1.1.................... moves to amend H.F. No. 4 as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. Minnesota Statutes 2016, section 13.4967, is amended by adding a subdivision
1.6to read:
1.7    Subd. 9. Minnesota housing credit. Data related to Minnesota housing tax credit
1.8certifications and allocations are classified in section 462A.39.
1.9EFFECTIVE DATE.This section is effective the day following final enactment.

1.10    Sec. 2. [41B.0391] BEGINNING FARMER PROGRAM; TAX CREDITS.
1.11    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
1.12the meanings given.
1.13(b) "Agricultural assets" means agricultural land, livestock, facilities, buildings, and
1.14machinery used for farming in Minnesota.
1.15(c) "Beginning farmer" means a resident of Minnesota who:
1.16(1) is seeking entry, or has entered within the last ten years, into farming;
1.17(2) intends to farm land located within the state borders of Minnesota;
1.18(3) is not and whose spouse is not a family member of the owner of the agricultural
1.19assets from whom the beginning farmer is seeking to purchase or rent agricultural assets;
1.20(4) is not and whose spouse is not a family member of a partner, member, shareholder,
1.21or trustee of the owner of agricultural assets from whom the beginning farmer is seeking to
1.22purchase or rent agricultural assets; and
2.1(5) meets the following eligibility requirements as determined by the authority:
2.2(i) has a net worth that does not exceed the limit provided under section 41B.03,
2.3subdivision 3, paragraph (a), clause (2);
2.4(ii) provides the majority of the day-to-day physical labor and management of the farm;
2.5(iii) has, by the judgment of the authority, adequate farming experience or demonstrates
2.6knowledge in the type of farming for which the beginning farmer seeks assistance from the
2.7authority;
2.8(iv) demonstrates to the authority a profit potential by submitting projected earnings
2.9statements;
2.10(v) asserts to the satisfaction of the authority that farming will be a significant source
2.11of income for the beginning farmer;
2.12(vi) participates in a financial management program approved by the authority or the
2.13commissioner of agriculture; and
2.14(vii) has other qualifications as specified by the authority.
2.15(d) "Family member" means a family member within the meaning of the Internal Revenue
2.16Code, section 267(c)(4).
2.17(e) "Farm product" means plants and animals useful to humans and includes, but is not
2.18limited to, forage and sod crops, oilseeds, grain and feed crops, dairy and dairy products,
2.19poultry and poultry products, livestock, fruits, and vegetables.
2.20(f) "Farming" means the active use, management, and operation of real and personal
2.21property for the production of a farm product.
2.22(g) "Owner of agricultural assets" means an individual, trust, or pass-through entity that
2.23is the owner in fee of agricultural land or has legal title to any other agricultural asset. Owner
2.24of agricultural assets does not mean an equipment dealer, livestock dealer defined in section
2.2517A.03, subdivision 7, or comparable entity that is engaged in the business of selling
2.26agricultural assets for profit and that is not engaged in farming as its primary business
2.27activity.
2.28(h) "Share rent agreement" means a rental agreement in which the principal consideration
2.29given to the owner of agricultural assets is a predetermined portion of the production of
2.30farm products produced from the rented agricultural assets and which provides for sharing
2.31production costs or risk of loss, or both.
3.1    Subd. 2. Tax credit for owners of agricultural assets. (a) An owner of agricultural
3.2assets may take a credit against the tax due under chapter 290 for the sale or rental of
3.3agricultural assets to a beginning farmer. An owner of agricultural assets may take a credit
3.4equal to:
3.5(1) five percent of the sale price of the agricultural asset;
3.6(2) ten percent of the gross rental income in each of the first, second, and third years of
3.7a rental agreement; or
3.8(3) 15 percent of the cash equivalent of the gross rental income in each of the first,
3.9second, and third years of a share rent agreement.
3.10(b) A qualifying rental agreement includes cash rent of agricultural assets or a share rent
3.11agreement. The agricultural asset must be rented at prevailing community rates as determined
3.12by the authority. The credit may be claimed only after approval and certification by the
3.13authority.
3.14(c) An owner of agricultural assets or beginning farmer may terminate a rental agreement,
3.15including a share rent agreement, for reasonable cause upon approval of the authority. If a
3.16rental agreement is terminated without the fault of the owner of agricultural assets, the tax
3.17credits shall not be retroactively disallowed. If an agreement is terminated with fault by the
3.18owner of agricultural assets, any prior tax credits claimed under this subdivision by the
3.19owner of agricultural assets shall be disallowed and must be repaid to the commissioner of
3.20revenue.
3.21(d) The credit is limited to the liability for tax as computed under chapter 290 for the
3.22taxable year. If the amount of the credit determined under this section for any taxable year
3.23exceeds this limitation, the excess is a beginning farmer incentive credit carryover according
3.24to section 290.06, subdivision 37.
3.25    Subd. 3. Beginning farmer management tax credit. (a) A beginning farmer may take
3.26a credit against the tax due under chapter 290 for participating in a financial management
3.27program approved by the authority. The credit is equal to 100 percent of the cost of
3.28participating in the program. The credit is available for up to three years while the farmer
3.29is in the program. The authority shall maintain a list of approved financial management
3.30programs and establish a procedure for approving equivalent programs that are not on the
3.31list.
3.32(b) The credit is limited to the liability for tax as computed under chapter 290 for the
3.33taxable year. If the amount of the credit determined under this section for any taxable year
4.1exceeds this limitation, the excess is a beginning farmer management credit carryover
4.2according to section 290.06, subdivision 38.
4.3    Subd. 4. Authority duties. The authority shall:
4.4(1) approve and certify beginning farmers as eligible for the program under this section;
4.5(2) approve and certify owners of agricultural assets as eligible for the tax credit under
4.6subdivision 2;
4.7(3) provide necessary and reasonable assistance and support to beginning farmers for
4.8qualification and participation in financial management programs approved by the authority;
4.9and
4.10(4) refer beginning farmers to agencies and organizations that may provide additional
4.11pertinent information and assistance.
4.12EFFECTIVE DATE.This section is effective for taxable years beginning after December
4.1331, 2016.

4.14    Sec. 3. Minnesota Statutes 2016, section 290.01, subdivision 7, is amended to read:
4.15    Subd. 7. Resident. (a) The term "resident" means any individual domiciled in Minnesota,
4.16except that an individual is not a "resident" for the period of time that the individual is a
4.17"qualified individual" as defined in section 911(d)(1) of the Internal Revenue Code, if the
4.18qualified individual notifies the county within three months of moving out of the country
4.19that homestead status be revoked for the Minnesota residence of the qualified individual,
4.20and the property is not classified as a homestead while the individual remains a qualified
4.21individual.
4.22(b) "Resident" also means any individual domiciled outside the state who maintains a
4.23place of abode in the state and spends in the aggregate more than one-half of the tax year
4.24in Minnesota, unless:
4.25(1) the individual or the spouse of the individual is in the armed forces of the United
4.26States; or
4.27(2) the individual is covered under the reciprocity provisions in section 290.081.
4.28For purposes of this subdivision, presence within the state for any part of a calendar day
4.29constitutes a day spent in the state. A day does not qualify as a Minnesota day if the taxpayer
4.30traveled from a place outside of Minnesota primarily for and essential to obtaining medical
4.31care, as defined in Internal Revenue Code, section 213(d)(1)(A), in Minnesota for the
4.32taxpayer, spouse, or a dependent of the taxpayer and the travel expense is allowed under
5.1section 213(d)(1)(B) of the Internal Revenue Code, and is claimed by the taxpayer as a
5.2deductible expense. Individuals shall keep adequate records to substantiate the days spent
5.3outside the state.
5.4The term "abode" means a dwelling maintained by an individual, whether or not owned
5.5by the individual and whether or not occupied by the individual, and includes a dwelling
5.6place owned or leased by the individual's spouse.
5.7(c) In determining where an individual is domiciled, neither the commissioner nor any
5.8court shall consider:
5.9(1) charitable contributions made by an the individual within or without the state in
5.10determining if the individual is domiciled in Minnesota.;
5.11(2) the location of the individual's attorney, certified public accountant, or financial
5.12adviser; or
5.13(3) the place of business of a financial institution at which the individual applies for any
5.14new type of credit or at which the individual opens or maintains any type of account.
5.15(d) For purposes of this subdivision, the following terms have the meanings given them:
5.16(1) "financial adviser" means:
5.17(i) an individual or business entity engaged in business as a certified financial planner,
5.18registered investment adviser, licensed insurance producer or agent, or registered securities
5.19broker-dealer representative; or
5.20(ii) a financial institution providing services related to trust or estate administration,
5.21investment management, or financial planning; and
5.22(2) "financial institution" means a financial institution as defined in section 47.015,
5.23subdivision 1; a state or nationally chartered credit union; or a registered broker-dealer
5.24under the Securities and Exchange Act of 1934.
5.25EFFECTIVE DATE.This section is effective for taxable years beginning after December
5.2631, 2016, except the amendment to paragraph (b) is effective for taxable years beginning
5.27after December 31, 2017.

5.28    Sec. 4. Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision
5.29to read:
5.30    Subd. 15. First-time home buyer savings account. The amount for a first-time home
5.31buyer savings account required by section 462D.06, subdivision 2, is an addition.
6.1EFFECTIVE DATE.This section is effective for taxable years beginning after December
6.231, 2016.

6.3    Sec. 5. Minnesota Statutes 2016, section 290.0132, subdivision 4, is amended to read:
6.4    Subd. 4. Education expenses. (a) Subject to the limits in paragraph (b), the following
6.5amounts paid to others for each qualifying child are a subtraction:
6.6(1) education-related expenses; plus
6.7(2) tuition and fees paid to attend a school described in section 290.0674, subdivision
6.81 , clause (4), that are not included in education-related expenses; less
6.9(3) any amount amounts used to claim the credit credits under section 290.067 or
6.10290.0674 .
6.11(b) The maximum subtraction allowed under this subdivision is:
6.12(1) $1,625 for each qualifying child in a prekindergarten educational program or in
6.13kindergarten through grade 6; and
6.14(2) $2,500 for each qualifying child in grades 7 through 12.
6.15(c) The definitions in section 290.0674, subdivision 1, apply to this subdivision.
6.16EFFECTIVE DATE.This section is effective for taxable years beginning after December
6.1731, 2016.

6.18    Sec. 6. Minnesota Statutes 2016, section 290.0132, subdivision 14, is amended to read:
6.19    Subd. 14. Section 179 expensing. In each of the five taxable years immediately following
6.20the taxable year in which an addition is required under section 290.0131, subdivision 10,
6.21or 290.0133, subdivision 12, for a shareholder of a corporation that is an S corporation, an
6.22amount equal to one-fifth of the addition made by the taxpayer under section 290.0131,
6.23subdivision 10 , or 290.0133, subdivision 12, for a shareholder of a corporation that is an S
6.24corporation, minus the positive value of any net operating loss under section 172 of the
6.25Internal Revenue Code generated for the taxable year of the addition, is a subtraction. If the
6.26net operating loss exceeds the addition for the taxable year, a subtraction is not allowed
6.27under this subdivision. The current year section 179 allowance under section 290.0804,
6.28subdivision 1, is a subtraction.
6.29EFFECTIVE DATE.This section is effective for taxable years beginning after December
6.3031, 2016.

7.1    Sec. 7. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
7.2to read:
7.3    Subd. 23. Contributions to 529 plan. (a) The amount equal to the contributions made
7.4during the taxable year to one or more accounts in plans qualifying under section 529 of
7.5the Internal Revenue Code, reduced by any withdrawals from accounts during the taxable
7.6year, is a subtraction.
7.7(b) The subtraction under this subdivision does not include amounts rolled over from
7.8other college savings plan accounts.
7.9(c) The subtraction under this subdivision must not exceed $3,000 for married couples
7.10filing joint returns and $1,500 for all other filers, and is limited to individuals who do not
7.11claim the credit under section 290.0684.
7.12EFFECTIVE DATE.This section is effective for taxable years beginning after December
7.1331, 2016.

7.14    Sec. 8. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
7.15to read:
7.16    Subd. 24. Social Security benefits. The amount of Social Security benefits, as provided
7.17in section 290.0803, is a subtraction.
7.18EFFECTIVE DATE.This section is effective for taxable years beginning after December
7.1931, 2016.

7.20    Sec. 9. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
7.21to read:
7.22    Subd. 25. Discharge of indebtedness; education loans. (a) The amount equal to the
7.23discharge of indebtedness of the taxpayer is a subtraction if:
7.24(1) the indebtedness discharged is a qualified education loan;
7.25(2) the taxpayer incurred the indebtedness to pay for qualified higher education expenses
7.26related to attending a graduate degree program; and
7.27(3) the indebtedness was discharged under section 136A.1791, or following the taxpayer's
7.28completion of an income-driven repayment plan.
7.29(b) For the purposes of this subdivision, "qualified education loan" and "qualified higher
7.30education expenses" have the meanings given in section 221 of the Internal Revenue Code.
8.1(c) For purposes of this subdivision, "income-driven repayment plan" means a payment
8.2plan established by the United States Department of Education that sets monthly student
8.3loan payments based on income and family size under United States Code, title 20, section
8.41087e, or similar authority and specifically includes, but is not limited to:
8.5(1) the income-based repayment plan under United States Code, title 20, section 1098e;
8.6(2) the income contingent repayment plan established under United States Code, title
8.720, section 1087e, subsection (e); and
8.8(3) the PAYE program or REPAYE program established by the Department of Education
8.9under administrative regulations.
8.10EFFECTIVE DATE.This section is effective for taxable years beginning after December
8.1131, 2016.

8.12    Sec. 10. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
8.13to read:
8.14    Subd. 26. Carryover section 179 allowance. The carryover section 179 allowance under
8.15section 290.0804, subdivision 2, is a subtraction.
8.16EFFECTIVE DATE.This section is effective for taxable years beginning after December
8.1731, 2016.

8.18    Sec. 11. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision
8.19to read:
8.20    Subd. 27. First-time home buyer savings account. (a) The amount for contributions
8.21to and earnings on a first-time home buyer savings account allowed by section 462D.06,
8.22subdivision 1, is a subtraction.
8.23(b) The subtraction allowed under this subdivision for a taxable year is limited to $7,500,
8.24or $15,000 for married joint filers. For a taxpayer whose adjusted gross income, as defined
8.25in section 62 of the Internal Revenue Code, for the taxable year exceeds $125,000, or
8.26$250,000 for married joint filers, the maximum subtraction is reduced $1 for each $4 of
8.27adjusted gross income in excess of that threshold.
8.28(c) The adjusted gross income thresholds under paragraph (b) are annually adjusted for
8.29inflation. Effective for taxable year 2018, the commissioner shall adjust the dollar amount
8.30of the income thresholds at which the maximum credit begins to be reduced under paragraph
8.31(b) by the percentage determined under section 1(f) of the Internal Revenue Code, except
9.1that in section 1(f)(3)(B) the word "2016" is substituted for the word "1992." For 2018, the
9.2commissioner shall then determine the percent change from the 12 months ending on August
9.331, 2016, to the 12 months ending on August 31, 2017, and in each subsequent year, from
9.4the 12 months ending on August 31, 2016, to the 12 months ending on August 31 of the
9.5year preceding the taxable year. The determination of the commissioner under this
9.6subdivision is not a "rule" and is not subject to the Administrative Procedure Act in chapter
9.714. The threshold amount as adjusted must be rounded to the nearest $100 amount. If the
9.8amount ends in $50, the amount is rounded up to the nearest $100 amount.
9.9EFFECTIVE DATE.This section is effective for taxable years beginning after December
9.1031, 2016.

9.11    Sec. 12. [290.016] CONFORMITY TO FEDERAL TAX EXTENDERS BY
9.12ADMINISTRATIVE ACTION.
9.13    Subdivision 1. Legislative purpose. (a) The legislature intends this section to provide
9.14an ongoing mechanism for conforming the Minnesota individual income and corporate
9.15franchise taxes and the property tax refund and homestead credit refund programs to federal
9.16tax legislation enacted after the legislature has adjourned that extends existing provisions
9.17of federal law, if the provisions affect a taxable year that ends before the legislature is
9.18scheduled to reconvene in regular session. Congress has regularly enacted changes of that
9.19type that affect computation of Minnesota tax through its links to federal law. The federal
9.20changes consist mainly of extending provisions that reduce revenues and are scheduled to
9.21expire. Because Minnesota law is linked to federal law as of a specific date, taxpayers and
9.22the Department of Revenue must assume that Minnesota law does not include the effect of
9.23these federal changes even though the legislature regularly adopts most of the federal
9.24provisions retroactively in the next legislative session. This situation undermines compliance
9.25and administration of Minnesota taxes, causing delay, uncertainty, and added costs. This
9.26section provides an administrative mechanism to conform to most of these federal changes.
9.27The legislature's intent is to conform to the federal tax extenders, including minor
9.28modifications of them, and to set aside the necessary state budget resources to do so.
9.29(b) By expressing its intent regarding specific federal provisions and indicating how to
9.30treat each federal extender provision, the legislature is exercising its legislative power and
9.31is not delegating to Congress or the commissioner the authority to determine Minnesota tax
9.32law. The legislature believes that this section is consistent with the Minnesota Supreme
9.33Court's ruling in the case of Wallace v. Commissioner of Taxation, 289 Minn. 220 (1971).
10.1    Subd. 2. Federal tax conformity account established; transfer. (a) A federal tax
10.2conformity account is established in the general fund. Money in the account is available for
10.3transfer to the general fund to offset the reduction in general fund revenues resulting from
10.4conforming Minnesota tax law to federal law under this section.
10.5(b) $35,000,000 is transferred from the general fund to the federal tax conformity account,
10.6effective July 1, 2017.
10.7(c) Each year, within ten days after receiving notice of the amount from the commissioner,
10.8the commissioner of management and budget shall transfer from the account to the general
10.9fund the amount the commissioner determines is required under subdivision 4.
10.10    Subd. 3. Eligible federal tax preferences. For purposes of this section and section
10.11290.01, the term "eligible federal tax preferences" means any of the following items that
10.12are not in effect under the Internal Revenue Code for future taxable years beginning after
10.13December 31, 2016:
10.14(1) discharge of qualified principal residence indebtedness under section 108(a)(1)(E)
10.15of the Internal Revenue Code;
10.16(2) mortgage insurance premiums treated as qualified residence interest under section
10.17163(h)(3)(E) of the Internal Revenue Code;
10.18(3) qualified tuition and related expenses under section 222 of the Internal Revenue
10.19Code;
10.20(4) reversion of the ten percent adjusted gross income threshold used in determining the
10.21itemized deductions of the expenses of medical care under section 213 of the Internal
10.22Revenue Code to 7.5 percent, without regard to whether the reversion applies to all
10.23individuals or is limited to individuals who have attained the age of 65;
10.24(5) classification of certain race horses as three-year property under section
10.25168(e)(3)(A)(i) and (ii) of the Internal Revenue Code;
10.26(6) the seven-year recovery period for motorsports entertainment complexes under
10.27section 168(i)(15) of the Internal Revenue Code;
10.28(7) the accelerated depreciation for business property on an Indian reservation under
10.29section 168(j) of the Internal Revenue Code;
10.30(8) the election to expense mine safety equipment under section 179E of the Internal
10.31Revenue Code;
11.1(9) the special expensing rules for certain film and television productions under section
11.2181 of the Internal Revenue Code;
11.3(10) the special allowance for second-generation biofuel plant property under section
11.4168(l) of the Internal Revenue Code;
11.5(11) the energy efficient commercial buildings deduction under section 179D of the
11.6Internal Revenue Code;
11.7(12) the five-year recovery period for property described in section 168(e)(3)(B)(vi)(I)
11.8of the Internal Revenue Code and qualifying for an energy credit under section 48(a)(3)(A)
11.9of the Internal Revenue Code; and
11.10(13) the amount of the additional section 179 allowance in an empowerment zone under
11.11section 1397A of the Internal Revenue Code.
11.12    Subd. 4. Designation of qualifying federal conformity items. (a) If, after final
11.13adjournment of a regular session of the legislature, Congress enacts a law that extends one
11.14or more of the eligible federal tax preferences to taxable years beginning during the calendar
11.15year in which the legislature adjourned, the commissioner shall prepare a list of qualifying
11.16federal conformity items and publish it on the Department of Revenue's Web site within 30
11.17days following enactment of the law. In preparing the list, the commissioner shall estimate
11.18the change in revenue resulting from allowing the eligible federal tax preferences, including
11.19the effect of subdivision 6, for the current and succeeding fiscal year only. The commissioner
11.20shall not include an item on the list of qualifying federal conformity items if the commissioner
11.21estimates that its inclusion would reduce general fund revenues for the current and succeeding
11.22fiscal year by more than the balance in the federal tax conformity account.
11.23(b) The commissioner shall consider the provisions of subdivision 6 as the first item to
11.24include on the list of qualifying conformity items. The commissioner shall apply the following
11.25priorities in determining which additional items to include:
11.26(1) the effect of all eligible federal tax preferences on computation of federal adjusted
11.27gross income under this chapter and household income under chapter 290A, is the first
11.28priority;
11.29(2) the effect of the federal law on computation of Minnesota tax credits is the second
11.30priority;
11.31(3) the items in subdivision 3, clauses (5) to (13), in that order, are the third priority;
11.32and
11.33(4) the items in subdivision 3, clauses (1) to (4), in that order, are the last priority.
12.1(c) In determining whether to include an eligible federal tax preference on the list of
12.2qualifying federal conformity items, the commissioner may include items in which
12.3nonmaterial changes were made in the federal law extending allowance of the eligible federal
12.4tax preferences, compared to the provision that was in effect for the prior federal taxable
12.5year. For purposes of this determination, nonmaterial changes are limited to changes that
12.6are estimated to increase or decrease Minnesota tax revenues by no more than $1,000,000
12.7for the affected eligible federal tax preference item for the taxable year.
12.8(d) Within ten days after the commissioner's final determination of qualifying federal
12.9conformity items under this subdivision, the commissioner shall notify the commissioner
12.10of management and budget, in writing, of the amounts of the federal tax conformity account
12.11transfers under subdivision 2.
12.12    Subd. 5. Provisions in effect. (a) For purposes of determining tax and credits under this
12.13chapter, including the taxes under sections 290.091 and 290.0921, and household income
12.14under chapter 290A, qualifying federal conformity items and bonus depreciation rules under
12.15subdivision 6 apply for the designated taxable year and the provisions of this chapter apply
12.16as if the definition of the Internal Revenue Code under section 290.01, subdivision 31,
12.17included the amendments to the qualifying federal conformity items.
12.18(b) The commissioner shall administer the taxes under this chapter and refunds under
12.19chapter 290A as if Minnesota had conformed to the federal definitions of net income,
12.20adjusted gross income, and tax credits that affect computation of Minnesota tax or refunds
12.21resulting from extension of the qualifying federal conformity items.
12.22(c) For purposes of this subdivision and subdivision 6, "designated taxable year" means
12.23a taxable year that begins during a calendar year in which an eligible federal tax preference
12.24is enacted after the legislature adjourned its regular session and is effective for taxable years
12.25beginning during that calendar year.
12.26    Subd. 6. Bonus depreciation; 80 percent rule applies. If, following final adjournment
12.27of a regular session of the legislature, Congress enacts a law that extends application of the
12.28depreciation special allowances under section 168(k) of the Internal Revenue Code to taxable
12.29years beginning during the same calendar year, the allowance must be determined using
12.30the rules under sections 290.0131, subdivision 9, and 290.0133, subdivision 11, for the
12.31designated taxable year; and the rules under sections 290.0132, subdivision 9, and 290.0134,
12.32subdivision 13, for the five tax years immediately following the designated taxable year.
12.33    Subd. 7. Forms preparation. If the provisions of subdivisions 3 and 4 apply to a taxable
12.34year, the commissioner shall prepare forms and instructions that reflect the qualifying federal
13.1conformity items and bonus depreciation rules under subdivision 6, if applicable, for the
13.2taxable year consistent with the provisions of this section.
13.3    Subd. 8. Draft legislation. For a taxable year for which the commissioner publishes a
13.4list of qualifying federal conformity items under this section, the commissioner shall provide
13.5the chairs and ranking minority members of the legislative committees with jurisdiction
13.6over taxes with draft legislation that would conform Minnesota Statutes to the qualifying
13.7federal conformity items and any other conformity items that the commissioner recommends
13.8be adopted, including application to taxable years beyond those to which this section applies.
13.9The draft legislation is intended to make the statutes consistent with application of the
13.10designated qualifying federal conformity items under this section for the convenience of
13.11members of the public. Failure to pass the draft legislation does not affect computation of
13.12Minnesota tax liability for the affected taxable years under this section.
13.13    Subd. 9. Administrative Procedure Act. Designation of qualifying federal conformity
13.14items or any other action of the commissioner under this section is not a rule and is not
13.15subject to the Administrative Procedure Act under chapter 14, including section 14.386.
13.16EFFECTIVE DATE.This section is effective the day following final enactment.

13.17    Sec. 13. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to
13.18read:
13.19    Subd. 2g. First-time home buyer savings account. In addition to the tax computed
13.20under subdivision 2c, an additional amount of tax applies equal to the additional tax computed
13.21for the taxable year for the account holder of a first-time home buyer account under section
13.22462D.06, subdivision 3.
13.23EFFECTIVE DATE.This section is effective for taxable years beginning after December
13.2431, 2016.

13.25    Sec. 14. Minnesota Statutes 2016, section 290.06, subdivision 22, is amended to read:
13.26    Subd. 22. Credit for taxes paid to another state. (a) A taxpayer who is liable for taxes
13.27based on net income to another state, as provided in paragraphs (b) through (f), upon income
13.28allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to another state
13.29if the tax is actually paid in the taxable year or a subsequent taxable year. A taxpayer who
13.30is a resident of this state pursuant to section 290.01, subdivision 7, paragraph (b), and who
13.31is subject to income tax as a resident in the state of the individual's domicile is not allowed
13.32this credit unless the state of domicile does not allow a similar credit.
14.1(b) For an individual, estate, or trust, the credit is determined by multiplying the tax
14.2payable under this chapter by the ratio derived by dividing the income subject to tax in the
14.3other state that is also subject to tax in Minnesota while a resident of Minnesota by the
14.4taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue
14.5Code, modified by the addition required by section 290.0131, subdivision 2, and the
14.6subtraction allowed by section 290.0132, subdivision 2, to the extent the income is allocated
14.7or assigned to Minnesota under sections 290.081 and 290.17.
14.8(c) If the taxpayer is an athletic team that apportions all of its income under section
14.9290.17, subdivision 5 , the credit is determined by multiplying the tax payable under this
14.10chapter by the ratio derived from dividing the total net income subject to tax in the other
14.11state by the taxpayer's Minnesota taxable income.
14.12(d)(1) The credit determined under paragraph (b) or (c) shall not exceed the amount of
14.13tax so paid to the other state on the gross income earned within the other state subject to
14.14tax under this chapter, nor shall; and
14.15(2) the allowance of the credit does not reduce the taxes paid under this chapter to an
14.16amount less than what would be assessed if such income amount was the gross income
14.17earned within the other state were excluded from taxable net income.
14.18(e) In the case of the tax assessed on a lump-sum distribution under section 290.032, the
14.19credit allowed under paragraph (a) is the tax assessed by the other state on the lump-sum
14.20distribution that is also subject to tax under section 290.032, and shall not exceed the tax
14.21assessed under section 290.032. To the extent the total lump-sum distribution defined in
14.22section 290.032, subdivision 1, includes lump-sum distributions received in prior years or
14.23is all or in part an annuity contract, the reduction to the tax on the lump-sum distribution
14.24allowed under section 290.032, subdivision 2, includes tax paid to another state that is
14.25properly apportioned to that distribution.
14.26(f) If a Minnesota resident reported an item of income to Minnesota and is assessed tax
14.27in such other state on that same income after the Minnesota statute of limitations has expired,
14.28the taxpayer shall receive a credit for that year under paragraph (a), notwithstanding any
14.29statute of limitations to the contrary. The claim for the credit must be submitted within one
14.30year from the date the taxes were paid to the other state. The taxpayer must submit sufficient
14.31proof to show entitlement to a credit.
14.32(g) For the purposes of this subdivision, a resident shareholder of a corporation treated
14.33as an "S" corporation under section 290.9725, must be considered to have paid a tax imposed
14.34on the shareholder in an amount equal to the shareholder's pro rata share of any net income
15.1tax paid by the S corporation to another state. For the purposes of the preceding sentence,
15.2the term "net income tax" means any tax imposed on or measured by a corporation's net
15.3income.
15.4(h) For the purposes of this subdivision, a resident partner of an entity taxed as a
15.5partnership under the Internal Revenue Code must be considered to have paid a tax imposed
15.6on the partner in an amount equal to the partner's pro rata share of any net income tax paid
15.7by the partnership to another state. For purposes of the preceding sentence, the term "net
15.8income" tax means any tax imposed on or measured by a partnership's net income.
15.9(i) For the purposes of this subdivision, "another state":
15.10(1) includes:
15.11(i) the District of Columbia; and
15.12(ii) a province or territory of Canada; but
15.13(2) excludes Puerto Rico and the several territories organized by Congress.
15.14(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a state
15.15by state basis.
15.16(k) For a tax imposed by a province or territory of Canada, the tax for purposes of this
15.17subdivision is the excess of the tax over the amount of the foreign tax credit allowed under
15.18section 27 of the Internal Revenue Code. In determining the amount of the foreign tax credit
15.19allowed, the net income taxes imposed by Canada on the income are deducted first. Any
15.20remaining amount of the allowable foreign tax credit reduces the provincial or territorial
15.21tax that qualifies for the credit under this subdivision.
15.22(l) If the amount of the credit which a qualifying individual is eligible to receive under
15.23this section for tax paid to a qualifying state, disregarding the limitation in paragraph (d),
15.24clause (2), exceeds the tax due under this chapter, the commissioner shall refund the excess
15.25to the individual. An amount sufficient to pay the refunds required by this section is
15.26appropriated to the commissioner from the general fund.
15.27For purposes of this paragraph, "qualifying individual" means a Minnesota resident under
15.28section 290.01, subdivision 7, paragraph (a), who received compensation during the taxable
15.29year for the performance of personal or professional services within a qualifying state, and
15.30"qualifying state" means a state with which an agreement under section 290.081 is not in
15.31effect for the taxable year but was in effect for a taxable year beginning before January 1,
15.322010.
16.1EFFECTIVE DATE.This section is effective for taxable years beginning after December
16.231, 2016.

16.3    Sec. 15. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to
16.4read:
16.5    Subd. 37. Beginning farmer incentive credit. (a) A beginning farmer incentive credit
16.6is allowed against the tax due under this chapter for the sale or rental of agricultural assets
16.7to a beginning farmer according to section 41B.0391, subdivision 2.
16.8(b) The credit may be claimed only after approval and certification by the Rural Finance
16.9Authority according to section 41B.0391.
16.10(c) The credit is limited to the liability for tax, as computed under this chapter, for the
16.11taxable year. If the amount of the credit determined under this subdivision for any taxable
16.12year exceeds this limitation, the excess is a beginning farmer incentive credit carryover to
16.13each of the 15 succeeding taxable years. The entire amount of the excess unused credit for
16.14the taxable year is carried first to the earliest of the taxable years to which the credit may
16.15be carried and then to each successive year to which the credit may be carried. The amount
16.16of the unused credit which may be added under this paragraph must not exceed the taxpayer's
16.17liability for tax, less the beginning farmer incentive credit for the taxable year.
16.18(d) Credits allowed to a partnership, a limited liability company taxed as a partnership,
16.19an S corporation, or multiple owners of property are passed through to the partners, members,
16.20shareholders, or owners, respectively, pro rata to each based on the partner's, member's,
16.21shareholder's, or owner's share of the entity's assets or as specially allocated in the
16.22organizational documents or any other executed agreement, as of the last day of the taxable
16.23year.
16.24(e) For a nonresident or part-year resident, the credit under this section must be allocated
16.25using the percentage calculated in section 290.06, subdivision 2c, paragraph (e).
16.26(f) Notwithstanding the approval and certification by the Rural Finance Authority under
16.27section 41B.0391, the commissioner may utilize any audit and examination powers under
16.28chapter 270C or 289A to the extent necessary to verify that the taxpayer is eligible for the
16.29credit and to assess for the amount of any improperly claimed credit.
16.30EFFECTIVE DATE.This section is effective for taxable years beginning after December
16.3131, 2016.

17.1    Sec. 16. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to
17.2read:
17.3    Subd. 38. Beginning farmer management credit. (a) A taxpayer who is a beginning
17.4farmer may take a credit against the tax due under this chapter for participation in a financial
17.5management program according to section 41B.0391, subdivision 3.
17.6(b) The credit may be claimed only after approval and certification by the Rural Finance
17.7Authority according to section 41B.0391.
17.8(c) The credit is limited to the liability for tax, as computed under this chapter, for the
17.9taxable year. If the amount of the credit determined under this subdivision for any taxable
17.10year exceeds this limitation, the excess is a beginning farmer management credit carryover
17.11to each of the three succeeding taxable years. The entire amount of the excess unused credit
17.12for the taxable year is carried first to the earliest of the taxable years to which the credit
17.13may be carried and then to each successive year to which the credit may be carried. The
17.14amount of the unused credit which may be added under this paragraph must not exceed the
17.15taxpayer's liability for tax, less the beginning farmer management credit for the taxable
17.16year.
17.17(d) For a part-year resident, the credit under this section must be allocated using the
17.18percentage calculated in section 290.06, subdivision 2c, paragraph (e).
17.19(e) Notwithstanding the approval and certification by the Rural Finance Authority under
17.20section 41B.0391, the commissioner may utilize any audit and examination powers under
17.21chapter 270C or 289A to the extent necessary to verify that the taxpayer is eligible for the
17.22credit and to assess for the amount of any improperly claimed credit.
17.23EFFECTIVE DATE.This section is effective for taxable years beginning after December
17.2431, 2016.

17.25    Sec. 17. Minnesota Statutes 2016, section 290.067, subdivision 1, is amended to read:
17.26    Subdivision 1. Amount of credit. (a) A taxpayer may take as a credit against the tax
17.27due from the taxpayer and a spouse, if any, under this chapter an amount equal to the
17.28dependent care credit for which the taxpayer is eligible pursuant to the provisions of section
17.2921 of the Internal Revenue Code subject to the limitations provided in subdivision 2 except
17.30that in determining whether the child qualified as a dependent, income received as a
17.31Minnesota family investment program grant or allowance to or on behalf of the child must
17.32not be taken into account in determining whether the child received more than half of the
18.1child's support from the taxpayer, and the provisions of section 32(b)(1)(D) of the Internal
18.2Revenue Code do not apply.
18.3(b) If a child who has not attained the age of six years at the close of the taxable year is
18.4cared for at a licensed family day care home operated by the child's parent, the taxpayer is
18.5deemed to have paid employment-related expenses. If the child is 16 months old or younger
18.6at the close of the taxable year, the amount of expenses deemed to have been paid equals
18.7the maximum limit for one qualified individual under section 21(c) and (d) of the Internal
18.8Revenue Code. If the child is older than 16 months of age but has not attained the age of
18.9six years at the close of the taxable year, the amount of expenses deemed to have been paid
18.10equals the amount the licensee would charge for the care of a child of the same age for the
18.11same number of hours of care.
18.12(c) If a married couple:
18.13(1) has a child who has not attained the age of one year at the close of the taxable year;
18.14(2) files a joint tax return for the taxable year; and
18.15(3) does not participate in a dependent care assistance program as defined in section 129
18.16of the Internal Revenue Code, in lieu of the actual employment related expenses paid for
18.17that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of (i)
18.18the combined earned income of the couple or (ii) the amount of the maximum limit for one
18.19qualified individual under section 21(c) and (d) of the Internal Revenue Code will be deemed
18.20to be the employment related expense paid for that child. The earned income limitation of
18.21section 21(d) of the Internal Revenue Code shall not apply to this deemed amount. These
18.22deemed amounts apply regardless of whether any employment-related expenses have been
18.23paid.
18.24(d) If the taxpayer is not required and does not file a federal individual income tax return
18.25for the tax year, no credit is allowed for any amount paid to any person unless:
18.26(1) the name, address, and taxpayer identification number of the person are included on
18.27the return claiming the credit; or
18.28(2) if the person is an organization described in section 501(c)(3) of the Internal Revenue
18.29Code and exempt from tax under section 501(a) of the Internal Revenue Code, the name
18.30and address of the person are included on the return claiming the credit.
18.31In the case of a failure to provide the information required under the preceding sentence,
18.32the preceding sentence does not apply if it is shown that the taxpayer exercised due diligence
18.33in attempting to provide the information required.
19.1(e) In the case of a nonresident, part-year resident, or a person who has earned income
19.2not subject to tax under this chapter including earned income excluded pursuant to section
19.3290.0132, subdivision 10 , the credit determined under section 21 of the Internal Revenue
19.4Code must be allocated based on the ratio by which the earned income of the claimant and
19.5the claimant's spouse from Minnesota sources bears to the total earned income of the claimant
19.6and the claimant's spouse.
19.7(f) For residents of Minnesota, the subtractions for military pay under section 290.0132,
19.8subdivisions 11 and 12, are not considered "earned income not subject to tax under this
19.9chapter."
19.10(g) For residents of Minnesota, the exclusion of combat pay under section 112 of the
19.11Internal Revenue Code is not considered "earned income not subject to tax under this
19.12chapter."
19.13(h) For taxpayers with federal adjusted gross income in excess of $50,000, the credit is
19.14equal to the lesser of the credit otherwise calculated under this subdivision, or the amount
19.15equal to $600 minus five percent of federal adjusted gross income in excess of $50,000 for
19.16taxpayers with one qualified individual, or $1,200 minus five percent of federal adjusted
19.17gross income in excess of $50,000 for taxpayers with two or more qualified individuals,
19.18but in no case is the credit less than zero.
19.19EFFECTIVE DATE.This section is effective for taxable years beginning after December
19.2031, 2016.

19.21    Sec. 18. Minnesota Statutes 2016, section 290.067, subdivision 2b, is amended to read:
19.22    Subd. 2b. Inflation adjustment. The commissioner shall adjust the dollar amount of
19.23the income threshold at which the maximum credit begins to be reduced under subdivision
19.242 1 by the percentage determined pursuant to the provisions of section 1(f) of the Internal
19.25Revenue Code, except that in section 1(f)(3)(B) the word "1999" "2016" shall be substituted
19.26for the word "1992." For 2001 2018, the commissioner shall then determine the percent
19.27change from the 12 months ending on August 31, 1999 2016, to the 12 months ending on
19.28August 31, 2000 2017, and in each subsequent year, from the 12 months ending on August
19.2931, 1999 2016, to the 12 months ending on August 31 of the year preceding the taxable
19.30year. The determination of the commissioner pursuant to this subdivision must not be
19.31considered a "rule" and is not subject to the Administrative Procedure Act contained in
19.32chapter 14. The threshold amount as adjusted must be rounded to the nearest $10 amount.
19.33If the amount ends in $5, the amount is rounded up to the nearest $10 amount.
20.1EFFECTIVE DATE.This section is effective for taxable years beginning after December
20.231, 2016.

20.3    Sec. 19. Minnesota Statutes 2016, section 290.0671, subdivision 1, is amended to read:
20.4    Subdivision 1. Credit allowed. (a) An individual who is a resident of Minnesota is
20.5allowed a credit against the tax imposed by this chapter equal to a percentage of earned
20.6income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the
20.7Internal Revenue Code., except that:
20.8(1) the earned income and adjusted gross income limitations of section 32 of the Internal
20.9Revenue Code do not apply; and
20.10(2) a taxpayer with no qualifying children who has attained the age of 21 but not attained
20.11the age of 65 before the close of the taxable year and is otherwise eligible for a credit under
20.12section 32 of the Internal Revenue Code may also receive a credit.
20.13(b) For individuals with no qualifying children, the credit equals 2.10 three percent of
20.14the first $6,180 $6,550 of earned income. The credit is reduced by 2.01 three percent of
20.15earned income or adjusted gross income, whichever is greater, in excess of $8,130 $12,100,
20.16but in no case is the credit less than zero.
20.17(c) For individuals with one qualifying child, the credit equals 9.35 12.71 percent of the
20.18first $11,120 $8,420 of earned income. The credit is reduced by 6.02 5.2 percent of earned
20.19income or adjusted gross income, whichever is greater, in excess of $21,190 $21,790, but
20.20in no case is the credit less than zero.
20.21(d) For individuals with two or more qualifying children, the credit equals 11 14.94
20.22percent of the first $18,240 $13,810 of earned income. The credit is reduced by 10.82 9.2
20.23percent of earned income or adjusted gross income, whichever is greater, in excess of
20.24$25,130 $25,850, but in no case is the credit less than zero.
20.25(e) For a part-year resident, the credit must be allocated based on the percentage calculated
20.26under section 290.06, subdivision 2c, paragraph (e).
20.27(f) For a person who was a resident for the entire tax year and has earned income not
20.28subject to tax under this chapter, including income excluded under section 290.0132,
20.29subdivision 10 , the credit must be allocated based on the ratio of federal adjusted gross
20.30income reduced by the earned income not subject to tax under this chapter over federal
20.31adjusted gross income. For purposes of this paragraph, the subtractions for military pay
20.32under section 290.0132, subdivisions 11 and 12, are not considered "earned income not
20.33subject to tax under this chapter."
21.1For the purposes of this paragraph, the exclusion of combat pay under section 112 of
21.2the Internal Revenue Code is not considered "earned income not subject to tax under this
21.3chapter."
21.4(g) For tax years beginning after December 31, 2007, and before December 31, 2010,
21.5and for tax years beginning after December 31, 2017, the $8,130 $12,100 in paragraph (b),
21.6the $21,190 $21,790 in paragraph (c), and the $25,130 $25,850 in paragraph (d), after being
21.7adjusted for inflation under subdivision 7, are each increased by $3,000 for married taxpayers
21.8filing joint returns. For tax years beginning after December 31, 2008 2017, the commissioner
21.9shall annually adjust the $3,000 by the percentage determined pursuant to the provisions of
21.10section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2007"
21.11shall be substituted for the word "1992." For 2009 2018, the commissioner shall then
21.12determine the percent change from the 12 months ending on August 31, 2007, to the 12
21.13months ending on August 31, 2008 2017, and in each subsequent year, from the 12 months
21.14ending on August 31, 2007, to the 12 months ending on August 31 of the year preceding
21.15the taxable year. The earned income thresholds as adjusted for inflation must be rounded
21.16to the nearest $10. If the amount ends in $5, the amount is rounded up to the nearest $10.
21.17The determination of the commissioner under this subdivision is not a rule under the
21.18Administrative Procedure Act.
21.19(h)(1) For tax years beginning after December 31, 2012, and before January 1, 2014,
21.20the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph (d),
21.21after being adjusted for inflation under subdivision 7, are increased by $5,340 for married
21.22taxpayers filing joint returns; and (2) For tax years beginning after December 31, 2013
21.232016, and before January 1, 2018, the $8,130 $12,100 in paragraph (b), the $21,190 $21,790
21.24in paragraph (c), and the $25,130 $25,850 in paragraph (d), after being adjusted for inflation
21.25under subdivision 7, are each increased by $5,000 for married taxpayers filing joint returns.
21.26For tax years beginning after December 31, 2010, and before January 1, 2012, and for tax
21.27years beginning after December 31, 2013 2016, and before January 1, 2018, the commissioner
21.28shall annually adjust the $5,000 by the percentage determined pursuant to the provisions of
21.29section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2008"
21.30shall be substituted for the word "1992." For 2011 2017, the commissioner shall then
21.31determine the percent change from the 12 months ending on August 31, 2008, to the 12
21.32months ending on August 31, 2010 2016, and in each subsequent year, from the 12 months
21.33ending on August 31, 2008, to the 12 months ending on August 31 of the year preceding
21.34the taxable year. The earned income thresholds as adjusted for inflation must be rounded
21.35to the nearest $10. If the amount ends in $5, the amount is rounded up to the nearest $10.
22.1The determination of the commissioner under this subdivision is not a rule under the
22.2Administrative Procedure Act.
22.3(i) The commissioner shall construct tables showing the amount of the credit at various
22.4income levels and make them available to taxpayers. The tables shall follow the schedule
22.5contained in this subdivision, except that the commissioner may graduate the transition
22.6between income brackets.
22.7EFFECTIVE DATE.This section is effective for taxable years beginning after December
22.831, 2016.

22.9    Sec. 20. Minnesota Statutes 2016, section 290.0671, subdivision 7, is amended to read:
22.10    Subd. 7. Inflation adjustment. The earned income amounts used to calculate the credit
22.11and the income thresholds at which the maximum credit begins to be reduced in subdivision
22.121 must be adjusted for inflation. The commissioner shall adjust by the percentage determined
22.13pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in section
22.141(f)(3)(B) the word "2013" "2016" shall be substituted for the word "1992." For 2015 2018,
22.15the commissioner shall then determine the percent change from the 12 months ending on
22.16August 31, 2013 2016, to the 12 months ending on August 31, 2014 2017, and in each
22.17subsequent year, from the 12 months ending on August 31, 2013 2016, to the 12 months
22.18ending on August 31 of the year preceding the taxable year. The earned income thresholds
22.19as adjusted for inflation must be rounded to the nearest $10 amount. If the amount ends in
22.20$5, the amount is rounded up to the nearest $10 amount. The determination of the
22.21commissioner under this subdivision is not a rule under the Administrative Procedure Act.
22.22EFFECTIVE DATE.This section is effective for taxable years beginning after December
22.2331, 2017.

22.24    Sec. 21. Minnesota Statutes 2016, section 290.0674, subdivision 1, is amended to read:
22.25    Subdivision 1. Credit allowed. An individual is allowed a credit against the tax imposed
22.26by this chapter in an amount equal to 75 percent of the amount paid for education-related
22.27expenses for a qualifying child in a prekindergarten educational program or in kindergarten
22.28through grade 12. For purposes of this section, "education-related expenses" means:
22.29(1) fees or tuition for instruction by an instructor under section 120A.22, subdivision
22.3010 , clause (1), (2), (3), (4), or (5), or a member of the Minnesota Music Teachers Association,
22.31and who is not a lineal ancestor or sibling of the dependent for instruction outside the regular
22.32school day or school year, including tutoring, driver's education offered as part of school
23.1curriculum, regardless of whether it is taken from a public or private entity or summer
23.2camps, in grade or age appropriate curricula that supplement curricula and instruction
23.3available during the regular school year, that assists a dependent to improve knowledge of
23.4core curriculum areas or to expand knowledge and skills under the required academic
23.5standards under section 120B.021, subdivision 1, and the elective standard under section
23.6120B.022, subdivision 1 , clause (2), and that do not include the teaching of religious tenets,
23.7doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship;
23.8(2) expenses for textbooks, including books and other instructional materials and
23.9equipment purchased or leased for use in elementary and secondary schools in teaching
23.10only those subjects legally and commonly taught in public elementary and secondary schools
23.11in this state. "Textbooks" does not include instructional books and materials used in the
23.12teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such
23.13tenets, doctrines, or worship, nor does it include books or materials for extracurricular
23.14activities including sporting events, musical or dramatic events, speech activities, driver's
23.15education, or similar programs;
23.16(3) a maximum expense of $200 per family for personal computer hardware, excluding
23.17single purpose processors, and educational software that assists a dependent to improve
23.18knowledge of core curriculum areas or to expand knowledge and skills under the required
23.19academic standards under section 120B.021, subdivision 1, and the elective standard under
23.20section 120B.022, subdivision 1, clause (2), purchased for use in the taxpayer's home and
23.21not used in a trade or business regardless of whether the computer is required by the
23.22dependent's school; and
23.23(4) the amount paid to others for transportation of a qualifying child attending an
23.24elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa,
23.25or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory
23.26attendance laws, which is not operated for profit, and which adheres to the provisions of
23.27the Civil Rights Act of 1964 and chapter 363A. Amounts under this clause exclude any
23.28expense the taxpayer incurred in using the taxpayer's or the qualifying child's vehicle.; and
23.29(5) fees charged for enrollment in a prekindergarten educational program, to the extent
23.30not used to claim the credit under section 290.067.
23.31For purposes of this section, "qualifying child" has the meaning given in section 32(c)(3)
23.32of the Internal Revenue Code, but is limited to children who have attained at least the age
23.33of three during the taxable year.
23.34For purposes of this section, "prekindergarten educational program" means:
24.1    (1) prekindergarten programs established by a school district under chapter 124D;
24.2    (2) preschools, nursery schools, and early childhood development programs licensed by
24.3the Department of Human Services and accredited by the National Association for the
24.4Education of Young Children or National Early Childhood Program Accreditation;
24.5    (3) Montessori programs affiliated with or accredited by the American Montessori
24.6Society or American Montessori International; and
24.7    (4) child care programs provided by family day care providers holding a current early
24.8childhood development credential approved by the commissioner of human services.
24.9EFFECTIVE DATE.This section is effective for taxable years beginning after December
24.1031, 2016.

24.11    Sec. 22. Minnesota Statutes 2016, section 290.0674, subdivision 2, is amended to read:
24.12    Subd. 2. Limitations. (a) For claimants with income not greater than $33,500 $42,000,
24.13the maximum credit allowed for a family is $1,000 $1,500 multiplied by the number of
24.14qualifying children in a prekindergarten educational program or in kindergarten through
24.15grade 12 in the family. The maximum credit for families with one qualifying child in
24.16kindergarten through grade 12 is reduced by $1 for each $4 $10 of household income over
24.17$33,500, and the maximum credit for families with two or more qualifying children in
24.18kindergarten through grade 12 is reduced by $2 for each $4 of household income over
24.19$33,500 $42,000, but in no case is the credit less than zero.
24.20For purposes of this section "income" has the meaning given in section 290.067,
24.21subdivision 2a . In the case of a married claimant, a credit is not allowed unless a joint income
24.22tax return is filed.
24.23(b) For a nonresident or part-year resident, the credit determined under subdivision 1
24.24and the maximum credit amount in paragraph (a) must be allocated using the percentage
24.25calculated in section 290.06, subdivision 2c, paragraph (e).
24.26EFFECTIVE DATE.This section is effective for taxable years beginning after December
24.2731, 2016.

24.28    Sec. 23. Minnesota Statutes 2016, section 290.0674, is amended by adding a subdivision
24.29to read:
24.30    Subd. 6. Inflation adjustment. The income threshold at which the maximum credit
24.31begins to be reduced in subdivision 2 must be adjusted for inflation. The commissioner shall
25.1adjust the income threshold by the percentage determined pursuant to the provisions of
25.2section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2016"
25.3shall be substituted for the word "1992." For 2018, the commissioner shall then determine
25.4the percent change from the 12 months ending on August 31, 2016, to the 12 months ending
25.5on August 31, 2017, and in each subsequent year, from the 12 months ending August 31,
25.62016, to the 12 months ending on August 31 of the year preceding the taxable year. The
25.7income threshold as adjusted for inflation must be rounded to the nearest $10 amount. If
25.8the amount ends in $5, the amount is rounded up to the nearest $10 amount. The
25.9determination of the commissioner under this subdivision is not a rule under the
25.10Administrative Procedure Act.
25.11EFFECTIVE DATE.This section is effective for taxable years beginning after December
25.1231, 2016.

25.13    Sec. 24. Minnesota Statutes 2016, section 290.0677, subdivision 1a, is amended to read:
25.14    Subd. 1a. Credit allowed; past military service. (a) A qualified individual is allowed
25.15a credit against the tax imposed under this chapter for past military service. The credit equals
25.16$750 $1,000. The credit allowed under this subdivision is reduced by ten percent of adjusted
25.17gross income in excess of $30,000 $50,000, but in no case is the credit less than zero.
25.18    (b) For a nonresident or a part-year resident, the credit under this subdivision must be
25.19allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph
25.20(e).
25.21EFFECTIVE DATE.This section is effective for taxable years beginning after December
25.2231, 2016.

25.23    Sec. 25. [290.0682] STUDENT LOAN CREDIT.
25.24    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
25.25the meanings given.
25.26    (b) "Adjusted gross income" means federal adjusted gross income as defined in section
25.2762 of the Internal Revenue Code.
25.28    (c) "Earned income" has the meaning given in section 32(c) of the Internal Revenue
25.29Code.
25.30    (d) "Eligible individual" means a resident individual with one or more qualified education
25.31loans related to an undergraduate or graduate degree program at a postsecondary educational
25.32institution.
26.1    (e) "Eligible loan payments" means the amount the eligible individual paid during the
26.2taxable year in principal and interest on qualified education loans.
26.3    (f) "Postsecondary educational institution" means a public or nonprofit postsecondary
26.4institution eligible for state student aid under section 136A.103 or, if the institution is not
26.5located in this state, a public or nonprofit postsecondary institution participating in the
26.6federal Pell Grant program under title IV of the Higher Education Act of 1965, Public Law
26.789-329, as amended.
26.8    (g) "Qualified education loan" has the meaning given in section 221 of the Internal
26.9Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual.
26.10    Subd. 2. Credit allowed. (a) An eligible individual is allowed a credit against the tax
26.11due under this chapter.
26.12    (b) The credit for an eligible individual equals the least of:
26.13    (1) eligible loan payments minus ten percent of an amount equal to adjusted gross income
26.14in excess of $10,000, but in no case less than zero;
26.15    (2) the earned income for the taxable year of the eligible individual, if any;
26.16    (3) the sum of:
26.17    (i) the interest portion of eligible loan payments made during the taxable year; and
26.18    (ii) ten percent of the original loan amount of all qualified education loans of the eligible
26.19individual; or
26.20    (4) $750.
26.21(c) For a part-year resident, the credit must be allocated based on the percentage calculated
26.22under section 290.06, subdivision 2c, paragraph (e).
26.23(d) In the case of a married couple, each spouse is eligible for the credit in this section.
26.24    Subd. 3. Credit refundable. If the amount of credit that an individual is eligible to
26.25receive under this section exceeds the individual's tax liability under this chapter, the
26.26commissioner shall refund the excess to the individual.
26.27    Subd. 4. Appropriation. An amount sufficient to pay the refunds required by this section
26.28is appropriated to the commissioner from the general fund.
26.29EFFECTIVE DATE.This section is effective for taxable years beginning after December
26.3031, 2016.

27.1    Sec. 26. [290.0683] MINNESOTA HOUSING TAX CREDIT.
27.2    Subdivision 1. Definitions. For purposes of this section:
27.3(1) "entity" means a partnership, limited liability company taxed as a partnership, S
27.4corporation, or property with multiple owners;
27.5(2) "entity member" means a partner, member, shareholder, or owner;
27.6(3) "taxpayer" means a taxpayer as defined in section 290.01, subdivision 6, or a taxpayer
27.7as defined in section 297I.01, subdivision 16; and
27.8(4) terms defined in section 462A.39 have the meanings given in that section.
27.9    Subd. 2. Credit allowed. (a) A taxpayer is allowed a credit against the taxes imposed
27.10under this chapter and chapter 297I. The credit equals the amount allocated to the taxpayer
27.11and indicated on the eligibility statement issued to the taxpayer under section 462A.39,
27.12subdivision 3. The taxpayer may claim the amount allocated in the year in which the credit
27.13is allocated and in each of the five following taxable years.
27.14(b) A taxpayer eligible for the credit must submit to the commissioner a copy of the
27.15eligibility statement issued by the agency or suballocator with respect to the qualified
27.16Minnesota project, a copy of the project owner's tax return that must be filed as required
27.17under chapter 289A, and any other information required by the commissioner.
27.18(c) Credits granted to an entity are passed through to the entity members based on each
27.19entity member's share of the entity's assets or as specially allocated in the organizational
27.20documents as of the last day of the taxable year in which the eligibility statement was issued.
27.21If a Minnesota housing tax credit is allowed to an entity with multiple tiers of ownership,
27.22the credit is passed through to entity members pro rata or as specially allocated in the
27.23organizational documents as of the last day of the taxable year in which the eligibility
27.24statement was issued at each ownership tier.
27.25    Subd. 3. Limitations; carryover. (a) A credit allowed under this section may not exceed
27.26liability for tax under this chapter and chapter 297I.
27.27(b) If the amount of the credit under this section exceeds the limitation under paragraph
27.28(a), the excess is a credit carryover to each of the 11 succeeding taxable years. The entire
27.29amount of the excess unused credit for the taxable year must be carried first to the earliest
27.30of the taxable years to which the credit may be carried and then to each successive year to
27.31which the credit may be carried.
28.1(c) Credits under this subdivision apply against liability after any net operating loss
28.2carryover incorporated in the calculation of federal taxable income.
28.3    Subd. 4. Audit powers. Notwithstanding the eligibility statement issued by the agency
28.4or a suballocator under section 462A.38, the commissioner may utilize any audit and
28.5examination powers under chapter 270C or 289A to the extent necessary to verify that the
28.6taxpayer is eligible for the credit and to assess for the amount of any improperly claimed
28.7credit and that the owner is in compliance with the compliance agreement.
28.8EFFECTIVE DATE.This section is effective for taxable years beginning after December
28.931, 2016.

28.10    Sec. 27. [290.0684] SECTION 529 COLLEGE SAVINGS PLAN CREDIT.
28.11    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
28.12the meanings given to them.
28.13(b) "Federal adjusted gross income" has the meaning given under section 62(a) of the
28.14Internal Revenue Code.
28.15(c) "Qualified higher education expenses" has the meaning given in section 529 of the
28.16Internal Revenue Code.
28.17    Subd. 2. Credit allowed. (a) A credit is allowed to a resident individual against the tax
28.18imposed by this chapter. The credit is not allowed to an individual who is eligible to be
28.19claimed as a dependent, as defined in sections 151 and 152 of the Internal Revenue Code.
28.20(b) The amount of the credit allowed equals 50 percent of the amount contributed in a
28.21taxable year to one or more accounts in plans qualifying under section 529 of the Internal
28.22Revenue Code, reduced by any withdrawals from accounts made during the taxable year.
28.23The maximum credit is $500, subject to the phaseout in paragraphs (c) and (d). In no case
28.24is the credit less than zero.
28.25(c) For individual filers, the maximum credit is reduced by two percent of adjusted gross
28.26income in excess of $75,000.
28.27(d) For married couples filing a joint return, the maximum credit is phased out as follows:
28.28(1) for married couples with adjusted gross income in excess of $75,000, but not more
28.29than $100,000, the maximum credit is reduced by one percent of adjusted gross income in
28.30excess of $75,000;
28.31(2) for married couples with adjusted gross income in excess of $100,000, but not more
28.32than $135,000, the maximum credit is $250; and
29.1(3) for married couples with adjusted gross income in excess of $135,000, the maximum
29.2credit is $250, reduced by one percent of adjusted gross income in excess of $135,000.
29.3(e) The income thresholds in paragraphs (c) and (d) used to calculate the maximum
29.4credit must be adjusted for inflation. The commissioner shall adjust the income thresholds
29.5by the percentage determined under the provisions of section 1(f) of the Internal Revenue
29.6Code, except that in section 1(f)(3)(B) the word "2016" is substituted for the word "1992."
29.7For 2018, the commissioner shall then determine the percent change from the 12 months
29.8ending on August 31, 2016, to the 12 months ending on August 31, 2017, and in each
29.9subsequent year, from the 12 months ending on August 31, 2016, to the 12 months ending
29.10on August 31 of the year preceding the taxable year. The income thresholds as adjusted for
29.11inflation must be rounded to the nearest $10 amount. If the amount ends in $5, the amount
29.12is rounded up to the nearest $10 amount. The determination of the commissioner under this
29.13subdivision is not subject to chapter 14, including section 14.386.
29.14    Subd. 3. Credit refundable. If the amount of credit that an individual is eligible to
29.15receive under this section exceeds the individual's tax liability under this chapter, the
29.16commissioner shall refund the excess to the individual.
29.17    Subd. 4. Allocation. For a part-year resident, the credit must be allocated based on the
29.18percentage calculated under section 290.06, subdivision 2c, paragraph (e).
29.19    Subd. 5. Revocation. If an individual makes a withdrawal of contributions for a purpose
29.20other than to pay for qualified higher education expenses, then:
29.21(1) contributions used to claim the credit are considered to be the first contributions
29.22withdrawn; and
29.23(2) any credit allowed for the contributions is revoked and must be repaid by the
29.24individual in the taxable year in which the withdrawal is made.
29.25    Subd. 6. Appropriation. An amount sufficient to pay the refunds required by this section
29.26is appropriated to the commissioner from the general fund.
29.27EFFECTIVE DATE.This section is effective for taxable years beginning after December
29.2831, 2016.

29.29    Sec. 28. Minnesota Statutes 2016, section 290.0685, subdivision 1, is amended to read:
29.30    Subdivision 1. Credit allowed. (a) An eligible individual is allowed a credit against the
29.31tax imposed by this chapter equal to $2,000 for each birth for which a certificate of birth
29.32resulting in stillbirth has been issued under section 144.2151. The credit under this section
30.1is allowed only in the taxable year in which the stillbirth occurred and if the child would
30.2have been a dependent of the taxpayer as defined in section 152 of the Internal Revenue
30.3Code.
30.4(b) For a nonresident or part-year resident, the credit must be allocated based on the
30.5percentage calculated under section 290.06, subdivision 2c, paragraph (e).
30.6(c) For purposes of this section, "eligible individual" means:
30.7(1) the individual who gave birth to the child and who is also listed as a parent on the
30.8certificate of birth resulting in stillbirth; or
30.9(2) if no individual meets the requirements of clause (1), then the first parent listed on
30.10the certificate of birth resulting in stillbirth.
30.11EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
30.12after December 31, 2015.

30.13    Sec. 29. [290.0686] CREDIT FOR ATTAINING MASTER'S DEGREE IN
30.14TEACHER'S LICENSURE FIELD.
30.15    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
30.16the meanings given them.
30.17(b) "Master's degree program" means a graduate-level program at an accredited university
30.18leading to a master of arts or science degree in a core content area directly related to a
30.19qualified teacher's licensure field. The master's degree program may not include pedagogy
30.20or a pedagogy component. To be eligible under this credit, a licensed elementary school
30.21teacher must pursue and complete a master's degree program in a core content area in which
30.22the teacher provides direct classroom instruction.
30.23(c) "Qualified teacher" means a person who:
30.24(1) holds a teaching license issued by the licensing division in the Department of
30.25Education on behalf of the Minnesota Board of Teaching both when the teacher begins the
30.26master's degree program and when the teacher completes the master's degree program;
30.27(2) began a master's degree program after June 30, 2017; and
30.28(3) completes the master's degree program during the taxable year.
30.29(d) "Core content area" means the academic subject of reading, English or language arts,
30.30mathematics, science, foreign languages, civics and government, economics, arts, history,
30.31or geography.
31.1    Subd. 2. Credit allowed. (a) An individual who is a qualified teacher is allowed a credit
31.2against the tax imposed under this chapter. The credit equals the lesser of $2,500 or the
31.3amount the individual paid for tuition, fees, books, and instructional materials necessary to
31.4completing the master's degree program and for which the individual did not receive
31.5reimbursement from an employer or scholarship.
31.6(b) For a nonresident or a part-year resident, the credit under this subdivision must be
31.7allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph
31.8(e).
31.9(c) A qualified teacher may claim the credit in this section only one time for each master's
31.10degree program completed in a core content area.
31.11    Subd. 3. Credit refundable. (a) If the amount of the credit for which an individual is
31.12eligible exceeds the individual's liability for tax under this chapter, the commissioner shall
31.13refund the excess to the individual.
31.14(b) The amount necessary to pay the refunds required by this section is appropriated to
31.15the commissioner from the general fund.
31.16EFFECTIVE DATE.This section is effective for taxable years beginning after December
31.1731, 2016.

31.18    Sec. 30. [290.0687] EMPLOYEE CREDIT FOR CERTAIN EMPLOYER-PROVIDED
31.19FITNESS FACILITY EXPENSES.
31.20    Subdivision 1. Credit allowed. (a) An individual is allowed a credit against the tax
31.21imposed by this chapter for employer-provided fitness facility expenses. The credit equals
31.22$2.50 for each qualifying month, and the maximum credit is $30. In the case of a married
31.23couple filing a joint return, each spouse is eligible for the credit in this section. The credit
31.24may not exceed the liability for tax under this chapter.
31.25(b) The credit is allowed to an individual whose employer either:
31.26(1) pays a portion of any fees, dues, or membership expenses on behalf of the employee
31.27to a fitness facility; or
31.28(2) reimburses the employee for direct payment of fees, dues, or membership expenses
31.29made by the employee to a fitness facility.
31.30(c) For purposes of this section, "qualifying month" means a month in which an individual
31.31uses the fitness facility for the preservation, maintenance, encouragement, or development
31.32of physical fitness on at least eight days.
32.1(d) For purposes of this section, "fitness facility" means a facility located in the state
32.2that:
32.3(1) provides instruction in a program of physical exercise; offers facilities for the
32.4preservation, maintenance, encouragement, or development of physical fitness; or is the
32.5site of such a program of a state or local government;
32.6(2) is not a private club owned and operated by its members;
32.7(3) does not offer hunting, sailing, horseback riding, or outdoor golf facilities;
32.8(4) does not have an overall function and purpose that makes the fitness facility incidental;
32.9(5) is compliant with antidiscrimination laws under chapter 363A and applicable federal
32.10antidiscrimination laws; and
32.11(6) is located off the employer's premises.
32.12(e) The commissioner shall prescribe the form and manner in which eligibility for the
32.13credit is determined.
32.14    Subd. 2. Limitation. The credit under this section applies only if the employer's payment
32.15of fees, dues, or membership expenses to a fitness facility is available on substantially the
32.16same terms to each member of a group of employees defined under a reasonable classification
32.17by the employer, but no classification may include only highly compensated employees, as
32.18defined under section 414(q) of the Internal Revenue Code, or any other group that includes
32.19only executives, directors, or other managerial employees.
32.20    Subd. 3. Nonresidents and part-year residents. For a nonresident or part-year resident,
32.21the credit must be allocated based on the percentage calculated under section 290.06,
32.22subdivision 2c, paragraph (e).
32.23EFFECTIVE DATE.This section is effective for taxable years beginning after December
32.2431, 2017.

32.25    Sec. 31. [290.0803] SOCIAL SECURITY SUBTRACTION.
32.26(a) An individual is allowed a subtraction from federal taxable income equal to Social
32.27Security benefits to the extent included in federal taxable income. The subtraction under
32.28this section is reduced by the amount of provisional income over a threshold amount, but
32.29in no case is the subtraction less than zero. For married couples filing joint returns and
32.30surviving spouses the threshold is $72,000. For all other filers the threshold is $56,000.
33.1(b) For purposes of this section, "provisional income" means modified adjusted gross
33.2income, as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of the
33.3amount of Social Security benefits received during the taxable year.
33.4(c) Notwithstanding the thresholds provided in paragraph (a), for taxable years beginning
33.5after December 31, 2016, and before January 1, 2019, the threshold for married couples
33.6filing joint returns and surviving spouses is $61,000 and the threshold for all other filers is
33.7$46,500.
33.8EFFECTIVE DATE.This section is effective for taxable years beginning after December
33.931, 2016.

33.10    Sec. 32. [290.0804] SECTION 179 SUBTRACTION.
33.11    Subdivision 1. Current year section 179 allowance. (a) In each of the five taxable
33.12years immediately following the taxable year in which an addition is required under section
33.13290.0131, subdivision 10, or its predecessor provisions, the current year allowance equals
33.14one-fifth of the addition made by the taxpayer under section 290.0131, subdivision 10.
33.15(b) For a shareholder of an S corporation, the current year allowance is reduced by the
33.16positive value of any net operating loss under section 172 of the Internal Revenue Code
33.17generated for the taxable year of the addition and, if the net operating loss exceeds the
33.18addition for the taxable year, the current year allowance is zero.
33.19(c) A taxpayer is allowed a current year section 179 allowance subtraction from federal
33.20taxable income under section 290.0132, subdivision 14, as determined under this subdivision.
33.21    Subd. 2. Carryover section 179 allowance. (a) For purposes of this subdivision, the
33.22current year allowance under subdivision 1 is the last modification allowed under section
33.23290.0132 in determining net income. If the amount allowed under subdivision 1 exceeds
33.24net income computed without regard to the current year allowance, then the excess is a
33.25carryover allowance in each of the ten succeeding taxable years. The entire amount of the
33.26carryover allowance is carried first to the earliest taxable year to which the carryover may
33.27be carried, and then to each succeeding year to which the carryover may be carried.
33.28(b) If applying paragraph (a) to a taxable year beginning after December 31, 2013, and
33.29before January 1, 2017, would result in a carryover allowance in that year, the taxpayer may
33.30use the resulting amount as a carryover allowance starting in a taxable year beginning after
33.31December 31, 2016, and the first year of the ten-year period under paragraph (a) is taxable
33.32year 2017.
34.1(c) A taxpayer is allowed a carryover section 179 allowance subtraction under section
34.2290.0132, subdivision 26, as determined under this subdivision.
34.3EFFECTIVE DATE.This section is effective for taxable years beginning after December
34.431, 2016.

34.5    Sec. 33. Minnesota Statutes 2016, section 290.091, subdivision 2, is amended to read:
34.6    Subd. 2. Definitions. For purposes of the tax imposed by this section, the following
34.7terms have the meanings given:
34.8    (a) "Alternative minimum taxable income" means the sum of the following for the taxable
34.9year:
34.10    (1) the taxpayer's federal alternative minimum taxable income as defined in section
34.1155(b)(2) of the Internal Revenue Code;
34.12    (2) the taxpayer's itemized deductions allowed in computing federal alternative minimum
34.13taxable income, but excluding:
34.14    (i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
34.15    (ii) the medical expense deduction;
34.16    (iii) the casualty, theft, and disaster loss deduction; and
34.17    (iv) the impairment-related work expenses of a disabled person;
34.18    (3) for depletion allowances computed under section 613A(c) of the Internal Revenue
34.19Code, with respect to each property (as defined in section 614 of the Internal Revenue Code),
34.20to the extent not included in federal alternative minimum taxable income, the excess of the
34.21deduction for depletion allowable under section 611 of the Internal Revenue Code for the
34.22taxable year over the adjusted basis of the property at the end of the taxable year (determined
34.23without regard to the depletion deduction for the taxable year);
34.24    (4) to the extent not included in federal alternative minimum taxable income, the amount
34.25of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue
34.26Code determined without regard to subparagraph (E);
34.27    (5) to the extent not included in federal alternative minimum taxable income, the amount
34.28of interest income as provided by section 290.0131, subdivision 2; and
34.29    (6) the amount of addition required by section 290.0131, subdivisions 9 to 11;
34.30    less the sum of the amounts determined under the following:
35.1    (1) interest income as defined in section 290.0132, subdivision 2;
35.2    (2) an overpayment of state income tax as provided by section 290.0132, subdivision 3,
35.3to the extent included in federal alternative minimum taxable income;
35.4    (3) the amount of investment interest paid or accrued within the taxable year on
35.5indebtedness to the extent that the amount does not exceed net investment income, as defined
35.6in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted
35.7in computing federal adjusted gross income;
35.8    (4) amounts subtracted from federal taxable income as provided by section 290.0132,
35.9subdivisions 7 , 9 to 15, 17, and 21, and 24 to 27; and
35.10(5) the amount of the net operating loss allowed under section 290.095, subdivision 11,
35.11paragraph (c).
35.12    In the case of an estate or trust, alternative minimum taxable income must be computed
35.13as provided in section 59(c) of the Internal Revenue Code.
35.14    (b) "Investment interest" means investment interest as defined in section 163(d)(3) of
35.15the Internal Revenue Code.
35.16    (c) "Net minimum tax" means the minimum tax imposed by this section.
35.17    (d) "Regular tax" means the tax that would be imposed under this chapter (without regard
35.18to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed
35.19under this chapter.
35.20    (e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income
35.21after subtracting the exemption amount determined under subdivision 3.
35.22EFFECTIVE DATE.This section is effective for taxable years beginning after December
35.2331, 2016.

35.24    Sec. 34. Minnesota Statutes 2016, section 291.005, subdivision 1, as amended by Laws
35.252017, chapter 1, section 8, is amended to read:
35.26    Subdivision 1. Scope. Unless the context otherwise clearly requires, the following terms
35.27used in this chapter shall have the following meanings:
35.28    (1) "Commissioner" means the commissioner of revenue or any person to whom the
35.29commissioner has delegated functions under this chapter.
35.30    (2) "Federal gross estate" means the gross estate of a decedent as required to be valued
35.31and otherwise determined for federal estate tax purposes under the Internal Revenue Code,
36.1increased by the value of any property in which the decedent had a qualifying income interest
36.2for life and for which an election was made under section 291.03, subdivision 1d, for
36.3Minnesota estate tax purposes, but was not made for federal estate tax purposes.
36.4    (3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986,
36.5as amended through December 16, 2016.
36.6    (4) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
36.7excluding therefrom any property included in the estate which has its situs outside Minnesota,
36.8and (b) including any property omitted from the federal gross estate which is includable in
36.9the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
36.10    (5) "Nonresident decedent" means an individual whose domicile at the time of death
36.11was not in Minnesota.
36.12    (6) "Personal representative" means the executor, administrator or other person appointed
36.13by the court to administer and dispose of the property of the decedent. If there is no executor,
36.14administrator or other person appointed, qualified, and acting within this state, then any
36.15person in actual or constructive possession of any property having a situs in this state which
36.16is included in the federal gross estate of the decedent shall be deemed to be a personal
36.17representative to the extent of the property and the Minnesota estate tax due with respect
36.18to the property.
36.19    (7) "Resident decedent" means an individual whose domicile at the time of death was
36.20in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and (d), apply
36.21to determinations of domicile under this chapter.
36.22    (8) "Situs of property" means, with respect to:
36.23    (i) real property, the state or country in which it is located;
36.24    (ii) tangible personal property, the state or country in which it was normally kept or
36.25located at the time of the decedent's death or for a gift of tangible personal property within
36.26three years of death, the state or country in which it was normally kept or located when the
36.27gift was executed;
36.28    (iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
36.29Code, owned by a nonresident decedent and that is normally kept or located in this state
36.30because it is on loan to an organization, qualifying as exempt from taxation under section
36.31501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is
36.32deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
37.1    (iv) intangible personal property, the state or country in which the decedent was domiciled
37.2at death or for a gift of intangible personal property within three years of death, the state or
37.3country in which the decedent was domiciled when the gift was executed.
37.4    For a nonresident decedent with an ownership interest in a pass-through entity with
37.5assets that include real or tangible personal property, situs of the real or tangible personal
37.6property, including qualified works of art, is determined as if the pass-through entity does
37.7not exist and the real or tangible personal property is personally owned by the decedent. If
37.8the pass-through entity is owned by a person or persons in addition to the decedent, ownership
37.9of the property is attributed to the decedent in proportion to the decedent's capital ownership
37.10share of the pass-through entity.
37.11(9) "Pass-through entity" includes the following:
37.12(i) an entity electing S corporation status under section 1362 of the Internal Revenue
37.13Code;
37.14(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
37.15(iii) a single-member limited liability company or similar entity, regardless of whether
37.16it is taxed as an association or is disregarded for federal income tax purposes under Code
37.17of Federal Regulations, title 26, section 301.7701-3; or
37.18(iv) a trust to the extent the property is includible in the decedent's federal gross estate;
37.19but excludes
37.20    (v) an entity whose ownership interest securities are traded on an exchange regulated
37.21by the Securities and Exchange Commission as a national securities exchange under section
37.226 of the Securities Exchange Act, United States Code, title 15, section 78f.
37.23EFFECTIVE DATE.This section is effective retroactively for estates of decedents
37.24dying after December 31, 2016.

37.25    Sec. 35. Minnesota Statutes 2016, section 291.03, subdivision 11, is amended to read:
37.26    Subd. 11. Recapture tax. (a) If, within three years after the decedent's death and before
37.27the death of the qualified heir, the qualified heir disposes of any interest in the qualified
37.28property, other than by a disposition to a family member, or a family member ceases to
37.29satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional estate
37.30tax is imposed on the property. In the case of a sole proprietor, if the qualified heir replaces
37.31qualified small business property excluded under subdivision 9 with similar property, then
37.32the qualified heir will not be treated as having disposed of an interest in the qualified property.
38.1(b) The amount of the additional tax equals the amount of the exclusion claimed by the
38.2estate under subdivision 8, paragraph (d), multiplied by 16 percent.
38.3(c) The additional tax under this subdivision is due on the day which is six months after
38.4the date of the disposition or cessation in paragraph (a).
38.5(d) The tax under this subdivision does not apply to the following: acquisition of title
38.6or possession of the qualified property by a federal, state, or local government unit, or any
38.7other entity with the power of eminent domain for a public purpose, as defined in section
38.8117.025, subdivision 11, within the three-year holding period.
38.9EFFECTIVE DATE.This section is effective retroactively for estates of decedents
38.10dying after June 30, 2011.

38.11    Sec. 36. Minnesota Statutes 2016, section 297I.20, is amended by adding a subdivision
38.12to read:
38.13    Subd. 4. Minnesota housing tax credit. An insurance company may claim a credit
38.14against the premiums tax imposed under this chapter equal to the amount indicated on the
38.15eligibility statement issued to the company under section 462A.39, subdivision 3. If the
38.16amount of the credit exceeds the liability for tax under this chapter, the excess is a credit
38.17carryover to each of the 11 succeeding taxable years. The entire amount of the excess unused
38.18credit for the taxable year must be carried first to the earliest of the taxable years to which
38.19the credit may be carried and then to each successive year to which the credit may be carried.
38.20This credit does not affect the calculation of police and fire aid under section 69.021.
38.21EFFECTIVE DATE.This section is effective for taxable years beginning after December
38.2231, 2016.

38.23    Sec. 37. [462A.39] MINNESOTA HOUSING TAX CREDIT.
38.24    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
38.25the meanings given unless the context clearly requires otherwise.
38.26(b) "Compliance agreement" means an agreement:
38.27(1) between the owner of a qualified Minnesota project and the agency or suballocator;
38.28(2) that is recorded as an affordable housing restriction on the real property on which
38.29the qualified Minnesota project is located; and
38.30(3) that requires the project to be operated under the requirements of this section for the
38.31compliance period.
39.1The agreement may be subordinated to the lien of a bank or other institutional lender
39.2providing financing to the qualified Minnesota project upon the request of the bank or
39.3lender.
39.4(c) "Compliance period" means the 15-year period beginning with the first taxable year
39.5a credit is allowed under this section.
39.6(d) "Eligibility statement" means a statement issued by the agency or suballocator to the
39.7owner certifying that a project is a qualified Minnesota project and documenting allocation
39.8of the Minnesota housing tax credit. The eligibility statement must specify the annual amount
39.9of the credit allocated to the project for the taxable year and for the five following taxable
39.10years and be in a form prescribed by the commissioner of the agency, in consultation with
39.11the commissioner of revenue.
39.12(e) "Federal low-income housing tax credit" means the federal tax credit provided in
39.13section 42 of the Internal Revenue Code.
39.14(f) "Greater Minnesota" means the area of Minnesota located outside of the metropolitan
39.15area as defined in section 473.121, subdivision 2.
39.16(g) "Internal Revenue Code" has the meaning given in section 290.01, subdivision 31.
39.17(h) "Minnesota credit period" means the six taxable years beginning in the taxable year
39.18in which a credit is allocated under subdivision 2.
39.19(i) "Owner" means the owner of a qualified Minnesota project.
39.20(j) "Qualified Minnesota project" means a low-income housing project that is:
39.21(1) located in Minnesota;
39.22(2) financed with tax-exempt bonds pursuant to section 42(i)(2) of the Internal Revenue
39.23Code;
39.24(3) determined by the agency to be eligible for a federal low-income housing tax credit
39.25without regard to whether or not a federal low-income housing credit is allocated to the
39.26project; and
39.27(4) a project for which the owner has entered into a compliance agreement with the
39.28agency or the suballocator that is enforceable by state and local agencies.
39.29(k) "Suballocator" means an allocating agency, other than the agency, of low-income
39.30federal housing credits and credits under this section as provided in section 462A.222.
39.31(l) "Taxpayer" has the meaning given in section 290.0683, subdivision 1.
40.1(m) Terms not otherwise defined in this subdivision have the meanings given in section
40.242 of the Internal Revenue Code.
40.3    Subd. 2. Minnesota housing tax credit; allocation. (a) The agency and all suballocators
40.4may annually allocate credits during a four-year period beginning January 1, 2017, and
40.5ending December 31, 2020. The amount of credits that may be allocated each year is the
40.6sum of:
40.7(1) $7,000,000; and
40.8(2) any unused tax credits, if any, for the preceding calendar years.
40.9(b) The agency shall allocate credits only to qualified Minnesota projects that the agency
40.10determines:
40.11(1) are eligible for the federal low-income housing tax credit; and
40.12(2) are not financially feasible without the credit.
40.13(c) The agency must allocate 50 percent of the total amount allocated to qualified
40.14Minnesota projects in greater Minnesota.
40.15(d) The agency may not allocate more than one credit to any one qualified Minnesota
40.16project.
40.17(e) The allocation to any one qualified Minnesota project equals one-sixth of the total
40.18federal low-income housing tax credit allowable over the ten-year federal credit period,
40.19without regard to whether the project was allowed a federal low-income housing tax credit.
40.20    Subd. 3. Credit allowed. When the agency or a suballocator allocates a credit amount
40.21to the owner of a project, the agency or suballocator must issue an eligibility statement to
40.22the owner. The owner may claim the amount allocated in each year of the Minnesota credit
40.23period.
40.24    Subd. 4. Credit duration. Except for unused credits carried forward under section
40.25290.0683, the agency may allocate a credit and issue an eligibility statement to a taxpayer
40.26for a Minnesota housing tax credit for a project one time, with the credit allowed in each
40.27year of the Minnesota credit period.
40.28    Subd. 5. Recapture; repayment. (a) If within the Minnesota credit period the agency
40.29or suballocator finds that a qualified project issued an eligibility statement is not meeting
40.30the terms of the compliance agreement, the owner must repay the following percentage of
40.31the credit awarded to the project by the agency or the suballocator:

40.32	Year of the		Percentage of credit required
41.1	compliance period:		to be repaid:
41.2		First	100 percent
41.3		Second	83 percent
41.4		Third	66 percent
41.5		Fourth	49 percent
41.6		Fifth	32 percent
41.7		Sixth and later	16 percent

41.8(b) No holder of the credit other than the owner is responsible for repayment of the
41.9credit.
41.10(c) Amounts repaid under this subdivision are credited to the general fund.
41.11    Subd. 6. Data privacy. Data related to Minnesota housing tax credits are nonpublic
41.12data, or private data on individuals, as defined in section 13.02, subdivision 9 or 12, except
41.13that for each eligibility statement issued under subdivision 3 the location of the qualified
41.14Minnesota housing project is public.
41.15    Subd. 7. Report. (a) By January 15 of each year following a year in which the agency
41.16allocates a credit under this section, the agency shall submit a written report to the chairs
41.17and ranking minority members of the legislative committees with jurisdiction over housing
41.18and taxes, in compliance with sections 3.195 and 3.197, on the success and efficiency of
41.19the Minnesota housing tax credit program.
41.20(b) The report must:
41.21(1) specify the number of qualified Minnesota projects that were allocated tax credits
41.22in the year and the total number of housing units supported in each project;
41.23(2) provide descriptive information about each qualified Minnesota housing project that
41.24was allocated credits, including:
41.25(i) the geographic location of the project; and
41.26(ii) demographic information about residents intended to be served by the project,
41.27including household type, income levels, and rents or set-asides; and
41.28(3) provide housing market and demographic information that demonstrates how the
41.29qualified Minnesota projects that were allocated tax credits address the need for affordable
41.30housing in the communities they serve as well as information about any remaining disparities
41.31in affordability of housing in those communities.
41.32EFFECTIVE DATE.This section is effective the day following final enactment with
41.33credit allocations allowed for taxable years beginning after December 31, 2016.

42.1    Sec. 38. [462D.01] CITATION.
42.2This chapter may be cited as the "First-Time Home Buyer Savings Account Act."
42.3EFFECTIVE DATE.This section is effective the day following final enactment.

42.4    Sec. 39. [462D.02] DEFINITIONS.
42.5    Subdivision 1. Definitions. For purposes of this chapter, the following terms have the
42.6meanings given.
42.7    Subd. 2. Account holder. "Account holder" means an individual who establishes,
42.8individually or jointly with one or more other individuals, a first-time home buyer savings
42.9account.
42.10    Subd. 3. Allowable closing costs. "Allowable closing costs" means a disbursement listed
42.11on a settlement statement for the purchase of a single-family residence in Minnesota by a
42.12qualified beneficiary.
42.13    Subd. 4. Commissioner. "Commissioner" means the commissioner of revenue.
42.14    Subd. 5. Eligible costs. "Eligible costs" means the down payment and allowable closing
42.15costs for the purchase of a single-family residence in Minnesota by a qualified beneficiary.
42.16Eligible costs include paying for the cost of construction of or financing the construction
42.17of a single-family residence.
42.18    Subd. 6. Financial institution. "Financial institution" means a bank, bank and trust,
42.19trust company with banking powers, savings bank, savings association, or credit union,
42.20organized under the laws of this state, any other state, or the United States; an industrial
42.21loan and thrift under chapter 53 or the laws of another state and authorized to accept deposits;
42.22or a money market mutual fund registered under the federal Investment Company Act of
42.231940 and regulated under rule 2a-7, promulgated by the Securities and Exchange Commission
42.24under that act.
42.25    Subd. 7. First-time home buyer. "First-time home buyer" means an individual, and if
42.26married, the individual's spouse, who has no present ownership interest in a principal
42.27residence during the three-year period ending on the earlier of:
42.28(1) the date of the purchase of the single-family residence funded, in part, with proceeds
42.29from the first-time home buyer savings account; or
42.30(2) the close of the taxable year for which a subtraction is claimed under sections
42.31290.0132 and 462D.06.
43.1    Subd. 8. First-time home buyer savings account. "First-time home buyer savings
43.2account" or "account" means an account with a financial institution that an account holder
43.3designates as a first-time home buyer savings account, as provided in section 462D.03, to
43.4pay or reimburse eligible costs for the purchase of a single-family residence by a qualified
43.5beneficiary.
43.6    Subd. 9. Internal Revenue Code. "Internal Revenue Code" has the meaning given in
43.7section 290.01.
43.8    Subd. 10. Principal residence. "Principal residence" has the meaning given in section
43.9121 of the Internal Revenue Code.
43.10    Subd. 11. Qualified beneficiary. "Qualified beneficiary" means a first-time home buyer
43.11who is a Minnesota resident and is designated as the qualified beneficiary of a first-time
43.12home buyer savings account by the account holder.
43.13    Subd. 12. Single-family residence. "Single-family residence" means a single-family
43.14residence located in this state and owned and occupied by or to be occupied by a qualified
43.15beneficiary as the qualified beneficiary's principal residence, which may include a
43.16manufactured home, trailer, mobile home, condominium unit, townhome, or cooperative.
43.17EFFECTIVE DATE.This section is effective the day following final enactment.

43.18    Sec. 40. [462D.03] ESTABLISHMENT OF ACCOUNTS.
43.19    Subdivision 1. Accounts established. An individual may open an account with a financial
43.20institution and designate the account as a first-time home buyer savings account to be used
43.21to pay or reimburse the designated qualified beneficiary's eligible costs.
43.22    Subd. 2. Designation of qualified beneficiary. (a) The account holder must designate
43.23a first-time home buyer as the qualified beneficiary of the account by April 15 of the year
43.24following the taxable year in which the account was established. The account holder may
43.25be the qualified beneficiary. The account holder may change the designated qualified
43.26beneficiary at any time, but no more than one qualified beneficiary may be designated for
43.27an account at any one time. For purposes of the one beneficiary restriction, a married couple
43.28qualifies as one beneficiary. Changing the designated qualified beneficiary of an account
43.29does not affect computation of the ten-year period under section 462D.06, subdivision 2.
43.30(b) The commissioner shall establish a process for account holders to notify the state
43.31that permits recording of the account, the account holder or holders, any transfers under
43.32section 462D.04, subdivision 2, and the designated qualified beneficiary for each account.
44.1This may be done upon filing the account holder's income tax return or in any other way
44.2the commissioner determines to be appropriate.
44.3    Subd. 3. Joint account holders. An individual may jointly own a first-time home buyer
44.4account with another person if the joint account holders file a married joint income tax
44.5return.
44.6    Subd. 4. Multiple accounts. (a) An individual may be the account holder of more than
44.7one first-time home buyer savings account, but must not hold or own multiple accounts that
44.8designate the same qualified beneficiary.
44.9(b) An individual may be designated as the qualified beneficiary on more than one
44.10first-time home buyer savings account.
44.11    Subd. 5. Contributions. Only cash may be contributed to a first-time home buyer savings
44.12account. Individuals other than the account holder may contribute to an account. No limitation
44.13applies to the amount of contributions that may be made to or retained in a first-time home
44.14buyer savings account.
44.15EFFECTIVE DATE.This section is effective the day following final enactment.

44.16    Sec. 41. [462D.04] ACCOUNT HOLDER RESPONSIBILITIES.
44.17    Subdivision 1. Expenses; reporting. The account holder must:
44.18(1) not use funds in a first-time home buyer savings account to pay expenses of
44.19administering the account, except that a service fee may be deducted from the account by
44.20the financial institution in which the account is held; and
44.21(2) submit to the commissioner, in the form and manner required by the commissioner:
44.22(i) detailed information regarding the first-time home buyer savings account, including
44.23a list of transactions for the account during the taxable year and the Form 1099 issued by
44.24the financial institution for the account for the taxable year; and
44.25(ii) upon withdrawal of funds from the account, a detailed account of the eligible costs
44.26for which the account funds were expended and a statement of the amount of funds remaining
44.27in the account, if any.
44.28    Subd. 2. Transfers. An account holder may withdraw funds, in whole or part, from a
44.29first-time home buyer savings account and deposit the funds in another first-time home
44.30buyer savings account held by a different financial institution or the same financial institution.
44.31EFFECTIVE DATE.This section is effective the day following final enactment.

45.1    Sec. 42. [462D.05] FINANCIAL INSTITUTIONS.
45.2(a) A financial institution is not required to take any action to ensure compliance with
45.3this chapter, including to:
45.4(1) designate an account, designate qualified beneficiaries, or modify the financial
45.5institution's account contracts or systems in any way;
45.6(2) track the use of money withdrawn from a first-time home buyer savings account;
45.7(3) allocate funds in a first-time home buyer savings account among joint account holders
45.8or multiple qualified beneficiaries; or
45.9(4) report any information to the commissioner or any other government that is not
45.10otherwise required by law.
45.11(b) A financial institution is not responsible or liable for:
45.12(1) determining or ensuring that an account satisfies the requirements of this chapter or
45.13that its funds are used for eligible costs; or
45.14(2) reporting or remitting taxes or penalties related to the use of a first-time home buyer
45.15savings account.
45.16EFFECTIVE DATE.This section is effective the day following final enactment.

45.17    Sec. 43. [462D.06] SUBTRACTION; ADDITION; ADDITIONAL TAX.
45.18    Subdivision 1. Subtraction. (a) An account holder is allowed a subtraction from federal
45.19taxable income equal to the sum of:
45.20(1) the amount the individual contributed to a first-time home buyer savings account
45.21during the taxable year not to exceed $5,000, or $10,000 for a married couple filing a joint
45.22return; and
45.23(2) interest or dividends earned on the first-time home buyer savings account during the
45.24taxable year.
45.25(b) The subtraction under paragraph (a) is allowed each year in which a contribution is
45.26made for the ten taxable years including and following the taxable year in which the account
45.27was established. The total subtraction for all taxable years and for all first-time home buyer
45.28accounts established by the individual for a qualified beneficiary is limited to $50,000. No
45.29person other than the account holder who deposits funds in a first-time home buyer savings
45.30account is allowed a subtraction under this section.
46.1    Subd. 2. Addition. (a) An account holder must add to federal taxable income the sum
46.2of the following amounts:
46.3(1) any amount withdrawn from a first-time home buyer savings account during the
46.4taxable year and used neither to pay eligible costs nor for a transfer permitted under section
46.5462D.04, subdivision 2; and
46.6(2) any amount remaining in the first-time home buyer savings account at the close of
46.7the tenth taxable year after the taxable year in which the account was established.
46.8(b) For an account that received a transfer under section 462D.04, subdivision 2, the
46.9ten-year period under paragraph (a), clause (2), ends at the close of the earliest taxable year
46.10that applies to either account under that clause.
46.11    Subd. 3. Additional tax. The account holder is liable for an additional tax equal to ten
46.12percent of the addition under subdivision 2 for the taxable year. This amount must be added
46.13to the amount due under section 290.06. The tax under this subdivision does not apply to:
46.14(1) a withdrawal because of the account holder's or designated qualified beneficiary's
46.15death or disability; and
46.16(2) a disbursement of assets of the account under federal bankruptcy law.
46.17EFFECTIVE DATE.This section is effective for taxable years beginning after December
46.1831, 2016.

46.19    Sec. 44. REPEALER.
46.20Minnesota Statutes 2016, section 290.067, subdivision 2, is repealed.
46.21EFFECTIVE DATE. This section is effective for taxable years beginning after
46.22December 31, 2016.


46.25    Section 1. Minnesota Statutes 2016, section 40A.18, subdivision 2, is amended to read:
46.26    Subd. 2. Allowed commercial and industrial operations. (a) Commercial and industrial
46.27operations are not allowed on land within an agricultural preserve except:
46.28(1) small on-farm commercial or industrial operations normally associated with and
46.29important to farming in the agricultural preserve area;
47.1(2) storage use of existing farm buildings that does not disrupt the integrity of the
47.2agricultural preserve; and
47.3(3) small commercial use of existing farm buildings for trades not disruptive to the
47.4integrity of the agricultural preserve such as a carpentry shop, small scale mechanics shop,
47.5and similar activities that a farm operator might conduct.; and
47.6(4) wireless communication installments and related equipment and structure capable
47.7of providing technology potentially beneficial to farming activities.
47.8    (b) For purposes of paragraph (a), clauses (2) and (3), "existing" in clauses (2) and (3)
47.9means existing on August 1, 1989.
47.10EFFECTIVE DATE.This section is effective the day following final enactment.

47.11    Sec. 2. [103C.333] COUNTY LEVY AUTHORITY.
47.12Notwithstanding any other law to the contrary, a county levying a tax under section
47.13103C.331 shall not include any taxes levied under those authorities in the levy certified
47.14under section 275.07, subdivision 1, paragraph (a). A county levying under section 103C.331
47.15shall separately certify that amount, and the auditor shall extend that levy as a special taxing
47.16district levy under sections 275.066 and 275.07, subdivision 1, paragraph (b).
47.17EFFECTIVE DATE.This section is effective for certifications made in 2017 and
47.18thereafter.

47.19    Sec. 3. Minnesota Statutes 2016, section 272.02, subdivision 23, is amended to read:
47.20    Subd. 23. Secondary liquid agricultural chemical containment facilities. Secondary
47.21containment tanks, cache basins, and that portion of the structure needed for the containment
47.22facility used to confine agricultural chemicals as defined in section 18D.01, subdivision 3,
47.23as required by the commissioner of agriculture under chapter 18B or 18C, berms used by
47.24a reseller to contain agricultural chemical spills from primary storage containers and prevent
47.25runoff or leaching of liquid agricultural chemicals as defined in section 18D.01, subdivision
47.263, are exempt. For purposes of this subdivision, "reseller" means a person licensed by the
47.27commissioner of agriculture under section 18B.316 or 18C.415.
47.28EFFECTIVE DATE.This section is effective beginning with taxes payable in 2016
47.29provided that nothing in this section shall cause property that was classified as exempt
47.30property for taxes payable in 2016 to lose its exempt status for taxes payable in that year.

48.1    Sec. 4. Minnesota Statutes 2016, section 272.02, subdivision 86, is amended to read:
48.2    Subd. 86. Apprenticeship training facilities. All or a portion of a building used
48.3exclusively for a state-approved apprenticeship program through the Department of Labor
48.4and Industry is exempt if:
48.5(1) it is owned by a nonprofit organization or a nonprofit trust, and operated by a nonprofit
48.6organization or a nonprofit trust;
48.7(2) the program participants receive no compensation; and
48.8(3) it is located:
48.9(i) in the Minneapolis and St. Paul standard metropolitan statistical area as determined
48.10by the 2000 federal census;
48.11(ii) in a city outside the Minneapolis and St. Paul standard metropolitan statistical area
48.12that has a population of 7,400 or greater according to the most recent federal census; or
48.13(iii) in a township that has a population greater than 2,000 1,400 but less than 3,000
48.14determined by the 2000 federal census and the building was previously used by a school
48.15and was exempt for taxes payable in 2010.
48.16Use of the property for advanced skills training of incumbent workers does not disqualify
48.17the property for the exemption under this subdivision. This exemption includes up to five
48.18acres of the land on which the building is located and associated parking areas on that land,
48.19except that if the building meets the requirements of clause (3), item (iii), then the exemption
48.20includes up to ten acres of land on which the building is located and associated parking
48.21areas on that land. If a parking area associated with the facility is used for the purposes of
48.22the facility and for other purposes, a portion of the parking area shall be exempt in proportion
48.23to the square footage of the facility used for purposes of apprenticeship training.

48.24    Sec. 5. Minnesota Statutes 2016, section 272.02, is amended by adding a subdivision to
48.25read:
48.26    Subd. 100. Electric generation facility; personal property. (a) Notwithstanding
48.27subdivision 9, clause (a), attached machinery and other personal property that is part of an
48.28electric generation facility with more than 35 megawatts and less than 40 megawatts of
48.29installed capacity and that meets the requirements of this subdivision is exempt from taxation
48.30and payments in lieu of taxation. The facility must:
48.31(1) be designed to utilize natural gas as a primary fuel;
49.1(2) be owned and operated by a municipal power agency as defined in section 453.52,
49.2subdivision 8;
49.3(3) be located within 800 feet of an existing natural gas pipeline;
49.4(4) satisfy a resource deficiency identified in an approved integrated resource plan filed
49.5under section 216B.2422;
49.6(5) be located outside the metropolitan area as defined under section 473.121, subdivision
49.72; and
49.8(6) have received, by resolution, the approval of the governing bodies of the city and
49.9county in which it is located for the exemption of personal property provided by this
49.10subdivision.
49.11(b) Construction of the facility must have been commenced after January 1, 2015, and
49.12before January 1, 2017. Property eligible for this exemption does not include electric
49.13transmission lines and interconnections or gas pipelines and interconnections appurtenant
49.14to the property or the facility.
49.15EFFECTIVE DATE.This section is effective the day following final enactment.

49.16    Sec. 6. Minnesota Statutes 2016, section 272.0213, is amended to read:
49.17272.0213 LEASED SEASONAL-RECREATIONAL LAND.
49.18    (a) A county board may elect, by resolution, to Qualified lands, as defined in this section,
49.19are exempt from taxation, including the tax under section 273.19, qualified lands. "Qualified
49.20lands" for purposes of this section means property land that:
49.21    (1) is owned by a county, city, town, or the state; and
49.22    (2) is rented by the entity for noncommercial seasonal-recreational or, noncommercial
49.23seasonal-recreational residential use; and, or class 1c commercial seasonal-recreational
49.24residential use.
49.25    (3) was rented for the purposes specified in clause (2) and was exempt from taxation
49.26for property taxes payable in 2008.
49.27(b) Lands owned by the federal government and rented for noncommercial
49.28seasonal-recreational or, noncommercial seasonal-recreational residential, or class 1c
49.29commercial seasonal-recreational residential use are exempt from taxation, including the
49.30tax under section 273.19.
49.31EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

50.1    Sec. 7. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read:
50.2    Subd. 2. Definitions. (a) For the purposes of this section, the term:
50.3(1) "wind energy conversion system" has the meaning given in section 216C.06,
50.4subdivision 19 , and also includes a substation that is used and owned by one or more wind
50.5energy conversion facilities;
50.6(2) "large scale wind energy conversion system" means a wind energy conversion system
50.7of more than 12 megawatts, as measured by the nameplate capacity of the system or as
50.8combined with other systems as provided in paragraph (b);
50.9(3) "medium scale wind energy conversion system" means a wind energy conversion
50.10system of over two and not more than 12 megawatts, as measured by the nameplate capacity
50.11of the system or as combined with other systems as provided in paragraph (b); and
50.12(4) "small scale wind energy conversion system" means a wind energy conversion system
50.13of two megawatts and under, as measured by the nameplate capacity of the system or as
50.14combined with other systems as provided in paragraph (b).
50.15(b) For systems installed and contracted for after January 1, 2002, the total size of a
50.16wind energy conversion system under this subdivision shall be determined according to this
50.17paragraph. Unless the systems are interconnected with different distribution systems, the
50.18nameplate capacity of one wind energy conversion system shall be combined with the
50.19nameplate capacity of any other wind energy conversion system that is:
50.20(1) located within five miles of the wind energy conversion system;
50.21(2) constructed within the same calendar year as the wind energy conversion system;
50.22and
50.23(3) under common ownership.
50.24In the case of a dispute, the commissioner of commerce shall determine the total size of
50.25the system, and shall draw all reasonable inferences in favor of combining the systems.
50.26(c) In making a determination under paragraph (b), the commissioner of commerce may
50.27determine that two wind energy conversion systems are under common ownership when
50.28the underlying ownership structure contains similar the same persons or entities, even if the
50.29ownership shares differ between the two systems. Wind energy conversion systems are not
50.30under common ownership solely because the same person or entity provided equity financing
50.31for the systems. Wind energy conversion systems that were determined by the commissioner
50.32of commerce to be eligible for a renewable energy production incentive under section
51.1216C.41 are not under common ownership unless a change in the qualifying owner was
51.2made to an owner of another wind energy conversion system subsequent to the determination
51.3by the commissioner of commerce.
51.4EFFECTIVE DATE.This section is effective the day following final enactment.

51.5    Sec. 8. Minnesota Statutes 2016, section 272.162, is amended to read:
51.6272.162 RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS.
51.7    Subdivision 1. Conditions restricting transfer. When a deed or other instrument
51.8conveying a parcel of land is presented to the county auditor for transfer or division under
51.9sections 272.12, 272.16, and 272.161, the auditor shall not transfer or divide the land or its
51.10net tax capacity in the official records and shall not certify the instrument as provided in
51.11section 272.12, if:
51.12(a) The land conveyed is less than a whole parcel of land as charged in the tax lists;
51.13(b) The part conveyed appears within the area of application of municipal or county
51.14subdivision regulations adopted and filed under section 394.35 or section 462.36, subdivision
51.151 ; and
51.16(c) The part conveyed is part of or constitutes a subdivision as defined in section 462.352,
51.17subdivision 12 .
51.18    Subd. 2. Conditions allowing transfer. (a) Notwithstanding the provisions of subdivision
51.191, the county auditor may transfer or divide the land and its net tax capacity and may certify
51.20the instrument if the instrument contains a certification by the clerk of the municipality or
51.21designated county planning official:
51.22(a) (1) that the municipality's or county's subdivision regulations do not apply;
51.23(b) (2) that the subdivision has been approved by the governing body of the municipality
51.24or county; or
51.25(c) (3) that the restrictions on the division of taxes and filing and recording have been
51.26waived by resolution of the governing body of the municipality or county in the particular
51.27case because compliance would create an unnecessary hardship and failure to comply would
51.28not interfere with the purpose of the regulations.
51.29(b) If any of the conditions for certification by the municipality or county as provided
51.30in this subdivision exist and the municipality or county does not certify that they exist within
51.3124 hours after the instrument of conveyance has been presented to the clerk of the
52.1municipality or designated county planning official, the provisions of subdivision 1 do not
52.2apply.
52.3(c) If an unexecuted instrument is presented to the municipality or county and any of
52.4the conditions for certification by the municipality or county as provided in this subdivision
52.5exist, the unexecuted instrument must be certified by the clerk of the municipality or the
52.6designated county planning official.
52.7    Subd. 3. Applicability of restrictions. (a) This section does not apply to the exceptions
52.8set forth in section 272.12.
52.9(b) This section applies only to land within municipalities or counties which choose to
52.10be governed by its provisions. A municipality or county may choose to have this section
52.11apply to the property within its boundaries by filing a certified copy of a resolution of its
52.12governing body making that choice with the auditor and recorder of the county in which it
52.13is located.
52.14EFFECTIVE DATE.This section is effective the day following final enactment.

52.15    Sec. 9. Minnesota Statutes 2016, section 273.124, subdivision 3a, is amended to read:
52.16    Subd. 3a. Manufactured home park cooperative. (a) When a manufactured home park
52.17is owned by a corporation or association organized under chapter 308A or 308B, and each
52.18person who owns a share or shares in the corporation or association is entitled to occupy a
52.19lot within the park, the corporation or association may claim homestead treatment for the
52.20park. Each lot must be designated by legal description or number, and each lot is limited to
52.21not more than one-half acre of land.
52.22    (b) The manufactured home park shall be entitled to homestead treatment if all of the
52.23following criteria are met:
52.24    (1) the occupant or the cooperative corporation or association is paying the ad valorem
52.25property taxes and any special assessments levied against the land and structure either
52.26directly, or indirectly through dues to the corporation or association; and
52.27    (2) the corporation or association organized under chapter 308A or 308B is wholly
52.28owned by persons having a right to occupy a lot owned by the corporation or association.
52.29    (c) A charitable corporation, organized under the laws of Minnesota with no outstanding
52.30stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt status,
52.31qualifies for homestead treatment with respect to a manufactured home park if its members
53.1hold residential participation warrants entitling them to occupy a lot in the manufactured
53.2home park.
53.3    (d) "Homestead treatment" under this subdivision means the classification rate provided
53.4for class 4c property classified under section 273.13, subdivision 25, paragraph (d), clause
53.5(5), item (ii)., and the homestead market value exclusion under section 273.13, subdivision
53.635, does not apply and the property taxes assessed against the park shall not be included in
53.7the determination of taxes payable for rent paid under section 290A.03.
53.8EFFECTIVE DATE.This section is effective beginning with claims for taxes payable
53.9in 2018.

53.10    Sec. 10. Minnesota Statutes 2016, section 273.124, subdivision 14, is amended to read:
53.11    Subd. 14. Agricultural homesteads; special provisions. (a) Real estate of less than ten
53.12acres that is the homestead of its owner must be classified as class 2a under section 273.13,
53.13subdivision 23 , paragraph (a), if:
53.14    (1) the parcel on which the house is located is contiguous on at least two sides to (i)
53.15agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
53.16Service, or (iii) land administered by the Department of Natural Resources on which in lieu
53.17taxes are paid under sections 477A.11 to 477A.14;
53.18    (2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20
53.19acres;
53.20    (3) the noncontiguous land is located not farther than four townships or cities, or a
53.21combination of townships or cities from the homestead; and
53.22    (4) the agricultural use value of the noncontiguous land and farm buildings is equal to
53.23at least 50 percent of the market value of the house, garage, and one acre of land.
53.24    Homesteads initially classified as class 2a under the provisions of this paragraph shall
53.25remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
53.26properties, as long as the homestead remains under the same ownership, the owner owns a
53.27noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
53.28value qualifies under clause (4). Homestead classification under this paragraph is limited
53.29to property that qualified under this paragraph for the 1998 assessment.
53.30    (b)(i) Agricultural property shall be classified as the owner's homestead, to the same
53.31extent as other agricultural homestead property, if all of the following criteria are met:
54.1    (1) the agricultural property consists of at least 40 acres including undivided government
54.2lots and correctional 40's;
54.3    (2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the owner
54.4or of the owner's spouse, is actively farming the agricultural property, either on the person's
54.5own behalf as an individual or on behalf of a partnership operating a family farm, family
54.6farm corporation, joint family farm venture, or limited liability company of which the person
54.7is a partner, shareholder, or member;
54.8    (3) both the owner of the agricultural property and the person who is actively farming
54.9the agricultural property under clause (2), are Minnesota residents;
54.10    (4) neither the owner nor the spouse of the owner claims another agricultural homestead
54.11in Minnesota; and
54.12    (5) neither the owner nor the person actively farming the agricultural property lives
54.13farther than four townships or cities, or a combination of four townships or cities, from the
54.14agricultural property, except that if the owner or the owner's spouse is required to live in
54.15employer-provided housing, the owner or owner's spouse, whichever is actively farming
54.16the agricultural property, may live more than four townships or cities, or combination of
54.17four townships or cities from the agricultural property.
54.18    The relationship under this paragraph may be either by blood or marriage.
54.19    (ii) Agricultural property held by a trustee under a trust is eligible for agricultural
54.20homestead classification under this paragraph if the qualifications in clause (i) are met,
54.21except that "owner" means the grantor of the trust.
54.22    (iii) Property containing the residence of an owner who owns qualified property under
54.23clause (i) shall be classified as part of the owner's agricultural homestead, if that property
54.24is also used for noncommercial storage or drying of agricultural crops.
54.25(iv) (iii) As used in this paragraph, "agricultural property" means class 2a property and
54.26any class 2b property that is contiguous to and under the same ownership as the class 2a
54.27property.
54.28    (c) Noncontiguous land shall be included as part of a homestead under section 273.13,
54.29subdivision 23 , paragraph (a), only if the homestead is classified as class 2a and the detached
54.30land is located in the same township or city, or not farther than four townships or cities or
54.31combination thereof from the homestead. Any taxpayer of these noncontiguous lands must
54.32notify the county assessor that the noncontiguous land is part of the taxpayer's homestead,
55.1and, if the homestead is located in another county, the taxpayer must also notify the assessor
55.2of the other county.
55.3    (d) Agricultural land used for purposes of a homestead and actively farmed by a person
55.4holding a vested remainder interest in it must be classified as a homestead under section
55.5273.13, subdivision 23 , paragraph (a). If agricultural land is classified class 2a, any other
55.6dwellings on the land used for purposes of a homestead by persons holding vested remainder
55.7interests who are actively engaged in farming the property, and up to one acre of the land
55.8surrounding each homestead and reasonably necessary for the use of the dwelling as a home,
55.9must also be assessed class 2a.
55.10    (e) Agricultural land and buildings that were class 2a homestead property under section
55.11273.13, subdivision 23 , paragraph (a), for the 1997 assessment shall remain classified as
55.12agricultural homesteads for subsequent assessments if:
55.13    (1) the property owner abandoned the homestead dwelling located on the agricultural
55.14homestead as a result of the April 1997 floods;
55.15    (2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or
55.16Wilkin;
55.17    (3) the agricultural land and buildings remain under the same ownership for the current
55.18assessment year as existed for the 1997 assessment year and continue to be used for
55.19agricultural purposes;
55.20    (4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles
55.21of one of the parcels of agricultural land that is owned by the taxpayer; and
55.22    (5) the owner notifies the county assessor that the relocation was due to the 1997 floods,
55.23and the owner furnishes the assessor any information deemed necessary by the assessor in
55.24verifying the change in dwelling. Further notifications to the assessor are not required if the
55.25property continues to meet all the requirements in this paragraph and any dwellings on the
55.26agricultural land remain uninhabited.
55.27    (f) Agricultural land and buildings that were class 2a homestead property under section
55.28273.13, subdivision 23 , paragraph (a), for the 1998 assessment shall remain classified
55.29agricultural homesteads for subsequent assessments if:
55.30    (1) the property owner abandoned the homestead dwelling located on the agricultural
55.31homestead as a result of damage caused by a March 29, 1998, tornado;
55.32    (2) the property is located in the county of Blue Earth, Brown, Cottonwood, LeSueur,
55.33Nicollet, Nobles, or Rice;
56.1    (3) the agricultural land and buildings remain under the same ownership for the current
56.2assessment year as existed for the 1998 assessment year;
56.3    (4) the dwelling occupied by the owner is located in this state and is within 50 miles of
56.4one of the parcels of agricultural land that is owned by the taxpayer; and
56.5    (5) the owner notifies the county assessor that the relocation was due to a March 29,
56.61998, tornado, and the owner furnishes the assessor any information deemed necessary by
56.7the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the
56.8owner must notify the assessor by December 1, 1998. Further notifications to the assessor
56.9are not required if the property continues to meet all the requirements in this paragraph and
56.10any dwellings on the agricultural land remain uninhabited.
56.11    (g) Agricultural property of a family farm corporation, joint family farm venture, family
56.12farm limited liability company, or partnership operating a family farm as described under
56.13subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead
56.14property, if all of the following criteria are met:
56.15    (1) the property consists of at least 40 acres including undivided government lots and
56.16correctional 40's;
56.17    (2) a shareholder, member, or partner of that entity is actively farming the agricultural
56.18property;
56.19    (3) that shareholder, member, or partner who is actively farming the agricultural property
56.20is a Minnesota resident;
56.21    (4) neither that shareholder, member, or partner, nor the spouse of that shareholder,
56.22member, or partner claims another agricultural homestead in Minnesota; and
56.23    (5) that shareholder, member, or partner does not live farther than four townships or
56.24cities, or a combination of four townships or cities, from the agricultural property.
56.25    Homestead treatment applies under this paragraph for property leased to a family farm
56.26corporation, joint farm venture, limited liability company, or partnership operating a family
56.27farm if legal title to the property is in the name of an individual who is a member, shareholder,
56.28or partner in the entity.
56.29    (h) To be eligible for the special agricultural homestead under this subdivision, an initial
56.30full application must be submitted to the county assessor where the property is located.
56.31Owners and the persons who are actively farming the property shall be required to complete
56.32only a one-page abbreviated version of the application in each subsequent year provided
56.33that none of the following items have changed since the initial application:
57.1    (1) the day-to-day operation, administration, and financial risks remain the same;
57.2    (2) the owners and the persons actively farming the property continue to live within the
57.3four townships or city criteria and are Minnesota residents;
57.4    (3) the same operator of the agricultural property is listed with the Farm Service Agency;
57.5    (4) a Schedule F or equivalent income tax form was filed for the most recent year;
57.6    (5) the property's acreage is unchanged; and
57.7    (6) none of the property's acres have been enrolled in a federal or state farm program
57.8since the initial application.
57.9    The owners and any persons who are actively farming the property must include the
57.10appropriate Social Security numbers, and sign and date the application. If any of the specified
57.11information has changed since the full application was filed, the owner must notify the
57.12assessor, and must complete a new application to determine if the property continues to
57.13qualify for the special agricultural homestead. The commissioner of revenue shall prepare
57.14a standard reapplication form for use by the assessors.
57.15    (i) Agricultural land and buildings that were class 2a homestead property under section
57.16273.13, subdivision 23 , paragraph (a), for the 2007 assessment shall remain classified
57.17agricultural homesteads for subsequent assessments if:
57.18    (1) the property owner abandoned the homestead dwelling located on the agricultural
57.19homestead as a result of damage caused by the August 2007 floods;
57.20    (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele,
57.21Wabasha, or Winona;
57.22    (3) the agricultural land and buildings remain under the same ownership for the current
57.23assessment year as existed for the 2007 assessment year;
57.24    (4) the dwelling occupied by the owner is located in this state and is within 50 miles of
57.25one of the parcels of agricultural land that is owned by the taxpayer; and
57.26    (5) the owner notifies the county assessor that the relocation was due to the August 2007
57.27floods, and the owner furnishes the assessor any information deemed necessary by the
57.28assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the
57.29owner must notify the assessor by December 1, 2008. Further notifications to the assessor
57.30are not required if the property continues to meet all the requirements in this paragraph and
57.31any dwellings on the agricultural land remain uninhabited.
58.1    (j) Agricultural land and buildings that were class 2a homestead property under section
58.2273.13, subdivision 23 , paragraph (a), for the 2008 assessment shall remain classified as
58.3agricultural homesteads for subsequent assessments if:
58.4    (1) the property owner abandoned the homestead dwelling located on the agricultural
58.5homestead as a result of the March 2009 floods;
58.6    (2) the property is located in the county of Marshall;
58.7    (3) the agricultural land and buildings remain under the same ownership for the current
58.8assessment year as existed for the 2008 assessment year and continue to be used for
58.9agricultural purposes;
58.10    (4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles
58.11of one of the parcels of agricultural land that is owned by the taxpayer; and
58.12    (5) the owner notifies the county assessor that the relocation was due to the 2009 floods,
58.13and the owner furnishes the assessor any information deemed necessary by the assessor in
58.14verifying the change in dwelling. Further notifications to the assessor are not required if the
58.15property continues to meet all the requirements in this paragraph and any dwellings on the
58.16agricultural land remain uninhabited.
58.17EFFECTIVE DATE.This section is effective beginning for property taxes payable in
58.182018.

58.19    Sec. 11. Minnesota Statutes 2016, section 273.124, subdivision 21, is amended to read:
58.20    Subd. 21. Trust property; homestead. Real or personal property, including agricultural
58.21property, held by a trustee under a trust is eligible for classification as homestead property
58.22if the property satisfies the requirements of paragraph (a), (b), (c), or (d), or (e).
58.23    (a) The grantor or surviving spouse of the grantor of the trust occupies and uses the
58.24property as a homestead.
58.25    (b) A relative or surviving relative of the grantor who meets the requirements of
58.26subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1, paragraph
58.27(d), in the case of agricultural property, occupies and uses the property as a homestead.
58.28    (c) A family farm corporation, joint farm venture, limited liability company, or partnership
58.29operating a family farm in which the grantor or the grantor's surviving spouse is a
58.30shareholder, member, or partner rents the property; and, either (1) a shareholder, member,
58.31or partner of the corporation, joint farm venture, limited liability company, or partnership
58.32occupies and uses the property as a homestead; or (2) the property is at least 40 acres,
59.1including undivided government lots and correctional 40's, and a shareholder, member, or
59.2partner of the tenant-entity is actively farming the property on behalf of the corporation,
59.3joint farm venture, limited liability company, or partnership.
59.4    (d) A person who has received homestead classification for property taxes payable in
59.52000 on the basis of an unqualified legal right under the terms of the trust agreement to
59.6occupy the property as that person's homestead and who continues to use the property as a
59.7homestead; or, a person who received the homestead classification for taxes payable in 2005
59.8under paragraph (c) who does not qualify under paragraph (c) for taxes payable in 2006 or
59.9thereafter but who continues to qualify under paragraph (c) as it existed for taxes payable
59.10in 2005.
59.11(e) The qualifications under subdivision 14, paragraph (b), clause (i), are met. For
59.12purposes of this paragraph, "owner" means the grantor of the trust or the surviving spouse
59.13of the grantor.
59.14(f) For purposes of this subdivision, the following terms have the meanings given them:
59.15(1) "agricultural property" means the house, garage, other farm buildings and structures,
59.16and agricultural land;
59.17(2) "agricultural land" has the meaning given in section 273.13, subdivision 23, except
59.18that the phrases "owned by same person" or "under the same ownership" as used in that
59.19subdivision mean and include contiguous tax parcels owned by:
59.20(i) an individual and a trust of which the individual, the individual's spouse, or the
59.21individual's deceased spouse is the grantor; or
59.22(ii) different trusts of which the grantors of each trust are any combination of an
59.23individual, the individual's spouse, or the individual's deceased spouse; and
59.24    For purposes of this subdivision, (3) "grantor" is defined as means the person creating
59.25or establishing a testamentary, inter Vivos, revocable or irrevocable trust by written
59.26instrument or through the exercise of a power of appointment.
59.27(g) Noncontiguous land is included as part of a homestead under this subdivision, only
59.28if the homestead is classified as class 2a, as defined in section 273.13, subdivision 23, and
59.29the detached land is located in the same township or city, or not farther than four townships
59.30or cities or combination thereof from the homestead. Any taxpayer of these noncontiguous
59.31lands must notify the county assessor that the noncontiguous land is part of the taxpayer's
59.32homestead, and, if the homestead is located in another county, the taxpayer must also notify
59.33the assessor of the other county.
60.1EFFECTIVE DATE.This section is effective beginning for property taxes payable in
60.22018.

60.3    Sec. 12. Minnesota Statutes 2016, section 273.125, subdivision 8, is amended to read:
60.4    Subd. 8. Manufactured homes; sectional structures. (a) In this section, "manufactured
60.5home" means a structure transportable in one or more sections, which is built on a permanent
60.6chassis, and designed to be used as a dwelling with or without a permanent foundation when
60.7connected to the required utilities, and contains the plumbing, heating, air conditioning, and
60.8electrical systems in it. Manufactured home includes any accessory structure that is an
60.9addition or supplement to the manufactured home and, when installed, becomes a part of
60.10the manufactured home.
60.11    (b) Except as provided in paragraph (c), a manufactured home that meets each of the
60.12following criteria must be valued and assessed as an improvement to real property, the
60.13appropriate real property classification applies, and the valuation is subject to review and
60.14the taxes payable in the manner provided for real property:
60.15    (1) the owner of the unit holds title to the land on which it is situated;
60.16    (2) the unit is affixed to the land by a permanent foundation or is installed at its location
60.17in accordance with the Manufactured Home Building Code in sections 327.31 to 327.34,
60.18and rules adopted under those sections, or is affixed to the land like other real property in
60.19the taxing district; and
60.20    (3) the unit is connected to public utilities, has a well and septic tank system, or is serviced
60.21by water and sewer facilities comparable to other real property in the taxing district.
60.22    (c) A manufactured home that meets each of the following criteria must be assessed at
60.23the rate provided by the appropriate real property classification but must be treated as
60.24personal property, and the valuation is subject to review and the taxes payable in the manner
60.25provided in this section:
60.26    (1) the owner of the unit is a lessee of the land under the terms of a lease, or the unit is
60.27located in a manufactured home park but is not the homestead of the park owner;
60.28    (2) the unit is affixed to the land by a permanent foundation or is installed at its location
60.29in accordance with the Manufactured Home Building Code contained in sections 327.31 to
60.30327.34 , and the rules adopted under those sections, or is affixed to the land like other real
60.31property in the taxing district; and
61.1    (3) the unit is connected to public utilities, has a well and septic tank system, or is serviced
61.2by water and sewer facilities comparable to other real property in the taxing district.
61.3    (d) Sectional structures must be valued and assessed as an improvement to real property
61.4if the owner of the structure holds title to the land on which it is located or is a qualifying
61.5lessee of the land under section 273.19. In this paragraph "sectional structure" means a
61.6building or structural unit that has been in whole or substantial part manufactured or
61.7constructed at an off-site location to be wholly or partially assembled on site alone or with
61.8other units and attached to a permanent foundation.
61.9    (e) The commissioner of revenue may adopt rules under the Administrative Procedure
61.10Act to establish additional criteria for the classification of manufactured homes and sectional
61.11structures under this subdivision.
61.12    (f) A storage shed, deck, or similar improvement constructed on property that is leased
61.13or rented as a site for a manufactured home, sectional structure, park trailer, or travel trailer
61.14is taxable as provided in this section. In the case of property that is leased or rented as a site
61.15for a travel trailer, a storage shed, deck, or similar improvement on the site that is considered
61.16personal property under this paragraph is taxable only if its total estimated market value is
61.17over $1,000 $10,000. The property is taxable as personal property to the lessee of the site
61.18if it is not owned by the owner of the site. The property is taxable as real estate if it is owned
61.19by the owner of the site. As a condition of permitting the owner of the manufactured home,
61.20sectional structure, park trailer, or travel trailer to construct improvements on the leased or
61.21rented site, the owner of the site must obtain the permanent home address of the lessee or
61.22user of the site. The site owner must provide the name and address to the assessor upon
61.23request.

61.24    Sec. 13. Minnesota Statutes 2016, section 273.13, subdivision 22, is amended to read:
61.25    Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and
61.26(c), real estate which is residential and used for homestead purposes is class 1a. In the case
61.27of a duplex or triplex in which one of the units is used for homestead purposes, the entire
61.28property is deemed to be used for homestead purposes. The market value of class 1a property
61.29must be determined based upon the value of the house, garage, and land.
61.30    The first $500,000 of market value of class 1a property has a net classification rate of
61.31one percent of its market value; and the market value of class 1a property that exceeds
61.32$500,000 has a classification rate of 1.25 percent of its market value.
62.1    (b) Class 1b property includes homestead real estate or homestead manufactured homes
62.2used for the purposes of a homestead by:
62.3    (1) any person who is blind as defined in section 256D.35, or the blind person and the
62.4blind person's spouse;
62.5    (2) any person who is permanently and totally disabled or by the disabled person and
62.6the disabled person's spouse; or
62.7    (3) the surviving spouse of a permanently and totally disabled veteran homesteading a
62.8property classified under this paragraph for taxes payable in 2008.
62.9    Property is classified and assessed under clause (2) only if the government agency or
62.10income-providing source certifies, upon the request of the homestead occupant, that the
62.11homestead occupant satisfies the disability requirements of this paragraph, and that the
62.12property is not eligible for the valuation exclusion under subdivision 34.
62.13    Property is classified and assessed under paragraph (b) only if the commissioner of
62.14revenue or the county assessor certifies that the homestead occupant satisfies the requirements
62.15of this paragraph.
62.16    Permanently and totally disabled for the purpose of this subdivision means a condition
62.17which is permanent in nature and totally incapacitates the person from working at an
62.18occupation which brings the person an income. The first $50,000 market value of class 1b
62.19property has a net classification rate of .45 percent of its market value. The remaining market
62.20value of class 1b property has a classification rate using the rates for class 1a or class 2a
62.21property, whichever is appropriate, of similar market value.
62.22    (c) Class 1c property is commercial use real and personal property that abuts public
62.23water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by
62.24the Department of Natural Resources, and is devoted to temporary and seasonal residential
62.25occupancy for recreational purposes but not devoted to commercial purposes for more than
62.26250 days in the year preceding the year of assessment, and that includes a portion used as
62.27a homestead by the owner, which includes a dwelling occupied as a homestead by a
62.28shareholder of a corporation that owns the resort, a partner in a partnership that owns the
62.29resort, or a member of a limited liability company that owns the resort even if, whether the
62.30title to the homestead is held by the corporation, partnership, or limited liability company,
62.31or by a shareholder of a corporation who owns the resort, a partner in a partnership who
62.32owns the resort, or a member of a limited liability company who owns the resort. For
62.33purposes of this paragraph, property is devoted to a commercial purpose on a specific day
62.34if any portion of the property, excluding the portion used exclusively as a homestead, is
63.1used for residential occupancy and a fee is charged for residential occupancy. Class 1c
63.2property must contain three or more rental units. A "rental unit" is defined as a cabin,
63.3condominium, townhouse, sleeping room, or individual camping site equipped with water
63.4and electrical hookups for recreational vehicles. Class 1c property must provide recreational
63.5activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill
63.6or cross-country ski equipment; provide marina services, launch services, or guide services;
63.7or sell bait and fishing tackle. Any unit in which the right to use the property is transferred
63.8to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies
63.9for class 1c even though it may remain available for rent. A camping pad offered for rent
63.10by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of
63.11the rental agreement, as long as the use of the camping pad does not exceed 250 days. If
63.12the same owner owns two separate parcels that are located in the same township, and one
63.13of those properties is classified as a class 1c property and the other would be eligible to be
63.14classified as a class 1c property if it was used as the homestead of the owner, both properties
63.15will be assessed as a single class 1c property; for purposes of this sentence, properties are
63.16deemed to be owned by the same owner if each of them is owned by a limited liability
63.17company, and both limited liability companies have the same membership. The portion of
63.18the property used as a homestead is class 1a property under paragraph (a). The remainder
63.19of the property is classified as follows: the first $600,000 of market value is tier I, the next
63.20$1,700,000 of market value is tier II, and any remaining market value is tier III. The
63.21classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25
63.22percent. Owners of real and personal property devoted to temporary and seasonal residential
63.23occupancy for recreation purposes in which all or a portion of the property was devoted to
63.24commercial purposes for not more than 250 days in the year preceding the year of assessment
63.25desiring classification as class 1c, must submit a declaration to the assessor designating the
63.26cabins or units occupied for 250 days or less in the year preceding the year of assessment
63.27by January 15 of the assessment year. Those cabins or units and a proportionate share of
63.28the land on which they are located must be designated as class 1c as otherwise provided.
63.29The remainder of the cabins or units and a proportionate share of the land on which they
63.30are located must be designated as class 3a commercial. The owner of property desiring
63.31designation as class 1c property must provide guest registers or other records demonstrating
63.32that the units for which class 1c designation is sought were not occupied for more than 250
63.33days in the year preceding the assessment if so requested. The portion of a property operated
63.34as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5)
63.35other nonresidential facility operated on a commercial basis not directly related to temporary
63.36and seasonal residential occupancy for recreation purposes does not qualify for class 1c.
64.1    (d) Class 1d property includes structures that meet all of the following criteria:
64.2    (1) the structure is located on property that is classified as agricultural property under
64.3section 273.13, subdivision 23;
64.4    (2) the structure is occupied exclusively by seasonal farm workers during the time when
64.5they work on that farm, and the occupants are not charged rent for the privilege of occupying
64.6the property, provided that use of the structure for storage of farm equipment and produce
64.7does not disqualify the property from classification under this paragraph;
64.8    (3) the structure meets all applicable health and safety requirements for the appropriate
64.9season; and
64.10    (4) the structure is not salable as residential property because it does not comply with
64.11local ordinances relating to location in relation to streets or roads.
64.12    The market value of class 1d property has the same classification rates as class 1a property
64.13under paragraph (a).
64.14EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

64.15    Sec. 14. Minnesota Statutes 2016, section 273.13, subdivision 23, is amended to read:
64.16    Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural land
64.17that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class
64.182a land under the same ownership. The market value of the house and garage and immediately
64.19surrounding one acre of land has the same classification rates as class 1a or 1b property
64.20under subdivision 22. The value of the remaining land including improvements up to the
64.21first tier valuation limit of agricultural homestead property has a classification rate of 0.5
64.22percent of market value. The remaining property over the first tier has a classification rate
64.23of one percent of market value. For purposes of this subdivision, the "first tier valuation
64.24limit of agricultural homestead property" and "first tier" means the limit certified under
64.25section 273.11, subdivision 23.
64.26    (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that
64.27are agricultural land and buildings. Class 2a property has a classification rate of one percent
64.28of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a
64.29property must also include any property that would otherwise be classified as 2b, but is
64.30interspersed with class 2a property, including but not limited to sloughs, wooded wind
64.31shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement,
64.32and other similar land that is impractical for the assessor to value separately from the rest
64.33of the property or that is unlikely to be able to be sold separately from the rest of the property.
65.1    An assessor may classify the part of a parcel described in this subdivision that is used
65.2for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
65.3    (c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that
65.4are unplatted real estate, rural in character and not used for agricultural purposes, including
65.5land used for growing trees for timber, lumber, and wood and wood products, that is not
65.6improved with a structure. The presence of a minor, ancillary nonresidential structure as
65.7defined by the commissioner of revenue does not disqualify the property from classification
65.8under this paragraph. Any parcel of 20 acres or more improved with a structure that is not
65.9a minor, ancillary nonresidential structure must be split-classified, and ten acres must be
65.10assigned to the split parcel containing the structure. Class 2b property has a classification
65.11rate of one percent of market value unless it is part of an agricultural homestead under
65.12paragraph (a), or qualifies as class 2c under paragraph (d).
65.13    (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920
65.14acres statewide per taxpayer that is being managed under a forest management plan that
65.15meets the requirements of chapter 290C, but is not enrolled in the sustainable forest resource
65.16management incentive program. It has a classification rate of .65 percent, provided that the
65.17owner of the property must apply to the assessor in order for the property to initially qualify
65.18for the reduced rate and provide the information required by the assessor to verify that the
65.19property qualifies for the reduced rate. If the assessor receives the application and information
65.20before May 1 in an assessment year, the property qualifies beginning with that assessment
65.21year. If the assessor receives the application and information after April 30 in an assessment
65.22year, the property may not qualify until the next assessment year. The commissioner of
65.23natural resources must concur that the land is qualified. The commissioner of natural
65.24resources shall annually provide county assessors verification information on a timely basis.
65.25The presence of a minor, ancillary nonresidential structure as defined by the commissioner
65.26of revenue does not disqualify the property from classification under this paragraph.
65.27    (e) Agricultural land as used in this section means:
65.28    (1) contiguous acreage of ten acres or more, used during the preceding year for
65.29agricultural purposes; or
65.30    (2) contiguous acreage used during the preceding year for an intensive livestock or
65.31poultry confinement operation, provided that land used only for pasturing or grazing does
65.32not qualify under this clause.
65.33    "Agricultural purposes" as used in this section means the raising, cultivation, drying, or
65.34storage of agricultural products for sale, or the storage of machinery or equipment used in
66.1support of agricultural production by the same farm entity. For a property to be classified
66.2as agricultural based only on the drying or storage of agricultural products, the products
66.3being dried or stored must have been produced by the same farm entity as the entity operating
66.4the drying or storage facility. "Agricultural purposes" also includes enrollment in the Reinvest
66.5in Minnesota program under sections 103F.501 to 103F.535 or the federal Conservation
66.6Reserve Program as contained in Public Law 99-198 or a similar local, state, or federal
66.7conservation program if the property was classified as agricultural (i) under this subdivision
66.8for taxes payable in 2003 because of its enrollment in a qualifying program and the land
66.9remains enrolled or (ii) in the year prior to its enrollment. For purposes of this section, a
66.10local conservation program means a program administered by a town, statutory or home
66.11rule charter city, or county, including a watershed district, water management organization,
66.12or soil and water conservation district, in which landowners voluntarily enroll land and
66.13receive incentive payments in exchange for use or other restrictions placed on the land.
66.14Agricultural classification shall not be based upon the market value of any residential
66.15structures on the parcel or contiguous parcels under the same ownership.
66.16    "Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous
66.17portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion
66.18of, a set of contiguous tax parcels under that section that are owned by the same person.
66.19    (f) Agricultural land under this section also includes:
66.20    (1) contiguous acreage that is less than ten acres in size and exclusively used in the
66.21preceding year for raising or cultivating agricultural products; or
66.22    (2) contiguous acreage that contains a residence and is less than 11 acres in size, if the
66.23contiguous acreage exclusive of the house, garage, and surrounding one acre of land was
66.24used in the preceding year for one or more of the following three uses:
66.25    (i) for an intensive grain drying or storage operation, or for intensive machinery or
66.26equipment storage activities used to support agricultural activities on other parcels of property
66.27operated by the same farming entity;
66.28    (ii) as a nursery, provided that only those acres used intensively to produce nursery stock
66.29are considered agricultural land; or
66.30    (iii) for intensive market farming; for purposes of this paragraph, "market farming"
66.31means the cultivation of one or more fruits or vegetables or production of animal or other
66.32agricultural products for sale to local markets by the farmer or an organization with which
66.33the farmer is affiliated.
67.1    "Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as
67.2described in section 272.193, or all of a set of contiguous tax parcels under that section that
67.3are owned by the same person.
67.4    (g) Land shall be classified as agricultural even if all or a portion of the agricultural use
67.5of that property is the leasing to, or use by another person for agricultural purposes.
67.6    Classification under this subdivision is not determinative for qualifying under section
67.7273.111 .
67.8    (h) The property classification under this section supersedes, for property tax purposes
67.9only, any locally administered agricultural policies or land use restrictions that define
67.10minimum or maximum farm acreage.
67.11    (i) The term "agricultural products" as used in this subdivision includes production for
67.12sale of:
67.13    (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
67.14animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, bees,
67.15and apiary products by the owner;
67.16    (2) fish bred for sale and consumption if the fish breeding occurs on land zoned for
67.17agricultural use;
67.18    (3) the commercial boarding of horses, which may include related horse training and
67.19riding instruction, if the boarding is done on property that is also used for raising pasture
67.20to graze horses or raising or cultivating other agricultural products as defined in clause (1);
67.21    (4) property which is owned and operated by nonprofit organizations used for equestrian
67.22activities, excluding racing;
67.23    (5) game birds and waterfowl bred and raised (i) on a game farm licensed under section
67.2497A.105 , provided that the annual licensing report to the Department of Natural Resources,
67.25which must be submitted annually by March 30 to the assessor, indicates that at least 500
67.26birds were raised or used for breeding stock on the property during the preceding year and
67.27that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a
67.28shooting preserve licensed under section 97A.115;
67.29    (6) insects primarily bred to be used as food for animals;
67.30    (7) trees, grown for sale as a crop, including short rotation woody crops, and not sold
67.31for timber, lumber, wood, or wood products; and
68.1    (8) maple syrup taken from trees grown by a person licensed by the Minnesota
68.2Department of Agriculture under chapter 28A as a food processor.
68.3    (j) If a parcel used for agricultural purposes is also used for commercial or industrial
68.4purposes, including but not limited to:
68.5    (1) wholesale and retail sales;
68.6    (2) processing of raw agricultural products or other goods;
68.7    (3) warehousing or storage of processed goods; and
68.8    (4) office facilities for the support of the activities enumerated in clauses (1), (2), and
68.9(3),
68.10the assessor shall classify the part of the parcel used for agricultural purposes as class 1b,
68.112a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use.
68.12The grading, sorting, and packaging of raw agricultural products for first sale is considered
68.13an agricultural purpose. A greenhouse or other building where horticultural or nursery
68.14products are grown that is also used for the conduct of retail sales must be classified as
68.15agricultural if it is primarily used for the growing of horticultural or nursery products from
68.16seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products.
68.17Use of a greenhouse or building only for the display of already grown horticultural or nursery
68.18products does not qualify as an agricultural purpose.
68.19    (k) The assessor shall determine and list separately on the records the market value of
68.20the homestead dwelling and the one acre of land on which that dwelling is located. If any
68.21farm buildings or structures are located on this homesteaded acre of land, their market value
68.22shall not be included in this separate determination.
68.23    (l) Class 2d airport landing area consists of a landing area or public access area of a
68.24privately owned public use airport. It has a classification rate of one percent of market value.
68.25To qualify for classification under this paragraph, a privately owned public use airport must
68.26be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing
68.27area" means that part of a privately owned public use airport properly cleared, regularly
68.28maintained, and made available to the public for use by aircraft and includes runways,
68.29taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing
68.30area also includes land underlying both the primary surface and the approach surfaces that
68.31comply with all of the following:
69.1    (i) the land is properly cleared and regularly maintained for the primary purposes of the
69.2landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities
69.3for servicing, repair, or maintenance of aircraft is not included as a landing area;
69.4    (ii) the land is part of the airport property; and
69.5    (iii) the land is not used for commercial or residential purposes.
69.6The land contained in a landing area under this paragraph must be described and certified
69.7by the commissioner of transportation. The certification is effective until it is modified, or
69.8until the airport or landing area no longer meets the requirements of this paragraph. For
69.9purposes of this paragraph, "public access area" means property used as an aircraft parking
69.10ramp, apron, or storage hangar, or an arrival and departure building in connection with the
69.11airport.
69.12    (m) Class 2e consists of land with a commercial aggregate deposit that is not actively
69.13being mined and is not otherwise classified as class 2a or 2b, provided that the land is not
69.14located in a county that has elected to opt-out of the aggregate preservation program as
69.15provided in section 273.1115, subdivision 6. It has a classification rate of one percent of
69.16market value. To qualify for classification under this paragraph, the property must be at
69.17least ten contiguous acres in size and the owner of the property must record with the county
69.18recorder of the county in which the property is located an affidavit containing:
69.19    (1) a legal description of the property;
69.20    (2) a disclosure that the property contains a commercial aggregate deposit that is not
69.21actively being mined but is present on the entire parcel enrolled;
69.22    (3) documentation that the conditional use under the county or local zoning ordinance
69.23of this property is for mining; and
69.24    (4) documentation that a permit has been issued by the local unit of government or the
69.25mining activity is allowed under local ordinance. The disclosure must include a statement
69.26from a registered professional geologist, engineer, or soil scientist delineating the deposit
69.27and certifying that it is a commercial aggregate deposit.
69.28    For purposes of this section and section 273.1115, "commercial aggregate deposit"
69.29means a deposit that will yield crushed stone or sand and gravel that is suitable for use as
69.30a construction aggregate; and "actively mined" means the removal of top soil and overburden
69.31in preparation for excavation or excavation of a commercial deposit.
69.32    (n) When any portion of the property under this subdivision or subdivision 22 begins to
69.33be actively mined, the owner must file a supplemental affidavit within 60 days from the
70.1day any aggregate is removed stating the number of acres of the property that is actively
70.2being mined. The acres actively being mined must be (1) valued and classified under
70.3subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate
70.4resource preservation property tax program under section 273.1115, if the land was enrolled
70.5in that program. Copies of the original affidavit and all supplemental affidavits must be
70.6filed with the county assessor, the local zoning administrator, and the Department of Natural
70.7Resources, Division of Land and Minerals. A supplemental affidavit must be filed each
70.8time a subsequent portion of the property is actively mined, provided that the minimum
70.9acreage change is five acres, even if the actual mining activity constitutes less than five
70.10acres.
70.11    (o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not
70.12rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in
70.13section 14.386 concerning exempt rules do not apply.
70.14EFFECTIVE DATE.This section is effective beginning with assessment year 2018.

70.15    Sec. 15. Minnesota Statutes 2016, section 273.13, subdivision 25, is amended to read:
70.16    Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more units
70.17and used or held for use by the owner or by the tenants or lessees of the owner as a residence
70.18for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a
70.19also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt
70.20under section 272.02, and contiguous property used for hospital purposes, without regard
70.21to whether the property has been platted or subdivided. The market value of class 4a property
70.22has a classification rate of 1.25 percent.
70.23    (b) Class 4b includes:
70.24    (1) residential real estate containing less than four units that does not qualify as class
70.254bb, other than seasonal residential recreational property;
70.26    (2) manufactured homes not classified under any other provision;
70.27    (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm
70.28classified under subdivision 23, paragraph (b) containing two or three units; and
70.29    (4) unimproved property that is classified residential as determined under subdivision
70.3033.
70.31    The market value of class 4b property has a classification rate of 1.25 percent.
70.32    (c) Class 4bb includes:
71.1    (1) nonhomestead residential real estate containing one unit, other than seasonal
71.2residential recreational property, and a single family dwelling, garage,;
71.3    (2) single-family dwellings including garages and the surrounding one acre of property
71.4on a nonhomestead farm farms classified under subdivision 23, paragraph (b); and
71.5    (3) condominium-type storage units having individual legal descriptions that are not
71.6used for commercial purposes.
71.7    Class 4bb property has the same classification rates as class 1a property under subdivision
71.822.
71.9    Property that has been classified as seasonal residential recreational property at any time
71.10during which it has been owned by the current owner or spouse of the current owner does
71.11not qualify for class 4bb.
71.12    (d) Class 4c property includes:
71.13    (1) except as provided in subdivision 22, paragraph (c), real and personal property
71.14devoted to commercial temporary and seasonal residential occupancy for recreation purposes,
71.15for not more than 250 days in the year preceding the year of assessment. For purposes of
71.16this clause, property is devoted to a commercial purpose on a specific day if any portion of
71.17the property is used for residential occupancy, and a fee is charged for residential occupancy.
71.18Class 4c property under this clause must contain three or more rental units. A "rental unit"
71.19is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
71.20equipped with water and electrical hookups for recreational vehicles. A camping pad offered
71.21for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c
71.22under this clause regardless of the term of the rental agreement, as long as the use of the
71.23camping pad does not exceed 250 days. In order for a property to be classified under this
71.24clause, either (i) the business located on the property must provide recreational activities,
71.25at least 40 percent of the annual gross lodging receipts related to the property must be from
71.26business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid
71.27bookings by lodging guests during the year must be for periods of at least two consecutive
71.28nights; or (B) at least 20 percent of the annual gross receipts must be from charges for
71.29providing recreational activities, or (ii) the business must contain 20 or fewer rental units,
71.30and must be located in a township or a city with a population of 2,500 or less located outside
71.31the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion
71.32of a state trail administered by the Department of Natural Resources. For purposes of item
71.33(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c
71.34property also includes commercial use real property used exclusively for recreational
72.1purposes in conjunction with other class 4c property classified under this clause and devoted
72.2to temporary and seasonal residential occupancy for recreational purposes, up to a total of
72.3two acres, provided the property is not devoted to commercial recreational use for more
72.4than 250 days in the year preceding the year of assessment and is located within two miles
72.5of the class 4c property with which it is used. In order for a property to qualify for
72.6classification under this clause, the owner must submit a declaration to the assessor
72.7designating the cabins or units occupied for 250 days or less in the year preceding the year
72.8of assessment by January 15 of the assessment year. Those cabins or units and a proportionate
72.9share of the land on which they are located must be designated class 4c under this clause
72.10as otherwise provided. The remainder of the cabins or units and a proportionate share of
72.11the land on which they are located will be designated as class 3a. The owner of property
72.12desiring designation as class 4c property under this clause must provide guest registers or
72.13other records demonstrating that the units for which class 4c designation is sought were not
72.14occupied for more than 250 days in the year preceding the assessment if so requested. The
72.15portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center
72.16or meeting room, and (5) other nonresidential facility operated on a commercial basis not
72.17directly related to temporary and seasonal residential occupancy for recreation purposes
72.18does not qualify for class 4c. For the purposes of this paragraph, "recreational activities"
72.19means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country
72.20ski equipment; providing marina services, launch services, or guide services; or selling bait
72.21and fishing tackle;
72.22    (2) qualified property used as a golf course if:
72.23    (i) it is open to the public on a daily fee basis. It may charge membership fees or dues,
72.24but a membership fee may not be required in order to use the property for golfing, and its
72.25green fees for golfing must be comparable to green fees typically charged by municipal
72.26courses; and
72.27    (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
72.28    A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with
72.29the golf course is classified as class 3a property;
72.30    (3) real property up to a maximum of three acres of land owned and used by a nonprofit
72.31community service oriented organization and not used for residential purposes on either a
72.32temporary or permanent basis, provided that:
72.33    (i) the property is not used for a revenue-producing activity for more than six days in
72.34the calendar year preceding the year of assessment; or
73.1    (ii) the organization makes annual charitable contributions and donations at least equal
73.2to the property's previous year's property taxes and the property is allowed to be used for
73.3public and community meetings or events for no charge, as appropriate to the size of the
73.4facility.
73.5    For purposes of this clause:
73.6    (A) "charitable contributions and donations" has the same meaning as lawful gambling
73.7purposes under section 349.12, subdivision 25, excluding those purposes relating to the
73.8payment of taxes, assessments, fees, auditing costs, and utility payments;
73.9    (B) "property taxes" excludes the state general tax;
73.10    (C) a "nonprofit community service oriented organization" means any corporation,
73.11society, association, foundation, or institution organized and operated exclusively for
73.12charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
73.13federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
73.14Revenue Code; and
73.15    (D) "revenue-producing activities" shall include but not be limited to property or that
73.16portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
73.17liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
73.18alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
73.19insurance business, or office or other space leased or rented to a lessee who conducts a
73.20for-profit enterprise on the premises.
73.21    Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The
73.22use of the property for social events open exclusively to members and their guests for periods
73.23of less than 24 hours, when an admission is not charged nor any revenues are received by
73.24the organization shall not be considered a revenue-producing activity.
73.25    The organization shall maintain records of its charitable contributions and donations
73.26and of public meetings and events held on the property and make them available upon
73.27request any time to the assessor to ensure eligibility. An organization meeting the requirement
73.28under item (ii) must file an application by May 1 with the assessor for eligibility for the
73.29current year's assessment. The commissioner shall prescribe a uniform application form
73.30and instructions;
73.31    (4) postsecondary student housing of not more than one acre of land that is owned by a
73.32nonprofit corporation organized under chapter 317A and is used exclusively by a student
74.1cooperative, sorority, or fraternity for on-campus housing or housing located within two
74.2miles of the border of a college campus;
74.3    (5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding
74.4manufactured home parks described in section 273.124, subdivision 3a, and (ii) manufactured
74.5home parks as defined in section 327.14, subdivision 3, that are described in section 273.124,
74.6subdivision 3a ;
74.7    (6) real property that is actively and exclusively devoted to indoor fitness, health, social,
74.8recreational, and related uses, is owned and operated by a not-for-profit corporation, and is
74.9located within the metropolitan area as defined in section 473.121, subdivision 2;
74.10    (7) a leased or privately owned noncommercial aircraft storage hangar not exempt under
74.11section 272.01, subdivision 2, and the land on which it is located, provided that:
74.12    (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
74.13Airports Commission, or group thereof; and
74.14    (ii) the land lease, or any ordinance or signed agreement restricting the use of the leased
74.15premise, prohibits commercial activity performed at the hangar.
74.16    If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be
74.17filed by the new owner with the assessor of the county where the property is located within
74.1860 days of the sale;
74.19    (8) a privately owned noncommercial aircraft storage hangar not exempt under section
74.20272.01, subdivision 2 , and the land on which it is located, provided that:
74.21    (i) the land abuts a public airport; and
74.22    (ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement
74.23restricting the use of the premises, prohibiting commercial use or activity performed at the
74.24hangar; and
74.25    (9) residential real estate, a portion of which is used by the owner for homestead purposes,
74.26and that is also a place of lodging, if all of the following criteria are met:
74.27    (i) rooms are provided for rent to transient guests that generally stay for periods of 14
74.28or fewer days;
74.29    (ii) meals are provided to persons who rent rooms, the cost of which is incorporated in
74.30the basic room rate;
74.31    (iii) meals are not provided to the general public except for special events on fewer than
74.32seven days in the calendar year preceding the year of the assessment; and
75.1    (iv) the owner is the operator of the property.
75.2    The market value subject to the 4c classification under this clause is limited to five rental
75.3units. Any rental units on the property in excess of five, must be valued and assessed as
75.4class 3a. The portion of the property used for purposes of a homestead by the owner must
75.5be classified as class 1a property under subdivision 22;
75.6    (10) real property up to a maximum of three acres and operated as a restaurant as defined
75.7under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under
75.8section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to
75.9commercial purposes for not more than 250 consecutive days, or receives at least 60 percent
75.10of its annual gross receipts from business conducted during four consecutive months. Gross
75.11receipts from the sale of alcoholic beverages must be included in determining the property's
75.12qualification under item (ii). The property's primary business must be as a restaurant and
75.13not as a bar. Gross receipts from gift shop sales located on the premises must be excluded.
75.14Owners of real property desiring 4c classification under this clause must submit an annual
75.15declaration to the assessor by February 1 of the current assessment year, based on the
75.16property's relevant information for the preceding assessment year;
75.17(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as
75.18a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public
75.19and devoted to recreational use for marina services. The marina owner must annually provide
75.20evidence to the assessor that it provides services, including lake or river access to the public
75.21by means of an access ramp or other facility that is either located on the property of the
75.22marina or at a publicly owned site that abuts the property of the marina. No more than 800
75.23feet of lakeshore may be included in this classification. Buildings used in conjunction with
75.24a marina for marina services, including but not limited to buildings used to provide food
75.25and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified
75.26as class 3a property; and
75.27(12) real and personal property devoted to noncommercial temporary and seasonal
75.28residential occupancy for recreation purposes.
75.29    Class 4c property has a classification rate of 1.5 percent of market value, except that (i)
75.30each parcel of noncommercial seasonal residential recreational property under clause (12)
75.31has the same classification rates as class 4bb property, (ii) manufactured home parks assessed
75.32under clause (5), item (i), have the same classification rate as class 4b property, and the
75.33market value of manufactured home parks assessed under clause (5), item (ii), has a
75.34classification rate of 0.75 percent if more than 50 percent of the lots in the park are occupied
76.1by shareholders in the cooperative corporation or association and a classification rate of
76.2one percent if 50 percent or less of the lots are so occupied, (iii) commercial-use seasonal
76.3residential recreational property and marina recreational land as described in clause (11),
76.4has a classification rate of one percent for the first $500,000 of market value, and 1.25
76.5percent for the remaining market value, (iv) the market value of property described in clause
76.6(4) has a classification rate of one percent, (v) the market value of property described in
76.7clauses (2), (6), and (10) has a classification rate of 1.25 percent, and (vi) that portion of
76.8the market value of property in clause (9) qualifying for class 4c property has a classification
76.9rate of 1.25 percent, and (vii) property qualifying for classification under clause (3) that is
76.10owned or operated by a congressionally chartered veterans organization has a classification
76.11rate of one percent. The commissioner of veterans affairs must provide a list of
76.12congressionally chartered veterans organizations to the commissioner of revenue by June
76.1330, 2017, and by January 1, 2018, and each year thereafter.
76.14    (e) Class 4d property is qualifying low-income rental housing certified to the assessor
76.15by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of
76.16the units in the building qualify as low-income rental housing units as certified under section
76.17273.128, subdivision 3 , only the proportion of qualifying units to the total number of units
76.18in the building qualify for class 4d. The remaining portion of the building shall be classified
76.19by the assessor based upon its use. Class 4d also includes the same proportion of land as
76.20the qualifying low-income rental housing units are to the total units in the building. For all
76.21properties qualifying as class 4d, the market value determined by the assessor must be based
76.22on the normal approach to value using normal unrestricted rents.
76.23    (f) The first tier of market value of class 4d property has a classification rate of 0.75
76.24percent. The remaining value of class 4d property has a classification rate of 0.25 percent.
76.25For the purposes of this paragraph, the "first tier of market value of class 4d property" means
76.26the market value of each housing unit up to the first tier limit. For the purposes of this
76.27paragraph, all class 4d property value must be assigned to individual housing units. The
76.28first tier limit is $100,000 for assessment year 2014. For subsequent years, the limit is
76.29adjusted each year by the average statewide change in estimated market value of property
76.30classified as class 4a and 4d under this section for the previous assessment year, excluding
76.31valuation change due to new construction, rounded to the nearest $1,000, provided, however,
76.32that the limit may never be less than $100,000. Beginning with assessment year 2015, the
76.33commissioner of revenue must certify the limit for each assessment year by November 1
76.34of the previous year.
77.1EFFECTIVE DATE.This section is effective beginning with taxes assessed in 2017
77.2and payable in 2018.

77.3    Sec. 16. Minnesota Statutes 2016, section 273.13, subdivision 34, is amended to read:
77.4    Subd. 34. Homestead of disabled veteran or family caregiver. (a) All or a portion of
77.5the market value of property owned by a veteran and serving as the veteran's homestead
77.6under this section is excluded in determining the property's taxable market value if the
77.7veteran has a service-connected disability of 70 percent or more as certified by the United
77.8States Department of Veterans Affairs. To qualify for exclusion under this subdivision, the
77.9veteran must have been honorably discharged from the United States armed forces, as
77.10indicated by United States Government Form DD214 or other official military discharge
77.11papers.
77.12    (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded,
77.13except as provided in clause (2); and
77.14    (2) for a total (100 percent) and permanent disability, $300,000 of market value is
77.15excluded.
77.16    (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), clause
77.17(2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse holds
77.18the legal or beneficial title to the homestead and permanently resides there, the exclusion
77.19shall carry over to the benefit of the veteran's spouse for the current taxes payable year and
77.20for eight additional taxes payable years or until such time as the spouse remarries, or sells,
77.21transfers, or otherwise disposes of the property, whichever comes first. Qualification under
77.22this paragraph requires an annual application under paragraph (h), and a spouse must notify
77.23the assessor if there is a change in the spouse's marital status, ownership of the property, or
77.24use of the property as a permanent residence.
77.25(d) If the spouse of a member of any branch or unit of the United States armed forces
77.26who dies due to a service-connected cause while serving honorably in active service, as
77.27indicated on United States Government Form DD1300 or DD2064, holds the legal or
77.28beneficial title to a homestead and permanently resides there, the spouse is entitled to the
77.29benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such
77.30time as the spouse remarries or sells, transfers, or otherwise disposes of the property,
77.31whichever comes first.
77.32(e) If a veteran meets the disability criteria of paragraph (a) but does not own property
77.33classified as homestead in the state of Minnesota, then the homestead of the veteran's primary
78.1family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify
78.2for under paragraph (b).
78.3    (f) In the case of an agricultural homestead, only the portion of the property consisting
78.4of the house and garage and immediately surrounding one acre of land qualifies for the
78.5valuation exclusion under this subdivision.
78.6    (g) A property qualifying for a valuation exclusion under this subdivision is not eligible
78.7for the market value exclusion under subdivision 35, or classification under subdivision 22,
78.8paragraph (b).
78.9    (h) To qualify for a valuation exclusion under this subdivision a property owner must
78.10apply to the assessor by July 1 of each assessment year, except that an annual reapplication
78.11is not required once a property has been accepted for a valuation exclusion under paragraph
78.12(a) and qualifies for the benefit described in paragraph (b), clause (2), and the property
78.13continues to qualify until there is a change in ownership of the first assessment year for
78.14which the exclusion is sought. For an application received after July 1 of any calendar year,
78.15the exclusion shall become effective for the following assessment year. Except as provided
78.16in paragraph (c), the owner of a property that has been accepted for a valuation exclusion
78.17must notify the assessor if there is a change in ownership of the property or in the use of
78.18the property as a homestead.
78.19(i) A first-time application by a qualifying spouse for the market value exclusion under
78.20paragraph (d) must be made any time within two years of the death of the service member.
78.21(j) For purposes of this subdivision:
78.22(1) "active service" has the meaning given in section 190.05;
78.23(2) "own" means that the person's name is present as an owner on the property deed;
78.24(3) "primary family caregiver" means a person who is approved by the secretary of the
78.25United States Department of Veterans Affairs for assistance as the primary provider of
78.26personal care services for an eligible veteran under the Program of Comprehensive Assistance
78.27for Family Caregivers, codified as United States Code, title 38, section 1720G; and
78.28(4) "veteran" has the meaning given the term in section 197.447.
78.29(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion
78.30under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit
78.31under paragraph (b), clause (2), for eight taxes payable years or until the spouse remarries
78.32or sells, transfers, or otherwise disposes of the property if:
79.1(1) the spouse files a first-time application within two years of the death of the service
79.2member or by June 1, 2019, whichever is later;
79.3(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the
79.4homestead and permanently resides there;
79.5(3) the veteran met the honorable discharge requirements of paragraph (a); and
79.6(4) the United States Department of Veterans Affairs certifies that:
79.7(i) the veteran met the total (100 percent) and permanent disability requirement under
79.8paragraph (b), clause (2); or
79.9(ii) the spouse has been awarded dependency and indemnity compensation.
79.10(l) The purpose of this provision of law providing a level of homestead property tax
79.11relief for gravely disabled veterans, their primary family caregivers, and their surviving
79.12spouses is to help ease the burdens of war for those among our state's citizens who bear
79.13those burdens most heavily.
79.14(m) By July 1, the county veterans service officer must certify the disability rating of
79.15each veteran receiving the benefit under paragraph (b) to the assessor.
79.16EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

79.17    Sec. 17. [274.132] PROPERTY OVERVALUED.
79.18    Subdivision 1. Valuation appeals. Notwithstanding any other law to the contrary, when
79.19the value of a property is reduced by a local, special, or county board of appeal and
79.20equalization, the state board of equalization, an order from the Minnesota Tax Court, or an
79.21abatement to correct an error in valuation, a property owner may appeal the valuation of
79.22the property for the taxes payable year immediately preceding the year for which the value
79.23is reduced, provided that the valuation of the property for the immediately preceding taxes
79.24payable year was not previously appealed. An appeal under this subdivision may only be
79.25taken to the Minnesota Tax Court.
79.26    Subd. 2. Credit for overpayment of tax. (a) The county auditor shall credit any refund
79.27determined by the Minnesota Tax Court under subdivision 1 against the succeeding year's
79.28tax payable on the property according to the following schedule:
79.29(1) if the refund is less than 25 percent of the total tax payable on the property for the
79.30current year, it shall be credited to the tax payable on the property in the succeeding taxes
79.31payable year; or
80.1(2) if the refund is 25 percent or more of the total tax payable on the property for the
80.2current year, beginning in the succeeding taxes payable year, it shall be credited to the tax
80.3payable on the property at a rate of 25 percent of the property taxes due per year until
80.4credited in full.
80.5(b) The credit under this subdivision shall reduce the tax payable to each jurisdiction in
80.6proportion to the total tax payable on the property.
80.7EFFECTIVE DATE.This section is effective for appeals, orders, and abatements in
80.82018 and thereafter.

80.9    Sec. 18. Minnesota Statutes 2016, section 275.025, subdivision 1, is amended to read:
80.10    Subdivision 1. Levy amount. (a) The state general levy is levied against
80.11commercial-industrial property and seasonal residential recreational property, as defined
80.12in this section. The state general levy base amount is $592,000,000 for commercial-industrial
80.13property is $764,920,000 for taxes payable in 2002 2018. The state general levy base amount
80.14for seasonal-recreational property is $44,190,000 for taxes payable in 2018.
80.15(b) For taxes payable in subsequent years, the levy base amount is amounts are increased
80.16each year by multiplying the levy base amount for the prior year by the sum of one plus the
80.17rate of increase, if any, in the implicit price deflator for government consumption
80.18expenditures and gross investment for state and local governments prepared by the Bureau
80.19of Economic Analysts of the United States Department of Commerce for the 12-month
80.20period ending March 31 of the year prior to the year the taxes are payable. The tax under
80.21this section is not treated as a local tax rate under section 469.177 and is not the levy of a
80.22governmental unit under chapters 276A and 473F.
80.23The commissioner shall increase or decrease the preliminary or final rate for a year as
80.24necessary to account for errors and tax base changes that affected a preliminary or final rate
80.25for either of the two preceding years. Adjustments are allowed to the extent that the necessary
80.26information is available to the commissioner at the time the rates for a year must be certified,
80.27and for the following reasons:
80.28(1) an erroneous report of taxable value by a local official;
80.29(2) an erroneous calculation by the commissioner; and
80.30(3) an increase or decrease in taxable value for commercial-industrial or seasonal
80.31residential recreational property reported on the abstracts of tax lists submitted under section
80.32275.29 that was not reported on the abstracts of assessment submitted under section 270C.89
80.33for the same year.
81.1The commissioner may, but need not, make adjustments if the total difference in the tax
81.2levied for the year would be less than $100,000.
81.3EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.

81.4    Sec. 19. Minnesota Statutes 2016, section 275.025, subdivision 2, is amended to read:
81.5    Subd. 2. Commercial-industrial tax capacity. For the purposes of this section,
81.6"commercial-industrial tax capacity" means the tax capacity of all taxable property classified
81.7as class 3 or class 5(1) under section 273.13, except for excluding:
81.8(1) the tax capacity attributable to the first $150,000 of market value of each parcel of
81.9commercial-industrial property as defined under section 273.13, subdivision 24, clauses (1)
81.10and (2);
81.11(2) electric generation attached machinery under class 3; and
81.12(3) property described in section 473.625.
81.13County commercial-industrial tax capacity amounts are not adjusted for the captured
81.14net tax capacity of a tax increment financing district under section 469.177, subdivision 2,
81.15the net tax capacity of transmission lines deducted from a local government's total net tax
81.16capacity under section 273.425, or fiscal disparities contribution and distribution net tax
81.17capacities under chapter 276A or 473F. For purposes of this subdivision, the procedures
81.18for determining eligibility for tier 1 under section 273.13, subdivision 24, clauses (1) and
81.19(2), shall apply in determining the portion of a property eligible to be considered within the
81.20first $150,000 of market value.
81.21EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.

81.22    Sec. 20. Minnesota Statutes 2016, section 275.025, subdivision 4, is amended to read:
81.23    Subd. 4. Apportionment and levy of state general tax. Ninety-five percent of The
81.24state general tax must be levied by applying a uniform rate to all commercial-industrial tax
81.25capacity and five percent of the state general tax must be levied by applying a uniform rate
81.26to all seasonal residential recreational tax capacity. On or before October 1 each year, the
81.27commissioner of revenue shall certify the preliminary state general levy rates to each county
81.28auditor that must be used to prepare the notices of proposed property taxes for taxes payable
81.29in the following year. By January 1 of each year, the commissioner shall certify the final
81.30state general levy rate rates to each county auditor that shall be used in spreading taxes.
81.31EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.

82.1    Sec. 21. Minnesota Statutes 2016, section 275.025, is amended by adding a subdivision
82.2to read:
82.3    Subd. 5. Underserved municipalities distribution. (a) Any municipality that:
82.4(1) lies wholly or partially within the metropolitan area as defined under section 473.121,
82.5subdivision 2, but outside the transit taxing district as defined under section 473.446,
82.6subdivision 2; and
82.7(2) has a net fiscal disparities contribution equal to or greater than eight percent of its
82.8total taxable net tax capacity,
82.9is eligible for a distribution from the proceeds of the state general levy imposed on taxpayers
82.10within the municipality.
82.11(b) The distribution is equal to (1) the municipality's net tax capacity tax rate, times (2)
82.12the municipality's net fiscal disparities contribution in excess of eight percent of its total
82.13taxable net tax capacity; provided, however, that the distribution may not exceed the tax
82.14under this section imposed on taxpayers within the municipality.
82.15(c) The distribution under this subdivision must be paid to the qualifying municipality
82.16at the same time taxes are settled under sections 276.09 to 276.111.
82.17(d) For purposes of this subdivision, the following terms have the meanings given.
82.18(1) "Municipality" means a home rule or statutory city, or a town, except that in the case
82.19of a city that lies only partially within the metropolitan area, municipality means the portion
82.20of the city lying within the metropolitan area.
82.21(2) "Net fiscal disparities contribution" means a municipality's fiscal disparities
82.22contribution tax capacity minus its distribution net tax capacity.
82.23(3) "Total taxable net tax capacity" means the total net tax capacity of all properties in
82.24the municipality under section 273.13 minus (i) the net fiscal disparities contribution, and
82.25(ii) the municipality's tax increment captured net tax capacity.
82.26EFFECTIVE DATE.This section is effective for taxes payable in 2018 and thereafter.

82.27    Sec. 22. Minnesota Statutes 2016, section 275.066, is amended to read:
82.28275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
82.29    For the purposes of property taxation and property tax state aids, the term "special taxing
82.30districts" includes the following entities:
82.31    (1) watershed districts under chapter 103D;
83.1    (2) sanitary districts under sections 442A.01 to 442A.29;
83.2    (3) regional sanitary sewer districts under sections 115.61 to 115.67;
83.3    (4) regional public library districts under section 134.201;
83.4    (5) park districts under chapter 398;
83.5    (6) regional railroad authorities under chapter 398A;
83.6    (7) hospital districts under sections 447.31 to 447.38;
83.7    (8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
83.8    (9) Duluth Transit Authority under sections 458A.21 to 458A.37;
83.9    (10) regional development commissions under sections 462.381 to 462.398;
83.10    (11) housing and redevelopment authorities under sections 469.001 to 469.047;
83.11    (12) port authorities under sections 469.048 to 469.068;
83.12    (13) economic development authorities under sections 469.090 to 469.1081;
83.13    (14) Metropolitan Council under sections 473.123 to 473.549;
83.14    (15) Metropolitan Airports Commission under sections 473.601 to 473.679;
83.15    (16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
83.16    (17) Morrison County Rural Development Financing Authority under Laws 1982, chapter
83.17437, section 1;
83.18    (18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
83.19    (19) East Lake County Medical Clinic District under Laws 1989, chapter 211, sections
83.201 to 6;
83.21    (20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 5,
83.22section 39;
83.23    (21) Middle Mississippi River Watershed Management Organization under sections
83.24103B.211 and 103B.241;
83.25    (22) emergency medical services special taxing districts under section 144F.01;
83.26    (23) a county levying under the authority of section 103B.241, 103B.245, or 103B.251,
83.27or 103C.331 ;
83.28    (24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home
83.29under Laws 2003, First Special Session chapter 21, article 4, section 12;
84.1    (25) an airport authority created under section 360.0426; and
84.2    (26) any other political subdivision of the state of Minnesota, excluding counties, school
84.3districts, cities, and towns, that has the power to adopt and certify a property tax levy to the
84.4county auditor, as determined by the commissioner of revenue.

84.5    Sec. 23. Minnesota Statutes 2016, section 276.017, subdivision 3, is amended to read:
84.6    Subd. 3. United States Postal Service postmark Proof of timely payment. The
84.7postmark or registration mark of the United States Postal Service qualifies as proof of timely
84.8mailing for this section. If the payment is sent by United States registered mail, the date of
84.9registration is the postmark date. If the payment is sent by United States certified mail, the
84.10date of the United States Postal Service postmark on the receipt given to the person presenting
84.11the payment for delivery is the date of mailing. Mailing, or the time of mailing, may also
84.12be established by a delivery service's records or other available evidence except that. The
84.13postmark of a private postage meter or internet stamp may not be used as proof of a timely
84.14mailing made under this section.

84.15    Sec. 24. Minnesota Statutes 2016, section 279.01, subdivision 1, is amended to read:
84.16    Subdivision 1. Due dates; penalties. Except as provided in subdivisions 3 to 5, on May
84.1716 or 21 days after the postmark date on the envelope containing the property tax statement,
84.18whichever is later, a penalty accrues and thereafter is charged upon all unpaid taxes on real
84.19estate on the current lists in the hands of the county treasurer. The (a) When the taxes against
84.20any tract or lot exceed $100, one-half of the amount of tax due must be paid prior to May
84.2116, and the remaining one-half must be paid prior to the following October 16. If either tax
84.22amount is unpaid as of its due date, a penalty is imposed at a rate of two percent on homestead
84.23property until May 31 and four percent on nonhomestead property. If complete payment
84.24has not been made by the first day of the month following either due date, an additional
84.25penalty of two percent on June 1. The penalty on nonhomestead property is at a rate of four
84.26percent until May 31 homestead property and eight four percent on June 1. This penalty
84.27does not accrue until June 1 of each year, or 21 days after the postmark date on the envelope
84.28containing the property tax statements, whichever is later, on commercial use real property
84.29used for seasonal residential recreational purposes and classified as class 1c or 4c, and on
84.30other commercial use real property classified as class 3a, provided that over 60 percent of
84.31the gross income earned by the enterprise on the class 3a property is earned during the
84.32months of May, June, July, and August. In order for the first half of the tax due on class 3a
84.33property to be paid after May 15 and before June 1, or 21 days after the postmark date on
85.1the envelope containing the property tax statement, whichever is later, without penalty, the
85.2owner of the property must attach an affidavit to the payment attesting to compliance with
85.3the income provision of this subdivision nonhomestead property is imposed. Thereafter,
85.4for both homestead and nonhomestead property, on the first day of each subsequent month
85.5beginning July 1, up to and including October 1 following through December, an additional
85.6penalty of one percent for each month accrues and is charged on all such unpaid taxes
85.7provided that if the due date was extended beyond May 15 as the result of any delay in
85.8mailing property tax statements no additional penalty shall accrue if the tax is paid by the
85.9extended due date. If the tax is not paid by the extended due date, then all penalties that
85.10would have accrued if the due date had been May 15 shall be charged. When the taxes
85.11against any tract or lot exceed $100, one-half thereof may be paid prior to May 16 or 21
85.12days after the postmark date on the envelope containing the property tax statement, whichever
85.13is later; and, if so paid, no penalty attaches; the remaining one-half may be paid at any time
85.14prior to October 16 following, without penalty; but, if not so paid, then a penalty of two
85.15percent accrues thereon for homestead property and a penalty of four percent on
85.16nonhomestead property. Thereafter, for homestead property, on the first day of November
85.17an additional penalty of four percent accrues and on the first day of December following,
85.18an additional penalty of two percent accrues and is charged on all such unpaid taxes.
85.19Thereafter, for nonhomestead property, on the first day of November and December
85.20following, an additional penalty of four percent for each month accrues and is charged on
85.21all such unpaid taxes. If one-half of such taxes are not paid prior to May 16 or 21 days after
85.22the postmark date on the envelope containing the property tax statement, whichever is later,
85.23the same may be paid at any time prior to October 16, with accrued penalties to the date of
85.24payment added, and thereupon no penalty attaches to the remaining one-half until October
85.2516 following the penalty must not exceed eight percent in the case of homestead property,
85.26or 12 percent in the case of nonhomestead property.
85.27(b) If the property tax statement was not postmarked prior to April 25, the first half
85.28payment due date in paragraph (a) shall be 21 days from the postmark date of the property
85.29tax statement, and all penalties referenced in paragraph (a) shall be determined with regard
85.30to the later due date.
85.31(c) In the case of a tract or lot with taxes of $100 or less, the due date and penalties as
85.32specified in paragraph (a) or (b) for the first half payment shall apply to the entire amount
85.33of the tax due.
85.34(d) For commercial use real property used for seasonal residential recreational purposes
85.35and classified as class 1c or 4c, and on other commercial use real property classified as class
86.13a, provided that over 60 percent of the gross income earned by the enterprise on the class
86.23a property is earned during the months of May, June, July, and August, the first half
86.3payment is due prior to June 1. For a class 3a property to qualify for the later due date, the
86.4owner of the property must attach an affidavit to the payment attesting to compliance with
86.5the income requirements of this paragraph.
86.6    (e) This section applies to payment of personal property taxes assessed against
86.7improvements to leased property, except as provided by section 277.01, subdivision 3.
86.8    (f) A county may provide by resolution that in the case of a property owner that has
86.9multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in
86.10installments as provided in this subdivision.
86.11    (g) The county treasurer may accept payments of more or less than the exact amount of
86.12a tax installment due. Payments must be applied first to the oldest installment that is due
86.13but which has not been fully paid. If the accepted payment is less than the amount due,
86.14payments must be applied first to the penalty accrued for the year or the installment being
86.15paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum
86.16payment required as a condition for filing an appeal under section 278.03 or any other law,
86.17nor does it affect the order of payment of delinquent taxes under section 280.39.
86.18EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

86.19    Sec. 25. Minnesota Statutes 2016, section 279.01, subdivision 2, is amended to read:
86.20    Subd. 2. Abatement of penalty. (a) The county board may, with the concurrence of the
86.21county treasurer, delegate to the county treasurer the power to abate the penalty provided
86.22for late payment of taxes in the current year. Notwithstanding section 270C.86, if any county
86.23board so elects, the county treasurer may abate the penalty on finding that the imposition
86.24of the penalty would be unjust and unreasonable.
86.25(b) The county treasurer shall abate the penalty provided for late payment of taxes in
86.26the current year if the property tax payment is delivered by mail to the county treasurer and
86.27the envelope containing the payment is postmarked by the United States Postal Service
86.28within one business day of the due date prescribed under this section, but only if the property
86.29owner requesting the abatement has not previously received an abatement of penalty for
86.30late payment of tax under this paragraph.
86.31EFFECTIVE DATE.This section is effective for property taxes payable in 2018 and
86.32thereafter.

87.1    Sec. 26. Minnesota Statutes 2016, section 279.01, subdivision 3, is amended to read:
87.2    Subd. 3. Agricultural property. (a) In the case of class 1b agricultural homestead, class
87.32a agricultural homestead property, and class 2a agricultural nonhomestead property, and
87.4class 2b rural vacant land, no penalties shall attach to the second one-half property tax
87.5payment as provided in this section if paid by November 15. Thereafter for class 1b
87.6agricultural homestead and class 2a homestead property, on November 16 following, a
87.7penalty of six percent shall accrue and be charged on all such unpaid taxes and on December
87.81 following, an additional two percent shall be charged on all such unpaid taxes. Thereafter
87.9for class 2a agricultural nonhomestead property, on November 16 following, a penalty of
87.10eight percent shall accrue and be charged on all such unpaid taxes and on December 1
87.11following, an additional four percent shall be charged on all such unpaid taxes, penalties
87.12shall attach as provided in subdivision 1.
87.13If the owner of class 1b agricultural homestead or class 2a agricultural property receives
87.14a consolidated property tax statement that shows only an aggregate of the taxes and special
87.15assessments due on that property and on other property not classified as class 1b agricultural
87.16homestead or class 2a agricultural property, the aggregate tax and special assessments shown
87.17due on the property by the consolidated statement will be due on November 15.
87.18(b) Notwithstanding paragraph (a), for taxes payable in 2010 and 2011, for any class 2b
87.19property that was subject to a second-half due date of November 15 for taxes payable in
87.202009, the county shall not impose, or if imposed, shall abate penalty amounts in excess of
87.21those that would apply as if the second-half due date were November 15.
87.22EFFECTIVE DATE.(a) Except as provided in paragraph (b), this section is effective
87.23beginning with taxes payable in 2018.
87.24(b) For property in the northern forest region, the provisions in this section applicable
87.25to class 2b rural vacant land are effective beginning with taxes payable in 2019.

87.26    Sec. 27. Minnesota Statutes 2016, section 279.37, is amended by adding a subdivision to
87.27read:
87.28    Subd. 1b. Conditions. The county auditor may offer on a voluntary basis financial
87.29literacy counseling as part of entering into a confession of judgment. The county auditor
87.30may fund the financial literacy counseling using the fee in subdivision 8. The counseling
87.31shall not be at taxpayer expense.

88.1    Sec. 28. Minnesota Statutes 2016, section 281.17, is amended to read:
88.2281.17 PERIOD FOR OF REDEMPTION.
88.3(a) Except for properties described in paragraphs (b) and (c), or properties for which the
88.4period of redemption has been limited under sections 281.173 and 281.174, the following
88.5periods for period of redemption apply.
88.6The period of redemption for all lands sold to the state at a tax judgment sale shall be
88.7three years from the date of sale to the state of Minnesota.
88.8The period of redemption for homesteaded lands as defined in section 273.13, subdivision
88.922 , located in a targeted neighborhood as defined in Laws 1987, chapter 386, article 6,
88.10section 4, and sold to the state at a tax judgment sale is three years from the date of sale.
88.11(b) The period of redemption for all lands located in a targeted neighborhood community
88.12as defined in Laws 1987, chapter 386, article 6, section 4 section 469.201, subdivision 10,
88.13except homesteaded lands as defined in section 273.13, subdivision 22, is one year from
88.14the date of sale.
88.15(c) The period of redemption for all real property constituting a mixed municipal solid
88.16waste disposal facility that is a qualified facility under section 115B.39, subdivision 1, is
88.17one year from the date of the sale to the state of Minnesota.
88.18(d) In determining the period of redemption, the county must use the property's
88.19classification and homestead classification for the assessment year on which the tax judgment
88.20is based. Any change in the property's classification or homestead classification after the
88.21assessment year on which the tax judgment is based does not affect the period of redemption.

88.22    Sec. 29. Minnesota Statutes 2016, section 281.173, subdivision 2, is amended to read:
88.23    Subd. 2. Summons and complaint. Any city, county, housing and redevelopment
88.24authority, port authority, or economic development authority, in which the premises are
88.25located may commence an action in district court to reduce the period otherwise allowed
88.26for redemption under this chapter. The action must be commenced by the filing of a
88.27complaint, naming as defendants the record fee owners or the owner's personal representative,
88.28or the owner's heirs as determined by a court of competent jurisdiction, contract for deed
88.29purchasers, mortgagees, assigns of any of the above, the taxpayers as shown on the records
88.30of the county auditor, the Internal Revenue Service of the United States and the Revenue
88.31Department of the state of Minnesota if tax liens against the owners or contract for deed
88.32purchasers have been recorded or filed; and any other person the plaintiff determines should
88.33be made a party. The action shall be filed in district court for the county in which the premises
89.1are located. The complaint must identify the premises by legal description. The complaint
89.2must allege (1) that the premises are abandoned, (2) that the tax judgment sale pursuant to
89.3section 280.01 has been made, and (3) notice of expiration of the time for redemption has
89.4not been given.
89.5The complaint must request an order reducing the redemption period to five weeks.
89.6When the complaint has been filed, the court shall issue a summons commanding the person
89.7or persons named in the complaint to appear before the court on a day and at a place stated
89.8in the summons. The appearance date shall be not less than 15 nor more than 25 days from
89.9the date of the issuing of the summons. A copy of the filed complaint must be attached to
89.10the summons.

89.11    Sec. 30. Minnesota Statutes 2016, section 281.174, subdivision 3, is amended to read:
89.12    Subd. 3. Summons and complaint. Any city, county, housing and redevelopment
89.13authority, port authority, or economic development authority in which the property is located
89.14may commence an action in district court to reduce the period otherwise allowed for
89.15redemption under this chapter from the date of the requested order. The action must be
89.16commenced by the filing of a complaint, naming as defendants the record fee owners or the
89.17owner's personal representative, or the owner's heirs as determined by a court of competent
89.18jurisdiction, contract for deed purchasers, mortgagees, assigns of any of the above, the
89.19taxpayers as shown on the records of the county auditor, the Internal Revenue Service of
89.20the United States and the revenue department of the state of Minnesota if tax liens against
89.21the owners or contract for deed purchasers have been recorded or filed, and any other person
89.22the plaintiff determines should be made a party. The action shall be filed in district court
89.23for the county in which the property is located. The complaint must identify the property
89.24by legal description. The complaint must allege (1) that the property is vacant, (2) that the
89.25tax judgment sale under section 280.01 has been made, and (3) notice of expiration of the
89.26time for redemption has not been given.
89.27The complaint must request an order reducing the redemption period to five weeks.
89.28When the complaint has been filed, the court shall issue a summons commanding the person
89.29or persons named in the complaint to appear before the court on a day and at a place stated
89.30in the summons. The appearance date shall be not less than 15 nor more than 25 days from
89.31the date of the issuing of the summons, except that, when the United States of America is
89.32a party, the date shall be set in accordance with applicable federal law. A copy of the filed
89.33complaint must be attached to the summons.

90.1    Sec. 31. [281.231] MAINTENANCE; EXPENDITURE OF PUBLIC FUNDS.
90.2If the county auditor provides notice as required by section 281.23, the state, agency,
90.3political subdivision, or other entity that becomes the fee owner or manager of a property
90.4as a result of forfeiture due to nonpayment of real property taxes is not required to expend
90.5public funds to maintain any servitude, agreement, easement, or other encumbrance affecting
90.6the property. The fee owner or manager of a property may, at its discretion, spend public
90.7funds necessary for the maintenance, security, or management of the property.

90.8    Sec. 32. [281.70] LIMITED RIGHT OF ENTRY.
90.9    Subdivision 1. Limited right of entry. If premises described in a real estate tax judgment
90.10sale are vacant or unoccupied, the county auditor or a person acting on behalf of the county
90.11auditor may, but is not obligated to, enter the premises to protect the premises from waste
90.12or trespass until the county auditor is notified that the premises are occupied. An affidavit
90.13of the sheriff, the county auditor, or a person acting on behalf of the county auditor describing
90.14the premises and stating that the premises are vacant and unoccupied is prima facie evidence
90.15of the facts stated in the affidavit. If the affidavit contains a legal description of the premises,
90.16the affidavit may be recorded in the office of the county recorder or the registrar of titles in
90.17the county where the premises are located.
90.18    Subd. 2. Authorized actions. (a) The county auditor may take one or more of the
90.19following actions to protect the premises from waste or trespass:
90.20(1) install or change locks on doors and windows;
90.21(2) board windows; and
90.22(3) other actions to prevent or minimize damage to the premises from the elements,
90.23vandalism, trespass, or other illegal activities.
90.24(b) If the county auditor installs or changes locks on premises under paragraph (a), the
90.25county auditor must promptly deliver a key to the premises to the taxpayer or any person
90.26lawfully claiming through the taxpayer upon request.
90.27    Subd. 3. Costs. Costs incurred by the county auditor in protecting the premises from
90.28waste or trespass under this section may be added to the delinquent taxes due. The costs
90.29may bear interest to the extent provided, and interest may be added to the delinquent taxes
90.30due.
91.1    Subd. 4. Scope. The actions authorized under this section are in addition to, and do not
91.2limit or replace, any other rights or remedies available to the county auditor under Minnesota
91.3law.

91.4    Sec. 33. Minnesota Statutes 2016, section 282.01, subdivision 4, is amended to read:
91.5    Subd. 4. Sale:; method,; requirements,; effects. (a) The sale authorized under
91.6subdivision 3 must be conducted by the county auditor at the county seat of the county in
91.7which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may be
91.8conducted in any county facility within the county. The sale must not be for less than the
91.9appraised value except as provided in subdivision 7a. The parcels must be sold for cash
91.10only, unless the county board of the county has adopted a resolution providing for their sale
91.11on terms, in which event the resolution controls with respect to the sale. When the sale is
91.12made on terms other than for cash only (1) a payment of at least ten percent of the purchase
91.13price must be made at the time of purchase, and the balance must be paid in no more than
91.14ten equal annual installments, or (2) the payments must be made in accordance with county
91.15board policy, but in no event may the board require more than 12 installments annually,
91.16and the contract term must not be for more than ten years. Standing timber or timber products
91.17must not be removed from these lands until an amount equal to the appraised value of all
91.18standing timber or timber products on the lands at the time of purchase has been paid by
91.19the purchaser. If a parcel of land bearing standing timber or timber products is sold at public
91.20auction for more than the appraised value, the amount bid in excess of the appraised value
91.21must be allocated between the land and the timber in proportion to their respective appraised
91.22values. In that case, standing timber or timber products must not be removed from the land
91.23until the amount of the excess bid allocated to timber or timber products has been paid in
91.24addition to the appraised value of the land. The purchaser is entitled to immediate possession,
91.25subject to the provisions of any existing valid lease made in behalf of the state.
91.26(b) For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price
91.27is subject to interest at the rate determined pursuant to section 549.09. The unpaid balance
91.28of the purchase price for sales occurring after December 31, 1990, is subject to interest at
91.29the rate determined in section 279.03, subdivision 1a. The interest rate is subject to change
91.30each year on the unpaid balance in the manner provided for rate changes in section 549.09
91.31or 279.03, subdivision 1a, whichever, is applicable. Interest on the unpaid contract balance
91.32on sales occurring before July 1, 1982, is payable at the rate applicable to the sale at the
91.33time that the sale occurred.
92.1(c) Notwithstanding subdivision 7, a county board may by resolution provide for the
92.2listing and sale of individual parcels by other means, including through a real estate broker.
92.3However, if the buyer under this paragraph could have repurchased a parcel of property
92.4under section 282.012 or 282.241, that buyer may not purchase that same parcel of property
92.5at the sale under this subdivision for a purchase price less than the sum of all taxes,
92.6assessments, penalties, interest, and costs due at the time of forfeiture computed under
92.7section 282.251, and any special assessments for improvements certified as of the date of
92.8sale. This subdivision shall be liberally construed to encourage the sale and utilization of
92.9tax-forfeited land in order to eliminate nuisances and dangerous conditions and to increase
92.10compliance with land use ordinances.

92.11    Sec. 34. Minnesota Statutes 2016, section 282.01, subdivision 6, is amended to read:
92.12    Subd. 6. Duties of commissioner after sale. (a) When any sale has been made by the
92.13county auditor under sections 282.01 to 282.13, the auditor shall immediately certify to the
92.14commissioner of revenue such information relating to such sale, on such forms as the
92.15commissioner of revenue may prescribe as will enable the commissioner of revenue to
92.16prepare an appropriate deed if the sale is for cash, or keep necessary records if the sale is
92.17on terms; and not later than October 31 of each year the county auditor shall submit to the
92.18commissioner of revenue a statement of all instances wherein any payment of principal,
92.19interest, or current taxes on lands held under certificate, due or to be paid during the preceding
92.20calendar years, are still outstanding at the time such certificate is made. When such statement
92.21shows that a purchaser or the purchaser's assignee is in default, the commissioner of revenue
92.22may instruct the county board of the county in which the land is located to cancel said
92.23certificate of sale in the manner provided by subdivision 5, provided that upon
92.24recommendation of the county board, and where the circumstances are such that the
92.25commissioner of revenue after investigation is satisfied that the purchaser has made every
92.26effort reasonable to make payment of both the annual installment and said taxes, and that
92.27there has been no willful neglect on the part of the purchaser in meeting these obligations,
92.28then the commissioner of revenue may extend the time for the payment for such period as
92.29the commissioner may deem warranted, not to exceed one year. On payment in full of the
92.30purchase price, appropriate conveyance in fee, in such form as may be prescribed by the
92.31attorney general, shall be issued by the commissioner of revenue, which conveyance must
92.32be recorded by the county and shall have the force and effect of a patent from the state
92.33subject to easements and restrictions of record at the date of the tax judgment sale, including,
92.34but without limitation, permits for telephone and electric power lines either by underground
93.1cable or conduit or otherwise, sewer and water lines, highways, railroads, and pipe lines for
93.2gas, liquids, or solids in suspension.
93.3(b) The commissioner of revenue shall issue an appropriate conveyance in fee upon the
93.4receipt of a loan commitment or approval from the county auditor. For purposes of this
93.5paragraph, "loan commitment" or "loan approval" means a written commitment or approval
93.6to make a mortgage loan from a lender approved to make mortgage loans in Minnesota.
93.7The conveyance shall be issued to the county auditor where the land is located. Upon receipt
93.8of the conveyance, the county auditor shall hold the conveyance until such time as the
93.9conveyance is requested from a title company licensed to do business in Minnesota. If a
93.10request for the conveyance is not made within 45 days of the date the conveyance is issued
93.11by the commissioner of revenue, the county auditor shall return the conveyance to the
93.12commissioner. The title company making the request for the conveyance shall certify to the
93.13county auditor that the conveyance is necessary to close the purchase of the subject property
93.14within five days of the request. If the conveyance is delivered to the title company and the
93.15closing does not occur within five days of the request, the title company shall immediately
93.16return the conveyance to the county auditor, and upon receipt, the county auditor shall return
93.17the deed to the commissioner of revenue. The commissioner of revenue shall destroy all
93.18deeds returned by the county auditor pursuant to this subdivision.

93.19    Sec. 35. Minnesota Statutes 2016, section 282.01, is amended by adding a subdivision to
93.20read:
93.21    Subd. 13. Online auction. A county board, or a county auditor if the auditor has been
93.22delegated such authority under section 282.135, may sell tax-forfeited lands through an
93.23online auction. When an online auction is used to sell tax-forfeited lands, the county auditor
93.24shall post a physical notice of the online auction and shall publish a notice of the online
93.25auction on its Web site not less than ten days before the online auction begins, in addition
93.26to any other notice required.
93.27EFFECTIVE DATE.This section is effective for sales of tax-forfeited property that
93.28occur on or after August 1, 2017.

93.29    Sec. 36. Minnesota Statutes 2016, section 282.016, is amended to read:
93.30282.016 PROHIBITED PURCHASERS.
93.31(a) A county auditor, county treasurer, county attorney, court administrator of the district
93.32court, county assessor, supervisor of assessments, deputy or clerk or an employee of such
93.33officer, a commissioner for tax-forfeited lands or an assistant to such commissioner, must
94.1not become a purchaser, either personally or as an agent or attorney for another person, of
94.2the properties offered for sale under the provisions of this chapter in the county for which
94.3the person performs duties. A person prohibited from purchasing property under this section
94.4must not directly or indirectly have another person purchase it on behalf of the prohibited
94.5purchaser for the prohibited purchaser's benefit or gain.
94.6(b) Notwithstanding paragraph (a), such officer, deputy, clerk, or employee or
94.7commissioner for tax-forfeited lands or assistant to such commissioner may (1) purchase
94.8lands owned by that official at the time the state became the absolute owner thereof or (2)
94.9bid upon and purchase forfeited property offered for sale under the alternate sale procedure
94.10described in section 282.01, subdivision 7a.
94.11(c) In addition to the persons identified in paragraph (a), a county auditor may prohibit
94.12other persons and entities from becoming a purchaser, either personally or as an agent or
94.13attorney for another person or entity, of the properties offered for sale under this chapter in
94.14the following circumstances: (1) the person or entity owns another property within the
94.15county for which there are delinquent taxes owing; (2) the person or entity has held a rental
94.16license in the county and the license has been revoked within the last five years; (3) the
94.17person or entity has been the vendee of a contract for purchase of a property offered for sale
94.18under this chapter, which contract has been canceled within the last five years; or (4) the
94.19person or entity owns another property within the county for which there is an unresolved
94.20housing code violation, including an unpaid charge or fine.
94.21(d) A person prohibited from purchasing property under this section must not directly
94.22or indirectly have another person purchase it on behalf of the prohibited purchaser for the
94.23prohibited purchaser's benefit or gain.

94.24    Sec. 37. Minnesota Statutes 2016, section 282.018, subdivision 1, is amended to read:
94.25    Subdivision 1. Land on or adjacent to public waters. (a) All land which is the property
94.26of the state as a result of forfeiture to the state for nonpayment of taxes, regardless of whether
94.27the land is held in trust for taxing districts, and which borders on or is adjacent to meandered
94.28lakes and other public waters and watercourses, and the live timber growing or being thereon,
94.29is hereby withdrawn from sale except as hereinafter provided. The authority having
94.30jurisdiction over the timber on any such lands may sell the timber as otherwise provided by
94.31law for cutting and removal under such conditions as the authority may prescribe in
94.32accordance with approved, sustained yield forestry practices. The authority having jurisdiction
94.33over the timber shall reserve such timber and impose such conditions as the authority deems
94.34necessary for the protection of watersheds, wildlife habitat, shorelines, and scenic features.
95.1Within the area in Cook, Lake, and St. Louis counties described in the Act of Congress
95.2approved July 10, 1930 (46 Stat. 1020), the timber on tax-forfeited lands shall be subject
95.3to like restrictions as are now imposed by that act on federal lands.
95.4(b) Of all tax-forfeited land bordering on or adjacent to meandered lakes and other public
95.5waters and watercourses and so withdrawn from sale, a strip two rods in width, the ordinary
95.6high-water mark being the waterside boundary thereof, and the land side boundary thereof
95.7being a line drawn parallel to the ordinary high-water mark and two rods distant landward
95.8therefrom, hereby is reserved for public travel thereon, and whatever the conformation of
95.9the shore line or conditions require, the authority having jurisdiction over such lands shall
95.10reserve a wider strip for such purposes.
95.11(c) Any tract or parcel of land which has 150 feet or less of waterfront may be sold by
95.12the authority having jurisdiction over the land, in the manner otherwise provided by law
95.13for the sale of such lands, if the authority determines that it is in the public interest to do
95.14so. If the authority having jurisdiction over the land is not the commissioner of natural
95.15resources, the land may not be offered for sale without the prior approval of the commissioner
95.16of natural resources.
95.17(d) Where the authority having jurisdiction over lands withdrawn from sale under this
95.18section is not the commissioner of natural resources, the authority may submit proposals
95.19for disposition of the lands to the commissioner. The commissioner of natural resources
95.20shall evaluate the lands and their public benefits and make recommendations on the proposed
95.21dispositions to the committees of the legislature with jurisdiction over natural resources.
95.22The commissioner shall include any recommendations of the commissioner for disposition
95.23of lands withdrawn from sale under this section over which the commissioner has jurisdiction.
95.24The commissioner's recommendations may include a public sale, sale to a private party,
95.25acquisition by the Department of Natural Resources for public purposes, or a cooperative
95.26management agreement with, or transfer to, another unit of government.
95.27(e) Notwithstanding this subdivision, a county may sell property governed by this section
95.28upon written authorization from the commissioner of natural resources. Prior to the sale or
95.29conveyance of lands under this subdivision, the county board must give notice of its intent
95.30to meet for that purpose as provided in section 282.01, subdivision 1.

95.31    Sec. 38. Minnesota Statutes 2016, section 282.02, is amended to read:
95.32282.02 LIST OF LANDS FOR SALE; NOTICE; ONLINE AUCTIONS
95.33PERMITTED.
96.1(a) Immediately after classification and appraisal of the land, and after approval by the
96.2commissioner of natural resources when required pursuant to section 282.01, subdivision
96.33 , the county board shall provide and file with the county auditor a list of parcels of land to
96.4be offered for sale. This list shall contain a description of the parcels of land and the appraised
96.5value thereof. The auditor shall publish a notice of the intended public sale of such parcels
96.6of land and a copy of the resolution of the county board fixing the terms of the sale, if other
96.7than for cash only, by publication once a week for two weeks in the official newspaper of
96.8the county, the last publication to be not less than ten days previous to the commencement
96.9of the sale.
96.10(b) The notice shall include the parcel's description and appraised value. The notice shall
96.11also indicate the amount of any special assessments which may be the subject of a
96.12reassessment or new assessment or which may result in the imposition of a fee or charge
96.13pursuant to sections 429.071, subdivision 4, 435.23, and 444.076. The county auditor shall
96.14also mail notice to the owners of land adjoining the parcel to be sold. For purposes of this
96.15section, "owner" means the taxpayer as listed in the records of the county auditor.
96.16(c) If the county board of St. Louis or Koochiching Counties determines that the sale
96.17shall take place in a county facility other than the courthouse, the notice shall specify the
96.18facility and its location. If the county board determines that the sale shall take place as an
96.19online auction under section 282.01, subdivision 13, the notice shall specify the auction
96.20Web site and the date of the auction.
96.21EFFECTIVE DATE.This section is effective for sales of tax-forfeited property that
96.22occur on or after August 1, 2017.

96.23    Sec. 39. Minnesota Statutes 2016, section 282.241, subdivision 1, is amended to read:
96.24    Subdivision 1. Repurchase requirements. The owner at the time of forfeiture, or the
96.25owner's heirs, devisees, or representatives, or any person to whom the right to pay taxes
96.26was given by statute, mortgage, or other agreement, may repurchase any parcel of land
96.27claimed by the state to be forfeited to the state for taxes unless before the time repurchase
96.28is made the parcel is sold under installment payments, or otherwise, by the state as provided
96.29by law, or is under mineral prospecting permit or lease, or proceedings have been commenced
96.30by the state or any of its political subdivisions or by the United States to condemn the parcel
96.31of land. The parcel of land may be repurchased for the sum of all delinquent taxes and
96.32assessments computed under section 282.251, together with penalties, interest, and costs,
96.33that accrued or would have accrued if the parcel of land had not forfeited to the state. Except
96.34for property which was homesteaded on the date of forfeiture, repurchase is permitted during
97.1one year six months only from the date of forfeiture, and in any case only after the adoption
97.2of a resolution by the board of county commissioners determining that by repurchase undue
97.3hardship or injustice resulting from the forfeiture will be corrected, or that permitting the
97.4repurchase will promote the use of the lands that will best serve the public interest. If the
97.5county board has good cause to believe that a repurchase installment payment plan for a
97.6particular parcel is unnecessary and not in the public interest, the county board may require
97.7as a condition of repurchase that the entire repurchase price be paid at the time of repurchase.
97.8A repurchase is subject to any easement, lease, or other encumbrance granted by the state
97.9before the repurchase, and if the land is located within a restricted area established by any
97.10county under Laws 1939, chapter 340, the repurchase must not be permitted unless the
97.11resolution approving the repurchase is adopted by the unanimous vote of the board of county
97.12commissioners.
97.13The person seeking to repurchase under this section shall pay all maintenance costs
97.14incurred by the county auditor during the time the property was tax-forfeited.
97.15EFFECTIVE DATE.This section is effective January 1, 2018.

97.16    Sec. 40. Minnesota Statutes 2016, section 282.322, is amended to read:
97.17282.322 FORFEITED LANDS LIST.
97.18The county board of any county may file a list of forfeited lands with the county auditor,
97.19if the board is of the opinion that such lands may be acquired by the state or any municipal
97.20subdivision thereof of the state for public purposes. Upon the filing of such the list of
97.21forfeited lands, the county auditor shall withhold said lands from repurchase. If no proceeding
97.22shall be is started to acquire such lands by the state or some municipal subdivision thereof
97.23of the state within one year after the filing of such the list of forfeited lands, the county
97.24board shall withdraw said the list and thereafter, if the property was classified as
97.25nonhomestead at the time of forfeiture, the owner shall have one year not more than six
97.26months in which to repurchase.
97.27EFFECTIVE DATE.This section is effective January 1, 2018.

97.28    Sec. 41. Minnesota Statutes 2016, section 290A.03, subdivision 13, is amended to read:
97.29    Subd. 13. Property taxes payable. "Property taxes payable" means the property tax
97.30exclusive of special assessments, penalties, and interest payable on a claimant's homestead
97.31after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2,
97.32and any other state paid property tax credits in any calendar year, and after any refund
98.1claimed and allowable under section 290A.04, subdivision 2h, that is first payable in the
98.2year that the property tax is payable. In the case of a claimant who makes ground lease
98.3payments, "property taxes payable" includes the amount of the payments directly attributable
98.4to the property taxes assessed against the parcel on which the house is located. No
98.5apportionment or reduction of the "property taxes payable" shall be required for the use of
98.6a portion of the claimant's homestead for a business purpose if the claimant does not deduct
98.7any business depreciation expenses for the use of a portion of the homestead in the
98.8determination of federal adjusted gross income. For homesteads which are manufactured
98.9homes as defined in section 273.125, subdivision 8, and for homesteads which are including
98.10manufactured homes located in a manufactured home community owned by a cooperative
98.11organized under chapter 308A or 308B, and park trailers taxed as manufactured homes
98.12under section 168.012, subdivision 9, "property taxes payable" shall also include 17 percent
98.13of the gross rent paid in the preceding year for the site on which the homestead is located.
98.14When a homestead is owned by two or more persons as joint tenants or tenants in common,
98.15such tenants shall determine between them which tenant may claim the property taxes
98.16payable on the homestead. If they are unable to agree, the matter shall be referred to the
98.17commissioner of revenue whose decision shall be final. Property taxes are considered payable
98.18in the year prescribed by law for payment of the taxes.
98.19In the case of a claim relating to "property taxes payable," the claimant must have owned
98.20and occupied the homestead on January 2 of the year in which the tax is payable and (i) the
98.21property must have been classified as homestead property pursuant to section 273.124, on
98.22or before December 15 of the assessment year to which the "property taxes payable" relate;
98.23or (ii) the claimant must provide documentation from the local assessor that application for
98.24homestead classification has been made on or before December 15 of the year in which the
98.25"property taxes payable" were payable and that the assessor has approved the application.
98.26EFFECTIVE DATE.This section is effective beginning with claims for taxes payable
98.27in 2018.

98.28    Sec. 42. Minnesota Statutes 2016, section 473H.09, is amended to read:
98.29473H.09 EARLY TERMINATION.
98.30    Subdivision 1. Public emergency. Termination of an agricultural preserve earlier than
98.31a date derived through application of section 473H.08 may be permitted only in the event
98.32of a public emergency upon petition from the owner or authority to the governor. The
98.33determination of a public emergency shall be by the governor through executive order
99.1pursuant to sections 4.035 and 12.01 to 12.46. The executive order shall identify the preserve,
99.2the reasons requiring the action and the date of termination.
99.3    Subd. 2. Death of owner. (a) Within 365 days of the death of an owner, an owner's
99.4spouse, or other qualifying person, the surviving owner may elect to terminate the agricultural
99.5preserve and the covenant allowing the land to be enrolled as an agricultural preserve by
99.6notifying the authority on a form provided by the commissioner of agriculture. Termination
99.7of a covenant under this subdivision must be executed and acknowledged in the manner
99.8required by law to execute and acknowledge a deed.
99.9(b) For purposes of this subdivision, the following definitions apply:
99.10(1) "qualifying person" includes a partner, shareholder, trustee for a trust that the decedent
99.11was the settlor or a beneficiary of, or member of an entity permitted to own agricultural
99.12land and engage in farming under section 500.24 that owned the agricultural preserve; and
99.13(2) "surviving owner" includes the executor of the estate of the decedent, trustee for a
99.14trust that the decedent was the settlor or a beneficiary of, or an entity permitted to own farm
99.15land under section 500.24 of which the decedent was a partner, shareholder, or member.
99.16(c) When an agricultural preserve is terminated under this subdivision, the property is
99.17subject to additional taxes in an amount equal to 50 percent of the taxes actually levied
99.18against the property for the current taxes payable year. The additional taxes are extended
99.19against the property on the tax list for taxes payable in the current year. The additional taxes
99.20must be distributed among the jurisdictions levying taxes on the property in proportion to
99.21the current year's taxes.
99.22EFFECTIVE DATE.This section is effective July 1, 2017.

99.23    Sec. 43. Minnesota Statutes 2016, section 473H.17, subdivision 1a, is amended to read:
99.24    Subd. 1a. Allowed commercial and industrial operations. (a) Commercial and industrial
99.25operations are not allowed on land within an agricultural preserve except:
99.26(1) small on-farm commercial or industrial operations normally associated with and
99.27important to farming in the agricultural preserve area;
99.28(2) storage use of existing farm buildings that does not disrupt the integrity of the
99.29agricultural preserve; and
99.30(3) small commercial use of existing farm buildings for trades not disruptive to the
99.31integrity of the agricultural preserve such as a carpentry shop, small scale mechanics shop,
99.32and similar activities that a farm operator might conduct.; and
100.1(4) wireless communication installments and related equipment and structure capable
100.2of providing technology potentially beneficial to farming activities.
100.3(b) For purposes of paragraph (a), clauses (2) and (3), "existing" in paragraph (a), clauses
100.4(2) and (3), means existing on August 1, 1987.
100.5EFFECTIVE DATE.This section is effective the day following enactment.

100.6    Sec. 44. Minnesota Statutes 2016, section 504B.285, subdivision 1, is amended to read:
100.7    Subdivision 1. Grounds. (a) The person entitled to the premises may recover possession
100.8by eviction when:
100.9(1) any person holds over real property:
100.10(i) after a sale of the property on an execution or judgment; or
100.11(ii) after the expiration of the time for redemption on foreclosure of a mortgage, or after
100.12termination of contract to convey the property; or
100.13(iii) after the expiration of the time for redemption on a real estate tax judgment sale;
100.14(2) any person holds over real property after termination of the time for which it is
100.15demised or leased to that person or to the persons under whom that person holds possession,
100.16contrary to the conditions or covenants of the lease or agreement under which that person
100.17holds, or after any rent becomes due according to the terms of such lease or agreement; or
100.18(3) any tenant at will holds over after the termination of the tenancy by notice to quit.
100.19(b) A landlord may not commence an eviction action against a tenant or authorized
100.20occupant solely on the basis that the tenant or authorized occupant has been the victim of
100.21any of the acts listed in section 504B.206, subdivision 1, paragraph (a). Nothing in this
100.22paragraph should be construed to prohibit an eviction action based on a breach of the lease.

100.23    Sec. 45. Minnesota Statutes 2016, section 504B.365, subdivision 3, is amended to read:
100.24    Subd. 3. Removal and storage of property. (a) If the defendant's personal property is
100.25to be stored in a place other than the premises, the officer shall remove all personal property
100.26of the defendant at the expense of the plaintiff.
100.27(b) The defendant must make immediate payment for all expenses of removing personal
100.28property from the premises. If the defendant fails or refuses to do so, the plaintiff has a lien
100.29on all the personal property for the reasonable costs and expenses incurred in removing,
100.30caring for, storing, and transporting it to a suitable storage place.
101.1(c) The plaintiff may enforce the lien by detaining the personal property until paid. If
101.2no payment has been made for 60 days after the execution of the order to vacate, the plaintiff
101.3may dispose of the property or hold a public sale as provided in sections 514.18 to 514.22.
101.4(d) If the defendant's personal property is to be stored on the premises, the officer shall
101.5enter the premises, breaking in if necessary, and the plaintiff may remove the defendant's
101.6personal property. Section 504B.271 applies to personal property removed under this
101.7paragraph. The plaintiff must prepare an inventory and mail a copy of the inventory to the
101.8defendant's last known address or, if the defendant has provided a different address, to the
101.9address provided. The inventory must be prepared, signed, and dated in the presence of the
101.10officer and must include the following:
101.11(1) a list of the items of personal property and a description of their condition;
101.12(2) the date, the signature of the plaintiff or the plaintiff's agent, and the name and
101.13telephone number of a person authorized to release the personal property; and
101.14(3) the name and badge number of the officer.
101.15(e) The officer must retain a copy of the inventory.
101.16(f) The plaintiff is responsible for the proper removal, storage, and care of the defendant's
101.17personal property and is liable for damages for loss of or injury to it caused by the plaintiff's
101.18failure to exercise the same care that a reasonably careful person would exercise under
101.19similar circumstances.
101.20(g) The plaintiff shall notify the defendant of the date and approximate time the officer
101.21is scheduled to remove the defendant, family, and personal property from the premises. The
101.22notice must be sent by first class mail. In addition, the plaintiff must make a good faith
101.23effort to notify the defendant by telephone. The notice must be mailed as soon as the
101.24information regarding the date and approximate time the officer is scheduled to enforce the
101.25order is known to the plaintiff, except that the scheduling of the officer to enforce the order
101.26need not be delayed because of the notice requirement. The notice must inform the defendant
101.27that the defendant and the defendant's personal property will be removed from the premises
101.28if the defendant has not vacated the premises by the time specified in the notice.

101.29    Sec. 46. Laws 1996, chapter 471, article 3, section 51, is amended to read:
101.30    Sec. 51. RECREATION LEVY FOR SAWYER BY CARLTON COUNTY.
101.31    Subdivision 1. Levy authorized. Notwithstanding other law to the contrary, the Carlton
101.32county board of commissioners may levy in and for the unorganized township of Sawyer
102.1an amount up to $1,500 annually for recreational purposes, beginning with taxes payable
102.2in 1997 and ending with taxes payable in 2006.
102.3    Subd. 2. Effective date. This section is effective June 1, 1996, without local approval.
102.4EFFECTIVE DATE.This section applies to taxes payable in 2018 and thereafter, and
102.5is effective the day after the Carlton County Board of Commissioners and its chief clerical
102.6officer timely complete their compliance with section 645.021, subdivisions 2 and 3.

102.7    Sec. 47. SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL
102.8ASSESSMENT.
102.9Any real or personal property acquired, owned, leased, controlled, used, or occupied by
102.10the city of St. Paul for the primary purpose of providing a stadium for a Major League
102.11Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied for
102.12public, governmental, and municipal purposes, and is exempt from ad valorem taxation by
102.13the state or any political subdivision of the state, provided that the properties are subject to
102.14special assessments levied by a political subdivision for a local improvement in amounts
102.15proportionate to and not exceeding the special benefit received by the properties from the
102.16improvement. In determining the special benefit received by the properties, no possible use
102.17of any of the properties in any manner different from their intended use for providing a
102.18Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota
102.19Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a
102.20lease or use agreement between the city and another person for uses related to the purposes
102.21of the operation of the stadium and related parking facilities is exempt from taxation
102.22regardless of the length of the lease or use agreement. This section, insofar as it provides
102.23an exemption or special treatment, does not apply to any real property that is leased for
102.24residential, business, or commercial development or other purposes different from those
102.25necessary to the provision and operation of the stadium.
102.26EFFECTIVE DATE.This section is effective upon approval by the St. Paul City
102.27Council and compliance with Minnesota Statutes, section 645.021.

102.28    Sec. 48. LEGISLATIVE PROPERTY TAX REFORM WORKING GROUP.
102.29    Subdivision 1. Membership. (a) The Legislative Property Tax Reform Working Group
102.30is created and consists of the following members:
102.31(1) two representatives appointed by the chair of the tax committee of the house of
102.32representatives;
103.1(2) two representatives appointed by the minority leader of the tax committee of the
103.2house of representatives;
103.3(3) two senators appointed by the chair of the senate tax committee; and
103.4(4) two senators appointed by the minority leader of the senate tax committee.
103.5(b) Any vacancy shall be filled by appointment of the appointing authority for the vacating
103.6member.
103.7(c) Members shall be appointed by July 1, 2017.
103.8    Subd. 2. Duties. The working group must perform the duties described in section 49.
103.9    Subd. 3. First meeting; chair. The first appointee of the chair of the house of
103.10representatives tax committee must convene the initial meeting of the working group by
103.11July 21, 2017. The members of the working group must elect a chair and vice-chair from
103.12the members of the working group at the first meeting.
103.13    Subd. 4. Staff. Legislative staff of the house of representatives and senate shall provide
103.14administrative and research support. The working group may request the assistance of staff
103.15from the Department of Revenue and Department of Education as necessary to facilitate its
103.16work.
103.17    Subd. 5. Report. The working group must submit a report by February 15, 2018, to the
103.18chairs and ranking minority members of the committees in the senate and house of
103.19representatives with primary jurisdiction over taxes, presenting two or more alternatives
103.20for reform of Minnesota's property tax system.
103.21    Subd. 6. Sunset. The working group shall sunset the day following the submission of
103.22the report under subdivision 5.
103.23EFFECTIVE DATE.This section is effective the day following final enactment.

103.24    Sec. 49. PROPOSALS FOR REFORM OF MINNESOTA'S PROPERTY TAX
103.25SYSTEM.
103.26The Legislative Property Tax Reform Working Group must develop proposals to
103.27restructure Minnesota's property tax system for legislative consideration. The proposals
103.28must provide for a system that reduces the complexity and cost of Minnesota's property tax
103.29system to increase transparency and understanding for taxpayers and assessors while
103.30minimizing the number of properties that experience severe tax changes. The proposals
103.31must include, but are not limited to, a reduction in the number of classifications and tiers
103.32in the current property tax system. The proposals may include a transition period of up to
104.1five years before the final system elements are fully operational. At least one proposal must
104.2be developed where the highest estimated net state cost does not exceed $250,000,000 in
104.3the first year that the proposal is fully phased in. At least one proposal must be developed
104.4where the highest estimated net state cost does not exceed $500,000,000 in the first year
104.5that the proposal is fully phased in. Each proposal should estimate the administrative cost
104.6savings to county governments and to the state government.
104.7EFFECTIVE DATE.This section is effective the day following final enactment.

104.8    Sec. 50. REPEALER.
104.9Minnesota Statutes 2016, sections 270C.9901; and 281.22, are repealed.
104.10EFFECTIVE DATE.This section is effective the day following final enactment.


104.13    Section 1. [88.068] VOLUNTEER FIRE ASSISTANCE GRANT ACCOUNT.
104.14A volunteer fire assistance grant account is established in the special revenue fund. Sales
104.15taxes allocated under section 297A.94, for making grants under section 88.067, must be
104.16deposited in the special revenue fund and credited to the volunteer fire assistance grant
104.17account. Money in the account, including interest, is appropriated to the commissioner for
104.18making grants under that section.
104.19EFFECTIVE DATE.This section is effective beginning with deposits made in fiscal
104.20year 2018.

104.21    Sec. 2. Minnesota Statutes 2016, section 128C.24, is amended to read:
104.22128C.24 LEAGUE FUNDS TRANSFER.
104.23Beginning July 1, 2007, the Minnesota State High School League shall annually determine
104.24the sales tax savings attributable to section 297A.70, subdivision 11 11a, and annually
104.25transfer that amount to a nonprofit charitable foundation created for the purpose of promoting
104.26high school extracurricular activities. The funds must be used by the foundation to make
104.27grants to fund, assist, recognize, or promote high school students' participation in
104.28extracurricular activities. The first priority for funding will be grants for scholarships to
104.29individuals to offset athletic fees. The foundation must equitably award grants based on
104.30considerations of gender balance, school size, and geographic location, to the extent feasible.
105.1EFFECTIVE DATE.This section is effective for sales and purchases made after June
105.230, 2017.

105.3    Sec. 3. Minnesota Statutes 2016, section 297A.66, subdivision 1, is amended to read:
105.4    Subdivision 1. Definitions. (a) To the extent allowed by the United States Constitution
105.5and the laws of the United States, "retailer maintaining a place of business in this state," or
105.6a similar term, means a retailer:
105.7(1) having or maintaining within this state, directly or by a subsidiary or an affiliate, an
105.8office, place of distribution, sales, storage, or sample room or place, warehouse, or other
105.9place of business, including the employment of a resident of this state who works from a
105.10home office in this state; or
105.11(2) having a representative, including, but not limited to, an affiliate, agent, salesperson,
105.12canvasser, or marketplace provider, solicitor, or other third party operating in this state
105.13under the authority of the retailer or its subsidiary, for any purpose, including the repairing,
105.14selling, delivering, installing, facilitating sales, processing sales, or soliciting of orders for
105.15the retailer's goods or services, or the leasing of tangible personal property located in this
105.16state, whether the place of business or agent, representative, affiliate, salesperson, canvasser,
105.17or solicitor is located in the state permanently or temporarily, or whether or not the retailer,
105.18subsidiary, or affiliate is authorized to do business in this state. A retailer is represented by
105.19a marketplace provider in this state if the retailer makes sales in this state facilitated by a
105.20marketplace provider that maintains a place of business in this state.
105.21(b) "Destination of a sale" means the location to which the retailer makes delivery of
105.22the property sold, or causes the property to be delivered, to the purchaser of the property,
105.23or to the agent or designee of the purchaser. The delivery may be made by any means,
105.24including the United States Postal Service or a for-hire carrier.
105.25(c) "Marketplace provider" means any person who facilitates a retail sale by a retailer
105.26by:
105.27(1) listing or advertising for sale by the retailer in any forum, tangible personal property,
105.28services, or digital goods that are subject to tax under this chapter; and
105.29(2) either directly or indirectly through agreements or arrangements with third parties
105.30collecting payment from the customer and transmitting that payment to the retailer regardless
105.31of whether the marketplace provider receives compensation or other consideration in
105.32exchange for its services.
106.1(d) "Total taxable retail sales" means the gross receipts from the sale of all tangible
106.2goods, services, and digital goods subject to sales and use tax under this chapter.

106.3    Sec. 4. Minnesota Statutes 2016, section 297A.66, subdivision 2, is amended to read:
106.4    Subd. 2. Retailer maintaining place of business in this state. (a) Except as provided
106.5in paragraph (b), a retailer maintaining a place of business in this state who makes retail
106.6sales in Minnesota or to a destination in Minnesota shall collect sales and use taxes and
106.7remit them to the commissioner under section 297A.77.
106.8(b) A retailer with total taxable retail sales to customers in this state of less than $10,000
106.9in the 12-month period ending on the last day of the most recently completed calendar
106.10quarter is not required to collect and remit sales tax if it is determined to be a retailer
106.11maintaining a place of business in the state solely because it made sales through one or more
106.12marketplace providers. The provisions of this paragraph do not apply to a retailer that is or
106.13was registered to collect sales and use tax in this state.

106.14    Sec. 5. Minnesota Statutes 2016, section 297A.66, subdivision 4, is amended to read:
106.15    Subd. 4. Affiliated entities. (a) An entity is an "affiliate" of the retailer for purposes of
106.16subdivision 1, paragraph (a), if the entity:
106.17(1) the entity uses its facilities or employees in this state to advertise, promote, or facilitate
106.18the establishment or maintenance of a market for sales of items by the retailer to purchasers
106.19in this state or for the provision of services to the retailer's purchasers in this state, such as
106.20accepting returns of purchases for the retailer, providing assistance in resolving customer
106.21complaints of the retailer, or providing other services; and
106.22(2) the retailer and the entity are related parties. has the same or a similar business name
106.23to the retailer and sells, from a location or locations in this state, tangible personal property,
106.24digital goods, or services, taxable under this chapter, that are similar to that sold by the
106.25retailer;
106.26(3) maintains an office, distribution facility, salesroom, warehouse, storage place, or
106.27other similar place of business in this state to facilitate the delivery of tangible personal
106.28property, digital goods, or services sold by the retailer to its customers in this state;
106.29(4) maintains a place of business in this state and uses trademarks, service marks, or
106.30trade names in this state that are the same or substantially similar to those used by the retailer,
106.31and that use is done with the express or implied consent of the holder of the marks or names;
107.1(5) delivers, installs, or assembles tangible personal property in this state, or performs
107.2maintenance or repair services on tangible personal property in this state, for tangible
107.3personal property sold by the retailer;
107.4(6) facilitates the delivery of tangible personal property to customers of the retailer by
107.5allowing the customers to pick up tangible personal property sold by the retailer at a place
107.6of business the entity maintains in this state; or
107.7(7) shares management, business systems, business practices, or employees with the
107.8retailer, or engages in intercompany transactions with the retailer related to the activities
107.9that establish or maintain the market in this state of the retailer.
107.10(b) Two entities are related parties under this section if one of the entities meets at least
107.11one of the following tests with respect to the other entity:
107.12(1) one or both entities is a corporation, and one entity and any party related to that entity
107.13in a manner that would require an attribution of stock from the corporation to the party or
107.14from the party to the corporation under the attribution rules of section 318 of the Internal
107.15Revenue Code owns directly, indirectly, beneficially, or constructively at least 50 percent
107.16of the value of the corporation's outstanding stock;
107.17(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary,
107.18and the partnership, estate, or trust and its partners or beneficiaries own directly, indirectly,
107.19beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital,
107.20stock, or value of the other entity or both entities; or
107.21(3) an individual stockholder and the members of the stockholder's family (as defined
107.22in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially, or
107.23constructively, in the aggregate, at least 50 percent of the value of both entities' outstanding
107.24stock.;
107.25(4) the entities are related within the meaning of subsections (b) and (c) of section 267
107.26or 707(b)(1) of the Internal Revenue Code; or
107.27(5) the entities have one or more ownership relationships and the relationships were
107.28designed with a principal purpose of avoiding the application of this section.
107.29(c) An entity is an affiliate under the provisions of this subdivision if the requirements
107.30of paragraphs (a) and (b) are met during any part of the 12-month period ending on the first
107.31day of the month before the month in which the sale was made.

108.1    Sec. 6. Minnesota Statutes 2016, section 297A.66, is amended by adding a subdivision to
108.2read:
108.3    Subd. 4b. Collection and remittance requirements for marketplace providers and
108.4marketplace retailers. (a) A marketplace provider shall collect sales and use taxes and
108.5remit them to the commissioner under section 297A.77 for all facilitated sales for a retailer,
108.6and is subject to audit on the retail sales it facilitates unless either:
108.7(1) the retailer provides a copy of the retailer's registration to collect sales and use tax
108.8in this state to the marketplace provider before the marketplace provider facilitates a sale;
108.9or
108.10(2) upon inquiry by the marketplace provider or its agent, the commissioner discloses
108.11that the retailer is registered to collect sales and use taxes in this state.
108.12(b) Nothing in this subdivision shall be construed to interfere with the ability of a
108.13marketplace provider and a retailer to enter into an agreement regarding fulfillment of the
108.14requirements of this chapter.
108.15(c) A marketplace provider is not liable under this subdivision for failure to file and
108.16collect and remit sales and use taxes if the marketplace provider demonstrates that the error
108.17was due to incorrect or insufficient information given to the marketplace provider by the
108.18retailer. This paragraph does not apply if the marketplace provider and the marketplace
108.19retailer are related as defined in subdivision 4, paragraph (b).

108.20    Sec. 7. Minnesota Statutes 2016, section 297A.67, subdivision 13a, is amended to read:
108.21    Subd. 13a. Instructional materials. (a) Instructional materials, other than textbooks,
108.22that are prescribed for use in conjunction with a course of study in a postsecondary school,
108.23college, university, or private career school to students who are regularly enrolled at such
108.24institutions are exempt. For purposes of this subdivision, "instructional materials" means
108.25materials required to be used directly in the completion of the course of study, including,
108.26but not limited to,:
108.27(1) interactive CDs, tapes, digital audio works, digital audiovisual works, and computer
108.28software.;
108.29(2) charts and models used in the course of study; and
108.30(3) specialty pens, pencils, inks, paint, paper, and other art supplies for art classes.
108.31(b) Notwithstanding paragraph (c), if the course of study is necessary to obtaining a
108.32degree or certification for a trade or career, any equipment, tools, and supplies required
109.1during the course of study that are generally used directly in the practice of the career or
109.2trade are also exempt.
109.3(c) Instructional materials do not include general reference works or other items incidental
109.4to the instructional process such as pens, pencils, paper, folders, or computers that are of
109.5general use outside of the course of study.
109.6(d) For purposes of this subdivision, "school" and "private career school" have the
109.7meanings given in subdivision 13.
109.8EFFECTIVE DATE.This section is effective for sales and purchases made after June
109.930, 2017.

109.10    Sec. 8. Minnesota Statutes 2016, section 297A.67, is amended by adding a subdivision to
109.11read:
109.12    Subd. 34. Certain herbicides. Purchases of herbicides authorized for use pursuant to
109.13an invasive aquatic plant management permit as defined under section 103G.615 are exempt
109.14if purchased by a lakeshore property owner, an association of lakeshore property owners
109.15organized under chapter 317A, or by a contractor hired by a lakeshore owner or association
109.16to provide invasive aquatic plant management under the permit. For purposes of this
109.17subdivision, "herbicides" means all herbicides that meet the following requirements:
109.18(1) are labeled for use in water;
109.19(2) are registered for use in this state by the Minnesota Department of Agriculture under
109.20section 18B.26; and
109.21(3) are listed as one of the herbicides proposed for use on the invasive aquatic plant
109.22management permit.
109.23EFFECTIVE DATE.This section is effective for sales and purchases made after June
109.2430, 2017.

109.25    Sec. 9. Minnesota Statutes 2016, section 297A.68, subdivision 5, is amended to read:
109.26    Subd. 5. Capital equipment. (a) Capital equipment is exempt.
109.27"Capital equipment" means machinery and equipment purchased or leased, and used in
109.28this state by the purchaser or lessee primarily for manufacturing, fabricating, mining, or
109.29refining tangible personal property to be sold ultimately at retail if the machinery and
109.30equipment are essential to the integrated production process of manufacturing, fabricating,
109.31mining, or refining. Capital equipment also includes machinery and equipment used primarily
110.1to electronically transmit results retrieved by a customer of an online computerized data
110.2retrieval system.
110.3(b) Capital equipment includes, but is not limited to:
110.4(1) machinery and equipment used to operate, control, or regulate the production
110.5equipment;
110.6(2) machinery and equipment used for research and development, design, quality control,
110.7and testing activities;
110.8(3) environmental control devices that are used to maintain conditions such as
110.9temperature, humidity, light, or air pressure when those conditions are essential to and are
110.10part of the production process;
110.11(4) materials and supplies used to construct and install machinery or equipment;
110.12(5) repair and replacement parts, including accessories, whether purchased as spare parts,
110.13repair parts, or as upgrades or modifications to machinery or equipment;
110.14(6) materials used for foundations that support machinery or equipment;
110.15(7) materials used to construct and install special purpose buildings used in the production
110.16process;
110.17(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed as part
110.18of the delivery process regardless if mounted on a chassis, repair parts for ready-mixed
110.19concrete trucks, and leases of ready-mixed concrete trucks; and
110.20(9) machinery or equipment used for research, development, design, or production of
110.21computer software.
110.22(c) Capital equipment does not include the following:
110.23(1) motor vehicles taxed under chapter 297B;
110.24(2) machinery or equipment used to receive or store raw materials;
110.25(3) building materials, except for materials included in paragraph (b), clauses (6) and
110.26(7);
110.27(4) machinery or equipment used for nonproduction purposes, including, but not limited
110.28to, the following: plant security, fire prevention, first aid, and hospital stations; support
110.29operations or administration; pollution control; and plant cleaning, disposal of scrap and
110.30waste, plant communications, space heating, cooling, lighting, or safety;
111.1(5) farm machinery and aquaculture production equipment as defined by section 297A.61,
111.2subdivisions 12 and 13;
111.3(6) machinery or equipment purchased and installed by a contractor as part of an
111.4improvement to real property;
111.5(7) machinery and equipment used by restaurants in the furnishing, preparing, or serving
111.6of prepared foods as defined in section 297A.61, subdivision 31;
111.7(8) machinery and equipment used to furnish the services listed in section 297A.61,
111.8subdivision 3 , paragraph (g), clause (6), items (i) to (vi) and (viii);
111.9(9) machinery or equipment used in the transportation, transmission, or distribution of
111.10petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines, tanks,
111.11mains, or other means of transporting those products. This clause does not apply to machinery
111.12or equipment used to blend petroleum or biodiesel fuel as defined in section 239.77; or
111.13(10) any other item that is not essential to the integrated process of manufacturing,
111.14fabricating, mining, or refining.
111.15(d) For purposes of this subdivision:
111.16(1) "Equipment" means independent devices or tools separate from machinery but
111.17essential to an integrated production process, including computers and computer software,
111.18used in operating, controlling, or regulating machinery and equipment; and any subunit or
111.19assembly comprising a component of any machinery or accessory or attachment parts of
111.20machinery, such as tools, dies, jigs, patterns, and molds.
111.21(2) "Fabricating" means to make, build, create, produce, or assemble components or
111.22property to work in a new or different manner.
111.23(3) "Integrated production process" means a process or series of operations through
111.24which tangible personal property is manufactured, fabricated, mined, or refined. For purposes
111.25of this clause, (i) manufacturing begins with the removal of raw materials from inventory
111.26and ends when the last process prior to loading for shipment has been completed; (ii)
111.27fabricating begins with the removal from storage or inventory of the property to be assembled,
111.28processed, altered, or modified and ends with the creation or production of the new or
111.29changed product; (iii) mining begins with the removal of overburden from the site of the
111.30ores, minerals, stone, peat deposit, or surface materials and ends when the last process before
111.31stockpiling is completed; and (iv) refining begins with the removal from inventory or storage
111.32of a natural resource and ends with the conversion of the item to its completed form.
112.1(4) "Machinery" means mechanical, electronic, or electrical devices, including computers
112.2and computer software, that are purchased or constructed to be used for the activities set
112.3forth in paragraph (a), beginning with the removal of raw materials from inventory through
112.4completion of the product, including packaging of the product.
112.5(5) "Machinery and equipment used for pollution control" means machinery and
112.6equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity
112.7described in paragraph (a).
112.8(6) "Manufacturing" means an operation or series of operations where raw materials are
112.9changed in form, composition, or condition by machinery and equipment and which results
112.10in the production of a new article of tangible personal property. For purposes of this
112.11subdivision, "manufacturing" includes the generation of electricity or steam to be sold at
112.12retail.
112.13(7) "Mining" means the extraction of minerals, ores, stone, or peat.
112.14(8) "Online data retrieval system" means a system whose cumulation of information is
112.15equally available and accessible to all its customers.
112.16(9) "Primarily" means machinery and equipment used 50 percent or more of the time in
112.17an activity described in paragraph (a).
112.18(10) "Refining" means the process of converting a natural resource to an intermediate
112.19or finished product, including the treatment of water to be sold at retail.
112.20(11) This subdivision does not apply to telecommunications equipment as provided in
112.21subdivision 35a, and does not apply to wire, cable, fiber, poles, or conduit for
112.22telecommunications services.
112.23EFFECTIVE DATE.This section is effective for sales and purchases made after June
112.2430, 2017.

112.25    Sec. 10. Minnesota Statutes 2016, section 297A.68, subdivision 9, is amended to read:
112.26    Subd. 9. Super Bowl admissions and related events. (a) The granting of the privilege
112.27of admission to a world championship football game sponsored by the National Football
112.28League is and to related events sponsored by the National Football League or its affiliates,
112.29or the Minnesota Super Bowl Host Committee, are exempt.
112.30(b) The sale of nonresidential parking by the National Football League for attendance
112.31at a world championship football game sponsored by the National Football League and for
112.32related events sponsored by the National Football League or its affiliates, or the Minnesota
113.1Super Bowl Host Committee, is exempt. Purchases of nonresidential parking services by
113.2the Super Bowl Host Committee are purchases made exempt for resale.
113.3(c) For the purposes of this subdivision:
113.4(1) "related events sponsored by the National Football League or its affiliates" includes
113.5but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate, NFL On
113.6Location, and NFL House; and
113.7(2) "affiliates" does not include National Football League teams.
113.8EFFECTIVE DATE.The amendments to this section are effective for sales and
113.9purchases made after June 30, 2016, and before March 1, 2018.

113.10    Sec. 11. Minnesota Statutes 2016, section 297A.68, subdivision 35a, is amended to read:
113.11    Subd. 35a. Telecommunications or pay television services machinery and equipment.
113.12(a) Telecommunications or pay television services machinery and equipment purchased or
113.13leased for use directly by a telecommunications or pay television services provider primarily
113.14in the provision of telecommunications or pay television services that are ultimately to be
113.15sold at retail are exempt, regardless of whether purchased by the owner, a contractor, or a
113.16subcontractor.
113.17(b) For purposes of this subdivision, "telecommunications or pay television machinery
113.18and equipment" includes, but is not limited to:
113.19(1) machinery, equipment, and fixtures utilized in receiving, initiating, amplifying,
113.20processing, transmitting, retransmitting, recording, switching, or monitoring
113.21telecommunications or pay television services, such as computers, transformers, amplifiers,
113.22routers, bridges, repeaters, multiplexers, and other items performing comparable functions;
113.23(2) machinery, equipment, and fixtures used in the transportation of telecommunications
113.24or pay television services, such as radio transmitters and receivers, satellite equipment,
113.25microwave equipment, and other transporting media, but not including wire, cable, fiber,
113.26poles, or conduit;
113.27(3) ancillary machinery, equipment, and fixtures that regulate, control, protect, or enable
113.28the machinery in clauses (1) and (2) to accomplish its intended function, such as auxiliary
113.29power supply, test equipment, towers, heating, ventilating, and air conditioning equipment
113.30necessary to the operation of the telecommunications or pay television equipment; and
113.31software necessary to the operation of the telecommunications or pay television equipment;
113.32and
114.1(4) repair and replacement parts, including accessories, whether purchased as spare parts,
114.2repair parts, or as upgrades or modifications to qualified machinery or equipment.
114.3EFFECTIVE DATE.This section is effective for sales and purchases made after June
114.430, 2017.

114.5    Sec. 12. Minnesota Statutes 2016, section 297A.70, subdivision 4, is amended to read:
114.6    Subd. 4. Sales to nonprofit groups. (a) All sales, except those listed in paragraph (b),
114.7to the following "nonprofit organizations" are exempt:
114.8(1) a corporation, society, association, foundation, or institution organized and operated
114.9exclusively for charitable, religious, or educational purposes if the item purchased is used
114.10in the performance of charitable, religious, or educational functions; and
114.11(2) any senior citizen group or association of groups that:
114.12(i) in general limits membership to persons who are either age 55 or older, or physically
114.13disabled;
114.14(ii) is organized and operated exclusively for pleasure, recreation, and other nonprofit
114.15purposes, not including housing, no part of the net earnings of which inures to the benefit
114.16of any private shareholders; and
114.17(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.; and
114.18(3) an organization that qualifies for an exemption for memberships under subdivision
114.1912 if the item is purchased and used in the performance of the organization's mission.
114.20For purposes of this subdivision, charitable purpose includes the maintenance of a cemetery
114.21owned by a religious organization.
114.22(b) This exemption does not apply to the following sales:
114.23(1) building, construction, or reconstruction materials purchased by a contractor or a
114.24subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed
114.25maximum price covering both labor and materials for use in the construction, alteration, or
114.26repair of a building or facility;
114.27(2) construction materials purchased by tax-exempt entities or their contractors to be
114.28used in constructing buildings or facilities that will not be used principally by the tax-exempt
114.29entities;
114.30(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2),
114.31and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67,
115.1subdivision 2 , except wine purchased by an established religious organization for sacramental
115.2purposes or as allowed under subdivision 9a; and
115.3(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except as
115.4provided in paragraph (c).
115.5(c) This exemption applies to the leasing of a motor vehicle as defined in section 297B.01,
115.6subdivision 11 , only if the vehicle is:
115.7(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a
115.8passenger automobile, as defined in section 168.002, if the automobile is designed and used
115.9for carrying more than nine persons including the driver; and
115.10(2) intended to be used primarily to transport tangible personal property or individuals,
115.11other than employees, to whom the organization provides service in performing its charitable,
115.12religious, or educational purpose.
115.13(d) A limited liability company also qualifies for exemption under this subdivision if
115.14(1) it consists of a sole member that would qualify for the exemption, and (2) the items
115.15purchased qualify for the exemption.
115.16EFFECTIVE DATE. This section is effective for sales and purchases made after June
115.1730, 2017.

115.18    Sec. 13. Minnesota Statutes 2016, section 297A.70, is amended by adding a subdivision
115.19to read:
115.20    Subd. 11a. Minnesota State High School League tickets and admissions. Tickets and
115.21admissions to games, events, and activities sponsored by the Minnesota State High School
115.22League under chapter 128C are exempt.
115.23EFFECTIVE DATE.This section is effective for sales and purchases made after June
115.2430, 2017.

115.25    Sec. 14. Minnesota Statutes 2016, section 297A.70, subdivision 12, is amended to read:
115.26    Subd. 12. YMCA, YWCA, and JCC, and similar memberships. (a) The sale of
115.27memberships, meaning both onetime initiation fees and periodic membership dues, to an
115.28association incorporated under section 315.44 or an organization defined under section
115.29315.51 , or a nonprofit organization offering similar services are exempt. However, all
115.30separate charges made for the privilege of having access to and the use of the association's
115.31sports and athletic facilities are taxable.
116.1(b) For purposes of this subdivision, a "nonprofit organization offering similar services"
116.2means an organization described in section 501(c)(3) of the Internal Revenue Code, whose
116.3mission is to support youth and families through a variety of activities, including membership
116.4allowing access to athletic facilities, and who provide free or reduced-price memberships
116.5to seniors or low-income persons or families.
116.6EFFECTIVE DATE.This section is effective for sales and purchases made after June
116.730, 2017.

116.8    Sec. 15. Minnesota Statutes 2016, section 297A.70, subdivision 14, is amended to read:
116.9    Subd. 14. Fund-raising events sponsored by nonprofit groups. (a) Sales of tangible
116.10personal property or services at, and admission charges for fund-raising events sponsored
116.11by, a nonprofit organization are exempt if:
116.12(1) all gross receipts are recorded as such, in accordance with generally accepted
116.13accounting practices, on the books of the nonprofit organization; and
116.14(2) the entire proceeds, less the necessary expenses for the event, will be used solely
116.15and exclusively for charitable, religious, or educational purposes. Exempt sales include the
116.16sale of prepared food, candy, and soft drinks at the fund-raising event.
116.17(b) This exemption is limited in the following manner:
116.18(1) it does not apply to admission charges for events involving bingo or other gambling
116.19activities or to charges for use of amusement devices involving bingo or other gambling
116.20activities;
116.21(2) all gross receipts are taxable if the profits are not used solely and exclusively for
116.22charitable, religious, or educational purposes;
116.23(3) it does not apply unless the organization keeps a separate accounting record, including
116.24receipts and disbursements from each fund-raising event that documents all deductions from
116.25gross receipts with receipts and other records;
116.26(4) it does not apply to any sale made by or in the name of a nonprofit corporation as
116.27the active or passive agent of a person that is not a nonprofit corporation;
116.28(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;
116.29(6) it does not apply to fund-raising events conducted on premises leased for more than
116.30five ten days but less than 30 days; and
117.1(7) it does not apply if the risk of the event is not borne by the nonprofit organization
117.2and the benefit to the nonprofit organization is less than the total amount of the state and
117.3local tax revenues forgone by this exemption.
117.4(c) For purposes of this subdivision, a "nonprofit organization" means any unit of
117.5government, corporation, society, association, foundation, or institution organized and
117.6operated for charitable, religious, educational, civic, fraternal, and senior citizens' or veterans'
117.7purposes, no part of the net earnings of which inures to the benefit of a private individual.
117.8(d) For purposes of this subdivision, "fund-raising events" means activities of limited
117.9duration, not regularly carried out in the normal course of business, that attract patrons for
117.10community, social, and entertainment purposes, such as auctions, bake sales, ice cream
117.11socials, block parties, carnivals, competitions, concerts, concession stands, craft sales,
117.12bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion shows, festivals,
117.13galas, special event workshops, sporting activities such as marathons and tournaments, and
117.14similar events. Fund-raising events do not include the operation of a regular place of business
117.15in which services are provided or sales are made during regular hours such as bookstores,
117.16thrift stores, gift shops, restaurants, ongoing Internet sales, regularly scheduled classes, or
117.17other activities carried out in the normal course of business.
117.18EFFECTIVE DATE.This section is effective for sales and purchases made after June
117.1930, 2017.

117.20    Sec. 16. Minnesota Statutes 2016, section 297A.70, is amended by adding a subdivision
117.21to read:
117.22    Subd. 20. City celebrations. (a) Sales of tangible personal property or services and
117.23admissions charges to a city-designated annual city celebration designed to promote
117.24community spirit and cooperation are exempt. Exempt sales include the sale of prepared
117.25food, candy, soft drinks, malt liquor and wine as defined in section 340A.101, subdivisions
117.2616, 19, and 27, at the event. The governing board of a statutory or home rule charter city
117.27with a population of less than 30,000 may designate one event in each calendar year as the
117.28annual city celebration that qualifies for the exemption under this subdivision. For a
117.29celebration to qualify, it must meet the following requirements:
117.30(1) the event must be held on consecutive days, not to exceed ten days in total;
117.31(2) the event must be run either by the city or by a nonprofit organization designated by
117.32the city;
118.1(3) all gross receipts of the event are recorded as such, in accordance with generally
118.2accepted accounting practice on the books of the city or the designated nonprofit organization;
118.3and
118.4(4) the entire proceeds, less the necessary expenses, will be distributed to one or more
118.5of the following for charitable, educational, civic, or governmental purposes:
118.6(i) the city's general fund;
118.7(ii) a nonprofit 501(c)(3) organization to promote its primary mission; or
118.8(iii) a nonprofit 501(c)(4) organization to promote its primary mission, however, no
118.9revenues from this event may be used by the organization for lobbying or political activities.
118.10(b) This exemption is limited in the following manner:
118.11(1) it does not apply to admission charges for events involving bingo or other gambling
118.12activities or to charges for use of amusement devices involving bingo or other gambling
118.13activities;
118.14(2) all gross receipts are taxable if the profits are not used solely and exclusively for
118.15charitable, educational, civic, or governmental purposes; and
118.16(3) it does not apply unless the city or designated nonprofit organization keeps a separate
118.17accounting record, including receipts and disbursements for all events included in the
118.18celebration that documents all deductions from gross receipts with receipts and other records.
118.19(c) For purposes of this subdivision, "nonprofit organization" means any unit of
118.20government, corporation, society, association, foundation, or institution organized and
118.21operated for charitable, religious, educational, civic, fraternal, and senior citizens' or veterans'
118.22purposes, no part of the net earnings of which inures to the benefit of a private individual.
118.23(d) For purposes of this subdivision, "city celebration" means any of the following
118.24activities or combination of activities of limited duration, not regularly carried out in the
118.25normal course of business, that attract patrons for community, social, and entertainment
118.26purposes, such as parades, auctions, bake sales, ice cream socials, block parties, carnivals,
118.27competitions, concerts, concession stands, craft sales, bazaars, dinners, dances, fairs, fashion
118.28shows, festivals, galas, special event workshops, sporting activities such as marathons and
118.29tournaments, and similar events. A city celebration does not include the operation of a
118.30regular place of business in which services are provided or sales are made during regular
118.31hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet sales, or
118.32regularly scheduled activities carried out in the normal course of business.
119.1EFFECTIVE DATE.This section is effective for sales and purchases made after June
119.230, 2017.

119.3    Sec. 17. Minnesota Statutes 2016, section 297A.70, is amended by adding a subdivision
119.4to read:
119.5    Subd. 21. Ice arenas and rinks. Sales to organizations that exist primarily for the purpose
119.6of operating ice arenas or rinks that are part of the Duluth Heritage Sports Center and are
119.7used for youth and high school programs are exempt if the organization is a private, nonprofit
119.8corporation exempt from federal income taxation under section 501(c)(3) of the Internal
119.9Revenue Code.
119.10EFFECTIVE DATE.This section is effective for sales and purchases made after June
119.1130, 2017.

119.12    Sec. 18. Minnesota Statutes 2016, section 297A.71, subdivision 44, is amended to read:
119.13    Subd. 44. Building materials, capital projects. (a) Materials and supplies used or
119.14consumed in and equipment incorporated into the construction or improvement of a capital
119.15project funded partially or wholly under section 297A.9905 are exempt, provided that the
119.16project has a total construction cost of at least $40,000,000 within a 24-month period.
119.17(b) Materials and supplies used or consumed in and equipment incorporated into the
119.18construction, remodeling, expansion, or improvement of an ice arena or other buildings or
119.19facilities owned and operated by the city of Plymouth are exempt. For purposes of this
119.20paragraph, "facilities" include municipal streets and facilities associated with streets including
119.21but not limited to lighting, curbs and gutters, and sidewalks. The total amount of refund on
119.22all building materials, supplies, and equipment that the city may apply for under this
119.23paragraph is $2,500,000.
119.24(c) The tax on purchases exempt under this provision must be imposed and collected as
119.25if the rate under section 297A.62, subdivision 1, applied and then refunded in the manner
119.26provided in section 297A.75.
119.27EFFECTIVE DATE.This section is effective retroactively for sales and purchases
119.28made after January 1, 2013.

120.1    Sec. 19. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision
120.2to read:
120.3    Subd. 49. Construction materials purchased by contractors; exemption for certain
120.4entities. (a) Building, construction, or reconstruction materials, supplies, and equipment
120.5purchased by a contractor, subcontractor, or builder and used or consumed in or incorporated
120.6into buildings or facilities used principally by the following entities are exempt:
120.7(1) school districts, as defined under section 297A.70, subdivision 2, paragraph (c);
120.8(2) local governments, as defined under section 297A.70, subdivision 2, paragraph (d);
120.9(3) hospitals and nursing homes owned and operated by political subdivisions of the
120.10state, as defined under section 297A.70, subdivision 2, paragraph (a), clause (3);
120.11(4) public libraries; library systems; multicounty, multitype library systems, as defined
120.12in section 134.001; and county law libraries under chapter 134A;
120.13(5) nonprofit groups, as defined under section 297A.70, subdivision 4;
120.14(6) hospitals, outpatient surgical centers, and critical access dental providers, as defined
120.15under section 297A.70, subdivision 7; and
120.16(7) nursing homes and boarding care homes, as defined under section 297A.70,
120.17subdivision 18.
120.18(b) Materials, supplies, and equipment used in the construction, reconstruction, repair,
120.19maintenance, or improvement of public infrastructure of any kind including, but not limited
120.20to, roads, bridges, culverts, drinking water facilities, and wastewater facilities purchased
120.21by a contractor or subcontractor of the following entities are exempt:
120.22(1) school districts, as defined under section 297A.70, subdivision 2, paragraph (c); or
120.23(2) local governments, as defined under section 297A.70, subdivision 2, paragraph (d).
120.24(c) The tax on purchases exempt under this subdivision must be imposed and collected
120.25as if the rate under section 297A.62, subdivision 1, applied, and then refunded in the manner
120.26provided in section 297A.75.
120.27EFFECTIVE DATE.This section is effective for sales and purchases made after June
120.2830, 2017.

121.1    Sec. 20. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision
121.2to read:
121.3    Subd. 50. Properties destroyed by fire. Building materials and supplies used in, and
121.4equipment incorporated into, the construction or replacement of real property that is located
121.5in Madelia affected by the fire on February 3, 2016, are exempt. The tax must be imposed
121.6and collected as if the rate under section 297A.62, subdivision 1, applied and then refunded
121.7in the manner provided in section 297A.75.
121.8EFFECTIVE DATE.This section is effective retroactively for sales and purchases
121.9made after December 31, 2015, and before July 1, 2018.

121.10    Sec. 21. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision
121.11to read:
121.12    Subd. 51. Properties destroyed by fire. (a) Building materials and supplies used in,
121.13and equipment incorporated into, the construction or replacement of real property that is
121.14located in Melrose affected by the fire on September 8, 2016, are exempt.
121.15(b) For sales and purchases made after September 30, 2016, and before April 1, 2017,
121.16the tax must be imposed and collected as if the rate under section 297A.62, subdivision 1,
121.17applied and then refunded in the manner provided in section 297A.75.
121.18EFFECTIVE DATE.This section is effective retroactively for sales and purchases
121.19made after September 30, 2016, and before January 1, 2019, except that the refund provisions
121.20of paragraph (b) are effective for sales and purchases made after September 30, 2016, and
121.21before April 1, 2017.

121.22    Sec. 22. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision
121.23to read:
121.24    Subd. 52. Building materials; Major League Soccer stadium. Materials and supplies
121.25used or consumed in, and equipment incorporated into, the construction of a Major League
121.26Soccer stadium and related infrastructure constructed in the city of St. Paul are exempt.
121.27This subdivision expires one year after the date the first Major League Soccer game is played
121.28in the stadium.
121.29EFFECTIVE DATE.This section is effective for sales and purchases made after the
121.30day following final enactment.

122.1    Sec. 23. Minnesota Statutes 2016, section 297A.75, subdivision 1, is amended to read:
122.2    Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the following
122.3exempt items must be imposed and collected as if the sale were taxable and the rate under
122.4section 297A.62, subdivision 1, applied. The exempt items include:
122.5    (1) building materials for an agricultural processing facility exempt under section
122.6297A.71, subdivision 13 ;
122.7    (2) building materials for mineral production facilities exempt under section 297A.71,
122.8subdivision 14 ;
122.9    (3) building materials for correctional facilities under section 297A.71, subdivision 3;
122.10    (4) building materials used in a residence for disabled veterans exempt under section
122.11297A.71, subdivision 11 ;
122.12    (5) elevators and building materials exempt under section 297A.71, subdivision 12;
122.13    (6) materials and supplies for qualified low-income housing under section 297A.71,
122.14subdivision 23 ;
122.15    (7) materials, supplies, and equipment for municipal electric utility facilities under
122.16section 297A.71, subdivision 35;
122.17    (8) equipment and materials used for the generation, transmission, and distribution of
122.18electrical energy and an aerial camera package exempt under section 297A.68, subdivision
122.1937;
122.20    (9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph
122.21(a), clause (10);
122.22    (10) materials, supplies, and equipment for construction or improvement of projects and
122.23facilities under section 297A.71, subdivision 40;
122.24(11) materials, supplies, and equipment for construction, improvement, or expansion
122.25of:
122.26(i) an aerospace defense manufacturing facility exempt under Minnesota Statutes 2014,
122.27section 297A.71, subdivision 42;
122.28(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision
122.2945 ;
122.30(iii) a research and development facility exempt under Minnesota Statutes 2014, section
122.31297A.71, subdivision 46; and
123.1(iv) an industrial measurement manufacturing and controls facility exempt under
123.2Minnesota Statutes 2014, section 297A.71, subdivision 47;
123.3(12) enterprise information technology equipment and computer software for use in a
123.4qualified data center exempt under section 297A.68, subdivision 42;
123.5(13) materials, supplies, and equipment for qualifying capital projects under section
123.6297A.71, subdivision 44 ;
123.7(14) items purchased for use in providing critical access dental services exempt under
123.8section 297A.70, subdivision 7, paragraph (c); and
123.9(15) items and services purchased under a business subsidy agreement for use or
123.10consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
123.1144 .;
123.12(16) building construction or reconstruction materials, supplies, and equipment purchased
123.13by an entity eligible under section 297A.71, subdivision 49;
123.14(17) building materials, equipment, and supplies for constructing or replacing real
123.15property exempt under section 297A.71, subdivision 50; and
123.16(18) building materials, equipment, and supplies for constructing or replacing real
123.17property exempt under section 297A.71, subdivision 51, paragraph (b).
123.18EFFECTIVE DATE.(a) The amendment adding clause (16) is effective for sales and
123.19purchases made after June 30, 2017.
123.20(b) The amendment adding clause (17) is effective retroactively for sales and purchases
123.21made after December 31, 2015.
123.22(c) The amendment adding clause (18) is effective retroactively for sales and purchases
123.23made after September 30, 2016.

123.24    Sec. 24. Minnesota Statutes 2016, section 297A.75, subdivision 2, is amended to read:
123.25    Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the
123.26commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must
123.27be paid to the applicant. Only the following persons may apply for the refund:
123.28    (1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;
123.29    (2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
123.30    (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
123.31provided in United States Code, title 38, chapter 21;
124.1    (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
124.2property;
124.3    (5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;
124.4    (6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a
124.5joint venture of municipal electric utilities;
124.6    (7) for subdivision 1, clauses (8), (11), (12), and (15), the owner of the qualifying
124.7business; and
124.8    (8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the governmental
124.9entity that owns or contracts for the project or facility.;
124.10    (9) for subdivision 1, clause (16), the applicant must be the entity eligible under section
124.11297A.71, subdivision 49;
124.12    (10) for subdivision 1, clause (17), the applicant must be the owner or developer of the
124.13building or project; and
124.14    (11) for subdivision 1, clause (18), the applicant must be the owner or developer of the
124.15building or project.
124.16EFFECTIVE DATE.(a) The amendment adding clause (9) is effective for sales and
124.17purchases made after June 30, 2017.
124.18(b) The amendment adding clause (10) is effective retroactively for sales and purchases
124.19made after December 31, 2015.
124.20(c) The amendment adding clause (11) is effective retroactively for sales and purchases
124.21made after September 30, 2016.

124.22    Sec. 25. Minnesota Statutes 2016, section 297A.75, subdivision 3, is amended to read:
124.23    Subd. 3. Application. (a) The application must include sufficient information to permit
124.24the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor,
124.25or builder, under subdivision 1, clauses (3) to (13), or (15), (16), (17), or (18), the contractor,
124.26subcontractor, or builder must furnish to the refund applicant a statement including the cost
124.27of the exempt items and the taxes paid on the items unless otherwise specifically provided
124.28by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under
124.29this section.
124.30    (b) An applicant may not file more than two applications per calendar year for refunds
124.31for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
125.1EFFECTIVE DATE.This section is effective for sales and purchases made after June
125.230, 2017.

125.3    Sec. 26. Minnesota Statutes 2016, section 297A.75, subdivision 5, is amended to read:
125.4    Subd. 5. Appropriation. (a) The amount required to make the refunds is annually
125.5appropriated to the commissioner.
125.6(b) For fiscal years 2018 and 2019 only, revenues dedicated under the Minnesota
125.7Constitution, article XI, section 15, shall not be reduced for any portion of the refunds paid
125.8for the following exemptions:
125.9(1) the exemption under section 297A.71, subdivision 44, paragraph (b);
125.10(2) the expansion of the exemption under section 297A.68, subdivision 44, due to section
125.1130; and
125.12(3) the exemptions in section 297A.71, subdivisions 49, 50, and 51.
125.13EFFECTIVE DATE.This section is effective the day following final enactment.

125.14    Sec. 27. Minnesota Statutes 2016, section 297A.94, is amended to read:
125.15297A.94 DEPOSIT OF REVENUES.
125.16(a) Except as provided in this section, the commissioner shall deposit the revenues,
125.17including interest and penalties, derived from the taxes imposed by this chapter in the state
125.18treasury and credit them to the general fund.
125.19(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
125.20account in the special revenue fund if:
125.21(1) the taxes are derived from sales and use of property and services purchased for the
125.22construction and operation of an agricultural resource project; and
125.23(2) the purchase was made on or after the date on which a conditional commitment was
125.24made for a loan guaranty for the project under section 41A.04, subdivision 3.
125.25The commissioner of management and budget shall certify to the commissioner the date on
125.26which the project received the conditional commitment. The amount deposited in the loan
125.27guaranty account must be reduced by any refunds and by the costs incurred by the Department
125.28of Revenue to administer and enforce the assessment and collection of the taxes.
126.1(c) The commissioner shall deposit the revenues, including interest and penalties, derived
126.2from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3,
126.3paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:
126.4(1) first to the general obligation special tax bond debt service account in each fiscal
126.5year the amount required by section 16A.661, subdivision 3, paragraph (b); and
126.6(2) after the requirements of clause (1) have been met, the balance to the general fund.
126.7(d) The commissioner shall deposit the revenues, including interest and penalties,
126.8collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
126.9general fund. By July 15 of each year the commissioner shall transfer to the highway user
126.10tax distribution fund an amount equal to the excess fees collected under section 297A.64,
126.11subdivision 5 , for the previous calendar year.
126.12(e) 72.43 percent of the revenues, including interest and penalties, transmitted to the
126.13commissioner under section 297A.65, must be deposited by the commissioner in the state
126.14treasury as follows:
126.15(1) 50 percent of the receipts must be deposited in the heritage enhancement account in
126.16the game and fish fund, and may be spent only on activities that improve, enhance, or protect
126.17fish and wildlife resources, including conservation, restoration, and enhancement of land,
126.18water, and other natural resources of the state;
126.19(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
126.20be spent only for state parks and trails;
126.21(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
126.22be spent only on metropolitan park and trail grants;
126.23(4) three percent of the receipts must be deposited in the natural resources fund, and
126.24may be spent only on local trail grants; and
126.25(5) two percent of the receipts must be deposited in the natural resources fund, and may
126.26be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,
126.27and the Duluth Zoo.
126.28(f) The revenue dedicated under paragraph (e) may not be used as a substitute for
126.29traditional sources of funding for the purposes specified, but the dedicated revenue shall
126.30supplement traditional sources of funding for those purposes. Land acquired with money
126.31deposited in the game and fish fund under paragraph (e) must be open to public hunting
126.32and fishing during the open season, except that in aquatic management areas or on lands
126.33where angling easements have been acquired, fishing may be prohibited during certain times
127.1of the year and hunting may be prohibited. At least 87 percent of the money deposited in
127.2the game and fish fund for improvement, enhancement, or protection of fish and wildlife
127.3resources under paragraph (e) must be allocated for field operations.
127.4(g) The commissioner must deposit the revenues, including interest and penalties minus
127.5any refunds, derived from the sale of items regulated under section 624.20, subdivision 1,
127.6that may be sold to persons 18 years old or older and that are not prohibited from use by
127.7the general public under section 624.21, in the state treasury and credit:
127.8(1) 25 percent to the volunteer fire assistance grant account established under section
127.988.068;
127.10(2) 25 percent to the fire safety account established under section 297I.06, subdivision
127.113; and
127.12(3) the remainder to the general fund.
127.13For purposes of this paragraph, the percentage of total sales and use tax revenue derived
127.14from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be
127.15sold to persons 18 years old or older and are not prohibited from use by the general public
127.16under section 624.21, is a set percentage of the total sales and use tax revenues collected in
127.17the state, with the percentage determined under section 28.
127.18(g) (h) The revenues deposited under paragraphs (a) to (f) (g) do not include the revenues,
127.19including interest and penalties, generated by the sales tax imposed under section 297A.62,
127.20subdivision 1a , which must be deposited as provided under the Minnesota Constitution,
127.21article XI, section 15.
127.22EFFECTIVE DATE.This section is effective for sales and purchases made after
127.23December 31, 2017.

127.24    Sec. 28. CALCULATION OF THE PERCENT OF SALES TAX REVENUE
127.25ATTRIBUTABLE TO THE SALE OF CERTAIN FIREWORKS-RELATED ITEMS.
127.26By December 1, 2017, the commissioner of revenue must estimate the percentage of
127.27total sales tax revenues collected in calendar year 2016 that is attributable to the sales and
127.28purchases of items regulated under Minnesota Statutes, section 624.20, subdivision 1, that
127.29are allowed to be sold to persons 18 years old or older and that are not prohibited from use
127.30by the general public under section 624.21. When making the determination, the
127.31commissioner may consult with representatives from producers and retailers, industry trade
127.32groups, and the most recently available national and state information. The commissioner's
128.1decision is final. The commissioner's determination under this section is not a rule and is
128.2not subject to Minnesota Statutes, chapter 14, including section 14.386.
128.3EFFECTIVE DATE.This section is effective the day following final enactment.

128.4    Sec. 29. SALES TAX EXEMPTION FOR CONSTRUCTION MATERIALS USED
128.5BY A NONPROFIT ECONOMIC DEVELOPMENT CORPORATION.
128.6    Subdivision 1. Exemption; refund. Materials and supplies used or consumed in and
128.7equipment incorporated into the construction of a retail development consisting of retail
128.8space for a grocery store, fueling center, or other retail space by a nonprofit economic
128.9development corporation that is a 501(c)(3) organization are exempt from sales and use tax
128.10under Minnesota Statutes, chapter 297A, provided that the development is located in a city
128.11with no grocery store and the city is at least 20 miles from another city with a grocery store.
128.12The exemption applies to materials, supplies, and equipment purchased after January 1,
128.132013, and before January 1, 2017. The tax must be imposed and collected as if the rate in
128.14Minnesota Statutes, section 297A.62, applied and the nonprofit economic development
128.15corporation must apply for the refund of the tax in the same manner as provided under
128.16Minnesota Statutes, section 297A.75, subdivision 1, clause (11).
128.17    Subd. 2. Appropriation. The amount required to pay the refunds under subdivision 1
128.18is appropriated from the general fund to the commissioner of revenue.
128.19EFFECTIVE DATE.This section is effective the day following final enactment and
128.20applies retroactively to sales and purchases made after January 1, 2013, and before January
128.211, 2017.

128.22    Sec. 30. EXEMPTION FROM JOB EXPANSION PROGRAM PROVISIONS.
128.23(a) Notwithstanding the seven-year certification period under Minnesota Statutes, section
128.24116J.8738, subdivision 3, the certification period for an eligible wholesale electronic
128.25component distribution center investing a minimum of $200,000,000 and constructing a
128.26facility at least 700,000 square feet in size is effective for the ten-year period beginning on
128.27the first day of the calendar month immediately following the date that the commissioner
128.28informs the business of the award of the benefit.
128.29(b) Notwithstanding the sales tax exemption limitations under Minnesota Statutes, section
128.30116J.8738, subdivision 4, the sales tax exemption for an eligible electronic component
128.31distribution center investing a minimum of $200,000,000 and constructing a facility at least
129.1700,000 square feet in size may be authorized up to $5,000,000 annually and up to
129.2$30,000,000 during the total period of the agreement.
129.3EFFECTIVE DATE.This section is effective July 1, 2017.

129.4    Sec. 31. CERTAIN REIMBURSEMENT AUTHORIZED; CONSIDERED
129.5OPERATING OR CAPITAL EXPENSES.
129.6    Subdivision 1. Reimbursement authorized. (a) An amount equivalent to the taxes paid
129.7under Minnesota Statutes, chapter 297A, and any local taxes administered by the Department
129.8of Revenue, on purchases of tangible personal property, nonresidential parking services,
129.9and lodging, as these terms are defined in Minnesota Statutes, chapter 297A, used and
129.10consumed in connection with Super Bowl LII or related events sponsored by the National
129.11Football League or its affiliates, will be reimbursed by the Minnesota Sports Facilities
129.12Authority up to $1,600,000, if made after June 30, 2016, and before March 1, 2018. Only
129.13purchases made by the Minnesota Super Bowl Host Committee, the National Football
129.14League or its affiliates, or their employees or independent contractors, qualify to be
129.15reimbursed under this section.
129.16(b) For purposes of this subdivision:
129.17(1) "employee or independent contractor" means only those employees or independent
129.18contractors that make qualifying purchases that are reimbursed by the Minnesota Super
129.19Bowl Host Committee or the National Football League or its affiliates; and
129.20(2) "related events sponsored by the National Football League or its affiliates" includes
129.21but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate, NFL Honors,
129.22and NFL House.
129.23    Subd. 2. Operating reserve and capital reserve fund. Notwithstanding the requirements
129.24of Minnesota Statutes, section 473J.13, subdivisions 2 and 4, up to $1,600,000 of the balance
129.25in the operating reserve or capital reserve fund may be used for the purposes of paying
129.26reimbursements authorized under subdivision 1.
129.27EFFECTIVE DATE.This section is effective for sales and purchases made after June
129.2830, 2016, and before March 1, 2018.

129.29    Sec. 32. REIMBURSEMENTS TO CERTAIN CONSTITUTIONALLY DEDICATED
129.30FUNDS FOR EXPANDED SALES TAX EXEMPTIONS.
129.31The commissioner of management and budget, by June 15 in fiscal years 2018 and 2019
129.32only, shall increase the revenues transferred from the general fund as required under the
130.1Minnesota Constitution, article XI, section 15, an amount equal to the estimated amount of
130.2reduction to these revenues for that fiscal year due to the enactment of new sales tax
130.3exemptions or the expansion of existing sales tax exemptions under sections 7, 8, 10 to 17,
130.4and 22, and to changes in tobacco taxes under Minnesota Statutes, chapter 297F, in article
130.510. The commissioner of revenue shall make the estimate of this revenue reduction by June
130.61 of each fiscal year and inform the commissioner of management and budget. The
130.7appropriations under this section are onetime and not added to the base budget.
130.8EFFECTIVE DATE.This section is effective the day following final enactment.

130.9    Sec. 33. REPORT ON TAXATION OF STADIUM SUITES.
130.10The commissioner of revenue shall prepare a report on the sales and use tax treatment
130.11of the sale of suites and suite licenses in professional athletic facilities in other states. The
130.12report must be completed on or before February 1, 2018, and provided to the chairs and
130.13ranking minority members of the legislative committees with jurisdiction over taxes. The
130.14purpose of the report is to determine the range of sales and use tax treatment of these items
130.15across the country, and how Minnesota's current tax treatment of suites and suite licenses
130.16fits into that range.
130.17EFFECTIVE DATE.This section is effective the day following final enactment.

130.18    Sec. 34. SEVERABILITY.
130.19If any provision of sections 3 to 6 or the application thereof is held invalid, such invalidity
130.20shall not affect the provisions or applications of the sections that can be given effect without
130.21the invalid provisions or applications.
130.22EFFECTIVE DATE.This section is effective the day following final enactment.

130.23    Sec. 35. APPROPRIATION.
130.24$1,392,258 in fiscal year 2018 is appropriated from the general fund to the commissioner
130.25of revenue for a grant to the city of Melrose for the following purposes:
130.26(1) $450,000 for municipal street and utility reconstruction;
130.27(2) $250,000 for unreimbursed costs of hazardous materials removal; and
130.28(3) $692,258 for tax abatements for reconstructed buildings.
130.29The appropriation under this section is onetime and is not added to the base budget.
130.30EFFECTIVE DATE.This section is effective the day following final enactment.

131.1    Sec. 36. EFFECTIVE DATE.
131.2(a) The provisions of sections 3 to 6 are effective at the earlier of:
131.3(1) a decision by the United States Supreme Court modifying its decision in Quill Corp.
131.4v. North Dakota, 504 U.S. 298 (1992) so that a state may require retailers without a physical
131.5presence in the state to collect and remit sales tax; or
131.6(2) July 1, 2020.
131.7(b) Notwithstanding paragraph (a) or the provisions of sections 3 to 6, if a federal law
131.8is enacted authorizing a state to impose a requirement to collect and remit sales tax on
131.9retailers without a physical presence in the state, the commissioner must enforce the
131.10provisions of this section and sections 3 to 6 to the extent allowed under federal law.
131.11(c) The commissioner of revenue shall notify the revisor of statutes when either of the
131.12provisions in paragraph (a) or (b) apply.


131.15    Section 1. [103F.485] RIPARIAN BUFFER COMPENSATION PROGRAM.
131.16    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
131.17the meanings given.
131.18(b) "Board" means the Board of Water and Soil Resources.
131.19(c) "Claimant" means:
131.20(1) a person, as defined in section 290.01, subdivision 2, who owns agricultural land in
131.21Minnesota and files an application under this section; or
131.22(2) a purchaser or grantee of property sold or transferred after the original application
131.23was submitted.
131.24(d) "Commissioner" means the commissioner of revenue.
131.25(e) "Program" means the riparian buffer compensation program established in this section.
131.26(f) "Public waters buffer" means a 50-foot average width, 30-foot minimum width
131.27continuous area consisting of perennially rooted vegetation, excluding invasive plants and
131.28noxious weeds, adjacent to public waters, as defined in section 103G.005, subdivision 15,
131.29that protects the water resources of the state from runoff pollution; stabilizes soils, shores,
131.30and banks; and protects or provides riparian corridors.
132.1    Subd. 2. Eligibility requirements. Land may be enrolled in the program if all of the
132.2following conditions are met:
132.3(1) the land is tillable land classified as 2a under section 273.13, subdivision 23;
132.4(2) a public waters buffer is required to be maintained on the property by the landowner
132.5pursuant to section 103F.48, subdivision 3, and the public waters buffer is identified and
132.6mapped on a buffer protection map established and maintained by the commissioner of
132.7natural resources;
132.8(3) the tillable land is converted to a public waters buffer during calendar years 2015
132.9through 2018 to comply with section 103F.48;
132.10(4) there are no delinquent property taxes on the land; and
132.11(5) an application is submitted to the commissioner as specified in subdivision 3 on or
132.12before April 1, 2019.
132.13    Subd. 3. Applications. (a) An owner of agricultural land in Minnesota may apply to
132.14enroll agricultural land in the program under this section. The application shall be on a form
132.15prescribed by the commissioner and must include the following information: (1) the
132.16landowner's Social Security number and date of birth, or state or federal business tax
132.17identification number, (2) the landowner's address, (3) the landowner's signature, (4) the
132.18county parcel identification numbers for the tax parcels that completely contain the
132.19agricultural land on which a public waters buffer is required to be established and maintained,
132.20(5) the number of acres of tillable class 2a agricultural land converted to a public waters
132.21buffer during calendar years 2015 through 2018 to comply with section 103F.48, rounded
132.22to the nearest whole acre, (6) the signature of an employee of the soil and water conservation
132.23district where the land is located, certifying the accuracy of the parcel identification numbers
132.24and the converted acres figure included in the application, and (7) any other information
132.25the commissioner deems necessary.
132.26(b) The commissioner shall review the application and determine if the property is
132.27eligible for enrollment in the program. The commissioner shall notify the claimant of the
132.28determination within 90 days of receipt of the completed application.
132.29(c) Social Security numbers collected from individuals under this section are private
132.30data as provided in section 13.355. The federal business tax identification number and date
132.31of birth data collected under this section are private data on individuals or nonpublic data,
132.32as defined in section 13.02, subdivisions 9 and 12, but may be shared with county treasurers
132.33for purposes of the revenue recapture under chapter 270A.
133.1    Subd. 4. Annual certification. On or before February 15, 2019, and each February 15
133.2thereafter, the commissioner shall send each claimant a certification form. The claimant
133.3must sign the certification, attesting that the requirements and conditions the commissioner
133.4deems necessary for continued enrollment in the program are currently being met, and must
133.5return the signed certification form to the commissioner by April 1 of the same year. If the
133.6claimant does not return the annual certification form by the due date, the commissioner
133.7must notify the claimant that the land will be terminated from the program if the certification
133.8is not received within 30 days.
133.9    Subd. 5. Notification to commissioner of noncompliance. On or before June 1, 2019,
133.10and each June 1 thereafter, the commissioner shall provide by electronic means to the board
133.11data sufficient for a county, watershed district, or the board to identify claimants enrolled
133.12in the program. The board shall notify the commissioner of any claimant that has been
133.13determined by a county, watershed district, or the board to be noncompliant with the
133.14requirements of section 103F.48 on or before August 1 of each year in which the certification
133.15under subdivision 4 is due.
133.16    Subd. 6. Length of enrollment. Land approved for enrollment under subdivision 3,
133.17paragraph (b), remains in the program for five years unless terminated under subdivision
133.1810.
133.19    Subd. 7. Payment amount. A claimant is eligible to receive an annual payment equal
133.20to $40 per acre for each tillable acre converted a public waters buffer.
133.21    Subd. 8. Annual payment. The commissioner shall make the payments required under
133.22subdivision 7 annually on or before October 1 based on applications or certifications received
133.23on or before April 1 of that year. No future payment shall be made to a claimant for property
133.24after it has been terminated from the program. Interest at the annual rate determined under
133.25section 270C.40 shall be included with any payment not paid by the later of October 1 of
133.26the year the application or certification was due, or 180 days after the completed application
133.27or certification was filed.
133.28    Subd. 9. Multiple claimants. No more than one claimant is entitled to a payment under
133.29this section with respect to any tract, parcel, or piece of land that has been assigned the same
133.30parcel identification number. When enrolled agricultural land is owned by two or more
133.31persons, the owners must determine which person is eligible to claim the payments. In the
133.32case of property sold or transferred, the former owner and the purchaser or grantee may
133.33determine which person is eligible to claim the payments. If they cannot agree, the matter
133.34shall be referred to the commissioner, whose decision shall be final.
134.1    Subd. 10. Reasons for termination. (a) Agricultural land enrolled in the program may
134.2be terminated from the program for any of the following reasons:
134.3(1) there are delinquent taxes on the land;
134.4(2) the commissioner receives notification from the board of noncompliance under
134.5subdivision 5;
134.6(3) the claimant does not timely submit a certification form after being notified by the
134.7commissioner that the annual certification was not received by April l; or
134.8(4) the claimant voluntarily withdraws from the program.
134.9(b) The commissioner shall prepare a notice of termination for any land that is to be
134.10terminated from the program. The notice of termination must contain the parcel identification
134.11numbers, the reason for termination, and the effective date of termination. The commissioner
134.12shall mail the notice of the termination to the claimant at least 60 days before the effective
134.13date of termination.
134.14    Subd. 11. Compliance audit. The commissioner may examine any application or annual
134.15certification to ensure compliance with this section.
134.16    Subd. 12. Penalty. If the commissioner determines a claimant intentionally filed a false
134.17application or certification under this section, the commissioner shall notify the claimant
134.18of the determination and the penalty amount for which the claimant is liable. The penalty
134.19is equal to the total payments received while enrolled in the program, plus interest calculated
134.20from the date the payments were made at the annual rate determined under section 270C.40.
134.21The claimant has 90 days to satisfy the payment from the date on the notice of determination.
134.22If the penalty is not paid within the 90-day period, the commissioner shall certify the amount
134.23to the county auditor for collection as a part of the general ad valorem real property taxes
134.24on the land in the following taxes payable year.
134.25    Subd. 13. Appeal to Tax Court. Any person aggrieved by the commissioner's decision
134.26to deny an application for enrollment, to assess a penalty, to terminate land from the program,
134.27or to deny payment to a claimant may, within 60 days of the date on the notice of
134.28determination or notice of termination, or after 180 days of the submission of the application
134.29or annual certification if no determination is issued, appeal to the Tax Court under chapter
134.30271 as if the appeal is from an order of the commissioner.
134.31    Subd. 14. Appropriation. The amount necessary to make the payments under this section
134.32is annually appropriated to the commissioner from the general fund.
134.33EFFECTIVE DATE.This section is effective for payments made in 2018 and thereafter.

135.1    Sec. 2. Minnesota Statutes 2016, section 127A.45, subdivision 10, is amended to read:
135.2    Subd. 10. Payments to school nonoperating funds. Each fiscal year state general fund
135.3payments for a district nonoperating fund must be made at the current year aid payment
135.4percentage of the estimated entitlement during the fiscal year of the entitlement. This amount
135.5shall be paid in 12 six equal monthly installments beginning in July. The amount of the
135.6actual entitlement, after adjustment for actual data, minus the payments made during the
135.7fiscal year of the entitlement must be paid prior to October 31 of the following school year.
135.8The commissioner may make advance payments of debt service equalization aid and
135.9state-paid tax credits for a district's debt service fund earlier than would occur under the
135.10preceding schedule if the district submits evidence showing a serious cash flow problem in
135.11the fund. The commissioner may make earlier payments during the year and, if necessary,
135.12increase the percent of the entitlement paid to reduce the cash flow problem.
135.13EFFECTIVE DATE.This section is effective beginning with fiscal year 2019.

135.14    Sec. 3. Minnesota Statutes 2016, section 127A.45, subdivision 13, is amended to read:
135.15    Subd. 13. Aid payment percentage. Except as provided in subdivisions 10, 11, 12, 12a,
135.16and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A,
135.17120B, 121A, 122A, 123A, 123B, 124D, 124E, 125A, 125B, 126C, 134, and section 273.1392,
135.18shall be paid at the current year aid payment percentage of the estimated entitlement during
135.19the fiscal year of the entitlement. For the purposes of this subdivision, a district's estimated
135.20entitlement for special education aid under section 125A.76 for fiscal year 2014 and later
135.21equals 97.4 percent of the district's entitlement for the current fiscal year. The final adjustment
135.22payment, according to subdivision 9, must be the amount of the actual entitlement, after
135.23adjustment for actual data, minus the payments made during the fiscal year of the entitlement.
135.24EFFECTIVE DATE.This section is effective beginning with fiscal year 2019.

135.25    Sec. 4. [273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT.
135.26    Subdivision 1. Eligibility. All class 2a, 2b, and 2c property under section 273.13,
135.27subdivision 23, other than property consisting of the house, garage, and immediately
135.28surrounding one acre of land of an agricultural homestead, is eligible to receive the credit
135.29under this section.
135.30    Subd. 2. Credit amount. For each qualifying property, the school building bond
135.31agricultural credit is equal to 50 percent of the property's eligible net tax capacity multiplied
135.32by the school debt tax rate determined under section 275.08, subdivision 1b.
136.1    Subd. 3. Credit reimbursements. The county auditor shall determine the tax reductions
136.2allowed under this section within the county for each taxes payable year and shall certify
136.3that amount to the commissioner of revenue as a part of the abstracts of tax lists submitted
136.4under section 275.29. Any prior year adjustments shall also be certified on the abstracts of
136.5tax lists. The commissioner shall review the certifications for accuracy, and may make such
136.6changes as are deemed necessary, or return the certification to the county auditor for
136.7correction. The credit under this section must be used to reduce the school district net tax
136.8capacity-based property tax as provided in section 273.1393.
136.9    Subd. 4. Payment. The commissioner of revenue shall certify the total of the tax
136.10reductions granted under this section for each taxes payable year within each school district
136.11to the commissioner of education, who shall pay the reimbursement amounts to each school
136.12district as provided in section 273.1392.
136.13    Subd. 5. Appropriation. An amount sufficient to make the payments required by this
136.14section is annually appropriated from the general fund to the commissioner of education.
136.15EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

136.16    Sec. 5. Minnesota Statutes 2016, section 273.1392, is amended to read:
136.17273.1392 PAYMENT; SCHOOL DISTRICTS.
136.18The amounts of bovine tuberculosis credit reimbursements under section 273.113;
136.19conservation tax credits under section 273.119; disaster or emergency reimbursement under
136.20sections 273.1231 to 273.1235; homestead and agricultural credits under section sections
136.21273.1384 and 273.1387; aids and credits under section 273.1398; enterprise zone property
136.22credit payments under section 469.171; and metropolitan agricultural preserve reduction
136.23under section 473H.10 for school districts, shall be certified to the Department of Education
136.24by the Department of Revenue. The amounts so certified shall be paid according to section
136.25127A.45 , subdivisions 9, 10, and 13.
136.26EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

136.27    Sec. 6. Minnesota Statutes 2016, section 273.1393, is amended to read:
136.28273.1393 COMPUTATION OF NET PROPERTY TAXES.
136.29    Notwithstanding any other provisions to the contrary, "net" property taxes are determined
136.30by subtracting the credits in the order listed from the gross tax:
136.31    (1) disaster credit as provided in sections 273.1231 to 273.1235;
137.1    (2) powerline credit as provided in section 273.42;
137.2    (3) agricultural preserves credit as provided in section 473H.10;
137.3    (4) enterprise zone credit as provided in section 469.171;
137.4    (5) disparity reduction credit;
137.5    (6) conservation tax credit as provided in section 273.119;
137.6    (7) the school bond credit as provided in section 273.1387;
137.7    (8) agricultural credit as provided in section 273.1384;
137.8    (8) (9) taconite homestead credit as provided in section 273.135;
137.9    (9) (10) supplemental homestead credit as provided in section 273.1391; and
137.10    (10) (11) the bovine tuberculosis zone credit, as provided in section 273.113.
137.11    The combination of all property tax credits must not exceed the gross tax amount.
137.12EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

137.13    Sec. 7. Minnesota Statutes 2016, section 275.065, subdivision 3, is amended to read:
137.14    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare and
137.15the county treasurer shall deliver after November 10 and on or before November 24 each
137.16year, by first class mail to each taxpayer at the address listed on the county's current year's
137.17assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer,
137.18the treasurer may send the notice in electronic form or by electronic mail instead of on paper
137.19or by ordinary mail.
137.20    (b) The commissioner of revenue shall prescribe the form of the notice.
137.21    (c) The notice must inform taxpayers that it contains the amount of property taxes each
137.22taxing authority proposes to collect for taxes payable the following year. In the case of a
137.23town, or in the case of the state general tax, the final tax amount will be its proposed tax.
137.24The notice must clearly state for each city that has a population over 500, county, school
137.25district, regional library authority established under section 134.201, and metropolitan taxing
137.26districts as defined in paragraph (i), the time and place of a meeting for each taxing authority
137.27in which the budget and levy will be discussed and public input allowed, prior to the final
137.28budget and levy determination. The taxing authorities must provide the county auditor with
137.29the information to be included in the notice on or before the time it certifies its proposed
137.30levy under subdivision 1. The public must be allowed to speak at that meeting, which must
137.31occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone
138.1number for the taxing authority that taxpayers may call if they have questions related to the
138.2notice and an address where comments will be received by mail, except that no notice
138.3required under this section shall be interpreted as requiring the printing of a personal
138.4telephone number or address as the contact information for a taxing authority. If a taxing
138.5authority does not maintain public offices where telephone calls can be received by the
138.6authority, the authority may inform the county of the lack of a public telephone number and
138.7the county shall not list a telephone number for that taxing authority.
138.8    (d) The notice must state for each parcel:
138.9    (1) the market value of the property as determined under section 273.11, and used for
138.10computing property taxes payable in the following year and for taxes payable in the current
138.11year as each appears in the records of the county assessor on November 1 of the current
138.12year; and, in the case of residential property, whether the property is classified as homestead
138.13or nonhomestead. The notice must clearly inform taxpayers of the years to which the market
138.14values apply and that the values are final values;
138.15    (2) the items listed below, shown separately by county, city or town, and state general
138.16tax, agricultural homestead credit under section 273.1384, school building bond agricultural
138.17credit under section 273.1387, voter approved school levy, other local school levy, and the
138.18sum of the special taxing districts, and as a total of all taxing authorities:
138.19    (i) the actual tax for taxes payable in the current year; and
138.20    (ii) the proposed tax amount.
138.21    If the county levy under clause (2) includes an amount for a lake improvement district
138.22as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
138.23must be separately stated from the remaining county levy amount.
138.24    In the case of a town or the state general tax, the final tax shall also be its proposed tax
138.25unless the town changes its levy at a special town meeting under section 365.52. If a school
138.26district has certified under section 126C.17, subdivision 9, that a referendum will be held
138.27in the school district at the November general election, the county auditor must note next
138.28to the school district's proposed amount that a referendum is pending and that, if approved
138.29by the voters, the tax amount may be higher than shown on the notice. In the case of the
138.30city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately
138.31from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for
138.32the St. Paul Library Agency must be listed separately from the remaining amount of the
138.33city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be
138.34listed separately from the remaining amount of the county's levy. In the case of a parcel
139.1where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F
139.2applies, the proposed tax levy on the captured value or the proposed tax levy on the tax
139.3capacity subject to the areawide tax must each be stated separately and not included in the
139.4sum of the special taxing districts; and
139.5    (3) the increase or decrease between the total taxes payable in the current year and the
139.6total proposed taxes, expressed as a percentage.
139.7    For purposes of this section, the amount of the tax on homesteads qualifying under the
139.8senior citizens' property tax deferral program under chapter 290B is the total amount of
139.9property tax before subtraction of the deferred property tax amount.
139.10    (e) The notice must clearly state that the proposed or final taxes do not include the
139.11following:
139.12    (1) special assessments;
139.13    (2) levies approved by the voters after the date the proposed taxes are certified, including
139.14bond referenda and school district levy referenda;
139.15    (3) a levy limit increase approved by the voters by the first Tuesday after the first Monday
139.16in November of the levy year as provided under section 275.73;
139.17    (4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring
139.18after the date the proposed taxes are certified;
139.19    (5) amounts necessary to pay tort judgments against the taxing authority that become
139.20final after the date the proposed taxes are certified; and
139.21    (6) the contamination tax imposed on properties which received market value reductions
139.22for contamination.
139.23    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or the
139.24county treasurer to deliver the notice as required in this section does not invalidate the
139.25proposed or final tax levy or the taxes payable pursuant to the tax levy.
139.26    (g) If the notice the taxpayer receives under this section lists the property as
139.27nonhomestead, and satisfactory documentation is provided to the county assessor by the
139.28applicable deadline, and the property qualifies for the homestead classification in that
139.29assessment year, the assessor shall reclassify the property to homestead for taxes payable
139.30in the following year.
139.31    (h) In the case of class 4 residential property used as a residence for lease or rental
139.32periods of 30 days or more, the taxpayer must either:
140.1    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter,
140.2or lessee; or
140.3    (2) post a copy of the notice in a conspicuous place on the premises of the property.
140.4    The notice must be mailed or posted by the taxpayer by November 27 or within three
140.5days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer
140.6of the address of the taxpayer, agent, caretaker, or manager of the premises to which the
140.7notice must be mailed in order to fulfill the requirements of this paragraph.
140.8    (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
140.9districts" means the following taxing districts in the seven-county metropolitan area that
140.10levy a property tax for any of the specified purposes listed below:
140.11    (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446,
140.12473.521 , 473.547, or 473.834;
140.13    (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
140.14    (3) Metropolitan Mosquito Control Commission under section 473.711.
140.15    For purposes of this section, any levies made by the regional rail authorities in the county
140.16of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
140.17shall be included with the appropriate county's levy.
140.18    (j) The governing body of a county, city, or school district may, with the consent of the
140.19county board, include supplemental information with the statement of proposed property
140.20taxes about the impact of state aid increases or decreases on property tax increases or
140.21decreases and on the level of services provided in the affected jurisdiction. This supplemental
140.22information may include information for the following year, the current year, and for as
140.23many consecutive preceding years as deemed appropriate by the governing body of the
140.24county, city, or school district. It may include only information regarding:
140.25    (1) the impact of inflation as measured by the implicit price deflator for state and local
140.26government purchases;
140.27    (2) population growth and decline;
140.28    (3) state or federal government action; and
140.29    (4) other financial factors that affect the level of property taxation and local services
140.30that the governing body of the county, city, or school district may deem appropriate to
140.31include.
141.1    The information may be presented using tables, written narrative, and graphic
141.2representations and may contain instruction toward further sources of information or
141.3opportunity for comment.
141.4EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

141.5    Sec. 8. Minnesota Statutes 2016, section 275.07, subdivision 2, is amended to read:
141.6    Subd. 2. School district in more than one county levies; special requirements. (a) In
141.7school districts lying in more than one county, the clerk shall certify the tax levied to the
141.8auditor of the county in which the administrative offices of the school district are located.
141.9(b) The district must identify the portion of the school district levy that is levied for debt
141.10service at the time the levy is certified under this section. For the purposes of this paragraph,
141.11"levied for debt service" means levies authorized under sections 123B.53, 123B.535, and
141.12123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt excess levy reductions
141.13under section 475.61, subdivision 4, excluding debt service amounts necessary for repayment
141.14of other postemployment benefits under section 475.52, subdivision 6.
141.15EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

141.16    Sec. 9. Minnesota Statutes 2016, section 275.08, subdivision 1b, is amended to read:
141.17    Subd. 1b. Computation of tax rates. (a) The amounts certified to be levied against net
141.18tax capacity under section 275.07 by an individual local government unit shall be divided
141.19by the total net tax capacity of all taxable properties within the local government unit's
141.20taxing jurisdiction. The resulting ratio, the local government's local tax rate, multiplied by
141.21each property's net tax capacity shall be each property's net tax capacity tax for that local
141.22government unit before reduction by any credits.
141.23(b) The auditor must also determine the school debt tax rate for each school district equal
141.24to (1) the school debt service levy certified under section 275.07, subdivision 2, divided by
141.25(2) the total net tax capacity of all taxable property within the district.
141.26(c) Any amount certified to the county auditor to be levied against market value shall
141.27be divided by the total referendum market value of all taxable properties within the taxing
141.28district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by each
141.29property's referendum market value shall be each property's new referendum tax before
141.30reduction by any credits. For the purposes of this subdivision, "referendum market value"
141.31means the market value as defined in section 126C.01, subdivision 3.
141.32EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

142.1    Sec. 10. Minnesota Statutes 2016, section 276.04, subdivision 2, is amended to read:
142.2    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing of
142.3the tax statements. The commissioner of revenue shall prescribe the form of the property
142.4tax statement and its contents. The tax statement must not state or imply that property tax
142.5credits are paid by the state of Minnesota. The statement must contain a tabulated statement
142.6of the dollar amount due to each taxing authority and the amount of the state tax from the
142.7parcel of real property for which a particular tax statement is prepared. The dollar amounts
142.8attributable to the county, the state tax, the voter approved school tax, the other local school
142.9tax, the township or municipality, and the total of the metropolitan special taxing districts
142.10as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The
142.11amounts due all other special taxing districts, if any, may be aggregated except that any
142.12levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin,
142.13Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly
142.14under the appropriate county's levy. If the county levy under this paragraph includes an
142.15amount for a lake improvement district as defined under sections 103B.501 to 103B.581,
142.16the amount attributable for that purpose must be separately stated from the remaining county
142.17levy amount. In the case of Ramsey County, if the county levy under this paragraph includes
142.18an amount for public library service under section 134.07, the amount attributable for that
142.19purpose may be separated from the remaining county levy amount. The amount of the tax
142.20on homesteads qualifying under the senior citizens' property tax deferral program under
142.21chapter 290B is the total amount of property tax before subtraction of the deferred property
142.22tax amount. The amount of the tax on contamination value imposed under sections 270.91
142.23to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar
142.24amount of any special assessments, may be rounded to the nearest even whole dollar. For
142.25purposes of this section whole odd-numbered dollars may be adjusted to the next higher
142.26even-numbered dollar. The amount of market value excluded under section 273.11,
142.27subdivision 16 , if any, must also be listed on the tax statement.
142.28    (b) The property tax statements for manufactured homes and sectional structures taxed
142.29as personal property shall contain the same information that is required on the tax statements
142.30for real property.
142.31    (c) Real and personal property tax statements must contain the following information
142.32in the order given in this paragraph. The information must contain the current year tax
142.33information in the right column with the corresponding information for the previous year
142.34in a column on the left:
142.35    (1) the property's estimated market value under section 273.11, subdivision 1;
143.1    (2) the property's homestead market value exclusion under section 273.13, subdivision
143.235;
143.3    (3) the property's taxable market value under section 272.03, subdivision 15;
143.4    (4) the property's gross tax, before credits;
143.5    (5) for homestead agricultural properties, the credit credits under section sections
143.6273.1384 and 273.1387 ;
143.7    (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
143.8273.1391 ; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit
143.9received under section 273.135 must be separately stated and identified as "taconite tax
143.10relief"; and
143.11    (7) the net tax payable in the manner required in paragraph (a).
143.12    (d) If the county uses envelopes for mailing property tax statements and if the county
143.13agrees, a taxing district may include a notice with the property tax statement notifying
143.14taxpayers when the taxing district will begin its budget deliberations for the current year,
143.15and encouraging taxpayers to attend the hearings. If the county allows notices to be included
143.16in the envelope containing the property tax statement, and if more than one taxing district
143.17relative to a given property decides to include a notice with the tax statement, the county
143.18treasurer or auditor must coordinate the process and may combine the information on a
143.19single announcement.
143.20EFFECTIVE DATE.This section is effective beginning with taxes payable in 2018.

143.21    Sec. 11. Minnesota Statutes 2016, section 290A.04, subdivision 2, is amended to read:
143.22    Subd. 2. Homeowners; homestead credit refund. A claimant whose property taxes
143.23payable are in excess of the percentage of the household income stated below shall pay an
143.24amount equal to the percent of income shown for the appropriate household income level
143.25along with the percent to be paid by the claimant of the remaining amount of property taxes
143.26payable. The state refund equals the amount of property taxes payable that remain, up to
143.27the state refund amount shown below.

143.28 143.29 143.30	Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
143.31	$0 to 1,619	1.0 percent	15 percent	$	2,580
143.32	1,620 to 3,229	1.1 percent	15 percent	$	2,580
143.33	3,230 to 4,889	1.2 percent	15 percent	$	2,580
144.1	4,890 to 6,519	1.3 percent	20 percent	$	2,580
144.2	6,520 to 8,129	1.4 percent	20 percent	$	2,580
144.3	8,130 to 11,389	1.5 percent	20 percent	$	2,580
144.4	11,390 to 13,009	1.6 percent	20 percent	$	2,580
144.5	13,010 to 14,649	1.7 percent	20 percent	$	2,580
144.6	14,650 to 16,269	1.8 percent	20 percent	$	2,580
144.7	16,270 to 17,879	1.9 percent	25 percent	$	2,580
144.8	17,880 to 22,779	2.0 percent	25 percent	$	2,580
144.9	22,780 to 24,399	2.0 percent	30 percent	$	2,580
144.10	24,400 to 27,659	2.0 percent	30 percent	$	2,580
144.11	27,660 to 39,029	2.0 percent	35 percent	$	2,580
144.12	39,030 to 56,919	2.0 percent	35 percent	$	2,090
144.13	56,920 to 65,049	2.0 percent	40 percent	$	1,830
144.14	65,050 to 73,189	2.1 percent	40 percent	$	1,510
144.15	73,190 to 81,319	2.2 percent	40 percent	$	1,350
144.16	81,320 to 89,449	2.3 percent	40 percent	$	1,180
144.17	89,450 to 94,339	2.4 percent	45 percent	$	1,000
144.18	94,340 to 97,609	2.5 percent	45 percent	$	830
144.19	97,610 to 101,559	2.5 percent	50 percent	$	680
144.20	101,560 to 105,499	2.5 percent	50 percent	$	500

144.21 144.22 144.23	Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
144.24	$0 to 1,699	1.0 percent	10.695 percent	$	2,870
144.25	1,700 to 3,389	1.1 percent	10.695 percent	$	2,870
144.26	3,390 to 5,139	1.2 percent	10.695 percent	$	2,870
144.27	5,140 to 6,849	1.3 percent	14.26 percent	$	2,870
144.28	6,850 to 8,539	1.4 percent	14.26 percent	$	2,870
144.29	8,540 to 11,959	1.5 percent	14.26 percent	$	2,870
144.30	11,960 to 13,669	1.6 percent	14.26 percent	$	2,870
144.31	13,670 to 15,389	1.7 percent	14.26 percent	$	2,870
144.32	15,390 to 17,089	1.8 percent	14.26 percent	$	2,870
144.33	17,090 to 18,779	1.9 percent	17.825 percent	$	2,870
144.34	18,780 to 23,929	2.0 percent	17.825 percent	$	2,870
144.35	23,930 to 25,629	2.0 percent	21.39 percent	$	2,870
144.36	25,630 to 29,059	2.0 percent	21.39 percent	$	2,870
144.37	29,060 to 40,999	2.0 percent	24.955 percent	$	2,870
144.38	41,000 to 59,789	2.0 percent	24.955 percent	$	2,330
145.1	59,790 to 68,329	2.0 percent	28.52 percent	$	2,033
145.2	68,330 to 76,879	2.1 percent	28.52 percent	$	1,684
145.3	76,880 to 85,419	2.2 percent	28.52 percent	$	1,504
145.4	85,420 to 93,959	2.3 percent	28.52 percent	$	1,313
145.5	93,960 to 99,099	2.4 percent	32.085 percent	$	1,112
145.6	99,100 to 102,539	2.5 percent	32.085 percent	$	921
145.7	102,540 to 106,679	2.5 percent	35.65 percent	$	752
145.8	106,680 to 110,819	2.5 percent	35.65 percent	$	561

145.9    The payment made to a claimant shall be the amount of the state refund calculated under
145.10this subdivision. No payment is allowed if the claimant's household income is $105,500
145.11$110,820 or more.
145.12EFFECTIVE DATE.This section is effective for refunds based on taxes payable in
145.132018 and following years.

145.14    Sec. 12. Minnesota Statutes 2016, section 290A.04, subdivision 2a, is amended to read:
145.15    Subd. 2a. Renters. A claimant whose rent constituting property taxes exceeds the
145.16percentage of the household income stated below must pay an amount equal to the percent
145.17of income shown for the appropriate household income level along with the percent to be
145.18paid by the claimant of the remaining amount of rent constituting property taxes. The state
145.19refund equals the amount of rent constituting property taxes that remain, up to the maximum
145.20state refund amount shown below.

145.21 145.22 145.23	Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
145.24	$0 to 4,909	1.0 percent	5 percent	$	2,000
145.25	4,910 to 6,529	1.0 percent	10 percent	$	2,000
145.26	6,530 to 8,159	1.1 percent	10 percent	$	1,950
145.27	8,160 to 11,439	1.2 percent	10 percent	$	1,900
145.28	11,440 to 14,709	1.3 percent	15 percent	$	1,850
145.29	14,710 to 16,339	1.4 percent	15 percent	$	1,800
145.30	16,340 to 17,959	1.4 percent	20 percent	$	1,750
145.31	17,960 to 21,239	1.5 percent	20 percent	$	1,700
145.32	21,240 to 22,869	1.6 percent	20 percent	$	1,650
145.33	22,870 to 24,499	1.7 percent	25 percent	$	1,650
145.34	24,500 to 27,779	1.8 percent	25 percent	$	1,650
145.35	27,780 to 29,399	1.9 percent	30 percent	$	1,650
145.36	29,400 to 34,299	2.0 percent	30 percent	$	1,650
146.1	34,300 to 39,199	2.0 percent	35 percent	$	1,650
146.2	39,200 to 45,739	2.0 percent	40 percent	$	1,650
146.3	45,740 to 47,369	2.0 percent	45 percent	$	1,500
146.4	47,370 to 49,009	2.0 percent	45 percent	$	1,350
146.5	49,010 to 50,649	2.0 percent	45 percent	$	1,150
146.6	50,650 to 52,269	2.0 percent	50 percent	$	1,000
146.7	52,270 to 53,909	2.0 percent	50 percent	$	900
146.8	53,910 to 55,539	2.0 percent	50 percent	$	500
146.9	55,540 to 57,169	2.0 percent	50 percent	$	200

146.10 146.11 146.12	Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
146.13	$0 to 5,159	1.0 percent	5 percent	$	3,070
146.14	5,160 to 6,859	1.0 percent	10 percent	$	3,070
146.15	6,860 to 8,569	1.1 percent	10 percent	$	3,070
146.16	8,570 to 12,019	1.2 percent	10 percent	$	3,070
146.17	12,020 to 15,449	1.3 percent	10 percent	$	3,070
146.18	15,450 to 17,159	1.4 percent	10 percent	$	3,070
146.19	17,160 to 18,869	1.4 percent	12 percent	$	3,070
146.20	18,870 to 22,309	1.5 percent	12 percent	$	2,870
146.21	22,310 to 24,019	1.6 percent	12 percent	$	2,670
146.22	24,020 to 25,739	1.7 percent	17 percent	$	2,470
146.23	25,740 to 29,179	1.8 percent	17 percent	$	2,270
146.24	29,180 to 30,879	1.9 percent	22 percent	$	2,070
146.25	30,880 to 32,999	2.0 percent	22 percent	$	2,070
146.26	33,000 to 36,029	2.0 percent	22 percent	$	1,870
146.27	36,030 to 41,179	2.0 percent	27 percent	$	1,870
146.28	41,180 to 48,049	2.0 percent	32 percent	$	1,870
146.29	48,050 to 51,479	2.0 percent	37 percent	$	1,670
146.30	51,480 to 53,209	2.0 percent	37 percent	$	1,470
146.31	53,210 to 54,909	2.0 percent	42 percent	$	1,270
146.32	54,910 to 59,999	2.0 percent	42 percent	$	1,070
146.33	60,000 to 63,999	2.0 percent	42 percent	$	870
146.34	64,000 to 67,999	2.0 percent	42 percent	$	670
146.35	68,000 to 71,999	2.0 percent	42 percent	$	470
146.36	72,000 to 74,999	2.0 percent	42 percent	$	270

147.1    The payment made to a claimant is the amount of the state refund calculated under this
147.2subdivision. No payment is allowed if the claimant's household income is $57,170 $75,000
147.3or more.
147.4EFFECTIVE DATE.This section is effective for refunds based on rent paid in 2017
147.5and following years.

147.6    Sec. 13. Minnesota Statutes 2016, section 290A.04, subdivision 4, is amended to read:
147.7    Subd. 4. Inflation adjustment. (a) Beginning for property tax refunds payable in calendar
147.8year 2002, the commissioner shall annually adjust the dollar amounts of the income thresholds
147.9and the maximum refunds under subdivisions 2 and 2a for inflation. The commissioner
147.10shall make the inflation adjustments in accordance with section 1(f) of the Internal Revenue
147.11Code, except that for purposes of this subdivision the percentage increase shall be determined
147.12as provided in this subdivision.
147.13    (b) In adjusting the dollar amounts of the income thresholds and the maximum refunds
147.14under subdivision 2 for inflation, the percentage increase shall be determined from the year
147.15ending on June 30, 2013 2017, to the year ending on June 30 of the year preceding that in
147.16which the refund is payable.
147.17    (c) In adjusting the dollar amounts of the income thresholds and the maximum refunds
147.18under subdivision 2a for inflation, the percentage increase shall be determined from the
147.19year ending on June 30, 2013 2017, to the year ending on June 30 of the year preceding that
147.20in which the refund is payable.
147.21    (d) The commissioner shall use the appropriate percentage increase to annually adjust
147.22the income thresholds and maximum refunds under subdivisions 2 and 2a for inflation
147.23without regard to whether or not the income tax brackets are adjusted for inflation in that
147.24year. The commissioner shall round the thresholds and the maximum amounts under
147.25subdivision 2, as adjusted to the nearest $10 amount. If the amount ends in $5, the
147.26commissioner shall round it up to the next $10 amount. The commissioner shall round the
147.27maximum amounts under subdivision 2, as adjusted to the nearest $1 amount. The
147.28commissioner shall round the thresholds and the maximum amounts under subdivision 2a,
147.29as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall
147.30round it up to the next $10 amount.
147.31    (e) The commissioner shall annually announce the adjusted refund schedule at the same
147.32time provided under section 290.06. The determination of the commissioner under this
147.33subdivision is not a rule under the Administrative Procedure Act.
148.1EFFECTIVE DATE.This section is effective for refunds based on taxes payable in
148.22019 and rent paid in 2018 and following years.

148.3    Sec. 14. Minnesota Statutes 2016, section 469.169, is amended by adding a subdivision
148.4to read:
148.5    Subd. 20. Additional border city allocations. (a) In addition to the tax reductions
148.6authorized in subdivisions 12 to 19, the commissioner shall allocate $3,000,000 for tax
148.7reductions to border city enterprise zones in cities located on the western border of the state.
148.8The commissioner shall allocate this amount among cities on a per capita basis. Allocations
148.9under this subdivision may be used for tax reductions under sections 469.171, 469.1732,
148.10and 469.1734, or for other offsets of taxes imposed on or remitted by businesses located in
148.11the enterprise zone, but only if the municipality determines that the granting of the tax
148.12reduction or offset is necessary to retain a business within or attract a business to the zone.
148.13(b) The allocations under this subdivision do not cancel or expire, but remain available
148.14until used by the city.

148.15    Sec. 15. Minnesota Statutes 2016, section 477A.011, subdivision 34, is amended to read:
148.16    Subd. 34. City revenue need. (a) For a city with a population equal to or greater than
148.1710,000, "city revenue need" is 1.15 times the sum of (1) 4.59 times the pre-1940 housing
148.18percentage; plus (2) 0.622 times the percent of housing built between 1940 and 1970; plus
148.19(3) 169.415 times the jobs per capita; plus (4) the sparsity adjustment; plus (5) 307.664.
148.20    (b) For a city with a population equal to or greater than 2,500 and less than 10,000, "city
148.21revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940 housing
148.22percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak population
148.23decline; plus (5) the sparsity adjustment.
148.24    (c) For a city with a population less than 2,500, "city revenue need" is the sum of (1)
148.25410 plus; (2) 0.367 times the city's population over 100; plus (3) the sparsity adjustment.
148.26The city revenue need for a city under this paragraph shall not exceed 630 plus the city's
148.27sparsity adjustment.
148.28    (d) For a city with a population of at least 2,500 but less than 3,000, the "city revenue
148.29need" equals (1) the transition factor times the city's revenue need calculated in paragraph
148.30(b); plus (2) 630 times the difference between one and the transition factor. For a city with
148.31a population of at least 10,000 but less than 10,500 11,000, the "city revenue need" equals
148.32(1) the transition factor times the city's revenue need calculated in paragraph (a); plus (2)
149.1the city's revenue need calculated under the formula in paragraph (b) times the difference
149.2between one and the transition factor. For purposes of the first sentence of this paragraph
149.3"transition factor" is 0.2 percent times the amount that the city's population exceeds the
149.4minimum threshold in either of the first two sentences. For purposes of the second sentence
149.5of this paragraph, "transition factor" is 0.1 percent times the amount that the city's population
149.6exceeds the minimum threshold.
149.7    (e) The city revenue need cannot be less than zero.
149.8    (f) For calendar year 2015 and subsequent years, the city revenue need for a city, as
149.9determined in paragraphs (a) to (e), is multiplied by the ratio of the annual implicit price
149.10deflator for government consumption expenditures and gross investment for state and local
149.11governments as prepared by the United States Department of Commerce, for the most
149.12recently available year to the 2013 implicit price deflator for state and local government
149.13purchases.
149.14EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018
149.15and thereafter.

149.16    Sec. 16. Minnesota Statutes 2016, section 477A.011, subdivision 45, is amended to read:
149.17    Subd. 45. Sparsity adjustment. For a city with a population of 10,000 or more, the
149.18sparsity adjustment is 100 for any city with an average population density less than 150 per
149.19square mile, according to the most recent federal census, and. For a city with a population
149.20less than 10,000, the sparsity adjustment is 200 for any city with an average population
149.21density less than 30 per square mile, according to the most recent federal census. The sparsity
149.22adjustment is zero for all other cities.
149.23EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018
149.24and thereafter.

149.25    Sec. 17. Minnesota Statutes 2016, section 477A.0124, subdivision 4, is amended to read:
149.26    Subd. 4. County tax-base equalization aid. (a) For 2006 and subsequent years, the
149.27money appropriated to county tax-base equalization aid each calendar year, after the payment
149.28under paragraph (f), shall be apportioned among the counties according to each county's
149.29tax-base equalization aid factor.
149.30(b) A county's tax-base equalization aid factor is equal to the amount by which (i) $185
149.31$190 times the county's population, exceeds (ii) 9.45 nine percent of the county's net tax
149.32capacity.
150.1(c) In the case of a county with a population less than 10,000, the factor determined in
150.2paragraph (b) shall be multiplied by a factor of three.
150.3(d) In the case of a county with a population greater than or equal to 10,000, but less
150.4than 12,500, the factor determined in paragraph (b) shall be multiplied by a factor of two.
150.5(e) In the case of a county with a population greater than 500,000, the factor determined
150.6in paragraph (b) shall be multiplied by a factor of 0.25.
150.7(f) Before the money appropriated to county base equalization aid is apportioned among
150.8the counties as provided in paragraph (a), an amount up to $73,259 is allocated annually to
150.9Anoka County and up to $59,664 is annually allocated to Washington County for the county
150.10to pay postretirement costs of health insurance premiums for court employees. The allocation
150.11under this paragraph is in addition to the allocations under paragraphs (a) to (e). Beginning
150.12with aid payable in 2019, the amount under paragraph (b), item (i), shall be increased by
150.13the ratio of the statewide net tax capacity per capita to the statewide net tax capacity per
150.14capita in the 2017 assessment year, provided that in no case shall the ratio be less than one
150.15or the ratio in the prior year, whichever is greater. The amount shall be rounded to the nearest
150.16$10. The statewide net tax capacity per capita shall be calculated using the most recent
150.17population available for the relevant assessment year at the time of the calculation of the
150.18aid by the commissioner under section 477A.014.
150.19(g) For distributions in 2018 and subsequent years, the allocation to a county under
150.20paragraphs (a) to (e) shall not be less than:
150.21(1) an amount equal to 0.27 percent of the total appropriation available for that year
150.22under section 477A.03, subdivision 2b, paragraph (b); or
150.23(2) 95 percent of the tax base equalization aid for the county in the prior year, whichever
150.24is greater.
150.25If the sum of aids payable to counties under this subdivision exceeds the limit under section
150.26477A.03, subdivision 2b, paragraph (b), the distribution for those counties whose aid amounts
150.27exceed their minimum aid must be proportionately reduced so that the amount of aid
150.28distributed under this subdivision does not exceed the limit in section 477A.03, subdivision
150.292b, paragraph (b).
150.30EFFECTIVE DATE.This section is effective for aids payable in 2018 and thereafter.

151.1    Sec. 18. [477A.0126] REIMBURSEMENT OF COUNTY AND TRIBES FOR
151.2CERTAIN OUT-OF-HOME PLACEMENT.
151.3    Subdivision 1. Definition. For purposes of this section, "out-of-home placement" means
151.424-hour substitute care for an Indian child as defined by section 260C.007, subdivision 21,
151.5placed under chapter 260C and the Indian Child Welfare Act (ICWA), away from the child's
151.6parent or guardian and for whom the county social services agency or county correctional
151.7agency has been assigned responsibility for the child's placement and care, which includes
151.8placement in foster care under section 260C.007, subdivision 18, and a correctional facility
151.9pursuant to a court order.
151.10    Subd. 2. Determination of nonfederal share of costs. (a) By July 1, 2017, each county
151.11shall report the following information to the commissioners of human services and
151.12corrections:
151.13(1) the separate amounts paid out of the county's social service agency and its corrections
151.14budget for out-of-home placement of children under the ICWA in calendar years 2013,
151.152014, and 2015; and
151.16(2) the number of case days associated with the expenditures from each budget.
151.17The commissioner of human services shall prescribe the format of the report. By July 15,
151.182017, the commissioner of human services, in consultation with the commissioner of
151.19corrections, shall certify to the commissioner of revenue and to the legislative committees
151.20with jurisdiction over local government aids and out-of-home placement funding whether
151.21the data reported under this subdivision accurately reflect total expenditures by counties for
151.22out-of-home placement costs of children under the ICWA.
151.23(b) By January 1, 2018, and each January 1 thereafter, each county shall report to the
151.24commissioners of human services and corrections the separate amounts paid out of the
151.25county's social service agency and its corrections budget for out-of-home placement of
151.26children under the ICWA in the calendar years two years before the current calendar year
151.27along with the number of case days associated with the expenditures from each budget. The
151.28commissioner of human services shall prescribe the format of the report.
151.29(c) Until the commissioner of human services develops another mechanism for collecting
151.30and verifying data on out-of-home placements of children under the ICWA, and the
151.31legislature authorizes the use of that data, the data collected under this subdivision must be
151.32used to calculate payments under subdivision 3. The commissioner of human services shall
151.33certify the nonfederal out-of-home placement costs for the three prior calendar years for
151.34each county and the amount of any federal reimbursement received by a tribe under the
152.1ICWA for the three prior calendar years to the commissioner of revenue by June 1 of the
152.2year before the aid payment.
152.3    Subd. 3. Aid for counties. For aids payable in calendar year 2018 and thereafter, the
152.4amount of reimbursement to each county is a county's proportionate share of the appropriation
152.5in subdivision 6 that remains after the aid for tribes has been paid. Each county's
152.6proportionate share is based on the county's average nonfederal share of the cost for
152.7out-of-home placement of children under the ICWA for the three calendar years that were
152.8certified by the commissioner of human services by June 1 of the prior year, provided that
152.9the commissioner of human services, in consultation with the commissioner of corrections,
152.10certifies to the commissioner of revenue that accurate data are available to make the aid
152.11determination under this section. For aids payable in calendar year 2018, each county's
152.12proportionate share is based on the county's nonfederal share of the cost for out-of-home
152.13placement of children under the ICWA that was certified by the commissioner of human
152.14services by July 15, 2017.
152.15    Subd. 4. Aid for tribes. For aids payable in 2018 and thereafter, the amount of
152.16reimbursement to each tribe shall be the greater of:
152.17(1) five percent of the average reimbursement amount received from the federal
152.18government for out-of-home placement costs for the three calendar years that were certified
152.19by June 1 of the prior year; or
152.20(2) $200,000.
152.21    Subd. 5. Payments. The commissioner of revenue must compute the amount of the
152.22reimbursement aid payable to each county and tribe under this section. On or before August
152.231 of each year, the commissioner shall certify the amount to be paid to each county and
152.24tribe in the following year. The commissioner shall pay reimbursement aid annually at the
152.25times provided in section 477A.015.
152.26    Subd. 6. Appropriation. $10,000,000 is annually appropriated to the commissioner of
152.27revenue from the general fund to pay aid under this section.
152.28EFFECTIVE DATE.This section is effective beginning with aids payable in 2018.

152.29    Sec. 19. Minnesota Statutes 2016, section 477A.013, subdivision 8, is amended to read:
152.30    Subd. 8. City formula aid. (a) For aids payable in 2015 2018 and thereafter, the formula
152.31aid for a city is equal to the sum of (1) its formula aid in the previous year and (2) the product
152.32of (i) the difference between its unmet need and its formula certified aid in the previous
152.33year before any aid adjustment under subdivision 13, and (ii) the aid gap percentage.
153.1    (b) For aids payable in 2015 and thereafter, if a city's certified aid from the previous
153.2year is greater than the sum of its unmet need plus its aid adjustment under subdivision 13,
153.3its formula aid is adjusted to equal its unmet need.
153.4    (c) (b) No city may have a formula aid amount less than zero. The aid gap percentage
153.5must be the same for all cities subject to paragraph (a).
153.6    (d) (c) The applicable aid gap percentage must be calculated by the Department of
153.7Revenue so that the total of the aid under subdivision 9 equals the total amount available
153.8for aid under section 477A.03. The aid gap percentage must be the same for all cities subject
153.9to paragraph (a). Data used in calculating aids to cities under sections 477A.011 to 477A.013
153.10shall be the most recently available data as of January 1 in the year in which the aid is
153.11calculated.
153.12EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018
153.13and thereafter.

153.14    Sec. 20. [477A.0135] AID REDUCTIONS FOR PAYMENTS TO A WORLD FAIR
153.15OR EXPO.
153.16If a county, statutory or home rule charter city, or town makes a payment or contribution
153.17to Expo2023 or any similar organization with the mission of advocating, promoting, or
153.18running a world fair or expo in the state of Minnesota in any year, it must report that amount
153.19to the commissioner by January 15 of the year following the year in which the payment or
153.20contribution is made. The commissioner shall reduce the aid paid to a county, city, or town
153.21under section 477A.014 from the amount certified to the county under section 477A.0124;
153.22to the city under section 477A.013, subdivision 9; or to the town under section 477A.013,
153.23subdivision 1, in the calendar year following the year in which the payment or contribution
153.24was made. The reduction is equal to the amount of the payment or contribution, but the aid
153.25paid to any county, city, or town may not be less than zero. Any savings in aid payments
153.26under this section shall stay in the general fund and shall not be redistributed to other
153.27counties, cities, or towns.
153.28EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018
153.29and thereafter.

154.1    Sec. 21. [477A.0175] AID REDUCTIONS FOR OPERATING AN UNAUTHORIZED
154.2DIVERSION PROGRAM.
154.3    Subdivision 1. Penalty for operating an unauthorized diversion program.
154.4Notwithstanding any other law to the contrary, a county or city that operated a pretrial
154.5diversion program that a court determines was not authorized under section 169.999 or
154.6another statute or law must have its aid under sections 477A.011 to 477A.03 reduced by
154.7the amount of fees paid by participants into the program for the years in which the program
154.8operated. A court shall report any order that enjoins a county or city from operating a pretrial
154.9diversion program to the commissioner as required under subdivision 2. The commissioner
154.10shall, with the assistance of the state auditor, determine the amount of fees collected under
154.11the diversion program and reduce the county program aid paid to a county or the local
154.12government aid paid to a city by this amount beginning with the first aid payment made
154.13after the reduction amount is determined. No aid payment may be less than zero but the
154.14amount of the reduction that cannot be made out of that payment shall be applied to future
154.15payments until the total amount has been deducted.
154.16    Subd. 2. Court challenge to authority to operate a pretrial diversion program. Any
154.17taxpayer may challenge a city or county operation of a pretrial diversion program by filing
154.18a declaratory judgment action or seeking other appropriate relief in the district court for the
154.19county where the city is located or in any other court of competent jurisdiction. If the court
154.20finds that the county or city has exceeded its authority under law in operating the pretrial
154.21diversion program, the court must transmit a copy of the court order to the commissioner
154.22of revenue.
154.23EFFECTIVE DATE.This section is effective the day following final enactment and
154.24applies beginning with the second aid payments under Minnesota Statutes, section 477A.015
154.25in calendar year 2017.

154.26    Sec. 22. Minnesota Statutes 2016, section 477A.03, subdivision 2a, is amended to read:
154.27    Subd. 2a. Cities. The total aid paid under section 477A.013, subdivision 9, is
154.28$516,898,012 $519,398,012 for aids payable in 2015 2017. For aids payable in 2016 2018
154.29and thereafter, the total aid paid under section 477A.013, subdivision 9, is $519,398,012
154.30$586,848,950.

154.31    Sec. 23. Minnesota Statutes 2016, section 477A.03, subdivision 2b, is amended to read:
154.32    Subd. 2b. Counties. (a) For aids payable in 2014 and thereafter 2018 through 2024, the
154.33total aid payable under section 477A.0124, subdivision 3, is $100,795,000 $111,526,935,
155.1of which $3,000,000 shall be allocated as required under Laws 2014, chapter 150, article
155.24, section 6. For aids payable in 2025 and thereafter, the total aid payable under section
155.3477A.0124, subdivision 3, is $108,526,935. Each calendar year, $500,000 of this
155.4appropriation shall be retained by the commissioner of revenue to make reimbursements to
155.5the commissioner of management and budget for payments made under section 611.27. The
155.6reimbursements shall be to defray the additional costs associated with court-ordered counsel
155.7under section 611.27. Any retained amounts not used for reimbursement in a year shall be
155.8included in the next distribution of county need aid that is certified to the county auditors
155.9for the purpose of property tax reduction for the next taxes payable year.
155.10    (b) For aids payable in 2014 2018 and thereafter, the total aid under section 477A.0124,
155.11subdivision 4 , is $104,909,575 $137,641,510. The commissioner of revenue shall transfer
155.12to the commissioner of management and budget $207,000 annually for the cost of preparation
155.13of local impact notes as required by section 3.987, and other local government activities.
155.14The commissioner of revenue shall transfer to the commissioner of education $7,000 annually
155.15for the cost of preparation of local impact notes for school districts as required by section
155.163.987 . The commissioner of revenue shall deduct the amounts transferred under this
155.17paragraph from the appropriation under this paragraph. The amounts transferred are
155.18appropriated to the commissioner of management and budget and the commissioner of
155.19education respectively.

155.20    Sec. 24. Minnesota Statutes 2016, section 477A.03, subdivision 2c, is amended to read:
155.21    Subd. 2c. Towns. For aids payable in 2015 and thereafter 2017, the total aids paid under
155.22section 477A.013, subdivision 1, is limited to $10,000,000. For aids payable in 2018 and
155.23thereafter, the total aids paid under section 477A.013, subdivision 1, is limited to
155.24$15,000,000.
155.25EFFECTIVE DATE.This section is effective for aids payable in calendar year 2018
155.26and thereafter.

155.27    Sec. 25. [477A.09] MAXIMUM EFFORT LOAN AID.
155.28(a) For fiscal years 2018 to 2022, each school district with a maximum effort loan under
155.29sections 126C.61 to 126C.72, outstanding as of June 30, 2016, is eligible for an aid payment
155.30equal to one-fifth of the amount of interest that was paid on the loan between December 1,
155.311990, and June 30, 2016. A school district with a maximum effort capital loan outstanding
155.32as of June 30, 2017, is eligible for an annual aid payment equal to one-fifth of the estimated
155.33amount of interest that will be paid by the district on the loan between June 30, 2017, and
156.1June 30, 2021. Aid payments under this section must be used to reduce current year property
156.2taxes levied on net tax capacity within the district or to reduce future years' tax levies by:
156.3(1) retaining payments made under this section in the district's debt redemption fund for
156.4up to 20 years, notwithstanding the two-year limit under section 475.61, subdivision 3; or
156.5(2) financing a defeasance of any future payments on outstanding bonded debt.
156.6(b) Aid under this section must be paid in fiscal years 2018 to 2022. An amount sufficient
156.7to make aid payments under this section is annually appropriated from the general fund to
156.8the commissioner of education.
156.9EFFECTIVE DATE.This section is effective for fiscal years 2018 to 2022.

156.10    Sec. 26. [477A.21] RIPARIAN PROTECTION AID.
156.11    Subdivision 1. Definition. (a) For purposes of this section, the following terms have the
156.12meanings given.
156.13(b) "Buffer protection map" means the buffer protection map as defined in section
156.14103F.48, subdivision 1.
156.15(c) "Commissioner" means the commissioner of revenue.
156.16    Subd. 2. Certification to commissioner. (a) The Board of Water and Soil Resources
156.17must certify to the commissioner by September 1, 2017, and by July 1 of each year thereafter,
156.18which counties and watershed districts have affirmed their jurisdiction under section 103F.48,
156.19and the proportion of the number of centerline miles of public watercourses, and the miles
156.20of public drainage system ditches on the buffer protection map, within each county and
156.21each watershed district within the county with affirmed jurisdiction.
156.22(b) On or before July 1 of each year, the commissioner of natural resources shall certify
156.23to the commissioner the statewide and countywide number of centerline miles of public
156.24watercourses and the miles of public drainage system ditches on the buffer protection map.
156.25    Subd. 3. Distribution. (a) A county that is certified under subdivision 2, or that portion
156.26of a county containing a watershed district certified under subdivision 2, is eligible to receive
156.27aid under this section to enforce and implement the riparian protection and water quality
156.28practices under section 103F.48. The commissioner shall calculate a preliminary aid for all
156.29counties that shall equal the sum of (1) the total number of acres in the county classified as
156.30class 2a under section 273.13, subdivision 23; (2) the countywide number of centerline
156.31miles of public watercourses on the buffer protection map; and (3) the countywide number
156.32of miles of public drainage system on the buffer protection map; divided by the sum of (4)
157.1the statewide total number of acres classified as class 2a under section 273.13, subdivision
157.223; (5) the statewide total number of centerline miles of public watercourses on the buffer
157.3protection map; and (6) the statewide total number of miles of public drainage system on
157.4the buffer protection map; multiplied by (7) $10,000,000.
157.5(b) Aid to a county shall not be greater than $200,000 or less than $50,000. If the sum
157.6of the preliminary aids payable to counties under paragraph (a) is greater or less than the
157.7appropriation under subdivision 5, the commissioner shall calculate the percentage adjustment
157.8necessary so that the total of the aid under paragraph (a) equals the total amount available
157.9for aid under subdivision 5.
157.10(c) If only a portion of a county is certified as eligible to receive aid under subdivision
157.112, the aid otherwise payable to that county under this section shall be multiplied by a fraction,
157.12the numerator of which is the area of the certified watershed districts contained within the
157.13county and the denominator of which is the total area of the county.
157.14(d) Any aid that would otherwise be paid to a county or portion of a county that is not
157.15certified under subdivision 2 shall be paid to the Board of Water and Soil Resources for the
157.16purpose of enforcing and implementing the riparian protection and water quality practices
157.17under section 103F.48.
157.18    Subd. 4. Payments. The commissioner of revenue must compute the amount of riparian
157.19protection aid payable to each eligible county and to the Board of Water and Soil Resources
157.20under this section. On or before November 1, 2017, and on or before each August 1 thereafter,
157.21the commissioner shall certify the amount to be paid to each county and the Board of Water
157.22and Soil Resources in the following year. The commissioner shall pay riparian protection
157.23aid to counties and the Board of Water and Soil Resources in the same manner and at the
157.24same time as aid payments under section 477A.015.
157.25    Subd. 5. Appropriation. $10,000,000 is annually appropriated from the general fund
157.26to the commissioner to make the payments required under this section.
157.27EFFECTIVE DATE.This section is effective beginning with aids payable in 2018.

157.28    Sec. 27. ONETIME ADJUSTMENT FOR CERTAIN CITIES; AIDS PAYABLE IN
157.292017.
157.30(a) The amount of aid payable in 2017 to a city shall be increased to equal the amount
157.31of aid it received under Minnesota Statutes, section 477A.013, subdivision 9, for aids payable
157.32in 2016 if the following conditions are met:
158.1(1) its certified aid under Minnesota Statutes, section 477A.013, subdivision 9, for aids
158.2payable in 2017, is less than its certified aid for aids payable in 2016; and
158.3(2) its certified aid under Minnesota Statutes, section 477A.013, subdivision 9, for aids
158.4payable in 2016, is less than its unmet need under Minnesota Statutes, section 477A.011,
158.5subdivision 34, for aids payable in 2017.
158.6(b) Any adjustment under this section shall be treated as an aid correction under
158.7Minnesota Statutes, section 477A.014, subdivision 3. The amount computed under this
158.8section shall be used as an affected city's 2017 certified aid amount when calculating its
158.9formula aid under Minnesota Statutes, section 477A.013, subdivision 8, for aids payable in
158.102018.
158.11EFFECTIVE DATE.This section is effective for aids payable in calendar years 2017
158.12and 2018.

158.13    Sec. 28. BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY.
158.14For a city that incorporated on October 13, 2015, and first qualifies for aid under
158.15Minnesota Statutes, section 477A.013, subdivisions 8 and 9, in 2017, the city's certified aid
158.16for 2017, used in calculating aid payable in 2018, shall be deemed to equal the lesser of (1)
158.1725 percent of its net levy for taxes payable in 2016, or (2) 50 percent of its unmet need as
158.18defined in Minnesota Statutes, section 477A.011, subdivision 43.
158.19EFFECTIVE DATE.This section is effective for aids payable in 2018.

158.20    Sec. 29. 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.
158.21Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Oslo
158.22shall receive the portion of its aid payment for calendar year 2013 under Minnesota Statutes,
158.23section 477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision
158.243, provided that the state auditor certifies to the commissioner of revenue that it received
158.25audited financial statements from the city for calendar year 2012 by December 31, 2013.
158.26The commissioner of revenue shall make a payment of $37,473.50 with the first payment
158.27of aids under Minnesota Statutes, section 477A.015. $37,473.50 is appropriated from the
158.28general fund to the commissioner of revenue in fiscal year 2018 to make this payment.
158.29EFFECTIVE DATE.This section is effective the day following final enactment.

159.1    Sec. 30. 2014 AID PENALTY FORGIVENESS.
159.2(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities of
159.3Dundee, Jeffers, and Woodstock shall receive all of their calendar year 2014 aid payment
159.4that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided that
159.5the state auditor certifies to the commissioner of revenue that the city complied with all
159.6reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3, for
159.7calendar years 2013 and 2014 by June 1, 2015.
159.8(b) The commissioner of revenue shall make payment to each city no later than July 20,
159.92017. Up to $101,570 in fiscal year 2018 is appropriated from the general fund to the
159.10commissioner of revenue to make the payments under this section.
159.11EFFECTIVE DATE.This section is effective the day following final enactment.

159.12    Sec. 31. LAKE MILLE LACS AREA PROPERTY TAX ABATEMENT.
159.13    Subdivision 1. Abatements authorized. (a) Notwithstanding Minnesota Statutes, section
159.14375.192, the county boards of Aitkin, Crow Wing, and Mille Lacs Counties may grant an
159.15abatement of local property taxes for taxes payable in 2017, provided that:
159.16(1) the property is classified as 1c, 3a (excluding utility real and personal property),
159.174c(1), 4c(10), or 4c(11);
159.18(2) on or before December 31, 2017, the taxpayer submits a written application to the
159.19county auditor in the county in which abatement is sought; and
159.20(3) the taxpayer meets qualification requirements established in subdivision 3.
159.21    Subd. 2. Appeals. An appeal may not be taken to the Tax Court from any order of the
159.22county board made pursuant to the exercise of the discretionary authority granted in this
159.23section.
159.24    Subd. 3. Qualification requirements. To qualify for abatements under this section, a
159.25taxpayer must:
159.26(1) be located within one of the following municipalities surrounding Lake Mille Lacs:
159.27(i) in Crow Wing County, the city of Garrison, township of Garrison, or township of
159.28Roosevelt;
159.29(ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township of
159.30Malmo, or township of Lakeside; or
160.1(iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township of
160.2East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;
160.3(2) document a reduction in gross receipts of five percent or greater between two
160.4successive calendar years beginning in 2010 or later; and
160.5(3) be a business in one of the following industries, as defined within the North American
160.6Industry Classification System: accommodation, restaurants, bars, amusement and recreation,
160.7food and beverages retail, sporting goods, miscellaneous retail, general retail, museums,
160.8historical sites, health and personal care, gas station, general merchandise, business and
160.9professional membership, movies, or nonstore retailer, as determined by the county in
160.10consultation with the commissioner of employment and economic development.
160.11    Subd. 4. State general levy in relief area. The counties of Aitkin, Crow Wing, and
160.12Mille Lacs must refund the state general levy levied upon a property classified as 1c, 3a
160.13(excluding utility real and personal property), or 4c(1) that is located in the area described
160.14by subdivision 3, clause (1), for taxes payable in 2017.
160.15    Subd. 5. Certification and transfer of funds. (a) By February 1, 2018, a county granting
160.16a refund as required under subdivision 4 must certify the total amount of state general tax
160.17refunded to Mille Lacs County and the commissioner of revenue. By March 1, 2018, Mille
160.18Lacs County must transfer an amount equal to the amount certified under this paragraph to
160.19the county making the certification.
160.20(b) By February 1, 2018, a county that has received an application for an abatement
160.21authorized under subdivision 1 must certify to Mille Lacs County the total amount of
160.22abatements for which applications have been received and approved. By March 1, 2018,
160.23Mille Lacs County must transfer an amount equal to the amount certified under this paragraph
160.24to the county making the certification. By April 30, 2018, the county must issue refunds of
160.25local property tax amounts to qualified taxpayers.
160.26    Subd. 6. Commissioner of revenue; appropriation. An amount sufficient to make the
160.27transfers required under subdivision 5 in fiscal year 2018 is appropriated from the general
160.28fund to the commissioner of revenue for transfer to Mille Lacs County. This is a onetime
160.29appropriation.
160.30    Subd. 7. Report to legislature. The commissioner of revenue must make a written report
160.31to the chairs and ranking minority members of the legislative committees with jurisdiction
160.32over taxes stating the amount of abatements and refunds given under this section by taxing
160.33jurisdictions by February 1, 2019. The counties must provide the commissioner with the
160.34information necessary to make the report.
161.1    Subd. 8. Refund eligibility. Only a taxpayer making all payments of property taxes for
161.2taxes payable in 2017 is eligible to receive a refund under subdivisions 4 and 5.
161.3EFFECTIVE DATE.This section is effective the day following final enactment.

161.4    Sec. 32. SUPPLEMENTAL PAYMENTS FOR OTHER NATURAL RESOURCES
161.5LAND.
161.6    Subdivision 1. Supplemental payments. For aids payable in calendar years 2017 and
161.72018 only, each county must receive a supplemental aid payment equal to 50 cents per acre
161.8for other natural resources land, as defined in Minnesota Statutes, section 477A.11,
161.9subdivision 4, located in the county. The payment shall be made at the same time as payments
161.10under Minnesota Statutes, section 477A.13, and the counties shall distribute this payment
161.11as if it was part of the aids subject to the general distribution for that year under Minnesota
161.12Statutes, section 477A.014, subdivision 1.
161.13    Subd. 2. Appropriation. The amount necessary to make the payments under subdivision
161.141 in each year is appropriated from the general fund to the commissioner of revenue for
161.15fiscal years 2018 and 2019 only. The appropriations under this section are onetime and not
161.16added to the base budget.
161.17EFFECTIVE DATE.This section is effective for aids payable in calendar years 2017
161.18and 2018 only.

161.19    Sec. 33. REPEALER.
161.20Minnesota Statutes 2016, section 477A.0124, subdivision 5, is repealed.


161.23    Section 1. [11A.237] ACCOUNT FOR COUNTY JOINT TRUST FUND PAYMENTS.
161.24    Subdivision 1. Establishment. The State Board of Investment, when requested by a
161.25county as required under sections 97A.056, subdivision 1b, and 116P.045, subdivision 2,
161.26shall invest the funds deposited by the commissioner of revenue, acting as an agent on the
161.27board's behalf, under section 97A.056, subdivision 1b, or 116P.045, subdivision 2, in a
161.28special account for that purpose in the combined investment funds established in section
161.2911A.14, subject to the policy and procedures of the State Board of Investment. Use of the
161.30funds is restricted to payments to the commissioner of revenue, acting as an agent on behalf
162.1of the counties, for distributions to counties under sections 97A.056, subdivision 1b, and
162.2116P.045, subdivision 2.
162.3    Subd. 2. Account maintenance and investment. The commissioner of revenue may
162.4deposit money into the account on behalf of the counties and may withdraw money from
162.5the account to make distributions to the counties under sections 97A.056, subdivision 1b,
162.6and 116P.045, subdivision 2, only. The commissioner of revenue shall make one payment
162.7under each section each year for all counties eligible for a payment in that year. The
162.8commissioner shall make one withdrawal annually at a time negotiated with the executive
162.9director of the State Board of Investment, but no later than November 15, to cover
162.10distributions to counties under section 477A.30, up to the limit allowed under that section.
162.11The transactions must be in the manner required by the executive director of the State Board
162.12of Investment. Investment earnings must be credited to the account.
162.13EFFECTIVE DATE.This section is effective January 1, 2018.

162.14    Sec. 2. Minnesota Statutes 2016, section 97A.056, subdivision 1a, is amended to read:
162.15    Subd. 1a. Definitions. For the purpose of (a) The definitions in this subdivision apply
162.16to this section and appropriations from the outdoor heritage fund,.
162.17(b) "Land acquisition costs" means acquisition coordination costs, costs of engineering
162.18services, appraisal fees, attorney fees, taxes, assessments required at the time of purchase,
162.19onetime trust fund payments under subdivision 1b, and recording fees.
162.20(c) "Land-related property taxes" means property taxes collected on behalf of local
162.21governments providing land-related services.
162.22(d) "Local governments providing land-related services" means counties, townships,
162.23home rule charter and statutory cities, watershed districts under chapter 103D, sanitary
162.24districts under sections 442A.01 to 442A.29, and regional sanitary sewer districts under
162.25sections 115.61 to 115.67.
162.26(e) "Recipient" means the entity responsible for deliverables financed by the outdoor
162.27heritage fund.
162.28(f) "Total payment for the land" means the total price paid for the land including land
162.29acquisition costs, but excluding any in-kind services provided by nongovernmental entities
162.30at no cost to the state.
162.31EFFECTIVE DATE.This section is effective July 1, 2017.

163.1    Sec. 3. Minnesota Statutes 2016, section 97A.056, is amended by adding a subdivision to
163.2read:
163.3    Subd. 1b. Outdoor heritage trust fund payment account; trust fund payments. (a)
163.4An outdoor heritage trust fund account is created in the special revenue fund. The State
163.5Board of Investment must ensure the account is invested under section 11A.24. The
163.6commissioner of management and budget must credit to the account all money appropriated
163.7to the account and all money earned by the account. The principal of the account and any
163.8unexpended earnings must be invested and reinvested by the State Board of Investment.
163.9Nothing in this section limits the source of contributions to the account. Money in the
163.10account must be used only for the purposes of this subdivision.
163.11(b) State land acquired in fee simple in whole or in part with money appropriated from
163.12the outdoor heritage fund is eligible for a onetime trust fund payment as provided under
163.13this subdivision. The percentage of the total acres acquired in any purchase that is eligible
163.14for a trust fund payment under this subdivision is equal to the percentage of the total payment
163.15for the land funded from outdoor heritage fund revenues. If the percentage of the total
163.16payment for the land from the outdoor heritage fund is ten percent or less, the parcel is
163.17ineligible for a payment under this subdivision; if the percentage is 90 percent or more, the
163.18entire parcel is eligible for the payment under this subdivision. The commissioner of natural
163.19resources must certify to the commissioner of revenue and the county in which land eligible
163.20for a payment under this section is purchased the total number of acres purchased, the total
163.21payment for the land, and the amount of outdoor heritage fund revenues used for the purchase.
163.22The trust fund payment is equal to 30 times the land-related property taxes assessed on the
163.23eligible portion of the land in the year prior to the year in which the land is acquired. If the
163.24land was acquired from a private party that was exempt from paying property taxes, the
163.25payments must be based on 30 times the property taxes assessed on comparable land in the
163.26year prior to the year in which the land is acquired. By September 1 each year, the county
163.27in which the land is acquired must provide the commissioner of revenue with information
163.28necessary in a form determined by the commissioner of revenue to make this determination
163.29for all lands acquired for the 12-month period ending on June 30 of that year. The
163.30commissioner of revenue must make a trust fund payment on behalf of each county on the
163.31same date as the first payment under section 273.1384, subdivision 4, each year for all land
163.32acquired in that county in the 12-month period ending on June 30 of that year to the State
163.33Board of Investment as required under this paragraph. The money so deposited is money
163.34paid to the counties and may only be withdrawn for the purposes allowed under section
163.35477A.30. The commissioner of revenue must inform each county by October 15 each year
164.1of the amount deposited on the county's behalf with the State Board of Investment under
164.2this subdivision.
164.3(c) The amount necessary to make the payments required under this subdivision is
164.4annually appropriated from the outdoor heritage trust fund payment account to the
164.5commissioner of revenue for deposit in the account for county joint trust fund payments in
164.6section 11A.237.
164.7(d) To receive a trust fund payment under this subdivision, a county board must enter
164.8into an agreement with the State Board of Investment to allow the commissioner of revenue
164.9to make deposits and withdrawals on behalf of the county into and out of the county joint
164.10trust fund account under section 11A.237.
164.11(e) The portion of land receiving a trust fund payment under this subdivision is not
164.12eligible for payments under sections 477A.11 to 477A.14, but is eligible for distribution of
164.13withdrawals from the county joint trust fund account under section 477A.30.
164.14(f) If the land for which a payment under this subdivision is made is subsequently sold
164.15to another entity and is no longer available for the use for which it was purchased, the
164.16original amount of the payment for that land under paragraph (b) must be withdrawn by the
164.17commissioner of revenue from the account established under section 11A.237 and returned
164.18to the outdoor heritage fund. If only a portion of the land is sold and no longer available for
164.19the use for which it was purchased, the amount of the original trust fund payment returned
164.20is reduced proportionately based on the portion of the original purchase that is sold. The
164.21holder of the land must inform the commissioner of revenue and the county in which the
164.22land is sold of the sale and provide them with any information necessary to calculate the
164.23required withdrawal from the account. The withdrawal is made along with withdrawals
164.24under section 477A.30 in the calendar year after the year in which the land is sold.
164.25EFFECTIVE DATE.This section is effective July 1, 2017, and applies to land acquired
164.26with money appropriated on or after that date.

164.27    Sec. 4. Minnesota Statutes 2016, section 97A.056, subdivision 3, is amended to read:
164.28    Subd. 3. Council recommendations. (a) The council shall make recommendations to
164.29the legislature on appropriations of money from the outdoor heritage fund that are consistent
164.30with the Constitution and state law and that will achieve the outcomes of existing natural
164.31resource plans, including, but not limited to, the Minnesota Statewide Conservation and
164.32Preservation Plan, that directly relate to the restoration, protection, and enhancement of
164.33wetlands, prairies, forests, and habitat for fish, game, and wildlife, and that prevent forest
165.1fragmentation, encourage forest consolidation, and expand restored native prairie. In making
165.2recommendations, the council shall consider a range of options that would best restore,
165.3protect, and enhance wetlands, prairies, forests, and habitat for fish, game, and wildlife.
165.4The council recommendations each year on appropriation of money from the outdoor heritage
165.5fund must include amounts adequate to make the required transfers to the outdoor heritage
165.6trust fund payment account according to subdivision 1b. The council's recommendations
165.7shall be submitted no later than January 15 each year. The council shall present its
165.8recommendations to the senate and house of representatives committees with jurisdiction
165.9over the environment and natural resources budget by February 15 in odd-numbered years,
165.10and within the first four weeks of the legislative session in even-numbered years. The
165.11council's budget recommendations to the legislature shall be separate from the Department
165.12of Natural Resource's budget recommendations.
165.13    (b) To encourage and support local conservation efforts, the council shall establish a
165.14conservation partners program. Local, regional, state, or national organizations may apply
165.15for matching grants for restoration, protection, and enhancement of wetlands, prairies,
165.16forests, and habitat for fish, game, and wildlife, prevention of forest fragmentation,
165.17encouragement of forest consolidation, and expansion of restored native prairie.
165.18    (c) The council may work with the Clean Water Council to identify projects that are
165.19consistent with both the purpose of the outdoor heritage fund and the purpose of the clean
165.20water fund.
165.21    (d) The council may make recommendations to the Legislative-Citizen Commission on
165.22Minnesota Resources on scientific research that will assist in restoring, protecting, and
165.23enhancing wetlands, prairies, forests, and habitat for fish, game, and wildlife, preventing
165.24forest fragmentation, encouraging forest consolidation, and expanding restored native prairie.
165.25    (e) Recommendations of the council, including approval of recommendations for the
165.26outdoor heritage fund, require an affirmative vote of at least nine members of the council.
165.27(f) The council may work with the Clean Water Council, the Legislative-Citizen
165.28Commission on Minnesota Resources, the Board of Water and Soil Resources, soil and
165.29water conservation districts, and experts from Minnesota State Colleges and Universities
165.30and the University of Minnesota in developing the council's recommendations.
165.31(g) The council shall develop and implement a process that ensures that citizens and
165.32potential recipients of funds are included throughout the process, including the development
165.33and finalization of the council's recommendations. The process must include a fair, equitable,
166.1and thorough process for reviewing requests for funding and a clear and easily understood
166.2process for ranking projects.
166.3(h) The council shall use the regions of the state based upon the ecological sections and
166.4subsections developed by the Department of Natural Resources and establish objectives for
166.5each region and subregion to achieve the purposes of the fund outlined in the state
166.6constitution.
166.7(i) The council shall develop and submit to the Legislative Coordinating Commission
166.8plans for the first ten years of funding, and a framework for 25 years of funding, consistent
166.9with statutory and constitutional requirements. The council may use existing plans from
166.10other legislative, state, and federal sources, as applicable.
166.11EFFECTIVE DATE.This section is effective July 1, 2017, and applies to lands acquired
166.12with money appropriated on or after that date.

166.13    Sec. 5. Minnesota Statutes 2016, section 97A.056, is amended by adding a subdivision to
166.14read:
166.15    Subd. 15a. State acquisition of land; restrictions. The state may not use money from
166.16the outdoor heritage fund to acquire in fee simple in whole or in part any land subject to
166.17property taxes or any land owned by a nonprofit organization that was subject to property
166.18taxes before the land's acquisition by the nonprofit organization if (1) subdivision 1b is void,
166.19or (2) sufficient funds to cover the onetime trust fund payment required under subdivision
166.201b have not been appropriated or are not available.
166.21EFFECTIVE DATE.This section is effective July 1, 2017, and applies to land acquired
166.22with money appropriated on or after that date.

166.23    Sec. 6. Minnesota Statutes 2016, section 116P.02, subdivision 1, is amended to read:
166.24    Subdivision 1. Applicability. The definitions in this section apply to this chapter, except
166.25that the definition in subdivision 6 does not apply to section 116P.045.
166.26EFFECTIVE DATE.This section is effective July 1, 2017.

166.27    Sec. 7. Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision to
166.28read:
166.29    Subd. 4a. Land acquisition costs. "Land acquisition costs" means acquisition
166.30coordination costs, costs of engineering services, appraisal fees, attorney fees, taxes,
167.1assessments required at the time of purchase, payments under section 116P.045, and recording
167.2fees.
167.3EFFECTIVE DATE.This section is effective July 1, 2017.

167.4    Sec. 8. Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision to
167.5read:
167.6    Subd. 4b. Land-related property taxes. "Land-related property taxes" means property
167.7taxes collected on behalf of local governments providing land-related services.
167.8EFFECTIVE DATE.This section is effective July 1, 2017.

167.9    Sec. 9. Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision to
167.10read:
167.11    Subd. 4c. Local governments providing land-related services. "Local governments
167.12providing land-related services" means counties, townships, home rule charter and statutory
167.13cities, watershed districts under chapter 103D, sanitary districts under sections 442A.01 to
167.14442A.29, and regional sanitary sewer districts under sections 115.61 to 115.67.
167.15EFFECTIVE DATE.This section is effective July 1, 2017.

167.16    Sec. 10. Minnesota Statutes 2016, section 116P.02, is amended by adding a subdivision
167.17to read:
167.18    Subd. 4d. Total payment for the land. "Total payment for the land" means the total
167.19price paid for the land including land acquisition costs, but excluding any in-kind services
167.20provided by nongovernmental entities at no cost to the state.
167.21EFFECTIVE DATE.This section is effective July 1, 2017.

167.22    Sec. 11. [116P.045] ENVIRONMENT AND NATURAL RESOURCES TRUST FUND
167.23PAYMENT ACCOUNT.
167.24    Subdivision 1. Account created. An environment and natural resources trust fund
167.25payment account is created in the special revenue fund. The State Board of Investment must
167.26ensure the account is invested under section 11A.24. The commissioner of management
167.27and budget must credit to the account all money appropriated to the account and all money
167.28earned by the account. The principal of the account and any unexpended earnings must be
167.29invested and reinvested by the State Board of Investment. Nothing in this section limits the
168.1source of contributions to the account. Money in the account must be used only for the
168.2purposes of this section.
168.3    Subd. 2. Trust fund payment; appropriation. (a) State land acquired in fee simple in
168.4whole or in part with money appropriated from the environment and natural resources trust
168.5fund is eligible for a onetime trust fund payment as provided under this subdivision. The
168.6percentage of the total acres acquired in any purchase that is eligible for a trust fund payment
168.7under this section is equal to the percentage of the total payment for the land funded from
168.8environment and natural resources trust fund revenues. If the percentage of the total payment
168.9for the land from the environment and natural resources trust fund is ten percent or less, the
168.10parcel is ineligible for a payment under this section; if the percentage is 90 percent or more,
168.11the entire parcel is eligible for the payment under this section. The commissioner of natural
168.12resources must certify to the commissioner of revenue and the county in which land eligible
168.13for a payment under this section is purchased the total number of acres purchased, the total
168.14payment for the land, and the amount of environmental and natural resources trust fund
168.15revenues used for the purchase. The trust fund payment is equal to 30 times the land-related
168.16property taxes assessed on the eligible portion of the land in the year prior to the year in
168.17which the land is acquired. If the land was acquired from a private party that was exempt
168.18from paying property taxes, the payments must be based on 30 times the property taxes
168.19assessed on comparable land in the year prior to the year in which the land is acquired. By
168.20September 1 each year, the county in which the land is acquired must provide the
168.21commissioner of revenue with information necessary in a form determined by the
168.22commissioner of revenue to make this determination for all lands acquired for the 12-month
168.23period ending on June 30 of that year. The commissioner of revenue must make a trust fund
168.24payment on behalf of each county on the same date as the first payment under section
168.25273.1384, subdivision 4, each year for all land acquired in that county in the 12-month
168.26period ending on June 30 of that year to the State Board of Investment as required under
168.27this section. The money so deposited is money paid to the counties and may only be
168.28withdrawn for the purposes allowed under section 477A.30. The commissioner of revenue
168.29must inform each county by October 15 each year of the amount deposited on the county's
168.30behalf with the State Board of Investment under this subdivision.
168.31(b) The amount necessary to make the payments required under this subdivision is
168.32annually appropriated from the environment and natural resources trust fund payment
168.33account to the commissioner of revenue for deposit in the account for county joint trust
168.34fund payments in section 11A.237.
169.1(c) If the land for which a payment under this subdivision is made is subsequently sold
169.2to another entity and is no longer available for the use for which it was purchased, the
169.3original amount of the payment for that land under paragraph (a) must be withdrawn by the
169.4commissioner of revenue from the account established under section 11A.237 and returned
169.5to the environment and natural resources trust fund. If only a portion of the land is sold and
169.6no longer available for the use for which it was purchased, the amount of the original trust
169.7fund payment returned is reduced proportionately based on the portion of the original
169.8purchase that is sold. The holder of the land must inform the commissioner of revenue and
169.9the county in which the land is sold of the sale and provide them with any information
169.10necessary to calculate the required withdrawal from the account. The withdrawal is made
169.11along with withdrawals under section 477A.30 in the calendar year after the year in which
169.12the land is sold.
169.13    Subd. 3. County requirements. To receive a trust fund payment under this section, a
169.14county board must enter into an agreement with the State Board of Investment to allow the
169.15commissioner of revenue to make deposits and withdrawals on behalf of the county into
169.16and out of the county joint trust fund account under section 11A.237.
169.17    Subd. 4. Ineligible for other payments. Land receiving a trust fund payment under this
169.18section is not eligible for payments under sections 477A.11 to 477A.14, but is eligible for
169.19distribution of withdrawals from the county joint trust fund account under section 477A.30.
169.20    Subd. 5. State acquisition of land; restrictions. The state may not use money from the
169.21environment and natural resources trust fund to acquire in fee simple in whole or in part
169.22any land subject to property taxes or any land owned by a nonprofit organization that was
169.23subject to property taxes before the land's acquisition by the nonprofit organization if (1)
169.24subdivision 2 is void, or (2) sufficient funds to cover the onetime trust fund payment required
169.25under subdivision 2 have not been appropriated or are not available.
169.26EFFECTIVE DATE.This section is effective July 1, 2017, and applies to land acquired
169.27with money appropriated on or after that date.

169.28    Sec. 12. Minnesota Statutes 2016, section 116P.08, subdivision 1, is amended to read:
169.29    Subdivision 1. Expenditures. Money in the trust fund may be spent only for:
169.30(1) the reinvest in Minnesota program as provided in section 84.95, subdivision 2;
169.31(2) research that contributes to increasing the effectiveness of protecting or managing
169.32the state's environment or natural resources;
170.1(3) collection and analysis of information that assists in developing the state's
170.2environmental and natural resources policies;
170.3(4) enhancement of public education, awareness, and understanding necessary for the
170.4protection, conservation, restoration, and enhancement of air, land, water, forests, fish,
170.5wildlife, and other natural resources;
170.6(5) capital projects for the preservation and protection of unique natural resources;
170.7(6) activities that preserve or enhance fish, wildlife, land, air, water, and other natural
170.8resources that otherwise may be substantially impaired or destroyed in any area of the state;
170.9(7) administrative and investment expenses incurred by the State Board of Investment
170.10in investing deposits to the trust fund; and
170.11(8) administrative expenses subject to the limits in section 116P.09.; and
170.12(9) payments to the environment and natural resources trust fund payment account as
170.13required in section 116P.045.
170.14EFFECTIVE DATE.This section is effective July 1, 2017, and applies to lands acquired
170.15with money appropriated on or after that date.

170.16    Sec. 13. Minnesota Statutes 2016, section 116P.08, subdivision 4, is amended to read:
170.17    Subd. 4. Legislative recommendations. (a) Funding may be provided only for those
170.18projects that meet the categories established in subdivision 1.
170.19(b) The commission must recommend an annual or biennial legislative bill to make
170.20appropriations from the trust fund for the purposes provided in subdivision 1. The
170.21recommendations must be submitted to the governor for inclusion in the biennial budget
170.22and supplemental budget submitted to the legislature.
170.23(c) The commission may recommend regional block grants for a portion of trust fund
170.24expenditures to partner with existing regional organizations that have strong citizen
170.25involvement, to address unique local needs and capacity, and to leverage all available funding
170.26sources for projects.
170.27(d) The commission may recommend the establishment of an emerging issues account
170.28in its legislative bill for funding emerging issues, which come up unexpectedly, but which
170.29still adhere to the commission's strategic plan, to be approved by the governor after initiation
170.30and recommendation by the commission.
171.1(e) The council must recommend an appropriation of money from the environment and
171.2natural resources trust fund adequate to make the required transfers to the environment and
171.3natural resources trust fund payment account according to section 116P.045.
171.4(f) Money in the trust fund may not be spent except under an appropriation by law.
171.5EFFECTIVE DATE.This section is effective July 1, 2017, and applies to lands acquired
171.6with money appropriated on or after that date.

171.7    Sec. 14. Minnesota Statutes 2016, section 477A.10, is amended to read:
171.8477A.10 NATURAL RESOURCES LAND PAYMENTS IN LIEU; PURPOSE.
171.9The purposes of sections 477A.11 to 477A.14 are:
171.10(1) to compensate local units of government for the loss of tax base from state ownership
171.11of land, except land acquired on or after July 1, 2017, receiving trust fund payments from
171.12the outdoor heritage trust fund payment account or the environment and natural resources
171.13trust fund payment account, and the need to provide services for state land;
171.14(2) to address the disproportionate impact of state land ownership on local units of
171.15government with a large proportion of state land; and
171.16(3) to address the need to manage state lands held in trust for the local taxing districts.
171.17EFFECTIVE DATE.This section is effective the day following final enactment.

171.18    Sec. 15. Minnesota Statutes 2016, section 477A.11, is amended by adding a subdivision
171.19to read:
171.20    Subd. 9. Environment and natural resources trust fund lands. Notwithstanding any
171.21other provision of law to the contrary, parcels or portions of parcels of land purchased on
171.22or after July 1, 2017, and eligible for a trust fund payment under section 116P.045 are not
171.23included in the definitions of the lands described in subdivisions 3 to 7 and are excluded
171.24from payments under sections 477A.11 to 477A.14.
171.25EFFECTIVE DATE.This section is effective beginning with aids payable in 2018.

171.26    Sec. 16. Minnesota Statutes 2016, section 477A.11, is amended by adding a subdivision
171.27to read:
171.28    Subd. 10. Outdoor heritage lands. Notwithstanding any other provision of law to the
171.29contrary, parcels or portions of parcels of land purchased on or after July 1, 2017, and
171.30eligible for a trust fund payment under section 97A.056, subdivision 1b, are not included
172.1in the definitions of the lands described in subdivisions 3 to 7 and are excluded from
172.2payments under sections 477A.11 to 477A.14.
172.3EFFECTIVE DATE.This section is effective beginning with aids payable in 2018.

172.4    Sec. 17. [477A.30] ANNUAL COUNTY JOINT TRUST FUND WITHDRAWALS
172.5AND DISTRIBUTION FOR ENVIRONMENT AND NATURAL RESOURCES
172.6TRUST FUND LANDS AND OUTDOOR HERITAGE LANDS.
172.7    Subdivision 1. Commissioner of revenue; withdrawals and payments. No later than
172.8November 15 each year, the commissioner of revenue shall make a withdrawal on behalf
172.9of all eligible counties from the county joint trust fund account established under section
172.1011A.237 equal to the lesser of (1) the total amount of necessary withdrawals certified by
172.11the counties under subdivision 2 for the year, or (2) 5-1/2 percent of the amount in that
172.12account as of September 1 of that year as determined by the executive director of the State
172.13Board of Investment. The commissioner shall distribute the certified withdrawal amounts
172.14to each county by November 30. If the amount of the withdrawal is less than the total
172.15certified withdrawal amounts under subdivision 2, the commissioner shall reduce the
172.16distribution to each county proportionately.
172.17    Subd. 2. Certification of needed withdrawal; distribution of funds. (a) Beginning in
172.18calendar year 2018, by September 1 each year, a county for whom a trust fund payment has
172.19been made on its behalf under section 97A.056, subdivision 1b, or 116P.045, subdivision
172.202, shall calculate and certify to the commissioner of revenue the amount of trust fund
172.21withdrawals needed under this section. The amount of the withdrawal for each parcel of
172.22land for which a county received a trust fund payment under either provision is as follows:
172.23(1) for the year in which a trust fund payment is made to a county for a parcel of land,
172.24the withdrawal for that parcel is equal to:
172.25(i) the remaining taxes owed to the local governments providing land-related services
172.26for taxes spread that year for a parcel acquired between January 1 and June 30; or
172.27(ii) the amount of taxes paid to the local governments providing land-related services
172.28on the parcel in the previous year if the parcel was acquired before January 1 of the current
172.29year. The county must distribute the amount by December 15 to all local governments
172.30providing land-related services based on the location of the parcel and the local governments'
172.31share of the total tax; and
172.32(2) for all subsequent years, the withdrawal for a parcel is equal to the taxes that would
172.33be owed based on the appraised value of the land and the taxes assessed by local governments
173.1providing land-related services on comparable, privately owned adjacent land. For purposes
173.2of this subdivision, "appraised value" is determined in the manner described in section
173.3477A.12, subdivision 3. The county treasurer must allocate the withdrawn funds among the
173.4local governments providing land-related services on the same basis as if the funds were
173.5taxes on the land received in that year. The county treasurer must pay the allocation to all
173.6eligible local governments by December 15 of the year in which the withdrawal is made.
173.7The county's share of the payment must be deposited in the county general fund.
173.8(b) If the distribution to a county under subdivision 1 is less than its total withdrawal
173.9amounts certified under this subdivision, all distributions under paragraph (a) are reduced
173.10proportionately.
173.11(c) The local governments receiving a payment under this section must use the money
173.12to fund land-related services. For purposes of this paragraph, "land-related services" means
173.13services used to restore, enhance, and protect the land and its fish and wildlife habitat and
173.14provide any other public services benefiting the land and users of the land, including access
173.15and services to the public accessing and using the land and direct and indirect capital and
173.16operating costs for (1) roads, bridges, and trails; (2) public safety and emergency response
173.17services; (3) environmental, recreational, and resource development and management; and
173.18(4) similar costs.
173.19(d) For purposes of this subdivision, "local governments providing land-related services"
173.20has the meaning given in section 116P.02, subdivision 4c.
173.21EFFECTIVE DATE.This section is effective January 1, 2018, and applies to land
173.22acquired with money appropriated on or after July 1, 2017.

173.23    Sec. 18. DELAYED REQUIREMENT FOR TRUST FUND PAYMENTS FOR
173.24APPROPRIATIONS MADE FOR FISCAL YEAR 2018.
173.25(a) Notwithstanding Minnesota Statutes, section 97A.056, subdivision 15a, the state
173.26may appropriate money for fiscal year 2018 from the outdoor heritage fund to purchase
173.27land without appropriating sufficient funds to cover the onetime trust fund payment required
173.28under Minnesota Statutes, section 97A.056, subdivision 1b. The amount necessary to make
173.29the payment required under Minnesota Statutes, section 97A.056, subdivision 1b, for all
173.30fiscal year 2018 appropriations for land purchases must be deposited in the outdoor heritage
173.31trust fund payment account by August 1, 2018, or the restriction on land acquisition under
173.32Minnesota Statutes, section 97A.056, subdivision 15a, applies to any land acquisition
173.33authorized with fiscal year 2018 funds that have not yet been acquired.
174.1(b) Notwithstanding Minnesota Statutes, section 116P.045, subdivision 5, the state may
174.2appropriate money in fiscal year 2018 from the environment and natural resources trust
174.3fund to purchase land without appropriating sufficient funds to cover the onetime trust fund
174.4payment required under Minnesota Statutes, section 116P.045, subdivision 2. The amount
174.5necessary to make the payment required under Minnesota Statutes, section 116P.045,
174.6subdivision 2, for all fiscal year 2018 appropriations for land purchases must be deposited
174.7in the environment and natural resources trust fund payment account by August 1, 2018, or
174.8the restriction on land acquisition under Minnesota Statutes, section 116P.045, subdivision
174.95, applies to any land acquisition authorized with fiscal year 2018 funds that have not yet
174.10been acquired.
174.11EFFECTIVE DATE.This section is effective the day following final enactment.


174.14    Section 1. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991,
174.15chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 2003,
174.16First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, article 5,
174.17section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read:
174.18    Subd. 2. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law,
174.19ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
174.20impose an additional sales tax of up to one and three-quarter percent on sales transactions
174.21which are described in Minnesota Statutes 2000, section 297A.01, subdivision 3, clause (c).
174.22The imposition of this tax shall not be subject to voter referendum under either state law or
174.23city charter provisions. When the city council determines that the taxes imposed under this
174.24paragraph at a rate of three-quarters of one percent and other sources of revenue produce
174.25revenue sufficient to pay debt service on bonds in the principal amount of $40,285,000 plus
174.26issuance and discount costs, issued for capital improvements at the Duluth Entertainment
174.27and Convention Center, which include a new arena, the rate of tax under this subdivision
174.28must be reduced by three-quarters of one percent.
174.29(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section
174.30477A.016 , or any other law, ordinance, or city charter provision to the contrary, the city of
174.31Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent
174.32on sales transactions which are described in Minnesota Statutes 2000, section 297A.01,
174.33subdivision 3, clause (c). This tax expires when the city council determines that the tax
174.34imposed under this paragraph, along with the tax imposed under section 22, paragraph (b),
175.1has produced revenues sufficient to pay the debt service on bonds in a principal amount of
175.2no more than $18,000,000, plus issuance and discount costs, to finance capital improvements
175.3to public facilities to support tourism and recreational activities in that portion of the city
175.4west of 34th 14th Avenue West and the area south of and including Skyline Parkway.
175.5(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation bonds
175.6under Minnesota Statutes, chapter 475, plus an additional amount to pay for the costs of
175.7issuance and any premiums. The proceeds may be used to finance capital improvements to
175.8public facilities that support tourism and recreational activities in the portion of the city
175.9west of 34th 14th Avenue West and the area south of and including Skyline Parkway, as
175.10described in paragraph (b). The issuance of the bonds is subject to the provisions of
175.11Minnesota Statutes, chapter 475, except no election shall be required unless required by the
175.12city charter. The bonds shall not be included in computing net debt. The revenues from the
175.13taxes that the city of Duluth may impose under paragraph (b) and under section 22, paragraph
175.14(b), may be pledged to pay principal of and interest on such bonds.
175.15EFFECTIVE DATE.This section is effective the day after the governing body of the
175.16city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021,
175.17subdivisions 2 and 3.

175.18    Sec. 2. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, article
175.198, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and Laws
175.202014, chapter 308, article 3, section 22, is amended to read:
175.21    Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS.
175.22    (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or ordinance,
175.23or city charter provision to the contrary, the city of Duluth may, by ordinance, impose an
175.24additional tax of one percent upon the gross receipts from the sale of lodging for periods of
175.25less than 30 days in hotels and motels located in the city. The tax shall be collected in the
175.26same manner as the tax set forth in the Duluth city charter, section 54(d), paragraph one.
175.27The imposition of this tax shall not be subject to voter referendum under either state law or
175.28city charter provisions.
175.29(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section
175.30477A.016 , or any other law, ordinance, or city charter provision to the contrary, the city of
175.31Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent
175.32on the gross receipts from the sale of lodging for periods of less than 30 days in hotels and
175.33motels located in the city. This tax expires when the city council first determines that the
175.34tax imposed under this paragraph, along with the tax imposed under section 21, paragraph
176.1(b), has produced revenues sufficient to pay the debt service on bonds in a principal amount
176.2of no more than $18,000,000, plus issuance and discount costs, to finance capital
176.3improvements to public facilities to support tourism and recreational activities in that portion
176.4of the city west of 34th 14th Avenue West and the area south of and including Skyline
176.5Parkway.
176.6EFFECTIVE DATE.This section is effective the day after the governing body of the
176.7city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021,
176.8subdivisions 2 and 3.

176.9    Sec. 3. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by Laws
176.101998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9, and
176.11Laws 2009, chapter 88, article 4, section 14, is amended to read:
176.12    Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by subdivisions
176.131 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or a
176.14portion of the expenses of constructing and improving facilities as part of an urban
176.15revitalization project in downtown Mankato known as Riverfront 2000. Authorized expenses
176.16include, but are not limited to, acquiring property and paying relocation expenses related
176.17to the development of Riverfront 2000 and related facilities, and securing or paying debt
176.18service on bonds or other obligations issued to finance the construction of Riverfront 2000
176.19and related facilities. For purposes of this section, "Riverfront 2000 and related facilities"
176.20means a civic-convention center, an arena, a riverfront park, a technology center and related
176.21educational facilities, and all publicly owned real or personal property that the governing
176.22body of the city determines will be necessary to facilitate the use of these facilities, including
176.23but not limited to parking, skyways, pedestrian bridges, lighting, and landscaping. It also
176.24includes the performing arts theatre and the Southern Minnesota Women's Hockey Exposition
176.25Center, for use by Minnesota State University, Mankato.
176.26    (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
176.27by voters at the November 8, 2016, general election, the city may by ordinance also use
176.28revenues from taxes authorized under subdivisions 1 and 2, up to a maximum of $47,000,000,
176.29plus associated bond costs, to pay all or a portion of the expenses of the following capital
176.30projects:
176.31    (1) construction and improvements to regional recreational facilities including existing
176.32hockey and curling rinks, a baseball park, youth athletic fields and facilities, the municipal
176.33swimming pool including improvements to make the pool compliant with the Americans
176.34with Disabilities Act, and indoor regional athletic facilities;
177.1    (2) improvements to flood control and the levee system;
177.2(3) water quality improvement projects in Blue Earth and Nicollet Counties;
177.3(4) expansion of the regional transit building and related multimodal transit
177.4improvements;
177.5(5) regional public safety and emergency communications improvements and equipment;
177.6and
177.7(6) matching funds for improvements to publicly owned regional facilities including a
177.8historic museum, supportive housing, and a senior center.
177.9EFFECTIVE DATE.This section is effective the day after the governing body of the
177.10city of Mankato and its chief clerical officer comply with Minnesota Statutes, section
177.11645.021, subdivisions 2 and 3.

177.12    Sec. 4. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by Laws
177.132005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter 366,
177.14article 7, section 10, is amended to read:
177.15    Subd. 4. Expiration of taxing authority and expenditure limitation. The authority
177.16granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax shall
177.17expire on at the earlier of when revenues are sufficient to pay off the bonds, including
177.18interest and all other associated bond costs authorized under subdivision 5, or December
177.1931, 2022 2038.
177.20EFFECTIVE DATE.This section is effective the day following final enactment without
177.21local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.

177.22    Sec. 5. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:
177.23    Subd. 5. Bonds. (a) The city of Mankato may issue general obligation bonds of the city
177.24in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities, without
177.25election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or
177.26a tax to pay them. The debt represented by bonds issued for Riverfront 2000 and related
177.27facilities shall not be included in computing any debt limitations applicable to the city of
177.28Mankato, and the levy of taxes required by section 475.61 to pay principal of and interest
177.29on the bonds shall not be subject to any levy limitation or be included in computing or
177.30applying any levy limitation applicable to the city.
178.1    (b) The city of Mankato may issue general obligation bonds of the city in an amount not
178.2to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b), without
178.3election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or
178.4a tax to pay them. The debt represented by bonds under this paragraph shall not be included
178.5in computing any debt limitations applicable to the city of Mankato, and the levy of taxes
178.6required by Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds,
178.7and shall not be subject to any levy limitation or be included in computing or applying any
178.8levy limitation applicable to the city. The city may use tax revenue in excess of one year's
178.9principal interest reserve for intended annual bond payments to pay all or a portion of the
178.10cost of capital improvements authorized in subdivision 3.
178.11EFFECTIVE DATE.This section is effective the day following final enactment without
178.12local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.

178.13    Sec. 6. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by Laws
178.142006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter 7,
178.15article 4, section 4, is amended to read:
178.16    Subdivision 1. Sales tax authorized. (a) Notwithstanding Minnesota Statutes, section
178.17477A.016, or any other contrary provision of law, ordinance, or city charter, the city of
178.18Hermantown may, by ordinance, impose an additional sales tax of up to one percent on
178.19sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur within
178.20the city. The proceeds of the tax imposed under this section must be used to meet the costs
178.21of:
178.22    (1) extending a sewer interceptor line;
178.23    (2) construction of a booster pump station, reservoirs, and related improvements to the
178.24water system; and
178.25    (3) construction of a building containing a police and fire station and an administrative
178.26services facility.
178.27(b) If the city imposed a sales tax of only one-half of one percent under paragraph (a),
178.28it may increase the tax to one percent to fund the purposes under paragraph (a) provided it
178.29is approved by the voters at a general election held before December 31, 2012.
178.30(c) As approved by the voters at the November 8, 2016, general election, the proceeds
178.31under this section may also be used to meet the costs of debt service payments for
178.32construction of the Hermantown Wellness Center.
179.1EFFECTIVE DATE.This section is effective the day after the governing body of the
179.2city of Hermantown and its chief clerical officer comply with Minnesota Statutes, section
179.3645.021, subdivisions 2 and 3.

179.4    Sec. 7. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by Laws
179.52006, chapter 259, article 3, section 4, is amended to read:
179.6    Subd. 4. Termination. The tax authorized under this section terminates on March 31,
179.72026 at the earlier of (1) December 31, 2036, or (2) when the Hermantown City Council
179.8first determines that sufficient funds have been received from the tax to fund the costs,
179.9including bonds and associated bond costs for the uses specified in subdivision 1. Any funds
179.10remaining after completion of the improvements and retirement or redemption of the bonds
179.11may be placed in the general fund of the city.
179.12EFFECTIVE DATE.This section is effective the day following final enactment without
179.13local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.

179.14    Sec. 8. Laws 1999, chapter 243, article 4, section 17, subdivision 3, is amended to read:
179.15    Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by subdivisions
179.161 and 2 must be used by the city to pay the cost of collecting the taxes and to pay for
179.17construction and improvement of a civic and community center and recreational facilities
179.18to serve all ages, including seniors and youth. Authorized expenses include, but are not
179.19limited to, acquiring property, paying construction and operating expenses related to the
179.20development of an authorized facility, funding facilities replacement reserves, and paying
179.21debt service on bonds or other obligations issued to finance the construction or expansion
179.22of an authorized facility. The capital expenses for all projects authorized under this
179.23subdivision that may be paid with these taxes are limited to $9,000,000, plus an amount
179.24equal to the costs related to issuance of the bonds and funding facilities replacement reserves.
179.25    (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
179.26by the voters at the November 8, 2016, general election, the city of New Ulm may by
179.27ordinance also use revenues from taxes authorized under subdivisions 1 and 2, up to a
179.28maximum of $14,800,000, plus associated bond costs, to pay all or a portion of the expenses
179.29of the following capital projects:
179.30    (1) constructing an indoor water park and making safety improvements to the existing
179.31recreational center pool;
179.32    (2) constructing an indoor playground, a wellness center, and a gymnastics facility;
180.1    (3) constructing a winter multipurpose dome;
180.2    (4) making improvements to Johnson Park Grandstand; and
180.3    (5) making improvements to the entrance road and parking at Hermann Heights Park.
180.4EFFECTIVE DATE.This section is effective the day after the governing body of the
180.5city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
180.6645.021, subdivisions 2 and 3.

180.7    Sec. 9. Laws 1999, chapter 243, article 4, section 17, is amended by adding a subdivision
180.8to read:
180.9    Subd. 4a. Bonding authority; additional use and extension of tax. As approved by
180.10the voters at the November 8, 2016, general election, and in addition to the bonds issued
180.11under subdivision 4, the city of New Ulm may issue general obligation bonds of the city in
180.12an amount not to exceed $14,800,000 for the projects listed in subdivision 3, paragraph (b).
180.13The debt represented by bonds under this subdivision shall not be included in computing
180.14any debt limitations applicable to the city of New Ulm, and the levy of taxes required by
180.15Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds, and shall
180.16not be subject to any levy limitation or be included in computing or applying any levy
180.17limitation applicable to the city.
180.18EFFECTIVE DATE.This section is effective the day after the governing body of the
180.19city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
180.20645.021, subdivisions 2 and 3.

180.21    Sec. 10. Laws 1999, chapter 243, article 4, section 17, subdivision 5, is amended to read:
180.22    Subd. 5. Termination of taxes. The taxes imposed under subdivisions 1 and 2 expire
180.23when the city council determines that sufficient funds have been received from the taxes to
180.24finance the capital and administrative costs for the acquisition, construction, and improvement
180.25of facilities described in subdivision 3, including the additional use of revenues under
180.26subdivision 3, paragraph (b), as approved by the voters at the November 8, 2016, general
180.27election, and to prepay or retire at maturity the principal, interest, and premium due on any
180.28bonds issued for the facilities under subdivision 4 subdivisions 4 and 4a. Any funds remaining
180.29after completion of the project and retirement or redemption of the bonds may be placed in
180.30the general fund of the city. The taxes imposed under subdivisions 1 and 2 may expire at
180.31an earlier time if the city so determines by ordinance.
181.1EFFECTIVE DATE.This section is effective the day after the governing body of the
181.2city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section
181.3645.021, subdivisions 2 and 3.

181.4    Sec. 11. Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by Laws
181.52008, chapter 366, article 7, section 12, is amended to read:
181.6    Subdivision 1. Sales and use tax. (a) Notwithstanding Minnesota Statutes, section
181.7477A.016 , or any other provision of law, ordinance, or city charter, if approved by the city
181.8voters at the first municipal general election held after the date of final enactment of this
181.9act or at a special election held November 2, 1999, the city of Proctor may impose by
181.10ordinance a sales and use tax of up to one-half of one percent for the purposes specified in
181.11subdivision 3. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
181.12administration, collection, and enforcement of the tax authorized under this subdivision.
181.13(b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of
181.14law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional
181.15sales and use tax of up to one-half of one percent as approved by the voters at the November
181.164, 2014, election. The revenues received from the additional tax must be used for the purposes
181.17specified in subdivision 3, paragraph (b).
181.18EFFECTIVE DATE.This section is effective the day after the governing body of the
181.19city of Proctor and its chief clerical officer comply with Minnesota Statutes, section 645.021,
181.20subdivisions 2 and 3.

181.21    Sec. 12. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 2,
181.22as amended by Laws 2006, chapter 259, article 3, section 6, is amended to read:
181.23    Subd. 2. Use of revenues. The proceeds of the tax imposed under this section shall be
181.24used to pay for lake water quality improvement projects as detailed in the Shell Rock River
181.25watershed plan and as directed by the Shell Rock River Watershed Board. Notwithstanding
181.26any provision of statute, other law, or city charter to the contrary, the city shall transfer all
181.27revenues from the tax imposed under subdivision 1, as soon as they are received, to the
181.28Shell Rock River Watershed District. The city is not required to review the intended uses
181.29of the revenues by the watershed district, nor is the watershed district required to submit to
181.30the city proposed budgets, statements, or invoices explaining the intended uses of the
181.31revenues as a prerequisite for the transfer of the revenues. The Shell Rock River Watershed
181.32District shall appear before the city of Albert Lea City Council on a biannual basis to present
181.33a report of its activities, expenditures, and intended uses of the city sales tax revenue.
182.1EFFECTIVE DATE.This section is effective the day after the governing body of the
182.2city of Albert Lea and its chief clerical officer comply with Minnesota Statutes, section
182.3645.021, subdivisions 2 and 3.

182.4    Sec. 13. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 4,
182.5as amended by Laws 2014, chapter 308, article 3, section 23, is amended to read:
182.6    Subd. 4. Termination of taxes. The taxes imposed under this section expire at the earlier
182.7of (1) 15 30 years after the taxes are first imposed, or (2) when the city council first
182.8determines that the amount of revenues raised to pay for the projects under subdivision 2,
182.9shall meet or exceed the sum of $15,000,000 $30,000,000. Any funds remaining after
182.10completion of the projects may be placed in the general fund of the city.
182.11EFFECTIVE DATE.This section is effective the day after the governing body of the
182.12city of Albert Lea and its chief clerical officer comply with Minnesota Statutes, section
182.13645.021, subdivisions 2 and 3.

182.14    Sec. 14. Laws 2008, chapter 366, article 7, section 20, is amended to read:
182.15    Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED.
182.16    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes,
182.17section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the
182.18approval of the voters on November 7, 2006, the city of North Mankato may impose by
182.19ordinance a sales and use tax of one-half of one percent for the purposes specified in
182.20subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
182.21administration, collection, and enforcement of the taxes authorized under this subdivision.
182.22    Subd. 2. Use of revenues. Revenues received from the tax authorized by subdivision 1
182.23must be used to pay all or part of the capital costs of the following projects:
182.24    (1) the local share of the Trunk Highway 14/County State-Aid Highway 41 interchange
182.25project;
182.26    (2) development of regional parks and hiking and biking trails, including construction
182.27of indoor regional athletic facilities;
182.28    (3) expansion of the North Mankato Taylor Library;
182.29    (4) riverfront redevelopment; and
182.30    (5) lake improvement projects.
183.1    The total amount of revenues from the tax in subdivision 1 that may be used to fund
183.2these projects is $6,000,000 $15,000,000 plus any associated bond costs.
183.3    Subd. 2a. Authorization to extend the tax. Notwithstanding Minnesota Statutes, section
183.4297A.99, subdivision 3, the North Mankato city council may, by resolution, extend the tax
183.5authorized under subdivision 1 to cover an additional $9,000,000 in bonds, plus associated
183.6bond costs, to fund the projects in subdivision 2 as approved by the voters at the November
183.78, 2016, general election.
183.8    Subd. 3. Bonds. (a) The city of North Mankato, pursuant to the approval of the voters
183.9at the November 7, 2006 referendum authorizing the imposition of the taxes in this section,
183.10may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative
183.11expenses for the projects described in subdivision 2, in an amount that does not exceed
183.12$6,000,000. A separate election to approve the bonds under Minnesota Statutes, section
183.13475.58 , is not required.
183.14(b) The city of North Mankato, pursuant to approval of the voters at the November 8,
183.152016, referendum extending the tax fee to provide additional revenue to be spent for the
183.16projects in subdivision 2, may issue additional bonds under Minnesota Statutes, chapter
183.17475, to pay capital and administrative expenses for those projects in an amount that does
183.18not exceed $9,000,000. A separate election to approve the bonds under Minnesota Statutes,
183.19section 475.58, is not required.
183.20    (b) (c) The debt represented by the bonds is not included in computing any debt limitation
183.21applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to
183.22pay principal and interest on the bonds is not subject to any levy limitation.
183.23    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires when the
183.24city council determines that the amount of revenues received from the taxes to pay for the
183.25projects under subdivision 2 first equals or exceeds $6,000,000 plus the additional amount
183.26needed to pay the costs related to issuance of bonds under subdivision 3, including interest
183.27on the bonds at the earlier of December 31, 2038, or when revenues from the taxes first
183.28equal or exceed $15,000,000 plus the additional amount needed to pay costs related to
183.29issuance of bonds under subdivision 3, including interest. Any funds remaining after
183.30completion of the projects and retirement or redemption of the bonds shall be placed in a
183.31capital facilities and equipment replacement fund of the city. The tax imposed under
183.32subdivision 1 may expire at an earlier time if the city so determines by ordinance.
184.1EFFECTIVE DATE.This section is effective the day after the governing body of the
184.2city of North Mankato and its chief clerical officer comply with Minnesota Statutes, section
184.3645.021, subdivisions 2 and 3.

184.4    Sec. 15. CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.
184.5    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
184.6section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
184.7charter, and as approved by the voters at a special election on March 7, 2016, the city of
184.8East Grand Forks may impose, by ordinance, a sales and use tax of up to one percent for
184.9the purposes specified in subdivision 2. Except as otherwise provided in this section, the
184.10provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
184.11collection, and enforcement of the tax authorized under this subdivision.
184.12    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
184.13under subdivision 1 must be used by the city of East Grand Forks to pay the costs of
184.14collecting and administering the tax and to finance the capital and administrative costs of
184.15improvement to the city public swimming pool. Authorized expenses include, but are not
184.16limited to, paying construction expenses related to the renovation and the development of
184.17these facilities and improvements, and securing and paying debt service on bonds issued
184.18under subdivision 3 or other obligations issued to finance improvement of the public
184.19swimming pool in the city of East Grand Forks
184.20    Subd. 3. Bonding authority. (a) The city of East Grand Forks may issue bonds under
184.21Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
184.22authorized in subdivision 2. The aggregate principal amount of bonds issued under this
184.23subdivision may not exceed $2,820,000, plus an amount to be applied to the payment of
184.24the costs of issuing the bonds. The bonds may be paid from or secured by any funds available
184.25to the city of East Grand Forks, including the tax authorized under subdivision 1. The
184.26issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60
184.27and 275.61.
184.28(b) The bonds are not included in computing any debt limitation applicable to the city
184.29of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61, to
184.30pay principal and interest on the bonds is not subject to any levy limitation. A separate
184.31election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
184.32    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the later
184.33of: (1) five years after the tax is first imposed; or (2) when the city council determines that
184.34$2,820,000 has been received from the tax to pay for the cost of the projects authorized
185.1under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the
185.2bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
185.3after payment of all such costs and retirement or redemption of the bonds shall be placed
185.4in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
185.5time if the city so determines by ordinance.
185.6EFFECTIVE DATE.This section is effective the day after the governing body of the
185.7city of East Grand Forks and its chief clerical officer comply with Minnesota Statutes,
185.8section 645.021, subdivisions 2 and 3.

185.9    Sec. 16. CITY OF FAIRMONT; LOCAL TAX AUTHORIZED.
185.10    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
185.11section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
185.12charter, and as approved by the voters at the general election of November 8, 2016, the city
185.13of Fairmont may impose, by ordinance, a sales and use tax of one-half of one percent for
185.14the purposes specified in subdivision 2. Except as otherwise provided in this section, the
185.15provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
185.16collection, and enforcement of the tax authorized under this subdivision.
185.17    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
185.18under subdivision 1 must be used by the city of Fairmont to pay the costs of collecting and
185.19administering the tax and to finance the capital and administrative costs of constructing and
185.20funding recreational amenities, trails, and a community center. The total that may be raised
185.21from the tax to pay for these projects is limited to $15,000,000, plus the costs related to the
185.22issuance and paying debt service on bonds for these projects.
185.23    Subd. 3. Bonding authority. (a) The city of Fairmont may issue bonds under Minnesota
185.24Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
185.25subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
185.26not exceed $15,000,000, plus an amount to be applied to the payment of the costs of issuing
185.27the bonds. The bonds may be paid from or secured by any funds available to the city of
185.28Fairmont, including the tax authorized under subdivision 1. The issuance of bonds under
185.29this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
185.30(b) The bonds are not included in computing any debt limitation applicable to the city
185.31of Fairmont, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
185.32and interest on the bonds is not subject to any levy limitation. A separate election to approve
185.33the bonds under Minnesota Statutes, section 475.58, is not required.
186.1    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
186.2earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines
186.3that $15,000,000, plus an amount sufficient to pay the costs related to issuing the bonds
186.4authorized under subdivision 3, including interest on the bonds, has been received from the
186.5tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining
186.6after payment of all such costs and retirement or redemption of the bonds shall be placed
186.7in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
186.8time if the city so determines by ordinance.
186.9EFFECTIVE DATE.This section is effective the day after the governing body of the
186.10city of Fairmont and its chief clerical officer comply with Minnesota Statutes, section
186.11645.021, subdivisions 2 and 3.

186.12    Sec. 17. CITY OF FERGUS FALLS; TAXES AUTHORIZED.
186.13    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes,
186.14section 297A.99, subdivision 1, section 477A.016, or any other law, ordinance, or city
186.15charter, and as approved by the voters at the November 8, 2016, general election, the city
186.16of Fergus Falls may impose, by ordinance, a sales and use tax of up to one-half of one
186.17percent for the purposes specified in subdivision 2. Except as otherwise provided in this
186.18section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
186.19administration, collection, and enforcement of the tax authorized under this subdivision.
186.20    Subd. 2. Use of sales and use tax revenues. The revenues from the tax authorized under
186.21subdivision 1 must be used by the city of Fergus Falls to pay the costs of collecting and
186.22administering the tax and securing and paying debt service on bonds issued to finance all
186.23or part of the costs of the expansion and betterment of the Fergus Falls Public Library located
186.24at 205 East Hampden Avenue in the city of Fergus Falls.
186.25    Subd. 3. Bonding authority. (a) The city of Fergus Falls may issue bonds under
186.26Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project
186.27authorized in subdivision 2. The aggregate principal amount of bonds issued under this
186.28subdivision may not exceed $9,800,000, plus an amount applied to the payment of costs of
186.29issuing the bonds. The bonds may be paid from or secured by any funds available to the
186.30city of Fergus Falls, including the tax authorized under subdivision 1. The issuance of bonds
186.31under this subdivision is not subject to Minnesota Statutes, section 275.60 and 275.61.
186.32(b) The bonds are not included in computing any debt limitation applicable to the city,
186.33and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and
187.1interest on the bonds is not subject to any levy limitation. A separate election to approve
187.2the bonds under Minnesota Statutes, section 475.58, is not required.
187.3    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
187.4earlier of: (1) 12 years after the tax is first imposed, or (2) when the city council determines
187.5that $9,800,000 has been received from the tax to pay for the cost of the project authorized
187.6under subdivision 2, plus an amount sufficient to pay the costs related to the issuance of the
187.7bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
187.8after payment of all such costs and retirement or redemption of the bonds shall be placed
187.9in the general fund of the city. The tax imposed under subdivision 1 may expire at any
187.10earlier time if the city so determines by ordinance.
187.11EFFECTIVE DATE.This section is effective the day after the governing body of the
187.12city of Fergus Falls and its chief clerical officer comply with Minnesota Statutes, section
187.13645.021, subdivisions 2 and 3.

187.14    Sec. 18. CITY OF MOOSE LAKE; TAXES AUTHORIZED.
187.15    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
187.16section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
187.17as approved by the voters at the November 6, 2012, general election, the city of Moose Lake
187.18may impose, by ordinance, a sales and use tax of up to one-half of one percent for the
187.19purposes specified in subdivision 2. Except as otherwise provided in this section, the
187.20provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
187.21collection, and enforcement of the tax authorized under this subdivision.
187.22    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
187.23under subdivision 1 must be used by the city of Moose Lake to pay the costs of collecting
187.24and administering the tax and to finance the costs of: (1) improvements to the city's park
187.25system; (2) street and related infrastructure improvements; and (3) municipal arena
187.26improvements. Authorized costs include construction and engineering costs and associated
187.27bond costs.
187.28    Subd. 3. Bonding authority. The city of Moose Lake may issue bonds under Minnesota
187.29Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
187.30subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
187.31not exceed $3,000,000, plus an amount to be applied to the payment of the costs of issuing
187.32the bonds. The bonds may be paid from or secured by any funds available to the city of
187.33Moose Lake, including the tax authorized under subdivision 1. The issuance of bonds under
187.34this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
188.1The bonds are not included in computing any debt limitation applicable to the city of
188.2Moose Lake, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
188.3and interest on the bonds is not subject to any levy limitation. A separate election to approve
188.4the bonds under Minnesota Statutes, section 475.58, is not required.
188.5    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
188.6earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines
188.7that $3,000,000 has been received from the tax to pay for the cost of the projects authorized
188.8under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the
188.9bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining
188.10after payment of all such costs and retirement or redemption of the bonds shall be placed
188.11in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
188.12time if the city so determines by ordinance.
188.13EFFECTIVE DATE.This section is effective the day after the governing body of the
188.14city of Moose Lake and its chief clerical officer comply with Minnesota Statutes, section
188.15645.021, subdivisions 2 and 3.

188.16    Sec. 19. CITY OF NEW LONDON; TAX AUTHORIZED.
188.17    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
188.18section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
188.19charter, and as approved by the voters at the general election of November 8, 2016, the city
188.20of New London may impose, by ordinance, a sales and use tax of one-half of one percent
188.21for the purposes specified in subdivision 2. Except as otherwise provided in this section,
188.22the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
188.23collection, and enforcement of the tax authorized under this subdivision.
188.24    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
188.25under subdivision 1 must be used by the city of New London to pay the costs of collecting
188.26and administering the tax and to finance the capital and administrative costs of the following
188.27projects:
188.28(1) construction and equipping of a new library and community room;
188.29(2) construction of an ambulance bay at the fire hall; and
188.30(3) improvements to the New London Senior Citizen Center.
188.31The total that may be raised from the tax to pay for these projects is limited to $872,000
188.32plus the costs related to the issuance and paying debt service on bonds for these projects.
189.1    Subd. 3. Bonding authority. (a) The city of New London may issue bonds under
189.2Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
189.3authorized in subdivision 2. The aggregate principal amount of bonds issued under this
189.4subdivision may not exceed $872,000, plus an amount to be applied to the payment of the
189.5costs of issuing the bonds. The bonds may be paid from or secured by any funds available
189.6to the city of New London, including the tax authorized under subdivision 1. The issuance
189.7of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and
189.8275.61.
189.9(b) The bonds are not included in computing any debt limitation applicable to the city
189.10of New London, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
189.11principal and interest on the bonds is not subject to any levy limitation. A separate election
189.12to approve the bonds under Minnesota Statutes, section 475.58, is not required.
189.13    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
189.14earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines
189.15that $872,000, plus an amount sufficient to pay the costs related to issuing the bonds
189.16authorized under subdivision 3, including interest on the bonds, has been received from the
189.17tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining
189.18after payment of all such costs and retirement or redemption of the bonds shall be placed
189.19in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier
189.20time if the city so determines by ordinance.
189.21EFFECTIVE DATE.This section is effective the day after the governing body of the
189.22city of New London and its chief clerical officer comply with Minnesota Statutes, section
189.23645.021, subdivisions 2 and 3.

189.24    Sec. 20. CITY OF SLEEPY EYE; LODGING TAX.
189.25Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of law,
189.26ordinance, or city charter, the city council for the city of Sleepy Eye may impose, by
189.27ordinance, a tax of up to two percent on the gross receipts subject to the lodging tax under
189.28Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under
189.29Minnesota Statutes, section 469.190, and the total tax imposed under that section and this
189.30provision must not exceed five percent. Revenue from the tax imposed under this section
189.31may only be used for the same purposes as a tax imposed under Minnesota Statutes, section
189.32469.190.
190.1EFFECTIVE DATE.This section is effective the day after the governing body of the
190.2city of Sleepy Eye and its chief clerical officer comply with Minnesota Statutes, section
190.3645.021, subdivisions 2 and 3.

190.4    Sec. 21. CITY OF SPICER; TAX AUTHORIZED.
190.5    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
190.6section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
190.7charter, and as approved by the voters at the general election of November 8, 2016, the city
190.8of Spicer may impose, by ordinance, a sales and use tax of one-half of one percent for the
190.9purposes specified in subdivision 2. Except as otherwise provided in this section, the
190.10provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
190.11collection, and enforcement of the tax authorized under this subdivision.
190.12    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
190.13under subdivision 1 must be used by the city of Spicer to pay the costs of collecting and
190.14administering the tax and to finance the capital and administrative costs of the following
190.15projects:
190.16(1) pedestrian public safety improvements such as a pedestrian bridge or crosswalk
190.17signals at marked Trunk Highway 23;
190.18(2) park and trail capital improvements including signage for bicycle share the road
190.19improvements and replacement of playground and related facilities; and
190.20(3) capital improvements to regional community facilities such as the Dethelfs roof and
190.21window replacement and the Pioneerland branch library roof replacement.
190.22    Subd. 3. Termination of taxes. The tax imposed under subdivision 1 expires at the
190.23earlier of: (1) ten years after the tax is first imposed; or (2) December 31, 2027. All funds
190.24not used to pay collection and administration costs of the tax must be used for projects listed
190.25in subdivision 2. The tax imposed under subdivision 1 may expire at an earlier time if the
190.26city so determines by ordinance.
190.27EFFECTIVE DATE.This section is effective the day after the governing body of the
190.28city of Spicer and its chief clerical officer comply with Minnesota Statutes, section 645.021,
190.29subdivisions 2 and 3.

190.30    Sec. 22. CITY OF WALKER; LOCAL TAXES AUTHORIZED.
190.31    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes,
190.32section 477A.016, or any ordinance, city charter, or other provision of law, pursuant to the
191.1approval of the voters at the general election on November 6, 2012, the city of Walker may
191.2impose by ordinance a sales and use tax of 1-1/2 percent for the purposes specified in
191.3subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
191.4administration, collection, and enforcement of the taxes authorized under this subdivision.
191.5    Subd. 2. Use of revenues. Revenues received from the tax authorized by subdivision 1
191.6must be used to pay all or part of the capital and administrative costs of underground utility,
191.7street, curb, gutter, and sidewalk improvements in the city of Walker as outlined in the 2012
191.8capital improvement plan of the engineer of the city of Walker.
191.9    Subd. 3. Bonding authority. The city of Walker, pursuant to the approval of the voters
191.10at the November 6, 2012, referendum authorizing the imposition of the taxes in this section,
191.11may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative
191.12expenses for the projects described in subdivision 2, in an amount that does not exceed
191.13$20,000,000. A separate election to approve the bonds under Minnesota Statutes, section
191.14475.58, is not required.
191.15    Subd. 4. Termination of tax. (a) The tax authorized under subdivision 1 terminates at
191.16the earlier of:
191.17(1) 20 years after the date of initial imposition of the tax; or
191.18(2) when the city council determines that sufficient funds have been raised from the tax
191.19to finance the capital and administrative costs of the improvements described in subdivision
191.202, plus the additional amount needed to pay the costs related to issuance of bonds under
191.21subdivision 3, including interest on the bonds.
191.22(b) Any funds remaining after completion of the projects specified in subdivision 2 and
191.23retirement or redemption of bonds in subdivision 3 shall be placed in the general fund of
191.24the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so
191.25determines by ordinance.
191.26EFFECTIVE DATE.This section is effective the day after the governing body of the
191.27city of Walker and its chief clerical officer comply with Minnesota Statutes, section 645.021,
191.28subdivisions 2 and 3.

191.29    Sec. 23. CITY OF WINDOM; TAXES AUTHORIZED.
191.30    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes,
191.31section 477A.016, or any other provision of law, ordinance, or city charter, as approved by
191.32the voters at the general election held on November 8, 2016, the city of Windom may impose
191.33by ordinance a sales and use tax of up to one percent for the purposes specified in subdivision
192.13. Except as provided in this section, the provisions of Minnesota Statutes, section 297A.99,
192.2govern the imposition, administration, collection, and enforcement of the tax authorized
192.3under this subdivision.
192.4    Subd. 2. Use of revenues. The proceeds of the tax imposed under this section must be
192.5used to pay for the cost of collecting the tax and to pay all or a portion of the expenses of
192.6constructing and improving a fire hall and a public safety facility, including any associated
192.7bond costs.
192.8    Subd. 3. Bonding authority. The city of Windom, pursuant to the approval of the voters
192.9at the referendum authorizing the imposition of tax in this section, may issue bonds under
192.10Minnesota Statutes, chapter 475, to pay capital and administrative expenses for the project
192.11described in subdivision 2. A separate election to approve the bonds under Minnesota
192.12Statutes, section 475.58, is not required.
192.13    Subd. 4. Termination of tax. (a) The tax authorized under subdivision 1 terminates at
192.14the earlier of:
192.15(1) 15 years after the date of initial imposition of the tax; or
192.16(2) when $3,500,000 has been collected.
192.17(b) Any funds remaining after completion of the projects specified in subdivision 2 may
192.18be placed in the general fund of the city. The tax imposed under subdivision 1 may expire
192.19at an earlier time if the city so determines by ordinance.
192.20EFFECTIVE DATE.This section is effective the day after the governing body of the
192.21city of Windom and its chief clerical officer comply with Minnesota Statutes, section
192.22645.021, subdivisions 2 and 3.

192.23    Sec. 24. CLAY COUNTY; TAX AUTHORIZED.
192.24    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
192.25section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law or ordinance, and as
192.26approved by the voters at the November 8, 2016, general election, Clay County may impose,
192.27by ordinance, a sales and use tax of up to one-half of one percent for the purposes specified
192.28in subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota
192.29Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement
192.30of the tax authorized under this subdivision.
192.31    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
192.32under subdivision 1 must be used by Clay County to pay the costs of collecting and
193.1administering the tax and to finance the capital and administrative costs of constructing and
193.2equipping a new correctional facility, law enforcement center, and related parking facility.
193.3Authorized expenses include but are not limited to paying design, development, and
193.4construction costs related to these facilities and improvements, and securing and paying
193.5debt service on bonds issued under subdivision 3 or other obligations issued to finance the
193.6facilities listed in this subdivision.
193.7    Subd. 3. Bonding authority. Clay County may issue bonds under Minnesota Statutes,
193.8chapter 475, to finance all or a portion of the costs of the facilities authorized in subdivision
193.92. The aggregate principal amount of bonds issued under this subdivision may not exceed
193.10$52,000,000, plus an amount to be applied to the payment of the costs of issuing the bonds.
193.11The bonds may be paid from or secured by any funds available to Clay County, including
193.12the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not
193.13subject to Minnesota Statutes, sections 275.60 and 275.61.
193.14    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
193.15earlier of: (1) 20 years after the tax is first imposed; or (2) when the county board determines
193.16that $52,000,000, plus an amount sufficient to pay the costs related to issuance of the bonds
193.17authorized under subdivision 3, including interest on the bonds, has been received from the
193.18tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining
193.19after payment of all such costs and retirement or redemption of the bonds shall be placed
193.20in the general fund of the county. The tax imposed under subdivision 1 may expire at an
193.21earlier time if the county so determines by ordinance.
193.22EFFECTIVE DATE.This section is effective the day after the governing body of Clay
193.23County and its chief clerical officer comply with Minnesota Statutes, section 645.021,
193.24subdivisions 2 and 3.

193.25    Sec. 25. GARRISON, KATHIO, WEST MILLE LACS LAKE SANITARY
193.26DISTRICT; TAXES AUTHORIZED.
193.27    Subdivision 1. Sales and use tax authorization. Notwithstanding Minnesota Statutes,
193.28section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, and as approved by
193.29the voters at the November 8, 2016, general election, the Garrison, Kathio, West Mille Lacs
193.30Lake Sanitary District may impose, by majority vote of the governing body of the district,
193.31a sales and use tax of up to one percent for the purposes specified in subdivision 2. Except
193.32as otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99,
193.33govern the imposition, administration, collection, and enforcement of the tax authorized
193.34under this subdivision.
194.1    Subd. 2. Use of sales and use tax revenues. The revenues derived from the tax authorized
194.2under subdivision 1 must be used by the Garrison, Kathio, West Mille Lacs Lake Sanitary
194.3District to pay the costs of collecting and administering the tax and to repay general obligation
194.4revenue notes issued or other debt incurred for the construction of the wastewater collection
194.5system through the Minnesota Public Facilities Authority, general obligation disposal system
194.6bonds issued to finance the expense incurred in financing construction of sewer system
194.7improvements, and notes payable issued for costs associated with the sewer services
194.8agreement between the Garrison, Kathio, West Mille Lacs Lake Sanitary District and ML
194.9Wastewater Inc., and any other costs associated with system maintenance and improvements,
194.10including extension of the system to unserved customers as determined by the governing
194.11body of the district.
194.12    Subd. 3. Bonds. The Garrison, Kathio, West Mille Lacs Lake Sanitary District, pursuant
194.13to the approval of the voters at the November 8, 2016, referendum authorizing the imposition
194.14of the tax under this section, may issue general obligation disposal system bonds for financing
194.15construction of sewer system improvements without a separate election required under
194.16Minnesota Statutes, section 442.25 or 475.58. The amount of bonds that may be issued
194.17without a separate election is equal to $10,000,000 minus the amount of the tax revenue
194.18under this section committed to repay other notes as allowed under subdivision 2.
194.19    Subd. 4. Termination of taxes. The tax imposed under subdivision 1 expires at the
194.20earlier of: (1) 20 years after the tax is first imposed; or (2) when the governing body of the
194.21Garrison, Kathio, West Mille Lacs Lake Sanitary District determines that $10,000,000 has
194.22been received from the tax to pay for the costs authorized under subdivision 2. Any funds
194.23remaining after payment of all such costs and retirement or redemption of the bonds shall
194.24be placed in the general fund of the district. The tax imposed under subdivision 1 may expire
194.25at an earlier time if the governing body of the district so determines.
194.26EFFECTIVE DATE.This section is effective the day after the governing body of the
194.27Garrison, Kathio, West Mille Lacs Lake Sanitary District and its chief clerical officer comply
194.28with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

194.29    Sec. 26. EFFECTIVE DATE; VALIDATION OF PRIOR ACT.
194.30Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of
194.31Proctor may approve Laws 2008, chapter 366, article 7, section 13, and Laws 2010, chapter
194.32389, article 5, sections 1 and 2, and file its approval with the secretary of state by January
194.331, 2015. If approved under this paragraph, actions undertaken by the city pursuant to the
195.1approval of the voters on November 2, 2010, and otherwise in accordance with those laws
195.2are validated.
195.3EFFECTIVE DATE.This section is effective the day after the governing body of the
195.4city of Proctor and its chief clerical officer comply with Minnesota Statutes, section 645.021,
195.5subdivisions 2 and 3.


195.8    Section 1. Minnesota Statutes 2016, section 469.174, subdivision 12, is amended to read:
195.9    Subd. 12. Economic development district. "Economic development district" means a
195.10type of tax increment financing district which consists of any project, or portions of a project,
195.11which the authority finds to be in the public interest because:
195.12(1) it will discourage commerce, industry, or manufacturing from moving their operations
195.13to another state or municipality; or
195.14(2) it will result in increased employment in the state; or
195.15(3) it will result in preservation and enhancement of the tax base of the state; or
195.16(4) it satisfies the requirements of a workforce housing project under section 469.176,
195.17subdivision 4c, paragraph (d).
195.18EFFECTIVE DATE.This section is effective for districts for which the request for
195.19certification was made after June 30, 2017.

195.20    Sec. 2. Minnesota Statutes 2016, section 469.175, subdivision 3, is amended to read:
195.21    Subd. 3. Municipality approval. (a) A county auditor shall not certify the original net
195.22tax capacity of a tax increment financing district until the tax increment financing plan
195.23proposed for that district has been approved by the municipality in which the district is
195.24located. If an authority that proposes to establish a tax increment financing district and the
195.25municipality are not the same, the authority shall apply to the municipality in which the
195.26district is proposed to be located and shall obtain the approval of its tax increment financing
195.27plan by the municipality before the authority may use tax increment financing. The
195.28municipality shall approve the tax increment financing plan only after a public hearing
195.29thereon after published notice in a newspaper of general circulation in the municipality at
195.30least once not less than ten days nor more than 30 days prior to the date of the hearing. The
195.31published notice must include a map of the area of the district from which increments may
196.1be collected and, if the project area includes additional area, a map of the project area in
196.2which the increments may be expended. The hearing may be held before or after the approval
196.3or creation of the project or it may be held in conjunction with a hearing to approve the
196.4project.
196.5    (b) Before or at the time of approval of the tax increment financing plan, the municipality
196.6shall make the following findings, and shall set forth in writing the reasons and supporting
196.7facts for each determination:
196.8    (1) that the proposed tax increment financing district is a redevelopment district, a
196.9renewal or renovation district, a housing district, a soils condition district, or an economic
196.10development district; if the proposed district is a redevelopment district or a renewal or
196.11renovation district, the reasons and supporting facts for the determination that the district
196.12meets the criteria of section 469.174, subdivision 10, paragraph (a), clauses (1) and (2), or
196.13subdivision 10a, must be documented in writing and retained and made available to the
196.14public by the authority until the district has been terminated;
196.15    (2) that, in the opinion of the municipality:
196.16    (i) the proposed development or redevelopment would not reasonably be expected to
196.17occur solely through private investment within the reasonably foreseeable future; and
196.18    (ii) the increased market value of the site that could reasonably be expected to occur
196.19without the use of tax increment financing would be less than the increase in the market
196.20value estimated to result from the proposed development after subtracting the present value
196.21of the projected tax increments for the maximum duration of the district permitted by the
196.22plan. The requirements of this item do not apply if the district is a housing district;
196.23    (3) that the tax increment financing plan conforms to the general plan for the development
196.24or redevelopment of the municipality as a whole;
196.25    (4) that the tax increment financing plan will afford maximum opportunity, consistent
196.26with the sound needs of the municipality as a whole, for the development or redevelopment
196.27of the project by private enterprise;
196.28    (5) that the municipality elects the method of tax increment computation set forth in
196.29section 469.177, subdivision 3, paragraph (b), if applicable.
196.30    (c) When the municipality and the authority are not the same, the municipality shall
196.31approve or disapprove the tax increment financing plan within 60 days of submission by
196.32the authority. When the municipality and the authority are not the same, the municipality
196.33may not amend or modify a tax increment financing plan except as proposed by the authority
197.1pursuant to subdivision 4. Once approved, the determination of the authority to undertake
197.2the project through the use of tax increment financing and the resolution of the governing
197.3body shall be conclusive of the findings therein and of the public need for the financing.
197.4    (d) For a district that is subject to the requirements of paragraph (b), clause (2), item
197.5(ii), the municipality's statement of reasons and supporting facts must include all of the
197.6following:
197.7    (1) an estimate of the amount by which the market value of the site will increase without
197.8the use of tax increment financing;
197.9    (2) an estimate of the increase in the market value that will result from the development
197.10or redevelopment to be assisted with tax increment financing; and
197.11    (3) the present value of the projected tax increments for the maximum duration of the
197.12district permitted by the tax increment financing plan.
197.13    (e) For purposes of this subdivision, "site" means the parcels on which the development
197.14or redevelopment to be assisted with tax increment financing will be located.
197.15(f) Before or at the time of approval of the tax increment financing plan for a district to
197.16be used to fund a workforce housing project under section 469.176, subdivision 4c, paragraph
197.17(d), the municipality shall make the following findings and set forth in writing the reasons
197.18and supporting facts for each determination:
197.19(1) the city is located outside of the metropolitan area, as defined in section 473.121,
197.20subdivision 2;
197.21(2) the average vacancy rate for rental housing located in the municipality and in any
197.22statutory or home rule charter city located within 15 miles or less of the boundaries of the
197.23municipality has been three percent or less for at least the immediately preceding two-year
197.24period;
197.25(3) at least one business located in the municipality or within 15 miles of the municipality
197.26that employs a minimum of 20 full-time equivalent employees in aggregate has provided a
197.27written statement to the municipality indicating that the lack of available rental housing has
197.28impeded the ability of the business to recruit and hire employees; and
197.29(4) the municipality and the development authority intend to use increments from the
197.30district for the development of rental housing to serve employees of businesses located in
197.31the municipality or surrounding area.
198.1EFFECTIVE DATE.This section is effective for districts for which the request for
198.2certification was made after June 30, 2017.

198.3    Sec. 3. Minnesota Statutes 2016, section 469.176, subdivision 4c, is amended to read:
198.4    Subd. 4c. Economic development districts. (a) Revenue derived from tax increment
198.5from an economic development district may not be used to provide improvements, loans,
198.6subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting
198.7of buildings and ancillary facilities, if more than 15 percent of the buildings and facilities
198.8(determined on the basis of square footage) are used for a purpose other than:
198.9    (1) the manufacturing or production of tangible personal property, including processing
198.10resulting in the change in condition of the property;
198.11    (2) warehousing, storage, and distribution of tangible personal property, excluding retail
198.12sales;
198.13    (3) research and development related to the activities listed in clause (1) or (2);
198.14    (4) telemarketing if that activity is the exclusive use of the property;
198.15    (5) tourism facilities; or
198.16    (6) space necessary for and related to the activities listed in clauses (1) to (5); or
198.17    (7) a workforce housing project that satisfies the requirements of paragraph (d).
198.18    (b) Notwithstanding the provisions of this subdivision, revenues derived from tax
198.19increment from an economic development district may be used to provide improvements,
198.20loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000
198.21square feet of any separately owned commercial facility located within the municipal
198.22jurisdiction of a small city, if the revenues derived from increments are spent only to assist
198.23the facility directly or for administrative expenses, the assistance is necessary to develop
198.24the facility, and all of the increments, except those for administrative expenses, are spent
198.25only for activities within the district.
198.26    (c) A city is a small city for purposes of this subdivision if the city was a small city in
198.27the year in which the request for certification was made and applies for the rest of the
198.28duration of the district, regardless of whether the city qualifies or ceases to qualify as a
198.29small city.
198.30(d) A project qualifies as a workforce housing project under this subdivision if:
199.1(1) increments from the district are used exclusively to assist in the acquisition of
199.2property; construction of improvements; and provision of loans or subsidies, grants, interest
199.3rate subsidies, public infrastructure, and related financing costs for rental housing
199.4developments in the municipality; and
199.5(2) the governing body of the municipality made the findings for the project required
199.6by section 469.175, subdivision 3, paragraph (f).
199.7EFFECTIVE DATE.This section is effective for districts for which the request for
199.8certification was made after June 30, 2017.

199.9    Sec. 4. Minnesota Statutes 2016, section 469.1761, is amended by adding a subdivision
199.10to read:
199.11    Subd. 5. Income limits; Minnesota Housing Finance Agency challenge program.
199.12For a project receiving a loan or grant from the Minnesota Housing Finance Agency challenge
199.13program under section 462A.33, the income limits under section 462A.33 are substituted
199.14for the applicable income limits for the project under subdivision 2 or 3.
199.15EFFECTIVE DATE.This section is effective for districts for which the request for
199.16certification was made after June 30, 2017.

199.17    Sec. 5. Minnesota Statutes 2016, section 469.1763, subdivision 1, is amended to read:
199.18    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
199.19the meanings given.
199.20(b) "Activities" means acquisition of property, clearing of land, site preparation, soils
199.21correction, removal of hazardous waste or pollution, installation of utilities, construction
199.22of public or private improvements, and other similar activities, but only to the extent that
199.23tax increment revenues may be spent for such purposes under other law.
199.24(c) "Third party" means an entity other than (1) the person receiving the benefit of
199.25assistance financed with tax increments, or (2) the municipality or the development authority
199.26or other person substantially under the control of the municipality.
199.27(d) "Revenues derived from tax increments paid by properties in the district" means only
199.28tax increment as defined in section 469.174, subdivision 25, clause (1), and does not include
199.29tax increment as defined in section 469.174, subdivision 25, clauses (2), (3), and (4) to (5).
199.30EFFECTIVE DATE.This section is effective the day following final enactment.

200.1    Sec. 6. Minnesota Statutes 2016, section 469.1763, subdivision 2, is amended to read:
200.2    Subd. 2. Expenditures outside district. (a) For each tax increment financing district,
200.3an amount equal to at least 75 percent of the total revenue derived from tax increments paid
200.4by properties in the district must be expended on activities in the district or to pay bonds,
200.5to the extent that the proceeds of the bonds were used to finance activities in the district or
200.6to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other
200.7than redevelopment districts for which the request for certification was made after June 30,
200.81995, the in-district percentage for purposes of the preceding sentence is 80 percent. Not
200.9more than 25 percent of the total revenue derived from tax increments paid by properties
200.10in the district may be expended, through a development fund or otherwise, on activities
200.11outside of the district but within the defined geographic area of the project except to pay,
200.12or secure payment of, debt service on credit enhanced bonds. For districts, other than
200.13redevelopment districts for which the request for certification was made after June 30, 1995,
200.14the pooling percentage for purposes of the preceding sentence is 20 percent. The revenue
200.15revenues derived from tax increments for paid by properties in the district that are expended
200.16on costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before
200.17calculating the percentages that must be expended within and without the district.
200.18    (b) In the case of a housing district, a housing project, as defined in section 469.174,
200.19subdivision 11 , is an activity in the district.
200.20    (c) All administrative expenses are for activities outside of the district, except that if the
200.21only expenses for activities outside of the district under this subdivision are for the purposes
200.22described in paragraph (d), administrative expenses will be considered as expenditures for
200.23activities in the district.
200.24    (d) The authority may elect, in the tax increment financing plan for the district, to increase
200.25by up to ten percentage points the permitted amount of expenditures for activities located
200.26outside the geographic area of the district under paragraph (a). As permitted by section
200.27469.176, subdivision 4k , the expenditures, including the permitted expenditures under
200.28paragraph (a), need not be made within the geographic area of the project. Expenditures
200.29that meet the requirements of this paragraph are legally permitted expenditures of the district,
200.30notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase
200.31under this paragraph, the expenditures must:
200.32    (1) be used exclusively to assist housing that meets the requirement for a qualified
200.33low-income building, as that term is used in section 42 of the Internal Revenue Code; and
201.1    (2) not exceed the qualified basis of the housing, as defined under section 42(c) of the
201.2Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal
201.3Revenue Code; and
201.4    (3) be used to:
201.5    (i) acquire and prepare the site of the housing;
201.6    (ii) acquire, construct, or rehabilitate the housing; or
201.7    (iii) make public improvements directly related to the housing; or
201.8(4) be used to develop housing:
201.9(i) if the market value of the housing does not exceed the lesser of:
201.10(A) 150 percent of the average market value of single-family homes in that municipality;
201.11or
201.12(B) $200,000 for municipalities located in the metropolitan area, as defined in section
201.13473.121 , or $125,000 for all other municipalities; and
201.14(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition
201.15of existing structures, site preparation, and pollution abatement on one or more parcels, if
201.16the parcel contains a residence containing one to four family dwelling units that has been
201.17vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision
201.187 , but without regard to whether the residence is the owner's principal residence, and only
201.19after the redemption period has expired.
201.20(e) The authority under paragraph (d), clause (4), expires on December 31, 2016.
201.21Increments may continue to be expended under this authority after that date, if they are used
201.22to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if
201.23December 31, 2016, is considered to be the last date of the five-year period after certification
201.24under that provision.
201.25EFFECTIVE DATE.This section is effective the day following final enactment.

201.26    Sec. 7. Minnesota Statutes 2016, section 469.1763, subdivision 3, is amended to read:
201.27    Subd. 3. Five-year rule. (a) Revenues derived from tax increments paid by properties
201.28in the district are considered to have been expended on an activity within the district under
201.29subdivision 2 only if one of the following occurs:
201.30(1) before or within five years after certification of the district, the revenues are actually
201.31paid to a third party with respect to the activity;
202.1(2) bonds, the proceeds of which must be used to finance the activity, are issued and
202.2sold to a third party before or within five years after certification, the revenues are spent to
202.3repay the bonds, and the proceeds of the bonds either are, on the date of issuance, reasonably
202.4expected to be spent before the end of the later of (i) the five-year period, or (ii) a reasonable
202.5temporary period within the meaning of the use of that term under section 148(c)(1) of the
202.6Internal Revenue Code, or are deposited in a reasonably required reserve or replacement
202.7fund;
202.8(3) binding contracts with a third party are entered into for performance of the activity
202.9before or within five years after certification of the district and the revenues are spent under
202.10the contractual obligation;
202.11(4) costs with respect to the activity are paid before or within five years after certification
202.12of the district and the revenues are spent to reimburse a party for payment of the costs,
202.13including interest on unreimbursed costs; or
202.14(5) expenditures are made for housing purposes as permitted by subdivision 2, paragraphs
202.15(b) and (d), or for public infrastructure purposes within a zone as permitted by subdivision
202.162, paragraph (e).
202.17(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the
202.18original refunded bonds meet the requirements of paragraph (a), clause (2).
202.19(c) For a redevelopment district or a renewal and renovation district certified after June
202.2030, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are
202.21extended to ten years after certification of the district. For a redevelopment district certified
202.22after April 20, 2009, and before June 30, 2012, the five-year periods described in paragraph
202.23(a) are extended to eight years after certification of the district. This extension is provided
202.24primarily to accommodate delays in development activities due to unanticipated economic
202.25circumstances.
202.26EFFECTIVE DATE.This section is effective the day following final enactment.

202.27    Sec. 8. Minnesota Statutes 2016, section 469.178, subdivision 7, is amended to read:
202.28    Subd. 7. Interfund loans. (a) The authority or municipality may advance or loan money
202.29to finance expenditures under section 469.176, subdivision 4, from its general fund or any
202.30other fund under which it has legal authority to do so.
202.31    (b) Not later than 60 days after money is transferred, advanced, or spent, whichever is
202.32earliest, the loan or advance must be authorized, by resolution of the governing body or of
203.1the authority, whichever has jurisdiction over the fund from which the advance or loan is
203.2authorized, before money is transferred, advanced, or spent, whichever is earliest.
203.3    (c) The resolution may generally grant to the municipality or the authority the power to
203.4make interfund loans under one or more tax increment financing plans or for one or more
203.5districts. The resolution may be adopted before or after the adoption of the tax increment
203.6financing plan or the creation of the tax increment financing district from which the advance
203.7or loan is to be repaid.
203.8    (d) The terms and conditions for repayment of the loan must be provided in writing and.
203.9The written terms and conditions may be in any form, but must include, at a minimum, the
203.10principal amount, the interest rate, and maximum term. Written terms may be modified or
203.11amended in writing by the municipality or the authority before the latest decertification of
203.12any tax increment financing district from which the interfund loan is to be repaid. The
203.13maximum rate of interest permitted to be charged is limited to the greater of the rates
203.14specified under section 270C.40 or 549.09 as of the date the loan or advance is authorized,
203.15unless the written agreement states that the maximum interest rate will fluctuate as the
203.16interest rates specified under section 270C.40 or 549.09 are from time to time adjusted.
203.17Loans or advances may be structured as draw-down or line-of-credit obligations of the
203.18lending fund.
203.19    (e) The authority shall report in the annual report submitted under section 469.175,
203.20subdivision 6:
203.21    (1) the amount of any interfund loan or advance made in a calendar year; and
203.22    (2) any amendment of an interfund loan or advance made in a calendar year.
203.23EFFECTIVE DATE.This section is effective the day following final enactment and
203.24applies to all districts, regardless of when the request for certification was made.

203.25    Sec. 9. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read:
203.26    Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment
203.27financing plan for a district, the rules under this section apply to a redevelopment district,
203.28renewal and renovation district, economic development district, soil condition district, or
203.29a soil deficiency district established by the city or a development authority of the city in the
203.30project area.
203.31    (b) Prior to or upon the adoption of the first tax increment plan subject to the special
203.32rules under this subdivision, the city must find by resolution that parcels consisting of at
204.1least 80 percent of the acreage of the project area (excluding street and railroad right of
204.2way) are characterized by one or more of the following conditions:
204.3    (1) peat or other soils with geotechnical deficiencies that impair development of
204.4residential or commercial buildings or infrastructure;
204.5    (2) soils or terrain that requires substantial filling in order to permit the development of
204.6commercial or residential buildings or infrastructure;
204.7    (3) landfills, dumps, or similar deposits of municipal or private waste;
204.8    (4) quarries or similar resource extraction sites;
204.9    (5) floodway; and
204.10    (6) substandard buildings within the meaning of Minnesota Statutes, section 469.174,
204.11subdivision 10 .
204.12    (c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to be
204.13characterized by the relevant condition if at least 70 percent of the area of the parcel contains
204.14the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is deemed to
204.15be characterized by substandard buildings if the buildings occupy at least 30 percent of the
204.16area of the parcel.
204.17    (d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
204.18extended to ten years for any district, and section 469.1763, subdivision 4, does not apply
204.19to any district.
204.20    (e) Notwithstanding anything to the contrary in section 469.1763, subdivision 2, paragraph
204.21(a), not more than 80 percent of the total revenue derived from tax increments paid by
204.22properties in any district (measured over the life of the district) may be expended on activities
204.23outside the district but within the project area.
204.24    (f) For a soil deficiency district:
204.25    (1) increments may be collected through 20 years after the receipt by the authority of
204.26the first increment from the district; and
204.27    (2) except as otherwise provided in this subdivision, increments may be used only to:
204.28    (i) acquire parcels on which the improvements described in item (ii) will occur;
204.29    (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional
204.30cost of installing public improvements directly caused by the deficiencies; and
204.31    (iii) pay for the administrative expenses of the authority allocable to the district.
205.1    (g) Increments spent for any infrastructure costs, whether inside a district or outside a
205.2district but within the project area, are deemed to satisfy the requirements of paragraph (f)
205.3and Minnesota Statutes, section 469.176, subdivisions 4b, 4c, and 4j.
205.4    (h) Increments from any district may not be used to pay the costs of landfill closure or
205.5public infrastructure located on the following parcels within the plat known as Burnsville
205.6Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.
205.7    (i) The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, is
205.8extended to nine years.
205.9    (j) The city may specify in the tax increment financing plan for any district the first year
205.10in which it elects to receive increment, which may be up to eight years following approval
205.11of the district.
205.12    (k) Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, paragraph (c),
205.13the city may waive any increment received in 2017 and, if so, it shall not be used in
205.14determining the duration limit for any district created under this section.
205.15    (l) The authority to approve tax increment financing plans to establish tax increment
205.16financing districts under this section expires on December 31, 2018 March 20, 2023.
205.17EFFECTIVE DATE.This section is effective upon approval by the governing body
205.18of the city of Burnsville and compliance with the requirements of Minnesota Statutes, section
205.19645.021.

205.20    Sec. 10. Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter
205.21382, section 84, is amended to read:
205.22    Sec. 17. SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT
205.23FINANCING DISTRICT; SPECIAL RULES.
205.24(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and
205.25the governing body of the city of Duluth approves the plan for the tax increment financing
205.26district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020;
205.27010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090;
205.28010-2730-00100; 010-02730-00120; 010-02730-00130; 010-02730-00140; 010-2730-00160;
205.29010-2730-00180; 010-2730-00200; 010-2730-00300; 010-02730-00320; 010-2746-01250;
205.30010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440; 010-2746-1380;
205.31010-2746-01490; 010-2746-01500; 010-2746-01510; 010-2746-01520; 010-2746-01530;
205.32010-2746-01540; 010-2746-01550; 010-2746-01560; 010-2746-01570; 010-2746-01580;
205.33010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570; 010-3300-04580;
206.1010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year rule under Minnesota
206.2Statutes, section 469.1763, subdivision 3, that activities must be undertaken within a five-year
206.3period from the date of certification of the tax increment financing district, must be
206.4considered to be met if the activities are undertaken within five years after the date all
206.5qualifying parcels are delisted from the Federal Superfund list.
206.6(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, beginning
206.7in the sixth year following certification of the district requirement, will begin in the sixth
206.8year following the date all qualifying parcels are delisted from the Federal Superfund list.
206.9(c) The action required under Minnesota Statutes, section 469.176, subdivision 6, are
206.10satisfied if the action is commenced within four years after the date all qualifying parcels
206.11are delisted from the Federal Superfund list and evidence of the action required is submitted
206.12to the county auditor by February 1 of the fifth year following the year in which all qualifying
206.13parcels are delisted from the Federal Superfund list.
206.14(d) For purposes of this section, "qualifying parcels" means United States Steel parcels
206.15listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part of the
206.16USS St. Louis River-U.S. Steel Superfund Site (USEPA OU 02) that are included in the
206.17tax increment financing district.
206.18(e) In addition to the reporting requirements of Minnesota Statutes, section 469.175,
206.19subdivision 5 , the Seaway Port Authority of Duluth shall report the status of all parcels
206.20listed in paragraph (a) and shown as part of the USS St. Louis River-U.S. Steel Superfund
206.21Site (USEPA OU 02). The status report must show the parcel numbers, the listed or delisted
206.22status, and if delisted, the delisting date.
206.23(f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other
206.24law to the contrary, the Seaway Port Authority of Duluth may establish an interfund loan
206.25program before approval of the tax increment financing plan for or the establishment of the
206.26district authorized by this section. The authority may make loans under this program. The
206.27proceeds of the loans may be used for any permitted use of increments under this law or
206.28Minnesota Statutes, section 469.176, for the district and may be repaid with increments
206.29from the district established under this section. This paragraph applies to any action
206.30authorized by the Seaway Port Authority of Duluth on or after March 25, 2010.
206.31EFFECTIVE DATE.This section is effective the day after the governing body of the
206.32city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021,
206.33subdivision 3.

207.1    Sec. 11. Laws 2014, chapter 308, article 6, section 8, subdivision 1, is amended to read:
207.2    Subdivision 1. Authority to create districts. (a) The governing body of the city of
207.3Edina or its development authority may establish one or more tax increment financing
207.4housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries
207.5exist on March 31, 2014.
207.6(b) The authority to request certification of districts under this section expires on June
207.730, 2017 2020.
207.8EFFECTIVE DATE.This section is effective on the day following final enactment
207.9without local approval under Minnesota Statutes, section 645.023, subdivision 1, paragraph
207.10(a).

207.11    Sec. 12. Laws 2014, chapter 308, article 6, section 9, is amended to read:
207.12    Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.
207.13    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
207.14the meanings given them.
207.15(b) "City" means the city of Maple Grove.
207.16(c) "Project area" means all or a portion of the area in the city commencing at a point
207.17130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section
207.1823, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way
207.19line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock
207.20Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23,
207.21thence south along said west line a distance of 1,200 feet; thence easterly to the east line of
207.22Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees
207.23East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance
207.24of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st Avenue
207.25North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter
207.26of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west
207.27line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55
207.28degrees West to the south line of the Northwest Quarter of the Northwest Quarter of Section
207.2924; thence West along said south line to the east right-of-way line of Zachary Lane; thence
207.30North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1,
207.31Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said
207.32Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence
207.33South along the east line of said Outlot A and its southerly extension to the south right-of-way
208.1line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way
208.2line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of
208.3Section 24; thence South along said east line to the north line of the South Half of the
208.4Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way
208.5line of Jefferson Highway North; thence southerly along the westerly right-of-way line of
208.6Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west
208.7right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot
208.8A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North
208.9Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east
208.10line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south
208.11line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State
208.12Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the
208.13westerly right-of-way line of State Highway 169 and the northerly right-of-way line of
208.14Interstate 694 to its intersection with the southerly extension of the easterly right-of-way
208.15line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary
208.16Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence
208.17westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning
208.18and there terminating, provided that the project area includes the rights-of-way for all present
208.19and future highway interchanges abutting the area described in this paragraph, and may
208.20include any additional property necessary to cause the property included in the tax increment
208.21financing district to consist of complete parcels.
208.22(d) "Soil deficiency district" means a type of tax increment financing district consisting
208.23of a portion of the project area in which the city finds by resolution that the following
208.24conditions exist:
208.25(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in
208.26the district require substantial filling, grading, or other physical preparation for use; and
208.27(2) the estimated cost of the physical preparation under clause (1), but excluding costs
208.28directly related to roads as defined in Minnesota Statutes, section 160.01, and local
208.29improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses
208.30(1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before
208.31completion of the preparation.
208.32    Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment
208.33financing plan for a district, the rules under this section apply to a redevelopment district,
208.34renewal and renovation district, soil condition district, or soil deficiency district established
208.35by the city or a development authority of the city in the project area.
209.1(b) Prior to or upon the adoption of the first tax increment plan subject to the special
209.2rules under this subdivision, the city must find by resolution that parcels consisting of at
209.3least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way,
209.4are characterized by one or more of the following conditions:
209.5(1) peat or other soils with geotechnical deficiencies that impair development of
209.6commercial buildings or infrastructure;
209.7(2) soils or terrain that require substantial filling in order to permit the development of
209.8commercial buildings or infrastructure;
209.9(3) landfills, dumps, or similar deposits of municipal or private waste;
209.10(4) quarries or similar resource extraction sites;
209.11(5) floodway; and
209.12(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174,
209.13subdivision 10 .
209.14(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the
209.15relevant condition if at least 70 percent of the area of the parcel contains the relevant
209.16condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
209.17substandard buildings if substandard buildings occupy at least 30 percent of the area of the
209.18parcel.
209.19(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
209.20extended to eight years for any district, and Minnesota Statutes, section 469.1763, subdivision
209.214 , does not apply to any district.
209.22(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763,
209.23subdivision 2 , paragraph (a), not more than 40 percent of the total revenue derived from tax
209.24increments paid by properties in any district, measured over the life of the district, may be
209.25expended on activities outside the district but within the project area.
209.26(f) For a soil deficiency district:
209.27(1) increments may be collected through 20 years after the receipt by the authority of
209.28the first increment from the district;
209.29(2) increments may be used only to:
209.30(i) acquire parcels on which the improvements described in item (ii) will occur;
210.1(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional
210.2cost of installing public improvements directly caused by the deficiencies; and
210.3(iii) pay for the administrative expenses of the authority allocable to the district; and
210.4(3) any parcel acquired with increments from the district must be sold at no less than
210.5their fair market value.
210.6(g) Increments spent for any infrastructure costs, whether inside a district or outside a
210.7district but within the project area, are deemed to satisfy the requirements of Minnesota
210.8Statutes, section 469.176, subdivision 4j.
210.9(h) The authority to approve tax increment financing plans to establish tax increment
210.10financing districts under this section expires June 30, 2020.
210.11(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use
210.12increments from a soil deficiency district to acquire parcels and for other infrastructure costs
210.13either inside or outside of the district, but within the project area, if the acquisition or
210.14infrastructure is for a qualified development. For purposes of this paragraph, a development
210.15is a qualified development only if all of the following requirements are satisfied:
210.16(1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken
210.17primarily to serve the development;
210.18(2) the city has a binding, written commitment and adequate financial assurances from
210.19the developer that the development will be constructed; and
210.20(3) the development does not consist of retail trade or housing improvements.
210.21EFFECTIVE DATE.This section is effective upon approval by the governing body
210.22of the city of Maple Grove and its compliance with the requirements of Minnesota Statutes,
210.23section 645.021.

210.24    Sec. 13. CITY OF ANOKA; GREENS OF ANOKA TIF DISTRICT.
210.25For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), the
210.26city of Anoka's Greens of Anoka redevelopment tax increment financing district is deemed
210.27to be certified on June 29, 2012, rather than its actual certification date of July 2, 2012, and
210.28the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4, apply as if
210.29the district were certified on that date.
210.30EFFECTIVE DATE.This section is effective upon approval by the governing body
210.31of the city of Anoka and upon compliance by the city with Minnesota Statutes, section
210.32645.021, subdivisions 2 and 3.

211.1    Sec. 14. CITY OF COON RAPIDS; TIF DISTRICT 6-1; PORT RIVERWALK.
211.2Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision 1b,
211.3or any other law to the contrary, the city of Coon Rapids may collect tax increment from
211.4District 6-1 Port Riverwalk through December 31, 2038.
211.5EFFECTIVE DATE.This section is effective upon compliance by the governing bodies
211.6of the city of Coon Rapids, Anoka County, and Independent School District No. 11 with
211.7the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021,
211.8subdivision 3.

211.9    Sec. 15. CITY OF COTTAGE GROVE; TIF DISTRICT 1-12; GATEWAY NORTH.
211.10The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
211.11must be undertaken within a five-year period from the date of certification of a tax increment
211.12financing district, is considered to be met for Tax Increment Financing District No. 1-12
211.13(Gateway North), administered by the Cottage Grove Economic Development Authority,
211.14if the activities are undertaken prior to January 1, 2017.
211.15EFFECTIVE DATE.This section is effective upon compliance by the chief clerical
211.16officer of the governing body of the city of Cottage Grove with the requirements of Minnesota
211.17Statutes, section 645.021, subdivisions 2 and 3.

211.18    Sec. 16. CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW.
211.19Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision 3,
211.20the chief clerical officer of the city of Edina may file with the secretary of state certificate
211.21of approval of Laws 2014, chapter 308, article 6, section 8, by December 31, 2017, and, if
211.22the certificate is so filed and the requirements of Minnesota Statutes, section 645.021,
211.23subdivision 3, are otherwise complied with, the special law is deemed approved, and all
211.24actions taken by the city before the effective date of this section in reliance on Laws 2014,
211.25chapter 308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308, article
211.266, section 8, and this act.
211.27EFFECTIVE DATE.This section is effective the day following final enactment without
211.28local approval as an amendment to the provisions of Laws 2014, chapter 308, article 6,
211.29section 8.

212.1    Sec. 17. CITY OF MOORHEAD; TIF DISTRICT; FIRST AVENUE NORTH.
212.2For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), the
212.3city of Moorhead's 1st Avenue North (Central Corridors) Redevelopment Tax Increment
212.4Financing District is deemed to be certified on June 29, 2012, rather than its actual
212.5certification date of July 12, 2012, and Minnesota Statutes, section 469.1763, subdivisions
212.63 and 4, apply as if the district were certified on that date.
212.7EFFECTIVE DATE.This section is effective upon approval by the governing body
212.8of the city of Moorhead and upon compliance by the city with Minnesota Statutes, section
212.9645.021, subdivisions 2 and 3.

212.10    Sec. 18. CITY OF RICHFIELD; EXTENSION OF CEDAR AVENUE TIF
212.11DISTRICT.
212.12Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other law
212.13to the contrary, the city of Richfield and the Housing and Redevelopment Authority in and
212.14for the city of Richfield may elect to extend the duration limit of the redevelopment tax
212.15increment financing district known as the Cedar Avenue Tax Increment Financing District
212.16established by Laws 2005, chapter 152, article 2, section 25, by ten years.
212.17EFFECTIVE DATE.This section is effective upon compliance by the city of Richfield,
212.18Hennepin County, and Independent School District No. 280 with the requirements of
212.19Minnesota Statutes, sections 469.1782, subdivision 2; and 645.021, subdivisions 2 and 3.

212.20    Sec. 19. CITY OF RICHFIELD; LYNDALE GARDENS TIF DISTRICT.
212.21The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that activities
212.22must be undertaken within a five-year period from the date of certification of a tax increment
212.23financing district, are considered to be met for the Lyndale Gardens Tax Increment Financing
212.24District established by the city of Richfield and the housing and redevelopment authority
212.25in and for the city of Richfield if the activities are undertaken within eight years from the
212.26date of certification.
212.27EFFECTIVE DATE.This act is effective upon the city of Richfield's compliance with
212.28the requirements of Minnesota Statutes, section 645.021, subdivisions 2 and 3.

212.29    Sec. 20. CITY OF ROCHESTER; TIF DISTRICT 36; BIOSCIENCE PROJECT.
212.30Notwithstanding the provisions of Minnesota Statutes, sections 469.174 and 469.176,
212.31the city of Rochester may spend the proceeds from the sale or lease of any property
213.1purchased, in whole or part, with tax increments derived from tax increment financing
213.2district number 36 (Bioscience Project) for the costs of operating, maintaining, and improving
213.3any part of that property, including funding and maintaining reserves for capital or operating
213.4expenses and paying debt service on bonds or any obligations issued to finance that property.
213.5Following the close of the third calendar year after decertification of the district, none of
213.6the proceeds are subject to restrictions that apply to tax increments under Minnesota Statutes,
213.7sections 469.174 to 469.1794.
213.8EFFECTIVE DATE.This section is effective the day following final enactment without
213.9local approval under Minnesota Statutes, section 645.023, subdivision 1, clause (a).

213.10    Sec. 21. CITY OF SOUTH ST. PAUL; EXTENSION OF TIME TO ADOPT
213.11INTERFUND LOAN RESOLUTION FOR 4TH AVENUE VILLAGE TIF DISTRICT.
213.12Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, the governing body
213.13of the South St. Paul Economic Development Authority, successor to the Housing and
213.14Redevelopment Authority in and for the city of South St. Paul, may retroactively approve
213.15a previously established interfund loan for the 4th Avenue Village Tax Increment District
213.16in the city of South St. Paul if the governing body adopts a resolution approving that loan
213.17by August 1, 2017, and if the requirements of Minnesota Statutes, section 469.178,
213.18subdivision 7, are otherwise complied with, the interfund loan authorization is deemed to
213.19satisfy Minnesota Statutes, section 469.178, subdivision 7.
213.20EFFECTIVE DATE.This section is effective without local approval under Minnesota
213.21Statutes, section 645.023, subdivision 1, paragraph (a), on the day following final enactment.

213.22    Sec. 22. CITY OF ST. LOUIS PARK; ELMWOOD VILLAGE TIF DISTRICT.
213.23For purposes of the Elmwood Village Tax Increment Financing District in the city of
213.24St. Louis Park, including during the duration extension authorized by Laws 2009, chapter
213.2588, article 5, section 19, the period under Minnesota Statutes, section 469.1763, subdivision
213.263, is extended through December 31, 2019, and calendar year 2020 is the first year to which
213.27Minnesota Statutes, section 469.1763, subdivision 4, applies. In addition, the permitted
213.28percentage of increments that may be expended under Minnesota Statutes, section 469.1763,
213.29subdivision 2, on activities outside of the district is increased to 45 percent for the district.
213.30EFFECTIVE DATE.This section is effective upon compliance by the governing body
213.31of the city of St. Louis Park with the requirements of Minnesota Statutes, section 645.021,
213.32subdivision 3.

214.1    Sec. 23. CITY OF ST. PAUL; FORD SITE REDEVELOPMENT TIF DISTRICT.
214.2(a) For purposes of computing the duration limits under Minnesota Statutes, section
214.3469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul
214.4may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing
214.5District. This authority is limited to the first four years of increment or increments derived
214.6from taxes payable in 2023, whichever occurs first.
214.7(b) If the city elects to waive receipt of increment under paragraph (a), for purposes of
214.8applying any limits based on when the district was certified under Minnesota Statutes,
214.9section 469.176, subdivision 6, or 469.1763, the date of certification for the district is deemed
214.10to be January 2 of the property tax assessment year for which increment is first received
214.11under the waiver.
214.12EFFECTIVE DATE.This section is effective July 1, 2017, without local approval
214.13under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

214.14    Sec. 24. WASHINGTON COUNTY; NEWPORT REDROCK CROSSING PROJECT
214.15TIF DISTRICT; SPECIAL RULES.
214.16(a) If Washington County elects, upon the adoption of a tax increment financing plan
214.17for a district, the rules under this section apply to one or more tax increment financing
214.18districts established by the county or the community development agency of the county.
214.19The area within which the tax increment districts may be created is located in the city of
214.20Newport and is south of marked Interstate Highway 494, north of 15th Street extended to
214.21the Mississippi River, east of the Mississippi River, and west of marked Trunk Highway
214.2261 and the adjacent rights-of-way and shall be referred to as the "Newport Red Rock Crossing
214.23Project Area" or "project area."
214.24(b) The requirements for qualifying a redevelopment district under Minnesota Statutes,
214.25section 469.174, subdivision 10, do not apply to the parcels identified by parcel identification
214.26numbers: 2602822440051, 260282244050, 260282244049, 260282244048, 2602822440046,
214.272602822440045, 260282244044, 2602822440043, 2602822440026, 2602822440025,
214.28260282244024, and 2602822440023, which are deemed substandard for the purpose of
214.29qualifying the district as a redevelopment district.
214.30(c) Increments spent outside a district shall only be spent within the project area and on
214.31costs described in Minnesota Statutes, section 469.176, subdivision 4j.
214.32(d) Notwithstanding anything to the contrary in Minnesota Statutes, section 469.1763,
214.33subdivision 2, paragraph (a), not more than 80 percent of the total revenue derived from tax
215.1increments paid by properties in any district, measured over the life of the district, may be
215.2expended on activities outside the district but within the project area. The five-year rule
215.3under Minnesota Statutes, section 469.1763, subdivision 3, applies as if the limit is nine
215.4years.
215.5(e) The authority to approve a tax increment financing plan and to establish a tax
215.6increment financing district under this section expires December 31, 2027.
215.7(f) The use of revenues for decertification in Minnesota Statutes, section 469.1763,
215.8subdivision 4, does not apply to the project area.
215.9EFFECTIVE DATE.This section is effective and shall retroactively include the
215.10redevelopment district in the project area approved by Washington County on November
215.118, 2016, upon approval by the governing body of the city of Newport and Washington
215.12County and upon compliance by the county with Minnesota Statutes, section 645.021,
215.13subdivision 3.

215.14    Sec. 25. CITY OF WAYZATA; TIF DISTRICT 3; WIDSTEN.
215.15(a) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that
215.16activities must be undertaken within a five-year period from the date of certification of a
215.17tax increment financing district, are considered to be met for Tax Increment Financing
215.18District 3 (Widsten) in the city of Wayzata if the revenues derived from tax increments from
215.19the district are expended for any project contemplated by the original tax increment financing
215.20plan for the district, including, without limitation, a municipal parking ramp within the
215.21district.
215.22(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, do not
215.23apply to the district if the revenues derived from tax increment from the district are expended
215.24for any project contemplated by the original tax increment financing plan for the district,
215.25including, without limitation, a municipal parking ramp within the district.
215.26EFFECTIVE DATE.This section is effective upon compliance by the chief clerical
215.27officer of the governing body of the city of Wayzata with the requirements of Minnesota
215.28Statutes, section 645.021, subdivisions 2 and 3.


215.31    Section 1. Minnesota Statutes 2016, section 366.095, subdivision 1, is amended to read:
216.1    Subdivision 1. Certificates of indebtedness. The town board may issue certificates of
216.2indebtedness within the debt limits for a town purpose otherwise authorized by law. The
216.3certificates shall be payable in not more than ten years and be issued on the terms and in
216.4the manner as the board may determine, provided that notes issued for projects that eliminate
216.5R-22, as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more
216.6than 20 years. If the amount of the certificates to be issued exceeds 0.25 percent of the
216.7estimated market value of the town, they shall not be issued for at least ten days after
216.8publication in a newspaper of general circulation in the town of the board's resolution
216.9determining to issue them. If within that time, a petition asking for an election on the
216.10proposition signed by voters equal to ten percent of the number of voters at the last regular
216.11town election is filed with the clerk, the certificates shall not be issued until their issuance
216.12has been approved by a majority of the votes cast on the question at a regular or special
216.13election. A tax levy shall be made to pay the principal and interest on the certificates as in
216.14the case of bonds.

216.15    Sec. 2. Minnesota Statutes 2016, section 383B.117, subdivision 2, is amended to read:
216.16    Subd. 2. Equipment acquisition; capital notes. The board may, by resolution and
216.17without public referendum, issue capital notes within existing debt limits for the purpose
216.18of purchasing ambulance and other medical equipment, road construction or maintenance
216.19equipment, public safety equipment and other capital equipment having an expected useful
216.20life at least equal to the term of the notes issued. The notes shall be payable in not more
216.21than ten years and shall be issued on terms and in a manner as the board determines, provided
216.22that notes issued for projects that eliminate R-22, as defined in section 240A.09, paragraph
216.23(b), clause (2), must be payable in not more than 20 years. The total principal amount of
216.24the notes issued for any fiscal year shall not exceed one percent of the total annual budget
216.25for that year and shall be issued solely for the purchases authorized in this subdivision. A
216.26tax levy shall be made for the payment of the principal and interest on such notes as in the
216.27case of bonds. For purposes of this subdivision, "equipment" includes computer hardware
216.28and software, whether bundled with machinery or equipment or unbundled. For purposes
216.29of this subdivision, the term "medical equipment" includes computer hardware and software
216.30and other intellectual property for use in medical diagnosis, medical procedures, research,
216.31record keeping, billing, and other hospital applications, together with application development
216.32services and training related to the use of the computer hardware and software and other
216.33intellectual property, all without regard to their useful life. For purposes of determining the
216.34amount of capital notes which the county may issue in any year, the budget of the county
216.35and Hennepin Healthcare System, Inc. shall be combined and the notes issuable under this
217.1subdivision shall be in addition to obligations issuable under section 373.01, subdivision
217.23 .

217.3    Sec. 3. Minnesota Statutes 2016, section 410.32, is amended to read:
217.4410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
217.5    (a) Notwithstanding any contrary provision of other law or charter, a home rule charter
217.6city may, by resolution and without public referendum, issue capital notes subject to the
217.7city debt limit to purchase capital equipment.
217.8    (b) For purposes of this section, "capital equipment" means:
217.9    (1) public safety equipment, ambulance and other medical equipment, road construction
217.10and maintenance equipment, and other capital equipment; and
217.11    (2) computer hardware and software, whether bundled with machinery or equipment or
217.12unbundled, together with application development services and training related to the use
217.13of the computer hardware and software.
217.14    (c) The equipment or software must have an expected useful life at least as long as the
217.15term of the notes.
217.16    (d) The notes shall be payable in not more than ten years and be issued on terms and in
217.17the manner the city determines, provided that notes issued for projects that eliminate R-22,
217.18as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more than
217.1920 years. The total principal amount of the capital notes issued in a fiscal year shall not
217.20exceed 0.03 percent of the estimated market value of taxable property in the city for that
217.21year.
217.22    (e) A tax levy shall be made for the payment of the principal and interest on the notes,
217.23in accordance with section 475.61, as in the case of bonds.
217.24    (f) Notes issued under this section shall require an affirmative vote of two-thirds of the
217.25governing body of the city.
217.26    (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
217.27city may also issue capital notes subject to its debt limit in the manner and subject to the
217.28limitations applicable to statutory cities pursuant to section 412.301.

217.29    Sec. 4. Minnesota Statutes 2016, section 412.301, is amended to read:
217.30412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
218.1    (a) The council may issue certificates of indebtedness or capital notes subject to the city
218.2debt limits to purchase capital equipment.
218.3    (b) For purposes of this section, "capital equipment" means:
218.4    (1) public safety equipment, ambulance and other medical equipment, road construction
218.5and maintenance equipment, and other capital equipment; and
218.6    (2) computer hardware and software, whether bundled with machinery or equipment or
218.7unbundled, together with application development services and training related to the use
218.8of the computer hardware or software.
218.9    (c) The equipment or software must have an expected useful life at least as long as the
218.10terms of the certificates or notes.
218.11    (d) Such certificates or notes shall be payable in not more than ten years and shall be
218.12issued on such terms and in such manner as the council may determine, provided, however,
218.13that notes issued for projects that eliminate R-22, as defined in section 240A.09, paragraph
218.14(b), clause (2), must be payable in not more than 20 years.
218.15    (e) If the amount of the certificates or notes to be issued to finance any such purchase
218.16exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall
218.17not be issued for at least ten days after publication in the official newspaper of a council
218.18resolution determining to issue them; and if before the end of that time, a petition asking
218.19for an election on the proposition signed by voters equal to ten percent of the number of
218.20voters at the last regular municipal election is filed with the clerk, such certificates or notes
218.21shall not be issued until the proposition of their issuance has been approved by a majority
218.22of the votes cast on the question at a regular or special election.
218.23    (f) A tax levy shall be made for the payment of the principal and interest on such
218.24certificates or notes, in accordance with section 475.61, as in the case of bonds.

218.25    Sec. 5. [416.17] VOTER APPROVAL REQUIRED; LEASES OF PUBLIC
218.26BUILDINGS.
218.27    Subdivision 1. Reverse referendum; certain leases. (a) Before executing a qualified
218.28lease, a municipality must publish notice of its intention to execute the lease and the date
218.29and time of a hearing to obtain public comment on the matter. The notice must be published
218.30in the official newspaper of the municipality or in a newspaper of general circulation in the
218.31municipality and must include a statement of the amount of the obligations to be issued by
218.32the authority and the maximum amount of annual rent to be paid by the municipality under
219.1the qualified lease. The notice must be published at least 14, but not more than 28, days
219.2before the date of the hearing.
219.3(b) A municipality may enter a lease subject to paragraph (a) only upon obtaining the
219.4approval of a majority of the voters voting on the question of issuing the obligations, if a
219.5petition requesting a vote on the issuance is signed by voters equal to ten percent of the
219.6votes cast in the municipality in the last state general election and is filed with the county
219.7auditor within 30 days after the public hearing.
219.8    Subd. 2. Definitions. (a) For purposes of this section, the following terms have the
219.9meanings given them.
219.10(b) "Authority" includes any of the following governmental units, the boundaries of
219.11which include all or part of the geographic area of the municipality:
219.12(1) a housing and redevelopment authority, as defined in section 469.002, subdivision
219.132;
219.14(2) a port authority, as defined in section 469.048;
219.15(3) an economic development authority, as established under section 469.091; or
219.16(4) an entity established or exercising powers under a special law with powers similar
219.17to those of an entity described in clauses (1) to (3).
219.18(c) "Municipality" means a statutory or home rule charter city, a county, or a town
219.19described in section 368.01, but does not include a city of the first class, however organized,
219.20as defined in section 410.01.
219.21(d) "Qualified lease" means a lease for use of public land, all or part of a public building,
219.22or other public facilities consisting of real property for a term of three or more years as a
219.23lessee if the property to be leased to the municipality was acquired or improved with the
219.24proceeds of obligations, as defined in section 475.51, subdivision 3, issued by an authority.

219.25    Sec. 6. Minnesota Statutes 2016, section 469.101, subdivision 1, is amended to read:
219.26    Subdivision 1. Establishment. An economic development authority may create and
219.27define the boundaries of economic development districts at any place or places within the
219.28city, except that the district boundaries must be contiguous, and may use the powers granted
219.29in sections 469.090 to 469.108 to carry out its purposes. First the authority must hold a
219.30public hearing on the matter. At least ten days before the hearing, the authority shall publish
219.31notice of the hearing in a daily newspaper of general circulation in the city. Also, the authority
220.1shall find that an economic development district is proper and desirable to establish and
220.2develop within the city.

220.3    Sec. 7. Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision to
220.4read:
220.5    Subd. 1u. Obligations. In addition to other authority in this section, the council may
220.6issue certificates of indebtedness, bonds, or other obligations under this section in an amount
220.7not exceeding $126,000,000 for capital expenditures as prescribed in the council's transit
220.8capital improvement program and for related costs, including the costs of issuance and sale
220.9of the obligations. Of this authorization, after July 1, 2017, the council may issue certificates
220.10of indebtedness, bonds, or other obligations in an amount not exceeding $82,100,000, and
220.11after July 1, 2018, the council may issue certificates of indebtedness, bonds, or other
220.12obligations in an additional amount not exceeding $43,900,000.
220.13EFFECTIVE DATE.This section is effective the day following final enactment and
220.14applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

220.15    Sec. 8. Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision to
220.16read:
220.17    Subd. 6. Limitation; light rail transit. The council is prohibited from expending any
220.18proceeds from certificates of indebtedness, bonds, or other obligations under this section
220.19for project development, land acquisition, or construction to (1) establish a light rail transit
220.20line; or (2) expand a light rail transit line, including by extending a line or adding additional
220.21stops.
220.22EFFECTIVE DATE.This section applies to the expenditures made after the day
220.23following final enactment, but does not apply to amounts expended under binding contracts
220.24entered into before March 25, 2017. This section applies in the counties of Anoka, Carver,
220.25Dakota, Hennepin, Ramsey, Scott, and Washington.

220.26    Sec. 9. Minnesota Statutes 2016, section 475.60, subdivision 2, is amended to read:
220.27    Subd. 2. Requirements waived. The requirements as to public sale shall not apply:
220.28(1) to obligations issued under the provisions of a home rule charter or of a law
220.29specifically authorizing a different method of sale, or authorizing them to be issued in such
220.30manner or on such terms and conditions as the governing body may determine;
221.1(2) to obligations sold by an issuer in an amount not exceeding the total sum of
221.2$1,200,000 in any 12-month period;
221.3(3) to obligations issued by a governing body other than a school board in anticipation
221.4of the collection of taxes or other revenues appropriated for expenditure in a single year, if
221.5sold in accordance with the most favorable of two or more proposals solicited privately;
221.6(4) to obligations sold to any board, department, or agency of the United States of
221.7America or of the state of Minnesota, in accordance with rules or regulations promulgated
221.8by such board, department, or agency;
221.9(5) to obligations issued to fund pension and retirement fund liabilities under section
221.10475.52, subdivision 6 , obligations issued with tender options under section 475.54,
221.11subdivision 5a , crossover refunding obligations referred to in section 475.67, subdivision
221.1213 , and any issue of obligations comprised in whole or in part of obligations bearing interest
221.13at a rate or rates which vary periodically referred to in section 475.56;
221.14(6) to obligations to be issued for a purpose, in a manner, and upon terms and conditions
221.15authorized by law, if the governing body of the municipality, on the advice of bond counsel
221.16or special tax counsel, determines that interest on the obligations cannot be represented to
221.17be excluded from gross income for purposes of federal income taxation;
221.18(7) to obligations issued in the form of an installment purchase contract, lease purchase
221.19agreement, or other similar agreement;
221.20(8) to obligations sold under a bond reinvestment program; and
221.21(9) if the municipality has retained an independent financial advisor municipal adviser,
221.22obligations which the governing body determines shall be sold by private negotiation.


221.25    Section 1. Minnesota Statutes 2016, section 297F.05, subdivision 3, is amended to read:
221.26    Subd. 3. Rates; tobacco products. (a) Except as provided in paragraphs (b) and (c) and
221.27subdivision 3a, a tax is imposed upon all tobacco products in this state and upon any person
221.28engaged in business as a distributor, at the rate of 95 percent of the wholesale sales price
221.29of the tobacco products. The tax is imposed at the time the distributor:
221.30(1) brings, or causes to be brought, into this state from outside the state tobacco products
221.31for sale;
222.1(2) makes, manufactures, or fabricates tobacco products in this state for sale in this state;
222.2or
222.3(3) ships or transports tobacco products to retailers in this state, to be sold by those
222.4retailers.
222.5(b) Notwithstanding paragraph (a), A minimum tax equal to the greater of the tax imposed
222.6under paragraph (a) or a minimum tax equal to the rate imposed on a pack of 20 cigarettes
222.7weighing not more than three pounds per thousand, as established under subdivision 1, is
222.8imposed on each container of moist snuff weighing not more than 1.2 ounces. When more
222.9than one container subject to tax under this paragraph is packaged together, each container
222.10is subject to the minimum tax.
222.11(c) Except as provided in paragraph (b), a tax equal to the greater of the tax imposed
222.12under paragraph (a) or a minimum tax equal to the rate imposed on a pack of 20 cigarettes
222.13weighing not more than three pounds per thousand, as established under subdivision 1,
222.14multiplied by the number of ounces of moist snuff in the container, divided by 1.2, is imposed
222.15on each container of moist snuff weighing more than 1.2 ounces.
222.16    (d) For purposes of this subdivision, a "container" means the smallest a consumer-size
222.17can, package, or other container that is marketed or packaged by the manufacturer, distributor,
222.18or retailer for separate sale to a retail purchaser. When more than one container is packaged
222.19together, each container is subject to tax.
222.20EFFECTIVE DATE.This section is effective July 1, 2017.


222.23    Section 1. [16A.1246] NO SPENDING FOR CERTAIN RAIL PROJECTS.
222.24(a) Except as provided in paragraph (b), no appropriation or other state money, whether
222.25in the general or another fund, must be expended or used for any costs related to studying
222.26the feasibility of, planning for, designing, engineering, acquiring property or constructing
222.27facilities for or related to, or development or operation of intercity or interregional passenger
222.28rail facilities or operations between the city of Rochester or locations in its metropolitan
222.29area and any location in the metropolitan area, as defined in section 473.121, subdivision
222.302.
222.31(b) The restrictions under this section do not apply to funds obtained from contributions,
222.32grants, or other voluntary payments made by nongovernmental entities from private sources.
223.1EFFECTIVE DATE.This section is effective the day following final enactment.

223.2    Sec. 2. [16B.2965] PROPERTY LEASED FOR RAIL PROJECTS.
223.3(a) If a state official leases, loans, or otherwise makes available state lands, air rights,
223.4or any other state property for use in connection with passenger rail facilities, as described
223.5in section 16A.1246, the lease or other agreement must include or be secured by a security
223.6bond or equivalent guarantee that allows the state to recover any costs it incurs in connection
223.7with the rail project from a responsible third party or secure source of capital, if the passenger
223.8rail facilities are not constructed, do not go into operation, or are abandoned, whether or
223.9not the facilities began operations. The security bond or equivalent guarantee must remain
223.10in place for the term of lease, loan, or other agreement that makes state property available
223.11for use by the project. These costs include restoring state property to its original condition.
223.12(b) For purposes of this section, "state official" includes the commissioner, the
223.13commissioner of transportation, or any other state official with authority to enter a lease or
223.14other agreement providing for use by a nonstate entity of state property.
223.15EFFECTIVE DATE.This section is effective the day following final enactment.

223.16    Sec. 3. [117.028] CONDEMNATION FOR CERTAIN RAIL FACILITIES
223.17PROHIBITED.
223.18Notwithstanding section 222.27 or any other law to the contrary, no condemning authority
223.19may take property for the development or construction of or for facilities related to intercity
223.20or interregional passenger rail facilities or operations between the city of Rochester or
223.21locations in its metropolitan area and any location in the metropolitan area, as defined in
223.22section 473.121, subdivision 2.
223.23EFFECTIVE DATE.This section is effective the day following final enactment.

223.24    Sec. 4. Minnesota Statutes 2016, section 216B.36, is amended to read:
223.25216B.36 MUNICIPAL REGULATORY AND TAXING POWERS.
223.26    Subdivision 1. Municipal authority to regulate public utilities. Any public utility
223.27furnishing the utility services enumerated in section 216B.02 or occupying streets, highways,
223.28or other public property within a municipality may be required to obtain a license, permit,
223.29right, or franchise in accordance with the terms, conditions, and limitations of regulatory
223.30acts of the municipality, including the placing of distribution lines and facilities underground.
223.31Under the license, permit, right, or franchise, the utility may be obligated by any municipality
224.1to pay to the municipality fees to raise revenue or defray increased municipal costs accruing
224.2as a result of utility operations, or both. A fee that raises revenue under a license, permit,
224.3right, or franchise agreement entered into or renewed on or after August 1, 2017, is subject
224.4to the requirements of subdivision 2. The fee may include but is not limited to a sum of
224.5money based upon gross operating revenues or gross earnings from its operations in the
224.6municipality so long as the public utility shall continue to operate in the municipality, unless
224.7upon request of the public utility it is expressly released from the obligation at any time by
224.8such municipality. Notwithstanding the definition of "public utility" in section 216B.02,
224.9subdivision 4 , a municipality may require payment of a fee under this section by a cooperative
224.10electric association organized under chapter 308A that furnishes utility services within the
224.11municipality. All existing licenses, permits, franchises, and other rights acquired by any
224.12public utility or municipality prior to April 11, 1974, including the payment of existing
224.13franchise fees, shall not be impaired or affected in any respect by the passage of this chapter,
224.14except with respect to matters of rate and service regulation, service area assignments,
224.15securities, and indebtedness that are vested in the jurisdiction of the commission by this
224.16chapter. However, in the event that a court of competent jurisdiction determines, or the
224.17parties by mutual agreement determine, that an existing license, permit, franchise, or other
224.18right has been abrogated or impaired by this chapter, or its execution, the municipality
224.19affected shall impose and the public utility shall collect an excise tax on the utility charges
224.20which from year to year yields an amount which is reasonably equivalent to that amount of
224.21revenue which then would be due as a fee, charges or other thing or service of value to the
224.22municipality under the franchise, license, or permit. The authorization shall be over and
224.23above taxing limitations including, but not limited to, those of section 477A.016. Franchises
224.24granted pursuant to this section shall be exempt from the provisions of chapter 80C. For
224.25purposes of this section, a public utility shall include a cooperative electric association.
224.26    Subd. 2. Five-year renewal; reverse referendum. (a) A municipality may impose a
224.27fee under subdivision 1 to raise revenue beyond what is needed to defray increased municipal
224.28costs due to utility operations for up to a five-year period, following the procedures in this
224.29subdivision.
224.30(b) The municipality must include in its ordinance or license, permit, or franchise
224.31agreement with the public utility what constitutes a cost to the city.
224.32(c) The municipality must identify in its ordinance or license, permit, or franchise
224.33agreement the uses of the portion of the fee that is for purposes other than to defray city
224.34costs. The municipality must publish a notice that explains:
224.35(1) the fee and its intended uses;
225.1(2) that the public utility is likely to pass the fee on to customers and how much that
225.2may increase customers' utility bills;
225.3(3) that alternatives to the revenue-raising portion of the fee are to raise the revenue
225.4from another source available to the municipality or forego planned uses of the revenue;
225.5and
225.6(4) what revenue raised from another source will cost those paying it.
225.7The notice must be published at least once each week for two consecutive weeks in the
225.8official publication of the municipality and must remain posted on the municipality's Web
225.9site throughout the notice period. The notice must also be sent to all affected ratepayers by
225.10either first class mail by the municipality or by including the notice in the affected ratepayers'
225.11billings.
225.12(d) Following publication and before imposing the fee, the municipality must provide
225.13an opportunity at its next regular meeting for public comment relating to the issue. No
225.14sooner than 90 days after the public comment opportunity, the municipality may proceed
225.15with imposing the fee, unless a petition is filed as provided in paragraph (e).
225.16(e) Within 90 days after the meeting held by the municipality at which public comment
225.17was accepted, a petition requesting a referendum may be filed with the chief clerical officer
225.18of the municipality. The petition must be signed by at least five percent of the registered
225.19voters in the municipality. The petition must meet the requirements of the secretary of state,
225.20as provided in section 204B.071, and any rules adopted to implement that section. If the
225.21petition is sufficient, the question of whether the municipality may impose a fee that raises
225.22revenue as provided in subdivision 1 must be placed on the ballot at the next general election.
225.23If a majority of the voters voting on the question votes in favor of using the fee to raise
225.24revenue, the municipality may proceed with imposing the fee.
225.25(f) If a license, permit, right, or franchise agreement is entered into or renewed before
225.26August 1, 2017, and by its terms and the ordinance authorizing it, will be in effect after
225.27August 1, 2022, the municipality must follow the procedures in this subdivision to provide
225.28notice, a public hearing, and opportunity for a petition for a referendum by August 1, 2022.
225.29(g) Except as provided in paragraph (f), this subdivision applies to a license, permit,
225.30right, or franchise agreement entered into or renewed on or after August 1, 2017.
225.31EFFECTIVE DATE.This section is effective the day following final enactment.

226.1    Sec. 5. [222.271] PASSENGER RAIL PROJECTS; ENVIRONMENTAL
226.2INSURANCE REQUIRED.
226.3    Subdivision 1. Scope. (a) This section applies to any person that seeks a federal or state
226.4permit or other formal legal authorization to construct or operate a passenger rail project
226.5with an estimated capital cost exceeding $1,000,000,000.
226.6(b) This section does not apply to a person whose only action within the scope of
226.7paragraph (a) is an application for a building permit.
226.8    Subd. 2. Definitions. (a) For purposes of this section, unless the context clearly indicates
226.9otherwise, the following definitions apply.
226.10(b) "Commissioner" means the commissioner of the Pollution Control Agency.
226.11(c) "Insurance" means a commercial insurance policy, a security bond, or an equivalent
226.12guarantee that provides assurance of the project's ability to pay claims for any liability under
226.13chapter 115B or similar provisions of common law or federal law resulting from construction
226.14or operation of the passenger rail project.
226.15(d) "Passenger rail project" or "project" means a railroad or a line or lines of a railway
226.16located within or partly within Minnesota intended to provide passenger service, regardless
226.17of whether freight service is also provided, by a common carrier other than a federal or state
226.18government unit, a political subdivision of the state, or the National Railroad Passenger
226.19Corporation created under the Rail Passenger Service Act of 1970, Public Law 91-518.
226.20(e) "Person" includes a corporation, limited liability company, partnership, other entity,
226.21or an individual.
226.22    Subd. 3. Environmental insurance required. (a) Any person subject to this section
226.23must obtain and maintain insurance that is adequate to cover potential claims and meets the
226.24other requirements of this section, as approved by the commissioner under paragraph (b).
226.25The insurance must not contain dollar limits on liability, or if it does contain a dollar limit
226.26the limit must be not less than a reasonable estimate of the potential exposure of the project
226.27for environmental remediation or impairment damages. Any dollar limit must be adjusted
226.28if the scope, size, or cost of the project increases materially. The insurance must cover any
226.29liability incurred during and after the construction and operation of the project and must
226.30not contain exclusions, limitations, or other restrictions that are not standard in comprehensive
226.31environmental remediation insurance or in environmental impairment insurance, as
226.32applicable.
227.1(b) In order to satisfy the requirements of this section, the commissioner must determine
227.2that the insurance is adequate and that it meets the other requirements of this section. The
227.3commissioner may require that the project provide any supporting documentation to
227.4determine that insurance is adequate and meets the other requirements of this section and
227.5that the project has the financial ability to maintain insurance during the project's operations.
227.6EFFECTIVE DATE.This section is effective for passenger rail projects for which
227.7application for a permit or other formal legal authorization to construct is made after the
227.8day following final enactment.

227.9    Sec. 6. Minnesota Statutes 2016, section 270A.03, subdivision 7, is amended to read:
227.10    Subd. 7. Refund. "Refund" means an individual income tax refund or political
227.11contribution refund, pursuant to chapter 290, or a property tax credit or refund, pursuant to
227.12chapter 290A, or a sustainable forest payment to a claimant under chapter 290C.
227.13For purposes of this chapter, lottery prizes, as set forth in section 349A.08, subdivision
227.148 , and amounts granted to persons by the legislature on the recommendation of the joint
227.15senate-house of representatives Subcommittee on Claims shall be treated as refunds.
227.16In the case of a joint property tax refund payable to spouses under chapter 290A, the
227.17refund shall be considered as belonging to each spouse in the proportion of the total refund
227.18that equals each spouse's proportion of the total income determined under section 290A.03,
227.19subdivision 3 . In the case of a joint income tax refund under chapter 289A, the refund shall
227.20be considered as belonging to each spouse in the proportion of the total refund that equals
227.21each spouse's proportion of the total taxable income determined under section 290.01,
227.22subdivision 29 . The commissioner shall remit the entire refund to the claimant agency,
227.23which shall, upon the request of the spouse who does not owe the debt, determine the amount
227.24of the refund belonging to that spouse and refund the amount to that spouse. For court fines,
227.25fees, and surcharges and court-ordered restitution under section 611A.04, subdivision 2,
227.26the notice provided by the commissioner of revenue under section 270A.07, subdivision 2,
227.27paragraph (b), serves as the appropriate legal notice to the spouse who does not owe the
227.28debt.
227.29EFFECTIVE DATE.This section is effective for political contribution refund claims
227.30based on contributions made on or after July 1, 2017.

228.1    Sec. 7. Minnesota Statutes 2016, section 270C.13, subdivision 1, is amended to read:
228.2    Subdivision 1. Biennial report. The commissioner shall report to the legislature by
228.3March 1 of each odd-numbered year on the overall incidence of the income tax, sales and
228.4excise taxes, and property tax. The report shall present information on the distribution of
228.5the tax burden as follows: (1) for the overall income distribution, using a systemwide
228.6incidence measure such as the Suits index or other appropriate measures of equality and
228.7inequality; (2) by income classes, including at a minimum deciles of the income distribution;
228.8and (3) by other appropriate taxpayer characteristics. The report must also include information
228.9on the distribution of the burden of federal taxes borne by Minnesota residents.

228.10    Sec. 8. Minnesota Statutes 2016, section 287.08, is amended to read:
228.11287.08 TAX, HOW PAYABLE; RECEIPTS.
228.12    (a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of any
228.13county in this state in which the real property or some part is located at or before the time
228.14of filing the mortgage for record. The treasurer shall endorse receipt on the mortgage and
228.15the receipt is conclusive proof that the tax has been paid in the amount stated and authorizes
228.16any county recorder or registrar of titles to record the mortgage. Its form, in substance, shall
228.17be "registration tax hereon of ..................... dollars paid." If the mortgage is exempt from
228.18taxation the endorsement shall, in substance, be "exempt from registration tax." In either
228.19case the receipt must be signed by the treasurer. In case the treasurer is unable to determine
228.20whether a claim of exemption should be allowed, the tax must be paid as in the case of a
228.21taxable mortgage. For documents submitted electronically, the endorsements and tax amount
228.22shall be affixed electronically and no signature by the treasurer will be required. The actual
228.23payment method must be arranged in advance between the submitter and the receiving
228.24county.
228.25    (b) The county treasurer may refund in whole or in part any mortgage registry tax
228.26overpayment if a written application by the taxpayer is submitted to the county treasurer
228.27within 3-1/2 years from the date of the overpayment. If the county has not issued a denial
228.28of the application, the taxpayer may bring an action in Tax Court in the county in which
228.29the tax was paid at any time after the expiration of six months from the time that the
228.30application was submitted. A denial of refund may be appealed within 60 days from the
228.31date of the denial by bringing an action in Tax Court in the county in which the tax was
228.32paid. The action is commenced by the serving of a petition for relief on the county treasurer,
228.33and by filing a copy with the court. The county attorney shall defend the action. The county
229.1treasurer shall notify the treasurer of each county that has or would receive a portion of the
229.2tax as paid.
229.3    (c) If the county treasurer determines a refund should be paid, or if a refund is ordered
229.4by the court, the county treasurer of each county that actually received a portion of the tax
229.5shall immediately pay a proportionate share of three percent of the refund using any available
229.6county funds. The county treasurer of each county that received, or would have received,
229.7a portion of the tax shall also pay their county's proportionate share of the remaining 97
229.8percent of the court-ordered refund on or before the 20th day of the following month using
229.9solely the mortgage registry tax funds that would be paid to the commissioner of revenue
229.10on that date under section 287.12. If the funds on hand under this procedure are insufficient
229.11to fully fund 97 percent of the court-ordered refund, the county treasurer of the county in
229.12which the action was brought shall file a claim with the commissioner of revenue under
229.13section 16A.48 for the remaining portion of 97 percent of the refund, and shall pay over the
229.14remaining portion upon receipt of a warrant from the state issued pursuant to the claim.
229.15    (d) When any mortgage covers real property located in more than one county in this
229.16state the total tax must be paid to the treasurer of the county where the mortgage is first
229.17presented for recording, and the payment must be receipted as provided in paragraph (a).
229.18If the principal debt or obligation secured by such a multiple county mortgage exceeds
229.19$10,000,000, the tax collected shall be forwarded by the county treasurer receiving it to the
229.20commissioner of revenue and the nonstate portion of the tax must be divided and paid over
229.21by the county treasurer receiving it commissioner of revenue, on or before the 20th day of
229.22each month after receipt, to the county or counties entitled in the ratio that the estimated
229.23market value of the real property covered by the mortgage in each county bears to the
229.24estimated market value of all the real property in this state described in the mortgage. In
229.25making the division and payment the county treasurer commissioner of revenue shall send
229.26a statement giving the description of the real property described in the mortgage and the
229.27estimated market value of the part located in each county. For this purpose, the treasurer of
229.28any county commissioner of revenue may require the treasurer of any other county to certify
229.29to the former the estimated market value of any tract of real property in any mortgage in
229.30the county.
229.31    (e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The mortgagee
229.32may undertake to collect and remit the tax on behalf of the mortgagor. If the mortgagee
229.33collects money from the mortgagor to remit the tax on behalf of the mortgagor, the mortgagee
229.34has a fiduciary duty to remit the tax on behalf of the mortgagor as to the amount of the tax
230.1collected for that purpose and the mortgagor is relieved of any further obligation to pay the
230.2tax as to the amount collected by the mortgagee for this purpose.
230.3EFFECTIVE DATE.This section is effective for tax collected after June 30, 2017.

230.4    Sec. 9. Minnesota Statutes 2016, section 289A.50, subdivision 1, is amended to read:
230.5    Subdivision 1. General right to refund. (a) Subject to the requirements of this section
230.6and section 289A.40, a taxpayer who has paid a tax in excess of the taxes lawfully due and
230.7who files a written claim for refund will be refunded or credited the overpayment of the tax
230.8determined by the commissioner to be erroneously paid.
230.9(b) The claim must specify the name of the taxpayer, the date when and the period for
230.10which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer claims
230.11was erroneously paid, the grounds on which a refund is claimed, and other information
230.12relative to the payment and in the form required by the commissioner. An income tax, estate
230.13tax, or corporate franchise tax return, or amended return claiming an overpayment constitutes
230.14a claim for refund.
230.15(c) When, in the course of an examination, and within the time for requesting a refund,
230.16the commissioner determines that there has been an overpayment of tax, the commissioner
230.17shall refund or credit the overpayment to the taxpayer and no demand is necessary. If the
230.18overpayment exceeds $1, the amount of the overpayment must be refunded to the taxpayer.
230.19If the amount of the overpayment is less than $1, the commissioner is not required to refund.
230.20In these situations, the commissioner does not have to make written findings or serve notice
230.21by mail to the taxpayer.
230.22(d) If the amount allowable as a credit for withholding, estimated taxes, or dependent
230.23care exceeds the tax against which the credit is allowable, the amount of the excess is
230.24considered an overpayment. The refund allowed by section 290.06, subdivision 23, is also
230.25considered an overpayment. The requirements of section 270C.33 do not apply to the
230.26refunding of such an overpayment shown on the original return filed by a taxpayer.
230.27(e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes,
230.28penalties, and interest reported in the return of the entertainment entity or imposed by section
230.29290.9201 , the excess must be refunded to the entertainment entity. If the excess is less than
230.30$1, the commissioner need not refund that amount.
230.31(f) If the surety deposit required for a construction contract exceeds the liability of the
230.32out-of-state contractor, the commissioner shall refund the difference to the contractor.
231.1(g) An action of the commissioner in refunding the amount of the overpayment does not
231.2constitute a determination of the correctness of the return of the taxpayer.
231.3(h) There is appropriated from the general fund to the commissioner of revenue the
231.4amount necessary to pay refunds allowed under this section.
231.5EFFECTIVE DATE.This section is effective for political contribution refund claims
231.6based on contributions made on or after July 1, 2017.

231.7    Sec. 10. Minnesota Statutes 2016, section 290.01, subdivision 6, is amended to read:
231.8    Subd. 6. Taxpayer. The term "taxpayer" means any person or corporation subject to a
231.9tax imposed by this chapter. For purposes of section 290.06, subdivision 23, the term
231.10"taxpayer" means an individual eligible to vote in Minnesota under section 201.014.
231.11EFFECTIVE DATE.This section is effective for political contribution refund claims
231.12based on contributions made on or after July 1, 2017.

231.13    Sec. 11. Minnesota Statutes 2016, section 296A.01, subdivision 12, is amended to read:
231.14    Subd. 12. Compressed natural gas or CNG. "Compressed natural gas" or "CNG"
231.15means natural gas, primarily methane, condensed under high pressure and stored in specially
231.16designed storage tanks at between 2,000 and 3,600 pounds per square inch. For purposes
231.17of this chapter, the energy content of CNG is considered to be 1,000 900 BTUs per cubic
231.18foot.
231.19EFFECTIVE DATE.This section is effective for sales and purchases made after June
231.2030, 2017.

231.21    Sec. 12. Minnesota Statutes 2016, section 296A.08, subdivision 2, is amended to read:
231.22    Subd. 2. Rate of tax. The special fuel excise tax is imposed at the following rates:
231.23    (a) Liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon.
231.24    (b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.
231.25    (c) Compressed natural gas is taxed at the rate of $2.174 $1.974 per thousand cubic feet;
231.26or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline equivalent,"
231.27as defined by the National Conference on Weights and Measures, is 5.66 pounds of natural
231.28gas or 126.67 cubic feet.
232.1    (d) All other special fuel is taxed at the same rate as the gasoline excise tax as specified
232.2in section 296A.07, subdivision 2. The tax is payable in the form and manner prescribed
232.3by the commissioner.
232.4EFFECTIVE DATE.This section is effective for sales and purchases made after June
232.530, 2017.

232.6    Sec. 13. Minnesota Statutes 2016, section 296A.16, subdivision 2, is amended to read:
232.7    Subd. 2. Fuel used in other vehicle; claim for refund. Any person who buys and uses
232.8gasoline for a qualifying purpose other than use in motor vehicles, snowmobiles except as
232.9provided in clause (2), or motorboats, or special fuel for a qualifying purpose other than
232.10use in licensed motor vehicles, and who paid the tax directly or indirectly through the amount
232.11of the tax being included in the price of the gasoline or special fuel, or otherwise, shall be
232.12reimbursed and repaid the amount of the tax paid upon filing with the commissioner a claim
232.13for refund in the form and manner prescribed by the commissioner, and containing the
232.14information the commissioner shall require. By signing any such claim which is false or
232.15fraudulent, the applicant shall be subject to the penalties provided in this chapter for
232.16knowingly making a false claim. The claim shall set forth the total amount of the gasoline
232.17so purchased and used by the applicant other than in motor vehicles, or special fuel purchased
232.18and used by the applicant other than in licensed motor vehicles, and shall state when and
232.19for what purpose it was used. When a claim contains an error in computation or preparation,
232.20the commissioner is authorized to adjust the claim in accordance with the evidence shown
232.21on the claim or other information available to the commissioner. The commissioner, on
232.22being satisfied that the claimant is entitled to the payments, shall approve the claim and
232.23transmit it to the commissioner of management and budget. The words "gasoline" or "special
232.24fuel" as used in this subdivision do not include aviation gasoline or special fuel for aircraft.
232.25Gasoline or special fuel bought and used for a "qualifying purpose" means:
232.26    (1) Gasoline or special fuel used in carrying on a trade or business, used on a farm
232.27situated in Minnesota, and used for a farming purpose. "Farm" and "farming purpose" have
232.28the meanings given them in section 6420(c)(2), (3), and (4) of the Internal Revenue Code
232.29as defined in section 289A.02, subdivision 7.
232.30    (2) Gasoline or special fuel used for off-highway business use.
232.31    (i) "Off-highway business use" means any use off the public highway by a person in
232.32that person's trade, business, or activity for the production of income.
233.1    (ii) Off-highway business use includes use of a passenger snowmobile off the public
233.2highways as part of the operations of a resort as defined in section 157.15, subdivision 11;
233.3and use of gasoline or special fuel to operate a power takeoff unit on a vehicle, but not
233.4including fuel consumed during idling time.
233.5    (iii) Off-highway business use does not include use as a fuel in a motor vehicle which,
233.6at the time of use, is registered or is required to be registered for highway use under the
233.7laws of any state or foreign country; or use of a licensed motor vehicle fuel tank in lieu of
233.8a separate storage tank for storing fuel to be used for a qualifying purpose, as defined in
233.9this section. Fuel purchased to be used for a qualifying purpose cannot be placed in the fuel
233.10tank of a licensed motor vehicle and must be stored in a separate supply tank.
233.11    (3) Gasoline or special fuel placed in the fuel tanks of new motor vehicles, manufactured
233.12in Minnesota, and shipped by interstate carrier to destinations in other states or foreign
233.13countries.
233.14    (4) Special fuel used in one of the following:
233.15    (i) to power a refrigeration unit mounted on a licensed motor vehicle, provided that the
233.16unit has an engine separate from the one used to propel the vehicle and the fuel is used
233.17exclusively for the unit;
233.18    (ii) to power an unlicensed motor vehicle that is used solely or primarily to move
233.19semitrailers within a cargo yard, warehouse facility, or intermodal facility; or
233.20    (iii) to operate a power take-off unit or auxiliary engine in or on a licensed motor vehicle,
233.21whether or not the unit or engine is fueled from the same or a different fuel tank as that
233.22from which the motor vehicle is fueled.
233.23EFFECTIVE DATE.This section is effective for sales and purchases made after June
233.2430, 2017.

233.25    Sec. 14. Minnesota Statutes 2016, section 297A.68, subdivision 19, is amended to read:
233.26    Subd. 19. Petroleum products. The following petroleum products are exempt:
233.27(1) products upon which a tax has been imposed and paid under chapter 296A, and for
233.28which no refund has been or will be allowed because the buyer used the fuel for nonhighway
233.29use;
233.30(2) products that are used in the improvement of agricultural land by constructing,
233.31maintaining, and repairing drainage ditches, tile drainage systems, grass waterways, water
233.32impoundment, and other erosion control structures;
234.1(3) products purchased by a transit system receiving financial assistance under section
234.2174.24 , 256B.0625, subdivision 17, or 473.384;
234.3(4) products purchased by an ambulance service licensed under chapter 144E;
234.4(5) products used in a passenger snowmobile, as defined in section 296A.01, subdivision
234.539 , for off-highway business use as part of the operations of a resort as provided under
234.6section 296A.16, subdivision 2, clause (2);
234.7(6) products purchased by a state or a political subdivision of a state for use in motor
234.8vehicles exempt from registration under section 168.012, subdivision 1, paragraph (b);
234.9(7) products purchased by providers of transportation to recipients of medical assistance
234.10home and community-based services waivers enrolled in day programs, including adult day
234.11care, family adult day care, day treatment and habilitation, prevocational services, and
234.12structured day services; or
234.13(8) products used in a motor vehicle used exclusively as a mobile medical unit for the
234.14provision of medical or dental services by a federally qualified health center, as defined
234.15under title 19 of the federal Social Security Act, as amended by Section 4161 of the Omnibus
234.16Budget Reconciliation Act of 1990; or
234.17(9) special fuels eligible for a motor fuel tax refund under section 296A.16, subdivision
234.182, clause (4).
234.19EFFECTIVE DATE.This section is effective for sales and purchases made after June
234.2030, 2017.

234.21    Sec. 15. Minnesota Statutes 2016, section 297E.02, subdivision 6, is amended to read:
234.22    Subd. 6. Combined net receipts tax. (a) In addition to the taxes imposed under
234.23subdivision 1, a tax is imposed on the combined net receipts of the organization. As used
234.24in this section, "combined net receipts" is the sum of the organization's gross receipts from
234.25lawful gambling less gross receipts directly derived from the conduct of paper bingo, raffles,
234.26and paddlewheels, as defined in section 297E.01, subdivision 8, and less the net prizes
234.27actually paid, other than prizes actually paid for paper bingo, raffles, and paddlewheels, and
234.28less six percent of the amounts actually expended for lawful purpose contributions under
234.29section 349.12, subdivision 25, paragraph (a), clauses (1) to (7) and (9) to (26), for the fiscal
234.30year. The combined net receipts of an organization are subject to a tax computed according
234.31to the following schedule:

234.32 234.33		If the combined net receipts for the fiscal year are:		The tax is:
235.1		Not over $87,500		nine percent
235.2 235.3		Over $87,500, but not over $122,500		$7,875 plus 18 percent of the amount over $87,500, but not over $122,500
235.4 235.5		Over $122,500, but not over $157,500		$14,175 plus 27 percent of the amount over $122,500, but not over $157,500
235.6 235.7		Over $157,500		$23,625 plus 36 percent of the amount over $157,500

235.8(b) On or before April 1, 2016, the commissioner shall estimate the total amount of
235.9revenue, including interest and penalties, that will be collected for fiscal year 2016 from
235.10taxes imposed under this chapter. If the amount estimated by the commissioner equals or
235.11exceeds $94,800,000, the commissioner shall certify that effective July 1, 2016, the rates
235.12under this paragraph apply in lieu of the rates under paragraph (a) and shall publish a notice
235.13to that effect in the State Register and notify each taxpayer by June 1, 2016. If the rates
235.14under this section apply, the combined net receipts of an organization are subject to a tax
235.15computed according to the following schedule:

235.16 235.17		If the combined net receipts for the fiscal year are:		The tax is:
235.18		Not over $87,500		8.5 percent
235.19 235.20		Over $87,500, but not over $122,500		$7,438 plus 17 percent of the amount over $87,500, but not over $122,500
235.21 235.22 235.23		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
235.24 235.25		Over $157,500		$22,313 plus 34 percent of the amount over $157,500

235.26(c) Gross receipts derived from sports-themed tipboards are exempt from taxation under
235.27this section. For purposes of this paragraph, a sports-themed tipboard means a sports-themed
235.28tipboard as defined in section 349.12, subdivision 34, under which the winning numbers
235.29are determined by the numerical outcome of a professional sporting event.
235.30EFFECTIVE DATE.This section is effective July 1, 2017.

235.31    Sec. 16. Minnesota Statutes 2016, section 298.225, subdivision 1, is amended to read:
235.32    Subdivision 1. Guaranteed distribution. (a) Except as provided under paragraph (c),
235.33the distribution of the taconite production tax as provided in section 298.28, subdivisions
235.343 to 5, 6, paragraph (b), 7, and 8, shall equal the lesser of the following amounts:
235.35(1) the amount distributed pursuant to this section and section 298.28, with respect to
235.361983 production if the production for the year prior to the distribution year is no less than
235.3742,000,000 taxable tons. If the production is less than 42,000,000 taxable tons, the amount
236.1of the distributions shall be reduced proportionately at the rate of two percent for each
236.21,000,000 tons, or part of 1,000,000 tons by which the production is less than 42,000,000
236.3tons; or
236.4(2)(i) for the distributions made pursuant to section 298.28, subdivisions 4, paragraphs
236.5(b) and (c), and 6, paragraph (c), 31.2 percent of the amount distributed pursuant to this
236.6section and section 298.28, with respect to 1983 production;
236.7(ii) for the distributions made pursuant to section 298.28, subdivision 5, paragraphs (b)
236.8and (d), 75 percent of the amount distributed pursuant to this section and section 298.28,
236.9with respect to 1983 production provided that the aid guarantee for distributions under
236.10section 298.28, subdivision 5, paragraph (b), shall be reduced by five cents per taxable ton
236.11for production years 2014 and thereafter.
236.12(b) The distribution of the taconite production tax as provided in section 298.28,
236.13subdivision 2 , shall equal the following amount:
236.14(1) if the production for the year prior to the distribution year is at least 42,000,000
236.15taxable tons, the amount distributed pursuant to this section and section 298.28 with respect
236.16to 1999 production; or
236.17(2) if the production for the year prior to the distribution year is less than 42,000,000
236.18taxable tons, the amount distributed pursuant to this section and section 298.28 with respect
236.19to 1999 production, reduced proportionately at the rate of two percent for each 1,000,000
236.20tons or part of 1,000,000 tons by which the production is less than 42,000,000 tons.
236.21(c) The distribution of the taconite production tax under section 298.28, subdivision 3,
236.22paragraph (a), guaranteed under this section is equal to the amount distributed under section
236.23298.28, with respect to 1983 production.
236.24EFFECTIVE DATE.This section is effective for distributions in 2018 and thereafter.

236.25    Sec. 17. Minnesota Statutes 2016, section 298.28, subdivision 3, is amended to read:
236.26    Subd. 3. Cities; towns. (a) 12.5 cents per taxable ton, less any amount distributed under
236.27subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid account
236.28to be distributed as provided in section 298.282. The amount allocated to the taconite
236.29municipal aid account must be annually increased in the same proportion as the increase in
236.30the implicit price deflator as provided in section 298.24, subdivision 1.
236.31    (b) An amount must be allocated to towns or cities that is annually certified by the county
236.32auditor of a county containing a taconite tax relief area as defined in section 273.134,
237.1paragraph (b) , within which there is (1) an organized township if, as of January 2, 1982,
237.2more than 75 percent of the assessed valuation of the township consists of iron ore or (2) a
237.3city if, as of January 2, 1980, more than 75 percent of the assessed valuation of the city
237.4consists of iron ore.
237.5    (c) The amount allocated under paragraph (b) will be the portion of a township's or city's
237.6certified levy equal to the proportion of (1) the difference between 50 percent of January
237.72, 1982, assessed value in the case of a township and 50 percent of the January 2, 1980,
237.8assessed value in the case of a city and its current assessed value to (2) the sum of its current
237.9assessed value plus the difference determined in (1), provided that the amount distributed
237.10shall not exceed $55 per capita in the case of a township or $75 per capita in the case of a
237.11city. For purposes of this limitation, population will be determined according to the 1980
237.12decennial census conducted by the United States Bureau of the Census. If the current assessed
237.13value of the township exceeds 50 percent of the township's January 2, 1982, assessed value,
237.14or if the current assessed value of the city exceeds 50 percent of the city's January 2, 1980,
237.15assessed value, this paragraph shall not apply. For purposes of this paragraph, "assessed
237.16value," when used in reference to years other than 1980 or 1982, means the appropriate net
237.17tax capacities multiplied by 10.2.
237.18    (d) In addition to other distributions under this subdivision, three cents per taxable ton
237.19for distributions in 2009 must be allocated for distribution to towns that are entirely located
237.20within the taconite tax relief area defined in section 273.134, paragraph (b). For distribution
237.21in 2010 through 2014 and for distribution in 2018 and subsequent years, the three-cent
237.22amount must be annually increased in the same proportion as the increase in the implicit
237.23price deflator as provided in section 298.24, subdivision 1. The amount available under this
237.24paragraph will be distributed to eligible towns on a per capita basis, provided that no town
237.25may receive more than $50,000 in any year under this paragraph. Any amount of the
237.26distribution that exceeds the $50,000 limitation for a town under this paragraph must be
237.27redistributed on a per capita basis among the other eligible towns, to whose distributions
237.28do not exceed $50,000.
237.29EFFECTIVE DATE.This section is effective for distributions in 2018 and thereafter.

237.30    Sec. 18. [459.36] NO SPENDING OF PUBLIC MONEY FOR CERTAIN RAIL
237.31PROJECTS.
237.32(a) Except as provided in paragraph (b), a governmental unit must not spend or use any
237.33money for any costs related to studying the feasibility of, planning for, designing,
237.34engineering, acquiring property or constructing facilities for or related to, or development
238.1or operation of intercity or interregional passenger rail facilities or operations between the
238.2city of Rochester, or locations in its metropolitan area, and any location in the metropolitan
238.3area, as defined in section 473.121, subdivision 2.
238.4(b) The restrictions under this section do not apply to:
238.5(1) funds the governmental unit obtains from contributions, grants, or other voluntary
238.6payments made by nongovernmental entities from private sources; and
238.7(2) expenditures for costs of public infrastructure, including public utilities, parking
238.8facilities, a multimode transit hub, or similar projects located within the area of the
238.9development district, as defined under section 469.40, and reflected in the development
238.10plan adopted before the enactment of this section, that are intended to serve, and that are
238.11made following the completed construction and commencement of operation of privately
238.12financed and operated intercity or interregional passenger rail facilities.
238.13(c) For purposes of this section, "governmental unit" means any of the following, located
238.14in development regions 10 and 11, as designated under section 462.385, subdivision 1:
238.15(1) statutory or home rule charter city;
238.16(2) county;
238.17(3) special taxing district, as defined in section 275.066;
238.18(4) metropolitan planning organization; or
238.19(5) destination medical center entity, which includes the Destination Medical Center
238.20Corporation and agency, as those terms are defined in section 469.40, and any successor or
238.21related entity.
238.22EFFECTIVE DATE.This section is effective the day following final enactment without
238.23local approval under Minnesota Statutes, section 645.023, subdivision 1, clause (c).

238.24    Sec. 19. Minnesota Statutes 2016, section 462.353, subdivision 4, is amended to read:
238.25    Subd. 4. Fees. (a) A municipality may prescribe fees sufficient to defray the costs incurred
238.26by it in reviewing, investigating, and administering an application for an amendment to an
238.27official control established pursuant to sections 462.351 to 462.364 or an application for a
238.28permit or other approval required under an official control established pursuant to those
238.29sections. Except as provided in subdivision 4a, fees as prescribed must be by ordinance.
238.30Fees must be fair, reasonable, and proportionate and have a nexus to the actual cost of the
238.31service for which the fee is imposed.
239.1(b) A municipality must adopt management and accounting procedures to ensure that
239.2fees are maintained and used only for the purpose for which they are collected. Upon request,
239.3a municipality must explain the basis of its fees.
239.4(c) Except as provided in this paragraph, a fee ordinance or amendment to a fee ordinance
239.5is effective January 1 after its adoption. A municipality may adopt a fee ordinance or an
239.6amendment to a fee ordinance with an effective date other than the next January 1, but the
239.7ordinance or amendment does not apply if an application for final approval has been
239.8submitted to the municipality.
239.9(d) If a dispute arises over a specific fee imposed by a municipality related to a specific
239.10application, the person aggrieved by the fee may appeal under section 462.361, provided
239.11that the appeal must be brought within 60 days after approval of an application under this
239.12section and deposit of the fee into escrow. A municipality must not condition the approval
239.13of any proposed subdivision or development on an agreement to waive the right to challenge
239.14the validity of a fee. An approved application may proceed as if the fee had been paid,
239.15pending a decision on the appeal. This paragraph must not be construed to preclude the
239.16municipality from conditioning approval of any proposed subdivision or development on
239.17an agreement to waive a challenge to the cost associated with municipally installed
239.18improvements of the type described in section 429.021.
239.19(e) A municipality may not impose a fee to review or investigate a use if the use is
239.20allowed without any permit, approval, or amendment to an official control. This limitation
239.21does not apply to a fee for a review or investigation:
239.22(1) of compliance with health and safety requirements; or
239.23(2) that results in finding a violation, unless the finding is overturned on appeal or a
239.24penalty, fine, or other charge is imposed for the violation.
239.25EFFECTIVE DATE.This section is effective August 1, 2017, and applies to fees
239.26imposed on or after that date.

239.27    Sec. 20. [473.1467] NO SPENDING FOR CERTAIN RAIL PROJECTS.
239.28(a) Except as provided in paragraph (b), the council must not spend or use any money
239.29for any costs related to studying the feasibility of, planning for, designing, engineering,
239.30acquiring property or constructing facilities for or related to, or development or operation
239.31of intercity or interregional passenger rail facilities or operations between the city of
239.32Rochester or locations in its metropolitan area and any location in the metropolitan area, as
239.33defined in section 473.121, subdivision 2.
240.1(b) The restrictions under this section do not apply to funds the council obtains from
240.2contributions, grants, or other voluntary payments made by nongovernmental entities from
240.3private sources.
240.4EFFECTIVE DATE; APPLICATION.This section is effective the day following
240.5final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
240.6Scott, and Washington.

240.7    Sec. 21. CLARIFYING AUTHORITY TO USE PREVIOUSLY DISTRIBUTED
240.8TACONITE TAX PROCEEDS.
240.9The commissioner of Iron Range resources and rehabilitation may use unspent amounts
240.10allocated under Minnesota Statutes 2014, section 298.2961, subdivision 5, clause (19),
240.11remaining as of May 22, 2016, for the specific purposes identified in that section.
240.12Notwithstanding Minnesota Statutes, section 298.28, subdivision 11, paragraph (a), or any
240.13other law to the contrary, interest accrued on this amount shall also be distributed to the
240.14recipient. Amounts under this section are available until expended and do not lapse or cancel
240.15under Minnesota Statutes, section 16A.28.
240.16EFFECTIVE DATE.This section is effective retroactively from May 22, 2016.

240.17    Sec. 22. CITY OF TAYLORS FALLS; DEVELOPMENT ZONE.
240.18    Subdivision 1. Authorization. The governing body of the city of Taylors Falls may
240.19designate all or any part of the city as a development zone under Minnesota Statutes, section
240.20469.1731.
240.21    Subd. 2. Application of general law. (a) Minnesota Statutes, sections 469.1731 to
240.22469.1735, apply to the development zones designated under this section. The governing
240.23body of the city may exercise the powers granted under Minnesota Statutes, sections 469.1731
240.24to 469.1735, including powers that apply outside of the zones.
240.25(b) The allocation under subdivision 3 for purposes of Minnesota Statutes, section
240.26469.1735, subdivision 2, is appropriated to the commissioner of revenue.
240.27    Subd. 3. Allocation of state tax reductions. (a) The cumulative total amount of the
240.28state portion of the tax reductions for all years of the program under Minnesota Statutes,
240.29sections 469.1731 to 469.1735, for the city of Taylors Falls, is limited to $100,000. To
240.30provide the authority under this section, the amount of the allocation for border cities under
240.31Minnesota Statutes, section 469.169, in this act is reduced by $100,000.
241.1(b) This allocation may be used for tax reductions provided in Minnesota Statutes, section
241.2469.1732 or 469.1734, or for reimbursements under Minnesota Statutes, section 469.1735,
241.3subdivision 3, but only if the governing body of the city of Taylors Falls determines that
241.4the tax reduction or offset is necessary to enable a business to expand within the city or to
241.5attract a business to the city.
241.6(c) The commissioner of revenue may waive the limit under this subdivision using the
241.7same rules and standards provided in Minnesota Statutes, section 469.169, subdivision 12,
241.8paragraph (b).
241.9EFFECTIVE DATE.This section is effective July 1, 2017, and does not require local
241.10approval pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

241.11    Sec. 23. SUPPLEMENT TO 2017 REPORT.
241.12By January 2, 2018, the commissioner of revenue shall prepare a supplement to the 2017
241.13tax incidence report containing the information required by section 7.
241.14EFFECTIVE DATE.This section is effective the day following final enactment.

241.15    Sec. 24. REPEALER.
241.16(a) Minnesota Statutes 2016, sections 10A.322, subdivision 4; 13.4967, subdivision 2;
241.17and 290.06, subdivision 23, and Minnesota Rules, part 4503.1400, subpart 4, are repealed.
241.18(b) Minnesota Statutes 2016, section 477A.20, is repealed.
241.19(c) Minnesota Statutes 2016, sections 136A.129; and 290.06, subdivision 36, are repealed.
241.20EFFECTIVE DATE.Paragraph (a) is effective for contributions made after June 30,
241.212017, and refund claims filed after June 30, 2017. Paragraph (b) is effective the day following
241.22final enactment. Paragraph (c) is effective for agreements entered into after June 30, 2017,
241.23and for taxable years beginning after December 31, 2017.


241.26    Section 1. [289A.14] USE OF AUTOMATED SALES SUPPRESSION DEVICES;
241.27DEFINITIONS.
241.28(a) For the purposes of sections 289A.60, subdivision 32, 289A.63, subdivision 12, and
241.29609.5316, subdivision 3, the following terms have the meanings given.
242.1(b) "Automated sales suppression device" or "zapper" means a software program, carried
242.2on any tangible medium, or accessed through any other means, that falsifies the electronic
242.3records of electronic cash registers and other point-of-sale systems including, but not limited
242.4to, transaction data and transaction reports.
242.5(c) "Electronic cash register" means a device that keeps a register or supporting documents
242.6through the means of an electronic device or computer system designed to record transaction
242.7data for the purpose of computing, compiling, or processing retail sales transaction data in
242.8whatever manner.
242.9(d) "Phantom-ware" means hidden preinstalled or later-installed programming option
242.10embedded in the operating system of an electronic cash register or hardwired into the
242.11electronic cash register that can be used to create a virtual second electronic cash register
242.12or may eliminate or manipulate transaction records that may or may not be preserved in
242.13digital formats to represent the true or manipulated record of transactions in the electronic
242.14cash register.
242.15(e) "Transaction data" includes items purchased by a customer, the price of each item,
242.16the taxability determination for each item, a segregated tax amount for each of the taxed
242.17items, the date and time of the purchase, the name, address, and identification number of
242.18the vendor, and the receipt or invoice number of the transaction.
242.19(f) "Transaction report" means a report documenting, but not limited to, the sales, taxes
242.20collected, media totals, and discount voids at an electronic cash register that is printed on
242.21cash register tape at the end of a day or shift, or a report documenting every action at an
242.22electronic cash register that is stored electronically.
242.23EFFECTIVE DATE.This section is effective for activities enumerated in Minnesota
242.24Statutes, section 289A.63, subdivision 12, or 289A.60, subdivision 32, that occur on or after
242.25August 1, 2017.

242.26    Sec. 2. Minnesota Statutes 2016, section 289A.60, is amended by adding a subdivision to
242.27read:
242.28    Subd. 32. Sales suppression. (a) A person who:
242.29(1) sells;
242.30(2) transfers;
242.31(3) develops;
242.32(4) manufactures; or
243.1(5) possesses with the intent to sell or transfer
243.2an automated sales suppression device, zapper, phantom-ware, or similar device capable of
243.3being used to commit tax fraud or suppress sales is liable for a civil penalty calculated under
243.4paragraph (b).
243.5(b) The amount of the civil penalty equals the greater of (1) $2,000, or (2) the total
243.6amount of all taxes and penalties due that are attributable to the use of any automated sales
243.7suppression device, zapper, phantom-ware, or similar device facilitated by the sale, transfer,
243.8development, or manufacture of the automated sales suppression device, zapper,
243.9phantom-ware, or similar device by the person.
243.10(c) The definitions in section 289A.14 apply to this subdivision.
243.11(d) This subdivision does not apply to the commissioner, a person acting at the direction
243.12of the commissioner, an agent of the commissioner, law enforcement agencies, or
243.13postsecondary education institutions that possess an automated sales suppression device,
243.14zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated
243.15sales suppression devices, zappers, or phantom-ware.
243.16EFFECTIVE DATE.This section is effective for activities enumerated that occur on
243.17or after August 1, 2017.

243.18    Sec. 3. Minnesota Statutes 2016, section 289A.63, is amended by adding a subdivision to
243.19read:
243.20    Subd. 12. Felony. (a) A person who sells, purchases, installs, transfers, develops,
243.21manufactures, or uses an automated sales suppression device, zapper, phantom-ware, or
243.22similar device knowing that the device or phantom-ware is capable of being used to commit
243.23tax fraud or suppress sales is guilty of a felony and may be sentenced to imprisonment for
243.24not more than five years or to a payment of a fine of not more than $10,000, or both.
243.25(b) An automated sales suppression device, zapper, phantom-ware, and any other device
243.26containing an automated sales suppression, zapper, or phantom-ware device or software is
243.27contraband and subject to forfeiture under section 609.5316.
243.28(c) The definitions in section 289A.14 apply to this subdivision.
243.29(d) This subdivision does not apply to the commissioner, a person acting at the direction
243.30of the commissioner, an agent of the commissioner, law enforcement agencies, or
243.31postsecondary education institutions that possess an automated sales suppression device,
244.1zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated
244.2sales suppression devices, zappers, or phantom-ware.
244.3EFFECTIVE DATE.This section is effective for activities enumerated that occur on
244.4or after August 1, 2017.

244.5    Sec. 4. Minnesota Statutes 2016, section 609.5316, subdivision 3, is amended to read:
244.6    Subd. 3. Weapons, telephone cloning paraphernalia, automated sales suppression
244.7devices, and bullet-resistant vests. Weapons used are contraband and must be summarily
244.8forfeited to the appropriate agency upon conviction of the weapon's owner or possessor for
244.9a controlled substance crime; for any offense of this chapter or chapter 624, or for a violation
244.10of an order for protection under section 518B.01, subdivision 14. Bullet-resistant vests, as
244.11defined in section 609.486, worn or possessed during the commission or attempted
244.12commission of a crime are contraband and must be summarily forfeited to the appropriate
244.13agency upon conviction of the owner or possessor for a controlled substance crime or for
244.14any offense of this chapter. Telephone cloning paraphernalia used in a violation of section
244.15609.894 , and automated sales suppression devices, phantom-ware, and other devices
244.16containing an automated sales suppression or phantom-ware device or software used in
244.17violation of section 289A.63, subdivision 12, are contraband and must be summarily forfeited
244.18to the appropriate agency upon a conviction.
244.19EFFECTIVE DATE.This section is effective for activities enumerated in Minnesota
244.20Statutes, section 289A.63, subdivision 12, that occur on or after August 1, 2017.


244.24    Section 1. Minnesota Statutes 2016, section 289A.08, subdivision 11, is amended to read:
244.25    Subd. 11. Information included in income tax return. (a) The return must state:
244.26    (1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the address
244.27of the taxpayer in the same name or names and same address as the taxpayer has used in
244.28making the taxpayer's income tax return to the United States;
244.29    (2) the date or dates of birth of the taxpayer or taxpayers;
244.30    (3) the Social Security number of the taxpayer, or taxpayers, if a Social Security number
244.31has been issued by the United States with respect to the taxpayers; and
245.1    (4) the amount of the taxable income of the taxpayer as it appears on the federal return
245.2for the taxable year to which the Minnesota state return applies.
245.3    (b) The taxpayer must attach to the taxpayer's Minnesota state income tax return a copy
245.4of the federal income tax return that the taxpayer has filed or is about to file for the period,
245.5unless the taxpayer is eligible to telefile the federal return and does file the Minnesota return
245.6by telefiling.
245.7EFFECTIVE DATE.This section is effective the day following final enactment.

245.8    Sec. 2. Minnesota Statutes 2016, section 289A.08, subdivision 16, is amended to read:
245.9    Subd. 16. Tax refund or return preparers; electronic filing; paper filing fee imposed.
245.10(a) A "tax refund or return preparer," as defined in section 289A.60, subdivision 13, paragraph
245.11(f), who is a tax return preparer for purposes of section 6011(e) of the Internal Revenue
245.12Code, and who reasonably expects to prepare more than ten Minnesota individual income,
245.13corporate franchise, S corporation, partnership, or fiduciary income tax returns for the prior
245.14calendar year must file all Minnesota individual income, corporate franchise, S corporation,
245.15partnership, or fiduciary income tax returns prepared for that calendar year by electronic
245.16means.
245.17(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return
245.18that the taxpayer did not want the return filed by electronic means.
245.19(c) For each return that is not filed electronically by a tax refund or return preparer under
245.20this subdivision, including returns filed under paragraph (b), a paper filing fee of $5 is
245.21imposed upon the preparer. The fee is collected from the preparer in the same manner as
245.22income tax. The fee does not apply to returns that the commissioner requires to be filed in
245.23paper form.
245.24EFFECTIVE DATE.This section is effective for taxable years beginning after December
245.2531, 2016.

245.26    Sec. 3. Minnesota Statutes 2016, section 289A.09, subdivision 2, is amended to read:
245.27    Subd. 2. Withholding statement. (a) A person required to deduct and withhold from
245.28an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, or
245.29who would have been required to deduct and withhold a tax under section 290.92, subdivision
245.302a or 3, or persons required to withhold tax under section 290.923, subdivision 2, determined
245.31without regard to section 290.92, subdivision 19, if the employee or payee had claimed no
245.32more than one withholding exemption, or who paid wages or made payments not subject
246.1to withholding under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, to an
246.2employee or person receiving royalty payments in excess of $600, or who has entered into
246.3a voluntary withholding agreement with a payee under section 290.92, subdivision 20, must
246.4give every employee or person receiving royalty payments in respect to the remuneration
246.5paid by the person to the employee or person receiving royalty payments during the calendar
246.6year, on or before January 31 of the succeeding year, or, if employment is terminated before
246.7the close of the calendar year, within 30 days after the date of receipt of a written request
246.8from the employee if the 30-day period ends before January 31, a written statement showing
246.9the following:
246.10    (1) name of the person;
246.11    (2) the name of the employee or payee and the employee's or payee's Social Security
246.12account number;
246.13    (3) the total amount of wages as that term is defined in section 290.92, subdivision 1,
246.14paragraph (1); the total amount of remuneration subject to withholding under section 290.92,
246.15subdivision 20 ; the amount of sick pay as required under section 6051(f) of the Internal
246.16Revenue Code; and the amount of royalties subject to withholding under section 290.923,
246.17subdivision 2 ; and
246.18    (4) the total amount deducted and withheld as tax under section 290.92, subdivision 2a
246.19or 3, or 290.923, subdivision 2.
246.20    (b) The statement required to be furnished by paragraph (a) with respect to any
246.21remuneration must be furnished at those times, must contain the information required, and
246.22must be in the form the commissioner prescribes.
246.23    (c) The commissioner may prescribe rules providing for reasonable extensions of time,
246.24not in excess of 30 days, to employers or payers required to give the statements to their
246.25employees or payees under this subdivision.
246.26    (d) A duplicate of any statement made under this subdivision and in accordance with
246.27rules prescribed by the commissioner, along with a reconciliation in the form the
246.28commissioner prescribes of the statements for the calendar year, including a reconciliation
246.29of the quarterly returns required to be filed under subdivision 1, must be filed with the
246.30commissioner on or before February 28 January 31 of the year after the payments were
246.31made.
246.32    (e) If an employer cancels the employer's Minnesota withholding account number required
246.33by section 290.92, subdivision 24, the information required by paragraph (d), must be filed
247.1with the commissioner within 30 days of the end of the quarter in which the employer
247.2cancels its account number.
247.3    (f) The employer must submit the statements required to be sent to the commissioner in
247.4the same manner required to satisfy the federal reporting requirements of section 6011(e)
247.5of the Internal Revenue Code and the regulations issued under it. An employer must submit
247.6statements to the commissioner required by this section by electronic means if the employer
247.7is required to send more than 25 statements to the commissioner, even though the employer
247.8is not required to submit the returns federally by electronic means. For statements issued
247.9for wages paid in 2011 and after, the threshold is ten. All statements issued for withholding
247.10required under section 290.92 are aggregated for purposes of determining whether the
247.11electronic submission threshold is met. The commissioner shall prescribe the content, format,
247.12and manner of the statement pursuant to section 270C.30.
247.13    (g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph
247.14(a), clause (2), must submit the returns required by this subdivision and subdivision 1,
247.15paragraph (a), with the commissioner by electronic means.
247.16EFFECTIVE DATE.This section is effective for statements required to be sent to the
247.17commissioner after December 31, 2017, except that the date change in paragraph (d) is
247.18effective for wages paid after December 31, 2016.

247.19    Sec. 4. Minnesota Statutes 2016, section 289A.12, subdivision 14, is amended to read:
247.20    Subd. 14. Regulated investment companies; Reporting exempt interest and
247.21exempt-interest dividends. (a) A regulated investment company paying $10 or more in
247.22exempt-interest dividends to an individual who is a resident of Minnesota, or any person
247.23receiving $10 or more of exempt interest or exempt-interest dividends and paying as nominee
247.24to an individual who is a resident of Minnesota, must make a return indicating the amount
247.25of the exempt interest or exempt-interest dividends, the name, address, and Social Security
247.26number of the recipient, and any other information that the commissioner specifies. The
247.27return must be provided to the shareholder recipient by February 15 of the year following
247.28the year of the payment. The return provided to the shareholder recipient must include a
247.29clear statement, in the form prescribed by the commissioner, that the exempt interest or
247.30exempt-interest dividends must be included in the computation of Minnesota taxable income.
247.31By June 1 of each year, the regulated investment company payor must file a copy of the
247.32return with the commissioner.
247.33    (b) For purposes of this subdivision, the following definitions apply.
248.1    (1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section
248.2852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest
248.3dividends that are not required to be added to federal taxable income under section 290.0131,
248.4subdivision 2 , paragraph (b).
248.5    (2) "Regulated investment company" means regulated investment company as defined
248.6in section 851(a) of the Internal Revenue Code or a fund of the regulated investment company
248.7as defined in section 851(g) of the Internal Revenue Code.
248.8    (3) "Exempt interest" means income on obligations of any state other than Minnesota,
248.9or a political or governmental subdivision, municipality, or governmental agency or
248.10instrumentality of any state other than Minnesota, and exempt from federal income taxes
248.11under the Internal Revenue Code or any other federal statute.
248.12EFFECTIVE DATE.This section is effective for reports required to be filed after
248.13December 31, 2017.

248.14    Sec. 5. Minnesota Statutes 2016, section 289A.18, is amended by adding a subdivision to
248.15read:
248.16    Subd. 2a. Annual withholding returns; eligible employers. (a) An employer who
248.17deducts and withholds an amount required to be withheld by section 290.92 may file an
248.18annual return and make an annual payment of the amount required to be deducted and
248.19withheld for that calendar year if the employer has received a notification under paragraph
248.20(b). The ability to elect to file an annual return continues through the year following the
248.21year where an employer is required to deduct and withhold more than $500.
248.22(b) The commissioner is authorized to determine which employers are eligible to file
248.23an annual return and to notify employers who newly qualify to file an annual return because
248.24the amount an employer is required to deduct and withhold for that calendar year is $500
248.25or less based on the most recent period of four consecutive quarters for which the
248.26commissioner has compiled data on that employer's withholding tax for that period. At the
248.27time of notification, eligible employers may still decide to file returns and make deposits
248.28quarterly. An employer who decides to file returns and make deposits quarterly is required
248.29to make all returns and deposits required by this chapter and, notwithstanding paragraph
248.30(a), is subject to all applicable penalties for failing to do so.
248.31(c) If, at the end of any calendar month other than the last month of the calendar year,
248.32the aggregate amount of undeposited tax withheld by an employer who has elected to file
249.1an annual return exceeds $500, the employer must deposit the aggregate amount with the
249.2commissioner within 30 days of the end of the calendar month.
249.3(d) If an employer who has elected to file an annual return ceases to pay wages for which
249.4withholding is required, the employer must file a final return and deposit any undeposited
249.5tax within 30 days of the end of the calendar month following the month in which the
249.6employer ceased paying wages.
249.7(e) An employer not subject to paragraph (c) or (d) who elects to file an annual return
249.8must file the return and pay the tax not previously deposited before February 1 of the year
249.9following the year in which the tax was withheld.
249.10(f) A notification to an employer regarding eligibility to file an annual return under
249.11Minnesota Rules, part 8092.1400, is considered a notification under paragraph (a).
249.12EFFECTIVE DATE.This section is effective for taxable years beginning after December
249.1331, 2016.

249.14    Sec. 6. Minnesota Statutes 2016, section 289A.20, subdivision 2, is amended to read:
249.15    Subd. 2. Withholding from wages, entertainer withholding, withholding from
249.16payments to out-of-state contractors, and withholding by partnerships, small business
249.17corporations, trusts. (a) Except as provided in section 289A.18, subdivision 2a, a tax
249.18required to be deducted and withheld during the quarterly period must be paid on or before
249.19the last day of the month following the close of the quarterly period, unless an earlier time
249.20for payment is provided. A tax required to be deducted and withheld from compensation
249.21of an entertainer and from a payment to an out-of-state contractor must be paid on or before
249.22the date the return for such tax must be filed under section 289A.18, subdivision 2. Taxes
249.23required to be deducted and withheld by partnerships, S corporations, and trusts must be
249.24paid on a quarterly basis as estimated taxes under section 289A.25 for partnerships and
249.25trusts and under section 289A.26 for S corporations.
249.26(b) An employer who, during the previous quarter, withheld more than $1,500 of tax
249.27under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, must deposit tax
249.28withheld under those sections with the commissioner within the time allowed to deposit the
249.29employer's federal withheld employment taxes under Code of Federal Regulations, title 26,
249.30section 31.6302-1, as amended through December 31, 2001, without regard to the safe
249.31harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3). Taxpayers
249.32must submit a copy of their federal notice of deposit status to the commissioner upon request
249.33by the commissioner.
250.1(c) The commissioner may prescribe by rule other return periods or deposit requirements.
250.2In prescribing the reporting period, the commissioner may classify payors according to the
250.3amount of their tax liability and may adopt an appropriate reporting period for the class that
250.4the commissioner judges to be consistent with efficient tax collection. In no event will the
250.5duration of the reporting period be more than one year.
250.6(d) If less than the correct amount of tax is paid to the commissioner, proper adjustments
250.7with respect to both the tax and the amount to be deducted must be made, without interest,
250.8in the manner and at the times the commissioner prescribes. If the underpayment cannot be
250.9adjusted, the amount of the underpayment will be assessed and collected in the manner and
250.10at the times the commissioner prescribes.
250.11(e) If the aggregate amount of the tax withheld is $10,000 or more in a fiscal year ending
250.12June 30, the employer must remit each required deposit for wages paid in all subsequent
250.13calendar years by electronic means.
250.14(f) A third-party bulk filer as defined in section 290.92, subdivision 30, paragraph (a),
250.15clause (2), who remits withholding deposits must remit all deposits by electronic means as
250.16provided in paragraph (e), regardless of the aggregate amount of tax withheld during a fiscal
250.17year for all of the employers.
250.18EFFECTIVE DATE.This section is effective for taxable years beginning after December
250.1931, 2016.

250.20    Sec. 7. Minnesota Statutes 2016, section 289A.31, subdivision 1, is amended to read:
250.21    Subdivision 1. Individual income, fiduciary income, mining company, corporate
250.22franchise, and entertainment taxes. (a) Individual income, fiduciary income, mining
250.23company, and corporate franchise taxes, and interest and penalties, must be paid by the
250.24taxpayer upon whom the tax is imposed, except in the following cases:
250.25(1) The tax due from a decedent for that part of the taxable year in which the decedent
250.26died during which the decedent was alive and the taxes, interest, and penalty due for the
250.27prior years must be paid by the decedent's personal representative, if any. If there is no
250.28personal representative, the taxes, interest, and penalty must be paid by the transferees, as
250.29defined in section 270C.58, subdivision 3, to the extent they receive property from the
250.30decedent;
250.31(2) The tax due from an infant or other incompetent person must be paid by the person's
250.32guardian or other person authorized or permitted by law to act for the person;
251.1(3) The tax due from the estate of a decedent must be paid by the estate's personal
251.2representative;
251.3(4) The tax due from a trust, including those within the definition of a corporation, as
251.4defined in section 290.01, subdivision 4, must be paid by a trustee; and
251.5(5) The tax due from a taxpayer whose business or property is in charge of a receiver,
251.6trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge
251.7of the business or property so far as the tax is due to the income from the business or property.
251.8(b) Entertainment taxes are the joint and several liability of the entertainer and the
251.9entertainment entity. The payor is liable to the state for the payment of the tax required to
251.10be deducted and withheld under section 290.9201, subdivision 7, and is not liable to the
251.11entertainer for the amount of the payment.
251.12(c) The tax taxes imposed under section sections 289A.35 and 290.0922 on partnerships
251.13is are the joint and several liability of the partnership and the general partners.
251.14EFFECTIVE DATE.This section is effective the day following final enactment.

251.15    Sec. 8. Minnesota Statutes 2016, section 289A.35, is amended to read:
251.16289A.35 ASSESSMENTS ON RETURNS.
251.17(a) The commissioner may audit and adjust the taxpayer's computation of federal taxable
251.18income, items of federal tax preferences, or federal credit amounts to make them conform
251.19with the provisions of chapter 290 or section 298.01. If a return has been filed, the
251.20commissioner shall enter the liability reported on the return and may make any audit or
251.21investigation that is considered necessary.
251.22(b) Upon petition by a taxpayer, and when the commissioner determines that it is in the
251.23best interest of the state, the commissioner may allow S corporations and partnerships to
251.24receive orders of assessment issued under section 270C.33, subdivision 4, on behalf of their
251.25owners, and to pay liabilities shown on such orders. In such cases, the owners' liability must
251.26be calculated using the method provided in section 289A.08, subdivision 7, paragraph (b).
251.27(c) A taxpayer may petition the commissioner for the use of the method described in
251.28paragraph (b) after the taxpayer is notified that an audit has been initiated and before an
251.29order of assessment has been issued.
251.30(d) A determination of the commissioner under paragraph (b) to grant or deny the petition
251.31of a taxpayer cannot be appealed to the Tax Court or any other court.
252.1(b) (e) The commissioner may audit and adjust the taxpayer's computation of tax under
252.2chapter 291. In the case of a return filed pursuant to section 289A.10, the commissioner
252.3shall notify the estate no later than nine months after the filing date, as provided by section
252.4289A.38, subdivision 2 , whether the return is under examination or the return has been
252.5processed as filed.
252.6EFFECTIVE DATE.This section is effective the day following final enactment.

252.7    Sec. 9. Minnesota Statutes 2016, section 289A.60, subdivision 28, is amended to read:
252.8    Subd. 28. Preparer identification number. Any Minnesota individual income tax return
252.9or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision
252.1013, paragraph (f), shall bear the identification number the preparer is required to use federally
252.11under section 6109(a)(4) of the Internal Revenue Code. A tax refund or return preparer who
252.12prepares a Minnesota individual income tax return required by section 289A.08, subdivisions
252.131, 2, 3, and 7; or 289A.12, subdivision 3, or claim for refund and fails to include the required
252.14number on the return or claim is subject to a penalty of $50 for each failure.
252.15EFFECTIVE DATE.This section is effective for taxable years beginning after December
252.1631, 2016.

252.17    Sec. 10. Minnesota Statutes 2016, section 290.0672, subdivision 1, is amended to read:
252.18    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
252.19the meanings given.
252.20(b) "Long-term care insurance" means a policy that:
252.21(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding
252.22the 7.5 percent adjusted gross income test; or meets the requirements given in section 62A.46;
252.23or provides similar coverage issued under the laws of another jurisdiction; and
252.24(2) has a lifetime long-term care benefit limit of not less than $100,000; and
252.25(3) has been offered in compliance with the inflation protection requirements of section
252.2662S.23 .
252.27(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.
252.28(d) "Premiums deducted in determining federal taxable income" means the lesser of (1)
252.29long-term care insurance premiums that qualify as deductions under section 213 of the
252.30Internal Revenue Code; and (2) the total amount deductible for medical care under section
252.31213 of the Internal Revenue Code.
253.1EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
253.2after December 31, 2012.

253.3    Sec. 11. Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read:
253.4    Subd. 2. Definitions. For purposes of this section, the following terms have the meanings
253.5given.
253.6    (a) "Qualified research expenses" means (i) qualified research expenses and basic research
253.7payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does
253.8not include expenses incurred for qualified research or basic research conducted outside
253.9the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and
253.10(ii) contributions to a nonprofit corporation established and operated pursuant to the
253.11provisions of chapter 317A for the purpose of promoting the establishment and expansion
253.12of business in this state, provided the contributions are invested by the nonprofit corporation
253.13for the purpose of providing funds for small, technologically innovative enterprises in
253.14Minnesota during the early stages of their development.
253.15    (b) "Qualified research" means qualified research as defined in section 41(d) of the
253.16Internal Revenue Code, except that the term does not include qualified research conducted
253.17outside the state of Minnesota.
253.18    (c) "Base amount" means base amount as defined in section 41(c) of the Internal Revenue
253.19Code, except that the average annual gross receipts and aggregate gross receipts must be
253.20calculated using Minnesota sales or receipts under section 290.191 and the definitions
253.21contained in clauses paragraphs (a) and (b) shall apply.
253.22EFFECTIVE DATE.This section is effective the day following final enactment.

253.23    Sec. 12. Minnesota Statutes 2016, section 290.17, subdivision 2, is amended to read:
253.24    Subd. 2. Income not derived from conduct of a trade or business. The income of a
253.25taxpayer subject to the allocation rules that is not derived from the conduct of a trade or
253.26business must be assigned in accordance with paragraphs (a) to (f):
253.27    (a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in section
253.283401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to the extent
253.29that, the work of the employee is performed within it; all other income from such sources
253.30is treated as income from sources without this state.
253.31    Severance pay shall be considered income from labor or personal or professional services.
254.1    (2) In the case of an individual who is a nonresident of Minnesota and who is an athlete
254.2or entertainer, income from compensation for labor or personal services performed within
254.3this state shall be determined in the following manner:
254.4    (i) The amount of income to be assigned to Minnesota for an individual who is a
254.5nonresident salaried athletic team employee shall be determined by using a fraction in which
254.6the denominator contains the total number of days in which the individual is under a duty
254.7to perform for the employer, and the numerator is the total number of those days spent in
254.8Minnesota. For purposes of this paragraph, off-season training activities, unless conducted
254.9at the team's facilities as part of a team imposed program, are not included in the total number
254.10of duty days. Bonuses earned as a result of play during the regular season or for participation
254.11in championship, play-off, or all-star games must be allocated under the formula. Signing
254.12bonuses are not subject to allocation under the formula if they are not conditional on playing
254.13any games for the team, are payable separately from any other compensation, and are
254.14nonrefundable; and
254.15    (ii) The amount of income to be assigned to Minnesota for an individual who is a
254.16nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's
254.17athletic or entertainment performance in Minnesota shall be determined by assigning to this
254.18state all income from performances or athletic contests in this state.
254.19    (3) For purposes of this section, amounts received by a nonresident as "retirement income"
254.20as defined in section (b)(1) of the State Income Taxation of Pension Income Act, Public
254.21Law 104-95, are not considered income derived from carrying on a trade or business or
254.22from wages or other compensation for work an employee performed in Minnesota, and are
254.23not taxable under this chapter.
254.24    (b) Income or gains from tangible property located in this state that is not employed in
254.25the business of the recipient of the income or gains must be assigned to this state.
254.26    (c) Income or gains from intangible personal property not employed in the business of
254.27the recipient of the income or gains must be assigned to this state if the recipient of the
254.28income or gains is a resident of this state or is a resident trust or estate.
254.29    Gain on the sale of a partnership interest is allocable to this state in the ratio of the
254.30original cost of partnership tangible property in this state to the original cost of partnership
254.31tangible property everywhere, determined at the time of the sale. If more than 50 percent
254.32of the value of the partnership's assets consists of intangibles, gain or loss from the sale of
254.33the partnership interest is allocated to this state in accordance with the sales factor of the
255.1partnership for its first full tax period immediately preceding the tax period of the partnership
255.2during which the partnership interest was sold.
255.3Gain on the sale of an interest in a single member limited liability company that is
255.4disregarded for federal income tax purposes is allocable to this state as if the single member
255.5limited liability company did not exist and the assets of the limited liability company are
255.6personally owned by the sole member.
255.7    Gain on the sale of goodwill or income from a covenant not to compete that is connected
255.8with a business operating all or partially in Minnesota is allocated to this state to the extent
255.9that the income from the business in the year preceding the year of sale was assignable
255.10allocable to Minnesota under subdivision 3.
255.11    When an employer pays an employee for a covenant not to compete, the income allocated
255.12to this state is in the ratio of the employee's service in Minnesota in the calendar year
255.13preceding leaving the employment of the employer over the total services performed by the
255.14employee for the employer in that year.
255.15    (d) Income from winnings on a bet made by an individual while in Minnesota is assigned
255.16to this state. In this paragraph, "bet" has the meaning given in section 609.75, subdivision
255.172 , as limited by section 609.75, subdivision 3, clauses (1), (2), and (3).
255.18    (e) All items of gross income not covered in paragraphs (a) to (d) and not part of the
255.19taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.
255.20    (f) For the purposes of this section, working as an employee shall not be considered to
255.21be conducting a trade or business.
255.22EFFECTIVE DATE.This section is effective the day following final enactment.

255.23    Sec. 13. Minnesota Statutes 2016, section 290.31, subdivision 1, is amended to read:
255.24    Subdivision 1. Partners, not partnership, subject to tax. Except as provided under
255.25section 289A.35, paragraph (b), a partnership as such shall not be subject to the income tax
255.26imposed by this chapter, but is subject to the tax imposed under section 290.0922. Persons
255.27carrying on business as partners shall be liable for income tax only in their separate or
255.28individual capacities.
255.29EFFECTIVE DATE.This section is effective the day following final enactment.

255.30    Sec. 14. Minnesota Statutes 2016, section 290A.19, is amended to read:
255.31290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.
256.1(a) The owner or managing agent of any property for which rent is paid for occupancy
256.2as a homestead must furnish a certificate of rent paid to a person who is a renter on December
256.331, in the form prescribed by the commissioner. If the renter moves before December 31,
256.4the owner or managing agent may give the certificate to the renter at the time of moving,
256.5or mail the certificate to the forwarding address if an address has been provided by the
256.6renter. The certificate must be made available to the renter before February 1 of the year
256.7following the year in which the rent was paid. The owner or managing agent must retain a
256.8duplicate of each certificate or an equivalent record showing the same information for a
256.9period of three years. The duplicate or other record must be made available to the
256.10commissioner upon request.
256.11(b) The commissioner may require the owner or managing agent, through a simple
256.12process, to furnish to the commissioner on or before March 1 a copy of each certificate of
256.13rent paid furnished to a renter for rent paid in the prior year, in the content, format, and
256.14manner prescribed by the commissioner pursuant to section 270C.30. Prior to implementation,
256.15the commissioner, after consulting with representatives of owners or managing agents, shall
256.16develop an implementation and administration plan for the requirements of this paragraph
256.17that attempts to minimize financial burdens, administration and compliance costs, and takes
256.18into consideration existing systems of owners and managing agents.
256.19(c) For the purposes of this section, "owner" includes a park owner as defined under
256.20section 327C.01, subdivision 6, and "property" includes a lot as defined under section
256.21327C.01, subdivision 3 .
256.22EFFECTIVE DATE.This section is effective for certificates of rent paid furnished to
256.23a renter for rent paid after December 31, 2016.

256.24    Sec. 15. Minnesota Statutes 2016, section 291.016, subdivision 2, is amended to read:
256.25    Subd. 2. Additions. The following amounts, to the extent deducted in computing or
256.26otherwise excluded from the federal taxable estate, must be added in computing the
256.27Minnesota taxable estate:
256.28(1) the amount of the deduction for state death taxes allowed under section 2058 of the
256.29Internal Revenue Code;
256.30(2) the amount of the deduction for foreign death taxes allowed under section 2053(d)
256.31of the Internal Revenue Code; and
256.32(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal
256.33Revenue Code, made by the decedent within three years of the date of death. For purposes
257.1of this clause, the amount of the addition equals the value of the gift under section 2512 of
257.2the Internal Revenue Code and excludes any value of the gift included in the federal estate.
257.3EFFECTIVE DATE.This section is effective retroactively for estates of decedents
257.4dying after June 30, 2013.

257.5    Sec. 16. Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read:
257.6    Subd. 3. Subtraction. The following amounts, to the extent included in computing the
257.7federal taxable estate, may be subtracted in computing the Minnesota taxable estate but
257.8must not reduce the Minnesota taxable estate to less than zero:
257.9(1) the value of property subject to an election under section 291.03, subdivision 1d;
257.10and
257.11(2) the value of qualified small business property under section 291.03, subdivision 9,
257.12and the value of qualified farm property under section 291.03, subdivision 10, or the result
257.13of $5,000,000 minus the amount for the year of death listed in clauses (1) to (5) items (i)
257.14to (v), whichever is less, may be subtracted in computing the Minnesota taxable estate but
257.15must not reduce the Minnesota taxable estate to less than zero:
257.16(1) (i) $1,200,000 for estates of decedents dying in 2014;
257.17(2) (ii) $1,400,000 for estates of decedents dying in 2015;
257.18(3) (iii) $1,600,000 for estates of decedents dying in 2016;
257.19(4) (iv) $1,800,000 for estates of decedents dying in 2017; and
257.20(5) (v) $2,000,000 for estates of decedents dying in 2018 and thereafter.
257.21EFFECTIVE DATE.This section is effective retroactively for estates of decedents
257.22dying after June 30, 2011.

257.23    Sec. 17. Minnesota Statutes 2016, section 291.03, subdivision 9, is amended to read:
257.24    Subd. 9. Qualified small business property. Property satisfying all of the following
257.25requirements is qualified small business property:
257.26(1) The value of the property was included in the federal adjusted taxable estate.
257.27(2) The property consists of the assets of a trade or business or shares of stock or other
257.28ownership interests in a corporation or other entity engaged in a trade or business. Shares
257.29of stock in a corporation or an ownership interest in another type of entity do not qualify
257.30under this subdivision if the shares or ownership interests are traded on a public stock
258.1exchange at any time during the three-year period ending on the decedent's date of death.
258.2For purposes of this subdivision, an ownership interest includes the interest the decedent is
258.3deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code.
258.4(3) During the taxable year that ended before the decedent's death, the trade or business
258.5must not have been a passive activity within the meaning of section 469(c) of the Internal
258.6Revenue Code, and the decedent or the decedent's spouse must have materially participated
258.7in the trade or business within the meaning of section 469(h) of the Internal Revenue Code,
258.8excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided
258.9by United States Treasury Department regulation that substitutes material participation in
258.10prior taxable years for material participation in the taxable year that ended before the
258.11decedent's death.
258.12(4) The gross annual sales of the trade or business were $10,000,000 or less for the last
258.13taxable year that ended before the date of the death of the decedent.
258.14(5) The property does not consist of include:
258.15(i) cash,;
258.16(ii) cash equivalents,;
258.17(iii) publicly traded securities,; or
258.18(iv) any assets not used in the operation of the trade or business.
258.19(6) For property consisting of shares of stock or other ownership interests in an entity,
258.20the value of cash, cash equivalents, publicly traded securities, or assets not used in the
258.21operation of the trade or business held by the corporation or other entity items described in
258.22clause (5) must be deducted from the value of the property qualifying under this subdivision
258.23in proportion to the decedent's share of ownership of the entity on the date of death excluded
258.24in the valuation of the decedent's interest in the entity.
258.25(6) (7) The decedent continuously owned the property, including property the decedent
258.26is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for
258.27the three-year period ending on the date of death of the decedent. In the case of a sole
258.28proprietor, if the property replaced similar property within the three-year period, the
258.29replacement property will be treated as having been owned for the three-year period ending
258.30on the date of death of the decedent.
258.31(7) (8) For three years following the date of death of the decedent, the trade or business
258.32is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code,
258.33and a family member materially participates in the operation of the trade or business within
259.1the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3)
259.2of the Internal Revenue Code and any other provision provided by United States Treasury
259.3Department regulation that substitutes material participation in prior taxable years for
259.4material participation in the three years following the date of death of the decedent.
259.5(8) (9) The estate and the qualified heir elect to treat the property as qualified small
259.6business property and agree, in the form prescribed by the commissioner, to pay the recapture
259.7tax under subdivision 11, if applicable.
259.8EFFECTIVE DATE.This section is effective retroactively for estates of decedents
259.9dying after June 30, 2011.

259.10    Sec. 18. Minnesota Statutes 2016, section 291.03, subdivision 11, is amended to read:
259.11    Subd. 11. Recapture tax. (a) If, within three years after the decedent's death and before
259.12the death of the qualified heir, the qualified heir disposes of any interest in the qualified
259.13property, other than by a disposition to a family member, or a family member ceases to
259.14satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional estate
259.15tax is imposed on the property. In the case of a sole proprietor, if the qualified heir replaces
259.16qualified small business property excluded under subdivision 9 with similar property, then
259.17the qualified heir will not be treated as having disposed of an interest in the qualified property.
259.18(b) The amount of the additional tax equals the amount of the exclusion claimed by the
259.19estate under subdivision 8, paragraph (d), multiplied by 16 percent.
259.20(c) The additional tax under this subdivision is due on the day which is six months after
259.21the date of the disposition or cessation in paragraph (a).
259.22(d) This subdivision shall not apply as a result of any of the following:
259.23(1) a portion of qualified farm property consisting of less than one-fifth of the acreage
259.24of the property is reclassified as class 2b property under section 273.13, subdivision 23, and
259.25the qualified heir has not substantially altered the reclassified property during the three-year
259.26holding period; or
259.27(2) a portion of qualified farm property classified as 2a property at the death of the
259.28decedent pursuant to section 273.13, subdivision 23, paragraph (a), consisting of a residence,
259.29garage, and immediately surrounding one acre of land is reclassified as 4bb property during
259.30the three-year holding period, and the qualified heir has not substantially altered the property.
259.31EFFECTIVE DATE.This section is effective retroactively for estates of decedents
259.32dying after June 30, 2011.

260.1    Sec. 19. REPEALER.
260.2(a) Minnesota Rules, part 8092.1400, is repealed.
260.3(b) Minnesota Rules, part 8092.2000, is repealed.
260.4EFFECTIVE DATE.Paragraph (a) is effective for taxable years beginning after
260.5December 31, 2016, except that notifications from the Department of Revenue to employers
260.6regarding eligibility to file an annual return for taxes withheld in calendar year 2017 remain
260.7in force. Paragraph (b) is effective the day following final enactment.


260.11    Section 1. Minnesota Statutes 2016, section 69.021, subdivision 5, is amended to read:
260.12    Subd. 5. Calculation of state aid. (a) The amount of fire state aid available for
260.13apportionment, before the addition of the minimum fire state aid allocation amount under
260.14subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state upon
260.15the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the
260.16commissioner by insurers on the Minnesota Firetown Premium Report. This amount must
260.17be reduced by the amount required to pay the state auditor's costs and expenses of the audits
260.18or exams of the firefighters relief associations.
260.19The total amount for apportionment in respect to fire state aid must not be less than two
260.20percent of the premiums reported to the commissioner by insurers on the Minnesota Firetown
260.21Premium Report after subtracting the following amounts:
260.22(1) the amount required to pay the state auditor's costs and expenses of the audits or
260.23exams of the firefighters relief associations; and
260.24(2) one percent of the premiums reported by town and farmers' township mutual insurance
260.25companies and mutual property and casualty companies with total assets of $5,000,000 or
260.26less.
260.27(b) The total amount for apportionment as police state aid is equal to 104 percent of the
260.28amount of premium taxes paid to the state on the premiums reported to the commissioner
260.29by insurers on the Minnesota Aid to Police Premium Report. The total amount for
260.30apportionment in respect to the police state aid program must not be less than two percent
260.31of the amount of premiums reported to the commissioner by insurers on the Minnesota Aid
260.32to Police Premium Report.
261.1(c) The commissioner shall calculate the percentage of increase or decrease reflected in
261.2the apportionment over or under the previous year's available state aid using the same
261.3premiums as a basis for comparison.
261.4(d) In addition to the amount for apportionment of police state aid under paragraph (b),
261.5each year $100,000 must be apportioned for police state aid. An amount sufficient to pay
261.6this increase is annually appropriated from the general fund.
261.7EFFECTIVE DATE.This section is effective the day following final enactment.

261.8    Sec. 2. Minnesota Statutes 2016, section 289A.38, subdivision 6, is amended to read:
261.9    Subd. 6. Omission in excess of 25 percent. Additional taxes may be assessed within
261.106-1/2 years after the due date of the return or the date the return was filed, whichever is
261.11later, if:
261.12(1) the taxpayer omits from gross income an amount properly includable in it that is in
261.13excess of 25 percent of the amount of gross income stated in the return;
261.14(2) the taxpayer omits from a sales, use, or withholding tax return, or a return for a tax
261.15imposed under section 295.52, an amount of taxes in excess of 25 percent of the taxes
261.16reported in the return; or
261.17(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the gross
261.18estate reported in the return.
261.19EFFECTIVE DATE.This section is effective the day following final enactment.

261.20    Sec. 3. Minnesota Statutes 2016, section 290.0922, subdivision 2, is amended to read:
261.21    Subd. 2. Exemptions. The following entities are exempt from the tax imposed by this
261.22section:
261.23(1) corporations exempt from tax under section 290.05;
261.24(2) real estate investment trusts;
261.25(3) regulated investment companies or a fund thereof; and
261.26(4) entities having a valid election in effect under section 860D(b) of the Internal Revenue
261.27Code;
261.28(5) town and farmers' township mutual insurance companies;
262.1(6) cooperatives organized under chapter 308A or 308B that provide housing exclusively
262.2to persons age 55 and over and are classified as homesteads under section 273.124,
262.3subdivision 3 ; and
262.4(7) a qualified business as defined under section 469.310, subdivision 11, if for the
262.5taxable year all of its property is located in a job opportunity building zone designated under
262.6section 469.314 and all of its payroll is a job opportunity building zone payroll under section
262.7469.310 .
262.8Entities not specifically exempted by this subdivision are subject to tax under this section,
262.9notwithstanding section 290.05.
262.10EFFECTIVE DATE.This section is effective the day following final enactment.

262.11    Sec. 4. Minnesota Statutes 2016, section 295.54, subdivision 2, is amended to read:
262.12    Subd. 2. Pharmacy refund. A pharmacy may claim an annual refund against the total
262.13amount of tax, if any, the pharmacy owes during that calendar year under section 295.52,
262.14subdivision 4. The refund shall equal the amount paid by the pharmacy to a wholesale drug
262.15distributor subject to tax under section 295.52, subdivision 3, for legend drugs delivered by
262.16the pharmacy outside of Minnesota, multiplied by the tax percentage specified in section
262.17295.52 , subdivision 3. If the amount of the refund exceeds the tax liability of the pharmacy
262.18under section 295.52, subdivision 4, the commissioner shall provide the pharmacy with a
262.19refund equal to the excess amount. Each qualifying pharmacy must apply for the refund on
262.20the annual return as provided under section 295.55, subdivision 5 prescribed by the
262.21commissioner, on or before March 15 of the year following the calendar year the legend
262.22drugs were delivered outside Minnesota. The refund must be claimed within 18 months
262.23from the date the drugs were delivered outside of Minnesota shall not be allowed if the
262.24initial claim for refund is filed more than one year after the original due date of the return.
262.25Interest on refunds paid under this subdivision will begin to accrue 60 days after the date a
262.26claim for refund is filed. For purposes of this subdivision, the date a claim is filed is the due
262.27date of the return if a return is due or the date of the actual claim for refund, whichever is
262.28later.
262.29EFFECTIVE DATE.This section is effective for qualifying legend drugs delivered
262.30outside Minnesota after December 31, 2017.

263.1    Sec. 5. Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to
263.2read:
263.3    Subd. 9a. Bulk storage or bulk storage facility. "Bulk storage" or "bulk storage facility"
263.4means a single property, or contiguous or adjacent properties used for a common purpose
263.5and owned or operated by the same person, on or in which are located one or more stationary
263.6tanks that are used singularly or in combination for the storage or containment of more than
263.71,100 gallons of petroleum.
263.8EFFECTIVE DATE.This section is effective the day following final enactment.

263.9    Sec. 6. Minnesota Statutes 2016, section 296A.01, subdivision 33, is amended to read:
263.10    Subd. 33. Motor fuel. "Motor fuel" means a liquid or gaseous form of fuel, regardless
263.11of its composition or properties, used to propel a motor vehicle.
263.12EFFECTIVE DATE.This section is effective the day following final enactment.

263.13    Sec. 7. Minnesota Statutes 2016, section 296A.01, subdivision 42, is amended to read:
263.14    Subd. 42. Petroleum products. "Petroleum products" means all of the products defined
263.15in subdivisions 2, 7, 8, 8a, 8b, 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.
263.16EFFECTIVE DATE.This section is effective the day following final enactment.

263.17    Sec. 8. Minnesota Statutes 2016, section 296A.07, subdivision 1, is amended to read:
263.18    Subdivision 1. Tax imposed. There is imposed an excise tax on gasoline, gasoline
263.19blended with ethanol, and agricultural alcohol gasoline used in producing and generating
263.20power for propelling motor vehicles used on the public highways of this state. The tax is
263.21imposed on the first licensed distributor who received the product in Minnesota. For purposes
263.22of this section, gasoline is defined in section 296A.01, subdivisions 8b, 10, 18, 20, 23, 24,
263.2325, 32, and 34 . The tax is payable at the time and in the form and manner prescribed by the
263.24commissioner. The tax is payable at the rates specified in subdivision 3, subject to the
263.25exceptions and reductions specified in section 296A.17.
263.26EFFECTIVE DATE.This section is effective the day following final enactment.

263.27    Sec. 9. Minnesota Statutes 2016, section 297A.82, subdivision 4, is amended to read:
263.28    Subd. 4. Exemptions. (a) The following transactions are exempt from the tax imposed
263.29in this chapter to the extent provided.
264.1(b) The purchase or use of aircraft previously registered in Minnesota by a corporation
264.2or partnership is exempt if the transfer constitutes a transfer within the meaning of section
264.3351 or 721 of the Internal Revenue Code.
264.4(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer of
264.5an aircraft for which a commercial use permit has been issued pursuant to section 360.654
264.6is exempt, if the aircraft is resold while the permit is in effect.
264.7(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by airline
264.8companies, as defined in section 270.071, subdivision 4, is exempt. For purposes of this
264.9subdivision, "air flight equipment" includes airplanes and parts necessary for the repair and
264.10maintenance of such air flight equipment, and flight simulators, but does not include airplanes
264.11aircraft with a gross maximum takeoff weight of less than 30,000 pounds that are used on
264.12intermittent or irregularly timed flights.
264.13(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined in
264.14section 360.511 and approved by the Federal Aviation Administration, and which the seller
264.15delivers to a purchaser outside Minnesota or which, without intermediate use, is shipped or
264.16transported outside Minnesota by the purchaser are exempt, but only if the purchaser is not
264.17a resident of Minnesota and provided that the aircraft is not thereafter returned to a point
264.18within Minnesota, except in the course of interstate commerce or isolated and occasional
264.19use, and will be registered in another state or country upon its removal from Minnesota.
264.20This exemption applies even if the purchaser takes possession of the aircraft in Minnesota
264.21and uses the aircraft in the state exclusively for training purposes for a period not to exceed
264.22ten days prior to removing the aircraft from this state.
264.23(f) The sale or purchase of the following items that relate to aircraft operated under
264.24Federal Aviation Regulations, Parts 91 and 135, and associated installation charges:
264.25equipment and parts necessary for repair and maintenance of aircraft; and equipment and
264.26parts to upgrade and improve aircraft.
264.27EFFECTIVE DATE.This section is effective for sales and purchases made after
264.28December 31, 2017.

264.29    Sec. 10. Minnesota Statutes 2016, section 297A.82, subdivision 4a, is amended to read:
264.30    Subd. 4a. Deposit in state airports fund. Tax revenue, including interest and penalties,
264.31collected from the sale or purchase of an aircraft taxable under this chapter must be deposited
264.32in the state airports fund established in section 360.017. For purposes of this subdivision,
264.33"revenue" does not include the revenue, including interest and penalties, generated by the
265.1sales tax imposed under section 297A.62, subdivision 1a, which must be deposited as
265.2provided under article XI, section 15, of the Minnesota Constitution.
265.3EFFECTIVE DATE.This section is effective the day following final enactment.

265.4    Sec. 11. Minnesota Statutes 2016, section 297E.02, subdivision 7, is amended to read:
265.5    Subd. 7. Untaxed gambling product. (a) In addition to penalties or criminal sanctions
265.6imposed by this chapter, a person, organization, or business entity possessing or selling a
265.7pull-tab, electronic pull-tab game, raffle board, or tipboard upon which the tax imposed by
265.8this chapter has not been paid is liable for a tax of six percent of the ideal gross of each
265.9pull-tab, electronic pull-tab game, raffle board, or tipboard. The tax on a partial deal must
265.10be assessed as if it were a full deal.
265.11(b) In addition to penalties and criminal sanctions imposed by this chapter, a person (1)
265.12not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, raffles,
265.13or paddlewheel games, or (2) who conducts gambling prohibited under sections 609.75 to
265.14609.763, other than activities subject to tax under section 297E.03, is liable for a tax of six
265.15percent of the gross receipts from that activity.
265.16(c) The tax must may be assessed by the commissioner. An assessment must be considered
265.17a jeopardy assessment or jeopardy collection as provided in section 270C.36. The
265.18commissioner shall assess the tax based on personal knowledge or information available to
265.19the commissioner. The commissioner shall mail to the taxpayer at the taxpayer's last known
265.20address, or serve in person, a written notice of the amount of tax, demand its immediate
265.21payment, and, if payment is not immediately made, collect the tax by any method described
265.22in chapter 270C, except that the commissioner need not await the expiration of the times
265.23specified in chapter 270C. The tax assessed by the commissioner is presumed to be valid
265.24and correctly determined and assessed. The burden is upon the taxpayer to show its
265.25incorrectness or invalidity. The tax imposed under this subdivision does not apply to gambling
265.26that is exempt from taxation under subdivision 2.
265.27(d) A person, organization, or business entity conducting gambling activity under this
265.28subdivision must file monthly tax returns with the commissioner, in the form required by
265.29the commissioner. The returns must be filed on or before the 20th day of the month following
265.30the month in which the gambling activity occurred. The tax imposed by this section is due
265.31and payable at the time when the returns are required to be filed.
265.32(e) Notwithstanding any law to the contrary, neither the commissioner nor a public
265.33employee may reveal facts contained in a tax return filed with the commissioner of revenue
266.1as required by this subdivision, nor can any information contained in the report or return
266.2be used against the tax obligor in any criminal proceeding, unless independently obtained,
266.3except in connection with a proceeding involving taxes due under this section, or as provided
266.4in section 270C.055, subdivision 1. However, this paragraph does not prohibit the
266.5commissioner from publishing statistics that do not disclose the identity of tax obligors or
266.6the contents of particular returns or reports. Any person violating this paragraph is guilty
266.7of a gross misdemeanor.
266.8EFFECTIVE DATE.This section is effective for games played or purchased after June
266.930, 2017.

266.10    Sec. 12. Minnesota Statutes 2016, section 297H.06, subdivision 2, is amended to read:
266.11    Subd. 2. Materials. The tax is not imposed upon charges to generators of mixed municipal
266.12solid waste or upon the volume of nonmixed municipal solid waste for waste management
266.13services to manage the following materials:
266.14(1) mixed municipal solid waste and nonmixed municipal solid waste generated outside
266.15of Minnesota;
266.16(2) recyclable materials that are separated for recycling by the generator, collected
266.17separately from other waste, and recycled, to the extent the price of the service for handling
266.18recyclable material is separately itemized on a bill to the generator;
266.19(3) recyclable nonmixed municipal solid waste that is separated for recycling by the
266.20generator, collected separately from other waste, delivered to a waste facility for the purpose
266.21of recycling, and recycled;
266.22(4) industrial waste, when it is transported to a facility owned and operated by the same
266.23person that generated it;
266.24(5) mixed municipal solid waste from a recycling facility that separates or processes
266.25recyclable materials and reduces the volume of the waste by at least 85 percent, provided
266.26that the exempted waste is managed separately from other waste;
266.27(6) recyclable materials that are separated from mixed municipal solid waste by the
266.28generator, collected and delivered to a waste facility that recycles at least 85 percent of its
266.29waste, and are collected with mixed municipal solid waste that is segregated in leakproof
266.30bags, provided that the mixed municipal solid waste does not exceed five percent of the
266.31total weight of the materials delivered to the facility and is ultimately delivered to a waste
266.32facility identified as a preferred waste management facility in county solid waste plans
266.33under section 115A.46;
267.1(7) source-separated compostable waste materials, if the waste is materials are delivered
267.2to a facility exempted as described in this clause. To initially qualify for an exemption, a
267.3facility must apply for an exemption in its application for a new or amended solid waste
267.4permit to the Pollution Control Agency. The first time a facility applies to the agency it
267.5must certify in its application that it will comply with the criteria in items (i) to (v) and the
267.6commissioner of the agency shall so certify to the commissioner of revenue who must grant
267.7the exemption. The facility must annually apply to the agency for certification to renew its
267.8exemption for the following year. The application must be filed according to the procedures
267.9of, and contain the information required by, the agency. The commissioner of revenue shall
267.10grant the exemption if the commissioner of the Pollution Control Agency finds and certifies
267.11to the commissioner of revenue that based on an evaluation of the composition of incoming
267.12waste and residuals and the quality and use of the product:
267.13(i) generators separate materials at the source;
267.14(ii) the separation is performed in a manner appropriate to the technology specific to the
267.15facility that:
267.16(A) maximizes the quality of the product;
267.17(B) minimizes the toxicity and quantity of residuals rejects; and
267.18(C) provides an opportunity for significant improvement in the environmental efficiency
267.19of the operation;
267.20(iii) the operator of the facility educates generators, in coordination with each county
267.21using the facility, about separating the waste to maximize the quality of the waste stream
267.22for technology specific to the facility;
267.23(iv) process residuals rejects do not exceed 15 percent of the weight of the total material
267.24delivered to the facility; and
267.25(v) the final product is accepted for use;
267.26(8) waste and waste by-products for which the tax has been paid; and
267.27(9) daily cover for landfills that has been approved in writing by the Minnesota Pollution
267.28Control Agency.
267.29EFFECTIVE DATE.This section is effective the day following final enactment.

268.1    Sec. 13. Minnesota Statutes 2016, section 297I.05, subdivision 2, is amended to read:
268.2    Subd. 2. Town and farmers' Township mutual insurance. A tax is imposed on town
268.3and farmers' township mutual insurance companies. The rate of tax is equal to one percent
268.4of gross premiums less return premiums on all direct business received by the insurer or
268.5agents of the insurer in Minnesota, in cash or otherwise, during the year.
268.6EFFECTIVE DATE.This section is effective the day following final enactment.

268.7    Sec. 14. Minnesota Statutes 2016, section 297I.10, subdivision 1, is amended to read:
268.8    Subdivision 1. Cities of the first class. (a) The commissioner shall order and direct a
268.9surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross
268.10premiums, less return premiums, on all direct business received by any licensed foreign or
268.11domestic fire insurance company on property in a city of the first class, or by its agents for
268.12it, in cash or otherwise.
268.13(b) By July 31 and December 31 of each year, the commissioner of management and
268.14budget shall pay to each city of the first class a warrant for an amount equal to the total
268.15amount of the surcharge on the premiums collected within that city since the previous
268.16payment.
268.17(c) The treasurer of the city shall place the money received under this subdivision in a
268.18special account or fund to defray all or a portion of the employer contribution requirement
268.19of public employees police and fire plan coverage for city firefighters.
268.20EFFECTIVE DATE.This section is effective the day following final enactment.

268.21    Sec. 15. Minnesota Statutes 2016, section 297I.10, subdivision 3, is amended to read:
268.22    Subd. 3. Appropriation. The amount necessary to make the payments required under
268.23this section is appropriated to the commissioner of management and budget from the general
268.24fund.
268.25EFFECTIVE DATE.This section is effective the day following final enactment.

268.26    Sec. 16. Minnesota Statutes 2016, section 298.01, subdivision 4c, is amended to read:
268.27    Subd. 4c. Special deductions; net operating loss. (a) For purposes of determining
268.28taxable income under subdivision 4, the provisions of sections 290.0133, subdivisions 7
268.29and 9, and 290.0134, subdivisions 7 and 9, are not used to determine taxable income.
269.1(b) The amount of net operating loss incurred in a taxable year beginning before January
269.21, 1990, that may be carried over to a taxable year beginning after December 31, 1989, is
269.3the amount of net operating loss carryover determined in the calculation of the hypothetical
269.4corporate franchise tax under Minnesota Statutes 1988, sections 298.40 and 298.402.
269.5EFFECTIVE DATE.This section is effective the day following final enactment.


269.9    Section 1. Minnesota Statutes 2016, section 13.51, subdivision 2, is amended to read:
269.10    Subd. 2. Income property assessment data. The following data collected by political
269.11subdivisions and the state from individuals or business entities concerning income properties
269.12are classified as private or nonpublic data pursuant to section 13.02, subdivisions 9 and 12:
269.13(a) detailed income and expense figures;
269.14(b) average vacancy factors;
269.15(c) verified net rentable areas or net usable areas, whichever is appropriate;
269.16(d) anticipated income and expenses;
269.17(e) projected vacancy factors; and
269.18(f) lease information.
269.19EFFECTIVE DATE.This section is effective the day following final enactment.

269.20    Sec. 2. Minnesota Statutes 2016, section 270.071, subdivision 2, is amended to read:
269.21    Subd. 2. Air commerce. (a) "Air commerce" means the transportation by aircraft of
269.22persons or property for hire in interstate, intrastate, or international transportation on regularly
269.23scheduled flights or on intermittent or irregularly timed flights by airline companies and
269.24includes transportation by any airline company making three or more flights in or out of
269.25Minnesota, or within Minnesota, during a calendar year.
269.26(b) "Air commerce" includes but is not limited to an intermittent or irregularly timed
269.27flight, a flight arranged at the convenience of an airline and the person contracting for the
269.28transportation, or a charter flight. It includes any airline company making three or more
269.29flights in or out of Minnesota during a calendar year.
270.1(c) "Air commerce" does not include casual transportation for hire by aircraft commonly
270.2owned and used for private air flight purposes if the person furnishing the transportation
270.3does not hold out to be engaged regularly in transportation for hire.
270.4EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

270.5    Sec. 3. Minnesota Statutes 2016, section 270.071, subdivision 7, is amended to read:
270.6    Subd. 7. Flight property. "Flight property" means all aircraft and flight equipment used
270.7in connection therewith, including spare flight equipment. Flight property also includes
270.8computers and computer software used in operating, controlling, or regulating aircraft and
270.9flight equipment. Flight property does not include aircraft with a maximum takeoff weight
270.10of less than 30,000 pounds.
270.11EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

270.12    Sec. 4. Minnesota Statutes 2016, section 270.071, subdivision 8, is amended to read:
270.13    Subd. 8. Person. "Person" means any an individual, corporation, firm, copartnership,
270.14company, or association, and includes any guardian, trustee, executor, administrator, receiver,
270.15conservator, or any person acting in any fiduciary capacity therefor trust, estate, fiduciary,
270.16partnership, company, corporation, limited liability company, association, governmental
270.17unit or agency, public or private organization of any kind, or other legal entity.
270.18EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

270.19    Sec. 5. Minnesota Statutes 2016, section 270.071, is amended by adding a subdivision to
270.20read:
270.21    Subd. 10. Intermittent or irregularly timed flights. "Intermittently or irregularly timed
270.22flights" means any flight in which the departure time, departure location, and arrival location
270.23are specifically negotiated with the customer or the customer's representative, including but
270.24not limited to charter flights.
270.25EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

270.26    Sec. 6. Minnesota Statutes 2016, section 270.072, subdivision 2, is amended to read:
270.27    Subd. 2. Assessment of flight property. Flight property that is owned by, or is leased,
270.28loaned, or otherwise made available to an airline company operating in Minnesota shall be
270.29assessed and appraised annually by the commissioner with reference to its value on January
270.302 of the assessment year in the manner prescribed by sections 270.071 to 270.079. Aircraft
271.1with a gross weight of less than 30,000 pounds and used on intermittent or irregularly timed
271.2flights shall be excluded from the provisions of sections 270.071 to 270.079.
271.3EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

271.4    Sec. 7. Minnesota Statutes 2016, section 270.072, subdivision 3, is amended to read:
271.5    Subd. 3. Report by airline company. (a) Each year, on or before July 1, every airline
271.6company engaged in air commerce in this state shall file with the commissioner a report
271.7under oath setting forth specifically the information prescribed by the commissioner to
271.8enable the commissioner to make the assessment required in sections 270.071 to 270.079,
271.9unless the commissioner determines that the airline company or person should be excluded
271.10from is exempt from filing because its activities do not constitute air commerce as defined
271.11herein.
271.12    (b) The commissioner shall prescribe the content, format, and manner of the report
271.13pursuant to section 270C.30, except that a "law administered by the commissioner" includes
271.14the property tax laws. If a report is made by electronic means, the taxpayer's signature is
271.15defined pursuant to section 270C.304, except that a "law administered by the commissioner"
271.16includes the property tax laws.
271.17EFFECTIVE DATE.The amendment to paragraph (a) is effective for reports filed in
271.182018 and thereafter. The amendment adding paragraph (b) is effective the day following
271.19final enactment.

271.20    Sec. 8. Minnesota Statutes 2016, section 270.072, is amended by adding a subdivision to
271.21read:
271.22    Subd. 3a. Commissioner filed reports. If an airline company fails to file a report required
271.23by subdivision 3, the commissioner may, from information in the commissioner's possession
271.24or obtainable by the commissioner, make and file a report for the airline company, or may
271.25issue a notice of net tax capacity and tax under section 270.075, subdivision 2.
271.26EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

271.27    Sec. 9. Minnesota Statutes 2016, section 270.12, is amended by adding a subdivision to
271.28read:
271.29    Subd. 6. Reassessment orders. If the State Board of Equalization determines that a
271.30considerable amount of property has been undervalued or overvalued compared to like
271.31property such that the assessment is grossly unfair or inequitable, the State Board of
272.1Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue orders
272.2to the county assessor to reassess all parcels or an identified set of parcels in a county.
272.3EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

272.4    Sec. 10. Minnesota Statutes 2016, section 270C.89, subdivision 1, is amended to read:
272.5    Subdivision 1. Initial report. Each county assessor shall file by April 1 with the
272.6commissioner a copy of the abstract that will be acted upon by the local and county boards
272.7of review. The abstract must list the real and personal property in the county itemized by
272.8assessment districts. The assessor of each county in the state shall file with the commissioner,
272.9within ten working days following final action of the local board of review or equalization
272.10and within five days following final action of the county board of equalization, any changes
272.11made by the local or county board. The information must be filed in the manner prescribed
272.12by the commissioner. It must be accompanied by a printed or typewritten copy of the
272.13proceedings of the appropriate board.
272.14EFFECTIVE DATE.This section is effective for local and county boards of appeal
272.15and equalization meetings held in 2017 and thereafter.

272.16    Sec. 11. Minnesota Statutes 2016, section 272.02, subdivision 9, is amended to read:
272.17    Subd. 9. Personal property; exceptions. Except for the taxable personal property
272.18enumerated below, all personal property and the property described in section 272.03,
272.19subdivision 1 , paragraphs (c) and (d), shall be exempt.
272.20The following personal property shall be taxable:
272.21(a) personal property which is part of (1) an electric generating, transmission, or
272.22distribution system or; (2) a pipeline system transporting or distributing water, gas, crude
272.23oil, or petroleum products; or (3) mains and pipes used in the distribution of steam or hot
272.24or chilled water for heating or cooling buildings and structures;
272.25(b) railroad docks and wharves which are part of the operating property of a railroad
272.26company as defined in section 270.80;
272.27(c) personal property defined in section 272.03, subdivision 2, clause (3);
272.28(d) leasehold or other personal property interests which are taxed pursuant to section
272.29272.01, subdivision 2 ; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law
272.30providing the property is taxable as if the lessee or user were the fee owner;
273.1(e) manufactured homes and sectional structures, including storage sheds, decks, and
273.2similar removable improvements constructed on the site of a manufactured home, sectional
273.3structure, park trailer or travel trailer as provided in section 273.125, subdivision 8, paragraph
273.4(f); and
273.5(f) flight property as defined in section 270.071.
273.6EFFECTIVE DATE.This section is effective the day following final enactment.

273.7    Sec. 12. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read:
273.8    Subd. 2. Definitions. (a) For the purposes of this section, the term:
273.9(1) "wind energy conversion system" has the meaning given in section 216C.06,
273.10subdivision 19, and also includes a substation that is used and owned by one or more wind
273.11energy conversion facilities;
273.12(2) "large scale wind energy conversion system" means a wind energy conversion system
273.13of more than 12 megawatts, as measured by the nameplate capacity of the system or as
273.14combined with other systems as provided in paragraph (b);
273.15(3) "medium scale wind energy conversion system" means a wind energy conversion
273.16system of over two and not more than 12 megawatts, as measured by the nameplate capacity
273.17of the system or as combined with other systems as provided in paragraph (b); and
273.18(4) "small scale wind energy conversion system" means a wind energy conversion system
273.19of two megawatts and under, as measured by the nameplate capacity of the system or as
273.20combined with other systems as provided in paragraph (b).
273.21(b) For systems installed and contracted for after January 1, 2002, the total size of a
273.22wind energy conversion system under this subdivision shall be determined according to this
273.23paragraph. Unless the systems are interconnected with different distribution systems, the
273.24nameplate capacity of one wind energy conversion system shall be combined with the
273.25nameplate capacity of any other wind energy conversion system that is:
273.26(1) located within five miles of the wind energy conversion system;
273.27(2) constructed within the same calendar year 12-month period as the wind energy
273.28conversion system; and
273.29(3) under common ownership.
273.30In the case of a dispute, the commissioner of commerce shall determine the total size of
273.31the system, and shall draw all reasonable inferences in favor of combining the systems.
274.1(c) In making a determination under paragraph (b), the commissioner of commerce may
274.2determine that two wind energy conversion systems are under common ownership when
274.3the underlying ownership structure contains similar persons or entities, even if the ownership
274.4shares differ between the two systems. Wind energy conversion systems are not under
274.5common ownership solely because the same person or entity provided equity financing for
274.6the systems.
274.7EFFECTIVE DATE.This section is effective for reports filed in 2018 and thereafter.

274.8    Sec. 13. Minnesota Statutes 2016, section 272.029, is amended by adding a subdivision
274.9to read:
274.10    Subd. 8. Extension. The commissioner may, for good cause, extend the time for filing
274.11the report required by subdivision 4. The extension must not exceed 15 days.
274.12EFFECTIVE DATE.This section is effective for reports filed in 2018 and thereafter.

274.13    Sec. 14. Minnesota Statutes 2016, section 273.061, subdivision 7, is amended to read:
274.14    Subd. 7. Division of duties between local and county assessor. The duty of the duly
274.15appointed local assessor shall be to view and appraise the value of all property as provided
274.16by law, but all the book work shall be done by the county assessor, or the assessor's assistants,
274.17and the value of all property subject to assessment and taxation shall be determined by the
274.18county assessor, except as otherwise hereinafter provided. If directed by the county assessor,
274.19the local assessor shall must perform the duties enumerated in subdivision 8, clause (16),
274.20and must enter construction and valuation data into the records in the manner prescribed
274.21by the county assessor.
274.22EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

274.23    Sec. 15. Minnesota Statutes 2016, section 273.08, is amended to read:
274.24273.08 ASSESSOR'S DUTIES.
274.25The assessor shall actually view, and determine the market value of each tract or lot of
274.26real property listed for taxation, including the value of all improvements and structures
274.27thereon, at maximum intervals of five years and shall enter the value opposite each
274.28description. When directed by the county assessor, local assessors must enter construction
274.29and valuation data into the records in the manner prescribed by the county assessor.
274.30EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

275.1    Sec. 16. Minnesota Statutes 2016, section 273.121, is amended by adding a subdivision
275.2to read:
275.3    Subd. 3. Compliance. A county assessor, or a city assessor having the powers of a
275.4county assessor, who does not comply with the timely notice requirement under subdivision
275.51 must:
275.6(1) mail an additional valuation notice to each person who was not provided timely
275.7notice; and
275.8(2) convene a supplemental local board of appeal and equalization or local review session
275.9no sooner than ten days after sending the additional notices required by clause (1).
275.10EFFECTIVE DATE.This section is effective for valuation notices sent in 2018 and
275.11thereafter.

275.12    Sec. 17. Minnesota Statutes 2016, section 273.13, subdivision 22, is amended to read:
275.13    Subd. 22. Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and
275.14(c), real estate which is residential and used for homestead purposes is class 1a. In the case
275.15of a duplex or triplex in which one of the units is used for homestead purposes, the entire
275.16property is deemed to be used for homestead purposes. The market value of class 1a property
275.17must be determined based upon the value of the house, garage, and land.
275.18    The first $500,000 of market value of class 1a property has a net classification rate of
275.19one percent of its market value; and the market value of class 1a property that exceeds
275.20$500,000 has a classification rate of 1.25 percent of its market value.
275.21    (b) Class 1b property includes homestead real estate or homestead manufactured homes
275.22used for the purposes of a homestead by:
275.23    (1) any person who is blind as defined in section 256D.35, or the blind person and the
275.24blind person's spouse;
275.25    (2) any person who is permanently and totally disabled or by the disabled person and
275.26the disabled person's spouse; or
275.27    (3) the surviving spouse of a permanently and totally disabled veteran homesteading a
275.28property classified under this paragraph for taxes payable in 2008.
275.29    Property is classified and assessed under clause (2) only if the government agency or
275.30income-providing source certifies, upon the request of the homestead occupant, that the
275.31homestead occupant satisfies the disability requirements of this paragraph, and that the
275.32property is not eligible for the valuation exclusion under subdivision 34.
276.1    Property is classified and assessed under paragraph (b) only if the commissioner of
276.2revenue or the county assessor certifies that the homestead occupant satisfies the requirements
276.3of this paragraph.
276.4    Permanently and totally disabled for the purpose of this subdivision means a condition
276.5which is permanent in nature and totally incapacitates the person from working at an
276.6occupation which brings the person an income. The first $50,000 market value of class 1b
276.7property has a net classification rate of .45 percent of its market value. The remaining market
276.8value of class 1b property has a classification rate using the rates for is classified as class
276.91a or class 2a property, whichever is appropriate, of similar market value.
276.10    (c) Class 1c property is commercial use real and personal property that abuts public
276.11water as defined in section 103G.005, subdivision 15, and is devoted to temporary and
276.12seasonal residential occupancy for recreational purposes but not devoted to commercial
276.13purposes for more than 250 days in the year preceding the year of assessment, and that
276.14includes a portion used as a homestead by the owner, which includes a dwelling occupied
276.15as a homestead by a shareholder of a corporation that owns the resort, a partner in a
276.16partnership that owns the resort, or a member of a limited liability company that owns the
276.17resort even if the title to the homestead is held by the corporation, partnership, or limited
276.18liability company. For purposes of this paragraph, property is devoted to a commercial
276.19purpose on a specific day if any portion of the property, excluding the portion used
276.20exclusively as a homestead, is used for residential occupancy and a fee is charged for
276.21residential occupancy. Class 1c property must contain three or more rental units. A "rental
276.22unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping
276.23site equipped with water and electrical hookups for recreational vehicles. Class 1c property
276.24must provide recreational activities such as the rental of ice fishing houses, boats and motors,
276.25snowmobiles, downhill or cross-country ski equipment; provide marina services, launch
276.26services, or guide services; or sell bait and fishing tackle. Any unit in which the right to use
276.27the property is transferred to an individual or entity by deeded interest, or the sale of shares
276.28or stock, no longer qualifies for class 1c even though it may remain available for rent. A
276.29camping pad offered for rent by a property that otherwise qualifies for class 1c is also class
276.301c, regardless of the term of the rental agreement, as long as the use of the camping pad
276.31does not exceed 250 days. If the same owner owns two separate parcels that are located in
276.32the same township, and one of those properties is classified as a class 1c property and the
276.33other would be eligible to be classified as a class 1c property if it was used as the homestead
276.34of the owner, both properties will be assessed as a single class 1c property; for purposes of
276.35this sentence, properties are deemed to be owned by the same owner if each of them is
277.1owned by a limited liability company, and both limited liability companies have the same
277.2membership. The portion of the property used as a homestead is class 1a property under
277.3paragraph (a). The remainder of the property is classified as follows: the first $600,000 of
277.4market value is tier I, the next $1,700,000 of market value is tier II, and any remaining
277.5market value is tier III. The classification rates for class 1c are: tier I, 0.50 percent; tier II,
277.61.0 percent; and tier III, 1.25 percent. Owners of real and personal property devoted to
277.7temporary and seasonal residential occupancy for recreation purposes in which all or a
277.8portion of the property was devoted to commercial purposes for not more than 250 days in
277.9the year preceding the year of assessment desiring classification as class 1c, must submit a
277.10declaration to the assessor designating the cabins or units occupied for 250 days or less in
277.11the year preceding the year of assessment by January 15 of the assessment year. Those
277.12cabins or units and a proportionate share of the land on which they are located must be
277.13designated as class 1c as otherwise provided. The remainder of the cabins or units and a
277.14proportionate share of the land on which they are located must be designated as class 3a
277.15commercial. The owner of property desiring designation as class 1c property must provide
277.16guest registers or other records demonstrating that the units for which class 1c designation
277.17is sought were not occupied for more than 250 days in the year preceding the assessment
277.18if so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop,
277.19(4) conference center or meeting room, and (5) other nonresidential facility operated on a
277.20commercial basis not directly related to temporary and seasonal residential occupancy for
277.21recreation purposes does not qualify for class 1c.
277.22    (d) Class 1d property includes structures that meet all of the following criteria:
277.23    (1) the structure is located on property that is classified as agricultural property under
277.24section 273.13, subdivision 23;
277.25    (2) the structure is occupied exclusively by seasonal farm workers during the time when
277.26they work on that farm, and the occupants are not charged rent for the privilege of occupying
277.27the property, provided that use of the structure for storage of farm equipment and produce
277.28does not disqualify the property from classification under this paragraph;
277.29    (3) the structure meets all applicable health and safety requirements for the appropriate
277.30season; and
277.31    (4) the structure is not salable as residential property because it does not comply with
277.32local ordinances relating to location in relation to streets or roads.
277.33    The market value of class 1d property has the same classification rates as class 1a property
277.34under paragraph (a).
278.1EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

278.2    Sec. 18. Minnesota Statutes 2016, section 273.33, subdivision 1, is amended to read:
278.3    Subdivision 1. Listing and assessment in county. The personal property of express,
278.4stage and transportation companies, and of pipeline companies engaged in the business of
278.5transporting natural gas, gasoline, crude oil, or other petroleum products, except as otherwise
278.6provided by law, shall be listed and assessed in the county, town or district where the same
278.7is usually kept.
278.8EFFECTIVE DATE.This section is effective the day following final enactment.

278.9    Sec. 19. Minnesota Statutes 2016, section 273.33, subdivision 2, is amended to read:
278.10    Subd. 2. Listing and assessment by commissioner. The personal property, consisting
278.11of the pipeline system of mains, pipes, and equipment attached thereto, of pipeline companies
278.12and others engaged in the operations or business of transporting natural gas, gasoline, crude
278.13oil, or other petroleum products by pipelines, shall be listed with and assessed by the
278.14commissioner of revenue and the values provided to the city or county assessor by order.
278.15This subdivision shall not apply to the assessment of the products transported through the
278.16pipelines nor to the lines of local commercial gas companies engaged primarily in the
278.17business of distributing gas products to consumers at retail nor to pipelines used by the
278.18owner thereof to supply natural gas or other petroleum products exclusively for such owner's
278.19own consumption and not for resale to others. If more than 85 percent of the natural gas or
278.20other petroleum products actually transported over the pipeline is used for the owner's own
278.21consumption and not for resale to others, then this subdivision shall not apply; provided,
278.22however, that in that event, the pipeline shall be assessed in proportion to the percentage
278.23of gas products actually transported over such pipeline that is not used for the owner's own
278.24consumption. On or before August 1, the commissioner shall certify to the auditor of each
278.25county, the amount of such personal property assessment against each company in each
278.26district in which such property is located. If the commissioner determines that the amount
278.27of personal property assessment certified on or before August 1 is in error, the commissioner
278.28may issue a corrected certification on or before October 1. The commissioner may correct
278.29errors that are merely clerical in nature until December 31.
278.30EFFECTIVE DATE.This section is effective the day following final enactment.

279.1    Sec. 20. Minnesota Statutes 2016, section 273.372, subdivision 2, is amended to read:
279.2    Subd. 2. Contents and filing of petition. (a) In all appeals to court that are required to
279.3be brought against the commissioner under this section, the petition initiating the appeal
279.4must be served on the commissioner and must be filed with the Tax Court in Ramsey County,
279.5as provided in paragraph (b) or (c).
279.6(b) If the appeal to court is from an order of the commissioner, it must be brought under
279.7chapter 271 and filed within the time period prescribed in section 271.06, subdivision 2,
279.8except that when the provisions of this section conflict with chapter 271 or 278, this section
279.9prevails. In addition, the petition must include all the parcels encompassed by that order
279.10which the petitioner claims have been partially, unfairly, or unequally assessed, assessed
279.11at a valuation greater than their real or actual value, misclassified, or are exempt. For this
279.12purpose, an order of the commissioner is either (1) a certification or notice of value by the
279.13commissioner for property described in subdivision 1, or (2) the final determination by the
279.14commissioner of either an administrative appeal conference or informal administrative
279.15appeal described in subdivision 4.
279.16(c) If the appeal is from the tax that results from implementation of the commissioner's
279.17order, certification, or recommendation, it must be brought under chapter 278, and the
279.18provisions in that chapter apply, except that service shall be on the commissioner only and
279.19not on the local officials specified in section 278.01, subdivision 1, and if any other provision
279.20of this section conflicts with chapter 278, this section prevails. In addition, the petition must
279.21include either all the utility parcels or all the railroad parcels in the state in which the
279.22petitioner claims an interest and which the petitioner claims have been partially, unfairly,
279.23or unequally assessed, assessed at a valuation greater than their real or actual value,
279.24misclassified, or are exempt.
279.25EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

279.26    Sec. 21. Minnesota Statutes 2016, section 273.372, subdivision 4, is amended to read:
279.27    Subd. 4. Administrative appeals. (a) Companies that submit the reports under section
279.28270.82 or 273.371 by the date specified in that section, or by the date specified by the
279.29commissioner in an extension, may appeal administratively to the commissioner prior to
279.30bringing an action in court.
279.31    (b) Companies that must submit reports under section 270.82 must submit file a written
279.32request to for an appeal with the commissioner for a conference within ten 30 days after
279.33the notice date of the commissioner's valuation certification or other notice to the company,
280.1or by June 15, whichever is earlier. For purposes of this section, "notice date" means the
280.2notice date of the valuation certification, commissioner's order, recommendation, or other
280.3notice.
280.4    (c) Companies that submit reports under section 273.371 must submit a written request
280.5to the commissioner for a conference within ten days after the date of the commissioner's
280.6valuation certification or notice to the company, or by July 1, whichever is earlier. The
280.7appeal need not be in any particular form but must contain the following information:
280.8    (1) name and address of the company;
280.9    (2) the date;
280.10    (3) its Minnesota identification number;
280.11    (4) the assessment year or period involved;
280.12    (5) the findings in the valuation that the company disputes;
280.13    (6) a summary statement specifying its reasons for disputing each item; and
280.14    (7) the signature of the company's duly authorized agent or representative.
280.15    (d) When requested in writing and within the time allowed for filing an administrative
280.16appeal, the commissioner may extend the time for filing an appeal for a period of not more
280.17than 15 days from the expiration of the time for filing the appeal.
280.18    (d) (e) The commissioner shall conduct the conference either in person or by telephone
280.19upon the commissioner's entire files and records and such further information as may be
280.20offered. The conference must be held no later than 20 days after the date of the
280.21commissioner's valuation certification or notice to the company, or by the date specified by
280.22the commissioner in an extension request for an appeal. Within 60 30 days after the
280.23conference the commissioner shall make a final determination of the matter and shall notify
280.24the company promptly of the determination. The conference is not a contested case hearing
280.25subject to chapter 14.
280.26    (e) In addition to the opportunity for a conference under paragraph (a), the commissioner
280.27shall also provide the railroad and utility companies the opportunity to discuss any questions
280.28or concerns relating to the values established by the commissioner through certification or
280.29notice in a less formal manner. This does not change or modify the deadline for requesting
280.30a conference under paragraph (a), the deadline in section 271.06 for appealing an order of
280.31the commissioner, or the deadline in section 278.01 for appealing property taxes in court.
280.32EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

281.1    Sec. 22. Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision
281.2to read:
281.3    Subd. 5. Agreement determining valuation. When it appears to be in the best interest
281.4of the state, the commissioner may settle any matter under consideration regarding an appeal
281.5filed under this section. The agreement must be in writing and signed by the commissioner
281.6and the company or the company's authorized representative. The agreement is final and
281.7conclusive, and except upon a showing of fraud, malfeasance, or misrepresentation of a
281.8material fact, the case may not be reopened as to the matters agreed upon.
281.9EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

281.10    Sec. 23. Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision
281.11to read:
281.12    Subd. 6. Dismissal of administrative appeal. If a taxpayer files an administrative appeal
281.13from an order of the commissioner and also files an appeal to the tax court for that same
281.14order of the commissioner, the administrative appeal is dismissed and the commissioner is
281.15no longer required to make the determination of appeal under subdivision 4.
281.16EFFECTIVE DATE.This section is effective beginning with assessment year 2017.

281.17    Sec. 24. [273.88] EQUALIZATION OF PUBLIC UTILITY STRUCTURES.
281.18After making the apportionment provided in Minnesota Rules, part 8100.0600, the
281.19commissioner must equalize the values of the operating structures to the level accepted by
281.20the State Board of Equalization if the appropriate sales ratio for each county, as conducted
281.21by the Department of Revenue pursuant to section 270.12, subdivision 2, clause (6), is
281.22outside the range accepted by the State Board of Equalization. The commissioner must not
281.23equalize the value of the operating structures if the sales ratio determined pursuant to this
281.24subdivision is within the range accepted by the State Board of Equalization.
281.25EFFECTIVE DATE.This section is effective beginning with assessment year 2017.

281.26    Sec. 25. Minnesota Statutes 2016, section 274.01, subdivision 1, is amended to read:
281.27    Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town board
281.28of a town, or the council or other governing body of a city, is the local board of appeal and
281.29equalization except (1) in cities whose charters provide for a board of equalization or (2)
281.30in any city or town that has transferred its local board of review power and duties to the
281.31county board as provided in subdivision 3. The county assessor shall fix a day and time
282.1when the board or the local board of equalization shall meet in the assessment districts of
282.2the county. Notwithstanding any law or city charter to the contrary, a city board of
282.3equalization shall be referred to as a local board of appeal and equalization. On or before
282.4February 15 of each year the assessor shall give written notice of the time to the city or
282.5town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings must
282.6be held between April 1 and May 31 each year. The clerk shall give published and posted
282.7notice of the meeting at least ten days before the date of the meeting.
282.8    The board shall meet either at a central location within the county or at the office of the
282.9clerk to review the assessment and classification of property in the town or city. No changes
282.10in valuation or classification which are intended to correct errors in judgment by the county
282.11assessor may be made by the county assessor after the board has adjourned in those cities
282.12or towns that hold a local board of review; however, corrections of errors that are merely
282.13clerical in nature or changes that extend homestead treatment to property are permitted after
282.14adjournment until the tax extension date for that assessment year. The changes must be fully
282.15documented and maintained in the assessor's office and must be available for review by any
282.16person. A copy of the changes made during this period in those cities or towns that hold a
282.17local board of review must be sent to the county board no later than December 31 of the
282.18assessment year.
282.19    (b) The board shall determine whether the taxable property in the town or city has been
282.20properly placed on the list and properly valued by the assessor. If real or personal property
282.21has been omitted, the board shall place it on the list with its market value, and correct the
282.22assessment so that each tract or lot of real property, and each article, parcel, or class of
282.23personal property, is entered on the assessment list at its market value. No assessment of
282.24the property of any person may be raised unless the person has been duly notified of the
282.25intent of the board to do so. On application of any person feeling aggrieved, the board shall
282.26review the assessment or classification, or both, and correct it as appears just. The board
282.27may not make an individual market value adjustment or classification change that would
282.28benefit the property if the owner or other person having control over the property has refused
282.29the assessor access to inspect the property and the interior of any buildings or structures as
282.30provided in section 273.20. A board member shall not participate in any actions of the board
282.31which result in market value adjustments or classification changes to property owned by
282.32the board member, the spouse, parent, stepparent, child, stepchild, grandparent, grandchild,
282.33brother, sister, uncle, aunt, nephew, or niece of a board member, or property in which a
282.34board member has a financial interest. The relationship may be by blood or marriage.
283.1    (c) A local board may reduce assessments upon petition of the taxpayer but the total
283.2reductions must not reduce the aggregate assessment made by the county assessor by more
283.3than one percent. If the total reductions would lower the aggregate assessments made by
283.4the county assessor by more than one percent, none of the adjustments may be made. The
283.5assessor shall correct any clerical errors or double assessments discovered by the board
283.6without regard to the one percent limitation.
283.7    (d) A local board does not have authority to grant an exemption or to order property
283.8removed from the tax rolls.
283.9    (e) A majority of the members may act at the meeting, and adjourn from day to day until
283.10they finish hearing the cases presented. The assessor shall attend and take part in the
283.11proceedings, but must not vote. The county assessor, or an assistant delegated by the county
283.12assessor shall attend the meetings. The board shall list separately all omitted property added
283.13to the list by the board and all items of property increased or decreased, with the market
283.14value of each item of property, added or changed by the board. The county assessor shall
283.15enter all changes made by the board.
283.16    (f) Except as provided in subdivision 3, if a person fails to appear in person, by counsel,
283.17or by written communication before the board after being duly notified of the board's intent
283.18to raise the assessment of the property, or if a person feeling aggrieved by an assessment
283.19or classification fails to apply for a review of the assessment or classification, the person
283.20may not appear before the county board of appeal and equalization for a review. This
283.21paragraph does not apply if an assessment was made after the local board meeting, as
283.22provided in section 273.01, or if the person can establish not having received notice of
283.23market value at least five days before the local board meeting.
283.24    (g) The local board must complete its work and adjourn within 20 days from the time
283.25of convening stated in the notice of the clerk, unless a longer period is approved by the
283.26commissioner of revenue. No action taken after that date is valid. All complaints about an
283.27assessment or classification made after the meeting of the board must be heard and
283.28determined by the county board of equalization. A nonresident may, at any time, before the
283.29meeting of the board file written objections to an assessment or classification with the county
283.30assessor. The objections must be presented to the board at its meeting by the county assessor
283.31for its consideration.
283.32EFFECTIVE DATE.This section is effective the day following final enactment.

284.1    Sec. 26. Minnesota Statutes 2016, section 274.13, subdivision 1, is amended to read:
284.2    Subdivision 1. Members; meetings; rules for equalizing assessments. The county
284.3commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be
284.4present, the deputy county auditor, or, if there is no deputy, the court administrator of the
284.5district court, shall form a board for the equalization of the assessment of the property of
284.6the county, including the property of all cities whose charters provide for a board of
284.7equalization. This board shall be referred to as the county board of appeal and equalization.
284.8The board shall meet annually, on the date specified in section 274.14, at the office of the
284.9auditor. Each member shall take an oath to fairly and impartially perform duties as a member.
284.10Members shall not participate in any actions of the board which result in market value
284.11adjustments or classification changes to property owned by the board member, the spouse,
284.12parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt,
284.13nephew, or niece of a board member, or property in which a board member has a financial
284.14interest. The relationship may be by blood or marriage. The board shall examine and compare
284.15the returns of the assessment of property of the towns or districts, and equalize them so that
284.16each tract or lot of real property and each article or class of personal property is entered on
284.17the assessment list at its market value, subject to the following rules:
284.18    (1) The board shall raise the valuation of each tract or lot of real property which in its
284.19opinion is returned below its market value to the sum believed to be its market value. The
284.20board must first give notice of intention to raise the valuation to the person in whose name
284.21it is assessed, if the person is a resident of the county. The notice must fix a time and place
284.22for a hearing.
284.23    (2) The board shall reduce the valuation of each tract or lot which in its opinion is returned
284.24above its market value to the sum believed to be its market value.
284.25    (3) The board shall raise the valuation of each class of personal property which in its
284.26opinion is returned below its market value to the sum believed to be its market value. It
284.27shall raise the aggregate value of the personal property of individuals, firms, or corporations,
284.28when it believes that the aggregate valuation, as returned, is less than the market value of
284.29the taxable personal property possessed by the individuals, firms, or corporations, to the
284.30sum it believes to be the market value. The board must first give notice to the persons of
284.31intention to do so. The notice must set a time and place for a hearing.
284.32    (4) The board shall reduce the valuation of each class of personal property that is returned
284.33above its market value to the sum it believes to be its market value. Upon complaint of a
284.34party aggrieved, the board shall reduce the aggregate valuation of the individual's personal
285.1property, or of any class of personal property for which the individual is assessed, which
285.2in its opinion has been assessed at too large a sum, to the sum it believes was the market
285.3value of the individual's personal property of that class.
285.4    (5) The board must not reduce the aggregate value of all the property of its county, as
285.5submitted to the county board of equalization, with the additions made by the auditor under
285.6this chapter, by more than one percent of its whole valuation. The board may raise the
285.7aggregate valuation of real property, and of each class of personal property, of the county,
285.8or of any town or district of the county, when it believes it is below the market value of the
285.9property, or class of property, to the aggregate amount it believes to be its market value.
285.10    (6) The board shall change the classification of any property which in its opinion is not
285.11properly classified.
285.12    (7) The board does not have the authority to grant an exemption or to order property
285.13removed from the tax rolls.
285.14    (8) The board may not make an individual market value adjustment or classification
285.15change that would benefit property if the owner or other person having control over the
285.16property has refused the assessor access to inspect the property and the interior of any
285.17buildings or structures as provided in section 273.20.
285.18EFFECTIVE DATE.This section is effective for county board of appeal and
285.19equalization meetings in 2018 and thereafter.

285.20    Sec. 27. Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read:
285.21    Subd. 3. Proof of compliance; transfer of duties. (a) Any county that conducts county
285.22boards of appeal and equalization meetings must provide proof to the commissioner by
285.23December 1, 2009, and each year thereafter, February 1 that it is in compliance with the
285.24requirements of subdivision 2. Beginning in 2009, This notice must also verify that there
285.25was a quorum of voting members at each meeting of the board of appeal and equalization
285.26in the current previous year. A county that does not comply with these requirements is
285.27deemed to have transferred its board of appeal and equalization powers to the special board
285.28of equalization appointed pursuant to section 274.13, subdivision 2, beginning with the
285.29following year's assessment and continuing unless the powers are reinstated under paragraph
285.30(c). A county that does not comply with the requirements of subdivision 2 and has not
285.31appointed a special board of equalization shall appoint a special board of equalization before
285.32the following year's assessment.
286.1    (b) The county shall notify the taxpayers when the board of appeal and equalization for
286.2a county has been transferred to the special board of equalization under this subdivision
286.3and, prior to the meeting time of the special board of equalization, the county shall make
286.4available to those taxpayers a procedure for a review of the assessments, including, but not
286.5limited to, open book meetings. This alternate review process must take place in April and
286.6May.
286.7    (c) A county board whose powers are transferred to the special board of equalization
286.8under this subdivision may be reinstated by resolution of the county board and upon proof
286.9of compliance with the requirements of subdivision 2. The resolution and proofs must be
286.10provided to the commissioner by December February 1 in order to be effective for the
286.11following current year's assessment.
286.12(d) If a person who was entitled to appeal to the county board of appeal and equalization
286.13or to the county special board of equalization is not able to do so in a particular year because
286.14the county board or special board did not meet the quorum and training requirements in this
286.15section and section 274.13, or because the special board was not appointed, that person may
286.16instead appeal to the commissioner of revenue, provided that the appeal is received by the
286.17commissioner prior to August 1. The appeal is not subject to either chapter 14 or section
286.18270C.92 . The commissioner must issue an appropriate order to the county assessor in
286.19response to each timely appeal, either upholding or changing the valuation or classification
286.20of the property. Prior to October 1 of each year, the commissioner must charge and bill the
286.21county where the property is located $500 for each tax parcel covered by an order issued
286.22under this paragraph in that year. Amounts received by the commissioner under this paragraph
286.23must be deposited in the state's general fund. If payment of a billed amount is not received
286.24by the commissioner before December 1 of the year when billed, the commissioner must
286.25deduct that unpaid amount from any state aid the commissioner would otherwise pay to the
286.26county under chapter 477A in the next year. Late payments may either be returned to the
286.27county uncashed and undeposited or may be accepted. If a late payment is accepted, the
286.28state aid paid to the county under chapter 477A must be adjusted within 12 months to
286.29eliminate any reduction that occurred because the payment was late. Amounts needed to
286.30make these adjustments are included in the appropriation under section 477A.03, subdivision
286.312 .
286.32EFFECTIVE DATE.This section is effective for county boards of appeal and
286.33equalization meetings held in 2018 and thereafter.

287.1    Sec. 28. Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read:
287.2    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the contrary,
287.3on or before September 30, each county and each home rule charter or statutory city shall
287.4certify to the county auditor the proposed property tax levy for taxes payable in the following
287.5year.
287.6    (b) Notwithstanding any law or charter to the contrary, on or before September 15, each
287.7town and each special taxing district shall adopt and certify to the county auditor a proposed
287.8property tax levy for taxes payable in the following year. For towns, the final certified levy
287.9shall also be considered the proposed levy.
287.10    (c) On or before September 30, each school district that has not mutually agreed with
287.11its home county to extend this date shall certify to the county auditor the proposed property
287.12tax levy for taxes payable in the following year. Each school district that has agreed with
287.13its home county to delay the certification of its proposed property tax levy must certify its
287.14proposed property tax levy for the following year no later than October 7. The school district
287.15shall certify the proposed levy as:
287.16    (1) a specific dollar amount by school district fund, broken down between voter-approved
287.17and non-voter-approved levies and between referendum market value and tax capacity
287.18levies; or
287.19    (2) the maximum levy limitation certified by the commissioner of education according
287.20to section 126C.48, subdivision 1.
287.21    (d) If the board of estimate and taxation or any similar board that establishes maximum
287.22tax levies for taxing jurisdictions within a first class city certifies the maximum property
287.23tax levies for funds under its jurisdiction by charter to the county auditor by the date specified
287.24in paragraph (a), the city shall be deemed to have certified its levies for those taxing
287.25jurisdictions.
287.26    (e) For purposes of this section, "special taxing district" means a special taxing district
287.27as defined in section 275.066. Intermediate school districts that levy a tax under chapter
287.28124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and
287.29Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special
287.30taxing districts for purposes of this section.
287.31(f) At the meeting at which a taxing authority, other than a town, adopts its proposed
287.32tax levy under this subdivision, the taxing authority shall announce the time and place of
287.33its any subsequent regularly scheduled meetings at which the budget and levy will be
288.1discussed and at which the public will be allowed to speak. The time and place of those
288.2meetings must be included in the proceedings or summary of proceedings published in the
288.3official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191.
288.4EFFECTIVE DATE.This section is effective the day following final enactment.

288.5    Sec. 29. Minnesota Statutes 2016, section 275.62, subdivision 2, is amended to read:
288.6    Subd. 2. Local governments required to report. For purposes of this section, "local
288.7governmental unit" means a county, home rule charter or statutory city with a population
288.8greater than 2,500, a town with a population greater than 5,000, or a home rule charter or
288.9statutory city or town that receives a distribution from the taconite municipal aid account
288.10in the levy year.
288.11EFFECTIVE DATE.This section is effective the day following final enactment.

288.12    Sec. 30. Minnesota Statutes 2016, section 278.01, subdivision 1, is amended to read:
288.13    Subdivision 1. Determination of validity. (a) Any person having personal property, or
288.14any estate, right, title, or interest in or lien upon any parcel of land, who claims that such
288.15property has been partially, unfairly, or unequally assessed in comparison with other property
288.16in the (1) city, or (2) county, or (3) in the case of a county containing a city of the first class,
288.17the portion of the county excluding the first class city, or that the parcel has been assessed
288.18at a valuation greater than its real or actual value, or that the tax levied against the same is
288.19illegal, in whole or in part, or has been paid, or that the property is exempt from the tax so
288.20levied, may have the validity of the claim, defense, or objection determined by the district
288.21court of the county in which the tax is levied or by the Tax Court by serving one copy of a
288.22petition for such determination upon the county auditor, one copy on the county attorney,
288.23one copy on the county treasurer, and three copies on the county assessor. The county
288.24assessor shall immediately forward one copy of the petition to the appropriate governmental
288.25authority in a home rule charter or statutory city or town in which the property is located if
288.26that city or town employs its own certified assessor. A copy of the petition shall also be
288.27forwarded by the assessor to the school board of the school district in which the property
288.28is located.
288.29(b) In counties where the office of county treasurer has been combined with the office
288.30of county auditor, the county may elect to require the petitioner to serve the number of
288.31copies as determined by the county. The county assessor shall immediately forward one
288.32copy of the petition to the appropriate governmental authority in a home rule charter or
288.33statutory city or town in which the property is located if that city or town employs its own
289.1certified assessor. A list of petitioned properties, including the name of the petitioner, the
289.2identification number of the property, and the estimated market value, shall be sent on or
289.3before the first day of July by the county auditor/treasurer to the school board of the school
289.4district in which the property is located.
289.5(c) For all counties, the petitioner must file the copies with proof of service, in the office
289.6of the court administrator of the district court on or before April 30 of the year in which the
289.7tax becomes payable. A petition for determination under this section may be transferred by
289.8the district court to the Tax Court. An appeal may also be taken to the Tax Court under
289.9chapter 271 at any time following receipt of the valuation notice that county assessors or
289.10city assessors having the powers of a county assessor are required by section 273.121 to
289.11send to persons whose property is to be included on the assessment roll that year, but prior
289.12to May 1 of the year in which the taxes are payable.
289.13EFFECTIVE DATE.This section is effective the day following final enactment.

289.14    Sec. 31. Minnesota Statutes 2016, section 282.01, subdivision 1a, is amended to read:
289.15    Subd. 1a. Conveyance to public entities. (a) Upon written request from a state agency
289.16or a governmental subdivision of the state, a parcel of unsold tax-forfeited land must be
289.17withheld from sale or lease to others for a maximum of six months. The request must be
289.18submitted to the county auditor. Upon receipt, the county auditor must withhold the parcel
289.19from sale or lease to any other party for six months, and must confirm the starting date of
289.20the six-month withholding period to the requesting agency or subdivision. If the request is
289.21from a governmental subdivision of the state, the governmental subdivision must pay the
289.22maintenance costs incurred by the county during the period the parcel is withheld. The
289.23county board may approve a sale or conveyance to the requesting party during the
289.24withholding period. A conveyance of the property to the requesting party terminates the
289.25withholding period.
289.26A governmental subdivision of the state must not make, and a county auditor must not
289.27act upon, a second request to withhold a parcel from sale or lease within 18 months of a
289.28previous request for that parcel. A county may reject a request made under this paragraph
289.29if the request is made more than 30 days after the county has given notice to the requesting
289.30state agency or governmental subdivision of the state that the county intends to sell or
289.31otherwise dispose of the property.
289.32(b) Nonconservation tax-forfeited lands may be sold by the county board, for their market
289.33value as determined by the county board, to an organized or incorporated governmental
289.34subdivision of the state for any public purpose for which the subdivision is authorized to
290.1acquire property. When the term "market value" is used in this section, it means an estimate
290.2of the full and actual market value of the parcel as determined by the county board, but in
290.3making this determination, the board and the persons employed by or under contract with
290.4the board in order to perform, conduct, or assist in the determination, are exempt from the
290.5licensure requirements of chapter 82B.
290.6(c) Nonconservation tax-forfeited lands may be released from the trust in favor of the
290.7taxing districts on application to sold by the county board by, for their market value as
290.8determined by the county board, to a state agency for an authorized use at not less than their
290.9market value as determined by the county board any public purpose for which the agency
290.10is authorized to acquire property.
290.11(d) Nonconservation tax-forfeited lands may be sold by the county board to an organized
290.12or incorporated governmental subdivision of the state or state agency for less than their
290.13market value if:
290.14(1) the county board determines that a sale at a reduced price is in the public interest
290.15because a reduced price is necessary to provide an incentive to correct the blighted conditions
290.16that make the lands undesirable in the open market, or the reduced price will lead to the
290.17development of affordable housing; and
290.18(2) the governmental subdivision or state agency has documented its specific plans for
290.19correcting the blighted conditions or developing affordable housing, and the specific law
290.20or laws that empower it to acquire real property in furtherance of the plans.
290.21If the sale under this paragraph is to a governmental subdivision of the state, the
290.22commissioner of revenue must convey the property on behalf of the state by quitclaim deed.
290.23If the sale under this paragraph is to a state agency, the property is released from the trust
290.24in favor of the taxing districts and the commissioner of revenue must issue a conveyance
290.25document that releases the property from the trust in favor of the taxing districts convey the
290.26property on behalf of the state by quitclaim deed to the agency.
290.27(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts may
290.28be conveyed by the commissioner of revenue in the name of the state to a governmental
290.29subdivision for an authorized public use, if an application is submitted to the commissioner
290.30which includes a statement of facts as to the use to be made of the tract and the favorable
290.31recommendation of the county board. For the purposes of this paragraph, "authorized public
290.32use" means a use that allows an indefinite segment of the public to physically use and enjoy
290.33the property in numbers appropriate to its size and use, or is for a public service facility.
290.34Authorized public uses as defined in this paragraph are limited to:
291.1(1) a road, or right-of-way for a road;
291.2(2) a park that is both available to, and accessible by, the public that contains
291.3improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;
291.4(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along
291.5with a reasonable amount of surrounding land maintained in its natural state;
291.6(4) transit facilities for buses, light rail transit, commuter rail or passenger rail, including
291.7transit ways, park-and-ride lots, transit stations, maintenance and garage facilities, and other
291.8facilities related to a public transit system;
291.9(5) public beaches or boat launches;
291.10(6) public parking;
291.11(7) civic recreation or conference facilities; and
291.12(8) public service facilities such as fire halls, police stations, lift stations, water towers,
291.13sanitation facilities, water treatment facilities, and administrative offices.
291.14No monetary compensation or consideration is required for the conveyance, except as
291.15provided in subdivision 1g, but the conveyance is subject to the conditions provided in law,
291.16including, but not limited to, the reversion provisions of subdivisions 1c and 1d.
291.17(f) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited
291.18land to a local governmental subdivision of the state by quitclaim deed on behalf of the state
291.19upon the favorable recommendation of the county board if the governmental subdivision
291.20has certified to the board that prior to forfeiture the subdivision was entitled to the parcel
291.21under a written development agreement or instrument, but the conveyance failed to occur
291.22prior to forfeiture. No compensation or consideration is required for, and no conditions
291.23attach to, the conveyance.
291.24(g) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited
291.25land to the association of a common interest community by quitclaim deed upon the favorable
291.26recommendation of the county board if the association certifies to the board that prior to
291.27forfeiture the association was entitled to the parcel under a written agreement, but the
291.28conveyance failed to occur prior to forfeiture. No compensation or consideration is required
291.29for, and no conditions attach to, the conveyance.
291.30(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the
291.31state for less than its market value for either: (1) creation or preservation of wetlands; (2)
291.32drainage or storage of storm water under a storm water management plan; or (3) preservation,
292.1or restoration and preservation, of the land in its natural state. The deed must contain a
292.2restrictive covenant limiting the use of the land to one of these purposes for 30 years or
292.3until the property is reconveyed back to the state in trust. At any time, the governmental
292.4subdivision may reconvey the property to the state in trust for the taxing districts. The deed
292.5of reconveyance is subject to approval by the commissioner of revenue. No part of a purchase
292.6price determined under this paragraph shall be refunded upon a reconveyance, but the
292.7amount paid for a conveyance under this paragraph may be taken into account by the county
292.8board when setting the terms of a future sale of the same property to the same governmental
292.9subdivision under paragraph (b) or (d). If the lands are unplatted and located outside of an
292.10incorporated municipality and the commissioner of natural resources determines there is a
292.11mineral use potential, the sale is subject to the approval of the commissioner of natural
292.12resources.
292.13(i) A park and recreation board in a city of the first class is a governmental subdivision
292.14for the purposes of this section.
292.15(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed by
292.16the commissioner of revenue in the name of the state to a governmental subdivision for a
292.17school forest under section 89.41. An application that includes a statement of facts as to the
292.18use to be made of the tract and the favorable recommendation of the county board and the
292.19commissioner of natural resources must be submitted to the commissioner of revenue. No
292.20monetary compensation or consideration is required for the conveyance, but the conveyance
292.21is subject to the conditional use and reversion provisions of subdivisions 1c and 1d, paragraph
292.22(e). At any time, the governmental subdivision may reconvey the property back to the state
292.23in trust for the taxing districts. The deed of reconveyance is subject to approval by the
292.24commissioner of revenue.
292.25EFFECTIVE DATE.This section is effective the day following final enactment.

292.26    Sec. 32. Minnesota Statutes 2016, section 282.01, subdivision 1d, is amended to read:
292.27    Subd. 1d. Reverter for failure to use; conveyance to state. (a) After three years from
292.28the date of any conveyance of tax-forfeited land to a governmental subdivision for an
292.29authorized public use as provided in this section, regardless of when the deed for the
292.30authorized public use was executed, if the governmental subdivision has failed to put the
292.31land to that use, or abandons that use, the governing body of the subdivision must: (1) with
292.32the approval of the county board, purchase the property for an authorized public purpose
292.33at the present market value as determined by the county board, or (2) authorize the proper
292.34officers to convey the land, or the part of the land not required for an authorized public use,
293.1to the state of Minnesota in trust for the taxing districts. If the governing body purchases
293.2the property under clause (1), the commissioner of revenue shall, upon proper application
293.3submitted by the county auditor and upon the reconveyance of the land subject to the
293.4conditional use deed to the state, convey the property on behalf of the state by quitclaim
293.5deed to the subdivision free of a use restriction and the possibility of reversion or
293.6defeasement. If the governing body decides to reconvey the property to the state under this
293.7clause, the officers shall execute a deed of conveyance immediately. The conveyance is
293.8subject to the approval of the commissioner and its form must be approved by the attorney
293.9general. For 15 years from the date of the conveyance, there is no failure to put the land to
293.10the authorized public use and no abandonment of that use if a formal plan of the governmental
293.11subdivision, including, but not limited to, a comprehensive plan or land use plan, shows an
293.12intended future use of the land for the authorized public use.
293.13(b) Property held by a governmental subdivision of the state under a conditional use
293.14deed executed under this section by the commissioner of revenue on or after January 1,
293.152007, may be acquired by that governmental subdivision after 15 years from the date of the
293.16conveyance if the commissioner determines upon written application from the subdivision
293.17that the subdivision has in fact put the property to the authorized public use for which it
293.18was conveyed, and the subdivision has made a finding that it has no current plans to change
293.19the use of the lands. Prior to conveying the property, the commissioner shall inquire whether
293.20the county board where the land is located objects to a conveyance of the property to the
293.21subdivision without conditions and without further act by or obligation of the subdivision.
293.22If the county does not object within 60 days, and the commissioner makes a favorable
293.23determination, the commissioner shall issue a quitclaim deed on behalf of the state
293.24unconditionally conveying the property to the governmental subdivision. For purposes of
293.25this paragraph, demonstration of an intended future use for the authorized public use in a
293.26formal plan of the governmental subdivision does not constitute use for that authorized
293.27public use.
293.28(c) Property held by a governmental subdivision of the state under a conditional use
293.29deed executed under this section by the commissioner of revenue before January 1, 2007,
293.30is released from the use restriction and possibility of reversion on January 1, 2022, if the
293.31county board records a resolution describing the land and citing this paragraph. The county
293.32board may authorize the county treasurer to deduct the amount of the recording fees from
293.33future settlements of property taxes to the subdivision.
293.34(d) Except for tax-forfeited land conveyed to establish a school forest under section
293.3589.41 , property conveyed under a conditional use deed executed under this section by the
294.1commissioner of revenue, regardless of when the deed for the authorized public use was
294.2executed, is released from the use restriction and reverter, and any use restriction or reverter
294.3for which no declaration of reversion has been recorded with the county recorder or registrar
294.4of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30 years from
294.5the date the deed was acknowledged; or (3) final resolution of an appeal to district court
294.6under subdivision 1e, if a lis pendens related to the appeal is recorded in the office of the
294.7county recorder or registrar of titles, as appropriate, prior to January 1, 2015.
294.8(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a
294.9school forest under section 89.41 is subject to a perpetual conditional use deed and reverter.
294.10The property reverts to the state in trust for the taxing districts by operation of law if the
294.11commissioner of natural resources determines and reports to the commissioner of revenue
294.12under section 89.41, subdivision 3, that the governmental subdivision has failed to use the
294.13land for school forest purposes for three consecutive years. The commissioner of revenue
294.14shall record a declaration of reversion for land that has reverted under this paragraph.
294.15EFFECTIVE DATE.This section is effective the day following final enactment.

294.16    Sec. 33. Minnesota Statutes 2016, section 477A.013, is amended by adding a subdivision
294.17to read:
294.18    Subd. 14. Communication by electronic mail. Prior to receiving aid pursuant to this
294.19section, a city must register an official electronic mail address with the commissioner, which
294.20the commissioner may use as an exclusive means to communicate with the city.
294.21EFFECTIVE DATE.This section is effective for aids payable in 2018 and thereafter.

294.22    Sec. 34. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision
294.23to read:
294.24    Subd. 3a. Certification. On or before June 1 of each year, the commissioner of natural
294.25resources shall certify to the commissioner of revenue the number of watercraft launches
294.26and the number of watercraft trailer parking spaces in each county.
294.27EFFECTIVE DATE.This section is effective for aids payable in 2018 and thereafter.

295.1    Sec. 35. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision
295.2to read:
295.3    Subd. 3b. Certification. On or before June 1 of each year, the commissioner of natural
295.4resources shall certify to the commissioner of revenue the counties that complied with the
295.5requirements of subdivision 3 the prior year and are eligible to receive aid under this section.
295.6EFFECTIVE DATE.This section is effective for aids payable in 2018 and thereafter.

295.7    Sec. 36. Minnesota Statutes 2016, section 559.202, subdivision 2, is amended to read:
295.8    Subd. 2. Exception. This section does not apply to sales made under chapter 282 or if
295.9the purchaser is represented throughout the transaction by either:
295.10(1) a person licensed to practice law in this state; or
295.11(2) a person licensed as a real estate broker or salesperson under chapter 82, provided
295.12that the representation does not create a dual agency, as that term is defined in section 82.55,
295.13subdivision 6 .
295.14EFFECTIVE DATE.This section is effective for sales of tax-forfeited land occurring
295.15the day following final enactment and thereafter.

295.16    Sec. 37. Laws 2014, chapter 308, article 9, section 94, is amended to read:
295.17    Sec. 94. REPEALER.
295.18(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision
295.1919e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules,
295.20part 8007.0200, are repealed.
295.21(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, subdivision
295.222; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, 53, 67, 72, and
295.2382; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, subdivision 3; 273.075;
295.24273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, subdivision
295.258; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 4; 287.27,
295.26subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision 7; 297A.666; 297A.71,
295.27subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08, subdivision 11; 297H.10,
295.28subdivision 2; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i;
295.29469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; and 505.173, Minnesota Statutes
295.302013 Supplement, section 273.1103, Laws 1993, chapter 375, article 9, section 47, and
296.1Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; and 8130.7500, subpart 7, are
296.2repealed.
296.3(c) Minnesota Statutes 2012, section 469.1764, is repealed.
296.4(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision 38;
296.5469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 469.339;
296.6469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 Supplement,
296.7section 469.340, subdivision 4, are repealed.
296.8(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.
296.9EFFECTIVE DATE.This section is effective retroactively from May 20, 2014, and
296.10pursuant to Minnesota Statutes, section 645.36, Minnesota Statutes, section 272.027,
296.11subdivision 2, is revived and reenacted as of that date.

296.12    Sec. 38. REPEALER.
296.13(a) Minnesota Statutes 2016, section 281.22, is repealed.
296.14(b) Minnesota Rules, part 8100.0700, is repealed.
296.15EFFECTIVE DATE.Paragraph (a) is effective the day following final enactment.
296.16Paragraph (b) is effective for assessment year 2017 and thereafter.


296.20    Section 1. Minnesota Statutes 2016, section 270.82, subdivision 1, is amended to read:
296.21    Subdivision 1. Annual report required. Every railroad company doing business in
296.22Minnesota shall annually file with the commissioner on or before March 31 a report under
296.23oath setting forth the information prescribed by the commissioner to enable the commissioner
296.24to make the valuation and equalization required by sections 270.80 to 270.87. The
296.25commissioner shall prescribe the content, format, and manner of the report pursuant to
296.26section 270C.30, except that a "law administered by the commissioner" includes the property
296.27tax laws. If a report is made by electronic means, the taxpayer's signature is defined pursuant
296.28to section 270C.304, except that a "law administered by the commissioner" includes the
296.29property tax laws.
296.30EFFECTIVE DATE.This section is effective the day following final enactment.

297.1    Sec. 2. Minnesota Statutes 2016, section 270A.03, subdivision 5, is amended to read:
297.2    Subd. 5. Debt. (a) "Debt" means a legal obligation of a natural person to pay a fixed and
297.3certain amount of money, which equals or exceeds $25 and which is due and payable to a
297.4claimant agency. The term includes criminal fines imposed under section 609.10 or 609.125,
297.5fines imposed for petty misdemeanors as defined in section 609.02, subdivision 4a, and
297.6restitution. A debt may arise under a contractual or statutory obligation, a court order, or
297.7other legal obligation, but need not have been reduced to judgment.
297.8    A debt includes any legal obligation of a current recipient of assistance which is based
297.9on overpayment of an assistance grant where that payment is based on a client waiver or
297.10an administrative or judicial finding of an intentional program violation; or where the debt
297.11is owed to a program wherein the debtor is not a client at the time notification is provided
297.12to initiate recovery under this chapter and the debtor is not a current recipient of food support,
297.13transitional child care, or transitional medical assistance.
297.14    (b) A debt does not include any legal obligation to pay a claimant agency for medical
297.15care, including hospitalization if the income of the debtor at the time when the medical care
297.16was rendered does not exceed the following amount:
297.17    (1) for an unmarried debtor, an income of $8,800 $12,560 or less;
297.18    (2) for a debtor with one dependent, an income of $11,270 $16,080 or less;
297.19    (3) for a debtor with two dependents, an income of $13,330 $19,020 or less;
297.20    (4) for a debtor with three dependents, an income of $15,120 $21,580 or less;
297.21    (5) for a debtor with four dependents, an income of $15,950 $22,760 or less; and
297.22    (6) for a debtor with five or more dependents, an income of $16,630 $23,730 or less.
297.23For purposes of this paragraph, "debtor" means the individual whose income, together
297.24with the income of the individual's spouse, other than a separated spouse, brings the
297.25individual within the income provisions of this paragraph. For purposes of this paragraph,
297.26a spouse, other than a separated spouse, shall be considered a dependent.
297.27    (c) The commissioner shall adjust the income amounts in paragraph (b) by the percentage
297.28determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except
297.29that in section 1(f)(3)(B) the word "1999 2014" shall be substituted for the word "1992."
297.30For 2001 2016, the commissioner shall then determine the percent change from the 12
297.31months ending on August 31, 1999 2014, to the 12 months ending on August 31, 2000 2015,
297.32and in each subsequent year, from the 12 months ending on August 31, 1999 2014, to the
298.112 months ending on August 31 of the year preceding the taxable year. The determination
298.2of the commissioner pursuant to this subdivision shall not be considered a "rule" and shall
298.3not be subject to the Administrative Procedure Act contained in chapter 14. The income
298.4amount as adjusted must be rounded to the nearest $10 amount. If the amount ends in $5,
298.5the amount is rounded up to the nearest $10 amount.
298.6    (d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of the
298.7dollar amount of the premium authorized under section 256L.15, subdivision 1a.
298.8EFFECTIVE DATE.The section is effective retroactively for debts incurred after
298.9December 31, 2014.

298.10    Sec. 3. Minnesota Statutes 2016, section 270B.14, subdivision 1, is amended to read:
298.11    Subdivision 1. Disclosure to commissioner of human services. (a) On the request of
298.12the commissioner of human services, the commissioner shall disclose return information
298.13regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the
298.14extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
298.15    (b) Data that may be disclosed are limited to data relating to the identity, whereabouts,
298.16employment, income, and property of a person owing or alleged to be owing an obligation
298.17of child support.
298.18    (c) The commissioner of human services may request data only for the purposes of
298.19carrying out the child support enforcement program and to assist in the location of parents
298.20who have, or appear to have, deserted their children. Data received may be used only as set
298.21forth in section 256.978.
298.22    (d) The commissioner shall provide the records and information necessary to administer
298.23the supplemental housing allowance to the commissioner of human services.
298.24    (e) At the request of the commissioner of human services, the commissioner of revenue
298.25shall electronically match the Social Security numbers and names of participants in the
298.26telephone assistance plan operated under sections 237.69 to 237.71, with those of property
298.27tax refund filers, and determine whether each participant's household income is within the
298.28eligibility standards for the telephone assistance plan.
298.29    (f) The commissioner may provide records and information collected under sections
298.30295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid
298.31Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law
298.32102-234. Upon the written agreement by the United States Department of Health and Human
298.33Services to maintain the confidentiality of the data, the commissioner may provide records
299.1and information collected under sections 295.50 to 295.59 to the Centers for Medicare and
299.2Medicaid Services section of the United States Department of Health and Human Services
299.3for purposes of meeting federal reporting requirements.
299.4    (g) The commissioner may provide records and information to the commissioner of
299.5human services as necessary to administer the early refund of refundable tax credits.
299.6    (h) The commissioner may disclose information to the commissioner of human services
299.7as necessary to verify income for income verification for eligibility and premium payment
299.8under the MinnesotaCare program, under section 256L.05, subdivision 2, as well as the
299.9medical assistance program under chapter 256B.
299.10    (i) The commissioner may disclose information to the commissioner of human services
299.11necessary to verify whether applicants or recipients for the Minnesota family investment
299.12program, general assistance, food support, Minnesota supplemental aid program, and child
299.13care assistance have claimed refundable tax credits under chapter 290 and the property tax
299.14refund under chapter 290A, and the amounts of the credits.
299.15    (j) The commissioner may disclose information to the commissioner of human services
299.16necessary to verify income for purposes of calculating parental contribution amounts under
299.17section 252.27, subdivision 2a.
299.18EFFECTIVE DATE.This section is effective the day following final enactment.

299.19    Sec. 4. Minnesota Statutes 2016, section 270C.30, is amended to read:
299.20270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING.
299.21Except as otherwise provided by law, the commissioner shall prescribe the content and,
299.22format, and manner of all returns and other forms required to be filed under a law
299.23administered by the commissioner, and may furnish them subject to charge on application.
299.24EFFECTIVE DATE.This section is effective the day following final enactment.

299.25    Sec. 5. Minnesota Statutes 2016, section 270C.33, subdivision 5, is amended to read:
299.26    Subd. 5. Prohibition against collection during appeal period of an order. No collection
299.27action can be taken on an order of assessment, or any other order imposing a liability,
299.28including the filing of liens under section 270C.63, and no late payment penalties may be
299.29imposed when a return has been filed for the tax type and period upon which the order is
299.30based, during the appeal period of an order. The appeal period of an order ends: (1) 60 days
299.31after the order has been mailed to the taxpayer notice date designated by the commissioner
300.1on the order; (2) if an administrative appeal is filed under section 270C.35, 60 days after
300.2the notice date designated by the commissioner on the written determination of the
300.3administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when the
300.4decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the appeal
300.5is based upon a constitutional challenge to the tax, 60 days after final determination of the
300.6appeal. This subdivision does not apply to a jeopardy assessment under section 270C.36,
300.7or a jeopardy collection under section 270C.36.
300.8EFFECTIVE DATE.This section is effective for orders dated after December 31,
300.92017.

300.10    Sec. 6. Minnesota Statutes 2016, section 270C.33, subdivision 8, is amended to read:
300.11    Subd. 8. Sufficiency of notice. An assessment of tax made by the commissioner, sent
300.12postage prepaid by United States mail to the taxpayer at the taxpayer's last known address,
300.13or sent by electronic mail to the taxpayer's last known electronic mailing address as provided
300.14for in section 325L.08, is sufficient even if the taxpayer is deceased or is under a legal
300.15disability, or, in the case of a corporation, has terminated its existence, unless the
300.16commissioner has been provided with a new address by a party authorized to receive notices
300.17of assessment. Notice of an assessment is sufficient if it is sent on or before the notice date
300.18designated by the commissioner on the assessment.
300.19EFFECTIVE DATE.This section is effective for assessments dated after December
300.2031, 2017.

300.21    Sec. 7. Minnesota Statutes 2016, section 270C.34, subdivision 2, is amended to read:
300.22    Subd. 2. Procedure. (a) A request for abatement of penalty under subdivision 1 or
300.23section 289A.60, subdivision 4, or a request for abatement of interest or additional tax
300.24charge, must be filed with the commissioner within 60 days of the notice date of the notice
300.25was mailed to the taxpayer's last known address, stating that a penalty has been imposed or
300.26additional tax charge. For purposes of this section, "notice date" means the notice date
300.27designated by the commissioner on the order or other notice that a penalty or additional tax
300.28charge has been imposed.
300.29(b) If the commissioner issues an order denying a request for abatement of penalty,
300.30interest, or additional tax charge, the taxpayer may file an administrative appeal as provided
300.31in section 270C.35 or appeal to Tax Court as provided in section 271.06.
301.1(c) If the commissioner does not issue an order on the abatement request within 60 days
301.2from the date the request is received, the taxpayer may appeal to Tax Court as provided in
301.3section 271.06.
301.4EFFECTIVE DATE.This section is effective for orders and notices dated after
301.5December 31, 2017.

301.6    Sec. 8. Minnesota Statutes 2016, section 270C.35, subdivision 3, is amended to read:
301.7    Subd. 3. Notice date. For purposes of this section, the term "notice date" means the
301.8notice date of designated by the commissioner on the order adjusting the tax or order denying
301.9a request for abatement, or, in the case of a denied refund, the notice date of designated by
301.10the commissioner on the notice of denial.
301.11EFFECTIVE DATE.This section is effective for orders and notices dated after
301.12December 31, 2017.

301.13    Sec. 9. Minnesota Statutes 2016, section 270C.35, is amended by adding a subdivision to
301.14read:
301.15    Subd. 11. Dismissal of administrative appeal. If a taxpayer files an administrative
301.16appeal for an order of the commissioner and also files an appeal to the Tax Court for that
301.17same order of the commissioner, the administrative appeal is dismissed and the commissioner
301.18is no longer required to make a determination of appeal under subdivision 6.
301.19EFFECTIVE DATE.This section is effective for all administrative appeals filed after
301.20June 30, 2017.

301.21    Sec. 10. Minnesota Statutes 2016, section 270C.38, subdivision 1, is amended to read:
301.22    Subdivision 1. Sufficient notice. (a) If no method of notification of a written
301.23determination or action of the commissioner is otherwise specifically provided for by law,
301.24notice of the determination or action sent postage prepaid by United States mail to the
301.25taxpayer or other person affected by the determination or action at the taxpayer's or person's
301.26last known address, is sufficient. If the taxpayer or person being notified is deceased or is
301.27under a legal disability, or, in the case of a corporation being notified that has terminated
301.28its existence, notice to the last known address of the taxpayer, person, or corporation is
301.29sufficient, unless the department has been provided with a new address by a party authorized
301.30to receive notices from the commissioner.
302.1(b) If a taxpayer or other person agrees to accept notification by electronic means, notice
302.2of a determination or action of the commissioner sent by electronic mail to the taxpayer's
302.3or person's last known electronic mailing address as provided for in section 325L.08 is
302.4sufficient.
302.5(c) Notice of a determination or action of the commissioner is sufficient if it is sent on
302.6or before the notice date designated by the commissioner on the notice.
302.7EFFECTIVE DATE.This section is effective for notices dated after December 31,
302.82017.

302.9    Sec. 11. Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision
302.10to read:
302.11    Subd. 9. Enforcement; limitations. (a) Notwithstanding any other law, the imposition
302.12of a penalty or any other action against a tax preparer authorized by subdivision 6 with
302.13respect to a return may be taken by the commissioner within the period provided by section
302.14289A.38 to assess tax on that return.
302.15(b) Imposition of a penalty or other action against a tax preparer authorized by subdivision
302.166 other than with respect to a return must be taken by the commissioner within five years
302.17of the violation of statute.
302.18EFFECTIVE DATE.This section is effective for tax preparation services provided
302.19after the day following final enactment.

302.20    Sec. 12. Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read:
302.21    Subd. 5. Removal from list. The commissioner shall remove the name of a tax preparer
302.22from the list of tax preparers published under this section:
302.23(1) when the commissioner determines that the name was included on the list in error;
302.24(2) within 90 days three years after the preparer has demonstrated to the commissioner
302.25that the preparer fully paid all fines or penalties imposed, served any suspension, satisfied
302.26any sentence imposed, successfully completed any probationary period imposed, and
302.27successfully completed any remedial actions required by the commissioner, the State Board
302.28of Accountancy, or the Lawyers Board of Professional Responsibility; or
302.29(3) when the commissioner has been notified that the tax preparer is deceased.
302.30EFFECTIVE DATE.This section is effective the day following final enactment.

303.1    Sec. 13. Minnesota Statutes 2016, section 270C.72, subdivision 4, is amended to read:
303.2    Subd. 4. Licensing authority; duties. All licensing authorities must require the applicant
303.3to provide the applicant's Social Security number or individual taxpayer identification
303.4number and Minnesota business identification number, as applicable, on all license
303.5applications. Upon request of the commissioner, the licensing authority must provide the
303.6commissioner with a list of all applicants, including the name, address, business name and
303.7address, and Social Security number, or individual taxpayer identification number and
303.8business identification number, as applicable, of each applicant. The commissioner may
303.9request from a licensing authority a list of the applicants no more than once each calendar
303.10year.
303.11EFFECTIVE DATE.This section is effective the day following final enactment.

303.12    Sec. 14. Minnesota Statutes 2016, section 271.06, subdivision 2, is amended to read:
303.13    Subd. 2. Time; notice; intervention. Except as otherwise provided by law, within 60
303.14days after the notice of the making and filing date of an order of the commissioner of revenue,
303.15the appellant, or the appellant's attorney, shall serve a notice of appeal upon the commissioner
303.16and file the original, with proof of such service, with the Tax Court administrator or with
303.17the court administrator of district court acting as court administrator of the Tax Court;
303.18provided, that the Tax Court, for cause shown, may by written order extend the time for
303.19appealing for an additional period not exceeding 30 days. For purposes of this section,
303.20"notice date" means the notice date designated by the commissioner on the order. The notice
303.21of appeal shall be in the form prescribed by the Tax Court. Within five days after receipt,
303.22the commissioner shall transmit a copy of the notice of appeal to the attorney general. The
303.23attorney general shall represent the commissioner, if requested, upon all such appeals except
303.24in cases where the attorney general has appealed in behalf of the state, or in other cases
303.25where the attorney general deems it against the interests of the state to represent the
303.26commissioner, in which event the attorney general may intervene or be substituted as an
303.27appellant in behalf of the state at any stage of the proceedings.
303.28Upon a final determination of any other matter over which the court is granted jurisdiction
303.29under section 271.01, subdivision 5, the taxpayer or the taxpayer's attorney shall file a
303.30petition or notice of appeal as provided by law with the court administrator of district court,
303.31acting in the capacity of court administrator of the Tax Court, with proof of service of the
303.32petition or notice of appeal as required by law and within the time required by law. As used
303.33in this subdivision, "final determination" includes a notice of assessment and equalization
304.1for the year in question received from the local assessor, an order of the local board of
304.2equalization, or an order of a county board of equalization.
304.3The Tax Court shall prescribe a filing system so that the notice of appeal or petition filed
304.4with the district court administrator acting as court administrator of the Tax Court is
304.5forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning
304.6property valuation for which the assessor, a local board of equalization, a county board of
304.7equalization or the commissioner of revenue has issued an order, the officer issuing the
304.8order shall be notified of the filing of the appeal. The notice of appeal or petition shall be
304.9in the form prescribed by the Tax Court.
304.10EFFECTIVE DATE.This section is effective for orders dated after December 31,
304.112017.

304.12    Sec. 15. Minnesota Statutes 2016, section 271.06, subdivision 7, is amended to read:
304.13    Subd. 7. Rules. Except as provided in section 278.05, subdivision 6, the Rules of
304.14Evidence and Civil Procedure for the district court of Minnesota shall govern the procedures
304.15in the Tax Court, where practicable. The Rules of Civil Procedure do not apply to alter the
304.1660-day period of time to file a notice of appeal provided in subdivision 2. The Tax Court
304.17may adopt rules under chapter 14.
304.18EFFECTIVE DATE.This section is effective for orders dated after December 31,
304.192017.

304.20    Sec. 16. Minnesota Statutes 2016, section 272.02, subdivision 10, is amended to read:
304.21    Subd. 10. Personal property used for pollution control. Personal property used
304.22primarily for the abatement and control of air, water, or land pollution is exempt to the
304.23extent that it is so used, and real property is exempt if it is used primarily for abatement and
304.24control of air, water, or land pollution as part of an agricultural operation, as a part of a
304.25centralized treatment and recovery facility operating under a permit issued by the Minnesota
304.26Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota Rules, parts
304.277001.0500 to 7001.0730, and 7045.0020 to 7045.1030, as a wastewater treatment facility
304.28and for the treatment, recovery, and stabilization of metals, oils, chemicals, water, sludges,
304.29or inorganic materials from hazardous industrial wastes, or as part of an electric generation
304.30system. For purposes of this subdivision, personal property includes ponderous machinery
304.31and equipment used in a business or production activity that at common law is considered
304.32real property.
305.1Any taxpayer requesting exemption of all or a portion of any real property or any
305.2equipment or device, or part thereof, operated primarily for the control or abatement of air,
305.3water, or land pollution shall file an application with the commissioner of revenue. The
305.4commissioner shall develop an electronic means to notify interested parties when electric
305.5power generation facilities have filed an application. The commissioner shall prescribe the
305.6content, format, and manner of the application pursuant to section 270C.30, except that a
305.7"law administered by the commissioner" includes the property tax laws, and if an application
305.8is made by electronic means, the taxpayer's signature is defined pursuant to section 270C.304,
305.9except that a "law administered by the commissioner" includes the property tax laws. The
305.10Minnesota Pollution Control Agency shall upon request of the commissioner furnish
305.11information and advice to the commissioner.
305.12The information and advice furnished by the Minnesota Pollution Control Agency must
305.13include statements as to whether the equipment, device, or real property meets a standard,
305.14rule, criteria, guideline, policy, or order of the Minnesota Pollution Control Agency, and
305.15whether the equipment, device, or real property is installed or operated in accordance with
305.16it. On determining that property qualifies for exemption, the commissioner shall issue an
305.17order exempting the property from taxation. The commissioner shall develop an electronic
305.18means to notify interested parties when the commissioner has issued an order exempting
305.19property from taxation under this subdivision. The equipment, device, or real property shall
305.20continue to be exempt from taxation as long as the order issued by the commissioner remains
305.21in effect.
305.22EFFECTIVE DATE.This section is effective the day following final enactment.

305.23    Sec. 17. Minnesota Statutes 2016, section 272.0211, subdivision 1, is amended to read:
305.24    Subdivision 1. Efficiency determination and certification. An owner or operator of a
305.25new or existing electric power generation facility, excluding wind energy conversion systems,
305.26may apply to the commissioner of revenue for a market value exclusion on the property as
305.27provided for in this section. This exclusion shall apply only to the market value of the
305.28equipment of the facility, and shall not apply to the structures and the land upon which the
305.29facility is located. The commissioner of revenue shall prescribe the forms content, format,
305.30manner, and procedures for this application pursuant to section 270C.30, except that a "law
305.31administered by the commissioner" includes the property tax laws. If an application is made
305.32by electronic means, the taxpayer's signature is defined pursuant to section 270C.304, except
305.33that a "law administered by the commissioner" includes the property tax laws. Upon receiving
305.34the application, the commissioner of revenue shall: (1) request the commissioner of commerce
306.1to make a determination of the efficiency of the applicant's electric power generation facility;
306.2and (2) shall develop an electronic means to notify interested parties when electric power
306.3generation facilities have filed an application. The commissioner of commerce shall calculate
306.4efficiency as the ratio of useful energy outputs to energy inputs, expressed as a percentage,
306.5based on the performance of the facility's equipment during normal full load operation. The
306.6commissioner must include in this formula the energy used in any on-site preparation of
306.7materials necessary to convert the materials into the fuel used to generate electricity, such
306.8as a process to gasify petroleum coke. The commissioner shall use the Higher Heating Value
306.9(HHV) for all substances in the commissioner's efficiency calculations, except for wood
306.10for fuel in a biomass-eligible project under section 216B.2424; for these instances, the
306.11commissioner shall adjust the heating value to allow for energy consumed for evaporation
306.12of the moisture in the wood. The applicant shall provide the commissioner of commerce
306.13with whatever information the commissioner deems necessary to make the determination.
306.14Within 30 days of the receipt of the necessary information, the commissioner of commerce
306.15shall certify the findings of the efficiency determination to the commissioner of revenue
306.16and to the applicant. The commissioner of commerce shall determine the efficiency of the
306.17facility and certify the findings of that determination to the commissioner of revenue every
306.18two years thereafter from the date of the original certification.
306.19EFFECTIVE DATE.This section is effective the day following final enactment.

306.20    Sec. 18. Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read:
306.21    Subdivision 1. Statement of exemption. (a) Except in the case of property owned by
306.22the state of Minnesota or any political subdivision thereof, and property exempt from taxation
306.23under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times
306.24provided in subdivision 3, a taxpayer claiming an exemption from taxation on property
306.25described in section 272.02, subdivisions 2 to 33, must file a statement of exemption with
306.26the assessor of the assessment district in which the property is located.
306.27(b) A taxpayer claiming an exemption from taxation on property described in section
306.28272.02, subdivision 10 , must file a statement of exemption with the commissioner of revenue,
306.29on or before February 15 of each year for which the taxpayer claims an exemption.
306.30(c) In case of sickness, absence or other disability or for good cause, the assessor or the
306.31commissioner may extend the time for filing the statement of exemption for a period not to
306.32exceed 60 days.
307.1(d) The commissioner of revenue shall prescribe the form and contents content, format,
307.2and manner of the statement of exemption pursuant to section 270C.30, except that a "law
307.3administered by the commissioner" includes the property tax laws.
307.4(e) If a statement is made by electronic means, the taxpayer's signature is defined pursuant
307.5to section 270C.304, except that a "law administered by the commissioner" includes the
307.6property tax laws.
307.7EFFECTIVE DATE.This section is effective the day following final enactment.

307.8    Sec. 19. Minnesota Statutes 2016, section 272.029, subdivision 4, is amended to read:
307.9    Subd. 4. Reports. (a) An owner of a wind energy conversion system subject to tax under
307.10subdivision 3 shall file a report with the commissioner of revenue annually on or before
307.11February 1 January 15 detailing the amount of electricity in kilowatt-hours that was produced
307.12by the wind energy conversion system for the previous calendar year. The commissioner
307.13shall prescribe the form content, format, and manner of the report pursuant to section
307.14270C.30, except that a "law administered by the commissioner" includes the property tax
307.15laws. The report must contain the information required by the commissioner to determine
307.16the tax due to each county under this section for the current year. If an owner of a wind
307.17energy conversion system subject to taxation under this section fails to file the report by
307.18the due date, the commissioner of revenue shall determine the tax based upon the nameplate
307.19capacity of the system multiplied by a capacity factor of 60 percent.
307.20(b) If a report is made by electronic means, the taxpayer's signature is defined pursuant
307.21to section 270C.304, except that a "law administered by the commissioner" includes the
307.22property tax laws.
307.23(b) (c) On or before February 28, the commissioner of revenue shall notify the owner
307.24of the wind energy conversion systems of the tax due to each county for the current year
307.25and shall certify to the county auditor of each county in which the systems are located the
307.26tax due from each owner for the current year.
307.27EFFECTIVE DATE.This section is effective the day following final enactment, except
307.28that the amendment in paragraph (a) moving the date to file the report is effective for reports
307.29filed in 2018 and thereafter.

307.30    Sec. 20. Minnesota Statutes 2016, section 272.0295, subdivision 4, is amended to read:
307.31    Subd. 4. Reports. An owner of a solar energy generating system subject to tax under
307.32this section shall file a report with the commissioner of revenue annually on or before
308.1January 15 detailing the amount of electricity in megawatt-hours that was produced by the
308.2system in the previous calendar year. The commissioner shall prescribe the form content,
308.3format, and manner of the report pursuant to section 270C.30. The report must contain the
308.4information required by the commissioner to determine the tax due to each county under
308.5this section for the current year. If an owner of a solar energy generating system subject to
308.6taxation under this section fails to file the report by the due date, the commissioner of
308.7revenue shall determine the tax based upon the nameplate capacity of the system multiplied
308.8by a capacity factor of 30 percent.
308.9EFFECTIVE DATE.This section is effective the day following final enactment.

308.10    Sec. 21. Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read:
308.11    Subd. 2. Form; information required. The certificate of value shall require such facts
308.12and information as may be determined by the commissioner to be reasonably necessary in
308.13the administration of the state education aid formulas. The form commissioner shall prescribe
308.14the content, format, and manner of the certificate of value shall be prescribed by the
308.15Department of Revenue which shall provide an adequate supply of forms to each county
308.16auditor pursuant to section 270C.30, except that a "law administered by the commissioner"
308.17includes the property tax laws.
308.18EFFECTIVE DATE.This section is effective the day following final enactment.

308.19    Sec. 22. Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read:
308.20    Subd. 13. Homestead application. (a) A person who meets the homestead requirements
308.21under subdivision 1 must file a homestead application with the county assessor to initially
308.22obtain homestead classification.
308.23    (b) The format and contents of a uniform homestead application shall be prescribed by
308.24the commissioner of revenue. The commissioner shall prescribe the content, format, and
308.25manner of the homestead application required to be filed under this chapter pursuant to
308.26section 270C.30. The application must clearly inform the taxpayer that this application must
308.27be signed by all owners who occupy the property or by the qualifying relative and returned
308.28to the county assessor in order for the property to receive homestead treatment.
308.29    (c) Every property owner applying for homestead classification must furnish to the
308.30county assessor the Social Security number of each occupant who is listed as an owner of
308.31the property on the deed of record, the name and address of each owner who does not occupy
308.32the property, and the name and Social Security number of each owner's spouse who occupies
309.1the property. The application must be signed by each owner who occupies the property and
309.2by each owner's spouse who occupies the property, or, in the case of property that qualifies
309.3as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
309.4    If a property owner occupies a homestead, the property owner's spouse may not claim
309.5another property as a homestead unless the property owner and the property owner's spouse
309.6file with the assessor an affidavit or other proof required by the assessor stating that the
309.7property qualifies as a homestead under subdivision 1, paragraph (e).
309.8    Owners or spouses occupying residences owned by their spouses and previously occupied
309.9with the other spouse, either of whom fail to include the other spouse's name and Social
309.10Security number on the homestead application or provide the affidavits or other proof
309.11requested, will be deemed to have elected to receive only partial homestead treatment of
309.12their residence. The remainder of the residence will be classified as nonhomestead residential.
309.13When an owner or spouse's name and Social Security number appear on homestead
309.14applications for two separate residences and only one application is signed, the owner or
309.15spouse will be deemed to have elected to homestead the residence for which the application
309.16was signed.
309.17    (d) If residential real estate is occupied and used for purposes of a homestead by a relative
309.18of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for
309.19the property to receive homestead status, a homestead application must be filed with the
309.20assessor. The Social Security number of each relative and spouse of a relative occupying
309.21the property shall be required on the homestead application filed under this subdivision. If
309.22a different relative of the owner subsequently occupies the property, the owner of the property
309.23must notify the assessor within 30 days of the change in occupancy. The Social Security
309.24number of a relative or relative's spouse occupying the property is private data on individuals
309.25as defined by section 13.02, subdivision 12, but may be disclosed to the commissioner of
309.26revenue, or, for the purposes of proceeding under the Revenue Recapture Act to recover
309.27personal property taxes owing, to the county treasurer.
309.28    (e) The homestead application shall also notify the property owners that if the property
309.29is granted homestead status for any assessment year, that same property shall remain
309.30classified as homestead until the property is sold or transferred to another person, or the
309.31owners, the spouse of the owner, or the relatives no longer use the property as their
309.32homestead. Upon the sale or transfer of the homestead property, a certificate of value must
309.33be timely filed with the county auditor as provided under section 272.115. Failure to notify
309.34the assessor within 30 days that the property has been sold, transferred, or that the owner,
309.35the spouse of the owner, or the relative is no longer occupying the property as a homestead,
310.1shall result in the penalty provided under this subdivision and the property will lose its
310.2current homestead status.
310.3    (f) If a homestead application has not been filed with the county by December 15, the
310.4assessor shall classify the property as nonhomestead for the current assessment year for
310.5taxes payable in the following year, provided that the owner may be entitled to receive the
310.6homestead classification by proper application under section 375.192.
310.7EFFECTIVE DATE.This section is effective the day following final enactment.

310.8    Sec. 23. Minnesota Statutes 2016, section 273.371, is amended to read:
310.9273.371 REPORTS OF UTILITY COMPANIES.
310.10    Subdivision 1. Report required. Every electric light, power, gas, water, express, stage,
310.11and transportation company, and pipeline company doing business in Minnesota shall
310.12annually file with the commissioner on or before March 31 a report under oath setting forth
310.13the information prescribed by the commissioner to enable the commissioner to make
310.14valuations, recommended valuations, and equalization required under sections 273.33,
310.15273.35 , 273.36, 273.37, and 273.3711. The commissioner shall prescribe the content, format,
310.16and manner of the report pursuant to section 270C.30, except that a "law administered by
310.17the commissioner" includes the property tax laws. If all the required information is not
310.18available on March 31, the company or pipeline shall file the information that is available
310.19on or before March 31, and the balance of the information as soon as it becomes available.
310.20If a report is made by electronic means, the taxpayer's signature is defined pursuant to section
310.21270C.304, except that a "law administered by the commissioner" includes the property tax
310.22laws.
310.23    Subd. 2. Extension. The commissioner for good cause may extend the time for filing
310.24the report required by subdivision 1. The extension may must not exceed 15 days.
310.25    Subd. 3. Reports filed by the commissioner. If a company fails to file a report required
310.26by subdivision 1, the commissioner may, from information in the commissioner's possession
310.27or obtainable by the commissioner, make and file a report for the company or make the
310.28valuations, recommended valuations, and equalizations required under sections 273.33,
310.29273.35 to 273.37, and 273.3711.
310.30EFFECTIVE DATE.This section is effective the day following final enactment.

310.31    Sec. 24. Minnesota Statutes 2016, section 287.2205, is amended to read:
310.32287.2205 TAX-FORFEITED LAND.
311.1    Before a state deed for tax-forfeited land may be issued, the deed tax must be paid by
311.2the purchaser of tax-forfeited land whether the purchase is the result of a public auction or
311.3private sale or a repurchase of tax-forfeited land. State agencies and local units of government
311.4that acquire tax-forfeited land by purchase or any other means are subject to this section.
311.5The deed tax is $1.65 for a conveyance of tax-forfeited lands to a governmental subdivision
311.6for an authorized public use under section 282.01, subdivision 1a, for a school forest under
311.7section 282.01, subdivision 1a, or for redevelopment purposes under section 282.01,
311.8subdivision 1b .
311.9EFFECTIVE DATE.This section is effective the day following final enactment.

311.10    Sec. 25. Minnesota Statutes 2016, section 289A.08, is amended by adding a subdivision
311.11to read:
311.12    Subd. 17. Format. The commissioner shall prescribe the content, format, and manner
311.13of the returns and other documents pursuant to section 270C.30. This does not authorize
311.14the commissioner to require individual income taxpayers to file individual income tax returns
311.15electronically.
311.16EFFECTIVE DATE.This section is effective the day following final enactment.

311.17    Sec. 26. Minnesota Statutes 2016, section 289A.09, subdivision 1, is amended to read:
311.18    Subdivision 1. Returns. (a) An employer who is required to deduct and withhold tax
311.19under section 290.92, subdivision 2a or 3, and a person required to deduct and withhold tax
311.20under section 290.923, subdivision 2, must file a return with the commissioner for each
311.21quarterly period unless otherwise prescribed by the commissioner.
311.22(b) A person or corporation required to make deposits under section 290.9201, subdivision
311.238 , must file an entertainer withholding tax return with the commissioner.
311.24(c) A person required to withhold an amount under section 290.9705, subdivision 1,
311.25must file a return.
311.26(d) A partnership required to deduct and withhold tax under section 290.92, subdivision
311.274b , must file a return.
311.28(e) An S corporation required to deduct and withhold tax under section 290.92,
311.29subdivision 4c , must also file a return.
311.30(f) Returns must be filed in the form and manner, and contain the information prescribed
311.31by the commissioner. The commissioner shall prescribe the content, format, and manner
312.1of the returns pursuant to section 270C.30. Every return for taxes withheld must be signed
312.2by the employer, entertainment entity, contract payor, partnership, or S corporation, or a
312.3designee.
312.4EFFECTIVE DATE.This section is effective the day following final enactment.

312.5    Sec. 27. Minnesota Statutes 2016, section 289A.11, subdivision 1, is amended to read:
312.6    Subdivision 1. Return required. (a) Except as provided in section 289A.18, subdivision
312.74 , for the month in which taxes imposed by chapter 297A are payable, or for which a return
312.8is due, a return for the preceding reporting period must be filed with the commissioner in
312.9the form and manner the commissioner prescribes. The commissioner shall prescribe the
312.10content, format, and manner of the returns pursuant to section 270C.30. A person making
312.11sales at retail at two or more places of business may file a consolidated return subject to
312.12rules prescribed by the commissioner. In computing the dollar amount of items on the return,
312.13the amounts are rounded off to the nearest whole dollar, disregarding amounts less than 50
312.14cents and increasing amounts of 50 cents to 99 cents to the next highest dollar.
312.15(b) Notwithstanding this subdivision, a person who is not required to hold a sales tax
312.16permit under chapter 297A and who makes annual purchases, for use in a trade or business,
312.17of less than $18,500, or a person who is not required to hold a sales tax permit and who
312.18makes purchases for personal use, that are subject to the use tax imposed by section 297A.63,
312.19may file an annual use tax return on a form prescribed by the commissioner. The
312.20commissioner shall prescribe the content, format, and manner of the return pursuant to
312.21section 270C.30. If a person who qualifies for an annual use tax reporting period is required
312.22to obtain a sales tax permit or makes use tax purchases, for use in a trade or business, in
312.23excess of $18,500 during the calendar year, the reporting period must be considered ended
312.24at the end of the month in which the permit is applied for or the purchase in excess of
312.25$18,500 is made and a return must be filed for the preceding reporting period.
312.26(c) Notwithstanding paragraph paragraphs (a) and (b), a person prohibited by the person's
312.27religious beliefs from using electronics shall be allowed to file by mail, without any additional
312.28fees. The filer must notify the commissioner of revenue of the intent to file by mail on a
312.29form prescribed by the commissioner. A return filed under this paragraph must be postmarked
312.30no later than the day the return is due in order to be considered filed on a timely basis.
312.31EFFECTIVE DATE.This section is effective the day following final enactment.

313.1    Sec. 28. Minnesota Statutes 2016, section 289A.18, subdivision 1, is amended to read:
313.2    Subdivision 1. Individual income, fiduciary income, corporate franchise, and
313.3entertainment taxes; partnership and S corporation returns; information returns;
313.4mining company returns. The returns required to be made under sections 289A.08 and
313.5289A.12 must be filed at the following times:
313.6    (1) returns made on the basis of the calendar year must be filed on April 15 following
313.7the close of the calendar year, except that returns of corporations and partnerships must be
313.8filed on the due date for filing the federal income tax return;
313.9    (2) returns made on the basis of the fiscal year must be filed on the 15th day of the fourth
313.10month following the close of the fiscal year, except that returns of corporations and
313.11partnerships must be filed on the due date for filing the federal income tax return;
313.12    (3) returns for a fractional part of a year must be filed on the due date for filing the
313.13federal income tax return;
313.14    (4) in the case of a final return of a decedent for a fractional part of a year, the return
313.15must be filed on the 15th day of the fourth month following the close of the 12-month period
313.16that began with the first day of that fractional part of a year;
313.17    (5) in the case of the return of a cooperative association, returns must be filed on or
313.18before the 15th day of the ninth month following the close of the taxable year;
313.19    (6) if a corporation has been divested from a unitary group and files a return for a
313.20fractional part of a year in which it was a member of a unitary business that files a combined
313.21report under section 290.17, subdivision 4, the divested corporation's return must be filed
313.22on the 15th day of the third month following the close of the common accounting period
313.23that includes the fractional year;
313.24    (7) returns of entertainment entities must be filed on April 15 following the close of the
313.25calendar year;
313.26    (8) returns required to be filed under section 289A.08, subdivision 4, must be filed on
313.27the 15th day of the fifth month following the close of the taxable year;
313.28    (9) returns of mining companies must be filed on May 1 following the close of the
313.29calendar year; and
313.30    (10) returns required to be filed with the commissioner under section 289A.12,
313.31subdivision 2 , 4 to 10, or 16 must be filed within 30 days after being demanded by the
313.32commissioner.
314.1EFFECTIVE DATE.This section is effective the day following final enactment.

314.2    Sec. 29. Minnesota Statutes 2016, section 289A.37, subdivision 2, is amended to read:
314.3    Subd. 2. Erroneous refunds. An erroneous refund is considered an underpayment of
314.4tax on the date made. An assessment of a deficiency arising out of an erroneous refund may
314.5be made at any time within two years from the making of the refund. If part of the refund
314.6was induced by fraud or misrepresentation of a material fact, the assessment may be made
314.7at any time. (a) Except as provided in paragraph (b), an erroneous refund occurs when the
314.8commissioner issues a payment to a person that exceeds the amount the person is entitled
314.9to receive under law. An erroneous refund is considered an underpayment of tax on the date
314.10issued.
314.11(b) To the extent that the amount paid does not exceed the amount claimed by the
314.12taxpayer, an erroneous refund does not include the following:
314.13(1) any amount of a refund or credit paid pursuant to a claim for refund filed by a
314.14taxpayer, including but not limited to refunds of claims made under section 290.06,
314.15subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068;
314.16290.0681; or 290.0692; or chapter 290A; or
314.17(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a
314.18taxpayer.
314.19(c) The commissioner may make an assessment to recover an erroneous refund at any
314.20time within two years from the issuance of the erroneous refund. If all or part of the erroneous
314.21refund was induced by fraud or misrepresentation of a material fact, the assessment may
314.22be made at any time.
314.23(d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be
314.24conducted under section 289A.38.
314.25EFFECTIVE DATE.This section is effective the day following final enactment and
314.26applies to all refunds issued after that date. Notwithstanding any law to the contrary, the
314.27changes in this section do not invalidate any assessments made by the commissioner prior
314.28to this effective date.

314.29    Sec. 30. Minnesota Statutes 2016, section 289A.50, subdivision 7, is amended to read:
314.30    Subd. 7. Remedies. (a) If the taxpayer is notified by the commissioner that the refund
314.31claim is denied in whole or in part, the taxpayer may:
315.1(1) file an administrative appeal as provided in section 270C.35, or an appeal with the
315.2Tax Court, within 60 days after issuance the notice date of the commissioner's notice of
315.3denial; or
315.4(2) file an action in the district court to recover the refund.
315.5(b) An action in the district court on a denied claim for refund must be brought within
315.618 months of the notice date of the denial of the claim by the commissioner. For the purposes
315.7of this section, "notice date" has the meaning given in section 270C.35, subdivision 3.
315.8(c) No action in the district court or the Tax Court shall be brought within six months
315.9of the filing of the refund claim unless the commissioner denies the claim within that period.
315.10(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial
315.11of the claim, the taxpayer may bring an action in the district court or the Tax Court at any
315.12time after the expiration of six months from the time the claim was filed.
315.13(e) The commissioner and the taxpayer may agree to extend the period for bringing an
315.14action in the district court.
315.15(f) An action for refund of tax by the taxpayer must be brought in the district court of
315.16the district in which lies the county of the taxpayer's residence or principal place of business.
315.17In the case of an estate or trust, the action must be brought at the principal place of its
315.18administration. Any action may be brought in the district court for Ramsey County.
315.19EFFECTIVE DATE.This section is effective for claims for refund denied after
315.20December 31, 2017.

315.21    Sec. 31. [290B.11] FORMS.
315.22The commissioner shall prescribe the content, format, and manner of all forms and other
315.23documents required to be filed under this chapter pursuant to section 270C.30.
315.24EFFECTIVE DATE.This section is effective the day following final enactment.

315.25    Sec. 32. [293.15] FORMS.
315.26The commissioner shall prescribe the content, format, and manner of all forms and other
315.27documents required to be filed under this chapter pursuant to section 270C.30.
315.28EFFECTIVE DATE.This section is effective the day following final enactment.

316.1    Sec. 33. Minnesota Statutes 2016, section 295.55, subdivision 6, is amended to read:
316.2    Subd. 6. Form of returns. The estimated payments and annual return must contain the
316.3information and be in the form prescribed by the commissioner. The commissioner shall
316.4prescribe the content, format, and manner of the estimated payment forms and annual return
316.5pursuant to section 270C.30.
316.6EFFECTIVE DATE.This section is effective the day following final enactment.

316.7    Sec. 34. Minnesota Statutes 2016, section 296A.02, is amended by adding a subdivision
316.8to read:
316.9    Subd. 5. Forms. The commissioner shall prescribe the content, format, and manner of
316.10all forms and other documents required to be filed under this chapter pursuant to section
316.11270C.30.
316.12EFFECTIVE DATE.This section is effective the day following final enactment.

316.13    Sec. 35. Minnesota Statutes 2016, section 296A.22, subdivision 9, is amended to read:
316.14    Subd. 9. Abatement of penalty. (a) The commissioner may by written order abate any
316.15penalty imposed under this section, if in the commissioner's opinion there is reasonable
316.16cause to do so.
316.17(b) A request for abatement of penalty must be filed with the commissioner within 60
316.18days of the notice date of the notice stating that a penalty has been imposed was mailed to
316.19the taxpayer's last known address. For purposes of this section, "notice date" means the
316.20notice date designated by the commissioner on the order or other notice that a penalty has
316.21been imposed.
316.22(c) If the commissioner issues an order denying a request for abatement of penalty, the
316.23taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to Tax
316.24Court as provided in section 271.06. If the commissioner does not issue an order on the
316.25abatement request within 60 days from the date the request is received, the taxpayer may
316.26appeal to Tax Court as provided in section 271.06.
316.27EFFECTIVE DATE.This section is effective for orders and notices dated after
316.28December 31, 2017.

316.29    Sec. 36. Minnesota Statutes 2016, section 296A.26, is amended to read:
316.30296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT.
317.1In lieu of an administrative appeal under section 270C.35, any person aggrieved by an
317.2order of the commissioner fixing a tax, penalty, or interest under this chapter may, within
317.360 days from the notice date of the notice of the order, appeal to the Tax Court in the manner
317.4provided under section 271.06. For purposes of this section, "notice date" means the notice
317.5date designated by the commissioner on the order fixing a tax, penalty, or interest.
317.6EFFECTIVE DATE.This section is effective for orders dated after December 31,
317.72017.

317.8    Sec. 37. Minnesota Statutes 2016, section 297D.02, is amended to read:
317.9297D.02 ADMINISTRATION.
317.10The commissioner of revenue shall administer this chapter. The commissioner shall
317.11prescribe the content, format, and manner of all forms and other documents required to be
317.12filed under this chapter pursuant to section 270C.30. Payments required by this chapter
317.13must be made to the commissioner on the form provided by the commissioner. Tax obligors
317.14are not required to give their name, address, Social Security number, or other identifying
317.15information on the form. The commissioner shall collect all taxes under this chapter.
317.16EFFECTIVE DATE.This section is effective the day following final enactment.

317.17    Sec. 38. Minnesota Statutes 2016, section 297E.02, subdivision 3, is amended to read:
317.18    Subd. 3. Collection; disposition. (a) Taxes imposed by this section are due and payable
317.19to the commissioner when the gambling tax return is required to be filed. Distributors must
317.20file their monthly sales figures with the commissioner on a form prescribed by the
317.21commissioner. Returns covering the taxes imposed under this section must be filed with
317.22the commissioner on or before the 20th day of the month following the close of the previous
317.23calendar month. The commissioner may require that the returns be filed via magnetic media
317.24or electronic data transfer. The commissioner shall prescribe the content, format, and manner
317.25of returns or other documents pursuant to section 270C.30. The proceeds, along with the
317.26revenue received from all license fees and other fees under sections 349.11 to 349.191,
317.27349.211 , and 349.213, must be paid to the commissioner of management and budget for
317.28deposit in the general fund.
317.29(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by the
317.30distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards by
317.31the organization is exempt from taxes imposed by chapter 297A and is exempt from all
317.32local taxes and license fees except a fee authorized under section 349.16, subdivision 8.
318.1(c) One-half of one percent of the revenue deposited in the general fund under paragraph
318.2(a), is appropriated to the commissioner of human services for the compulsive gambling
318.3treatment program established under section 245.98. One-half of one percent of the revenue
318.4deposited in the general fund under paragraph (a), is appropriated to the commissioner of
318.5human services for a grant to the state affiliate recognized by the National Council on
318.6Problem Gambling to increase public awareness of problem gambling, education and training
318.7for individuals and organizations providing effective treatment services to problem gamblers
318.8and their families, and research relating to problem gambling. Money appropriated by this
318.9paragraph must supplement and must not replace existing state funding for these programs.
318.10EFFECTIVE DATE.This section is effective the day following final enactment.

318.11    Sec. 39. Minnesota Statutes 2016, section 297E.04, subdivision 1, is amended to read:
318.12    Subdivision 1. Reports of sales. A manufacturer who sells gambling product for use or
318.13resale in this state, or for receipt by a person or entity in this state, shall file with the
318.14commissioner, on a form prescribed by the commissioner, a report of gambling product
318.15sold to any person in the state, including the established governing body of an Indian tribe
318.16recognized by the United States Department of the Interior. The report must be filed monthly
318.17on or before the 20th day of the month succeeding the month in which the sale was made.
318.18The commissioner may require that the report be submitted via magnetic media or electronic
318.19data transfer. The commissioner shall prescribe the content, format, and manner of returns
318.20or other documents pursuant to section 270C.30. The commissioner may inspect the premises,
318.21books, records, and inventory of a manufacturer without notice during the normal business
318.22hours of the manufacturer. A person violating this section is guilty of a misdemeanor.
318.23EFFECTIVE DATE.This section is effective the day following final enactment.

318.24    Sec. 40. Minnesota Statutes 2016, section 297E.05, subdivision 4, is amended to read:
318.25    Subd. 4. Reports. A distributor shall report monthly to the commissioner, on a form the
318.26commissioner prescribes, its sales of each type of gambling product. This report must be
318.27filed monthly on or before the 20th day of the month succeeding the month in which the
318.28sale was made. The commissioner may require that a distributor submit the monthly report
318.29and invoices required in this subdivision via magnetic media or electronic data transfer.
318.30The commissioner shall prescribe the content, format, and manner of returns or other
318.31documents pursuant to section 270C.30.
318.32EFFECTIVE DATE.This section is effective the day following final enactment.

319.1    Sec. 41. Minnesota Statutes 2016, section 297E.06, subdivision 1, is amended to read:
319.2    Subdivision 1. Reports. An organization must file with the commissioner, on a form
319.3prescribed by the commissioner, a report showing all gambling activity conducted by that
319.4organization for each month. Gambling activity includes all gross receipts, prizes, all
319.5gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful
319.6purpose and board-approved expenditures. The report must be filed with the commissioner
319.7on or before the 20th day of the month following the month in which the gambling activity
319.8takes place. The commissioner may require that the reports be filed via magnetic media or
319.9electronic data transfer. The commissioner shall prescribe the content, format, and manner
319.10of returns or other documents pursuant to section 270C.30.
319.11EFFECTIVE DATE.This section is effective the day following final enactment.

319.12    Sec. 42. Minnesota Statutes 2016, section 297F.09, subdivision 1, is amended to read:
319.13    Subdivision 1. Monthly return; cigarette distributor. On or before the 18th day of
319.14each calendar month, a distributor with a place of business in this state shall file a return
319.15with the commissioner showing the quantity of cigarettes manufactured or brought in from
319.16outside the state or purchased during the preceding calendar month and the quantity of
319.17cigarettes sold or otherwise disposed of in this state and outside this state during that month.
319.18A licensed distributor outside this state shall in like manner file a return showing the quantity
319.19of cigarettes shipped or transported into this state during the preceding calendar month.
319.20Returns must be made in the form and manner prescribed by The commissioner shall
319.21prescribe the content, format, and manner of returns pursuant to section 270C.30, and the
319.22returns must contain any other information required by the commissioner. The return must
319.23be accompanied by a remittance for the full unpaid tax liability shown by it. For distributors
319.24subject to the accelerated tax payment requirements in subdivision 10, the return for the
319.25May liability is due two business days before June 30th of the year and the return for the
319.26June liability is due on or before August 18th of the year.
319.27EFFECTIVE DATE.This section is effective the day following final enactment.

319.28    Sec. 43. Minnesota Statutes 2016, section 297F.23, is amended to read:
319.29297F.23 JUDICIAL REVIEW.
319.30In lieu of an administrative appeal under section 270C.35, a person aggrieved by an
319.31order of the commissioner fixing a tax, penalty, or interest under this chapter may, within
319.3260 days from the notice date of the notice of the order, appeal to the Tax Court in the manner
320.1provided under section 271.06. For purposes of this section, "notice date" means the notice
320.2date designated by the commissioner on the order fixing a tax, penalty, or interest.
320.3EFFECTIVE DATE.This section is effective for orders dated after December 31,
320.42017.

320.5    Sec. 44. Minnesota Statutes 2016, section 297G.09, subdivision 1, is amended to read:
320.6    Subdivision 1. Monthly returns; manufacturers, wholesalers, brewers, or importers.
320.7On or before the 18th day of each calendar month following the month in which a licensed
320.8manufacturer or wholesaler first sells wine and distilled spirits within the state, or a brewer
320.9or importer first sells or imports fermented malt beverages, or a wholesaler knowingly
320.10acquires title to or possession of untaxed fermented malt beverages, the licensed
320.11manufacturer, wholesaler, brewer, or importer liable for the excise tax must file a return
320.12with the commissioner, and in addition must keep records and render reports as required
320.13by the commissioner. Returns must be made in a form and manner prescribed by the
320.14commissioner, and The commissioner shall prescribe the content, format, and manner of
320.15returns pursuant to section 270C.30. The returns must contain any other information required
320.16by the commissioner. Returns must be accompanied by a remittance for the full unpaid tax
320.17liability. Returns must be filed regardless of whether a tax is due.
320.18EFFECTIVE DATE.This section is effective the day following final enactment.

320.19    Sec. 45. Minnesota Statutes 2016, section 297G.22, is amended to read:
320.20297G.22 JUDICIAL REVIEW.
320.21In lieu of an administrative appeal under this chapter, a person aggrieved by an order of
320.22the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 days
320.23from the date of the notice date of the order, appeal to the Tax Court in the manner provided
320.24under section 271.06. For purposes of this section, "notice date" means the notice date
320.25designated by the commissioner on the order fixing a tax, penalty, or interest.
320.26EFFECTIVE DATE.This section is effective for orders dated after December 31,
320.272017.

320.28    Sec. 46. Minnesota Statutes 2016, section 297I.30, is amended by adding a subdivision
320.29to read:
320.30    Subd. 11. Format. The commissioner shall prescribe the content, format, and manner
320.31of returns or other documents pursuant to section 270C.30.
321.1EFFECTIVE DATE.This section is effective the day following final enactment.

321.2    Sec. 47. Minnesota Statutes 2016, section 297I.60, subdivision 2, is amended to read:
321.3    Subd. 2. Remedies. (a) If the taxpayer is notified that the refund claim is denied in whole
321.4or in part, the taxpayer may contest the denial by:
321.5(1) filing an administrative appeal with the commissioner under section 270C.35;
321.6(2) filing an appeal in Tax Court within 60 days of the notice date of the notice of denial;
321.7or
321.8(3) filing an action in the district court to recover the refund.
321.9(b) An action in the district court must be brought within 18 months following of the
321.10notice date of the notice of denial. For purposes of this section, "notice date" has the meaning
321.11given in section 270C.35, subdivision 3. An action for refund of tax or surcharge must be
321.12brought in the district court of the district in which lies the taxpayer's principal place of
321.13business or in the District Court for Ramsey County. If a taxpayer files a claim for refund
321.14and the commissioner has not issued a denial of the claim, the taxpayer may bring an action
321.15in the district court or the Tax Court at any time after the expiration of six months from the
321.16time the claim was filed.
321.17EFFECTIVE DATE.This section is effective for claims for refund denied after
321.18December 31, 2017.

321.19    Sec. 48. Minnesota Statutes 2016, section 469.319, subdivision 5, is amended to read:
321.20    Subd. 5. Waiver authority. (a) The commissioner may waive all or part of a repayment
321.21required under subdivision 1, if the commissioner, in consultation with the commissioner
321.22of employment and economic development and appropriate officials from the local
321.23government units in which the qualified business is located, determines that requiring
321.24repayment of the tax is not in the best interest of the state or the local government units and
321.25the business ceased operating as a result of circumstances beyond its control including, but
321.26not limited to:
321.27    (1) a natural disaster;
321.28    (2) unforeseen industry trends; or
321.29    (3) loss of a major supplier or customer.
321.30    (b)(1) The commissioner shall waive repayment required under subdivision 1a if the
321.31commissioner has waived repayment by the operating business under subdivision 1, unless
322.1the person that received benefits without having to operate a business in the zone was a
322.2contributing factor in the qualified business becoming subject to repayment under subdivision
322.31;
322.4    (2) the commissioner shall waive the repayment required under subdivision 1a, even if
322.5the repayment has not been waived for the operating business if:
322.6    (i) the person that received benefits without having to operate a business in the zone and
322.7the business that operated in the zone are not related parties as defined in section 267(b) of
322.8the Internal Revenue Code of 1986, as amended through December 31, 2007; and
322.9    (ii) actions of the person were not a contributing factor in the qualified business becoming
322.10subject to repayment under subdivision 1.
322.11(c) Requests for waiver must be made no later than 60 days after the earlier of the notice
322.12date of an order issued under subdivision 4, paragraph (d), or the date of a tax statement
322.13issued under subdivision 4, paragraph (c). For purposes of this section, "notice date" means
322.14the notice date designated by the commissioner on the order.
322.15EFFECTIVE DATE.This section is effective for orders of the commissioner of revenue
322.16dated after December 31, 2017.

322.17    Sec. 49. Laws 2016, chapter 187, section 5, the effective date, is amended to read:
322.18EFFECTIVE DATE.This section is effective for orders and notices dated after
322.19September 30, 2015 December 31, 2017.
322.20EFFECTIVE DATE.This section is effective retroactively from September 30, 2015.


322.24    Section 1. Minnesota Statutes 2016, section 290C.03, is amended to read:
322.25290C.03 ELIGIBILITY REQUIREMENTS.
322.26(a) Land may be enrolled in the sustainable forest incentive program under this chapter
322.27if all of the following conditions are met:
322.28(1) the land consists of at least 20 contiguous acres and at least 50 percent of the land
322.29must meet the definition of forest land in section 88.01, subdivision 7, during the enrollment;
323.1(2) a forest management plan for the land must be (i) prepared by an approved plan
323.2writer and implemented during the period in which the land is enrolled, and (ii) registered
323.3with the Department of Natural Resources;
323.4(3) timber harvesting and forest management guidelines must be used in conjunction
323.5with any timber harvesting or forest management activities conducted on the land during
323.6the period in which the land is enrolled;
323.7(4) the land must be enrolled for a minimum of eight years;
323.8(5) there are no delinquent property taxes on the land; and
323.9(6) claimants enrolling more than 1,920 acres in the sustainable forest incentive program
323.10must allow year-round, nonmotorized access to fish and wildlife resources and motorized
323.11access on established and maintained roads and trails, unless the road or trail is temporarily
323.12closed for safety, natural resource, or road damage reasons on enrolled land except within
323.13one-fourth mile of a permanent dwelling or during periods of high fire hazard as determined
323.14by the commissioner of natural resources.; and
323.15(7) the land is not classified as 2c managed forest land.
323.16(b) Claimants required to allow access under paragraph (a), clause (6), do not by that
323.17action:
323.18(1) extend any assurance that the land is safe for any purpose;
323.19(2) confer upon the person the legal status of an invitee or licensee to whom a duty of
323.20care is owed; or
323.21(3) assume responsibility for or incur liability for any injury to the person or property
323.22caused by an act or omission of the person.
323.23(c) A minimum of three acres must be excluded from enrolled land when the land is
323.24improved with a structure that is not a minor, ancillary, or nonresidential structure. If land
323.25does not meet the definition of forest land in section 290C.02, subdivision 6, because the
323.26land is (1) enrolled in the reinvest in Minnesota program, (2) enrolled in a state or federal
323.27conservation reserve or easement program under sections 103F.501 to 103F.531, (3) subject
323.28to the Minnesota agricultural property tax under section 273.111, or (4) subject to agricultural
323.29land preservation controls or restrictions as defined in section 40A.02 or the Metropolitan
323.30Agricultural Preserves Act under chapter 473H, the entire parcel that contains the land is
323.31not eligible to be enrolled in the program.
324.1EFFECTIVE DATE.The amendment to paragraph (a), clause (2), is effective for
324.2certifications filed after July 1, 2018. The amendment adding paragraph (a), clause (7), is
324.3effective for certifications and applications due in 2017 and thereafter. The amendment
324.4adding paragraph (c) is effective the day following final enactment.

324.5    Sec. 2. [290C.051] VERIFICATION OF FOREST MANAGEMENT PLAN.
324.6On request of the commissioner, the commissioner of natural resources must annually
324.7provide verification that the claimant has a current forest management plan on file with the
324.8Department of Natural Resources.
324.9EFFECTIVE DATE.This section is effective for certifications filed after July 1, 2018.

324.10    Sec. 3. REPEALER.
324.11Minnesota Statutes 2016, sections 290C.02, subdivisions 5 and 9; and 290C.06, are
324.12repealed.
324.13EFFECTIVE DATE.This section is effective the day following final enactment.


324.17    Section 1. Minnesota Statutes 2016, section 290.0132, subdivision 21, is amended to read:
324.18    Subd. 21. Military service pension; retirement pay. To the extent included in federal
324.19taxable income, compensation received from a pension or other retirement pay from the
324.20federal government for service in the military, as computed under United States Code, title
324.2110, sections 1401 to 1414, 1447 to 1455, and 12733, is a subtraction. The subtraction must
324.22not include any amount used to claim the credit allowed under section 290.0677 is limited
324.23to individuals who do not claim the credit under section 290.0677.
324.24EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
324.25after December 31, 2015.

324.26    Sec. 2. Minnesota Statutes 2016, section 290A.03, subdivision 3, is amended to read:
324.27    Subd. 3. Income. (a) "Income" means the sum of the following:
324.28    (1) federal adjusted gross income as defined in the Internal Revenue Code; and
324.29    (2) the sum of the following amounts to the extent not included in clause (1):
325.1    (i) all nontaxable income;
325.2    (ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
325.3paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
325.4carryover allowed under section 469(b) of the Internal Revenue Code;
325.5    (iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
325.6solvent individual excluded from gross income under section 108(g) of the Internal Revenue
325.7Code;
325.8    (iv) cash public assistance and relief;
325.9    (v) any pension or annuity (including railroad retirement benefits, all payments received
325.10under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
325.11which was not exclusively funded by the claimant or spouse, or which was funded exclusively
325.12by the claimant or spouse and which funding payments were excluded from federal adjusted
325.13gross income in the years when the payments were made;
325.14    (vi) interest received from the federal or a state government or any instrumentality or
325.15political subdivision thereof;
325.16    (vii) workers' compensation;
325.17    (viii) nontaxable strike benefits;
325.18    (ix) the gross amounts of payments received in the nature of disability income or sick
325.19pay as a result of accident, sickness, or other disability, whether funded through insurance
325.20or otherwise;
325.21    (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
325.221986, as amended through December 31, 1995;
325.23    (xi) contributions made by the claimant to an individual retirement account, including
325.24a qualified voluntary employee contribution; simplified employee pension plan;
325.25self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
325.26the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
325.27Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
325.28the claimant and spouse;
325.29    (xii) to the extent not included in federal adjusted gross income, distributions received
325.30by the claimant or spouse from a traditional or Roth style retirement account or plan;
325.31    (xiii) nontaxable scholarship or fellowship grants;
325.32    (xiv) the amount of deduction allowed under section 199 of the Internal Revenue Code;
326.1    (xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
326.2Code;
326.3    (xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
326.4Code; and
326.5    (xvii) the amount deducted for certain expenses of elementary and secondary school
326.6teachers under section 62(a)(2)(D) of the Internal Revenue Code.
326.7    In the case of an individual who files an income tax return on a fiscal year basis, the
326.8term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
326.9the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
326.10by the amount of a net operating loss carryback or carryforward or a capital loss carryback
326.11or carryforward allowed for the year.
326.12    (b) "Income" does not include:
326.13    (1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
326.14    (2) amounts of any pension or annuity which was exclusively funded by the claimant
326.15or spouse and which funding payments were not excluded from federal adjusted gross
326.16income in the years when the payments were made;
326.17    (3) to the extent included in federal adjusted gross income, amounts contributed by the
326.18claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
326.19the retirement base amount reduced by the amount of contributions excluded from federal
326.20adjusted gross income, but not less than zero;
326.21    (4) surplus food or other relief in kind supplied by a governmental agency;
326.22    (5) relief granted under this chapter;
326.23    (6) child support payments received under a temporary or final decree of dissolution or
326.24legal separation; or
326.25    (7) restitution payments received by eligible individuals and excludable interest as
326.26defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
326.27Public Law 107-16.
326.28    (c) The sum of the following amounts may be subtracted from income:
326.29    (1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
326.30    (2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
326.31    (3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
327.1    (4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
327.2    (5) for the claimant's fifth dependent, the exemption amount; and
327.3    (6) if the claimant or claimant's spouse was disabled or attained the age of 65 on or
327.4before December 31 of the year for which the taxes were levied or rent paid, the exemption
327.5amount.
327.6    (d) For purposes of this subdivision, the "exemption amount" means the exemption
327.7amount under section 151(d) of the Internal Revenue Code for the taxable year for which
327.8the income is reported; "retirement base amount" means the deductible amount for the
327.9taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal Revenue
327.10Code, adjusted for inflation as provided in section 219(b)(5)(D)(C) of the Internal Revenue
327.11Code, without regard to whether the claimant or spouse claimed a deduction; and "traditional
327.12or Roth style retirement account or plan" means retirement plans under sections 401, 403,
327.13408, 408A, and 457 of the Internal Revenue Code.
327.14EFFECTIVE DATE.This section is effective the day following final enactment.

327.15    Sec. 3. Minnesota Statutes 2016, section 290A.10, is amended to read:
327.16290A.10 PROOF OF TAXES PAID.
327.17Every If requested by the commissioner of revenue, a claimant who files a claim for
327.18relief for property taxes payable shall include with the claim provide a property tax statement
327.19or a reproduction thereof in a form deemed satisfactory by the commissioner of revenue
327.20indicating that there are no delinquent property taxes on the homestead. Indication on the
327.21property tax statement from the county treasurer that there are no delinquent taxes on the
327.22homestead shall be sufficient proof. Taxes included in a confession of judgment under
327.23section 277.23 or 279.37 shall not constitute delinquent taxes as long as the claimant is
327.24current on the payments required to be made under section 277.23 or 279.37.
327.25EFFECTIVE DATE.This section is effective for refunds based on rent paid after
327.26December 31, 2015, and property taxes payable after December 31, 2016.

327.27    Sec. 4. Minnesota Statutes 2016, section 291.075, is amended to read:
327.28291.075 SPECIAL USE VALUATION OF QUALIFIED PROPERTY.
327.29If, after the final determination of the tax imposed by this chapter, the property valued
327.30pursuant to section 2032A of the Internal Revenue Code is disposed of or fails to qualify
327.31and an additional tax is imposed pursuant to section 2032A(c), any increase in the credit
328.1for state death taxes federal gross or taxable estate shall be reported to the commissioner
328.2within 90 days after final determination of the increased credit of the federal adjustment.
328.3Upon notification the commissioner may assess an additional tax in accordance with section
328.4291.03, subdivision 1 .
328.5EFFECTIVE DATE.This section is effective the day following final enactment.

328.6    Sec. 5. REPEALER.
328.7Minnesota Statutes 2016, sections 290.9743; and 290.9744, are repealed.
328.8EFFECTIVE DATE.This section is effective the day following final enactment.


328.12    Section 1. Minnesota Statutes 2016, section 270.078, subdivision 1, is amended to read:
328.13    Subdivision 1. Conformance to federal law. If any provision of sections 270.071 to
328.14270.079 is contrary to any provision of any law of the United States of America, hereinafter
328.15enacted, providing for or relating to the ad valorem taxation by a state of aircraft or flying
328.16equipment of an airline company, such provision shall be of no effect and the commissioner
328.17is authorized and directed to prescribe by rule such provisions as may be necessary to make
328.18sections 270.071 to 270.079 conform to the federal act and to effectuate the purposes of
328.19sections 270.071 to 270.079, provided such rules do not prescribe a rate of taxation higher
328.20than that provided in section 270.075 or a net tax capacity based on a percentage higher
328.21than that provided in section 270.074, subdivision 2 3.
328.22EFFECTIVE DATE.This section is effective the day following final enactment.

328.23    Sec. 2. Minnesota Statutes 2016, section 273.0755, is amended to read:
328.24273.0755 TRAINING AND EDUCATION OF PROPERTY TAX PERSONNEL.
328.25(a) Beginning with the four-year period starting on July 1, 2000, every person licensed
328.26by the state Board of Assessors at the Accredited Minnesota Assessor level or higher, shall
328.27successfully complete a weeklong Minnesota laws course sponsored by the Department of
328.28Revenue at least once in every four-year period. An assessor need not attend the course if
328.29they successfully pass the test for the course.
328.30(b) The commissioner of revenue may require that each county, and each city for which
328.31the city assessor performs the duties of county assessor, have (i) a person on the assessor's
329.1staff who is certified by the Department of Revenue in sales ratio calculations, (ii) an officer
329.2or employee who is certified by the Department of Revenue in tax calculations, and (iii) an
329.3officer or employee who is certified by the Department of Revenue in the proper preparation
329.4of abstracts of assessment. The commissioner of revenue may require that each county have
329.5an officer or employee who is certified by the Department of Revenue in the proper
329.6preparation of abstracts of tax lists. Certifications under this paragraph expire after four
329.7years.
329.8(c) Beginning with the four-year educational licensing period starting on July 1, 2004,
329.9every Minnesota assessor licensed by the State Board of Assessors must attend and participate
329.10in a seminar that focuses on ethics, professional conduct and the need for standardized
329.11assessment practices developed and presented by the commissioner of revenue. This
329.12requirement must be met at least once in every subsequent four-year period. This requirement
329.13applies to all assessors licensed for one year or more in the four-year period.
329.14EFFECTIVE DATE.This section is effective the day following final enactment.

329.15    Sec. 3. Minnesota Statutes 2016, section 273.135, subdivision 1, is amended to read:
329.16    Subdivision 1. Reduction in tax; tax relief area. The property tax to be paid in respect
329.17to property taxable within a tax relief area as defined in section 273.134, paragraph (b), on
329.18homestead property, as otherwise determined by law and regardless of the market value of
329.19the property, and on nonhomestead portions of property classified as both homestead and
329.20nonhomestead property as provided in section 273.124, subdivision 11, for all purposes
329.21shall be reduced in the amount prescribed by subdivision 2, subject to the limitations
329.22contained therein.
329.23EFFECTIVE DATE.This section is effective the day following final enactment.

329.24    Sec. 4. Minnesota Statutes 2016, section 414.09, subdivision 2, is amended to read:
329.25    Subd. 2. Transmittal of order. The chief administrative law judge shall see that copies
329.26of the order are mailed to all parties entitled to mailed notice of hearing under subdivision
329.271, the secretary of state, the Department of Revenue, the state demographer, individual
329.28property owners if initiated in that manner, affected county auditor, and any other party of
329.29record. The affected county auditor shall record the order against the affected property.
329.30EFFECTIVE DATE.This section is effective the day following final enactment.

330.1    Sec. 5. Minnesota Statutes 2016, section 477A.0124, subdivision 2, is amended to read:
330.2    Subd. 2. Definitions. (a) For the purposes of this section, the following terms have the
330.3meanings given them.
330.4    (b) "County program aid" means the sum of "county need aid," "county tax base
330.5equalization aid," and "county transition aid."
330.6    (c) "Age-adjusted population" means a county's population multiplied by the county age
330.7index.
330.8    (d) "County age index" means the percentage of the population over age 65 and over
330.9within the county divided by the percentage of the population over age 65 and over within
330.10the state, except that the age index for any county may not be greater than 1.8 nor less than
330.110.8.
330.12    (e) "Population over age 65 and over" means the population over age 65 and over
330.13established as of July 15 in an aid calculation year by the most recent federal census, by a
330.14special census conducted under contract with the United States Bureau of the Census, by a
330.15population estimate made by the Metropolitan Council, or by a population estimate of the
330.16state demographer made pursuant to section 4A.02, whichever is the most recent as to the
330.17stated date of the count or estimate for the preceding calendar year and which has been
330.18certified to the commissioner of revenue on or before July 15 of the aid calculation year. A
330.19revision to an estimate or count is effective for these purposes only if certified to the
330.20commissioner on or before July 15 of the aid calculation year. Clerical errors in the
330.21certification or use of estimates and counts established as of July 15 in the aid calculation
330.22year are subject to correction within the time periods allowed under section 477A.014.
330.23    (f) "Part I crimes" means the three-year average annual number of Part I crimes reported
330.24for each county by the Department of Public Safety for the most recent years available. By
330.25July 1 of each year, the commissioner of public safety shall certify to the commissioner of
330.26revenue the number of Part I crimes reported for each county for the three most recent
330.27calendar years available.
330.28    (g) "Households receiving food stamps" means the average monthly number of
330.29households receiving food stamps for the three most recent years for which data is available.
330.30By July 1 of each year, the commissioner of human services must certify to the commissioner
330.31of revenue the average monthly number of households in the state and in each county that
330.32receive food stamps, for the three most recent calendar years available.
331.1    (h) "County net tax capacity" means the county's adjusted net tax capacity under section
331.2273.1325 .
331.3EFFECTIVE DATE.This section is effective the day following final enactment.

331.4    Sec. 6. Minnesota Statutes 2016, section 477A.013, subdivision 1, is amended to read:
331.5    Subdivision 1. Towns. (a) In 2014 and thereafter, each town is eligible for a distribution
331.6under this subdivision equal to the product of (i) its agricultural property factor, (ii) its town
331.7area factor, (iii) its population factor, and (iv) 0.0045. As used in this subdivision, the
331.8following terms have the meanings given them:
331.9(1) "agricultural property factor" means the ratio of the adjusted net tax capacity of
331.10agricultural property located in a town, divided by to the adjusted net tax capacity of all
331.11other property located in the town. The agricultural property factor cannot exceed eight;
331.12(2) "agricultural property" means property classified under section 273.13, as homestead
331.13and nonhomestead agricultural property, rural vacant land, and noncommercial seasonal
331.14recreational property;
331.15(3) "town area factor" means the most recent estimate of total acreage, not to exceed
331.1650,000 acres, located in the township available as of July 1 in the aid calculation year,
331.17estimated or established by:
331.18(i) the United States Bureau of the Census;
331.19(ii) the State Land Management Information Center; or
331.20(iii) the secretary of state; and
331.21(4) "population factor" means the square root of the towns' population.
331.22(b) If the sum of the aids payable to all towns under this subdivision exceeds the limit
331.23under section 477A.03, subdivision 2c, the distribution to each town must be reduced
331.24proportionately so that the total amount of aids distributed under this section does not exceed
331.25the limit in section 477A.03, subdivision 2c.
331.26(c) Data used in calculating aids to towns under this subdivision, other than acreage,
331.27shall be the most recently available data as of January 1 in the year in which the aid is
331.28calculated.
331.29EFFECTIVE DATE.This section is effective the day following final enactment.


332.4    Section 1. Minnesota Statutes 2016, section 270C.171, subdivision 1, is amended to read:
332.5    Subdivision 1. Definitions. (a) If a special law grants a local government unit or group
332.6of units the authority to impose a local tax other than sales tax, including but not limited to
332.7taxes such as lodging, entertainment, admissions, or food and beverage taxes, and the
332.8Department of Revenue either has agreed to or is required to administer the tax, such that
332.9the tax is reported and paid with the chapter 297A taxes, then the local government unit or
332.10group of units must adopt each definition term used in the special law is defined as follows:
332.11(1) the definition must be identical to the definition found as defined in chapter 297A
332.12or in Minnesota Rules, chapter 8130; or
332.13(2) if the specific term is not defined either in chapter 297A or in Minnesota Rules,
332.14chapter 8130, then the definition must be defined consistent with the position of the
332.15Department of Revenue as to the extent of the tax base.
332.16(b) This subdivision does not apply to terms that are defined by the authorizing special
332.17law.
332.18(c) This subdivision applies notwithstanding whether a local government unit or group
332.19of units adopts consistent definitions into local law.
332.20EFFECTIVE DATE.This section is effective the day following final enactment.

332.21    Sec. 2. Minnesota Statutes 2016, section 298.01, subdivision 3, is amended to read:
332.22    Subd. 3. Occupation tax; other ores. Every person engaged in the business of mining,
332.23refining, or producing ores, metals, or minerals in this state, except iron ore or taconite
332.24concentrates, shall pay an occupation tax to the state of Minnesota as provided in this
332.25subdivision. For purposes of this subdivision, mining includes the application of
332.26hydrometallurgical processes. Hydrometallurgical processes are processes that extract the
332.27ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and recover
332.28the ore, metal, or mineral. The tax is determined in the same manner as the tax imposed by
332.29section 290.02, except that sections 290.05, subdivision 1, clause (a), 290.17, subdivision
332.304 , and 290.191, subdivision 2, do not apply, and the occupation tax must be computed by
332.31applying to taxable income the rate of 2.45 percent. A person subject to occupation tax
333.1under this section shall apportion its net income on the basis of the percentage obtained by
333.2taking the sum of:
333.3    (1) 75 percent of the percentage which the sales made within this state in connection
333.4with the trade or business during the tax period are of the total sales wherever made in
333.5connection with the trade or business during the tax period;
333.6    (2) 12.5 percent of the percentage which the total tangible property used by the taxpayer
333.7in this state in connection with the trade or business during the tax period is of the total
333.8tangible property, wherever located, used by the taxpayer in connection with the trade or
333.9business during the tax period; and
333.10    (3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
333.11in this state or paid in respect to labor performed in this state in connection with the trade
333.12or business during the tax period are of the taxpayer's total payrolls paid or incurred in
333.13connection with the trade or business during the tax period.
333.14    The tax is in addition to all other taxes.
333.15EFFECTIVE DATE.This section is effective the day following final enactment.

333.16    Sec. 3. Minnesota Statutes 2016, section 298.01, subdivision 4, is amended to read:
333.17    Subd. 4. Occupation tax; iron ore; taconite concentrates. A person engaged in the
333.18business of mining or producing of iron ore, taconite concentrates or direct reduced ore in
333.19this state shall pay an occupation tax to the state of Minnesota. The tax is determined in the
333.20same manner as the tax imposed by section 290.02, except that sections 290.05, subdivision
333.211 , clause (a), 290.17, subdivision 4, and 290.191, subdivision 2, do not apply, and the
333.22occupation tax shall be computed by applying to taxable income the rate of 2.45 percent.
333.23A person subject to occupation tax under this section shall apportion its net income on the
333.24basis of the percentage obtained by taking the sum of:
333.25(1) 75 percent of the percentage which the sales made within this state in connection
333.26with the trade or business during the tax period are of the total sales wherever made in
333.27connection with the trade or business during the tax period;
333.28(2) 12.5 percent of the percentage which the total tangible property used by the taxpayer
333.29in this state in connection with the trade or business during the tax period is of the total
333.30tangible property, wherever located, used by the taxpayer in connection with the trade or
333.31business during the tax period; and
334.1(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
334.2in this state or paid in respect to labor performed in this state in connection with the trade
334.3or business during the tax period are of the taxpayer's total payrolls paid or incurred in
334.4connection with the trade or business during the tax period.
334.5The tax is in addition to all other taxes.
334.6EFFECTIVE DATE.This section is effective the day following final enactment.

334.7    Sec. 4. Minnesota Statutes 2016, section 298.24, subdivision 1, is amended to read:
334.8    Subdivision 1. Imposed; calculation. (a) For concentrate produced in 2013, there is
334.9imposed upon taconite and iron sulphides, and upon the mining and quarrying thereof, and
334.10upon the production of iron ore concentrate therefrom, and upon the concentrate so produced,
334.11a tax of $2.56 per gross ton of merchantable iron ore concentrate produced therefrom. The
334.12tax is also imposed upon other iron-bearing material.
334.13    (b) For concentrates produced in 2014 and subsequent years, the tax rate shall be equal
334.14to the preceding year's tax rate plus an amount equal to the preceding year's tax rate multiplied
334.15by the percentage increase in the implicit price deflator from the fourth quarter of the second
334.16preceding year to the fourth quarter of the preceding year. "Implicit price deflator" means
334.17the implicit price deflator for the gross domestic product prepared by the Bureau of Economic
334.18Analysis of the United States Department of Commerce.
334.19    (c) An additional tax is imposed equal to three cents per gross ton of merchantable iron
334.20ore concentrate for each one percent that the iron content of the product exceeds 72 percent,
334.21when dried at 212 degrees Fahrenheit.
334.22    (d) The tax on taconite and iron sulphides shall be imposed on the average of the
334.23production for the current year and the previous two years. The rate of the tax imposed will
334.24be the current year's tax rate. This clause shall not apply in the case of the closing of a
334.25taconite facility if the property taxes on the facility would be higher if this clause and section
334.26298.25 were not applicable. The tax on other iron-bearing material shall be imposed on the
334.27current year production.
334.28    (e) The tax under paragraph (a) is also imposed upon other iron-bearing material. The
334.29tax on other iron-bearing material shall be imposed on the current year production. The rate
334.30of the tax imposed is the current year's tax rate.
334.31    (e) (f) If the tax or any part of the tax imposed by this subdivision is held to be
334.32unconstitutional, a tax of $2.56 per gross ton of merchantable iron ore concentrate produced
334.33shall be imposed.
335.1    (f) (g) Consistent with the intent of this subdivision to impose a tax based upon the
335.2weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly
335.3determine the weight of merchantable iron ore concentrate included in fluxed pellets by
335.4subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic flux
335.5additives included in the pellets from the weight of the pellets. For purposes of this paragraph,
335.6"fluxed pellets" are pellets produced in a process in which limestone, dolomite, olivine, or
335.7other basic flux additives are combined with merchantable iron ore concentrate. No
335.8subtraction from the weight of the pellets shall be allowed for binders, mineral and chemical
335.9additives other than basic flux additives, or moisture.
335.10    (g) (h)(1) Notwithstanding any other provision of this subdivision, for the first two years
335.11of a plant's commercial production of direct reduced ore from ore mined in this state, no
335.12tax is imposed under this section. As used in this paragraph, "commercial production" is
335.13production of more than 50,000 tons of direct reduced ore in the current year or in any prior
335.14year, "noncommercial production" is production of 50,000 tons or less of direct reduced
335.15ore in any year, and "direct reduced ore" is ore that results in a product that has an iron
335.16content of at least 75 percent. For the third year of a plant's commercial production of direct
335.17reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate otherwise
335.18determined under this subdivision. For the fourth commercial production year, the rate is
335.1950 percent of the rate otherwise determined under this subdivision; for the fifth commercial
335.20production year, the rate is 75 percent of the rate otherwise determined under this subdivision;
335.21and for all subsequent commercial production years, the full rate is imposed.
335.22    (2) Subject to clause (1), production of direct reduced ore in this state is subject to the
335.23tax imposed by this section, but if that production is not produced by a producer of taconite,
335.24iron sulfides, or other iron-bearing material, the production of taconite, iron sulfides, or
335.25other iron-bearing material, that is consumed in the production of direct reduced iron ore
335.26in this state is not subject to the tax imposed by this section on taconite, iron sulfides, or
335.27other iron-bearing material.
335.28    (3) Notwithstanding any other provision of this subdivision, no tax is imposed on direct
335.29reduced ore under this section during the facility's noncommercial production of direct
335.30reduced ore. The taconite or iron sulphides consumed in the noncommercial production of
335.31direct reduced ore is subject to the tax imposed by this section on taconite and iron sulphides.
335.32Three-year average production of direct reduced ore does not include production of direct
335.33reduced ore in any noncommercial year. Three-year average production for a direct reduced
335.34ore facility that has noncommercial production is the average of the commercial production
335.35of direct reduced ore for the current year and the previous two commercial years.
336.1    (4) This paragraph applies only to plants for which all environmental permits have been
336.2obtained and construction has begun before July 1, 2008.
336.3EFFECTIVE DATE.This section is effective the day following final enactment.

336.4    Sec. 5. Minnesota Statutes 2016, section 298.28, subdivision 2, is amended to read:
336.5    Subd. 2. City or town where quarried or produced. (a) 4.5 cents per gross ton of
336.6merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus the amount
336.7provided in paragraph (c), must be allocated to the city or town in the county in which the
336.8lands from which taconite was mined or quarried were located or within which the
336.9concentrate was produced. If the mining, quarrying, and concentration, or different steps
336.10in either thereof are carried on in more than one taxing district, the commissioner shall
336.11apportion equitably the proceeds of the part of the tax going to cities and towns among such
336.12subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to the operation
336.13of mining or quarrying the taconite, and the remainder to the concentrating plant and to the
336.14processes of concentration, and with respect to each thereof giving due consideration to the
336.15relative extent of such operations performed in each such taxing district. The commissioner's
336.16order making such apportionment shall be subject to review by the Tax Court at the instance
336.17of any of the interested taxing districts, in the same manner as other orders of the
336.18commissioner.
336.19(b)(1) Four cents per taxable ton shall be allocated to cities and organized townships
336.20affected by mining because their boundaries are within three miles of a taconite mine pit
336.21that:
336.22(i) was actively mined by LTV Steel Mining Company in 1999; or
336.23(ii) has been actively mined in at least one of the prior three years.
336.24(2) If a city or town is located near more than one mine meeting these the criteria under
336.25this paragraph, the city or town is eligible to receive aid calculated from only the mine
336.26producing the largest taxable tonnage. When more than one municipality qualifies for aid
336.27based on one company's production, the aid must be apportioned among the municipalities
336.28in proportion to their populations. The amounts distributed under this paragraph to each
336.29municipality must be used for infrastructure improvement projects.
336.30(c) The amount that would have been computed for the current year under Minnesota
336.31Statutes 2008, section 126C.21, subdivision 4, for a school district shall be distributed to
336.32the cities and townships within the school district in the proportion that their taxable net tax
337.1capacity within the school district bears to the taxable net tax capacity of the school district
337.2for property taxes payable in the year prior to distribution.
337.3EFFECTIVE DATE.This section is effective the day following final enactment.

337.4    Sec. 6. Minnesota Statutes 2016, section 298.28, subdivision 5, is amended to read:
337.5    Subd. 5. Counties. (a) 21.05 cents per taxable ton for distributions in 2015 through 2023,
337.6and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated to counties
337.7to be distributed, based upon certification by the commissioner of revenue, under paragraphs
337.8(b) to (d).
337.9    (b) 10.525 cents per taxable ton shall be distributed to the county in which the taconite
337.10is mined or quarried or in which the concentrate is produced, less any amount which is to
337.11be distributed pursuant to paragraph (c). The apportionment formula prescribed in subdivision
337.122 is the basis for the distribution.
337.13    (c) If 1.0 cent per taxable ton of the tax distributed to the counties under paragraph (b)
337.14shall be paid to a county that received a distribution under this section in 2000 because there
337.15was located in the county an electric power plant owned by and providing the primary source
337.16of power for a taxpayer mining and concentrating taconite is located in a different county
337.17other than the county in which the mining and the concentrating processes are conducted,
337.18one cent per taxable ton of the tax distributed to the counties pursuant to paragraph (b) and
337.19imposed on and collected from such taxpayer shall be paid to the county in which the power
337.20plant is located.
337.21    (d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525 cents
337.22per taxable ton for distributions beginning in 2024, shall be paid to the county from which
337.23the taconite was mined, quarried or concentrated to be deposited in the county road and
337.24bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those
337.25processes are carried on in more than one county, the commissioner shall follow the
337.26apportionment formula prescribed in subdivision 2.
337.27EFFECTIVE DATE.This section is effective the day following final enactment.


337.31    Section 1. Minnesota Statutes 2016, section 270.074, subdivision 1, is amended to read:
338.1    Subdivision 1. Valuation. The commissioner shall determine the market valuation of
338.2all flight property operated or used by every airline company in air commerce in this state.
338.3The valuation apportioned to this state of such flight property shall be the proportion of the
338.4total valuation thereof determined on the basis of the total of the following percentages:
338.5(1) 33-1/3 percent of the percentage which the total tonnage of passengers, express and
338.6freight first received by the airline company in this state during the preceding calendar year
338.7plus the total tonnage of passengers, express and freight finally discharged by it within this
338.8state during the preceding calendar year is of the total of such tonnage first received by the
338.9airline company or finally discharged by it, within and without this state during the preceding
338.10calendar year.
338.11(2) 33-1/3 percent of the percentage which, in equated plane hours, the total time of all
338.12aircraft of the airline company in flight in this state during the preceding calendar year, is
338.13of the total of such time in flight within and without this state during the preceding calendar
338.14year.
338.15(3) 33-1/3 (1) 50 percent of the percentage which the number of revenue ton miles of
338.16passengers, mail, express and freight flown by the airline company within this state during
338.17the preceding calendar year is of the total number of such miles flown by it within and
338.18without this state during the preceding calendar year.
338.19(2) 50 percent of the percentage that the total departures performed by the airline company
338.20within this state during the preceding calendar year is of the total departures performed
338.21within and without this state during the preceding calendar year.
338.22EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.

338.23    Sec. 2. Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read:
338.24    Subdivision 1. Statement of exemption. (a) Except in the case of property owned by
338.25the state of Minnesota or any political subdivision thereof, and property exempt from taxation
338.26under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times
338.27provided in subdivision 3, a taxpayer claiming an exemption from taxation on property
338.28described in section 272.02, subdivisions 2 to 33, must file a statement of exemption with
338.29the assessor of the assessment district in which the property is located. By February 1, 2018,
338.30and by February 1 of each third year thereafter, the commissioner of revenue shall publish
338.31on its Web site a list of the exemptions for which a taxpayer claiming an exemption must
338.32file a statement of exemption. The commissioner's requirement that a taxpayer file a statement
339.1of exemption pursuant to this subdivision shall not be considered a rule and is not subject
339.2to the Administrative Procedure Act, chapter 14.
339.3(b) A taxpayer claiming an exemption from taxation on property described in section
339.4272.02, subdivision 10 , must file a statement of exemption with the commissioner of revenue,
339.5on or before February 15 of each year for which the taxpayer claims an exemption.
339.6(c) In case of sickness, absence or other disability or for good cause, the assessor or the
339.7commissioner may extend the time for filing the statement of exemption for a period not to
339.8exceed 60 days.
339.9(d) The commissioner of revenue shall prescribe the form and contents of the statement
339.10of exemption.
339.11EFFECTIVE DATE.This section is effective for applications for exemption submitted
339.12in 2018 and thereafter.

339.13    Sec. 3. Minnesota Statutes 2016, section 272.0295, is amended by adding a subdivision
339.14to read:
339.15    Subd. 8. Extension. The commissioner may, for good cause, extend the time for filing
339.16the report required by subdivision 4. The extension must not exceed 15 days.
339.17EFFECTIVE DATE.This section is effective for reports filed in 2018 and thereafter.

339.18    Sec. 4. Minnesota Statutes 2016, section 272.115, subdivision 1, is amended to read:
339.19    Subdivision 1. Requirement. Except as otherwise provided in subdivision 5 or 6,
339.20whenever any real estate is sold for a consideration in excess of $1,000 $1,500, whether by
339.21warranty deed, quitclaim deed, contract for deed or any other method of sale, the grantor,
339.22grantee or the legal agent of either shall file a certificate of value with the county auditor
339.23in the county in which the property is located when the deed or other document is presented
339.24for recording. Contract for deeds are subject to recording under section 507.235, subdivision
339.251 . Value shall, in the case of any deed not a gift, be the amount of the full actual consideration
339.26thereof, paid or to be paid, including the amount of any lien or liens assumed. The items
339.27and value of personal property transferred with the real property must be listed and deducted
339.28from the sale price. The certificate of value shall include the classification to which the
339.29property belongs for the purpose of determining the fair market value of the property, and
339.30shall include any proposed change in use of the property known to the person filing the
339.31certificate that could change the classification of the property. The certificate shall include
339.32financing terms and conditions of the sale which are necessary to determine the actual,
340.1present value of the sale price for purposes of the sales ratio study. If the property is being
340.2acquired as part of a like-kind exchange under section 1031 of the Internal Revenue Code
340.3of 1986, as amended through December 31, 2006, that must be indicated on the certificate.
340.4The commissioner of revenue shall promulgate administrative rules specifying the financing
340.5terms and conditions which must be included on the certificate. The certificate of value
340.6must include the Social Security number or the federal employer identification number of
340.7the grantors and grantees. However, a married person who is not an owner of record and
340.8who is signing a conveyance instrument along with the person's spouse solely to release
340.9and convey their marital interest, if any, in the real property being conveyed is not a grantor
340.10for the purpose of the preceding sentence. A statement in the deed that is substantially in
340.11the following form is sufficient to allow the county auditor to accept a certificate for filing
340.12without the Social Security number of the named spouse: "(Name) claims no ownership
340.13interest in the real property being conveyed and is executing this instrument solely to release
340.14and convey a marital interest, if any, in that real property." The identification numbers of
340.15the grantors and grantees are private data on individuals or nonpublic data as defined in
340.16section 13.02, subdivisions 9 and 12, but, notwithstanding that section, the private or
340.17nonpublic data may be disclosed to the commissioner of revenue for purposes of tax
340.18administration. The information required to be shown on the certificate of value is limited
340.19to the information required as of the date of the acknowledgment on the deed or other
340.20document to be recorded. The commissioner's determination of the amount for which a
340.21certificate of value is required pursuant to this subdivision shall not be considered a rule
340.22and is not subject to the Administrative Procedure Act, chapter 14.
340.23EFFECTIVE DATE.This section is effective for certificates of value filed after
340.24December 31, 2017.

340.25    Sec. 5. Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read:
340.26    Subd. 2. Form; information required. The certificate of value shall require such facts
340.27and information as may be determined by the commissioner to be reasonably necessary in
340.28the administration of the state education aid formulas. The form of the certificate of value
340.29shall be prescribed by the Department of Revenue which shall provide an adequate supply
340.30of forms to each county auditor.
340.31EFFECTIVE DATE.This section is effective the day following final enactment.

341.1    Sec. 6. Minnesota Statutes 2016, section 272.115, subdivision 3, is amended to read:
341.2    Subd. 3. Copies transmitted; homestead status. The county auditor shall transmit two
341.3true copies of the certificate of value to the assessor who shall insert into the certificate of
341.4value the most recent market value and when available, the year of original construction of
341.5each parcel of property on both copies, and shall transmit one copy the certificate of value
341.6to the Department of Revenue. Upon the request of a city council located within the county,
341.7a copy of each certificate of value for property located in that city shall be made available
341.8to the governing body of the city. The assessor shall remove the homestead classification
341.9for the following assessment year from a property which is sold or transferred, unless the
341.10grantee or the person to whom the property is transferred completes a homestead application
341.11under section 273.124, subdivision 13, and qualifies for homestead status.
341.12EFFECTIVE DATE.This section is effective for certificates of value filed after
341.13December 31, 2017.

341.14    Sec. 7. Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read:
341.15    Subd. 13. Homestead application. (a) A person who meets the homestead requirements
341.16under subdivision 1 must file a homestead application with the county assessor to initially
341.17obtain homestead classification.
341.18    (b) The format and contents of a uniform homestead application shall be prescribed by
341.19the commissioner of revenue. The application must clearly inform the taxpayer that this
341.20application must be signed by all owners who occupy the property or by the qualifying
341.21relative and returned to the county assessor in order for the property to receive homestead
341.22treatment.
341.23    (c) Every property owner applying for homestead classification must furnish to the
341.24county assessor the Social Security number of each occupant who is listed as an owner of
341.25the property on the deed of record, the name and address of each owner who does not occupy
341.26the property, and the name and Social Security number of each owner's spouse who occupies
341.27the property. The application must be signed by each owner who occupies the property and
341.28by each owner's spouse who occupies the property, or, in the case of property that qualifies
341.29as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
341.30    If a property owner occupies a homestead, the property owner's spouse may not claim
341.31another property as a homestead unless the property owner and the property owner's spouse
341.32file with the assessor an affidavit or other proof required by the assessor stating that the
341.33property qualifies as a homestead under subdivision 1, paragraph (e).
342.1    Owners or spouses occupying residences owned by their spouses and previously occupied
342.2with the other spouse, either of whom fail to include the other spouse's name and Social
342.3Security number on the homestead application or provide the affidavits or other proof
342.4requested, will be deemed to have elected to receive only partial homestead treatment of
342.5their residence. The remainder of the residence will be classified as nonhomestead residential.
342.6When an owner or spouse's name and Social Security number appear on homestead
342.7applications for two separate residences and only one application is signed, the owner or
342.8spouse will be deemed to have elected to homestead the residence for which the application
342.9was signed.
342.10    (d) If residential real estate is occupied and used for purposes of a homestead by a relative
342.11of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for
342.12the property to receive homestead status, a homestead application must be filed with the
342.13assessor. The Social Security number of each relative occupying the property and the name
342.14and Social Security number of the spouse of a relative occupying the property shall be
342.15required on the homestead application filed under this subdivision. If a different relative of
342.16the owner subsequently occupies the property, the owner of the property must notify the
342.17assessor within 30 days of the change in occupancy. The Social Security number of a relative
342.18occupying the property or relative's the spouse of a relative occupying the property is private
342.19data on individuals as defined by section 13.02, subdivision 12, but may be disclosed to the
342.20commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture
342.21Act to recover personal property taxes owing, to the county treasurer.
342.22    (e) The homestead application shall also notify the property owners that if the property
342.23is granted homestead status for any assessment year, that same property shall remain
342.24classified as homestead until the property is sold or transferred to another person, or the
342.25owners, the spouse of the owner, or the relatives no longer use the property as their
342.26homestead. Upon the sale or transfer of the homestead property, a certificate of value must
342.27be timely filed with the county auditor as provided under section 272.115. Failure to notify
342.28the assessor within 30 days that the property has been sold, transferred, or that the owner,
342.29the spouse of the owner, or the relative is no longer occupying the property as a homestead,
342.30shall result in the penalty provided under this subdivision and the property will lose its
342.31current homestead status.
342.32    (f) If a homestead application has not been filed with the county by December 15, the
342.33assessor shall classify the property as nonhomestead for the current assessment year for
342.34taxes payable in the following year, provided that the owner may be entitled to receive the
342.35homestead classification by proper application under section 375.192.
343.1EFFECTIVE DATE.This section is effective for applications for homestead filed in
343.22018 and thereafter.

343.3    Sec. 8. Minnesota Statutes 2016, section 273.124, subdivision 13d, is amended to read:
343.4    Subd. 13d. Homestead data. On or before April 30 each year beginning in 2007, each
343.5county must provide the commissioner with the following data for each parcel of homestead
343.6property by electronic means as defined in section 289A.02, subdivision 8:
343.7    (1) the property identification number assigned to the parcel for purposes of taxes payable
343.8in the current year;
343.9    (2) the name and Social Security number of each occupant of homestead property who
343.10is the property owner, property owner's spouse, or qualifying relative of a property owner,
343.11and the spouse of the property owner who occupies homestead property or spouse of a
343.12qualifying relative of a property owner who occupies homestead property;
343.13    (3) the classification of the property under section 273.13 for taxes payable in the current
343.14year and in the prior year;
343.15    (4) an indication of whether the property was classified as a homestead for taxes payable
343.16in the current year because of occupancy by a relative of the owner or by a spouse of a
343.17relative;
343.18    (5) the property taxes payable as defined in section 290A.03, subdivision 13, for the
343.19current year and the prior year;
343.20    (6) the market value of improvements to the property first assessed for tax purposes for
343.21taxes payable in the current year;
343.22    (7) the assessor's estimated market value assigned to the property for taxes payable in
343.23the current year and the prior year;
343.24    (8) the taxable market value assigned to the property for taxes payable in the current
343.25year and the prior year;
343.26    (9) whether there are delinquent property taxes owing on the homestead;
343.27    (10) the unique taxing district in which the property is located; and
343.28    (11) such other information as the commissioner decides is necessary.
343.29    The commissioner shall use the information provided on the lists as appropriate under
343.30the law, including for the detection of improper claims by owners, or relatives of owners,
343.31under chapter 290A.
344.1EFFECTIVE DATE.This section is effective for applications for homestead filed in
344.22018 and thereafter.

344.3    Sec. 9. Minnesota Statutes 2016, section 274.014, subdivision 3, is amended to read:
344.4    Subd. 3. Proof of compliance; transfer of duties. (a) Any city or town that conducts
344.5local boards of appeal and equalization meetings must provide proof to the county assessor
344.6by February 1 that it is in compliance comply with the training requirements of subdivision
344.72 by February 1, by having at least one member who has attended an appeals and equalization
344.8course described in subdivision 2 within the last four years. This notice must also verify
344.9that there was a quorum of voting members at each meeting of the board of appeal and
344.10equalization in the previous year. A city or town that does not comply with these requirements
344.11is deemed to have transferred its board of appeal and equalization powers to the county for
344.12a minimum of two assessment years, beginning with the current year's assessment and
344.13continuing thereafter unless the powers are reinstated under paragraph (c).
344.14    (b) The county shall notify the taxpayers when the board of appeal and equalization for
344.15a city or town has been transferred to the county under this subdivision and, prior to the
344.16meeting time of the county board of equalization, the county shall make available to those
344.17taxpayers a procedure for a review of the assessments, including, but not limited to, open
344.18book meetings. This alternate review process shall take place in April and May.
344.19    (c) A local board whose powers are transferred to the county under this subdivision may
344.20be reinstated by resolution of the governing body of the city or town and upon proof of
344.21compliance with the requirements of subdivision 2. The resolution and proofs must be
344.22provided to the county assessor by February 1 in order to be effective for the following
344.23year's assessment.
344.24    (d) A local board whose powers are transferred to the county under this subdivision may
344.25continue to employ a local assessor and is not deemed to have transferred its powers to
344.26make assessments.
344.27EFFECTIVE DATE.This section is effective for board of appeal and equalization
344.28meetings held in 2018 and thereafter.

344.29    Sec. 10. Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read:
344.30    Subd. 3. Proof of compliance; transfer of duties. (a) Any county that conducts county
344.31boards of appeal and equalization meetings must provide proof to the commissioner by
344.32December 1, 2009, and each year thereafter, that it is in compliance comply with the training
345.1requirements of subdivision 2 by February 1, by having at least one member who has attended
345.2an appeals and equalization course described in subdivision 2 within the last four years.
345.3Beginning in 2009, this notice must also verify that there was a quorum of voting members
345.4at each meeting of the board of appeal and equalization in the current year. A county that
345.5does not comply with these requirements is deemed to have transferred its board of appeal
345.6and equalization powers to the special board of equalization appointed pursuant to section
345.7274.13, subdivision 2 , for a minimum of two assessment years, beginning with the following
345.8year's assessment and continuing thereafter unless the powers are reinstated under paragraph
345.9(c). A county that does not comply with the requirements of subdivision 2 and has not
345.10appointed a special board of equalization shall appoint a special board of equalization before
345.11the following year's assessment.
345.12    (b) The county shall notify the taxpayers when the board of appeal and equalization for
345.13a county has been transferred to the special board of equalization under this subdivision
345.14and, prior to the meeting time of the special board of equalization, the county shall make
345.15available to those taxpayers a procedure for a review of the assessments, including, but not
345.16limited to, open book meetings. This alternate review process must take place in April and
345.17May.
345.18    (c) A county board whose powers are transferred to the special board of equalization
345.19under this subdivision may be reinstated by resolution of the county board and upon proof
345.20of compliance with the requirements of subdivision 2. The resolution and proofs must be
345.21provided to the commissioner by December 1 in order to be effective for the following
345.22year's assessment.
345.23(d) If a person who was entitled to appeal to the county board of appeal and equalization
345.24or to the county special board of equalization is not able to do so in a particular year because
345.25the county board or special board did not meet the quorum and training requirements in this
345.26section and section 274.13, or because the special board was not appointed, that person may
345.27instead appeal to the commissioner of revenue, provided that the appeal is received by the
345.28commissioner prior to August 1. The appeal is not subject to either chapter 14 or section
345.29270C.92 . The commissioner must issue an appropriate order to the county assessor in
345.30response to each timely appeal, either upholding or changing the valuation or classification
345.31of the property. Prior to October 1 of each year, the commissioner must charge and bill the
345.32county where the property is located $500 for each tax parcel covered by an order issued
345.33under this paragraph in that year. Amounts received by the commissioner under this paragraph
345.34must be deposited in the state's general fund. If payment of a billed amount is not received
345.35by the commissioner before December 1 of the year when billed, the commissioner must
346.1deduct that unpaid amount from any state aid the commissioner would otherwise pay to the
346.2county under chapter 477A in the next year. Late payments may either be returned to the
346.3county uncashed and undeposited or may be accepted. If a late payment is accepted, the
346.4state aid paid to the county under chapter 477A must be adjusted within 12 months to
346.5eliminate any reduction that occurred because the payment was late. Amounts needed to
346.6make these adjustments are included in the appropriation under section 477A.03, subdivision
346.72 .
346.8EFFECTIVE DATE.This section is effective for board of appeal and equalization
346.9meetings held in 2018 and thereafter.

346.10    Sec. 11. REPEALER.
346.11Minnesota Statutes 2016, section 270.074, subdivision 2, is repealed.
346.12EFFECTIVE DATE.This section is effective for assessment year 2018 and thereafter.


346.16    Section 1. Minnesota Statutes 2016, section 84.82, subdivision 10, is amended to read:
346.17    Subd. 10. Proof of sales tax payment; collection and refund. (a) A person applying
346.18for initial registration of a snowmobile must provide a snowmobile purchaser's certificate,
346.19showing a complete description of the snowmobile, the seller's name and address, the full
346.20purchase price of the snowmobile, and the trade-in allowance, if any. The certificate must
346.21include information showing either receipt, invoice, or other document to prove that:
346.22(1) that the sales and use tax under chapter 297A was paid or;
346.23(2) the purchase was exempt from tax under chapter 297A. The commissioner of public
346.24safety, in consultation with the commissioner and the commissioner of revenue, shall
346.25prescribe the form of the certificate.The certificate is not required if the applicant provides
346.26a receipt, invoice, or other document that shows; or
346.27(3) the snowmobile was purchased from a retailer that is maintaining a place of business
346.28in this state as defined in section 297A.66, subdivision 1, and is a dealer.
346.29(b) The commissioner or authorized deputy registrars, acting as agents of the
346.30commissioner of revenue under an agreement between the commissioner and the
346.31commissioner of revenue, as provided in section 297A.825:
347.1(1) must collect use tax from the applicant if the applicant does not provide the proof
347.2required under paragraph (a); and
347.3(2) are authorized to issue refunds of use tax paid to them in error.
347.4(c) Subdivision 11 does not apply to refunds under this subdivision.
347.5EFFECTIVE DATE.This section is effective for snowmobiles registered after June
347.630, 2017.

347.7    Sec. 2. Minnesota Statutes 2016, section 84.922, subdivision 11, is amended to read:
347.8    Subd. 11. Proof of sales tax payment; collection and refund. (a) A person applying
347.9for initial registration in Minnesota of an all-terrain vehicle shall must provide a purchaser's
347.10certificate showing a complete description of the all-terrain vehicle, the seller's name and
347.11address, the full purchase price of the all-terrain vehicle, and the trade-in allowance, if any.
347.12The certificate also must include information showing either receipt, invoice, or other
347.13document to prove that:
347.14(1) the sales and use tax under chapter 297A was paid, or;
347.15(2) the purchase was exempt from tax under chapter 297A. The certificate is not required
347.16if the applicant provides a receipt, invoice, or other document that shows; or
347.17(3) the all-terrain vehicle was purchased from a retailer that is maintaining a place of
347.18business in this state as defined in section 297A.66, subdivision 1, and is a dealer.
347.19(b) The commissioner or authorized deputy registrars, acting as agents of the
347.20commissioner of revenue under an agreement between the commissioner and the
347.21commissioner of revenue, as provided in section 297A.825:
347.22(1) must collect use tax from the applicant if the applicant does not provide the proof
347.23required under paragraph (a); and
347.24(2) are authorized to issue refunds of use tax paid to them in error.
347.25(c) Subdivision 12 does not apply to refunds under this subdivision.
347.26EFFECTIVE DATE.This section is effective for all-terrain vehicles registered after
347.27June 30, 2017.

347.28    Sec. 3. Minnesota Statutes 2016, section 86B.401, subdivision 12, is amended to read:
347.29    Subd. 12. Proof of sales tax payment; collection and refund. (a) A person applying
347.30for initial licensing of a watercraft must provide a watercraft purchaser's certificate, showing
348.1a complete description of the watercraft, the seller's name and address, the full purchase
348.2price of the watercraft, and the trade-in allowance, if any. The certificate must include
348.3information showing either receipt, invoice, or other document to prove that:
348.4(1) that the sales and use tax under chapter 297A was paid or;
348.5(2) the purchase was exempt from tax under chapter 297A. The commissioner of public
348.6safety, in consultation with the commissioner and the commissioner of revenue, shall
348.7prescribe the form of the certificate.The certificate is not required if the applicant provides
348.8a receipt, invoice, or other document that shows; or
348.9(3) the watercraft was purchased from a retailer that is maintaining a place of business
348.10in this state as defined in section 297A.66, subdivision 1, and is a dealer.
348.11(b) The commissioner or authorized deputy registrars, acting as agents of the
348.12commissioner of revenue under an agreement between the commissioner and the
348.13commissioner of revenue, as provided in section 297A.825:
348.14(1) must collect use tax from the applicant if the applicant does not provide the proof
348.15required under paragraph (a); and
348.16(2) are authorized to issue refunds of use tax paid to them in error.
348.17(c) Section 86B.415, subdivision 11, does not apply to refunds under this subdivision.
348.18EFFECTIVE DATE.This section is effective for watercraft licensed after June 30,
348.192017.

348.20    Sec. 4. Minnesota Statutes 2016, section 270B.14, is amended by adding a subdivision to
348.21read:
348.22    Subd. 20. Department of Natural Resources; authorized deputy registrars of motor
348.23vehicles. The commissioner may disclose return information related to the taxes imposed
348.24by chapter 297A to the Department of Natural Resources or an authorized deputy registrar
348.25of motor vehicles only:
348.26(1) if the commissioner has an agreement with the commissioner of natural resources
348.27under section 297A.825, subdivision 1; and
348.28(2) to the extent necessary for the Department of Natural Resources or an authorized
348.29deputy registrar of motor vehicles, as agents for the commissioner, to verify that the
348.30applicable sales or use tax has been paid or that a sales tax exemption applies on the purchase
348.31of a snowmobile, all-terrain vehicle, or watercraft, and to administer sections 84.82,
348.32subdivision 10; 84.922, subdivision 11; 86B.401, subdivision 12; and 297A.825, regarding
349.1either their collection of use tax or their issuance of refunds to applicants of use tax paid to
349.2them in error.
349.3EFFECTIVE DATE.This section is effective the day following final enactment.

349.4    Sec. 5. Minnesota Statutes 2016, section 270B.14, is amended by adding a subdivision to
349.5read:
349.6    Subd. 21. Department of Transportation. The commissioner may disclose return
349.7information related to the taxes imposed by chapter 297A to the Department of Transportation
349.8only:
349.9(1) if the commissioner has an agreement with the commissioner of transportation under
349.10section 297A.82, subdivision 7; and
349.11(2) to the extent necessary for the Department of Transportation, as agent for the
349.12commissioner, to verify that the applicable sales or use tax has been paid or that a sales tax
349.13exemption applies on the lease, purchase, or sale of an aircraft by an individual or business
349.14who owns and operates the aircraft that must be registered or licensed in Minnesota under
349.15section 360.018, and to otherwise administer section 297A.82, regarding the collection of
349.16tax by the Department of Transportation.
349.17EFFECTIVE DATE.This section is effective the day following final enactment.

349.18    Sec. 6. Minnesota Statutes 2016, section 289A.50, subdivision 2a, is amended to read:
349.19    Subd. 2a. Refund of sales tax to purchasers. (a) If a vendor has collected from a
349.20purchaser a tax on a transaction that is not subject to the tax imposed by chapter 297A, the
349.21purchaser may apply directly to the commissioner for a refund under this section if:
349.22(1) the purchaser is currently registered or was registered during the period of the claim,
349.23to collect and remit the sales tax or to remit the use tax; and
349.24(2) either
349.25(i) the amount of the refund to be applied for exceeds $500, or
349.26(ii) the amount of the refund to be applied for does not exceed $500, but the purchaser
349.27also applies for a capital equipment claim at the same time, and the total of the two refunds
349.28exceeds $500.
349.29(b) The purchaser may not file more than two applications for refund under this
349.30subdivision in a calendar year.
350.1(c) Refunds shall not be issued for sales for resale where the vendor has a published no
350.2resale policy.
350.3EFFECTIVE DATE.This section is effective the day following final enactment.

350.4    Sec. 7. Minnesota Statutes 2016, section 296A.01, subdivision 7, is amended to read:
350.5    Subd. 7. Aviation gasoline. "Aviation gasoline" means any gasoline that is capable of
350.6use for the purpose of producing or generating used to produce or generate power for
350.7propelling internal combustion engine aircraft, that meets the specifications in ASTM
350.8specification D910-11, and that either:.
350.9    (1) is Aviation gasoline includes any such gasoline invoiced and billed by a producer,
350.10manufacturer, refiner, or blender to a distributor or dealer, by a distributor to a dealer or
350.11consumer, or by a dealer to consumer, as "aviation gasoline"; or that meets specifications
350.12in ASTM specification D910-16 or any other ASTM specification as gasoline appropriate
350.13for use in producing or generating power for propelling internal combustion engine aircraft.
350.14    (2) whether or not invoiced and billed as provided in clause (1), is received, sold, stored,
350.15or withdrawn from storage by any person, to be used for the purpose of producing or
350.16generating power for propelling internal combustion engine aircraft.
350.17EFFECTIVE DATE.This section is effective the day following final enactment.

350.18    Sec. 8. [297A.825] SNOWMOBILES; ALL-TERRAIN VEHICLES; WATERCRAFT;
350.19PAYMENT OF TAXES; REFUNDS.
350.20    Subdivision 1. Agreement with commissioners of natural resources and public
350.21safety; collection and refunds. The commissioner may enter into an agreement with the
350.22commissioner of natural resources, in consultation with the commissioner of public safety,
350.23that provides that:
350.24(1) the commissioner of natural resources and authorized deputy registrars of motor
350.25vehicles must collect use tax on snowmobiles, all-terrain vehicles, and watercraft from
350.26persons applying for initial registration or license of the item unless the applicant provides
350.27a receipt, invoice, or other document to prove that:
350.28(i) sales tax was paid on the purchase;
350.29(ii) the purchase was exempt under this chapter;
350.30(iii) use tax was paid to the commissioner in a form prescribed by the commissioner; or
351.1(iv) the item was purchased from a retailer that is maintaining a place of business in this
351.2state as defined in section 297A.66, subdivision 1, and is a dealer as defined in section
351.384.81, subdivision 10; 84.92, subdivision 3; or 86B.005, subdivision 4; and
351.4(2) the commissioner of natural resources and authorized deputy registrars of motor
351.5vehicles are authorized to issue refunds of use tax paid to them in error, meaning that either
351.6the sales or use tax had already been paid or that the purchase was exempt from tax under
351.7this chapter.
351.8    Subd. 2. Agents. For the purposes of collecting or refunding the tax under this section,
351.9the commissioner of natural resources and authorized deputy registrars of motor vehicles
351.10are the agents of the commissioner and are subject to, and must strictly comply with, all
351.11rules consistent with this chapter prescribed by the commissioner.
351.12EFFECTIVE DATE.This section is effective the day following final enactment.

351.13    Sec. 9. Minnesota Statutes 2016, section 297B.07, is amended to read:
351.14297B.07 PRESUMPTIONS.
351.15    Subdivision 1. Presumption; sale and registration. For the purpose of the proper
351.16administration of Laws 1971, chapter 853 this chapter, and to prevent evasion of the tax,
351.17the following presumptions shall apply:
351.18(a) Evidence that a motor vehicle was sold for delivery in this state shall be prima facie
351.19evidence that it was sold for use in this state.
351.20(b) When an application for registration plates for a motor vehicle is received by the
351.21motor vehicle registrar within 30 days of the date it was purchased or acquired by the
351.22purchaser, it shall be presumed, until the contrary is shown by the purchaser, that it was
351.23purchased or acquired for use in this state. This presumption shall apply whether or not such
351.24vehicle was previously titled or registered in another state.
351.25    Subd. 2. Presumption; ownership. (a) When a business entity not organized under the
351.26laws of this state owns a motor vehicle that is under the control of a Minnesota resident, it
351.27is presumed that the Minnesota resident is the owner of the motor vehicle if two or more
351.28of the following are true:
351.29(1) the business entity lacks a specific business activity or purpose other than the
351.30avoidance of tax;
351.31(2) the business entity maintains no physical location in the jurisdiction where it is
351.32organized;
352.1(3) the business entity earns de minimis or no revenue;
352.2(4) the business entity maintains minimal or no business records;
352.3(5) the business entity fails to employ individual persons and provide those persons with
352.4federal income tax W-2 wage and tax statements; or
352.5(6) the business entity fails to file federal income tax returns or fails to file a required
352.6state tax return where it is organized.
352.7(b) For purposes of this subdivision, a motor vehicle is under the control of a Minnesota
352.8resident if the Minnesota resident:
352.9(1) is a partner, member, or shareholder of the business entity;
352.10(2) is insured to drive the vehicle; and
352.11(3) operates or stores the vehicle in Minnesota for any period of time.
352.12EFFECTIVE DATE.This section is effective the day following final enactment.

352.13    Sec. 10. Minnesota Statutes 2016, section 297I.30, subdivision 7, is amended to read:
352.14    Subd. 7. Surcharge. (a) By April 30 of each year, every company required to pay the
352.15surcharge under section 297I.10, subdivision 1, shall file a return for the five-month period
352.16ending March 31 in the form prescribed by the commissioner.
352.17(b) (a) By June 30 of each year, every company required to pay the surcharge under
352.18section 297I.10, subdivision 1, shall file a return for the two-month seven-month period
352.19ending May 31 in the form prescribed by the commissioner.
352.20(c) (b) By November 30 of each year, every company required to pay the surcharge
352.21under section 297I.10, subdivision 1, shall file a return for the five-month period ending
352.22October 31 in the form prescribed by the commissioner.
352.23EFFECTIVE DATE.This section is effective for returns due after October 31, 2017.

352.24    Sec. 11. REPEALER.
352.25Minnesota Rules, part 8125.1300, subpart 3, is repealed.
352.26EFFECTIVE DATE.This section is effective the day following final enactment.


353.3    Section 1. Minnesota Statutes 2016, section 270C.445, subdivision 2, is amended to read:
353.4    Subd. 2. Definitions. (a) For purposes of this section and sections 270C.4451 to
353.5270C.447, the following terms have the meanings given.
353.6(b) "Advertise" means to solicit business through any means or medium.
353.7(c) "Client" means an individual a person for whom a tax preparer performs or agrees
353.8to perform tax preparation services.
353.9(d) "Facilitate" means to individually or in conjunction or cooperation with another
353.10person:
353.11(1) accept an application for a refund anticipation loan;
353.12(2) pay to a client the proceeds, through direct deposit, a negotiable instrument, or any
353.13other means, of a refund anticipation loan; or
353.14(3) offer, arrange, process, provide, or in any other manner act to allow the making of,
353.15a refund anticipation loan.
353.16(e) "Person" means an individual, corporation, partnership, limited liability company,
353.17association, trustee, or other legal entity.
353.18(f) (e) "Refund anticipation check" means a negotiable instrument provided to a client
353.19by the tax preparer or another person, which is issued from the proceeds of a taxpayer's
353.20federal or state income tax refund or both and represents the net of the refund minus the tax
353.21preparation fee and any other fees. A refund anticipation check includes a refund transfer.
353.22(g) (f) "Refund anticipation loan" means a loan or any other extension of credit, whether
353.23provided by the tax preparer or another entity such as a financial institution, in anticipation
353.24of, and whose payment is secured by, a client's federal or state income tax refund or both.
353.25(h) (g) "Tax preparation services" means services provided for a fee or other consideration
353.26compensation to a client to:
353.27(1) assist with preparing or filing state or federal individual income tax returns a return;
353.28(2) assume final responsibility for completed work on an individual income tax a return
353.29on which preliminary work has been done by another; or
353.30(3) sign or include on a return the preparer tax identification number required under
353.31section 6109(a)(4) of the Internal Revenue Code; or
354.1(3) (4) facilitate the provision of a refund anticipation loans and loan or a refund
354.2anticipation checks check.
354.3(i) (h) "Tax preparer" or "preparer" means a person providing tax preparation services
354.4subject to this section. except:
354.5(1) an employee who prepares their employer's return;
354.6(2) any fiduciary, or the regular employees of a fiduciary, while acting on behalf of the
354.7fiduciary estate, testator, trustor, grantor, or beneficiaries of them;
354.8(3) nonprofit organizations providing tax preparation services under the Internal Revenue
354.9Service Volunteer Income Tax Assistance Program or Tax Counseling for the Elderly
354.10Program;
354.11(4) a person who merely furnishes typing, reproducing, or other mechanical assistance;
354.12(5) a third-party bulk filer as defined in section 290.92, subdivision 30, that is currently
354.13registered with the commissioner; and
354.14(6) a certified service provider as defined in section 297A.995, subdivision 2, paragraph
354.15(c), that provides all of the sales tax functions for a retailer not maintaining a place of
354.16business in this state as described in section 297A.66.
354.17(i) Except as otherwise provided, "return" means:
354.18(1) a return as defined in section 270C.01, subdivision 8;
354.19(2) a claim for refund of an overpayment;
354.20(3) a claim filed pursuant to chapter 290A; and
354.21(4) a claim for a credit filed under section 290.0677, subdivision 1.
354.22EFFECTIVE DATE.This section is effective for claims and returns filed after December
354.2331, 2017.

354.24    Sec. 2. Minnesota Statutes 2016, section 270C.445, subdivision 3, is amended to read:
354.25    Subd. 3. Standards of conduct. No tax preparer shall:
354.26(1) without good cause fail to promptly, diligently, and without unreasonable delay
354.27complete a client's tax return;
354.28(2) obtain the signature of a client to a tax return or authorizing document that contains
354.29blank spaces to be filled in after it has been signed;
355.1(3) fail to sign a client's tax return when payment compensation for services rendered
355.2has been made;
355.3(4) fail to provide on a client's return the preparer tax identification number when required
355.4under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28;
355.5(4) (5) fail or refuse to give a client a copy of any document requiring the client's signature
355.6within a reasonable time after the client signs the document;
355.7(5) (6) fail to retain for at least four years a copy of individual income tax a client's
355.8returns;
355.9(6) (7) fail to maintain a confidential relationship with clients or former clients;
355.10(7) (8) fail to take commercially reasonable measures to safeguard a client's nonpublic
355.11personal information;
355.12(8) (9) make, authorize, publish, disseminate, circulate, or cause to make, either directly
355.13or indirectly, any false, deceptive, or misleading statement or representation relating to or
355.14in connection with the offering or provision of tax preparation services;
355.15(9) (10) require a client to enter into a loan arrangement in order to complete a tax client's
355.16return;
355.17(10) (11) claim credits or deductions on a client's tax return for which the tax preparer
355.18knows or reasonably should know the client does not qualify;
355.19(12) report a household income on a client's claim filed under chapter 290A that the tax
355.20preparer knows or reasonably should know is not accurate;
355.21(13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision
355.2213, 20, 20a, 26, or 28;
355.23(14) whether or not acting as a taxpayer representative, fail to conform to the standards
355.24of conduct required by Minnesota Rules, part 8052.0300, subpart 4;
355.25(15) whether or not acting as a taxpayer representative, engage in any conduct that is
355.26incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;
355.27(16) whether or not acting as a taxpayer representative, engage in any conduct that is
355.28disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;
355.29(11) (17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated
355.30refund for tax preparation services;
356.1(12) (18) under any circumstances, withhold or fail to return to a client a document
356.2provided by the client for use in preparing the client's tax return;
356.3(13) (19) establish an account in the preparer's name to receive a client's refund through
356.4a direct deposit or any other instrument unless the client's name is also on the account,
356.5except that a taxpayer may assign the portion of a refund representing the Minnesota
356.6education credit available under section 290.0674 to a bank account without the client's
356.7name, as provided under section 290.0679;
356.8(14) (20) fail to act in the best interests of the client;
356.9(15) (21) fail to safeguard and account for any money handled for the client;
356.10(16) (22) fail to disclose all material facts of which the preparer has knowledge which
356.11might reasonably affect the client's rights and interests;
356.12(17) (23) violate any provision of section 332.37;
356.13(18) (24) include any of the following in any document provided or signed in connection
356.14with the provision of tax preparation services:
356.15(i) a hold harmless clause;
356.16(ii) a confession of judgment or a power of attorney to confess judgment against the
356.17client or appear as the client in any judicial proceeding;
356.18(iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against
356.19a debtor;
356.20(iv) an assignment of or an order for payment of wages or other compensation for
356.21services;
356.22(v) a provision in which the client agrees not to assert any claim or defense otherwise
356.23available;
356.24(vi) a waiver of any provision of this section or a release of any obligation required to
356.25be performed on the part of the tax preparer; or
356.26(vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on
356.27a class basis; or
356.28(19) (25) if making, providing, or facilitating a refund anticipation loan, fail to provide
356.29all disclosures required by the federal Truth in Lending Act, United States Code, title 15,
356.30in a form that may be retained by the client.
357.1EFFECTIVE DATE.This section is effective for claims and returns filed after December
357.231, 2017.

357.3    Sec. 3. Minnesota Statutes 2016, section 270C.445, subdivision 5a, is amended to read:
357.4    Subd. 5a. Nongame wildlife checkoff. A tax preparer must give written notice of the
357.5option to contribute to the nongame wildlife management account in section 290.431 to
357.6corporate clients that file an income tax return and to individual clients who file an income
357.7tax return or property tax refund claim form under chapter 290A. This notification must be
357.8included with information sent to the client at the same time as the preliminary worksheets
357.9or other documents used in preparing the client's return and must include a line for displaying
357.10contributions.
357.11EFFECTIVE DATE.This section is effective for claims and returns filed after December
357.1231, 2017.

357.13    Sec. 4. Minnesota Statutes 2016, section 270C.445, subdivision 6, is amended to read:
357.14    Subd. 6. Enforcement; administrative order; penalties; cease and desist. (a) The
357.15commissioner may impose an administrative penalty of not more than $1,000 per violation
357.16of subdivision 3, 3a, 4, 5, or 5b or 5, or section 270C.4451, provided that a penalty may not
357.17be imposed for any conduct that is also subject to the for which a tax return preparer penalties
357.18in penalty is imposed under section 289A.60, subdivision 13. The commissioner may
357.19terminate a tax preparer's authority to transmit returns electronically to the state, if the
357.20commissioner determines the tax preparer engaged in a pattern and practice of violating
357.21this section. Imposition of a penalty under this subdivision paragraph is subject to the
357.22contested case procedure under chapter 14. The commissioner shall collect the penalty in
357.23the same manner as the income tax. There is no right to make a claim for refund under
357.24section 289A.50 of the penalty imposed under this paragraph. Penalties imposed under this
357.25subdivision paragraph are public data.
357.26(b) In addition to the penalty under paragraph (a), if the commissioner determines that
357.27a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may
357.28issue an administrative order to the tax preparer requiring the tax preparer to cease and
357.29desist from committing the violation. The administrative order may include an administrative
357.30penalty provided in paragraph (a).
357.31(c) If the commissioner issues an administrative order under paragraph (b), the
357.32commissioner must send the order to the tax preparer addressed to the last known address
357.33of the tax preparer.
358.1(d) A cease and desist order under paragraph (b) must:
358.2(1) describe the act, conduct, or practice committed and include a reference to the law
358.3that the act, conduct, or practice violates; and
358.4(2) provide notice that the tax preparer may request a hearing as provided in this
358.5subdivision.
358.6(e) Within 30 days after the commissioner issues an administrative order under paragraph
358.7(b), the tax preparer may request a hearing to review the commissioner's action. The request
358.8for hearing must be made in writing and must be served on the commissioner at the address
358.9specified in the order. The hearing request must specifically state the reasons for seeking
358.10review of the order. The date on which a request for hearing is served by mail is the postmark
358.11date on the envelope in which the request for hearing is mailed.
358.12(f) If a tax preparer does not timely request a hearing regarding an administrative order
358.13issued under paragraph (b), the order becomes a final order of the commissioner and is not
358.14subject to review by any court or agency.
358.15(g) If a tax preparer timely requests a hearing regarding an administrative order issued
358.16under paragraph (b), the hearing must be commenced within ten days after the commissioner
358.17receives the request for a hearing.
358.18(h) A hearing timely requested under paragraph (e) is subject to the contested case
358.19procedure under chapter 14, as modified by this subdivision. The administrative law judge
358.20must issue a report containing findings of fact, conclusions of law, and a recommended
358.21order within ten days after the completion of the hearing, the receipt of late-filed exhibits,
358.22or the submission of written arguments, whichever is later.
358.23(i) Within five days of the date of the administrative law judge's report issued under
358.24paragraph (h), any party aggrieved by the administrative law judge's report may submit
358.25written exceptions and arguments to the commissioner. Within 15 days after receiving the
358.26administrative law judge's report, the commissioner must issue an order vacating, modifying,
358.27or making final the administrative order.
358.28(j) The commissioner and the tax preparer requesting a hearing may by agreement
358.29lengthen any time periods prescribed in paragraphs (g) to (i).
358.30(k) An administrative order issued under paragraph (b) is in effect until it is modified
358.31or vacated by the commissioner or an appellate court. The administrative hearing provided
358.32by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute
358.33the exclusive remedy for a tax preparer aggrieved by the order.
359.1(l) The commissioner may impose an administrative penalty, in addition to the penalty
359.2under paragraph (a), up to $5,000 per violation of a cease and desist order issued under
359.3paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case
359.4procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under
359.5this paragraph, the tax preparer assessed the penalty may request a hearing to review the
359.6penalty order. The request for hearing must be made in writing and must be served on the
359.7commissioner at the address specified in the order. The hearing request must specifically
359.8state the reasons for seeking review of the order. The cease and desist order issued under
359.9paragraph (b) is not subject to review in a proceeding to challenge the penalty order under
359.10this paragraph. The date on which a request for hearing is served by mail is the postmark
359.11date on the envelope in which the request for hearing is mailed. If the tax preparer does not
359.12timely request a hearing, the penalty order becomes a final order of the commissioner and
359.13is not subject to review by any court or agency. A penalty imposed by the commissioner
359.14under this paragraph may be collected and enforced by the commissioner as an income tax
359.15liability. There is no right to make a claim for refund under section 289A.50 of the penalty
359.16imposed under this paragraph. A penalty imposed under this paragraph is public data.
359.17(m) If a tax preparer violates a cease and desist order issued under paragraph (b), the
359.18commissioner may terminate the tax preparer's authority to transmit returns electronically
359.19to the state. Termination under this paragraph is public data.
359.20(n) A cease and desist order issued under paragraph (b) is public data when it is a final
359.21order.
359.22(o) Notwithstanding any other law, the commissioner may impose a penalty or take other
359.23action under this subdivision against a tax preparer, with respect to a return, within the
359.24period to assess tax on that return as provided by section 289A.38.
359.25(p) Notwithstanding any other law, the imposition of a penalty or any other action against
359.26a tax preparer under this subdivision, other than with respect to a return, must be taken by
359.27the commissioner within five years of the violation of statute.
359.28EFFECTIVE DATE.This section is effective for claims and returns filed after December
359.2931, 2017.

359.30    Sec. 5. Minnesota Statutes 2016, section 270C.445, subdivision 6a, is amended to read:
359.31    Subd. 6a. Exchange of data; State Board of Accountancy. The State Board of
359.32Accountancy shall refer to the commissioner complaints it receives about tax preparers who
359.33are not subject to the jurisdiction of the State Board of Accountancy and who are alleged
360.1to have violated the provisions of subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except
360.2subdivision 5a, or section 270C.4451.
360.3EFFECTIVE DATE.This section is effective for claims and returns filed after December
360.431, 2017.

360.5    Sec. 6. Minnesota Statutes 2016, section 270C.445, subdivision 6b, is amended to read:
360.6    Subd. 6b. Exchange of data; Lawyers Board of Professional Responsibility. The
360.7Lawyers Board of Professional Responsibility may refer to the commissioner complaints
360.8it receives about tax preparers who are not subject to its jurisdiction and who are alleged to
360.9have violated the provisions of subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except
360.10subdivision 5a, or section 270C.4451.
360.11EFFECTIVE DATE.This section is effective for claims and returns filed after December
360.1231, 2017.

360.13    Sec. 7. Minnesota Statutes 2016, section 270C.445, subdivision 6c, is amended to read:
360.14    Subd. 6c. Exchange of data; commissioner. The commissioner shall refer information
360.15and complaints about tax preparers who are alleged to have violated the provisions of
360.16subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except subdivision 5a, or section
360.17270C.4451, to:
360.18(1) the State Board of Accountancy, if the tax preparer is under its jurisdiction; and
360.19(2) the Lawyers Board of Professional Responsibility, if the tax preparer is under its
360.20jurisdiction.
360.21EFFECTIVE DATE.This section is effective for claims and returns filed after December
360.2231, 2017.

360.23    Sec. 8. Minnesota Statutes 2016, section 270C.445, subdivision 7, is amended to read:
360.24    Subd. 7. Enforcement; civil actions. (a) Any violation of this section or section
360.25270C.4451 is an unfair, deceptive, and unlawful trade practice within the meaning of section
360.268.31 . An action taken under this section is in the public interest.
360.27(b) A client may bring a civil action seeking redress for a violation of this section in the
360.28conciliation or the district court of the county in which unlawful action is alleged to have
360.29been committed or where the respondent resides or has a principal place of business.
360.30(c) A court finding for the plaintiff must award:
361.1(1) actual damages;
361.2(2) incidental and consequential damages;
361.3(3) statutory damages of twice the sum of: (i) the tax preparation fees; and (ii) if the
361.4plaintiff violated subdivision 3a, 4, or 5b section 270C.4451, subdivision 1, 2, or 5, all
361.5interest and fees for a refund anticipation loan;
361.6(4) reasonable attorney fees;
361.7(5) court costs; and
361.8(6) any other equitable relief as the court considers appropriate.
361.9EFFECTIVE DATE.This section is effective for claims and returns filed after December
361.1031, 2017.

361.11    Sec. 9. Minnesota Statutes 2016, section 270C.445, subdivision 8, is amended to read:
361.12    Subd. 8. Limited exemptions. (a) Except as provided in paragraph (b), the provisions
361.13of this section, except for subdivisions 3a, 4, and 5b, subdivisions 3; 5; 5a; 6, paragraphs
361.14(a) to (n); and 7, do not apply to:
361.15(1) an attorney admitted to practice under section 481.01;
361.16(2) a registered accounting practitioner, a registered accounting practitioner firm, a
361.17certified public accountant, or other person who is subject to the jurisdiction of the State
361.18Board of Accountancy a certified public accountant firm, licensed in accordance with chapter
361.19326A;
361.20(3) an enrolled agent who has passed the special enrollment examination administered
361.21by the Internal Revenue Service; or
361.22(4) anyone a person who provides, or assists in providing, tax preparation services within
361.23the scope of duties as an employee or supervisor under the direction or supervision of a
361.24person who is exempt under this subdivision.; or
361.25(5) a person acting as a supervisor to a tax preparer who is exempt under this subdivision.
361.26(b) The provisions of subdivisions 3; 6, paragraphs (a) to (n); and 7, apply to a tax
361.27preparer who would otherwise be exempt under paragraph (a) if the tax preparer has:
361.28(1) had a professional license suspended or revoked for cause, not including a failure to
361.29pay a professional licensing fee, by any authority of any state, territory, or possession of
361.30the United States, including a commonwealth, or the District of Columbia, any federal court
361.31of record, or any federal agency, body, or board;
362.1(2) irrespective of whether an appeal has been taken, been convicted of any crime
362.2involving dishonesty or breach of trust;
362.3(3) been censured, suspended, or disbarred under United States Treasury Department
362.4Circular 230;
362.5(4) been sanctioned by a court of competent jurisdiction, whether in a civil or criminal
362.6proceeding, including suits for injunctive relief, relating to any taxpayer's tax liability or
362.7the tax preparer's own tax liability, for:
362.8(i) instituting or maintaining proceedings primarily for delay;
362.9(ii) advancing frivolous or groundless arguments; or
362.10(iii) failing to pursue available administrative remedies; or
362.11(5) demonstrated a pattern of willful disreputable conduct by:
362.12(i) failing to file a return that the tax preparer was required to file annually for two of
362.13the three immediately preceding tax periods; or
362.14(ii) failing to file a return that the tax preparer was required to file more frequently than
362.15annually for three of the six immediately preceding tax periods.
362.16EFFECTIVE DATE.This section is effective for claims and returns filed after December
362.1731, 2017.

362.18    Sec. 10. Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision
362.19to read:
362.20    Subd. 9. Powers additional. The powers and authority granted in this section are in
362.21addition to all other powers of the commissioner. The use of the powers granted in this
362.22section does not preclude the use of any other power or authority of the commissioner.
362.23EFFECTIVE DATE.This section is effective for claims and returns filed after December
362.2431, 2017.

362.25    Sec. 11. Minnesota Statutes 2016, section 270C.446, subdivision 2, is amended to read:
362.26    Subd. 2. Required and excluded tax preparers. (a) Subject to the limitations of
362.27paragraph (b), the commissioner must publish lists of tax preparers as defined in section
362.28289A.60, subdivision 13 , paragraph (f) 270C.445, subdivision 2, paragraph (h), who have
362.29been:
362.30    (1) convicted under section 289A.63 for returns or claims prepared as a tax preparer or;
363.1    (2) assessed penalties in excess of $1,000 under section 289A.60, subdivision 13,
363.2paragraph (a).;
363.3    (3) convicted for identity theft under section 609.527, or a similar statute, for a return
363.4filed with the commissioner, the Internal Revenue Service, or another state;
363.5    (4) assessed a penalty under section 270C.445, subdivision 6, paragraph (a), in excess
363.6of $1,000;
363.7    (5) issued a cease and desist order under section 270C.445, subdivision 6, paragraph
363.8(b), that has become a final order; or
363.9    (6) assessed a penalty under section 270C.445, subdivision 6, paragraph (l), for violating
363.10a cease and desist order.
363.11    (b) For the purposes of this section, tax preparers are not subject to publication if:
363.12    (1) an administrative or court action contesting the or appealing a penalty described in
363.13paragraph (a), clause (2), (4), or (6), has been filed or served and is unresolved at the time
363.14when notice would be given under subdivision 3;
363.15    (2) an appeal period to contest the a penalty described in paragraph (a), clause (2), (4),
363.16or (6), has not expired; or
363.17    (3) the commissioner has been notified that the tax preparer is deceased.;
363.18    (4) an appeal period to contest a cease and desist order issued under section 270C.445,
363.19subdivision 6, paragraph (b), has not expired;
363.20    (5) an administrative or court action contesting or appealing a cease and desist order
363.21issued under section 270C.445, subdivision 6, paragraph (b), has been filed or served and
363.22is unresolved at the time when notice would be given under subdivision 3;
363.23    (6) a direct appeal of a conviction described in paragraph (a), clause (1) or (3), has been
363.24filed or served and is unresolved at the time when the notice would be given under
363.25subdivision 3; or
363.26    (7) an appeal period to contest a conviction described in paragraph (a), clause (1) or (3),
363.27has not expired.
363.28EFFECTIVE DATE.This section is effective for claims and returns filed after December
363.2931, 2017.

364.1    Sec. 12. Minnesota Statutes 2016, section 270C.446, subdivision 3, is amended to read:
364.2    Subd. 3. Notice to tax preparer. (a) At least 30 days before publishing the name of a
364.3tax preparer subject to penalty publication under this section, the commissioner shall mail
364.4a written notice to the tax preparer, detailing the amount and nature of each penalty basis
364.5for the publication and the intended publication of the information listed in subdivision 4
364.6related to the penalty. The notice must be mailed by first class and certified mail sent to the
364.7tax preparer addressed to the last known address of the tax preparer. The notice must include
364.8information regarding the exceptions listed in subdivision 2, paragraph (b), and must state
364.9that the tax preparer's information will not be published if the tax preparer provides
364.10information establishing that subdivision 2, paragraph (b), prohibits publication of the tax
364.11preparer's name.
364.12(b) Thirty days after the notice is mailed and if the tax preparer has not proved to the
364.13commissioner that subdivision 2, paragraph (b), prohibits publication, the commissioner
364.14may publish in a list of tax preparers subject to penalty the information about the tax preparer
364.15that is listed in subdivision 4.
364.16EFFECTIVE DATE.This section is effective for claims and returns filed after December
364.1731, 2017.

364.18    Sec. 13. Minnesota Statutes 2016, section 270C.446, subdivision 4, is amended to read:
364.19    Subd. 4. Form of list. The list may be published by any medium or method. The list
364.20must contain the name, associated business name or names, address or addresses, and
364.21violation or violations for which a penalty was imposed of that make each tax preparer
364.22subject to penalty publication.
364.23EFFECTIVE DATE.This section is effective for claims and returns filed after December
364.2431, 2017.

364.25    Sec. 14. Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read:
364.26    Subd. 5. Removal from list. The commissioner shall remove the name of a tax preparer
364.27from the list of tax preparers published under this section:
364.28(1) when the commissioner determines that the name was included on the list in error;
364.29(2) within 90 days three years after the preparer has demonstrated to the commissioner
364.30that the preparer fully paid all fines and penalties imposed, served any suspension, satisfied
364.31any sentence imposed, successfully completed any probationary period imposed, and
365.1successfully completed any remedial actions required by the commissioner, the State Board
365.2of Accountancy, or the Lawyers Board of Professional Responsibility; or
365.3(3) when the commissioner has been notified that the tax preparer is deceased.
365.4EFFECTIVE DATE.This section is effective for claims and returns filed after December
365.531, 2017.

365.6    Sec. 15. Minnesota Statutes 2016, section 270C.447, subdivision 1, is amended to read:
365.7    Subdivision 1. Commencement of action. (a) Whenever it appears to the commissioner
365.8that a tax preparer doing business in Minnesota has engaged in any conduct described in
365.9subdivision 2, a civil action in the name of the state of Minnesota may be commenced to
365.10enjoin any person who is a tax return preparer doing business in this state from further
365.11engaging in any conduct described in subdivision 2 the conduct and enforce compliance.
365.12(b) An action under this subdivision must be brought by the attorney general in:
365.13(1) the district court for the judicial district of the tax return preparer's residence or
365.14principal place of business, or in which the;
365.15(2) the district court for the judicial district of the residence of any taxpayer with respect
365.16to whose tax return the action is brought resides; or
365.17(3) Ramsey County District Court.
365.18(c) The court may exercise its jurisdiction over the action separate and apart from any
365.19other action brought by the state of Minnesota against the tax return preparer or any taxpayer.
365.20The court must grant a permanent injunction or other appropriate relief if the commissioner
365.21shows that the person has engaged in conduct constituting a violation of a law administered
365.22by the commissioner or a cease and desist order issued by the commissioner. The
365.23commissioner shall not be required to show irreparable harm.
365.24EFFECTIVE DATE.This section is effective for claims and returns filed after December
365.2531, 2017.

365.26    Sec. 16. Minnesota Statutes 2016, section 270C.447, subdivision 2, is amended to read:
365.27    Subd. 2. Injunction prohibiting specific conduct. In an action under subdivision 1,
365.28the court may enjoin the person from further engaging in that conduct if the court finds that
365.29a tax return preparer has:
365.30(1) engaged in any conduct subject to a civil penalty under section 289A.60 or, a criminal
365.31penalty under section 289A.63, or a criminal penalty under section 609.527 or a similar
366.1statute for a return filed with the commissioner, the Internal Revenue Service, or another
366.2state;
366.3(2) misrepresented the preparer's eligibility to practice before the Department of Revenue,
366.4or otherwise misrepresented the preparer's experience or education as a tax return preparer;
366.5(3) guaranteed the payment of any tax refund or the allowance of any tax credit; or
366.6(4) violated a cease and desist order issued by the commissioner; or
366.7(4) (5) engaged in any other fraudulent or deceptive conduct that substantially interferes
366.8with the proper administration of a law administered by the commissioner, and injunctive
366.9relief is appropriate to prevent the recurrence of that conduct,.
366.10the court may enjoin the person from further engaging in that conduct.
366.11EFFECTIVE DATE.This section is effective for claims and returns filed after December
366.1231, 2017.

366.13    Sec. 17. Minnesota Statutes 2016, section 270C.447, subdivision 3, is amended to read:
366.14    Subd. 3. Injunction prohibiting all business activities. If the court finds that a tax
366.15return preparer has continually or repeatedly engaged in conduct described in subdivision
366.162, and that an injunction prohibiting that conduct would not be sufficient to prevent the
366.17person's interference with the proper administration of a law administered by the
366.18commissioner, the court may enjoin the person from acting as a tax return preparer. The
366.19court may not enjoin the employer of a tax return preparer for conduct described in
366.20subdivision 2 engaged in by one or more of the employer's employees unless the employer
366.21was also actively involved in that conduct.
366.22EFFECTIVE DATE.This section is effective for claims and returns filed after December
366.2331, 2017.

366.24    Sec. 18. Minnesota Statutes 2016, section 270C.447, is amended by adding a subdivision
366.25to read:
366.26    Subd. 3a. Enforcement of cease and desist orders. (a) Whenever the commissioner
366.27under subdivision 1 or 3 seeks to enforce compliance with a cease and desist order, the court
366.28must consider the allegations in the cease and desist order conclusively established if the
366.29order is a final order.
366.30(b) If the court finds the tax preparer was not in compliance with a cease and desist order,
366.31the court may impose a further civil penalty against the tax preparer for contempt in an
367.1amount up to $10,000 for each violation and may grant any other relief the court determines
367.2is just and proper in the circumstances. A civil penalty imposed by a court under this section
367.3may be collected and enforced by the commissioner as an income tax liability.
367.4(c) The court may not require the commissioner to post a bond in an action or proceeding
367.5under this section.
367.6EFFECTIVE DATE.This section is effective for claims and returns filed after December
367.731, 2017.

367.8    Sec. 19. Minnesota Statutes 2016, section 289A.60, subdivision 13, is amended to read:
367.9    Subd. 13. Penalties for tax return preparers. (a) If an understatement of liability with
367.10respect to a return or claim for refund is due to a reckless disregard of laws and rules or
367.11willful attempt in any manner to understate the liability for a tax by a person who is a tax
367.12return preparer with respect to the return or claim, the person shall pay to the commissioner
367.13a penalty of $500. If a part of a property tax refund claim filed under section 290.0677,
367.14subdivision 1, or chapter 290A is excessive due to a reckless disregard or willful attempt
367.15in any manner to overstate the claim for relief allowed under chapter 290A by a person who
367.16is a tax refund or return preparer, the person tax preparer shall pay to the commissioner a
367.17penalty of $500 with respect to the claim. These penalties may not be assessed against the
367.18employer of a tax return preparer unless the employer was actively involved in the reckless
367.19disregard or willful attempt to understate the liability for a tax or to overstate the claim for
367.20refund. These penalties are income tax liabilities and may be assessed at any time as provided
367.21in section 289A.38, subdivision 5.
367.22(b) A civil action in the name of the state of Minnesota may be commenced to enjoin
367.23any person who is a tax return preparer doing business in this state as provided in section
367.24270C.447 .
367.25(c) The commissioner may terminate or suspend a tax preparer's authority to transmit
367.26returns electronically to the state, if the commissioner determines that the tax preparer has
367.27engaged in a pattern and practice of conduct in violation of paragraph (a) of this subdivision
367.28or has been convicted under section 289A.63.
367.29(d) For purposes of this subdivision, the term "understatement of liability" means an
367.30understatement of the net amount payable with respect to a tax imposed by state tax law,
367.31or an overstatement of the net amount creditable or refundable with respect to a tax. The
367.32determination of whether or not there is an understatement of liability must be made without
367.33regard to any administrative or judicial action involving the taxpayer. For purposes of this
368.1subdivision, the amount determined for underpayment of estimated tax under either section
368.2289A.25 or 289A.26 is not considered an understatement of liability.
368.3(e) For purposes of this subdivision, the term "overstatement of claim" means an
368.4overstatement of the net amount refundable with respect to a claim for property tax relief
368.5provided by filed under section 290.0677, subdivision 1, or chapter 290A. The determination
368.6of whether or not there is an overstatement of a claim must be made without regard to
368.7administrative or judicial action involving the claimant.
368.8(f) For purposes of this section, the term "tax refund or return preparer" means an
368.9individual who prepares for compensation, or who employs one or more individuals to
368.10prepare for compensation, a return of tax, or a claim for refund of tax. The preparation of
368.11a substantial part of a return or claim for refund is treated as if it were the preparation of
368.12the entire return or claim for refund. An individual is not considered a tax return preparer
368.13merely because the individual:
368.14(1) gives typing, reproducing, or other mechanical assistance;
368.15(2) prepares a return or claim for refund of the employer, or an officer or employee of
368.16the employer, by whom the individual is regularly and continuously employed;
368.17(3) prepares a return or claim for refund of any person as a fiduciary for that person; or
368.18(4) prepares a claim for refund for a taxpayer in response to a tax order issued to the
368.19taxpayer. "tax preparer" or "preparer" has the meaning given in section 270C.445, subdivision
368.202, paragraph (h).
368.21EFFECTIVE DATE.This section is effective for claims and returns filed after December
368.2231, 2017.

368.23    Sec. 20. Minnesota Statutes 2016, section 289A.60, subdivision 28, is amended to read:
368.24    Subd. 28. Preparer identification number. Any Minnesota individual income tax return
368.25or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision
368.2613, paragraph (f), shall bear the identification number the preparer is required to use federally
368.27under section 6109(a)(4) of the Internal Revenue Code. (a) Each of the following that is
368.28prepared by a tax preparer must include the tax preparer's tax identification number:
368.29(1) a tax return required to be filed under this chapter;
368.30(2) a claim filed under section 290.0677, subdivision 1, or chapter 290A; and
368.31(3) a claim for refund of an overpayment.
369.1(b) A tax preparer is not required to include their preparer tax identification number on
369.2a filing if the number is not required in the forms or filing requirements provided by the
369.3commissioner.
369.4    (c) A tax refund or return preparer who prepares a Minnesota individual income tax
369.5return or claim for refund and fails to include the required preparer tax identification number
369.6on the return or claim as required by this section is subject to a penalty of $50 for each
369.7failure.
369.8(d) A tax preparer who fails to include the preparer tax identification number as required
369.9by this section, and who is required to have a valid preparer tax identification number issued
369.10under section 6109(a)(4) of the Internal Revenue Code, but does not have one, is subject to
369.11a $500 penalty for each failure. A tax preparer subject to the penalty in this paragraph is
369.12not subject to the penalty in paragraph (c).
369.13(e) For the purposes of this subdivision, "tax preparer" has the meaning given in section
369.14270C.445, subdivision 2, paragraph (h), and "preparer tax identification number" means
369.15the number the tax preparer is required to use federally under section 6109(a)(4) of the
369.16Internal Revenue Code.
369.17EFFECTIVE DATE.This section is effective for claims and returns filed after December
369.1831, 2017.

369.19    Sec. 21. REVISOR'S INSTRUCTION.
369.20(a) The revisor of statutes shall renumber the provisions of Minnesota Statutes listed in
369.21column A to the references listed in column B.

369.22		Column A	Column B
369.23		270C.445, subdivision 3a	270C.4451, subdivision 1
369.24		270C.445, subdivision 4	270C.4451, subdivision 2
369.25		270C.445, subdivision 4a	270C.4451, subdivision 3
369.26		270C.445, subdivision 4b	270C.4451, subdivision 4
369.27		270C.445, subdivision 5b	270C.4451, subdivision 5

369.28(b) The revisor shall make necessary cross-reference changes in Minnesota Statutes and
369.29Minnesota Rules consistent with the renumbering of Minnesota Statutes, section 270C.445,
369.30subdivisions 3a, 4, 4a, 4b, and 5b.
369.31(c) The revisor shall publish the statutory derivations of the laws renumbered in this act
369.32in Laws of Minnesota and report the derivations in Minnesota Statutes.
370.1(d) If Minnesota Statutes, section 270C.445, subdivisions 3a, 4, 4a, 4b, and 5b, are further
370.2amended in the 2017 legislative session, the revisor shall codify the amendments in a manner
370.3consistent with this act. The revisor may make necessary changes to sentence structure to
370.4preserve the meaning of the text.
370.5EFFECTIVE DATE.This section is effective the day following final enactment.

370.6    Sec. 22. REPEALER.
370.7Minnesota Statutes 2016, sections 270C.445, subdivision 1; and 270C.447, subdivision
370.84, are repealed.
370.9EFFECTIVE DATE.This section is effective for claims and returns filed after December
370.1031, 2017."
370.11Amend the title accordingly