.................... moves to amend H.F. No. 42, the delete everything amendment
(A11-0140), as follows:
Page 31, after line 24 insert:
Section 1. Minnesota Statutes 2010, section 298.01, subdivision 3, is amended to read:
Subd. 3. Occupation tax; other ores.
Every person engaged in the business of
mining or producing ores in this state, except iron ore or taconite concentrates, shall pay
an occupation tax to the state of Minnesota as provided in this subdivision. The tax is
determined in the same manner as the tax imposed by section
, except that sections
1.11290.05, subdivision 1
, clause (a),
290.17, subdivision 4
290.191, subdivision 2
not apply, and the occupation tax must be computed by applying to taxable income the rate
percent. A person subject to occupation tax under this section shall apportion
its net income on the basis of the percentage obtained by taking the sum of:
(1) 75 percent of the percentage which the sales made within this state in connection
with the trade or business during the tax period are of the total sales wherever made in
connection with the trade or business during the tax period;
(2) 12.5 percent of the percentage which the total tangible property used by the
taxpayer in this state in connection with the trade or business during the tax period is of
the total tangible property, wherever located, used by the taxpayer in connection with the
trade or business during the tax period; and
(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
in this state or paid in respect to labor performed in this state in connection with the trade
or business during the tax period are of the taxpayer's total payrolls paid or incurred in
connection with the trade or business during the tax period.
The tax is in addition to all other taxes.
Sec. 2. Minnesota Statutes 2010, section 298.015, subdivision 1, is amended to read:
Subdivision 1. Tax imposed.
A person engaged in the business of mining shall pay
to the state of Minnesota for distribution as provided in section
a net proceeds tax
percent of the net proceeds from mining in Minnesota. The tax applies to
all mineral and energy resources mined or extracted within the state of Minnesota except
for sand, silica sand, gravel, building stone, crushed rock, limestone, granite, dimension
granite, dimension stone, horticultural peat, clay, soil, iron ore, and taconite concentrates.
The tax is in addition to all other taxes provided for by law.
Sec. 3. Minnesota Statutes 2010, section 298.018, subdivision 1, is amended to read:
Subdivision 1. Within taconite assistance area.
The proceeds of the tax paid under
on minerals and energy resources mined or extracted within
the taconite assistance area defined in section
, shall be allocated as follows:
(1) five percent to the city or town within which the minerals or energy resources
are mined or extracted or within which the concentrate was produced. If the mining
2.15and concentration, or different steps in either process, are carried on in more than one
2.16taxing district, the commissioner shall apportion equitably the proceeds of the part of the
2.17tax going to cities and towns among them upon the basis of attributing 50 percent of
2.18the proceeds of the tax to the operation of mining or extraction, and the remainder to
2.19the concentrating plant and to the processes of concentration, and with respect to each
2.20thereof giving due consideration to the relative extent of such operations performed in
2.21each taxing district
(2) ten percent to the taconite municipal aid account to be distributed as provided
(3) ten percent to the school district within which the minerals or energy resources
are mined or extracted or within which the concentrate was produced. If the mining
2.26and concentration, or different steps in either process, are carried on in more than one
2.27school district, distribution among the school districts must be based on the apportionment
2.28formula prescribed in clause (1)
(4) 20 percent to a group of school districts comprised of those school districts
wherein the mineral or energy resource was mined or extracted or in which there is a
qualifying municipality as defined by section
273.134, paragraph (b)
, in direct proportion
to school district indexes as follows: for each school district, its pupil units determined
for the prior school year shall be multiplied by the ratio of the
average adjusted net tax capacity per pupil unit for school districts receiving aid under
this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
Each district shall receive that portion of the distribution which its index bears to the sum
of the indices for all school districts that receive the distributions;
(5) 20 percent to the county within which the minerals or energy resources are mined
or extracted, provided that the county shall pay one percent of its proceeds to the Range
3.6Association of Municipalities and Schools
(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be
distributed as provided in sections
(7) five percent to the Iron Range Resources and Rehabilitation Board for the
purposes of section
percent to the Douglas J. Johnson economic protection trust fund; and
percent to the taconite environmental protection fund.
The proceeds of the tax shall be distributed on July 15 each year.
Sec. 4. Minnesota Statutes 2010, 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
(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
3.20273.134, 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 cents per taxable
ton for distributions in 2009 and subsequent years
must be allocated for distribution
to towns that are entirely located within the taconite tax relief area defined in section
, paragraph (b).
For distribution in 2010 and subsequent years, the three-cent
4.7 amount must be annually increased in the same proportion as the increase in the implicit
4.8 price deflator as provided in section
298.24, subdivision 1 .
The amount available under
this paragraph will be distributed to eligible towns on a per capita basis, provided that no
town 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 under this paragraph must be
redistributed on a per capita basis among the other eligible towns, to whose distributions
do not exceed $50,000.
4.14EFFECTIVE DATE.This section is effective for the 2012 distribution.
Renumber the sections in sequence and correct the internal references
Amend the title accordingly