to the extent that the applicant is unable to identify targets and the rifle sights at the same time without a scope. The visual impairment and specific conditions must be established by medical evidence verified in writing by (1) a licensed physician or a certified nurse practitioner or certified physician assistant acting under the direction of a licensed physician; (2) a licensed ophthalmologist; or (3) a licensed optometrist. The commissioner may request additional information from the physician if needed to verify the applicant's eligibility for the permit.
(c) A permit issued under this subdivision may be valid for up to five years, based on the permanence of the visual impairment as determined by the licensed physician, ophthalmologist, or optometrist.
(d) The permit must be in the immediate possession of the permittee when hunting under the special permit.
(e) The commissioner may deny, modify, suspend, or revoke a permit issued under this subdivision for cause, including a violation of the game and fish laws or rules.
(f) A person who knowingly makes a false application or assists another in making a false application for a permit under this subdivision is guilty of a misdemeanor. A physician, certified nurse practitioner, certified physician assistant, ophthalmologist, or optometrist who fraudulently certifies to the commissioner that a person is visually impaired as described in this subdivision is guilty of a misdemeanor.
(g) A permit is not required under this subdivision to use an electronic range finder according to section 97B.081, subdivision 3, paragraph (c)."
Page 15, delete section 32
Page 18, delete section 37
Page 23, line 18, delete "(a)"
Page 23, line 23, after the semicolon, insert "or"
Page 23, delete lines 24 to 30
Page 23, line 31, delete "(5)" and insert "(2)"
Renumber the sections in sequence
Correct the title numbers accordingly
With the recommendation that when so amended the bill be re-referred to the Committee on Ways and Means.
The
report was adopted.
Carlson from the Committee on Ways and Means to which was referred:
H. F. No. 3241, A bill for an act relating to claims against the state; providing for settlement of certain claims; appropriating money.
Reported the same back with the following amendments:
Page 1, line 14, delete "$1,310.07" and insert "$2,359.82"
Page 1, delete line 15 and insert:
"(2) for payment to Garry Green
for permanent injuries to his right hand sustained while performing sentence to
service work in Hennepin County, $7,400;
(3) for payment to David Huff for
permanent injuries to his back sustained while performing sentence to service
work in Waseca County and for medical costs incurred by Mr. Huff,
$19,686.22, and to medical providers for treatment of Mr. Huff, $9,065.24;
(4) for payment to medical providers
for treatment of Michael Livingston, who was injured while performing sentence
to service work in Meeker County, $5,608.02;
(5) for payment to Donald Marrow for
permanent injuries to his right hand sustained while performing sentence to
service work in Hennepin County, $3,300, and to medical providers for treatment
of Mr. Marrow, $5,509.28;
(6) for payment to Jamie Patton for
permanent injuries sustained to his right hand while performing assigned duties
at Minnesota Correctional Facility-Faribault, $11,135;
(7) for payment to Rebecca Ratzlaff for
medical costs incurred as a result of a foot injury sustained while performing
sentence to service work in Hennepin County, $513.97, and to medical providers
for treatment of Ms. Ratzlaff, $15,125.33;
(8) for payment to medical providers
for treatment of Damon Russell, who was injured while performing sentence to
service work in Olmstead County, $1,840.35;
(9) for payment to medical providers
for treatment of Brian Trautman, who was injured while performing sentence to
service work in Winona County, $1,789.11.
Sec. 2. DEPARTMENT
OF TRANSPORTATION.
(a) The Department of Transportation is
authorized to pay Cory Zeien $4,284.92 from the $10,961.02 retained by the
department from contract number 440939 with M. G. Carlson Construction Co.,
Inc., for construction of the Northern Pacific Railway Depot Roof
Rehabilitation in Staples, Minnesota. This
payment is conditioned upon the execution of a release by Cory Zeien, releasing
the state of Minnesota from all claims for payment for work performed under
contract number 440939. The release
shall be in a form to be determined by the department, and must include an
acknowledgment that Cory Zeien is responsible for the payment of any taxes or
other obligations resulting from the $4,284.92 payment.
(b) The Department of Transportation is
authorized to notify the seven additional individuals who were identified in
the department's audit of contract number 440939 as having been underpaid. Upon execution of a release as required in
paragraph (a), the department is authorized to make a payment to each
individual, from the remaining $6,676.10 of
contract retainage, prorated according to the amount each individual was
underpaid. In the event the
Department of Transportation is unable to locate an individual identified in
the audit, the Department of Transportation shall file an abandoned property
report with the Department of Commerce under Minnesota Statutes, section
345.41, together with the payment of the appropriate prorated amount under
Minnesota Statutes, section 345.43.
(c) Because contractor M. G. Carlson
Construction Co., Inc. cannot be found within the state, the Department of
Transportation may make final settlement of contract number 440939 without the
certification required by Minnesota Statutes, section 270C.66.
EFFECTIVE DATE. This section is effective the day following final enactment."
Amend the title as follows:
Page 1, line 2, after the second semicolon, insert "authorizing certain payments by the Department of Transportation;"
With the recommendation that when so amended the bill be placed on the General Register.
The
report was adopted.
SECOND READING OF HOUSE BILLS
H. F. Nos. 1863, 2112,
2166, 2556, 2757 and 3241 were read for the second time.
SECOND READING OF SENATE BILLS
S. F. Nos. 1747, 2108,
2162, 2221 and 2571 were read for the second time.
INTRODUCTION AND FIRST READING OF HOUSE BILLS
The
following House Files were introduced:
Schomacker introduced:
H. F. No. 3340, A bill for an act relating to human services; providing a rate increase for certain nursing facilities; amending Minnesota Statutes 2012, section 256B.441, by adding a subdivision.
The bill was read for the first time and referred to the Committee on Health and Human Services Finance.
Kahn, Clark and Hornstein introduced:
H. F.
No. 3341, A bill for an act relating to agriculture; providing for study of a
farmstay program; requiring a report.
The bill was read for the first time and referred to the Committee on Agriculture Policy.
Swedzinski introduced:
H. F. No. 3342, A bill for an act relating to capital improvements; appropriating money for the Canby Theatre; authorizing the sale and issuance of state bonds.
The bill was read for the first time and referred to the Committee on State Government Finance and Veterans Affairs.
Abeler was excused for the remainder of
today's session.
MESSAGES FROM
THE SENATE
The
following messages were received from 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. 977, A bill for an act relating to business organizations; regulating the organization and operation of limited liability companies; enacting a revised uniform limited liability company act; providing conforming changes; amending Minnesota Statutes 2012, sections 48A.03, subdivision 4; 181.970, subdivision 2; 270C.721; 273.124, subdivision 8; 290.01, subdivision 3b; 302A.011, by adding subdivisions; 302A.115, subdivision 1; 302A.681; 302A.683; 302A.685; 302A.689; 302A.691; 308A.121, subdivision 1; 308B.801, subdivisions 1, 2, 5; 308B.805, subdivision 1; 308B.835, subdivision 2; 317A.115, subdivision 2; 319B.02, subdivisions 3, 22; 319B.10, subdivision 3; 321.0108; proposing coding for new law in Minnesota Statutes, chapter 302A; proposing coding for new law as Minnesota Statutes, chapter 322C; repealing Minnesota Statutes 2012, sections 302A.687; 322B.01; 322B.02; 322B.03, subdivisions 1, 2, 3, 6, 6a, 7, 8, 10, 11, 12, 13, 14, 15, 17, 17a, 17b, 18, 19, 19a, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 31a, 32, 33, 34, 35, 36, 36a, 37, 38, 39, 40, 41, 41a, 42, 43, 44, 45, 45a, 46, 47, 48, 49, 50, 51; 322B.04; 322B.10; 322B.105; 322B.11; 322B.115; 322B.12, subdivisions 1, 2, 3, 4, 5; 322B.125; 322B.13; 322B.135; 322B.14; 322B.145; 322B.15; 322B.155; 322B.16; 322B.165; 322B.17; 322B.175; 322B.18; 322B.20; 322B.21; 322B.22; 322B.23; 322B.30; 322B.303; 322B.306; 322B.31; 322B.313; 322B.316; 322B.32; 322B.323; 322B.326; 322B.33; 322B.333; 322B.336; 322B.34; 322B.343; 322B.346; 322B.348; 322B.35; 322B.353; 322B.356; 322B.36; 322B.363, subdivisions 1, 2, 3, 4, 5, 6, 7; 322B.366, subdivision 1; 322B.37; 322B.373; 322B.376; 322B.38; 322B.383; 322B.386; 322B.40; 322B.41; 322B.42; 322B.43; 322B.50; 322B.51; 322B.52; 322B.53; 322B.54; 322B.55; 322B.56; 322B.60; 322B.603; 322B.606; 322B.61; 322B.613; 322B.616; 322B.62; 322B.623; 322B.626; 322B.63; 322B.633; 322B.636; 322B.64; 322B.643; 322B.646; 322B.65; 322B.653; 322B.656; 322B.66; 322B.663; 322B.666; 322B.67; 322B.673; 322B.676; 322B.679; 322B.68; 322B.683; 322B.686; 322B.689; 322B.69; 322B.693; 322B.696; 322B.699; 322B.70; 322B.71; 322B.72; 322B.73; 322B.74; 322B.75; 322B.755; 322B.76; 322B.77; 322B.78; 322B.80; 322B.803; 322B.806; 322B.81; 322B.813; 322B.816, subdivisions 1, 2, 4, 5, 6; 322B.82; 322B.823; 322B.826; 322B.83; 322B.833; 322B.836; 322B.84; 322B.843; 322B.846; 322B.85; 322B.853; 322B.856; 322B.86; 322B.863; 322B.866; 322B.87; 322B.873, subdivisions 1, 4; 322B.876, subdivision 1; 322B.88; 322B.883; 322B.90; 322B.905; 322B.91, subdivisions 1, 2; 322B.915; 322B.92; 322B.925; 322B.93; 322B.935; 322B.94; 322B.945; 322B.95; 322B.955; 322B.960, subdivisions 1, 4, 5; 322B.975.
JoAnne M. Zoff, Secretary of the Senate
CONCURRENCE AND REPASSAGE
Hortman moved that the House concur in the
Senate amendments to H. F. No. 977 and that the bill be repassed
as amended by the Senate. The motion
prevailed.
H. F. No. 977, A bill for an act relating to business organizations; regulating the organization and operation of limited liability companies; enacting a revised uniform limited liability company act; providing conforming changes; amending Minnesota Statutes 2012, sections 48A.03, subdivision 4; 181.970, subdivision 2; 270C.721; 273.124, subdivision 8; 290.01, subdivision 3b; 302A.011, by adding subdivisions; 302A.115, subdivision 1; 302A.681; 302A.683; 302A.685; 302A.689; 302A.691; 308A.121, subdivision 1; 308B.801, subdivisions 1, 2, 5; 308B.805, subdivision 1; 308B.835, subdivision 2; 317A.115, subdivision 2; 319B.02, subdivisions 3, 22; 319B.10, subdivision 3; 321.0108; proposing coding for new law in Minnesota Statutes, chapter 302A; proposing coding for new law as Minnesota Statutes, chapter 322C; repealing Minnesota Statutes 2012, sections 302A.687; 322B.01; 322B.02; 322B.03, subdivisions 1, 2, 3, 6, 6a, 7, 8, 10, 11, 12, 13, 14, 15, 17, 17a, 17b, 18, 19, 19a, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 31a, 32, 33, 34, 35, 36, 36a, 37, 38, 39, 40, 41, 41a, 42, 43, 44, 45, 45a, 46, 47, 48, 49, 50, 51; 322B.04; 322B.10; 322B.105; 322B.11; 322B.115; 322B.12, subdivisions 1, 2, 3, 4, 5; 322B.125; 322B.13; 322B.135; 322B.14; 322B.145; 322B.15; 322B.155; 322B.16; 322B.165; 322B.17; 322B.175; 322B.18; 322B.20; 322B.21; 322B.22; 322B.23; 322B.30; 322B.303; 322B.306; 322B.31; 322B.313; 322B.316; 322B.32; 322B.323; 322B.326; 322B.33; 322B.333; 322B.336; 322B.34; 322B.343; 322B.346; 322B.348; 322B.35; 322B.353; 322B.356; 322B.36; 322B.363, subdivisions 1, 2, 3, 4, 5, 6, 7; 322B.366, subdivision 1; 322B.37; 322B.373; 322B.376; 322B.38; 322B.383; 322B.386; 322B.40; 322B.41; 322B.42; 322B.43; 322B.50; 322B.51; 322B.52; 322B.53; 322B.54; 322B.55; 322B.56; 322B.60; 322B.603; 322B.606; 322B.61; 322B.613; 322B.616; 322B.62; 322B.623; 322B.626; 322B.63; 322B.633; 322B.636; 322B.64; 322B.643; 322B.646; 322B.65; 322B.653; 322B.656; 322B.66; 322B.663; 322B.666; 322B.67; 322B.673; 322B.676; 322B.679; 322B.68; 322B.683; 322B.686; 322B.689; 322B.69; 322B.693; 322B.696; 322B.699; 322B.70; 322B.71; 322B.72; 322B.73; 322B.74; 322B.75; 322B.755; 322B.76; 322B.77; 322B.78; 322B.80; 322B.803; 322B.806; 322B.81; 322B.813; 322B.816, subdivisions 1, 2, 4, 5, 6; 322B.82; 322B.823; 322B.826; 322B.83; 322B.833; 322B.836; 322B.84; 322B.843; 322B.846; 322B.85; 322B.853; 322B.856; 322B.86; 322B.863; 322B.866; 322B.87; 322B.873, subdivisions 1, 4; 322B.876, subdivision 1; 322B.88; 322B.883; 322B.90; 322B.905; 322B.91, subdivisions 1, 2; 322B.915; 322B.92; 322B.925; 322B.93; 322B.935; 322B.94; 322B.945; 322B.95; 322B.955; 322B.960, subdivisions 1, 4, 5; 322B.975.
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 124 yeas and 0 nays as follows:
Those who voted in the affirmative were:
Albright
Allen
Anderson, M.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Barrett
Beard
Benson, J.
Bernardy
Bly
Brynaert
Carlson
Clark
Cornish
Daudt
Davids
Davnie
Dean, M.
Dettmer
Dill
Dorholt
Drazkowski
Erhardt
Erickson, R.
Erickson, S.
Fabian
Falk
Faust
Fischer
FitzSimmons
Franson
Freiberg
Fritz
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Halverson
Hamilton
Hansen
Hausman
Hertaus
Hilstrom
Holberg
Hoppe
Hornstein
Hortman
Howe
Huntley
Isaacson
Johnson, B.
Johnson, C.
Johnson, S.
Kahn
Kelly
Kieffer
Kiel
Kresha
Laine
Leidiger
Lenczewski
Liebling
Lien
Lillie
Loeffler
Lohmer
Loon
Mahoney
Mariani
Marquart
Masin
McNamar
McNamara
Melin
Metsa
Moran
Morgan
Mullery
Murphy, E.
Murphy, M.
Myhra
Nelson
Newberger
Newton
Nornes
Norton
O'Driscoll
O'Neill
Paymar
Pelowski
Peppin
Persell
Petersburg
Poppe
Pugh
Quam
Radinovich
Rosenthal
Runbeck
Sanders
Savick
Sawatzky
Schomacker
Selcer
Simonson
Slocum
Sundin
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Wagenius
Ward, J.A.
Ward, J.E.
Wills
Winkler
Woodard
Yarusso
Zellers
Spk. Thissen
The bill was repassed, as amended by the
Senate, and its title agreed to.
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. 183, A bill for an act relating to data practices; enhancing certain penalties and procedures related to unauthorized access to data by a public employee; amending Minnesota Statutes 2012, sections 13.05, subdivision 5; 13.055; 13.09; 299C.40, subdivision 4.
JoAnne M. Zoff, Secretary of the Senate
Holberg moved that the House refuse to
concur in the Senate amendments to H. F. No. 183, that the
Speaker appoint a Conference Committee of 3 members of the House, and that the
House requests that a like committee be appointed by the Senate to confer on
the disagreeing votes of the two houses.
The motion prevailed.
ANNOUNCEMENT
BY THE SPEAKER
The Speaker announced the appointment of
the following members of the House to a Conference Committee on
H. F. No. 183:
Holberg, Hilstrom and Hortman.
CALENDAR FOR THE DAY
H. F. No. 3167 was reported
to the House.
Lenczewski moved to amend H. F. No. 3167, the second engrossment, as follows:
Page 24, after line 21, insert:
"Sec. 7. Minnesota Statutes 2013 Supplement, section 297A.61, subdivision 4, is amended to read:
Subd. 4. Retail sale. (a) A "retail sale" means:
(1) any sale, lease, or rental of tangible personal property 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; and
(2) any sale of a service enumerated in subdivision 3, for any purpose other than resale 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.
(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.
(n) A sale of motor vehicle repair paint and materials by a motor vehicle repair or body shop business is a retail sale and the sales tax is imposed on the gross receipts from the retail sale of the paint and materials. The motor vehicle repair or body shop that purchases motor vehicle repair paint and motor vehicle repair materials for resale must either:
(1) separately state each item of paint and each item of materials, and the sales price of each, on the invoice to the purchaser; or
(2) in order to calculate the sales price of the paint and materials, use a method which estimates the amount and monetary value of the paint and materials used in the repair of the motor vehicle by multiplying the number of labor hours by a rate of consideration for the paint and materials used in the repair of the motor vehicle following industry standard practices that fairly calculate the gross receipts from the retail sale of the motor vehicle repair paint and motor vehicle repair materials. An industry standard practice fairly calculates the gross receipts if the sales price of the paint and materials used or consumed in the repair of a motor vehicle equals or exceeds the purchase price paid by the motor vehicle repair or body shop business. Under this clause, the invoice must either separately state the "paint and materials" as a single taxable item, or separately state "paint" as a taxable item and "materials" as a taxable item. This clause does not apply to wholesale transactions at an auto auction facility.
(o) A sale of specified digital products or other digital products to an end user with or without rights of permanent use and regardless of whether rights of use are conditioned upon payment by the purchaser is a retail sale. When a digital code has been purchased that relates to specified digital products or other digital products, the subsequent receipt of or access to the related specified digital products or other digital products is not a retail sale.
(p) A payment made to a cooperative electric association or public utility as a contribution in aid of construction is a contract for improvement to real property and is not a retail sale.
(q) Installation of fiber optic and
communication cable in buildings is a retail sale and not an improvement to
retail property. For purposes of this
paragraph, "fiber optic and communication cable" means cable that is
of the type required to be removed from abandoned buildings under the most
recent edition of the National Electrical Code, as adopted by the National Fire
Protection Association, Inc. and approved by the National Standards Institute.
EFFECTIVE DATE. This section is effective for sales and purchases made after June 30, 2015."
Page 44, after line 32, insert:
"Sec. 34. Minnesota Statutes 2012, section 297A.70, is amended by adding a subdivision to read:
Subd. 18. Regional
rail authorities. Sales and
purchases by regional rail authorities, as defined in Minnesota Statues,
section 398A.01, are exempt.
EFFECTIVE DATE. This section is effective for sales and purchases made after June 30, 2015."
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
Lenczewski moved to amend her amendment to H. F. No. 3167, the second engrossment, as follows:
Page 3, line 30, delete "retail" and insert "real"
The
motion prevailed and the amendment to the amendment was adopted.
The question recurred on the Lenczewski
amendment, as amended, to H. F. No. 3167, the second
engrossment. The motion prevailed and
the amendment, as amended, was adopted.
Gruenhagen moved to amend H. F. No. 3167, the second engrossment, as amended, as follows:
Page 49, after line 20, insert:
"Sec. 6. Minnesota Statutes 2012, section 289A.12, is amended by adding a subdivision to read:
Subd. 18. Charity
health services. (a) A
medical professional, dentist, or chiropractor may file an informational report
with the commissioner documenting the value of charity health services that the
individual provided during the taxable year.
A business that employs a medical professional, dentist, or
chiropractor, may also file an informational report with the commissioner
documenting the value of charity health services its employees provided during
the taxable year. The charity health
services reported to the commissioner must be calculated at the reimbursement
rates provided in section 256B.76.
(b) For purposes of this subdivision
"chiropractor" means an individual licensed under chapter 148,
"dentist" means an individual licensed under chapter 150A, and
"medical professional" means an individual licensed under chapter
147.
EFFECTIVE DATE. This section is effective for taxable years beginning after December 31, 2014."
Page 53, line 30, delete "and"
Page 53, line 35, delete the period and insert:
"; and
(22) the value of charity health care services provided by a medical professional licensed under chapter 147, a dentist licensed under chapter 150A, or a chiropractor licensed under chapter 148, and acting within the scope of the individual's license. For the purposes of this clause, the value of charity health care services must be calculated at the applicable reimbursement rate provided under section 256B.76 for the medical professional, dentist, or chiropractor."
Page 54, line 2, before the period, insert "except the new clause (22) is effective for taxable years beginning after December 31, 2014"
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
A roll call was requested and properly
seconded.
The question was taken on the Gruenhagen
amendment and the roll was called. There
were 54 yeas and 70 nays as follows:
Those who voted in the affirmative were:
Albright
Anderson, M.
Anderson, P.
Anderson, S.
Barrett
Beard
Cornish
Daudt
Davids
Dean, M.
Dettmer
Drazkowski
Erickson, S.
Fabian
FitzSimmons
Franson
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Hamilton
Hertaus
Hoppe
Howe
Johnson, B.
Kelly
Kieffer
Kiel
Kresha
Leidiger
Lohmer
Loon
McNamara
Myhra
Newberger
Nornes
O'Driscoll
O'Neill
Peppin
Petersburg
Pugh
Quam
Runbeck
Sanders
Schomacker
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Wills
Woodard
Zellers
Those who voted in the negative were:
Allen
Anzelc
Atkins
Benson, J.
Bernardy
Bly
Brynaert
Carlson
Clark
Davnie
Dill
Dorholt
Erhardt
Erickson, R.
Falk
Faust
Fischer
Freiberg
Fritz
Halverson
Hansen
Hausman
Hilstrom
Hornstein
Hortman
Huntley
Isaacson
Johnson, C.
Johnson, S.
Kahn
Laine
Lenczewski
Liebling
Lien
Lillie
Loeffler
Mahoney
Mariani
Marquart
Masin
McNamar
Melin
Metsa
Moran
Morgan
Mullery
Murphy, E.
Murphy, M.
Nelson
Newton
Norton
Paymar
Pelowski
Persell
Poppe
Radinovich
Rosenthal
Savick
Sawatzky
Schoen
Selcer
Simonson
Slocum
Sundin
Wagenius
Ward, J.A.
Ward, J.E.
Winkler
Yarusso
Spk. Thissen
The
motion did not prevail and the amendment was not adopted.
Hertaus moved to amend H. F. No. 3167, the second engrossment, as amended, as follows:
Page 70, after line 20, insert:
"Sec. 10. CITY
OF MOUND; TAX INCREMENT FINANCING.
The requirements 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, are considered to be met for the Mound Harbor Tax Increment Financing
District administered by the Housing and Redevelopment Authority in and for the
city of Mound if the activities are undertaken within 15 years from the date of
certification of the district.
EFFECTIVE DATE. The section is effective upon compliance by the governing body of the city of Mound with the requirements of Minnesota Statutes, section 645.021, subdivisions 2 and 3."
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
The
motion did not prevail and the amendment was not adopted.
Green moved to amend H. F. No. 3167, the second engrossment, as amended, as follows:
Page 20, after line 1, insert:
"Sec. 10. Minnesota Statutes 2012, section 375.192, subdivision 2, is amended to read:
Subd. 2. Procedure,
conditions. Upon written application
by the owner of any property, the county board may grant the reduction or
abatement of estimated market valuation or taxes and of any costs, penalties,
or interest on them as the board deems just and equitable and order the refund
in whole or part of any taxes, costs, penalties, or interest which have been
erroneously or unjustly paid. An
abatement must be granted in the case of a reassessment resulting in a
reduction in a property's taxable market value. Except as provided in sections 469.1812 to
469.1815, no reduction or abatement may be granted on the basis of providing an
incentive for economic development or redevelopment. Except as provided in section 375.194, the
county board may consider and grant reductions or abatements on applications
only as they relate to taxes payable in the current year and the two three
prior years; provided that reductions or abatements for the two prior
years shall be considered or granted only for (i) clerical errors, or (ii)
when the taxpayer fails to file for a reduction or an adjustment due to
hardship, as determined by the county board granted as reductions in the
current year's and succeeding years' taxes of the lesser of (1) 25 percent of
the current year's taxes, or (2) the remaining amount of the abatement. The application must include the Social
Security number of the applicant. The
Social Security number is private data on individuals as defined by section
13.02, subdivision 12. All applications
must be approved by the county assessor, or, if the property is located in a
city of the first or second class having a city assessor, by the city assessor,
and by the county auditor before consideration by the county board, except that
the part of the application which is for the abatement of penalty or interest
must be approved by the county treasurer and county auditor. Approval by the county or city assessor is
not required for abatements of penalty or interest. No reduction, abatement, or refund of any
special assessments made or levied by any municipality for local improvements
shall be made unless it is also approved by the board of review or similar
taxing authority of the municipality. On
any reduction or abatement when the reduction of taxes, costs, penalties, and
interest exceed $10,000, the county board shall give notice within 20 days to
the school board and the municipality in which the property is located. The notice must describe the property
involved, the actual amount of the reduction being sought, and the reason for
the reduction.
An appeal may not be taken to the Tax Court from any order of the county board made in the exercise of the discretionary authority granted in this section.
The county auditor shall notify the commissioner of revenue of all abatements resulting from the erroneous classification of real property, for tax purposes, as nonhomestead property. For the abatements relating to the current year's tax processed through June 30, the auditor shall notify the commissioner on or before July 31 of that same year of all abatement applications granted. For the abatements relating to the current year's tax processed after
June 30 through the balance of the year, the auditor shall notify the commissioner on or before the following January 31 of all applications granted. The county auditor shall submit a form containing the Social Security number of the applicant and such other information the commissioner prescribes.
EFFECTIVE DATE. This section is effective July 1, 2014."
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
The
motion did not prevail and the amendment was not adopted.
Cornish was excused for the remainder of
today's session.
Dettmer moved to amend H. F. No. 3167, the second engrossment, as amended, as follows:
Page 53, line 30, delete "and"
Page 53, line 35, delete the period and insert "; and"
Page 53, after line 35, insert:
"(22) to the extent included in federal taxable income, for an individual with 20 or more years of military service or who separated from the military after fewer than 20 years of service with a service-connected disability, compensation received from a pension or other retirement pay from the federal government for service in the military, as computed under United States Code, title 10, sections 1401 to 1414, 1447 to 1455, or 12732 to 12733. The subtraction under this clause is limited to $1,500 for each year or portion of a year of military service. In the case of a married couple filing jointly, each spouse is eligible for this subtraction."
Page 54, line 2, before the period, insert "except that clause (22) is effective for taxable years beginning after December 31, 2014."
Page 55, line 32, delete "and (21)" and insert "(21) and (22)"
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
A roll call was requested and properly
seconded.
The question was taken on the Dettmer
amendment and the roll was called. There
were 68 yeas and 55 nays as follows:
Those who voted in the affirmative were:
Albright
Anderson, M.
Anderson, P.
Anderson, S.
Anzelc
Barrett
Beard
Daudt
Davids
Dean, M.
Dettmer
Dill
Dorholt
Drazkowski
Erickson, R.
Erickson, S.
Fabian
Faust
FitzSimmons
Franson
Fritz
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Hamilton
Hertaus
Hilstrom
Hoppe
Howe
Johnson, B.
Kelly
Kieffer
Kiel
Kresha
Leidiger
Lien
Lohmer
Loon
McNamar
McNamara
Myhra
Newberger
Nornes
Norton
O'Driscoll
O'Neill
Peppin
Persell
Petersburg
Pugh
Quam
Radinovich
Runbeck
Sanders
Savick
Sawatzky
Schomacker
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Ward, J.E.
Wills
Woodard
Zellers
Those who voted in the negative were:
Allen
Atkins
Benson, J.
Bernardy
Bly
Brynaert
Carlson
Clark
Davnie
Erhardt
Falk
Fischer
Freiberg
Halverson
Hansen
Hausman
Hornstein
Hortman
Huntley
Isaacson
Johnson, C.
Johnson, S.
Kahn
Laine
Lenczewski
Liebling
Lillie
Loeffler
Mahoney
Mariani
Marquart
Masin
Melin
Metsa
Moran
Morgan
Mullery
Murphy, E.
Murphy, M.
Nelson
Newton
Paymar
Pelowski
Poppe
Rosenthal
Schoen
Selcer
Simonson
Slocum
Sundin
Wagenius
Ward, J.A.
Winkler
Yarusso
Spk. Thissen
The
motion prevailed and the amendment was adopted.
Garofalo moved to amend H. F. No. 3167, the second engrossment, as amended, as follows:
Page 12, delete section 2
Page 14, delete section 5
Page 20, after line 1, insert:
"Sec. 13. STUDY
OF SOLAR ENERGY TAXATION.
The commissioner of revenue must
conduct a study of the taxation of solar energy production in Minnesota, and
evaluate the feasibility and desirability of subjecting solar energy-generating
systems to a production tax similar to the wind energy production tax. The study must analyze:
(1) the amount of tax revenue that is
produced under the current system of taxation, considering both the solar
collectors and related equipment and the taxation of the underlying property;
(2) the amount of tax revenue that
would be produced under alternative production tax rate structures and
alternative property tax treatments of property where the solar collectors are
located;
(3) the amount of tax revenue produced
by properties with similar levels of economic activity and intensity of land
use;
(4) any external costs imposed upon local properties and residents by solar energy generation systems;
(5) how any of the calculations under
clauses (1) to (4) would change under alternative growth scenarios for solar
energy production; and
(6)
whether there are any administrative considerations that should be considered
in deciding upon an appropriate system of taxation.
By
February 1, 2015, the commissioner must submit a report to the chairs and ranking
minority members of the house of representatives and senate tax committees
consisting of the findings of the study and identification of issues for policy
makers to consider.
EFFECTIVE DATE. This section is effective the day following final enactment."
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
A roll call was requested and properly
seconded.
The question was taken on the Garofalo
amendment and the roll was called. There
were 51 yeas and 73 nays as follows:
Those who voted in the affirmative were:
Albright
Anderson, M.
Anderson, P.
Anderson, S.
Barrett
Beard
Daudt
Davids
Dean, M.
Dettmer
Drazkowski
Erickson, S.
Fabian
FitzSimmons
Franson
Garofalo
Green
Gruenhagen
Hackbarth
Hertaus
Holberg
Hoppe
Howe
Johnson, B.
Kelly
Kieffer
Kiel
Kresha
Leidiger
Lohmer
Loon
McNamara
Myhra
Newberger
Nornes
O'Driscoll
O'Neill
Peppin
Petersburg
Pugh
Quam
Runbeck
Sanders
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Wills
Woodard
Zellers
Those who voted in the negative were:
Allen
Anzelc
Atkins
Benson, J.
Bernardy
Bly
Brynaert
Carlson
Clark
Davnie
Dill
Dorholt
Erhardt
Erickson, R.
Falk
Faust
Fischer
Freiberg
Fritz
Gunther
Halverson
Hamilton
Hansen
Hausman
Hilstrom
Hornstein
Hortman
Huntley
Isaacson
Johnson, C.
Johnson, S.
Kahn
Laine
Lenczewski
Liebling
Lien
Lillie
Loeffler
Mahoney
Mariani
Marquart
Masin
McNamar
Melin
Metsa
Moran
Morgan
Mullery
Murphy, E.
Murphy, M.
Nelson
Newton
Norton
Paymar
Pelowski
Persell
Poppe
Radinovich
Rosenthal
Savick
Sawatzky
Schoen
Schomacker
Selcer
Simonson
Slocum
Sundin
Wagenius
Ward, J.A.
Ward, J.E.
Winkler
Yarusso
Spk. Thissen
The motion did
not prevail and the amendment was not adopted.
Loon moved to amend H. F. No. 3167, the second engrossment, as amended, as follows:
Delete everything after the enacting clause and insert:
"ARTICLE 1
PROPERTY TAX AIDS, CREDITS, AND REFUNDS
Section 1.
[69.022] VOLUNTEER RETENTION
STIPEND AID PILOT.
Subdivision 1. Definitions. (a) For purposes of this section, the
following terms have the meanings given them.
(b) "Emergency medical services
provider" means a licensee as defined under section 144E.001, subdivision
8.
(c) "Independent nonprofit
firefighting corporation" has the same meaning as used in chapter 424A.
(d) "Municipality" has the
meaning given in section 69.011, but only if the municipality uses one or more
qualified volunteers to provide service.
(e) "Qualified entity" means
an emergency medical services provider, independent nonprofit firefighting
corporation, or municipality.
(f) "Qualified volunteer" means
one of the following types of volunteers who has provided service for the
entire prior calendar year to a qualified entity:
(1) a volunteer firefighter as defined
in section 424A.001, subdivision 10;
(2) a volunteer ambulance attendant as
defined in section 144E.001, subdivision 15; or
(3) an emergency medical responder as
defined in section 144E.001, subdivision 6, who provides emergency medical
services as a volunteer.
(g) "Pilot area" means the
counties of Blue Earth, Faribault, Freeborn, Martin, Steele, Waseca, and
Watonwan.
(h) "State fire marshal" has
the meaning given in section 299F.01.
Subd. 2. Aid
payment and calculation. The
commissioner of revenue shall pay aid to qualified entities located in the
pilot area to provide funds for the qualified entities to pay annual volunteer
retention stipends to qualified volunteers who provide services to the
qualified entities. A qualified entity
is located in the pilot area if it is a municipality located in whole or in
part in the pilot area, or if it is an emergency medical services provider or
independent nonprofit firefighting corporation with its main office located in
the pilot area. The amount of the aid
equals $500 multiplied by the number of qualified volunteers. For purposes of calculating this aid, each
individual providing volunteer service, regardless of the different types of
service provided, is one qualified volunteer.
The commissioner shall pay the aid to qualified entities by July 31 of
the calendar year following the year in which the qualified volunteer provided
service.
Subd. 3. Application. Each year each qualified entity in the
pilot area may apply to the commissioner for aid under this section. The application must be made at the time and
in the form prescribed by the commissioner and must provide sufficient
information to permit the commissioner to determine the applicant's entitlement
to aid under this section.
Subd. 4. Payment
of stipends. A qualified
entity receiving state aid under this section must pay the aid as retention
stipends to qualified volunteers no later than September 15 of the year in
which the aid was received.
Subd. 5. Report. No later than January 15, 2018, the
state fire marshal, in consultation with the commissioner of revenue, must
report to the chairs and ranking minority members of the legislative committees
having jurisdiction over public safety and taxes in the senate and the house of
representatives, in compliance with sections 3.195 and 3.197, on aid paid under
this section. The report must include:
(1)
for each county in the pilot area, a listing of the qualified entities that
received aid in each of the three years of the pilot;
(2) the amount of aid paid to each
qualified entity that received aid in each of the three years of the pilot; and
(3) for each qualified entity that
received aid, the number of qualified volunteers who were paid stipends in each
of the three years of the pilot.
The report must also provide
information on the number of qualified volunteers providing service to
qualified entities in each of the counties adjacent to the pilot area in each
of the three years of the pilot, and must summarize changes in the number of
qualified volunteers during the three years of the pilot both within the pilot
area and in the adjacent counties. For
purposes of this subdivision "counties adjacent to the pilot area"
means the counties of Brown, Cottonwood, Dodge, Jackson, Le Sueur, Mower,
Nicollet, and Rice. Qualified entities
in counties adjacent to the pilot area must provide information to the
commissioner necessary to the report in this subdivision in the form and manner
required by the commissioner. The
commissioner must share with the state fire marshal the information necessary
to the report.
Subd. 6. Appropriation. An amount sufficient to pay the state
aid under this section in fiscal years 2016, 2017, and 2018 is appropriated
from the general fund to the commissioner of revenue. This appropriation does not become part of
the agency's base budget and expires after fiscal year 2018.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies for volunteer service
provided beginning in calendar years 2014, 2015, and 2016, and for aid payable
in calendar years 2015, 2016, and 2017.
Sec. 2. Minnesota Statutes 2012, section 273.1384, subdivision 2, is amended to read:
Subd. 2. Agricultural
homestead market value credit. Property
classified as agricultural homestead under section 273.13, subdivision 23,
paragraph (a), is eligible for an agricultural credit. The credit is computed using the property's
agricultural credit market value, defined for this purpose as the property's
market value excluding the market value of the house, garage, and immediately
surrounding one acre of land. The credit
is equal to 0.3 percent of the first $115,000 of the property's agricultural
credit market value minus .05 plus 0.1 percent of the property's
agricultural credit market value in excess of $115,000, subject to a maximum reduction
credit of $115 $490.
In the case of property that is classified as part homestead and part
nonhomestead solely because not all the owners occupy or farm the property, not
all the owners have qualifying relatives occupying or farming the property, or
solely because not all the spouses of owners occupy the property, the credit
must be initially computed as if that nonhomestead agricultural land was also
classified as agricultural homestead and then prorated to the owner-occupant's
percentage of ownership.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2015.
Sec. 3. Minnesota Statutes 2013 Supplement, section 273.1398, subdivision 4, is amended to read:
Subd. 4. Disparity
reduction credit. (a) Beginning
with taxes payable in 1989, Class 4a and class 3a property qualifies for a
disparity reduction credit if: (1) the
property is located in a border city that has an enterprise zone, as defined in
section 469.166; (2) the property is located in a city with a population
greater than 2,500 and less than 35,000 according to the 1980 decennial census;
(3) the city is adjacent to a city in another state or immediately adjacent to
a city adjacent to a city in another state; and (4) the adjacent city in the
other state has a population of greater than 5,000 and less than 75,000
according to the 1980 decennial census.
(b)
The credit is an amount sufficient to reduce (i) the taxes levied on class 4a
property to 1.9 1.7 percent of the property's taxable market
value and (ii) the tax on class 3a property to 1.9 1.7 percent of
taxable market value.
(c) The county auditor shall annually certify the costs of the credits to the Department of Revenue. The department shall reimburse local governments for the property taxes forgone as the result of the credits in proportion to their total levies.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2015.
Sec. 4. Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 2, is amended to read:
Subd. 2. Allocation. (a) Of the total amount appropriated as supplemental state aid:
(1) 58.065 58.064 percent must
be paid to the executive director of the Public Employees Retirement
Association for deposit in the public employees police and fire retirement fund
established by section 353.65, subdivision 1;
(2) 35.484 percent must be paid to municipalities other than municipalities solely employing firefighters with retirement coverage provided by the public employees police and fire retirement plan which qualified to receive fire state aid in that calendar year, allocated in proportion to the most recent amount of fire state aid paid under section 69.021, subdivision 7, for the municipality bears to the most recent total fire state aid for all municipalities other than the municipalities solely employing firefighters with retirement coverage provided by the public employees police and fire retirement plan paid under section 69.021, subdivision 7, with the allocated amount for fire departments participating in the voluntary statewide lump-sum volunteer firefighter retirement plan paid to the executive director of the Public Employees Retirement Association for deposit in the fund established by section 353G.02, subdivision 3, and credited to the respective account and with the balance paid to the treasurer of each municipality for transmittal within 30 days of receipt to the treasurer of the applicable volunteer firefighter relief association for deposit in its special fund; and
(3) 6.452 percent must be paid to the executive director of the Minnesota State Retirement System for deposit in the state patrol retirement fund.
(b) For purposes of this section, the
term "municipalities" includes independent nonprofit firefighting
corporations that participate in the voluntary statewide lump-sum volunteer
firefighter retirement plan under chapter 356G or with subsidiary volunteer
firefighter relief associations operating under chapter 424A.
Sec. 5. Minnesota Statutes 2013 Supplement, section 477A.013, subdivision 8, is amended to read:
Subd. 8. City formula aid. (a) For aids payable in 2014 only, the formula aid for a city is equal to the sum of (1) its 2013 certified aid, and (2) the product of (i) the difference between its unmet need and its 2013 certified aid, and (ii) the aid gap percentage.
(b) For aids payable in 2015 and thereafter,
the formula aid for a city is equal to the sum of (1) its formula aid in the
previous year and (2) the product of (i) the difference between its unmet need
and its certified formula aid in the previous year under
subdivision 9, and (ii) the aid gap percentage.
(c) For aids payable in 2015 and
thereafter, if a city's certified aid from the previous year is greater than
the sum of its unmet need plus its aid adjustment under subdivision 13, its
formula aid is adjusted to equal its unmet need.
(d) No city may have a formula aid amount less than zero. The aid gap percentage must be the same for all cities subject to paragraph (b).
(e) The applicable aid gap percentage must be calculated by the Department of Revenue so that the total of the aid under subdivision 9 equals the total amount available for aid under section 477A.03. Data used in calculating aids to cities under sections 477A.011 to 477A.013 shall be the most recently available data as of January 1 in the year in which the aid is calculated.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2015 and thereafter.
Sec. 6. Minnesota Statutes 2013 Supplement, section 477A.03, subdivision 2a, is amended to read:
Subd. 2a. Cities. For aids payable in 2014, the total aid
paid under section 477A.013, subdivision 9, is $507,598,012. The total aid paid under section 477A.013,
subdivision 9, is $509,098,012 for aids payable in 2015. For aids payable in 2016 2015
and thereafter, the total aid paid under section 477A.013, subdivision 9, is $511,598,012
the amount certified under that section in the previous year, multiplied by
the inflation adjustment under subdivision 6.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2015 and thereafter.
Sec. 7. Minnesota Statutes 2012, section 477A.03, is amended by adding a subdivision to read:
Subd. 6. Inflation
adjustment. In 2015 and
thereafter, the amount paid under subdivision 2a shall be multiplied by an amount
equal to one plus the sum of (1) the percentage increase in the implicit price
deflator for government expenditures and gross investment for state and local
government purchases as prepared by the United States Department of Commerce,
for the 12-month period ending March 31 of the previous calendar year, and (2)
the percentage increase in total city population for the most recently
available years as of January 15 of the current year. The percentage increase in this subdivision
shall not be greater than five percent.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2015 and thereafter.
Sec. 8. [477A.18]
PRODUCTION PROPERTY TRANSITION AID.
Subdivision 1. Definitions. (a) When used in this section, the
following terms have the meanings indicated in this subdivision.
(b) "Local unit" means a home
rule charter or statutory city, or a town.
(c) "Net tax capacity
differential" means the positive difference, if any, by which the local
unit's net tax capacity was reduced from assessment year 2014 to assessment
year 2015 due to the change in the definition of real property in section
272.03, subdivision 1, enacted by article 2, section 6, of this act. For purposes of determining the net tax
capacity differential, any property in a job opportunity building zone under
section 469.314 may not be included when calculating a local unit's net tax
capacity.
Subd. 2. Aid
eligibility; payment. (a) If
the net tax capacity differential of the local unit exceeds five percent of its
2015 net tax capacity, the local unit is eligible for transition aid computed
under paragraphs (b) to (f).
(b) For aids payable in 2016,
transition aid under this section for an eligible local unit equals (1) the net
tax capacity differential, times (2) the jurisdiction's tax rate for taxes
payable in 2015.
(c) For aids payable in 2017,
transition aid under this section for an eligible local unit equals 80 percent
of (1) the net tax capacity differential, times (2) the jurisdiction's tax rate
for taxes payable in 2016.
(d)
For aids payable in 2018, transition aid under this section for an eligible
local unit equals 60 percent of (1) the net tax capacity differential, times
(2) the jurisdiction's tax rate for taxes payable in 2017.
(e) For aids payable in 2019,
transition aid under this section for an eligible local unit equals 40 percent
of (1) the net tax capacity differential, times (2) the jurisdiction's tax rate
for taxes payable in 2018.
(f) For aids payable in 2020,
transition aid under this section for an eligible local unit equals 20 percent
of (1) the net tax capacity differential, times (2) the jurisdiction's tax rate
for taxes payable in 2019.
(g) No aids shall be payable under this
section in 2021 and thereafter.
(h) The commissioner of revenue shall
compute the amount of transition aid payable to each local unit under this
section. On or before August 1 of each
year, the commissioner shall certify the amount of transition aid computed for
aids payable in the following year for each recipient local unit. The commissioner shall pay transition aid to
local units annually at the times provided in section 477A.015.
(i) The commissioner of revenue may
require counties to provide any data that the commissioner deems necessary to
administer this section.
Subd. 3. Appropriation. An amount sufficient to pay transition
aid under this section is annually appropriated to the commissioner of revenue
from the general fund.
EFFECTIVE
DATE. This section is
effective beginning with assessment year 2015.
Sec. 9. SUPPLEMENTAL
COUNTY PROGRAM AID FOR 2014.
(a) Each county whose certified aid for
2014 under Minnesota Statutes, section 477A.0124, is less than the aid it
received under that section in 2013 shall be eligible for supplemental aid in
2014 equal to the difference between the amount received in 2013 and the amount
certified for 2014.
(b) The aid under this section shall be
paid in the same manner and at the same time as the regular aid payments under
Minnesota Statutes, section 477A.0124.
(c) The amount necessary to pay
supplemental aid under this section is appropriated from the general fund to
the commissioner of revenue.
EFFECTIVE
DATE. This section is
effective July 1, 2014.
Sec. 10. SUPPLEMENTAL
CREDIT FOR TAXES PAYABLE IN 2014 ONLY.
Subdivision 1. Eligibility. Each agricultural homestead qualifying
for a credit for taxes payable in 2014 under Minnesota Statutes, section
273.1384, is eligible for a supplemental credit equal to the lesser of (i)
$230, or (ii) the net property taxes payable on the property, excluding the
taxes attributable to the house, garage, and surrounding one acre of land. A supplemental credit must not be paid to any
property that has delinquent property taxes.
By August 15, 2014, the county auditor must notify the commissioner of
revenue of the name and address of the property owner of each homestead that
received an agricultural credit for taxes payable in 2014, along with the net
taxes due upon the agricultural homestead, whether there are any delinquent
taxes on the property, and whatever other information the commissioner deems
necessary, in a form prescribed by the commissioner.
Subd. 2. Payment
of supplemental credit. The
commissioner must pay supplemental credit amounts to each qualifying taxpayer
by October 15, 2014.
Subd. 3. Property
tax statements for taxes payable in 2015.
In preparing proposed property tax notices for taxes payable in
2015 under Minnesota Statutes, section 275.065, and final property tax
statements for taxes payable in 2015 under Minnesota Statutes, section 276.04,
the auditor must indicate that the taxpayer may have received a supplemental
credit under this section for taxes payable in 2014.
Subd. 4. Appropriation. The amount necessary to make the
payments required under subdivision 2 is appropriated from the general fund to
the commissioner of revenue for fiscal year 2015.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 11. HOMESTEAD
CREDIT REFUND AND RENTER PROPERTY TAX REFUND INCREASE.
Subdivision 1. Homestead
credit refund increase. For
claims filed based on taxes payable in 2014, the commissioner shall increase by
three percent the refund otherwise payable under Minnesota Statutes, section
290A.04, subdivision 2.
Subd. 2. Renter
property tax refund increase. For
claims filed based on rent paid in 2013, the commissioner shall increase by five percent the refund
otherwise payable under Minnesota Statutes, section 290A.04, subdivision 2a.
Subd. 3. Appropriation. The amount necessary to make the
payments required under this section in fiscal years 2015 and 2016 is
appropriated from the general fund to the commissioner of revenue.
EFFECTIVE
DATE. This section is
effective for refund claims based on taxes payable in 2014 and rent paid in
2013 only.
Sec. 12. 2013
CITY AID PENALTY FORGIVENESS; CITY OF BLUFFTON.
Notwithstanding Minnesota Statutes,
section 477A.017, subdivision 3, the city of Bluffton shall receive the half of
its aid payments for calendar years 2011, 2012, and 2013 under Minnesota
Statutes, section 477A.013, that were withheld under Minnesota Statutes,
section 477A.017, subdivision 3, provided that the state auditor certifies to
the commissioner of revenue that it received audited financial statements from
the city for calendar years 2010, 2011, and 2012 by December 31, 2013, and for
calendar year 2013 by June 30, 2014. The
commissioner of revenue shall make a payment of $20,000 with the first payment
of aids under Minnesota Statutes, section 477A.015, in calendar year 2014. The commissioner shall pay the remaining
amount, totaling $28,151.50, with the first payment of aids under Minnesota
Statutes, section 477A.015, in calendar year 2015. $20,000 in fiscal year 2015 and $28,151.50 in
fiscal year 2016 are appropriated from the general fund to the commissioner of
revenue to make payments under this section.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 13. ADDITIONAL
SUPPLEMENTAL AID REVISION FOR OMITTED 2013 INDEPENDENT NONPROFIT FIREFIGHTING
CORPORATIONS.
(a) Notwithstanding any provision of
Minnesota Statutes, chapter 423A, to the contrary, this section modifies the
allocation of the police and fire supplemental retirement state aid under
Minnesota Statutes 2013 Supplement, section 423A.022, for October 1, 2014.
(b) Before the allocation of the police
and fire supplemental retirement state aid is made for October 1, 2014, the
commissioner of revenue shall:
(1)
determine those fire departments that qualified for fire state aid under
Minnesota Statutes 2012, section 69.021, subdivision 7, on October 1, 2013, did
not receive a 2013 allocation of police and fire supplemental retirement state
aid, and were an independent nonprofit firefighting corporation; and
(2) determine the amount of police and
fire supplemental retirement state aid under Minnesota Statutes 2013
Supplement, section 423A.022, that the fire departments described in clause (1)
would have received on October 1, 2013, if the fire departments had been
included in that allocation.
(c) The total amount determined in
paragraph (b), clause (2), must be deducted from the amount available for
allocation under Minnesota Statutes 2013 Supplement, section 423A.022,
subdivision 2, clause (2), and the commissioner of revenue shall pay to the
fire departments determined in paragraph (b), clause (1), their respective
portion of the total as an additional payment on October 1, 2014.
(d) The remaining amount after the
deduction of the total amount under paragraph (c) must be allocated as provided
in section 1.
ARTICLE 2
PROPERTY TAXES
Section 1. Minnesota Statutes 2012, section 272.02, subdivision 10, is amended to read:
Subd. 10. Personal property used for pollution control. Personal property used primarily for the abatement and control of air, water, or land pollution is exempt to the extent that it is so used, and real property is exempt if it is used primarily for abatement and control of air, water, or land pollution as part of an agricultural operation, as a part of a centralized treatment and recovery facility operating under a permit issued by the Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater treatment facility and for the treatment, recovery, and stabilization of metals, oils, chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as part of an electric generation system. For purposes of this subdivision, personal property includes ponderous machinery and equipment used in a business or production activity that at common law is considered real property.
Any taxpayer requesting exemption of all or a portion of any real property or any equipment or device, or part thereof, operated primarily for the control or abatement of air, water, or land pollution shall file an application with the commissioner of revenue. If the property is an electric power generation facility located in a city, then the commissioner shall notify the county assessor and city finance officer of the jurisdictions that host the facility that the application has been received. The Minnesota Pollution Control Agency shall upon request of the commissioner furnish information and advice to the commissioner.
The information and advice furnished by the Minnesota Pollution Control Agency must include statements as to whether the equipment, device, or real property meets a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution Control Agency, and whether the equipment, device, or real property is installed or operated in accordance with it. On determining that property qualifies for exemption, the commissioner shall issue an order exempting the property from taxation. If the property is an electric power generation facility located in a city, then the commissioner shall provide notification of the order to the county assessor and city finance officer of the jurisdictions that host the facility. The equipment, device, or real property shall continue to be exempt from taxation as long as the order issued by the commissioner remains in effect.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2012, section 272.02, subdivision 24, is amended to read:
Subd. 24. Electric
power photovoltaic devices Solar energy-generating systems. Photovoltaic devices Personal
property consisting of solar energy-generating systems, as defined in
section 216C.06, subdivision 16 272.0295, installed after
January 1, 1992, and used to produce or store electric power are is
exempt. The value of the real
property on which the solar energy-generating system is located shall be valued
in the same manner as similar real property that has not been improved with a
solar energy-generating system. The real
property shall be classified based on the most probable use of the property if
it was not improved with a solar energy-generating system.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2015.
Sec. 3. Minnesota Statutes 2012, section 272.0211, subdivision 1, is amended to read:
Subdivision 1. Efficiency determination and certification. An owner or operator of a new or existing electric power generation facility, excluding wind energy conversion systems, may apply to the commissioner of revenue for a market value exclusion on the property as provided for in this section. This exclusion shall apply only to the market value of the equipment of the facility, and shall not apply to the structures and the land upon which the facility is located. The commissioner of revenue shall prescribe the forms and procedures for this application. Upon receiving the application, the commissioner of revenue shall: (1) request the commissioner of commerce to make a determination of the efficiency of the applicant's electric power generation facility; and (2), if the facility is in a city, notify the county assessor and city finance officer of the jurisdictions that host the facility that an application for an exclusion is being processed. The commissioner of commerce shall calculate efficiency as the ratio of useful energy outputs to energy inputs, expressed as a percentage, based on the performance of the facility's equipment during normal full load operation. The commissioner must include in this formula the energy used in any on-site preparation of materials necessary to convert the materials into the fuel used to generate electricity, such as a process to gasify petroleum coke. The commissioner shall use the Higher Heating Value (HHV) for all substances in the commissioner's efficiency calculations, except for wood for fuel in a biomass-eligible project under section 216B.2424; for these instances, the commissioner shall adjust the heating value to allow for energy consumed for evaporation of the moisture in the wood. The applicant shall provide the commissioner of commerce with whatever information the commissioner deems necessary to make the determination. Within 30 days of the receipt of the necessary information, the commissioner of commerce shall certify the findings of the efficiency determination to the commissioner of revenue and to the applicant. The commissioner of commerce shall determine the efficiency of the facility and certify the findings of that determination to the commissioner of revenue every two years thereafter from the date of the original certification.
EFFECTIVE
DATE. This section is
effective beginning with assessment year 2014.
Sec. 4. Minnesota Statutes 2012, section 272.0211, subdivision 2, is amended to read:
Subd. 2. Sliding
scale exclusion. Based upon the
efficiency determination provided by the commissioner of commerce as described
in subdivision 1, the commissioner of revenue shall subtract eight percent of
the taxable market value of the qualifying property for each percentage point
that the efficiency of the specific facility, as determined by the commissioner
of commerce, is above 40 percent. The
reduction in taxable market value shall be reflected in the taxable market
value of the facility beginning with the assessment year immediately following
the determination. For a facility
that is assessed by the county in which the facility is located, The
commissioner of revenue shall certify to the assessor of that county and, if
located in a city, the finance officer of that city, the percentage of the
taxable market value of the facility to be excluded.
EFFECTIVE
DATE. This section is
effective beginning with assessment year 2014.
Sec. 5. [272.0295]
SOLAR ENERGY PRODUCTION TAX.
Subdivision 1. Production
tax. A tax is imposed on the
production of electricity from a solar energy-generating system used as an
electric power source.
Subd. 2. Definitions. (a) For the purposes of this section,
the term "solar energy-generating system" means a set of devices
whose primary purpose is to produce electricity by means of any combination of
collecting, transferring, or converting solar-generated energy.
(b) The total size of a solar
energy-generating system under this subdivision shall be determined according
to this paragraph. Unless the systems
are interconnected with different distribution systems, the nameplate capacity
of a solar energy-generating system shall be combined with the nameplate
capacity of any other solar energy-generating system that is:
(1) constructed within the same
12-month period as the solar energy-generating system; and
(2) exhibits characteristics of being a
single development, including but not limited to ownership structure, an
umbrella sales arrangement, shared interconnection, revenue-sharing
arrangements, and common debt or equity financing.
In the case of a dispute, the commissioner of commerce
shall determine the total size of the system and shall draw all reasonable
inferences in favor of combining the systems.
(c) In making a determination under
paragraph (b), the commissioner of commerce may determine that two solar energy-generating
systems are under common ownership when the underlying ownership structure
contains similar persons or entities, even if the ownership shares differ
between the two systems. Solar
energy-generating systems are not under common ownership solely because the
same person or entity provided equity financing for the systems.
Subd. 3. Rate
of tax. (a) For a solar
energy-generating system with a capacity exceeding one megawatt alternating
current, the tax is $1.20 per megawatt-hour.
(b) A solar energy-generating system
with a capacity of one megawatt alternating current or less is exempt from the
tax imposed under this section.
Subd. 4. Reports. An owner of a solar energy-generating
system subject to tax under this section shall file a report with the
commissioner of revenue annually on or before January 15 detailing the amount
of electricity in megawatt-hours that was produced by the system in the
previous calendar year. The commissioner
shall prescribe the form of the report. The
report must contain the information required by the commissioner to determine
the tax due to each county under this section for the current year. If an owner of a solar energy-generating
system subject to taxation under this section fails to file the report by the
due date, the commissioner of revenue shall determine the tax based upon the
nameplate capacity of the system multiplied by a capacity factor of 30 percent.
Subd. 5. Notification
of tax. (a) On or before
February 28, the commissioner of revenue shall notify the owner of each solar
energy-generating system of the tax due to each county for the current year and
shall certify to the county auditor of each county in which the system is
located the tax due from each owner for the current year.
(b) If the commissioner of revenue
determines that the amount of production tax has been erroneously calculated,
the commissioner may correct the error. The
commissioner must notify the owner of the solar energy-generating system of the
correction and the amount of tax due to each county and must certify the
correction to the county auditor of each county in which the system is located
on or before April 1 of the current year.
Subd. 6. Payment
of tax; collection. The
amount of production tax determined under subdivision 5 must be paid to the
county treasurer at the time and in the manner provided for payment of property
taxes under section 277.01, subdivision 3, and, if unpaid, is subject to the
same enforcement, collection, and interest and penalties as delinquent personal
property taxes. Except to the extent
inconsistent with this section, the provisions of sections 277.01 to 277.24 and
278.01 to 278.14 apply to the taxes imposed under this section, and for
purposes of those provisions, the taxes imposed under this section are
considered personal property taxes.
Subd. 7. Distribution
of revenues. Revenues from
the taxes imposed under this section must be part of the settlement between the
county treasurer and the county auditor under section 276.09. The revenue must be distributed by the county
auditor or the county treasurer to local taxing jurisdictions in which the
solar energy-generating system is located as follows: 80 percent to counties; and 20 percent to
cities and townships.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2015.
Sec. 6. Minnesota Statutes 2012, section 272.03, subdivision 1, is amended to read:
Subdivision 1. Real property. (a) For the purposes of taxation, "real property" includes the land itself, rails, ties, and other track materials annexed to the land, and all buildings, structures, and improvements or other fixtures on it, bridges of bridge companies, and all rights and privileges belonging or appertaining to the land, and all mines, iron ore and taconite minerals not otherwise exempt, quarries, fossils, and trees on or under it.
(b) A building or structure shall include the building or structure itself, together with all improvements or fixtures annexed to the building or structure, which are integrated with and of permanent benefit to the building or structure, regardless of the present use of the building, and which cannot be removed without substantial damage to itself or to the building or structure.
(c)(i) Real property does not include tools, implements, machinery, and equipment attached to or installed in real property for use in the business or production activity conducted thereon, regardless of size, weight or method of attachment, and mine shafts, tunnels, and other underground openings used to extract ores and minerals taxed under chapter 298 together with steel, concrete, and other materials used to support such openings.
(ii) The exclusion provided in clause (i) shall not apply to machinery and equipment includable as real estate by paragraphs (a) and (b) even though such machinery and equipment is used in the business or production activity conducted on the real property if and to the extent such business or production activity consists of furnishing services or products to other buildings or structures which are subject to taxation under this chapter.
(iii) The exclusion provided in clause (i) does not apply to the exterior shell of a structure which constitutes walls, ceilings, roofs, or floors if the shell of the structure has structural, insulation, or temperature control functions or provides protection from the elements, unless the structure is primarily used in the production of biofuels, wine, beer, distilled beverages, or dairy products. Such an exterior shell is included in the definition of real property even if it also has special functions distinct from that of a building, or if such an exterior shell is primarily used for the storage of ingredients or materials used in the production of biofuels, wine, beer, distilled beverages, or dairy products, or for the storage of finished biofuels, wine, beer, distilled beverages, or dairy products.
(d) The term real property does not include tools, implements, machinery, equipment, poles, lines, cables, wires, conduit, and station connections which are part of a telephone communications system, regardless of attachment to or installation in real property and regardless of size, weight, or method of attachment or installation.
EFFECTIVE
DATE. This section is
effective beginning with assessment year 2015.
Sec. 7. Minnesota Statutes 2012, section 273.13, subdivision 34, is amended to read:
Subd. 34. Homestead of disabled veteran or family caregiver. (a) All or a portion of the market value of property owned by a veteran and serving as the veteran's homestead under this section is excluded in determining the property's taxable market value if the veteran has a service-connected disability of 70 percent or more as certified by the United States Department of Veterans Affairs. To qualify for exclusion under this subdivision, the veteran must have been honorably discharged from the United States armed forces, as indicated by United States Government Form DD214 or other official military discharge papers.
(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded, except as provided in clause (2); and
(2) for a total (100 percent) and permanent disability, $300,000 of market value is excluded.
(c) If a disabled veteran qualifying for a
valuation exclusion under paragraph (b), clause (2), predeceases the veteran's
spouse, and if upon the death of the veteran the spouse holds the legal or
beneficial title to the homestead and permanently resides there, the exclusion
shall carry over to the benefit of the veteran's spouse for the current taxes
payable year and for five eight additional taxes payable years or
until such time as the spouse remarries, or sells, transfers, or otherwise
disposes of the property, whichever comes first. Qualification under this paragraph requires
an annual application under paragraph (h).
(d) If the spouse of a member of any
branch or unit of the United States armed forces who dies due to a
service-connected cause while serving honorably in active service, as indicated
on United States Government Form DD1300 or DD2064, holds the legal or
beneficial title to a homestead and permanently resides there, the spouse is
entitled to the benefit described in paragraph (b), clause (2), for five
eight taxes payable years, or until such time as the spouse remarries or
sells, transfers, or otherwise disposes of the property, whichever comes first.
(e) If a veteran meets the disability criteria of paragraph (a) but does not own property classified as homestead in the state of Minnesota, then the homestead of the veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify for under paragraph (b).
(f) In the case of an agricultural homestead, only the portion of the property consisting of the house and garage and immediately surrounding one acre of land qualifies for the valuation exclusion under this subdivision.
(g) A property qualifying for a valuation exclusion under this subdivision is not eligible for the market value exclusion under subdivision 35, or classification under subdivision 22, paragraph (b).
(h) To qualify for a valuation exclusion under this subdivision a property owner must apply to the assessor by July 1 of each assessment year, except that an annual reapplication is not required once a property has been accepted for a valuation exclusion under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and the property continues to qualify until there is a change in ownership. For an application received after July 1 of any calendar year, the exclusion shall become effective for the following assessment year.
(i) A first-time application by a qualifying spouse for the market value exclusion under paragraph (d) must be made any time within two years of the death of the service member.
(j) For purposes of this subdivision:
(1) "active service" has the meaning given in section 190.05;
(2) "own" means that the person's name is present as an owner on the property deed;
(3) "primary family caregiver" means a person who is approved by the secretary of the United States Department of Veterans Affairs for assistance as the primary provider of personal care services for an eligible veteran under the Program of Comprehensive Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G; and
(4) "veteran" has the meaning given the term in section 197.447.
(k) The purpose of this provision of law providing a level of homestead property tax relief for gravely disabled veterans, their primary family caregivers, and their surviving spouses is to help ease the burdens of war for those among our state's citizens who bear those burdens most heavily.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2015, and applies to homesteads that initially
qualified for the exclusion for taxes payable in 2009 and thereafter.
Sec. 8. Minnesota Statutes 2012, section 275.025, subdivision 2, is amended to read:
Subd. 2. Commercial-industrial
tax capacity. For the purposes of
this section, "commercial-industrial tax capacity" means the tax
capacity of all taxable property classified as class 3 or class 5(1) under
section 273.13, except for excluding:
(1) the first tier of commercial-industrial value as defined under
section 273.13, subdivision 24; (2) electric generation attached machinery
under class 3; and (3) property described in section 473.625. County commercial-industrial tax capacity
amounts are not adjusted for the captured net tax capacity of a tax increment
financing district under section 469.177, subdivision 2, the net tax capacity
of transmission lines deducted from a local government's total net tax capacity
under section 273.425, or fiscal disparities contribution and distribution net
tax capacities under chapter 276A or 473F.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2015.
Sec. 9. Minnesota Statutes 2012, 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 30, each taxing
authority, other than a school district, shall adopt a proposed budget and county
and each home rule charter or statutory city 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.
(b) Notwithstanding any law or charter to
the contrary, on or before September 15, each town and each special taxing
district shall adopt and certify to the county auditor a proposed property tax
levy for taxes payable in the following year.
For towns, the final certified levy shall also be considered the
proposed levy.
(c) 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)
(d) 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 date specified
in paragraph (a), the city shall be deemed to have certified its levies for
those taxing jurisdictions.
(d) (e) For purposes of this
section, "taxing authority" includes all home rule and statutory
cities, towns, counties, school districts, and "special taxing
district" means a special taxing districts district 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) (f) At the meeting at
which the a taxing authority, other than a town, adopts its
proposed tax levy under paragraph (a) or (b) this subdivision,
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 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.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2015.
ARTICLE 3
SALES, USE, AND EXCISE TAXES
Section 1. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 2, is amended to read:
Subd. 2. Qualified business. (a) A business is a qualified business if it satisfies the requirement of this paragraph and is not disqualified under the provisions of paragraph (b). To qualify, the business must:
(1) have operated its trade or business in a city or cities in greater Minnesota for at least one year before applying under subdivision 3;
(2) pay or agree to pay in the future each employee compensation, including benefits not mandated by law, that on an annualized basis equal at least 120 percent of the federal poverty level for a family of four;
(3) plan and agree to expand its employment in one or more cities in greater Minnesota by the minimum number of employees required under subdivision 3, paragraph (c); and
(4) have received certification from the commissioner under subdivision 3 that it is a qualified business.
(b) A business is not a qualified business if it is either:
(1) primarily engaged in making retail
sales to purchasers who are physically present at the business's location or
locations in greater Minnesota; or
(2) a public utility, as defined in section
336B.01; or
(3) primarily engaged in lobbying; gambling; entertainment; professional sports; political consulting; leisure; hospitality; or professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants.
(c) The requirements in paragraph (a) that the business's operations and expansion be located in a city do not apply to an agricultural processing facility.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 3, is amended to read:
Subd. 3. Certification of qualified business. (a) A business may apply to the commissioner for certification as a qualified business under this section. The commissioner shall specify the form of the application, the manner and times for applying, and the information required to be included in the application. The commissioner may impose an application fee in an amount sufficient to defray the commissioner's cost of processing certifications. A business must file a copy of its application with the chief clerical officer of the city at the same time it applies to the commissioner. For an agricultural processing facility located outside the boundaries of a city, the business must file a copy of the application with the county auditor.
(b) The commissioner shall certify each business as a qualified business that:
(1) satisfies the requirements of subdivision 2;
(2) the commissioner determines would not expand its operations in greater Minnesota without the tax incentives available under subdivision 4; and
(3) enters a business subsidy agreement with the commissioner that pledges to satisfy the minimum expansion requirements of paragraph (c) within three years or less following execution of the agreement.
The commissioner must act on an
application within 60 90 days after its filing. Failure by the commissioner to take action
within the 60-day 90-day period is deemed approval of the
application.
(c) The following minimum expansion
requirements apply, based on the number of employees of the business at
locations in greater Minnesota:
(1) a business that employs 50 or fewer
full-time equivalent employees in greater Minnesota when the agreement is
executed must increase its employment by five or more full-time equivalent
employees;
(2) a business that employs more than
50 but fewer than 200 full-time equivalent employees in greater Minnesota when
the agreement is executed must increase the number of its full-time equivalent
employees in greater Minnesota by at least ten percent; or
(3) a business that employs 200 or more
full-time equivalent employees in greater Minnesota when the agreement is
executed must increase its employment by at least 21 full-time equivalent
employees (c) The business must increase the number of full-time
equivalent employees in greater Minnesota from the time the business subsidy
agreement is executed by two employees or ten percent, whichever is greater.
(d) The city, or a county for an agricultural processing facility located outside the boundaries of a city, in which the business proposes to expand its operations may file comments supporting or opposing the application with the commissioner. The comments must be filed within 30 days after receipt by the city of the application and may include a notice of any contribution the city or county intends to make to encourage or support the business expansion, such as the use of tax increment financing, property tax abatement, additional city or county services, or other financial assistance.
(e) Certification of a qualified business
is effective for the 12-year seven-year period beginning on the
first day of the calendar month immediately following execution of the
business subsidy agreement the date that the commissioner informs the
business of the award of the benefit.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 4, is amended to read:
Subd. 4. Available
tax incentives. A qualified business
is entitled to a sales tax exemption, up to $2,000,000 annually and $10,000,000
during the total period of the agreement, as provided in section 297A.68,
subdivision 44, for purchases made during the period the business was certified
as a qualified business under this section.
The commissioner has discretion to set the maximum amounts of the
annual and total sales tax exemption allowed for each qualifying business as
part of the business subsidy agreement.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. [168A.125]
TRANSFER-ON-DEATH OF TITLE TO MOTOR VEHICLE.
Subdivision 1. Titled
as transfer-on-death. A motor
vehicle may be titled in transfer-on-death or TOD form by a natural person by
including in the certificate of title a designation of a beneficiary or
beneficiaries who are natural persons to whom the motor vehicle must be
transferred on death of the owner or the last survivor of joint owners with
rights of survivorship, subject to the rights of all secured parties.
Subd. 2. Designation
of beneficiary. A motor
vehicle is registered in transfer-on-death form by designating on the
certificate of title the name of the owner and the names of joint owners with
identification of rights of survivorship, followed by the words
"transfer-on-death to (name of beneficiary or beneficiaries)." The designation "TOD" may be used
instead of "transfer-on-death." A title in transfer-on-death form is not
required to be supported by consideration, and the certificate of title in
which the designation is made is not required to be delivered to the
beneficiary or beneficiaries in order for the designation to be effective.
Subd. 3. Interest
of beneficiary. The
transfer-on-death beneficiary or beneficiaries shall have no interest in the
motor vehicle until the death of the owner or the last survivor of the joint
owners with right of survivorship. A
beneficiary designation may be changed at any time by the owner or by all joint
owners with rights of survivorship, without the consent of the beneficiary or
beneficiaries, by filing an application for a new certificate of title.
Subd. 4. Vesting
of ownership in beneficiary. Ownership
of a motor vehicle titled in transfer-on-death form shall vest in the
designated beneficiary or beneficiaries on the death of the owner or the last
of the joint owners with right of survivorship, subject to the rights of all
secured parties. The transfer-on-death
beneficiary or beneficiaries who survive the owner may apply for a new
certificate of title to the motor vehicle upon submitting proof of the death of
the owner of the motor vehicle. If no
transfer-on-death beneficiary or beneficiaries survive the owner of a motor
vehicle, the motor vehicle must be included in the probate estate of the
deceased owner. A transfer of a motor
vehicle to a transfer-on-death beneficiary or beneficiaries is not a
testamentary transfer.
Subd. 5. Rights
of creditors. This section
does not limit the rights of any secured party or creditor of the owner of a
motor vehicle against a transfer-on-death beneficiary or beneficiaries.
Sec. 5. Minnesota Statutes 2013 Supplement, 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 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.
(b) A vendor having a liability of $120,000
$250,000 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 81.4
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
$250,000 during a fiscal year ending June 30, 2013, and fiscal years
thereafter, must remit by electronic means all liabilities on returns due for
periods beginning in all subsequent calendar years 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 $250,000 or
more, during a fiscal year ending June 30, 2009 2013, and fiscal
years thereafter, must remit by electronic means all liabilities in the manner
provided in paragraph (a) on returns due for periods beginning in the
subsequent calendar year, except for 90 81.4 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.
EFFECTIVE
DATE. This section is
effective for taxes remitted after May 30, 2014.
Sec. 6. Minnesota Statutes 2012, section 289A.60, subdivision 15, is amended to read:
Subd. 15. Accelerated
payment of June sales tax liability; penalty for underpayment. For payments made after December 31, 2006
2013, if a vendor is required by law to submit an estimation of June
sales tax liabilities and 90 81.4 percent payment by a certain
date, the vendor shall pay a penalty equal to ten percent of the amount of
actual June liability required to be paid in June less the amount remitted in
June. The penalty must not be imposed,
however, if the amount remitted in June equals the lesser of 90 81.4
percent of the preceding May's liability or 90 81.4 percent of
the average monthly liability for the previous calendar year.
EFFECTIVE
DATE. This section is
effective for taxes remitted after May 30, 2014.
Sec. 7. Minnesota Statutes 2012, section 297A.67, subdivision 13a, is amended to read:
Subd. 13a. Instructional materials. Instructional materials, other than textbooks, that are prescribed for use in conjunction with a course of study in a postsecondary school, college, university, or private career school to students who are regularly enrolled at such institutions are exempt. For purposes of this subdivision, "instructional materials" means materials required to be used directly in the completion of the course of study, including, but not limited to, interactive CDs, tapes, digital audio works, digital audiovisual works, and computer software.
Instructional materials do not include general reference works or other items incidental to the instructional process such as pens, pencils, paper, folders, or computers. For purposes of this subdivision, "school" and "private career school" have the meanings given in subdivision 13.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2012, section 297A.67, is amended by adding a subdivision to read:
Subd. 33. Presentations
accessed as digital audio and audiovisual works. The charge for a live or prerecorded
presentation, such as a lecture, seminar, workshop, or course, where
participants access the presentation as a digital audio work or digital
audiovisual work, and are connected to the presentation via the Internet,
telecommunications equipment or other device that transfers the presentation electronically,
is exempt if:
(1) participants and the presenter,
during the time that participants access the presentation, are able to give,
receive, and discuss the presentation with each other, although the amount of
interaction and when in the presentation the interaction occurs may be limited
by the presenter; and
(2) for those presentations where
participants are given the option to attend the same presentation in person:
(i) any limitations on the amount of
interaction and when it occurs during the presentation are the same for those
participants accessing the presentation electronically as those attending in
person; and
(ii) the admission to the in person
presentation is not subject to tax under this chapter.
EFFECTIVE
DATE. This section is effective
for sales and purchases made after June 30, 2014.
Sec. 9. Minnesota Statutes 2012, section 297A.68, is amended by adding a subdivision to read:
Subd. 3a. Coin-operated
entertainment and amusement devices.
Coin-operated entertainment and amusement devices, including, but
not limited to, fortune-telling machines, cranes, foosball and pool tables,
video and pinball games, batting cages, rides, photo or video booths, and
jukeboxes, are exempt when purchased by retailers selling admission to places of
amusement and making available amusement devices as provided in section
297A.61, subdivision 3, paragraph (g), clause (1).
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2014.
Sec. 10. Minnesota Statutes 2013 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, or a qualified refurbished 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, or a qualified refurbished data center.
(b) Electricity used or consumed in the operation of a qualified data center, or a qualified refurbished data center, is exempt.
(c) For purposes of this subdivision,
"qualified data center, or a qualified refurbished data center,"
means a facility in Minnesota:
(1) that is comprised of one or more buildings that consist in the aggregate of at least 25,000 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 $30,000,000 within a 48-month period;
(2) that is constructed or substantially refurbished after June 30, 2012, where "substantially refurbished" means that at least 25,000 square feet have been rebuilt or modified, including:
(i) installation of enterprise information technology equipment, environmental control, computer software, 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 a qualified data center or a
qualified refurbished data center, including maintenance, licensing, and
software customization.
(d) For purposes of this subdivision, a "qualified refurbished data center" means an existing facility that qualifies as a data center under paragraph (c), clauses (2) and (3), but that is comprised of one or more buildings that consist in the aggregate of at least 25,000 square feet, and that are located on a single parcel or 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.
(e) 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 or a qualified
refurbished 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 a qualified
data center or a qualified refurbished data center.
(f) A qualified data center or a qualified refurbished 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.
(g) The purpose of this exemption is to create jobs in the construction and data center industries.
(h) This subdivision is effective for sales and purchases made after June 30, 2012, and before July 1, 2042.
EFFECTIVE
DATE. This section is
effective retroactively for sales and purchases made after June 30, 2013.
Sec. 11. Minnesota Statutes 2013 Supplement, section 297A.68, subdivision 44, is amended to read:
Subd. 44. Greater Minnesota business expansions. (a) Purchases and use of tangible personal property or taxable services by a qualified business, as defined in section 116J.8738, are exempt if:
(1) the business subsidy agreement provides that the exemption under this subdivision applies;
(2) the property or services are primarily used or consumed at the facility in greater Minnesota identified in the business subsidy agreement; and
(3) the purchase was made and delivery received during the duration of the certification of the business as a qualified business under section 116J.8738.
(b) Purchase and use of construction materials and supplies used or consumed in, and equipment incorporated into, the construction of improvements to real property in greater Minnesota are exempt if the improvements after completion of construction are to be used in the conduct of the trade or business of the qualified business, as defined in section 116J.8738. This exemption applies regardless of whether the purchases are made by the business or a contractor.
(c) The exemptions under this subdivision apply to a local sales and use tax.
(d) The tax on purchases imposed under this subdivision must be imposed and collected as if the rate under section 297A.62 applied, and then refunded in the manner provided in section 297A.75. The total amount refunded for a facility over the certification period is limited to the amount listed in the business subsidy agreement. No more than $7,000,000 may be refunded in a fiscal year for all purchases under this subdivision. Refunds must be allocated on a first-come, first-served basis. If more than $7,000,000 of eligible claims are made in a fiscal year, claims by qualified businesses carry over to the next fiscal year, and the commissioner must first allocate refunds to qualified businesses eligible for a refund in the preceding fiscal year. Any portion of the balance of funds allocated for refunds under this paragraph does not cancel and shall be carried forward to and available for refunds in subsequent fiscal years.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 12. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 2, is amended to read:
Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b), to the following governments and political subdivisions, or to the listed agencies or instrumentalities of governments and political subdivisions, are exempt:
(1) the United States and its agencies and instrumentalities;
(2) school districts, local governments, the University of Minnesota, state universities, community colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts Education, and an instrumentality of a political subdivision that is accredited as an optional/special function school by the North Central Association of Colleges and Schools;
(3) hospitals and nursing homes owned and operated by political subdivisions of the state of tangible personal property and taxable services used at or by hospitals and nursing homes;
(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip operations provided for in section 473.4051;
(5) other states or political subdivisions of other states, if the sale would be exempt from taxation if it occurred in that state; and
(6) public libraries, public library systems, multicounty, multitype library systems as defined in section 134.001, county law libraries under chapter 134A, state agency libraries, the state library under section 480.09, and the Legislative Reference Library.
(b) This exemption does not apply to the sales of the following products and services:
(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 which will not be used principally by the tax exempt entities;
(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except for leases entered into by the United States or its agencies or instrumentalities;
(4) 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 for lodging, prepared food, candy, soft drinks, and alcoholic beverages purchased directly by the United States or its agencies or instrumentalities; or
(5) goods or services purchased by a local
government as inputs to goods and services that are generally provided by a
private business and the purchases would be taxable if made by a private
business engaged in the same activity a liquor store, gas or electric
utility, solid waste hauling service, solid waste recycling service, landfill,
golf course, marina, health and fitness center, campground, cafe, or laundromat.
(c) As used in this subdivision, "school districts" means public school entities and districts of every kind and nature organized under the laws of the state of Minnesota, and any instrumentality of a school district, as defined in section 471.59.
(d) As used in this subdivision,
"local governments" means:
(1) home rule charter or statutory
cities,;
(2) counties, and;
(3) townships.;
(4) housing and redevelopment
authorities under sections 469.001 to 469.047;
(5) port authorities under sections
469.048 to 469.068;
(6) economic development authorities
under sections 469.090 to 469.1081; and
(7) any joint powers board or
organization created under section 471.59 provided that at least 50 percent or
more of the governmental units that are party to the joint powers agreement are
exempt from sales tax under clauses (1) to (6) or paragraph (a).
(e)
As used in this subdivision, "goods or services generally provided by a
private business" include, but are not limited to, goods or services
provided by liquor stores, gas and electric utilities, golf courses, marinas, health
and fitness centers, campgrounds, cafes, and laundromats. "Goods or services generally provided by
a private business" do not include housing services, sewer and water
services, wastewater treatment, ambulance and other public safety services,
correctional services, chore or homemaking services provided to elderly or
disabled individuals, or road and street maintenance or lighting.
EFFECTIVE
DATE. The amendment to
paragraph (d) is effective for sales and purchases made after June 30, 2015. The other amendments to this section are
effective for sales and purchases made after June 30, 2014.
Sec. 13. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 13, is amended to read:
Subd. 13. Fund-raising sales by or for nonprofit groups. (a) The following sales by the specified organizations for fund-raising purposes are exempt, subject to the limitations listed in paragraph (b):
(1) all sales made by a nonprofit organization that exists solely for the purpose of providing educational or social activities for young people primarily age 18 and under;
(2) all sales made by an organization that is a senior citizen group or association of groups if (i) in general it limits membership to persons age 55 or older; (ii) it is organized and operated exclusively for pleasure, recreation, and other nonprofit purposes; and (iii) no part of its net earnings inures to the benefit of any private shareholders;
(3) the sale or use of tickets or admissions to a golf tournament held in Minnesota if the beneficiary of the tournament's net proceeds qualifies as a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code; and
(4) sales of candy sold for fund-raising purposes by a nonprofit organization that provides educational and social activities primarily for young people age 18 and under.
(b) The exemptions listed in paragraph (a) are limited in the following manner:
(1) the exemption under paragraph (a),
clauses (1) and (2), applies only if to the first $20,000, as
adjusted under paragraph (e), of the gross annual receipts of the
organization from fund-raising do not exceed $10,000; and
(2) the exemption under paragraph (a), clause (1), does not apply if the sales are derived from admission charges or from activities for which the money must be deposited with the school district treasurer under section 123B.49, subdivision 2, or be recorded in the same manner as other revenues or expenditures of the school district under section 123B.49, subdivision 4.
(c) Sales of tangible personal property and services are exempt if the entire proceeds, less the necessary expenses for obtaining the property or services, will be contributed to a registered combined charitable organization described in section 43A.50, to be used exclusively for charitable, religious, or educational purposes, and the registered combined charitable organization has given its written permission for the sale. Sales that occur over a period of more than 24 days per year are not exempt under this paragraph.
(d) For purposes of this subdivision, a
club, association, or other organization of elementary or secondary school
students organized for the purpose of carrying on sports, educational, or other
extracurricular activities is a separate organization from the school district
or school for purposes of applying the $10,000 $20,000 limit,
as adjusted under paragraph (e).
(e)
By December 1, 2015, and every December 1 thereafter, the commissioner shall
calculate and publish an adjusted exemption limit for this subdivision. The adjusted limit is equal to $20,000
multiplied by the ratio of the Consumer Price Index for urban consumers for the
most recently available calendar year to the Consumer Price Index for urban
consumers for calendar year 2013, as prepared by the United States Bureau of
Labor Statistics.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2014.
Sec. 14. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 14, is amended to read:
Subd. 14. Fund-raising events sponsored by nonprofit groups. (a) Sales of tangible personal property or services at, and admission charges for fund-raising events sponsored by, a nonprofit organization are exempt if:
(1) all gross receipts are recorded as such, in accordance with generally accepted accounting practices, on the books of the nonprofit organization; and
(2) the entire proceeds, less the necessary expenses for the event, will be used solely and exclusively for charitable, religious, or educational purposes. Exempt sales include the sale of prepared food, candy, and soft drinks at the fund-raising event.
(b) This exemption is limited in the following manner:
(1) it does not apply to admission charges for events involving bingo or other gambling activities or to charges for use of amusement devices involving bingo or other gambling activities;
(2) all gross receipts are taxable if the profits are not used solely and exclusively for charitable, religious, or educational purposes;
(3) it does not apply unless the organization keeps a separate accounting record, including receipts and disbursements from each fund-raising event that documents all deductions from gross receipts with receipts and other records;
(4) it does not apply to any sale made by or in the name of a nonprofit corporation as the active or passive agent of a person that is not a nonprofit corporation;
(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;
(6) it does not apply to fund-raising events conducted on premises leased for more than five days but less than 30 days; and
(7) it does not apply if the risk of the event is not borne by the nonprofit organization and the benefit to the nonprofit organization is less than the total amount of the state and local tax revenues forgone by this exemption.
(c) For purposes of this subdivision, a "nonprofit organization" means any unit of government, corporation, society, association, foundation, or institution organized and operated for charitable, religious, educational, civic, fraternal, and senior citizens' or veterans' purposes, no part of the net earnings of which inures to the benefit of a private individual.
(d) For purposes of this subdivision,
"fund-raising events" means activities of limited duration, not
regularly carried out in the normal course of business, that attract patrons
for community, social, and entertainment purposes, such as auctions, bake
sales, ice cream socials, block parties, carnivals, competitions, concerts,
concession stands, craft sales, bazaars, dinners, dances, door-to-door sales of
merchandise, fairs, fashion shows, festivals, galas, special
event
workshops, sporting activities such as marathons and tournaments, and similar
events. Fund-raising events do not
include the operation of a regular place of business in which services are
provided or sales are made during regular hours such as bookstores, thrift
stores, gift shops, restaurants, ongoing Internet sales, regularly scheduled
classes, or other activities carried out in the normal course of business.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2014.
Sec. 15. Minnesota Statutes 2012, section 297A.71, is amended by adding a subdivision to read:
Subd. 49. Donated
materials for a library expansion. Building
materials and supplies purchased and donated by a private entity and used in
the construction of an addition to a city library facility are exempt.
EFFECTIVE
DATE. This section is
effective for materials and supplies used in construction occurring after April
1, 2014, and before July 1, 2015.
Sec. 16. Minnesota Statutes 2013 Supplement, section 297B.01, subdivision 16, is amended to read:
Subd. 16. Sale, sells, selling, purchase, purchased, or acquired. (a) "Sale," "sells," "selling," "purchase," "purchased," or "acquired" means any transfer of title of any motor vehicle, whether absolutely or conditionally, for a consideration in money or by exchange or barter for any purpose other than resale in the regular course of business.
(b) Any motor vehicle utilized by the owner only by leasing such vehicle to others or by holding it in an effort to so lease it, and which is put to no other use by the owner other than resale after such lease or effort to lease, shall be considered property purchased for resale.
(c) The terms also shall include any transfer of title or ownership of a motor vehicle by other means, for or without consideration, except that these terms shall not include:
(1) the acquisition of a motor vehicle by inheritance from or by bequest of, or transfer-on-death of title by, a decedent who owned it;
(2) the transfer of a motor vehicle which was previously licensed in the names of two or more joint tenants and subsequently transferred without monetary consideration to one or more of the joint tenants;
(3) the transfer of a motor vehicle by way of gift from a limited used vehicle dealer licensed under section 168.27, subdivision 4a, to an individual, when the transfer is with no monetary or other consideration or expectation of consideration and the parties to the transfer submit an affidavit to that effect at the time the title transfer is recorded;
(4) the transfer of a motor vehicle by gift between:
(i) spouses;
(ii) parents and a child; or
(iii) grandparents and a grandchild;
(5) the
voluntary or involuntary transfer of a motor vehicle between a husband and wife
in a divorce proceeding; or
(6) the transfer of a motor vehicle by way of a gift to an organization that is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code when the motor vehicle will be used exclusively for religious, charitable, or educational purposes.
Sec. 17. Minnesota Statutes 2012, section 297B.03, is amended to read:
297B.03
EXEMPTIONS.
There is specifically exempted from the provisions of this chapter and from computation of the amount of tax imposed by it the following:
(1) purchase or use, including use under a lease purchase agreement or installment sales contract made pursuant to section 465.71, of any motor vehicle by the United States and its agencies and instrumentalities and by any person described in and subject to the conditions provided in section 297A.67, subdivision 11;
(2) purchase or use of any motor vehicle by any person who was a resident of another state or country at the time of the purchase and who subsequently becomes a resident of Minnesota, provided the purchase occurred more than 60 days prior to the date such person began residing in the state of Minnesota and the motor vehicle was registered in the person's name in the other state or country;
(3) purchase or use of any motor vehicle by any person making a valid election to be taxed under the provisions of section 297A.90;
(4) purchase or use of any motor vehicle previously registered in the state of Minnesota when such transfer constitutes a transfer within the meaning of section 118, 331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal Revenue Code;
(5) purchase or use of any vehicle owned by a resident of another state and leased to a Minnesota-based private or for-hire carrier for regular use in the transportation of persons or property in interstate commerce provided the vehicle is titled in the state of the owner or secured party, and that state does not impose a sales tax or sales tax on motor vehicles used in interstate commerce;
(6) purchase or use of a motor vehicle by a private nonprofit or public educational institution for use as an instructional aid in automotive training programs operated by the institution. "Automotive training programs" includes motor vehicle body and mechanical repair courses but does not include driver education programs;
(7) purchase of a motor vehicle by an ambulance service licensed under section 144E.10 when that vehicle is equipped and specifically intended for emergency response or for providing ambulance service;
(8) purchase of a motor vehicle by or for a public library, as defined in section 134.001, subdivision 2, as a bookmobile or library delivery vehicle;
(9) purchase of a ready-mixed concrete truck;
(10) purchase or use of a motor vehicle by a
town home rule charter or statutory cities, counties, and townships or
any joint powers board or organization created under section 471.59 where at
least 50 percent of the members of the agreement are home rule charter or
statutory cities, counties, or townships, for use exclusively for road
maintenance, including snowplows and dump trucks, but not including
automobiles, vans, or pickup trucks;
(11) purchase or use of a motor vehicle by a corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes, except a public school, university, or library, but only if the vehicle is:
(i) 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
(ii) 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;
(12) purchase of a motor vehicle for use by a transit provider exclusively to provide transit service is exempt if the transit provider is either (i) receiving financial assistance or reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29, 473.388, or 473.405;
(13) purchase or use of a motor vehicle by a qualified business, as defined in section 469.310, located in a job opportunity building zone, if the motor vehicle is principally garaged in the job opportunity building zone and is primarily used as part of or in direct support of the person's operations carried on in the job opportunity building zone. The exemption under this clause applies to sales, if the purchase was made and delivery received during the duration of the job opportunity building zone. The exemption under this clause also applies to any local sales and use tax;
(14) purchase of a leased vehicle by the lessee who was a participant in a lease-to-own program from a charitable organization that is:
(i) described in section 501(c)(3) of the Internal Revenue Code; and
(ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4; and
(15) purchase of a motor vehicle used exclusively as a mobile medical unit for the provision of medical or dental services by a federally qualified health center, as defined under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus Budget Reconciliation Act of 1990.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2015.
Sec. 18. Minnesota Statutes 2012, section 297F.09, subdivision 10, is amended to read:
Subd. 10. Accelerated
tax payment; cigarette or tobacco products distributor. A cigarette or tobacco products
distributor having a liability of $120,000 $250,000 or more
during a fiscal year ending June 30, shall remit the June liability for the next
year in the following manner:
(a) Two business days before June 30 of the
year, the distributor shall remit the actual May liability and 90 81.4
percent of the estimated June liability to the commissioner and file the return
in the form and manner prescribed by the commissioner.
(b) On or before August 18 of the year, the distributor shall submit a return showing the actual June liability and pay any additional amount of tax not remitted in June. A penalty is imposed equal to ten percent of the amount of June liability required to be paid in June, less the amount remitted in June. However, the penalty is not imposed if the amount remitted in June equals the lesser of:
(1) 90 81.4 percent of the
actual June liability; or
(2)
90 81.4 percent of the preceding May's May
liability.
EFFECTIVE
DATE. This section is
effective for taxes remitted after May 30, 2014.
Sec. 19. Minnesota Statutes 2012, section 297G.03, is amended by adding a subdivision to read:
Subd. 5. Microdistillery
credit. (a) A qualified
distiller producing distilled spirits is entitled to a tax credit of $1.33 per
liter on 100,000 liters sold in any fiscal year beginning July 1. A qualified distiller 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) $133,000.
(b) For purposes of this subdivision,
"qualified distiller" means a microdistillery qualifying under
section 340A.101, subdivision 17a, in the calendar year immediately preceding
the calendar year for which the credit under this subdivision is claimed.
EFFECTIVE
DATE. This section is
effective July 1, 2014.
Sec. 20. Minnesota Statutes 2012, section 297G.09, subdivision 9, is amended to read:
Subd. 9. Accelerated
tax payment; penalty. A person
liable for tax under this chapter having a liability of $120,000 $250,000
or more during a fiscal year ending June 30, shall remit the June liability for
the next year in the following manner:
(a) Two business days before June 30 of the
year, the taxpayer shall remit the actual May liability and 90 81.4
percent of the estimated June liability to the commissioner and file the return
in the form and manner prescribed by the commissioner.
(b) On or before August 18 of the year, the taxpayer shall submit a return showing the actual June liability and pay any additional amount of tax not remitted in June. A penalty is imposed equal to ten percent of the amount of June liability required to be paid in June less the amount remitted in June. However, the penalty is not imposed if the amount remitted in June equals the lesser of:
(1) 90 81.4 percent of the
actual June liability; or
(2) 90 81.4 percent of the
preceding May liability.
EFFECTIVE
DATE. This section is effective
for taxes remitted after May 30, 2014.
Sec. 21. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 2003, First Special Session chapter 21, article 8, section 11, and Laws 2008, chapter 154, article 5, section 2, is amended to read:
Subd. 2. (a) Notwithstanding Minnesota
Statutes, section 477A.016, or any other law, ordinance, or city charter
provision to the contrary, the city of Duluth may, by ordinance, impose an
additional sales tax of up to two and one-quarter one and
three-quarter percent on sales transactions which are described in
Minnesota Statutes 2000, section 297A.01, subdivision 3, clause (c). When the city council determines that the
taxes imposed under this subdivision
and
under Laws 1998, chapter 389, article 8, section 26, at a rate of one-half of
one percent have produced revenue sufficient to pay (1) the debt service on
bonds in a principal amount of $8,000,000 issued for capital improvements to
the Duluth Entertainment and Convention Center, and (2) debt service on
outstanding bonds originally issued in the principal amount of $4,970,000 to
finance capital improvements to the Great Lakes Aquarium since the imposition
of the taxes at the rate of one and one-half percent, the rate of the tax under
this subdivision is reduced by one-half of one percent. The imposition of this tax shall not be
subject to voter referendum under either state law or city charter provisions. When the city council determines that the
taxes imposed under this subdivision paragraph at a rate of
three-quarters of one percent and other sources of revenue produce revenue
sufficient to pay debt service on bonds in the principal amount of $40,285,000
plus issuance and discount costs, issued for capital improvements at the Duluth
Entertainment and Convention Center, which include a new arena, the rate of tax
under this subdivision must be reduced by three-quarters of one percent.
(b) In addition to the tax in paragraph
(a) and notwithstanding Minnesota Statutes, section 477A.016, or any other law,
ordinance, or city charter provision to the contrary, the city of Duluth may,
by ordinance, impose an additional sales tax of up to one-half of one percent
on sales transactions which are described in Minnesota Statutes 2000, section
297A.01, subdivision 3, clause (c). This
tax expires when the city council determines that the tax imposed under this
paragraph, along with the tax imposed under section 22, paragraph (b), has
produced revenues sufficient to pay the debt service on bonds in a principal
amount of no more than $18,000,000, plus issuance and discount costs, to
finance capital improvements to public facilities to support tourism and
recreational activities in that portion of the city west of 34th Avenue West.
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Duluth and its chief
clerical officer comply with Minnesota Statutes, section 645.021, subdivisions
2 and 3.
Sec. 22. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, article 8, section 26, and Laws 2003, First Special Session chapter 21, article 8, section 12, is amended to read:
Sec. 22. CITY
OF DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS.
(a) Notwithstanding Minnesota
Statutes, section 477A.016, or any other law, or ordinance, or city charter
provision to the contrary, the city of Duluth may, by ordinance, impose an
additional tax of one and one-half percent upon the gross receipts from
the sale of lodging for periods of less than 30 days in hotels and motels
located in the city. When the city
council determines that the taxes imposed under this section and section 25 at
a rate of one-half of one percent have produced revenue sufficient to pay (1)
the debt service on bonds in a principal amount of $8,000,000 issued for
capital improvements for the Duluth Entertainment and Convention Center, and
(2) the debt service on outstanding bonds originally issued in the principal amount
of $4,970,000 to finance capital improvements to the Great Lakes Aquarium since
the imposition of the taxes at the rate of one and one-half percent, the rate
of the tax under this section is reduced to one percent. The tax shall be collected in the same manner
as the tax set forth in the Duluth city charter, section 54(d), paragraph one. The imposition of this tax shall not be
subject to voter referendum under either state law or city charter provisions.
(b) In addition to the tax in paragraph
(a) and notwithstanding Minnesota Statutes, section 477A.016, or any other law,
ordinance, or city charter provision to the contrary, the city of Duluth may,
by ordinance, impose an additional sales tax of up to one-half of one percent
on the gross receipts from the sale of lodging for periods of less than 30 days
in hotels and motels located in the city.
This tax expires when the city council first determines that the tax
imposed under this paragraph, along with the tax imposed under section 21,
paragraph (b), has produced revenues sufficient to pay the debt service on
bonds in a principal amount of no more than $18,000,000, plus issuance and
discount costs, to finance capital improvements to public facilities to support
tourism and recreational activities in that portion of the city west of 34th
Avenue West.
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Duluth and its chief
clerical officer comply with Minnesota Statutes, section 645.021, subdivisions
2 and 3.
Sec. 23. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 4, is amended to read:
Subd. 4. Termination
of taxes. The taxes imposed under
this section expire at the earlier of (1) ten 15 years after the
taxes are first imposed, or (2) when the city council first determines that the
amount of revenues raised to pay for the projects under subdivision 2, shall
meet or exceed the sum of $15,000,000. Any
funds remaining after completion of the projects may be placed in the general
fund of the city.
EFFECTIVE
DATE. This section is
effective the day after compliance by the governing body of the city of Albert
Lea and its chief clerical officer with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
Sec. 24. Laws 2006, chapter 259, article 3, section 10, subdivision 3, is amended to read:
Subd. 3. Use of revenues. (a) Revenues received from the taxes authorized by subdivisions 1 and 2 must be used to pay the cost of collecting and administering the tax and to finance the acquisition and betterment of water and wastewater facilities to serve the cities of Brainerd and Baxter, building and equipping a fire substation, as approved by the voters at the referendum authorizing the tax. Authorized costs include, but are not limited to, acquiring property and paying construction and engineering costs related to the projects.
(b) In addition to the projects
authorized in paragraph (a), the city of Baxter may, if approved by the voters
at an election under subdivision 5, paragraph (b), allocate up to an additional
$32,000,000 of the revenues received from the taxes authorized by subdivisions
1 and 2 to a capital infrastructure fund.
Money from this fund may only be used to finance (1) sanitary sewer,
storm sewer, and water projects, and (2) transportation safety improvements.
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Baxter and its chief
clerical officer comply with Minnesota Statutes, section 645.021, subdivisions
2 and 3.
Sec. 25. Laws 2006, chapter 259, article 3, section 10, subdivision 4, is amended to read:
Subd. 4. Bonds. (a) The city of Baxter, pursuant to the approval of the voters at the November 2, 2004, referendum authorizing the imposition of the taxes in this section, may issue general obligation bonds of the city, in one or more series, in the aggregate principal amount not to exceed $15,000,000 to finance the projects listed in subdivision 3, paragraph (a). 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 of Baxter.
(b) The city of Baxter, pursuant to the
approval of the voters at the 2014 general election to extend the tax under
this section, may issue general obligation bonds of the city, in one or more
series, in the aggregate principal amount not to exceed $32,000,000 plus an
amount equal to the costs of issuance of the bonds to finance the projects
listed in subdivision 3, paragraph (b). 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 of Baxter.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 26. Laws 2006, chapter 259, article 3, section 10, subdivision 5, is amended to read:
Subd. 5. Termination of taxes. (a) The taxes imposed under subdivisions 1 and 2 expire at the earlier of a date 12 years after the imposition of the tax or when the Baxter City Council first determines that the amount of revenues raised from the taxes to pay for the projects under subdivision 3 equals or exceeds $15,000,000 plus any interest on
bonds issued for the projects under subdivision 4, paragraph (a). Any funds remaining after the expiration of the taxes and retirement of the bonds shall be placed in a capital project fund of the city of Baxter. The taxes imposed under subdivisions 1 and 2 may expire at an earlier time if the city of Baxter so determines by ordinance.
(b) Notwithstanding Minnesota Statutes,
sections 297A.99 and 477A.016, or any other contrary provision of law, ordinance,
or city charter, the city of Baxter may, by ordinance, extend the taxes
authorized under subdivisions 1 and 2 beyond the termination date in paragraph
(a) if approved by the voters of the city at a general election held in 2014. The question put to the voters must indicate
that an affirmative vote would extend the imposition of the taxes until 2031 or
until an additional $32,000,000, plus an amount equal to interest and issuance
costs associated with bonds issued under subdivision 4, paragraph (b), above
the initial amount authorized to pay for $15,000,000 in bonds and associated
bond cost and projects, listed in subdivision 3, paragraph (a), is raised. If extended under this paragraph, the taxes
authorized in subdivisions 1 and 2 will terminate at the earlier of (1) when an
additional $32,000,000, plus an amount equal to interest and issuance costs
associated with bonds issued under subdivision 4, paragraph (b), above the
amount authorized under paragraph (a), is raised, or (2) December 31, 2031.
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Baxter and its chief
clerical officer comply with Minnesota Statutes, section 645.021, subdivisions
2 and 3.
Sec. 27. Laws 2006, chapter 259, article 3, section 11, subdivision 3, is amended to read:
Subd. 3. Use of revenues. (a) Revenues received from the taxes authorized by subdivisions 1 and 2 must be used to pay the cost of collecting and administering the tax and to finance all or part of the costs of constructing upgraded water and wastewater treatment facilities to serve the cities of Brainerd and Baxter, water infrastructure improvements, and trail development, contingent on approval by Brainerd voters at the November 7, 2006, referendum. Authorized costs include, but are not limited to, acquiring property and paying construction and engineering costs related to the projects.
(b) In addition to the projects
authorized in paragraph (a), the city of Brainerd may, if approved by the
voters at an election under subdivision 5, paragraph (b), spend up to an
additional $15,000,000 from revenues raised from the taxes authorized in
subdivisions 1 and 2 on the following projects:
(1) an upgraded waste treatment
facility jointly serving the cities of Brainerd and Baxter;
(2) with any funds not needed for the
project in clause (1), water infrastructure improvements; and
(3) with any funds not needed for the
projects in clauses (1) and (2), trail improvements.
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Brainerd and its
chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
Sec. 28. Laws 2006, chapter 259, article 3, section 11, subdivision 4, is amended to read:
Subd. 4. Bonds. The city of Brainerd, contingent on approval of the voters at the November 7, 2006, referendum authorizing the imposition of taxes in this section, may issue general obligation bonds of the city, in one or more series, in the aggregate principal amount not to exceed $22,030,000 to finance the projects listed in subdivision 3, paragraph (a). The debt represented by the bonds is not included in computing any debt limitations applicable to Brainerd, and the levy of taxes required by Minnesota Statutes, section 475.61, to pay the principal and interest on the bonds is not subject to any levy limitation or included in computing any levy limitation applicable to the city of Brainerd.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 29. Laws 2006, chapter 259, article 3, section 11, subdivision 5, is amended to read:
Subd. 5. Termination of taxes. (a) The taxes imposed under subdivisions 1 and 2 expire at the earlier of a date 12 years after the imposition of the tax or when the city council first determines that the amount of revenues raised from the taxes to pay for projects under subdivision 3 equals or exceeds $22,030,000 plus any interest on bonds issued for the projects under subdivision 4. Any funds remaining after the expiration of the taxes and retirement of the bonds shall be placed in a capital project fund of the city of Brainerd. The taxes imposed under subdivision 1 and 2 may expire at an earlier time if the city of Brainerd so determines by ordinance.
(b) Notwithstanding Minnesota Statutes,
sections 297A.99 and 477A.016, or any other contrary provision of law,
ordinance, or city charter, the city of Brainerd may, by ordinance, extend the
taxes authorized under subdivisions 1 and 2 beyond the termination date in
paragraph (a) if approved by the voters of the city at a general election held
in 2014. The question put to the voters
must indicate that an affirmative vote would extend the imposition of the taxes
for an additional 12 years or until an additional $15,000,000 above the initial
amount authorized to pay for $22,030,000 in bonds is raised. If extended under this paragraph, the taxes
authorized in subdivisions 1 and 2 will terminate at the earlier of (1) when an
additional $15,000,000 above the amount authorized under paragraph (a) is
raised, or (2) 12 years after the taxes would have expired under paragraph (a).
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Brainerd and its
chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
Sec. 30. Laws 2013, chapter 143, article 8, section 37, the effective date, is amended to read:
EFFECTIVE
DATE. This section is effective
retroactively to capital investments made and jobs created after December 31,
2012, and effective retroactively for sales and purchases made after December
31, 2012, and before July 1, 2019. Applications for refunds on purchases
exempt under this section must not be filed before June 30, 2015.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 31. VALIDATION
OF PRIOR ACT; AUTHORIZATION.
Notwithstanding the time limits in
Minnesota Statutes, section 645.021, the city of Albert Lea may approve Laws
2005, First Special Session chapter 3, article 5, section 38, as amended by
Laws 2006, chapter 259, article 3, section 6, and file its approval with the
secretary of state by June 15, 2014. If
approved as authorized under this section, actions undertaken by the city
pursuant to the approval of the voters on November 8, 2005, and otherwise in
accordance with Laws 2005, First Special Session chapter 3, article 5, section
38, as amended by Laws 2006, chapter 259, article 3, section 6, are validated.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
Sec. 32. TEMPORARY
SALES TAX AMNESTY; ANIMAL SHELTERS.
(a) Notwithstanding any other law to
the contrary, amnesty is provided to any nonprofit organization that is
primarily engaged in the business of rescuing, sheltering, and finding homes
for unwanted animals if the organization registers and begins collecting the
sales and use tax within four months of the day following enactment of this
provision. This amnesty applies to
qualifying organizations that are currently not registered to collect the tax
under Minnesota Statutes, chapter 297A, and to qualifying organizations that
received notice of the commencement of an audit and the audit is not yet
finally resolved, provided that the organization was not registered to collect
sales and use tax at the time of the audit.
(b)
The amnesty shall preclude assessment for uncollected and unpaid sales and use
tax under Minnesota Statutes, chapter 297A, and to local taxes subject to
Minnesota Statutes, section 297A.99, together with penalty and interest for
sales made during the period the qualifying organization was not registered in
this state. The amnesty also applies to
unpaid use tax on sales made by the organization during the same period. The amnesty is not available for sales and
use taxes already paid or remitted to the state or to sales taxes already
collected by the seller.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 33. TEMPORARY
SALES TAX AMNESTY; AGRICULTURAL CENTERS.
(a) Notwithstanding any other law to
the contrary, amnesty is provided on unpaid sales tax attributable only to
sales of tickets or admissions to a performance or event on the premises of a
tax-exempt organization under section 501(c)(3) of the Internal Revenue Code,
provided that the nonprofit organization is primarily engaged in the business
of preserving Minnesota's rural agricultural heritage and educating the public
about rural history and how farms in Minnesota helped to provide food for the
nation and the world, and begins collecting the sales and use tax on sales of
tickets or admissions by July 1, 2014.
(b) An organization qualifies for an
exemption under this section if:
(1) the premises of the organization is
at least 115 acres;
(2) the performances or events were
sponsored and conducted exclusively by volunteers, employees of the nonprofit
organization, or members of the board of directors of the organization; and
(3) the performances or events were
consistent with the organization's purposes under section 501(c)(3) of the
Internal Revenue Code.
(c) This amnesty applies to qualifying
organizations that received notice of the commencement of an audit and the
audit is not yet finally resolved.
(d) Amnesty granted under this section
precludes assessment for uncollected and unpaid sales and use tax under
Minnesota Statutes, chapter 297A, and to local taxes subject to Minnesota
Statutes, section 297A.99, together with penalty and interest for sales made
during the period beginning December 31, 2008, and ending December 31, 2011. The amnesty is not available for sales and
use taxes already paid or remitted to the state or to sales taxes already
collected by the seller.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 4
INCOME AND ESTATE TAXES
Section 1. Minnesota Statutes 2013 Supplement, section 116J.8737, subdivision 2, as amended by Laws 2014, chapter 150, article 1, section 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 or qualified greater Minnesota 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 or qualified greater Minnesota 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 as a qualified small business, 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 or developing a
proprietary product, process, or service in the fields of agriculture, tourism,
forestry, mining, manufacturing, or transportation; or
(iii) (iv) 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 (i) not been in operation for more than ten years, or (ii) 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 United States Food and Drug Administration approval is required for use in the treatment or diagnosis of a disease or condition;
(8) the business has not previously received private equity investments of more than $4,000,000;
(9) the business is not an entity disqualified under section 80A.50, paragraph (b), clause (3); and
(10) 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 after the date on which the qualified investment was made; and
(4) the business must not have a liquidation event within 180 days after the date on which the qualified investment was made.
(f) The commissioner must maintain a list of qualified small businesses and qualified greater Minnesota 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;
(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; and
(3) "greater Minnesota" means the area of Minnesota located outside of the metropolitan area as defined in section 473.121, subdivision 2.
(h) To receive certification as a qualified greater Minnesota business, a business must satisfy all of the requirements of paragraph (c) and must satisfy the following conditions:
(1) the business has its headquarters in greater Minnesota; and
(2) at least 51 percent of the business's employees are employed in greater Minnesota, and 51 percent of the business's total payroll is paid or incurred in greater Minnesota.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2013.
Sec. 2. Minnesota Statutes 2012, section 116J.8737, is amended by adding a subdivision to read:
Subd. 5a. Promotion
of credit in greater Minnesota. (a)
By July 1, 2014, the commissioner shall develop a plan to increase awareness of
and use of the credit for investments in qualified greater Minnesota businesses
and minority-owned and women-owned qualified small businesses with the goal
that the portion of the credit reserved for investments in qualified greater
Minnesota businesses and minority-owned and women-owned qualified small
businesses is allocated in full to those investments.
(b) Beginning with the legislative report
due on March 15, 2015, under subdivision 9, the commissioner shall report on
its plan under this subdivision and the results achieved.
Sec. 3. Minnesota Statutes 2013 Supplement, section 270B.01, subdivision 8, is amended to read:
Subd. 8. Minnesota tax laws. For purposes of this chapter only, unless expressly stated otherwise, "Minnesota tax laws" means:
(1) the taxes, refunds, and fees
administered by or paid to the commissioner under chapters 115B, 289A (except
taxes imposed under sections 298.01, 298.015, and 298.24), 290, 290A, 291, 292,
295, 297A, 297B, 297H, and 403, or any similar Indian tribal tax administered
by the commissioner pursuant to any tax agreement between the state and the
Indian tribal government, and includes any laws for the assessment, collection,
and enforcement of those taxes, refunds, and fees; and
(2) section 273.1315.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2013 Supplement, section 270B.03, subdivision 1, is amended to read:
Subdivision 1. Who may inspect. Returns and return information must, on request, be made open to inspection by or disclosure to the data subject. The request must be made in writing or in accordance with written procedures of the chief disclosure officer of the department that have been approved by the commissioner to establish the identification of the person making the request as the data subject. For purposes of this chapter, the following are the data subject:
(1) in the case of an individual return, that individual;
(2) in the case of an income tax return filed jointly, either of the individuals with respect to whom the return is filed;
(3) in the case of a return filed by a business entity, an officer of a corporation, a shareholder owning more than one percent of the stock, or any shareholder of an S corporation; a general partner in a partnership; the owner of a sole proprietorship; a member or manager of a limited liability company; a participant in a joint venture; the individual who signed the return on behalf of the business entity; or an employee who is responsible for handling the tax matters of the business entity, such as the tax manager, bookkeeper, or managing agent;
(4) in the case of an estate return:
(i) the personal representative or trustee of the estate; and
(ii) any beneficiary of the estate as shown on the federal estate tax return;
(5) in the case of a trust return:
(i) the trustee or trustees, jointly or separately; and
(ii) any beneficiary of the trust as shown in the trust instrument;
(6) if liability has been assessed to a transferee under section 270C.58, subdivision 1, the transferee is the data subject with regard to the returns and return information relating to the assessed liability;
(7) in the case of an Indian tribal government or an Indian tribal government-owned entity,
(i) the chair of the tribal government, or
(ii) any person authorized by the tribal
government; and
(8) in the case of a successor as defined
in section 270C.57, subdivision 1, paragraph (b), the successor is the data
subject and information may be disclosed as provided by section 270C.57,
subdivision 4; and.
(9) in the case of a gift return, the
donor.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. Minnesota Statutes 2012, section 289A.02, subdivision 7, as amended by Laws 2014, chapter 150, article 1, section 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 December 20, 2013 March 26, 2014.
EFFECTIVE DATE. This section is effective retroactively for
taxable years beginning after December 31, 2012.
Sec. 6. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19, as amended by Laws 2014, chapter 150, article 1, section 9, 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 December 20, 2013 March 26, 2014, shall be in
effect for taxable years beginning after December 31, 1996.
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, except the changes incorporated by
federal changes are effective retroactively at the same time as the changes
were effective for federal purposes.
Sec. 7. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19b, as amended by Laws 2014, chapter 150, article 1, section 11, 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 (12), 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 (12), 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 including 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 and "active service" excludes
includes 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 (13), 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
(13), 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) 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;
(16) 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 (13);
(17) the amount of the net operating loss allowed under section 290.095, subdivision 11, paragraph (c);
(18) the amount of expenses not allowed for federal income tax purposes due to claiming the railroad track maintenance credit under section 45G(a) of the Internal Revenue Code;
(19) the amount of the limitation on
itemized deductions under section 68(b) of the Internal Revenue Code; and
(20) the amount of the phaseout of
personal exemptions under section 151(d) of the Internal Revenue Code.;
and
(21) for taxable years beginning after
December 31, 2013, and before January 1, 2015, to the extent included in
federal taxable income, discharge of qualified principal residence
indebtedness, as provided in subparagraph (E) of section 108(a)(1) of the
Internal Revenue Code, without regard to whether subparagraph (E) of section
108(a)(1) of the Internal Revenue Code is in effect for the taxable year.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2013.
Sec. 8. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 31, as amended by Laws 2014, chapter 150, article 1, section 13, 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 December 20, 2013 March 26, 2014. 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, except the changes incorporated by
federal changes are effective retroactively at the same time as the changes
were effective for federal purposes.
Sec. 9. Minnesota Statutes 2012, 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 individual, trust, or estate is
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 percent on all of such excess expenses over $2,000,000.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2013.
Sec. 10. Minnesota Statutes 2013 Supplement, section 290.091, subdivision 2, as amended by Laws 2014, chapter 150, article 1, section 21, is amended to read:
Subd. 2. Definitions. For purposes of the tax imposed by this
section, the following terms have the meanings given:
(a) "Alternative minimum taxable income" means the sum of the following for the taxable year:
(1) the taxpayer's federal alternative minimum taxable income as defined in section 55(b)(2) of the Internal Revenue Code;
(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum taxable income, but excluding:
(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
(ii) the medical expense deduction;
(iii) the casualty, theft, and disaster loss deduction; and
(iv) the impairment-related work expenses of a disabled person;
(3) for depletion allowances computed under section 613A(c) of the Internal Revenue Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), to the extent not included in federal alternative minimum taxable income, the excess of the deduction for depletion allowable under section 611 of the Internal Revenue Code for the taxable year over the adjusted basis of the property at the end of the taxable year (determined without regard to the depletion deduction for the taxable year);
(4) to the extent not included in federal alternative minimum taxable income, the amount of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue Code determined without regard to subparagraph (E);
(5) to the extent not included in federal alternative minimum taxable income, the amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and
(6) the amount of addition required by section 290.01, subdivision 19a, clauses (7) to (9), and (11) to (14);
less the sum of the amounts determined under the following:
(1) interest income as defined in section 290.01, subdivision 19b, clause (1);
(2) an overpayment of state income tax as provided by section 290.01, subdivision 19b, clause (2), to the extent included in federal alternative minimum taxable income;
(3) the amount of investment interest paid or accrued within the taxable year on indebtedness to the extent that the amount does not exceed net investment income, as defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted in computing federal adjusted gross income;
(4) amounts subtracted from federal taxable
income as provided by section 290.01, subdivision 19b, clauses (6), (8) to
(14), and (16), and (21); and
(5) the amount of the net operating loss allowed under section 290.095, subdivision 11, paragraph (c).
In the case of an estate or trust, alternative minimum taxable income must be computed as provided in section 59(c) of the Internal Revenue Code.
(b) "Investment interest" means investment interest as defined in section 163(d)(3) of the Internal Revenue Code.
(c) "Net minimum tax" means the minimum tax imposed by this section.
(d) "Regular tax" means the tax that would be imposed under this chapter (without regard to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed under this chapter.
(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income after subtracting the exemption amount determined under subdivision 3.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2013.
Sec. 11. Minnesota Statutes 2013 Supplement, section 290A.03, subdivision 15, as amended by Laws 2014, chapter 150, article 1, section 22, is amended to read:
Subd. 15. Internal
Revenue Code. "Internal Revenue
Code" means the Internal Revenue Code of 1986, as amended through December
20, 2013 March 26, 2014.
EFFECTIVE
DATE. This section is
effective retroactively for property tax refunds based on property taxes
payable after December 31, 2013, and rent paid after December 31, 2012.
Sec. 12. Minnesota Statutes 2013 Supplement, section 291.005, subdivision 1, as amended by Laws 2014, chapter 150, article 3, section 3, 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 March 1
March 26, 2014.
(4) "Minnesota gross estate" means the federal gross estate of a decedent after (a) excluding therefrom any property included in the estate which has its situs outside Minnesota, and (b) including any property omitted from the federal gross estate which is includable in the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
(5) "Nonresident decedent" means an individual whose domicile at the time of death was not in Minnesota.
(6) "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.
(7) "Resident decedent" means an individual whose domicile at the time of death was in Minnesota.
(8) "Situs of property" means, with respect to:
(i) real property, the state or country in which it is located;
(ii) tangible personal property, the state
or country in which it was normally kept or located at the time of the
decedent's death or for a gift of tangible personal property within three years
of death, the state or country in which it was normally kept or located when
the gift was executed; and
(iii) a qualified work of art, as defined
in section 2503(g)(2) of the Internal Revenue Code, owned by a nonresident
decedent and that is normally kept or located in this state because it is on
loan to an organization, qualifying as exempt from taxation under section 501(c)(3)
of the Internal Revenue Code, that is located in Minnesota, the situs of the
art is deemed to be outside of Minnesota, notwithstanding the provisions of
item (ii); and
(iv) intangible personal property, the state or country in which the decedent was domiciled at death or for a gift of intangible personal property within three years of death, the state or country in which the decedent was domiciled when the gift was executed.
For a nonresident decedent with an ownership interest in a pass-through entity with assets that include real or tangible personal property, situs of the real or tangible personal property, including qualified works of art, is determined as if the pass-through entity does not exist and the real or tangible personal property is personally owned by the decedent. If the pass-through entity is owned by a person or persons in addition to the decedent, ownership of the property is attributed to the decedent in proportion to the decedent's capital ownership share of the pass-through entity.
(9) "Pass-through entity" includes the following:
(i) an entity electing S corporation status under section 1362 of the Internal Revenue Code;
(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
(iii) a single-member limited liability company or similar entity, regardless of whether it is taxed as an association or is disregarded for federal income tax purposes under Code of Federal Regulations, title 26, section 301.7701-3; or
(iv) a trust to the extent the property is includible in the decedent's federal gross estate; but excludes
(v) an entity whose ownership interest securities are traded on an exchange regulated by the Securities and Exchange Commission as a national securities exchange under section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.
EFFECTIVE DATE. This section is effective retroactively for
estates of decedents dying after December 31, 2013.
Sec. 13. Laws 2014, chapter 150, article 3, section 4, the effective date, is amended to read:
EFFECTIVE DATE. This section is effective retroactively for estates of decedents dying after December 31, 2013, and for taxable gifts made after June 30, 2013.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
Sec. 14. DEFINITION
OF TAXABLE GIFT FOR DECEDENTS DYING BEFORE JANUARY 1, 2014.
For estates of decedents dying before
January 1, 2014, "taxable gift" as used by Minnesota Statutes,
section 291.005, subdivision 1, paragraph (4), means a transfer by gift which
is included in taxable gifts for federal gift tax purposes under the following
sections of the Internal Revenue Code: section
529; section 530; section 2501(a)(4); section 2503; sections 2511 to 2514; and
sections 2516 to 2519; less the deductions allowed in sections 2522 to 2524 of
the Internal Revenue Code, and after excluding taxable gifts of any property
that has its situs outside Minnesota and including taxable gifts of any
property that has its situs in Minnesota and were not disclosed to federal
taxing authorities.
EFFECTIVE
DATE. This section is
effective retroactively for taxable gifts made after June 30, 2013.
Sec. 15. REPEALER.
Laws 2014, chapter 150, article 1,
section 17, is repealed.
EFFECTIVE DATE. This section is effective retroactively for
taxable years beginning after December 31, 2012.
ARTICLE 5
MINERALS TAXES
Section 1. Minnesota Statutes 2012, section 298.75, subdivision 2, is amended to read:
Subd. 2. Tax imposed. (a) Except as provided in paragraph (e), a county that imposes the aggregate production tax shall impose upon every operator a production tax of 21.5 cents per cubic yard or 15 cents per ton of aggregate material excavated in the county except that the county board may decide not to impose this tax if it determines that in the previous year operators removed less than 20,000 tons or 14,000 cubic yards of aggregate material from that county. The tax shall not be imposed on aggregate material excavated in the county until the aggregate material is transported from the extraction site or sold, whichever occurs first. When aggregate material is stored in a stockpile within the state of Minnesota and a public highway, road or street is not used for transporting the aggregate material, the tax shall not be imposed until either when the aggregate material is sold, or when it is transported from the stockpile site, or when it is used from the stockpile, whichever occurs first.
(b) Except as provided in paragraph (e), a county that imposes the aggregate production tax under paragraph (a) shall impose upon every importer a production tax of 21.5 cents per cubic yard or 15 cents per ton of aggregate material imported into the county. The tax shall be imposed when the aggregate material is imported from the extraction site or sold. When imported aggregate material is stored in a stockpile within the state of Minnesota and a public highway, road, or street is not used for transporting the aggregate material, the tax shall be imposed either
when the aggregate material is sold, when it is transported from the stockpile site, or when it is used from the stockpile, whichever occurs first. The tax shall be imposed on an importer when the aggregate material is imported into the county that imposes the tax.
(c) If the aggregate material is transported directly from the extraction site to a waterway, railway, or another mode of transportation other than a highway, road or street, the tax imposed by this section shall be apportioned equally between the county where the aggregate material is extracted and the county to which the aggregate material is originally transported. If that destination is not located in Minnesota, then the county where the aggregate material was extracted shall receive all of the proceeds of the tax.
(d) A county, city, or town that receives revenue under this section is prohibited from imposing any additional host community fees on aggregate production within that county, city, or town.
(e) A county that borders two other states
and that is not contiguous to a county that imposes a tax under this section
may impose the taxes under paragraphs (a) and (b) at the rate of ten cents per
cubic yard or seven cents per ton. This
paragraph expires December 31, 2014.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Laws 2008, chapter 366, article 10, section 15, is amended to read:
Sec. 15. 2008
DISTRIBUTIONS ONLY.
For distribution in 2008 only, a special fund is established to receive 11.4 cents per ton that otherwise would be allocated under Minnesota Statutes, section 298.28, subdivision 6. If sufficient funds are not available under Minnesota Statutes, section 298.28, subdivision 6, to make the payments required under this section and under Minnesota Statutes, section 298.28, subdivision 6, the remaining amount needed to total 11.4 cents per ton may be taken from funds available under Minnesota Statutes, section 298.28, subdivision 9. If 2008 H. F. No. 1812 is enacted and includes a provision that distributes funds that would otherwise be allocated under Minnesota Statutes, section 298.28, subdivision 6, in a manner different from the distribution required in this section, the distribution in this section supersedes the distribution set in 2008 H. F. No. 1812 notwithstanding Minnesota Statutes, section 645.26. The following amounts are allocated to St. Louis County acting as the fiscal agent for the recipients for the following specified purposes:
(1) two cents per ton must be paid to the Hibbing Economic Development Authority to retire bonds and for economic development purposes;
(2) one cent per ton must be divided among and paid in equal shares to each of the board of St. Louis County School District No. 2142, the board of Ely School District No. 696, the board of Mountain Iron-Buhl School District No. 712, and the board of Virginia School District No. 706 for each to study the potential for and impact of consolidation and streamlining the operations of their school districts;
(3) 0.25 cent per ton must be paid to the city of Grand Rapids, for industrial park work;
(4) 0.65 cent per ton must be paid to the
city of Aitkin, for sewer and water for housing economic development
projects;
(5) 0.5 cent per ton must be paid to the city of Crosby, for well and water tower infrastructure;
(6) 0.5 cent per ton must be paid to the city of Two Harbors, for well and water tower infrastructure;
(7) 1.5 cents per ton must be paid to the city of Silver Bay to pay for health and safety and maintenance improvements at a former elementary school building that is currently owned by the city, to be used for economic development purposes;
(8) 1.5 cents per ton must be paid to St. Louis County to extend water and sewer lines from the city of Chisholm to the St. Louis County fairgrounds;
(9) 1.5 cents per ton must be paid to the White Community Hospital for debt restructuring;
(10) 0.5 cent per ton must be paid to the city of Keewatin for street, sewer, and water improvements;
(11) 0.5 cent per ton must be paid to the city of Calumet for street, sewer, and water improvements; and
(12) one cent per ton must be paid to Breitung township for sewer and water extensions associated with the development of a state park, provided that if a new state park is not established in Breitung township by July 1, 2009, the money provided in this clause must be transferred to the northeast Minnesota economic development fund established in Minnesota Statutes, section 298.2213.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Upon enactment, the city of Aitkin must release all funds under this
section to St. Louis County acting as fiscal agent by July 1, 2014.
Sec. 3. Laws 2013, chapter 143, article 11, section 10, is amended to read:
Sec. 10. 2013
DISTRIBUTION ONLY.
For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of any excess of the balance remaining after distribution of amounts required under Minnesota Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis County acting as the fiscal agent for the recipients for the following specific purposes:
(1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water supply system;
(2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities required as a result of actions undertaken by United States Steel Corporation;
(3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water supply system, payable upon agreement with ArcelorMittal to satisfy water permit conditions;
(4) 2 cents per ton to the city of Tower for the Tower Marina;
(5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer system to replace aging effluent lines and for parking lot repaving;
(6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant improvements;
(7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project;
(8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson Intermodal Transportation Center;
(9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine hockey arena renovations;
(10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and Greenway Township;
(11) 2.5 cents per ton to the city of Hibbing for the Memorial Building;
(12) 0.7 cents per ton to the city of Chisholm for public works infrastructure;
(13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary sewer extension;
(14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy;
(15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project;
(16) 1.5 2.0 cents per ton
to the city of Cook for street improvements, business park infrastructure, and
a maintenance garage;
(17) 0.5 cents per ton to the city of
Cook for a water line project;
(18) (17) 1.8 cents per ton
to the city of Eveleth to be used for Jones Street reconstruction and the city
auditorium;
(19) (18) 0.5 cents per
ton for the city of Keewatin for an electrical substation and water line
replacements;
(20) (19) 3.3 cents per
ton for the city of Virginia for Fourth Street North infrastructure and
Franklin Park improvement; and
(21) (20) 0.5 cents per ton
to the city of Grand Rapids for an economic development project.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 6
LOCAL DEVELOPMENT
Section 1.
[383A.155] HOUSING IMPROVEMENT
AREAS.
Subdivision 1. Powers
of a housing improvement authority. The
Ramsey County Housing and Redevelopment Authority shall have the powers of a
city under sections 428A.11 to 428A.21 to establish housing improvement areas
in Ramsey County.
Subd. 2. Definitions. (a) For purposes of exercising the
powers in sections 428A.11 to 428A.21, references in those sections to the
terms in paragraphs (b) to (e) have the meanings given them for purposes of
this section.
(b) "Mayor" means the chair
of the Ramsey County Housing and Redevelopment Authority.
(c) "Council" or
"governing body of the city" means the Ramsey County Housing and
Redevelopment Authority.
(d) "City clerk" means the
person designated by the Ramsey County Housing and Redevelopment Authority to
carry out the duties of the city clerk under sections 428A.11 to 428A.21.
(e) "Enabling ordinance"
means a resolution adopted under subdivision 3 by the Ramsey County Housing and
Redevelopment Authority.
Subd. 3. Establishment
of housing improvement areas. The
Ramsey County Housing and Redevelopment Authority may adopt a resolution
establishing one or more housing improvement areas within the county under this
section. The Ramsey County Housing and
Redevelopment Authority shall send a copy of each petition for the
establishment of a housing improvement area to the city in which the proposed
housing improvement area is located. The
public hearings under sections 428A.13 and 428A.14 may be held at the times and
places determined by the Ramsey County Housing and Redevelopment Authority,
except that they must be held at least 30 days after the date the applicable
petition was sent to the city. If the
city council adopts a resolution opposing the establishment within 30 days of
the date the copy of the petition was sent to the city under this subdivision,
the Ramsey County Housing and Redevelopment Authority may not establish the
proposed housing improvement area.
Subd. 4. Applicability. Except as otherwise provided in this
section, sections 428A.11 to 428A.21 apply to the establishment of a housing
improvement area by the Ramsey County Housing and Redevelopment Authority.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2012, section 383D.41, is amended by adding a subdivision to read:
Subd. 11. Tax
credit allocation threshold criteria.
(a) In addition to the projects described in section 462A.222,
subdivision 3, paragraph (d), the Dakota County Community Development Agency
may allocate tax credits in the first round for up to three projects of the
following type: new construction or
substantial rehabilitation multifamily housing projects that are not restricted
to persons who are 55 years of age or older and that are located within one of
the following areas at the time a reservation for tax credits is made:
(1) an area within one-half mile of a
completed or planned light rail transit way, bus rapid transit way, or commuter
rail station;
(2) an area within one-fourth mile from
any spot along a high-frequency local bus line;
(3) an area within one-half mile from a
bus stop or station on a high-frequency express route;
(4) an area within one-half mile from a
park and ride lot; or
(5) an area within one-fourth mile of a
high-service public transportation fixed route stop.
(b) For purposes of this section, the
following terms have the meaning given them:
(1) "high-frequency local bus line"
means a local bus route providing service at least every 15 minutes and running
between 6:00 a.m. and 7:00 p.m. on weekdays and between 9:00 a.m. and 6:00 p.m.
on Saturdays;
(2) "high-frequency express
route" means an express route with bus service providing six or more trips
during at least one of the peak morning hours between 6:00 a.m. and 9:00 a.m. and
every ten minutes during the peak morning hour; and
(3) "high-service public
transportation fixed route stop" means a stop serviced between 6:00 a.m. and
7:00 p.m. on weekdays and 9:00 a.m. and 6:00
p.m. on Saturdays and with service approximately every 30 minutes during that
time.
EFFECTIVE
DATE. This section is
effective beginning with the 2015 allocation of tax credit.
Sec. 3. Minnesota Statutes 2012, 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 (1) ten years after certification of the district or (2) June 30, 2017, whichever is later. This extension is provided primarily to accommodate delays in development activities due to unanticipated economic circumstances.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to all districts,
regardless of when the request for certification was made.
Sec. 4. Minnesota Statutes 2012, section 469.177, subdivision 3, is amended to read:
Subd. 3. Tax increment, relationship to chapters 276A and 473F. (a) Unless the governing body elects pursuant to paragraph (b) the following method of computation shall apply to a district other than an economic development district for which the request for certification was made after June 30, 1997:
(1) The original net tax capacity and the current net tax capacity shall be determined before the application of the fiscal disparity provisions of chapter 276A or 473F. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured net tax capacity and no tax increment determination. Where the original net tax capacity is less than the current net tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority.
(2) The county auditor shall exclude the retained captured net tax capacity of the authority from the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the
local taxing districts. The tax generated by the extension of the lesser of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority.
(b) The following method of computation
applies to any economic development district for which the request for
certification was made after June 30, 1997, and to any other district for
which the governing body, by resolution approving the tax increment financing
plan pursuant to section 469.175, subdivision 3, elects:
(1) The original net tax capacity shall be determined before the application of the fiscal disparity provisions of chapter 276A or 473F. The current net tax capacity shall exclude any fiscal disparity commercial-industrial net tax capacity increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to section 276A.06, subdivision 7, or 473F.08, subdivision 6. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured net tax capacity and no tax increment determination. Where the original net tax capacity is less than the current net tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority.
(2) The county auditor shall exclude the retained captured net tax capacity of the authority from the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the lesser of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority.
(3) An election by the governing body pursuant to paragraph (b) shall be submitted to the county auditor by the authority at the time of the request for certification pursuant to subdivision 1.
(c) The method of computation of tax increment applied to a district pursuant to paragraph (a) or (b) shall remain the same for the duration of the district, except that the governing body may elect to change its election from the method of computation in paragraph (a) to the method in paragraph (b).
EFFECTIVE
DATE. This section is
effective for districts for which the request for certification is made after
June 30, 2014.
Sec. 5. Laws 2013, chapter 143, article 9, section 23, is amended to read:
Sec. 23. CITY
OF BLOOMINGTON; OLD CEDAR AVENUE BRIDGE.
(a) Notwithstanding any law to the contrary,
the city of Bloomington shall transfer from the tax increment financing
accounts for its Tax Increment Financing District No. 1-C and Tax
Increment Financing District No. 1-G an amount equal to the tax increment
for each district that is computed under the provisions of Minnesota Statutes,
section 473F.08, subdivision 3c, for taxes payable in 2014 to an account or
fund established for the repair, restoration, or replacement of the Old Cedar
Avenue bridge for use by bicycle commuters and recreational users. The city is authorized to and must use the
transferred funds to complete the repair, renovation, or replacement of the
bridge. Upon completion of the
repair, renovation, or replacement of the bridge, the city may use any
remaining funds in the account for costs of improving bicycle and pedestrian
trails that access the bridge and that use is deemed to be a permitted use of
the increments.
(b) No signs, plaques, or markers acknowledging or crediting donations for, sponsorships of, or naming rights may be posted on or in the vicinity of the Old Cedar Avenue bridge.
EFFECTIVE
DATE. This section is
effective without local approval under Minnesota Statutes, section 645.023,
subdivision 1, paragraph (a).
Sec. 6. CITY
OF EAGAN; TAX INCREMENT FINANCING.
(a) Effective for taxes payable in
2015, the city of Eagan may elect to compute tax increment for the Cedar Grove
Tax Increment Financing District using the current local tax rate,
notwithstanding the provisions of Minnesota Statutes, section 469.177, subdivision
1a.
(b) The requirements 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 TIF District 2-5 in the city of
Eagan if the activities are undertaken within seven years from the date of
certification of the district.
EFFECTIVE
DATE. This section is
effective upon compliance by the governing body of the city of Eagan with the
requirements of Minnesota Statutes, section 645.021, subdivision 3.
Sec. 7. CITY
OF EDINA; TAX INCREMENT FINANCING.
Subdivision 1. Authority
to create districts. (a) The
governing body of the city of Edina or its development authority may establish
one or more tax increment financing housing districts in the Southeast Edina
Redevelopment Project Area, as the boundaries exist on March 31, 2014.
(b) The authority to request
certification of districts under this section expires on June 30, 2017.
Subd. 2. Rules
governing districts. (a)
Housing districts established under this section are subject to the provisions
of Minnesota Statutes, sections 469.174 to 469.1794, except as otherwise
provided in this subdivision.
(b) Notwithstanding the provisions of
Minnesota Statutes, section 469.176, subdivision 1b, no increment must be paid
to the authority after 15 years after receipt by the authority of the first
increment from a district established under this section.
(c) Notwithstanding the provisions of
Minnesota Statutes, section 469.1761, subdivision 3, for a residential rental
project, the city may elect to substitute "10 percent" for "40
percent" in the 40-60 test under section 142(d)(1)(B) of the Internal
Revenue Code in determining the applicable income limits.
Subd. 3. Pooling
authority. The city may elect
to treat expenditures of increment from the Southdale 2 district for a housing
project of a district established under this section as expenditures qualifying
under Minnesota Statutes, section 469.1763, subdivision 2, paragraph (d),
without regard to whether the housing meets the requirement of a qualified
building under section 42 of the Internal Revenue Code.
EFFECTIVE
DATE. This section is
effective upon compliance by the governing body of the city of Edina with the
requirements of Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 8. SHOREVIEW
TAX INCREMENT FINANCING PILOT PROJECT.
Subdivision 1. Authority
to establish districts. (a)
The governing body of the city of Shoreview or a development authority it
designates may establish one or more economic development tax increment
financing districts in the city subject to the special rules under this section. The purpose of these districts is the
retention and expansion of existing businesses in the city and the attraction
of new business to the state to create and retain high paying jobs.
(b) The authority to establish or
approve the tax increment financing plans and request certification for
districts under this section expires on June 30, 2019.
Subd. 2. Qualified
businesses. For purposes of
this section, a "qualified business" must satisfy the following
requirements:
(1) the business must qualify under one
of the following when the tax increment financing plan is approved:
(i) it operates at a location in the
city of Shoreview;
(ii) it does not have substantial
operations in Minnesota; or
(iii) the assistance is provided for
relocation of a portion of the business's operation from another state;
(2) the expansion or location of the
operations of the business in the city, as provided in the business subsidy
agreement under Minnesota Statues, sections 116J.993 to 116J.995, will result
in an increase in manufacturing, research, service, or professional jobs, at
least 75 percent of which pay an average wage or salary that is equal to or
greater than 25 percent of the median wage or salary for all jobs within the
metropolitan area; and
(3) the business is not engaged in
making retail sales or in providing other services, such as legal, medical,
accounting, financial, entertainment, or similar, to third parties, at the
location receiving assistance.
Subd. 3. Applicable
rules. (a) Unless otherwise
stated, the provisions of Minnesota Statutes, sections 469.174 to 469.1794,
apply to districts established under this section.
(b) Notwithstanding the provisions of
section 469.176, subdivision 1b, the duration limit for districts created under
this section is 12 years after the receipt of the first increment.
(c) The provisions of Minnesota Statutes,
section 469.176, subdivision 4c, apply to determining the permitted uses of
increments from the districts with the following exceptions:
(1) any building and facilities must be
for a qualified business;
(2) the building and facilities must
not be used by the qualified business or its lessees or tenants to relocate
operations from another location in this state outside of the city of
Shoreview;
(3) the 15 percent limit in subdivision
4c, paragraph (a), is increased to 25 percent; and
(4) the city or development authority
may elect to deposit up to 20 percent of the increments in the fund established
under subdivision 4. If the city elects
to use this authority, all of the remaining increments must be expended for
administrative expenses or for activities within the district under Minnesota
Statutes, section 469.1763.
(d) The governing body of the city may
elect, by resolution, to determine the original and current net tax capacity of
a district established under this section using the computation under Minnesota
Statutes, section 469.177, subdivision 3, paragraph (a) or (b).
Subd. 4. Business
retention and expansion fund. (a)
The city may establish a business retention and expansion fund and deposit in
the fund:
(1) increments as provided under
subdivision 3, paragraph (c), clause (4); and
(2) increments from a district for
which the request for certification of the district was made prior to April 30,
1990, if the amount necessary to meet all of the debt and other obligations
incurred for that district has been received by the city.
(b)
Amounts in the fund may be expended to assist qualified businesses, as
permitted under subdivisions 2 and 3, and are not otherwise subject to the
restrictions in Minnesota Statutes, sections 469.174 to 469.1794.
EFFECTIVE
DATE. This section is
effective upon compliance by the governing body of the city of Shoreview with
the requirements of Minnesota Statutes, section 645.021, subdivision 3.
Sec. 9. CITY
OF NORTH ST. PAUL; TAX INCREMENT FINANCING; PARCELS DEEMED OCCUPIED.
If the city of North St. Paul
authorizes the creation of a redevelopment tax increment financing district
under Minnesota Statutes, section 469.174, subdivision 10, parcel number
122922330059 is 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) buildings located on the parcel were
demolished after the city of North St. Paul adopted a resolution under
Minnesota Statutes, section 469.174, subdivision 10, paragraph (d), clause (3);
(2) the buildings were removed either by
the city of North St. Paul or by the owner of the property by entering
into a development agreement; and
(3)
the request for certification of the parcel as part of a district is filed with
the county auditor by December 31, 2016.
EFFECTIVE
DATE. This section is
effective upon compliance by the governing body of the city of North St. Paul
with the requirements of Minnesota Statutes, section 645.021, subdivisions 2
and 3.
ARTICLE 7
MISCELLANEOUS
Section 1. Minnesota Statutes 2012, section 270C.72, subdivision 1, is amended to read:
Subdivision 1. Tax clearance required. (a) The state or a political subdivision of the state may not issue, transfer, or renew, and must revoke, a license for the conduct of a profession, occupation, trade, or business, if the commissioner notifies the licensing authority that the applicant owes the state delinquent taxes payable to the commissioner, penalties, or interest. The commissioner may not notify the licensing authority unless the applicant taxpayer owes $500 or more in delinquent taxes, penalties, or interest, or has not filed returns. If the applicant taxpayer does not owe delinquent taxes, penalties, or interest, but has not filed returns, the commissioner may not notify the licensing authority unless the taxpayer has been given 90 days' written notice to file the returns or show that the returns are not required to be filed.
(b) Within ten days after receipt of the
notification from the commissioner under paragraph (a), the licensing authority
must notify the license holder by certified mail of the potential revocation of
the license for the applicable reason under paragraph (a). The notice must include a copy of the
commissioner's notice to the licensing agency and information, in the form
specified by the commissioner, on the licensee's option for receiving a tax
clearance from the commissioner. The
licensing authority must revoke the license 30 days after receiving the notice
from the commissioner, unless it receives a tax clearance from the commissioner
as provided in paragraph (c).
(c) A licensing authority that has
received a notice from the commissioner may issue, transfer, renew, or not
revoke the applicant's license only if (a) (1) the commissioner
issues a tax clearance certificate and (b) (2) the commissioner
or the applicant forwards a copy of the clearance to the authority. The commissioner may issue a clearance
certificate only if the applicant does not owe the state any uncontested
delinquent taxes, penalties, or interest and has filed all required returns.
EFFECTIVE
DATE. This section is
effective July 1, 2014.
Sec. 2. Minnesota Statutes 2012, section 270C.72, subdivision 3, is amended to read:
Subd. 3. Notice
and hearing. (a) The
commissioner, on notifying a licensing authority pursuant to subdivision 1 not
to issue, transfer, or renew a license, must send a copy of the notice to the
applicant. If the applicant requests, in
writing, within 30 days of the date of the notice a hearing, a contested case
hearing must be held. The hearing must
be held within 45 days of the date the commissioner refers the case to the
Office of Administrative Hearings. Notwithstanding
any law to the contrary, the applicant must be served with 20 days' notice in
writing specifying the time and place of the hearing and the allegations
against the applicant. The notice may be
served personally or by mail.
(b) (a) Prior to notifying a
licensing authority pursuant to subdivision 1 to revoke a license, the
commissioner must send a notice to the applicant of the commissioner's intent
to require revocation of the license and of the applicant's right to a hearing under paragraph (a). If the applicant requests a hearing in
writing within 30 days of the date of the notice, a contested
case hearing must be held. The hearing
must be held within 45 days of the date the commissioner refers the case to the
Office of Administrative Hearings. Notwithstanding
any law to the contrary, the applicant must be served with 20 days notice in
writing specifying the time and place of the hearing and the allegations
against the applicant. The notice may be
served personally or by mail. A
license is subject to revocation when 30 days have passed following the date of
the notice in this paragraph without the applicant requesting a hearing, or, if
a hearing is timely requested, upon final determination of the hearing under
section 14.62, subdivision 1. A
license shall be revoked by the licensing authority within 30 days after
receiving notice from the commissioner to revoke.
(b) The commissioner may notify a
licensing authority under subdivision 1 only after the requirements of
paragraph (a) have been satisfied.
(c) A hearing under this subdivision is in lieu of any other hearing or proceeding provided by law arising from any action taken under subdivision 1.
EFFECTIVE
DATE. This section is
effective July 1, 2014.
Sec. 3. Minnesota Statutes 2012, section 279.03, subdivision 2, is amended to read:
Subd. 2. Composite
judgment. Amounts included in
composite judgments authorized by section 279.37, subdivision 1, and confessed
on or after July 1, 1982, are subject to interest at the rate determined
pursuant to section 549.09. Amounts
confessed under this authority after December 31, 1990, (a) Except as
provided in paragraph (b), amounts included in composite judgments authorized
by section 279.37, subdivision 1, are subject to interest at the rate
calculated under subdivision 1a. During
each calendar year, interest shall accrue on the unpaid balance of the
composite judgment from the time it is confessed until it is paid. The rate of interest is subject to change
each year in the same manner that section 549.09 or subdivision 1a, whichever
is applicable, for rate changes. Interest
on the unpaid contract balance on judgments confessed before July 1, 1982, is
payable at the rate applicable to the judgment at the time that it was
confessed. The interest rate
established at the time the judgment is confessed is fixed for the duration of
that judgment.
(b) A confession of judgment covering
any part of a parcel classified as 1a or 1b, and used as the primary homestead
of the owner, is subject to interest at the rate provided in section 279.37,
subdivision 2, paragraph (b).
EFFECTIVE DATE. This section is effective for confession judgments
entered into on or after January 1, 2015.
Sec. 4. Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is amended to read:
Subd. 2. Installment payments. (a) The owner of any such parcel, or any person to whom the right to pay taxes has been given by statute, mortgage, or other agreement, may make and file with the county auditor of the county in which the parcel is located a written offer to pay the current taxes each year before they become delinquent, or to contest the taxes under Minnesota Statutes 1941, sections 278.01 to 278.13, and agree to confess judgment for the amount provided, as determined by the county auditor. By filing the offer, the owner waives all irregularities in connection with the tax proceedings affecting the parcel and any defense or objection which the owner may have to the proceedings, and also waives the requirements of any notice of default in the payment of any installment or interest to become due pursuant to the composite judgment to be so entered. Unless the property is subject to subdivision 1a, with the offer, the owner shall (i) tender one-tenth of the amount of the delinquent taxes, costs, penalty, and interest, and (ii) tender all current year taxes and penalty due at the time the confession of judgment is entered. In the offer, the owner shall agree to pay the balance in nine equal installments, with interest as provided in section 279.03, payable annually on installments remaining unpaid from time to time, on or before December 31 of each year following the year in which judgment was confessed.
(b) If any part of the parcel consists
of real estate classified as 1a or 1b and used as the homestead by the owner of
the property, the commissioner of revenue shall set annually the interest rate
on offers made under paragraph (a) at the greater of five percent or two percent
above the prime rate charged by banks during the six-month period ending on
September 30 of that year, rounded to the nearest full percent, provided that
the rate must not exceed the maximum annum rate specified under section 279.03,
subdivision 1a. The rate of interest
becomes effective on January 1 of the immediately succeeding year. If a default occurs in the payments under any
confessed judgment entered under this paragraph, the taxes and penalties due
are subject to the interest rate specified in section 279.03.
For the purposes of this subdivision:
(1) the term "prime rate charged
by banks" means the average predominant prime rate quoted by commercial
banks to large businesses, as determined by the Board of Governors of the
Federal Reserve System; and
(2) "default" means the
cancellation of the confession of judgment due to nonpayment of the current
year tax or failure to make any installment payment required by this confessed
judgment within 60 days from the date on which payment was due.
(c) The interest rate established at
the time judgment is confessed is fixed for the duration of the judgment. By October 15 of each year, the commissioner
of revenue must determine the rate of interest as provided under paragraph (b)
and, by November 1 of each year, must certify the rate to the county auditor.
(d) A qualified property owner eligible
to enter into a second confession of judgment may do so at the interest rate
provided in paragraph (b).
(e) Repurchase agreements or contracts
for repurchase for properties being repurchased under section 282.261 are not
eligible to receive the interest rate under paragraph (b).
(f) The offer must be substantially as follows:
"To the court administrator of the district court of ........... county, I, ....................., am the owner of the following described parcel of real estate located in .................... county, Minnesota:
.............................. Upon that real estate there are delinquent taxes for the year ........., and prior years, as follows: (here insert year of delinquency and the total amount of delinquent taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in the sum of $...... and waive all irregularities in the tax proceedings
affecting these taxes and any defense or objection which I may have to them, and direct judgment to be entered for the amount stated above, minus the sum of $............, to be paid with this document, which is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above. I agree to pay the balance of the judgment in nine or four equal, annual installments, with interest as provided in section 279.03, payable annually, on the installments remaining unpaid. I agree to pay the installments and interest on or before December 31 of each year following the year in which this judgment is confessed and current taxes each year before they become delinquent, or within 30 days after the entry of final judgment in proceedings to contest the taxes under Minnesota Statutes, sections 278.01 to 278.13.
Dated .............., ......."
EFFECTIVE DATE. This section shall be effective for confession
judgments entered into on or after January 1, 2015.
Sec. 5. Minnesota Statutes 2013 Supplement, section 360.531, subdivision 2, is amended to read:
Subd. 2. Rate. The tax shall be as follows:
Base Price |
|
Tax |
|
|
|
|
|
$100 |
over $500,000 |
|
$200 |
over $1,000,000 |
|
$2,000 |
over $2,500,000 |
|
$4,000 |
over $5,000,000 |
|
$7,500 |
over $7,500,000 |
|
$10,000 |
over $10,000,000 |
|
$12,500 |
over $12,500,000 |
|
$15,000 |
over $15,000,000 |
|
$17,500 |
over $17,500,000 |
|
$20,000 |
over $20,000,000 |
|
$22,500 |
over $22,500,000 |
|
$25,000 |
over $25,000,000 |
|
$27,500 |
over $27,500,000 |
|
$30,000 |
over $30,000,000 |
|
$50,000 |
over $40,000,000 |
|
$75,000 |
EFFECTIVE
DATE. This section is
effective July 1, 2014, and applies to aircraft tax due on or after that date.
Sec. 6. Minnesota Statutes 2012, section 383E.21, subdivision 1, is amended to read:
Subdivision 1. Authority to levy property taxes and incur debt. (a) To finance the cost of designing, constructing, and acquiring countywide public safety improvements and equipment, including personal property, benefiting both Anoka County and the municipalities located within Anoka County, the governing body of Anoka County may levy property taxes for public safety improvements and equipment, and issue:
(1) capital improvement bonds under the provisions of section 373.40 as if the infrastructure and equipment qualified as a "capital improvement" within the meaning of section 373.40, subdivision 1, paragraph (b); and
(2) capital notes under the provisions of section 373.01, subdivision 3, as if the equipment qualified as "capital equipment" within the meaning of section 373.01, subdivision 3. Personal property acquired with the proceeds of the bonds or capital notes issued under this section must have an expected useful life at least as long as the term of debt.
(b) The outstanding principal amount of the bonds and the capital notes issued under this section may not exceed $8,000,000 at any time. Any bonds or notes issued pursuant to this section must only be issued after approval by a majority vote of the Anoka County Joint Law Enforcement Council, a joint powers board.
EFFECTIVE
DATE. This section is
effective beginning for taxes payable in 2013 and expires under Minnesota
Statutes, section 383E.21, subdivision 3.
Sec. 7. Minnesota Statutes 2012, section 383E.21, subdivision 2, is amended to read:
Subd. 2. Treatment
of levy. Notwithstanding sections
275.065, subdivision 3, and 276.04, the county may report the tax attributable
to any levy to fund public safety capital improvements or equipment projects
approved by the Anoka County Joint Law Enforcement Council or pay principal
and interest on bonds or notes issued under this section as a separate line
item on the proposed property tax notice and the property tax statement. Notwithstanding any provision in chapter
275 or 373 to the contrary, bonds or notes issued by Anoka County under this
section must not be included in the computation of the net debt of Anoka
County.
EFFECTIVE
DATE. This section is effective
beginning for taxes payable in 2013 and expires under Minnesota Statutes,
section 383E.21, subdivision 3.
Sec. 8. Minnesota Statutes 2013 Supplement, section 469.169, is amended by adding a subdivision to read:
Subd. 20. Additional
zone allocations. $3,000,000
is allocated per year for calendar years 2014 through 2019 for tax reductions
in border city enterprise zones and border city development zones. The commissioner shall allocate this amount
among the cities on a per capita basis. Allocations
may be used for tax reductions for that year under either:
(1) the border city enterprise zone
program under section 469.171, or for other offsets of taxes imposed on or
remitted by businesses located in the enterprise zone, if the municipality
determines that the granting of the tax reduction or offset is necessary to
retain a business within or attract a business to the zone; or
(2) the border city development zone
program under section 469.1732 or 469.1734.
EFFECTIVE DATE. This section is effective July 1, 2014, but only
$1,500,000 is available in calendar year 2014.
Sec. 9. Minnesota Statutes 2012, section 469.171, subdivision 6, is amended to read:
Subd. 6. Additional border city tax reductions. In addition to the tax reductions authorized by subdivision 1, for a border city zone, the following types of tax reductions may be approved:
(1) a credit against income tax for
workers employed in the zone and not qualifying for a credit under subdivision
1, clause (2), subject to a maximum of $1,500 $3,000 per employee
per year;
(2) a state paid property tax credit for a portion of the property taxes paid by a commercial or industrial facility located in the zone.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 10. CARLTON
COUNTY; LEVY FOR SOIL AND WATER CONSERVATION DISTRICT.
Subdivision 1. Definitions. (a) For the purposes of this section,
"district" means the Carlton County Soil and Water Conservation
District.
(b) For the purposes of this section,
"county" means Carlton County.
Subd. 2. Special
project levy. Notwithstanding
any law to the contrary, the county may levy ad valorem property taxes on
taxable property within the area of its jurisdiction for the purposes specified
in subdivision 3. The proceeds of the
tax must be placed in a separate account and used only for the purposes
specified in subdivision 3. The amount
levied is separate from any other amount to be levied for the district by the
county under Minnesota Statutes, section 103C.331, subdivision 16.
Subd. 3. Purpose;
limit on levy amount. (a) The
county must allocate the proceeds of any tax imposed under this section to the
district solely to pay principal, interest, and any associated costs of
obtaining and servicing a loan to finance the planning, constructing, and
equipping of an office and storage facility for the district.
(b) The maximum amount of the levy in
any year may not exceed the amount necessary, after deduction of any amount
remaining from the levy imposed in prior years, to pay 105 percent of the
principal and interest due in the following calendar year and through July 1 of
the next year.
Subd. 4. Expiration. (a) This section expires:
(1) following the final payment of
principal, interest, and any associated costs of the loan under subdivision 3,
or any loan or other financing that refinanced the original loan; or
(2) if the district does not obtain the
loan under subdivision 3 prior to May 1, 2017.
(b) Upon expiration of this section,
any amount remaining in the account created under subdivision 2 must be
transferred to the general account of the county and used to reduce any amount
to be levied for the district by the county under Minnesota Statutes, section
103C.331, subdivision 16, for the following year, and any subsequent years,
until the amount remaining is exhausted.
EFFECTIVE
DATE. This section is
effective the day following compliance by Carlton County with Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
Sec. 11. PURPOSE
STATEMENTS; TAX EXPENDITURES.
Subdivision 1. Authority. This section is intended to fulfill
the requirement under Minnesota Statutes, section 3.192, that a bill creating,
renewing, or continuing a tax expenditure provide a purpose for the tax expenditure
and a standard or goal against which its effectiveness may be measured.
Subd. 2. Income
tax subtraction for discharge of indebtedness income. The provisions of article 4, section
7, clause (21), are intended to exclude from state taxation in 2014 amounts
otherwise recognizable as income but excluded at the federal level for tax
years 2007 through 2013 in response to the national housing crisis.
Subd. 3. Income
tax subtraction for military pay; Active Guard/Reserve members of the National
Guard. The provisions of
article 4, section 7, clause (10), are intended to provide equitable tax
treatment to Minnesota residents who are members of the National Guard and
serve full time in Active Guard/Reserve (AGR) status by allowing an income tax
subtraction for military pay equivalent to that allowed under Minnesota
Statutes, section 290.01, subdivision 19b,
clause (11), for Minnesota residents who serve full time in the armed forces of
the United States.
Subd. 4. Research credit for sole proprietors. The provisions of article 4, section 9, are intended to provide equitable tax treatment for Minnesota businesses operated as sole proprietorships by allowing sole proprietors to claim the research credit on the same basis as it is allowed for businesses operated as C corporations or pass-through entities.
Subd. 5. Estate
tax situs rule for qualified art. The
provisions of article 4, section 12, deeming certain qualified art on loan to
Minnesota nonprofit entities as property with a situs outside Minnesota under
the estate tax are intended to prevent the Minnesota estate tax from
discouraging nonresident owners of art from loaning it to Minnesota nonprofit
museums.
Subd. 6. Sales
of coin-operated amusement devices defined as sales for resale. The provisions of article 3, section
9, defining certain coin-operated amusement devices as sales for resale are
intended to reduce tax pyramiding by exempting an input to a taxable service.
Subd. 7. Expansion
of sales tax exemption for local governments. The provisions of article 3, sections
12 and 17, modifying the sales tax on certain local government purchases are
intended to reduce the cost of providing local government services, remove a
barrier for intergovernmental cooperation, and reduce existing compliance and
administration costs for local governments.
Subd. 8. Fund-raising
sales by nonprofit groups. The
provisions of article 3, section 13, raising the limit on tax exempt
fund-raising by nonprofit organizations is intended to reflect the impact on inflation
over time on the limit and reduce compliance costs for groups that exceed the
limit.
Subd. 10. Microdistillery
credit. The provisions of
article 3, section 19, allowing a microdistillery credit is to relieve small
distillers of the burden of paying excise tax on the distribution of free
samples of their products and to encourage the development and marketing of
products by niche distillers in the state.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 8
UNSESSION
Section 1. Minnesota Statutes 2012, section 16D.02, subdivision 3, is amended to read:
Subd. 3. Debt. "Debt" means an amount owed to
the state directly, or through a state agency, on account of a fee, duty,
lease, direct loan, loan insured or guaranteed by the state, rent, service,
sale of real or personal property, overpayment, fine, assessment, penalty,
restitution, damages, interest, tax, bail bond, forfeiture, reimbursement,
liability owed, an assignment to the state including assignments under section
256.741, the Social Security Act, or other state or federal law, recovery of
costs incurred by the state, or any other source of indebtedness to the state. Debt also includes amounts owed to
individuals as a result of civil, criminal, or administrative action brought by
the state or a state agency pursuant to its statutory authority or for which
the state or state agency acts in a fiduciary capacity in providing collection
services in accordance with the regulations adopted under the Social Security
Act at Code of Federal Regulations, title 45, section 302.33. When the commissioner provides collection
services pursuant to a debt qualification plan to a referring agency,
debt also includes an amount owed to the courts, local government units,
Minnesota state colleges and universities governed by the Board of Trustees of
the Minnesota State Colleges and Universities, or University of Minnesota.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2012, section 16D.02, subdivision 6, is amended to read:
Subd. 6. Referring
agency. "Referring agency"
means a state agency, local government unit, Minnesota state colleges and
universities governed by the Board of Trustees of the Minnesota State Colleges
and Universities, University of Minnesota, or a court, that has entered into a
debt qualification plan an agreement with the commissioner to refer
debts to the commissioner for collection.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2012, section 16D.04, subdivision 3, is amended to read:
Subd. 3. Services. The commissioner shall provide collection
services for a state agency, and may provide for collection services for
a court, in accordance with the terms and conditions of a signed debt
qualification plan referring agencies other than state agencies.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2012, section 16D.04, subdivision 4, is amended to read:
Subd. 4. Authority
to contract. The commissioners
commissioner of revenue and management and budget may contract
with credit bureaus, private collection agencies, and other entities as
necessary for the collection of debts. A
private collection agency acting under a contract with the commissioner of
revenue or management and budget is subject to sections 332.31 to
332.45, except that the private collection agency may indicate that it is
acting under a contract with the state. The
commissioner may not delegate the powers provided under section 16D.08 to any
nongovernmental entity.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. Minnesota Statutes 2012, section 16D.07, is amended to read:
16D.07
NOTICE TO DEBTOR.
The referring agency shall send notice to
the debtor by United States mail or personal delivery at the debtor's last
known address at least 20 days before the debt is referred to the commissioner. The notice must state the nature and amount
of the debt, identify to whom the debt is owed, and inform the debtor of the
remedies available under this chapter. The
referring agency shall advise the debtor of collection costs imposed under
section 16D.11 and of the debtor's right to cancellation of collection costs
under section 16D.11, subdivision 3.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 6. Minnesota Statutes 2012, section 16D.11, subdivision 1, is amended to read:
Subdivision 1. Imposition. As determined by the commissioner of management
and budget revenue, collection costs shall be added to the debts
referred to the commissioner or private collection agency for collection. Collection costs are collectible by the
commissioner or private agency from the debtor at the same time and in the same
manner as the referred debt. The
referring agency shall advise the debtor of collection costs under this section
and the debtor's right to cancellation of collection costs under subdivision 3
at the time the agency sends notice to the debtor under section 16D.07. If the commissioner or private agency
collects an amount less than the total due, the payment is applied
proportionally to collection costs and the underlying debt unless the commissioner
of management and budget has waived this requirement for certain categories of
debt pursuant to the department's internal guidelines. Collection costs collected by the
commissioner under this subdivision or retained under subdivision 6 shall be
deposited
in the general fund as nondedicated receipts.
Collection costs collected by private agencies are appropriated to
the referring agency to pay the collection fees charged by the private agency. Collections of collection costs in excess of
collection agency fees must be deposited in the general fund as nondedicated
receipts.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 7. Minnesota Statutes 2012, section 16D.11, subdivision 3, is amended to read:
Subd. 3. Cancellation. Collection costs imposed under subdivision 1 shall be canceled and subtracted from the amount due if:
(1) the debtor's household income as defined in section 290A.03, subdivision 5, excluding the exemption subtractions in subdivision 3, paragraph (3) of that section, for the 12 months preceding the date of referral is less than twice the annual federal poverty guideline under United States Code, title 42, section 9902, subsection (2);
(2) within 60 days after the first contact
with the debtor by the enterprise commissioner or collection
agency, the debtor establishes reasonable cause for the failure to pay the debt
prior to referral of the debt to the enterprise commissioner;
(3) a good faith dispute as to the legitimacy or the amount of the debt is made, and payment is remitted or a payment agreement is entered into within 30 days after resolution of the dispute;
(4) good faith litigation occurs and the debtor's position is substantially justified, and if the debtor does not totally prevail, the debt is paid or a payment agreement is entered into within 30 days after the judgment becomes final and nonappealable; or
(5) collection costs have been added by the referring agency and are included in the amount of the referred debt.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2012, section 16D.11, subdivision 7, is amended to read:
Subd. 7. Adjustment
of rate. By June 1 of each year, the
commissioner shall determine the rate of collection costs for debts referred to
the enterprise commissioner during the next fiscal year. The rate is a percentage of the debts in an
amount that most nearly equals the costs of the enterprise commissioner
necessary to process and collect referred debts under this chapter. In no event shall the rate of the collection
costs exceed 25 percent of the debt. Determination
of the rate of collection costs under this section is not subject to the fee
setting requirements of section 16A.1283.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 9. Minnesota Statutes 2012, section 84A.20, subdivision 2, is amended to read:
Subd. 2. County
proposal to state. Under certain
conditions, The board of county commissioners of any county may by
resolution propose to the state that one or more areas in the county be taken
over by the state for afforestation, reforestation, flood control projects, or
other state purposes. The projects are
to be managed, controlled, and used for the purposes in subdivision 1 on lands
to be acquired by the state within the projects, as set forth in sections
84A.20 to 84A.30. The county board may
propose this if (1) the county contains lands suitable for the purposes
in subdivision 1, (2) on January 1, 1931, the taxes on more than 35 percent
of the taxable land in the county are delinquent, (3) on January 1, 1931, the
county's bonded ditch indebtedness, including accrued interest, equals or
exceeds nine percent of the assessed valuation of the county, exclusive of
money and credits.
The area taken over must include lands that have been assessed for all or part of the cost of the establishment and construction of public drainage ditches under state law, and on which the assessments or installments are delinquent. A certified copy of the county board's resolution must be filed with the department and considered and acted upon by the department. If approved by the department, it must then be submitted to, considered, and acted upon by the executive council. If approved by the Executive Council, the proposition must be formally accepted by the governor. Acceptance must be communicated in writing to and filed with the county auditor.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 10. Minnesota Statutes 2012, section 84A.31, subdivision 2, is amended to read:
Subd. 2. County
proposal to state. Under certain
conditions, The board of county commissioners of any county may by
resolution propose that the state take over part of the tax-delinquent lands in
the county. The board may propose
this if:
(1) the county contains land
suitable for the purposes in subdivision 1;.
(2) on January 1, 1933, the taxes on
more than 25 percent of the acreage of the lands in a town in the county are
delinquent, as shown by its tax books;
(3) on January 1, 1933, the taxes or
ditch assessments on more than 50 percent of the acreage of the lands to be
taken over are delinquent, as shown by the county's tax books; and
(4) on January 1, 1933, the bonded
ditch indebtedness of the county equals or exceeds 15 percent of the assessed
value of the county for 1932 as fixed by the Minnesota Tax Commission,
exclusive of money and credits.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 11. Minnesota Statutes 2012, section 115B.49, subdivision 4, is amended to read:
Subd. 4. Registration; fees. (a) The owner or operator of a dry cleaning facility shall register on or before October 1 of each year with the commissioner of revenue in a manner prescribed by the commissioner of revenue and pay a registration fee for the facility. The amount of the fee is:
(1) $500, for facilities with a full-time equivalence of fewer than five;
(2) $1,000, for facilities with a full-time equivalence of five to ten; and
(3) $1,500, for facilities with a full-time equivalence of more than ten.
The registration fee must be paid on or before October 18 or the owner or operator of a dry cleaning facility may elect to pay the fee in equal installments. Installment payments must be paid on or before October 18, on or before January 18, on or before April 18, and on or before June 18. All payments made after October 18 bear interest at the rate specified in section 270C.40.
(b) A person who sells dry cleaning
solvents for use by dry cleaning facilities in the state shall collect and
remit to the commissioner of revenue in a the same manner
prescribed by the commissioner of revenue, on or before the 20th day of the
month following the month in which the sales of dry cleaning solvents are made
for the taxes imposed under chapter 297A, a fee of:
(1) $3.50 for each gallon of perchloroethylene sold for use by dry cleaning facilities in the state;
(2) 70 cents for each gallon of hydrocarbon-based dry cleaning solvent sold for use by dry cleaning facilities in the state; and
(3) 35 cents for each gallon of other nonaqueous solvents sold for use by dry cleaning facilities in the state.
(c) The audit, assessment, appeal, collection, enforcement, and administrative provisions of chapters 270C and 289A apply to the fee imposed by this subdivision. To enforce this subdivision, the commissioner of revenue may grant extensions to file returns and pay fees, impose penalties and interest on the annual registration fee under paragraph (a) and the monthly fee under paragraph (b), and abate penalties and interest in the manner provided in chapters 270C and 289A. The penalties and interest imposed on taxes under chapter 297A apply to the fees imposed under this subdivision. Disclosure of data collected by the commissioner of revenue under this subdivision is governed by chapter 270B.
EFFECTIVE
DATE. This section is
effective for fees due after June 30, 2014.
Sec. 12. Minnesota Statutes 2012, section 163.06, subdivision 1, is amended to read:
Subdivision 1. Levy. The county board of any county in which
there are unorganized townships may levy a tax for road and bridge purposes
upon all the real and personal property in such unorganized townships,
exclusive of money and credits taxed under the provisions of chapter 285.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 13. Minnesota Statutes 2012, section 270.11, subdivision 1, is amended to read:
Subdivision 1. To act
as State Board of Equalization. The
commissioner of revenue shall have and exercise all the rights, powers and
authority by law vested in the State Board of Equalization, which board of
equalization is hereby continued, with full power and authority to review,
modify, and revise all of the acts and proceedings of the commissioner in so
far as they relate to the equalization and valuation of property assessed for
taxation, as prescribed by section 270.12.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 14. Minnesota Statutes 2012, section 270.12, subdivision 2, is amended to read:
Subd. 2. Meeting dates; duties. The board shall meet annually between April 15 and June 30 at the office of the commissioner of revenue and examine and compare the returns of the assessment of the property in the several counties, and equalize the same so that all the taxable property in the state shall be assessed at its market value, subject to the following rules:
(1) The board shall add to or deduct
from the aggregate valuation of the real property of every county, which
the board believes to be valued below or above its market value in
money, such percent as will bring the same to its market value in money;
(2) The board shall deduct from the
aggregate valuation of the real property of every county, which the board
believes to be valued above its market value in money, such percent as will
reduce the same to its market value in money;
(3) (2) If the board
believes the valuation for a part of a class determined by a range of market
value under clause (8) (6) or otherwise, a class, or classes of
the real property of any town or district in any county, or the valuation for a
part of a class, a class, or classes of the real property of any county not in
towns or cities, should be
raised
or reduced, without raising or reducing the other real property of such county,
or without raising or reducing it in the same ratio, the board may add to, or
take from, the valuation of a part of a class, a class, or classes in any one
or more of such towns or cities, or of the property not in towns or cities,
such percent as the board believes will raise or reduce the same to its market
value in money;
(4) (3) The board shall add
to or take from the aggregate valuation of any part of a class, a class,
or classes of personal property of any county, town, or city, which the board
believes to be valued below or above the market value thereof, such
percent as will raise the same to its market value in money;
(5) The board shall take from the
aggregate valuation of any part of a class, a class, or classes of personal
property in any county, town or city, which the board believes to be valued
above the market value thereof, such percent as will reduce the same to its
market value in money;
(6) (4) The board shall not
reduce the aggregate valuation of all the property of the state, as returned by
the several county auditors, more than one percent on the whole valuation
thereof;
(7) (5) When it would be of
assistance in equalizing values the board may require any county auditor to
furnish statements showing assessments of real and personal property of any
individuals, firms, or corporations within the county. The board shall consider and equalize such
assessments and may increase the assessment of individuals, firms, or
corporations above the amount returned by the county board of equalization when
it shall appear to be undervalued, first giving notice to such persons of the
intention of the board so to do, which notice shall fix a time and place of
hearing. The board shall not decrease
any such assessment below the valuation placed by the county board of equalization;
(8) (6) In equalizing values
pursuant to this section, the board shall utilize a 12-month assessment/sales
ratio study conducted by the Department of Revenue containing only sales that
are filed in the county auditor's office under section 272.115, by November 1
of the previous year and that occurred between October 1 of the year
immediately preceding the previous year and September 30 of the previous year.
The assessment/sales ratio study may separate the values of residential property into market value categories. The board may adjust the market value categories and the number of categories as necessary to create an adequate sample size for each market value category. The board may determine the adequate sample size. To the extent practicable, the methodology used in preparing the assessment/sales ratio study must be consistent with the most recent Standard on Assessment Sales Ratio Studies published by the Assessment Standards Committee of the International Association of Assessing Officers. The board may determine the geographic area used in preparing the study to accurately equalize values. A sales ratio study separating residential property into market value categories may not be used as the basis for a petition under chapter 278.
The sales prices used in the study must be discounted for terms of financing. The board shall use the median ratio as the statistical measure of the level of assessment for any particular category of property; and
(9) (7) The board shall
receive from each county the estimated market values on the assessment date
falling within the study period for all parcels by magnetic tape or other
a medium as prescribed by the commissioner of revenue.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 15. Minnesota Statutes 2012, section 270.12, subdivision 4, is amended to read:
Subd. 4. Public
utility property. For purposes of
equalization only, public utility personal property shall be treated as a
separate class of property notwithstanding the fact that its class rate is
the same as commercial-industrial property.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 16. Minnesota Statutes 2012, section 270A.03, subdivision 2, is amended to read:
Subd. 2. Claimant
agency. "Claimant agency"
means any state agency, as defined by section 14.02, subdivision 2, the regents
of the University of Minnesota, any district court of the state, any county,
any statutory or home rule charter city, including a city that is presenting a
claim for a municipal hospital or a public library or a municipal ambulance
service, a hospital district, a private nonprofit hospital that leases its
building from the county or city in which it is located, any ambulance service licensed
under chapter 144E, any public agency responsible for child support
enforcement, any public agency responsible for the collection of court-ordered
restitution, and any public agency established by general or special law that
is responsible for the administration of a low-income housing program, and
the Minnesota collection enterprise as defined in section 16D.02, subdivision
8, for the purpose of collecting the costs imposed under section 16D.11.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 17. Minnesota Statutes 2012, section 270B.14, subdivision 3, is amended to read:
Subd. 3. Administration
of enterprise, and job opportunity, and biotechnology and
health sciences industry zone programs.
The commissioner may disclose return information relating to the
taxes imposed by chapters 290 and 297A to the Department of Employment and
Economic Development or a municipality with a border city enterprise zone as
defined under section 469.166, but only as necessary to administer the funding
limitations under section 469.169, or to the Department of Employment and
Economic Development and appropriate officials from the local government units
in which a qualified business is located but only as necessary to enforce the job
opportunity building zone benefits under section 469.315, or biotechnology
and health sciences industry zone benefits under section 469.336.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 18. Minnesota Statutes 2012, section 270C.085, is amended to read:
270C.085
NOTIFICATION REQUIREMENTS; SALES AND USE TAXES.
The commissioner of revenue shall
establish a means of electronically notifying persons holding a sales tax
permit under section 297A.84 of any statutory change in chapter 297A and any
issuance or change in any administrative rule, revenue notice, or sales tax
fact sheet or other written information provided by the department explaining
the interpretation or administration of the tax imposed under that chapter. The notification must indicate the basic
subject of the statute, rule, fact sheet, or other material and provide an
electronic link to the material. Any
person holding a sales tax permit that provides an electronic address to the
department must receive these notifications unless they specifically request
electronically, or in writing, to be removed from the notification list. This requirement does not replace traditional
means of notifying the general public or persons without access to electronic
communications of changes in the sales tax law.
The electronic notification must begin no later than December 31,
2009.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 19. Minnesota Statutes 2012, section 270C.52, subdivision 2, is amended to read:
Subd. 2. Payment agreements. (a) When any portion of any tax payable to the commissioner together with interest and penalty thereon, if any, has not been paid, the commissioner may extend the time for payment for a further period. When the authority of this section is invoked, the extension shall be evidenced by written agreement signed by the taxpayer and the commissioner, stating the amount of the tax with penalty and interest, if any, and providing for the payment of the amount in installments.
(b) The agreement may contain a confession of judgment for the amount and for any unpaid portion thereof. If the agreement contains a confession of judgment, the confession of judgment must provide that the commissioner may enter judgment against the taxpayer in the district court of the county of residence as shown upon the taxpayer's tax return for the unpaid portion of the amount specified in the extension agreement.
(c) The agreement shall provide that it can be terminated, after notice by the commissioner, if information provided by the taxpayer prior to the agreement was inaccurate or incomplete, collection of the tax covered by the agreement is in jeopardy, there is a subsequent change in the taxpayer's financial condition, the taxpayer has failed to make a payment due under the agreement, or the taxpayer has failed to pay any other tax or file a tax return coming due after the agreement.
(d) The notice must be given at least 14 calendar days prior to termination, and shall advise the taxpayer of the right to request a reconsideration from the commissioner of whether termination is reasonable and appropriate under the circumstances. A request for reconsideration does not stay collection action beyond the 14-day notice period. If the commissioner has reason to believe that collection of the tax covered by the agreement is in jeopardy, the commissioner may proceed under section 270C.36 and terminate the agreement without regard to the 14-day period.
(e) The commissioner may accept other collateral the commissioner considers appropriate to secure satisfaction of the tax liability. The principal sum specified in the agreement shall bear interest at the rate specified in section 270C.40 on all unpaid portions thereof until the same has been fully paid or the unpaid portion thereof has been entered as a judgment. The judgment shall bear interest at the rate specified in section 270C.40.
(f) If it appears to the commissioner that the tax reported by the taxpayer is in excess of the amount actually owing by the taxpayer, the extension agreement or the judgment entered pursuant thereto shall be corrected. If after making the extension agreement or entering judgment with respect thereto, the commissioner determines that the tax as reported by the taxpayer is less than the amount actually due, the commissioner shall assess a further tax in accordance with the provisions of law applicable to the tax.
(g) The authority granted to the commissioner by this section is in addition to any other authority granted to the commissioner by law to extend the time of payment or the time for filing a return and shall not be construed in limitation thereof.
(h) The commissioner shall charge a fee
for entering into payment agreements that reflects the commissioner's costs
for entering into payment agreements.
The fee is set at $50 and is charged for entering into a payment
agreement, for entering into a new payment agreement after the taxpayer has
defaulted on a prior agreement, and for entering into a new payment agreement
as a result of renegotiation of the terms of an existing agreement. The fee is paid to the commissioner before
the payment agreement becomes effective and does not reduce the amount of the
liability.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 20. Minnesota Statutes 2012, section 272.01, subdivision 1, is amended to read:
Subdivision 1. Generally
taxable. All real and personal
property in this state, and all personal property of persons residing
therein, including the property of corporations, banks, banking companies, and
bankers, is taxable, except Indian lands and such other property as is by
law exempt from taxation.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 21. Minnesota Statutes 2012, section 272.01, subdivision 3, is amended to read:
Subd. 3. Exceptions. The provisions of subdivision 2 shall not apply to:
(a) Federal property for which payments are made in lieu of taxes in amounts equivalent to taxes which might otherwise be lawfully assessed;
(b) Real estate exempt from ad valorem
taxes and taxes in lieu thereof which is leased, loaned, or otherwise made
available to telephone companies or electric, light and power companies upon which
personal property consisting of transmission and distribution lines is situated
and assessed pursuant to sections 273.37, 273.38, 273.40 and 273.41, or upon
which are situated the communication lines of express, railway, or
telephone or telegraph companies, or pipelines used for the transmission
and distribution of petroleum products, or the equipment items of a cable
communications company subject to sections 238.35 to 238.42;
(c) Property presently owned by any educational institution chartered by the territorial legislature;
(d) Indian lands;
(e) Property of any corporation organized as a tribal corporation under the Indian Reorganization Act of June 18, 1934, (Statutes at Large, volume 48, page 984);
(f) Real property owned by the state and leased pursuant to section 161.23 or 161.431, and acts amendatory thereto;
(g) Real property owned by a seaway port authority on June 1, 1967, upon which there has been constructed docks, warehouses, tank farms, administrative and maintenance buildings, railroad and ship terminal facilities and other maritime and transportation facilities or those directly related thereto, together with facilities for the handling of passengers and baggage and for the handling of freight and bulk liquids, and personal property owned by a seaway port authority used or usable in connection therewith, when said property is leased to a private individual, association or corporation, but only when such lease provides that the said facilities are available to the public for the loading and unloading of passengers and their baggage and the handling, storage, care, shipment, and delivery of merchandise, freight and baggage and other maritime and transportation activities and functions directly related thereto, but not including property used for grain elevator facilities; it being the declared policy of this state that such property when so leased is public property used exclusively for a public purpose, notwithstanding the one-year limitation in the provisions of section 273.19;
(h) Notwithstanding the provisions of clause (g), when the annual rental received by a seaway port authority in any calendar year for such leased property exceeds an amount reasonably required for administrative expense of the authority per year, plus promotional expense for the authority not to exceed the sum of $100,000 per year, to be expended when and in the manner decided upon by the commissioners, plus an amount sufficient to pay all installments of principal and interest due, or to become due, during such calendar year and the next succeeding year on any revenue bonds issued by the authority, plus 25 percent of the gross annual rental to be retained by the authority for improvement, development, or other contingencies, the authority shall make a payment in lieu of real
and personal property taxes of a reasonable portion of the remaining annual rental to the county treasurer of the county in which such seaway port authority is principally located. Any such payments to the county treasurer shall be disbursed by the treasurer on the same basis as real estate taxes are divided among the various governmental units, but if such port authority shall have received funds from the state of Minnesota and funds from any city and county pursuant to Laws 1957, chapters 648, 831, and 849 and acts amendatory thereof, then such disbursement by the county treasurer shall be on the same basis as real estate taxes are divided among the various governmental units, except that the portion of such payments which would otherwise go to other taxing units shall be divided equally among the state of Minnesota and said county and city.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 22. Minnesota Statutes 2012, section 272.025, subdivision 1, is amended to read:
Subdivision 1. Statement
of exemption. (a) Except in the case
of property owned by the state of Minnesota or any political subdivision
thereof, and property exempt from taxation under section 272.02, subdivisions
9, 10, 13, 15, 18, 20, and 22 to 25, and at the times provided in subdivision
3, a taxpayer claiming an exemption from taxation on property described in
section 272.02, subdivisions 1 2 to 33, must file a statement of
exemption with the assessor of the assessment district in which the property is
located.
(b) A taxpayer claiming an exemption from taxation on property described in section 272.02, subdivision 10, must file a statement of exemption with the commissioner of revenue, on or before February 15 of each year for which the taxpayer claims an exemption.
(c) In case of sickness, absence or other disability or for good cause, the assessor or the commissioner may extend the time for filing the statement of exemption for a period not to exceed 60 days.
(d) The commissioner of revenue shall prescribe the form and contents of the statement of exemption.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 23. Minnesota Statutes 2012, section 272.027, subdivision 1, is amended to read:
Subdivision 1. Electricity
generated to produce goods and services.
Personal property used to generate electric power is exempt from
property taxation if the electric power is used to manufacture or produce
goods, products, or services, other than electric power, by the owner of the
electric generation plant. Except as
provided in subdivisions 2 and 3, The exemption does not apply to property
used to produce electric power for sale to others and does not apply to real
property. In determining the value
subject to tax, a proportionate share of the value of the generating
facilities, equal to the proportion that the power sold to others bears to the
total generation of the plant, is subject to the general property tax in the
same manner as other property. Power generated
in such a plant and exchanged for an equivalent amount of power that is used
for the manufacture or production of goods, products, or services other than electric power by the owner
of the generating plant is considered to be used by the owner of the plant.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 24. Minnesota Statutes 2012, section 272.029, subdivision 6, is amended to read:
Subd. 6. Distribution of revenues. Revenues from the taxes imposed under subdivision 5 must be part of the settlement between the county treasurer and the county auditor under section 276.09. The revenue must be distributed by the county auditor or the county treasurer to local taxing jurisdictions in which the wind energy
conversion
system is located as follows: beginning
with distributions in 2010, 80 percent to counties; and 20 percent
to cities and townships; and for distributions occurring in 2006 to 2009, 80
percent to counties; 14 percent to cities and townships; and six percent to
school districts.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 25. Minnesota Statutes 2013 Supplement, section 273.032, is amended to read:
273.032
MARKET VALUE DEFINITION.
(a) Unless otherwise provided, for the purpose of determining any property tax levy limitation based on market value or any limit on net debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market value, any qualification to receive state aid based on market value, or any state aid amount based on market value, the terms "market value," "estimated market value," and "market valuation," whether equalized or unequalized, mean the estimated market value of taxable property within the local unit of government before any of the following or similar adjustments for:
(1) the market value exclusions under:
(i) section 273.11, subdivisions 14a and 14c (vacant platted land);
(ii) section 273.11, subdivision 16 (certain improvements to homestead property);
(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business properties);
(iv) section 273.11, subdivision 21 (homestead property damaged by mold);
(v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);
(vi) section 273.13, subdivision 34 (homestead of a disabled veteran or family caregiver);
(vii) section 273.13, subdivision 35 (homestead market value exclusion); or
(2) the deferment of value under:
(i) the Minnesota Agricultural Property Tax Law, section 273.111;
(ii) the Aggregate Resource Preservation
Law, section 273.1115;
(iii) (ii) the Minnesota Open
Space Property Tax Law, section 273.112;
(iv) (iii) the rural preserves
property tax program, section 273.114; or
(v) (iv) the Metropolitan
Agricultural Preserves Act, section 473H.10; or
(3) the adjustments to tax capacity for:
(i) tax increment financing under sections 469.174 to 469.1794;
(ii) fiscal disparities under chapter 276A or 473F; or
(iii) powerline credit under section 273.425.
(b) Estimated market value under paragraph (a) also includes the market value of tax-exempt property if the applicable law specifically provides that the limitation, qualification, or aid calculation includes tax-exempt property.
(c) Unless otherwise provided, "market value," "estimated market value," and "market valuation" for purposes of property tax levy limitations and calculation of state aid, refer to the estimated market value for the previous assessment year and for purposes of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital notes refer to the estimated market value as last finally equalized.
(d) For purposes of a provision of a home rule charter or of any special law that is not codified in the statutes and that imposes a levy limitation based on market value or any limit on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market value, the terms "market value," "taxable market value," and "market valuation," whether equalized or unequalized, mean "estimated market value" as defined in paragraph (a).
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 26. Minnesota Statutes 2012, section 273.061, subdivision 6, is amended to read:
Subd. 6. Salaries;
expenses. The salaries of the county
assessor and assistants and clerical help, shall be fixed by the board of
county commissioners and shall be payable in monthly installments out of
the general revenue fund of the county. In
counties with a population of less than 50,000 inhabitants, according to the
then last preceding federal census, the board of county commissioners shall not
fix the salary of the county assessor at an amount below the following
schedule:
In counties with a population of less
than 6,500, $5,900;
In counties with a population of 6,500
but less than 12,000, $6,200;
In counties with a population of 12,000
but less than 16,000, $6,500;
In counties with a population of 16,000
but less than 21,000, $6,700;
In counties with a population of 21,000
but less than 30,000, $6,900;
In counties with a population of 30,000
but less than 39,500, $7,100;
In counties with a population of 39,500
but less than 50,000, $7,300;
In counties with a population of 50,000
or more, $8,300.
In addition to their salaries, the county assessor and assistants shall be allowed their expenses for reasonable and necessary travel in the performance of their duties, including necessary travel, lodging and meal expense incurred by them while attending meetings of instructions or official hearings called by the commissioner of revenue. These expenses shall be payable out of the general revenue fund of the county, and shall be allowed on the same basis as such expenses are allowed to other county officers.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 27. Minnesota Statutes 2012, section 273.10, is amended to read:
273.10
SCHOOL DISTRICTS.
When assessing personal property the
county assessor shall designate the number of the school district in which each
person assessed is liable for tax, by writing the number of the district
opposite each assessment in a column provided for that purpose in the
assessment book. When the personal
property of any person is assessable in several school districts, the amount in
each shall be assessed separately, and the name of the owner placed opposite
each amount.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 28. Minnesota Statutes 2012, section 273.11, subdivision 13, is amended to read:
Subd. 13. Valuation
of income-producing property. Beginning
with the 1995 assessment, Only accredited assessors or senior accredited
assessors or other licensed assessors who have successfully completed at least
two income-producing property appraisal courses may value income-producing
property for ad valorem tax purposes. "Income-producing
property" as used in this subdivision means the taxable property in class
3a and 3b in section 273.13, subdivision 24; class 4a and 4c, except for
seasonal recreational property not used for commercial purposes; and class 5 in
section 273.13, subdivision 31. "Income-producing
property" includes any property in class 4e in section 273.13, subdivision
25, that would be income-producing property under the definition in this
subdivision if it were not substandard. "Income-producing
property appraisal course" as used in this subdivision means a course of
study of approximately 30 instructional hours, with a final comprehensive test. An assessor must successfully complete the
final examination for each of the two required courses. The course must be approved by the board of
assessors.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 29. Minnesota Statutes 2012, section 273.112, subdivision 6a, is amended to read:
Subd. 6a. Guidelines
issued by commissioner. The
commissioner of revenue shall develop and issue guidelines for qualification by
private golf clubs under this section covering the access to and use of the
golf course by members and other adults so as to be consistent with the
purposes and terms of this section. The
guidelines shall be mailed to the county attorney and assessor of each county
not later than 60 days following May 26, 1989.
Within 15 days of receipt of the guidelines from the commissioner, the
assessor shall mail a copy of the guidelines to each golf club in the county.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 30. Minnesota Statutes 2013 Supplement, section 273.1325, subdivision 2, is amended to read:
Subd. 2. Methodology. In making its annual assessment/sales ratio studies, the Department of Revenue must use a methodology consistent with the most recent Standard on Assessment Ratio Studies published by the assessment standards committee of the International Association of Assessing Officers. The commissioner of revenue shall supplement this general methodology with specific procedures necessary for execution of the study in accordance with other Minnesota laws impacting the assessment/sales ratio study. The commissioner shall document these specific procedures in writing and shall publish the procedures in the State Register, but these procedures will not be considered "rules" pursuant to the Minnesota Administrative Procedure Act. When property is sold and the purchaser changes its use in a manner that would result in a change of classification of the property, the assessment sales ratio study under this subdivision must take into account that changed classification as soon as practicable. A change in status from homestead to nonhomestead or from nonhomestead to homestead is not a
change
under this subdivision. For purposes of
this section, sections 270.12, subdivision 2, clause (8) (6), and
278.05, subdivision 4, the commissioner of revenue shall exclude from the
assessment/sales ratio study the sale of any nonagricultural property which
does not contain an improvement, if (1) the statutory basis on which the
property's taxable value as most recently assessed is less than market value as
defined in section 273.11, or (2) the property has undergone significant
physical change or a change of use since the most recent assessment.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 31. Minnesota Statutes 2013 Supplement, section 273.1398, subdivision 3, is amended to read:
Subd. 3. Disparity
reduction aid. The amount of
disparity aid certified for each taxing district within each unique taxing
jurisdiction is the amount certified for taxes payable in the prior year
shall be multiplied by the ratio of (1) the jurisdiction's tax capacity
using the class rates for taxes payable in the year for which aid is being
computed, to (2) its tax capacity using the class rates for taxes payable in
the year prior to that for which aid is being computed, both based upon taxable
market values for taxes payable in the year prior to that for which aid is
being computed. If the commissioner
determines that insufficient information is available to reasonably and timely
calculate the numerator in this ratio for the first taxes payable year that a
class rate change or new class rate is effective, the commissioner shall omit
the effects of that class rate change or new class rate when calculating this
ratio for aid payable in that taxes payable year. For aid payable in the year following a year
for which such omission was made, the commissioner shall use in the denominator
for the class that was changed or created, the tax capacity for taxes payable
two years prior to that in which the aid is payable, based on taxable market
values for taxes payable in the year prior to that for which aid is being
computed.
EFFECTIVE
DATE. This section is
effective beginning for taxes payable in 2015.
Sec. 32. Minnesota Statutes 2012, section 273.18, is amended to read:
273.18
LISTING, VALUATION, AND ASSESSMENT OF EXEMPT PROPERTY BY COUNTY AUDITORS.
(a) In every sixth year after the year 1926
2010, the county auditor shall enter, in a separate place in the real
estate assessment books, the description of each tract of real property
exempt by law from taxation, with the name of the owner, if known, and
the assessor shall value and assess the same in the same manner that other real
property is valued and assessed, and shall designate in each case the purpose
for which the property is used.
(b) For purposes of the apportionment of fire state aid under section 69.021, subdivision 7, the county auditor shall include on the abstract of assessment of exempt real property filed under this section, the total number of acres of all natural resources lands for which in lieu payments are made under sections 477A.11 to 477A.14. The assessor shall estimate its market value, provided that if the assessor is not able to estimate the market value of the land on a per parcel basis, the assessor shall furnish the commissioner of revenue with an estimate of the average value per acre of this land within the county.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 33. Minnesota Statutes 2012, section 274.01, subdivision 1, is amended to read:
Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town board of a town, or the council or other governing body of a city, is the board of appeal and equalization except (1) in cities whose charters provide for a board of equalization or (2) in any city or town that has transferred its local board of review power and duties to the county board as provided in subdivision 3. The county assessor shall fix a day and time when the board or the board of equalization shall meet in the assessment districts of the county. Notwithstanding any law or city
charter to the contrary, a city board of equalization shall be referred to as a board of appeal and equalization. On or before February 15 of each year the assessor shall give written notice of the time to the city or town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings must be held between April 1 and May 31 each year. The clerk shall give published and posted notice of the meeting at least ten days before the date of the meeting.
The board shall meet at the office of the clerk to review the assessment and classification of property in the town or city. No changes in valuation or classification which are intended to correct errors in judgment by the county assessor may be made by the county assessor after the board has adjourned in those cities or towns that hold a local board of review; however, corrections of errors that are merely clerical in nature or changes that extend homestead treatment to property are permitted after adjournment until the tax extension date for that assessment year. The changes must be fully documented and maintained in the assessor's office and must be available for review by any person. A copy of the changes made during this period in those cities or towns that hold a local board of review must be sent to the county board no later than December 31 of the assessment year.
(b) The board shall determine whether the taxable property in the town or city has been properly placed on the list and properly valued by the assessor. If real or personal property has been omitted, the board shall place it on the list with its market value, and correct the assessment so that each tract or lot of real property, and each article, parcel, or class of personal property, is entered on the assessment list at its market value. No assessment of the property of any person may be raised unless the person has been duly notified of the intent of the board to do so. On application of any person feeling aggrieved, the board shall review the assessment or classification, or both, and correct it as appears just. The board may not make an individual market value adjustment or classification change that would benefit the property if the owner or other person having control over the property has refused the assessor access to inspect the property and the interior of any buildings or structures as provided in section 273.20. A board member shall not participate in any actions of the board which result in market value adjustments or classification changes to property owned by the board member, the spouse, parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, or niece of a board member, or property in which a board member has a financial interest. The relationship may be by blood or marriage.
(c) A local board may reduce assessments upon petition of the taxpayer but the total reductions must not reduce the aggregate assessment made by the county assessor by more than one percent. If the total reductions would lower the aggregate assessments made by the county assessor by more than one percent, none of the adjustments may be made. The assessor shall correct any clerical errors or double assessments discovered by the board without regard to the one percent limitation.
(d) A local board does not have authority to grant an exemption or to order property removed from the tax rolls.
(e) A majority of the members may act at the
meeting, and adjourn from day to day until they finish hearing the cases presented. The assessor shall attend, with the
assessment books and papers, and take part in the proceedings, but must not
vote. The county assessor, or an
assistant delegated by the county assessor shall attend the meetings. The board shall list separately, on a form
appended to the assessment book, all omitted property added to the list by
the board and all items of property increased or decreased, with the market
value of each item of property, added or changed by the board, placed
opposite the item. The county
assessor shall enter all changes made by the board in the assessment book.
(f) Except as provided in subdivision 3, if a
person fails to appear in person, by counsel, or by written communication
before the board after being duly notified of the board's intent to raise the
assessment of the property, or if a person feeling aggrieved by an assessment
or classification fails to apply for a review of the assessment or
classification, the person may not appear before the county board of appeal and
equalization for a review of the assessment or classification. This paragraph does not apply if an
assessment was made after the local board meeting, as provided in section
273.01, or if the person can establish not having received notice of market
value at least five days before the local board meeting.
(g) The local board must complete its work and adjourn within 20 days from the time of convening stated in the notice of the clerk, unless a longer period is approved by the commissioner of revenue. No action taken after that date is valid. All complaints about an assessment or classification made after the meeting of the board must be heard and determined by the county board of equalization. A nonresident may, at any time, before the meeting of the board file written objections to an assessment or classification with the county assessor. The objections must be presented to the board at its meeting by the county assessor for its consideration.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 34. Minnesota Statutes 2012, section 274.01, subdivision 2, is amended to read:
Subd. 2. Special
board; duties delegated. The
governing body of a city, including a city whose charter provides for a
board of equalization, may appoint a special board of review. The city may delegate to the special board of
review all of the powers and duties in subdivision 1. The special board of review shall serve at
the direction and discretion of the appointing body, subject to the
restrictions imposed by law. The
appointing body shall determine the number of members of the board, the
compensation and expenses to be paid, and the term of office of each member. At least one member of the special board of
review must be an appraiser, realtor, or other person familiar with property
valuations in the assessment district.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 35. Minnesota Statutes 2012, section 275.08, subdivision 1a, is amended to read:
Subd. 1a. Computation
of tax capacity. For taxes
payable in 1989, the county auditor shall compute the gross tax capacity for
each parcel according to the class rates specified in section 273.13. The gross tax capacity will be the
appropriate class rate multiplied by the parcel's market value. For taxes payable in 1990 and subsequent
years, The county auditor shall compute the net tax capacity for each
parcel according to the class rates specified in section 273.13. The net tax capacity will be the appropriate
class rate multiplied by the parcel's market value.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 36. Minnesota Statutes 2012, section 275.08, subdivision 1d, is amended to read:
Subd. 1d. Additional
adjustment. If, after computing each
local government's adjusted local tax rate within a unique taxing jurisdiction
pursuant to subdivision 1c, the auditor finds that the total adjusted local tax
rate of all local governments combined is less than 90 percent of gross tax
capacity for taxes payable in 1989 and 90 percent of net tax capacity for
taxes payable in 1990 and thereafter, the auditor shall increase each local
government's adjusted local tax rate proportionately so the total adjusted
local tax rate of all local governments combined equals 90 percent. The total amount of the increase in tax
resulting from the increased local tax rates must not exceed the amount of
disparity aid allocated to the unique taxing district under section 273.1398. The auditor shall certify to the Department
of Re