STATE OF
MINNESOTA
EIGHTY-NINTH
SESSION - 2016
_____________________
ONE
HUNDRED SIXTH DAY
Saint Paul, Minnesota, Sunday, May 22, 2016
The House of Representatives convened at
10:00 a.m. and was called to order by Tim O’Driscoll, Speaker pro tempore.
Prayer was offered by Representative Mary
Murphy, District 3B, Hermantown, 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:
Albright
Anderson, C.
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
Drazkowski
Ecklund
Erhardt
Erickson
Fabian
Fenton
Fischer
Flanagan
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
Kiel
Knoblach
Koznick
Laine
Lesch
Liebling
Lien
Lillie
Loeffler
Lohmer
Loon
Loonan
Lucero
Lueck
Mahoney
Marquart
Masin
McDonald
McNamara
Melin
Metsa
Miller
Moran
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
Yarusso
Youakim
Zerwas
Spk. Daudt
A quorum was present.
Mullery was excused until 11:35 a.m. Mack was excused until 11:40 a.m. Allen and Mariani were excused until 11:45
a.m. Kelly was excused until 12:35
p.m. Kresha was excused until 6:20 p.m.
The Chief Clerk proceeded to read the
Journal of the preceding day. There
being no objection, further reading of the Journal was dispensed with and the
Journal was approved as corrected by the Chief Clerk.
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 Speaker pro tempore Sanders.
INTRODUCTION AND FIRST READING OF HOUSE BILLS
The following House Files were introduced:
Peterson; Baker; Lohmer; Fenton; Anderson, C.; Theis; Uglem; Pugh; Daniels; Christensen; Wills; Knoblach; Davids; Urdahl; Bennett; Smith and McNamara introduced:
H. F. No. 4027, A bill for an act relating to employment; authorizing family and medical leave savings accounts; providing tax deductions for amounts deposited in family and medical leave savings accounts; exempting amounts deposited from state withholding taxes; providing a family and medical leave savings account tax credit; authorizing grants to small business development centers; appropriating money; amending Minnesota Statutes 2014, sections 290.01, subdivision 19b; 290.06, subdivision 2c; 290.091, subdivision 2; 290.92, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 181; 290.
The bill was read for the first time and referred to the Committee on Job Growth and Energy Affordability Policy and Finance.
Loeffler introduced:
H. F. No. 4028, A bill for an act relating to human services; authorizing the commissioner of human services to develop a plan to increase the minimum hourly pay for direct service staff; requiring a report.
The bill was read for the first time and referred to the Committee on Health and Human Services Reform.
Hortman and Simonson introduced:
H. F. No. 4029, A bill for an act relating to energy; establishing the Renewables First Initiative; requiring electric utilities to replace retiring nonrenewable electric generation with renewable energy and other clean energy resources if reliable and cost-effective; amending Minnesota Statutes 2014, section 216B.2422, subdivision 4, by adding a subdivision; Minnesota Statutes 2015 Supplement, section 216B.2425, by adding a subdivision.
The bill was read for the first time and referred to the Committee on Job Growth and Energy Affordability Policy and Finance.
Pugh, Whelan, Lucero, Hertaus and Scott introduced:
H. F. No. 4030, A bill for an act relating to transportation; requiring certain acknowledgment on driver's license and Minnesota identification card applications; amending Minnesota Statutes 2014, section 171.06, subdivision 3.
The bill was read for the first time and referred to the Committee on Transportation Policy and Finance.
CALENDAR FOR THE DAY
S. F. No. 877 was reported to the House.
Kiel moved to amend S. F. No. 877, the fourth engrossment, as follows:
Delete everything after the enacting clause and insert the following language of H. F. No. 963, the third engrossment:
"Section 1. Minnesota Statutes 2014, section 216B.62, is amended by adding a subdivision to read:
Subd. 5b. Assessments
for certain right-of-way proceedings.
The commission and department may charge a railroad, as defined
in section 237.045, subdivision 1, paragraph (e), and a utility as defined in
section 237.045, subdivision 1, paragraph (f), for the railroad and utility's proportionate
share of expenses incurred by the commission and department in the review and
disposition of disputes contained in petitions filed under section 237.045. A railroad or utility that objects to an
assessment of the commission or department made under this subdivision has the
same right to appeal the assessment under subdivision 4 as does a public
utility.
Sec. 2. [237.045]
RAILROAD RIGHTS-OF-WAY; CROSSING OR PARALLELING BY UTILITIES.
Subdivision
1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given them.
(b) "Crossing" means a
utility facility constructed over, under, or across a railroad right-of-way. The term does not include longitudinal
occupancy of railroad right-of-way.
(c) "Facility" or "utility
facility" means any item of personal property placed over, across, or
underground for use in connection with the storage or conveyance of:
(1) water;
(2) sewage;
(3) electronic, telephone, or
telegraphic communications;
(4) fiber optics;
(5) cable television;
(6) electric energy;
(7) oil;
(8)
natural gas; or
(9) hazardous liquids.
Facility includes, but is not limited to, pipes, sewers,
conduits, cables, valves, lines, wires, manholes, and attachments.
(d) "Parallel" or
"paralleling" means a utility facility that runs adjacent to and
alongside the lines of a railroad for no more than one mile, or another
distance agreed to by the parties, after which the utility facility crosses the
railroad lines, terminates, or exits the railroad right-of-way.
(e) "Railroad" means any
association, corporation, or other entity engaged in operating a common carrier
by rail, or its agents or assigns, including
any entity responsible for the management of crossings or collection of
crossing fees.
(f) "Utility" means
cooperative electric association, electric utility, public utility,
transmission company, gas utility, municipal utility, municipal power agency,
municipality, joint action agency, pipeline company, rural water system, or
telephone, telegraph, telecommunications, cable, or fiber optic carrier. Utility includes contractors or agents.
Subd. 2. Application. (a) This section applies to:
(1) any crossing in existence before
the effective date of this section if an agreement concerning the crossing has
expired or has been terminated. In such
instance, if the collective amount that equals or exceeds the standard crossing
fee under subdivision 6 has been paid to the railroad during the existence of
the crossing, no additional fee is required; and
(2) any crossing commenced on or after
the effective date of this section.
(b) This section does not apply to a
crossing or paralleling of a large energy facility, as defined in section
216B.2421, subdivision 2, regardless of length.
Subd. 3. Right-of-way
crossing; application for permission.
(a) Any utility that intends to place a facility across or upon a
railroad right-of-way shall request prior permission from the railroad.
(b) The request must be in the form of
a completed crossing application, including an engineering design showing the
location of the proposed crossing and the railroad's property, tracks, and
wires that the utility will cross. The
engineering design must conform with guidelines published in the most recent
edition of the (1) National Electric Safety Code, or (2) Manual for Railway
Engineering of the American Railway Engineering and Maintenance-of-Way
Association. The utility must submit the
crossing application on a form provided or approved by the railroad, if
available.
(c) The application must be accompanied
by the standard crossing fee specified in subdivision 6 and evidence of
insurance as required in subdivision 7. The
utility must send the application to the railroad by certified mail, with
return receipt requested.
(d) Within 15 calendar days of receipt
of an application that is not complete, the railroad must inform the applicant
regarding any additional necessary information and submittals.
Subd. 4. Inductive
interference study. (a) A
railroad may require an electric utility to conduct an inductive interference
study if:
(1)
the facility is for an electric energy transmission line of at least 125
kilovolts; and
(2) in accordance with guidelines in
the National Electric Safety Code and the Manual for Railway Engineering of the
American Railway Engineering and Maintenance-of-Way Association, the railroad
reasonably determines that the proposed facility poses a material possibility
of creating induction issues or interference with railroad property.
(b) The utility must arrange and pay
for the study, perform and pay for any costs of modifications to the proposed
facility, and pay for any costs of modifications to railroad property that are
necessary to ensure safe and reliable railroad operations. The study must be performed by a qualified
engineer approved by the railroad.
(c) A utility facility for which an
inductive interference study has been performed under this subdivision may not
be energized until at least 30 calendar days after the railroad receives notice
from the utility that the facility is ready to be energized. Within 30 days of receiving notice that the
facility is ready to be energized, the railroad shall conduct any appropriate
tests to ensure that there will not be any interference with safe operation of
the railroad following energization.
Subd. 5. Right-of-way
crossing; construction. Beginning
35 calendar days after the receipt by the railroad of a completed crossing
application, crossing fee, and certificate of insurance, the utility may
commence the construction of the crossing unless the railroad notifies the
utility in writing that the proposed crossing or paralleling is a serious
threat to the safe operations of the railroad or to the current use of the
railroad right-of-way.
Subd. 6. Standard
crossing fee. (a) Unless
otherwise agreed by the parties or determined under section 237.04, a utility
that crosses a railroad right-of-way, other than a crossing within a public
right-of-way, must pay the railroad a onetime standard crossing fee of $1,250,
adjusted as provided in paragraph (e), for each crossing. Except as otherwise provided in this
subdivision, the standard crossing fee is paid in lieu of any license, permit,
application, processing fee, or any other fee or charge to reimburse the
railroad for direct expenses incurred by the railroad as a result of the
crossing. No other fee or charge may be
assessed to the utility by the railroad.
(b) In addition to the standard
crossing fee, the utility shall also reimburse the railroad for any reasonable
and necessary flagging expense associated with a crossing, based on the
railroad traffic at the crossing.
(c) No crossing fee is required if the
crossing is located within a public right-of-way.
(d) The placement of a single conduit
and its content is a single facility. No
additional fees are payable based on the individual fibers, wires, lines, or
other items contained within the conduit.
(e) Annually each May 1, the standard
crossing fee under paragraph (a) must be adjusted based on the percentage
change in the annual average producer price index for the preceding year
compared to the year prior to the preceding year. Each adjustment is effective for applications
submitted on or after June 1. The
producer price index is final demand, finished consumer energy goods, as
prepared by the Bureau of Labor Statistics of the United States Department of
Labor.
Subd. 7. Certificate
of insurance; coverage. (a)
The certificate of insurance or coverage submitted by:
(1) a municipal utility or municipality
must include commercial general liability insurance or an equivalent form with
a limit of at least $1,000,000 for each occurrence and an aggregate of at least
$2,000,000;
(2) a utility providing natural gas
service must include commercial general liability insurance with a combined
single limit of at least $5,000,000 for each occurrence and an aggregate limit
of at least $10,000,000; or
(3)
a utility not specified in clauses (1) and (2) must include commercial general
liability insurance with a combined single limit of at least $2,000,000 for
each occurrence and an aggregate limit of at least $6,000,000.
(b) The railroad may require protective
liability insurance with a combined single limit of $2,000,000 for each
occurrence and $6,000,000 aggregate. The
coverage may be provided by a blanket railroad protective liability insurance
policy if the coverage, including the coverage limits, applies separately to
each individual crossing. The coverage
is required only during the period of construction, repair, or replacement of
the facility.
(c) The certificate of insurance shall
be from an insurer of the utility's choosing.
Subd. 8. Objection
to crossing; petition to Public Utilities Commission. (a) If a railroad objects to the
proposed crossing or paralleling due to the proposal being a serious threat to
the safe operations of the railroad or to the current use of the railroad
right-of-way, the railroad must notify the utility of the objection and the
specific basis for the objection. The railroad
shall send the notice of objection to the utility by certified mail, with
return receipt requested.
(b) If the parties are unable to
resolve the objection, either party may petition the Public Utilities
Commission for assistance via mediation or arbitration
of the disputed crossing application.
The petition must be filed within 60 days of receipt of the
objection. Before filing a petition, the
parties shall make good faith efforts to resolve the objection.
(c) If a petition is filed, the Public Utilities
Commission must issue an order within 120 days of filing of the petition. The order may be appealed under chapter 14
and section 216B.27. The Public
Utilities Commission must assess the costs associated with a petition equitably
among the parties.
Subd. 9. Additional
requirements; objection and petition to Public Utilities Commission. (a) If a railroad imposes additional
requirements on a utility for crossing its lines, other than the proposed
crossing being a serious threat to the safe operations of the railroad or to
the current use of the railroad right-of-way, the utility may object to one or
more of the requirements. If it objects,
the utility shall provide notice of the objection and the specific basis for
the objection to the railroad by certified mail, with return receipt requested.
(b) If the parties are unable to
resolve the objection, either party may petition the Public Utilities
Commission for resolution or modification of the additional requirements. The petition must be filed within 60 days of
receipt of the objection. Before filing
a petition, the parties shall make good faith efforts to resolve the objection.
(c) If a petition is filed, the Public
Utilities Commission shall determine, after notice and opportunity for hearing,
whether special circumstances exist that necessitate additional requirements
for the placement of the crossing. The
Public Utilities Commission must issue an order within 120 days of filing of
the petition. The order may be appealed
under chapter 14 and section 216B.27. The
Public Utilities Commission shall assess the costs associated with a petition
equitably among the parties.
Subd. 10. Operational
relocation. (a) A railroad
may require a utility to relocate a facility when the railroad determines that
relocation is essential to accommodate railroad operations, and the relocation
is not arbitrary or unreasonable. Before
agreeing to the relocation, a utility may require a railroad to provide a
statement and supporting documentation identifying the operational necessity
for requesting the relocation. A utility
must perform the relocation within a reasonable period of time following the
agreement.
(b) Relocation is at the expense of the
small utility. A standard fee under
subdivision 6 may not be imposed for relocation.
Subd. 11. Existing
agreements. Nothing in this
section prevents a railroad and a utility from continuing under an existing
agreement, or from otherwise negotiating the terms and conditions applicable to
a crossing or the resolution of any disputes relating to the crossing. A utility may elect to undertake a crossing
or paralleling under this section or section 237.04. Nothing in this section impairs the authority
of a utility to secure crossing rights by easement through exercise of the
power of eminent domain.
Sec. 3. APPROPRIATION.
$80,000 in fiscal year 2017 is
appropriated from the general fund to the Public Utilities Commission for the purposes of section 2. This appropriation is added to the
appropriation in Laws 2015, First Special Session chapter 1, article 1,
section 9. The base for this
appropriation in fiscal year 2018 and after is $21,000."
Delete the title and insert:
"A bill for an act relating to utilities; establishing requirements relating to crossing railroad rights-of-way by utilities; appropriating money; amending Minnesota Statutes 2014, section 216B.62, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 237."
The motion prevailed and the amendment was adopted.
Kiel moved to amend S. F. No. 877, the fourth engrossment, as amended, as follows:
Page 4, after line 34, insert:
"(c) The insurance coverage under paragraphs (a) to (b) must not contain an exclusion or limitation related to railroads or to activities within 50 feet of railroad property."
Page 4, line 35, delete "(c)" and insert "(d)" and delete "shall" and insert "must"
The motion prevailed and the amendment was adopted.
Swedzinski moved to amend S. F. No. 877, the fourth engrossment, as amended, as follows:
Page 2, line 18, after the period, insert ""Railroad" does not include a regional rail authority as defined in section 398A.01, subdivision 2, that is owned by at least five counties. The exclusion for a regional rail authority sunsets July 1, 2021."
The motion did not prevail and the amendment was not adopted.
S. F. No. 877, A bill for an act relating to utilities; providing assessment authority; establishing requirements relating to crossing railroad rights-of-way by utilities; amending Minnesota Statutes 2014, section 216B.62, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 237.
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 1 nay as follows:
Those who voted in the affirmative were:
Anderson, C.
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
Drazkowski
Ecklund
Erhardt
Erickson
Fabian
Fenton
Fischer
Flanagan
Franson
Freiberg
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Halverson
Hamilton
Hancock
Hansen
Hausman
Heintzeman
Hertaus
Hilstrom
Hoppe
Hortman
Howe
Isaacson
Johnson, B.
Johnson, C.
Johnson, S.
Kiel
Knoblach
Koznick
Laine
Lesch
Liebling
Lien
Lillie
Loeffler
Lohmer
Loon
Loonan
Lucero
Lueck
Mahoney
Marquart
Masin
McDonald
McNamara
Melin
Metsa
Miller
Moran
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
Yarusso
Youakim
Zerwas
Spk. Daudt
Those who voted in the negative were:
Albright
The bill was passed, as amended, and its title agreed to.
The following Conference Committee Reports were received:
CONFERENCE COMMITTEE REPORT ON H. F. No. 848
A bill for an act relating to financing and operation of state and local government; making changes to individual income, corporate franchise, property, sales and use, excise, estate, mineral, tobacco, gambling, special, local, and other taxes and tax-related provisions; providing for long-term care savings plans; modifying business income tax credits; modifying income tax subtractions and additions; modifying the definition of resident for income tax purposes; modifying the dependent care credit, education credit, and research credit; providing credits for MNsure premium payments, attaining a master's degree, student loan payments, college savings plans, and job training centers; modifying reciprocity provisions; providing an additional personal and dependent exemption; allowing a reverse referendum for property tax levies under certain circumstances; modifying dates for local referenda related to spending; changing proposed levy certification dates for special taxing districts; modifying general property tax provisions; providing for joint county and township assessment agreements; modifying the definition of agricultural homestead; modifying property classification definitions; permanently extending the market value exclusion for surviving spouses of deceased service members and permanently disabled veterans; modifying provisions for appeals and equalizations courses; providing a tax credit for overvalued property; modifying and phasing out the state general levy; modifying proposed levy provisions; modifying due dates for property taxes; changing
withdrawal procedures for the Sustainable Forest Incentive Program; authorizing valuation exclusion for certain improvements to homestead and commercial-industrial property; providing an increased estate tax exemption amount and other estate tax provisions; providing for certain economic development projects; providing for the Minnesota New Markets Jobs Act; restricting expenditures and other powers related to certain rail projects; providing for additional border city zone allocations; modifying general tax increment financing provisions; modifying provisions for the Destination Medical Center; modifying general and local sales and use tax provisions; modifying sales tax definitions and refunds related to petroleum and special fuel, durable medical equipment, instructional materials, propane tanks, bullion, capital equipment, and nonprofit groups; providing for a vendor allowance; providing exemptions for animal shelters, city celebrations, BMX tracks, and certain building and construction materials; repealing the tax on digital products; providing a separate rate for certain modular housing; modifying gambling taxes; providing a definition and rate of tax for vapor products under the tobacco tax; modifying cigarette stamp provisions; modifying rates for pull tabs sold at bingo halls; modifying miscellaneous tax provisions; modifying sales tax deposits, accounts, and provisions for transportation purposes; modifying local government aids and credits; providing for a school building bond agricultural credit; modifying assessor accreditation; accelerating the repeal of MinnesotaCare provider taxes; creating a county program aid working group; establishing trust fund accounts; providing trust fund payments to counties; modifying provisions related to payments in lieu of taxes for natural resources land; repealing the political contribution refund; making various conforming and technical changes; requiring reports; appropriating money; amending Minnesota Statutes 2014, sections 16A.726; 40A.18, subdivision 2; 62V.05, subdivision 5; 97A.055, subdivision 2; 97A.056, subdivision 1a, by adding subdivisions; 116J.8737, subdivisions 5, 12; 116P.02, subdivision 1, by adding a subdivision; 123B.63, subdivision 3; 126C.17, subdivision 9; 205.10, subdivision 1; 205A.05, subdivision 1; 216B.46; 237.19; 270A.03, subdivision 7; 270B.14, subdivision 17; 270C.13, subdivision 1; 270C.9901; 273.061, subdivision 4; 273.072, by adding a subdivision; 273.124, subdivision 14; 273.13, subdivisions 23, 25, 34; 274.014, subdivision 2; 275.025; 275.065, subdivisions 1, 3; 275.07, subdivisions 1, 2; 275.08, subdivision 1b; 275.60; 276.04, subdivisions 1, 2; 278.12; 279.01, subdivisions 1, 3; 279.37, subdivision 2; 282.01, subdivision 4; 282.261, subdivision 2; 289A.02, subdivision 7, as amended; 289A.10, subdivision 1; 289A.12, by adding a subdivision; 289A.20, subdivision 4; 289A.50, subdivision 1; 290.01, subdivisions 6, 7, 19, as amended, 19a, 19b, 19d, 29, 31, as amended; 290.06, by adding subdivisions; 290.067, subdivision 1; 290.0671, subdivisions 1, 6a; 290.0672, subdivision 2; 290.0674, subdivisions 1, 2, by adding a subdivision; 290.0677, subdivision 2; 290.068, subdivisions 1, 3, 6a, by adding a subdivision; 290.081; 290.091, subdivision 2; 290.191, subdivision 5; 290A.03, subdivision 15, as amended; 290C.10; 291.005, subdivision 1, as amended; 291.016, subdivision 3; 291.03, subdivisions 1, 1d; 296A.01, subdivision 12; 296A.08, subdivision 2; 296A.16, subdivision 2; 297A.61, subdivisions 3, 4, 38; 297A.62, subdivision 3; 297A.668, subdivisions 1, 2, 6a, 7; 297A.669, subdivision 14a; 297A.67, subdivisions 7a, 13a, by adding subdivisions; 297A.68, subdivisions 5, 19; 297A.70, subdivisions 4, 10, 14, by adding subdivisions; 297A.71, by adding subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.77, subdivision 3; 297A.815, subdivision 3; 297A.94; 297A.992, subdivisions 1, 6, 6a, by adding a subdivision; 297A.994, subdivision 4; 297E.02, subdivisions 1, 6; 297F.01, subdivision 19, by adding subdivisions; 297F.05, subdivisions 1, 3, by adding subdivisions; 297F.06, subdivisions 1, 4; 297F.08, subdivisions 5, 7, 8; 297F.09, subdivision 1; 297I.20, by adding a subdivision; 298.24, subdivision 1; 309.53, subdivision 3; 345.42, by adding a subdivision; 349.12, by adding a subdivision; 412.221, subdivision 2; 412.301; 426.19, subdivision 2; 447.045, subdivisions 2, 3, 4, 6, 7; 452.11; 455.24; 455.29; 459.06, subdivision 1; 469.053, subdivision 5; 469.0724; 469.107, subdivision 2; 469.169, by adding a subdivision; 469.174, subdivisions 12, 14; 469.175, subdivision 3; 469.176, subdivisions 4, 4c; 469.1761, by adding a subdivision; 469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; 469.190, subdivisions 1, 5; 469.40, subdivision 11, as amended; 469.43, by adding a subdivision; 469.45, subdivisions 1, 2; 469.47, subdivision 4, as amended; 471.57, subdivision 3; 471.571, subdivision 3; 471.572, subdivisions 2, 4; 473.13, by adding a subdivision; 473.39, by adding a subdivision; 473.446, subdivision 1; 473H.09; 473H.17, subdivision 1a; 475.59; 477A.013, subdivision 10, by adding a subdivision; 477A.017, subdivision 2, by adding a subdivision; 477A.03, subdivisions 2a, 2b; 477A.10; 477A.11, by adding subdivisions; 609.5316, subdivision 3; 611.27, subdivisions 13, 15; Laws 1980, chapter 511, sections 1, subdivision 2, as amended; 2, as amended; Laws 1991, chapter 291, article 8, section 27, subdivisions 3, as amended, 4, as amended, 5, 6; Laws 1996, chapter 471, article 3, section 51; Laws 1999, chapter 243, article 4,
section 18, subdivision 1, as amended; Laws 2008, chapter 366, article 7, section 20; Laws 2009, chapter 88, article 5, section 17, as amended; Laws 2011, First Special Session chapter 9, article 6, section 97, subdivision 6; Laws 2014, chapter 308, article 6, section 7; proposing coding for new law in Minnesota Statutes, chapters 11A; 16A; 16B; 116J; 116P; 117; 273; 274; 275; 290; 297A; 416; 459; 473; 477A; 609; proposing coding for new law as Minnesota Statutes, chapter 116X; repealing Minnesota Statutes 2014, sections 10A.322, subdivision 4; 13.4967, subdivision 2; 205.10, subdivision 3; 290.06, subdivision 23; 290.067, subdivisions 2, 2a, 2b; 297A.61, subdivisions 50, 51, 52, 53, 54, 55, 56; 297A.992, subdivision 12; 297F.05, subdivision 1a; 477A.017, subdivision 3; 477A.085; 477A.19; Minnesota Rules, part 4503.1400, subpart 4.
May 22, 2016
The Honorable Kurt L. Daudt
Speaker of the House of Representatives
The Honorable Sandra L. Pappas
President of the Senate
We, the undersigned conferees for H. F. No. 848 report that we have agreed upon the items in dispute and recommend as follows:
That the Senate recede from its amendments and that H. F. No. 848 be further amended as follows:
Delete everything after the enacting clause and insert:
"ARTICLE 1
PROPERTY TAX
Section 1.
[103C.333] COUNTY LEVY
AUTHORITY.
Notwithstanding any other law to the
contrary, a county levying a tax under section 103C.331 shall not include any
taxes levied under those authorities in the levy certified under section
275.07, subdivision 1, paragraph (a). A
county levying under section 103C.331 shall separately certify that amount, and
the auditor shall extend that levy as a special taxing district levy under
sections 275.066 and 275.07, subdivision 1, paragraph (b).
EFFECTIVE
DATE. This section is
effective for certifications made in 2016 and thereafter.
Sec. 2. Minnesota Statutes 2014, section 138.053, is amended to read:
138.053
COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR TOWNS.
The governing body of any home rule charter or statutory city or town may annually appropriate from its general fund an amount not to exceed 0.02418 percent of estimated market value, derived from ad valorem taxes on property or other revenues, to be paid to the historical society of its respective city, town, or county to be used for the promotion of historical work and to aid in defraying the expenses of carrying on the historical work in the county. No city or town may appropriate any funds for the benefit of any historical society unless the society is affiliated with and approved by the Minnesota Historical Society.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. [216B.1647]
PROPERTY TAX ADJUSTMENT; COOPERATIVE ASSOCIATION.
A cooperative electric association that
has elected to be subject to rate regulation under section 216B.026 is eligible
to file with the commission for approval of an adjustment for real and personal
property taxes, fees, and permits.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2014, section 272.02, is amended by adding a subdivision to read:
Subd. 100. Electric
generation facility; personal property.
(a) Notwithstanding subdivision 9, clause (a), attached
machinery, transformers, and other personal property that (1) is part of a
natural gas-fired combined heat and power facility, (2) generates electricity
and steam for at least partial consumption as part of an industrial use,
including corn processing, (3) is less than 80,000 kilowatts of installed
capacity, and (4) meets the requirements of this subdivision, are exempt.
(b) At the time of construction, the
facility must:
(1) be designed to utilize natural gas
as a primary fuel;
(2) not be owned by a public utility as
defined in section 216B.02, subdivision 4;
(3) be located within 15 miles of an
existing natural gas pipeline and within one mile of an existing electrical transmission
substation; and
(4) be located outside the metropolitan
area as defined in section 473.121, subdivision 2.
(c) Construction of the facility must
commence after January 1, 2015, and before January 1, 2019. Property eligible for this exemption does not
include electric transmission lines and interconnections, or gas pipelines and
interconnections, appurtenant to the property or the facility.
(d) In lieu of personal property taxes
each year, the owner of the combined heat and power facility shall pay a base
payment of 0.14 cents per kilowatt-hour of electricity produced by the facility
during the previous calendar year. In
addition to the base payment and in lieu of personal property taxes each year,
the owner of the combined heat and power facility shall pay an additional
payment of 0.08 cents per kilowatt-hour of electricity produced by the facility
during the previous calendar year if, during the previous calendar year, the
host township or city had an agreement with a municipal utilities commission to
share the cost of acquiring, developing, and marketing land for industrial
purposes, and under such agreement both the host township or city and the
municipal utilities commission provided funds during the previous calendar year
as part of a cost-sharing agreement. The
additional payment to be paid by the owner of the combined heat and power
facility shall be the lesser of 0.08 cents per kilowatt-hour of electricity
produced by the facility or 57 percent of the amount funded by the host township
or city during the previous calendar year pursuant to the aforementioned
cost-sharing agreement. The payments
imposed under this section shall be paid to the county treasurer for the
benefit of the host township or city, at the time and in the manner provided
for payment of property taxes under section 277.01, subdivision 3. If unpaid, the payments are subject to the
same enforcement, collection, and interest and penalties as delinquent personal
property taxes. Except to the extent
inconsistent with this section, sections 277.01 to 277.24 and 278.01 to 278.13
apply to the payments imposed under this section, and for purposes of those
sections the payments imposed under this section are considered personal
property taxes.
(e) The owner of the combined heat and
power facility 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 facility and the amount funded by the host township or
city in accordance with the cost-sharing agreement described
in
paragraph (d) during 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 payments due under
this section payable in the current year.
If an owner of the facility subject to taxation under this section fails
to file the report by the due date, the commissioner of revenue shall determine
the payments based upon the nameplate capacity of the system multiplied by a
capacity factor of 85 percent.
EFFECTIVE
DATE. This section is
effective for taxes payable beginning in 2017 and thereafter.
Sec. 5. Minnesota Statutes 2014, section 272.02, is amended by adding a subdivision to read:
Subd. 101. Electric
generation facility; personal property.
(a) Notwithstanding subdivision 9, clause (a), attached machinery
and other personal property that is part of an electric generation facility
with more than 35 megawatts and less than 40 megawatts of installed capacity
and that meets the requirements of this subdivision is exempt from taxes and
payments in lieu of taxes. The facility
must:
(1) be designed to utilize natural gas
as a primary fuel;
(2) be owned and operated by a
municipal power agency as defined in section 453.52, subdivision 8;
(3) be located within 800 feet of an
existing natural gas pipeline;
(4) satisfy a resource deficiency
identified in an approved integrated resource plan filed under section
216B.2422;
(5) be located outside the metropolitan
area as defined under section 473.121, subdivision 2; and
(6) have received, by resolution, the
approval of the governing bodies of the city and county in which it is located
for the exemption of personal property provided by this subdivision.
(b) Construction of the facility must
have been commenced after January 1, 2015, and before January 1, 2016. Property eligible for this exemption does not
include electric transmission lines and interconnections or gas pipelines and
interconnections appurtenant to the property or the facility.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2017 and thereafter.
Sec. 6. Minnesota Statutes 2014, section 272.162, is amended to read:
272.162
RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS.
Subdivision 1. Conditions restricting transfer. When a deed or other instrument conveying a parcel of land is presented to the county auditor for transfer or division under sections 272.12, 272.16, and 272.161, the auditor shall not transfer or divide the land or its net tax capacity in the official records and shall not certify the instrument as provided in section 272.12, if:
(a) The land conveyed is less than a whole parcel of land as charged in the tax lists;
(b) The part conveyed appears within the area of application of municipal or county subdivision regulations adopted and filed under section 394.35 or section 462.36, subdivision 1; and
(c) The part conveyed is part of or constitutes a subdivision as defined in section 462.352, subdivision 12.
Subd. 2. Conditions allowing transfer. (a) Notwithstanding the provisions of subdivision 1, the county auditor may transfer or divide the land and its net tax capacity and may certify the instrument if the instrument contains a certification by the clerk of the municipality or designated county planning official:
(a) (1) that the
municipality's or county's subdivision regulations do not apply;
(b) (2) that the subdivision
has been approved by the governing body of the municipality or county;
or
(c) (3) that the
restrictions on the division of taxes and filing and recording have been waived
by resolution of the governing body of the municipality or county in the
particular case because compliance would create an unnecessary hardship and
failure to comply would not interfere with the purpose of the regulations.
(b) If any of the conditions for certification by the municipality or county as provided in this subdivision exist and the municipality or county does not certify that they exist within 24 hours after the instrument of conveyance has been presented to the clerk of the municipality or designated county planning official, the provisions of subdivision 1 do not apply.
(c) If an unexecuted instrument is presented to the municipality or county and any of the conditions for certification by the municipality or county as provided in this subdivision exist, the unexecuted instrument must be certified by the clerk of the municipality or the designated county planning official.
Subd. 3. Applicability of restrictions. (a) This section does not apply to the exceptions set forth in section 272.12.
(b) This section applies only to land within municipalities or counties which choose to be governed by its provisions. A municipality or county may choose to have this section apply to the property within its boundaries by filing a certified copy of a resolution of its governing body making that choice with the auditor and recorder of the county in which it is located.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 7. Minnesota Statutes 2014, section 273.13, subdivision 34, is amended to read:
Subd. 34. Homestead of disabled veteran or family caregiver. (a) All or a portion of the market value of property owned by a veteran and serving as the veteran's homestead under this section is excluded in determining the property's taxable market value if the veteran has a service-connected disability of 70 percent or more as certified by the United States Department of Veterans Affairs. To qualify for exclusion under this subdivision, the veteran must have been honorably discharged from the United States armed forces, as indicated by United States Government Form DD214 or other official military discharge papers.
(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded, except as provided in clause (2); and
(2) for a total (100 percent) and permanent disability, $300,000 of market value is excluded.
(c) If a disabled veteran qualifying for a
valuation exclusion under paragraph (b), clause (2), predeceases the veteran's
spouse, and if upon the death of the veteran the spouse holds the legal or
beneficial title to the homestead and permanently resides there, the exclusion
shall carry over to the benefit of the veteran's spouse for the current
taxes payable year and for eight additional taxes payable years or until
such time as the spouse remarries, or sells, transfers, or otherwise disposes
of the property, whichever comes first. Qualification under this paragraph requires an
annual application under paragraph (h).
(d)
If the spouse of a member of any branch or unit of the United States armed forces
who dies due to a service‑connected cause while serving honorably in
active service, as indicated on United States Government Form DD1300 or DD2064,
holds the legal or beneficial title to a homestead and permanently resides
there, the spouse is entitled to the benefit described in paragraph (b), clause
(2), for eight taxes payable years, or until such time as the spouse
remarries or sells, transfers, or otherwise disposes of the property,
whichever comes first.
(e) If a veteran meets the disability criteria of paragraph (a) but does not own property classified as homestead in the state of Minnesota, then the homestead of the veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify for under paragraph (b).
(f) In the case of an agricultural homestead, only the portion of the property consisting of the house and garage and immediately surrounding one acre of land qualifies for the valuation exclusion under this subdivision.
(g) A property qualifying for a valuation exclusion under this subdivision is not eligible for the market value exclusion under subdivision 35, or classification under subdivision 22, paragraph (b).
(h) To qualify for a valuation exclusion under this subdivision a property owner must apply to the assessor by July 1 of each assessment year, except that an annual reapplication is not required once a property has been accepted for a valuation exclusion under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and the property continues to qualify until there is a change in ownership. For an application received after July 1 of any calendar year, the exclusion shall become effective for the following assessment year.
(i) A first-time application by a qualifying spouse for the market value exclusion under paragraph (d) must be made any time within two years of the death of the service member.
(j) For purposes of this subdivision:
(1) "active service" has the meaning given in section 190.05;
(2) "own" means that the person's name is present as an owner on the property deed;
(3) "primary family caregiver" means a person who is approved by the secretary of the United States Department of Veterans Affairs for assistance as the primary provider of personal care services for an eligible veteran under the Program of Comprehensive Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G; and
(4) "veteran" has the meaning given the term in section 197.447.
(k) The purpose of this provision of law providing a level of homestead property tax relief for gravely disabled veterans, their primary family caregivers, and their surviving spouses is to help ease the burdens of war for those among our state's citizens who bear those burdens most heavily.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 8. Minnesota Statutes 2014, section 275.025, subdivision 1, is amended to read:
Subdivision 1. Levy
amount. The state general levy is
levied against commercial-industrial property and seasonal residential
recreational property, as defined in this section. The state general levy base amount for
commercial-industrial property is $592,000,000 $762,664,000
for taxes payable in 2002 2017.
The state general levy base amount for seasonal-recreational property is
$43,111,000 for taxes payable in 2017.
For taxes payable in subsequent years, the each levy base
amount is increased each year by multiplying the levy base amount for the
prior year by the sum of one plus the rate of increase, if any, in the implicit price deflator for government consumption expenditures and gross investment for state and local governments prepared by the Bureau of Economic Analysts of the United States Department of Commerce for the 12-month period ending March 31 of the year prior to the year the taxes are payable. The tax under this section is not treated as a local tax rate under section 469.177 and is not the levy of a governmental unit under chapters 276A and 473F.
The commissioner shall increase or
decrease the preliminary or final rate rates for a year as
necessary to account for errors and tax base changes that affected a
preliminary or final rate for either of the two preceding years. Adjustments are allowed to the extent that
the necessary information is available to the commissioner at the time the
rates for a year must be certified, and for the following reasons:
(1) an erroneous report of taxable value by a local official;
(2) an erroneous calculation by the commissioner; and
(3) an increase or decrease in taxable value for commercial-industrial or seasonal residential recreational property reported on the abstracts of tax lists submitted under section 275.29 that was not reported on the abstracts of assessment submitted under section 270C.89 for the same year.
The commissioner may, but need not, make adjustments if the total difference in the tax levied for the year would be less than $100,000.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 9. Minnesota Statutes 2014, section 275.025, subdivision 2, is amended to read:
Subd. 2. Commercial-industrial
tax capacity. For the purposes of
this section, "commercial-industrial tax capacity" means the tax
capacity of all taxable property classified as class 3 or class 5(1) under
section 273.13, except for excluding:
(1) the first $100,000 of market value of each parcel of
commercial-industrial net tax capacity as defined under section 273.13,
subdivision 24, clauses (1) and (2); (2) electric generation attached
machinery under class 3; and (3) property described in section
473.625. County commercial-industrial
tax capacity amounts are not adjusted for the captured net tax capacity of a
tax increment financing district under section 469.177, subdivision 2, the net
tax capacity of transmission lines deducted from a local government's total net
tax capacity under section 273.425, or fiscal disparities contribution and
distribution net tax capacities under chapter 276A or 473F. For purposes of this subdivision, the
procedures for determining eligibility for tier 1 under section 273.13,
subdivision 24, clauses (1) and (2), shall apply in determining the portion of
a property eligible to be considered within the first $100,000 of market value.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 10. Minnesota Statutes 2014, section 275.025, subdivision 4, is amended to read:
Subd. 4. Apportionment
and levy of state general tax. Ninety-five
percent of The state general tax must be levied by applying a uniform rate
to all commercial-industrial tax capacity and five percent of the state
general tax must be levied by applying a uniform rate to all seasonal residential
recreational tax capacity. On or before
October 1 each year, the commissioner of revenue shall certify the
preliminary state general levy rates to each county auditor that must be used
to prepare the notices of proposed property taxes for taxes payable in the
following year. By January 1 of each
year, the commissioner shall certify the final state general levy rate rates
to each county auditor that shall be used in spreading taxes.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 11. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read:
Subdivision
1. Proposed
levy. (a) Notwithstanding any law or
charter to the contrary, on or before September 30, each county and
each, home rule charter or statutory city, and special taxing
district, excluding the Metropolitan Council and the Metropolitan Mosquito
Control District, shall certify to the county auditor the proposed property
tax levy for taxes payable in the following year. The proposed levy certification date for
the Metropolitan Council shall be as prescribed in sections 473.249 and 473.446. The proposed levy certification date for the
Metropolitan Mosquito Control District shall be as prescribed in section
473.711.
(b) Notwithstanding any law or charter to the
contrary, on or before September 15, each town and each special taxing
district, the Metropolitan Council, and the Metropolitan Mosquito
Control District shall adopt and certify to the county auditor a proposed
property tax levy for taxes payable in the following year. For towns, the final certified levy shall
also be considered the proposed levy.
(c) On or before September 30, each school district that has not mutually agreed with its home county to extend this date shall certify to the county auditor the proposed property tax levy for taxes payable in the following year. Each school district that has agreed with its home county to delay the certification of its proposed property tax levy must certify its proposed property tax levy for the following year no later than October 7. The school district shall certify the proposed levy as:
(1) a specific dollar amount by school district fund, broken down between voter-approved and non‑voter‑approved levies and between referendum market value and tax capacity levies; or
(2) the maximum levy limitation certified by the commissioner of education according to section 126C.48, subdivision 1.
(d) If the board of estimate and taxation or any similar board that establishes maximum tax levies for taxing jurisdictions within a first class city certifies the maximum property tax levies for funds under its jurisdiction by charter to the county auditor by the date specified in paragraph (a), the city shall be deemed to have certified its levies for those taxing jurisdictions.
(e) For purposes of this section, "special taxing district" means a special taxing district as defined in section 275.066. Intermediate school districts that levy a tax under chapter 124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing districts for purposes of this section.
(f) At the meeting at which a taxing authority, other than a town, adopts its proposed tax levy under this subdivision, the taxing authority shall announce the time and place of its subsequent regularly scheduled meetings at which the budget and levy will be discussed and at which the public will be allowed to speak. The time and place of those meetings must be included in the proceedings or summary of proceedings published in the official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191.
EFFECTIVE DATE. This section is effective beginning with proposed
levy certifications for taxes payable in 2017.
Sec. 12. Minnesota Statutes 2014, section 275.066, is amended to read:
275.066
SPECIAL TAXING DISTRICTS; DEFINITION.
For the purposes of property taxation and property tax state aids, the term "special taxing districts" includes the following entities:
(1) watershed districts under chapter 103D;
(2) sanitary districts under sections 442A.01 to 442A.29;
(3) regional sanitary sewer districts under sections 115.61 to 115.67;
(4) regional public library districts under section 134.201;
(5) park districts under chapter 398;
(6) regional railroad authorities under chapter 398A;
(7) hospital districts under sections 447.31 to 447.38;
(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
(9) Duluth Transit Authority under sections 458A.21 to 458A.37;
(10) regional development commissions under sections 462.381 to 462.398;
(11) housing and redevelopment authorities under sections 469.001 to 469.047;
(12) port authorities under sections 469.048 to 469.068;
(13) economic development authorities under sections 469.090 to 469.1081;
(14) Metropolitan Council under sections 473.123 to 473.549;
(15) Metropolitan Airports Commission under sections 473.601 to 473.679;
(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
(17) Morrison County Rural Development Financing Authority under Laws 1982, chapter 437, section 1;
(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, sections 1 to 6;
(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 5, section 39;
(21) Middle Mississippi River Watershed Management Organization under sections 103B.211 and 103B.241;
(22) emergency medical services special taxing districts under section 144F.01;
(23) a county levying under the authority of
section 103B.241, 103B.245, or 103B.251, or 103C.331;
(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home under Laws 2003, First Special Session chapter 21, article 4, section 12;
(25) an airport authority created under section 360.0426; and
(26) any other political subdivision of the state of Minnesota, excluding counties, school districts, cities, and towns, that has the power to adopt and certify a property tax levy to the county auditor, as determined by the commissioner of revenue.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2017 and thereafter.
Sec. 13. 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, 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, and 103C.331 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 2017 and thereafter.
Sec. 14. Minnesota Statutes 2014, section 276.11, subdivision 1, is amended to read:
Subdivision 1. Generally. As soon as practical after the settlement
day determined in section 276.09, the county treasurer shall pay to the
treasurer of a town, city, school district, or special district, on the warrant
of the county auditor, all receipts of taxes levied by the taxing district and
deliver up all orders and other evidences of indebtedness of the taxing
district, taking triplicate receipts for them.
The treasurer shall file one of the receipts with the county auditor,
and shall return one by mail on the day of its receipt to the clerk of the
town, city, school district, or special district to which payment was made. The clerk shall keep the receipt in the
clerk's office. Upon written request of
the taxing district, to the extent practicable, the county treasurer shall make
partial payments of amounts collected periodically in advance of the next
settlement and distribution. A statement
prepared by the county treasurer must accompany each payment. It must state the years for which taxes
included in the payment were collected and, for each year, the amount of the
taxes and any penalties on the tax. Upon
written request of a taxing district, except school districts, the county
treasurer shall pay at least 70 percent of the estimated collection within 30
days after the settlement date determined in section 276.09. Within seven eight business
days after the due date, or 28 calendar days after the postmark date on the
envelopes containing real or personal property tax statements, whichever is
latest, the county treasurer shall pay to the treasurer of the school districts
50 percent of the estimated collections arising from taxes levied by and
belonging to the school district, unless the school district elects to receive
50 percent of the estimated collections arising from taxes levied by and
belonging to the school district after making a proportionate reduction to
reflect any loss in collections as the result of any delay in mailing tax
statements. In that case, 50 percent of
those adjusted, estimated collections shall be paid by the county treasurer to
the treasurer of the school district within seven business days of the due date. The remaining 50 percent of the estimated
collections must be paid to the treasurer of the school district within the
next seven business days of the
later of the dates in the preceding sentence, unless the school district elects to receive the remainder of its estimated collections after a proportionate reduction has been made to reflect any loss in collections as the result of any delay in mailing tax statements. In that case, the remaining 50 percent of those adjusted, estimated collections shall be paid by the county treasurer to the treasurer of the school district within 14 days of the due date. The treasurer shall pay the balance of the amounts collected to a municipal corporation or other body within 60 days after the settlement date determined in section 276.09. After 45 days interest at an annual rate of eight percent accrues and must be paid to the taxing district. Interest must be paid upon appropriation from the general revenue fund of the county. If not paid, it may be recovered by the taxing district, in a civil action.
EFFECTIVE
DATE. This section is
effective for property taxes payable in 2017 and thereafter.
Sec. 15. Minnesota Statutes 2014, section 276.111, is amended to read:
276.111
DISTRIBUTIONS AND FINAL YEAR-END SETTLEMENT.
Within seven
eight business days after October 15, the county treasurer shall pay to
the school districts 50 percent of the estimated collections arising
from taxes levied by and belonging to the school district from the settlement
day determined in section 276.09 to October 20.
The remaining 50 percent of the estimated tax collections must be paid
to the school district within the next seven business days. Within ten 11 business days
after November 15, the county treasurer shall pay to the school district 100
percent of the estimated collections arising from taxes levied by and belonging
to the school districts from October 20 to November 20.
Within ten 11 business days
after November 15, the county treasurer shall pay to each taxing district,
except any school district, 100 percent of the estimated collections arising
from taxes levied by and belonging to each taxing district from the settlement
day determined in section 276.09 to November 20.
On or before January 5, the county treasurer shall make full settlement with the county auditor of all receipts collected from the settlement day determined in section 276.09 to December 31. After subtracting any tax distributions that have been made to the taxing districts in October and November, the treasurer shall pay to each of the taxing districts on or before January 25, the balance of the tax amounts collected on behalf of each taxing district. Interest accrues at an annual rate of eight percent and must be paid to the taxing district if this final settlement amount is not paid by January 25. Interest must be paid upon appropriation from the general revenue fund of the county. If not paid, it may be recovered by the taxing district in a civil action.
EFFECTIVE
DATE. This section is
effective for property taxes payable in 2017 and thereafter.
Sec. 16. Minnesota Statutes 2014, section 278.12, is amended to read:
278.12
REFUNDS OF OVERPAYMENT.
If upon final determination the petitioner has paid more than the amount so determined to be due, judgment shall be entered in favor of the petitioner for such excess, and upon filing a copy thereof with the county auditor the auditor shall forthwith draw a warrant upon the county treasurer for the payment thereof; provided that, with the consent of the petitioner, the county auditor may, in lieu of drawing such warrant, issue to the petitioner a certificate stating the amount of such judgment, which amount may be used to apply upon any taxes due or to become due over a prescribed period of years for the taxing district or districts whose taxes or assessments are reduced, or their successors in the event of a reorganization or reincorporation of any such taxing district. In the event the auditor shall issue a warrant for refund or certificates, the amount thereof shall be charged to the state and other taxing districts in proportion to the amount of their respective taxes included in the levy and deduct the same in the subsequent distribution of any tax proceeds to the state or such taxing districts, and upon receiving any such certificate in payment of other taxes, the amount thereof shall be distributed to the state and other taxing districts in
proportion to the amount of their respective taxes included in the levy; provided that if in the judgment the levy of one or more of the districts be found to be illegal, to the extent that the tax so levied is reduced on account of the illegal levies, the amount to be charged back shall be charged to the districts and the amount thereof deducted from any distributions thereafter made to them.
EFFECTIVE
DATE. This section is
effective for refunds for overpayment of taxes payable in 2016 and thereafter.
Sec. 17. Minnesota Statutes 2014, section 278.14, subdivision 1, is amended to read:
Subdivision 1. Applicability. A county must pay a refund of a
mistakenly billed tax as provided in this section. As used in this section, "mistakenly
billed tax" means an amount of property tax that was billed, to the extent
the amount billed exceeds the accurate tax amount due to a misclassification
of the owner's property under section 273.13 or a mathematical error in the
calculation of the tax on the owner's property, together with any penalty or
interest paid on that amount. This
section applies only to taxes payable in the current year and the two prior
years. As used in this section,
"mathematical error" is limited to an error in:
(1) converting the market value of a property to tax capacity or to a referendum market value;
(2) application of the tax rate as computed by the auditor under sections 275.08, subdivisions 1b, 1c, and 1d; 276A.06, subdivisions 4 and 5; and 473F.07, subdivisions 4 and 5, to the property's tax capacity or referendum market value; or
(3) calculation of or eligibility for a credit.
The remedy provided under this section
does not apply to a misclassification under section 273.13 that is due to the
failure of the property owner to apply for the correct classification as
required by law.
EFFECTIVE
DATE. This section is
effective based on property taxes payable in 2017 and thereafter.
Sec. 18. Minnesota Statutes 2014, section 279.01, subdivision 1, is amended to read:
Subdivision 1. Due
dates; penalties. Except as
provided in subdivisions 3 to 5, on May 16 or 21 days after the postmark date
on the envelope containing the property tax statement, whichever is later, a
penalty accrues and thereafter is charged upon all unpaid taxes on real estate
on the current lists in the hands of the county treasurer. The (a)
When the taxes against any tract or lot exceed $100, one-half of the amount of
tax due must be paid prior to May 16, and the remaining one-half must be
paid prior to the following October 16. If
either tax amount is unpaid as of its due date, a penalty is imposed
at a rate of two percent on homestead property until May 31 and four percent
on nonhomestead property. If complete
payment has not been made by the first day of the month following either due
date, an additional penalty of two percent on June 1. The penalty on nonhomestead property is at a
rate of four percent until May 31 homestead property and eight
four percent on June 1. This
penalty does not accrue until June 1 of each year, or 21 days after the
postmark date on the envelope containing the property tax statements, whichever
is later, on commercial use real property used for seasonal residential recreational
purposes and classified as class 1c or 4c, and on other commercial use real
property classified as class 3a, provided that over 60 percent of the gross
income earned by the enterprise on the class 3a property is earned during the
months of May, June, July, and August. In
order for the first half of the tax due on class 3a property to be paid after
May 15 and before June 1, or 21 days after the postmark date on the envelope
containing the property tax statement, whichever is later, without penalty, the
owner of the property must attach an affidavit to the payment attesting to
compliance with the income provision of this subdivision nonhomestead
property is imposed. Thereafter, for
both homestead and nonhomestead property, on the first day of each subsequent
month beginning July 1, up to and including October 1 following through
December, an additional penalty of one percent for each month accrues and
is charged on all such unpaid
taxes
provided that if the due date was extended beyond May 15 as the result of
any delay in mailing property tax statements no additional penalty shall accrue
if the tax is paid by the extended due date.
If the tax is not paid by the extended due date, then all penalties that
would have accrued if the due date had been May 15 shall be charged. When the taxes against any tract or lot
exceed $100, one-half thereof may be paid prior to May 16 or 21 days after the
postmark date on the envelope containing the property tax statement, whichever
is later; and, if so paid, no penalty attaches; the remaining one-half may be
paid at any time prior to October 16 following, without penalty; but, if not so
paid, then a penalty of two percent accrues thereon for homestead property and
a penalty of four percent on nonhomestead property. Thereafter, for homestead property, on the
first day of November an additional penalty of four percent accrues and on the
first day of December following, an additional penalty of two percent accrues
and is charged on all such unpaid taxes.
Thereafter, for nonhomestead property, on the first day of November and
December following, an additional penalty of four percent for each month
accrues and is charged on all such unpaid taxes. If one-half of such taxes are not paid prior
to May 16 or 21 days after the postmark date on the envelope containing the
property tax statement, whichever is later, the same may be paid at any time
prior to October 16, with accrued penalties to the date of payment added, and
thereupon no penalty attaches to the remaining one-half until October 16
following the penalty must not exceed eight percent in the case of
homestead property, or 12 percent in the case of nonhomestead property.
(b) If the property tax statement was
not postmarked prior to April 25, the first half payment due date in paragraph
(a) shall be 21 days from the postmark date of the property tax statement, and
all penalties referenced in paragraph (a) shall be determined with regard to
the later due date.
(c) In the case of a tract or lot with
taxes of $100 or less, the due date and penalties as specified in paragraph (a)
or (b) for the first half payment shall apply to the entire amount of the tax
due.
(d) For commercial use real property used for seasonal residential recreational purposes and classified as class 1c or 4c, and on other commercial use real property classified as class 3a, provided that over 60 percent of the gross income earned by the enterprise on the class 3a property is earned during the months of May, June, July, and August, penalty does not accrue until June 1 of each year. For a class 3a property to qualify for the later due date, the owner of the property must attach an affidavit to the payment attesting to compliance with the income requirements of this paragraph.
(e) This section applies to payment of personal property taxes assessed against improvements to leased property, except as provided by section 277.01, subdivision 3.
(f) A county may provide by resolution that in the case of a property owner that has multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in installments as provided in this subdivision.
(g) The county treasurer may accept payments of more or less than the exact amount of a tax installment due. Payments must be applied first to the oldest installment that is due but which has not been fully paid. If the accepted payment is less than the amount due, payments must be applied first to the penalty accrued for the year or the installment being paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum payment required as a condition for filing an appeal under section 278.03 or any other law, nor does it affect the order of payment of delinquent taxes under section 280.39.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 19. Minnesota Statutes 2014, section 279.01, subdivision 2, is amended to read:
Subd. 2. Abatement of penalty. (a) The county board may, with the concurrence of the county treasurer, delegate to the county treasurer the power to abate the penalty provided for late payment of taxes in the current year. Notwithstanding section 270C.86, if any county board so elects, the county treasurer may abate the penalty on finding that the imposition of the penalty would be unjust and unreasonable.
(b)
The county treasurer shall abate the penalty provided for late payment of taxes
in the current year if the property tax payment is delivered by mail to the
county treasurer and the envelope containing the payment is postmarked by the
United States Postal Service within one business day of the due date prescribed
under this section, but only if the property owner requesting the abatement has
not previously received an abatement of penalty for late payment of tax under
this paragraph.
EFFECTIVE
DATE. This section is
effective for property taxes payable in 2017 and thereafter.
Sec. 20. Minnesota Statutes 2014, section 279.01, subdivision 3, is amended to read:
Subd. 3. Agricultural
property. (a) In the case of
class 1b agricultural homestead, class 2a agricultural homestead property, and
class 2a agricultural nonhomestead property, no penalties shall attach to the second
one‑half property tax payment as provided in this section if paid by
November 15. Thereafter for class 1b
agricultural homestead and class 2a homestead property, on November 16
following, a penalty of six percent shall accrue and be charged on all such
unpaid taxes and on December 1 following, an additional two percent shall be
charged on all such unpaid taxes. Thereafter
for class 2a agricultural nonhomestead property, on November 16 following, a
penalty of eight percent shall accrue and be charged on all such unpaid taxes
and on December 1 following, an additional four percent shall be charged on all
such unpaid taxes, penalties shall attach as provided in subdivision 1.
If the owner of class 1b agricultural homestead or class 2a agricultural property receives a consolidated property tax statement that shows only an aggregate of the taxes and special assessments due on that property and on other property not classified as class 1b agricultural homestead or class 2a agricultural property, the aggregate tax and special assessments shown due on the property by the consolidated statement will be due on November 15.
(b) Notwithstanding paragraph (a), for
taxes payable in 2010 and 2011, for any class 2b property that was subject to a
second-half due date of November 15 for taxes payable in 2009, the county shall
not impose, or if imposed, shall abate penalty amounts in excess of those that
would apply as if the second-half due date were November 15.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 21. Minnesota Statutes 2014, section 279.03, subdivision 2, is amended to read:
Subd. 2. Rate for composite judgment; rate for homestead composite judgment, repurchase of forfeited homestead property, and sale of forfeited property. (a) Except as provided in paragraph (b), amounts included in composite judgments authorized by section 279.37, subdivision 1, are subject to interest at the rate calculated under subdivision 1a. During each calendar year, interest shall accrue on the unpaid balance of the composite judgment from the time it is confessed until it is paid. The interest rate established at the time the judgment is confessed is fixed for the duration of that judgment.
(b) The following amounts are subject
to interest as provided in paragraph (c):
(1) amounts included in composite
judgments on parcels classified as 1a or 1b and used as the homestead of the
owner;
(2) amounts in contracts for repurchase
of property classified as 1a or 1b at the time of forfeiture or at the time
that the repurchase application is approved; and
(3) sales of forfeited property
pursuant to section 282.01, subdivision 4.
(b)
A confession of judgment covering any part of a parcel classified as 1a or 1b,
and used as the homestead of the owner, is subject to interest at the rate
provided in section 279.37, subdivision 2, paragraph (b). This paragraph does not apply to a relative
homestead under section 273.124, subdivision 1, paragraph (c).
(c) By October 15 each year the
commissioner shall set the interest rate under this subdivision at the greater
of five percent or two percent above the
prime rate charged by banks during the six-month period ending on September 30
of that year, rounded to the nearest full percent, provided that the rate must
not exceed the maximum annum rate specified under section 279.03, subdivision
1a. By November 1 of each year the
commissioner must certify the rate to the county auditor. The rate of interest becomes effective on
January 1 of the immediately succeeding year.
The commissioner's determination under this subdivision is not a rule
subject to the Administrative Procedure Act in chapter 14, including section
14.386.
(d) For the purposes of this
subdivision, "prime rate charged by banks" means the average
predominant prime rate quoted by commercial banks to large businesses, as
determined by the Board of Governors of the Federal Reserve System.
EFFECTIVE
DATE. This section is
effective for composite judgments, repurchase contracts, and sales of forfeited
property occurring after January 1, 2017.
Sec. 22. Minnesota Statutes 2014, section 279.37, subdivision 2, is amended to read:
Subd. 2. Installment payments. (a) The owner of any such parcel, or any person to whom the right to pay taxes has been given by statute, mortgage, or other agreement, may make and file with the county auditor of the county in which the parcel is located a written offer to pay the current taxes each year before they become delinquent, or to contest the taxes under chapter 278 and agree to confess judgment for the amount provided, as determined by the county auditor. By filing the offer, the owner waives all irregularities in connection with the tax proceedings affecting the parcel and any defense or objection which the owner may have to the proceedings, and also waives the requirements of any notice of default in the payment of any installment or interest to become due pursuant to the composite judgment to be so entered. Unless the property is subject to subdivision 1a, with the offer, the owner shall (i) tender one-tenth of the amount of the delinquent taxes, costs, penalty, and interest, and (ii) tender all current year taxes and penalty due at the time the confession of judgment is entered. In the offer, the owner shall agree to pay the balance in nine equal installments, with interest as provided in section 279.03, payable annually on installments remaining unpaid from time to time, on or before December 31 of each year following the year in which judgment was confessed.
(b) For property which qualifies under
section 279.03, subdivision 2, paragraph (b), each year the commissioner shall
set the interest rate for offers made under paragraph (a) at the greater of
five percent or two percent above the prime rate charged by banks during the
six-month period ending on September 30 of that year, rounded to the nearest full
percent, provided that the rate must not exceed the maximum annum rate
specified under section 279.03, subdivision 1a.
The rate of interest becomes effective on January 1 of the immediately
succeeding year. The commissioner's
determination under this subdivision is not a rule subject to the
Administrative Procedure Act in chapter 14, including section 14.386. If a default occurs in the payments under any
confessed judgment entered under this paragraph, the taxes and penalties due
are subject to the interest rate specified in section 279.03. Amounts entered in judgment bear interest
at the rate provided in section 279.03, subdivision 1a, unless the parcel is
classified as 1a or 1b, and is used as the homestead of the owner, in which
case the rate provided in section 279.03, subdivision 2, shall apply. A parcel that is classified as relative
homestead under section 273.124, subdivision 1, paragraph (c), is subject to
interest at the rate provided in section 279.03, subdivision 1a.
(c) Interest shall commence with the
date the judgment is entered. During
each calendar year, interest shall accrue on the unpaid balance of the
composite judgment from the time it is confessed until it is paid. The interest rate established at the time the
judgment is confessed is fixed for the duration of that judgment.
(d)
If a default occurs in the payments under any confessed judgment, the taxes and
penalties due are subject to the interest rate specified in section 279.03,
subdivision 1a, regardless of the classification of the parcel. For the purposes of this subdivision:
(1) the term "prime rate charged
by banks" means the average predominant prime rate quoted by commercial
banks to large businesses, as determined by the Board of Governors of the
Federal Reserve System; and
(2) "default" means the
cancellation of the confession of judgment due to nonpayment of the current
year tax or failure to make any installment payment required by this confessed
judgment within 60 days from the date on which payment was due.
(c) The interest rate established at
the time judgment is confessed is fixed for the duration of the judgment. By October 15 of each year, the commissioner
of revenue must determine the rate of interest as provided under paragraph (b)
and, by November 1 of each year, must certify the rate to the county auditor.
(d) (e) A qualified property
owner eligible to enter into a second confession of judgment may do so at the
interest rate provided in paragraph (b).
(e) Repurchase agreements or contracts
for repurchase for properties being repurchased under section 282.261 are not
eligible to receive the interest rate under paragraph (b).
(f) The offer must be substantially as follows:
"To the court administrator of the district court of ........... county, I, ....................., am the owner of the following described parcel of real estate located in .................... county, Minnesota:
.............................. Upon that real estate there are delinquent taxes for the year ........., and prior years, as follows: (here insert year of delinquency and the total amount of delinquent taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and any defense or objection which I may have to them, and direct judgment to be entered for the amount stated above, minus the sum of $............, to be paid with this document, which is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above. I agree to pay the balance of the judgment in nine or four equal, annual installments, with interest as provided in section 279.03, payable annually, on the installments remaining unpaid. I agree to pay the installments and interest on or before December 31 of each year following the year in which this judgment is confessed and current taxes each year before they become delinquent, or within 30 days after the entry of final judgment in proceedings to contest the taxes under chapter 278.
Dated .............., ......."
EFFECTIVE
DATE. This section is
effective for sales and repurchases occurring after January 1, 2017.
Sec. 23. Minnesota Statutes 2014, section 282.01, subdivision 4, is amended to read:
Subd. 4. Sale: method, requirements, effects. The sale authorized under subdivision 3 must be conducted by the county auditor at the county seat of the county in which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may be conducted in any county facility within the county. The sale must not be for less than the appraised value except as provided in subdivision 7a. The parcels must be sold for cash only, unless the county board of the county has adopted a resolution providing for their sale on terms, in which event the resolution controls with respect to the sale. When the sale is made on terms other than for cash only (1) a payment of at least ten percent of the purchase price must be made at the time of purchase, and the balance must be paid in no more than ten equal annual installments, or (2) the payments must be made in accordance with county board policy, but in no
event may the board require more than 12 installments annually, and the contract term must not be for more than ten years. Standing timber or timber products must not be removed from these lands until an amount equal to the appraised value of all standing timber or timber products on the lands at the time of purchase has been paid by the purchaser. If a parcel of land bearing standing timber or timber products is sold at public auction for more than the appraised value, the amount bid in excess of the appraised value must be allocated between the land and the timber in proportion to their respective appraised values. In that case, standing timber or timber products must not be removed from the land until the amount of the excess bid allocated to timber or timber products has been paid in addition to the appraised value of the land. The purchaser is entitled to immediate possession, subject to the provisions of any existing valid lease made in behalf of the state.
For sales occurring on or after July 1,
1982, the unpaid balance of the purchase price is subject to interest at the
rate determined pursuant to section 549.09.
The unpaid balance of the purchase price for sales occurring after
December 31, 1990, is subject to interest at the rate determined provided
in section 279.03, subdivision 1a 2, paragraph (c). The interest rate is subject to change
each year on the unpaid balance in the manner provided for rate changes in
section 549.09 or 279.03, subdivision 1a, whichever, is applicable. Interest on the unpaid contract balance on
sales occurring before July 1, 1982, is payable at the rate applicable to the sale
at the time that the sale occurred.
EFFECTIVE
DATE. This section is
effective for sales occurring after January 1, 2017.
Sec. 24. Minnesota Statutes 2014, section 282.261, subdivision 2, is amended to read:
Subd. 2. Interest
rate. The unpaid balance on any
repurchase contract approved by the county board for property classified as
1a or 1b and used as the homestead of the owner at the time of forfeiture or at
the time that the repurchase application is approved is subject to interest
at the rate determined in section 279.03, subdivision 1a 2. The interest rate is subject to change
each year on the unpaid balance in the manner provided for rate changes in
section 279.03, subdivision 1a. The
unpaid balance on any other repurchase contract approved by the county board is
subject to interest at the rate determined in section 279.03, subdivision 1a,
which is subject to change each year in the manner provided for in section
279.03, subdivision 1a.
EFFECTIVE
DATE. This section is
effective for repurchases occurring after January 1, 2017.
Sec. 25. Minnesota Statutes 2014, section 473H.09, is amended to read:
473H.09
EARLY TERMINATION.
Subdivision 1. Public
emergency. Termination of an
agricultural preserve earlier than a date derived through application of
section 473H.08 may be permitted only in the event of a public emergency
upon petition from the owner or authority to the governor. The determination of a public emergency shall
be by the governor through executive order pursuant to sections 4.035 and 12.01
to 12.46. The executive order shall
identify the preserve, the reasons requiring the action and the date of
termination.
Subd. 2. Death
of owner. (a) Within 180 days
of the death of an owner, an owner's spouse, or other qualifying person, the
surviving owner may elect to terminate the agricultural preserve and the
covenant allowing the land to be enrolled as an agricultural preserve by
notifying the authority on a form provided by the commissioner of agriculture. Termination of a covenant under this
subdivision must be executed and acknowledged in the manner required by law to
execute and acknowledge a deed.
(b) For purposes of this subdivision,
the following definitions apply:
(1) "qualifying person" includes a partner, shareholder, trustee for a trust that the decedent was the settlor or a beneficiary of, or member of an entity permitted to own agricultural land and engage in farming under section 500.24 that owned the agricultural preserve; and
(2) "surviving owner"
includes the executor of the estate of the decedent, the trustee for a trust
that the decedent was the settlor or a beneficiary of, or an entity permitted
to own farm land under section 500.24 of which the decedent was a partner,
shareholder, or member.
(c) When an agricultural preserve is
terminated under this subdivision, the property is subject to additional taxes
in an amount equal to 50 percent of the taxes actually levied against the property
for the current taxes payable year. The
additional taxes are extended against the property on the tax list for taxes
payable in the current year. The
additional taxes must be distributed among the jurisdictions levying taxes on
the property in proportion to the current year's taxes.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 26. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243, article 6, section 9, Laws 2000, chapter 490, article 6, section 15, Laws 2008, chapter 154, article 2, section 30, and Laws 2013, chapter 143, article 4, section 33, is amended to read:
Sec. 3. TAX;
PAYMENT OF EXPENSES.
(a) The tax levied by the hospital district under Minnesota Statutes, section 447.34, must not be levied at a rate that exceeds the amount authorized to be levied under that section. The proceeds of the tax may be used for all purposes of the hospital district, except as provided in paragraph (b).
(b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used by the Cook ambulance service and the Orr ambulance service for the purpose of:
(1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance service;
(2) attached and portable equipment for use in and for the ambulances; and
(3) parts and replacement parts for maintenance and repair of the ambulances, and administrative, operation, or salary expenses for the Cook ambulance service and the Orr ambulance service.
The money may not be used for administrative, operation,
or salary expenses.
(c) The part of the levy referred to in paragraph (b) must be administered by the Cook Hospital and passed on in equal amounts directly to the Cook area ambulance service board and the city of Orr to be used for the purposes in paragraph (b).
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 27. Laws 1996, chapter 471, article 3, section 51, is amended to read:
Sec. 51. RECREATION
LEVY FOR SAWYER BY CARLTON COUNTY.
Subdivision 1. Levy
authorized. Notwithstanding
other law to the contrary, the Carlton county board of commissioners may levy
in and for the unorganized township of Sawyer an amount up to $1,500 $2,000
annually for recreational purposes, beginning with taxes payable in 1997 and
ending with taxes payable in 2006.
Subd. 2. Effective
date. This section is
effective June 1, 1996, without local approval.
EFFECTIVE
DATE. This section is
effective the day after the Carlton County Board of Commissioners and its chief
clerical officer comply with section 645.021, subdivisions 2 and 3, and applies
to taxes payable in 2017.
Sec. 28. Laws 2009, chapter 88, article 2, section 46, subdivision 1, as amended by Laws 2013, chapter 143, article 4, section 36, is amended to read:
Subdivision 1. Agreement. The city of Cloquet and Perch Lake Township, by resolution of each of their governing bodies, may establish the Cloquet Area Fire and Ambulance Special Taxing District for the purpose of providing fire or ambulance services, or both, throughout the district. In this section, "municipality" means home rule charter and statutory cities, towns, and Indian tribes. The district may exercise all the powers relating to fire and ambulance services of the municipalities that receive fire or ambulance services, or both, from the district. Upon application, any other municipality may join the district with the agreement of the municipalities that comprise the district at the time of its application to join.
EFFECTIVE
DATE. This section is
effective in Cloquet and Perch Lake Township the day after compliance with
Minnesota Statutes, section 645.021, subdivision 3, by the governing body of
each.
Sec. 29. Laws 2009, chapter 88, article 2, section 46, subdivision 2, is amended to read:
Subd. 2. Board. The Cloquet Area Fire and Ambulance Special Taxing District Board is governed by a board made up initially of one or more elected officials of the governing body of each participating municipality in the proportions set out in the establishing resolution, subject to change as provided in the district's charter, if any, or in the district's bylaws. Each municipality's representatives serve at the pleasure of that municipality's governing body.
EFFECTIVE
DATE. This section is
effective in Cloquet and Perch Lake Township the day after compliance with
Minnesota Statutes, section 645.021, subdivision 3, by the governing body of
each.
Sec. 30. Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by Laws 2013, chapter 143, article 4, section 37, is amended to read:
Subd. 3. Tax. (a) The district board may impose a property tax on taxable property as provided in this subdivision to pay the costs of providing fire or ambulance services, or both, throughout the district. The board shall annually determine the total amount of the levy that is attributable to the cost of providing fire services and the cost of providing ambulance services within the primary service area. For those municipalities that only receive ambulance services, the costs for the provision of ambulance services shall be levied against taxable property within those municipalities at a rate necessary not to exceed 0.019 percent of the estimated market value. For those municipalities that receive both fire and ambulance services, the tax shall be imposed at a rate that does not exceed 0.2835 percent of estimated market value.
(b) When a member municipality opts to receive fire service from the district or an additional municipality becomes a member of the district, the cost of providing fire services to that community shall be determined by the board and added to the maximum levy amount.
(c) Each county auditor of a county that contains a municipality subject to the tax under this section must collect the tax and pay it to the Fire and Ambulance Special Taxing District. The district may also impose other fees or charges as allowed by law for the provision of fire and ambulance services.
EFFECTIVE
DATE. This section is
effective in Cloquet and Perch Lake Township the day after compliance with
Minnesota Statutes, section 645.021, subdivision 3, by the governing body of
each.
Sec. 31. Laws 2009, chapter 88, article 2, section 46, subdivision 4, is amended to read:
Subd. 4. Public indebtedness. (a) The district may incur debt in the manner provided for a municipality by Minnesota Statutes, chapter 475, and may issue certificates of indebtedness or capital notes in the manner provided for a city by Minnesota Statutes, section 412.301, when necessary to accomplish its duties, except that the district may not incur debt or issue obligations until first obtaining the approval of a majority of the electors voting on the question of issuing the obligation. The debt service for debt used to finance capital costs for ambulance service shall be levied against taxable property within the municipalities in the primary service area. The debt service for debt used to finance capital costs for fire service shall be levied against taxable property within municipalities receiving fire services. The district board shall pledge its full faith and credit and taxing power without limitation as to rate or amount for the payment of the district's debt.
(b) For purposes of this subdivision,
"municipality" has the definition given in Minnesota Statutes,
sections 475.51, subdivision 2, and 475.521, subdivision 1, paragraph (c).
EFFECTIVE
DATE. This section is
effective in Cloquet and Perch Lake Township the day after compliance with
Minnesota Statutes, section 645.021, subdivision 3, by the governing body of
each.
Sec. 32. Laws 2009, chapter 88, article 2, section 46, subdivision 5, is amended to read:
Subd. 5. Withdrawal. Notice of intent to withdraw from participation in the district may be given only in the month of January, with a minimum of twelve months notice of intent to withdraw. Withdrawal becomes effective for taxes levied pursuant to subdivision 3 in the year when the notice is given. A property tax on taxable property located in a withdrawing municipality that has been levied by the district pursuant to subdivision 4 remains in effect until the obligations outstanding on the date of withdrawal are satisfied, including any property tax levied in connection with refunding such obligations. The district and its members may also develop and agree upon other continuing obligations after withdrawal of a municipality.
EFFECTIVE
DATE. This section is
effective in Cloquet and Perch Lake Township the day after compliance with
Minnesota Statutes, section 645.021, subdivision 3, by the governing body of
each.
Sec. 33. 2016
TOWNSHIP BOARD APPEALS AND EQUALIZATION COURSE WAIVER.
If a city or town that conducts local
board of appeal and equalization meetings certified by February 1, 2016, that
it was in compliance with the requirements of Minnesota Statutes, section
274.014, subdivision 2, but no member of the local board who has attended an
appeal and equalization course training within the preceding four years
attended the local board's meeting for 2016, that local board shall have its
powers reinstated for the 2017 assessment by resolution of the governing body
of the city or town, and by certifying it is in compliance with the
requirements of Minnesota Statutes, section 274.014, subdivision 2. The resolution and certification must be
provided to the county assessor by February 1, 2017.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 34. TOWN
OF TOFTE; MUNICIPAL HOUSING.
(a)
Notwithstanding the provisions of Laws 1988, chapter 516, and Laws 1988,
chapter 719, article 19, section 27, the town of Tofte may own and
operate within its boundary up to 12 units of housing for individuals over 55
years of age or families with one member of the household that is over 55 years
of age, or projects that provide housing for individuals or families with
incomes not greater than 120 percent of the median family income, as estimated
by the United States Department of Housing and Urban Development for the
nonmetropolitan county in which the town of Tofte is located.
(b)
The town of Tofte shall have the powers of a city under Minnesota Statutes,
chapter 462C, and the powers of an authority under Minnesota Statutes, sections
469.001 to 469.047, with respect to this section. Upon the approval of the town board, the town of Tofte may levy the tax described in
Minnesota Statutes, section 469.033, subdivision 6.
(c) Nothing in this section shall limit
the power of the Cook County/Grand Marais Joint Economic Development Authority
to exercise jurisdiction within the town of Tofte. The authority to undertake new projects under
this section shall expire on June 30, 2017.
EFFECTIVE
DATE. This section is
effective the day after compliance by the governing body of the town of Tofte
with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 35. SOCCER
STADIUM PROPERTY TAX EXEMPTION; SPECIAL ASSESSMENT.
Any real or personal property acquired,
owned, leased, controlled, used, or occupied by the city of St. Paul for
the primary purpose of providing a stadium for a Major League Soccer team is
declared to be acquired, owned, leased, controlled, used, and occupied for
public, governmental, and municipal purposes, and is exempt from ad valorem
taxation by the state or any political subdivision of the state, provided that
the properties are subject to special assessments levied by a political
subdivision for a local improvement in amounts proportionate to and not
exceeding the special benefit received by the properties from the improvement. In determining the special benefit received
by the properties, no possible use of any of the properties in any manner
different from their intended use for providing a Major League Soccer stadium
at the time may be considered. Notwithstanding
Minnesota Statutes, section 272.01, subdivision 2, or 273.19, real or personal
property subject to a lease or use agreement between the city and another
person for uses related to the purposes of the operation of the stadium and
related parking facilities is exempt from taxation regardless of the length of
the lease or use agreement. This
section, insofar as it provides an exemption or special treatment, does not
apply to any real property that is leased for residential, business, or
commercial development or other purposes different from those necessary to the
provision and operation of the stadium.
EFFECTIVE
DATE. This section is
effective upon approval by the St. Paul City Council and compliance with
Minnesota Statutes, section 645.021.
Sec. 36. OPTIONAL
CANCELLATION OF TAX FORFEITURE FOR CERTAIN BUILDINGS; ST. LOUIS COUNTY.
Subdivision 1. Definitions. (a) For purposes of this section, the
following terms have the meanings given.
(b) "Building PIN" means a
parcel identification number that is assigned to a building and does not include
the land upon which the building is located; and
(c) "Land PIN" means a parcel
identification number that is assigned to land upon which a building associated
with a building PIN is located.
Subd. 2. Optional
cancellation of tax forfeiture for buildings with building PINs. Notwithstanding any law to the
contrary, if any building associated with a building PIN and located in St. Louis
County forfeits or has forfeited to the state of Minnesota before, on, or after
the date of enactment of this section because of nonpayment of delinquent
property taxes, special assessments, penalties, interest, or costs, the county
auditor of St. Louis County may, with approval from the county board and
the commissioner of revenue:
(1) cancel the certificate of forfeiture
and set aside the forfeiture without reinstating the unpaid property taxes,
special assessments, penalties, interest, or costs; and
(2)
combine the building PIN with its associated land PIN. When this occurs, the land PIN is the only
surviving parcel identification number, and includes both the building and the
land upon which the building is located.
Subd. 3. Cancellation
of tax forfeiture; taxation through date of cancellation. Notwithstanding any law to the
contrary, if the county auditor of St. Louis County cancels a certificate
of forfeiture and sets aside a forfeiture in accordance with subdivision 2, the
affected building is not subject to taxation from the date of forfeiture
through the date of cancellation.
Subd. 4. Appropriation. $1,000,000 in fiscal year 2017 only is
appropriated from the general fund to the commissioner of revenue for a grant
to St. Louis County that shall be paid on July 1, 2016. The county may only use the grant to remove
any building, upon the request of the landowner, after the county has complied
with the provisions of subdivision 2.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 37. LAKE
MILLE LACS AREA PROPERTY TAX ABATEMENT.
Subdivision 1. Abatements
authorized. (a) Notwithstanding
Minnesota Statutes, section 375.192, the county boards of Aitkin, Crow Wing,
and Mille Lacs Counties may grant an abatement of local property taxes for
taxes payable in 2016 provided that:
(1) the property is classified as 1c,
3a (excluding utility real and personal property), 4c(1), 4c(10), or 4c(11);
(2) on or before February 1, 2017, the
taxpayer submits a written application to the county assessor in the county in
which abatement is sought; and
(3) the taxpayer meets qualification
requirements established in subdivision 3.
Subd. 2. Appeals. An appeal may not be taken to the Tax
Court from any order of the county board made pursuant to the exercise of the
discretionary authority granted in this section.
Subd. 3. Qualification
requirements. To qualify for
abatements under this section, a taxpayer must:
(1) be located within one of the
following municipalities surrounding Lake Mille Lacs:
(i) in Crow Wing County, the city of
Garrison, township of Garrison, or township of Roosevelt;
(ii) in Aitkin County, the township of
Hazelton, township of Wealthwood, township of Malmo, or township of Lakeside;
or
(iii) in Mille Lacs County, the city of
Isle, city of Wahkon, city of Onamia, township of East Side, township of Isle
Harbor, township of South Harbor, or township of Kathio;
(2) document a reduction in gross
receipts of five percent or greater between two successive calendar years
beginning in 2010 or later; and
(3) be a business in one of the
following industries, as defined within the North American Industry
Classification System: accommodation,
restaurants, bars, amusement and recreation, food and beverages retail,
sporting goods, miscellaneous retail, general retail, museums, historical
sites, health and personal care, gas station, general merchandise, business and
professional membership, movies, or nonstore retailer, as determined by the
county in consultation with the commissioner of employment and economic
development.
Subd. 4. State
general levy in relief area. The
counties of Aitkin, Crow Wing, and Mille Lacs must refund the state general
levy levied upon a property classified as 1c, 3a (excluding utility real and
personal property), or 4c(1) that is located in the area described by
subdivision 3, clause (1), for taxes payable in 2016. No refund may be issued to a taxpayer whose
property taxes are delinquent.
Subd. 5. Certification
and transfer of funds. (a) By
April 1, 2017, a county granting a refund as required under subdivision 4 must
certify the total amount of state general tax refunded to Mille Lacs County and
the commissioner of revenue. By May 1,
2017, Mille Lacs County must transfer an amount equal to the amount certified
under this paragraph to the county making the certification.
(b) By April 1, 2017, a county that has
received an application for an abatement authorized under subdivision 1 must
certify to Mille Lacs County the total amount of abatements for which
applications have been received and approved.
By May 1, 2017, Mille Lacs County must transfer an amount equal to the
amount certified under this paragraph to the county making the certification. If the amount appropriated under subdivision
6, minus the amount transferred under paragraph (a), is not sufficient to make
the transfer required under this paragraph, Mille Lacs County must reduce the
amount transferred to each county by a uniform percentage. By June 30, 2017, the county must issue
refunds of local property tax amounts to qualified properties, in proportion to
the amount received from Mille Lacs County.
No refund may be issued to a taxpayer whose property taxes are
delinquent.
(c) By August 1, 2017, Mille Lacs
County must calculate the amount transferred under paragraphs (a) and (b), and
subtract that amount from $1,400,000 to obtain the ongoing economic relief
distribution amount, if any. This amount
must be transferred to the counties of Aitkin, Crow Wing, and Mille Lacs in
proportion to the amounts certified by each county under paragraphs (a) and (b). A county receiving a transfer under this
paragraph must use the funds received to provide abatements to business
properties under economic hardship for taxes payable in 2017, and each year
thereafter until a county's share of the ongoing economic relief distribution
amount is exhausted.
Subd. 6. Commissioner
of revenue; appropriation. $1,400,000
in fiscal year 2017 is appropriated from the general fund to the commissioner
of revenue for transfer to Mille Lacs County to make the transfers required
under subdivision 5. This is a onetime appropriation.
Subd. 7. Report
to legislature. The
commissioner of revenue must make a written report to the chairs and ranking
minority members of the legislative committees with jurisdiction over taxes
stating the amount of abatements and refunds given under this section by taxing
jurisdictions by February 1, 2018. The
counties must provide the commissioner with the information necessary to make
the report.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 38. REPEALER.
Minnesota Statutes 2014, section
272.02, subdivision 23, is repealed.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2017 and thereafter.
ARTICLE 2
AIDS AND CREDITS
Section 1.
[273.1387] SCHOOL BUILDING
BOND AGRICULTURAL CREDIT.
Subdivision 1. Eligibility. All class 2a, 2b, and 2c property
under section 273.13, subdivision 23, other than property consisting of the
house, garage, and immediately surrounding one acre of land of an agricultural
homestead, is eligible to receive the credit under this section.
Subd. 2. Credit
amount. For each qualifying
property, the school building bond agricultural credit is equal to 40 percent
of the property's eligible net tax capacity multiplied by the school debt tax
rate determined under section 275.08, subdivision 1b.
Subd. 3. Credit
reimbursements. The county
auditor shall determine the tax reductions allowed under this section within
the county for each taxes payable year and shall certify that amount to the
commissioner of revenue as a part of the abstracts of tax lists submitted under
section 275.29. Any prior year
adjustments shall also be certified on the abstracts of tax lists. The commissioner shall review the
certifications for accuracy, and may make such changes as are deemed necessary,
or return the certification to the county auditor for correction. The credit under this section must be used to
reduce the school district net tax capacity-based property tax as provided in
section 273.1393.
Subd. 4. Payment. The commissioner of revenue shall
certify the total of the tax reductions granted under this section for each
taxes payable year within each school district to the commissioner of
education, who shall pay the reimbursement amounts to each school district as
provided in section 273.1392.
Subd. 5. Appropriation. An amount sufficient to make the
payments required by this section is annually appropriated from the general
fund to the commissioner of education.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 2. Minnesota Statutes 2014, section 273.1392, is amended to read:
273.1392
PAYMENT; SCHOOL DISTRICTS.
The amounts of bovine tuberculosis credit
reimbursements under section 273.113; conservation tax credits under section
273.119; disaster or emergency reimbursement under sections 273.1231 to
273.1235; homestead and agricultural credits under section sections
273.1384 and 273.1387; aids and credits under section 273.1398;
enterprise zone property credit payments under section 469.171; and
metropolitan agricultural preserve reduction under section 473H.10 for school
districts, shall be certified to the Department of Education by the Department
of Revenue. The amounts so certified
shall be paid according to section 127A.45, subdivisions 9 and 13.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 3. Minnesota Statutes 2014, section 273.1393, is amended to read:
273.1393
COMPUTATION OF NET PROPERTY TAXES.
Notwithstanding any other provisions to the contrary, "net" property taxes are determined by subtracting the credits in the order listed from the gross tax:
(1) disaster credit as provided in sections 273.1231 to 273.1235;
(2) powerline credit as provided in section 273.42;
(3) agricultural preserves credit as provided in section 473H.10;
(4) enterprise zone credit as provided in section 469.171;
(5) disparity reduction credit;
(6) conservation tax credit as provided in section 273.119;
(7) the school bond credit, as provided in
section 273.1387;
(8) agricultural credit as provided in section 273.1384;
(8) (9) taconite homestead
credit as provided in section 273.135;
(9) (10) supplemental homestead
credit as provided in section 273.1391; and
(10) (11) the bovine
tuberculosis zone credit, as provided in section 273.113.
The combination of all property tax credits must not exceed the gross tax amount.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 4. 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, school building bond agricultural credit under section 273.1387, voter approved school levy, other local school levy, and the sum of the special taxing districts, and as a total of all taxing authorities:
(i) the actual tax for taxes payable in the current year; and
(ii) the proposed tax amount.
If the county levy under clause (2) includes an amount for a lake improvement district as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose must be separately stated from the remaining county levy amount.
In the case of a town or the state general tax, the final tax shall also be its proposed tax unless the town changes its levy at a special town meeting under section 365.52. If a school district has certified under section 126C.17, subdivision 9, that a referendum will be held in the school district at the November general election, the county auditor must note next to the school district's proposed amount that a referendum is pending and that, if approved by the voters, the tax amount may be higher than shown on the notice. In the case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for the St. Paul Library Agency must be listed separately from the remaining amount of the city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be listed separately from the remaining amount of the county's levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F applies, the proposed tax levy on the captured value or the proposed tax levy on the tax capacity subject to the areawide tax must each be stated separately and not included in the sum of the special taxing districts; and
(3) the increase or decrease between the total taxes payable in the current year and the total proposed taxes, expressed as a percentage.
For purposes of this section, the amount of the tax on homesteads qualifying under the senior citizens' property tax deferral program under chapter 290B is the total amount of property tax before subtraction of the deferred property tax amount.
(e) The notice must clearly state that the proposed or final taxes do not include the following:
(1) special assessments;
(2) levies approved by the voters after the date the proposed taxes are certified, including bond referenda and school district levy referenda;
(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday in November of the levy year as provided under section 275.73;
(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring after the date the proposed taxes are certified;
(5) amounts necessary to pay tort judgments against the taxing authority that become final after the date the proposed taxes are certified; and
(6) the contamination tax imposed on properties which received market value reductions for contamination.
(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the county treasurer to deliver the notice as required in this section does not invalidate the proposed or final tax levy or the taxes payable pursuant to the tax levy.
(g) If the notice the taxpayer receives under this section lists the property as nonhomestead, and satisfactory documentation is provided to the county assessor by the applicable deadline, and the property qualifies for the homestead classification in that assessment year, the assessor shall reclassify the property to homestead for taxes payable in the following year.
(h) In the case of class 4 residential property used as a residence for lease or rental periods of 30 days or more, the taxpayer must either:
(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter, or lessee; or
(2) post a copy of the notice in a conspicuous place on the premises of the property.
The notice must be mailed or posted by the taxpayer by November 27 or within three days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to which the notice must be mailed in order to fulfill the requirements of this paragraph.
(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing districts" means the following taxing districts in the seven-county metropolitan area that levy a property tax for any of the specified purposes listed below:
(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446, 473.521, 473.547, or 473.834;
(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
(3) Metropolitan Mosquito Control Commission under section 473.711.
For purposes of this section, any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be included with the appropriate county's levy.
(j) The governing body of a county, city, or school district may, with the consent of the county board, include supplemental information with the statement of proposed property taxes about the impact of state aid increases or decreases on property tax increases or decreases and on the level of services provided in the affected jurisdiction. This supplemental information may include information for the following year, the current year, and for as many consecutive preceding years as deemed appropriate by the governing body of the county, city, or school district. It may include only information regarding:
(1) the impact of inflation as measured by the implicit price deflator for state and local government purchases;
(2) population growth and decline;
(3) state or federal government action; and
(4) other financial factors that affect the level of property taxation and local services that the governing body of the county, city, or school district may deem appropriate to include.
The information may be presented using tables, written narrative, and graphic representations and may contain instruction toward further sources of information or opportunity for comment.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 5. Minnesota Statutes 2014, section 275.07, subdivision 2, is amended to read:
Subd. 2. School
district in more than one county levies; special requirements. (a) In school districts lying in
more than one county, the clerk shall certify the tax levied to the auditor of
the county in which the administrative offices of the school district are
located.
(b) The district must identify the
portion of the school district levy that is levied for debt service at the time
the levy is certified under this section.
For the purposes of this paragraph, "levied for debt service"
means levies authorized under sections 123B.53, 123B.535, and 123B.55, as
adjusted by sections 126C.46 and 126C.48, net of any debt excess levy
reductions under section 475.61, subdivision 4, excluding debt service amounts
necessary for repayment of other postemployment benefits under section 475.52,
subdivision 6.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 6. Minnesota Statutes 2014, section 275.08, subdivision 1b, is amended to read:
Subd. 1b. Computation of tax rates. (a) The amounts certified to be levied against net tax capacity under section 275.07 by an individual local government unit shall be divided by the total net tax capacity of all taxable properties within the local government unit's taxing jurisdiction. The resulting ratio, the local government's local tax rate, multiplied by each property's net tax capacity shall be each property's net tax capacity tax for that local government unit before reduction by any credits.
(b) The auditor must also determine the
school debt tax rate for each school district equal to (1) the school debt
service levy certified under section 275.07, subdivision 2, divided by (2) the
total net tax capacity of all taxable property within the district.
(c) Any amount certified to the county auditor to be levied against market value shall be divided by the total referendum market value of all taxable properties within the taxing district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by each property's referendum market value shall be each property's new referendum tax before reduction by any credits. For the purposes of this subdivision, "referendum market value" means the market value as defined in section 126C.01, subdivision 3.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 7. 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 credits under section sections
273.1384 and 273.1387;
(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit received under section 273.135 must be separately stated and identified as "taconite tax relief"; and
(7) the net tax payable in the manner required in paragraph (a).
(d) If the county uses envelopes for mailing property tax statements and if the county agrees, a taxing district may include a notice with the property tax statement notifying taxpayers when the taxing district will begin its budget deliberations for the current year, and encouraging taxpayers to attend the hearings. If the county allows notices to be included in the envelope containing the property tax statement, and if more than one taxing district relative to a given property decides to include a notice with the tax statement, the county treasurer or auditor must coordinate the process and may combine the information on a single announcement.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2017.
Sec. 8. [477A.0126]
REIMBURSEMENT OF COUNTY AND TRIBES FOR CERTAIN OUT-OF-HOME PLACEMENT.
Subdivision 1. Definition. When used in this section,
"out-of-home placement" means 24-hour substitute care for an Indian
child as defined by section 260C.007, subdivision 21, placed under the Indian
Child Welfare Act (ICWA) and chapter 260C, away from the child's parent or
guardian and for whom the county social services agency or county correctional
agency has been assigned responsibility for the child's placement and care,
which includes placement in foster care under section 260C.007, subdivision 18,
and a correctional facility pursuant to a court order.
Subd. 2. Determination
of nonfederal share of costs. (a)
By January 1, 2017, each county shall report the following information to the
commissioners of human services and corrections: (1) the separate amounts paid out of its
social service agency and its corrections budget for out-of-home placement of
children under the ICWA in
calendar
years 2013, 2014, and 2015; and (2) the number of case days associated with the
expenditures from each budget. By March
15, 2017, the commissioner of human services, in consultation with the
commissioner of corrections, shall certify to the commissioner of revenue and
to the legislative committees responsible for local government aids and
out-of-home placement funding, whether the data reported under this subdivision
accurately reflects total expenditures by counties for out-of-home placement
costs of children under the ICWA.
(b) By January 1, 2019, and each January
1 thereafter, each county shall report to the commissioners of human services
and corrections the separate amounts paid out of its social service agency and
its corrections budget for out‑of-home placement of children under the
ICWA in the calendar years two years before the current calendar year along
with the number of case days associated with the expenditures from each budget.
(c) Until the commissioner of human
services develops another mechanism for collecting and verifying data on
out-of-home placements of children under the ICWA, and the legislature
authorizes the use of that data, the data collected under this subdivision must
be used to calculate payments under subdivision 3. The commissioner of human services shall
certify the nonfederal out-of-home placement costs for the three prior calendar
years for each county to the commissioner of revenue by June 1 of the year
prior to the aid payment.
Subd. 3. Aid
payments to counties. For
aids payable in calendar year 2018 and thereafter, the commissioner of revenue
shall reimburse each county for 100 percent of the nonfederal share of the cost
of out-of-home placement of children under the ICWA provided the commissioner
of human services, in consultation with the commissioner of corrections,
certifies to the commissioner of revenue that accurate data is available to
make the aid determination under this section.
The amount of reimbursement is the county's average nonfederal share of
the cost for out-of-home placement of children under the ICWA for the most
recent three calendar years for which data is available. The commissioner shall pay the aid under the
schedule used for local government aid payments under section 477A.015.
Subd. 4. Aid
payments to tribes. (a) By
January 1, 2017, and each year thereafter, each tribe must certify to the
commissioner of revenue the amount of federal reimbursement received by the
tribe for out-of-home placement of children under the ICWA for the immediately
preceding three calendar years. The
commissioner of revenue shall prescribe the format of the certification. For purposes of this section, "tribe"
has the meaning provided in section 260.755, subdivision 12.
(b) The amount of reimbursement to the
tribe shall be the greater of: (1) five
percent of the average reimbursement amount received from the federal
government for out-of-home placement costs for the most recent three calendar
years; or (2) $200,000. The commissioner
shall pay the aid under this section under the schedule used for local
government aid payments under section 477A.015.
Subd. 5. Appropriation. An amount sufficient to pay aid under
this section is annually appropriated to the commissioner of revenue from the
general fund.
EFFECTIVE
DATE. This section is
effective beginning with aids payable in 2018.
Sec. 9. Minnesota Statutes 2015 Supplement, section 477A.015, is amended to read:
477A.015
PAYMENT DATES.
(a) The commissioner of revenue shall make the payments of local government aid to affected taxing authorities in two installments on July 20 and December 26 annually.
(b) Notwithstanding paragraph (a), for aids payable in 2017 only, the commissioner of revenue shall make payments of the aid payable under section 477A.013, subdivision 9, in three installments as follows: (1) 6.5 percent of the aid shall be paid on June 15, 2017; (2) 43.5 percent of the aid shall be paid on July 20, 2017; and (3) 50 percent of the aid shall be paid on December 26, 2017.
(c) When the commissioner of public safety determines that a local government has suffered financial hardship due to a natural disaster, the commissioner of public safety shall notify the commissioner of revenue, who shall make payments of aids under sections 477A.011 to 477A.014, which are otherwise due on December 26, as soon as is practical after the determination is made but not before July 20.
(d) The commissioner may pay all or part of the payments of aids under sections 477A.011 to 477A.014, which are due on December 26 at any time after August 15 if a local government requests such payment as being necessary for meeting its cash flow needs.
EFFECTIVE
DATE. This section is
effective beginning with aids payable in 2017.
Sec. 10. Minnesota Statutes 2014, section 477A.017, subdivision 2, is amended to read:
Subd. 2. State auditor's duties. The state auditor shall prescribe uniform financial accounting and reporting standards in conformity with national standards to be applicable to cities and towns of more than 2,500 population and uniform reporting standards to be applicable to cities and towns of less than 2,500 population.
EFFECTIVE
DATE. This section applies to
reporting of financial information for calendar year 2016 and thereafter.
Sec. 11. Minnesota Statutes 2014, section 477A.017, subdivision 3, is amended to read:
Subd. 3. Conformity. Other law to the contrary
notwithstanding, in order to receive distributions under sections 477A.011 to
477A.03, counties and, cities, and towns must conform to
the standards set in subdivision 2 in making all financial reports required to
be made to the state auditor after June 30, 1984.
EFFECTIVE
DATE. This section applies to
reporting of financial information for aids payable in 2017 and thereafter.
Sec. 12. Minnesota Statutes 2015 Supplement, section 477A.03, subdivision 2a, is amended to read:
Subd. 2a. Cities. The total aid paid under section
477A.013, subdivision 9, is $516,898,012 for aids payable in 2015. For aids payable in 2016 and thereafter,
the total aid paid under section 477A.013, subdivision 9, is $519,398,012. For aids payable in 2017 and thereafter,
the total aid paid under section 477A.013, subdivision 9, is $539,398,012.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2017 and thereafter.
Sec. 13. Minnesota Statutes 2014, section 477A.03, subdivision 2b, is amended to read:
Subd. 2b. Counties. (a) For aids payable in 2014 and
thereafter through 2016, the total aid payable under section
477A.0124, subdivision 3, is $100,795,000.
For aids payable in 2017 through 2024, the total aid payable under section
477A.0124, subdivision 3, is $108,795,000, of which $3,000,000 shall be
allocated as required under Laws 2014, chapter 150, article 4, section 6. For aids payable in 2025 and thereafter, the
total aid payable under section 477A.0124, subdivision 3, is $105,795,000. Each calendar year, $500,000 of this
appropriation shall be retained by the commissioner of revenue to make
reimbursements to the commissioner of management and budget for payments made
under section 611.27. The reimbursements
shall be to defray the additional costs associated with court-ordered counsel
under section 611.27. Any retained
amounts not used for reimbursement in a year shall be included in the next
distribution of county need aid that is certified to the county auditors for
the purpose of property tax reduction for the next taxes payable year.
(b)
For aids payable in 2014 and thereafter 2016, the total aid under
section 477A.0124, subdivision 4, is $104,909,575. For aids payable in 2017 and thereafter, the
total aid payable under section 477A.0124, subdivision 4, is $109,909,575. The commissioner of revenue shall transfer to
the commissioner of management and budget $207,000 annually for the cost of
preparation of local impact notes as required by section 3.987, and other local
government activities. The commissioner
of revenue shall transfer to the commissioner of education $7,000 annually for
the cost of preparation of local impact notes for school districts as required
by section 3.987. The commissioner of
revenue shall deduct the amounts transferred under this paragraph from the
appropriation under this paragraph. The
amounts transferred are appropriated to the commissioner of management and
budget and the commissioner of education respectively.
EFFECTIVE
DATE. This section is
effective for aids payable in 2017 and thereafter.
Sec. 14. [477A.09]
MAXIMUM EFFORT LOAN AID.
For fiscal years 2018 through 2022, each
school district with a maximum effort loan under sections 126C.61 to 126C.72
outstanding as of June 30, 2016, is eligible for an aid payment equal to
one-fifth of the amount of interest that was paid on the loan between December
1, 1997, and June 30, 2016. Aid payments
under this section must be used to reduce property taxes levied on net tax
capacity within the district. Aid under
this section must be paid in fiscal years 2018 through 2022, in the manner
provided under section 127A.45, subdivisions 9 and 13. An amount sufficient to make aid payments
under this section is annually appropriated from the general fund to the
commissioner of education.
EFFECTIVE
DATE. This section is
effective for fiscal years 2018 and thereafter.
Sec. 15. [477A.21]
RIPARIAN PROTECTION AID.
Subdivision 1. Definitions. (a) When used in this section, the
following terms have the meanings given them in this subdivision.
(b)
"Public water basins" has the meaning provided in section 103G.005,
subdivision 15, clauses (1) to (8) and (11).
(c) "Public watercourses" has
the meaning provided in section 103G.005, subdivision 15, clauses (9) and (10).
Subd. 2. Certification. The Board of Water and Soil Resources must certify to the commissioner of revenue by July 1 of each year which counties and watershed districts have affirmed their jurisdiction under section 103F.48, subdivision 7, paragraph (b), and the proportion of each county's land area that is contained in each watershed district within the county. On or before July 1 of each year, the commissioner of natural resources shall certify to the commissioner of revenue the statewide and countywide total of miles of shoreline of public waters basins, the number of centerline miles of public watercourses, and the miles of public drainage system ditches.
Subd. 3. Distribution. (a) A county that is certified under
subdivision 2 or that portion of a county containing a watershed district
certified under subdivision 2 is eligible to receive aid under this section to
enforce and implement the riparian protection and water quality practices under
section 103F.48. The commissioner shall
calculate a preliminary aid for all counties that shall equal: (1) each county's share of the total number
of acres in the state classified as class 2a under section 273.13, subdivision
23, divided by two; plus (2) each county's share of the number of miles of
shoreline of public water basins, each county's share of the number of
centerline miles of public watercourses, and each county's share of the number
of miles of public drainage system ditches established under chapter 103E,
divided by two; multiplied by (3) $10,000,000.
(b) Aid to a county shall not be greater
than $200,000 or less than $45,000. If
the sum of the preliminary aids payable to counties under paragraph (a) is
greater or less than the appropriation under subdivision 5, the commissioner of
revenue shall calculate the percentage adjustment necessary so that the total
of the aid under paragraph (a) equals the total amount available for aid under
subdivision 5.
(c) If only a portion of a county is certified as eligible to receive aid under subdivision 2, the aid otherwise payable to that county under this section shall be multiplied by a fraction, the numerator of which is the area of the certified watershed district contained within the county and the denominator of which is the total area of the county.
(d) Any aid that would otherwise be
paid to a county or portion of a county that is not certified under subdivision
2 shall be paid to the Board of Water and Soil Resources for the purpose of
enforcing and implementing the riparian protection and water quality practices
under section 103F.48.
Subd. 4. Payments. The commissioner of revenue must
compute the amount of riparian protection aid payable to each eligible county
and to the Board of Water and Soil Resources under this section. On or before August 1 of each year, the
commissioner shall certify the amount to be paid to each county in the
following year. The commissioner shall
pay riparian protection aid to counties and the Board of Water and Soil
Resources in the same manner and at the same time as aid payments under section
477A.015.
Subd. 5. Appropriation. $10,000,000 for aids payable in 2017
and each year thereafter is appropriated from the general fund to the
commissioner of revenue to make the payments required under this section.
EFFECTIVE
DATE. This section is
effective beginning with aids payable in 2017 and thereafter.
Sec. 16. Laws 2001, First Special Session chapter 5, article 3, section 86, is amended to read:
Sec. 86. RED
RIVER WATERSHED MANAGEMENT BOARD; PAYMENT IN LIEU OF TAXES.
(a) The Red River watershed management board
may spend money from its general fund to compensate counties and townships for
lost tax revenue from land that becomes tax exempt after it is acquired by the
board or a member watershed district for flood damage reduction project. The amount that may be paid under this
section to a county or township must not exceed the tax that was payable to
that taxing jurisdiction on the land in the last taxes payable year before the
land became exempt due to the acquisition, not to exceed $4 $5.133
per acre, multiplied by 20. This total
amount may be paid in one payment, or in equal annual installments over a
period that does not exceed 20 years. A
member watershed district of the Red River management board may spend money
from its construction fund for the purposes described in this section.
(b) For the purposes of this section, "Red River watershed management board" refers to the board established by Laws 1976, chapter 162, section 1, as amended by Laws 1982, chapter 474, section 1, Laws 1983, chapter 338, section 1, Laws 1989 First Special Session chapter 1, article 5, section 45, Laws 1991, chapter 167, section 1, and Laws 1998, chapter 389, article 3, section 29.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2016 and thereafter.
Sec. 17. 2013
CITY AID PENALTY FORGIVENESS; CITY OF OSLO.
Notwithstanding Minnesota Statutes,
section 477A.017, subdivision 3, the city of Oslo shall receive the portion of
its aid payment for calendar year 2013 under Minnesota Statutes, section
477A.013, that was withheld under Minnesota Statutes, section 477A.017,
subdivision 3, provided that the state auditor certifies to the commissioner of
revenue that it received audited financial statements from the city for
calendar year 2012 by December 31, 2013.
The commissioner of revenue shall make a payment of $37,473.50 with the
first payment of aids under Minnesota Statutes, section 477A.015. $37,473.50 is appropriated from the general
fund to the commissioner of revenue in fiscal year 2017 to make this payment.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 18. 2014
AID PENALTY FORGIVENESS.
(a) Notwithstanding Minnesota Statutes,
section 477A.017, subdivision 3, the cities of Dundee, Jeffers, and Woodstock
shall receive all of its calendar year 2014 aid payment that was withheld under
Minnesota Statutes, section 477A.017, subdivision 3, provided that the state
auditor certifies to the commissioner of revenue that the city complied with
all reporting requirements under Minnesota Statutes, section 477A.017,
subdivision 3, for calendar years 2013 and 2014 by June 1, 2015.
(b) The commissioner of revenue shall
make payment to each city no later than June 30, 2016. Up to $101,570 is appropriated from the
general fund to the commissioner of revenue in fiscal year 2017 to make the
payments under this section.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 19. BASE
YEAR FORMULA AID FOR NEWLY INCORPORATED CITY.
In the first aid payable year in which
a city that incorporated on October 13, 2015, qualifies for aid under Minnesota
Statutes, section 477A.013, subdivision 8, the city's formula aid in the
previous year shall be deemed to equal $115 multiplied by its population.
EFFECTIVE
DATE. This section is
effective for aids payable in 2017 and thereafter.
Sec. 20. REPEALER.
Minnesota Statutes 2014, section
477A.20, is repealed.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 3
INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES
Section 1. Minnesota Statutes 2014, section 136A.129, subdivision 3, is amended to read:
Subd. 3. Program components. (a) An intern must be an eligible student who has been admitted to a major program that is related to the intern experience as determined by the eligible institution.
(b) To participate in the program, an eligible institution must:
(1) enter into written agreements with eligible employers to provide internships that are at least eight weeks long and located in greater Minnesota; and
(2) provide academic credit for the successful completion of the internship or ensure that it fulfills requirements necessary to complete a vocational technical education program.
(c) To participate in the program, an eligible employer must enter into a written agreement with an eligible institution specifying that the intern:
(1) would not have been hired without
the tax credit described in subdivision 4;
(2) did not work for the employer
in the same or a similar job prior to entering the agreement;
(3) (2) does not replace an existing employee;
(4) (3) has not previously
participated in the program;
(5) (4) will be employed at
a location in greater Minnesota;
(6) (5) will be paid at
least minimum wage for a minimum of 16 hours per week for a period of at least
eight weeks; and
(7) (6) will be supervised
and evaluated by the employer.
(d) The written agreement between the eligible institution and the eligible employer must certify a credit amount to the employer, not to exceed $2,000 per intern. The total dollar amount of credits that an eligible institution certifies to eligible employers in a calendar year may not exceed the amount of its allocation under subdivision 4.
(e) Participating eligible institutions and eligible employers must report annually to the office. The report must include at least the following:
(1) the number of interns hired;
(2) the number of hours and weeks worked by interns; and
(3) the compensation paid to interns.
(f) An internship required to complete
an academic program does not qualify for the greater Minnesota internship
program under this section.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 2. Minnesota Statutes 2015 Supplement, section 289A.02, subdivision 7, is amended to read:
Subd. 7. Internal
Revenue Code. Unless specifically
defined otherwise, "Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended through December 31, 2014 2015.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. 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. A day does not qualify as a Minnesota day if the taxpayer traveled from a place outside of Minnesota primarily for and essential to obtaining medical care, as defined in Internal Revenue Code, section 213(d)(1)(A), in Minnesota for the taxpayer, spouse, or a dependent of the taxpayer and the travel expense is allowed under Internal Revenue Code, section 213(d)(1)(B), and is claimed by the taxpayer as a deductible expense. 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:
(i) an individual or business entity
engaged in business as a certified financial planner, registered investment
adviser, licensed insurance producer or agent, or a registered securities
broker-dealer representative; or
(ii) a financial institution providing
services related to trust or estate administration, investment management, or
financial planning; 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, 2015, except the
amendment to paragraph (b) is effective for taxable years beginning after
December 31, 2016.
Sec. 4. Minnesota Statutes 2015 Supplement, section 290.01, subdivision 19, is amended to read:
Subd. 19. Net income. The term "net income" means the federal taxable income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through the date named in this subdivision, incorporating the federal effective dates of changes to the Internal Revenue Code and any elections made by the taxpayer in accordance with the Internal Revenue Code in determining federal taxable income for federal income tax purposes, and with the modifications provided in subdivisions 19a to 19f.
In the case of a regulated investment company or a fund thereof, as defined in section 851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, except that:
(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal Revenue Code does not apply;
(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue Code must be applied by allowing a deduction for capital gain dividends and exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code; and
(3) the deduction for dividends paid must also be applied in the amount of any undistributed capital gains which the regulated investment company elects to have treated as provided in section 852(b)(3)(D) of the Internal Revenue Code.
The net income of a real estate investment trust as defined and limited by section 856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
The net income of a designated settlement fund as defined in section 468B(d) of the Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal Revenue Code.
The Internal Revenue Code of 1986, as amended
through December 31, 2014 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 the day following final enactment, except the changes incorporated by
federal changes are effective retroactively at the same time as the changes
were effective for federal purposes.
Sec. 5. 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 under the dollar limits of 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.
EFFECTIVE
DATE. This section is effective
the day following final enactment, except the changes incorporated by federal
changes are effective retroactively at the same time as the changes were
effective for federal purposes.
Sec. 6. 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, not to exceed $1,625 for each qualifying child in grades kindergarten to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and transportation of each qualifying child in attending an elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory attendance laws, which is not operated for profit, and which adheres to the provisions of the Civil Rights Act of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, "textbooks" includes books and other instructional materials and equipment purchased or leased for use in elementary and secondary schools in teaching only those subjects legally and commonly taught in public elementary and secondary schools in this state. Equipment expenses qualifying for deduction includes expenses as defined and limited in section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional books and materials used in the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship, nor does it include books or materials for, or transportation to, extracurricular activities including sporting events, musical or dramatic events, speech activities, driver's education, or similar programs. No deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or the qualifying child's vehicle to provide such transportation for a qualifying child. For purposes of the subtraction provided by this clause, "qualifying child" has the meaning given in section 32(c)(3) of the Internal Revenue Code;
(4) income as provided under section 290.0802;
(5) to the extent included in federal adjusted gross income, income realized on disposition of property exempt from tax under section 290.491;
(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) of the Internal Revenue Code in determining federal taxable income by an individual who does not itemize deductions for federal income tax purposes for the taxable year, an amount equal to 50 percent of the excess of charitable contributions over $500 allowable as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, under the provisions of Public Law 109-1 and Public Law 111-126;
(7) for individuals who are allowed a federal foreign tax credit for taxes that do not qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover of subnational foreign taxes for the taxable year, but not to exceed the total subnational foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, "federal foreign tax credit" means the credit allowed under section 27 of the Internal Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed under section 904(c) of the Internal Revenue Code minus national level foreign taxes to the extent they exceed the federal foreign tax credit;
(8) in each of the five tax years immediately following the tax year in which an addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, clause (12), in the case of a shareholder of an S corporation, minus the positive value of any net operating loss under section 172 of the Internal Revenue Code generated for the tax year of the addition. The resulting delayed depreciation cannot be less than zero;
(9) job opportunity building zone income as provided under section 469.316;
(10) to the extent included in federal taxable income, the amount of compensation paid to members of the Minnesota National Guard or other reserve components of the United States military for active service, 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.
(21) the amount equal to the
contributions made during the taxable year to an account in a plan qualifying
under section 529 of the Internal Revenue Code, reduced by any withdrawals from
the account during the taxable year, not including amounts rolled over from
other accounts in plans qualifying under section 529 of the Internal Revenue
Code, 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; and
(22) to the extent included in federal
taxable income, the discharge of indebtedness of the taxpayer if the
indebtedness discharged is a qualified education loan, as defined in section
221 of the Internal Revenue Code, and the indebtedness was discharged following
the taxpayer's completion of an income-driven repayment plan. For purposes of this clause,
"income-driven repayment plan" means a payment plan established by
the United States Department of Education that sets monthly student loan
payments based on income and family size under United States Code, title 20,
section 1087e, or similar authority and specifically includes, but is not
limited to:
(1) the income-based repayment plan
under United State Code, title 20, section 1098e;
(2)
the income contingent repayment plan established under United State Code, title
20, section 1087e, subsection (e); and
(3) the PAYE program or REPAYE program
established by the Department of Education under administrative regulations.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 7. Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read:
Subd. 19c. Corporations; additions to federal taxable income. For corporations, there shall be added to federal taxable income:
(1) the amount of any deduction taken for federal income tax purposes for income, excise, or franchise taxes based on net income or related minimum taxes, including but not limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota, another state, a political subdivision of another state, the District of Columbia, or any foreign country or possession of the United States;
(2) interest not subject to federal tax upon obligations of: the United States, its possessions, its agencies, or its instrumentalities; the state of Minnesota or any other state, any of its political or governmental subdivisions, any of its municipalities, or any of its governmental agencies or instrumentalities; the District of Columbia; or Indian tribal governments;
(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal Revenue Code;
(4) the
amount of any net operating loss deduction taken for federal income tax
purposes under section 172 or 832(c)(10) of the Internal Revenue Code or
operations loss deduction under section 810 of the Internal Revenue Code;
(5) the amount of any special deductions taken for federal income tax purposes under sections 241 to 247 and 965 of the Internal Revenue Code;
(6) losses from the business of mining, as defined in section 290.05, subdivision 1, clause (a), that are not subject to Minnesota income tax;
(7) the amount of any capital losses deducted for federal income tax purposes under sections 1211 and 1212 of the Internal Revenue Code;
(8) the amount of percentage depletion deducted under sections 611 through 614 and 291 of the Internal Revenue Code;
(9) for certified pollution control facilities placed in service in a taxable year beginning before December 31, 1986, and for which amortization deductions were elected under section 169 of the Internal Revenue Code of 1954, as amended through December 31, 1985, the amount of the amortization deduction allowed in computing federal taxable income for those facilities;
(10) 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;
(11) any increase in subpart F income, as defined in section 952(a) of the Internal Revenue Code, for the taxable year when subpart F income is calculated without regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
(12) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that in the taxable year generates a deduction for depreciation under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the amount of the loss from the activity that is not allowed in the taxable year. In succeeding taxable years when the losses not allowed in the taxable year are allowed, the depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;
(13) 80 percent of the amount by which the
deduction allowed by section 179 of the Internal Revenue Code exceeds the
deduction allowable by under the dollar limits of section 179 of
the Internal Revenue Code of 1986, as amended through December 31, 2003;
(14) to the extent deducted in computing federal taxable income, the amount of the deduction allowable under section 199 of the Internal Revenue Code;
(15) the amount of expenses disallowed under section 290.10, subdivision 2; and
(16) discharge of indebtedness income resulting from reacquisition of business indebtedness and deferred under section 108(i) of the Internal Revenue Code.
EFFECTIVE
DATE. This section is
effective the day following final enactment, except the changes incorporated by
federal changes are effective retroactively at the same time as the changes
were effective for federal purposes.
Sec. 8. 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.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 9. Minnesota Statutes 2015 Supplement, section 290.01, subdivision 31, is amended to read:
Subd. 31. Internal
Revenue Code. Unless specifically
defined otherwise, "Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended through December 31, 2014 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 as the changes
were effective for federal purposes.
Sec. 10. Minnesota Statutes 2014, section 290.06, subdivision 22, is amended to read:
Subd. 22. Credit for taxes paid to another state. (a) A taxpayer who is liable for taxes based on net income to another state, as provided in paragraphs (b) through (f), upon income allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to another state if the tax is actually paid in the taxable year or a subsequent taxable year. A taxpayer who is a resident of this state pursuant to section 290.01, subdivision 7, paragraph (b), and who is subject to income tax as a resident in the state of the individual's domicile is not allowed this credit unless the state of domicile does not allow a similar credit.
(b) For an individual, estate, or trust, the credit is determined by multiplying the tax payable under this chapter by the ratio derived by dividing the income subject to tax in the other state that is also subject to tax in Minnesota while a resident of Minnesota by the taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue Code, modified by the addition required by section 290.01, subdivision 19a, clause (1), and the subtraction allowed by section 290.01, subdivision 19b, clause (1), to the extent the income is allocated or assigned to Minnesota under sections 290.081 and 290.17.
(c) If the taxpayer is an athletic team that apportions all of its income under section 290.17, subdivision 5, the credit is determined by multiplying the tax payable under this chapter by the ratio derived from dividing the total net income subject to tax in the other state by the taxpayer's Minnesota taxable income.
(d)(1) The credit determined under
paragraph (b) or (c) shall not exceed the amount of tax so paid to the other
state on the gross income earned within the other state subject to tax under
this chapter,.
nor shall (2) The allowance
of the credit does not reduce the taxes paid under this chapter to an
amount less than what would be assessed if such income amount was the
gross income earned within the other state were excluded from taxable net
income.
(e) In the case of the tax assessed on a lump-sum distribution under section 290.032, the credit allowed under paragraph (a) is the tax assessed by the other state on the lump-sum distribution that is also subject to tax under section 290.032, and shall not exceed the tax assessed under section 290.032. To the extent the total lump-sum
distribution defined in section 290.032, subdivision 1, includes lump-sum distributions received in prior years or is all or in part an annuity contract, the reduction to the tax on the lump-sum distribution allowed under section 290.032, subdivision 2, includes tax paid to another state that is properly apportioned to that distribution.
(f) If a Minnesota resident reported an item of income to Minnesota and is assessed tax in such other state on that same income after the Minnesota statute of limitations has expired, the taxpayer shall receive a credit for that year under paragraph (a), notwithstanding any statute of limitations to the contrary. The claim for the credit must be submitted within one year from the date the taxes were paid to the other state. The taxpayer must submit sufficient proof to show entitlement to a credit.
(g) For the purposes of this subdivision, a resident shareholder of a corporation treated as an "S" corporation under section 290.9725, must be considered to have paid a tax imposed on the shareholder in an amount equal to the shareholder's pro rata share of any net income tax paid by the S corporation to another state. For the purposes of the preceding sentence, the term "net income tax" means any tax imposed on or measured by a corporation's net income.
(h) For the purposes of this subdivision, a resident partner of an entity taxed as a partnership under the Internal Revenue Code must be considered to have paid a tax imposed on the partner in an amount equal to the partner's pro rata share of any net income tax paid by the partnership to another state. For purposes of the preceding sentence, the term "net income" tax means any tax imposed on or measured by a partnership's net income.
(i) For the purposes of this subdivision, "another state":
(1) includes:
(i) the District of Columbia; and
(ii) a province or territory of Canada; but
(2) excludes Puerto Rico and the several territories organized by Congress.
(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a state by state basis.
(k) For a tax imposed by a province or territory of Canada, the tax for purposes of this subdivision is the excess of the tax over the amount of the foreign tax credit allowed under section 27 of the Internal Revenue Code. In determining the amount of the foreign tax credit allowed, the net income taxes imposed by Canada on the income are deducted first. Any remaining amount of the allowable foreign tax credit reduces the provincial or territorial tax that qualifies for the credit under this subdivision.
(l) If the amount of the credit which a qualifying individual is eligible to receive under this section for tax paid to a qualifying state, disregarding the limitation in paragraph (d), clause (2), exceeds the tax due under this chapter, the commissioner shall refund the excess to the individual. An amount sufficient to pay the refunds required by this section is appropriated to the commissioner from the general fund.
For purposes of this paragraph, "qualifying
individual" means a Minnesota resident under section 290.01, subdivision
7, paragraph (a), who received compensation during the taxable year for the
performance of personal or professional services within a qualifying state, and
"qualifying state" means a state with which an agreement under section 290.081 is not in effect for the taxable
year but was in effect for a taxable year beginning before January 1, 2010.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 11. 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, 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 subject to the limitations provided in subdivision 2 except
that in determining whether the child qualified as a dependent, income received
as a Minnesota family investment program grant or allowance to or on behalf of
the child must not be taken into account in determining whether the child
received more than half of the child's support from the taxpayer, and the
provisions of section 32(b)(1)(D) of the Internal Revenue Code do not apply.
(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. If the child is 16 months old or younger at the close of the taxable year, the amount of expenses deemed to have been paid equals the maximum limit for one qualified 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 expenses deemed to have been paid equals the amount the licensee would charge for the care of a child of the same age for the same number of hours of care.
(c) If a 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.
(d) If the taxpayer is not required and does not file a federal individual income tax return for the tax year, 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) 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 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) 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) 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."
(h) For taxpayers with federal adjusted
gross income in excess of $38,000, the credit is equal to the lesser of the
credit otherwise calculated under this subdivision or the amount equal to the
credit otherwise calculated under this subdivision minus ten percent of federal
adjusted gross income in excess of $38,000, but in no case is the credit less
than zero. For purposes of this
paragraph, "federal adjusted gross income" has the meaning given in
section 62 of the Internal Revenue Code.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 12. 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 1 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" "2015"
shall be substituted for the word "1992." For 2001 2017, the commissioner
shall then determine the percent change from the 12 months ending on August 31,
1999 2015, to the 12 months ending on August 31, 2000 2016,
and in each subsequent year, from the 12 months ending on August 31, 1999
2015, 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, 2016.
Sec. 13. Minnesota Statutes 2015 Supplement, 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:
(i) the earned income and adjusted
gross income limitations of section 32 of the Internal Revenue Code do not
apply; and
(ii) a taxpayer with no qualifying
children who has attained the age of 21 but not attained age 65 before the
close of the taxable year and is otherwise eligible for a credit under section
32 of the Internal Revenue Code may also receive a credit.
(b) For individuals with no qualifying
children, the credit equals 2.10 three percent of the first $6,180
$6,500 of earned income. The
credit is reduced by 2.01 three percent of earned income or
adjusted gross income, whichever is greater, in excess of $8,130 $12,000,
but in no case is the credit less than zero.
(c) For individuals with one qualifying
child, the credit equals 9.35 12.71 percent of the first $11,120
$8,350 of earned income. The
credit is reduced by 6.02 5.2 percent of earned income or
adjusted gross income, whichever is greater, in excess of $21,190 $21,620,
but in no case is the credit less than zero.
(d)
For individuals with two or more qualifying children, the credit equals 11
14.94 percent of the first $18,240 $13,700 of earned
income. The credit is reduced by 10.82
9.2 percent of earned income or adjusted gross income, whichever is
greater, in excess of $25,130 $25,640, but in no case is the credit
less than zero.
(e) For a 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 $12,000 in paragraph (b), the $21,190
$21,620 in paragraph (c), and the $25,130 $25,640 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
2017, 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 2018, 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 2017, 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 in paragraph (b), the
$15,080 in paragraph (c), and the $17,890 in paragraph (d), after being
adjusted for inflation under subdivision 7, are
increased by $5,340 for married taxpayers filing joint returns; and (2) For tax years beginning after December 31,
2013 2015, and before January 1, 2018, the $8,130 $12,000
in paragraph (b), the $21,190 $21,620 in paragraph (c), and the $25,130
$25,640 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 2015, and before January 1, 2018, the
commissioner shall annually adjust the $5,000 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 "2008" 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, to the 12 months ending on August 31, 2010 2015, and in
each subsequent year, from the 12 months ending on August 31, 2008, 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, 2015.
Sec. 14. 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"
"2015" shall be substituted for the word "1992." For 2015 2017, the commissioner
shall then determine the percent change from the 12 months ending on August 31,
2013 2015, to the 12 months ending on August 31, 2014 2016,
and in each subsequent year, from the 12 months ending on August 31, 2013
2015, 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, 2016.
Sec. 15. 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, the maximum credit allowed for a family is $1,000 multiplied by the number of qualifying children in kindergarten through grade 12 in the family. The maximum credit for families with one qualifying child in kindergarten through grade 12 is reduced by $1 for each $4 of household income over $33,500, and the maximum credit for families with two or more qualifying children in kindergarten through grade 12 is reduced by $2 for each $4 of household income over $33,500, 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).
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 16. Minnesota Statutes 2014, section 290.0674, is amended by adding a subdivision to read:
Subd. 2a. Income. (a) 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.
(b) "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, 2015.
Sec. 17. Minnesota Statutes 2014, section 290.0677, subdivision 1a, is amended to read:
Subd. 1a. Credit
allowed; past military service. (a)
A qualified individual is allowed a credit against the tax imposed under this
chapter for past military service. The
credit equals $750 $1,000.
The credit allowed under this subdivision is reduced by ten percent of
adjusted gross income in excess of $30,000 $50,000, but in no
case is the credit less than zero.
(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).
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 18. Minnesota Statutes 2014, section 290.068, subdivision 2, is amended to read:
Subd. 2. Definitions. For purposes of this section, the following terms have the meanings given.
(a) "Qualified research expenses" means (i) qualified research expenses and basic research payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does not include expenses incurred for qualified research or basic research conducted outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and (ii) contributions to a nonprofit corporation established and operated pursuant to the provisions of chapter 317A for the purpose of promoting the establishment and expansion of business in this state, provided the contributions are invested by the nonprofit corporation for the purpose of providing funds for small, technologically innovative enterprises in Minnesota during the early stages of their development.
(b) "Qualified research" means qualified research as defined in section 41(d) of the Internal Revenue Code, except that the term does not include qualified research conducted outside the state of Minnesota.
(c) "Base amount" means base
amount as defined in section 41(c) of the Internal Revenue Code, except that
the average annual gross receipts must be calculated using Minnesota sales or
receipts under section 290.191 and the definitions contained in clauses (a) and
(b) shall apply. If there are
inadequate records or the records are unavailable to compute or verify the base
percentage, a fixed base percentage of 16 percent must be used.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 19. [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)
holds a continuing license granted by the Minnesota Board of Teaching both when
the teacher begins the master's degree program and when the teacher completes
the master's degree program;
(2) began a master's degree program
after June 30, 2016; 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.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
Sec. 20. [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. In the case of a married
couple filing jointly, "adjusted gross income" means the adjusted
gross income of the taxpayer and spouse.
(c)
"Earned income" has the meaning given in section 32(c) of the
Internal Revenue Code, except that "earned income" includes combat
pay excluded from federal taxable income under section 112 of the Internal
Revenue Code.
(d) "Education profession"
means:
(1) a full-time job in public
education; early childhood education, including licensed or regulated child
care, Head Start, and state-funded prekindergarten; school-based library
sciences; and other school-based services; or
(2) a full-time job as a faculty member
at a tribal college or university as defined in section 1059c(b) of the
Internal Revenue Code, and other faculty teaching in high-needs subject areas
or areas of shortage, including nurse faculty, foreign language faculty, and
part-time faculty at community colleges, as determined by the United States
Secretary of Education.
(e) "Eligible individual"
means an individual who has one or more qualified education loans related to an
undergraduate or graduate degree program of the individual at a postsecondary
educational institution.
(f)
"Eligible loan payments" means the amount the eligible individual
paid during the taxable year to pay principal and interest on qualified
education loans.
(g) "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.
(h) "Public service job"
means a full-time job in emergency management; government, excluding time
served as a member of Congress; military service; public safety; law
enforcement; public health, including nurses, nurse practitioners, nurses in a
clinical setting, and full-time professionals engaged in health care
practitioner occupations and health care support occupations, as such terms are
defined by the Bureau of Labor Statistics; social work in a public child or
family service agency; public interest law services including prosecution or
public defense or legal advocacy on behalf of low-income communities at a
nonprofit organization; public service for individuals with disabilities or public service for the elderly;
public library sciences; or at an organization that is described in section
501(c)(3) of the Internal Revenue Code and exempt from taxation under section
501(a) of the Internal Revenue Code.
(i) "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.
Subd. 2. Credit
allowed. (a) An eligible
individual is allowed a credit against the tax due under this chapter. The credit equals a percentage of eligible
loan payments in excess of ten percent of adjusted gross income, up to $1,000,
as follows:
(1) for eligible individuals, 50
percent;
(2) for eligible individuals in a
public service job, 65 percent; and
(3) for eligible individuals in an
education profession, 75 percent.
(b) The credit must not exceed the
eligible individual's earned income for the taxable year.
(c) In the case of a married couple
filing a joint return, each spouse is eligible for the credit in this section.
(d) 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).
(e) An eligible individual may receive
the credit under this section without regard to the individual's eligibility
for the public service loan forgiveness program under United States Code, title
20, section 1087e(m).
Subd. 3. Credit
refundable. If the amount of
credit that an individual who is a resident or part-year resident of Minnesota
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. For a nonresident taxpayer,
the credit may not exceed the taxpayer's liability for tax under this chapter.
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, 2015.
Sec. 21. [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). The credit is not allowed to an individual
who is eligible to be claimed as a dependent, as defined in sections 151 and
152 of the Internal Revenue Code.
(b) The credit allowed must be
calculated by applying the following rates to the amount contributed to an
account in a plan qualifying under section 529 of the Internal Revenue Code, in
a taxable year, reduced by any withdrawals from the account made during the
taxable year, and not including any amounts rolled over from other accounts in
plans qualifying under section 529 of the Internal Revenue Code:
(1) 50 percent for individual filers
and married couples filing a joint return who have federal adjusted gross
income of not more 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
"2015" is substituted for the word "1992." For 2017, the commissioner shall then
determine the percent change from the 12 months ending on August 31, 2015, to
the 12 months ending on August 31, 2016, and in each subsequent year, from the
12 months ending on August 31, 2015, 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, 2015.
Sec. 22. [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 modification allowed under section
290.01, subdivision 19b or 19d, in determining net income. If the amount allowed under subdivision 1
exceeds net income computed without regard to the current year allowance, 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 under section 290.01, subdivision 19b or 19d. 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, 2015.
Sec. 23. 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) (22); 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, 2015.
Sec. 24. Minnesota Statutes 2015 Supplement, section 290A.03, subdivision 15, is amended to read:
Subd. 15. Internal
Revenue Code. "Internal Revenue
Code" means the Internal Revenue Code of 1986, as amended through December
31, 2014 2015.
EFFECTIVE
DATE. This section is
effective retroactively for property tax refunds based on property taxes
payable after December 31, 2015, and rent paid after December 31, 2014.
Sec. 25. Minnesota Statutes 2015 Supplement, section 291.005, subdivision 1, is amended to read:
Subdivision 1. Scope. Unless the context otherwise clearly requires, the following terms used in this chapter shall have the following meanings:
(1) "Commissioner" means the commissioner of revenue or any person to whom the commissioner has delegated functions under this chapter.
(2) "Federal gross estate" means the gross estate of a decedent as required to be valued and otherwise determined for federal estate tax purposes under the Internal Revenue Code, increased by the value of any property in which the decedent had a qualifying income interest for life and for which an election was made under section 291.03, subdivision 1d, for Minnesota estate tax purposes, but was not made for federal estate tax purposes.
(3) "Internal Revenue Code" means
the United States Internal Revenue Code of 1986, as amended through December
31, 2014 2015.
(4) "Minnesota gross estate" means the federal gross estate of a decedent after (a) excluding therefrom any property included in the estate which has its situs outside Minnesota, and (b) including any property omitted from the federal gross estate which is includable in the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
(5) "Nonresident decedent" means an individual whose domicile at the time of death was not in Minnesota.
(6) "Personal representative" means the executor, administrator or other person appointed by the court to administer and dispose of the property of the decedent. If there is no executor, administrator or other person appointed, qualified, and acting within this state, then any person in actual or constructive possession of any property having a situs in this state which is included in the federal gross estate of the decedent shall be deemed to be a personal representative to the extent of the property and the Minnesota estate tax due with respect to the property.
(7) "Resident decedent" means an
individual whose domicile at the time of death was in Minnesota. The provisions of section 290.01,
subdivision 7, paragraphs (c) and (d), apply to determinations of domicile
under this chapter.
(8) "Situs of property" means, with respect to:
(i) real property, the state or country in which it is located;
(ii) tangible personal property, the state or country in which it was normally kept or located at the time of the decedent's death or for a gift of tangible personal property within three years of death, the state or country in which it was normally kept or located when the gift was executed;
(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue Code, owned by a nonresident decedent and that is normally kept or located in this state because it is on loan to an organization, qualifying as exempt from taxation under section 501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
(iv) intangible personal property, the state or country in which the decedent was domiciled at death or for a gift of intangible personal property within three years of death, the state or country in which the decedent was domiciled when the gift was executed.
For a nonresident decedent with an ownership interest in a pass-through entity with assets that include real or tangible personal property, situs of the real or tangible personal property, including qualified works of art, is determined as if the pass-through entity does not exist and the real or tangible personal property is personally owned by the decedent. If the pass-through entity is owned by a person or persons in addition to the decedent, ownership of the property is attributed to the decedent in proportion to the decedent's capital ownership share of the pass-through entity.
(9) "Pass-through entity" includes the following:
(i) an entity electing S corporation status under section 1362 of the Internal Revenue Code;
(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
(iii) a single-member limited liability company or similar entity, regardless of whether it is taxed as an association or is disregarded for federal income tax purposes under Code of Federal Regulations, title 26, section 301.7701-3; or
(iv) a trust to the extent the property is includible in the decedent's federal gross estate; but excludes
(v) an entity whose ownership interest securities are traded on an exchange regulated by the Securities and Exchange Commission as a national securities exchange under section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.
EFFECTIVE DATE. This section is effective retroactively for
estates of decedents dying after December 31, 2015.
Sec. 26. Minnesota Statutes 2014, section 291.03, is amended by adding a subdivision to read:
Subd. 12. Certain
dispositions to government entities.
Notwithstanding any provision of this section, no taxpayer is
disqualified for the subtraction provided under section 291.016, subdivision 3,
nor is any taxpayer liable for the recapture tax provided in subdivision 11,
solely because the state, any local government unit, or any other entity that
has the power of eminent domain acquires title or possession of the land for a
public purpose within the three-year holding period.
EFFECTIVE
DATE. This section is
effective retroactively for estates of decedents dying after June 30, 2011.
Sec. 27. AMENDED
RETURNS.
Subdivision 1. Certain
IRA rollovers. An individual
who excludes an amount from net income in a prior taxable year through rollover
of an airline payment amount to a traditional IRA, as authorized under Public
Law 114-113, division Q, title III, section 307, may file an amended individual
income tax return and claim for refund of state taxes as provided under
Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by September
1, 2016.
Subd. 2. Exclusion
for certain incarcerated individuals.
An individual who excludes from net income in a prior taxable
year civil damages, restitution, or other monetary award received as
compensation for a wrongful incarceration, as authorized under Public Law
114-113, division Q, title III, section 304, may file an amended individual
income tax return and claim for refund of state taxes as provided under
Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by September
1, 2016.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 28. ESTATE
TAX REVIEW; TEMPORARY LIMIT ON ASSESSMENTS.
(a) The commissioner of revenue shall:
(1) review the estate tax's definition
of qualified farm property and its linkage to the property tax classification
of the property during the three-year period following the death of the
decedent; and
(2) by February 1, 2017, report to the
committees of the house of representatives and the senate with jurisdiction
over taxes on alternative methods of ensuring that the use of the property by
qualified heirs during the three-year period after the decedent's death is
consistent with the purpose of limiting the subtraction to properties where its
use continues that of the decedent without any material change in its use by
the qualified heirs and its ownership is consistent with maintaining family
ownership of the farm.
(b) Prior to June 1, 2017, the
commissioner of revenue shall not assess recapture tax under Minnesota
Statutes, section 291.03, subdivision 11, for a change in the property tax
classification of agricultural homestead property if the following conditions
are satisfied:
(1) the property is held in a trust of
which the surviving spouse is a beneficiary; and
(2) the property receives partial
homestead classification because a beneficiary of the trust is the owner of
another agricultural homestead.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 29. INDIVIDUAL
INCOME TAX COLLECTION ACTION PROHIBITED.
Notwithstanding any law to the contrary, the commissioner of revenue shall not increase the amount due or decrease the refund for an individual income tax return for the taxable year beginning after December 31, 2014, and before January 1, 2016, to the extent the amount due was understated or the refund was overstated because the taxpayer calculated the tax or refund based on the Internal Revenue Code, as amended through December 31, 2014, rather than based on the Internal Revenue Code, as amended through December 31, 2015, as provided in this act.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 30. REPEALER.
Minnesota Statutes 2014, section
290.067, subdivisions 2 and 2a, are repealed.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2015.
ARTICLE 4
SALES AND USE TAXES
Section 1. Minnesota Statutes 2014, section 297A.61, subdivision 3, is amended to read:
Subd. 3. Sale and purchase. (a) "Sale" and "purchase" include, but are not limited to, each of the transactions listed in this subdivision. In applying the provisions of this chapter, the terms "tangible personal property" and "retail sale" include the taxable services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision of these taxable services, unless specifically provided otherwise. Services performed by an employee for an employer are not taxable. Services performed by a partnership or association for another partnership or association are not taxable if one of the entities owns or controls more than 80 percent of the voting power of the
equity interest in the other entity. Services performed between members of an affiliated group of corporations are not taxable. For purposes of the preceding sentence, "affiliated group of corporations" means those entities that would be classified as members of an affiliated group as defined under United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b).
(b) Sale and purchase include:
(1) any transfer of title or possession, or both, of tangible personal property, whether absolutely or conditionally, for a consideration in money or by exchange or barter; and
(2) the leasing of or the granting of a license to use or consume, for a consideration in money or by exchange or barter, tangible personal property, other than a manufactured home used for residential purposes for a continuous period of 30 days or more.
(c) Sale and purchase include the production, fabrication, printing, or processing of tangible personal property for a consideration for consumers who furnish either directly or indirectly the materials used in the production, fabrication, printing, or processing.
(d) Sale and purchase include the preparing for a consideration of food. Notwithstanding section 297A.67, subdivision 2, taxable food includes, but is not limited to, the following:
(1) prepared food sold by the retailer;
(2) soft drinks;
(3) candy;
(4) dietary supplements; and
(5) all food sold through vending machines.
(e) A sale and a purchase includes the furnishing for a consideration of electricity, gas, water, or steam for use or consumption within this state.
(f) A sale and a purchase includes the transfer for a consideration of prewritten computer software whether delivered electronically, by load and leave, or otherwise.
(g) A sale and a purchase includes the furnishing for a consideration of the following services:
(1) the privilege of admission to places of amusement, recreational areas, or athletic events, and the making available of amusement devices, tanning facilities, reducing salons, steam baths, health clubs, and spas or athletic facilities;
(2) lodging and related services by a hotel, rooming house, resort, campground, motel, or trailer camp, including furnishing the guest of the facility with access to telecommunication services, and the granting of any similar license to use real property in a specific facility, other than the renting or leasing of it for a continuous period of 30 days or more under an enforceable written agreement that may not be terminated without prior notice and including accommodations intermediary services provided in connection with other services provided under this clause;
(3) nonresidential parking services, whether on a contractual, hourly, or other periodic basis, except for parking at a meter;
(4) the granting of membership in a club, association, or other organization if:
(i) the club, association, or other organization makes available for the use of its members sports and athletic facilities, without regard to whether a separate charge is assessed for use of the facilities; and
(ii) use of the sports and athletic facility is not made available to the general public on the same basis as it is made available to members.
Granting of membership means both onetime initiation fees and periodic membership dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and squash courts; basketball and volleyball facilities; running tracks; exercise equipment; swimming pools; and other similar athletic or sports facilities;
(5) delivery of aggregate materials by a third party, excluding delivery of aggregate material used in road construction; and delivery of concrete block by a third party if the delivery would be subject to the sales tax if provided by the seller of the concrete block. For purposes of this clause, "road construction" means construction of:
(i) public roads;
(ii) cartways; and
(iii) private roads in townships located outside of the seven-county metropolitan area up to the point of the emergency response location sign; and
(6) services as provided in this clause:
(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not include services provided by coin operated facilities operated by the customer;
(ii) motor vehicle washing, waxing, and cleaning services, including services provided by coin operated facilities operated by the customer, and rustproofing, undercoating, and towing of motor vehicles;
(iii) building and residential cleaning, maintenance, and disinfecting services and pest control and exterminating services;
(iv) detective, security, burglar, fire alarm, and armored car services; but not including services performed within the jurisdiction they serve by off-duty licensed peace officers as defined in section 626.84, subdivision 1, or services provided by a nonprofit organization or any organization at the direction of a county for monitoring and electronic surveillance of persons placed on in-home detention pursuant to court order or under the direction of the Minnesota Department of Corrections;
(v) pet grooming services;
(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor plant care; tree, bush, shrub, and stump removal, except when performed as part of a land clearing contract as defined in section 297A.68, subdivision 40; and tree trimming for public utility lines. Services performed under a construction contract for the installation of shrubbery, plants, sod, trees, bushes, and similar items are not taxable;
(vii) massages, except when provided by a licensed health care facility or professional or upon written referral from a licensed health care facility or professional for treatment of illness, injury, or disease; and
(viii) the furnishing of lodging, board, and care services for animals in kennels and other similar arrangements, but excluding veterinary and horse boarding services.
(h) A sale and a purchase includes the furnishing for a consideration of tangible personal property or taxable services by the United States or any of its agencies or instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political subdivisions.
(i) A sale and a purchase includes the furnishing for a consideration of telecommunications services, ancillary services associated with telecommunication services, and pay television services. Telecommunication services include, but are not limited to, the following services, as defined in section 297A.669: air-to-ground radiotelephone service, mobile telecommunication service, postpaid calling service, prepaid calling service, prepaid wireless calling service, and private communication services. The services in this paragraph are taxed to the extent allowed under federal law.
(j) A sale and a purchase includes the furnishing for a consideration of installation if the installation charges would be subject to the sales tax if the installation were provided by the seller of the item being installed.
(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer to a customer when (1) the vehicle is rented by the customer for a consideration, or (2) the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section 59B.02, subdivision 11.
(l) A sale and a purchase includes furnishing for a consideration of specified digital products or other digital products or granting the right for a consideration to use specified digital products or other digital products on a temporary or permanent basis and regardless of whether the purchaser is required to make continued payments for such right. Wherever the term "tangible personal property" is used in this chapter, other than in subdivisions 10 and 38, the provisions also apply to specified digital products, or other digital products, unless specifically provided otherwise or the context indicates otherwise.
(m) The sale of the privilege of
admission under section 297A.61, subdivision 3, paragraph (g), clause (1), to a
place of amusement or athletic event includes all charges included in the
privilege of admission's sales price, without deduction for amenities that may
be provided, unless the amenities are separately stated and the purchaser of
the privilege of admission is entitled to add or decline the amenities, and the
amenities are not otherwise taxable.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2014, section 297A.66, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) To the extent allowed by the United States Constitution and the laws of the United States, "retailer maintaining a place of business in this state," or a similar term, means a retailer:
(1) having or maintaining within this state, directly or by a subsidiary or an affiliate, an office, place of distribution, sales, storage, or sample room or place, warehouse, or other place of business, including the employment of a resident of this state who works from a home office in this state; or
(2) having a representative, including, but
not limited to, an affiliate, agent, salesperson, canvasser, or marketplace
provider, solicitor, or other third party operating in this state
under the authority of the retailer or its subsidiary, for any purpose,
including the repairing, selling, delivering, installing, facilitating
sales, processing sales, or soliciting of orders for the retailer's goods
or services, or the leasing of tangible personal property located in this
state, whether the place of business or agent, representative, affiliate,
salesperson, canvasser, or solicitor is located in the state permanently or
temporarily, or whether or not the retailer, subsidiary, or affiliate is
authorized to do business in this state.
A retailer is represented by a marketplace provider in this state if
the retailer makes sales in this state facilitated by a marketplace provider
that maintains a place of business in this state.
(b) "Destination of a sale" means the location to which the retailer makes delivery of the property sold, or causes the property to be delivered, to the purchaser of the property, or to the agent or designee of the purchaser. The delivery may be made by any means, including the United States Postal Service or a for-hire carrier.
(c) "Marketplace provider"
means any person who facilitates a retail sale by a retailer by:
(1) listing or advertising for sale by
the retailer in any forum, tangible personal property, services, or digital
goods that are subject to tax under this chapter; and
(2) either directly or indirectly through
agreements or arrangements with third parties collecting payment from the
customer and transmitting that payment to the retailer regardless of whether
the marketplace provider receives compensation or other consideration in
exchange for its services.
(d) "Total taxable retail
sales" means the gross receipts from the sale of all tangible goods,
services, and digital goods subject to sales and use tax under this chapter.
Sec. 3. Minnesota Statutes 2014, section 297A.66, subdivision 2, is amended to read:
Subd. 2. Retailer maintaining place of business in this state. (a) Except as provided in paragraph (b), a retailer maintaining a place of business in this state who makes retail sales in Minnesota or to a destination in Minnesota shall collect sales and use taxes and remit them to the commissioner under section 297A.77.
(b) A retailer with total taxable
retail sales to customers in this state of less than $10,000 in the 12-month
period ending on the last day of the most recently completed calendar quarter
is not required to collect and remit sales tax if it is determined to be a
retailer maintaining a place of business in the state solely because it made
sales through one or more marketplace providers. The provisions of this paragraph do not apply
to a retailer that is or was registered to collect sales and use tax in this
state.
Sec. 4. Minnesota Statutes 2014, section 297A.66, subdivision 4, is amended to read:
Subd. 4. Affiliated entities. (a) An entity is an "affiliate" of the retailer for purposes of subdivision 1, paragraph (a), if the entity:
(1) the entity uses its facilities
or employees in this state to advertise, promote, or facilitate the
establishment or maintenance of a market for sales of items by the retailer to
purchasers in this state or for the provision of services to the retailer's
purchasers in this state, such as accepting returns of purchases for the
retailer, providing assistance in resolving customer complaints of the
retailer, or providing other services; and
(2) the retailer and the entity are
related parties. has the same or a similar business name to the retailer
and sells, from a location or locations in this state, tangible personal
property, digital goods, or services, taxable under this chapter, that are
similar to that sold by the retailer;
(3) maintains an office, distribution
facility, salesroom, warehouse, storage place, or other similar place of
business in this state to facilitate the delivery of tangible personal
property, digital goods, or services sold by the retailer to its customers in
this state;
(4) maintains a place of business in
this state and uses trademarks, service marks, or trade names in this state
that are the same or substantially similar to those used by the retailer, and
that use is done with the express or implied consent of the holder of the marks
or names;
(5)
delivers, installs, or assembles tangible personal property in this state, or
performs maintenance or repair services on tangible personal property in this
state, for tangible personal property sold by the retailer;
(6) facilitates the delivery of
tangible personal property to customers of the retailer by allowing the
customers to pick up tangible personal property sold by the retailer at a place
of business the entity maintains in this state; or
(7) shares management, business
systems, business practices, or employees with the retailer, or engages in
intercompany transactions with the retailer related to the activities that
establish or maintain the market in this state of the retailer.
(b) Two entities are related parties under this section if one of the entities meets at least one of the following tests with respect to the other entity:
(1) one or both entities is a corporation, and one entity and any party related to that entity in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of section 318 of the Internal Revenue Code owns directly, indirectly, beneficially, or constructively at least 50 percent of the value of the corporation's outstanding stock;
(2) one or both entities is a partnership,
estate, or trust and any partner or beneficiary, and the partnership, estate,
or trust and its partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at least 50 percent of the
profits, capital, stock, or value of the other entity or both entities; or
(3) an individual stockholder and the
members of the stockholder's family (as defined in section 318 of the Internal
Revenue Code) owns directly, indirectly, beneficially, or constructively, in
the aggregate, at least 50 percent of the value of both entities' outstanding
stock.;
(4) the entities are related within the
meaning of subsections (b) and (c) of section 267 or 707(b)(1) of the Internal
Revenue Code; or
(5) the entities have one or more
ownership relationships and the relationships were designed with a principal
purpose of avoiding the application of this section.
(c) An entity is an affiliate under the provisions of this subdivision if the requirements of paragraphs (a) and (b) are met during any part of the 12-month period ending on the first day of the month before the month in which the sale was made.
Sec. 5. Minnesota Statutes 2014, section 297A.66, is amended by adding a subdivision to read:
Subd. 4b. Collection
and remittance requirements for marketplace providers and marketplace sellers. (a) A marketplace provider shall
collect sales and use taxes and remit them to the commissioner under section
297A.77 for all facilitated sales for a retailer, and is subject to audit on
the retail sales it facilitates unless the retailer either:
(1) provides a copy of the retailer's
registration to collect sales and use tax in this state to the marketplace
provider before the marketplace provider facilitates a sale; or
(2) upon inquiry by the marketplace
provider or its agent, the commissioner discloses that the retailer is
registered to collect sales and use taxes in this state.
(b) Nothing in this subdivision shall
be construed to interfere with the ability of a marketplace provider and a
retailer to enter into an agreement regarding fulfillment of the requirements
of this chapter.
(c)
A marketplace provider is not liable under this subdivision for failure to file
and collect and remit sales and use taxes if the marketplace provider
demonstrates that the error was due to incorrect or insufficient information
given to the marketplace provider by the retailer. This paragraph does not apply if the
marketplace provider and the marketplace seller are related as defined in
subdivision 4, paragraph (b).
Sec. 6. Minnesota Statutes 2014, section 297A.67, subdivision 7a, is amended to read:
Subd. 7a. Accessories
and supplies. Accessories and
supplies required for the effective use of durable medical equipment for home
use only or purchased in a transaction covered by Medicare or, Medicaid,
or other health insurance plan, that are not already exempt under
subdivision 7, are exempt. Accessories
and supplies for the effective use of a prosthetic device, that are not already
exempt under subdivision 7, are exempt. For
purposes of this subdivision "durable medical equipment,"
"prosthetic device," "Medicare," and "Medicaid"
have the definitions given in subdivision 7., and "other health
insurance plan" means a health plan defined in section 62A.011,
subdivision 3, or 62V.02, subdivision 4, or a qualified health plan defined in
section 62A.011, subdivision 7.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 7. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision to read:
Subd. 34. Suite
licenses. The sale of the
privilege of admission under section 297A.61, subdivision 3, paragraph (g),
clause (1), to a place of amusement or athletic event does not include
consideration paid for a license to use a private suite, private skybox, or
private box seat provided that: (1) the
lessee may use the private suite, private skybox, or private box seat by mutual
arrangement with the lessor on days when there is no amusement or athletic event; and (2) the sales price for the
privilege of admission is separately stated and is equal to or greater than the
highest priced general admission ticket for the closest seat not in the private
suite, private skybox, or private box seat.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 8. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision to read:
Subd. 35. Stadium
builder's licenses. The sale
of the privilege of admission under section 297A.61, subdivision 3, paragraph
(g), clause (1), does not include consideration paid for a stadium builder's
license authorized under section 473J.15, subdivision 14.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 9. Minnesota Statutes 2014, section 297A.68, subdivision 9, is amended to read:
Subd. 9. Super
Bowl admissions and related events.
(a) The granting of the privilege of admission to a world
championship football game sponsored by the National Football League is and
to related events sponsored by the National Football League or its affiliates,
or the Minnesota Super Bowl Host Committee, are exempt.
(b) The sale of nonresidential parking
by the National Football League for attendance at a world championship football
game sponsored by the National Football League and for related events sponsored
by the National Football League or its affiliates, or the Minnesota Super Bowl
Host Committee, is exempt.
(c) For the purposes of this
subdivision:
(1) "related events sponsored by
the National Football League or its affiliates" includes but is not
limited to preparatory advance visits, NFL Experience, NFL Tailgate, NFL On
Location, and NFL House; and
(2)
"affiliates" does not include National Football League teams.
EFFECTIVE
DATE. The amendments to this
section are effective for sales and purchases made after June 30, 2016, and
before March 1, 2018.
Sec. 10. Minnesota Statutes 2014, section 297A.70, subdivision 14, is amended to read:
Subd. 14. Fund-raising events sponsored by nonprofit groups. (a) Sales of tangible personal property or services at, and admission charges for fund-raising events sponsored by, a nonprofit organization are exempt if:
(1) all gross receipts are recorded as such, in accordance with generally accepted accounting practices, on the books of the nonprofit organization; and
(2) the entire proceeds, less the necessary expenses for the event, will be used solely and exclusively for charitable, religious, or educational purposes. Exempt sales include the sale of prepared food, candy, and soft drinks at the fund-raising event.
(b) This exemption is limited in the following manner:
(1) it does not apply to admission charges for events involving bingo or other gambling activities or to charges for use of amusement devices involving bingo or other gambling activities;
(2) all gross receipts are taxable if the profits are not used solely and exclusively for charitable, religious, or educational purposes;
(3) it does not apply unless the organization keeps a separate accounting record, including receipts and disbursements from each fund-raising event that documents all deductions from gross receipts with receipts and other records;
(4) it does not apply to any sale made by or in the name of a nonprofit corporation as the active or passive agent of a person that is not a nonprofit corporation;
(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;
(6) it does not apply to fund-raising
events conducted on premises leased for more than five ten days
but less than 30 days; and
(7) it does not apply if the risk of the event is not borne by the nonprofit organization and the benefit to the nonprofit organization is less than the total amount of the state and local tax revenues forgone by this exemption.
(c) For purposes of this subdivision, a "nonprofit organization" means any unit of government, corporation, society, association, foundation, or institution organized and operated for charitable, religious, educational, civic, fraternal, and senior citizens' or veterans' purposes, no part of the net earnings of which inures to the benefit of a private individual.
(d) For purposes of this subdivision, "fund-raising events" means activities of limited duration, not regularly carried out in the normal course of business, that attract patrons for community, social, and entertainment purposes, such as auctions, bake sales, ice cream socials, block parties, carnivals, competitions, concerts, concession stands, craft sales, bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion shows, festivals, galas, special event workshops, sporting activities such as marathons and tournaments, and similar events. Fund-raising events do
not include the operation of a regular place of business in which services are provided or sales are made during regular hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet sales, regularly scheduled classes, or other activities carried out in the normal course of business.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 11. Minnesota Statutes 2014, section 297A.71, is amended by adding a subdivision to read:
Subd. 49. Siding
production facility materials. Building
materials and supplies for constructing a siding production facility that can
produce at least 400,000,000 square feet of siding per year are exempt. The tax must be imposed and collected as if
the rate under section 297A.62, subdivision 1, applied, and then refunded in
the manner provided in section 297A.75.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 12. Minnesota Statutes 2014, section 297A.71, is amended by adding a subdivision to read:
Subd. 50. Properties destroyed by fire. Building materials and supplies used in, and equipment incorporated into, the construction or replacement of real property that is located in Madelia affected by the fire on February 3, 2016, are exempt. The tax must be imposed and collected as if the rate under section 297A.62, subdivision 1, applied and then refunded in the manner provided in section 297A.75.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016, and before July 1,
2018.
Sec. 13. Minnesota Statutes 2014, section 297A.71, is amended by adding a subdivision to read:
Subd. 51. Former
Duluth Central High School. Materials
and supplies used in and equipment incorporated into a private redevelopment
project on the site of the former Duluth Central High School are exempt,
provided the resulting development is subject to property taxes. The tax must be imposed and collected as if
the rate under section 297A.62, subdivision 1, applied and then refunded in the
manner provided in section 297A.75. The
commissioner must not pay more than $5,000,000 in refunds for purchases exempt
under this section. Refunds must be
processed and issued in the order that complete and accurate applications are
received by the commissioner.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016, and before January
1, 2018.
Sec. 14. Minnesota Statutes 2014, section 297A.75, subdivision 1, is amended to read:
Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the following exempt items must be imposed and collected as if the sale were taxable and the rate under section 297A.62, subdivision 1, applied. The exempt items include:
(1) building materials for an agricultural processing facility exempt under section 297A.71, subdivision 13;
(2) building materials for mineral production facilities exempt under section 297A.71, subdivision 14;
(3) building materials for correctional facilities under section 297A.71, subdivision 3;
(4) building materials used in a residence for disabled veterans exempt under section 297A.71, subdivision 11;
(5) elevators and building materials exempt under section 297A.71, subdivision 12;
(6) materials and supplies for qualified low-income housing under section 297A.71, subdivision 23;
(7) materials, supplies, and equipment for municipal electric utility facilities under section 297A.71, subdivision 35;
(8) equipment and materials used for the generation, transmission, and distribution of electrical energy and an aerial camera package exempt under section 297A.68, subdivision 37;
(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph (a), clause (10);
(10) materials, supplies, and equipment for construction or improvement of projects and facilities under section 297A.71, subdivision 40;
(11) materials, supplies, and equipment for construction, improvement, or expansion of:
(i) an aerospace defense manufacturing facility exempt under section 297A.71, subdivision 42;
(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 45;
(iii) a research and development facility exempt under section 297A.71, subdivision 46; and
(iv) an industrial measurement manufacturing and controls facility exempt under section 297A.71, subdivision 47;
(12) enterprise information technology equipment and computer software for use in a qualified data center exempt under section 297A.68, subdivision 42;
(13) materials, supplies, and equipment for qualifying capital projects under section 297A.71, subdivision 44;
(14) items purchased for use in providing
critical access dental services exempt under section 297A.70, subdivision 7,
paragraph (c); and
(15) items and services purchased under a
business subsidy agreement for use or consumption primarily in greater
Minnesota exempt under section 297A.68, subdivision 44;
(16)
building materials and supplies for constructing a siding facility exempt under
section 297A.71, subdivision 49;
(17) building materials, equipment, and
supplies for constructing or replacing real property exempt under section
297A.71, subdivision 50; and
(18) materials and supplies used in and equipment incorporated into a private redevelopment project exempt under section 297A.71, subdivision 51.
EFFECTIVE
DATE. Clause (16) is
effective for sales and purchases made after June 30, 2016. Clause (17) is effective for sales and
purchases made after June 30, 2016, and before July 1, 2018. Clause (18) is effective for sales and
purchases made after June 30, 2016, and before January 1, 2018.
Sec. 15. Minnesota Statutes 2014, section 297A.75, subdivision 2, is amended to read:
Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must be paid to the applicant. Only the following persons may apply for the refund:
(1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;
(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits provided in United States Code, title 38, chapter 21;
(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead property;
(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;
(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a joint venture of municipal electric utilities;
(7) for subdivision 1, clauses (8), (11),
(12), and (15), and (16), the owner of the qualifying business; and
(8) for subdivision 1, clauses (9), (10),
and (13), the applicant must be the governmental entity that owns or contracts
for the project or facility; and
(9) for subdivision 1, clauses (17) and (18), the applicant must be the owner or developer of the building or project.
EFFECTIVE
DATE. The change to clause
(7) is effective for sales and purchases made after June 30, 2016. Clause (9) is effective for sales and
purchases made after June 30, 2016, and before July 1, 2018, as it pertains to
Minnesota Statutes, section 297A.71, subdivision 1, clause (17), and for sales
and purchases made after June 30, 2016, and before January 1, 2018, as it
pertains to Minnesota Statutes, section 297A.71, subdivision 1, clause (18).
Sec. 16. Minnesota Statutes 2014, section 297A.75, subdivision 3, is amended to read:
Subd. 3. Application. (a) The application must include
sufficient information to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
subcontractor, or builder, under subdivision 1, clauses (3) to (13), or (15),
to (18), the contractor, subcontractor, or builder must furnish to the
refund applicant a statement including the cost of the exempt items and the
taxes paid on the items unless otherwise specifically provided by this
subdivision. The provisions of sections
289A.40 and 289A.50 apply to refunds under this section.
(b) An applicant may not file more than two applications per calendar year for refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 17. Minnesota Statutes 2014, section 297A.815, subdivision 3, is amended to read:
Subd. 3. Motor vehicle lease sales tax revenue. (a) For purposes of this subdivision, "net revenue" means an amount equal to the revenues, including interest and penalties, collected under this section, during the fiscal year; less $32,000,000 in each fiscal year.
(b) On or before June 30 of each fiscal year, the commissioner of revenue shall estimate the amount of the net revenue for the current fiscal year.
(c) On or after July 1 of the subsequent fiscal year, the commissioner of management and budget shall transfer the net revenue as estimated in paragraph (b) from the general fund, as follows:
(1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter to the county state-aid highway fund. Notwithstanding any other law to the contrary, the commissioner of transportation shall allocate the funds transferred under this clause to the counties in the metropolitan area, as defined in section 473.121, subdivision 4, excluding the counties of Hennepin and Ramsey, so that each county shall receive of such amount the percentage that its population, as defined in section 477A.011, subdivision 3, estimated or established by July 15 of the year prior to the current calendar year, bears to the total population of the counties receiving funds under this clause; and
(2) the remainder to the greater Minnesota transit account.
(d) The revenues deposited under this
subdivision do not include the revenues, including interest and penalties,
generated by the sales tax imposed under section 297A.62, subdivision 1a, which
must be deposited as provided under the Minnesota Constitution, article XI,
section 15.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 18. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 2003, First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, article 5, section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read:
Subd. 2. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, impose an additional sales tax of up to one and three-quarter percent on sales transactions which are described in Minnesota Statutes 2000, section 297A.01, subdivision 3, clause (c). The imposition of this tax shall not be subject to voter referendum under either state law or city charter provisions. When the city council determines that the taxes imposed under this paragraph at a rate of three-quarters of one percent and other sources of revenue produce revenue sufficient to pay debt service on bonds in the principal amount of $40,285,000 plus issuance and discount costs, issued for capital improvements at the Duluth Entertainment and Convention Center, which include a new arena, the rate of tax under this subdivision must be reduced by three-quarters of one percent.
(b) In addition to the tax in paragraph
(a) and notwithstanding Minnesota Statutes, section 477A.016, or any other law,
ordinance, or city charter provision to the contrary, the city of Duluth may,
by ordinance, impose an additional sales tax of up to one-half of one percent
on sales transactions which are described in Minnesota Statutes 2000, section
297A.01, subdivision 3, clause (c). This
tax expires when the city council determines that the tax imposed under this
paragraph, along with the tax imposed under section 22, paragraph (b), has
produced revenues sufficient to pay the debt service on bonds in a principal
amount of no more than $18,000,000, plus issuance and discount costs, to
finance capital improvements to public facilities to support tourism and
recreational activities in that portion of the city west of 34th 14th
Avenue West and the area south of and including Skyline Parkway.
(c) The city of Duluth may sell and issue
up to $18,000,000 in general obligation bonds under Minnesota Statutes, chapter
475, plus an additional amount to pay for the costs of issuance and any
premiums. The proceeds may be used to
finance capital improvements to public facilities that support tourism and
recreational activities in the portion of the city west of 34th 14th
Avenue West and the area south of and including Skyline Parkway, as
described in paragraph (b). The issuance of the bonds is subject to the provisions of Minnesota Statutes, chapter 475, except no election shall be required unless required by the city charter. The bonds shall not be included in computing net debt. The revenues from the taxes that the city of Duluth may impose under paragraph (b) and under section 22, paragraph (b), may be pledged to pay principal of and interest on such bonds.
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Duluth and its chief
clerical officer comply with Minnesota Statutes, section 645.021, subdivisions
2 and 3.
Sec. 19. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, article 8, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and Laws 2014, chapter 308, article 3, section 22, is amended to read:
Sec. 22. CITY
OF DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS.
(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, impose an additional tax of one percent upon the gross receipts from the sale of lodging for periods of less than 30 days in hotels and motels located in the city. The tax shall be collected in the same manner as the tax set forth in the Duluth city charter, section 54(d), paragraph one. The imposition of this tax shall not be subject to voter referendum under either state law or city charter provisions.
(b) In addition to the tax in paragraph
(a) and notwithstanding Minnesota Statutes, section 477A.016, or any other law,
ordinance, or city charter provision to the contrary, the city of Duluth may,
by ordinance, impose an additional sales tax of up to one-half of one percent
on the gross receipts from the sale of lodging for periods of less than 30 days
in hotels and motels located in the city.
This tax expires when the city council first determines that the tax
imposed under this paragraph, along with the tax imposed under section 21,
paragraph (b), has produced revenues sufficient to pay the debt service on
bonds in a principal amount of no more than $18,000,000, plus issuance and
discount costs, to finance capital improvements to public facilities to support
tourism and recreational activities in that portion of the city west of 34th
14th Avenue West and the area south of and including Skyline Parkway.
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Duluth and its chief
clerical officer comply with Minnesota Statutes, section 645.021, subdivisions
2 and 3.
Sec. 20. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by Laws 1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9, and Laws 2009, chapter 88, article 4, section 14, is amended to read:
Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by subdivisions 1 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or a portion of the expenses of constructing and improving facilities as part of an urban revitalization project in downtown Mankato known as Riverfront 2000. Authorized expenses include, but are not limited to, acquiring property and paying relocation expenses related to the development of Riverfront 2000 and related facilities, and securing or paying debt service on bonds or other obligations issued to finance the construction of Riverfront 2000 and related facilities. For purposes of this section, "Riverfront 2000 and related facilities" means a civic-convention center, an arena, a riverfront park, a technology center and related educational facilities, and all publicly owned real or personal property that the governing body of the city determines will be necessary to facilitate the use of these facilities, including but not limited to parking, skyways, pedestrian bridges, lighting, and landscaping. It also includes the performing arts theatre and the Southern Minnesota Women's Hockey Exposition Center, for use by Minnesota State University, Mankato.
(b)
Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and subject
to voter approval at a general election held before December 31, 2018; provided
that the sales tax in the city of North Mankato is also extended at the same
general election, the city may by ordinance also use revenues from taxes
authorized under subdivisions 1 and 2, up to a maximum of $47,000,000, plus associated
bond costs, to pay all or a portion of the expenses of the following capital
projects:
(1) construction and improvements to regional recreational facilities including existing hockey and curling rinks, a baseball park, youth athletic fields and facilities, the municipal swimming pool including improvements to make the pool compliant with the Americans with Disabilities Act, and indoor regional athletic facilities;
(2) improvements to flood control and the
levee system;
(3) water quality improvement projects in Blue Earth and Nicollet Counties;
(4) expansion of the regional transit
building and related multimodal transit improvements;
(5) regional public safety and
emergency communications improvements and equipment; and
(6) matching funds for improvements to
publicly owned regional facilities including a historic museum, supportive
housing, and a senior center.
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Mankato and its chief
clerical officer comply with Minnesota Statutes, section 645.021, subdivisions
2 and 3.
Sec. 21. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by Laws 2005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter 366, article 7, section 10, is amended to read:
Subd. 4. Expiration
of taxing authority and expenditure limitation.
The authority granted by subdivisions 1 and 2 to the city to impose
a sales tax and an excise tax shall expire on at the earlier of when
revenues are sufficient to pay off the bonds, including interest and all other
associated bond costs authorized under subdivision 5, or December 31, 2022,
unless the additional uses under subdivision 3, paragraph (b) or (c), are
authorized. If the additional use allowed
in subdivision 3, paragraph (b), is authorized, the taxes expire at the earlier
of when revenues are sufficient to pay off the bonds, including interest and
all other associated bond costs authorized under subdivision 5, or December 31,
2038.
EFFECTIVE
DATE. This section is
effective the day following final enactment without local approval pursuant to
Minnesota Statutes, section 645.023, subdivision 1.
Sec. 22. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:
Subd. 5. Bonds. (a) The city of Mankato may issue general obligation bonds of the city in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities, without election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or a tax to pay them. The debt represented by bonds issued for Riverfront 2000 and related facilities shall not be included in computing any debt limitations applicable to the city of Mankato, and the levy of taxes required by section 475.61 to pay principal of and interest on the bonds shall not be subject to any levy limitation or be included in computing or applying any levy limitation applicable to the city.
(b) The city of Mankato, subject to voter
approval at the election required under subdivision 3, paragraph (b), may issue
general obligation bonds of the city in an amount not to exceed $47,000,000 for
the projects listed under subdivision 3, paragraph (b), without election under
Minnesota Statutes, chapter 475, on the question of issuance of the bonds or a
tax to pay them. The debt represented by
bonds under this paragraph shall not be included in
computing
any debt limitations applicable to the city of Mankato, and the levy of taxes
required by Minnesota Statutes, section 475.61, to pay principal of and
interest on the bonds, and shall not be subject to any levy limitation or be
included in computing or applying any levy limitation applicable to the city. The city may use tax revenue in excess of one
year's principal interest reserve for intended annual bond payments to pay all
or a portion of the cost of capital improvements authorized in subdivision 3.
EFFECTIVE
DATE. This section is
effective the day following final enactment without local approval pursuant to
Minnesota Statutes, section 645.023, subdivision 1.
Sec. 23. Laws 1991, chapter 291, article 8, section 27, subdivision 6, is amended to read:
Subd. 6. Reverse referendum; authorization of extension. (a) If the Mankato city council intends to exercise the authority provided by this section, it shall pass a resolution stating the fact before July 1, 1991. The resolution must be published for two successive weeks in the official newspaper of the city or, if there is no official newspaper, in a newspaper of general circulation in the city, together with a notice fixing a date for a public hearing on the matter. The hearing must be held at least two weeks but not more than four weeks after the first publication of the resolution. Following the public hearing, the city may determine to take no further action or adopt a resolution confirming its intention to exercise the authority. That resolution must also be published in the official newspaper of the city or, if there is no official newspaper, in a newspaper of general circulation in the city. If within 30 days after publication of the resolution a petition signed by voters equal in number to ten percent of the votes cast in the city in the last general election requesting a vote on the proposed resolution is filed with the county auditor, the resolution is not effective until it has been submitted to the voters at a general or special election 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 election. The referendum must be held at a special or general election before December 1, 1991. This subdivision applies notwithstanding any city charter provision to the contrary.
(b) If the Mankato city council wishes to
extend the taxes authorized under subdivisions 1 and 2 to fund any of the
projects listed in subdivision 3, paragraph (b), the city must pass a
resolution extending the taxes before July 1, 2016. The tax may not be imposed unless approved by
the voters.
EFFECTIVE
DATE. This section is
effective the day following final enactment without local approval pursuant to
Minnesota Statutes, section 645.023, subdivision 1.
Sec. 24. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by Laws 2006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter 7, article 4, section 4, is amended to read:
Subdivision 1. Sales tax authorized. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other contrary provision of law, ordinance, or city charter, the city of Hermantown may, by ordinance, impose an additional sales tax of up to one percent on sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur within the city. The proceeds of the tax imposed under this section must be used to pay the cost of collection of the tax and to meet the costs, including principal, interest, and premiums of bonds used in the finance of:
(1) extending a sewer interceptor line;
(2) construction of a booster pump station,
reservoirs, and related improvements to the water system; and
(3) construction of a building containing a
police and fire station and an administrative services facility; and
(4) construction and equipping of a regional, multiuse wellness center.
(b) If the city imposed a sales tax of only one-half of one percent under paragraph (a), it may increase the tax to one percent to fund the purposes under paragraph (a) provided it is approved by the voters at a general election held before December 31, 2012.
(c) The tax imposed in paragraph (a) may
only be used to fund projects listed in paragraph (a), clause (4), if approved
by the local voters at the November 8, 2016, general election. Revenue raised from the tax imposed under
this subdivision in every year must first be used to meet obligations in that
year related to the projects in paragraph (a), clauses (1) to (3), with excess
revenues available to fund the projects in paragraph (a), clause (4).
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Hermantown and its
chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
Sec. 25. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by Laws 2006, chapter 259, article 3, section 4, is amended to read:
Subd. 4. Termination. The tax authorized under this section terminates on March 31, 2026, unless the additional use under subdivision 1, paragraph (a), is approved as required under subdivision 1, paragraph (c). If the additional project is approved as required under subdivision 1, paragraph (c), the tax authorized under this section terminates at the earlier of (1) December 31, 2036, or (2) when the Hermantown City Council first determines that sufficient funds have been received from the tax to fund the costs, including bonds and associated bond costs for the uses specified in subdivision 1, paragraph (a). Any funds remaining after completion of the improvements and retirement or redemption of the bonds may be placed in the general fund of the city.
EFFECTIVE
DATE. This section is
effective the day following final enactment without local approval pursuant to
Minnesota Statutes, section 645.023, subdivision 1.
Sec. 26. Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by Laws 2008, chapter 366, article 7, section 12, is amended to read:
Subdivision 1. Sales and use tax. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of law, ordinance, or city charter, if approved by the city voters at the first municipal general election held after the date of final enactment of this act or at a special election held November 2, 1999, the city of Proctor may impose by ordinance a sales and use tax of up to one-half of one percent for the purposes specified in subdivision 3. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement of the tax authorized under this subdivision.
(b) Notwithstanding Minnesota Statutes,
section 477A.016, or any other provision of law, ordinance, or city charter,
the city of Proctor may impose by ordinance an additional sales and use tax of
up to one-half of one percent as approved by the voters at the November 4,
2014, general election. The revenues
received from the additional tax must be used for the purposes specified in
subdivision 3, paragraph (b).
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Proctor and its chief
clerical officer comply with Minnesota Statutes, section 645.021, subdivisions
2 and 3, but only if the local approval requirement under section 10 is also
met.
Sec. 27. Laws 2008, chapter 366, article 7, section 20, is amended to read:
Sec. 20. CITY
OF NORTH MANKATO; TAXES AUTHORIZED.
Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the approval of the voters on November 7, 2006, the city of North Mankato may impose by ordinance a sales and use tax of one-half of one percent for the purposes specified in subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement of the taxes authorized under this subdivision.
Subd. 2. Use of revenues. (a) Revenues received from the tax authorized by subdivision 1 must be used to pay all or part of the capital costs of the following projects:
(1) the local share of the Trunk Highway 14/County State-Aid Highway 41 interchange project;
(2) development of regional parks and hiking and biking trails, including construction of indoor regional athletic facilities;
(3) expansion of the North Mankato Taylor Library;
(4) riverfront redevelopment; and
(5) lake improvement projects.
The total amount of revenues from the tax in subdivision 1 that may be used to fund these projects is $6,000,000 plus any associated bond costs.
(b) If the city extends the tax as
authorized under subdivision 2a, the total amount that may be used to fund
these projects is increased by $9,000,000, plus associated bond costs.
Subd. 2a. Authorization to extend the tax. Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 3, the North Mankato city council
may, by resolution, extend the tax authorized under subdivision 1 to cover an
additional $9,000,000 in bonds, plus associated bond costs, to fund the
projects in subdivision 2, paragraph (a), if approved by the voters at a
general election held before December 31, 2018; provided that the sales tax in
the city of Mankato is also extended at the same general election.
Subd. 3. Bonds. (a) The city of North Mankato, pursuant to the approval of the voters at the November 7, 2006 referendum authorizing the imposition of the taxes in this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative expenses for the projects described in subdivision 2, paragraph (a), in an amount that does not exceed $6,000,000. A separate election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
(b) The city of North Mankato, subject
to the referendum in subdivision 2a, allowing for additional revenue to be
spent for the projects in subdivision 2, may issue additional bonds under
Minnesota Statutes, chapter 475, to pay capital and administrative expenses for
those projects in an amount that does not exceed $9,000,000. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
(b) (c) The debt represented by
the bonds is not included in computing any debt limitation applicable to the
city, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation.
Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires when the city council determines that the amount of revenues received from the taxes to pay for the projects under subdivision 2, paragraph (a), first equals or exceeds $6,000,000 plus the additional amount needed to pay the costs related to issuance of bonds under subdivision 3, including interest on the bonds, unless the tax is extended as allowed in this section. If the tax is extended as allowed under the referendum under subdivision 2a, the tax expires at the earlier of December 31, 2038, or when revenues from the taxes first equal or exceed $15,000,000 plus the additional amount needed to pay costs related to issuance of bonds under subdivision 3, including interest. Any funds remaining after completion of the projects and retirement or redemption of the bonds shall be placed in a capital facilities and equipment replacement fund of the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so determines by ordinance.
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of North Mankato and its
chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
Sec. 28. CITY
OF EAST GRAND FORKS; TAXES AUTHORIZED.
Subdivision 1. Sales
and use tax authorization. Notwithstanding
Minnesota Statutes, section 297A.99, subdivisions 1 and 2, or 477A.016, or any
other law, ordinance, or city charter, and as approved by the voters at a
special election on March 7, 2016, the city of East Grand Forks may impose, by
ordinance, a sales and use tax of up to one percent for the purposes specified
in subdivision 2. Except as otherwise
provided in this section, the provisions of Minnesota Statutes, section
297A.99, govern the imposition, administration, collection, and enforcement of
the tax authorized under this subdivision.
Subd. 2. Use
of sales and use tax revenues. The
revenues derived from the tax authorized under subdivision 1 must be used by
the city of East Grand Forks to pay the costs of collecting and administering
the tax and to finance the capital and administrative costs of improvement to
the city public swimming pool. Authorized
expenses include, but are not limited to, paying construction expenses related
to the renovation and the development of these facilities and improvements, and
securing and paying debt service on bonds issued under subdivision 3 or other obligations
issued to finance improvement of the public swimming pool in the city of East
Grand Forks
Subd. 3. Bonding
authority. (a) The city of
East Grand Forks may issue bonds under Minnesota Statutes, chapter 475, to
finance all or a portion of the costs of the facilities authorized in
subdivision 2. The aggregate principal
amount of bonds issued under this subdivision may not exceed $2,820,000, plus
an amount to be applied to the payment of the costs of issuing the bonds. The bonds may be paid from or secured by any
funds available to the city of East Grand Forks, including the tax authorized
under subdivision 1. The issuance of
bonds under this subdivision is not subject to Minnesota Statutes, sections
275.60 and 275.61.
(b) The bonds are not included in
computing any debt limitation applicable to the city of East Grand Forks, and
any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
Subd. 4. Termination
of taxes. The tax imposed
under subdivision 1 expires at the later of:
(1) five years after the tax is first imposed; or (2) when the city
council determines that $2,820,000 has been received from the tax to pay for
the cost of the projects authorized under subdivision 2, plus an amount
sufficient to pay the costs related to issuance of the bonds authorized under
subdivision 3, including interest on the bonds.
Any funds remaining after payment of all such costs and retirement or
redemption of the bonds shall be placed in the general fund of the city. The tax imposed under subdivision 1 may
expire at an earlier time if the city so determines by ordinance.
EFFECTIVE
DATE. This section is
effective the day after compliance by the governing body of the city of East
Grand Forks with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 29. CITY
OF MARSHALL; VALIDATION OF PRIOR ACT.
(a) Notwithstanding the time limits in
Minnesota Statutes, section 645.021, the city of Marshall may approve Laws
2011, First Special Session chapter 7, article 4, section 14, and file its
approval with the secretary of state by June 15, 2013. If approved as authorized under this
paragraph, actions undertaken by the city as approved by the voters on November
6, 2012, and otherwise in accordance with Laws 2011, First Special Session
chapter 7, article 4, section 14, are validated.
(b) Notwithstanding the time limit on
the imposition of tax under Laws 2011, First Special Session chapter 7, article
4, section 14, and subject to local approval under paragraph (a), the city of
Marshall may impose the tax on or before July 1, 2013.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 30. CERTAIN
REIMBURSEMENT AUTHORIZED; CONSIDERED OPERATING OR CAPITAL EXPENSES.
Subdivision 1. Reimbursement
authorized. (a) An amount
equivalent to the taxes paid under Minnesota Statutes, chapter 297A, and any
local taxes administered by the Department of Revenue, on purchases of tangible
personal property, nonresidential parking services, and lodging, as these terms
are defined in Minnesota Statutes, chapter 297A, used and consumed in
connection with Super Bowl LII or related events sponsored by the National
Football League or its affiliates, will be reimbursed by the Minnesota Sports
Facilities Authority up to $1,600,000, if made after June 30, 2016, and before
March 1, 2018. Only purchases made by
the Minnesota Super Bowl Host Committee, the National Football League or its
affiliates, or their employees or independent contractors, qualify to be
reimbursed under this section.
(b) For purposes of this subdivision:
(1) "employee or independent
contractor" means only those employees or independent contractors that
make qualifying purchases that are reimbursed by the Minnesota Super Bowl Host
Committee or the National Football League or its affiliates; and
(2) "related events sponsored by
the National Football League or its affiliates" includes but is not
limited to preparatory advance visits, NFL Experience, NFL Tailgate, NFL
Honors, and NFL House.
Subd. 2. Operating
reserve and capital reserve fund. Notwithstanding
the requirements of Minnesota Statutes, section 473J.13, subdivisions 2 and 4,
up to $1,600,000 of the balance in the operating reserve or capital reserve
fund may be used for the purposes of paying reimbursements authorized under
subdivision 1.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016, and before March 1,
2018.
Sec. 31. SEVERABILITY.
If any provision of sections 2 to 5 or
the application thereof is held invalid, such invalidity shall not affect the
provisions or applications of the sections that can be given effect without the
invalid provisions or applications.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 32. EFFECTIVE
DATE.
(a) The provisions of sections 2 to 5
are effective at the earlier of:
(1) a decision by the United States
Supreme Court modifying its decision in Quill Corp. v. North Dakota, 504 U.S. 298
(1992) so that a state may require retailers without a physical presence in the
state to collect and remit sales tax; or
(2) July 1, 2019.
(b) Notwithstanding paragraph (a) or
the provisions of sections 2 to 5, if a federal law is enacted authorizing a
state to impose a requirement to collect and remit sales tax on retailers
without a physical presence in the state, the commissioner must enforce the
provisions of this section and sections 2 to 5 to the extent allowed under
federal law.
(c) The commissioner of revenue shall
notify the revisor of statutes when either of the provisions in paragraph (a)
or (b) apply.
ARTICLE 5
SPECIAL TAXES
Section 1. Minnesota Statutes 2014, section 296A.01, subdivision 12, is amended to read:
Subd. 12. Compressed
natural gas or CNG. "Compressed
natural gas" or "CNG" means natural gas, primarily methane,
condensed under high pressure and stored in specially designed storage tanks at
between 2,000 and 3,600 pounds per square inch.
For purposes of this chapter, the energy content of CNG is considered to
be 1,000 900 BTUs per cubic foot.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 2. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision to read:
Subd. 13a. Dealer
of gasoline used as a substitute for aviation gasoline. "Dealer of gasoline used as a
substitute for aviation gasoline" means any person who sells gasoline on
the premises of an airport as defined under section 360.013, subdivision 39, to
be dispensed directly into the fuel tank of an aircraft.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 3. Minnesota Statutes 2014, section 296A.07, subdivision 4, is amended to read:
Subd. 4. Exemptions. The provisions of subdivision 1 do not apply to gasoline or denatured ethanol purchased by:
(1) a transit system or transit provider receiving financial assistance or reimbursement under section 174.24, 256B.0625, subdivision 17, or 473.384;
(2) providers of transportation to recipients of medical assistance home and community-based services waivers enrolled in day programs, including adult day care, family adult day care, day treatment and habilitation, prevocational services, and structured day services;
(3) an ambulance service licensed under chapter 144E;
(4) providers of medical or dental
services by a federally qualified health center, as defined under title 19 of
the Social Security Act, as amended by Section 4161 of the Omnibus Budget
Reconciliation Act of 1990, with a motor vehicle used exclusively as a mobile
medical unit; or
(5) a licensed distributor to be delivered
to a terminal for use in blending; or
(6) a dealer of gasoline used as a substitute for aviation gasoline.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 4. Minnesota Statutes 2014, section 296A.08, subdivision 2, is amended to read:
Subd. 2. Rate of tax. The special fuel excise tax is imposed at the following rates:
(a) Liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon.
(b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.
(c)
Compressed natural gas is taxed at the rate of $2.174 $1.974 per
thousand cubic feet; or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline
equivalent," as defined by the National Conference on Weights and
Measures, is 5.66 pounds of natural gas or 126.67 cubic feet.
(d) All other special fuel is taxed at the same rate as the gasoline excise tax as specified in section 296A.07, subdivision 2. The tax is payable in the form and manner prescribed by the commissioner.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 5. Minnesota Statutes 2014, section 296A.09, subdivision 1, is amended to read:
Subdivision 1. Gasoline tax imposed. Subject to any refunds or credits there is imposed an excise tax, at the rate of five cents per gallon on all aviation gasoline received, sold, stored, or withdrawn from storage in this state and on all gasoline used as a substitute for aviation gasoline. Aviation gasoline is defined in section 296A.01, subdivision 7.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 6. Minnesota Statutes 2014, section 296A.09, subdivision 3, is amended to read:
Subd. 3. Exception to tax for aviation use. The provisions of subdivisions 1 and 2 do not apply to gasoline used as a substitute for aviation gasoline, aviation gasoline, or special fuel purchased and placed in the fuel tanks of an aircraft outside the state, even though the gasoline may be consumed within this state.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 7. Minnesota Statutes 2014, section 296A.09, subdivision 5, is amended to read:
Subd. 5. Tax not on consumption. The taxes imposed by subdivisions 1 and 2 are expressly declared not to be a tax upon consumption of gasoline used as a substitute for aviation gasoline, aviation gasoline, or special fuel by an aircraft.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 8. Minnesota Statutes 2014, section 296A.09, subdivision 6, is amended to read:
Subd. 6. Exemptions. The provisions of subdivisions 1 and 2 do not apply to gasoline used as a substitute for aviation gasoline, aviation gasoline, or jet fuel purchased by an ambulance service licensed under chapter 144E.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 9. Minnesota Statutes 2014, section 296A.15, subdivision 1, is amended to read:
Subdivision 1. Monthly gasoline report; shrinkage allowance. (a) Except as provided in paragraph (e), on or before the 23rd day of each month, every person who is required to pay a gasoline tax shall file with the commissioner a report, in the form and manner prescribed by the commissioner, showing the number of gallons of petroleum products received by the reporter during the preceding calendar month, and other information the commissioner may require. A written report is deemed to have been filed as required in this subdivision if postmarked on or before the 23rd day of the month in which the tax is payable.
(b) The number of gallons of gasoline must be reported in United States standard liquid gallons, 231 cubic inches, except that the commissioner may upon written application and for cause shown permit the distributor to report the number of gallons of gasoline as corrected to a temperature of 60-degrees Fahrenheit. If the application is granted, all gasoline covered in the application and allowed by the commissioner must continue to be reported by the distributor on the adjusted basis for a period of one year from the date of the granting of the application. The number of gallons of petroleum products other than gasoline must be reported as originally invoiced. Each report must show separately the number of gallons of aviation gasoline received by the reporter during each calendar month and the number of gallons of gasoline sold to a dealer of gasoline used as a substitute for aviation fuel during each calendar month.
(c) Each report must also include the amount of gasoline tax on gasoline received by the reporter during the preceding month. In computing the tax a deduction of 2.5 percent of the quantity of gasoline received by a distributor shall be made for evaporation and loss. At the time of reporting, the reporter shall submit satisfactory evidence that one-third of the 2.5 percent deduction has been credited or paid to dealers on quantities sold to them.
(d) Each report shall contain a confession of judgment for the amount of the tax shown due to the extent not timely paid.
(e) Under certain circumstances and with the approval of the commissioner, taxpayers may be allowed to file reports annually.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 10. Minnesota Statutes 2014, section 296A.15, subdivision 4, is amended to read:
Subd. 4. Failure to use or sell for intended purpose; report required. (a) Any person who buys gasoline from a dealer of gasoline used as a substitute for aviation gasoline, or buys aviation gasoline or special fuel for aircraft use and who has paid the excise taxes due directly or indirectly through the amount of the tax being included in the price, or otherwise, and uses said gasoline or special fuel in motor vehicles or knowingly sells it to any person for use in motor vehicles shall, on or before the 23rd day of the month following that in which such gasoline or special fuel was so used or sold, report the fact of the use or sale to the commissioner in the form and manner prescribed by the commissioner.
(b) Any person who buys gasoline other than aviation gasoline and who has paid the motor vehicle gasoline excise tax directly or indirectly through the amount of the tax being included in the price of the gasoline, or otherwise, who knowingly sells such gasoline to any person to be used for the purpose of producing or generating power for propelling aircraft, or who receives, stores, or withdraws from storage gasoline to be used for that purpose, shall, on or before the 23rd day of the month following that in which such gasoline was so sold, stored, or withdrawn from storage, report the fact of the sale, storage, or withdrawal from storage to the commissioner in the form and manner prescribed by the commissioner.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 11. Minnesota Statutes 2014, section 296A.17, subdivision 1, is amended to read:
Subdivision 1. Aviation refund requirements. Any person claiming to be entitled to any refund or credit provided for in subdivision 3 shall receive the refund or credit upon filing with the commissioner a claim in such form and manner prescribed by the commissioner. The claim shall set forth, among other things, the total number of gallons of gasoline used as a substitute for aviation gasoline, aviation gasoline, or special fuel for aircraft use upon which the claimant has directly or indirectly paid the excise tax provided for in this chapter, during the calendar
year, which has been received, stored, or withdrawn from storage by the claimant in this state and not sold or otherwise disposed of to others. All claims for refunds under this subdivision shall be made on or before April 30 following the end of the calendar year for which the refund is claimed.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 12. Minnesota Statutes 2014, section 296A.17, subdivision 2, is amended to read:
Subd. 2. Claim for refund; aviation tax. (a) Any person who buys gasoline used as a substitute for aviation gasoline, aviation gasoline, or special fuel for aircraft use and who has paid the excise taxes directly or indirectly through the amount of the tax being included in the price, or otherwise, who does not use it in motor vehicles or receive, sell, store, or withdraw it from storage for the purpose of producing or generating power for propelling aircraft, shall be reimbursed and repaid the amount of the tax paid upon filing with the commissioner a claim in the form and manner prescribed by the commissioner. The claim shall state the total amount of the gasoline used as a substitute for aviation gasoline, aviation gasoline, or special fuel for aircraft use purchased and used by the applicant, and shall state when and for what purpose it was used. On being satisfied that the claimant is entitled to payment, the commissioner shall approve the claim and transmit it to the commissioner of management and budget. The postmark on the envelope in which a written claim is mailed determines the date of filing.
(b) If a claim contains an error in preparation in computation or preparation, the commissioner is authorized to adjust the claim in accordance with the evidence shown on the claim or other information available to the commissioner.
(c) An applicant who files a claim that is false or fraudulent, is subject to the penalties provided in section 296A.23 for knowingly and willfully making a false claim.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 13. Minnesota Statutes 2014, section 296A.17, subdivision 3, is amended to read:
Subd. 3. Refund on graduated basis. Any person who has directly or indirectly paid the excise tax on gasoline used as a substitute for aviation gasoline, aviation gasoline, or special fuel for aircraft use provided for by this chapter and either paid the airflight property tax under section 270.072 or is an aerial applicator with a category B, general aerial license, under section 18B.33, shall, as to all such gasoline used as a substitute for aviation gasoline, aviation gasoline, and special fuel received, stored, or withdrawn from storage by the person in this state in any calendar year and not sold or otherwise disposed of to others, or intended for sale or other disposition to others, on which such tax has been so paid, be entitled to the following graduated reductions in such tax for that calendar year, to be obtained by means of the following refunds:
(1) on each gallon of such gasoline
used as a substitute for aviation gasoline, aviation gasoline, or
special fuel up to 50,000 gallons, all but five cents per gallon;
(2) on each gallon of such gasoline
used as a substitute for aviation gasoline, aviation gasoline, or
special fuel above 50,000 gallons and not more than 150,000 gallons, all but
two cents per gallon;
(3) on each gallon of such gasoline
used as a substitute for aviation gasoline, aviation gasoline, or
special fuel above 150,000 gallons and not more than 200,000 gallons, all but
one cent per gallon;
(4) on each gallon of such gasoline
used as a substitute for aviation gasoline, aviation gasoline, or
special fuel above 200,000, all but one-half cent per gallon.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 14. Minnesota Statutes 2014, section 296A.18, subdivision 1, is amended to read:
Subdivision 1. Intent; gasoline use. All gasoline received in this state and all gasoline produced in or brought into this state except aviation gasoline, gasoline sold to a dealer of gasoline used as a substitute for aviation gasoline, and marine gasoline shall be determined to be intended for use in motor vehicles in this state.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 15. Minnesota Statutes 2014, section 296A.18, subdivision 8, is amended to read:
Subd. 8. Airports. The revenues derived from the excise taxes on gasoline used as a substitute for aviation gasoline, aviation gasoline, and on special fuel received, sold, stored, or withdrawn from storage as substitutes for aviation gasoline, shall be paid into the state treasury and credited to the state airports fund. There is hereby appropriated such sums as are needed to carry out the provisions of this subdivision.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 16. Minnesota Statutes 2014, section 296A.19, subdivision 1, is amended to read:
Subdivision 1. Retention. All distributors, dealers, special fuel dealers, bulk purchasers, dealers of gasoline used as a substitute for aviation gasoline, and all users of special fuel shall keep a true and accurate record of all purchases, transfers, sales, and use of petroleum products and special fuel, including copies of all sales tickets issued, in a form and manner approved by the commissioner, and shall retain all such records for 3-1/2 years.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 17. Minnesota Statutes 2014, section 297E.02, subdivision 1, is amended to read:
Subdivision 1. Imposition. (a) A tax is imposed on all lawful gambling other than (1) paper or electronic pull‑tab deals or games; (2) tipboard deals or games; (3) electronic linked bingo; and (4) items listed in section 297E.01, subdivision 8, clauses (4) and (5), at the rate of 8.5 percent on the gross receipts as defined in section 297E.01, subdivision 8, less prizes actually paid.
(b) A tax is imposed on the conduct of
paper pull-tabs, at the rate of nine percent of the gross receipts, less prizes
actually paid, of the pull-tab deal. The
tax imposed under this paragraph applies only to paper pull-tabs sold at a
bingo hall as defined in section 349.12, subdivision 4a.
(c) The tax imposed by this subdivision is in lieu of the tax imposed by section 297A.62 and all local taxes and license fees except a fee authorized under section 349.16, subdivision 8, or a tax authorized under subdivision 5.
(d) The tax imposed under this subdivision is payable by the organization or party conducting, directly or indirectly, the gambling.
EFFECTIVE
DATE. This section is
effective for gross receipts received on or after July 1, 2016.
Sec. 18. Minnesota Statutes 2015 Supplement, section 297E.02, subdivision 6, is amended to read:
Subd. 6. Combined net receipts tax. (a) In addition to the taxes imposed under subdivision 1, a tax is imposed on the combined net receipts of the organization. As used in this section, "combined net receipts" is the sum of the organization's gross receipts from lawful gambling less gross receipts directly derived from the conduct of paper bingo, raffles, and paddlewheels, as defined in section 297E.01, subdivision 8, and less the net prizes actually paid, other than prizes actually paid for paper bingo, raffles, and paddlewheels, for the fiscal year. The combined net receipts of an organization are subject to a tax computed according to the following schedule:
(b) On or before April 1, 2016, the commissioner shall estimate the total amount of revenue, including interest and penalties, that will be collected for fiscal year 2016 from taxes imposed under this chapter. If the amount estimated by the commissioner equals or exceeds $94,800,000, the commissioner shall certify that effective July 1, 2016, the rates under this paragraph apply in lieu of the rates under paragraph (a) and shall publish a notice to that effect in the State Register and notify each taxpayer by June 1, 2016. If the rates under this section apply, the combined net receipts of an organization are subject to a tax computed according to the following schedule:
|
|
If the combined net receipts for the fiscal year are: |
The tax is: |
|
|
|
|
Not over $87,500 |
|
8.5 percent |
|
|
|
Over $87,500, but not over $122,500 |
$7,438 plus 17 percent of the amount over $87,500, but not over $122,500 |
||
|
|
Over $122,500, but not over $157,500 |
$13,388 plus 25.5 percent of the amount over $122,500, but not over $157,500 |
||
|
|
Over $157,500 |
|
$22,313 plus 34 percent of the amount over $157,500 |
|
(c) Gross receipts derived from sports-themed tipboards are exempt from taxation under this section. For purposes of this paragraph, a sports-themed tipboard means a sports-themed tipboard as defined in section 349.12, subdivision 34, under which the winning numbers are determined by the numerical outcome of a professional sporting event.
(d) Paper pull-tabs sold at a bingo
hall as defined in section 349.12, subdivision 4a, are exempt from taxation under
this subdivision.
EFFECTIVE
DATE. This section is
effective July 1, 2016.
Sec. 19. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision to read:
Subd. 6a. Bulk
nicotine. "Bulk
nicotine" means any vapor product that contains a solution having a
concentration of 50 milligrams of nicotine per milliliter or greater.
EFFECTIVE
DATE. This section is
effective January 1, 2017.
Sec. 20. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision to read:
Subd. 6b. Consumable
material. "Consumable
material" means any vapor product that contains nicotine in a solution
having a concentration of less than 50 milligrams of nicotine per milliliter.
EFFECTIVE
DATE. This section is
effective January 1, 2017.
Sec. 21. Minnesota Statutes 2014, section 297F.01, subdivision 19, is amended to read:
Subd. 19. Tobacco products. (a) "Tobacco products" means any product containing, made, or derived from tobacco that is intended for human consumption, whether chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or any component, part, or accessory of a tobacco product, including, but not limited to, cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, vapor products, and other kinds and forms of tobacco; but does not include cigarettes as defined in this section. Tobacco products excludes any tobacco product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product, as a tobacco dependence product, or for other medical purposes, and is being marketed and sold solely for such an approved purpose.
(b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4, tobacco products includes a premium cigar, as defined in subdivision 13a.
EFFECTIVE
DATE. This section is
effective January 1, 2017.
Sec. 22. Minnesota Statutes 2014, section 297F.01, is amended by adding a subdivision to read:
Subd. 24. Vapor
products. "Vapor
products" means any noncombustible product that employs a heating element,
power source, electronic circuit, or other electronic, chemical, or mechanical
means, regardless of shape or size, that can be used to produce vapor from
nicotine in a solution or other form. Vapor
products includes any electronic cigarette, electronic cigar, electronic
cigarillo, electronic pipe, or similar product or device and any vapor
cartridge or other container of bulk nicotine or consumable material in a
solution or other form that is intended to be used with or in an electronic
cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar
product or device.
EFFECTIVE
DATE. This section is
effective January 1, 2017.
Sec. 23. Minnesota Statutes 2014, section 297F.05, subdivision 1, is amended to read:
Subdivision 1. Rates;
cigarettes. A tax is imposed upon
the sale of cigarettes in this state, upon having cigarettes in possession in
this state with intent to sell, upon any person engaged in business as a
distributor, and upon the use or storage by consumers, at the rate of 141.5
150 mills, or 14.15 15 cents, on each cigarette.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 24. Minnesota Statutes 2014, section 297F.05, subdivision 3, is amended to read:
Subd. 3. Rates;
tobacco products. (a) Except as
provided in subdivision subdivisions 3a and 3b, a tax is
imposed upon all tobacco products in this state and upon any person engaged in
business as a distributor, at the rate of 95 percent of the wholesale sales
price of the tobacco products. The tax
is imposed at the time the distributor:
(1) brings, or causes to be brought, into this state from outside the state tobacco products for sale;
(2) makes, manufactures, or fabricates tobacco products in this state for sale in this state; or
(3) ships or transports tobacco products to retailers in this state, to be sold by those retailers.
(b) Notwithstanding paragraph (a), a minimum tax equal to the rate imposed on a pack of 20 cigarettes weighing not more than three pounds per thousand, as established under subdivision 1, is imposed on each container of moist snuff.
For purposes of this subdivision, a "container" means the smallest consumer-size can, package, or other container that is marketed or packaged by the manufacturer, distributor, or retailer for separate sale to a retail purchaser. When more than one container is packaged together, each container is subject to tax.
EFFECTIVE
DATE. This section is
effective January 1, 2017.
Sec. 25. Minnesota Statutes 2014, section 297F.05, is amended by adding a subdivision to read:
Subd. 3b. Rates;
vapor products. (a) A tax is
imposed upon all vapor products in this state and upon any person engaged in
business as a tobacco product distributor.
The tax imposed under this subdivision is imposed at the time the
tobacco products distributor:
(1) brings, or causes to be brought,
into this state vapor products for sale;
(2) makes, manufactures, or fabricates
vapor products in this state, not otherwise taxed under this subdivision, for
sale in this state; or
(3) ships or transports vapor products
to retailers in this state to be sold by those retailers.
(b) For vapor products that contain
bulk nicotine, the rate of tax is 300 percent of the wholesale sales price of
the vapor product.
(c) For vapor products that contain
consumable material, the rate of tax is 45 percent of the wholesale sales price
of the vapor product.
EFFECTIVE
DATE. This section is
effective January 1, 2017.
Sec. 26. Minnesota Statutes 2014, section 297F.05, is amended by adding a subdivision to read:
Subd. 4b. Use
tax; vapor products. A tax is
imposed upon the use or storage by consumers of all vapor products in this
state, and upon such consumers, at the rate of 300 percent of the wholesale
sales price of a vapor product containing bulk nicotine, and 45 percent of the
wholesale sales price of a vapor product containing consumable material.
EFFECTIVE
DATE. This section is
effective January 1, 2017.
Sec. 27. Minnesota Statutes 2014, section 297H.04, subdivision 2, is amended to read:
Subd. 2. Rate. (a) Commercial generators that generate nonmixed municipal solid waste shall pay a solid waste management tax of 60 cents per noncompacted cubic yard of periodic waste collection capacity purchased by the generator, based on the size of the container for the nonmixed municipal solid waste, the actual volume, or the weight-to-volume conversion schedule in paragraph (c). However, the tax must be calculated by the waste management service provider using the same method for calculating the waste management service fee so that both are calculated according to container capacity, actual volume, or weight.
(b) Notwithstanding section 297H.02, a residential generator that generates nonmixed municipal solid waste shall pay a solid waste management tax in the same manner as provided in paragraph (a).
(c) The weight-to-volume conversion schedule for:
(1) construction debris as defined in
section 115A.03, subdivision 7, is one ton equals 3.33 cubic yards, or $2
per ton equal to 60 cents per cubic yard. The commissioner of revenue, after
consultation with the commissioner of the Pollution Control Agency, shall
determine and may publish by notice a conversion schedule for construction
debris;
(2) industrial waste as defined in section 115A.03, subdivision 13a, is equal to 60 cents per cubic yard. The commissioner of revenue after consultation with the commissioner of the Pollution Control Agency, shall determine, and may publish by notice, a conversion schedule for various industrial wastes; and
(3) infectious waste as defined in section 116.76, subdivision 12, and pathological waste as defined in section 116.76, subdivision 14, is 150 pounds equals one cubic yard, or 60 cents per 150 pounds.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2016.
Sec. 28. Minnesota Statutes 2014, section 349.12, is amended by adding a subdivision to read:
Subd. 4a. Bingo
hall. (a) "Bingo
hall" means the premises on which an organization licensed under this
chapter regularly conducts bingo if:
(1) more than 50 percent of the
organization's gross receipts from lawful gambling in the prior calendar year
were attributable to the conduct of bingo or the organization had no receipts
from lawful gambling in that year; or
(2) no other organization conducts
lawful gambling on the premises.
(b) For purposes of this subdivision,
"bingo" does not include a linked bingo game as defined in this
section.
EFFECTIVE
DATE. This section is effective
July 1, 2016.
Sec. 29. REPEALER.
(a) Minnesota Statutes 2014, section
297F.05, subdivision 1a, is repealed.
(b) Minnesota Rules, part 8125.1300,
subpart 3, is repealed.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 6
MINERALS
Section 1. Minnesota Statutes 2014, section 298.24, is amended by adding a subdivision to read:
Subd. 5. TEDF;
deposits redirected. (a) For
concentrates produced by a plant subject to a reimbursement agreement dated
September 9, 2008, by and among Itasca County, Essar Global Limited, and
Minnesota Steel Industries LLC, the provisions of sections 298.227 and 298.28,
subdivision 9a, do not apply to the plant's production.
(b) All amounts not deposited in the
taconite economic development fund as a result of paragraph (a) must be
deposited in the Douglas J. Johnson economic protection trust fund created
under section 298.292.
(c)
The provisions of this subdivision expire upon certification by the
commissioner of employment and economic development that all requirements of
the reimbursement agreement, as specified in paragraph (a), are satisfied.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2014, section 298.28, subdivision 3, is amended to read:
Subd. 3. Cities; towns. (a) 12.5 cents per taxable ton, less any amount distributed under subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid account to be distributed as provided in section 298.282.
(b) An amount must be allocated to towns or cities that is annually certified by the county auditor of a county containing a taconite tax relief area as defined in section 273.134, paragraph (b), within which there is (1) an organized township if, as of January 2, 1982, more than 75 percent of the assessed valuation of the township consists of iron ore or (2) a city if, as of January 2, 1980, more than 75 percent of the assessed valuation of the city consists of iron ore.
(c) The amount allocated under paragraph (b) will be the portion of a township's or city's certified levy equal to the proportion of (1) the difference between 50 percent of January 2, 1982, assessed value in the case of a township and 50 percent of the January 2, 1980, assessed value in the case of a city and its current assessed value to (2) the sum of its current assessed value plus the difference determined in (1), provided that the amount distributed shall not exceed $55 per capita in the case of a township or $75 per capita in the case of a city. For purposes of this limitation, population will be determined according to the 1980 decennial census conducted by the United States Bureau of the Census. If the current assessed value of the township exceeds 50 percent of the township's January 2, 1982, assessed value, or if the current assessed value of the city exceeds 50 percent of the city's January 2, 1980, assessed value, this paragraph shall not apply. For purposes of this paragraph, "assessed value," when used in reference to years other than 1980 or 1982, means the appropriate net tax capacities multiplied by 10.2.
(d) In addition to other distributions under
this subdivision, three 3.25 cents per taxable ton for
distributions in 2009 2017 and subsequent years must be allocated
for distribution to (1) towns that are entirely located within the
taconite tax relief area defined in section 273.134, paragraph (b); and (2)
the following unorganized territories in St. Louis County and Itasca
County: 56-17; 58-22; 59-16; 59-21; 60-18;
and 60-19. For distribution in
2010 through 2014 and for distribution distributions in 2018 and
subsequent years, the three-cent 3.25-cent amount must be
annually increased in the same proportion as the increase in the implicit price
deflator as provided in section 298.24, subdivision 1. The amount available under this paragraph will
must be distributed to eligible towns and eligible unorganized
territories on a per capita basis, provided that no town or unorganized
territory may receive more than $50,000 in any year under this paragraph. Any amount of the distribution that exceeds
the $50,000 limitation for a town or unorganized territory under this
paragraph must be redistributed on a per capita basis among the other eligible
towns and eligible unorganized territories, to whose distributions do
not exceed $50,000. The amount
available to unorganized territories in St. Louis County and Itasca County
may be held by the county and combined for public infrastructure projects for
the specified unorganized territories.
EFFECTIVE
DATE. This section is
effective for distributions beginning in 2017 and thereafter.
Sec. 3. Minnesota Statutes 2014, section 298.28, subdivision 5, is amended to read:
Subd. 5. Counties. (a) 21.05 cents per taxable ton for distributions in 2015 through 2023, and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated to counties to be distributed, based upon certification by the commissioner of revenue, under paragraphs (b) to (d).
(b) 10.525 cents per taxable ton shall be distributed to the county in which the taconite is mined or quarried or in which the concentrate is produced, less any amount which is to be distributed pursuant to paragraph (c). The apportionment formula prescribed in subdivision 2 is the basis for the distribution.
(c) If 1.0 cent per taxable ton of
the tax distributed to the counties pursuant to paragraph (b) shall be paid to
a county that received a distribution under this section in 2000 because there
was located in the county an electric power plant owned by and providing
the primary source of power for a taxpayer mining and concentrating taconite is
located in a different county other than the county in which the
mining and the concentrating processes are conducted, one cent per taxable ton
of the tax distributed to the counties pursuant to paragraph (b) and imposed on
and collected from such taxpayer shall be paid to the county in which the power
plant is located.
(d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525 cents per taxable ton for distributions beginning in 2024, shall be paid to the county from which the taconite was mined, quarried or concentrated to be deposited in the county road and bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those processes are carried on in more than one county, the commissioner shall follow the apportionment formula prescribed in subdivision 2.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:
Subd. 7a. Iron Range school consolidation and cooperatively operated school account. The following amounts must be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in the Iron Range school consolidation and cooperatively operated school account that is hereby created:
(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax imposed under section 298.24; and (ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed under section 298.24;
(2) the amount as determined under section 298.17, paragraph (b), clause (3);
(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax proceeds attributable to the increase in the implicit price deflator as provided in section 298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J. Johnson economic protection trust fund;
(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased tax proceeds attributable to the increase in the implicit price deflator as provided in section 298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
(iii) for distributions in 2017 and thereafter, an amount equal to two-thirds of the sum of the increased tax proceeds attributable to the increase in the implicit price deflator as provided in section 298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the remaining one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
(4) any other amount as provided by law.
Expenditures from this account shall be made only to provide disbursements to assist school districts with the payment of bonds that were issued for qualified school projects, or for any other school disbursement as approved by the Iron Range Resources and Rehabilitation Board. For purposes of this section, "qualified school projects" means school projects within the taconite assistance area as defined in section 273.1341, that were (1) approved, by referendum, after April 3, 2006; and (2) approved by the commissioner of education pursuant to section 123B.71.
Beginning in fiscal year 2019, the disbursement to school districts for payments for bonds issued under section 123A.482, subdivision 9, must be increased each year to offset any reduction in debt service equalization aid that the school district qualifies for in that year, under section 123B.53, subdivision 6, compared with the amount the school district qualified for in fiscal year 2018.
No expenditure under this section shall be made unless approved by seven members of the Iron Range Resources and Rehabilitation Board.
EFFECTIVE
DATE. This section is
effective for distributions beginning in 2017 and thereafter.
ARTICLE 7
LOCAL DEVELOPMENT
Section 1. Minnesota Statutes 2014, section 469.1763, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the meanings given.
(b) "Activities" means acquisition of property, clearing of land, site preparation, soils correction, removal of hazardous waste or pollution, installation of utilities, construction of public or private improvements, and other similar activities, but only to the extent that tax increment revenues may be spent for such purposes under other law.
(c) "Third party" means an entity other than (1) the person receiving the benefit of assistance financed with tax increments, or (2) the municipality or the development authority or other person substantially under the control of the municipality.
(d) "Revenues derived from tax
increments paid by properties in the district" means only tax increment as
defined in section 469.174, subdivision 25, clause (1), and does not include
tax increment as defined in section 469.174, subdivision 25, clauses (2),
(3), and (4) to (5).
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2014, section 469.1763, subdivision 2, is amended to read:
Subd. 2. Expenditures
outside district. (a) For each tax
increment financing district, an amount equal to at least 75 percent of the
total revenue derived from tax increments paid by properties in the district
must be expended on activities in the district or to pay bonds, to the extent
that the proceeds of the bonds were used to finance activities in the district
or to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other than redevelopment
districts for which the request for certification was made after June 30, 1995,
the in-district percentage for purposes of the preceding sentence is 80 percent. Not more than 25 percent of the total revenue
derived from tax increments paid by properties in the district may be expended,
through a development fund or otherwise, on activities outside of the district
but within the defined geographic area of the project except to pay, or secure
payment of, debt service on credit enhanced bonds. For districts, other than redevelopment
districts for which the request for certification was made after June 30, 1995,
the pooling percentage for purposes of the preceding sentence is 20 percent. The revenue revenues derived
from tax increments for paid by properties in the district that
are expended on costs under section 469.176, subdivision 4h, paragraph (b), may
be deducted first before calculating the percentages that must be expended
within and without the district.
(b) In the case of a housing district, a housing project, as defined in section 469.174, subdivision 11, is an activity in the district.
(c) All administrative expenses are for activities outside of the district, except that if the only expenses for activities outside of the district under this subdivision are for the purposes described in paragraph (d), administrative expenses will be considered as expenditures for activities in the district.
(d) The authority may elect, in the tax increment financing plan for the district, to increase by up to ten percentage points the permitted amount of expenditures for activities located outside the geographic area of the district under paragraph (a). As permitted by section 469.176, subdivision 4k, the expenditures, including the permitted expenditures under paragraph (a), need not be made within the geographic area of the project. Expenditures that meet the requirements of this paragraph are legally permitted expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase under this paragraph, the expenditures must:
(1) be used exclusively to assist housing that meets the requirement for a qualified low-income building, as that term is used in section 42 of the Internal Revenue Code; and
(2) not exceed the qualified basis of the housing, as defined under section 42(c) of the Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal Revenue Code; and
(3) be used to:
(i) acquire and prepare the site of the housing;
(ii) acquire, construct, or rehabilitate the housing; or
(iii) make public improvements directly related to the housing; or
(4) be used to develop housing:
(i) if the market value of the housing does not exceed the lesser of:
(A) 150 percent of the average market value of single-family homes in that municipality; or
(B) $200,000 for municipalities located in the metropolitan area, as defined in section 473.121, or $125,000 for all other municipalities; and
(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition of existing structures, site preparation, and pollution abatement on one or more parcels, if the parcel contains a residence containing one to four family dwelling units that has been vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision 7, but without regard to whether the residence is the owner's principal residence, and only after the redemption period has expired.
(e) For a district created within a biotechnology and health sciences industry zone as defined in Minnesota Statutes 2012, section 469.330, subdivision 6, or for an existing district located within such a zone, tax increment derived from such a district may be expended outside of the district but within the zone only for expenditures required for the construction of public infrastructure necessary to support the activities of the zone, land acquisition, and other redevelopment costs as defined in section 469.176, subdivision 4j. These expenditures are considered as expenditures for activities within the district. The authority provided by this paragraph expires for expenditures made after the later of (1) December 31, 2015, or (2) the end of the five-year period beginning on the date the district was certified, provided that date was before January 1, 2016.
(f) The authority under paragraph (d), clause (4), expires on December 31, 2016. Increments may continue to be expended under this authority after that date, if they are used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if December 31, 2016, is considered to be the last date of the five-year period after certification under that provision.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2014, section 469.1763, subdivision 3, is amended to read:
Subd. 3. Five-year rule. (a) Revenues derived from tax increments paid by properties in the district are considered to have been expended on an activity within the district under subdivision 2 only if one of the following occurs:
(1) before or within five years after certification of the district, the revenues are actually paid to a third party with respect to the activity;
(2) bonds, the proceeds of which must be used to finance the activity, are issued and sold to a third party before or within five years after certification, the revenues are spent to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, reasonably expected to be spent before the end of the later of (i) the five-year period, or (ii) a reasonable temporary period within the meaning of the use of that term under section 148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve or replacement fund;
(3) binding contracts with a third party are entered into for performance of the activity before or within five years after certification of the district and the revenues are spent under the contractual obligation;
(4) costs with respect to the activity are paid before or within five years after certification of the district and the revenues are spent to reimburse a party for payment of the costs, including interest on unreimbursed costs; or
(5) expenditures are made for housing purposes as permitted by subdivision 2, paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted by subdivision 2, paragraph (e).
(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the original refunded bonds meet the requirements of paragraph (a), clause (2).
(c) For a redevelopment district or a renewal and renovation district certified after June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are extended to ten years after certification of the district. For a redevelopment district certified after April 20, 2009, and before June 30, 2012, the five-year periods described in paragraph (a) are extended to eight years after certification of the district. This extension is provided primarily to accommodate delays in development activities due to unanticipated economic circumstances.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2014, section 469.178, subdivision 7, is amended to read:
Subd. 7. Interfund loans. (a) The authority or municipality may advance or loan money to finance expenditures under section 469.176, subdivision 4, from its general fund or any other fund under which it has legal authority to do so.
(b) Not later than 60 days after money is
transferred, advanced, or spent, whichever is earliest, the loan or advance
must be authorized, by resolution of the governing body or of the
authority, whichever has jurisdiction over the fund from which the advance or
loan is authorized, before money is transferred, advanced, or spent,
whichever is earliest.
(c)
The resolution may generally grant to the municipality or the authority
the power to make interfund loans under one or more tax increment financing
plans or for one or more districts. The
resolution may be adopted before or after the adoption of the tax increment
financing plan or the creation of the tax increment financing district from
which the advance or loan is to be repaid.
(d) The terms and conditions for
repayment of the loan must be provided in writing and. The written terms and conditions may be in
any form, but must include, at a minimum, the principal amount, the
interest rate, and maximum term. Written
terms may be modified or amended in writing by the municipality or the
authority before the latest decertification of any tax increment financing
district from which the interfund loan is to be repaid. The maximum rate of interest permitted to be
charged is limited to the greater of the rates specified under section 270C.40
or 549.09 as of the date the loan or advance is authorized, unless the written
agreement states that the maximum interest rate will fluctuate as the interest
rates specified under section 270C.40 or 549.09 are from time to time adjusted. Loans or advances may be structured as
draw-down or line-of-credit obligations of the lending fund.
(e) The authority shall report in the
annual report submitted pursuant to section 469.175, subdivision 6:
(1) the amount of any interfund loan or
advance made in a calendar year; and
(2) any amendment of an interfund loan or
advance made in a calendar year.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to all districts,
regardless of when the request for certification was made.
Sec. 5. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read:
Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment financing plan for a district, the rules under this section apply to a redevelopment district, renewal and renovation district, economic development district, soil condition district, or a soil deficiency district established by the city or a development authority of the city in the project area.
(b) Prior to or upon the adoption of the first tax increment plan subject to the special rules under this subdivision, the city must find by resolution that parcels consisting of at least 80 percent of the acreage of the project area (excluding street and railroad right of way) are characterized by one or more of the following conditions:
(1) peat or other soils with geotechnical deficiencies that impair development of residential or commercial buildings or infrastructure;
(2) soils or terrain that requires substantial filling in order to permit the development of commercial or residential buildings or infrastructure;
(3) landfills, dumps, or similar deposits of municipal or private waste;
(4) quarries or similar resource extraction sites;
(5) floodway; and
(6) substandard buildings within the meaning of Minnesota Statutes, section 469.174, subdivision 10.
(c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to be characterized by the relevant condition if at least 70 percent of the area of the parcel contains the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is deemed to be characterized by substandard buildings if the buildings occupy at least 30 percent of the area of the parcel.
(d) The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, is extended to nine years for any district. The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is extended to ten years for any district, and section 469.1763, subdivision 4, does not apply to any district.
(e) Notwithstanding anything to the contrary in section 469.1763, subdivision 2, paragraph (a), not more than 80 percent of the total revenue derived from tax increments paid by properties in any district (measured over the life of the district) may be expended on activities outside the district but within the project area.
(f) For a soil deficiency district:
(1) increments may be collected through 20 years after the receipt by the authority of the first increment from the district; and
(2) except as otherwise provided in this subdivision, increments may be used only to:
(i) acquire parcels on which the improvements described in item (ii) will occur;
(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional cost of installing public improvements directly caused by the deficiencies; and
(iii) pay for the administrative expenses of the authority allocable to the district.
(g) Increments spent for any infrastructure costs, whether inside a district or outside a district but within the project area, are deemed to satisfy the requirements of paragraph (f) and Minnesota Statutes, section 469.176, subdivisions 4b, 4c, and 4j.
(h) Increments from any district may not be used to pay the costs of landfill closure or public infrastructure located on the following parcels within the plat known as Burnsville Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.
(i) The authority to approve tax increment
financing plans to establish tax increment financing districts under this
section expires on December 31, 2018 2020.
EFFECTIVE
DATE. This section is
effective upon approval by the governing body of the city of Burnsville and
compliance with the requirements of Minnesota Statutes, section 645.021.
Sec. 6. Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter 382, section 84, is amended to read:
Sec. 17. SEAWAY
PORT AUTHORITY OF DULUTH; TAX INCREMENT FINANCING DISTRICT; SPECIAL RULES.
(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and the governing body of the city of Duluth approves the plan for the tax increment financing district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020; 010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010‑2730-00090; 010-2730-00100; 010-02730-00120; 010-02730-00130; 010-02730-00140; 010-2730-00160; 010‑2730-00180; 010-2730-00200; 010-2730-00300; 010-02730-00320; 010-2746-01250; 010-2746-1330; 010‑2746-01340; 010-2746-01350; 010-2746-1440; 010-2746-1380; 010-2746-01490; 010-2746-01500; 010‑2746‑01510; 010-2746-01520; 010-2746-01530; 010-2746-01540; 010-2746-01550; 010-2746-01560; 010‑2746-01570; 010-2746-01580; 010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570; 010‑3300‑04580; 010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year rule under Minnesota
Statutes, section 469.1763, subdivision 3, that activities must be undertaken within a five-year period from the date of certification of the tax increment financing district, must be considered to be met if the activities are undertaken within five years after the date all qualifying parcels are delisted from the Federal Superfund list.
(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, beginning in the sixth year following certification of the district requirement, will begin in the sixth year following the date all qualifying parcels are delisted from the Federal Superfund list.
(c) The action required under Minnesota Statutes, section 469.176, subdivision 6, are satisfied if the action is commenced within four years after the date all qualifying parcels are delisted from the Federal Superfund list and evidence of the action required is submitted to the county auditor by February 1 of the fifth year following the year in which all qualifying parcels are delisted from the Federal Superfund list.
(d) For purposes of this section, "qualifying parcels" means United States Steel parcels listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part of the USS Site (USEPA OU 02) that are included in the tax increment financing district.
(e) In addition to the reporting requirements of Minnesota Statutes, section 469.175, subdivision 5, the Seaway Port Authority of Duluth shall report the status of all parcels listed in paragraph (a) and shown as part of the USS Site (USEPA OU 02). The status report must show the parcel numbers, the listed or delisted status, and if delisted, the delisting date.
(f) Notwithstanding Minnesota Statutes,
section 469.178, subdivision 7, or any other law to the contrary, the Seaway
Port Authority of Duluth may establish an interfund loan program before
approval of the tax increment financing plan for or the establishment of the
district authorized by this section. The
authority may make loans under this program and the proceeds of the loans may
be used for any permitted use of increments under this law or Minnesota
Statutes, section 469.176, for the district, and may be repaid with increments
from the district established under this section. This subdivision applies to any action
authorized by the Seaway Port Authority of Duluth on or after March 25, 2010.
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Duluth and its chief
clerical officer comply with Minnesota Statutes, section 645.021, subdivision
3.
Sec. 7. Laws 2014, chapter 308, article 6, section 9, is amended to read:
Sec. 9. CITY
OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.
Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have the meanings given them.
(b) "City" means the city of Maple Grove.
(c) "Project area" means all or a portion of the area in the city commencing at a point 130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section 23, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way line of Hemlock Lane; thence northerly along said easterly right‑of‑way line of Hemlock Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23, thence south along said west line a distance of 1,200 feet; thence easterly to the east line of Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance of 650 feet; thence northerly to a point on the northerly right‑of‑way line of 81st Avenue North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55 degrees West to the south line of
the Northwest Quarter of the Northwest Quarter of Section 24; thence West along said south line to the east right‑of‑way line of Zachary Lane; thence North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1, Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence South along the east line of said Outlot A and its southerly extension to the south right-of-way line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of Section 24; thence South along said east line to the north line of the South Half of the Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way line of Jefferson Highway North; thence southerly along the westerly right-of-way line of Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the westerly right-of-way line of State Highway 169 and the northerly right-of-way line of Interstate 694 to its intersection with the southerly extension of the easterly right-of-way line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning and there terminating, provided that the project area includes the rights-of-way for all present and future highway interchanges abutting the area described in this paragraph, and may include any additional property necessary to cause the property included in the tax increment financing district to consist of complete parcels.
(d) "Soil deficiency district" means a type of tax increment financing district consisting of a portion of the project area in which the city finds by resolution that the following conditions exist:
(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in the district require substantial filling, grading, or other physical preparation for use; and
(2) the estimated cost of the physical preparation under clause (1), but excluding costs directly related to roads as defined in Minnesota Statutes, section 160.01, and local improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before completion of the preparation.
Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment financing plan for a district, the rules under this section apply to a redevelopment district, renewal and renovation district, soil condition district, or soil deficiency district established by the city or a development authority of the city in the project area.
(b) Prior to or upon the adoption of the first tax increment plan subject to the special rules under this subdivision, the city must find by resolution that parcels consisting of at least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way, are characterized by one or more of the following conditions:
(1) peat or other soils with geotechnical deficiencies that impair development of commercial buildings or infrastructure;
(2) soils or terrain that require substantial filling in order to permit the development of commercial buildings or infrastructure;
(3) landfills, dumps, or similar deposits of municipal or private waste;
(4) quarries or similar resource extraction sites;
(5) floodway; and
(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174, subdivision 10.
(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the relevant condition if at least 70 percent of the area of the parcel contains the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by substandard buildings if substandard buildings occupy at least 30 percent of the area of the parcel.
(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is extended to eight years for any district, and Minnesota Statutes, section 469.1763, subdivision 4, does not apply to any district.
(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763, subdivision 2, paragraph (a), not more than 40 percent of the total revenue derived from tax increments paid by properties in any district, measured over the life of the district, may be expended on activities outside the district but within the project area.
(f) For a soil deficiency district:
(1) increments may be collected through 20 years after the receipt by the authority of the first increment from the district;
(2) increments may be used only to:
(i) acquire parcels on which the improvements described in item (ii) will occur;
(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional cost of installing public improvements directly caused by the deficiencies; and
(iii) pay for the administrative expenses of the authority allocable to the district; and
(3) any parcel acquired with increments from the district must be sold at no less than their fair market value.
(g) Increments spent for any infrastructure costs, whether inside a district or outside a district but within the project area, are deemed to satisfy the requirements of Minnesota Statutes, section 469.176, subdivision 4j.
(h) The authority to approve tax increment financing plans to establish tax increment financing districts under this section expires June 30, 2020.
(i) Notwithstanding the restrictions in
paragraph (f), clause (2), the city may use increments from a soil deficiency
district to acquire parcels and for other infrastructure costs either inside or
outside of the district, but within the project area, if the acquisition or
infrastructure is for a qualified development.
For purposes of this paragraph, a development is a qualified development
only if all of the following requirements are satisfied:
(1) the city finds, by resolution, that
the land acquisition and infrastructure are undertaken primarily to serve the
development;
(2) the city has a binding, written
commitment and adequate financial assurances from the developer that the
development will be constructed; and
(3) the development does not consist of
retail trade or housing improvements.
EFFECTIVE
DATE. This section is
effective upon approval by the governing body of the city of Maple Grove and
its compliance with the requirements of Minnesota Statutes, section 645.021.
Sec. 8. CITY
OF ANOKA; TIF DISTRICT.
For purposes of Minnesota Statutes,
section 469.1763, subdivision 3, paragraph (c), the city of Anoka's Greens of
Anoka redevelopment tax increment financing district is deemed to be certified
on June 29, 2012, rather than its actual certification date of July 2, 2012,
and the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and
4, apply as if the district were certified on that date.
EFFECTIVE
DATE. This section is
effective upon approval by the governing body of the city of Anoka and upon
compliance by the city with Minnesota Statutes, section 645.021, subdivisions 2
and 3.
Sec. 9. CITY
OF EDINA; APPROVAL OF 2014 SPECIAL LAW.
Notwithstanding the provisions of
Minnesota Statutes, section 645.021, subdivision 3, the chief clerical officer
of the city of Edina may file the city's certificate of its approval of Laws
2014, chapter 308, article 6, section 8, by June 30, 2016, and, if the
certificate is so filed and the requirements of Minnesota Statutes, section
645.021, subdivision 3, are otherwise complied with, the special law is deemed
approved, and all actions taken by the city prior to the effective date of this
section in reliance on Laws 2014, chapter 308, article 6, section 8, are deemed
consistent with Laws 2014, chapter 308, article 6, section 8, and this act.
EFFECTIVE
DATE. This section is
effective June 30, 2016, without local approval as an amendment to the
provisions of Laws 2014, chapter 308, article 6, section 8.
Sec. 10. CITY
OF COON RAPIDS; TAX INCREMENT FINANCING.
Notwithstanding
the provisions of Minnesota Statutes, section 469.176, subdivision 1b, or any
other law to the contrary, the city of Coon Rapids may collect tax increment
from District 6-1 Port Riverwalk through December 31, 2038.
EFFECTIVE
DATE. This section is
effective upon compliance by the governing bodies of the city of Coon Rapids,
Anoka County, and Independent School District No. 11 with the requirements
of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021,
subdivision 3.
Sec. 11. CITY
OF COTTAGE GROVE; TAX INCREMENT FINANCING.
The requirement of Minnesota Statutes,
section 469.1763, subdivision 3, that activities must be undertaken within a
five-year period from the date of certification of a tax increment financing
district, is considered to be met for Tax Increment Financing District No. 1-12
(Gateway North), administered by the Cottage Grove Economic Development
Authority, if the activities are undertaken prior to January 1, 2017.
EFFECTIVE
DATE. This section is
effective upon compliance by the chief clerical officer of the governing body of the city of Cottage Grove with the
requirements of Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 12. CITY
OF NORTHFIELD; TAX INCREMENT FINANCING.
The requirement of Minnesota Statutes,
section 469.1763, subdivision 3, that activities must be undertaken within a
five-year period from the date of certification of a tax increment financing
district, is considered to be met for the Riverfront Tax Increment Financing
District in the city of Northfield, if the activities are undertaken prior to
July 12, 2017.
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Northfield and its
chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
Sec. 13. CITY
OF RICHFIELD; EXTENSION OF DISTRICT.
Notwithstanding Minnesota Statutes,
section 469.176, subdivision 1b, or any other law to the contrary, the city of
Richfield and the Housing and Redevelopment Authority in and for the city of
Richfield may elect to extend the duration limit of the redevelopment tax
increment financing district known as the Cedar Avenue Tax Increment Financing
District established by Laws 2005, chapter 152, article 2, section 25, by ten years.
EFFECTIVE
DATE. This section is
effective upon compliance by the city of Richfield, Hennepin County, and
Independent School District No. 280 with the requirements of Minnesota
Statutes, sections 469.1782, subdivision 2; and 645.021, subdivisions 2 and 3.
Sec. 14. CITY
OF ST. PAUL; TIF AUTHORITY.
(a) For purposes of computing the
duration limits under Minnesota Statutes, section 469.176, subdivision 1b, the
housing and redevelopment authority of the city of St. Paul may waive
receipt of increment for the Ford Site Redevelopment Tax Increment Financing
District. This authority is limited to
the first four years of increment or increments derived from taxes payable in
2023, whichever occurs first.
(b) If the city elects to waive receipt
of increment under paragraph (a), for purposes of applying any limits based on
when the district was certified under Minnesota Statutes, section 469.176,
subdivision 6, or 469.1763, the date of certification for the district is
deemed to be January 2 of the property tax assessment year for which increment
is first received under the waiver.
EFFECTIVE
DATE. This section is
effective July 1, 2016, without local approval under Minnesota Statutes,
section 645.023, subdivision 1, paragraph (a).
ARTICLE 8
PUBLIC FINANCE
Section 1. Minnesota Statutes 2014, section 366.095, subdivision 1, is amended to read:
Subdivision 1. Certificates of indebtedness. The town board may issue certificates of indebtedness within the debt limits for a town purpose otherwise authorized by law. The certificates shall be payable in not more than ten years and be issued on the terms and in the manner as the board may determine, provided that notes issued for projects that eliminate R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2), shall be payable in not more than 20 years. If the amount of the certificates to be issued exceeds 0.25 percent of the estimated market value of the town, they shall not be issued for at least ten days after publication in a newspaper of general circulation in the town of the board's resolution determining to issue them. If within 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 town election is filed with the clerk, the certificates shall not be issued until their issuance has been approved by a majority of the votes cast on the question at a regular or special election. A tax levy shall be made to pay the principal and interest on the certificates as in the case of bonds.
Sec. 2. Minnesota Statutes 2014, section 383B.117, subdivision 2, is amended to read:
Subd. 2. Equipment
acquisition; capital notes. The
board may, by resolution and without public referendum, issue capital notes
within existing debt limits for the purpose of purchasing ambulance and other
medical equipment, road construction or maintenance equipment, public safety
equipment and other capital equipment having an expected useful life at least
equal to the term of the notes issued. The
notes shall be payable in not more than ten years and shall be issued on terms
and in a manner as the board determines, provided that notes issued for
projects that eliminate R-22, as such projects are defined in section 240A.09,
paragraph (b), clause (2), shall be payable in
not more than 20 years. The total principal amount of the notes issued for any fiscal year shall not exceed one percent of the total annual budget for that year and shall be issued solely for the purchases authorized in this subdivision. A tax levy shall be made for the payment of the principal and interest on such notes as in the case of bonds. For purposes of this subdivision, "equipment" includes computer hardware and software, whether bundled with machinery or equipment or unbundled. For purposes of this subdivision, the term "medical equipment" includes computer hardware and software and other intellectual property for use in medical diagnosis, medical procedures, research, record keeping, billing, and other hospital applications, together with application development services and training related to the use of the computer hardware and software and other intellectual property, all without regard to their useful life. For purposes of determining the amount of capital notes which the county may issue in any year, the budget of the county and Hennepin Healthcare System, Inc. shall be combined and the notes issuable under this subdivision shall be in addition to obligations issuable under section 373.01, subdivision 3.
Sec. 3. Minnesota Statutes 2014, section 410.32, is amended to read:
410.32
CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
(a) Notwithstanding any contrary provision of other law or charter, a home rule charter city may, by resolution and without public referendum, issue capital notes subject to the city debt limit to purchase capital equipment.