STATE OF
MINNESOTA
EIGHTY-NINTH
SESSION - 2015
_____________________
FIFTIETH
DAY
Saint Paul, Minnesota, Wednesday, April 29, 2015
The House of Representatives convened at 10:00
a.m. and was called to order by Paul Torkelson, Speaker pro tempore.
Prayer was offered by the Reverend Amanda
Lunemann, Good Samaritan United Methodist Church, Edina, Minnesota.
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:
Anderson, M.
Anderson, P.
Anderson, S.
Anzelc
Applebaum
Backer
Baker
Barrett
Bennett
Bernardy
Bly
Carlson
Christensen
Clark
Considine
Cornish
Daniels
Davids
Davnie
Dean, M.
Dehn, R.
Dettmer
Drazkowski
Erhardt
Erickson
Fabian
Fenton
Fischer
Franson
Freiberg
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Halverson
Hamilton
Hancock
Hansen
Hausman
Heintzeman
Hertaus
Hilstrom
Hoppe
Hornstein
Hortman
Howe
Isaacson
Johnson, B.
Johnson, C.
Johnson, S.
Kahn
Kelly
Kiel
Knoblach
Koznick
Kresha
Laine
Lenczewski
Lesch
Liebling
Lien
Lillie
Loeffler
Lohmer
Loon
Loonan
Lucero
Lueck
Mack
Mahoney
Mariani
Marquart
Masin
McDonald
McNamara
Melin
Miller
Moran
Mullery
Murphy, E.
Murphy, M.
Nash
Nelson
Newberger
Newton
Nornes
Norton
O'Driscoll
O'Neill
Pelowski
Peppin
Persell
Petersburg
Peterson
Pierson
Pinto
Poppe
Pugh
Quam
Rarick
Rosenthal
Runbeck
Sanders
Schoen
Schomacker
Schultz
Scott
Selcer
Simonson
Slocum
Smith
Sundin
Swedzinski
Theis
Thissen
Torkelson
Uglem
Urdahl
Vogel
Wagenius
Ward
Whelan
Wills
Winkler
Yarusso
Youakim
Zerwas
Spk. Daudt
A quorum was present.
Albright was excused.
Allen was excused until 1:25 p.m. Metsa was excused until 1:30 p.m. Atkins was excused until 1:55 p.m. Dill was excused until 2:05 p.m.
The
Speaker assumed the Chair.
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. 1647 and H. F. No. 1733, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.
Kelly moved that S. F. No. 1647 be substituted for H. F. No. 1733 and that the House File be indefinitely postponed. The motion prevailed.
REPORTS OF STANDING COMMITTEES AND DIVISIONS
Knoblach from the Committee on Ways and Means to which was referred:
H. F. No. 1437, A bill for an act relating to agriculture; establishing a budget for agriculture; appropriating money for agriculture, animal health, and agricultural utilization research; making policy and technical changes to various agricultural related provisions, including provisions related to pesticide control, plant protection, nursery law, seeds, dairy, food handlers, food, farmland, farming, and loans; modifying license exclusions for the direct sale of certain prepared food; establishing the Agriculture Research, Education, Extension, and Technology Transfer Board; providing incentive payments; requiring studies; requiring reports; providing a vocational training pilot program; establishing the farm opportunity loan program; modifying fees and surcharges; creating accounts; amending Minnesota Statutes 2014, sections 13.643, subdivision 1; 18B.01, subdivisions 28, 29; 18B.05, subdivision 1; 18B.32, subdivision 1; 18B.33, subdivision 1; 18B.34, subdivision 1; 18C.425, subdivision 6; 18C.70, subdivision 2; 18G.10, subdivisions 3, 4, 5; 18H.02, subdivision 20, by adding subdivisions; 18H.06, subdivision 2; 18H.07; 18H.17; 21.89, subdivision 2; 21.891, subdivisions 2, 5; 25.341, subdivision 2; 25.39, subdivisions 1, 1a; 28A.03, by adding a subdivision; 32.075; 32.105; 41B.03, subdivision 6, by adding a subdivision; 41B.04, subdivision 17; 41B.043, subdivision 3; 41B.045, subdivisions 3, 4; 41B.046, subdivision 5; 41B.047, subdivisions 1, 4; 41B.048, subdivision 6; 41B.049, subdivision 4; 41B.055, subdivision 3; 41B.056, subdivision 2; 41B.06; 135A.52, by adding a subdivision; 500.24, subdivision 4; Laws 2014, chapter 312, article 12, section 3; proposing coding for new law in Minnesota Statutes, chapters 18C; 28A; 41A; 41B; repealing Minnesota Statutes 2014, sections 17.115; 28A.15, subdivisions 9, 10; 116V.03.
Reported the same back with the following amendments:
Page 6, line 17, delete "$3,550,000" and insert "$5,000,000" and delete "$4,100,000" and insert "$5,000,000"
Page 6, line 28, after the period, insert "Of these amounts, at least $600,000 each year is for agriculture rapid response under Minnesota Statutes, section 41A.14, subdivision 2, clause (2)."
Page 7, delete lines 1 to 8
Page 7, line 9, delete "$500,000" and insert "$383,000"
Page 7, delete line 19 and insert "If the appropriation in either year is not sufficient to award full payment to all eligible producers, the commissioner may transfer a sum sufficient from the appropriation for the agricultural growth, research, and innovation program under this subdivision. Notwithstanding Minnesota Statutes, section 16A.28, the first year appropriation is available until June 30, 2017, and the second year appropriation is available until June 30, 2018."
Page 7, line 20, delete everything before "The"
Page 7, line 23, after the period, insert "These are onetime appropriations."
Page 7, line 24, delete "$6,280,000" and insert "$10,235,000" and delete "$6,223,000" and insert "$10,235,000"
Page 11, line 27, delete "$75,000" and insert "$150,000" and delete "$75,000" and insert "$150,000"
Page 14, line 6, delete "5,918,000" and insert "5,318,000" and delete "5,984,000" and insert "5,384,000"
Page 14, delete lines 7 to 10
Page 14, line 12, delete "2,643,000" and insert "3,643,000" and delete "2,643,000" and insert "3,643,000"
Page 14, delete section 5 and insert:
"Sec. 5. AVIAN
INFLUENZA EMERGENCY RESPONSE.
(a) $514,000 is appropriated in fiscal
year 2015 from the general fund to the commissioner of agriculture for the
costs of avian influenza emergency response activities not covered by federal
funding. This is a onetime appropriation
and is available until June 30, 2016.
(b) $379,000 is appropriated in fiscal
year 2015 from the general fund to the Board of Animal Health for the costs of
avian influenza emergency response activities not covered by federal funding. This is a onetime appropriation and is
available until June 30, 2016.
(c) If
an appropriation in this section is enacted in more than one act, the
appropriation is to be given effect only once.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 6. AVIAN
INFLUENZA; FEDERAL FUNDS APPROPRIATION AND REPORTING.
Any federal money received in fiscal years 2015 through 2017 by the commissioner of agriculture or the Board of Animal Health to address avian influenza is appropriated in the fiscal year when it is received. By May 8, 2015, the commissioner of management and budget shall report the anticipated federal funds appropriated under this section and their intended purpose to the Legislative Advisory Commission, consistent with the urgent federal funds request procedure under Minnesota Statutes, section 3.3005, subdivision 4. By January 15, 2018, the commissioner of management and budget shall report the actual federal funds received and appropriated under this section and their actual use to the Legislative Advisory Commission."
Page 29, line 5, after "TRANSFER" insert "ADVISORY"
Page 29, line 7, after "Transfer" insert "Advisory"
Page 29, line 33, delete "provide for" and insert "recommend to the commissioner"
Page 30, line 2, delete "provide" and insert "recommend and the commissioner shall determine and award"
Page 30, line 12, before "mentoring" insert "and" and delete ", graduate debt forgiveness, and high school programs"
Page 32, line 4, delete "2,850,000" and insert "57,885"
Page 32, line 6, delete "17,100,000" and insert "340,499" and after the period, insert "The commissioner shall award payments on a first-come, first-served basis within the limits of available funding."
Page 34, line 29, delete "99,999,999" and insert "2,122,443"
Page 34, line 31, delete "599,999,999" and insert "12,484,961"
Page 34, line 32, after the period, insert "The commissioner shall award payments on a first-come, first-served basis within the limits of available funding."
Page 36, line 34, delete "30,000" and insert "1,362"
Page 37, line 2, delete "150,000" and insert "6,810" and after the period, insert "The commissioner shall award payments on a first-come, first-served basis within the limits of available funding."
Adjust amounts accordingly
Amend the title as follows:
Page 1, line 8, after "Transfer" insert "Advisory"
With the recommendation that when so amended the bill be re-referred to the Committee on Rules and Legislative Administration.
The report was adopted.
Davids from the Committee on Taxes to which was referred:
H. F. No. 1590, A bill for an act relating to taxation; making technical and clarifying changes to individual income and corporate franchise taxes, estate taxes, sales and use taxes, special taxes, property taxes, and other taxes and tax provisions; amending Minnesota Statutes 2014, sections 69.021, subdivision 5; 270A.03, subdivision 5; 270C.35, by adding a subdivision; 270C.72, subdivision 4; 272.02, subdivision 9; 273.032; 273.33, subdivisions 1, 2; 274.01, subdivision 1; 274.135, subdivision 3; 275.065, subdivision 1; 282.01, subdivisions 1a, 1d; 289A.08, subdivision 11; 289A.09, subdivision 2; 290.01, subdivisions 19b, 19c, 19d; 290.0671, subdivision 6a; 290.0672, subdivision 1; 290.091, subdivision 3; 290.0921, subdivision 3; 290.0922, subdivision 2; 291.031; 296A.01, subdivision 42; 296A.07, subdivision 1; 297A.82, subdivision 4a; 297A.94; 297H.06, subdivision 2; 297I.05, subdivision 2; 297I.10, subdivisions 1, 3; 298.01, subdivisions 3b, 4c; 469.190, by adding a subdivision; Laws 2014, chapter 308, article 9, section 94; repealing Minnesota Statutes 2014, sections 273.111, subdivision 9a; 281.22; Minnesota Rules, part 8092.2000.
Reported the same back with the following amendments:
Page 1, line 19, before "INDIVIDUAL" insert "DEPARTMENT OF REVENUE TECHNICAL PROVISIONS:"
Page 14, line 18, before "SALES" insert "DEPARTMENT OF REVENUE TECHNICAL PROVISIONS:"
Page 14, delete section 2
Page 16, delete section 3
Page 17, line 4, before "SPECIAL" insert "DEPARTMENT OF REVENUE TECHNICAL PROVISIONS:"
Page 22, line 5, before "PROPERTY" insert "DEPARTMENT OF REVENUE TECHNICAL PROVISIONS:"
Page 35, line 5, before "MISCELLANEOUS" insert "DEPARTMENT OF REVENUE TECHNICAL PROVISIONS:"
Page 35, line 29, delete "if domiciled in the same household" and insert ", other than a separated spouse"
Page 35, line 31, delete "domiciled in the same household shall be considered" and insert ", other than a separated spouse, is"
Page 35, line 34, delete "2014" and insert "2013"
Page 36, lines 2 and 4, delete "2014" and insert "2013"
Page 36, line 11, delete "The" and insert "This" and delete "the day following final enactment" and insert "retroactively for debts incurred after December 31, 2013"
Page 36, after line 30, insert:
"ARTICLE 6
DEPARTMENT
OF REVENUE POLICY PROVISIONS: INDIVIDUAL
INCOME,
CORPORATE FRANCHISE, AND ESTATE TAXES
Section 1. Minnesota Statutes 2014, section 289A.08, subdivision 16, is amended to read:
Subd. 16. Tax
refund or return preparers; electronic filing; paper filing fee imposed. (a) A "tax refund or return
preparer," as defined in section 289A.60, subdivision 13, paragraph (f),
who is a tax return preparer for purposes of section 6011(e) of the Internal
Revenue Code, and who reasonably expects to prepare more than ten Minnesota
individual income, corporate franchise, S corporation, partnership, or
fiduciary income tax returns for the prior calendar year must file
all Minnesota individual income, corporate franchise, S corporation,
partnership, or fiduciary income tax returns prepared for that calendar
year by electronic means.
(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return that the taxpayer did not want the return filed by electronic means.
(c) For each return that is not filed electronically by a tax refund or return preparer under this subdivision, including returns filed under paragraph (b), a paper filing fee of $5 is imposed upon the preparer. The fee is collected from the preparer in the same manner as income tax. The fee does not apply to returns that the commissioner requires to be filed in paper form.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 2. Minnesota Statutes 2014, section 289A.09, subdivision 2, is amended to read:
Subd. 2. Withholding statement. (a) A person required to deduct and withhold from an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, or who would have been required to deduct and withhold a tax under section 290.92, subdivision 2a or 3, or persons required to withhold tax under section 290.923,
subdivision 2, determined without regard to section 290.92, subdivision 19, if the employee or payee had claimed no more than one withholding exemption, or who paid wages or made payments not subject to withholding under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, to an employee or person receiving royalty payments in excess of $600, or who has entered into a voluntary withholding agreement with a payee under section 290.92, subdivision 20, must give every employee or person receiving royalty payments in respect to the remuneration paid by the person to the employee or person receiving royalty payments during the calendar year, on or before January 31 of the succeeding year, or, if employment is terminated before the close of the calendar year, within 30 days after the date of receipt of a written request from the employee if the 30-day period ends before January 31, a written statement showing the following:
(1) name of the person;
(2) the name of the employee or payee and the employee's or payee's Social Security account number;
(3) the total amount of wages as that term is defined in section 290.92, subdivision 1, paragraph (1); the total amount of remuneration subject to withholding under section 290.92, subdivision 20; the amount of sick pay as required under section 6051(f) of the Internal Revenue Code; and the amount of royalties subject to withholding under section 290.923, subdivision 2; and
(4) the total amount deducted and withheld as tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2.
(b) The statement required to be furnished by paragraph (a) with respect to any remuneration must be furnished at those times, must contain the information required, and must be in the form the commissioner prescribes.
(c) The commissioner may prescribe rules providing for reasonable extensions of time, not in excess of 30 days, to employers or payers required to give the statements to their employees or payees under this subdivision.
(d) A duplicate of any statement made under this subdivision and in accordance with rules prescribed by the commissioner, along with a reconciliation in the form the commissioner prescribes of the statements for the calendar year, including a reconciliation of the quarterly returns required to be filed under subdivision 1, must be filed with the commissioner on or before February 28 of the year after the payments were made.
(e) If an employer cancels the employer's Minnesota withholding account number required by section 290.92, subdivision 24, the information required by paragraph (d), must be filed with the commissioner within 30 days of the end of the quarter in which the employer cancels its account number.
(f) The employer must submit the statements
required to be sent to the commissioner in the same manner required to
satisfy the federal reporting requirements of section 6011(e) of the Internal
Revenue Code and the regulations issued under it. An employer must submit statements to the
commissioner required by this section by electronic means if the employer is
required to send more than 25 statements to the commissioner, even though the
employer is not required to submit the returns federally by electronic means. For statements issued for wages paid in 2011
and after, the threshold is ten. All
statements issued for withholding required under section 290.92 are aggregated
for purposes of determining whether the electronic submission threshold is met. The commissioner shall prescribe the
content, format, and manner of the statement pursuant to section 270C.30.
(g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph (a), clause (2), must submit the returns required by this subdivision and subdivision 1, paragraph (a), with the commissioner by electronic means.
EFFECTIVE
DATE. This section is
effective for statements required to be sent to the commissioner after December
31, 2015.
Sec. 3. Minnesota Statutes 2014, section 289A.12, subdivision 14, is amended to read:
Subd. 14. Regulated
investment companies; Reporting exempt interest and exempt-interest
dividends. (a) A regulated
investment company paying $10 or more in exempt-interest dividends to an
individual who is a resident of Minnesota, or any person receiving $10 or
more of exempt interest or exempt-interest dividends and paying as nominee to
an individual who is a resident of Minnesota, must make a return indicating
the amount of the exempt interest or exempt-interest dividends, the
name, address, and Social Security number of the recipient, and any other
information that the commissioner specifies.
The return must be provided to the shareholder recipient
by February 15 of the year following the year of the payment. The return provided to the shareholder
recipient must include a clear statement, in the form prescribed by the
commissioner, that the exempt interest or exempt-interest dividends must
be included in the computation of Minnesota taxable income. By June 1 of each year, the regulated
investment company payor must file a copy of the return with the
commissioner.
(b) For purposes of this subdivision, the following definitions apply.
(1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest dividends that are not required to be added to federal taxable income under section 290.01, subdivision 19a, clause (1)(ii).
(2) "Regulated investment company" means regulated investment company as defined in section 851(a) of the Internal Revenue Code or a fund of the regulated investment company as defined in section 851(g) of the Internal Revenue Code.
(3) "Exempt interest" means
income on obligations of any state other than Minnesota, or a political or
governmental subdivision, municipality, or governmental agency or
instrumentality of any state other than Minnesota, and exempt from federal
income taxes under the Internal Revenue Code or any other federal statute.
EFFECTIVE
DATE. This section is
effective for reports required to be filed after December 31, 2015.
Sec. 4. Minnesota Statutes 2014, section 289A.60, subdivision 28, is amended to read:
Subd. 28. Preparer
identification number. Any Minnesota
individual income tax return or claim for refund prepared by a "tax
refund or return preparer" as defined in subdivision 13, paragraph (f),
shall bear the identification number the preparer is required to use federally
under section 6109(a)(4) of the Internal Revenue Code. A tax refund or return preparer who prepares
a Minnesota tax return for an individual income tax return,
corporation, S corporation, partnership, fiduciary, or claim for
refund and fails to include the required number on the return or claim is subject
to a penalty of $50 for each failure.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 5. Minnesota Statutes 2014, section 290A.19, is amended to read:
290A.19
OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.
(a) The owner or managing agent of any property for which rent is paid for occupancy as a homestead must furnish a certificate of rent paid to a person who is a renter on December 31, in the form prescribed by the commissioner. If the renter moves before December 31, the owner or managing agent may give the certificate to the renter at the time of moving, or mail the certificate to the forwarding address if an address has been provided by the renter. The certificate must be made available to the renter before February 1 of the year following the year in
which the rent was paid. The owner or managing agent must retain a duplicate of each certificate or an equivalent record showing the same information for a period of three years. The duplicate or other record must be made available to the commissioner upon request.
(b) The commissioner may require the
owner or managing agent, through a simple process, to furnish to the
commissioner on or before March 1 a copy of each certificate of rent paid
furnished to a renter for rent paid in the prior year, in the content, format,
and manner prescribed by the commissioner pursuant to section 270C.30. Before implementing requirements under this
paragraph, the commissioner, after consulting with representatives of owners or
managing agents, shall develop an implementation and administration plan for
the requirements of this paragraph that attempts to minimize financial burdens,
costs of administration and compliance, and takes into consideration existing
systems of owners and managing agents.
(c) For the purposes of this section, "owner" includes a park owner as defined under section 327C.01, subdivision 6, and "property" includes a lot as defined under section 327C.01, subdivision 3.
EFFECTIVE DATE. This section is effective for certificates of
rent paid for rent paid after December 31, 2014.
Sec. 6. Minnesota Statutes 2014, section 291.03, subdivision 10, is amended to read:
Subd. 10. Qualified farm property. Property satisfying all of the following requirements is qualified farm property:
(1) The value of the property was included in the federal adjusted taxable estate.
(2) The property consists of agricultural land and is owned by a person or entity that is either not subject to or is in compliance with section 500.24.
(3) For property taxes payable in the taxable year of the decedent's death, the property is classified as class 2a property under section 273.13, subdivision 23, and is classified as agricultural homestead, agricultural relative homestead, or special agricultural homestead under section 273.124.
(4) The decedent continuously owned the property, including property the decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for the three-year period ending on the date of death of the decedent either by ownership of the agricultural land or pursuant to holding an interest in an entity that is not subject to or is in compliance with section 500.24.
(5) The property is classified for property
tax purposes as class 2a property under section 273.13, subdivision 23, for
three years following the date of death of the decedent., provided
that:
(i) no property ceases to be qualified
farm property solely because a residence existing at the time of the decedent's
death is reclassified as class 4bb property under section 273.13, subdivision
25, during the three-year period; and
(ii) no property ceases to be qualified
farm property solely because a portion consisting of no more than one-fifth is
reclassified as 2b property under section 273.13, subdivision 23, during the
three-year period, if the qualified heir has not substantially altered the
reclassified property during the holding period.
(6) The estate and the qualified heir elect to treat the property as qualified farm property and agree, in a form prescribed by the commissioner, to pay the recapture tax under subdivision 11, if applicable.
EFFECTIVE
DATE. This section is
effective retroactively for estates of decedents dying after June 30, 2011.
ARTICLE 7
DEPARTMENT OF REVENUE POLICY PROVISIONS: SPECIAL TAXES
Section 1. Minnesota Statutes 2014, section 289A.38, subdivision 6, is amended to read:
Subd. 6. Omission in excess of 25 percent. Additional taxes may be assessed within 6-1/2 years after the due date of the return or the date the return was filed, whichever is later, if:
(1) the taxpayer omits from gross income an amount properly includable in it that is in excess of 25 percent of the amount of gross income stated in the return;
(2) the taxpayer omits from a sales, use, or withholding tax return, or a return for a tax imposed under section 295.52, an amount of taxes in excess of 25 percent of the taxes reported in the return; or
(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the gross estate reported in the return.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2014, section 295.54, subdivision 2, is amended to read:
Subd. 2.
Pharmacy refund. A pharmacy may claim an annual refund
against the total amount of tax, if any, the pharmacy owes during that calendar
year under section 295.52, subdivision 4.
The refund shall equal the amount paid by the pharmacy to a wholesale
drug distributor subject to tax under section 295.52, subdivision 3, for legend
drugs delivered by the pharmacy outside of Minnesota, multiplied by the tax
percentage specified in section 295.52, subdivision 3. If the amount of the refund exceeds the tax
liability of the pharmacy under section 295.52, subdivision 4, the commissioner
shall provide the pharmacy with a refund equal to the excess amount. Each qualifying pharmacy must apply for the
refund on the annual return as provided under section 295.55, subdivision 5
prescribed by the commissioner, on or before March 15 of the year following
the calendar year the legend drugs were delivered outside Minnesota. The refund must be claimed within 18
months from the date the drugs were delivered outside of Minnesota shall
not be allowed if the initial claim for refund is filed more than one year
after the original due date of the return.
Interest on refunds paid under this subdivision will begin to accrue 60
days after the date a claim for refund is filed. For purposes of this subdivision, the date a
claim is filed is the due date of the return if a return is due or the date of
the actual claim for refund, whichever is later.
EFFECTIVE
DATE. This section is
effective for qualifying legend drugs delivered outside Minnesota after
December 31, 2014.
Sec. 3. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision to read:
Subd. 9a. Bulk
storage or bulk storage facility. "Bulk
storage" or "bulk storage facility" means a single property, or
contiguous or adjacent properties used for a common purpose and owned or
operated by the same person, on or in which are located one or more stationary
tanks that are used singularly or in combination for the storage or containment
of more than 1,100 gallons of petroleum.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2014, section 296A.01, subdivision 33, is amended to read:
Subd. 33. Motor fuel. "Motor fuel" means a liquid or gaseous form of fuel, regardless of its composition or properties, used to propel a motor vehicle.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. Minnesota Statutes 2014, section 297E.02, subdivision 7, is amended to read:
Subd. 7. Untaxed gambling product. (a) In addition to penalties or criminal sanctions imposed by this chapter, a person, organization, or business entity possessing or selling a pull-tab, electronic pull-tab game, or tipboard upon which the tax imposed by this chapter has not been paid is liable for a tax of six percent of the ideal gross of each pull-tab, electronic pull-tab game, or tipboard. The tax on a partial deal must be assessed as if it were a full deal.
(b) In addition to penalties and criminal sanctions imposed by this chapter, a person (1) not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, raffles, or paddlewheel games, or (2) who conducts gambling prohibited under sections 609.75 to 609.763, other than activities subject to tax under section 297E.03, is liable for a tax of six percent of the gross receipts from that activity.
(c) The tax must may be
assessed by the commissioner. An
assessment must be considered a jeopardy assessment or jeopardy collection as
provided in section 270C.36. The
commissioner shall assess the tax based on personal knowledge or information
available to the commissioner. The
commissioner shall mail to the taxpayer at the taxpayer's last known address,
or serve in person, a written notice of the amount of tax, demand its immediate
payment, and, if payment is not immediately made, collect the tax by any method
described in chapter 270C, except that the commissioner need not await the
expiration of the times specified in chapter 270C. The tax assessed by the commissioner is
presumed to be valid and correctly determined and assessed. The burden is upon the taxpayer to show its
incorrectness or invalidity. The tax
imposed under this subdivision does not apply to gambling that is exempt from
taxation under subdivision 2.
(d) A person, organization, or business
entity conducting gambling activity under this subdivision must file monthly
tax returns with the commissioner, in the form required by the commissioner. The returns must be filed on or before the
20th day of the month following the month in which the gambling activity
occurred. The tax imposed by this
section is due and payable at the time when the returns are required to be
filed.
(e) Notwithstanding any law to the
contrary, neither the commissioner nor a public employee may reveal facts
contained in a tax return filed with the commissioner of revenue as required by
this subdivision, nor can any information contained in the report or return be
used against the tax obligor in any criminal proceeding, unless independently
obtained, except in connection with a proceeding involving taxes due under this
section, or as provided in section 270C.055, subdivision 1. However, this paragraph does not prohibit the
commissioner from publishing statistics that do not disclose the identity of
tax obligors or the contents of particular returns or reports. Any person violating this paragraph is guilty
of a gross misdemeanor.
EFFECTIVE
DATE. This section is
effective for games played or purchased after June 30, 2015.
ARTICLE 8
DEPARTMENT OF REVENUE POLICY PROVISIONS: PROPERTY TAXES
Section 1. Minnesota Statutes 2014, section 13.51, subdivision 2, is amended to read:
Subd. 2. Income property assessment data. The following data collected by political subdivisions and the state from individuals or business entities concerning income properties are classified as private or nonpublic data pursuant to section 13.02, subdivisions 9 and 12:
(a) detailed income and expense figures;
(b) average vacancy factors;
(c) verified net rentable areas or net usable areas, whichever is appropriate;
(d) anticipated income and expenses;
(e) projected vacancy factors; and
(f) lease information.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2014, section 270.071, subdivision 2, is amended to read:
Subd. 2. Air
commerce. (a) "Air
commerce" means the transportation by aircraft of persons or property for
hire in interstate, intrastate, or international transportation on regularly
scheduled flights or on intermittent or irregularly timed flights by airline
companies and includes transportation by any airline company making three or
more flights in or out of Minnesota, or within Minnesota, during a calendar
year.
(b) "Air commerce" includes but
is not limited to an intermittent or irregularly timed flight, a flight
arranged at the convenience of an airline and the person contracting for the
transportation, or a charter flight. It
includes any airline company making three or more flights in or out of
Minnesota during a calendar year.
(c) "Air commerce" does not
include casual transportation for hire by aircraft commonly owned and used for
private air flight purposes if the person furnishing the transportation does
not hold out to be engaged regularly in transportation for hire.
EFFECTIVE
DATE. This section is
effective for assessment year 2016 and thereafter.
Sec. 3. Minnesota Statutes 2014, section 270.071, subdivision 7, is amended to read:
Subd. 7. Flight
property. "Flight
property" means all aircraft and flight equipment used in connection
therewith, including spare flight equipment.
Flight property also includes computers and computer software used in
operating, controlling, or regulating aircraft and flight equipment. Flight property does not include aircraft
with a maximum takeoff weight of less than 30,000 pounds.
EFFECTIVE
DATE. This section is
effective for assessment year 2016 and thereafter.
Sec. 4. Minnesota Statutes 2014, section 270.071, subdivision 8, is amended to read:
Subd. 8. Person. "Person" means any an
individual, corporation, firm, copartnership, company, or association, and
includes any guardian, trustee, executor, administrator, receiver, conservator,
or any person acting in any fiduciary capacity therefor trust, estate,
fiduciary, partnership, company, corporation, limited liability company,
association, governmental unit or agency, public or private organization of any
kind, or other legal entity.
EFFECTIVE
DATE. This section is
effective for assessment year 2016 and thereafter.
Sec. 5. Minnesota Statutes 2014, section 270.071, is amended by adding a subdivision to read:
Subd. 10. Intermittent
or irregularly timed flights. "Intermittently
or irregularly timed flights" means any flight in which the departure
time, departure location, and arrival location are specifically negotiated with
the customer or the customer's representative, including but not limited to
charter flights.
EFFECTIVE
DATE. This section is
effective for assessment year 2016 and thereafter.
Sec. 6. Minnesota Statutes 2014, section 270.072, subdivision 2, is amended to read:
Subd. 2. Assessment
of flight property. Flight property
that is owned by, or is leased, loaned, or otherwise made available to an
airline company operating in Minnesota shall be assessed and appraised annually
by the commissioner with reference to its value on January 2 of the assessment
year in the manner prescribed by sections 270.071 to 270.079. Aircraft with a gross weight of less than
30,000 pounds and used on intermittent or irregularly timed flights shall be
excluded from the provisions of sections 270.071 to 270.079.
EFFECTIVE
DATE. This section is
effective for assessment year 2016 and thereafter.
Sec. 7. Minnesota Statutes 2014, section 270.072, subdivision 3, is amended to read:
Subd. 3. Report
by airline company. (a) Each
year, on or before July 1, every airline company engaged in air commerce in
this state shall file with the commissioner a report under oath setting forth
specifically the information prescribed by the commissioner to enable the
commissioner to make the assessment required in sections 270.071 to 270.079,
unless the commissioner determines that the airline company or person should
be excluded from is exempt from filing because its activities do
not constitute air commerce as defined herein.
(b) The commissioner shall prescribe the
content, format, and manner of the report pursuant to section 270C.30, except
that a "law administered by the commissioner" includes the property
tax laws. If a report is made by
electronic means, the taxpayer's signature is defined pursuant to section
270C.304, except that a "law administered by the commissioner"
includes the property tax laws.
EFFECTIVE
DATE. The amendment to
paragraph (a) is effective for reports filed in 2016 and thereafter. The amendment adding paragraph (b) is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2014, section 270.072, is amended by adding a subdivision to read:
Subd. 3a. Commissioner
filed reports. If an airline
company fails to file a report required by subdivision 3, the commissioner may,
from information in the commissioner's possession or obtainable by the
commissioner, make and file a report for the airline company, or may issue a
notice of net tax capacity and tax under section 270.075, subdivision 2.
EFFECTIVE
DATE. This section is
effective for assessment year 2016 and thereafter.
Sec. 9. Minnesota Statutes 2014, section 270.12, is amended by adding a subdivision to read:
Subd. 6. Reassessment
orders. If the State Board of
Equalization determines that a considerable amount of property has been
undervalued or overvalued compared to like property such that the assessment is
grossly unfair or inequitable, the State Board of Equalization may, pursuant to
its responsibilities under subdivisions 2 and 3, issue orders to the county
assessor to reassess all or any part of a parcel in a county.
EFFECTIVE
DATE. This section is
effective for assessment year 2016 and thereafter.
Sec. 10. Minnesota Statutes 2014, section 270.82, subdivision 1, is amended to read:
Subdivision 1. Annual
report required. Every railroad
company doing business in Minnesota shall annually file with the commissioner
on or before March 31 a report under oath setting forth the information
prescribed by the commissioner to enable the commissioner to make the valuation
and equalization required by sections 270.80 to 270.87. The commissioner shall prescribe the
content, format, and manner of the report pursuant to section
270C.30,
except that a "law administered by the commissioner" includes the
property tax laws. If a report is made
by electronic means, the taxpayer's signature is defined pursuant to section
270C.304, except that a "law administered by the commissioner"
includes the property tax laws.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 11. Minnesota Statutes 2014, section 270C.89, subdivision 1, is amended to read:
Subdivision 1. Initial
report. Each county assessor shall
file by April 1 with the commissioner a copy of the abstract that will be acted
upon by the local and county boards of review.
The abstract must list the real and personal property in the county
itemized by assessment districts. The
assessor of each county in the state shall file with the commissioner, within
ten working days following final action of the local board of review or
equalization and within five days following final action of the county board of
equalization, any changes made by the local or county board. The information must be filed in the manner prescribed
by the commissioner. It must be
accompanied by a printed or typewritten copy of the proceedings of the
appropriate board.
EFFECTIVE
DATE. This section is
effective for county boards of appeal and equalization meetings held in 2016
and thereafter.
Sec. 12. Minnesota Statutes 2014, section 272.029, subdivision 2, is amended to read:
Subd. 2. Definitions. (a) For the purposes of this section, the term:
(1) "wind energy conversion system" has the meaning given in section 216C.06, subdivision 19, and also includes a substation that is used and owned by one or more wind energy conversion facilities;
(2) "large scale wind energy conversion system" means a wind energy conversion system of more than 12 megawatts, as measured by the nameplate capacity of the system or as combined with other systems as provided in paragraph (b);
(3) "medium scale wind energy conversion system" means a wind energy conversion system of over two and not more than 12 megawatts, as measured by the nameplate capacity of the system or as combined with other systems as provided in paragraph (b); and
(4) "small scale wind energy conversion system" means a wind energy conversion system of two megawatts and under, as measured by the nameplate capacity of the system or as combined with other systems as provided in paragraph (b).
(b) For systems installed and contracted for after January 1, 2002, the total size of a wind energy conversion system under this subdivision shall be determined according to this paragraph. Unless the systems are interconnected with different distribution systems, the nameplate capacity of one wind energy conversion system shall be combined with the nameplate capacity of any other wind energy conversion system that is:
(1) located within five miles of the wind energy conversion system;
(2) constructed within the same calendar
year 12-month period as the wind energy conversion system; and
(3) under common ownership.
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 wind energy conversion 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. Wind energy conversion systems are not under common ownership solely because the same person or entity provided equity financing for the systems.
EFFECTIVE
DATE. This section is
effective for reports filed in 2016 and thereafter.
Sec. 13. Minnesota Statutes 2014, section 272.029, subdivision 4, is amended to read:
Subd. 4.
Reports. (a) An owner of a wind energy conversion
system subject to tax under subdivision 3 shall file a report with the
commissioner of revenue annually on or before February 1 January 15
detailing the amount of electricity in kilowatt-hours that was produced by the
wind energy conversion system for 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 wind energy conversion 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 60 percent.
(b) On or before February 28, the commissioner of revenue shall notify the owner of the wind energy conversion systems of the tax due to each county for the current year and shall certify to the county auditor of each county in which the systems are located the tax due from each owner for the current year.
EFFECTIVE
DATE. This section is
effective for reports filed in 2016 and thereafter.
Sec. 14. Minnesota Statutes 2014, section 272.029, is amended by adding a subdivision to read:
Subd. 8. Extension. The commissioner may, for good cause,
extend the time for filing the report required by subdivision 4. The extension must not exceed 15 days.
EFFECTIVE
DATE. This section is
effective for reports filed in 2016 and thereafter.
Sec. 15. Minnesota Statutes 2014, section 273.061, subdivision 7, is amended to read:
Subd. 7.
Division of duties between local
and county assessor. The duty of the
duly appointed local assessor shall be to view and appraise the value of all
property as provided by law, but all the book work shall be done by the county
assessor, or the assessor's assistants, and the value of all property subject
to assessment and taxation shall be determined by the county assessor, except
as otherwise hereinafter provided. If
directed by the county assessor, the local assessor shall must
perform the duties enumerated in subdivision 8, clause (16), and must enter
construction and valuation data into the records in the manner prescribed by
the county auditor.
EFFECTIVE
DATE. This section is
effective for assessment year 2016 and thereafter.
Sec. 16. Minnesota Statutes 2014, section 273.08, is amended to read:
273.08
ASSESSOR'S DUTIES.
The assessor shall actually view, and
determine the market value of each tract or lot of real property listed for
taxation, including the value of all improvements and structures thereon, at
maximum intervals of five years and shall enter the value opposite each
description. When directed by the
county assessor, local assessors must enter construction and valuation data
into the records in the manner prescribed by the county assessor.
EFFECTIVE
DATE. This section is
effective for assessment year 2016 and thereafter.
Sec. 17. Minnesota Statutes 2014, section 273.121, is amended by adding a subdivision to read:
Subd. 3. Compliance. A county assessor, or a city assessor
having the powers of a county assessor, who does not comply with the timely
notice requirement under subdivision 1 must:
(1) mail an additional valuation notice
to each person who was not provided timely notice; and
(2) convene a supplemental local board of
appeal and equalization or local review session no sooner than ten days after
sending the additional notices required by clause (1).
EFFECTIVE
DATE. This section is
effective for valuation notices sent in 2016 and thereafter.
Sec. 18. Minnesota Statutes 2014, section 273.371, is amended to read:
273.371
REPORTS OF UTILITY COMPANIES.
Subdivision 1. Report
required. Every electric light, power,
gas, water, express, stage, and transportation company, and
pipeline company doing business in Minnesota shall annually file with
the commissioner on or before March 31 a report under oath setting forth the
information prescribed by the commissioner to enable the commissioner to make
valuations, recommended valuations, and equalization required under sections
273.33, 273.35, 273.36, 273.37, and 273.3711.
If all the required information is not available on March 31, the
company or pipeline shall file the information that is available on or before
March 31, and the balance of the information as soon as it becomes available.
Subd. 2. Extension. The commissioner for good cause may
extend the time for filing the report required by subdivision 1. The extension may must not
exceed 15 days.
Subd. 3. Reports
filed by the commissioner. If
a company fails to file a report required by subdivision 1, the commissioner
may, from information in the commissioner's possession or obtainable by the
commissioner, make and file a report for the company, or make the valuations,
recommended valuations, and equalizations required under sections 273.33,
273.35 to 273.37, and 273.3711.
EFFECTIVE
DATE. This section is
effective for assessment year 2016 and thereafter.
Sec. 19. Minnesota Statutes 2014, section 273.372, subdivision 2, is amended to read:
Subd. 2. Contents and filing of petition. (a) In all appeals to court that are required to be brought against the commissioner under this section, the petition initiating the appeal must be served on the commissioner and must be filed with the Tax Court in Ramsey County, as provided in paragraph (b) or (c).
(b) If the appeal to court is from an order of the commissioner, it must be brought under chapter 271 and filed within the time period prescribed in section 271.06, subdivision 2, except that when the provisions of this section conflict with chapter 271 or 278, this section prevails. In addition, the petition must include all the parcels encompassed by that order which the petitioner claims have been partially, unfairly, or unequally assessed, assessed at a valuation greater than their real or actual value, misclassified, or are exempt. For this purpose, an order of the commissioner is either (1) a certification or notice of value by the commissioner for property described in subdivision 1, or (2) the final determination by the commissioner of either an administrative appeal conference or informal administrative appeal described in subdivision 4.
(c) If the appeal is from the tax that results from implementation of the commissioner's order, certification, or recommendation, it must be brought under chapter 278, and the provisions in that chapter apply, except that service shall be on the commissioner only and not on the local officials specified in section 278.01, subdivision 1, and if any other provision of this section conflicts with chapter 278, this section prevails. In addition, the petition must include either all the utility parcels or all the railroad parcels in the state in which the petitioner claims an interest and which the petitioner claims have been partially, unfairly, or unequally assessed, assessed at a valuation greater than their real or actual value, misclassified, or are exempt.
EFFECTIVE
DATE. This section is
effective for assessment year 2016 and thereafter.
Sec. 20. Minnesota Statutes 2014, section 273.372, subdivision 4, is amended to read:
Subd. 4. Administrative appeals. (a) Companies that submit the reports under section 270.82 or 273.371 by the date specified in that section, or by the date specified by the commissioner in an extension, may appeal administratively to the commissioner prior to bringing an action in court.
(b) Companies that must submit
reports under section 270.82 must submit file a written request to
for an appeal with the commissioner for a conference within ten
30 days after the notice date of the commissioner's valuation
certification or other notice to the company, or by June 15,
whichever is earlier. For
purposes of this section, the term
"notice date" means the date of the valuation certification,
commissioner's order, recommendation, or other notice.
(c) Companies that submit reports under
section 273.371 must submit a written request to the commissioner for a
conference within ten days after the date of the commissioner's valuation
certification or notice to the company, or by July 1, whichever is earlier. The appeal need not be in any particular
form but must contain the following information:
(1) name and address of the company;
(2) the date;
(3) its Minnesota identification number;
(4) the assessment year or period
involved;
(5) the findings in the valuation that
the company disputes;
(6) a summary statement specifying its
reasons for disputing each item; and
(7) the signature of the company's duly
authorized agent or representative.
(d) When requested in writing and within
the time allowed for filing an administrative appeal, the commissioner may
extend the time for filing an appeal for a period of not more than 15 days from
the expiration of the time for filing the appeal.
(d) (e) The commissioner shall
conduct the conference either in person or by telephone upon the
commissioner's entire files and records and such further information as may be
offered. The conference must be held no
later than 20 days after the date of the commissioner's valuation
certification or notice to the company, or by the date specified by the
commissioner in an extension request for an appeal. Within 60 30 days after the
conference the commissioner shall make a final determination of the matter and
shall notify the company promptly of the determination. The conference is not a contested case
hearing subject to chapter 14.
(e)
In addition to the opportunity for a conference under paragraph (a), the
commissioner shall also provide the railroad and utility companies the
opportunity to discuss any questions or concerns relating to the values
established by the commissioner through certification or notice in a less formal
manner. This does not change or modify
the deadline for requesting a conference under paragraph (a), the deadline in
section 271.06 for appealing an order of the commissioner, or the deadline in
section 278.01 for appealing property taxes in court.
EFFECTIVE
DATE. This section is
effective for assessment year 2016 and thereafter.
Sec. 21. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision to read:
Subd. 5. Agreement
determining valuation. When
it appears to be in the best interest of the state, the commissioner may settle
any matter under consideration regarding an appeal filed under this section. The agreement must be in writing and signed
by the commissioner and the company or the company's authorized representative. The agreement is final and conclusive, and
except upon a showing of fraud, malfeasance, or misrepresentation of a material
fact, the case may not be reopened as to the matters agreed upon.
EFFECTIVE
DATE. This section is
effective for assessment year 2016 and thereafter.
Sec. 22. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision to read:
Subd. 6. Dismissal
of administrative appeal. If
a taxpayer files an administrative appeal from an order of the commissioner and
also files an appeal to the tax court for that same order of the commissioner,
the administrative appeal is dismissed and the commissioner is no longer
required to make the determination of appeal under subdivision 4.
EFFECTIVE
DATE. This section is
effective beginning with assessment year 2015.
Sec. 23. Minnesota Statutes 2014, section 274.13, subdivision 1, is amended to read:
Subdivision 1. Members; meetings; rules for equalizing assessments. The county commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be present, the deputy county auditor, or, if there is no deputy, the court administrator of the district court, shall form a board for the equalization of the assessment of the property of the county, including the property of all cities whose charters provide for a board of equalization. This board shall be referred to as the county board of appeal and equalization. The board shall meet annually, on the date specified in section 274.14, at the office of the auditor. Each member shall take an oath to fairly and impartially perform duties as a member. Members 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. The board shall examine and compare the returns of the assessment of property of the towns or districts, and equalize them so that each tract or lot of real property and each article or class of personal property is entered on the assessment list at its market value, subject to the following rules:
(1) The board shall raise the valuation of each tract or lot of real property which in its opinion is returned below its market value to the sum believed to be its market value. The board must first give notice of intention to raise the valuation to the person in whose name it is assessed, if the person is a resident of the county. The notice must fix a time and place for a hearing.
(2) The board shall reduce the valuation of each tract or lot which in its opinion is returned above its market value to the sum believed to be its market value.
(3) The board shall raise the valuation of each class of personal property which in its opinion is returned below its market value to the sum believed to be its market value. It shall raise the aggregate value of the personal property of individuals, firms, or corporations, when it believes that the aggregate valuation, as returned, is less than the market value of the taxable personal property possessed by the individuals, firms, or corporations, to the sum it believes to be the market value. The board must first give notice to the persons of intention to do so. The notice must set a time and place for a hearing.
(4) The board shall reduce the valuation of each class of personal property that is returned above its market value to the sum it believes to be its market value. Upon complaint of a party aggrieved, the board shall reduce the aggregate valuation of the individual's personal property, or of any class of personal property for which the individual is assessed, which in its opinion has been assessed at too large a sum, to the sum it believes was the market value of the individual's personal property of that class.
(5) The board must not reduce the aggregate value of all the property of its county, as submitted to the county board of equalization, with the additions made by the auditor under this chapter, by more than one percent of its whole valuation. The board may raise the aggregate valuation of real property, and of each class of personal property, of the county, or of any town or district of the county, when it believes it is below the market value of the property, or class of property, to the aggregate amount it believes to be its market value.
(6) The board shall change the classification of any property which in its opinion is not properly classified.
(7) The board does not have the authority to grant an exemption or to order property removed from the tax rolls.
(8) The board may not make an individual
market value adjustment or classification change that would benefit 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.
EFFECTIVE
DATE. This section is
effective for county board of appeal and equalization meetings in 2016 and
thereafter.
Sec. 24. Minnesota Statutes 2014, section 275.62, subdivision 2, is amended to read:
Subd. 2.
Local governments required to
report. For purposes of this
section, "local governmental unit" means a county, home rule charter
or statutory city with a population greater than 2,500, a town with a
population greater than 5,000, or a home rule charter or statutory city or town
that receives a distribution from the taconite municipal aid account in the
levy year.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 25. Minnesota Statutes 2014, section 278.01, subdivision 1, is amended to read:
Subdivision 1. Determination of validity. (a) Any person having personal property, or any estate, right, title, or interest in or lien upon any parcel of land, who claims that such property has been partially, unfairly, or unequally assessed in comparison with other property in the (1) city, or (2) county, or (3) in the case of a county containing a city of the first class, the portion of the county excluding the first class city, or that the parcel has been assessed at a valuation greater than its real or actual value, or that the tax levied against the same is illegal, in whole or in part, or has been paid, or that the property is exempt from the tax so levied, may have the validity of the claim, defense, or objection determined by the district court of the county in which the tax is levied or by the Tax Court by serving one copy of a petition for such determination upon the county auditor, one copy on the county attorney, one copy on the county treasurer, and three copies on the county assessor. The county assessor shall immediately forward one copy of the petition to the appropriate governmental authority in a home rule charter or statutory city or town in which the property is located if that city or town employs its own certified assessor. A copy of the petition shall also be forwarded by the assessor to the school board of the school district in which the property is located.
(b) In counties where the office of county treasurer has been combined with the office of county auditor, the county may elect to require the petitioner to serve the number of copies as determined by the county. The county assessor shall immediately forward one copy of the petition to the appropriate governmental authority in a home rule charter or statutory city or town in which the property is located if that city or town employs its own certified assessor. A list of petitioned properties, including the name of the petitioner, the identification number of the property, and the estimated market value, shall be sent on or before the first day of July by the county auditor/treasurer to the school board of the school district in which the property is located.
(c) For all counties, the petitioner must file the copies with proof of service, in the office of the court administrator of the district court on or before April 30 of the year in which the tax becomes payable. A petition for determination under this section may be transferred by the district court to the Tax Court. An appeal may also be taken to the Tax Court under chapter 271 at any time following receipt of the valuation notice that county assessors are required by section 273.121 to send to persons whose property is to be included on the assessment roll that year, but prior to May 1 of the year in which the taxes are payable.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 26. Minnesota Statutes 2014, section 290C.03, is amended to read:
290C.03
ELIGIBILITY REQUIREMENTS.
(a) Land may be enrolled in the sustainable forest incentive program under this chapter if all of the following conditions are met:
(1) the land consists of at least 20 contiguous acres and at least 50 percent of the land must meet the definition of forest land in section 88.01, subdivision 7, during the enrollment;
(2) a forest management plan for the land must be (i) prepared by an approved plan writer and implemented during the period in which the land is enrolled, and (ii) registered with the Department of Natural Resources;
(3) timber harvesting and forest management guidelines must be used in conjunction with any timber harvesting or forest management activities conducted on the land during the period in which the land is enrolled;
(4) the land must be enrolled for a minimum of eight years;
(5) there are no delinquent property taxes
on the land; and
(6) claimants enrolling more than 1,920
acres in the sustainable forest incentive program must allow year-round,
nonmotorized access to fish and wildlife resources and motorized access on
established and maintained roads and trails, unless the road or trail is
temporarily closed for safety, natural resource, or road damage reasons on
enrolled land except within one-fourth mile of a permanent dwelling or during
periods of high fire hazard as determined by the commissioner of natural
resources.; and
(7) the land is not classified as 2c
managed forest land.
(b) Claimants required to allow access under paragraph (a), clause (6), do not by that action:
(1) extend any assurance that the land is safe for any purpose;
(2) confer upon the person the legal status of an invitee or licensee to whom a duty of care is owed; or
(3) assume responsibility for or incur liability for any injury to the person or property caused by an act or omission of the person.
(c) A minimum of three acres must be
excluded from enrolled land when the land is improved with a structure that is
not a minor, ancillary, or nonresidential structure. If land does not meet the definition of
forest land in section 290C.02, subdivision 6, because the land is (1) enrolled
in the reinvest in Minnesota program, (2) enrolled in a state or federal
conservation reserve or easement program under sections 103F.501 to 103F.531,
(3) subject to the Minnesota agricultural property tax under section 273.111,
or (4) subject to agricultural land preservation controls or restrictions as
defined in section 40A.02, or the Metropolitan Agricultural Preserves Act under
chapter 473H, the entire parcel that contains the land is not eligible to be
enrolled in the program.
EFFECTIVE DATE. The amendment to paragraph (a), clause (2), is
effective for certifications filed after July 1, 2016. The amendment adding paragraph (a), clause
(7), is effective for certifications and applications due in 2015 and
thereafter. The amendment adding
paragraph (c) is effective the day following final enactment.
Sec. 27. Minnesota Statutes 2014, section 477A.013, is amended by adding a subdivision to read:
Subd. 14. Communication by electronic mail. Prior to receiving aid pursuant to this section, a city must register an official electronic mail address with the commissioner, which the commissioner may use as an exclusive means to communicate with the city.
EFFECTIVE
DATE. This section is
effective for aids payable in 2016 and thereafter.
Sec. 28. Minnesota Statutes 2014, section 477A.19, is amended by adding a subdivision to read:
Subd. 3a. Certification. On or before June 1 of each year, the
commissioner of natural resources shall certify to the commissioner of revenue
the number of watercraft launches and the number of watercraft trailer parking
spaces in each county.
EFFECTIVE
DATE. This section is
effective for aids payable in 2016 and thereafter.
Sec. 29. Minnesota Statutes 2014, section 477A.19, is amended by adding a subdivision to read:
Subd. 3b. Certification. On or before June 1 of each year, the
commissioner of natural resources shall certify to the commissioner of revenue
the counties that complied with the requirements of subdivision 3 the prior
year and are eligible to receive aid under this section.
EFFECTIVE
DATE. This section is
effective for aids payable in 2016 and thereafter.
Sec. 30. Minnesota Statutes 2014, section 559.202, subdivision 2, is amended to read:
Subd. 2. Exception. This section does not apply to sales made under chapter 282 or if the purchaser is represented throughout the transaction by either:
(1) a person licensed to practice law in this state; or
(2) a person licensed as a real estate broker or salesperson under chapter 82, provided that the representation does not create a dual agency, as that term is defined in section 82.55, subdivision 6.
EFFECTIVE
DATE. This section is
effective for sales of tax-forfeited land occurring after the day following
final enactment.
Sec. 31. Laws 2014, chapter 308, article 1, section 14, subdivision 2, is amended to read:
Subd. 2. Payment of supplemental credit. (a) The commissioner must pay supplemental credit amounts to each qualifying taxpayer by October 15, 2014.
(b) If the commissioner cannot locate the
qualifying taxpayer by October 15, 2016, or if a qualifying taxpayer to whom a
warrant was issued does not cash that warrant within two years from the date
the warrant was issued, the right to the credit shall lapse and the warrant
shall be deposited in the general fund.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 32. REPEALER.
Minnesota Statutes 2014, sections
290C.02, subdivisions 5 and 9; and 290C.06, are repealed.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 9
DEPARTMENT OF REVENUE POLICY PROVISIONS: MISCELLANEOUS
Section 1. Minnesota Statutes 2014, section 270.82, subdivision 1, is amended to read:
Subdivision 1. Annual
report required. Every railroad
company doing business in Minnesota shall annually file with the commissioner
on or before March 31 a report under oath setting forth the information
prescribed by the commissioner to enable the commissioner to make the valuation
and equalization required by sections 270.80 to 270.87. The commissioner shall prescribe the
content, format, and manner of the report pursuant to section 270C.30, except
that a "law administered by the commissioner" includes the property
tax laws. If a report is made by
electronic means, the taxpayer's signature is defined pursuant to section
270C.304, except that a "law administered by the commissioner"
includes the property tax laws.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2014, section 270B.14, subdivision 1, is amended to read:
Subdivision 1. Disclosure to commissioner of human services. (a) On the request of the commissioner of human services, the commissioner shall disclose return information regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
(b) Data that may be disclosed are limited to data relating to the identity, whereabouts, employment, income, and property of a person owing or alleged to be owing an obligation of child support.
(c) The commissioner of human services may request data only for the purposes of carrying out the child support enforcement program and to assist in the location of parents who have, or appear to have, deserted their children. Data received may be used only as set forth in section 256.978.
(d) The commissioner shall provide the records and information necessary to administer the supplemental housing allowance to the commissioner of human services.
(e) At the request of the commissioner of human services, the commissioner of revenue shall electronically match the Social Security numbers and names of participants in the telephone assistance plan operated under sections 237.69 to 237.71, with those of property tax refund filers, and determine whether each participant's household income is within the eligibility standards for the telephone assistance plan.
(f) The commissioner may provide records and information collected under sections 295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law 102-234. Upon the written agreement by the United States Department of Health and Human Services to maintain the confidentiality of the data, the commissioner may provide records and information collected under sections 295.50 to 295.59 to the Centers for Medicare and Medicaid Services section of the United States Department of Health and Human Services for purposes of meeting federal reporting requirements.
(g) The commissioner may provide records and information to the commissioner of human services as necessary to administer the early refund of refundable tax credits.
(h) The commissioner may disclose
information to the commissioner of human services as necessary to
verify income for welfare income verification for eligibility and
premium payment under the MinnesotaCare program, under section 256L.05,
subdivision 2, as well as the medical assistance program under section 256B.
(i) The commissioner may disclose information to the commissioner of human services necessary to verify whether applicants or recipients for the Minnesota family investment program, general assistance, food support, Minnesota supplemental aid program, and child care assistance have claimed refundable tax credits under chapter 290 and the property tax refund under chapter 290A, and the amounts of the credits.
(j) The commissioner may disclose information to the commissioner of human services necessary to verify income for purposes of calculating parental contribution amounts under section 252.27, subdivision 2a.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2014, section 270C.30, is amended to read:
270C.30
RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING.
Except as otherwise provided by law,
the commissioner shall prescribe the content and, format, and
manner of all returns and other forms required to be filed under a law
administered by the commissioner, and may furnish them subject to charge on
application.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2014, section 270C.33, subdivision 8, is amended to read:
Subd. 8. Sufficiency
of notice. An assessment of tax made
by the commissioner, sent postage prepaid by United States mail to the taxpayer
at the taxpayer's last known address, or sent by electronic mail to the
taxpayer's last known electronic mailing address as provided for in section
325L.08, is sufficient even if the taxpayer is deceased or is under a legal
disability, or, in the case of a corporation, has terminated its existence, unless
the commissioner has been provided with a new address by a party authorized to
receive notices of assessment. Notice
of an assessment is sufficient if it is sent on or before the notice date
designated by the commissioner on the assessment.
EFFECTIVE
DATE. This section is
effective for orders dated after September 30, 2015.
Sec. 5. Minnesota Statutes 2014, section 270C.34, subdivision 2, is amended to read:
Subd. 2. Procedure. (a) A request for abatement of penalty
under subdivision 1 or section 289A.60, subdivision 4, or a request for
abatement of interest or additional tax charge, must be filed with the
commissioner within 60 days of the notice date of the notice
was mailed to the taxpayer's last known address, stating that a penalty
has
been imposed or additional tax charge.
For purposes of this section, the term "notice date" means the
notice date designated by the commissioner on the order or other notice that a
penalty or additional tax charge has been imposed.
(b) If the commissioner issues an order denying a request for abatement of penalty, interest, or additional tax charge, the taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to Tax Court as provided in section 271.06.
(c) If the commissioner does not issue an order on the abatement request within 60 days from the date the request is received, the taxpayer may appeal to Tax Court as provided in section 271.06.
EFFECTIVE
DATE. This section is
effective for orders and notices dated after September 30, 2015.
Sec. 6. Minnesota Statutes 2014, section 270C.347, subdivision 1, is amended to read:
Subdivision 1. Checks and warrants, authority to reissue. Notwithstanding any other provision of law, the commissioner may, based on a showing of reasonable cause, reissue an uncashed rebate, supplemental agricultural credit, or property tax refund warrant or check that has lapsed under any provision of law relating to rebates or under section 290A.18, subdivision 2. The authority to reissue warrants or checks under this subdivision is limited to five years after the date of issuance of the original warrant or check.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 7. Minnesota Statutes 2014, section 270C.35, subdivision 3, is amended to read:
Subd. 3. Notice
date. For purposes of this section,
the term "notice date" means the date of designated by the
commissioner on the order adjusting the tax or order denying a request for
abatement, or, in the case of a denied refund, the notice date of
designated by the commissioner on the notice of denial.
EFFECTIVE
DATE. This section is
effective for orders and notices dated after September 30, 2015.
Sec. 8. Minnesota Statutes 2014, section 270C.38, subdivision 1, is amended to read:
Subdivision 1. Sufficient notice. (a) If no method of notification of a written determination or action of the commissioner is otherwise specifically provided for by law, notice of the determination or action sent postage prepaid by United States mail to the taxpayer or other person affected by the determination or action at the taxpayer's or person's last known address, is sufficient. If the taxpayer or person being notified is deceased or is under a legal disability, or, in the case of a corporation being notified that has terminated its existence, notice to the last known address of the taxpayer, person, or corporation is sufficient, unless the department has been provided with a new address by a party authorized to receive notices from the commissioner.
(b) If a taxpayer or other person agrees to accept notification by electronic means, notice of a determination or action of the commissioner sent by electronic mail to the taxpayer's or person's last known electronic mailing address as provided for in section 325L.08 is sufficient.
(c) Notice of a determination or action
of the commissioner is sufficient if it is sent on or before the notice date
designated by the commissioner on the assessment.
EFFECTIVE
DATE. This section is
effective for orders dated after September 30, 2015.
Sec. 9. Minnesota Statutes 2014, section 270C.445, is amended by adding a subdivision to read:
Subd. 9. Enforcement;
limitations. (a) Notwithstanding
any other law, the imposition of a penalty or any other action against a tax
return preparer authorized by subdivision 6 with respect to a return may be
taken by the commissioner within the period provided by section 289A.38 to
assess tax on that return.
(b) Imposition of a penalty or other
action against a tax return preparer authorized by subdivision 6 other than
with respect to a return must be taken by the commissioner within five years of
the violation of statute.
EFFECTIVE
DATE. This section is
effective for tax preparation services provided after the day following final
enactment.
Sec. 10. Minnesota Statutes 2014, section 270C.446, subdivision 5, is amended to read:
Subd. 5. Removal from list. The commissioner shall remove the name of a tax preparer from the list of tax preparers published under this section:
(1) when the commissioner determines that the name was included on the list in error;
(2) within 90 days three years
after the preparer has demonstrated to the commissioner that the preparer fully
paid all fines or penalties imposed, served any suspension, satisfied
any sentence imposed, successfully completed any probationary period
imposed, and successfully completed any remedial actions required by the
commissioner, the State Board of Accountancy, or the Lawyers Board of
Professional Responsibility; or
(3) when the commissioner has been notified that the tax preparer is deceased.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 11. Minnesota Statutes 2014, section 271.06, subdivision 2, is amended to read:
Subd. 2. Time;
notice; intervention. Except as
otherwise provided by law, within 60 days after the notice of the
making and filing date of an order of the commissioner of revenue,
the appellant, or the appellant's attorney, shall serve a notice of appeal upon
the commissioner and file the original, with proof of such service, with the
Tax Court administrator or with the court administrator of district court
acting as court administrator of the Tax Court; provided, that the Tax Court,
for cause shown, may by written order extend the time for appealing for an
additional period not exceeding 30 days.
For purposes of this section, the term "notice date" means
the notice date designated by the commissioner on the order. The notice of appeal shall be in the form
prescribed by the Tax Court. Within five
days after receipt, the commissioner shall transmit a copy of the notice of
appeal to the attorney general. The
attorney general shall represent the commissioner, if requested, upon all such
appeals except in cases where the attorney general has appealed in behalf of
the state, or in other cases where the attorney general deems it against the
interests of the state to represent the commissioner, in which event the
attorney general may intervene or be substituted as an appellant in behalf of
the state at any stage of the proceedings.
Upon a final determination of any other matter over which the court is granted jurisdiction under section 271.01, subdivision 5, the taxpayer or the taxpayer's attorney shall file a petition or notice of appeal as provided by law with the court administrator of district court, acting in the capacity of court administrator of the Tax Court, with proof of service of the petition or notice of appeal as required by law and within the time required by law. As used in this subdivision, "final determination" includes a notice of assessment and equalization for the year in question received from the local assessor, an order of the local board of equalization, or an order of a county board of equalization.
The Tax Court shall prescribe a filing system so that the notice of appeal or petition filed with the district court administrator acting as court administrator of the Tax Court is forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning property valuation for which the assessor, a local board of equalization, a county board of equalization or the commissioner of revenue has issued an order, the officer issuing the order shall be notified of the filing of the appeal. The notice of appeal or petition shall be in the form prescribed by the Tax Court.
EFFECTIVE
DATE. This section is
effective for orders dated after September 30, 2015.
Sec. 12. Minnesota Statutes 2014, section 271.06, subdivision 7, is amended to read:
Subd. 7. Rules. Except as provided in section 278.05, subdivision 6, the Rules of Evidence and Civil Procedure for the district court of Minnesota shall govern the procedures in the Tax Court, where practicable. The Rules of Civil Procedure do not apply to alter the 60-day period of time to file a notice of appeal provided in subdivision 2. The Tax Court may adopt rules under chapter 14. The rules in effect on January 1, 1989, apply until superseded.
EFFECTIVE
DATE. This section is
effective for orders dated after September 30, 2015.
Sec. 13. Minnesota Statutes 2014, 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. The commissioner shall develop an electronic means to notify interested parties when electric power generation facilities have filed an application. The commissioner shall prescribe the content, format, and manner of the application pursuant to section 270C.30, except that a "law administered by the commissioner" includes the property tax laws, and if an application is made by electronic means, the taxpayer's signature is defined pursuant to section 270C.304, except that a "law administered by the commissioner" includes the property tax laws. 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. The commissioner shall develop an electronic means to notify interested parties when the commissioner has issued an order exempting property from taxation under this subdivision. 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. 14. Minnesota Statutes 2014, 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 content, format, manner, and procedures for this
application pursuant to section 270C.30, except that a "law
administered by the commissioner" includes the property tax laws. If an application is made by electronic
means, the taxpayer's signature is defined pursuant to section 270C.304, except
that a "law administered by the commissioner" includes the property
tax laws. 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) shall
develop an electronic means to notify interested parties when electric power
generation facilities have filed an application. 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 the day following final enactment.
Sec. 15. Minnesota Statutes 2014, 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 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 content, format, and manner of
the statement of exemption pursuant to section 270C.30, except that a
"law administered by the commissioner" includes the property tax laws.
(e) If a statement is made by electronic
means, the taxpayer's signature is defined pursuant to section 270C.304, except
that a "law administered by the commissioner" includes the property
tax laws.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 16. Minnesota Statutes 2014, section 272.029, subdivision 4, is amended to read:
Subd. 4. Reports. (a) An owner of a wind energy conversion
system subject to tax under subdivision 3 shall file a report with the
commissioner of revenue annually on or before February 1 detailing the amount
of electricity in kilowatt-hours that was produced by the wind energy
conversion system for the previous calendar year. The commissioner shall prescribe the form
content, format, and manner of the report pursuant to section
270C.30, except that a "law administered by the commissioner"
includes the property tax laws. 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 wind energy conversion
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 60 percent.
(b) If a report is made by electronic
means, the taxpayer's signature is defined pursuant to section 270C.304, except
that a "law administered by the commissioner" includes the property
tax laws.
(b) (c) On or before February
28, the commissioner of revenue shall notify the owner of the wind energy
conversion systems of the tax due to each county for the current year and shall
certify to the county auditor of each county in which the systems are located
the tax due from each owner for the current year.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 17. Minnesota Statutes 2014, section 272.0295, subdivision 4, is amended to read:
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 content, format, and manner of the
report pursuant to section 270C.30.
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.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 18. Minnesota Statutes 2014, section 272.115, subdivision 2, is amended to read:
Subd. 2. Form;
information required. The certificate
of value shall require such facts and information as may be determined by the
commissioner to be reasonably necessary in the administration of the state
education aid formulas. The form commissioner
shall prescribe the content, format, and manner of the certificate of value
shall be prescribed by the Department of Revenue which shall provide an
adequate supply of forms to each county auditor pursuant to section
270C.30, except that a "law administered by the commissioner"
includes the property tax laws.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 19. Minnesota Statutes 2014, section 273.124, subdivision 13, is amended to read:
Subd. 13. Homestead application. (a) A person who meets the homestead requirements under subdivision 1 must file a homestead application with the county assessor to initially obtain homestead classification.
(b)
The format and contents of a uniform homestead application shall be
prescribed by the commissioner of revenue.
The commissioner shall prescribe the content, format, and manner of
the homestead application required to be filed under this chapter pursuant to
section 270C.30. The application
must clearly inform the taxpayer that this application must be signed by all
owners who occupy the property or by the qualifying relative and returned to
the county assessor in order for the property to receive homestead treatment.
(c) Every property owner applying for homestead classification must furnish to the county assessor the Social Security number of each occupant who is listed as an owner of the property on the deed of record, the name and address of each owner who does not occupy the property, and the name and Social Security number of each owner's spouse who occupies the property. The application must be signed by each owner who occupies the property and by each owner's spouse who occupies the property, or, in the case of property that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
If a property owner occupies a homestead, the property owner's spouse may not claim another property as a homestead unless the property owner and the property owner's spouse file with the assessor an affidavit or other proof required by the assessor stating that the property qualifies as a homestead under subdivision 1, paragraph (e).
Owners or spouses occupying residences owned by their spouses and previously occupied with the other spouse, either of whom fail to include the other spouse's name and Social Security number on the homestead application or provide the affidavits or other proof requested, will be deemed to have elected to receive only partial homestead treatment of their residence. The remainder of the residence will be classified as nonhomestead residential. When an owner or spouse's name and Social Security number appear on homestead applications for two separate residences and only one application is signed, the owner or spouse will be deemed to have elected to homestead the residence for which the application was signed.
(d) If residential real estate is occupied and used for purposes of a homestead by a relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for the property to receive homestead status, a homestead application must be filed with the assessor. The Social Security number of each relative and spouse of a relative occupying the property shall be required on the homestead application filed under this subdivision. If a different relative of the owner subsequently occupies the property, the owner of the property must notify the assessor within 30 days of the change in occupancy. The Social Security number of a relative or relative's spouse occupying the property is private data on individuals as defined by section 13.02, subdivision 12, but may be disclosed to the commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
(e) The homestead application shall also notify the property owners that if the property is granted homestead status for any assessment year, that same property shall remain classified as homestead until the property is sold or transferred to another person, or the owners, the spouse of the owner, or the relatives no longer use the property as their homestead. Upon the sale or transfer of the homestead property, a certificate of value must be timely filed with the county auditor as provided under section 272.115. Failure to notify the assessor within 30 days that the property has been sold, transferred, or that the owner, the spouse of the owner, or the relative is no longer occupying the property as a homestead, shall result in the penalty provided under this subdivision and the property will lose its current homestead status.
(f) If a homestead application has not been filed with the county by December 15, the assessor shall classify the property as nonhomestead for the current assessment year for taxes payable in the following year, provided that the owner may be entitled to receive the homestead classification by proper application under section 375.192.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 20. Minnesota Statutes 2014, section 273.371, subdivision 1, is amended to read:
Subdivision 1. Report
required. Every electric light,
power, gas, water, express, stage, and transportation company and pipeline
doing business in Minnesota shall annually file with the commissioner on or before
March 31 a report under oath setting forth the information prescribed by the
commissioner to enable the commissioner to make valuations, recommended
valuations, and equalization required under sections 273.33, 273.35, 273.36,
273.37, and 273.3711. The
commissioner shall prescribe the content, format, and manner of the report
pursuant to section 270C.30, except that a "law administered by the
commissioner" includes the property tax laws. If all the required information is not
available on March 31, the company or pipeline shall file the information that
is available on or before March 31, and the balance of the information as soon
as it becomes available. If a report
is made by electronic means, the taxpayer's signature is defined pursuant to
section 270C.304, except that a "law administered by the
commissioner" includes the property tax laws.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 21. Minnesota Statutes 2014, section 287.2205, is amended to read:
287.2205
TAX-FORFEITED LAND.
Before a state deed for tax-forfeited land may be issued, the deed tax must be paid by the purchaser of tax‑forfeited land whether the purchase is the result of a public auction or private sale or a repurchase of tax‑forfeited land. State agencies and local units of government that acquire tax-forfeited land by purchase or any other means are subject to this section. The deed tax is $1.65 for a conveyance of tax-forfeited lands to a governmental subdivision for an authorized public use under section 282.01, subdivision 1a, for a school forest under section 282.01, subdivision 1a, or for redevelopment purposes under section 282.01, subdivision 1b.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 22. Minnesota Statutes 2014, section 289A.08, is amended by adding a subdivision to read:
Subd. 17. Format. The commissioner shall prescribe the
content, format, and manner of the returns and other documents pursuant to
section 270C.30. This does not authorize
the commissioner to require individual income taxpayers to file individual
income tax returns electronically.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 23. Minnesota Statutes 2014, section 289A.09, subdivision 1, is amended to read:
Subdivision 1. Returns. (a) An employer who is required to deduct and withhold tax under section 290.92, subdivision 2a or 3, and a person required to deduct and withhold tax under section 290.923, subdivision 2, must file a return with the commissioner for each quarterly period unless otherwise prescribed by the commissioner.
(b) A person or corporation required to make deposits under section 290.9201, subdivision 8, must file an entertainer withholding tax return with the commissioner.
(c) A person required to withhold an amount under section 290.9705, subdivision 1, must file a return.
(d) A partnership required to deduct and withhold tax under section 290.92, subdivision 4b, must file a return.
(e) An S corporation required to deduct and withhold tax under section 290.92, subdivision 4c, must also file a return.
(f)
Returns must be filed in the form and manner, and contain the information
prescribed by the commissioner The commissioner shall prescribe the
content, format, and manner of the returns pursuant to section 270C.30. Every return for taxes withheld must be
signed by the employer, entertainment entity, contract payor, partnership, or S corporation,
or a designee.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 24. Minnesota Statutes 2014, section 289A.11, subdivision 1, is amended to read:
Subdivision 1. Return
required. (a) Except as provided in
section 289A.18, subdivision 4, for the month in which taxes imposed by chapter
297A are payable, or for which a return is due, a return for the preceding
reporting period must be filed with the commissioner in the form and manner
the commissioner prescribes. The
commissioner shall prescribe the content, format, and manner of the returns
pursuant to section 270C.30. A
person making sales at retail at two or more places of business may file a
consolidated return subject to rules prescribed by the commissioner. In computing the dollar amount of items on
the return, the amounts are rounded off to the nearest whole dollar,
disregarding amounts less than 50 cents and increasing amounts of 50 cents to
99 cents to the next highest dollar.
(b) Notwithstanding this subdivision, a
person who is not required to hold a sales tax permit under chapter 297A and
who makes annual purchases, for use in a trade or business, of less than
$18,500, or a person who is not required to hold a sales tax permit and who
makes purchases for personal use, that are subject to the use tax imposed by
section 297A.63, may file an annual use tax return on a form prescribed by
the commissioner. The
commissioner shall prescribe the content, format, and manner of the return
pursuant to section 270C.30. If a
person who qualifies for an annual use tax reporting period is required to
obtain a sales tax permit or makes use tax purchases, for use in a trade or
business, in excess of $18,500 during the calendar year, the reporting period
must be considered ended at the end of the month in which the permit is applied
for or the purchase in excess of $18,500 is made and a return must be filed for
the preceding reporting period.
(c) Notwithstanding paragraph paragraphs
(a) and (b), a person prohibited by the person's religious beliefs from
using electronics shall be allowed to file by mail, without any additional fees. The filer must notify the commissioner of
revenue of the intent to file by mail on a form prescribed by the commissioner. A return filed under this paragraph must be
postmarked no later than the day the return is due in order to be considered
filed on a timely basis.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 25. Minnesota Statutes 2014, section 289A.50, subdivision 7, is amended to read:
Subd. 7. Remedies. (a) If the taxpayer is notified by the commissioner that the refund claim is denied in whole or in part, the taxpayer may:
(1) file an administrative appeal as provided
in section 270C.35, or an appeal with the Tax Court, within 60 days after issuance
the notice date of the commissioner's notice of denial; or
(2) file an action in the district court to recover the refund.
(b) An action in the district court on a
denied claim for refund must be brought within 18 months of the notice
date of the denial of the claim by the commissioner. For the purposes of this section,
"notice date" is defined in section 270C.35, subdivision 3.
(c) No action in the district court or the Tax Court shall be brought within six months of the filing of the refund claim unless the commissioner denies the claim within that period.
(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial of the claim, the taxpayer may bring an action in the district court or the Tax Court at any time after the expiration of six months from the time the claim was filed.
(e) The commissioner and the taxpayer may agree to extend the period for bringing an action in the district court.
(f) An action for refund of tax by the taxpayer must be brought in the district court of the district in which lies the county of the taxpayer's residence or principal place of business. In the case of an estate or trust, the action must be brought at the principal place of its administration. Any action may be brought in the district court for Ramsey County.
EFFECTIVE
DATE. This section is
effective for claims for refund denied after September 30, 2015.
Sec. 26. [290B.11]
FORMS.
The commissioner shall prescribe the
content, format, and manner of all forms and other documents required to be
filed under this chapter pursuant to section 270C.30.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 27. Minnesota Statutes 2014, section 290C.13, subdivision 3, is amended to read:
Subd. 3.
Notice date. For purposes of this section, the term
"notice date" means the notice date designated by the
commissioner on the order or notice of the determination removing enrolled
land or the notice date of designated by the commissioner on
the notice denying an application to enroll land or denying part or all of an
incentive payment.
EFFECTIVE
DATE. This section is
effective for orders and notices dated after September 30, 2015.
Sec. 28. [293.15]
FORMS.
The commissioner shall prescribe the
content, format, and manner of all forms and other documents required to be
filed under this chapter pursuant to section 270C.30.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 29. Minnesota Statutes 2014, section 295.55, subdivision 6, is amended to read:
Subd. 6.
Form of returns. The estimated payments and annual
return must contain the information and be in the form prescribed by the
commissioner. The commissioner
shall prescribe the content, format, and manner of the estimated payment forms
and annual return pursuant to section 270C.30.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 30. Minnesota Statutes 2014, section 296A.02, is amended by adding a subdivision to read:
Subd. 5. Forms. The commissioner shall prescribe the
content, format, and manner of all forms and other documents required to be
filed under this chapter pursuant to section 270C.30.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 31. Minnesota Statutes 2014, section 296A.22, subdivision 9, is amended to read:
Subd. 9. Abatement of penalty. (a) The commissioner may by written order abate any penalty imposed under this section, if in the commissioner's opinion there is reasonable cause to do so.
(b) A request for abatement of penalty must
be filed with the commissioner within 60 days of the notice date of
the notice stating that a penalty has been imposed was mailed to the
taxpayer's last known address. For
purposes of this section, the term "notice date" means the notice
date designated by the commissioner on the order or other notice that a penalty
has been imposed.
(c) If the commissioner issues an order denying a request for abatement of penalty, the taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to Tax Court as provided in section 271.06. If the commissioner does not issue an order on the abatement request within 60 days from the date the request is received, the taxpayer may appeal to Tax Court as provided in section 271.06.
EFFECTIVE
DATE. This section is
effective for orders and notices dated after September 30, 2015.
Sec. 32. Minnesota Statutes 2014, section 296A.26, is amended to read:
296A.26
JUDICIAL REVIEW; APPEAL TO TAX COURT.
In lieu of an administrative appeal under
section 270C.35, any person aggrieved by an order of the commissioner fixing a
tax, penalty, or interest under this chapter may, within 60 days from the notice
date of the notice of the order, appeal to the Tax Court in the manner
provided under section 271.06. For
purposes of this section, the term "notice date" means the notice
date designated by the commissioner on the order fixing a tax, penalty, or
interest.
EFFECTIVE
DATE. This section is
effective for orders dated after September 30, 2015.
Sec. 33. Minnesota Statutes 2014, section 297D.02, is amended to read:
297D.02
ADMINISTRATION.
The commissioner of revenue shall administer this chapter. The commissioner shall prescribe the content, format, and manner of all forms and other documents required to be filed under this chapter pursuant to section 270C.30. Payments required by this chapter must be made to the commissioner on the form provided by the commissioner. Tax obligors are not required to give their name, address, Social Security number, or other identifying information on the form. The commissioner shall collect all taxes under this chapter.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 34. Minnesota Statutes 2014, section 297E.02, subdivision 3, is amended to read:
Subd. 3. Collection;
disposition. (a) Taxes imposed by
this section are due and payable to the commissioner when the gambling tax
return is required to be filed. Distributors
must file their monthly sales figures with the commissioner on a form
prescribed by the commissioner. Returns
covering the taxes imposed under this section must be filed with the
commissioner on or before the 20th day of the month following the close of the
previous calendar month. The
commissioner may require that the returns be filed via magnetic media or
electronic data transfer. The commissioner
shall prescribe the content, format, and manner of returns or other documents
pursuant to section 270C.30. The
proceeds, along with the revenue received from all license fees and other fees
under sections 349.11 to 349.191, 349.211, and 349.213, must be paid to the
commissioner of management and budget for deposit in the general fund.
(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by the distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards by the organization is exempt from taxes imposed by chapter 297A and is exempt from all local taxes and license fees except a fee authorized under section 349.16, subdivision 8.
(c) One-half of one percent of the revenue deposited in the general fund under paragraph (a), is appropriated to the commissioner of human services for the compulsive gambling treatment program established under section 245.98. One-half of one percent of the revenue deposited in the general fund under paragraph (a), is appropriated to the commissioner of human services for a grant to the state affiliate recognized by the National Council on Problem Gambling to increase public awareness of problem gambling, education and training for individuals and organizations providing effective treatment services to problem gamblers and their families, and research relating to problem gambling. Money appropriated by this paragraph must supplement and must not replace existing state funding for these programs.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 35. Minnesota Statutes 2014, section 297E.04, subdivision 1, is amended to read:
Subdivision 1. Reports
of sales. A manufacturer who sells
gambling product for use or resale in this state, or for receipt by a person or
entity in this state, shall file with the commissioner, on a form prescribed by
the commissioner, a report of gambling product sold to any person in the state,
including the established governing body of an Indian tribe recognized by the
United States Department of the Interior.
The report must be filed monthly on or before the 20th day of the month
succeeding the month in which the sale was made. The commissioner may require that the
report be submitted via magnetic media or electronic data transfer. The commissioner shall prescribe the
content, format, and manner of returns or other documents pursuant to section
270C.30. The commissioner may
inspect the premises, books, records, and inventory of a manufacturer without
notice during the normal business hours of the manufacturer. A person violating this section is guilty of
a misdemeanor.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 36. Minnesota Statutes 2014, section 297E.05, subdivision 4, is amended to read:
Subd. 4. Reports. A distributor shall report monthly to the
commissioner, on a form the commissioner prescribes, its sales of each type of
gambling product. This report must be
filed monthly on or before the 20th day of the month succeeding the month in
which the sale was made. The
commissioner may require that a distributor submit
the monthly report and invoices required in this subdivision via magnetic media
or electronic data transfer. The commissioner shall prescribe the
content, format, and manner of returns or other documents pursuant to section
270C.30.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 37. Minnesota Statutes 2014, section 297E.06, subdivision 1, is amended to read:
Subdivision 1. Reports. An organization must file with the
commissioner, on a form prescribed by the commissioner, a report showing all
gambling activity conducted by that organization for each month. Gambling activity includes all gross receipts,
prizes, all gambling taxes owed or paid to the commissioner, all gambling
expenses, and all lawful purpose and board-approved expenditures. The report must be filed with the
commissioner on or before the 20th day of the month following the month in
which the gambling activity takes place.
The commissioner may require that the reports be filed via magnetic
media or electronic data transfer. The
commissioner shall prescribe the content,
format, and manner of returns or other documents pursuant to section 270C.30.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 38. Minnesota Statutes 2014, section 297F.09, subdivision 1, is amended to read:
Subdivision 1. Monthly
return; cigarette distributor. On or
before the 18th day of each calendar month, a distributor with a place of
business in this state shall file a return with the commissioner showing the
quantity of cigarettes manufactured or brought in from outside the state or
purchased during the preceding calendar month and the quantity of cigarettes
sold or otherwise disposed of in this state and outside this state during that
month. A licensed distributor outside
this state shall in like manner file a return showing the quantity of
cigarettes shipped or transported into this state during the preceding calendar
month. Returns must be made in the
form and manner prescribed by The commissioner shall prescribe the
content, format, and manner of returns pursuant to section 270C.30, and the
returns must contain any other information required by the commissioner. The return must be accompanied by a
remittance for the full unpaid tax liability shown by it. For distributors subject to the accelerated tax payment requirements in subdivision 10, the
return for the May liability is due two business days before June 30th
of the year and the return for the June liability is due on or before August
18th of the year.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 39. Minnesota Statutes 2014, section 297F.23, is amended to read:
297F.23
JUDICIAL REVIEW.
In lieu of an administrative appeal under
section 270C.35, a person aggrieved by an order of the commissioner fixing a
tax, penalty, or interest under this chapter may, within 60 days from the notice
date of the notice of the order, appeal to the Tax Court in the manner
provided under section 271.06. For
purposes of this section, the term "notice date" means the notice
date designated by the commissioner on the order fixing a tax, penalty, or
interest.
EFFECTIVE
DATE. This section is
effective for orders dated after September 30, 2015.
Sec. 40. Minnesota Statutes 2014, section 297G.09, subdivision 1, is amended to read:
Subdivision 1. Monthly
returns; manufacturers, wholesalers, brewers, or importers. On or before the 18th day of each
calendar month following the month in which a licensed manufacturer or
wholesaler first sells wine and distilled spirits within the state, or a brewer
or importer first sells or imports fermented malt beverages, or a wholesaler
knowingly acquires title to or possession of untaxed fermented malt beverages,
the licensed manufacturer, wholesaler, brewer, or importer liable for the
excise tax must file a return with the commissioner, and in addition must keep
records and render reports as required by the commissioner. Returns must be made in a form and manner
prescribed by the commissioner, and The commissioner shall prescribe the
content, format, and manner of returns pursuant to section 270C.30. The returns must contain any other
information required by the commissioner.
Returns must be accompanied by a remittance for the full unpaid tax
liability. Returns must be filed
regardless of whether a tax is due.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 41. Minnesota Statutes 2014, section 297G.22, is amended to read:
297G.22
JUDICIAL REVIEW.
In lieu of an administrative appeal under
this chapter, a person aggrieved by an order of the commissioner fixing a tax,
penalty, or interest under this chapter may, within 60 days from the date of
the notice date of the order, appeal to the Tax Court in the manner
provided under section 271.06. For
purposes of this section, the term "notice date" means the notice
date designated by the commissioner on the order fixing a tax, penalty, or
interest.
EFFECTIVE
DATE. This section is
effective for orders dated after September 30, 2015.
Sec. 42. Minnesota Statutes 2014, section 297I.30, is amended by adding a subdivision to read:
Subd. 11. Format. The commissioner shall prescribe the
content, format, and manner of returns or other documents pursuant to section
270C.30.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 43. Minnesota Statutes 2014, section 297I.60, subdivision 2, is amended to read:
Subd. 2. Remedies. (a) If the taxpayer is notified that the refund claim is denied in whole or in part, the taxpayer may contest the denial by:
(1) filing an administrative appeal with the commissioner under section 270C.35;
(2) filing an appeal in Tax Court within 60
days of the notice date of the notice of denial; or
(3) filing an action in the district court to recover the refund.
(b) An action in the district court must be
brought within 18 months following of the notice date of
the notice of denial. For purposes
of this section, "notice date" is defined in section 270C.35,
subdivision 3. An action for refund
of tax or surcharge must be brought in the district court of the district in
which lies the taxpayer's principal place of business or in the District Court
for Ramsey County. If a taxpayer files a
claim for refund and the commissioner has not issued a denial of the claim, the
taxpayer may bring an action in the district court or the Tax Court at any time
after the expiration of six months from the time the claim was filed.
EFFECTIVE
DATE. This section is
effective for claims for refund denied after September 30, 2015.
Sec. 44. Minnesota Statutes 2014, section 469.319, subdivision 5, is amended to read:
Subd. 5. Waiver authority. (a) The commissioner may waive all or part of a repayment required under subdivision 1, if the commissioner, in consultation with the commissioner of employment and economic development and appropriate officials from the local government units in which the qualified business is located, determines that requiring repayment of the tax is not in the best interest of the state or the local government units and the business ceased operating as a result of circumstances beyond its control including, but not limited to:
(1) a natural disaster;
(2) unforeseen industry trends; or
(3) loss of a major supplier or customer.
(b)(1) The commissioner shall waive repayment required under subdivision 1a if the commissioner has waived repayment by the operating business under subdivision 1, unless the person that received benefits without having to operate a business in the zone was a contributing factor in the qualified business becoming subject to repayment under subdivision 1;
(2) the commissioner shall waive the repayment required under subdivision 1a, even if the repayment has not been waived for the operating business if:
(i) the person that received benefits without having to operate a business in the zone and the business that operated in the zone are not related parties as defined in section 267(b) of the Internal Revenue Code of 1986, as amended through December 31, 2007; and
(ii) actions of the person were not a contributing factor in the qualified business becoming subject to repayment under subdivision 1.
(c) Requests for waiver must be made no later
than 60 days after the earlier of the notice date of an order issued under
subdivision 4, paragraph (d), or the date of a tax statement issued under
subdivision 4, paragraph (c). For
purposes of this section, the term "notice date" means the notice
date designated by the commissioner on the order.
EFFECTIVE
DATE. This section is
effective for orders of the commissioner of revenue dated after
September 30, 2015."
Renumber the sections in sequence
Correct the title numbers accordingly
With the recommendation that when so amended the bill be placed on the General Register.
The report was adopted.
Scott from the Committee on Civil Law and Data Practices to which was referred:
H. F. No. 1947, A bill for an act relating to telecommunications; permitting payment in cash for used wireless communications devices in certain circumstances; amending Minnesota Statutes 2014, section 325E.319, subdivision 4.
Reported the same back with the following amendments:
Page 1, delete section 1 and insert:
"Section 1. Minnesota Statutes 2014, section 325E.319, subdivision 4, is amended to read:
Subd. 4. Payment for used wireless communications devices. (a) A wireless communications device dealer shall pay for purchases of all used wireless communications devices by check mailed to a specific address or by electronic transfer.
(b) The purchase price may be paid in
cash at a kiosk if (1) the transaction is reported to the law enforcement
authority with jurisdiction where the purchase was made, (2) a thumbprint is
obtained from the seller in the transaction, and (3) the seller is provided a
disclosure that the seller's transactional information is shared with law
enforcement.
EFFECTIVE DATE. This section is effective the day following final enactment."
With the recommendation that when so amended the bill be re-referred to the Committee on Rules and Legislative Administration.
The report was adopted.
SECOND
READING OF HOUSE BILLS
H. F. No. 1590 was read for the second time.
SECOND READING OF SENATE BILLS
S. F. No. 1647 was read for the second time.
INTRODUCTION AND FIRST READING OF HOUSE BILLS
The following House Files were introduced:
Albright introduced:
H. F. No. 2275, A bill for an act relating to disaster assistance; authorizing spending to acquire and better public land and buildings and other improvements of a capital nature with certain conditions; authorizing the sale and issuance of state bonds.
The bill was read for the first time and referred to the Committee on Environment and Natural Resources Policy and Finance.
Kahn introduced:
H. F. No. 2276, A bill for an act relating to taxation; allowing a credit for historic structure rehabilitation.
The bill was read for the first time and referred to the Committee on Taxes.
Kahn introduced:
H. F. No. 2277, A bill for an act relating to capital investment; appropriating money to replace the pedestrian bike bridge over Interstate Highway 94 connecting Cedar-Riverside and Seward neighborhoods in Minneapolis; authorizing the issuance of state bonds.
The bill was read for the first time and referred to the Committee on Transportation Policy and Finance.
Kahn introduced:
H. F. No. 2278, A bill for an act relating to capital improvements; appropriating money for renovation and expansion of the Brian Coyle Center; modifying an appropriation for the Brian Coyle Center; authorizing the sale and issuance of state bonds; amending Laws 2014, chapter 294, article 1, section 21, subdivision 12.
The bill was read for the first time and referred to the Committee on Environment and Natural Resources Policy and Finance.
Hancock introduced:
H. F. No. 2279, A bill for an act relating to capital investment; appropriating money for capital improvements on the Red Lake Indian Reservation.
The bill was read for the first time and referred to the Committee on Job Growth and Energy Affordability Policy and Finance.
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. 4, A bill for an act relating to transportation; establishing a budget for transportation; appropriating money for transportation, including Department of Transportation, Metropolitan Council, and Department of Public Safety activities; amending various provisions governing transportation policy and finance; establishing funds and accounts; requiring reports; authorizing sale and issuance of trunk highway bonds; amending Minnesota Statutes 2014, sections 16A.11, subdivision 3a; 16A.86, subdivision 2; 16A.88, subdivisions 1a, 2; 16E.15, subdivision 2; 117.036, subdivisions 2, 4; 160.20, subdivision 4; 160.27, by adding a subdivision; 161.04, by adding a subdivision; 161.231; 161.321, subdivisions 2a, 2c, 4; 162.07, subdivision 1a; 168.053, subdivision 1; 168.1299, subdivision 1; 169.475, subdivision 2; 169.49; 169.782, subdivisions 1, 2, 4; 169.79, subdivision 4; 169.81, by adding a subdivision; 169.865, subdivisions 1, 2, by adding a subdivision; 169.87, subdivision 6; 173.02, by adding a subdivision; 173.15; 174.40, by adding a subdivision; 174.636, by adding a subdivision; 174.92; 174.93, subdivision 1; 221.031, by adding a subdivision; 221.605, by adding a subdivision; 299A.465, subdivision 5, by adding a subdivision; 299D.085, subdivision 2; 299D.09; 360.305, subdivision 4; 398A.04, by adding a subdivision; 473.146, subdivision 4; 473.399, by adding a subdivision; 473.4051, subdivision 2; Laws 2009, chapter 158, section 10, as amended; Laws 2014, chapter 312, article 11, section 3; proposing coding for new law in Minnesota Statutes, chapters 16A; 160; 161; 162; 168; 174; 299F; repealing Minnesota Statutes 2014, section 299E.02.
JoAnne M. Zoff, Secretary of the Senate
Petersburg moved that the House refuse to concur in the Senate amendments to H. F. No. 4, that the Speaker appoint a Conference Committee of 5 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.
Mr. Speaker:
I hereby announce the passage by the Senate of the following Senate Files, herewith transmitted:
S. F. Nos. 417, 694, 986, 1120, 1137, 1215, 1219, 1265, 1499 and 1816.
JoAnne M. Zoff, Secretary of the Senate
FIRST
READING OF SENATE BILLS
S. F. No. 417, A bill for an act relating to professional engineers; clarifying licensing requirements; amending Minnesota Statutes 2014, section 326.02, subdivision 3.
The bill was read for the first time.
O'Neill moved that S. F. No. 417 and H. F. No. 288, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.
S. F. No. 694, A bill for an act relating to local government; modifying provisions governing the Saint Paul Port Authority; amending Minnesota Statutes 2014, sections 469.049; 469.050, subdivision 4; 469.084, subdivisions 3, 4, 8, 9, 10, 14; repealing Minnesota Statutes 2014, section 469.084, subdivisions 11, 12.
The bill was read for the first time and referred to the Committee on Job Growth and Energy Affordability Policy and Finance.
S. F. No. 986, A bill for an act relating to public safety; revising the definition of reckless driving and enhancing penalties for reckless driving resulting in death or great bodily harm; amending Minnesota Statutes 2014, section 169.13, subdivisions 1, 3.
The bill was read for the first time.
Garofalo moved that S. F. No. 986 and H. F. No. 1085, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.
S. F. No. 1120, A bill for an act relating to public safety; expanding fourth-degree assault protections to employees supervising and working directly with mentally ill and dangerous patients; amending Minnesota Statutes 2014, section 609.2231, subdivision 3a.
The bill was read for the first time.
Cornish moved that S. F. No. 1120 and H. F. No. 783, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.
S. F. No. 1137, A bill for an act relating to public safety; expanding criminal sexual conduct offenses for persons in current or recent positions of authority over juveniles; amending Minnesota Statutes 2014, sections 609.341, subdivision 10; 609.342, subdivision 1; 609.343, subdivision 1; 609.344, subdivision 1; 609.345, subdivision 1.
The bill was read for the first time.
Winkler moved that S. F. No. 1137 and H. F. No. 1234, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.
S. F. No. 1215, A bill for an act relating to health; prohibiting the use of certain flame-retardant chemicals in certain products; proposing coding for new law in Minnesota Statutes, chapter 325F.
The bill was read for the first time and referred to the Committee on Commerce and Regulatory Reform.
S. F. No. 1219, A bill for an act relating to health; modifying the schedules of controlled substances; amending Minnesota Statutes 2014, section 152.02, subdivisions 2, 3, 4, 5, 6.
The bill was read for the first time.
Barrett moved that S. F. No. 1219 and H. F. No. 1376, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.
S. F. No. 1265, A bill for an act relating to insurance; permitting individuals to contract with an insurance producer to advocate on the individual's behalf with respect to health coverage with an insurance company; regulating payment of commissions by issuers of qualified health plans; amending Minnesota Statutes 2014, sections 60K.31, by adding subdivisions; 60K.48, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 62V.
The bill was read for the first time.
Davids moved that S. F. No. 1265 and H. F. No. 1268, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.
S. F. No. 1499, A bill for an act relating to local government; extending the time period to file certificate of approval of a special law for the Cedar Lake area water and sanitary sewer district.
The bill was read for the first time.
Vogel moved that S. F. No. 1499 and H. F. No. 1541, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.
S. F. No. 1816, A bill for an act relating to property; regulating property transfers; enacting amendments to the Uniform Fraudulent Transfer Act recommended by the National Conference of Commissioners on Uniform State Laws for enactment by the states; amending Minnesota Statutes 2014, sections 513.41; 513.42; 513.43; 513.44; 513.45; 513.46; 513.47; 513.48; 513.51; proposing coding for new law in Minnesota Statutes, chapter 513.
The bill was read for the first time.
Smith moved that S. F. No. 1816 and H. F. No. 1342, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.
Peppin moved that the House recess subject to the call of the Chair. The motion prevailed.
RECESS
RECONVENED
The House reconvened and was called to order by the Speaker.
CALENDAR
FOR THE DAY
Lesch was excused between the hours of 1:20 p.m. and 1:30 p.m.
S. F. No. 2101 was reported to the House.
Garofalo moved to amend S. F. No. 2101, the second engrossment, as follows:
Delete everything after the enacting clause and insert the following language of H. F. No. 105, the first engrossment:
"Section 1. Minnesota Statutes 2014, section 216B.16, subdivision 8, is amended to read:
Subd. 8. Advertising expense. (a) The commission shall disapprove the portion of any rate which makes an allowance directly or indirectly for expenses incurred by a public utility to provide a public advertisement which:
(1) is designed to influence or has the effect of influencing public attitudes toward legislation or proposed legislation, or toward a rule, proposed rule, authorization or proposed authorization of the Public Utilities Commission or other agency of government responsible for regulating a public utility;
(2) is designed to justify or otherwise support or defend a rate, proposed rate, practice or proposed practice of a public utility;
(3) is designed primarily to promote consumption of the services of the utility, except for the promotion of: (i) electric vehicles; (ii) electric water heaters that are electronically activated by a utility to operate when low-priced electricity generated from a renewable source is available; or (iii) ground or air source heat pumps that displace propane or fuel oil;
(4) is designed primarily to promote good will for the public utility or improve the utility's public image; or
(5) is designed to promote the use of nuclear power or to promote a nuclear waste storage facility.
(b) The commission may approve a rate which makes an allowance for expenses incurred by a public utility to disseminate information which:
(1) is designed to encourage conservation of energy supplies;
(2) is designed to promote safety; or
(3) is designed to inform and educate customers as to financial services made available to them by the public utility.
(c) The commission shall not withhold approval of a rate because it makes an allowance for expenses incurred by the utility to disseminate information about corporate affairs to its owners.
(d) For the purposes of this
subdivision:
(1) "electric vehicle" has
the meaning given in section 169.011, subdivision 26a; and
(2)
"renewable source" has the meaning given to "eligible energy
technology" in section 216B.1691, subdivision 1.
EFFECTIVE
DATE. This section is
effective the day following final enactment."
Delete the title and insert:
"A bill for an act relating to energy; modifying the treatment of certain utility advertising expenditures; amending Minnesota Statutes 2014, section 216B.16, subdivision 8."
The motion prevailed and the amendment was adopted.
S. F. No. 2101, A bill for an act relating to state government; appropriating money for agriculture, environment, natural resources, jobs, and economic development; providing for animal health and agricultural utilization research; making policy and technical changes to various agricultural related provisions, including provisions related to pesticide control, plant protection, nursery law, seeds, and loans; modifying license exclusions for the direct sale of certain prepared food; establishing the Agriculture Research, Education, Extension, and Technology Transfer Board; establishing the Industrial Hemp Development Act; providing for incentive payments and grants; modifying disposition of certain revenue; providing for pilot programs; establishing the farm opportunity loan program; modifying fee provisions; creating accounts; modifying recreational vehicle provisions; modifying aquatic invasive species provisions; modifying state park and trail provisions; modifying timber and land sale provisions; modifying provisions for reclamation of lands; modifying game and fish laws; modifying the Water Law; regulating water quality standards; regulating chemicals of high concern in children's products; modifying solid waste provisions; making policy changes to labor and industry, employment and economic development, Iron Range resources, and the Bureau of Mediation Services; requiring studies and reports; requiring rulemaking; amending Minnesota Statutes 2014, sections 13.43, subdivision 6; 13.643, subdivision 1; 13.7411, subdivision 8; 16C.144, by adding subdivisions; 18B.01, subdivisions 28, 29; 18B.32, subdivision 1; 18B.33, subdivision 1; 18B.34, subdivision 1; 18G.10, subdivisions 3, 4; 18H.02, subdivision 20, by adding subdivisions; 18H.06, subdivision 2; 18J.01; 18J.02; 18J.03; 18J.04, subdivisions 1, 2, 3, 4; 18J.05, subdivisions 1, 2, 6; 18J.06; 18J.07, subdivisions 3, 4, 5; 18J.09; 18J.11, subdivision 1, by adding a subdivision; 21.81, by adding subdivisions; 21.82, subdivisions 2, 4; 21.85, subdivision 2, by adding a subdivision; 21.89, subdivision 2; 41B.03, subdivision 6, by adding a subdivision; 41B.04, subdivision 17; 41B.043, subdivision 3; 41B.045, subdivisions 3, 4; 41B.046, subdivision 5; 41B.047, subdivisions 1, 4; 41B.048, subdivision 6; 41B.049, subdivision 4; 41B.055, subdivision 3; 41B.056, subdivision 2; 41B.06; 45.0135, by adding a subdivision; 60D.215, subdivision 2; 65B.44, by adding a subdivision; 72B.092, subdivision 1; 80A.84; 84.415, subdivision 7; 84.82, subdivisions 2a, 6; 84.92, subdivisions 8, 9, 10; 84.922, subdivision 5; 84D.01, by adding a subdivision; 84D.13, subdivision 5; 84D.15, subdivision 3; 85.015, by adding a subdivision; 85.055, subdivision 1; 85.32, subdivision 1; 86B.401, subdivision 3; 87A.10; 88.6435, subdivision 4; 90.14; 90.193; 93.20, subdivision 18; 94.16, subdivision 3; 97A.055, subdivision 4b; 97B.301, by adding a subdivision; 97C.301, by adding a subdivision; 103B.101, by adding a subdivision; 103B.3355; 103F.612, subdivision 2; 103G.005, by adding a subdivision; 103G.222, subdivisions 1, 3; 103G.2242, subdivisions 1, 2, 3, 4, 12, 14, 15; 103G.2251; 115A.1415, subdivision 16; 115A.557, subdivision 2; 115C.09, subdivision 1; 116.07, subdivision 4d; 116.9401; 116.9402; 116.9403; 116.9405; 116.9406; 116J.394; 116J.8738, subdivision 3, by adding a subdivision; 116L.05, subdivision 5; 116L.17, subdivision 4; 123B.53, subdivision 1; 179A.041, by adding subdivisions; 216B.1694, subdivision 3; 216B.62, subdivision 3b; 268.035, subdivisions 6, 21b, 26, 30; 268.051, subdivision 7; 268.07, subdivisions 2, 3b; 268.085, subdivisions 1, 2; 268.095, subdivisions 1, 10; 268.105, subdivisions 3, 7; 268.136, subdivision 1; 268.194, subdivision 1; 298.018, subdivision 1; 298.22, subdivisions 1, 3, 4, 5, 6, 10, 11; 298.221; 298.2211, subdivision 3; 298.222; 298.223; 298.225, subdivision 2; 298.227; 298.28, subdivisions 4, 9a, 9d, 11, 15; 298.292, subdivision 2; 298.293; 298.2961, subdivision 3; 299F.01, by adding a subdivision; 326B.092, subdivision 7; 326B.096; 326B.106, subdivision 1, by adding a subdivision; 326B.13, subdivision 8; 326B.986, subdivisions 5, 8; 332.31, subdivisions 3, 6; 341.321; 375.30, subdivision 2; Laws 1994,
chapter 493, section 1; Laws 2014, chapter 308, article 6, section 14, subdivision 5; Laws 2014, chapter 312, article 2, section 14; proposing coding for new law in Minnesota Statutes, chapters 13; 17; 28A; 41A; 41B; 65B; 80A; 84; 84D; 92; 103B; 103F; 116; 116J; 116L; 116U; 179; 268A; proposing coding for new law as Minnesota Statutes, chapter 18K; repealing Minnesota Statutes 2014, sections 17.115; 28A.15, subdivisions 9, 10; 41A.12, subdivision 4; 84.68; 86B.13, subdivisions 2, 4; 298.298; Laws 2010, chapter 215, article 3, section 3, subdivision 6, as amended.
The bill was read for the third time, as amended, and placed upon its final passage.
The question was taken on the passage of the bill and the roll was called. There were 125 yeas and 0 nays as follows:
Those who voted in the affirmative were:
Anderson, M.
Anderson, P.
Anderson, S.
Anzelc
Applebaum
Backer
Baker
Barrett
Bennett
Bernardy
Bly
Carlson
Christensen
Clark
Considine
Cornish
Daniels
Davids
Davnie
Dean, M.
Dehn, R.
Dettmer
Drazkowski
Erhardt
Erickson
Fabian
Fenton
Fischer
Franson
Freiberg
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Halverson
Hamilton
Hancock
Hansen
Hausman
Heintzeman
Hertaus
Hoppe
Hornstein
Hortman
Howe
Isaacson
Johnson, B.
Johnson, C.
Kahn
Kelly
Kiel
Knoblach
Koznick
Kresha
Laine
Lenczewski
Liebling
Lien
Lillie
Loeffler
Lohmer
Loon
Loonan
Lucero
Lueck
Mack
Mahoney
Mariani
Marquart
Masin
McDonald
McNamara
Melin
Miller
Moran
Mullery
Murphy, E.
Murphy, M.
Nash
Nelson
Newberger
Newton
Nornes
Norton
O'Driscoll
O'Neill
Pelowski
Peppin
Persell
Petersburg
Peterson
Pierson
Pinto
Poppe
Pugh
Quam
Rarick
Rosenthal
Runbeck
Sanders
Schoen
Schomacker
Schultz
Scott
Selcer
Simonson
Slocum
Smith
Swedzinski
Theis
Thissen
Torkelson
Uglem
Urdahl
Vogel
Wagenius
Ward
Whelan
Wills
Winkler
Yarusso
Youakim
Zerwas
Spk. Daudt
The bill was passed, as amended, and its title agreed to.
H. F. No. 848 was reported to the House.
The Speaker called O'Driscoll to the Chair.
Norton moved to amend H. F. No. 848, the second engrossment, as follows:
Page 125, delete sections 1 and 2
Page 134, delete section 12
Page 135, delete section 15
Page 151, delete section 32
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.
CALL OF THE HOUSE
On the motion of Thissen and on the demand of 10 members, a call of the House was ordered. The following members answered to their names:
Allen
Anderson, M.
Anderson, P.
Anderson, S.
Anzelc
Applebaum
Atkins
Backer
Baker
Barrett
Bennett
Bernardy
Bly
Carlson
Christensen
Clark
Considine
Cornish
Daniels
Davids
Davnie
Dean, M.
Dehn, R.
Dettmer
Dill
Drazkowski
Erhardt
Erickson
Fabian
Fenton
Fischer
Franson
Freiberg
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Halverson
Hamilton
Hancock
Hansen
Hausman
Heintzeman
Hertaus
Hilstrom
Hoppe
Hornstein
Hortman
Howe
Isaacson
Johnson, B.
Johnson, C.
Johnson, S.
Kahn
Kelly
Kiel
Knoblach
Koznick
Kresha
Laine
Lenczewski
Lesch
Liebling
Lien
Lillie
Loeffler
Lohmer
Loon
Loonan
Lucero
Lueck
Mack
Mahoney
Mariani
Marquart
Masin
McDonald
McNamara
Melin
Metsa
Miller
Moran
Mullery
Murphy, E.
Murphy, M.
Nash
Nelson
Newberger
Newton
Nornes
Norton
O'Driscoll
O'Neill
Pelowski
Peppin
Persell
Petersburg
Peterson
Pierson
Pinto
Poppe
Pugh
Quam
Rarick
Rosenthal
Runbeck
Sanders
Schoen
Schomacker
Schultz
Scott
Selcer
Simonson
Slocum
Smith
Sundin
Swedzinski
Theis
Thissen
Torkelson
Uglem
Urdahl
Vogel
Wagenius
Ward
Whelan
Wills
Winkler
Yarusso
Youakim
Zerwas
Spk. Daudt
All members answered to the call and it was so ordered.
Atkins moved to amend H. F. No. 848, the second engrossment, as follows:
Page 232, after line 34, insert:
"Sec. 9. Minnesota Statutes 2014, section 270B.14, subdivision 17, is amended to read:
Subd. 17. Disclosure to Department of Commerce. The commissioner may disclose to the
commissioner of commerce information required to administer the Uniform
Disposition of Unclaimed Property Act in sections 345.31 to 345.60, including
the Social Security numbers of the taxpayers whose refunds are on the report of
abandoned property submitted by the commissioner to the commissioner of
commerce under section 345.41. Except
for data published under section 345.42, the information received that is
private or nonpublic data retains its classification, and can be used by the
commissioner of commerce only for the purpose of verifying that the persons
claiming the refunds are the owners. The commissioner shall coordinate with the commissioner of commerce to provide by January 15 of each year the addresses of taxpayers whose names and Social Security numbers indicate they are owners of abandoned property under the Uniform Disposition of Unclaimed Property Act in sections 345.31 to 345.60."
Page 236, after line 36, insert:
"Sec. 15. Minnesota Statutes 2014, section 345.42, is amended by adding a subdivision to read:
Subd. 1a. Coordinate with Department of Revenue. The commissioner shall coordinate with the commissioner of revenue to receive by January 15 of each year the addresses of owners whose names and Social Security numbers indicate they are owners of abandoned property. The commissioner shall annually mail notice to the owners. The notice shall include a letter stating that the recipient may be the owner of abandoned property, information concerning the process of filing a claim, and a claim form."
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
The motion prevailed and the amendment was adopted.
CALL OF THE HOUSE LIFTED
Thissen moved that the call of the House be lifted. The motion prevailed and it was so ordered.
Urdahl was excused between the hours of 2:35 p.m. and 2:45 p.m.
Lenczewski moved to amend H. F. No. 848, the second engrossment, as amended, as follows:
Delete everything after the enacting clause and insert:
"ARTICLE 1
INCOME AND FRANCHISE TAXES
Section 1.
[16A.728] LONG-TERM CARE
SAVINGS PLAN.
Subdivision 1. Definitions. (a) For purposes of this section, the
following terms have the meanings given.
(b) "Long-term care expense"
means the cost of long-term care in a long-term care facility and the cost of
care provided in a person's home when the person receiving the care is unable
to perform multiple basic life functions independently.
(c) "Long-term care insurance
premiums" means premiums paid for a long-term care insurance policy, as
defined in section 290.0672.
(d)
"Participant" means an individual who has entered into a
participation agreement or established an account under the plan with a
financial institution with which the commissioner has an agreement under
subdivision 2, paragraph (a).
(e) "Qualified individual"
means a person who:
(1) incurred long-term care expenses
during the taxable year; or
(2) turned 50 years of age or older
during the taxable year and who made payments for long-term care insurance
premiums during the taxable year.
Subd. 2. Commissioner
duties; participation agreement. (a)
The Minnesota long-term care savings plan is created. The commissioner shall select the administrator
of the plan. If the commissioner
receives no acceptable responses to a request for proposals for an
administrator for the plan by November 1, 2015, the commissioner may enter into
agreements with state chartered or federally chartered banks, savings banks,
savings associations, trust companies, or credit unions, or a subsidiary of
such an entity, to receive contributions in the form of account deposits. The commissioner may adopt and promulgate
rules and regulations to carry out the duties under this subdivision.
(b) If an administrator is selected,
participants must enter into participation agreements with the commissioner,
and if an administrator is not selected, participants may make contributions to
an account with a financial institution with which the commissioner has an
agreement under paragraph (a). A
lifetime maximum of $200,000 may be contributed by a participant. The commissioner must adjust the dollar
limitation annually for inflation as provided in section 151 of the Internal
Revenue Code of 1986, as amended.
(c) Each participation agreement must
provide that the agreement may be canceled or transferred to a spouse upon the
terms and conditions set by the commissioner.
If the participation agreement is canceled or the Minnesota long-term
care savings plan is terminated, a participant may receive the principal amount
of all contributions made by the participant or on behalf of the participant
plus the actual investment earnings on the contributions, less any losses
incurred on the contributions. A
participant must not receive more than the fair market value of the account
under the participation agreement on the applicable liquidation date.
(d) A participant retains ownership of
all contributions up to the date of use.
(e) State income tax treatment of
contributions and investment earnings is as provided in section 290.01,
subdivisions 19a and 19b.
Subd. 3. Long-term
care savings plan trust. If
an administrator for the Minnesota long-term care savings plan is selected
under subdivision 2, the Minnesota long-term care savings plan trust is created. The commissioner is the trustee of the trust
and is responsible for the administration, operation, and maintenance of the
plan and has all the powers necessary to carry out and effectuate the purposes,
objectives, and provisions of the Minnesota long-term care savings plan for the
administration, operation, and maintenance of the trust, except that the
investment officer has fiduciary responsibility to make all decisions regarding
the investment of the money in the trust, including the selection of all
investment options and the approval of all fees and other costs charged to
trust assets, except costs for administration, operation, and maintenance of
the trust, under the directions, guidelines, and policies established by the
State Board of Investment. The
commissioner may adopt and promulgate rules for the efficient administration,
operation, and maintenance of the trust.
The commissioner must not adopt and promulgate rules and regulations
that in any way interfere with the fiduciary responsibility of the state
investment officer to make all decisions regarding the investment of money in
the trust. The State Board of Investment
may adopt and promulgate rules and regulations to provide for the prudent
investment of the assets of the trust. The
State Board of Investment or its designee may select and enter into agreements
with individuals and entities to provide investment advice and
management
of the assets held by the trust, establish investment guidelines, objectives,
and performance standards for the assets held by the trust, and approve any
fees, commissions, and expenses which directly or indirectly affect the return
on assets.
Subd. 4. Authorized
withdrawals. A qualified individual
may make withdrawals as a participant in the Minnesota long-term care savings
plan to pay or reimburse long-term care expenses or long-term care insurance
premiums. Any participant who is not a
qualified individual or who makes a withdrawal for any reason other than a
transfer of funds to a spouse, payment of long-term care expenses or long-term
care insurance premiums, or the death of the participant is subject to a ten
percent penalty on the amount withdrawn.
The commissioner shall collect the penalty.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2014, section 116J.8737, subdivision 5, is amended to read:
Subd. 5. Credit
allowed. (a)(1) A qualified investor
or qualified fund is eligible for a credit equal to 25 percent of the qualified
investment in a qualified small business.
Investments made by a pass-through entity qualify for a credit only if
the entity is a qualified fund. The
commissioner must not allocate more than $15,000,000 in credits to qualified
investors or qualified funds for taxable years beginning after December 31,
2013, and before January 1, 2017 2015, and must not allocate more
than $18,000,000 in credits to qualified investors or qualified funds for
taxable years beginning after December 31, 2014, and before January 1, 2019;
and
(2) for taxable years beginning after
December 31, 2014, and before January 1, 2017, $7,500,000 50 percent
of the amount available for the taxable year must be allocated to credits
for qualifying investments in qualified greater Minnesota businesses and
minority- or women-owned qualified small businesses in Minnesota. Any portion of a taxable year's credits that
is reserved for qualifying investments in greater Minnesota businesses and
minority- or women-owned qualified small businesses in Minnesota that is not
allocated by September 30 of the taxable year is available for allocation to
other credit applications beginning on October 1. Any portion of a taxable year's credits that
is not allocated by the commissioner does not cancel and may be carried forward
to subsequent taxable years until all credits have been allocated.
(b) The commissioner may not allocate more than a total maximum amount in credits for a taxable year to a qualified investor for the investor's cumulative qualified investments as an individual qualified investor and as an investor in a qualified fund; for married couples filing joint returns the maximum is $250,000, and for all other filers the maximum is $125,000. The commissioner may not allocate more than a total of $1,000,000 in credits over all taxable years for qualified investments in any one qualified small business.
(c) The commissioner may not allocate a credit to a qualified investor either as an individual qualified investor or as an investor in a qualified fund if, at the time the investment is proposed:
(1) the investor is an officer or principal of the qualified small business; or
(2) the investor, either individually or in combination with one or more members of the investor's family, owns, controls, or holds the power to vote 20 percent or more of the outstanding securities of the qualified small business.
A member of the family of an individual disqualified by this paragraph is not eligible for a credit under this section. For a married couple filing a joint return, the limitations in this paragraph apply collectively to the investor and spouse. For purposes of determining the ownership interest of an investor under this paragraph, the rules under section 267(c) and 267(e) of the Internal Revenue Code apply.
(d) Applications for tax credits for 2010 must be made available on the department's Web site by September 1, 2010, and the department must begin accepting applications by September 1, 2010. Applications for subsequent years must be made available by November 1 of the preceding year.
(e) Qualified investors and qualified funds must apply to the commissioner for tax credits. Tax credits must be allocated to qualified investors or qualified funds in the order that the tax credit request applications are filed with the department. The commissioner must approve or reject tax credit request applications within 15 days of receiving the application. The investment specified in the application must be made within 60 days of the allocation of the credits. If the investment is not made within 60 days, the credit allocation is canceled and available for reallocation. A qualified investor or qualified fund that fails to invest as specified in the application, within 60 days of allocation of the credits, must notify the commissioner of the failure to invest within five business days of the expiration of the 60-day investment period.
(f) All tax credit request applications filed with the department on the same day must be treated as having been filed contemporaneously. If two or more qualified investors or qualified funds file tax credit request applications on the same day, and the aggregate amount of credit allocation claims exceeds the aggregate limit of credits under this section or the lesser amount of credits that remain unallocated on that day, then the credits must be allocated among the qualified investors or qualified funds who filed on that day on a pro rata basis with respect to the amounts claimed. The pro rata allocation for any one qualified investor or qualified fund is the product obtained by multiplying a fraction, the numerator of which is the amount of the credit allocation claim filed on behalf of a qualified investor and the denominator of which is the total of all credit allocation claims filed on behalf of all applicants on that day, by the amount of credits that remain unallocated on that day for the taxable year.
(g) A qualified investor or qualified fund, or a qualified small business acting on their behalf, must notify the commissioner when an investment for which credits were allocated has been made, and the taxable year in which the investment was made. A qualified fund must also provide the commissioner with a statement indicating the amount invested by each investor in the qualified fund based on each investor's share of the assets of the qualified fund at the time of the qualified investment. After receiving notification that the investment was made, the commissioner must issue credit certificates for the taxable year in which the investment was made to the qualified investor or, for an investment made by a qualified fund, to each qualified investor who is an investor in the fund. The certificate must state that the credit is subject to revocation if the qualified investor or qualified fund does not hold the investment in the qualified small business for at least three years, consisting of the calendar year in which the investment was made and the two following years. The three-year holding period does not apply if:
(1) the investment by the qualified investor or qualified fund becomes worthless before the end of the three-year period;
(2) 80 percent or more of the assets of the qualified small business is sold before the end of the three-year period;
(3) the qualified small business is sold before the end of the three-year period;
(4) the qualified small business's common stock begins trading on a public exchange before the end of the three‑year period; or
(5) the qualified investor dies before the end of the three-year period.
(h) The commissioner must notify the commissioner of revenue of credit certificates issued under this section.
EFFECTIVE
DATE. This section is
effective the day following final enactment for taxable years beginning after
December 31, 2014.
Sec. 3. Minnesota Statutes 2014, section 116J.8737, subdivision 12, is amended to read:
Subd. 12. Sunset. This section expires for taxable years
beginning after December 31, 2016 2018, except that reporting
requirements under subdivision 6 and revocation of credits under subdivision 7
remain in effect through 2018 2020 for qualified investors and
qualified funds, and through 2020 2022 for qualified small
businesses, reporting requirements under subdivision 9 remain in effect through
2021 2023, and the appropriation in subdivision 11 remains in
effect through 2020 2022.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. [116J.8739]
TECHNOLOGY CORPORATE TAX BENEFIT REFUND PROGRAM.
Subdivision 1. Program
established. The commissioner
shall establish a corporate tax benefit refund program to allow new or
expanding technology and biotechnology companies in this state with unused net
operating loss carryovers under section 290.095 to surrender those tax benefits
for refunds. The refunds must be used to
assist in the funding of costs incurred by the new or expanding technology and
biotechnology company.
Subd. 2. Definitions. (a) For purposes of this section, the
following terms have the meanings given.
(b) "Biotechnology" means the
continually expanding body of fundamental knowledge about the functioning of
biological systems from the macro level to the molecular and subatomic levels,
as well as novel products, services, technologies, and subtechnologies
developed as a result of insights gained from research advances that add to
that body of fundamental knowledge.
(c) "Biotechnology company" means an corporation that:
(1) has its headquarters or base of
operations in this state;
(2) owns, has filed for, or has a valid
license to use protected, proprietary intellectual property; and
(3) is engaged in the research,
development, production, or provision of biotechnology to develop or provide products
or processes for specific commercial or public purposes including, but not
limited to, medical, pharmaceutical, nutritional, and other health-related
purposes, agricultural purposes, and environmental purposes.
(d) "Full-time employee"
means a person employed by a new or expanding technology or biotechnology
company for consideration for at least 35 hours per week, or who renders any
other standard of service generally accepted by custom or practice as full-time
employment and whose wages are subject to withholding under section 290.92; or
who is a partner of a new or expanding technology or biotechnology company who
works for the partnership for at least 35 hours per week, or who renders any
other standard of service generally accepted by custom or practice as full-time
employment, and whose distributive share of income, gain, loss, or deduction,
or whose guaranteed payments, or any combination of them, is subject to the
payment of estimated taxes, under section 289A.25. To qualify as a full-time employee, an
employee must also receive from the new or expanding technology or
biotechnology company group health benefits under a health plan as defined
under section 62A.011, subdivision 3, or under a self-insured employee welfare
benefit plan as defined in United States Code, title 29, section 1002. Full-time employee excludes any person who
works as an independent contractor or on a consulting basis for the new or
expanding technology or biotechnology company.
(e)
"New or expanding" means a technology or biotechnology company that:
(1) on June 30 of the year in which the
corporation files an application for surrender of tax benefits under this
section and on the date of the grant of the corporate tax benefit certificate,
has fewer than 250 employees in the United States;
(2) on June 30 of the year in which the
corporation files the application, has at least one full-time employee working
in this state if the company has been incorporated for less than three years,
has at least five full-time employees working in this state if the company has
been incorporated for more than three years but fewer than five years, and has
at least ten full-time employees working in this state if the company has been
incorporated for more than five years; and
(3) on the date of the grant of the
corporate tax benefit certificate, the corporation has the number of full-time
employees in this state required by clause (2).
(f) "Technology company"
means a corporation that:
(1) has its headquarters or base of
operations in this state;
(2) owns, has filed for, or has a valid
license to use protected, proprietary intellectual property; and
(3) employs some combination of the
following: highly educated or trained
managers and workers, or both, employed in this state who use sophisticated
scientific research service or production equipment, processes, or knowledge to
discover, develop, test, transfer, or manufacture a product or service.
Subd. 3. Allocation
of tax benefits; annual limit. (a)
The commissioner, in cooperation with the commissioner of revenue, shall review
and approve applications by new or expanding technology and biotechnology
companies with unused but otherwise allowable net operating loss carryovers
under section 290.095 to surrender those tax benefits for the grant of a refund. The amount of the qualifying tax benefit is
the amount of the net operating loss carryover multiplied by the new or
expanding technology or biotechnology company's anticipated apportionment
percentage, as determined under section 290.191, for the taxable year in which
the benefit is surrendered and then multiplied by the corporate franchise tax
rate under section 290.06, subdivision 1.
(b) The commissioner must approve the
grant of no more than $15,000,000 of tax benefit refunds in each fiscal year. If the total amount of tax benefits requested
to be surrendered by approved applicants exceeds $15,000,000 for a fiscal year,
the commissioner, in cooperation with the commissioner of revenue, must not
approve the grant of more than $15,000,000 of tax benefits for that fiscal year
and shall allocate the grant of tax benefit refunds by approved corporations
using the following method:
(1) an eligible applicant with $250,000
or less of qualifying tax benefits may surrender the entire amount of its tax
benefits;
(2) an eligible applicant with more
than $250,000 of qualifying tax benefits may surrender a minimum of $250,000 of
its tax benefits; and
(3) an eligible applicant with more
than $250,000 of qualifying tax benefits may surrender additional tax benefits
determined by multiplying the applicant's tax benefits, less the minimum tax
benefits that corporation is authorized to surrender under clause (2), by a
fraction, the numerator of which is the total amount of tax benefit grants that
the commissioner is authorized to approve less the total amount of tax benefits
approved under clauses (1) and (2), and the denominator of which is the total
amount of tax benefits requested to be surrendered by all eligible applicants
less the total amount of tax benefit grants approved under clauses (1) and (2).
(c)
If the total amount of tax benefit grants that would be authorized using the
method under paragraph (b) exceeds $15,000,000 for a fiscal year, then the
commissioner, in cooperation with the commissioner of revenue, shall limit the
total amount of tax benefit grants authorized to $15,000,000 by applying the
above method on an apportioned basis.
Subd. 4. Qualifying
tax benefits and corporations. (a)
For purposes of this section, qualifying tax benefits include an eligible
applicant's unused but otherwise allowable carryover of net operating losses
multiplied by the applicant's anticipated allocation factor as determined under
section 290.191 for the taxable year in which the benefit is surrendered and
subsequently multiplied by the corporation franchise tax rate under section
290.06, subdivision 1. An eligible
applicant's qualifying tax benefits are limited to net operating losses that
the applicant requests to surrender in its application to the authority and
must not, in total, exceed the maximum amount of tax benefits that the
applicant is eligible to surrender. No
application for a corporate tax benefit certificate must be approved in which
the new or expanding technology or biotechnology company:
(1) has demonstrated positive net
operating income in any of the two previous full years of ongoing operations as
determined on its financial statements issued according to generally accepted
accounting standards endorsed by the Financial Accounting Standards Board; or
(2) is directly or indirectly at least
50 percent owned or controlled by another corporation that has demonstrated
positive net operating income in any of the two previous full years of ongoing
operations as determined on its financial statements issued according to
generally accepted accounting standards endorsed by the Financial Accounting
Standards Board or is part of a consolidated group of affiliated corporations,
as filed for federal income tax purposes, that in the aggregate has
demonstrated positive net operating income in any of the two previous full
years of ongoing operations as determined on its combined financial statements
issued according to generally accepted accounting standards endorsed by the
Financial Accounting Standards Board.
(b) The maximum lifetime value of
surrendered tax benefits that a corporation may surrender under the program is
$5,000,000.
Subd. 5. Recapture
of tax benefits. The
commissioner, in consultation with the commissioner of revenue, shall establish
procedures for the recapture of all of, or a portion of, the amount of a grant
of a corporate tax benefit certificate from the new or expanding technology or
biotechnology company receiving a grant for a refund of surrendered tax
benefits under this section if the taxpayer fails to use the refund as required
by this section or fails to maintain a headquarters or a base of operation in
this state during the five years following receipt of the refund, except if the
failure to maintain a headquarters or a base of operation in this state is due
to the liquidation of the new or expanding technology or biotechnology company.
Subd. 6. Approval
of acquisition of tax benefits; purposes; required agreement. (a) The commissioner must not issue a
corporate tax benefit certificate unless the applicant certifies that as of the
date of the grant of the certificate that it is operating as a new or expanding
technology or biotechnology company in this state and does not intend to cease
operating as a new or expanding technology or biotechnology company in this
state.
(b) The recipient of a grant under this
section must use the refund to pay expenses incurred for the operation of the
new or expanding technology or biotechnology company in this state including,
but not limited to, the expenses of fixed assets, such as the construction and
acquisition and development of real estate, materials, start-up, tenant fit‑out,
working capital, salaries, research and development expenditures, and any other
expenses determined by the commissioner to be necessary to carry out technology
or biotechnology company operations in this state.
(c)
The commissioner shall enter into a written agreement with the new or expanding
technology or biotechnology company specifying the terms and conditions of the
grant of the certificate of tax benefits.
The written agreement may require the maintenance by the new or
expanding technology or biotechnology company of a headquarters or a base of
operation in this state.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to taxable years
beginning after December 31, 2015.
Sec. 5. Minnesota Statutes 2014, section 289A.02, subdivision 7, as amended by Laws 2015, chapter 1, section 1, 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 31, 2014 April 1, 2015.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 6. Minnesota Statutes 2014, section 289A.12, is amended by adding a subdivision to read:
Subd. 19. Charity
health care services. (a) A
medical professional, dentist, or chiropractor claiming the subtraction under
section 290.01, subdivision 19b, clause (23), must file an informational report
with the commissioner documenting the value of charity health care 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 care services its
employees provided during the taxable year.
The charity health care services reported to the commissioner must be
limited to those services covered under medical assistance and for which a
federal Medicaid match is available and must be calculated at the reimbursement
rates provided in section 256B.76.
(b) For purposes of this subdivision,
the following terms have the meanings given:
(1) "chiropractor" means an
individual licensed under chapter 148;
(2) "dentist" means an
individual licensed under chapter 150A; and
(3) "medical professional"
means an individual licensed under chapter 147, an individual licensed under
chapter 147B, and a mental health professional as defined under section
245.462, subdivision 18, or section 245.4871, subdivision 27.
(c) The commissioner shall define
charity health care services for purposes of this subdivision. In developing this definition, the
commissioner shall consider the criteria specified in Minnesota Rules, part
4650.0115, subpart 2.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 7. Minnesota Statutes 2014, section 290.01, subdivision 7, is amended to read:
Subd. 7. Resident. (a) The term "resident" means any individual domiciled in Minnesota, except that an individual is not a "resident" for the period of time that the individual is a "qualified individual" as defined in section 911(d)(1) of the Internal Revenue Code, if the qualified individual notifies the county within three months of moving out of the country that homestead status be revoked for the Minnesota residence of the qualified individual, and the property is not classified as a homestead while the individual remains a qualified individual.
(b) "Resident" also means any individual domiciled outside the state who maintains a place of abode in the state and spends in the aggregate more than one-half of the tax year in Minnesota, unless:
(1) the individual or the spouse of the individual is in the armed forces of the United States; or
(2) the individual is covered under the reciprocity provisions in section 290.081.
For purposes of this subdivision, presence within the state for any part of a calendar day constitutes a day spent in the state, except that a day spent in Minnesota for the primary purpose of receiving medical treatment by the taxpayer, or the spouse, child, or parent of the taxpayer, is not treated as a day spent in Minnesota. "Medical treatment" means treatment as defined in section 213(d)(1)(A) of the Internal Revenue Code. Individuals shall keep adequate records to substantiate the days spent outside the state.
The term "abode" means a dwelling maintained by an individual, whether or not owned by the individual and whether or not occupied by the individual, and includes a dwelling place owned or leased by the individual's spouse.
(c) In determining where an individual is domiciled, neither the commissioner nor any court shall consider:
(1) charitable contributions made
by an the individual within or without the state in
determining if the individual is domiciled in Minnesota.;
(2) the location of the individual's
attorney, certified public accountant, or financial adviser; or
(3) the place of business of a
financial institution at which the individual applies for any new type of
credit or at which the individual opens or maintains any type of account.
(d) For purposes of this subdivision,
the following terms have the meanings given them:
(1) "financial adviser" means
a financial institution or an individual engaged in business as a certified
financial planner, registered investment adviser, licensed insurance agent, or
securities broker-dealer; and
(2) "financial institution"
means a financial institution as defined in section 47.015, subdivision 1; a
state or nationally chartered credit union; or a registered broker-dealer under
the Securities and Exchange Act of 1934.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 8. Minnesota Statutes 2014, section 290.01, subdivision 19, as amended by Laws 2015, chapter 1, section 2, 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 31, 2014 April 1, 2015, 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 retroactively for
taxable years beginning after December 31, 2013.
Sec. 9. Minnesota Statutes 2014, section 290.01, subdivision 19a, is amended to read:
Subd. 19a. Additions to federal taxable income. For individuals, estates, and trusts, there shall be added to federal taxable income:
(1)(i) interest income on obligations of any state other than Minnesota or a political or governmental subdivision, municipality, or governmental agency or instrumentality of any state other than Minnesota exempt from federal income taxes under the Internal Revenue Code or any other federal statute; and
(ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue Code, except:
(A) the
portion of the exempt-interest dividends exempt from state taxation under the
laws of the United States; and
(B) the portion of the exempt-interest dividends derived from interest income on obligations of the state of Minnesota or its political or governmental subdivisions, municipalities, governmental agencies or instrumentalities, but only if the portion of the exempt-interest dividends from such Minnesota sources paid to all shareholders represents 95 percent or more of the exempt-interest dividends, including any dividends exempt under subitem (A), that are paid by the regulated investment company as defined in section 851(a) of the Internal Revenue Code, or the fund of the regulated investment company as defined in section 851(g) of the Internal Revenue Code, making the payment; and
(iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal government described in section 7871(c) of the Internal Revenue Code shall be treated as interest income on obligations of the state in which the tribe is located;
(2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid or accrued within the taxable year under this chapter and the amount of taxes based on net income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state or to any province or territory of Canada, to the extent allowed as a deduction under section 63(d) of the Internal Revenue Code, but the addition may not be more than the amount by which the
state itemized deduction exceeds the amount of the standard deduction as defined in section 63(c) of the Internal Revenue Code, minus any addition that would have been required under clause (17) if the taxpayer had claimed the standard deduction. For the purpose of this clause, income, sales and use, motor vehicle sales, or excise taxes are the last itemized deductions disallowed under clause (15);
(3) the capital gain amount of a lump-sum distribution to which the special tax under section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;
(4) the amount of income taxes paid or accrued within the taxable year under this chapter and taxes based on net income paid to any other state or any province or territory of Canada, to the extent allowed as a deduction in determining federal adjusted gross income. For the purpose of this paragraph, income taxes do not include the taxes imposed by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729;
(5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10 other than expenses or interest used in computing net interest income for the subtraction allowed under subdivision 19b, clause (1);
(6) the amount of a partner's pro rata share of net income which does not flow through to the partner because the partnership elected to pay the tax on the income under section 6242(a)(2) of the Internal Revenue Code;
(7) 80 percent of the depreciation deduction allowed under section 168(k) of the Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that in the taxable year generates a deduction for depreciation under section 168(k) and the activity generates a loss for the taxable year that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is limited to excess of the depreciation claimed by the activity under section 168(k) over the amount of the loss from the activity that is not allowed in the taxable year. In succeeding taxable years when the losses not allowed in the taxable year are allowed, the depreciation under section 168(k) is allowed;
(8) 80 percent of the amount by which the deduction allowed by section 179 of the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003;
(9) to the extent deducted in computing federal taxable income, the amount of the deduction allowable under section 199 of the Internal Revenue Code;
(10) the amount of expenses disallowed under section 290.10, subdivision 2;
(11) for taxable years beginning before January 1, 2010, the amount deducted for qualified tuition and related expenses under section 222 of the Internal Revenue Code, to the extent deducted from gross income;
(12) for taxable years beginning before January 1, 2010, the amount deducted for certain expenses of elementary and secondary school teachers under section 62(a)(2)(D) of the Internal Revenue Code, to the extent deducted from gross income;
(13) discharge of indebtedness income resulting from reacquisition of business indebtedness and deferred under section 108(i) of the Internal Revenue Code;
(14) changes to federal taxable income attributable to a net operating loss that the taxpayer elected to carry back for more than two years for federal purposes but for which the losses can be carried back for only two years under section 290.095, subdivision 11, paragraph (c);
(15) the amount of disallowed itemized deductions, but the amount of disallowed itemized deductions plus the addition required under clause (2) may not be more than the amount by which the itemized deductions as allowed under section 63(d) of the Internal Revenue Code exceeds the amount of the standard deduction as defined in section 63(c) of the Internal Revenue Code, and reduced by any addition that would have been required under clause (17) if the taxpayer had claimed the standard deduction:
(i) the amount of disallowed itemized deductions is equal to the lesser of:
(A) three percent of the excess of the taxpayer's federal adjusted gross income over the applicable amount; or
(B) 80 percent of the amount of the itemized deductions otherwise allowable to the taxpayer under the Internal Revenue Code for the taxable year;
(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a married individual filing a separate return. Each dollar amount shall be increased by an amount equal to:
(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal Revenue Code for the calendar year in which the taxable year begins, by substituting "calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof;
(iii) the term "itemized deductions" does not include:
(A) the deduction for medical expenses under section 213 of the Internal Revenue Code;
(B) any deduction for investment interest as defined in section 163(d) of the Internal Revenue Code; and
(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue Code or for losses described in section 165(d) of the Internal Revenue Code;
(16) the amount of disallowed personal exemptions for taxpayers with federal adjusted gross income over the threshold amount:
(i) the disallowed personal exemption amount is equal to the number of personal exemptions allowed under section 151(b) and (c) of the Internal Revenue Code multiplied by the dollar amount for personal exemptions under section 151(d)(1) and (2) of the Internal Revenue Code, as adjusted for inflation by section 151(d)(4) of the Internal Revenue Code, and by the applicable percentage;
(ii) "applicable percentage" means two percentage points for each $2,500 (or fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable year exceeds the threshold amount. In the case of a married individual filing a separate return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In no event shall the applicable percentage exceed 100 percent;
(iii) the term "threshold amount" means:
(A) $150,000 in the case of a joint return or a surviving spouse;
(B) $125,000 in the case of a head of a household;
(C) $100,000 in the case of an individual who is not married and who is not a surviving spouse or head of a household; and
(D) $75,000 in the case of a married individual filing a separate return; and
(iv) the thresholds shall be increased by an amount equal to:
(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment
determined under section 1(f)(3) of the Internal Revenue Code for the calendar
year in which the taxable year begins, by substituting "calendar year
1990" for "calendar year 1992" in subparagraph (B) thereof; and
(17) to the extent deducted in the
computation of federal taxable income, for taxable years beginning after
December 31, 2010, and before January 1, 2014, the difference between the
standard deduction allowed under section 63(c) of the Internal Revenue Code and
the standard deduction allowed for 2011, 2012, and 2013 under the Internal
Revenue Code as amended through December 1, 2010.; and
(18) the amount withdrawn by a
participant in the Minnesota long-term care savings plan under section 16A.128
by a person who is not a qualified individual or for any reason other than a
transfer of funds to a spouse, payment of long-term care expenses or long-term
care insurance premiums, or the death of the participant, including withdrawals
made by reason of cancellation of the participation agreement or termination of
the plan.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 10. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:
Subd. 19b. Subtractions from federal taxable income. For individuals, estates, and trusts, there shall be subtracted from federal taxable income:
(1) net interest income on obligations of any authority, commission, or instrumentality of the United States to the extent includable in taxable income for federal income tax purposes but exempt from state income tax under the laws of the United States;
(2) if included in federal taxable income, the amount of any overpayment of income tax to Minnesota or to any other state, for any previous taxable year, whether the amount is received as a refund or as a credit to another taxable year's income tax liability;
(3) the amount paid to others, less the
amount used to claim the credit allowed under section 290.0674, and amounts
used to claim the credit under section 290.067, not to exceed $1,625
$2,500 for each qualifying child in grades a prekindergarten
educational program or in kindergarten to through grade 6 and
$2,500 $3,750 for each qualifying child in grades 7 to through
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 education-related expenses, as defined in section
290.0674, subdivision 1, and tuition for each qualifying child 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 purposes of the
subtraction provided by this clause, "qualifying child" has the
meaning given in section 32(c)(3) of the Internal Revenue Code; and
"prekindergarten educational program" has the meaning given in
section 290.0674, subdivision 1. The
maximum amounts allowed for each qualifying child under this clause must be
adjusted for inflation. The commissioner
shall adjust the maximum amount by the percentage determined under the
provisions of section 1(f) of the Internal Revenue Code, except that in section
1(f)(3)(B) the word "2014" is substituted for the word "1992."
For 2016, the commissioner shall then
determine the percent change from the 12 months ending on August 31, 2014, to
the 12 months ending on August 31, 2015, and in each subsequent year, from the
12 months ending August 31, 2014, to the 12 months ending on August 31 of the
year preceding the taxable year. The
amounts as adjusted for inflation must be rounded to the nearest $10 amount. If the amount ends in $5, the amount is
rounded up to the nearest $10 amount. The
determination of the commissioner under this subdivision is not a rule subject
to the Administrative Procedure Act in chapter 14, including section 14.386;
(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, 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, and "active service" 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 the
section 179 expensing subtraction as provided under section 290.0803,
subdivision 3;
(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 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;
(20) the amount of the phaseout of personal
exemptions under section 151(d) of the Internal Revenue Code; and
(21) to the extent included in federal taxable income, the amount of qualified transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal Revenue Code. The subtraction is limited to the lesser of the amount of qualified transportation fringe benefits received in excess of the limitations under section 132(f)(2)(A)
of
the Internal Revenue Code for the year or the difference between the maximum
qualified parking benefits excludable under section 132(f)(2)(B) of the
Internal Revenue Code minus the amount of transit benefits excludable under
section 132(f)(2)(A) of the Internal Revenue Code.;
(22) to the extent included in federal
taxable income, an amount not to exceed $40 per employee per calendar month,
provided that:
(i) for an individual, the subtraction
equals the value of the use of an on-premises fitness facility provided by an
employer to the individual, or the value of any fees, dues, or membership
expenses paid by an employer on behalf of the individual to a fitness facility;
(ii) for an S corporation, sole
proprietor, or partnership, the subtraction equals the value of any fees, dues,
or membership expenses paid on behalf of its employees to a fitness facility;
(iii) the subtraction under this clause
applies only if the use of on-premises fitness facilities or the payment of
fees, dues, or membership expenses to a fitness facility are available on
substantially the same terms to each member of a group of employees defined
under a reasonable classification by the employer, but no classification may
include only highly compensated employees, as defined under section 414(q) of
the Internal Revenue Code, or any other group that includes only executives,
directors, or other managerial employees;
(iv) the subtraction under this clause
is only allowed to employers and employees for months in which the employee
uses the fitness facility for the preservation, maintenance, encouragement, or
development of physical fitness on at least eight days; and
(v) for purposes of this clause,
"fitness facility" means a facility located in the state:
(A) that provides instruction in a
program of physical exercise; offers facilities for the preservation,
maintenance, encouragement, or development of physical fitness; or is the site
of such a program of a state or local government;
(B) that is not a private club owned and
operated by its members;
(C) that does not offer golf, hunting,
sailing, or horseback riding facilities;
(D) whose fitness facility is not
incidental to its overall function and purpose; and
(E)
that is compliant with antidiscrimination laws under chapter 363A and
applicable federal antidiscrimination laws;
(23) to the extent not deducted in
computing federal taxable income, the value of charity health care services
provided by a medical professional as defined under section 289A.12,
subdivision 19, paragraph (b), clause (3), 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 for services for which a
federal Medicaid match is available;
(24) for an individual who does not claim the credit under section 290.0677, subdivision 1a, and receives compensation 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, $1,000 for each year or portion of a year of military service, up to a maximum of 20 years of military service and a maximum subtraction of $20,000. In the case of a married couple filing jointly, each spouse is eligible for this subtraction. The subtraction under this clause is not limited to the amount of compensation received from a pension or other retirement pay;
(25) to the extent included in federal taxable income, a percentage of Social Security benefits. For purposes of this clause, for the taxable year beginning after December 31, 2014, and before January 1, 2016, the percentage is 25 percent, and the percentage increases by 25 percentage points in each taxable year thereafter until the percentage of Social Security benefits allowed as a subtraction under this clause is 100 percent;
(26) the amount equal to the
contributions made during the taxable year to a college savings plan account
qualifying under section 529 of the Internal Revenue Code, not including
amounts rolled over from other college savings plan accounts, and not to exceed
$3,000 for married couples filing joint returns and $1,500 for all other filers. The subtraction must not include any amount
used to claim the credit allowed under section 290.0684;
(27) to the extent not deducted in
determining federal taxable income, an amount equal to contributions made to
the Minnesota long-term care savings plan under section 16A.728, up to a
maximum of $2,000 for married individuals filing joint returns and $1,000 for
any other individual, and any investment earnings made as a participant in the
Minnesota long-term care savings plan; and
(28) for an individual who is a first
responder, an amount equal to the sum of:
(i) $7.50 per day of deemed meal expenses
for two days in each week during the taxable year that the eligible individual
was on call for fewer than 21 hours; plus
(ii) $7.50 per day of deemed meal
expenses for four days in each week during the taxable year that the eligible
individual was on call for 21 or more hours.
For purposes of this clause, "first responder" means an individual who meets the definition of:
(A) ambulance service personnel in
section 144E.001, subdivision 3a;
(B) an emergency medical responder in section 144E.001, subdivision 6;
(C) a volunteer ambulance attendant in section 144E.001, subdivision 15;
(D) a full-time firefighter in section
299N.03, subdivision 5; or
(E) a volunteer firefighter in section
299N.03, subdivision 7.
For the purposes of this clause, "on call" means
required to respond to requests for emergency medical services or fire help
within the geographic area served by the ambulance service or fire department
of which the first responder is an employee or volunteer.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014, except that
clause (23) is effective for taxable years beginning after December 31, 2015.
Sec. 11. Minnesota Statutes 2014, section 290.01, subdivision 19d, is amended to read:
Subd. 19d. Corporations; modifications decreasing federal taxable income. For corporations, there shall be subtracted from federal taxable income after the increases provided in subdivision 19c:
(1) the amount of foreign dividend gross-up added to gross income for federal income tax purposes under section 78 of the Internal Revenue Code;
(2) the amount of salary expense not allowed for federal income tax purposes due to claiming the work opportunity credit under section 51 of the Internal Revenue Code;
(3) any dividend (not including any distribution in liquidation) paid within the taxable year by a national or state bank to the United States, or to any instrumentality of the United States exempt from federal income taxes, on the preferred stock of the bank owned by the United States or the instrumentality;
(4) the deduction for capital losses pursuant to sections 1211 and 1212 of the Internal Revenue Code, except that:
(i) for capital losses incurred in taxable years beginning after December 31, 1986, capital loss carrybacks shall not be allowed;
(ii) for capital losses incurred in taxable years beginning after December 31, 1986, a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be allowed;
(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a capital loss carryback to each of the three taxable years preceding the loss year, subject to the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and
(iv) for capital losses incurred in taxable years beginning before January 1, 1987, a capital loss carryover to each of the five taxable years succeeding the loss year to the extent such loss was not used in a prior taxable year and subject to the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed;
(5) an amount for interest and expenses relating to income not taxable for federal income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or 291 of the Internal Revenue Code in computing federal taxable income;
(6) in the case of mines, oil and gas wells, other natural deposits, and timber for which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a reasonable allowance for depletion based on actual cost. In the case of leases the deduction must be apportioned between the lessor and lessee in accordance with rules prescribed by the commissioner. In the case of property held in trust, the allowable deduction must be apportioned between the income beneficiaries and the trustee in accordance with the pertinent provisions of the trust, or if there is no provision in the instrument, on the basis of the trust's income allocable to each;
(7) for certified pollution control facilities placed in service in a taxable year beginning before December 31, 1986, and for which amortization deductions were elected under section 169 of the Internal Revenue Code of 1954, as amended through December 31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09, subdivision 7;
(8) amounts included in federal taxable income that are due to refunds of income, excise, or franchise taxes based on net income or related minimum taxes paid by the corporation to Minnesota, another state, a political subdivision of another state, the District of Columbia, or a foreign country or possession of the United States to the extent that the taxes were added to federal taxable income under subdivision 19c, clause (1), in a prior taxable year;
(9) income or gains from the business of mining as defined in section 290.05, subdivision 1, clause (a), that are not subject to Minnesota franchise tax;
(10) the amount of disability access expenditures in the taxable year which are not allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
(11) the amount of qualified research expenses not allowed for federal income tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that the amount exceeds the amount of the credit allowed under section 290.068;
(12) the amount of salary expenses not allowed for federal income tax purposes due to claiming the Indian employment credit under section 45A(a) of the Internal Revenue Code;
(13) any decrease in subpart F income, as defined in section 952(a) of the Internal Revenue Code, for the taxable year when subpart F income is calculated without regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
(14) in each of the five tax years immediately following the tax year in which an addition is required under subdivision 19c, clause (12), an amount equal to one-fifth of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount of the addition made by the taxpayer under subdivision 19c, clause (12). The resulting delayed depreciation cannot be less than zero;
(15) in each of the five tax years
immediately following the tax year in which an addition is required under
subdivision 19c, clause (13), an amount equal to one-fifth of the amount of the
addition the section 179 expensing subtraction as provided under section
290.0803, subdivision 3;
(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 subdivision 19c,
clause (16); and
(17) 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.; and
(18) to the extent included in federal
taxable income, an amount equal to any fees, dues, or membership expenses paid
by an employer on behalf of each employee to a fitness facility, as defined in
subdivision 19b, clause (22), item (v), provided that:
(i) the subtraction under this clause
shall not exceed $40 per employee per calendar month;
(ii) the subtraction under this clause
is only allowed to employers for months in which the employee uses the fitness
facility for the preservation, maintenance, encouragement, or development of
physical fitness on at least eight days; and
(iii) the subtraction under this clause
applies only if the payment of fees, dues, or membership expenses to a fitness
facility are available on substantially the same terms to each member of a
group of employees defined under a reasonable classification by the employer,
but no classification may include only highly compensated employees, as defined
under section 414(q) of the Internal Revenue Code, or any other group that includes
only executives, directors, or other managerial employees.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 12. Minnesota Statutes 2014, section 290.01, subdivision 29, is amended to read:
Subd. 29. Taxable income. The term "taxable income" means:
(1) for individuals, estates, and trusts, the same as taxable net income;
(2) for corporations, the taxable net income less
(i) the net operating loss deduction under section 290.095, excluding any amount surrendered under section 116J.8739;
(ii) the dividends received deduction under section 290.21, subdivision 4; and
(iii) the exemption for operating in a job opportunity building zone under section 469.317.
EFFECTIVE
DATE. This section is effective
for taxable years beginning after December 31, 2015.
Sec. 13. Minnesota Statutes 2014, section 290.01, subdivision 31, as amended by Laws 2015, chapter 1, section 3, 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 31, 2014 April 1, 2015. 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 the changes were
effective for federal purposes.
Sec. 14. [290.016]
CONTINGENT FEDERAL CONFORMITY; TAX YEARS 2015 AND 2016.
Subdivision 1. Legislative
purpose. (a) The legislature
intends this section to provide a mechanism for conforming the Minnesota
individual income and corporate franchise taxes to federal tax legislation that
Congress regularly passes after the legislature has adjourned and that affect a
taxable year that ends before the legislature reconvenes in a regular
legislative session. In recent years,
Congress has repeatedly passed tax laws late in the year, often in November or
December, that affect computation of the tax for that taxable year. Many of these changes affect computation of
Minnesota tax through its linkage to federal taxable income or other provisions
of federal law. The federal changes
consist mainly of extending provisions that reduce revenues and that are
scheduled to expire so that Congress can create the appearance that it is not
permanently reducing the federal budget in enacting these provisions. Because the legislature does not reconvene in
regular legislative session until January, at the earliest under the Minnesota
Constitution, after the end of the taxable year and because Minnesota law is
linked to federal law as it exists on a specific date, taxpayers and the
Department of Revenue must assume that Minnesota law does not include the
effect of these federal extenders, even though the legislature regularly adopts
most of the federal provisions retroactively in the next legislative session. This situation affects the ability to
determine how to comply with and administer Minnesota income tax law, causing
delay, uncertainty, and added costs for all concerned and making it difficult
for taxpayers to do routine tax planning.
(b) The purpose of this section is to
provide clear notice to the taxpayers, software providers, tax preparers, and
the Department of Revenue as to how Minnesota law will treat these federal
extender provisions when congress adopts them.
The mechanism is intended to allow for timely preparation of forms,
modification of software, and a prompt and smooth start to the Minnesota tax
filing season as the congressional action will allow, given that the
legislature may not be in session until after the start of the filing season. Absent this or a similar mechanism, taxpayers
and the Department of Revenue will be unable to determine how to compute their
tax liability until the legislature can convene and pass a new law, which it
may not be practical to do until well after the tax filing season has begun. This is especially true in 2016 when reconstruction
of the Capitol may delay the reconvening of the legislature. The legislature's intent, as expressed in the
substantive provisions of this section, is to conform to the
federal
extenders, including minor modifications of them, in order to make Minnesota
tax law easier to comply with and administer.
The legislature also recognizes that the primary effect of this
situation is to reduce taxes and is allocating
a specific dollar amount that will be used for tax reductions without regard to
the action that Congress takes.
(c) By expressing its clear intent
regarding specific federal provisions and providing guidance as to how to treat
the federal extender provisions, the legislature is exercising its legislative
power and is not unconstitutionally delegating to Congress or the commissioner
of revenue the authority to determine Minnesota tax law. The legislature
believes that this section is consistent with the Minnesota Supreme Court's
ruling in the case of Wallace v. Commissioner of Taxation, 289 Minn. 220 (1971).
Subd. 2. Contingent
federal conformity account established; transfer. (a) A contingent federal conformity
account is established in the general fund.
Money in the account is available for transfer to the general fund to
offset the reduction in general fund revenues resulting from conforming
Minnesota tax law to federal law under this section, if congress enacts a law
that extends an eligible federal tax preference to apply to a taxable year
beginning after December 31, 2014, and before January 1, 2017.
(b) $105,000,000 is transferred from
the general fund to the contingent federal conformity account, effective July
1, 2015. Of this amount, $68,000,000 is
set aside to offset the revenue loss from conforming to eligible federal
preferences for taxable years beginning during calendar year 2015 and
$37,000,000 for taxable years beginning during calendar year 2016. Any amount allocated for 2015 that is not
used is carried over to 2016.
(c) Any amounts not used under
paragraph (b) must be used to increase the additional personal and dependent
exemption provided in this article. To
carry out this requirement, the commissioner shall, for taxable years beginning
during 2017, increase the factor used to multiply federal personal exemptions
to determine the additional personal and dependent exemption amount from
one-quarter to the percentage rate, rounded to the nearest percentage point,
sufficient to eliminate any remaining amounts in the contingent federal
conformity account. The resulting increase
in the additional exemption percentage is a onetime adjustment.
Subd. 3. Eligible
federal tax preferences. For
purposes of this section and section 290.01, the term "eligible federal
tax preferences" means any of the following items that are not in effect
under the Internal Revenue Code for either the taxable years beginning during
calendar year 2015 or 2016:
(1) discharge of qualified principal
residence indebtedness under subparagraph (E), section 108(a)(1), of the
Internal Revenue Code;
(2) qualified tuition and related
expenses under section 222 of the Internal Revenue Code;
(3) expenses of elementary and
secondary school teachers under subparagraph (D), section 62(a)(2), of the
Internal Revenue Code;
(4) mortgage insurance premiums treated
as qualified residence interest under subparagraph (E), section 163(h)(3), of
the Internal Revenue Code;
(5) the special rule for contributions
of capital gain real property made for conservation purposes under sections
170(b)(1)(E) and 170(b)(2)(B) of the Internal Revenue Code;
(6) tax-free distributions from
individual retirement accounts for charitable purposes under section 408(d)(8)
of the Internal Revenue Code;
(7) classification of certain race
horses as 3-year property under clauses (i) and (ii) of section 168(e)(3)(A) of
the Internal Revenue Code;
(8)
15-year straight-line cost recovery for qualified leasehold improvements,
qualified restaurant buildings and improvements, and qualified retail
improvements under clauses (iv), (v), and (ix) of section 168(e)(3)(E) of the
Internal Revenue Code;
(9) 7-year recovery period for
motorsports entertainment complexes under section 168(i)(15) of the Internal
Revenue Code;
(10) accelerated depreciation for
business property on an Indian reservation under section 168(j) of the Internal
Revenue Code;
(11)
enhanced deduction for contributions of food inventory under section
170(e)(3)(C) of the Internal Revenue Code;
(12) election to expense mine safety
equipment under section 179E of the Internal Revenue Code;
(13) special expensing rules for
certain film and television productions under section 181 of the Internal
Revenue Code;
(14) modification of tax treatment of
certain payments to controlling exempt organizations under subparagraph (E),
section 512(b)(13), of the Internal Revenue Code;
(15) treatment of certain dividends of
regulated investment companies under section 871(k) of the Internal Revenue
Code;
(16) subpart F exception for active
financing income under section 953(e) of the Internal Revenue Code;
(17) temporary exclusion of 100 percent
of gain on certain small business stock under section 1202(a) of the Internal
Revenue Code;
(18) basis adjustment of stock of S corporations
making charitable contributions of property under section 1367(a) of the
Internal Revenue Code;
(19) reduction in S corporation recognition period for built-in gains tax under section 1374(d)(7) of the Internal Revenue Code;
(20)
special allowance for second-generation biofuel plant property under section
168(l) of the Internal Revenue Code;
(21) energy efficient commercial
buildings deduction under section 179D of the Internal Revenue Code; and
(22) the $500,000 and $2,000,000
limitations under section 179 of the Internal Revenue Code.
Subd. 4. Designation of qualifying federal conformity items. (a) If following final adjournment of the 2015 Minnesota legislature or final adjournment of the 2016 Minnesota legislature, congress enacts a law that extends one or more of the eligible federal tax preferences respectively to taxable years beginning during calendar year 2015 or to taxable years beginning during calendar year 2016, the commissioner shall prepare a list of qualifying federal conformity items and publish it on the Department of Revenue's Web site within 30 days following enactment of the law. In preparing the list, the commissioner shall estimate the reduction in revenue resulting from allowing the eligible federal tax preferences, including the effect of subdivision 8, for the current and succeeding fiscal year only. The commissioner shall not include an item on the list of qualifying federal conformity items if its inclusion would cause the estimated total reduction in general fund revenues to exceed the amount available in the contingent federal conformity account for transfer to the general fund for the taxable year.
(b)
In determining whether there are sufficient funds in the account, the
commissioner shall consider the provisions of subdivision 8 as the first item
to include on the list of qualifying conformity items, and shall consider the
$500,000 and $2,000,000 limits under section 179 of the Internal Revenue Code
as the last item to include on the list of qualifying conformity items. If there are insufficient funds in the
account to offset full conformity to section 179 deductions in the taxable year
the expense is allowed for federal purposes, then the provisions of section
290.01, subdivisions 19a, clause (8); 19b, clause (13); 19c, clause (13); and
19d, clause (15), apply to determine the appropriate taxable year in which the
section 179 expenses are allowed. If
there are insufficient funds in the account to offset full conformity for all
of the eligible federal tax preferences other than section 179, the
commissioner shall apply the following priorities in determining which items to
include:
(1) the effect of all the eligible
federal tax preferences on computation of federal adjusted gross income and
household income under chapter 290A is the first priority;
(2) the items in subdivision 3, clauses
(6) to (21), in that order, are the second priority;
(3) the items in subdivision 3, clauses
(1) to (5), in that order, are the third priority; and
(4) the effect of the federal law on
computation of Minnesota tax credits is the last priority.
(c) In determining whether to include
an eligible federal tax preference on the list of qualifying federal conformity
items, the commissioner may include items in which nonmaterial changes were
made in the federal law extending allowance of the eligible federal tax
preferences, as compared to the provision that was in effect for the prior
federal taxable year. For purposes of
this determination, nonmaterial changes are limited to changes that are
estimated to increase or decrease Minnesota tax revenues by no more than
$1,000,000 for the affected eligible federal tax preference item.
Subd. 5. Provisions
in effect. (a) For purposes
of determining tax and credits under this chapter, including the taxes under
sections 290.091 and 290.0921, and household income under chapter 290A,
qualifying federal conformity items and bonus depreciation rules under
subdivision 8 apply for the relevant taxable year and all the provisions of
this chapter apply as if the definition of the Internal Revenue Code under
section 290.01, subdivision 31, included the amendments to the qualifying
federal conformity items.
(b) The commissioner shall administer
the taxes under this chapter and refunds under chapter 290A as if Minnesota had
conformed to the federal definitions of net income, adjusted gross income, and
tax credits that affect computation of Minnesota taxes or refunds resulting
from extension of the qualifying federal conformity items.
Subd. 6. Forms
preparation. The commissioner
shall prepare forms and instructions that reflect the qualifying federal
conformity items and bonus depreciation rules under subdivision 8, if
applicable, for taxable years 2015 and 2016 consistent with the provisions of
this section.
Subd. 7. Transfer
to general fund. By the first
February 15 following publication of a list of qualifying federal conformity
items, the commissioner of revenue shall transfer from the contingent federal
conformity account an amount sufficient to offset the estimated reduction in
general fund revenues resulting from allowing the eligible federal tax
preferences on the list.
Subd. 8. Bonus
depreciation; 80 percent rule applies.
If following final adjournment of the 2015 Minnesota legislature
or final adjournment of the 2016 Minnesota legislature Congress enacts a law
that extends application of the depreciation special allowances under section
168(k) of the Internal Revenue Code to taxable years beginning either during
calendar year 2015 or 2016, the rules under section 290.01, subdivisions 19a,
clause (7); 19b, clause (8); 19c, clause (12); and 19d, clause (14), apply to
determine the amount of the special allowance of depreciation that applies to
the relevant taxable years.
Subd. 9. Appropriations. Amounts sufficient to make the
transfers required under subdivisions 2 and 7 are appropriated to the
commissioner from the general fund or the contingent federal conformity account
in the general fund, as appropriate.
Subd. 10. Draft
legislation. For each taxable
year for which the commissioner publishes a list of qualifying federal
conformity items under this section, the commissioner shall provide the chairs
and ranking minority members of the house of representatives and senate
committees with jurisdiction over taxes with draft legislation that would
conform this chapter to the qualifying federal conformity items and any other
conformity items that the commissioner recommends be adopted. The draft legislation is intended to make the
statutes consistent with application of the designated qualifying federal
conformity items under this section for the convenience of members of the
public. Failure to pass the draft
legislation does not affect computation of Minnesota tax liability for the
affected taxable years under this section.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
Sec. 15. Minnesota Statutes 2014, section 290.06, is amended by adding a subdivision to read:
Subd. 37. Refund;
technology corporate tax benefits certificate; appropriation. (a) A corporation is allowed a refund
equal to the amount of the qualifying tax benefits certified to the corporation
for the taxable year by the commissioner of employment and economic development
under section 116J.8739.
(b) An amount sufficient to pay the
refunds under this subdivision is appropriated to the commissioner from the
general fund.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 16. Minnesota Statutes 2014, section 290.06, is amended by adding a subdivision to read:
Subd. 38. Credit
for unemployment benefits. (a)
A resident individual who was laid off and receives unemployment benefits as a
result of lack of work at a facility engaged directly in extraction or
processing of iron ore in Itasca County, Lake County, or St. Louis County
between March 1, 2015, and December 31, 2015, is entitled to a credit against
the tax imposed under this chapter equal to 25 percent of the unemployment
benefits paid.
(b) If the amount of credit exceeds the
individual's tax liability under this chapter, the commissioner shall refund
the excess to the claimant.
(c) An amount sufficient to pay the
refunds required by this section is appropriated to the commissioner from the
general fund.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 17. Minnesota Statutes 2014, section 290.067, subdivision 1, is amended to read:
Subdivision 1. Amount
of credit. (a) A taxpayer may take
as a credit against the tax due from the taxpayer and a spouse, if any, imposed
under this chapter an amount equal to the sum of dependent care credit
for which the taxpayer is eligible pursuant to the provisions of section 21 of
the Internal Revenue Code subject to the limitations provided in subdivision 2
except that credits calculated under paragraphs (b), (d), and (e). In determining whether the child qualified
as a dependent expenses were paid to care for a qualifying individual,
income received as a Minnesota family investment program grant or allowance to
or on behalf of the child individual must not be taken into
account in determining whether the child individual received more
than half of the child's individual's support from the taxpayer,
and the provisions of section 32(b)(1)(D) of the Internal Revenue Code do not
apply.
(b)
A taxpayer who incurs actual employment-related expenses may take as a credit
against the tax imposed under this chapter an amount equal to the dependent
care credit for which the taxpayer is eligible pursuant to the provisions of section
21 of the Internal Revenue Code.
(c) A taxpayer who elects to claim a
credit under paragraph (d) or (e) may claim a credit under paragraph (b) only
for employment-related expenses paid to care for qualifying individuals other
than the child for whom deemed expenses were used to claim the credit under
paragraph (d) or (e).
(b) If a child who has not attained the
age of six years at the close of the taxable year is cared for at a licensed
family day care home operated by the child's parent, the taxpayer is deemed to
have paid employment-related expenses.
(d) In lieu of the credit under paragraph (b), a taxpayer who
operates a licensed family day care home may elect to claim as a credit against
the tax imposed under this chapter an amount equal to the dependent care credit
for which the taxpayer is eligible pursuant to the provisions of section 21 of
the Internal Revenue Code calculated using deemed expenses rather than actual
employment-related expenses paid. If
the child is 16 months old or younger at the close of the taxable year, the
amount of deemed expenses deemed to have been paid equals are
equal to the maximum limit amount of employment-related expenses
incurred during the taxable year that may be taken into account for one qualified
qualifying individual under section 21(c) and (d) of the Internal
Revenue Code. If the child is older than
16 months of age but has not attained the age of six years at the close of the
taxable year, the amount of deemed expenses deemed to have
been paid equals are equal to the amount the licensee would charge
for the care of a child of the same age for the same number of hours of care. If the child has attained the age of six
at the close of the taxable year, deemed expenses are zero.
(c) If (e) In lieu of the credit
under paragraph (b), a married couple may elect to claim a credit
against the tax imposed under this chapter as computed under paragraph (f), if
the married couple:
(1) has a child who has not attained the age of one year at the close of the taxable year;
(2) files a joint tax return for the taxable
year; and
(3) does not participate in a dependent care
assistance program as defined in section 129 of the Internal Revenue Code,
in lieu of the actual employment related expenses paid for that child under
paragraph (a) or the deemed amount under paragraph (b), the lesser of (i) the
combined earned income of the couple or (ii) the amount of the maximum limit
for one qualified individual under section 21(c) and (d) of the Internal
Revenue Code will be deemed to be the employment related expense paid for that
child. The earned income limitation of
section 21(d) of the Internal Revenue Code shall not apply to this deemed
amount. These deemed amounts apply
regardless of whether any employment-related expenses have been paid.;
and
(4) does not operate a licensed family
day care center home.
(f) A married couple meeting the
requirements of paragraph (e) is allowed a credit against the tax imposed under
this chapter equal to the dependent care for which the couple is eligible
pursuant to section 21 of the Internal Revenue Code calculated using deemed
expenses rather than actual employment-related expenses paid. For purposes of this paragraph, deemed
expenses are the lesser of (i) the combined earned income of the couple or (ii)
the maximum amount of employment-related expenses incurred during the taxable
year that may be taken into account for one qualifying individual under section
21(c) and (d) of the Internal Revenue Code or for two qualifying individuals for
a taxpayer with two children who have not attained the age of one. The earned income limitation of section 21(d)
of the Internal Revenue Code does not apply to this deemed amount. These deemed amounts apply regardless of
whether any employment-related expenses have been paid.
(d) (g) If the taxpayer is not required and does not file a federal individual income tax return for the tax year, or if the taxpayer does file a federal return but does not claim a federal dependent care credit, no credit is allowed for any amount paid to any person unless:
(1) the name, address, and taxpayer identification number of the person are included on the return claiming the credit; or
(2) if the person is an organization described in section 501(c)(3) of the Internal Revenue Code and exempt from tax under section 501(a) of the Internal Revenue Code, the name and address of the person are included on the return claiming the credit.
In the case of a failure to provide the information required under the preceding sentence, the preceding sentence does not apply if it is shown that the taxpayer exercised due diligence in attempting to provide the information required.
(e) (h) In the case of a
nonresident, part-year resident, or a person who has earned income not subject
to tax under this chapter including earned income excluded pursuant to section
290.01, subdivision 19b, clause (9), the credit determined under this
section 21 of the Internal Revenue Code must be allocated based on the
ratio by which the earned income of the claimant and the claimant's spouse from
Minnesota sources bears to the total earned income of the claimant and the
claimant's spouse.
(f) (i) For residents of
Minnesota, the subtractions for military pay under section 290.01, subdivision
19b, clauses (10) and (11), are not considered "earned income not subject
to tax under this chapter."
(g) (j) For residents of
Minnesota, the exclusion of combat pay under section 112 of the Internal
Revenue Code is not considered "earned income not subject to tax under
this chapter."
(k) For the purposes of this section, the
terms "qualifying individual" and "employment-related
expenses" have the meanings given in section 21 of the Internal Revenue
Code.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 18. Minnesota Statutes 2014, section 290.067, subdivision 2, is amended to read:
Subd. 2. Limitations. The credit for expenses incurred for
the care of each dependent shall not exceed $720 in any taxable year, and the
total credit for all dependents of a claimant shall not exceed $1,440 in a
taxable year. The maximum total credit
shall be reduced according to the amount of the income of the claimant and a
spouse, if any, as follows:
income up to $18,040, $720 maximum for
one dependent, $1,440 for all dependents;
income over $18,040, the maximum credit
for one dependent shall be reduced by $18 for every $350 of additional income,
$36 for all dependents.
The commissioner shall construct and make
available to taxpayers tables showing the amount of the credit at various
levels of income and expenses. The
tables shall follow the schedule contained in this subdivision, except that the
commissioner may graduate the transitions between expenses and income brackets.
(a) The maximum credit under subdivision
1, paragraph (b), is:
(1) $1,050 for a taxpayer with
employment-related expenses for one qualifying individual;
(2)
$2,100 for a taxpayer with employment-related expenses for two or more
qualifying individuals;
(3) $1,050 for a taxpayer who elects to
claim a credit under subdivision 1, paragraph (d) or (e), if that credit is
based on deemed expenses for one child; and
(4) $0 for a taxpayer who elects to claim
a credit under subdivision 1, paragraph (d) or (e), if that credit is based on
deemed expenses for two or more children.
(b) The maximum credit under subdivision
1, paragraphs (d) and (e), is:
(1) $720 for a taxpayer with deemed
expenses for one child; and
(2) $1,440 for a taxpayer with deemed
expenses for two or more children.
(c) For a taxpayer who claims a credit
under subdivision 1, paragraph (b), who has federal adjusted gross income as
defined in the Internal Revenue Code in excess of $100,000, the credit under
subdivision 1, paragraph (b), is equal to the lesser of:
(1) the credit calculated under
subdivision 1, paragraph (b); or
(2) $600 minus five percent of federal
adjusted gross income in excess of $100,000 for a taxpayer with one qualifying
individual, or $1,200 minus five percent of federal gross adjusted income in
excess of $100,000 for a taxpayer with two or more qualifying individuals, but
in no case is the credit less than zero.
(d) For a taxpayer who elects to claim
the credit under subdivision 1, paragraph (d) or (e), with federal adjusted
gross income as defined in the Internal Revenue Code in excess of $25,000, the
credit is equal to the lesser of:
(1) the credit calculated under subdivision
1, paragraph (d) or (e); or
(2) $720 minus five percent of federal
adjusted gross income in excess of $25,000 for a taxpayer with one qualifying
individual, or $1,440 minus five percent of federal gross adjusted income in
excess of $25,000 for a taxpayer with two or more qualifying individuals, but
in no case is the credit less than zero.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 19. Minnesota Statutes 2014, section 290.067, subdivision 2b, is amended to read:
Subd. 2b. Inflation
adjustment. The commissioner shall
adjust the dollar amount of the income threshold at which the maximum
credit begins to be reduced under subdivision 2 by the percentage determined
pursuant to the provisions of section 1(f) of the Internal Revenue Code, except
that in section 1(f)(3)(B) the word "1999" "2014"
shall be substituted for the word "1992." For 2001 2016, the commissioner
shall then determine the percent change from the 12 months ending on August 31,
1999 2014, to the 12 months ending on August 31, 2000 2015,
and in each subsequent year, from the 12 months ending on August 31, 1999
2014, to the 12 months ending on August 31 of the year preceding the
taxable year. The determination of the
commissioner pursuant to this subdivision must not be considered a
"rule" and is not subject to the Administrative Procedure Act
contained in chapter 14. The threshold
amount as adjusted must be rounded to the nearest $10 amount. If the amount ends in $5, the amount is
rounded up to the nearest $10 amount.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 20. Minnesota Statutes 2014, section 290.067, subdivision 3, is amended to read:
Subd. 3.
Credit to be refundable. If the amount of credit which a claimant
would be eligible to receive pursuant to this subdivision section
exceeds the claimant's tax liability under chapter 290, the excess amount of
the credit shall be refunded to the claimant by the commissioner of revenue.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 21. Minnesota Statutes 2014, section 290.0671, subdivision 1, is amended to read:
Subdivision 1. Credit allowed. (a) An individual who is a resident of Minnesota is allowed a credit against the tax imposed by this chapter equal to a percentage of earned income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the Internal Revenue Code except that a taxpayer is eligible for this credit even if the taxpayer's earned income or adjusted gross income exceeds the amount for which a credit is available under the additional personal and dependent exemption provided in this article.
(b) For individuals with no qualifying
children, the credit equals 2.10 2.64 percent of the first $6,180
$5,000 of earned income. The
credit is reduced by 2.01 2.64 percent of earned income or
adjusted gross income, whichever is greater, in excess of $8,130 $9,830,
but in no case is the credit less than zero.
(c) For individuals with one qualifying
child, the credit equals 9.35 12.66 percent of the first $11,120
$8,350 of earned income. The
credit is reduced by 6.02 4.60 percent of earned income or
adjusted gross income, whichever is greater, in excess of $21,190 $21,520,
but in no case is the credit less than zero.
(d) For individuals with two or more
qualifying children, the credit equals 11 14.88 percent of the
first $18,240 $13,700 of earned income. The credit is reduced by 10.82 8.51
percent of earned income or adjusted gross income, whichever is greater, in
excess of $25,130 $25,530, but in no case is the credit less than
zero.
(e) For a nonresident or part-year resident, the credit must be allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph (e).
(f) For a person who was a resident for the entire tax year and has earned income not subject to tax under this chapter, including income excluded under section 290.01, subdivision 19b, clause (9), the credit must be allocated based on the ratio of federal adjusted gross income reduced by the earned income not subject to tax under this chapter over federal adjusted gross income. For purposes of this paragraph, the subtractions for military pay under section 290.01, subdivision 19b, clauses (10) and (11), are not considered "earned income not subject to tax under this chapter."
For the purposes of this paragraph, the exclusion of combat pay under section 112 of the Internal Revenue Code is not considered "earned income not subject to tax under this chapter."
(g) For tax years beginning after December
31, 2007, and before December 31, 2010, and for tax years beginning after
December 31, 2017, the $8,130 in paragraph (b), the $21,190 in paragraph (c),
and the $25,130 in paragraph (d), after being adjusted for inflation under
subdivision 7, are each increased by $3,000 for married taxpayers filing joint
returns. For tax years beginning after
December 31, 2008, the commissioner shall annually adjust the $3,000 by the
percentage determined pursuant to the provisions of section 1(f) of the
Internal Revenue Code, except that in section 1(f)(3)(B), the word
"2007" shall be substituted for the word "1992." For 2009, the commissioner shall then
determine the percent change from the 12 months ending on August 31, 2007, to
the 12 months ending on August 31, 2008, and in each subsequent year, from the
12 months ending on August 31, 2007, to the 12 months ending on August 31 of
the year preceding the taxable year. The
earned income thresholds as adjusted for inflation must be rounded to the
nearest $10. If the amount ends in $5,
the amount is rounded up to the nearest $10.
The determination of the commissioner under this subdivision is not a
rule under the Administrative Procedure Act.
(h)
(1) For tax years beginning after December 31, 2012, and before
January 1, 2014, the $5,770 $9,830 in paragraph (b), the $15,080
$21,520 in paragraph (c), and the $17,890 $25,530 in
paragraph (d), after being adjusted for inflation under subdivision 7, are
increased by $5,340 $5,520 for married taxpayers filing joint
returns; and (2) for tax years beginning after December 31, 2013, and before
January 1, 2018, the $8,130 in paragraph (b), the $21,190 in paragraph (c), and
the $25,130 in paragraph (d), after being adjusted for inflation under
subdivision 7, are each increased by $5,000 for married taxpayers filing joint
returns. For tax years beginning after
December 31, 2010, and before January 1, 2012, and. For tax years beginning after December 31, 2013,
and before January 1, 2018 2015, the commissioner shall annually
adjust the $5,000 $5,520 by the percentage determined pursuant to
the provisions of section 1(f) of the Internal Revenue Code, except that in
section 1(f)(3)(B), the word "2008" "2014" shall
be substituted for the word "1992." For 2011 2016, the commissioner
shall then determine the percent change from the 12 months ending on August 31,
2008 2014, to the 12 months ending on August 31, 2010 2015,
and in each subsequent year, from the 12 months ending on August 31, 2008
2014, to the 12 months ending on August 31 of the year preceding the
taxable year. The earned income
thresholds as adjusted for inflation must be rounded to the nearest $10. If the amount ends in $5, the amount is
rounded up to the nearest $10. The
determination of the commissioner under this subdivision is not a rule under
the Administrative Procedure Act.
(i) The commissioner shall construct tables showing the amount of the credit at various income levels and make them available to taxpayers. The tables shall follow the schedule contained in this subdivision, except that the commissioner may graduate the transition between income brackets.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 22. Minnesota Statutes 2014, section 290.0671, subdivision 6a, is amended to read:
Subd. 6a. TANF appropriation for working family credit expansion. (a) On an annual basis the commissioner of revenue, with the assistance of the commissioner of human services, shall calculate the value of the refundable portion of the Minnesota Working Family Credit provided under this section that qualifies for payment with funds from the federal Temporary Assistance for Needy Families (TANF) block grant. Of this total amount, the commissioner of revenue shall estimate the portion entailed by the expansion of the credit rates provided in Laws 2000, chapter 490, article 4, section 17, for individuals with qualifying children over the rates provided in Laws 1999, chapter 243, article 2, section 12.
(b) An amount sufficient to pay the refunds entailed by the expansion of the credit rates provided in Laws 2000, chapter 490, article 4, section 17, for individuals with qualifying children over the rates provided in Laws 1999, chapter 243, article 2, section 12, as estimated in paragraph (a), is appropriated to the commissioner of human services from the federal Temporary Assistance for Needy Families (TANF) block grant funds, for transfer to the commissioner of revenue for deposit in the general fund.
EFFECTIVE
DATE. This section is
effective retroactively for transfers in fiscal year 2015 and thereafter.
Sec. 23. Minnesota Statutes 2014, section 290.0671, subdivision 7, is amended to read:
Subd. 7. Inflation
adjustment. The earned income
amounts used to calculate the credit and the income thresholds at which the
maximum credit begins to be reduced in subdivision 1 must be adjusted for
inflation. The commissioner shall adjust
by the percentage determined pursuant to the provisions of section 1(f) of the
Internal Revenue Code, except that in section 1(f)(3)(B) the word "2013"
"2014" shall be substituted for the word "1992." For
2015 2016, the commissioner shall then determine the percent
change from the 12 months ending on August 31, 2013 2014, to the
12 months ending on August 31, 2014 2015, and in each subsequent
year, from the 12 months ending on August 31, 2013 2014, to the
12 months ending on August 31 of the year preceding the taxable year. The
earned income thresholds as adjusted for inflation must be rounded to the nearest $10 amount. If the amount ends in $5, the amount is rounded up to the nearest $10 amount. The determination of the commissioner under this subdivision is not a rule under the Administrative Procedure Act.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 24. Minnesota Statutes 2014, section 290.0672, subdivision 2, is amended to read:
Subd. 2. Credit. A taxpayer is allowed a credit against
the tax imposed by this chapter for long-term care insurance policy premiums
paid during the tax year. The credit for
each policy equals 25 50 percent of premiums paid to the extent
not deducted in determining federal taxable income. A taxpayer may claim a credit for only one
policy for each qualified beneficiary. A
maximum of $100 $150 applies to each qualified beneficiary. The maximum total credit allowed per year is $200
$300 for married couples filing joint returns and $100 $150
for all other filers. For a nonresident
or part-year resident, the credit determined under this section must be
allocated based on the percentage calculated under section 290.06, subdivision
2c, paragraph (e).
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 25. Minnesota Statutes 2014, section 290.0674, subdivision 1, is amended to read:
Subdivision 1. Credit allowed. An individual is allowed a credit against the tax imposed by this chapter in an amount equal to 75 percent of the amount paid for education-related expenses for a qualifying child in a prekindergarten educational program or in kindergarten through grade 12. For purposes of this section, "education‑related expenses" means:
(1) fees or tuition for instruction by an instructor under section 120A.22, subdivision 10, clause (1), (2), (3), (4), or (5), or a member of the Minnesota Music Teachers Association, and who is not a lineal ancestor or sibling of the dependent for instruction outside the regular school day or school year, including tutoring, driver's education offered as part of school curriculum, regardless of whether it is taken from a public or private entity or summer camps, in grade or age appropriate curricula that supplement curricula and instruction available during the regular school year, that assists a dependent to improve knowledge of core curriculum areas or to expand knowledge and skills under the required academic standards under section 120B.021, subdivision 1, and the elective standard under section 120B.022, subdivision 1, clause (2), and that do not include the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship;
(2) fees for enrollment in a
prekindergarten educational program to the extent not used to claim the credit
under section 290.067;
(2) (3) expenses for
textbooks, including 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. "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
extracurricular activities including sporting events, musical or dramatic
events, speech activities, driver's education, or similar programs;
(3) (4) a maximum expense of
$200 per family for personal computer hardware, excluding single purpose
processors, and educational software that assists a dependent to improve
knowledge of core curriculum areas or to expand knowledge and skills under the
required academic standards under section 120B.021, subdivision 1, and the
elective standard under section 120B.022, subdivision 1, clause (2), purchased
for use in the taxpayer's home and not used in a trade or business regardless
of whether the computer is required by the dependent's school; and
(4)
(5) the amount paid to others for transportation of a qualifying child
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. Amounts paid to others
for transportation do not include any expense the taxpayer incurred in using
the taxpayer's or the qualifying child's vehicle to provide transportation for
a qualifying child.
For
purposes of this section, "qualifying child" has the meaning given in
section 32(c)(3) of the Internal Revenue Code.
As used in this section,
"prekindergarten educational program" means:
(i) prekindergarten programs established
by a school district under chapter 124D;
(ii) preschools, nursery schools, and
early childhood development programs licensed by the Department of Human Services and eligible for the provider rate
differential for accreditation under section 119B.13, subdivision 3a;
(iii) Montessori programs affiliated with
or accredited by the American Montessori Society or American Montessori
International;
(iv) child care programs provided by
family day care providers holding a current early childhood development
credential approved by the commissioner of human services; and
(v) a prekindergarten program that
participates in the quality rating and improvement system under section
124D.142.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 26. Minnesota Statutes 2014, section 290.0674, subdivision 2, is amended to read:
Subd. 2. Limitations. (a) For claimants with income not greater
than $33,500 $47,500, the maximum credit allowed for a family is $1,000
$1,500 multiplied by the number of qualifying children in kindergarten
a prekindergarten educational program through grade 12 in the family. The maximum credit for families with one
qualifying child in kindergarten a prekindergarten educational program
through grade 12 is reduced by $1 for each $4 $6 of household
income over $33,500 $47,500, and the maximum credit for families
with two or more qualifying children in kindergarten a
prekindergarten educational program through grade 12 is reduced by $2
$1 for each $4 $3 of household income over $33,500 $47,500,
but in no case is the credit less than zero.
For purposes of this section
"income" has the meaning given in section 290.067, subdivision 2a. In the case of a married claimant, a credit
is not allowed unless a joint income tax return is filed.
(b) For a nonresident or part-year resident, the credit determined under subdivision 1 and the maximum credit amount in paragraph (a) must be allocated using the percentage calculated in section 290.06, subdivision 2c, paragraph (e).
(c) For purposes of this section,
"income" means the sum of the following:
(1) federal adjusted gross income as
defined in section 62 of the Internal Revenue Code; and
(2) the sum of the following amounts to
the extent not included in clause (1):
(i) all nontaxable income;
(ii)
the amount of a passive activity loss that is not disallowed as a result of
section 469, paragraph (i) or (m) of the Internal Revenue Code and the amount
of passive activity loss carryover allowed under section 469(b) of the Internal
Revenue Code;
(iii) an amount equal to the total of
any discharge of qualified farm indebtedness of a solvent individual excluded
from gross income under section 108(g) of the Internal Revenue Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including
railroad retirement benefits, all payments received under the federal Social
Security Act, Supplemental Security Income, and veterans benefits), which was
not exclusively funded by the claimant or spouse, or which was funded
exclusively by the claimant or spouse and which funding payments were excluded
from federal adjusted gross income in the years when the payments were made;
(vi) interest received from the federal
or a state government or any instrumentality or political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments
received in the nature of disability income or sick pay as a result of
accident, sickness, or other disability, whether funded through insurance or
otherwise;
(x) a lump-sum distribution under
section 402(e)(3) of the Internal Revenue Code of 1986, as amended through
December 31, 1995;
(xi) contributions made by the claimant
to an individual retirement account, including a qualified voluntary employee
contribution; simplified employee pension plan; self-employed retirement plan;
cash or deferred arrangement plan under section 401(k) of the Internal Revenue
Code; or deferred compensation plan under section 457 of the Internal Revenue
Code;
(xii) nontaxable scholarship or
fellowship grants;
(xiii) the amount of deduction allowed
under section 199 of the Internal Revenue Code;
(xiv) the amount of deduction allowed
under section 220 or 223 of the Internal Revenue Code;
(xv) the amount deducted for tuition
expenses under section 222 of the Internal Revenue Code; and
(xvi) the amount deducted for certain
expenses of elementary and secondary school teachers under section 62(a)(2)(D)
of the Internal Revenue Code.
In the case of an individual who files
an income tax return on a fiscal year basis, the term "federal adjusted
gross income" means federal adjusted gross income reflected in the fiscal
year ending in the next calendar year. Federal
adjusted gross income may not be reduced by the amount of a net operating loss
carryback or carryforward or a capital loss carryback or carryforward allowed
for the year.
(d) "Income" does not
include:
(1) amounts excluded pursuant to the
Internal Revenue Code, sections 101(a) and 102;
(2)
amounts of any pension or annuity that were exclusively funded by the claimant
or spouse if the funding payments were not excluded from federal adjusted gross
income in the years when the payments were made;
(3) surplus food or other relief in
kind supplied by a governmental agency;
(4) relief granted under chapter 290A;
(5) child support payments received
under a temporary or final decree of dissolution or legal separation; and
(6) restitution payments received by
eligible individuals and excludable interest as defined in section 803 of the
Economic Growth and Tax Relief Reconciliation Act of 2001, Public Law 107-16.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 27. Minnesota Statutes 2014, section 290.0674, is amended by adding a subdivision to read:
Subd. 6. Inflation
adjustment. The credit amount
and the income threshold at which the maximum credit begins to be reduced in subdivision
2 must be adjusted for inflation. The
commissioner shall adjust the credit amount and income threshold by the
percentage determined under the provisions of section 1(f) of the Internal
Revenue Code, except that in section 1(f)(3)(B) the word "2014" is
substituted for the word "1992." For 2016, the commissioner shall then
determine the percent change from the 12 months ending on August 31, 2014, to
the 12 months ending on August 31, 2015, and in each subsequent year, from the
12 months ending August 31, 2014, to the 12 months ending on August 31 of the
year preceding the taxable year. The
credit amount and income threshold, as adjusted for inflation, must be rounded
to the nearest $10 amount. If the amount
ends in $5, the amount is rounded up to the nearest $10 amount. The determination of the commissioner under
this subdivision is not a rule subject to the Administrative Procedure Act in
chapter 14, including section 14.386.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 28. Minnesota Statutes 2014, section 290.0677, subdivision 2, is amended to read:
Subd. 2. Definitions. (a) For purposes of this section, the following terms have the meanings given.
(b) "Designated area" means a:
(1) combat zone designated by Executive Order from the President of the United States;
(2) qualified hazardous duty area, designated in Public Law; or
(3) location certified by the U.S. Department of Defense as eligible for combat zone tax benefits due to the location's direct support of military operations.
(c) "Active military service" means active duty service in any of the United States armed forces, the National Guard, or reserves.
(d) "Qualified individual" means an individual who has:
(1) met one of the following criteria:
(i) has served at least 20 years in the military;
(ii) has a service-connected disability rating of 100 percent for a total and permanent disability; or
(iii) has been determined by the military to
be eligible for compensation 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 12733; and
(2) separated from military service before
the end of the taxable year; and
(3) has not claimed the subtraction under section 290.01, subdivision 19b, clause (24).
(e) "Adjusted gross income" has the meaning given in section 61 of the Internal Revenue Code.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 29. Minnesota Statutes 2014, section 290.068, subdivision 1, is amended to read:
Subdivision 1. Credit
allowed. Subject to the
requirements in subdivision 8, 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 four percent on all of
such excess expenses over $2,000,000.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 30. Minnesota Statutes 2014, section 290.068, subdivision 3, is amended to read:
Subd. 3. Limitation;
carryover. (a) Except as provided
in subdivision 6a, paragraph (b), the credit for a taxable year
beginning before January 1, 2010, and after December 31, 2012, shall not
exceed the liability for tax. "Liability
for tax" for purposes of this section means the sum of the tax imposed
under section 290.06, subdivisions 1 and 2c, for the taxable year reduced by
the sum of the nonrefundable credits allowed under this chapter, on all of the
entities required to be included on the combined report of the unitary business. If the amount of the credit allowed exceeds
the liability for tax of the taxpayer, but is allowed as a result of the
liability for tax of other members of the unitary group for the taxable year,
the taxpayer must allocate the excess as a research credit to another member of
the unitary group.
(b) In the case of a corporation which is a partner in a partnership, the credit allowed for the taxable year shall not exceed the lesser of the amount determined under paragraph (a) for the taxable year or an amount (separately computed with respect to the corporation's interest in the trade or business or entity) equal to the amount of tax attributable to that portion of taxable income which is allocable or apportionable to the corporation's interest in the trade or business or entity.
(c) If the amount of the credit determined under this section for any taxable year exceeds the limitation under paragraph (a) or (b), including amounts allowed as a refund under subdivision 6a, paragraph (b), or allocated to other members of the unitary group, the excess shall be a research credit carryover to each of the 15 succeeding taxable years. The entire amount of the excess unused credit for the taxable year shall be carried first to the earliest
of the taxable years to which the credit may be carried and then to each successive year to which the credit may be carried. The amount of the unused credit which may be added under this clause shall not exceed the taxpayer's liability for tax less the research credit for the taxable year.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 31. Minnesota Statutes 2014, section 290.068, subdivision 6a, is amended to read:
Subd. 6a. Credit
to be refundable. (a) If the
amount of credit allowed in this section for qualified research expenses
incurred in taxable years beginning after December 31, 2009, and before January
1, 2013, exceeds the taxpayer's tax liability for tax under this
chapter, the commissioner shall refund the excess amount. The credit allowed for qualified research
expenses incurred in taxable years beginning after December 31, 2009, and
before January 1, 2013, must be used before any research credit earned under
subdivision 3.
(b) If the first $200,000 of the credit
allowed in this section for qualified research expenses incurred in taxable
years beginning after December 31, 2014, exceeds the taxpayer's liability for
tax under this chapter, the commissioner shall refund the excess amount. The $200,000 limit must be applied at the
corporation, partnership, or other entity level. The credit allowed for qualified research
expenses incurred in taxable years beginning before January 1, 2015, must be
used before any research credit under subdivision 3.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 32. Minnesota Statutes 2014, section 290.068, is amended by adding a subdivision to read:
Subd. 8. Applications;
certification. (a) A taxpayer
claiming a credit under this section must apply to the commissioner of
employment and economic development for a determination that the expenses for
which the credit is claimed are qualified research expenses. The application must be submitted by
September 15 of the calendar year following the end of the taxable year in
which the qualified research expenses were incurred. The application must be in a form and manner
prescribed by the commissioner of employment and economic development, in
consultation with the commissioner, and must contain information sufficient to
verify that the expenses for which the credit is claimed under this section are
qualified research expenses.
(b) The commissioner of employment and
economic development must notify the taxpayer of the determination of the
application under paragraph (a) no later than 90 days after the application is
received.
(c) Upon approving an application for
credit under paragraph (a), the commissioner of employment and economic
development must issue a credit certificate to the taxpayer that verifies eligibility
for the credit and states the amount of credit and the taxable year to which
the credit applies. The commissioner of
employment and economic development must notify the commissioner of the
issuance of the credit certificate, the amount of the credit, and the taxable
year to which the credit applies.
(d) The taxpayer claiming the credit
under this section must file an amended return for the taxable year to which
the credit applies. The return must
contain a copy of the credit certificate issued under paragraph (c).
(e) A credit must not be issued under
this section unless the commissioner has received the certification required
under paragraph (c).
(f) For purposes of this subdivision,
"taxpayer" excludes:
(1) a corporation subject to tax under
section 290.06, subdivision 1; and
(2)
an individual claiming a credit for qualified research expenditures of an S corporation
or partnership.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 33. [290.0682]
CREDIT FOR ATTAINING MASTER'S DEGREE IN TEACHER'S LICENSURE FIELD.
Subdivision 1. Definitions. (a) For purposes of this section the
following terms have the meanings given them.
(b) "Master's degree program"
means a graduate level program at an accredited university leading to a master
of arts or science degree in a core content area directly related to a
qualified teacher's licensure field. The
master's degree program may not include pedagogy or a pedagogy component. To be eligible under this credit, a licensed
elementary school teacher must pursue and complete a master's degree program in
a core content area in which the teacher provides direct classroom instruction.
(c) "Qualified teacher" means
a K-12 teacher who:
(1) currently holds a continuing license
granted by the Minnesota Board of Teaching;
(2) began a master's degree program
after June 30, 2015; and
(3) completes the master's degree
program during the taxable year.
(d) "Core content area" means
the academic subject of reading, English or language arts, mathematics,
science, foreign languages, civics and government, economics, arts, history, or
geography.
Subd. 2. Credit
allowed. (a) An individual
who is a qualified teacher is allowed a credit against the tax imposed under
this chapter. The credit equals $2,500.
(b) For a nonresident or a part-year
resident, the credit under this subdivision must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
(c) A qualified teacher may claim the
credit in this section only one time for each master's degree program completed
in a core content area.
Subd. 3. Credit
refundable. (a) If the amount
of the credit for which an individual is eligible exceeds the individual's
liability for tax under this chapter, the commissioner shall refund the excess
to the individual.
(b) The amount necessary to pay the
refunds required by this section is appropriated to the commissioner from the
general fund.
Subd. 4. Delayed
payment of 2015 and 2016 credits. For
master's degree programs completed in taxable years beginning after December
31, 2014, and before January 1, 2017, the individual may claim the
corresponding credit in the taxable year beginning after December 31, 2016, and
before January 1, 2018, but not earlier.
Credits claimed for taxable years beginning after December 31, 2014, and
before January 1, 2017, are in addition to any credit allowed for the taxable
year beginning after December 31, 2016, and before January 1, 2018.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 34. [290.0683]
STUDENT LOAN CREDIT.
Subdivision 1. Definitions. (a) For purposes of this section, the
following terms have the meanings given.
(b) "Adjusted gross income"
means federal adjusted gross income as defined in section 62 of the Internal
Revenue Code.
(c)
"Earned income" has the meaning given in section 32(c) of the
Internal Revenue Code.
(d) "Eligible individual" means
a resident individual with one or more qualified education loans related to an
undergraduate or graduate degree program at a postsecondary educational
institution.
(e) "Eligible loan payments"
means the amount the eligible individual paid during the taxable year to pay
principal and interest on qualified education loans.
(f) "Postsecondary educational
institution" means a postsecondary institution eligible for state student
aid under section 136A.103 or, if the institution is not located in this state,
a postsecondary institution participating in the federal Pell Grant program
under Title IV of the Higher Education Act of 1965, Public Law 89-329, as
amended.
(g) "Qualified education loan"
has the meaning given in section 221 of the Internal Revenue Code, but is
limited to indebtedness incurred on behalf of the eligible individual or the
eligible individual's spouse.
Subd. 2. Credit
allowed. (a) An eligible
individual is allowed a credit against the tax due under this chapter.
(b) The credit for an eligible individual
equals the least of:
(1) eligible loan payments minus ten
percent of an amount equal to adjusted gross income in excess of $10,000, but
in no case less than zero;
(2) the earned income for the taxable
year of the eligible individual and spouse, if any; or
(3) the sum of:
(i) the interest portion of eligible loan
payments made during the taxable year; and
(ii) ten percent of the original loan
amount of all qualified education loans of the eligible individual and the
eligible individual's spouse.
(c) For a part-year resident, the
credit must be allocated based on the percentage calculated under section
290.06, subdivision 2c, paragraph (e).
Subd. 3. Credit
refundable. If the amount of
credit that an individual is eligible to receive under this section exceeds the
individual's tax liability under this chapter, the commissioner shall refund
the excess to the individual.
Subd. 4. Appropriation. An amount sufficient to pay the
refunds required by this section is appropriated to the commissioner from the
general fund.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 35. [290.0684]
SECTION 529 COLLEGE SAVINGS PLAN CREDIT.
Subdivision 1. Definitions. For purposes of this section, the term "federal adjusted gross income" has the meaning given under section 62(a) of the Internal Revenue Code, and "nonqualified distribution" means any distribution that is includible in gross income under section 529 of the Internal Revenue Code.
Subd. 2. Credit
allowed. (a) A credit of up
to $500 is allowed to a resident individual against the tax imposed by this
chapter, subject to the limitations in paragraph (b).
(b)
The credit allowed must be calculated by applying the following rates to the
amount contributed to a college savings plan account qualifying under section
529 of the Internal Revenue Code, in a taxable year:
(1) 50 percent for individual filers and married couples filing a joint return who have federal adjusted gross income of less than $80,000;
(2) 25 percent for married couples
filing a joint return who have federal adjusted gross income over $80,000, but
not more than $100,000;
(3) ten percent for married couples
filing a joint return who have federal adjusted gross income over $100,000, but
not more than $120,000; and
(4) five percent for married couples
filing a joint return who have federal adjusted gross income over $120,000, but
not more than $160,000.
(c) The income thresholds in paragraph
(b), clauses (1) to (4), used to calculate the credit, must be adjusted for
inflation. The commissioner shall adjust
by the percentage determined under the provisions of section 1(f) of the
Internal Revenue Code, except that in section 1(f)(3)(B) the word
"2014" is substituted for the word "1992." For 2016, the commissioner shall then
determine the percent change from the 12 months ending on August 31, 2014, to
the 12 months ending on August 31, 2015, and in each subsequent year, from the
12 months ending on August 31, 2014, to the 12 months ending on August 31 of
the year preceding the taxable year. The
income thresholds as adjusted for inflation must be rounded to the nearest $10
amount. If the amount ends in $5, the
amount is rounded up to the nearest $10 amount.
The determination of the commissioner under this subdivision is not a
rule under the Administrative Procedure Act including section 14.386.
Subd. 3. Credit
refundable. If the amount of
credit that an individual is eligible to receive under this section exceeds the
individual's tax liability under this chapter, the commissioner shall refund
the excess to the individual.
Subd. 4. Allocation. For a part-year resident, the credit
must be allocated based on the percentage calculated under section 290.06,
subdivision 2c, paragraph (e).
Subd. 5. Recapture
of credit. In the case of a
nonqualified distribution, the taxpayer is liable to the commissioner for the
lesser of: ten percent of the amount of
the nonqualified distribution, or the sum of credits received under this
section for all years.
Subd. 6. Appropriation. An amount sufficient to pay the
refunds required by this section is appropriated to the commissioner from the
general fund.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 36. Minnesota Statutes 2014, section 290.0802, subdivision 2, is amended to read:
Subd. 2. Subtraction. (a) A qualified individual is allowed a subtraction from federal taxable income of the individual's subtraction base amount. The excess of the subtraction base amount over the taxable net income computed without regard to the subtraction for the elderly or disabled under section 290.01, subdivision 19b, clause (4), may be used to reduce the amount of a lump sum distribution subject to tax under section 290.032.
(b)(1) The initial subtraction base amount equals
(i) $12,000 $20,000 for a
married taxpayer filing a joint return if a spouse is a qualified individual,
(ii)
$9,600 $16,000 for a single taxpayer, and
(iii) $6,000 $10,000 for a
married taxpayer filing a separate federal return.
(2) The qualified individual's initial subtraction base amount, then, must be reduced by the sum of nontaxable retirement and disability benefits and one-half of the amount of adjusted gross income in excess of the following thresholds:
(i) $18,000 $30,000 for a
married taxpayer filing a joint return if both spouses are qualified
individuals,
(ii) $14,500 $24,000 for a
single taxpayer or for a married couple filing a joint return if only one
spouse is a qualified individual, and
(iii) $9,000 $15,000 for a
married taxpayer filing a separate federal return.
(3) In the case of a qualified individual who is under the age of 65, the maximum amount of the subtraction base may not exceed the taxpayer's disability income.
(4) The resulting amount is the subtraction base amount.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 37. [290.0803]
SECTION 179 EXPENSING SUBTRACTION.
Subdivision 1. Current
year allowance. (a) In each
of the five tax years immediately following the tax year in which an addition
is required under section 290.01, subdivision 19a, clause (8), or 19c, clause
(13), the current year allowance equals one-fifth of the addition made by the
taxpayer under section 290.01, subdivision 19a, clause (8), or 19c, clause
(13).
(b) In the case of a shareholder of a
corporation that is an S corporation, the current year allowance is
reduced by the positive value of any net operating loss under section 172 of
the Internal Revenue Code generated for the tax year of the addition and, if the net operating loss exceeds the
addition for the tax year, the current year allowance is zero.
Subd. 2. Section
179 expensing carryover. For
purposes of this section, the current year allowance determined under
subdivision 1 is considered to be the last subtraction allowed in determining
taxable income. If the amount allowed
under subdivision 1 exceeds taxable income, then the excess is a section 179
expensing carryover to each of the ten succeeding taxable years. The entire amount of the section 179
expensing carryover is carried first to the earliest taxable year to which the
section 179 expensing carryover may be carried and then to each successive year
to which the section 179 expensing carryover may be carried.
Subd. 3. Section
179 expensing subtraction. A
taxpayer is allowed a section 179 expensing subtraction from federal taxable
income. The subtraction equals the sum
of:
(1) the current year allowance
determined under subdivision 1; and
(2) any section 179 expensing carryover
from prior taxable years determined under subdivision 2.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 38. Minnesota Statutes 2014, section 290.081, is amended to read:
290.081
INCOME OF NONRESIDENTS, RECIPROCITY.
(a) The compensation received for the performance of personal or professional services within this state by an individual whose residence, place of abode, and place customarily returned to at least once a month is in another state, shall be excluded from gross income to the extent such compensation is subject to an income tax imposed by the state of residence; provided that such state allows a similar exclusion of compensation received by residents of Minnesota for services performed therein.
(b) When it is deemed to be in the best interests of the people of this state, the commissioner may determine that the provisions of paragraph (a) shall not apply. As long as the provisions of paragraph (a) apply between Minnesota and Wisconsin, the provisions of paragraph (a) shall apply to any individual who is domiciled in Wisconsin.
(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota residents which would have been paid Wisconsin without paragraph (a) exceeds the Minnesota tax on Wisconsin residents which would have been paid Minnesota without paragraph (a), or vice versa, then the state with the net revenue loss resulting from paragraph (a) shall receive from the other state the amount of such loss. This provision shall be effective for all years beginning after December 31, 1972. The data used for computing the loss to either state shall be determined on or before September 30 of the year following the close of the previous calendar year.
(d)(1) Interest is payable on all amounts calculated under paragraph (c) relating to taxable years beginning after December 31, 2000. Interest accrues from July 1 of the taxable year.
(2) The commissioner of revenue is authorized to enter into agreements with the state of Wisconsin specifying the reciprocity payment due dates, conditions constituting delinquency, interest rates, and a method for computing interest due, if the taxing official of the state of Wisconsin agrees to terms consistent with clause (3).
(3) For agreements entered into before
October 1, 2014, the annual compensation required under paragraph (c) must
equal at least the net revenue loss minus $1,000,000 per fiscal year.
(4) For agreements entered into after
September 30, 2014, (3) The annual compensation required under
paragraph (c) must equal the net revenue loss per fiscal year.
(5) For the purposes of clauses
(3) and (4) this clause, "net revenue loss" means the
difference between:
(i) the amount of Minnesota income taxes Minnesota forgoes by not taxing Wisconsin residents on income subject to reciprocity less the cost of providing refundable credits in excess of liability under this chapter to Wisconsin residents; and
(ii) the credit Minnesota would
have been required to give under section 290.06, subdivision 22, to Minnesota
residents working in Wisconsin had there not been reciprocity amount of
Wisconsin income taxes Wisconsin forgoes by not taxing Minnesota residents on
income subject to reciprocity.
(e) If an agreement cannot be reached as to the amount of the loss, the commissioner of revenue and the taxing official of the state of Wisconsin shall each appoint a member of a board of arbitration and these members shall appoint the third member of the board. The board shall select one of its members as chair. Such board may administer oaths, take testimony, subpoena witnesses, and require their attendance, require the production of books, papers and documents, and hold hearings at such places as are deemed necessary. The board shall then make a determination as to the amount to be paid the other state which determination shall be final and conclusive.
(f) The commissioner may furnish copies of returns, reports, or other information to the taxing official of the state of Wisconsin, a member of the board of arbitration, or a consultant under joint contract with the states of Minnesota and Wisconsin for the purpose of making a determination as to the amount to be paid the other state under the provisions of this section. Prior to the release of any information under the provisions of this section, the person to whom the information is to be released shall sign an agreement which provides that the person will protect the confidentiality of the returns and information revealed thereby to the extent that it is protected under the laws of the state of Minnesota.
EFFECTIVE
DATE. This section is
effective the day following final enactment for taxable years beginning after
December 31, 2014.
Sec. 39. Minnesota Statutes 2014, section 290.091, subdivision 2, 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), (16), and (21), (23), (24), (25), and (27); 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, 2014.
Sec. 40. Minnesota Statutes 2014, section 290.191, subdivision 5, is amended to read:
Subd. 5. Determination of sales factor. For purposes of this section, the following rules apply in determining the sales factor.
(a) The sales factor includes all sales, gross earnings, or receipts received in the ordinary course of the business, except that the following types of income are not included in the sales factor:
(1) interest;
(2) dividends;
(3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;
(4) sales of property used in the trade or business, except sales of leased property of a type which is regularly sold as well as leased; and
(5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue Code or sales of stock.
(b) Sales of tangible personal property are made within this state if the property is received by a purchaser at a point within this state, regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination of the property.
(c) Tangible personal property delivered to a common or contract carrier or foreign vessel for delivery to a purchaser in another state or nation is a sale in that state or nation, regardless of f.o.b. point or other conditions of the sale.
(d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine, fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is licensed by a state or political subdivision to resell this property only within the state of ultimate destination, the sale is made in that state.
(e) Sales made by or through a corporation that is qualified as a domestic international sales corporation under section 992 of the Internal Revenue Code are not considered to have been made within this state.
(f) Sales, rents, royalties, and other income in connection with real property is attributed to the state in which the property is located.
(g) Receipts from the lease or rental of tangible personal property, including finance leases and true leases, must be attributed to this state if the property is located in this state and to other states if the property is not located in this state. Receipts from the lease or rental of moving property including, but not limited to, motor vehicles, rolling stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts factor to the extent that the property is used in this state. The extent of the use of moving property is determined as follows:
(1) A motor vehicle is used wholly in the state in which it is registered.
(2) The extent that rolling stock is used in this state is determined by multiplying the receipts from the lease or rental of the rolling stock by a fraction, the numerator of which is the miles traveled within this state by the leased or rented rolling stock and the denominator of which is the total miles traveled by the leased or rented rolling stock.
(3) The extent that an aircraft is used in this state is determined by multiplying the receipts from the lease or rental of the aircraft by a fraction, the numerator of which is the number of landings of the aircraft in this state and the denominator of which is the total number of landings of the aircraft.
(4) The extent that a vessel, mobile equipment, or other mobile property is used in the state is determined by multiplying the receipts from the lease or rental of the property by a fraction, the numerator of which is the number of days during the taxable year the property was in this state and the denominator of which is the total days in the taxable year.
(h) Royalties and other income received for the use of or for the privilege of using intangible property, including patents, know-how, formulas, designs, processes, patterns, copyrights, trade names, service names, franchises, licenses, contracts, customer lists, or similar items, must be attributed to the state in which the property is used by the purchaser. If the property is used in more than one state, the royalties or other income must be apportioned to this state pro rata according to the portion of use in this state. If the portion of use in this state cannot be determined, the royalties or other income must be excluded from both the numerator and the denominator. Intangible property is used in this state if the purchaser uses the intangible property or the rights therein in the regular course of its business operations in this state, regardless of the location of the purchaser's customers.
(i) Sales of intangible property are made within the state in which the property is used by the purchaser. If the property is used in more than one state, the sales must be apportioned to this state pro rata according to the portion of use in this state. If the portion of use in this state cannot be determined, the sale must be excluded from both the numerator and the denominator of the sales factor. Intangible property is used in this state if the purchaser used the intangible property in the regular course of its business operations in this state.
(j)
Receipts from the performance of services must be attributed to the state where
the services are received. For the
purposes of this section, receipts from the performance of services provided to
a corporation, partnership, or trust may only be attributed to a state where it
has a fixed place of doing business. If
the state where the services are received is not readily determinable or is a
state where the corporation, partnership, or trust receiving the service does
not have a fixed place of doing business, the services shall be deemed to be
received at the location of the office of the customer from which the services
were ordered in the regular course of the customer's trade or business. If the ordering office cannot be determined,
the services shall be deemed to be received at the office of the customer to
which the services are billed. Receipts
received as compensation by a nonresident individual for the performance of
services as a member of a board of directors, or similar body, are attributed
to Minnesota based on the ratio of the time spent in Minnesota providing
services as a member of that board divided by the time spent everywhere
providing services as a member of that board.
(k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts from management, distribution, or administrative services performed by a corporation or trust for a fund of a corporation or trust regulated under United States Code, title 15, sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of the fund resides. Under this paragraph, receipts for services attributed to shareholders are determined on the basis of the ratio of: (1) the average of the outstanding shares in the fund owned by shareholders residing within Minnesota at the beginning and end of each year; and (2) the average of the total number of outstanding shares in the fund at the beginning and end of each year. Residence of the shareholder, in the case of an individual, is determined by the mailing address furnished by the shareholder to the fund. Residence of the shareholder, when the shares are held by an insurance company as a depositor for the insurance company policyholders, is the mailing address of the policyholders. In the case of an insurance company holding the shares as a depositor for the insurance company policyholders, if the mailing address of the policyholders cannot be determined by the taxpayer, the receipts must be excluded from both the numerator and denominator. Residence of other shareholders is the mailing address of the shareholder.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies retroactively to all
open taxable years and returns.
Sec. 41. Minnesota Statutes 2014, section 290A.03, subdivision 15, as amended by Laws 2015, chapter 1, section 4, is amended to read:
Subd. 15. Internal
Revenue Code. "Internal Revenue
Code" means the Internal Revenue Code of 1986, as amended through December
31, 2014 April 1, 2015.
EFFECTIVE
DATE. This section is
effective for property tax refunds based on property taxes payable after
December 31, 2015, and rent paid after December 31, 2014.
Sec. 42. ADDITIONAL
PERSONAL AND DEPENDENT EXEMPTION AMOUNT.
(a) An individual subject to tax under
Minnesota Statutes, section 290.06, subdivision 2c, is allowed a subtraction
from federal taxable income, in addition to the subtractions under Minnesota
Statutes, section 290.01, subdivision 19b, equal to the number of personal
exemptions allowed under sections 151(b) and (c) of the Internal Revenue Code,
multiplied by one-quarter of the dollar amount for personal exemptions under
sections 151(d)(1) and (2) of the Internal Revenue Code, as adjusted for
inflation by section 151(d)(4) of the Internal Revenue Code.
(b) The additional exemption in
paragraph (a) must be added to the disallowed personal exemption amount under
Minnesota Statutes, section 290.01, subdivision 19a, clause (16), item (i).
(c) The additional exemption amount under this section is a modification to net income under Minnesota Statutes, section 290.01, subdivision 19.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
Sec. 43. CREDIT
FOR JOB TRAINING CENTER REHABILITATION.
(a) A taxpayer is allowed a credit
against the tax due under Minnesota Statutes, chapter 290, if the taxpayer
rehabilitated and placed in service in calendar year 2015 a certified historic
structure that once served as a library and is located in a city of the first
class. The credit equals 20 percent of the
qualified rehabilitation expenditures for the project.
(b) The taxpayer must notify the
commissioner within six months of when the project is placed in service, and
must provide documentation that the project meets the requirements of this
section, in the form and manner prescribed by the commissioner. The commissioner must issue a credit
certificate to the developer upon verifying that the project has been placed in
service and meets the requirements of this section.
(c) The recipient of a credit certificate
may assign the certificate to another taxpayer, including an insurance company,
which is then allowed the credit under this section. An assignment is not valid unless the
assignee notifies the commissioner within 30 days of the date the assignment is
made. The commissioner shall prescribe
the forms necessary for notifying the commissioner of the assignment of a
credit certificate and for claiming a credit by assignment. In lieu of the credit under paragraph (a), an
insurance company that is assigned a credit under this paragraph may claim the
credit against the insurance premiums tax imposed under chapter 297I.
(d) Credits granted to a partnership, a
limited liability company taxed as a partnership, S corporation, or
multiple owners of property are passed through to the partners, members,
shareholders, or owners, respectively, pro rata to each partner, member,
shareholder, or owner based on their share of the entity's assets or as
specially allocated in their organizational documents or any other executed
agreement, as of the last day of the taxable year.
(e) If the amount of credit that a
taxpayer is eligible to receive under this section exceeds the taxpayer's
liability for tax under Minnesota Statutes, chapter 290, the commissioner shall
refund the excess to the taxpayer. If
the amount of credit assigned to an insurance company exceeds the liability for
tax under chapter 297I, the commissioner shall refund the excess to the
insurance company. An amount sufficient
to pay the refunds authorized under this section is appropriated to the
commissioner from the general fund.
(f) For purposes of this section, the
following terms have the meanings given:
(1) "certified historic
structure" has the meaning given in section 47(c)(3)(A) of the Internal
Revenue Code;
(2) "commissioner" means the
commissioner of revenue;
(3) "qualified rehabilitation expenditures" means amounts chargeable to capital accounts but does not include the cost of acquiring the structure or enlarging the structure; and
(4) "project" means
rehabilitation of a certified historic structure that is located in Minnesota.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014, and before
January 1, 2016, for projects placed in service in calendar year 2015.
Sec. 44. REPEALER.
Minnesota Statutes 2014, section
290.067, subdivision 2a, is repealed.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2014.
ARTICLE 2
PROPERTY TAXPAYER EMPOWERMENT
Section 1. Minnesota Statutes 2014, section 123B.63, subdivision 3, is amended to read:
Subd. 3. Capital
project levy referendum. (a) A
district may levy the local tax rate approved by a majority of the electors
voting on the question to provide funds for an approved project. The election must take place no more than
five years before the estimated date of commencement of the project. The referendum must may be held
on a date set by called by the board and, except as provided in
paragraph (g), must be held on the first Tuesday after the first Monday in
November in either an even-numbered or odd-numbered year. A district must meet the requirements of
section 123B.71 for projects funded under this section. If a review and comment is required under
section 123B.71, subdivision 8, a referendum for a project not receiving a
positive review and comment by the commissioner must be approved by at least 60
percent of the voters at the election.
(b) The A referendum may
be called by the school board and under this subdivision may
be held:
(1) separately, before an election for the issuance of obligations for the project under chapter 475; or
(2) in conjunction with an election for the issuance of obligations for the project under chapter 475; or
(3) notwithstanding section 475.59, as a conjunctive question authorizing both the capital project levy and the issuance of obligations for the project under chapter 475. Any obligations authorized for a project may be issued within five years of the date of the election.
(c) The ballot must provide a general description of the proposed project, state the estimated total cost of the project, state whether the project has received a positive or negative review and comment from the commissioner, state the maximum amount of the capital project levy as a percentage of net tax capacity, state the amount that will be raised by that local tax rate in the first year it is to be levied, and state the maximum number of years that the levy authorization will apply.
The ballot must contain a textual portion with the information required in this section and a question stating substantially the following:
"Shall the capital project levy proposed by the board of .......... School District No. .......... be approved?"
If approved, the amount provided by the approved local tax rate applied to the net tax capacity for the year preceding the year the levy is certified may be certified for the number of years, not to exceed ten, approved.
(d) If the district proposes a new capital project to begin at the time the existing capital project expires and at the same maximum tax rate, the general description on the ballot may state that the capital project levy is being renewed and that the tax rate is not being increased from the previous year's rate. An election to renew authority under this paragraph may be called at any time that is otherwise authorized by this subdivision. The ballot notice required under section 275.60 may be modified to read:
"BY VOTING YES ON THIS BALLOT QUESTION, YOU ARE VOTING TO RENEW AN EXISTING CAPITAL PROJECTS REFERENDUM THAT IS SCHEDULED TO EXPIRE."
(e) In the event a conjunctive question proposes to authorize both the capital project levy and the issuance of obligations for the project, appropriate language authorizing the issuance of obligations must also be included in the question.
(f) The district must notify the commissioner of the results of the referendum.
(g) Notwithstanding paragraph (a), a
referendum to levy the amount needed to finance a district's response to a
disaster or emergency may be held on a date set by the board. "Disaster" means a situation that
creates an actual or imminent serious threat to the health and safety of
persons or a situation that has resulted or is likely to result in catastrophic
loss to property or the environment. "Emergency"
means an unforeseen combination of circumstances that calls for immediate
action to prevent a disaster, identified in the referendum, from developing or
occurring.
EFFECTIVE
DATE. Except as otherwise provided,
this act is effective August 1, 2015, and applies to any referendum authorized
on or after that date.
Sec. 2. Minnesota Statutes 2014, section 126C.17, subdivision 9, is amended to read:
Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10, subdivision 1, may be increased in the amount approved by the voters of the district at a referendum called for the purpose. The referendum may be called by the board. The referendum must be conducted one or two calendar years before the increased levy authority, if approved, first becomes payable. Only one election to approve an increase may be held in a calendar year. Unless the referendum is conducted by mail under subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the first Monday in November. The ballot must state the maximum amount of the increased revenue per adjusted pupil unit. The ballot may state a schedule, determined by the board, of increased revenue per adjusted pupil unit that differs from year to year over the number of years for which the increased revenue is authorized or may state that the amount shall increase annually by the rate of inflation. The ballot must state the cumulative amount per pupil of any local optional revenue, board-approved referendum authority, and previous voter-approved referendum authority, if any, that the board expects to certify for the next school year. For this purpose, the rate of inflation shall be the annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may state that existing referendum levy authority is expiring. In this case, the ballot may also compare the proposed levy authority to the existing expiring levy authority, and express the proposed increase as the amount, if any, over the expiring referendum levy authority. The ballot must designate the specific number of years, not to exceed ten, for which the referendum authorization applies. The ballot, including a ballot on the question to revoke or reduce the increased revenue amount under paragraph (c), must abbreviate the term "per adjusted pupil unit" as "per pupil." The notice required under section 275.60 may be modified to read, in cases of renewing existing levies at the same amount per pupil as in the previous year:
"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS SCHEDULED TO EXPIRE."
The ballot may contain a textual portion with the information required in this subdivision and a question stating substantially the following:
"Shall the increase in the revenue proposed by (petition to) the board of ........., School District No. .., be approved?"
If approved, an amount equal to the approved revenue per adjusted pupil unit times the adjusted pupil units for the school year beginning in the year after the levy is certified shall be authorized for certification for the number of years approved, if applicable, or until revoked or reduced by the voters of the district at a subsequent referendum.
(b) The board must prepare and deliver by first class mail at least 15 days but no more than 30 days before the day of the referendum to each taxpayer a notice of the referendum and the proposed revenue increase. The board need not mail more than one notice to any taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be those shown to be owners on the records of the county auditor or, in any county where tax statements are mailed by the county treasurer, on the records of the county treasurer. Every property owner whose
name does not appear on the records of the county auditor or the county treasurer is deemed to have waived this mailed notice unless the owner has requested in writing that the county auditor or county treasurer, as the case may be, include the name on the records for this purpose. The notice must project the anticipated amount of tax increase in annual dollars for typical residential homesteads, agricultural homesteads, apartments, and commercial-industrial property within the school district.
The notice must state the cumulative
and individual amounts per pupil of any local optional revenue, board‑approved
referendum authority, and voter-approved referendum authority, if any, that the
board expects to certify for the next school year.
The notice for a referendum may state that an existing referendum levy is expiring and project the anticipated amount of increase over the existing referendum levy in the first year, if any, in annual dollars for typical residential homesteads, agricultural homesteads, apartments, and commercial-industrial property within the district.
The notice must include the following statement: "Passage of this referendum will result in an increase in your property taxes." However, in cases of renewing existing levies, the notice may include the following statement: "Passage of this referendum extends an existing operating referendum at the same amount per pupil as in the previous year."
(c) A referendum on the question of revoking or reducing the increased revenue amount authorized pursuant to paragraph (a) may be called by the board. A referendum to revoke or reduce the revenue amount must state the amount per adjusted pupil unit by which the authority is to be reduced. Revenue authority approved by the voters of the district pursuant to paragraph (a) must be available to the school district at least once before it is subject to a referendum on its revocation or reduction for subsequent years. Only one revocation or reduction referendum may be held to revoke or reduce referendum revenue for any specific year and for years thereafter.
(d) The approval of 50 percent plus one of those voting on the question is required to pass a referendum authorized by this subdivision.
(e) At least 15 days before the day of the referendum, the district must submit a copy of the notice required under paragraph (b) to the commissioner and to the county auditor of each county in which the district is located. Within 15 days after the results of the referendum have been certified by the board, or in the case of a recount, the certification of the results of the recount by the canvassing board, the district must notify the commissioner of the results of the referendum.
Sec. 3. Minnesota Statutes 2014, section 205.10, subdivision 1, is amended to read:
Subdivision 1. Questions. Special elections may be held in a city or town on a question on which the voters are authorized by law or charter to pass judgment. A special election on a question may only be held on the first Tuesday after the first Monday in November in either an even-numbered or odd-numbered year. A special election may be ordered by the governing body of the municipality on its own motion or, on a question that has not been submitted to the voters in an election within the previous six months, upon a petition signed by a number of voters equal to 20 percent of the votes cast at the last municipal general election. A question is carried only with the majority in its favor required by law or charter. The election officials for a special election shall be the same as for the most recent municipal general election unless changed according to law. Otherwise special elections shall be conducted and the returns made in the manner provided for the municipal general election.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 4. Minnesota Statutes 2014, section 205A.05, subdivision 1, is amended to read:
Subdivision 1. Questions. (a) Special elections must be held
for a school district on a question on which the voters are authorized by law
to pass judgment. The special
election on a question may only be held on the first Tuesday after the first
Monday in November of either an even-numbered or odd-numbered year. The school board may on its own motion call a
special election to vote on any matter requiring approval of the voters of a
district. Upon petition filed with the
school board of 50 or more voters of the school district or five percent of the
number of voters voting at the preceding school district general election,
whichever is greater, the school board shall by resolution call a special
election to vote on any matter requiring approval of the voters of a district. A question is carried only with the majority
in its favor required by law. The
election officials for a special election are the same as for the most recent
school district general election unless changed according to law. Otherwise, special elections must be
conducted and the returns made in the manner provided for the school district
general election.
(b) A special election may not be held:
(1) during the 56 days before and the 56
days after a regularly scheduled primary or general election conducted wholly
or partially within the school district;
(2) on the date of a regularly scheduled
town election in March conducted wholly or partially within the school
district; or
(3) during the 30 days before or the 30
days after a regularly scheduled town election in March conducted wholly or
partially within the school district.
(c) Notwithstanding any other law to the
contrary, the time period in which a special election must be conducted under
any other law may be extended by the school board to conform with the
requirements of this subdivision.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 5. Minnesota Statutes 2014, section 216B.46, is amended to read:
216B.46
MUNICIPAL ACQUISITION PROCEDURES; NOTICE; ELECTION.
Any municipality which desires to acquire
the property of a public utility as authorized under the provisions of section
216B.45 may determine to do so by resolution of the governing body of the
municipality taken after a public hearing of which at least 30 days' published
notice shall be given as determined by the governing body. The determination shall become effective when
ratified by a majority of the qualified electors voting on the question at a
special election to be held for that purpose, not less than 60 nor more than
120 days after the resolution of the governing body of the municipality on
the first Tuesday after the first Monday in November in either an even‑numbered
or odd-numbered year.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 6. Minnesota Statutes 2014, section 237.19, is amended to read:
237.19
MUNICIPAL TELECOMMUNICATIONS SERVICES.
Any municipality shall have the right to own and operate a telephone exchange within its own borders, subject to the provisions of this chapter. It may construct such plant, or purchase an existing plant by agreement with the owner, or where it cannot agree with the owner on price, it may acquire an existing plant by condemnation, as
hereinafter
provided, but in no case shall a municipality construct or purchase such a plant
or proceed to acquire an existing plant by condemnation until such action by it
is authorized by a majority of the electors voting upon the proposition at a
general an election or a special election called for that purpose
held on the first Tuesday after the first Monday in November in either an
even-numbered or odd-numbered year, and if the proposal is to construct a
new exchange where an exchange already exists, it shall not be authorized to do
so unless 65 percent of those voting thereon vote in favor of the undertaking. A municipality that owns and operates a
telephone exchange may enter into a joint venture as a partner or shareholder
with a telecommunications organization to provide telecommunications services
within its service area.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 7. Minnesota Statutes 2014, section 275.065, subdivision 3, is amended to read:
Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare and the county treasurer shall deliver after November 10 and on or before November 24 each year, by first class mail to each taxpayer at the address listed on the county's current year's assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer, the treasurer may send the notice in electronic form or by electronic mail instead of on paper or by ordinary mail.
(b) The commissioner of revenue shall prescribe the form of the notice.
(c) The notice must inform taxpayers that it contains the amount of property taxes each taxing authority proposes to collect for taxes payable the following year. In the case of a town, or in the case of the state general tax, the final tax amount will be its proposed tax. The notice must clearly state for each city that has a population over 500, county, school district, regional library authority established under section 134.201, and metropolitan taxing districts as defined in paragraph (i), the time and place of a meeting for each taxing authority in which the budget and levy will be discussed and public input allowed, prior to the final budget and levy determination. The taxing authorities must provide the county auditor with the information to be included in the notice on or before the time it certifies its proposed levy under subdivision 1. The public must be allowed to speak at that meeting, which must occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone number for the taxing authority that taxpayers may call if they have questions related to the notice and an address where comments will be received by mail, except that no notice required under this section shall be interpreted as requiring the printing of a personal telephone number or address as the contact information for a taxing authority. If a taxing authority does not maintain public offices where telephone calls can be received by the authority, the authority may inform the county of the lack of a public telephone number and the county shall not list a telephone number for that taxing authority.
(d) The notice must state for each parcel:
(1) the market value of the property as determined under section 273.11, and used for computing property taxes payable in the following year and for taxes payable in the current year as each appears in the records of the county assessor on November 1 of the current year; and, in the case of residential property, whether the property is classified as homestead or nonhomestead. The notice must clearly inform taxpayers of the years to which the market values apply and that the values are final values;
(2) the items listed below, shown separately by county, city or town, and state general tax, agricultural homestead credit under section 273.1384, voter approved school levy, other local school levy, and the sum of the special taxing districts, and as a total of all taxing authorities:
(i) the actual tax for taxes payable in the current year; and
(ii) the proposed tax amount.
If the county levy under clause (2) includes an amount for a lake improvement district as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose must be separately stated from the remaining county levy amount.
In the case of a town or the state general
tax, the final tax shall also be its proposed tax unless the town changes its
levy at a special town meeting under section 365.52. If a school district has certified under
section 126C.17, subdivision 9, that a referendum will be held in the school
district at the November general election, the county auditor must note next to
the school district's proposed amount that a referendum is pending and that, if
approved by the voters, the tax amount may be higher than shown on the notice. In the case of the city of Minneapolis, the
levy for Minneapolis Park and Recreation shall be listed separately from the
remaining amount of the city's levy. In
the case of the city of St. Paul, the levy for the St. Paul Library
Agency must be listed separately from the remaining amount of the city's levy. In the case of Ramsey County, any amount
levied under section 134.07 may be listed separately from the remaining amount
of the county's levy. In the case of a
parcel where tax increment or the fiscal disparities areawide tax under chapter
276A or 473F applies, the proposed tax levy on the captured value or the
proposed tax levy on the tax capacity subject to the areawide tax must each be
stated separately and not included in the sum of the special taxing districts; and
(3) the increase or decrease between the
total taxes payable in the current year and the total proposed taxes, expressed
as a percentage.; and
(4) a statement at the top of the notice
stating the following: if a county or
city's proposed levy for next year is greater than its actual levy for the
current year, the voters may have the right to petition for a referendum on
next year's levy certification, according to section 275.80, provided that the
final levy that the local government certifies in December of this year is also
greater than its levy for the current year.
For purposes of this section, the amount of the tax on homesteads qualifying under the senior citizens' property tax deferral program under chapter 290B is the total amount of property tax before subtraction of the deferred property tax amount.
(e) The notice must clearly state that the proposed or final taxes do not include the following:
(1) special assessments;
(2) levies approved by the voters after the date the proposed taxes are certified, including bond referenda and school district levy referenda;
(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday in November of the levy year as provided under section 275.73;
(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring after the date the proposed taxes are certified;
(5) amounts necessary to pay tort judgments against the taxing authority that become final after the date the proposed taxes are certified; and
(6) the contamination tax imposed on properties which received market value reductions for contamination.
(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the county treasurer to deliver the notice as required in this section does not invalidate the proposed or final tax levy or the taxes payable pursuant to the tax levy.
(g) If the notice the taxpayer receives under this section lists the property as nonhomestead, and satisfactory documentation is provided to the county assessor by the applicable deadline, and the property qualifies for the homestead classification in that assessment year, the assessor shall reclassify the property to homestead for taxes payable in the following year.
(h) In the case of class 4 residential property used as a residence for lease or rental periods of 30 days or more, the taxpayer must either:
(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter, or lessee; or
(2) post a copy of the notice in a conspicuous place on the premises of the property.
The notice must be mailed or posted by the taxpayer by November 27 or within three days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to which the notice must be mailed in order to fulfill the requirements of this paragraph.
(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing districts" means the following taxing districts in the seven-county metropolitan area that levy a property tax for any of the specified purposes listed below:
(1)
Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
473.521, 473.547, or 473.834;
(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
(3) Metropolitan Mosquito Control Commission under section 473.711.
For purposes of this section, any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be included with the appropriate county's levy.
(j) The governing body of a county, city, or school district may, with the consent of the county board, include supplemental information with the statement of proposed property taxes about the impact of state aid increases or decreases on property tax increases or decreases and on the level of services provided in the affected jurisdiction. This supplemental information may include information for the following year, the current year, and for as many consecutive preceding years as deemed appropriate by the governing body of the county, city, or school district. It may include only information regarding:
(1) the impact of inflation as measured by the implicit price deflator for state and local government purchases;
(2) population growth and decline;
(3) state or federal government action; and
(4) other financial factors that affect the level of property taxation and local services that the governing body of the county, city, or school district may deem appropriate to include.
The information may be presented using tables, written narrative, and graphic representations and may contain instruction toward further sources of information or opportunity for comment.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2016 and thereafter.
Sec. 8. Minnesota Statutes 2014, section 275.07, subdivision 1, is amended to read:
Subdivision 1. Certification of levy. (a) Except as provided under paragraph (b), the taxes voted by cities, counties, school districts, and special districts shall be certified by the proper authorities to the county auditor on or before five working days after December 20 in each year. A town must certify the levy adopted by the town board to the county auditor by September 15 each year. If the town board modifies the levy at a special town meeting after September 15, the town board must recertify its levy to the county auditor on or before five working days after December 20. If a city or county levy is subject to a referendum under section 275.80 and the referendum was approved by the voters, the maximum levy certified under this section is the proposed levy certified under section 275.065. If the referendum was not approved, the maximum amount of levy that a city or county may approve under this section is the maximum alternative levy allowed in section 275.80, subdivision 2. The city or county may choose to certify a levy less than the allowed maximum amount. If a city, town, county, school district, or special district fails to certify its levy by that date, its levy shall be the amount levied by it for the preceding year.
(b)(i) The taxes voted by counties under sections 103B.241, 103B.245, and 103B.251 shall be separately certified by the county to the county auditor on or before five working days after December 20 in each year. The taxes certified shall not be reduced by the county auditor by the aid received under section 273.1398, subdivision 3. If a county fails to certify its levy by that date, its levy shall be the amount levied by it for the preceding year.
(ii) For purposes of the proposed property tax notice under section 275.065 and the property tax statement under section 276.04, for the first year in which the county implements the provisions of this paragraph, the county auditor shall reduce the county's levy for the preceding year to reflect any amount levied for water management purposes under clause (i) included in the county's levy.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2016 and thereafter.
Sec. 9. Minnesota Statutes 2014, section 275.60, is amended to read:
275.60
LEVY OR BOND REFERENDUM; BALLOT NOTICE.
(a) Notwithstanding any general or special
law or any charter provisions, but subject to section 126C.17, subdivision 9,
any question submitted to the voters by any local governmental subdivision at a
general or special an election after June 8, 1995 June 30,
2015, authorizing a property tax levy or tax rate increase, including the
issuance of debt obligations payable in whole or in part from property taxes,
must include on the ballot the following notice in boldface type:
"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING FOR A PROPERTY TAX INCREASE."
(b) For purposes of this section and section 275.61, "local governmental subdivision" includes counties, home rule and statutory cities, towns, school districts, and all special taxing districts. This statement is in addition to any general or special laws or any charter provisions that govern the contents of a ballot question and, in the case of a question on the issuance of debt obligations, may be supplemented by a description of revenues pledged to payment of the obligations that are intended as the primary source of payment.
(c)
An election under this section must be held on the first Tuesday after the
first Monday in November of either an even-numbered or odd-numbered year. This paragraph does not apply to an election
on levying a tax or issuing debt obligations to finance the local government's
response to a disaster or emergency. An
election for these purposes may be held on a date set by the governing body. "Disaster" means a situation that
creates an actual or imminent serious threat to the health and safety of
persons or a situation that has resulted or is likely to result in catastrophic
loss to property or the environment. "Emergency"
means an unforeseen combination of circumstances that calls for immediate
action to prevent a disaster, identified in the referendum, from developing or
occurring.
(c) (d) This section does
not apply to a school district bond election if the debt service payments are
to be made entirely from transfers of revenue from the capital fund to the debt
service fund.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 10. [275.80]
LEVY INCREASE; REVERSE REFERENDUM AUTHORIZED.
Subdivision 1. Citation. This section shall be known as the
"Property Tax Payers' Empowerment Act."
Subd. 2. Definitions. (a) For purposes of this section, the
following terms have the meanings given.
(b) "General levy" means the
total levy certified under section 275.07 by the local governmental unit
excluding any levy that was approved by the voters at a general or special
election.
(c) "Local governmental unit"
means a county or a statutory or home rule charter city with a population of
500 or greater.
(d) "Maximum alternative
levy" for taxes levied in a current year by a local governmental unit
means the sum of (i) its nondebt levy certified two years previous to the
current year, and (ii) the amount of its proposed levy for the current year
levied for the purposes listed in section 275.70, subdivision 5, clauses (1) to
(5).
(e) "Nondebt levy" means the
total levy certified under section 275.07 by the local governmental unit, minus
any amount levied for the purposes listed in section 275.70, subdivision 5,
clauses (1) to (5).
Subd. 3. Levy
increase; reverse referendum authority.
If the certified general levy exceeds the general levy in the
previous year, the voters may petition for a referendum on the levy to be
certified for the following year. The
county auditor must publish information on the right to petition for a
referendum as provided in section 276.04, subdivisions 1 and 2. If by June 30, a petition signed by the
voters equal in number to ten percent of the votes cast in the last general
election requesting a vote on the levy is filed with the county auditor, a
question on the levy to be certified for the current year must be placed on the
ballot at either the general election or at a special election held on the
first Tuesday after the first Monday in November of the current calendar year.
Subd. 4. Prohibition
against new debt before the election.
Notwithstanding any other provision of law, ordinance, or local
charter provision, a county or city must not issue any new debt or obligation
from the time the petition for referendum is filed with the county auditor
under subdivision 3 until the day after the referendum required under this
section is held, except as allowed in this subdivision. Refunding bonds and bonds that have already
received voter approval are exempt from the prohibition in this subdivision. For purposes of this subdivision,
"obligation" has the meaning given in section 475.51, subdivision 3.
Subd. 5. Ballot
question; consequence of the vote. (a)
The question submitted to the voters as required under subdivision 3 shall take
the following form:
"The
governing body of ..... has imposed the following property tax levy in the last
two years and is proposing the following maximum levy increase for the coming
year:
(previous
payable year) |
(current
payable year) |
(coming
payable year) |
Total
levy |
Total
levy |
Maximum
proposed levy |
$....... |
$....... |
$....... |
Shall the governing body of ..... be
allowed to impose the maximum proposed levy listed above?
|
Yes…... |
|
|
No…… |
|
If the majority of votes cast are
"no," its maximum allowed property tax levy for the coming year will
be reduced to its maximum alternative levy of ......."
(b) If a city is subject to this
provision, it will provide the county auditor with information on its proposed
levy by September 30 necessary to calculate the maximum alternative levy under
subdivision 2.
(c) If the majority of votes cast on
this question are in the affirmative, the levy certified by the local
governmental unit under section 275.07 must be less than or equal to its
proposed levy under section 275.065. If
the question does not receive sufficient affirmative votes, the levy amount
that the local governmental unit certifies under section 275.07 in the current year
must be less than or equal to its maximum alternative levy as defined in
subdivision 2.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2016 and thereafter.
Sec. 11. Minnesota Statutes 2014, section 276.04, subdivision 1, is amended to read:
Subdivision 1. Auditor
to publish rates. On receiving the
tax lists from the county auditor, the county treasurer shall, if directed by
the county board, give three weeks' published notice in a newspaper specifying
the rates of taxation for all general purposes and the amounts raised for each
specific purpose. If a city or county
is subject to a petition of the voters due to a general levy increase as
provided in section 275.80, the published notice must also include the general
levy for the current year and the previous year for that city or county along
with the statement in the following form:
"Because the governing body of
...... increased its nonvoter approved levy in the current year, the voters in
that jurisdiction have the right to petition for a referendum under section
275.80 on that jurisdiction's levy amount.
To invoke the referendum, a petition signed by voters equal to ten
percent of the votes cast in the last general election must be filed with the
county auditor by June 30 of the current year."
EFFECTIVE
DATE. This section is
effective for taxes payable in 2016 and thereafter.
Sec. 12. Minnesota Statutes 2014, section 276.04, subdivision 2, is amended to read:
Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing of the tax statements. The commissioner of revenue shall prescribe the form of the property tax statement and its contents. The tax statement must not state or imply that property tax credits are paid by the state of Minnesota. The statement must contain a tabulated statement of the dollar amount due to each taxing authority and the amount of the state tax from the parcel of real property for which a particular tax statement is prepared. The dollar amounts attributable to the county, the state tax, the voter approved school tax, the other local school tax, the township or municipality, and the total of the metropolitan special taxing districts as defined in section 275.065, subdivision 3, paragraph (i), must be separately
stated. The amounts due all other special taxing districts, if any, may be aggregated except that any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly under the appropriate county's levy. If the county levy under this paragraph includes an amount for a lake improvement district as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose must be separately stated from the remaining county levy amount. In the case of Ramsey County, if the county levy under this paragraph includes an amount for public library service under section 134.07, the amount attributable for that purpose may be separated from the remaining county levy amount. The amount of the tax on homesteads qualifying under the senior citizens' property tax deferral program under chapter 290B is the total amount of property tax before subtraction of the deferred property tax amount. The amount of the tax on contamination value imposed under sections 270.91 to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar amount of any special assessments, may be rounded to the nearest even whole dollar. For purposes of this section whole odd-numbered dollars may be adjusted to the next higher even‑numbered dollar. The amount of market value excluded under section 273.11, subdivision 16, if any, must also be listed on the tax statement.
(b) The property tax statements for manufactured homes and sectional structures taxed as personal property shall contain the same information that is required on the tax statements for real property.
(c) Real and personal property tax statements must contain the following information in the order given in this paragraph. The information must contain the current year tax information in the right column with the corresponding information for the previous year in a column on the left:
(1) the property's estimated market value under section 273.11, subdivision 1;
(2) the property's homestead market value exclusion under section 273.13, subdivision 35;
(3) the property's taxable market value under section 272.03, subdivision 15;
(4) the property's gross tax, before credits;
(5) for homestead agricultural properties, the credit under section 273.1384;
(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit received under section 273.135 must be separately stated and identified as "taconite tax relief"; and
(7) the net tax payable in the manner required in paragraph (a).
(d) If a city or county is subject to a
petition of the voters due to a general levy increase as provided in section
275.80, the tax statement must also include the general levy for the current
year and the previous year for that city or county along with the following
statement:
"Because the governing body of
....... increased its nonvoter approved levy in the current year, the voters in
that jurisdiction have the right to petition for a referendum on that
jurisdiction's levy amount under section 275.80. To invoke the referendum, a petition signed
by voters equal to ten percent of the votes cast in the last general election
on this issue must be filed with the county auditor by June 30 of the current
year."
(e) If the county uses envelopes for mailing property tax statements and if the county agrees, a taxing district may include a notice with the property tax statement notifying taxpayers when the taxing district will begin its budget deliberations for the current year, and encouraging taxpayers to attend the hearings. If the county allows
notices to be included in the envelope containing the property tax statement, and if more than one taxing district relative to a given property decides to include a notice with the tax statement, the county treasurer or auditor must coordinate the process and may combine the information on a single announcement.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2016 and thereafter.
Sec. 13. Minnesota Statutes 2014, section 412.221, subdivision 2, is amended to read:
Subd. 2. Contracts. The council shall have power to make such
contracts as may be deemed necessary or desirable to make effective any power
possessed by the council. The city may
purchase personal property through a conditional sales contract and real
property through a contract for deed under which contracts the seller is confined
to the remedy of recovery of the property in case of nonpayment of all or part
of the purchase price, which shall be payable over a period of not to exceed
five years. When the contract price of
property to be purchased by contract for deed or conditional sales contract
exceeds 0.24177 percent of the estimated market value of the city, the city may
not enter into such a contract for at least ten days after publication in the
official newspaper of a council resolution determining to purchase property by
such a contract; and, if before the end of that time a petition asking for an
election on the proposition signed by voters equal to ten percent of the number
of voters at the last regular city election is filed with the clerk, the city
may not enter into such a contract until the proposition has been approved by a
majority of the votes cast on the question at a regular or special an
election held on the first Tuesday after the first Monday in November of
either an even-numbered or odd-numbered year.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 14. Minnesota Statutes 2014, section 412.301, is amended to read:
412.301
FINANCING PURCHASE OF CERTAIN EQUIPMENT.
(a) The council may issue certificates of indebtedness or capital notes subject to the city debt limits to purchase capital equipment.
(b) For purposes of this section, "capital equipment" means:
(1) public safety equipment, ambulance and other medical equipment, road construction and maintenance equipment, and other capital equipment; and
(2) computer hardware and software, whether bundled with machinery or equipment or unbundled, together with application development services and training related to the use of the computer hardware or software.
(c) The equipment or software must have an expected useful life at least as long as the terms of the certificates or notes.
(d) Such certificates or notes shall be payable in not more than ten years and shall be issued on such terms and in such manner as the council may determine.
(e) If the amount of the certificates or notes to be issued to finance any such purchase exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall not be issued for at least ten days after publication in the official newspaper of a council resolution determining to issue them; and if before the end of that time, a petition asking for an election on the proposition signed by voters equal to ten percent of the number of voters at the last regular municipal election is filed with the clerk, such certificates or notes shall not be issued until the
proposition
of their issuance has been approved by a majority of the votes cast on the
question at a regular or special an election held on the first
Tuesday after the first Monday in November of either an even-numbered or odd‑numbered
year.
(f) A tax levy shall be made for the payment of the principal and interest on such certificates or notes, in accordance with section 475.61, as in the case of bonds.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 15. [416.17]
VOTER APPROVAL REQUIRED; LEASES OF PUBLIC BUILDINGS.
Subdivision 1. Reverse
referendum; certain leases. (a)
Before executing a qualified lease, a municipality must publish notice of its
intention to execute the lease and the date and time of a hearing to obtain
public comment on the matter. The notice
must be published in the official newspaper of the municipality or in a
newspaper of general circulation in the municipality, must be placed
prominently on any official municipality Web site, and must include a statement
of the amount of the obligations to be issued by the authority and the maximum
amount of annual rent to be paid by the municipality under the qualified lease. The notice must be published at least 14, but
not more than 28, days before the date of the hearing.
(b) A municipality may enter a lease
subject to paragraph (a) only upon obtaining the approval of a majority of the
voters voting on the question of issuing the obligations, if a petition
requesting a vote on the issuance is signed by voters equal to five percent of
the votes cast in the municipality in the last general election and is filed
with the county auditor within 30 days after the public hearing.
Subd. 2. Definitions. (a) For purposes of this section, the
following terms have the meanings given them.
(b) "Authority" includes any
of the following governmental units, the boundaries of which include all or
part of the geographic area of the municipality:
(1) a housing and redevelopment
authority, as defined in section 469.002;
(2) a port authority, as defined in
section 469.048;
(3) an economic development authority, as defined in section 469.090; or
(4) an entity established or exercising
powers under a special law with powers similar to those of an entity described
in clauses (1) to (3).
(c) "Municipality" means a
statutory or home rule charter city, a county, or a town described in section
368.01, but does not include a city of the first class, however organized, as
defined in section 410.01.
(d) "Qualified lease" means a
lease for use of public land, all or part of a public building, or other public
facilities consisting of real property for a term of three or more years as a
lessee if the property to be leased to the municipality was acquired or
improved with the proceeds of obligations, as defined in section 475.51,
subdivision 3, issued by an authority.
Sec. 16. Minnesota Statutes 2014, section 426.19, subdivision 2, is amended to read:
Subd. 2. Referendum in certain cases. Before the pledge of any such revenues to the payment of any such bonds, warrants or certificates of indebtedness, except bonds, warrants or certificates of indebtedness to construct, reconstruct, enlarge or equip a municipal liquor store shall be made, the governing body shall submit to the voters of
the
city the question of whether such revenues shall be so pledged and such pledge
shall not be binding on the city until it shall have been approved by a
majority of the voters voting on the question at either a general an
election or special election called for that purpose held on the
first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year. No election shall
be required for pledge of such revenues for payment of bonds, warrants or
certificates of indebtedness to construct, reconstruct, enlarge or equip a
municipal liquor store.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 17. Minnesota Statutes 2014, section 447.045, subdivision 2, is amended to read:
Subd. 2. Statutory
city; on-sale and off-sale store. If
the voters of a statutory city operating an on-sale and off-sale municipal
liquor store, at a general or special an election held on the
first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year, vote in favor of contributing from its liquor dispensary
fund toward the construction of a community hospital, the city council may
appropriate not more than $60,000 from the fund to any incorporated nonprofit
hospital association to build a community hospital in the statutory city. The hospital must be governed by a board
including two or more members of the statutory city council and be open to all
residents of the statutory city on equal terms.
This appropriation must not exceed one-half the total cost of
construction of the hospital. The
council must not appropriate the money unless the average net earnings of the
on-sale and off-sale municipal liquor store have been at least $10,000 for the
last five completed fiscal years before the date of the appropriation.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 18. Minnesota Statutes 2014, section 447.045, subdivision 3, is amended to read:
Subd. 3. Statutory
city; off-sale or on- and off-sale store.
(a) If a statutory city operates an off-sale, or an on- and
off-sale municipal liquor store it may provide for a vote at a general or
special an election held on the first Tuesday after the first
Monday in November of either an even-numbered or odd-numbered year on the
question of contributing from the city liquor dispensary fund to build,
maintain, and operate a community hospital.
If the vote is in favor, the city council may appropriate money from the
fund to an incorporated hospital association for a period of four years. The appropriation must be from the net
profits or proceeds of the municipal liquor store. It must not exceed $4,000 a year for hospital
construction and maintenance or $1,000 a year for operation. The hospital must be open to all residents of
the community on equal terms.
(b) The council must not appropriate the money unless the average net earnings of the off-sale, or on- and off‑sale municipal liquor store have been at least $8,000 for the last two completed years before the date of the appropriation.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 19. Minnesota Statutes 2014, section 447.045, subdivision 4, is amended to read:
Subd. 4. Fourth
class city operating store. If a
city of the fourth class operates a municipal liquor store, it may provide for
a vote at a general or special an election held on the first
Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year on the question of contributing from the profit in the
city liquor dispensary fund to build, equip, and maintain a community hospital
within the city limits. If the vote is
in favor, the city council may appropriate not more than $200,000 from profits
in the fund for the purpose. The
hospital must be open to all residents of the city on equal terms.
The city may issue certificates of indebtedness in anticipation of and payable only from profits from the operation of municipal liquor stores.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 20. Minnesota Statutes 2014, section 447.045, subdivision 6, is amended to read:
Subd. 6. Statutory
city; fourth class. If a fourth
class statutory city operates a municipal liquor store, it may provide for a
vote at a general or special an election held on the first
Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year on the question of contributing from the city liquor
dispensary fund not more than $15,000 a year for five years to build and
maintain a community hospital. If the
vote is in favor the council may appropriate the money from the fund to an
incorporated community hospital association in the city.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 21. Minnesota Statutes 2014, section 447.045, subdivision 7, is amended to read:
Subd. 7. Statutory
city; any store. If a statutory city
operates a municipal liquor store, it may provide for a vote at a general or
special an election held on the first Tuesday after the first
Monday in November of either an even-numbered or odd-numbered year on the
question of contributing from the statutory city liquor dispensary fund toward
the acquisition, construction, improvement, maintenance, and operation of a
community hospital. If the vote is in
favor, the council may appropriate money from time to time out of the net
profits or proceeds of the municipal liquor store to an incorporated nonprofit
hospital association in the statutory city.
The hospital association must be governed by a board of directors
elected by donors of $50 or more, who each have one vote. The hospital must be open to all residents of
the community on equal terms.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 22. Minnesota Statutes 2014, section 452.11, is amended to read:
452.11
SUBMISSION TO VOTERS.
No city of the first class shall acquire
or construct any public utility under the terms of sections 452.08 to 452.13
unless the proposition to acquire or construct same has first been submitted to
the qualified electors of the city at a general city election or at a
special election called for that purpose, held on the first Tuesday
after the first Monday in November of either an even-numbered or odd-numbered
year and has been approved by a majority vote of all electors voting
upon the proposition.
The question of issuing public utility certificates as provided in section 452.09 may, at the option of the council, be submitted at the same election as the question of the acquisition or construction of the public utility.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 23. Minnesota Statutes 2014, section 455.24, is amended to read:
455.24
SUBMISSION TO VOTERS.
Before incurring any expense under the
powers conferred by section 455.23, the approval of the voters of the city
shall first be had at a general or special an election held therein
on the first Tuesday after the first Monday in November of either an
even-numbered or odd-numbered year. If
a majority of the voters of the city participating at the election shall vote
in favor of the construction of the system of poles, wires and cables herein
authorized to be made, the council shall proceed with the construction.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 24. Minnesota Statutes 2014, section 455.29, is amended to read:
455.29
MUNICIPALITIES MAY EXTEND ELECTRIC SERVICE.
Except as otherwise restricted by chapter
216B, the governing body, or the commission or board charged with the operation
of the public utilities, if one exists therein, of any municipality in the
state owning and operating an electric light and power plant for the purpose of
the manufacture and sale of electrical power or for the purchase and
redistribution of electrical power, may, upon a two-thirds vote of the
governing body, or the commission or board, in addition to all other powers now
possessed by such municipality, sell electricity to customers, singly or
collectively, outside of such municipality, within the state but not to exceed
a distance of 30 miles from the corporate limits of the municipality. Before any municipality shall have the power
to extend its lines and sell electricity outside of the municipality as
provided by sections 455.29 and 455.30, the governing body shall first submit
to the voters of the municipality, at a general or special an
election held on the first Tuesday after the first Monday in November of
either an even-numbered or odd-numbered year, the general principle of
going outside the municipality and fixing the maximum amount of contemplated
expenditures reasonably expected to be made for any and all extensions then or
thereafter contemplated. Three weeks'
published notice shall be given of such election as required by law, and if a
majority of those voting upon the proposition favors the same, then the
municipality shall thereafter be considered as having chosen to enter the
general business of extending its electric light and power facilities beyond
the corporate limits of the municipality.
It shall not be necessary to submit to a vote of the people the question
of any specific enlargement, extension, or improvement of any outside lines;
provided the voters of the municipality have generally elected to exercise the
privileges afforded by sections 455.29 and 455.30, and, provided, that each and
any specific extension, enlargement, or improvement project is within the limit
of the maximum expenditure authorized at the election. In cities operating under a home rule
charter, where a vote of the people is not now required in order to extend
electric light and power lines, no election shall be required under the
provisions of any act. At any election
held to determine the attitude of the voters upon this principle, the question
shall be simply stated upon the ballot provided therefor, and shall be substantially
in the following form: "Shall the
city of ..................... undertake the general proposition of extending
its electric light and power lines beyond the limits of the municipality, and
limit the maximum expenditures for any and all future extensions to the sum of
$....................?" For this
purpose every municipality is authorized and empowered to extend the lines,
wires, and fixtures of its plant to such customers and may issue certificates
of indebtedness therefor in an amount not to exceed the actual cost of the
extensions and for a term not to exceed the reasonable life of the extensions. These certificates of indebtedness shall in
no case be made a charge against the municipality, but shall be payable and
paid out of current revenues of the plant other than taxes.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 25. Minnesota Statutes 2014, section 459.06, subdivision 1, is amended to read:
Subdivision 1. Accept
donations. Any county, city, or town
may by resolution of its governing body accept donations of land that the
governing body deems to be better adapted for the production of timber and wood
than for any other purpose, for a forest, and may manage it on forestry
principles. The donor of not less than
100 acres of any such land shall be entitled to have the land perpetually bear
the donor's name. The governing body of
any city or town, when funds are available or have been levied therefor, may,
when authorized by a majority vote by ballot of the voters voting at any general
or special city election held on the first Tuesday after the first
Monday in November of either an even-numbered or odd-numbered year or the
annual town meeting where the question is properly submitted, purchase or
obtain by condemnation proceedings, and preferably at the sources of streams,
any tract of land for a forest which is better adapted for the production of
timber and wood than for any other purpose, and which is conveniently located
for the purpose, and manage it on forestry principles. The city or town may annually levy a tax on
all taxable property within its boundaries to procure and maintain such
forests.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 26. Minnesota Statutes 2014, section 469.053, subdivision 5, is amended to read:
Subd. 5. Reverse
referendum. A city may increase its
levy for port authority purposes under subdivision 4 only as provided in this
subdivision. Its city council must first
pass a resolution stating the proposed amount of levy increase. The city must then publish the resolution
together with a notice of public hearing on the resolution for two successive
weeks in its official newspaper or, if none exists, in a newspaper of general
circulation in the city. The hearing
must be held two to four weeks after the first publication. After the hearing, the city council may
decide to take no action or may adopt a resolution authorizing the proposed
increase or a lesser increase. A
resolution authorizing an increase must be published in the city's official
newspaper or, if none exists, in a newspaper of general circulation in the city. The resolution is not effective if a petition
requesting a referendum on the resolution is filed with the city clerk within
30 days of publication of the resolution.
The petition must be signed by voters equaling five percent of the votes
cast in the city in the last general election.
The resolution is effective if approved by a majority of those voting on
the question. The commissioner of
revenue shall prepare a suggested form of referendum question. The referendum must be held at a special
or general an election before October 1 of the year for which the
levy increase is proposed conducted on the first Tuesday after the first
Monday in November of either an even-numbered or odd-numbered year. If approved by the voters, the levy increase
may take effect no sooner than the next calendar year.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 27. Minnesota Statutes 2014, section 469.0724, is amended to read:
469.0724
GENERAL OBLIGATION BONDS.
The port authority of Cannon Falls or Redwood Falls must not proceed with the sale of general obligation tax‑supported bonds until the city council by resolution approves the proposed issuance. The resolution must be published in the official newspaper. If, within 30 days after the publication, a petition signed by voters equal in number to ten percent of the number of voters at the last regular city election is filed with the city clerk, the city and
port
authority must not issue the general obligation tax-supported bonds until the
proposition has been approved by a majority of the votes cast on the question
at a regular or special an election held on the first Tuesday
after the first Monday in November of either an even-numbered or odd-numbered
year.
EFFECTIVE DATE. This section is effective for the city
of Cannon Falls and the city of Redwood Falls the day after the governing body
and chief clerical officer of the city timely comply with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
Sec. 28. Minnesota Statutes 2014, section 469.107, subdivision 2, is amended to read:
Subd. 2. Reverse referendum. A city may increase its levy for economic
development authority purposes under subdivision 1 in the following way. Its city council must first pass a resolution
stating the proposed amount of levy increase.
The city must then publish the resolution together with a notice of
public hearing on the resolution for two successive weeks in its official
newspaper or if none exists in a newspaper of general circulation in the city. The hearing must be held two to four weeks
after the first publication. After the
hearing, the city council may decide to take no action or may adopt a
resolution authorizing the proposed increase or a lesser increase. A resolution authorizing an increase must be
published in the city's official newspaper or if none exists in a newspaper of
general circulation in the city. The
resolution is not effective if a petition requesting a referendum on the
resolution is filed with the city clerk within 30 days of publication of the
resolution. The petition must be signed
by voters equaling five percent of the votes cast in the city in the last
general election. The election must be
held at a general or special an election held on the first
Tuesday after the first Monday in November of either an even‑numbered or
odd-numbered year. Notice of the
election must be given in the manner required by law. The notice must state the purpose and amount
of the levy.
EFFECTIVE DATE. Except as otherwise provided, this act
is effective August 1, 2015, and applies to any referendum authorized on or
after that date.
Sec. 29. Minnesota Statutes 2014, section 469.190, subdivision 1, is amended to read:
Subdivision 1. Authorization. Notwithstanding section 477A.016 or any
other law, a statutory or home rule charter city may by ordinance, and a town
may by the affirmative vote of the electors at the annual town meeting, or
at a special town meeting, impose a tax of up to three percent on the gross
receipts from the furnishing for consideration of lodging at a hotel, motel,
rooming house, tourist court, or resort, other than the renting or leasing of
it for a continuous period of 30 days or more.
A statutory or home rule charter city may by ordinance impose the tax
authorized under this subdivision on the camping site receipts of a municipal
campground.
EFFECTIVE DATE. Except as otherwise provided, this act
is effective August 1, 2015, and applies to any referendum authorized on or
after that date.
Sec. 30. Minnesota Statutes 2014, section 469.190, subdivision 5, is amended to read:
Subd. 5. Reverse referendum. If the county board passes a resolution under subdivision 4 to impose the tax, the resolution must be published for two successive weeks in a newspaper of general circulation within the unorganized territory, together with a notice fixing a date for a public hearing on the proposed tax.
The hearing must be held not less than two weeks nor more than four weeks after the first publication of the notice. After the public hearing, the county board may determine to take no further action, or may adopt a resolution authorizing the tax as originally proposed or approving a lesser rate of tax. The resolution must be published in a newspaper of general circulation within the unorganized territory. The voters of the unorganized territory may request a referendum on the proposed tax by filing a petition with the county auditor within 30 days after the resolution is published. The petition must be signed by voters who reside in the unorganized territory. The number
of
signatures must equal at least five percent of the number of persons voting in
the unorganized territory in the last general election. If such a petition is timely filed, the
resolution is not effective until it has been submitted to the voters residing
in the unorganized territory at a general or special an election held
on the first Tuesday after the first Monday in November of either an
even-numbered or odd-numbered year and a majority of votes cast on the
question of approving the resolution are in the affirmative. The commissioner of revenue shall prepare a
suggested form of question to be presented at the referendum.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 31. Minnesota Statutes 2014, section 471.57, subdivision 3, is amended to read:
Subd. 3. May
use fund for other purposes upon vote. The
council of any municipality which has established a public works reserve fund
by an ordinance designating the specific improvement or type of capital
improvement for which the fund may be used may submit to the voters of the
municipality at any regular or special an election held on the
first Tuesday after the first Monday in November of either an even-numbered or
odd-numbered year the question of using the fund for some other purpose. If a majority of the votes cast on the
question are in favor of such diversion from the original purpose of the fund,
it may be used for any purpose so approved by the voters.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 32. Minnesota Statutes 2014, section 471.571, subdivision 3, is amended to read:
Subd. 3. Expenditure
from fund, limitation. No
expenditure for any one project in excess of 60 percent of one year's levy or
$25,000, whichever is greater, may be made from such permanent improvement or
replacement fund in any year without first obtaining the approval of a majority
of the voters voting at a general or special municipal election held
on the first Tuesday after the first Monday in November of either an
even-numbered or odd‑numbered year at which the question of making
such expenditure has been submitted. In
submitting any proposal to the voters for approval, the amount proposed to be
spent and the purpose thereof shall be stated in the proposal submitted. The proceeds of such levies may be pledged
for the payment of any bonds issued pursuant to law for any purposes authorized
hereby and annual payments upon such bonds or interest may be made without
additional authorization.
EFFECTIVE
DATE. Except as otherwise
provided, this act is effective August 1, 2015, and applies to any referendum
authorized on or after that date.
Sec. 33. Minnesota Statutes 2014, section 471.572, subdivision 2, is amended to read:
Subd. 2. Tax
levy. The governing body of a city
may establish, by a two-thirds vote of all its members, by ordinance or
resolution a reserve fund and may annually levy a property tax for the support
of the fund. The proceeds of taxes levied
for its support must be paid into the reserve fund. Any other revenue from a source not required
by law to be paid into another fund for purposes other than those provided for
the use of the reserve fund may be paid into the fund. Before a tax is levied under this section,
the city must publish in the official newspaper of the city an initial
resolution authorizing the tax levy. If
within ten days after the publication a petition is filed with the city clerk
requesting an election on the tax levy signed by a number of qualified voters
greater than ten percent of the number who voted in the city at the last
general election, the tax may not be levied until the levy has been approved by
a majority of the votes cast on it at a regular or special an election
held on the first Tuesday after the first Monday in November of either an
even-numbered or odd-numbered year.
EFFECTIVE DATE.