1.1.................... moves to amend H.F. No. 3167, the second engrossment, as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. [69.022] VOLUNTEER RETENTION STIPEND AID PILOT.
1.6    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
1.7have the meanings given them.
1.8(b) "Emergency medical services provider" means a licensee as defined under
1.9section 144E.001, subdivision 8.
1.10(c) "Independent nonprofit firefighting corporation" has the same meaning as used in
1.11chapter 424A.
1.12(d) "Municipality" has the meaning given in section 69.011, but only if the
1.13municipality uses one or more qualified volunteers to provide service.
1.14(e) "Qualified entity" means an emergency medical services provider, independent
1.15nonprofit firefighting corporation, or municipality.
1.16(f) "Qualified volunteer" means one of the following types of volunteers who has
1.17provided service for the entire prior calendar year to a qualified entity:
1.18(1) a volunteer firefighter as defined in section 424A.001, subdivision 10;
1.19(2) a volunteer ambulance attendant as defined in section 144E.001, subdivision 15; or
1.20(3) an emergency medical responder as defined in section 144E.001, subdivision 6,
1.21who provides emergency medical services as a volunteer.
1.22(g) "Pilot area" means the counties of Blue Earth, Faribault, Freeborn, Martin,
1.23Steele, Waseca, and Watonwan.
1.24(h) "State fire marshal" has the meaning given in section 299F.01.
1.25    Subd. 2. Aid payment and calculation. The commissioner of revenue shall pay aid
1.26to qualified entities located in the pilot area to provide funds for the qualified entities to
2.1pay annual volunteer retention stipends to qualified volunteers who provide services to
2.2the qualified entities. A qualified entity is located in the pilot area if it is a municipality
2.3located in whole or in part in the pilot area, or if it is an emergency medical services
2.4provider or independent nonprofit firefighting corporation with its main office located in
2.5the pilot area. The amount of the aid equals $500 multiplied by the number of qualified
2.6volunteers. For purposes of calculating this aid, each individual providing volunteer
2.7service, regardless of the different types of service provided, is one qualified volunteer.
2.8The commissioner shall pay the aid to qualified entities by July 31 of the calendar year
2.9following the year in which the qualified volunteer provided service.
2.10    Subd. 3. Application. Each year each qualified entity in the pilot area may apply to
2.11the commissioner for aid under this section. The application must be made at the time and
2.12in the form prescribed by the commissioner and must provide sufficient information to
2.13permit the commissioner to determine the applicant's entitlement to aid under this section.
2.14    Subd. 4. Payment of stipends. A qualified entity receiving state aid under this
2.15section must pay the aid as retention stipends to qualified volunteers no later than
2.16September 15 of the year in which the aid was received.
2.17    Subd. 5. Report. No later than January 15, 2018, the state fire marshal, in
2.18consultation with the commissioner of revenue, must report to the chairs and ranking
2.19minority members of the legislative committees having jurisdiction over public safety and
2.20taxes in the senate and the house of representatives, in compliance with sections 3.195 and
2.213.197, on aid paid under this section. The report must include:
2.22(1) for each county in the pilot area, a listing of the qualified entities that received
2.23aid in each of the three years of the pilot;
2.24(2) the amount of aid paid to each qualified entity that received aid in each of the
2.25three years of the pilot; and
2.26(3) for each qualified entity that received aid, the number of qualified volunteers
2.27who were paid stipends in each of the three years of the pilot.
2.28The report must also provide information on the number of qualified volunteers
2.29providing service to qualified entities in each of the counties adjacent to the pilot area
2.30in each of the three years of the pilot, and must summarize changes in the number of
2.31qualified volunteers during the three years of the pilot both within the pilot area and in the
2.32adjacent counties. For purposes of this subdivision "counties adjacent to the pilot area"
2.33means the counties of Brown, Cottonwood, Dodge, Jackson, Le Sueur, Mower, Nicollet,
2.34and Rice. Qualified entities in counties adjacent to the pilot area must provide information
2.35to the commissioner necessary to the report in this subdivision in the form and manner
3.1required by the commissioner. The commissioner must share with the state fire marshal
3.2the information necessary to the report.
3.3    Subd. 6. Appropriation. An amount sufficient to pay the state aid under this
3.4section in fiscal years 2016, 2017, and 2018 is appropriated from the general fund to the
3.5commissioner of revenue. This appropriation does not become part of the agency's base
3.6budget and expires after fiscal year 2018.
3.7EFFECTIVE DATE.This section is effective the day following final enactment
3.8and applies for volunteer service provided beginning in calendar years 2014, 2015, and
3.92016, and for aid payable in calendar years 2015, 2016, and 2017.

3.10    Sec. 2. Minnesota Statutes 2012, section 273.1384, subdivision 2, is amended to read:
3.11    Subd. 2. Agricultural homestead market value credit. Property classified as
3.12agricultural homestead under section 273.13, subdivision 23, paragraph (a), is eligible for
3.13an agricultural credit. The credit is computed using the property's agricultural credit market
3.14value, defined for this purpose as the property's market value excluding the market value of
3.15the house, garage, and immediately surrounding one acre of land. The credit is equal to 0.3
3.16percent of the first $115,000 of the property's agricultural credit market value minus .05 plus
3.170.1 percent of the property's agricultural credit market value in excess of $115,000, subject
3.18to a maximum reduction credit of $115 $490. In the case of property that is classified
3.19as part homestead and part nonhomestead solely because not all the owners occupy or
3.20farm the property, not all the owners have qualifying relatives occupying or farming the
3.21property, or solely because not all the spouses of owners occupy the property, the credit
3.22must be initially computed as if that nonhomestead agricultural land was also classified as
3.23agricultural homestead and then prorated to the owner-occupant's percentage of ownership.
3.24EFFECTIVE DATE.This section is effective beginning with taxes payable in 2015.

3.25    Sec. 3. Minnesota Statutes 2013 Supplement, section 273.1398, subdivision 4, is
3.26amended to read:
3.27    Subd. 4. Disparity reduction credit. (a) Beginning with taxes payable in 1989,
3.28 Class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property
3.29is located in a border city that has an enterprise zone, as defined in section 469.166; (2)
3.30the property is located in a city with a population greater than 2,500 and less than 35,000
3.31according to the 1980 decennial census; (3) the city is adjacent to a city in another state or
3.32immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city
4.1in the other state has a population of greater than 5,000 and less than 75,000 according to
4.2the 1980 decennial census.
4.3    (b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a
4.4property to 1.9 1.7 percent of the property's taxable market value and (ii) the tax on class
4.53a property to 1.9 1.7 percent of taxable market value.
4.6    (c) The county auditor shall annually certify the costs of the credits to the
4.7Department of Revenue. The department shall reimburse local governments for the
4.8property taxes forgone as the result of the credits in proportion to their total levies.
4.9EFFECTIVE DATE.This section is effective beginning with taxes payable in 2015.

4.10    Sec. 4. Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 2, is
4.11amended to read:
4.12    Subd. 2. Allocation. (a) Of the total amount appropriated as supplemental state aid:
4.13    (1) 58.065 58.064 percent must be paid to the executive director of the Public
4.14Employees Retirement Association for deposit in the public employees police and fire
4.15retirement fund established by section 353.65, subdivision 1;
4.16    (2) 35.484 percent must be paid to municipalities other than municipalities solely
4.17employing firefighters with retirement coverage provided by the public employees police
4.18and fire retirement plan which qualified to receive fire state aid in that calendar year,
4.19allocated in proportion to the most recent amount of fire state aid paid under section
4.2069.021, subdivision 7 , for the municipality bears to the most recent total fire state aid
4.21for all municipalities other than the municipalities solely employing firefighters with
4.22retirement coverage provided by the public employees police and fire retirement plan
4.23paid under section 69.021, subdivision 7, with the allocated amount for fire departments
4.24participating in the voluntary statewide lump-sum volunteer firefighter retirement plan
4.25paid to the executive director of the Public Employees Retirement Association for deposit
4.26in the fund established by section 353G.02, subdivision 3, and credited to the respective
4.27account and with the balance paid to the treasurer of each municipality for transmittal
4.28within 30 days of receipt to the treasurer of the applicable volunteer firefighter relief
4.29association for deposit in its special fund; and
4.30    (3) 6.452 percent must be paid to the executive director of the Minnesota State
4.31Retirement System for deposit in the state patrol retirement fund.
4.32(b) For purposes of this section, the term "municipalities" includes independent
4.33nonprofit firefighting corporations that participate in the voluntary statewide lump-sum
4.34volunteer firefighter retirement plan under chapter 356G or with subsidiary volunteer
4.35firefighter relief associations operating under chapter 424A.

5.1    Sec. 5. Minnesota Statutes 2013 Supplement, section 477A.013, subdivision 8, is
5.2amended to read:
5.3    Subd. 8. City formula aid. (a) For aids payable in 2014 only, the formula aid for a
5.4city is equal to the sum of (1) its 2013 certified aid, and (2) the product of (i) the difference
5.5between its unmet need and its 2013 certified aid, and (ii) the aid gap percentage.
5.6    (b) For aids payable in 2015 and thereafter, the formula aid for a city is equal to the
5.7sum of (1) its formula aid in the previous year and (2) the product of (i) the difference
5.8between its unmet need and its certified formula aid in the previous year under subdivision
5.99, and (ii) the aid gap percentage.
5.10    (c) For aids payable in 2015 and thereafter, if a city's certified aid from the previous
5.11year is greater than the sum of its unmet need plus its aid adjustment under subdivision 13,
5.12its formula aid is adjusted to equal its unmet need.
5.13    (d) No city may have a formula aid amount less than zero. The aid gap percentage
5.14must be the same for all cities subject to paragraph (b).
5.15    (e) The applicable aid gap percentage must be calculated by the Department of
5.16Revenue so that the total of the aid under subdivision 9 equals the total amount available
5.17for aid under section 477A.03. Data used in calculating aids to cities under sections
5.18477A.011 to 477A.013 shall be the most recently available data as of January 1 in the
5.19year in which the aid is calculated.
5.20EFFECTIVE DATE.This section is effective for aids payable in calendar year
5.212015 and thereafter.

5.22    Sec. 6. Minnesota Statutes 2013 Supplement, section 477A.03, subdivision 2a, is
5.23amended to read:
5.24    Subd. 2a. Cities. For aids payable in 2014, the total aid paid under section
5.25477A.013, subdivision 9 , is $507,598,012. The total aid paid under section 477A.013,
5.26subdivision 9 , is $509,098,012 for aids payable in 2015. For aids payable in 2016 2015
5.27 and thereafter, the total aid paid under section 477A.013, subdivision 9, is $511,598,012
5.28 the amount certified under that section in the previous year, multiplied by the inflation
5.29adjustment under subdivision 6.
5.30EFFECTIVE DATE.This section is effective for aids payable in calendar year
5.312015 and thereafter.

5.32    Sec. 7. Minnesota Statutes 2012, section 477A.03, is amended by adding a subdivision
5.33to read:
6.1    Subd. 6. Inflation adjustment. In 2015 and thereafter, the amount paid under
6.2subdivision 2a shall be multiplied by an amount equal to one plus the sum of (1) the
6.3percentage increase in the implicit price deflator for government expenditures and gross
6.4investment for state and local government purchases as prepared by the United States
6.5Department of Commerce, for the 12-month period ending March 31 of the previous
6.6calendar year, and (2) the percentage increase in total city population for the most recently
6.7available years as of January 15 of the current year. The percentage increase in this
6.8subdivision shall not be greater than five percent.
6.9EFFECTIVE DATE.This section is effective for aids payable in calendar year
6.102015 and thereafter.

6.11    Sec. 8. [477A.18] PRODUCTION PROPERTY TRANSITION AID.
6.12    Subdivision 1. Definitions. (a) When used in this section, the following terms have
6.13the meanings indicated in this subdivision.
6.14(b) "Local unit" means a home rule charter or statutory city, or a town.
6.15(c) "Net tax capacity differential" means the positive difference, if any, by which the
6.16local unit's net tax capacity was reduced from assessment year 2014 to assessment year
6.172015 due to the change in the definition of real property in section 272.03, subdivision 1,
6.18enacted by article 2, section 6, of this act. For purposes of determining the net tax capacity
6.19differential, any property in a job opportunity building zone under section 469.314 may
6.20not be included when calculating a local unit's net tax capacity.
6.21    Subd. 2. Aid eligibility; payment. (a) If the net tax capacity differential of the local
6.22unit exceeds five percent of its 2015 net tax capacity, the local unit is eligible for transition
6.23aid computed under paragraphs (b) to (f).
6.24(b) For aids payable in 2016, transition aid under this section for an eligible local
6.25unit equals (1) the net tax capacity differential, times (2) the jurisdiction's tax rate for
6.26taxes payable in 2015.
6.27(c) For aids payable in 2017, transition aid under this section for an eligible local
6.28unit equals 80 percent of (1) the net tax capacity differential, times (2) the jurisdiction's
6.29tax rate for taxes payable in 2016.
6.30(d) For aids payable in 2018, transition aid under this section for an eligible local
6.31unit equals 60 percent of (1) the net tax capacity differential, times (2) the jurisdiction's
6.32tax rate for taxes payable in 2017.
6.33(e) For aids payable in 2019, transition aid under this section for an eligible local
6.34unit equals 40 percent of (1) the net tax capacity differential, times (2) the jurisdiction's
6.35tax rate for taxes payable in 2018.
7.1(f) For aids payable in 2020, transition aid under this section for an eligible local
7.2unit equals 20 percent of (1) the net tax capacity differential, times (2) the jurisdiction's
7.3tax rate for taxes payable in 2019.
7.4(g) No aids shall be payable under this section in 2021 and thereafter.
7.5(h) The commissioner of revenue shall compute the amount of transition aid payable
7.6to each local unit under this section. On or before August 1 of each year, the commissioner
7.7shall certify the amount of transition aid computed for aids payable in the following year
7.8for each recipient local unit. The commissioner shall pay transition aid to local units
7.9annually at the times provided in section 477A.015.
7.10(i) The commissioner of revenue may require counties to provide any data that the
7.11commissioner deems necessary to administer this section.
7.12    Subd. 3. Appropriation. An amount sufficient to pay transition aid under this
7.13section is annually appropriated to the commissioner of revenue from the general fund.
7.14EFFECTIVE DATE.This section is effective beginning with assessment year 2015.

7.15    Sec. 9. SUPPLEMENTAL COUNTY PROGRAM AID FOR 2014.
7.16(a) Each county whose certified aid for 2014 under Minnesota Statutes, section
7.17477A.0124, is less than the aid it received under that section in 2013 shall be eligible for
7.18supplemental aid in 2014 equal to the difference between the amount received in 2013
7.19and the amount certified for 2014.
7.20(b) The aid under this section shall be paid in the same manner and at the same time
7.21as the regular aid payments under Minnesota Statutes, section 477A.0124.
7.22(c) The amount necessary to pay supplemental aid under this section is appropriated
7.23from the general fund to the commissioner of revenue.
7.24EFFECTIVE DATE.This section is effective July 1, 2014.

7.25    Sec. 10. SUPPLEMENTAL CREDIT FOR TAXES PAYABLE IN 2014 ONLY.
7.26    Subdivision 1. Eligibility. Each agricultural homestead qualifying for a credit
7.27for taxes payable in 2014 under Minnesota Statutes, section 273.1384, is eligible for a
7.28supplemental credit equal to the lesser of (i) $230, or (ii) the net property taxes payable on
7.29the property, excluding the taxes attributable to the house, garage, and surrounding one acre
7.30of land. A supplemental credit must not be paid to any property that has delinquent property
7.31taxes. By August 15, 2014, the county auditor must notify the commissioner of revenue of
7.32the name and address of the property owner of each homestead that received an agricultural
7.33credit for taxes payable in 2014, along with the net taxes due upon the agricultural
8.1homestead, whether there are any delinquent taxes on the property, and whatever other
8.2information the commissioner deems necessary, in a form prescribed by the commissioner.
8.3    Subd. 2. Payment of supplemental credit. The commissioner must pay
8.4supplemental credit amounts to each qualifying taxpayer by October 15, 2014.
8.5    Subd. 3. Property tax statements for taxes payable in 2015. In preparing
8.6proposed property tax notices for taxes payable in 2015 under Minnesota Statutes, section
8.7275.065, and final property tax statements for taxes payable in 2015 under Minnesota
8.8Statutes, section 276.04, the auditor must indicate that the taxpayer may have received a
8.9supplemental credit under this section for taxes payable in 2014.
8.10    Subd. 4. Appropriation. The amount necessary to make the payments required
8.11under subdivision 2 is appropriated from the general fund to the commissioner of revenue
8.12for fiscal year 2015.
8.13EFFECTIVE DATE.This section is effective the day following final enactment.

8.14    Sec. 11. HOMESTEAD CREDIT REFUND AND RENTER PROPERTY TAX
8.15REFUND INCREASE.
8.16    Subdivision 1. Homestead credit refund increase. For claims filed based on taxes
8.17payable in 2014, the commissioner shall increase by three percent the refund otherwise
8.18payable under Minnesota Statutes, section 290A.04, subdivision 2.
8.19    Subd. 2. Renter property tax refund increase. For claims filed based on rent paid
8.20in 2013, the commissioner shall increase by five percent the refund otherwise payable
8.21under Minnesota Statutes, section 290A.04, subdivision 2a.
8.22    Subd. 3. Appropriation. The amount necessary to make the payments required
8.23under this section in fiscal years 2015 and 2016 is appropriated from the general fund
8.24to the commissioner of revenue.
8.25EFFECTIVE DATE.This section is effective for refund claims based on taxes
8.26payable in 2014 and rent paid in 2013 only.

8.27    Sec. 12. 2013 CITY AID PENALTY FORGIVENESS; CITY OF BLUFFTON.
8.28Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of
8.29Bluffton shall receive the half of its aid payments for calendar years 2011, 2012, and
8.302013 under Minnesota Statutes, section 477A.013, that were withheld under Minnesota
9.1Statutes, section 477A.017, subdivision 3, provided that the state auditor certifies to the
9.2commissioner of revenue that it received audited financial statements from the city for
9.3calendar years 2010, 2011, and 2012 by December 31, 2013, and for calendar year 2013
9.4by June 30, 2014. The commissioner of revenue shall make a payment of $20,000 with
9.5the first payment of aids under Minnesota Statutes, section 477A.015, in calendar year
9.62014. The commissioner shall pay the remaining amount, totaling $28,151.50, with the
9.7first payment of aids under Minnesota Statutes, section 477A.015, in calendar year 2015.
9.8$20,000 in fiscal year 2015 and $28,151.50 in fiscal year 2016 are appropriated from the
9.9general fund to the commissioner of revenue to make payments under this section.
9.10EFFECTIVE DATE.This section is effective the day following final enactment.

9.11    Sec. 13. ADDITIONAL SUPPLEMENTAL AID REVISION FOR OMITTED
9.122013 INDEPENDENT NONPROFIT FIREFIGHTING CORPORATIONS.
9.13(a) Notwithstanding any provision of Minnesota Statutes, chapter 423A, to the
9.14contrary, this section modifies the allocation of the police and fire supplemental retirement
9.15state aid under Minnesota Statutes 2013 Supplement, section 423A.022, for October
9.161, 2014.
9.17(b) Before the allocation of the police and fire supplemental retirement state aid is
9.18made for October 1, 2014, the commissioner of revenue shall:
9.19(1) determine those fire departments that qualified for fire state aid under Minnesota
9.20Statutes 2012, section 69.021, subdivision 7, on October 1, 2013, did not receive a 2013
9.21allocation of police and fire supplemental retirement state aid, and were an independent
9.22nonprofit firefighting corporation; and
9.23(2) determine the amount of police and fire supplemental retirement state aid
9.24under Minnesota Statutes 2013 Supplement, section 423A.022, that the fire departments
9.25described in clause (1) would have received on October 1, 2013, if the fire departments
9.26had been included in that allocation.
9.27(c) The total amount determined in paragraph (b), clause (2), must be deducted from
9.28the amount available for allocation under Minnesota Statutes 2013 Supplement, section
9.29423A.022, subdivision 2, clause (2), and the commissioner of revenue shall pay to the fire
9.30departments determined in paragraph (b), clause (1), their respective portion of the total as
9.31an additional payment on October 1, 2014.
9.32(d) The remaining amount after the deduction of the total amount under paragraph
9.33(c) must be allocated as provided in section 1.


10.3    Section 1. Minnesota Statutes 2012, section 272.02, subdivision 10, is amended to read:
10.4    Subd. 10. Personal property used for pollution control. Personal property used
10.5primarily for the abatement and control of air, water, or land pollution is exempt to the
10.6extent that it is so used, and real property is exempt if it is used primarily for abatement
10.7and control of air, water, or land pollution as part of an agricultural operation, as a part
10.8of a centralized treatment and recovery facility operating under a permit issued by the
10.9Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota
10.10Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater
10.11treatment facility and for the treatment, recovery, and stabilization of metals, oils,
10.12chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as
10.13part of an electric generation system. For purposes of this subdivision, personal property
10.14includes ponderous machinery and equipment used in a business or production activity
10.15that at common law is considered real property.
10.16Any taxpayer requesting exemption of all or a portion of any real property or any
10.17equipment or device, or part thereof, operated primarily for the control or abatement of air,
10.18water, or land pollution shall file an application with the commissioner of revenue. If the
10.19property is an electric power generation facility located in a city, then the commissioner
10.20shall notify the county assessor and city finance officer of the jurisdictions that host the
10.21facility that the application has been received. The Minnesota Pollution Control Agency
10.22shall upon request of the commissioner furnish information and advice to the commissioner.
10.23The information and advice furnished by the Minnesota Pollution Control Agency
10.24must include statements as to whether the equipment, device, or real property meets
10.25a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution Control
10.26Agency, and whether the equipment, device, or real property is installed or operated
10.27in accordance with it. On determining that property qualifies for exemption, the
10.28commissioner shall issue an order exempting the property from taxation. If the property is
10.29an electric power generation facility located in a city, then the commissioner shall provide
10.30notification of the order to the county assessor and city finance officer of the jurisdictions
10.31that host the facility. The equipment, device, or real property shall continue to be exempt
10.32from taxation as long as the order issued by the commissioner remains in effect.
10.33EFFECTIVE DATE.This section is effective the day following final enactment.

10.34    Sec. 2. Minnesota Statutes 2012, section 272.02, subdivision 24, is amended to read:
11.1    Subd. 24. Electric power photovoltaic devices Solar energy-generating systems.
11.2Photovoltaic devices Personal property consisting of solar energy-generating systems, as
11.3defined in section 216C.06, subdivision 16 272.0295, installed after January 1, 1992, and
11.4used to produce or store electric power are is exempt. The value of the real property on
11.5which the solar energy-generating system is located shall be valued in the same manner as
11.6similar real property that has not been improved with a solar energy-generating system.
11.7The real property shall be classified based on the most probable use of the property if it
11.8was not improved with a solar energy-generating system.
11.9EFFECTIVE DATE.This section is effective beginning with taxes payable in 2015.

11.10    Sec. 3. Minnesota Statutes 2012, section 272.0211, subdivision 1, is amended to read:
11.11    Subdivision 1. Efficiency determination and certification. An owner or operator
11.12of a new or existing electric power generation facility, excluding wind energy conversion
11.13systems, may apply to the commissioner of revenue for a market value exclusion on the
11.14property as provided for in this section. This exclusion shall apply only to the market
11.15value of the equipment of the facility, and shall not apply to the structures and the land
11.16upon which the facility is located. The commissioner of revenue shall prescribe the forms
11.17and procedures for this application. Upon receiving the application, the commissioner of
11.18revenue shall: (1) request the commissioner of commerce to make a determination of the
11.19efficiency of the applicant's electric power generation facility; and (2), if the facility is
11.20in a city, notify the county assessor and city finance officer of the jurisdictions that host
11.21the facility that an application for an exclusion is being processed. The commissioner
11.22of commerce shall calculate efficiency as the ratio of useful energy outputs to energy
11.23inputs, expressed as a percentage, based on the performance of the facility's equipment
11.24during normal full load operation. The commissioner must include in this formula the
11.25energy used in any on-site preparation of materials necessary to convert the materials
11.26into the fuel used to generate electricity, such as a process to gasify petroleum coke.
11.27The commissioner shall use the Higher Heating Value (HHV) for all substances in the
11.28commissioner's efficiency calculations, except for wood for fuel in a biomass-eligible
11.29project under section 216B.2424; for these instances, the commissioner shall adjust the
11.30heating value to allow for energy consumed for evaporation of the moisture in the wood.
11.31The applicant shall provide the commissioner of commerce with whatever information the
11.32commissioner deems necessary to make the determination. Within 30 days of the receipt
11.33of the necessary information, the commissioner of commerce shall certify the findings of
11.34the efficiency determination to the commissioner of revenue and to the applicant. The
11.35commissioner of commerce shall determine the efficiency of the facility and certify the
12.1findings of that determination to the commissioner of revenue every two years thereafter
12.2from the date of the original certification.
12.3EFFECTIVE DATE.This section is effective beginning with assessment year 2014.

12.4    Sec. 4. Minnesota Statutes 2012, section 272.0211, subdivision 2, is amended to read:
12.5    Subd. 2. Sliding scale exclusion. Based upon the efficiency determination provided
12.6by the commissioner of commerce as described in subdivision 1, the commissioner of
12.7revenue shall subtract eight percent of the taxable market value of the qualifying property
12.8for each percentage point that the efficiency of the specific facility, as determined by the
12.9commissioner of commerce, is above 40 percent. The reduction in taxable market value
12.10shall be reflected in the taxable market value of the facility beginning with the assessment
12.11year immediately following the determination. For a facility that is assessed by the county
12.12in which the facility is located, The commissioner of revenue shall certify to the assessor
12.13of that county and, if located in a city, the finance officer of that city, the percentage of the
12.14taxable market value of the facility to be excluded.
12.15EFFECTIVE DATE.This section is effective beginning with assessment year 2014.

12.16    Sec. 5. [272.0295] SOLAR ENERGY PRODUCTION TAX.
12.17    Subdivision 1. Production tax. A tax is imposed on the production of electricity
12.18from a solar energy-generating system used as an electric power source.
12.19    Subd. 2. Definitions. (a) For the purposes of this section, the term "solar
12.20energy-generating system" means a set of devices whose primary purpose is to produce
12.21electricity by means of any combination of collecting, transferring, or converting
12.22solar-generated energy.
12.23(b) The total size of a solar energy-generating system under this subdivision shall
12.24be determined according to this paragraph. Unless the systems are interconnected with
12.25different distribution systems, the nameplate capacity of a solar energy-generating system
12.26shall be combined with the nameplate capacity of any other solar energy-generating
12.27system that is:
12.28(1) constructed within the same 12-month period as the solar energy-generating
12.29system; and
12.30(2) exhibits characteristics of being a single development, including but not
12.31limited to ownership structure, an umbrella sales arrangement, shared interconnection,
12.32revenue-sharing arrangements, and common debt or equity financing.
13.1In the case of a dispute, the commissioner of commerce shall determine the total size of
13.2the system and shall draw all reasonable inferences in favor of combining the systems.
13.3(c) In making a determination under paragraph (b), the commissioner of commerce
13.4may determine that two solar energy-generating systems are under common ownership
13.5when the underlying ownership structure contains similar persons or entities, even if the
13.6ownership shares differ between the two systems. Solar energy-generating systems are
13.7not under common ownership solely because the same person or entity provided equity
13.8financing for the systems.
13.9    Subd. 3. Rate of tax. (a) For a solar energy-generating system with a capacity
13.10exceeding one megawatt alternating current, the tax is $1.20 per megawatt-hour.
13.11(b) A solar energy-generating system with a capacity of one megawatt alternating
13.12current or less is exempt from the tax imposed under this section.
13.13    Subd. 4. Reports. An owner of a solar energy-generating system subject to tax
13.14under this section shall file a report with the commissioner of revenue annually on or
13.15before January 15 detailing the amount of electricity in megawatt-hours that was produced
13.16by the system in the previous calendar year. The commissioner shall prescribe the form
13.17of the report. The report must contain the information required by the commissioner to
13.18determine the tax due to each county under this section for the current year. If an owner
13.19of a solar energy-generating system subject to taxation under this section fails to file the
13.20report by the due date, the commissioner of revenue shall determine the tax based upon
13.21the nameplate capacity of the system multiplied by a capacity factor of 30 percent.
13.22    Subd. 5. Notification of tax. (a) On or before February 28, the commissioner of
13.23revenue shall notify the owner of each solar energy-generating system of the tax due to
13.24each county for the current year and shall certify to the county auditor of each county in
13.25which the system is located the tax due from each owner for the current year.
13.26(b) If the commissioner of revenue determines that the amount of production tax has
13.27been erroneously calculated, the commissioner may correct the error. The commissioner
13.28must notify the owner of the solar energy-generating system of the correction and the
13.29amount of tax due to each county and must certify the correction to the county auditor of
13.30each county in which the system is located on or before April 1 of the current year.
13.31    Subd. 6. Payment of tax; collection. The amount of production tax determined
13.32under subdivision 5 must be paid to the county treasurer at the time and in the manner
13.33provided for payment of property taxes under section 277.01, subdivision 3, and, if unpaid,
13.34is subject to the same enforcement, collection, and interest and penalties as delinquent
13.35personal property taxes. Except to the extent inconsistent with this section, the provisions
13.36of sections 277.01 to 277.24 and 278.01 to 278.14 apply to the taxes imposed under this
14.1section, and for purposes of those provisions, the taxes imposed under this section are
14.2considered personal property taxes.
14.3    Subd. 7. Distribution of revenues. Revenues from the taxes imposed under this
14.4section must be part of the settlement between the county treasurer and the county auditor
14.5under section 276.09. The revenue must be distributed by the county auditor or the county
14.6treasurer to local taxing jurisdictions in which the solar energy-generating system is
14.7located as follows: 80 percent to counties; and 20 percent to cities and townships.
14.8EFFECTIVE DATE.This section is effective beginning with taxes payable in 2015.

14.9    Sec. 6. Minnesota Statutes 2012, section 272.03, subdivision 1, is amended to read:
14.10    Subdivision 1. Real property. (a) For the purposes of taxation, "real property"
14.11includes the land itself, rails, ties, and other track materials annexed to the land, and all
14.12buildings, structures, and improvements or other fixtures on it, bridges of bridge companies,
14.13and all rights and privileges belonging or appertaining to the land, and all mines, iron ore
14.14and taconite minerals not otherwise exempt, quarries, fossils, and trees on or under it.
14.15(b) A building or structure shall include the building or structure itself, together with
14.16all improvements or fixtures annexed to the building or structure, which are integrated
14.17with and of permanent benefit to the building or structure, regardless of the present use
14.18of the building, and which cannot be removed without substantial damage to itself or to
14.19the building or structure.
14.20(c)(i) Real property does not include tools, implements, machinery, and equipment
14.21attached to or installed in real property for use in the business or production activity
14.22conducted thereon, regardless of size, weight or method of attachment, and mine shafts,
14.23tunnels, and other underground openings used to extract ores and minerals taxed under
14.24chapter 298 together with steel, concrete, and other materials used to support such openings.
14.25(ii) The exclusion provided in clause (i) shall not apply to machinery and equipment
14.26includable as real estate by paragraphs (a) and (b) even though such machinery and
14.27equipment is used in the business or production activity conducted on the real property if
14.28and to the extent such business or production activity consists of furnishing services or
14.29products to other buildings or structures which are subject to taxation under this chapter.
14.30(iii) The exclusion provided in clause (i) does not apply to the exterior shell of a
14.31structure which constitutes walls, ceilings, roofs, or floors if the shell of the structure has
14.32structural, insulation, or temperature control functions or provides protection from the
14.33elements, unless the structure is primarily used in the production of biofuels, wine, beer,
14.34distilled beverages, or dairy products. Such an exterior shell is included in the definition
14.35of real property even if it also has special functions distinct from that of a building, or if
15.1such an exterior shell is primarily used for the storage of ingredients or materials used in
15.2the production of biofuels, wine, beer, distilled beverages, or dairy products, or for the
15.3storage of finished biofuels, wine, beer, distilled beverages, or dairy products.
15.4(d) The term real property does not include tools, implements, machinery,
15.5equipment, poles, lines, cables, wires, conduit, and station connections which are part of a
15.6telephone communications system, regardless of attachment to or installation in real
15.7property and regardless of size, weight, or method of attachment or installation.
15.8EFFECTIVE DATE.This section is effective beginning with assessment year 2015.

15.9    Sec. 7. Minnesota Statutes 2012, section 273.13, subdivision 34, is amended to read:
15.10    Subd. 34. Homestead of disabled veteran or family caregiver. (a) All or a
15.11portion of the market value of property owned by a veteran and serving as the veteran's
15.12homestead under this section is excluded in determining the property's taxable market
15.13value if the veteran has a service-connected disability of 70 percent or more as certified
15.14by the United States Department of Veterans Affairs. To qualify for exclusion under this
15.15subdivision, the veteran must have been honorably discharged from the United States
15.16armed forces, as indicated by United States Government Form DD214 or other official
15.17military discharge papers.
15.18    (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
15.19excluded, except as provided in clause (2); and
15.20    (2) for a total (100 percent) and permanent disability, $300,000 of market value is
15.21excluded.
15.22    (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
15.23clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse
15.24holds the legal or beneficial title to the homestead and permanently resides there, the
15.25exclusion shall carry over to the benefit of the veteran's spouse for the current taxes payable
15.26year and for five eight additional taxes payable years or until such time as the spouse
15.27remarries, or sells, transfers, or otherwise disposes of the property, whichever comes first.
15.28Qualification under this paragraph requires an annual application under paragraph (h).
15.29(d) If the spouse of a member of any branch or unit of the United States armed
15.30forces who dies due to a service-connected cause while serving honorably in active
15.31service, as indicated on United States Government Form DD1300 or DD2064, holds the
15.32legal or beneficial title to a homestead and permanently resides there, the spouse is entitled
15.33to the benefit described in paragraph (b), clause (2), for five eight taxes payable years,
15.34or until such time as the spouse remarries or sells, transfers, or otherwise disposes of the
15.35property, whichever comes first.
16.1(e) If a veteran meets the disability criteria of paragraph (a) but does not own
16.2property classified as homestead in the state of Minnesota, then the homestead of the
16.3veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran
16.4would otherwise qualify for under paragraph (b).
16.5    (f) In the case of an agricultural homestead, only the portion of the property
16.6consisting of the house and garage and immediately surrounding one acre of land qualifies
16.7for the valuation exclusion under this subdivision.
16.8    (g) A property qualifying for a valuation exclusion under this subdivision is not
16.9eligible for the market value exclusion under subdivision 35, or classification under
16.10subdivision 22, paragraph (b).
16.11    (h) To qualify for a valuation exclusion under this subdivision a property owner
16.12must apply to the assessor by July 1 of each assessment year, except that an annual
16.13reapplication is not required once a property has been accepted for a valuation exclusion
16.14under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and
16.15the property continues to qualify until there is a change in ownership. For an application
16.16received after July 1 of any calendar year, the exclusion shall become effective for the
16.17following assessment year.
16.18(i) A first-time application by a qualifying spouse for the market value exclusion under
16.19paragraph (d) must be made any time within two years of the death of the service member.
16.20(j) For purposes of this subdivision:
16.21(1) "active service" has the meaning given in section 190.05;
16.22(2) "own" means that the person's name is present as an owner on the property deed;
16.23(3) "primary family caregiver" means a person who is approved by the secretary of
16.24the United States Department of Veterans Affairs for assistance as the primary provider
16.25of personal care services for an eligible veteran under the Program of Comprehensive
16.26Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G;
16.27and
16.28(4) "veteran" has the meaning given the term in section 197.447.
16.29(k) The purpose of this provision of law providing a level of homestead property tax
16.30relief for gravely disabled veterans, their primary family caregivers, and their surviving
16.31spouses is to help ease the burdens of war for those among our state's citizens who bear
16.32those burdens most heavily.
16.33EFFECTIVE DATE.This section is effective for taxes payable in 2015, and
16.34applies to homesteads that initially qualified for the exclusion for taxes payable in 2009
16.35and thereafter.

17.1    Sec. 8. Minnesota Statutes 2012, section 275.025, subdivision 2, is amended to read:
17.2    Subd. 2. Commercial-industrial tax capacity. For the purposes of this section,
17.3"commercial-industrial tax capacity" means the tax capacity of all taxable property
17.4classified as class 3 or class 5(1) under section 273.13, except for excluding: (1) the
17.5first tier of commercial-industrial value as defined under section 273.13, subdivision 24;
17.6(2) electric generation attached machinery under class 3; and (3) property described in
17.7section 473.625. County commercial-industrial tax capacity amounts are not adjusted
17.8for the captured net tax capacity of a tax increment financing district under section
17.9469.177, subdivision 2 , the net tax capacity of transmission lines deducted from a local
17.10government's total net tax capacity under section 273.425, or fiscal disparities contribution
17.11and distribution net tax capacities under chapter 276A or 473F.
17.12EFFECTIVE DATE.This section is effective beginning with taxes payable in 2015.

17.13    Sec. 9. Minnesota Statutes 2012, section 275.065, subdivision 1, is amended to read:
17.14    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the
17.15contrary, on or before September 15 30, each taxing authority, other than a school district,
17.16shall adopt a proposed budget and county and each home rule charter or statutory city shall
17.17certify to the county auditor the proposed or, in the case of a town, the final property tax
17.18levy for taxes payable in the following year.
17.19    (b) Notwithstanding any law or charter to the contrary, on or before September 15,
17.20each town and each special taxing district shall adopt and certify to the county auditor a
17.21proposed property tax levy for taxes payable in the following year. For towns, the final
17.22certified levy shall also be considered the proposed levy.
17.23    (c) On or before September 30, each school district that has not mutually agreed
17.24with its home county to extend this date shall certify to the county auditor the proposed
17.25property tax levy for taxes payable in the following year. Each school district that has
17.26agreed with its home county to delay the certification of its proposed property tax levy
17.27must certify its proposed property tax levy for the following year no later than October
17.287. The school district shall certify the proposed levy as:
17.29    (1) a specific dollar amount by school district fund, broken down between
17.30voter-approved and non-voter-approved levies and between referendum market value
17.31and tax capacity levies; or
17.32    (2) the maximum levy limitation certified by the commissioner of education
17.33according to section 126C.48, subdivision 1.
17.34    (c) (d) If the board of estimate and taxation or any similar board that establishes
17.35maximum tax levies for taxing jurisdictions within a first class city certifies the maximum
18.1property tax levies for funds under its jurisdiction by charter to the county auditor by
18.2September 15 the date specified in paragraph (a), the city shall be deemed to have certified
18.3its levies for those taxing jurisdictions.
18.4    (d) (e) For purposes of this section, "taxing authority" includes all home rule and
18.5statutory cities, towns, counties, school districts, and "special taxing district" means a
18.6 special taxing districts district as defined in section 275.066. Intermediate school districts
18.7that levy a tax under chapter 124 or 136D, joint powers boards established under sections
18.8123A.44 to 123A.446, and Common School Districts No. 323, Franconia, and No. 815,
18.9Prinsburg, are also special taxing districts for purposes of this section.
18.10(e) (f) At the meeting at which the a taxing authority, other than a town, adopts its
18.11proposed tax levy under paragraph (a) or (b) this subdivision, the taxing authority shall
18.12announce the time and place of its subsequent regularly scheduled meetings at which
18.13the budget and levy will be discussed and at which the public will be allowed to speak.
18.14The time and place of those meetings must be included in the proceedings or summary
18.15of proceedings published in the official newspaper of the taxing authority under section
18.16123B.09 , 375.12, or 412.191.
18.17EFFECTIVE DATE.This section is effective beginning with taxes payable in 2015.


18.20    Section 1. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 2,
18.21is amended to read:
18.22    Subd. 2. Qualified business. (a) A business is a qualified business if it satisfies the
18.23requirement of this paragraph and is not disqualified under the provisions of paragraph
18.24(b). To qualify, the business must:
18.25(1) have operated its trade or business in a city or cities in greater Minnesota for at
18.26least one year before applying under subdivision 3;
18.27(2) pay or agree to pay in the future each employee compensation, including benefits
18.28not mandated by law, that on an annualized basis equal at least 120 percent of the federal
18.29poverty level for a family of four;
18.30(3) plan and agree to expand its employment in one or more cities in greater Minnesota
18.31by the minimum number of employees required under subdivision 3, paragraph (c); and
18.32(4) have received certification from the commissioner under subdivision 3 that
18.33it is a qualified business.
18.34(b) A business is not a qualified business if it is either:
19.1(1) primarily engaged in making retail sales to purchasers who are physically present
19.2at the business's location or locations in greater Minnesota; or
19.3(2) a public utility, as defined in section 336B.01; or
19.4(3) primarily engaged in lobbying; gambling; entertainment; professional sports;
19.5political consulting; leisure; hospitality; or professional services provided by attorneys,
19.6accountants, business consultants, physicians, or health care consultants.
19.7(c) The requirements in paragraph (a) that the business's operations and expansion
19.8be located in a city do not apply to an agricultural processing facility.
19.9EFFECTIVE DATE.This section is effective the day following final enactment.

19.10    Sec. 2. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 3, is
19.11amended to read:
19.12    Subd. 3. Certification of qualified business. (a) A business may apply to the
19.13commissioner for certification as a qualified business under this section. The commissioner
19.14shall specify the form of the application, the manner and times for applying, and the
19.15information required to be included in the application. The commissioner may impose an
19.16application fee in an amount sufficient to defray the commissioner's cost of processing
19.17certifications. A business must file a copy of its application with the chief clerical officer
19.18of the city at the same time it applies to the commissioner. For an agricultural processing
19.19facility located outside the boundaries of a city, the business must file a copy of the
19.20application with the county auditor.
19.21(b) The commissioner shall certify each business as a qualified business that:
19.22(1) satisfies the requirements of subdivision 2;
19.23(2) the commissioner determines would not expand its operations in greater
19.24Minnesota without the tax incentives available under subdivision 4; and
19.25(3) enters a business subsidy agreement with the commissioner that pledges to
19.26satisfy the minimum expansion requirements of paragraph (c) within three years or less
19.27following execution of the agreement.
19.28The commissioner must act on an application within 60 90 days after its filing.
19.29Failure by the commissioner to take action within the 60-day 90-day period is deemed
19.30approval of the application.
19.31(c) The following minimum expansion requirements apply, based on the number of
19.32employees of the business at locations in greater Minnesota:
19.33(1) a business that employs 50 or fewer full-time equivalent employees in greater
19.34Minnesota when the agreement is executed must increase its employment by five or more
19.35full-time equivalent employees;
20.1(2) a business that employs more than 50 but fewer than 200 full-time equivalent
20.2employees in greater Minnesota when the agreement is executed must increase the number
20.3of its full-time equivalent employees in greater Minnesota by at least ten percent; or
20.4(3) a business that employs 200 or more full-time equivalent employees in greater
20.5Minnesota when the agreement is executed must increase its employment by at least 21
20.6full-time equivalent employees (c) The business must increase the number of full-time
20.7equivalent employees in greater Minnesota from the time the business subsidy agreement
20.8is executed by two employees or ten percent, whichever is greater.
20.9(d) The city, or a county for an agricultural processing facility located outside the
20.10boundaries of a city, in which the business proposes to expand its operations may file
20.11comments supporting or opposing the application with the commissioner. The comments
20.12must be filed within 30 days after receipt by the city of the application and may include a
20.13notice of any contribution the city or county intends to make to encourage or support the
20.14business expansion, such as the use of tax increment financing, property tax abatement,
20.15additional city or county services, or other financial assistance.
20.16(e) Certification of a qualified business is effective for the 12-year seven-year period
20.17beginning on the first day of the calendar month immediately following execution of
20.18the business subsidy agreement the date that the commissioner informs the business of
20.19the award of the benefit.
20.20EFFECTIVE DATE.This section is effective the day following final enactment.

20.21    Sec. 3. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 4, is
20.22amended to read:
20.23    Subd. 4. Available tax incentives. A qualified business is entitled to a sales tax
20.24exemption, up to $2,000,000 annually and $10,000,000 during the total period of the
20.25agreement, as provided in section 297A.68, subdivision 44, for purchases made during
20.26the period the business was certified as a qualified business under this section. The
20.27commissioner has discretion to set the maximum amounts of the annual and total sales tax
20.28exemption allowed for each qualifying business as part of the business subsidy agreement.
20.29EFFECTIVE DATE.This section is effective the day following final enactment.

20.30    Sec. 4. [168A.125] TRANSFER-ON-DEATH OF TITLE TO MOTOR VEHICLE.
20.31    Subdivision 1. Titled as transfer-on-death. A motor vehicle may be titled in
20.32transfer-on-death or TOD form by a natural person by including in the certificate of title a
20.33designation of a beneficiary or beneficiaries who are natural persons to whom the motor
21.1vehicle must be transferred on death of the owner or the last survivor of joint owners with
21.2rights of survivorship, subject to the rights of all secured parties.
21.3    Subd. 2. Designation of beneficiary. A motor vehicle is registered in
21.4transfer-on-death form by designating on the certificate of title the name of the owner
21.5and the names of joint owners with identification of rights of survivorship, followed by
21.6the words "transfer-on-death to (name of beneficiary or beneficiaries)." The designation
21.7"TOD" may be used instead of "transfer-on-death." A title in transfer-on-death form is
21.8not required to be supported by consideration, and the certificate of title in which the
21.9designation is made is not required to be delivered to the beneficiary or beneficiaries in
21.10order for the designation to be effective.
21.11    Subd. 3. Interest of beneficiary. The transfer-on-death beneficiary or beneficiaries
21.12shall have no interest in the motor vehicle until the death of the owner or the last survivor
21.13of the joint owners with right of survivorship. A beneficiary designation may be changed at
21.14any time by the owner or by all joint owners with rights of survivorship, without the consent
21.15of the beneficiary or beneficiaries, by filing an application for a new certificate of title.
21.16    Subd. 4. Vesting of ownership in beneficiary. Ownership of a motor vehicle
21.17titled in transfer-on-death form shall vest in the designated beneficiary or beneficiaries on
21.18the death of the owner or the last of the joint owners with right of survivorship, subject
21.19to the rights of all secured parties. The transfer-on-death beneficiary or beneficiaries
21.20who survive the owner may apply for a new certificate of title to the motor vehicle upon
21.21submitting proof of the death of the owner of the motor vehicle. If no transfer-on-death
21.22beneficiary or beneficiaries survive the owner of a motor vehicle, the motor vehicle must
21.23be included in the probate estate of the deceased owner. A transfer of a motor vehicle to a
21.24transfer-on-death beneficiary or beneficiaries is not a testamentary transfer.
21.25    Subd. 5. Rights of creditors. This section does not limit the rights of any secured
21.26party or creditor of the owner of a motor vehicle against a transfer-on-death beneficiary or
21.27beneficiaries.

21.28    Sec. 5. Minnesota Statutes 2013 Supplement, section 289A.20, subdivision 4, is
21.29amended to read:
21.30    Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and
21.31payable to the commissioner monthly on or before the 20th day of the month following the
21.32month in which the taxable event occurred, or following another reporting period as the
21.33commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph
21.34(f) or (g), except that use taxes due on an annual use tax return as provided under section
21.35289A.11, subdivision 1 , are payable by April 15 following the close of the calendar year.
22.1    (b) A vendor having a liability of $120,000 $250,000 or more during a fiscal year
22.2ending June 30 must remit the June liability for the next year in the following manner:
22.3    (1) Two business days before June 30 of the year, the vendor must remit 90 81.4
22.4 percent of the estimated June liability to the commissioner.
22.5    (2) On or before August 20 of the year, the vendor must pay any additional amount
22.6of tax not remitted in June.
22.7    (c) A vendor having a liability of:
22.8    (1) $10,000 or more, but less than $120,000 $250,000 during a fiscal year ending
22.9June 30, 2013, and fiscal years thereafter, must remit by electronic means all liabilities
22.10on returns due for periods beginning in all subsequent calendar years on or before the
22.1120th day of the month following the month in which the taxable event occurred, or on
22.12or before the 20th day of the month following the month in which the sale is reported
22.13under section 289A.18, subdivision 4; or
22.14(2) $120,000 $250,000 or more, during a fiscal year ending June 30, 2009 2013,
22.15and fiscal years thereafter, must remit by electronic means all liabilities in the manner
22.16provided in paragraph (a) on returns due for periods beginning in the subsequent calendar
22.17year, except for 90 81.4 percent of the estimated June liability, which is due two business
22.18days before June 30. The remaining amount of the June liability is due on August 20.
22.19(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's
22.20religious beliefs from paying electronically shall be allowed to remit the payment by mail.
22.21The filer must notify the commissioner of revenue of the intent to pay by mail before
22.22doing so on a form prescribed by the commissioner. No extra fee may be charged to a
22.23person making payment by mail under this paragraph. The payment must be postmarked
22.24at least two business days before the due date for making the payment in order to be
22.25considered paid on a timely basis.
22.26EFFECTIVE DATE.This section is effective for taxes remitted after May 30, 2014.

22.27    Sec. 6. Minnesota Statutes 2012, section 289A.60, subdivision 15, is amended to read:
22.28    Subd. 15. Accelerated payment of June sales tax liability; penalty for
22.29underpayment. For payments made after December 31, 2006 2013, if a vendor is
22.30required by law to submit an estimation of June sales tax liabilities and 90 81.4 percent
22.31payment by a certain date, the vendor shall pay a penalty equal to ten percent of the
22.32amount of actual June liability required to be paid in June less the amount remitted in
22.33June. The penalty must not be imposed, however, if the amount remitted in June equals
22.34the lesser of 90 81.4 percent of the preceding May's liability or 90 81.4 percent of the
22.35average monthly liability for the previous calendar year.
23.1EFFECTIVE DATE.This section is effective for taxes remitted after May 30, 2014.

23.2    Sec. 7. Minnesota Statutes 2012, section 297A.67, subdivision 13a, is amended to read:
23.3    Subd. 13a. Instructional materials. Instructional materials, other than textbooks,
23.4that are prescribed for use in conjunction with a course of study in a postsecondary school,
23.5college, university, or private career school to students who are regularly enrolled at such
23.6institutions are exempt. For purposes of this subdivision, "instructional materials" means
23.7materials required to be used directly in the completion of the course of study, including,
23.8but not limited to, interactive CDs, tapes, digital audio works, digital audiovisual works,
23.9and computer software.
23.10Instructional materials do not include general reference works or other items
23.11incidental to the instructional process such as pens, pencils, paper, folders, or computers.
23.12For purposes of this subdivision, "school" and "private career school" have the meanings
23.13given in subdivision 13.
23.14EFFECTIVE DATE.This section is effective the day following final enactment.

23.15    Sec. 8. Minnesota Statutes 2012, section 297A.67, is amended by adding a subdivision
23.16to read:
23.17    Subd. 33. Presentations accessed as digital audio and audiovisual works.
23.18The charge for a live or prerecorded presentation, such as a lecture, seminar,
23.19workshop, or course, where participants access the presentation as a digital audio
23.20work or digital audiovisual work, and are connected to the presentation via the
23.21Internet, telecommunications equipment or other device that transfers the presentation
23.22electronically, is exempt if:
23.23(1) participants and the presenter, during the time that participants access the
23.24presentation, are able to give, receive, and discuss the presentation with each other,
23.25although the amount of interaction and when in the presentation the interaction occurs
23.26may be limited by the presenter; and
23.27(2) for those presentations where participants are given the option to attend the
23.28same presentation in person:
23.29(i) any limitations on the amount of interaction and when it occurs during the
23.30presentation are the same for those participants accessing the presentation electronically
23.31as those attending in person; and
23.32(ii) the admission to the in person presentation is not subject to tax under this chapter.
24.1EFFECTIVE DATE.This section is effective for sales and purchases made after
24.2June 30, 2014.

24.3    Sec. 9. Minnesota Statutes 2012, section 297A.68, is amended by adding a subdivision
24.4to read:
24.5    Subd. 3a. Coin-operated entertainment and amusement devices. Coin-operated
24.6entertainment and amusement devices, including, but not limited to, fortune-telling
24.7machines, cranes, foosball and pool tables, video and pinball games, batting cages, rides,
24.8photo or video booths, and jukeboxes, are exempt when purchased by retailers selling
24.9admission to places of amusement and making available amusement devices as provided
24.10in section 297A.61, subdivision 3, paragraph (g), clause (1).
24.11EFFECTIVE DATE.This section is effective for sales and purchases made after
24.12June 30, 2014.

24.13    Sec. 10. Minnesota Statutes 2013 Supplement, section 297A.68, subdivision 42,
24.14is amended to read:
24.15    Subd. 42. Qualified data centers. (a) Purchases of enterprise information
24.16technology equipment and computer software for use in a qualified data center, or a
24.17qualified refurbished data center, are exempt. The tax on purchases exempt under this
24.18paragraph must be imposed and collected as if the rate under section 297A.62, subdivision
24.191 , applied, and then refunded after June 30, 2013, in the manner provided in section
24.20297A.75 . This exemption includes enterprise information technology equipment and
24.21computer software purchased to replace or upgrade enterprise information technology
24.22equipment and computer software in a qualified data center, or a qualified refurbished
24.23data center.
24.24(b) Electricity used or consumed in the operation of a qualified data center, or a
24.25qualified refurbished data center, is exempt.
24.26(c) For purposes of this subdivision, "qualified data center, or a qualified refurbished
24.27data center," means a facility in Minnesota:
24.28(1) that is comprised of one or more buildings that consist in the aggregate of
24.29at least 25,000 square feet, and that are located on a single parcel or on contiguous
24.30parcels, where the total cost of construction or refurbishment, investment in enterprise
24.31information technology equipment, and computer software is at least $30,000,000 within
24.32a 48-month period;
25.1(2) that is constructed or substantially refurbished after June 30, 2012, where
25.2"substantially refurbished" means that at least 25,000 square feet have been rebuilt or
25.3modified, including:
25.4(i) installation of enterprise information technology equipment, environmental
25.5control, computer software, and energy efficiency improvements; and
25.6(ii) building improvements; and
25.7(3) that is used to house enterprise information technology equipment, where the
25.8facility has the following characteristics:
25.9(i) uninterruptible power supplies, generator backup power, or both;
25.10(ii) sophisticated fire suppression and prevention systems; and
25.11(iii) enhanced security. A facility will be considered to have enhanced security if it
25.12has restricted access to the facility to selected personnel; permanent security guards; video
25.13camera surveillance; an electronic system requiring pass codes, keycards, or biometric
25.14scans, such as hand scans and retinal or fingerprint recognition; or similar security features.
25.15In determining whether the facility has the required square footage, the square footage
25.16of the following spaces shall be included if the spaces support the operation of enterprise
25.17information technology equipment: office space, meeting space, and mechanical and other
25.18support facilities. For purposes of this subdivision, "computer software" includes, but is
25.19not limited to, software utilized or loaded at the a qualified data center or a qualified
25.20refurbished data center, including maintenance, licensing, and software customization.
25.21(d) For purposes of this subdivision, a "qualified refurbished data center" means an
25.22existing facility that qualifies as a data center under paragraph (c), clauses (2) and (3), but
25.23that is comprised of one or more buildings that consist in the aggregate of at least 25,000
25.24square feet, and that are located on a single parcel or contiguous parcels, where the total
25.25cost of construction or refurbishment, investment in enterprise information technology
25.26equipment, and computer software is at least $50,000,000 within a 24-month period.
25.27(e) For purposes of this subdivision, "enterprise information technology equipment"
25.28means computers and equipment supporting computing, networking, or data storage,
25.29including servers and routers. It includes, but is not limited to: cooling systems,
25.30cooling towers, and other temperature control infrastructure; power infrastructure for
25.31transformation, distribution, or management of electricity used for the maintenance and
25.32operation of a qualified data center or a qualified refurbished data center, including but
25.33not limited to exterior dedicated business-owned substations, backup power generation
25.34systems, battery systems, and related infrastructure; and racking systems, cabling, and
25.35trays, which are necessary for the maintenance and operation of the a qualified data center
25.36 or a qualified refurbished data center.
26.1(f) A qualified data center or a qualified refurbished data center may claim the
26.2exemptions in this subdivision for purchases made either within 20 years of the date of
26.3its first purchase qualifying for the exemption under paragraph (a), or by June 30, 2042,
26.4whichever is earlier.
26.5(g) The purpose of this exemption is to create jobs in the construction and data
26.6center industries.
26.7(h) This subdivision is effective for sales and purchases made after June 30, 2012,
26.8and before July 1, 2042.
26.9EFFECTIVE DATE.This section is effective retroactively for sales and purchases
26.10made after June 30, 2013.

26.11    Sec. 11. Minnesota Statutes 2013 Supplement, section 297A.68, subdivision 44,
26.12is amended to read:
26.13    Subd. 44. Greater Minnesota business expansions. (a) Purchases and use of
26.14tangible personal property or taxable services by a qualified business, as defined in section
26.15116J.8738 , are exempt if:
26.16(1) the business subsidy agreement provides that the exemption under this
26.17subdivision applies;
26.18(2) the property or services are primarily used or consumed at the facility in greater
26.19Minnesota identified in the business subsidy agreement; and
26.20(3) the purchase was made and delivery received during the duration of the
26.21certification of the business as a qualified business under section 116J.8738.
26.22(b) Purchase and use of construction materials and supplies used or consumed in,
26.23and equipment incorporated into, the construction of improvements to real property in
26.24greater Minnesota are exempt if the improvements after completion of construction are
26.25to be used in the conduct of the trade or business of the qualified business, as defined in
26.26section 116J.8738. This exemption applies regardless of whether the purchases are made
26.27by the business or a contractor.
26.28(c) The exemptions under this subdivision apply to a local sales and use tax.
26.29(d) The tax on purchases imposed under this subdivision must be imposed and
26.30collected as if the rate under section 297A.62 applied, and then refunded in the manner
26.31provided in section 297A.75. The total amount refunded for a facility over the certification
26.32period is limited to the amount listed in the business subsidy agreement. No more than
26.33$7,000,000 may be refunded in a fiscal year for all purchases under this subdivision.
26.34Refunds must be allocated on a first-come, first-served basis. If more than $7,000,000 of
26.35eligible claims are made in a fiscal year, claims by qualified businesses carry over to the
27.1next fiscal year, and the commissioner must first allocate refunds to qualified businesses
27.2eligible for a refund in the preceding fiscal year. Any portion of the balance of funds
27.3allocated for refunds under this paragraph does not cancel and shall be carried forward to
27.4and available for refunds in subsequent fiscal years.
27.5EFFECTIVE DATE.This section is effective the day following final enactment.

27.6    Sec. 12. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 2, is
27.7amended to read:
27.8    Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b),
27.9to the following governments and political subdivisions, or to the listed agencies or
27.10instrumentalities of governments and political subdivisions, are exempt:
27.11(1) the United States and its agencies and instrumentalities;
27.12(2) school districts, local governments, the University of Minnesota, state universities,
27.13community colleges, technical colleges, state academies, the Perpich Minnesota Center for
27.14Arts Education, and an instrumentality of a political subdivision that is accredited as an
27.15optional/special function school by the North Central Association of Colleges and Schools;
27.16(3) hospitals and nursing homes owned and operated by political subdivisions of
27.17the state of tangible personal property and taxable services used at or by hospitals and
27.18nursing homes;
27.19(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip
27.20operations provided for in section 473.4051;
27.21(5) other states or political subdivisions of other states, if the sale would be exempt
27.22from taxation if it occurred in that state; and
27.23(6) public libraries, public library systems, multicounty, multitype library systems
27.24as defined in section 134.001, county law libraries under chapter 134A, state agency
27.25libraries, the state library under section 480.09, and the Legislative Reference Library.
27.26(b) This exemption does not apply to the sales of the following products and services:
27.27(1) building, construction, or reconstruction materials purchased by a contractor
27.28or a subcontractor as a part of a lump-sum contract or similar type of contract with a
27.29guaranteed maximum price covering both labor and materials for use in the construction,
27.30alteration, or repair of a building or facility;
27.31(2) construction materials purchased by tax exempt entities or their contractors to
27.32be used in constructing buildings or facilities which will not be used principally by the
27.33tax exempt entities;
27.34(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11,
27.35except for leases entered into by the United States or its agencies or instrumentalities;
28.1(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause
28.2(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
28.3297A.67, subdivision 2 , except for lodging, prepared food, candy, soft drinks, and alcoholic
28.4beverages purchased directly by the United States or its agencies or instrumentalities; or
28.5(5) goods or services purchased by a local government as inputs to goods and
28.6services that are generally provided by a private business and the purchases would be
28.7taxable if made by a private business engaged in the same activity a liquor store, gas or
28.8electric utility, solid waste hauling service, solid waste recycling service, landfill, golf
28.9course, marina, health and fitness center, campground, cafe, or laundromat.
28.10(c) As used in this subdivision, "school districts" means public school entities and
28.11districts of every kind and nature organized under the laws of the state of Minnesota, and
28.12any instrumentality of a school district, as defined in section 471.59.
28.13(d) As used in this subdivision, "local governments" means:
28.14(1) home rule charter or statutory cities,;
28.15(2) counties, and;
28.16(3) townships.;
28.17(4) housing and redevelopment authorities under sections 469.001 to 469.047;
28.18(5) port authorities under sections 469.048 to 469.068;
28.19(6) economic development authorities under sections 469.090 to 469.1081; and
28.20(7) any joint powers board or organization created under section 471.59 provided
28.21that at least 50 percent or more of the governmental units that are party to the joint powers
28.22agreement are exempt from sales tax under clauses (1) to (6) or paragraph (a).
28.23(e) As used in this subdivision, "goods or services generally provided by a private
28.24business" include, but are not limited to, goods or services provided by liquor stores, gas
28.25and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes,
28.26and laundromats. "Goods or services generally provided by a private business" do not
28.27include housing services, sewer and water services, wastewater treatment, ambulance and
28.28other public safety services, correctional services, chore or homemaking services provided
28.29to elderly or disabled individuals, or road and street maintenance or lighting.
28.30EFFECTIVE DATE.The amendment to paragraph (d) is effective for sales and
28.31purchases made after June 30, 2015. The other amendments to this section are effective
28.32for sales and purchases made after June 30, 2014.

28.33    Sec. 13. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 13,
28.34is amended to read:
29.1    Subd. 13. Fund-raising sales by or for nonprofit groups. (a) The following
29.2sales by the specified organizations for fund-raising purposes are exempt, subject to the
29.3limitations listed in paragraph (b):
29.4(1) all sales made by a nonprofit organization that exists solely for the purpose of
29.5providing educational or social activities for young people primarily age 18 and under;
29.6(2) all sales made by an organization that is a senior citizen group or association of
29.7groups if (i) in general it limits membership to persons age 55 or older; (ii) it is organized
29.8and operated exclusively for pleasure, recreation, and other nonprofit purposes; and (iii)
29.9no part of its net earnings inures to the benefit of any private shareholders;
29.10(3) the sale or use of tickets or admissions to a golf tournament held in Minnesota if
29.11the beneficiary of the tournament's net proceeds qualifies as a tax-exempt organization
29.12under section 501(c)(3) of the Internal Revenue Code; and
29.13(4) sales of candy sold for fund-raising purposes by a nonprofit organization that
29.14provides educational and social activities primarily for young people age 18 and under.
29.15(b) The exemptions listed in paragraph (a) are limited in the following manner:
29.16(1) the exemption under paragraph (a), clauses (1) and (2), applies only if to the first
29.17$20,000, as adjusted under paragraph (e), of the gross annual receipts of the organization
29.18from fund-raising do not exceed $10,000; and
29.19(2) the exemption under paragraph (a), clause (1), does not apply if the sales are
29.20derived from admission charges or from activities for which the money must be deposited
29.21with the school district treasurer under section 123B.49, subdivision 2, or be recorded in
29.22the same manner as other revenues or expenditures of the school district under section
29.23123B.49, subdivision 4 .
29.24(c) Sales of tangible personal property and services are exempt if the entire proceeds,
29.25less the necessary expenses for obtaining the property or services, will be contributed to
29.26a registered combined charitable organization described in section 43A.50, to be used
29.27exclusively for charitable, religious, or educational purposes, and the registered combined
29.28charitable organization has given its written permission for the sale. Sales that occur over
29.29a period of more than 24 days per year are not exempt under this paragraph.
29.30(d) For purposes of this subdivision, a club, association, or other organization of
29.31elementary or secondary school students organized for the purpose of carrying on sports,
29.32educational, or other extracurricular activities is a separate organization from the school
29.33district or school for purposes of applying the $10,000 $20,000 limit, as adjusted under
29.34paragraph (e).
29.35(e) By December 1, 2015, and every December 1 thereafter, the commissioner shall
29.36calculate and publish an adjusted exemption limit for this subdivision. The adjusted
30.1limit is equal to $20,000 multiplied by the ratio of the Consumer Price Index for urban
30.2consumers for the most recently available calendar year to the Consumer Price Index
30.3for urban consumers for calendar year 2013, as prepared by the United States Bureau
30.4of Labor Statistics.
30.5EFFECTIVE DATE.This section is effective for sales and purchases made after
30.6June 30, 2014.

30.7    Sec. 14. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 14,
30.8is amended to read:
30.9    Subd. 14. Fund-raising events sponsored by nonprofit groups. (a) Sales of
30.10tangible personal property or services at, and admission charges for fund-raising events
30.11sponsored by, a nonprofit organization are exempt if:
30.12(1) all gross receipts are recorded as such, in accordance with generally accepted
30.13accounting practices, on the books of the nonprofit organization; and
30.14(2) the entire proceeds, less the necessary expenses for the event, will be used solely
30.15and exclusively for charitable, religious, or educational purposes. Exempt sales include
30.16the sale of prepared food, candy, and soft drinks at the fund-raising event.
30.17(b) This exemption is limited in the following manner:
30.18(1) it does not apply to admission charges for events involving bingo or other
30.19gambling activities or to charges for use of amusement devices involving bingo or other
30.20gambling activities;
30.21(2) all gross receipts are taxable if the profits are not used solely and exclusively for
30.22charitable, religious, or educational purposes;
30.23(3) it does not apply unless the organization keeps a separate accounting record,
30.24including receipts and disbursements from each fund-raising event that documents all
30.25deductions from gross receipts with receipts and other records;
30.26(4) it does not apply to any sale made by or in the name of a nonprofit corporation as
30.27the active or passive agent of a person that is not a nonprofit corporation;
30.28(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;
30.29(6) it does not apply to fund-raising events conducted on premises leased for more
30.30than five days but less than 30 days; and
30.31(7) it does not apply if the risk of the event is not borne by the nonprofit organization
30.32and the benefit to the nonprofit organization is less than the total amount of the state and
30.33local tax revenues forgone by this exemption.
30.34(c) For purposes of this subdivision, a "nonprofit organization" means any unit of
30.35government, corporation, society, association, foundation, or institution organized and
31.1operated for charitable, religious, educational, civic, fraternal, and senior citizens' or
31.2veterans' purposes, no part of the net earnings of which inures to the benefit of a private
31.3individual.
31.4(d) For purposes of this subdivision, "fund-raising events" means activities of
31.5limited duration, not regularly carried out in the normal course of business, that attract
31.6patrons for community, social, and entertainment purposes, such as auctions, bake sales,
31.7ice cream socials, block parties, carnivals, competitions, concerts, concession stands,
31.8craft sales, bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion
31.9shows, festivals, galas, special event workshops, sporting activities such as marathons and
31.10tournaments, and similar events. Fund-raising events do not include the operation of a
31.11regular place of business in which services are provided or sales are made during regular
31.12hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet sales,
31.13regularly scheduled classes, or other activities carried out in the normal course of business.
31.14EFFECTIVE DATE.This section is effective for sales and purchases made after
31.15June 30, 2014.

31.16    Sec. 15. Minnesota Statutes 2012, section 297A.71, is amended by adding a
31.17subdivision to read:
31.18    Subd. 49. Donated materials for a library expansion. Building materials and
31.19supplies purchased and donated by a private entity and used in the construction of an
31.20addition to a city library facility are exempt.
31.21EFFECTIVE DATE.This section is effective for materials and supplies used in
31.22construction occurring after April 1, 2014, and before July 1, 2015.

31.23    Sec. 16. Minnesota Statutes 2013 Supplement, section 297B.01, subdivision 16,
31.24is amended to read:
31.25    Subd. 16. Sale, sells, selling, purchase, purchased, or acquired. (a) "Sale,"
31.26"sells," "selling," "purchase," "purchased," or "acquired" means any transfer of title of any
31.27motor vehicle, whether absolutely or conditionally, for a consideration in money or by
31.28exchange or barter for any purpose other than resale in the regular course of business.
31.29    (b) Any motor vehicle utilized by the owner only by leasing such vehicle to others
31.30or by holding it in an effort to so lease it, and which is put to no other use by the owner
31.31other than resale after such lease or effort to lease, shall be considered property purchased
31.32for resale.
32.1    (c) The terms also shall include any transfer of title or ownership of a motor vehicle
32.2by other means, for or without consideration, except that these terms shall not include:
32.3    (1) the acquisition of a motor vehicle by inheritance from or by bequest of, or
32.4transfer-on-death of title by, a decedent who owned it;
32.5    (2) the transfer of a motor vehicle which was previously licensed in the names of
32.6two or more joint tenants and subsequently transferred without monetary consideration to
32.7one or more of the joint tenants;
32.8    (3) the transfer of a motor vehicle by way of gift from a limited used vehicle dealer
32.9licensed under section 168.27, subdivision 4a, to an individual, when the transfer is with
32.10no monetary or other consideration or expectation of consideration and the parties to the
32.11transfer submit an affidavit to that effect at the time the title transfer is recorded;
32.12    (4) the transfer of a motor vehicle by gift between:
32.13(i) spouses;
32.14(ii) parents and a child; or
32.15(iii) grandparents and a grandchild;
32.16(5) the voluntary or involuntary transfer of a motor vehicle between a husband and
32.17wife in a divorce proceeding; or
32.18    (6) the transfer of a motor vehicle by way of a gift to an organization that is exempt
32.19from federal income taxation under section 501(c)(3) of the Internal Revenue Code when
32.20the motor vehicle will be used exclusively for religious, charitable, or educational purposes.

32.21    Sec. 17. Minnesota Statutes 2012, section 297B.03, is amended to read:
32.22297B.03 EXEMPTIONS.
32.23    There is specifically exempted from the provisions of this chapter and from
32.24computation of the amount of tax imposed by it the following:
32.25    (1) purchase or use, including use under a lease purchase agreement or installment
32.26sales contract made pursuant to section 465.71, of any motor vehicle by the United States
32.27and its agencies and instrumentalities and by any person described in and subject to the
32.28conditions provided in section 297A.67, subdivision 11;
32.29    (2) purchase or use of any motor vehicle by any person who was a resident of
32.30another state or country at the time of the purchase and who subsequently becomes a
32.31resident of Minnesota, provided the purchase occurred more than 60 days prior to the date
32.32such person began residing in the state of Minnesota and the motor vehicle was registered
32.33in the person's name in the other state or country;
32.34    (3) purchase or use of any motor vehicle by any person making a valid election to be
32.35taxed under the provisions of section 297A.90;
33.1    (4) purchase or use of any motor vehicle previously registered in the state of
33.2Minnesota when such transfer constitutes a transfer within the meaning of section 118,
33.3331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal
33.4Revenue Code;
33.5    (5) purchase or use of any vehicle owned by a resident of another state and leased
33.6to a Minnesota-based private or for-hire carrier for regular use in the transportation of
33.7persons or property in interstate commerce provided the vehicle is titled in the state of
33.8the owner or secured party, and that state does not impose a sales tax or sales tax on
33.9motor vehicles used in interstate commerce;
33.10    (6) purchase or use of a motor vehicle by a private nonprofit or public educational
33.11institution for use as an instructional aid in automotive training programs operated by the
33.12institution. "Automotive training programs" includes motor vehicle body and mechanical
33.13repair courses but does not include driver education programs;
33.14    (7) purchase of a motor vehicle by an ambulance service licensed under section
33.15144E.10 when that vehicle is equipped and specifically intended for emergency response
33.16or for providing ambulance service;
33.17    (8) purchase of a motor vehicle by or for a public library, as defined in section
33.18134.001, subdivision 2 , as a bookmobile or library delivery vehicle;
33.19    (9) purchase of a ready-mixed concrete truck;
33.20    (10) purchase or use of a motor vehicle by a town home rule charter or statutory cities,
33.21counties, and townships or any joint powers board or organization created under section
33.22471.59 where at least 50 percent of the members of the agreement are home rule charter or
33.23statutory cities, counties, or townships, for use exclusively for road maintenance, including
33.24snowplows and dump trucks, but not including automobiles, vans, or pickup trucks;
33.25    (11) purchase or use of a motor vehicle by a corporation, society, association,
33.26foundation, or institution organized and operated exclusively for charitable, religious, or
33.27educational purposes, except a public school, university, or library, but only if the vehicle is:
33.28    (i) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a
33.29passenger automobile, as defined in section 168.002, if the automobile is designed and
33.30used for carrying more than nine persons including the driver; and
33.31    (ii) intended to be used primarily to transport tangible personal property or
33.32individuals, other than employees, to whom the organization provides service in
33.33performing its charitable, religious, or educational purpose;
33.34    (12) purchase of a motor vehicle for use by a transit provider exclusively to provide
33.35transit service is exempt if the transit provider is either (i) receiving financial assistance or
34.1reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29,
34.2473.388 , or 473.405;
34.3    (13) purchase or use of a motor vehicle by a qualified business, as defined in section
34.4469.310 , located in a job opportunity building zone, if the motor vehicle is principally
34.5garaged in the job opportunity building zone and is primarily used as part of or in direct
34.6support of the person's operations carried on in the job opportunity building zone. The
34.7exemption under this clause applies to sales, if the purchase was made and delivery
34.8received during the duration of the job opportunity building zone. The exemption under
34.9this clause also applies to any local sales and use tax;
34.10    (14) purchase of a leased vehicle by the lessee who was a participant in a
34.11lease-to-own program from a charitable organization that is:
34.12    (i) described in section 501(c)(3) of the Internal Revenue Code; and
34.13    (ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4; and
34.14(15) purchase of a motor vehicle used exclusively as a mobile medical unit for the
34.15provision of medical or dental services by a federally qualified health center, as defined
34.16under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus
34.17Budget Reconciliation Act of 1990.
34.18EFFECTIVE DATE.This section is effective for sales and purchases made after
34.19June 30, 2015.

34.20    Sec. 18. Minnesota Statutes 2012, section 297F.09, subdivision 10, is amended to read:
34.21    Subd. 10. Accelerated tax payment; cigarette or tobacco products distributor.
34.22    A cigarette or tobacco products distributor having a liability of $120,000 $250,000 or
34.23more during a fiscal year ending June 30, shall remit the June liability for the next year
34.24in the following manner:
34.25    (a) Two business days before June 30 of the year, the distributor shall remit the
34.26actual May liability and 90 81.4 percent of the estimated June liability to the commissioner
34.27and file the return in the form and manner prescribed by the commissioner.
34.28    (b) On or before August 18 of the year, the distributor shall submit a return showing
34.29the actual June liability and pay any additional amount of tax not remitted in June. A
34.30penalty is imposed equal to ten percent of the amount of June liability required to be paid
34.31in June, less the amount remitted in June. However, the penalty is not imposed if the
34.32amount remitted in June equals the lesser of:
34.33    (1) 90 81.4 percent of the actual June liability; or
34.34    (2) 90 81.4 percent of the preceding May's May liability.
35.1EFFECTIVE DATE.This section is effective for taxes remitted after May 30, 2014.

35.2    Sec. 19. Minnesota Statutes 2012, section 297G.03, is amended by adding a
35.3subdivision to read:
35.4    Subd. 5. Microdistillery credit. (a) A qualified distiller producing distilled spirits is
35.5entitled to a tax credit of $1.33 per liter on 100,000 liters sold in any fiscal year beginning
35.6July 1. A qualified distiller may take the credit on the 18th day of each month, but the total
35.7credit allowed may not exceed in any fiscal year the lesser of:
35.8(1) the liability for tax; or
35.9(2) $133,000.
35.10(b) For purposes of this subdivision, "qualified distiller" means a microdistillery
35.11qualifying under section 340A.101, subdivision 17a, in the calendar year immediately
35.12preceding the calendar year for which the credit under this subdivision is claimed.
35.13EFFECTIVE DATE.This section is effective July 1, 2014.

35.14    Sec. 20. Minnesota Statutes 2012, section 297G.09, subdivision 9, is amended to read:
35.15    Subd. 9. Accelerated tax payment; penalty. A person liable for tax under this
35.16chapter having a liability of $120,000 $250,000 or more during a fiscal year ending June
35.1730, shall remit the June liability for the next year in the following manner:
35.18    (a) Two business days before June 30 of the year, the taxpayer shall remit the actual
35.19May liability and 90 81.4 percent of the estimated June liability to the commissioner and
35.20file the return in the form and manner prescribed by the commissioner.
35.21    (b) On or before August 18 of the year, the taxpayer shall submit a return showing
35.22the actual June liability and pay any additional amount of tax not remitted in June. A
35.23penalty is imposed equal to ten percent of the amount of June liability required to be paid
35.24in June less the amount remitted in June. However, the penalty is not imposed if the
35.25amount remitted in June equals the lesser of:
35.26    (1) 90 81.4 percent of the actual June liability; or
35.27    (2) 90 81.4 percent of the preceding May liability.
35.28EFFECTIVE DATE.This section is effective for taxes remitted after May 30, 2014.

35.29    Sec. 21. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991,
35.30chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws
35.312003, First Special Session chapter 21, article 8, section 11, and Laws 2008, chapter
35.32154, article 5, section 2, is amended to read:
36.1    Subd. 2. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any
36.2other law, ordinance, or city charter provision to the contrary, the city of Duluth may,
36.3by ordinance, impose an additional sales tax of up to two and one-quarter one and
36.4three-quarter percent on sales transactions which are described in Minnesota Statutes 2000,
36.5section 297A.01, subdivision 3, clause (c). When the city council determines that the taxes
36.6imposed under this subdivision and under Laws 1998, chapter 389, article 8, section 26, at a
36.7rate of one-half of one percent have produced revenue sufficient to pay (1) the debt service
36.8on bonds in a principal amount of $8,000,000 issued for capital improvements to the
36.9Duluth Entertainment and Convention Center, and (2) debt service on outstanding bonds
36.10originally issued in the principal amount of $4,970,000 to finance capital improvements to
36.11the Great Lakes Aquarium since the imposition of the taxes at the rate of one and one-half
36.12percent, the rate of the tax under this subdivision is reduced by one-half of one percent.
36.13 The imposition of this tax shall not be subject to voter referendum under either state law
36.14or city charter provisions. When the city council determines that the taxes imposed under
36.15this subdivision paragraph at a rate of three-quarters of one percent and other sources of
36.16revenue produce revenue sufficient to pay debt service on bonds in the principal amount
36.17of $40,285,000 plus issuance and discount costs, issued for capital improvements at the
36.18Duluth Entertainment and Convention Center, which include a new arena, the rate of tax
36.19under this subdivision must be reduced by three-quarters of one percent.
36.20(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
36.21section 477A.016, or any other law, ordinance, or city charter provision to the contrary,
36.22the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half of
36.23one percent on sales transactions which are described in Minnesota Statutes 2000, section
36.24297A.01, subdivision 3, clause (c). This tax expires when the city council determines
36.25that the tax imposed under this paragraph, along with the tax imposed under section
36.2622, paragraph (b), has produced revenues sufficient to pay the debt service on bonds
36.27in a principal amount of no more than $18,000,000, plus issuance and discount costs,
36.28to finance capital improvements to public facilities to support tourism and recreational
36.29activities in that portion of the city west of 34th Avenue West.
36.30EFFECTIVE DATE.This section is effective the day after the governing body of
36.31the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
36.32645.021, subdivisions 2 and 3.

36.33    Sec. 22. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389,
36.34article 8, section 26, and Laws 2003, First Special Session chapter 21, article 8, section
36.3512, is amended to read:
37.1    Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND
37.2MOTELS.
37.3    (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or
37.4ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
37.5impose an additional tax of one and one-half percent upon the gross receipts from the
37.6sale of lodging for periods of less than 30 days in hotels and motels located in the city.
37.7When the city council determines that the taxes imposed under this section and section 25
37.8at a rate of one-half of one percent have produced revenue sufficient to pay (1) the debt
37.9service on bonds in a principal amount of $8,000,000 issued for capital improvements
37.10for the Duluth Entertainment and Convention Center, and (2) the debt service on
37.11outstanding bonds originally issued in the principal amount of $4,970,000 to finance
37.12capital improvements to the Great Lakes Aquarium since the imposition of the taxes at the
37.13rate of one and one-half percent, the rate of the tax under this section is reduced to one
37.14percent. The tax shall be collected in the same manner as the tax set forth in the Duluth
37.15city charter, section 54(d), paragraph one. The imposition of this tax shall not be subject to
37.16voter referendum under either state law or city charter provisions.
37.17(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes,
37.18section 477A.016, or any other law, ordinance, or city charter provision to the contrary,
37.19the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half
37.20of one percent on the gross receipts from the sale of lodging for periods of less than
37.2130 days in hotels and motels located in the city. This tax expires when the city council
37.22first determines that the tax imposed under this paragraph, along with the tax imposed
37.23under section 21, paragraph (b), has produced revenues sufficient to pay the debt
37.24service on bonds in a principal amount of no more than $18,000,000, plus issuance and
37.25discount costs, to finance capital improvements to public facilities to support tourism and
37.26recreational activities in that portion of the city west of 34th Avenue West.
37.27EFFECTIVE DATE.This section is effective the day after the governing body of
37.28the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
37.29645.021, subdivisions 2 and 3.

37.30    Sec. 23. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision
37.314, is amended to read:
37.32    Subd. 4. Termination of taxes. The taxes imposed under this section expire at the
37.33earlier of (1) ten 15 years after the taxes are first imposed, or (2) when the city council first
37.34determines that the amount of revenues raised to pay for the projects under subdivision 2,
38.1shall meet or exceed the sum of $15,000,000. Any funds remaining after completion of
38.2the projects may be placed in the general fund of the city.
38.3EFFECTIVE DATE.This section is effective the day after compliance by the
38.4governing body of the city of Albert Lea and its chief clerical officer with Minnesota
38.5Statutes, section 645.021, subdivisions 2 and 3.

38.6    Sec. 24. Laws 2006, chapter 259, article 3, section 10, subdivision 3, is amended to read:
38.7    Subd. 3. Use of revenues. (a) Revenues received from the taxes authorized by
38.8subdivisions 1 and 2 must be used to pay the cost of collecting and administering the tax
38.9and to finance the acquisition and betterment of water and wastewater facilities to serve the
38.10cities of Brainerd and Baxter, building and equipping a fire substation, as approved by the
38.11voters at the referendum authorizing the tax. Authorized costs include, but are not limited
38.12to, acquiring property and paying construction and engineering costs related to the projects.
38.13(b) In addition to the projects authorized in paragraph (a), the city of Baxter may,
38.14if approved by the voters at an election under subdivision 5, paragraph (b), allocate up
38.15to an additional $32,000,000 of the revenues received from the taxes authorized by
38.16subdivisions 1 and 2 to a capital infrastructure fund. Money from this fund may only be
38.17used to finance (1) sanitary sewer, storm sewer, and water projects, and (2) transportation
38.18safety improvements.
38.19EFFECTIVE DATE.This section is effective the day after the governing body of
38.20the city of Baxter and its chief clerical officer comply with Minnesota Statutes, section
38.21645.021, subdivisions 2 and 3.

38.22    Sec. 25. Laws 2006, chapter 259, article 3, section 10, subdivision 4, is amended to read:
38.23    Subd. 4. Bonds. (a) The city of Baxter, pursuant to the approval of the voters at the
38.24November 2, 2004, referendum authorizing the imposition of the taxes in this section, may
38.25issue general obligation bonds of the city, in one or more series, in the aggregate principal
38.26amount not to exceed $15,000,000 to finance the projects listed in subdivision 3, paragraph
38.27(a). The debt represented by the bonds is not included in computing any debt limitations
38.28applicable to the city, and the levy of taxes required by Minnesota Statutes, section 475.61,
38.29to pay the principal of and interest on the bonds is not subject to any levy limitation or
38.30included in computing or applying any levy limitation applicable to the city of Baxter.
38.31(b) The city of Baxter, pursuant to the approval of the voters at the 2014 general
38.32election to extend the tax under this section, may issue general obligation bonds of the
38.33city, in one or more series, in the aggregate principal amount not to exceed $32,000,000
39.1plus an amount equal to the costs of issuance of the bonds to finance the projects listed
39.2in subdivision 3, paragraph (b). The debt represented by the bonds is not included in
39.3computing any debt limitations applicable to the city, and the levy of taxes required by
39.4Minnesota Statutes, section 475.61, to pay the principal of and interest on the bonds is not
39.5subject to any levy limitation or included in computing or applying any levy limitation
39.6applicable to the city of Baxter.
39.7EFFECTIVE DATE.This section is effective the day following final enactment.

39.8    Sec. 26. Laws 2006, chapter 259, article 3, section 10, subdivision 5, is amended to read:
39.9    Subd. 5. Termination of taxes. (a) The taxes imposed under subdivisions 1 and 2
39.10expire at the earlier of a date 12 years after the imposition of the tax or when the Baxter
39.11City Council first determines that the amount of revenues raised from the taxes to pay for
39.12the projects under subdivision 3 equals or exceeds $15,000,000 plus any interest on bonds
39.13issued for the projects under subdivision 4, paragraph (a). Any funds remaining after the
39.14expiration of the taxes and retirement of the bonds shall be placed in a capital project fund
39.15of the city of Baxter. The taxes imposed under subdivisions 1 and 2 may expire at an
39.16earlier time if the city of Baxter so determines by ordinance.
39.17(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any
39.18other contrary provision of law, ordinance, or city charter, the city of Baxter may, by
39.19ordinance, extend the taxes authorized under subdivisions 1 and 2 beyond the termination
39.20date in paragraph (a) if approved by the voters of the city at a general election held in
39.212014. The question put to the voters must indicate that an affirmative vote would extend
39.22the imposition of the taxes until 2031 or until an additional $32,000,000, plus an amount
39.23equal to interest and issuance costs associated with bonds issued under subdivision 4,
39.24paragraph (b), above the initial amount authorized to pay for $15,000,000 in bonds and
39.25associated bond cost and projects, listed in subdivision 3, paragraph (a), is raised. If
39.26extended under this paragraph, the taxes authorized in subdivisions 1 and 2 will terminate
39.27at the earlier of (1) when an additional $32,000,000, plus an amount equal to interest and
39.28issuance costs associated with bonds issued under subdivision 4, paragraph (b), above the
39.29amount authorized under paragraph (a), is raised, or (2) December 31, 2031.
39.30EFFECTIVE DATE.This section is effective the day after the governing body of
39.31the city of Baxter and its chief clerical officer comply with Minnesota Statutes, section
39.32645.021, subdivisions 2 and 3.

39.33    Sec. 27. Laws 2006, chapter 259, article 3, section 11, subdivision 3, is amended to read:
40.1    Subd. 3. Use of revenues. (a) Revenues received from the taxes authorized by
40.2subdivisions 1 and 2 must be used to pay the cost of collecting and administering the tax
40.3and to finance all or part of the costs of constructing upgraded water and wastewater
40.4treatment facilities to serve the cities of Brainerd and Baxter, water infrastructure
40.5improvements, and trail development, contingent on approval by Brainerd voters at the
40.6November 7, 2006, referendum. Authorized costs include, but are not limited to, acquiring
40.7property and paying construction and engineering costs related to the projects.
40.8(b) In addition to the projects authorized in paragraph (a), the city of Brainerd may,
40.9if approved by the voters at an election under subdivision 5, paragraph (b), spend up to an
40.10additional $15,000,000 from revenues raised from the taxes authorized in subdivisions 1
40.11and 2 on the following projects:
40.12(1) an upgraded waste treatment facility jointly serving the cities of Brainerd and
40.13Baxter;
40.14(2) with any funds not needed for the project in clause (1), water infrastructure
40.15improvements; and
40.16(3) with any funds not needed for the projects in clauses (1) and (2), trail
40.17improvements.
40.18EFFECTIVE DATE.This section is effective the day after the governing body of
40.19the city of Brainerd and its chief clerical officer comply with Minnesota Statutes, section
40.20645.021, subdivisions 2 and 3.

40.21    Sec. 28. Laws 2006, chapter 259, article 3, section 11, subdivision 4, is amended to read:
40.22    Subd. 4. Bonds. The city of Brainerd, contingent on approval of the voters at
40.23the November 7, 2006, referendum authorizing the imposition of taxes in this section,
40.24may issue general obligation bonds of the city, in one or more series, in the aggregate
40.25principal amount not to exceed $22,030,000 to finance the projects listed in subdivision 3,
40.26paragraph (a). The debt represented by the bonds is not included in computing any debt
40.27limitations applicable to Brainerd, and the levy of taxes required by Minnesota Statutes,
40.28section 475.61, to pay the principal and interest on the bonds is not subject to any levy
40.29limitation or included in computing any levy limitation applicable to the city of Brainerd.
40.30EFFECTIVE DATE.This section is effective the day following final enactment.

40.31    Sec. 29. Laws 2006, chapter 259, article 3, section 11, subdivision 5, is amended to read:
40.32    Subd. 5. Termination of taxes. (a) The taxes imposed under subdivisions 1 and
40.332 expire at the earlier of a date 12 years after the imposition of the tax or when the city
41.1council first determines that the amount of revenues raised from the taxes to pay for
41.2projects under subdivision 3 equals or exceeds $22,030,000 plus any interest on bonds
41.3issued for the projects under subdivision 4. Any funds remaining after the expiration of
41.4the taxes and retirement of the bonds shall be placed in a capital project fund of the city of
41.5Brainerd. The taxes imposed under subdivision 1 and 2 may expire at an earlier time if the
41.6city of Brainerd so determines by ordinance.
41.7(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any
41.8other contrary provision of law, ordinance, or city charter, the city of Brainerd may, by
41.9ordinance, extend the taxes authorized under subdivisions 1 and 2 beyond the termination
41.10date in paragraph (a) if approved by the voters of the city at a general election held in 2014.
41.11The question put to the voters must indicate that an affirmative vote would extend the
41.12imposition of the taxes for an additional 12 years or until an additional $15,000,000 above
41.13the initial amount authorized to pay for $22,030,000 in bonds is raised. If extended under
41.14this paragraph, the taxes authorized in subdivisions 1 and 2 will terminate at the earlier of
41.15(1) when an additional $15,000,000 above the amount authorized under paragraph (a) is
41.16raised, or (2) 12 years after the taxes would have expired under paragraph (a).
41.17EFFECTIVE DATE.This section is effective the day after the governing body of
41.18the city of Brainerd and its chief clerical officer comply with Minnesota Statutes, section
41.19645.021, subdivisions 2 and 3.

41.20    Sec. 30. Laws 2013, chapter 143, article 8, section 37, the effective date, is amended to
41.21read:
41.22EFFECTIVE DATE.This section is effective retroactively to capital investments
41.23made and jobs created after December 31, 2012, and effective retroactively for sales and
41.24purchases made after December 31, 2012, and before July 1, 2019. Applications for
41.25refunds on purchases exempt under this section must not be filed before June 30, 2015.
41.26EFFECTIVE DATE.This section is effective the day following final enactment.

41.27    Sec. 31. VALIDATION OF PRIOR ACT; AUTHORIZATION.
41.28Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of
41.29Albert Lea may approve Laws 2005, First Special Session chapter 3, article 5, section 38,
41.30as amended by Laws 2006, chapter 259, article 3, section 6, and file its approval with the
41.31secretary of state by June 15, 2014. If approved as authorized under this section, actions
41.32undertaken by the city pursuant to the approval of the voters on November 8, 2005, and
42.1otherwise in accordance with Laws 2005, First Special Session chapter 3, article 5, section
42.238, as amended by Laws 2006, chapter 259, article 3, section 6, are validated.
42.3EFFECTIVE DATE.This section is effective the day following final enactment.

42.4    Sec. 32. TEMPORARY SALES TAX AMNESTY; ANIMAL SHELTERS.
42.5(a) Notwithstanding any other law to the contrary, amnesty is provided to any
42.6nonprofit organization that is primarily engaged in the business of rescuing, sheltering, and
42.7finding homes for unwanted animals if the organization registers and begins collecting the
42.8sales and use tax within four months of the day following enactment of this provision. This
42.9amnesty applies to qualifying organizations that are currently not registered to collect the
42.10tax under Minnesota Statutes, chapter 297A, and to qualifying organizations that received
42.11notice of the commencement of an audit and the audit is not yet finally resolved, provided
42.12that the organization was not registered to collect sales and use tax at the time of the audit.
42.13(b) The amnesty shall preclude assessment for uncollected and unpaid sales and use
42.14tax under Minnesota Statutes, chapter 297A, and to local taxes subject to Minnesota
42.15Statutes, section 297A.99, together with penalty and interest for sales made during the
42.16period the qualifying organization was not registered in this state. The amnesty also
42.17applies to unpaid use tax on sales made by the organization during the same period. The
42.18amnesty is not available for sales and use taxes already paid or remitted to the state or to
42.19sales taxes already collected by the seller.
42.20EFFECTIVE DATE.This section is effective the day following final enactment.

42.21    Sec. 33. TEMPORARY SALES TAX AMNESTY; AGRICULTURAL CENTERS.
42.22(a) Notwithstanding any other law to the contrary, amnesty is provided on unpaid
42.23sales tax attributable only to sales of tickets or admissions to a performance or event on
42.24the premises of a tax-exempt organization under section 501(c)(3) of the Internal Revenue
42.25Code, provided that the nonprofit organization is primarily engaged in the business of
42.26preserving Minnesota's rural agricultural heritage and educating the public about rural
42.27history and how farms in Minnesota helped to provide food for the nation and the world,
42.28and begins collecting the sales and use tax on sales of tickets or admissions by July 1, 2014.
42.29(b) An organization qualifies for an exemption under this section if:
42.30(1) the premises of the organization is at least 115 acres;
42.31(2) the performances or events were sponsored and conducted exclusively by
42.32volunteers, employees of the nonprofit organization, or members of the board of directors
42.33of the organization; and
43.1(3) the performances or events were consistent with the organization's purposes
43.2under section 501(c)(3) of the Internal Revenue Code.
43.3(c) This amnesty applies to qualifying organizations that received notice of the
43.4commencement of an audit and the audit is not yet finally resolved.
43.5(d) Amnesty granted under this section precludes assessment for uncollected and
43.6unpaid sales and use tax under Minnesota Statutes, chapter 297A, and to local taxes
43.7subject to Minnesota Statutes, section 297A.99, together with penalty and interest for sales
43.8made during the period beginning December 31, 2008, and ending December 31, 2011.
43.9The amnesty is not available for sales and use taxes already paid or remitted to the state or
43.10to sales taxes already collected by the seller.
43.11EFFECTIVE DATE.This section is effective the day following final enactment.


43.14    Section 1. Minnesota Statutes 2013 Supplement, section 116J.8737, subdivision 2, as
43.15amended by Laws 2014, chapter 150, article 1, section 2, is amended to read:
43.16    Subd. 2. Certification of qualified small businesses. (a) Businesses may apply
43.17to the commissioner for certification as a qualified small business or qualified greater
43.18Minnesota small business for a calendar year. The application must be in the form
43.19and be made under the procedures specified by the commissioner, accompanied by an
43.20application fee of $150. Application fees are deposited in the small business investment
43.21tax credit administration account in the special revenue fund. The application for
43.22certification for 2010 must be made available on the department's Web site by August 1,
43.232010. Applications for subsequent years' certification must be made available on the
43.24department's Web site by November 1 of the preceding year.
43.25(b) Within 30 days of receiving an application for certification under this subdivision,
43.26the commissioner must either certify the business as satisfying the conditions required
43.27of a qualified small business or qualified greater Minnesota small business, request
43.28additional information from the business, or reject the application for certification. If
43.29the commissioner requests additional information from the business, the commissioner
43.30must either certify the business or reject the application within 30 days of receiving the
43.31additional information. If the commissioner neither certifies the business nor rejects
43.32the application within 30 days of receiving the original application or within 30 days of
43.33receiving the additional information requested, whichever is later, then the application is
43.34deemed rejected, and the commissioner must refund the $150 application fee. A business
43.35that applies for certification and is rejected may reapply.
44.1(c) To receive certification as a qualified small business, a business must satisfy
44.2all of the following conditions:
44.3(1) the business has its headquarters in Minnesota;
44.4(2) at least 51 percent of the business's employees are employed in Minnesota, and
44.551 percent of the business's total payroll is paid or incurred in the state;
44.6(3) the business is engaged in, or is committed to engage in, innovation in Minnesota
44.7in one of the following as its primary business activity:
44.8(i) using proprietary technology to add value to a product, process, or service in a
44.9qualified high-technology field;
44.10(ii) researching or developing a proprietary product, process, or service in a qualified
44.11high-technology field; or
44.12(iii) researching or developing a proprietary product, process, or service in the fields
44.13of agriculture, tourism, forestry, mining, manufacturing, or transportation; or
44.14(iii) (iv) researching, developing, or producing a new proprietary technology for use
44.15in the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;
44.16(4) other than the activities specifically listed in clause (3), the business is not
44.17engaged in real estate development, insurance, banking, lending, lobbying, political
44.18consulting, information technology consulting, wholesale or retail trade, leisure,
44.19hospitality, transportation, construction, ethanol production from corn, or professional
44.20services provided by attorneys, accountants, business consultants, physicians, or health
44.21care consultants;
44.22(5) the business has fewer than 25 employees;
44.23(6) the business must pay its employees annual wages of at least 175 percent of the
44.24federal poverty guideline for the year for a family of four and must pay its interns annual
44.25wages of at least 175 percent of the federal minimum wage used for federally covered
44.26employers, except that this requirement must be reduced proportionately for employees
44.27and interns who work less than full-time, and does not apply to an executive, officer, or
44.28member of the board of the business, or to any employee who owns, controls, or holds
44.29power to vote more than 20 percent of the outstanding securities of the business;
44.30(7) the business has (i) not been in operation for more than ten years, or (ii) not
44.31been in operation for more than 20 years if the business is engaged in the research,
44.32development, or production of medical devices or pharmaceuticals for which United
44.33States Food and Drug Administration approval is required for use in the treatment or
44.34diagnosis of a disease or condition;
44.35(8) the business has not previously received private equity investments of more
44.36than $4,000,000;
45.1    (9) the business is not an entity disqualified under section 80A.50, paragraph (b),
45.2clause (3); and
45.3(10) the business has not issued securities that are traded on a public exchange.
45.4(d) In applying the limit under paragraph (c), clause (5), the employees in all members
45.5of the unitary business, as defined in section 290.17, subdivision 4, must be included.
45.6(e) In order for a qualified investment in a business to be eligible for tax credits:
45.7(1) the business must have applied for and received certification for the calendar
45.8year in which the investment was made prior to the date on which the qualified investment
45.9was made;
45.10(2) the business must not have issued securities that are traded on a public exchange;
45.11(3) the business must not issue securities that are traded on a public exchange within
45.12180 days after the date on which the qualified investment was made; and
45.13(4) the business must not have a liquidation event within 180 days after the date on
45.14which the qualified investment was made.
45.15(f) The commissioner must maintain a list of qualified small businesses and qualified
45.16greater Minnesota businesses certified under this subdivision for the calendar year and
45.17make the list accessible to the public on the department's Web site.
45.18(g) For purposes of this subdivision, the following terms have the meanings given:
45.19(1) "qualified high-technology field" includes aerospace, agricultural processing,
45.20renewable energy, energy efficiency and conservation, environmental engineering, food
45.21technology, cellulosic ethanol, information technology, materials science technology,
45.22nanotechnology, telecommunications, biotechnology, medical device products,
45.23pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar fields;
45.24(2) "proprietary technology" means the technical innovations that are unique and
45.25legally owned or licensed by a business and includes, without limitation, those innovations
45.26that are patented, patent pending, a subject of trade secrets, or copyrighted; and
45.27(3) "greater Minnesota" means the area of Minnesota located outside of the
45.28metropolitan area as defined in section 473.121, subdivision 2.
45.29(h) To receive certification as a qualified greater Minnesota business, a business must
45.30satisfy all of the requirements of paragraph (c) and must satisfy the following conditions:
45.31(1) the business has its headquarters in greater Minnesota; and
45.32(2) at least 51 percent of the business's employees are employed in greater Minnesota,
45.33and 51 percent of the business's total payroll is paid or incurred in greater Minnesota.
45.34EFFECTIVE DATE.This section is effective for taxable years beginning after
45.35December 31, 2013.

46.1    Sec. 2. Minnesota Statutes 2012, section 116J.8737, is amended by adding a
46.2subdivision to read:
46.3    Subd. 5a. Promotion of credit in greater Minnesota. (a) By July 1, 2014,
46.4the commissioner shall develop a plan to increase awareness of and use of the credit
46.5for investments in qualified greater Minnesota businesses and minority-owned and
46.6women-owned qualified small businesses with the goal that the portion of the credit
46.7reserved for investments in qualified greater Minnesota businesses and minority-owned
46.8and women-owned qualified small businesses is allocated in full to those investments.
46.9(b) Beginning with the legislative report due on March 15, 2015, under subdivision
46.109, the commissioner shall report on its plan under this subdivision and the results achieved.

46.11    Sec. 3. Minnesota Statutes 2013 Supplement, section 270B.01, subdivision 8, is
46.12amended to read:
46.13    Subd. 8. Minnesota tax laws. For purposes of this chapter only, unless expressly
46.14stated otherwise, "Minnesota tax laws" means:
46.15    (1) the taxes, refunds, and fees administered by or paid to the commissioner under
46.16chapters 115B, 289A (except taxes imposed under sections 298.01, 298.015, and 298.24),
46.17290, 290A, 291, 292, 295, 297A, 297B, 297H, and 403, or any similar Indian tribal tax
46.18administered by the commissioner pursuant to any tax agreement between the state and
46.19the Indian tribal government, and includes any laws for the assessment, collection, and
46.20enforcement of those taxes, refunds, and fees; and
46.21    (2) section 273.1315.
46.22EFFECTIVE DATE.This section is effective the day following final enactment.

46.23    Sec. 4. Minnesota Statutes 2013 Supplement, section 270B.03, subdivision 1, is
46.24amended to read:
46.25    Subdivision 1. Who may inspect. Returns and return information must, on request,
46.26be made open to inspection by or disclosure to the data subject. The request must be made
46.27in writing or in accordance with written procedures of the chief disclosure officer of the
46.28department that have been approved by the commissioner to establish the identification
46.29of the person making the request as the data subject. For purposes of this chapter, the
46.30following are the data subject:
46.31(1) in the case of an individual return, that individual;
46.32(2) in the case of an income tax return filed jointly, either of the individuals with
46.33respect to whom the return is filed;
47.1(3) in the case of a return filed by a business entity, an officer of a corporation,
47.2a shareholder owning more than one percent of the stock, or any shareholder of an S
47.3corporation; a general partner in a partnership; the owner of a sole proprietorship; a
47.4member or manager of a limited liability company; a participant in a joint venture; the
47.5individual who signed the return on behalf of the business entity; or an employee who is
47.6responsible for handling the tax matters of the business entity, such as the tax manager,
47.7bookkeeper, or managing agent;
47.8(4) in the case of an estate return:
47.9(i) the personal representative or trustee of the estate; and
47.10(ii) any beneficiary of the estate as shown on the federal estate tax return;
47.11(5) in the case of a trust return:
47.12(i) the trustee or trustees, jointly or separately; and
47.13(ii) any beneficiary of the trust as shown in the trust instrument;
47.14(6) if liability has been assessed to a transferee under section 270C.58, subdivision
47.151 , the transferee is the data subject with regard to the returns and return information
47.16relating to the assessed liability;
47.17(7) in the case of an Indian tribal government or an Indian tribal government-owned
47.18entity,
47.19(i) the chair of the tribal government, or
47.20(ii) any person authorized by the tribal government; and
47.21(8) in the case of a successor as defined in section 270C.57, subdivision 1, paragraph
47.22(b), the successor is the data subject and information may be disclosed as provided by
47.23section 270C.57, subdivision 4; and.
47.24(9) in the case of a gift return, the donor.
47.25EFFECTIVE DATE.This section is effective the day following final enactment.

47.26    Sec. 5. Minnesota Statutes 2012, section 289A.02, subdivision 7, as amended by Laws
47.272014, chapter 150, article 1, section 7, is amended to read:
47.28    Subd. 7. Internal Revenue Code. Unless specifically defined otherwise, "Internal
47.29Revenue Code" means the Internal Revenue Code of 1986, as amended through December
47.3020, 2013 March 26, 2014.
47.31EFFECTIVE DATE.This section is effective retroactively for taxable years
47.32beginning after December 31, 2012.

48.1    Sec. 6. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19, as
48.2amended by Laws 2014, chapter 150, article 1, section 9, is amended to read:
48.3    Subd. 19. Net income. The term "net income" means the federal taxable income,
48.4as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
48.5date named in this subdivision, incorporating the federal effective dates of changes to the
48.6Internal Revenue Code and any elections made by the taxpayer in accordance with the
48.7Internal Revenue Code in determining federal taxable income for federal income tax
48.8purposes, and with the modifications provided in subdivisions 19a to 19f.
48.9    In the case of a regulated investment company or a fund thereof, as defined in section
48.10851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
48.11company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
48.12except that:
48.13    (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
48.14Revenue Code does not apply;
48.15    (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
48.16Revenue Code must be applied by allowing a deduction for capital gain dividends and
48.17exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
48.18Revenue Code; and
48.19    (3) the deduction for dividends paid must also be applied in the amount of any
48.20undistributed capital gains which the regulated investment company elects to have treated
48.21as provided in section 852(b)(3)(D) of the Internal Revenue Code.
48.22    The net income of a real estate investment trust as defined and limited by section
48.23856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
48.24taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
48.25    The net income of a designated settlement fund as defined in section 468B(d) of
48.26the Internal Revenue Code means the gross income as defined in section 468B(b) of the
48.27Internal Revenue Code.
48.28    The Internal Revenue Code of 1986, as amended through December 20, 2013 March
48.2926, 2014, shall be in effect for taxable years beginning after December 31, 1996.
48.30    Except as otherwise provided, references to the Internal Revenue Code in
48.31subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
48.32the applicable year.
48.33EFFECTIVE DATE.This section is effective the day following final enactment,
48.34except the changes incorporated by federal changes are effective retroactively at the same
48.35time as the changes were effective for federal purposes.

49.1    Sec. 7. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19b, as
49.2amended by Laws 2014, chapter 150, article 1, section 11, is amended to read:
49.3    Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
49.4and trusts, there shall be subtracted from federal taxable income:
49.5    (1) net interest income on obligations of any authority, commission, or
49.6instrumentality of the United States to the extent includable in taxable income for federal
49.7income tax purposes but exempt from state income tax under the laws of the United States;
49.8    (2) if included in federal taxable income, the amount of any overpayment of income
49.9tax to Minnesota or to any other state, for any previous taxable year, whether the amount
49.10is received as a refund or as a credit to another taxable year's income tax liability;
49.11    (3) the amount paid to others, less the amount used to claim the credit allowed under
49.12section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
49.13to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
49.14transportation of each qualifying child in attending an elementary or secondary school
49.15situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
49.16resident of this state may legally fulfill the state's compulsory attendance laws, which
49.17is not operated for profit, and which adheres to the provisions of the Civil Rights Act
49.18of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
49.19tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
49.20"textbooks" includes books and other instructional materials and equipment purchased
49.21or leased for use in elementary and secondary schools in teaching only those subjects
49.22legally and commonly taught in public elementary and secondary schools in this state.
49.23Equipment expenses qualifying for deduction includes expenses as defined and limited in
49.24section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
49.25books and materials used in the teaching of religious tenets, doctrines, or worship, the
49.26purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
49.27or materials for, or transportation to, extracurricular activities including sporting events,
49.28musical or dramatic events, speech activities, driver's education, or similar programs. No
49.29deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
49.30the qualifying child's vehicle to provide such transportation for a qualifying child. For
49.31purposes of the subtraction provided by this clause, "qualifying child" has the meaning
49.32given in section 32(c)(3) of the Internal Revenue Code;
49.33    (4) income as provided under section 290.0802;
49.34    (5) to the extent included in federal adjusted gross income, income realized on
49.35disposition of property exempt from tax under section 290.491;
50.1    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
50.2of the Internal Revenue Code in determining federal taxable income by an individual
50.3who does not itemize deductions for federal income tax purposes for the taxable year, an
50.4amount equal to 50 percent of the excess of charitable contributions over $500 allowable
50.5as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
50.6under the provisions of Public Law 109-1 and Public Law 111-126;
50.7    (7) for individuals who are allowed a federal foreign tax credit for taxes that do not
50.8qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
50.9of subnational foreign taxes for the taxable year, but not to exceed the total subnational
50.10foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
50.11"federal foreign tax credit" means the credit allowed under section 27 of the Internal
50.12Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
50.13under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
50.14the extent they exceed the federal foreign tax credit;
50.15    (8) in each of the five tax years immediately following the tax year in which an
50.16addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a
50.17shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
50.18delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
50.19of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
50.20clause (12), in the case of a shareholder of an S corporation, minus the positive value of
50.21any net operating loss under section 172 of the Internal Revenue Code generated for the
50.22tax year of the addition. The resulting delayed depreciation cannot be less than zero;
50.23    (9) job opportunity building zone income as provided under section 469.316;
50.24    (10) to the extent included in federal taxable income, the amount of compensation
50.25paid to members of the Minnesota National Guard or other reserve components of
50.26the United States military for active service, excluding including compensation for
50.27services performed under the Active Guard Reserve (AGR) program. For purposes of
50.28this clause, "active service" means (i) state active service as defined in section 190.05,
50.29subdivision 5a , clause (1); or (ii) federally funded state active service as defined in section
50.30190.05, subdivision 5b , but and "active service" excludes includes service performed in
50.31accordance with section 190.08, subdivision 3;
50.32    (11) to the extent included in federal taxable income, the amount of compensation
50.33paid to Minnesota residents who are members of the armed forces of the United States
50.34or United Nations for active duty performed under United States Code, title 10; or the
50.35authority of the United Nations;
51.1    (12) an amount, not to exceed $10,000, equal to qualified expenses related to a
51.2qualified donor's donation, while living, of one or more of the qualified donor's organs
51.3to another person for human organ transplantation. For purposes of this clause, "organ"
51.4means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
51.5"human organ transplantation" means the medical procedure by which transfer of a human
51.6organ is made from the body of one person to the body of another person; "qualified
51.7expenses" means unreimbursed expenses for both the individual and the qualified donor
51.8for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
51.9may be subtracted under this clause only once; and "qualified donor" means the individual
51.10or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
51.11individual may claim the subtraction in this clause for each instance of organ donation for
51.12transplantation during the taxable year in which the qualified expenses occur;
51.13    (13) in each of the five tax years immediately following the tax year in which an
51.14addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a
51.15shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
51.16addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the
51.17case of a shareholder of a corporation that is an S corporation, minus the positive value of
51.18any net operating loss under section 172 of the Internal Revenue Code generated for the
51.19tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
51.20subtraction is not allowed under this clause;
51.21    (14) to the extent included in the federal taxable income of a nonresident of
51.22Minnesota, compensation paid to a service member as defined in United States Code, title
51.2310, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
51.24Act, Public Law 108-189, section 101(2);
51.25    (15) to the extent included in federal taxable income, the amount of national service
51.26educational awards received from the National Service Trust under United States Code,
51.27title 42, sections 12601 to 12604, for service in an approved Americorps National Service
51.28program;
51.29(16) to the extent included in federal taxable income, discharge of indebtedness
51.30income resulting from reacquisition of business indebtedness included in federal taxable
51.31income under section 108(i) of the Internal Revenue Code. This subtraction applies only
51.32to the extent that the income was included in net income in a prior year as a result of the
51.33addition under section 290.01, subdivision 19a, clause (13);
51.34(17) the amount of the net operating loss allowed under section 290.095, subdivision
51.3511 , paragraph (c);
52.1(18) the amount of expenses not allowed for federal income tax purposes due
52.2to claiming the railroad track maintenance credit under section 45G(a) of the Internal
52.3Revenue Code;
52.4(19) the amount of the limitation on itemized deductions under section 68(b) of
52.5the Internal Revenue Code; and
52.6(20) the amount of the phaseout of personal exemptions under section 151(d) of
52.7the Internal Revenue Code.; and
52.8(21) for taxable years beginning after December 31, 2013, and before January 1,
52.92015, to the extent included in federal taxable income, discharge of qualified principal
52.10residence indebtedness, as provided in subparagraph (E) of section 108(a)(1) of the
52.11Internal Revenue Code, without regard to whether subparagraph (E) of section 108(a)(1)
52.12of the Internal Revenue Code is in effect for the taxable year.
52.13EFFECTIVE DATE.This section is effective for taxable years beginning after
52.14December 31, 2013.

52.15    Sec. 8. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 31, as
52.16amended by Laws 2014, chapter 150, article 1, section 13, is amended to read:
52.17    Subd. 31. Internal Revenue Code. Unless specifically defined otherwise, "Internal
52.18Revenue Code" means the Internal Revenue Code of 1986, as amended through December
52.1920, 2013 March 26, 2014. Internal Revenue Code also includes any uncodified provision
52.20in federal law that relates to provisions of the Internal Revenue Code that are incorporated
52.21into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1,
52.22subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as
52.23amended through March 18, 2010.
52.24EFFECTIVE DATE.This section is effective the day following final enactment,
52.25except the changes incorporated by federal changes are effective retroactively at the same
52.26time as the changes were effective for federal purposes.

52.27    Sec. 9. Minnesota Statutes 2012, section 290.068, subdivision 1, is amended to read:
52.28    Subdivision 1. Credit allowed. A corporation, partners in a partnership, or
52.29shareholders in a corporation treated as an "S" corporation under section 290.9725 are
52.30 individual, trust, or estate is allowed a credit against the tax computed under this chapter
52.31for the taxable year equal to:
52.32    (a) ten percent of the first $2,000,000 of the excess (if any) of
52.33    (1) the qualified research expenses for the taxable year, over
53.1    (2) the base amount; and
53.2    (b) 2.5 percent on all of such excess expenses over $2,000,000.
53.3EFFECTIVE DATE.This section is effective for taxable years beginning after
53.4December 31, 2013.

53.5    Sec. 10. Minnesota Statutes 2013 Supplement, section 290.091, subdivision 2, as
53.6amended by Laws 2014, chapter 150, article 1, section 21, is amended to read:
53.7    Subd. 2. Definitions. For purposes of the tax imposed by this section, the following
53.8terms have the meanings given:
53.9    (a) "Alternative minimum taxable income" means the sum of the following for
53.10the taxable year:
53.11    (1) the taxpayer's federal alternative minimum taxable income as defined in section
53.1255(b)(2) of the Internal Revenue Code;
53.13    (2) the taxpayer's itemized deductions allowed in computing federal alternative
53.14minimum taxable income, but excluding:
53.15    (i) the charitable contribution deduction under section 170 of the Internal Revenue
53.16Code;
53.17    (ii) the medical expense deduction;
53.18    (iii) the casualty, theft, and disaster loss deduction; and
53.19    (iv) the impairment-related work expenses of a disabled person;
53.20    (3) for depletion allowances computed under section 613A(c) of the Internal
53.21Revenue Code, with respect to each property (as defined in section 614 of the Internal
53.22Revenue Code), to the extent not included in federal alternative minimum taxable income,
53.23the excess of the deduction for depletion allowable under section 611 of the Internal
53.24Revenue Code for the taxable year over the adjusted basis of the property at the end of the
53.25taxable year (determined without regard to the depletion deduction for the taxable year);
53.26    (4) to the extent not included in federal alternative minimum taxable income, the
53.27amount of the tax preference for intangible drilling cost under section 57(a)(2) of the
53.28Internal Revenue Code determined without regard to subparagraph (E);
53.29    (5) to the extent not included in federal alternative minimum taxable income, the
53.30amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and
53.31    (6) the amount of addition required by section 290.01, subdivision 19a, clauses (7)
53.32to (9), and (11) to (14);
53.33    less the sum of the amounts determined under the following:
53.34    (1) interest income as defined in section 290.01, subdivision 19b, clause (1);
54.1    (2) an overpayment of state income tax as provided by section 290.01, subdivision
54.219b , clause (2), to the extent included in federal alternative minimum taxable income;
54.3    (3) the amount of investment interest paid or accrued within the taxable year on
54.4indebtedness to the extent that the amount does not exceed net investment income, as
54.5defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include
54.6amounts deducted in computing federal adjusted gross income;
54.7    (4) amounts subtracted from federal taxable income as provided by section 290.01,
54.8subdivision 19b , clauses (6), (8) to (14), and (16), and (21); and
54.9(5) the amount of the net operating loss allowed under section 290.095, subdivision
54.1011 , paragraph (c).
54.11    In the case of an estate or trust, alternative minimum taxable income must be
54.12computed as provided in section 59(c) of the Internal Revenue Code.
54.13    (b) "Investment interest" means investment interest as defined in section 163(d)(3)
54.14of the Internal Revenue Code.
54.15    (c) "Net minimum tax" means the minimum tax imposed by this section.
54.16    (d) "Regular tax" means the tax that would be imposed under this chapter (without
54.17regard to this section and section 290.032), reduced by the sum of the nonrefundable
54.18credits allowed under this chapter.
54.19    (e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable
54.20income after subtracting the exemption amount determined under subdivision 3.
54.21EFFECTIVE DATE.This section is effective for taxable years beginning after
54.22December 31, 2013.

54.23    Sec. 11. Minnesota Statutes 2013 Supplement, section 290A.03, subdivision 15, as
54.24amended by Laws 2014, chapter 150, article 1, section 22, is amended to read:
54.25    Subd. 15. Internal Revenue Code. "Internal Revenue Code" means the Internal
54.26Revenue Code of 1986, as amended through December 20, 2013 March 26, 2014.
54.27EFFECTIVE DATE.This section is effective retroactively for property tax refunds
54.28based on property taxes payable after December 31, 2013, and rent paid after December
54.2931, 2012.

54.30    Sec. 12. Minnesota Statutes 2013 Supplement, section 291.005, subdivision 1, as
54.31amended by Laws 2014, chapter 150, article 3, section 3, is amended to read:
54.32    Subdivision 1. Scope. Unless the context otherwise clearly requires, the following
54.33terms used in this chapter shall have the following meanings:
55.1    (1) "Commissioner" means the commissioner of revenue or any person to whom the
55.2commissioner has delegated functions under this chapter.
55.3    (2) "Federal gross estate" means the gross estate of a decedent as required to be valued
55.4and otherwise determined for federal estate tax purposes under the Internal Revenue Code.
55.5    (3) "Internal Revenue Code" means the United States Internal Revenue Code of
55.61986, as amended through March 1 March 26, 2014.
55.7    (4) "Minnesota gross estate" means the federal gross estate of a decedent after
55.8(a) excluding therefrom any property included in the estate which has its situs outside
55.9Minnesota, and (b) including any property omitted from the federal gross estate which
55.10is includable in the estate, has its situs in Minnesota, and was not disclosed to federal
55.11taxing authorities.
55.12    (5) "Nonresident decedent" means an individual whose domicile at the time of
55.13death was not in Minnesota.
55.14    (6) "Personal representative" means the executor, administrator or other person
55.15appointed by the court to administer and dispose of the property of the decedent. If there
55.16is no executor, administrator or other person appointed, qualified, and acting within this
55.17state, then any person in actual or constructive possession of any property having a situs in
55.18this state which is included in the federal gross estate of the decedent shall be deemed
55.19to be a personal representative to the extent of the property and the Minnesota estate tax
55.20due with respect to the property.
55.21    (7) "Resident decedent" means an individual whose domicile at the time of death
55.22was in Minnesota.
55.23    (8) "Situs of property" means, with respect to:
55.24    (i) real property, the state or country in which it is located;
55.25    (ii) tangible personal property, the state or country in which it was normally kept
55.26or located at the time of the decedent's death or for a gift of tangible personal property
55.27within three years of death, the state or country in which it was normally kept or located
55.28when the gift was executed; and
55.29    (iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
55.30Code, owned by a nonresident decedent and that is normally kept or located in this state
55.31because it is on loan to an organization, qualifying as exempt from taxation under section
55.32501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is
55.33deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
55.34    (iv) intangible personal property, the state or country in which the decedent was
55.35domiciled at death or for a gift of intangible personal property within three years of death,
55.36the state or country in which the decedent was domiciled when the gift was executed.
56.1    For a nonresident decedent with an ownership interest in a pass-through entity with
56.2assets that include real or tangible personal property, situs of the real or tangible personal
56.3property, including qualified works of art, is determined as if the pass-through entity does
56.4not exist and the real or tangible personal property is personally owned by the decedent.
56.5If the pass-through entity is owned by a person or persons in addition to the decedent,
56.6ownership of the property is attributed to the decedent in proportion to the decedent's
56.7capital ownership share of the pass-through entity.
56.8(9) "Pass-through entity" includes the following:
56.9(i) an entity electing S corporation status under section 1362 of the Internal Revenue
56.10Code;
56.11(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
56.12(iii) a single-member limited liability company or similar entity, regardless of
56.13whether it is taxed as an association or is disregarded for federal income tax purposes
56.14under Code of Federal Regulations, title 26, section 301.7701-3; or
56.15(iv) a trust to the extent the property is includible in the decedent's federal gross
56.16estate; but excludes
56.17    (v) an entity whose ownership interest securities are traded on an exchange regulated
56.18by the Securities and Exchange Commission as a national securities exchange under
56.19section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.
56.20EFFECTIVE DATE.This section is effective retroactively for estates of decedents
56.21dying after December 31, 2013.

56.22    Sec. 13. Laws 2014, chapter 150, article 3, section 4, the effective date, is amended to
56.23read:
56.24EFFECTIVE DATE.This section is effective retroactively for estates of decedents
56.25dying after December 31, 2013, and for taxable gifts made after June 30, 2013.
56.26EFFECTIVE DATE.This section is effective the day following final enactment.

56.27    Sec. 14. DEFINITION OF TAXABLE GIFT FOR DECEDENTS DYING
56.28BEFORE JANUARY 1, 2014.
56.29For estates of decedents dying before January 1, 2014, "taxable gift" as used by
56.30Minnesota Statutes, section 291.005, subdivision 1, paragraph (4), means a transfer by gift
56.31which is included in taxable gifts for federal gift tax purposes under the following sections
56.32of the Internal Revenue Code: section 529; section 530; section 2501(a)(4); section 2503;
56.33sections 2511 to 2514; and sections 2516 to 2519; less the deductions allowed in sections
57.12522 to 2524 of the Internal Revenue Code, and after excluding taxable gifts of any
57.2property that has its situs outside Minnesota and including taxable gifts of any property
57.3that has its situs in Minnesota and were not disclosed to federal taxing authorities.
57.4EFFECTIVE DATE.This section is effective retroactively for taxable gifts made
57.5after June 30, 2013.

57.6    Sec. 15. REPEALER.
57.7Laws 2014, chapter 150, article 1, section 17, is repealed.
57.8EFFECTIVE DATE.This section is effective retroactively for taxable years
57.9beginning after December 31, 2012.


57.12    Section 1. Minnesota Statutes 2012, section 298.75, subdivision 2, is amended to read:
57.13    Subd. 2. Tax imposed. (a) Except as provided in paragraph (e), a county that
57.14imposes the aggregate production tax shall impose upon every operator a production tax
57.15of 21.5 cents per cubic yard or 15 cents per ton of aggregate material excavated in the
57.16county except that the county board may decide not to impose this tax if it determines
57.17that in the previous year operators removed less than 20,000 tons or 14,000 cubic yards of
57.18aggregate material from that county. The tax shall not be imposed on aggregate material
57.19excavated in the county until the aggregate material is transported from the extraction site
57.20or sold, whichever occurs first. When aggregate material is stored in a stockpile within the
57.21state of Minnesota and a public highway, road or street is not used for transporting the
57.22aggregate material, the tax shall not be imposed until either when the aggregate material
57.23is sold, or when it is transported from the stockpile site, or when it is used from the
57.24stockpile, whichever occurs first.
57.25    (b) Except as provided in paragraph (e), a county that imposes the aggregate
57.26production tax under paragraph (a) shall impose upon every importer a production tax
57.27of 21.5 cents per cubic yard or 15 cents per ton of aggregate material imported into the
57.28county. The tax shall be imposed when the aggregate material is imported from the
57.29extraction site or sold. When imported aggregate material is stored in a stockpile within
57.30the state of Minnesota and a public highway, road, or street is not used for transporting
57.31the aggregate material, the tax shall be imposed either when the aggregate material is
57.32sold, when it is transported from the stockpile site, or when it is used from the stockpile,
58.1whichever occurs first. The tax shall be imposed on an importer when the aggregate
58.2material is imported into the county that imposes the tax.
58.3    (c) If the aggregate material is transported directly from the extraction site to a
58.4waterway, railway, or another mode of transportation other than a highway, road or street,
58.5the tax imposed by this section shall be apportioned equally between the county where the
58.6aggregate material is extracted and the county to which the aggregate material is originally
58.7transported. If that destination is not located in Minnesota, then the county where the
58.8aggregate material was extracted shall receive all of the proceeds of the tax.
58.9    (d) A county, city, or town that receives revenue under this section is prohibited
58.10from imposing any additional host community fees on aggregate production within that
58.11county, city, or town.
58.12(e) A county that borders two other states and that is not contiguous to a county
58.13that imposes a tax under this section may impose the taxes under paragraphs (a) and (b)
58.14at the rate of ten cents per cubic yard or seven cents per ton. This paragraph expires
58.15December 31, 2014.
58.16EFFECTIVE DATE.This section is effective the day following final enactment.

58.17    Sec. 2. Laws 2008, chapter 366, article 10, section 15, is amended to read:
58.18    Sec. 15. 2008 DISTRIBUTIONS ONLY.
58.19    For distribution in 2008 only, a special fund is established to receive 11.4 cents per ton
58.20that otherwise would be allocated under Minnesota Statutes, section 298.28, subdivision 6.
58.21If sufficient funds are not available under Minnesota Statutes, section 298.28, subdivision
58.226 , to make the payments required under this section and under Minnesota Statutes, section
58.23298.28, subdivision 6 , the remaining amount needed to total 11.4 cents per ton may be
58.24taken from funds available under Minnesota Statutes, section 298.28, subdivision 9. If
58.252008 H.F. No. 1812 is enacted and includes a provision that distributes funds that would
58.26otherwise be allocated under Minnesota Statutes, section 298.28, subdivision 6, in a
58.27manner different from the distribution required in this section, the distribution in this
58.28section supersedes the distribution set in 2008 H.F. No. 1812 notwithstanding Minnesota
58.29Statutes, section 645.26. The following amounts are allocated to St. Louis County acting
58.30as the fiscal agent for the recipients for the following specified purposes:
58.31    (1) two cents per ton must be paid to the Hibbing Economic Development Authority
58.32to retire bonds and for economic development purposes;
58.33    (2) one cent per ton must be divided among and paid in equal shares to each of the
58.34board of St. Louis County School District No. 2142, the board of Ely School District No.
58.35696, the board of Mountain Iron-Buhl School District No. 712, and the board of Virginia
59.1School District No. 706 for each to study the potential for and impact of consolidation
59.2and streamlining the operations of their school districts;
59.3    (3) 0.25 cent per ton must be paid to the city of Grand Rapids, for industrial park work;
59.4    (4) 0.65 cent per ton must be paid to the city of Aitkin, for sewer and water for
59.5housing economic development projects;
59.6    (5) 0.5 cent per ton must be paid to the city of Crosby, for well and water tower
59.7infrastructure;
59.8    (6) 0.5 cent per ton must be paid to the city of Two Harbors, for well and water
59.9tower infrastructure;
59.10    (7) 1.5 cents per ton must be paid to the city of Silver Bay to pay for health and
59.11safety and maintenance improvements at a former elementary school building that is
59.12currently owned by the city, to be used for economic development purposes;
59.13    (8) 1.5 cents per ton must be paid to St. Louis County to extend water and sewer
59.14lines from the city of Chisholm to the St. Louis County fairgrounds;
59.15    (9) 1.5 cents per ton must be paid to the White Community Hospital for debt
59.16restructuring;
59.17    (10) 0.5 cent per ton must be paid to the city of Keewatin for street, sewer, and
59.18water improvements;
59.19    (11) 0.5 cent per ton must be paid to the city of Calumet for street, sewer, and water
59.20improvements; and
59.21    (12) one cent per ton must be paid to Breitung township for sewer and water
59.22extensions associated with the development of a state park, provided that if a new state
59.23park is not established in Breitung township by July 1, 2009, the money provided in
59.24this clause must be transferred to the northeast Minnesota economic development fund
59.25established in Minnesota Statutes, section 298.2213.
59.26EFFECTIVE DATE.This section is effective the day following final enactment.
59.27Upon enactment, the city of Aitkin must release all funds under this section to St. Louis
59.28County acting as fiscal agent by July 1, 2014.

59.29    Sec. 3. Laws 2013, chapter 143, article 11, section 10, is amended to read:
59.30    Sec. 10. 2013 DISTRIBUTION ONLY.
59.31For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of
59.32any excess of the balance remaining after distribution of amounts required under Minnesota
59.33Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis
59.34County acting as the fiscal agent for the recipients for the following specific purposes:
60.1(1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water
60.2supply system;
60.3(2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities
60.4required as a result of actions undertaken by United States Steel Corporation;
60.5(3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water supply
60.6system, payable upon agreement with ArcelorMittal to satisfy water permit conditions;
60.7(4) 2 cents per ton to the city of Tower for the Tower Marina;
60.8(5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer
60.9system to replace aging effluent lines and for parking lot repaving;
60.10(6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant
60.11improvements;
60.12(7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project;
60.13(8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson
60.14Intermodal Transportation Center;
60.15(9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine
60.16hockey arena renovations;
60.17(10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center
60.18to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and
60.19Greenway Township;
60.20(11) 2.5 cents per ton to the city of Hibbing for the Memorial Building;
60.21(12) 0.7 cents per ton to the city of Chisholm for public works infrastructure;
60.22(13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary
60.23sewer extension;
60.24(14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy;
60.25(15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project;
60.26(16) 1.5 2.0 cents per ton to the city of Cook for street improvements, business park
60.27infrastructure, and a maintenance garage;
60.28(17) 0.5 cents per ton to the city of Cook for a water line project;
60.29(18) (17) 1.8 cents per ton to the city of Eveleth to be used for Jones Street
60.30reconstruction and the city auditorium;
60.31(19) (18) 0.5 cents per ton for the city of Keewatin for an electrical substation and
60.32water line replacements;
60.33(20) (19) 3.3 cents per ton for the city of Virginia for Fourth Street North
60.34infrastructure and Franklin Park improvement; and
60.35(21) (20) 0.5 cents per ton to the city of Grand Rapids for an economic development
60.36project.
61.1EFFECTIVE DATE.This section is effective the day following final enactment.


61.4    Section 1. [383A.155] HOUSING IMPROVEMENT AREAS.
61.5    Subdivision 1. Powers of a housing improvement authority. The Ramsey County
61.6Housing and Redevelopment Authority shall have the powers of a city under sections
61.7428A.11 to 428A.21 to establish housing improvement areas in Ramsey County.
61.8    Subd. 2. Definitions. (a) For purposes of exercising the powers in sections 428A.11
61.9to 428A.21, references in those sections to the terms in paragraphs (b) to (e) have the
61.10meanings given them for purposes of this section.
61.11(b) "Mayor" means the chair of the Ramsey County Housing and Redevelopment
61.12Authority.
61.13(c) "Council" or "governing body of the city" means the Ramsey County Housing
61.14and Redevelopment Authority.
61.15(d) "City clerk" means the person designated by the Ramsey County Housing and
61.16Redevelopment Authority to carry out the duties of the city clerk under sections 428A.11
61.17to 428A.21.
61.18(e) "Enabling ordinance" means a resolution adopted under subdivision 3 by the
61.19Ramsey County Housing and Redevelopment Authority.
61.20    Subd. 3. Establishment of housing improvement areas. The Ramsey County
61.21Housing and Redevelopment Authority may adopt a resolution establishing one or
61.22more housing improvement areas within the county under this section. The Ramsey
61.23County Housing and Redevelopment Authority shall send a copy of each petition for the
61.24establishment of a housing improvement area to the city in which the proposed housing
61.25improvement area is located. The public hearings under sections 428A.13 and 428A.14
61.26may be held at the times and places determined by the Ramsey County Housing and
61.27Redevelopment Authority, except that they must be held at least 30 days after the date the
61.28applicable petition was sent to the city. If the city council adopts a resolution opposing
61.29the establishment within 30 days of the date the copy of the petition was sent to the city
61.30under this subdivision, the Ramsey County Housing and Redevelopment Authority may
61.31not establish the proposed housing improvement area.
61.32    Subd. 4. Applicability. Except as otherwise provided in this section, sections
61.33428A.11 to 428A.21 apply to the establishment of a housing improvement area by the
61.34Ramsey County Housing and Redevelopment Authority.
61.35EFFECTIVE DATE.This section is effective the day following final enactment.

62.1    Sec. 2. Minnesota Statutes 2012, section 383D.41, is amended by adding a subdivision
62.2to read:
62.3    Subd. 11. Tax credit allocation threshold criteria. (a) In addition to the projects
62.4described in section 462A.222, subdivision 3, paragraph (d), the Dakota County
62.5Community Development Agency may allocate tax credits in the first round for up to three
62.6projects of the following type: new construction or substantial rehabilitation multifamily
62.7housing projects that are not restricted to persons who are 55 years of age or older and that
62.8are located within one of the following areas at the time a reservation for tax credits is made:
62.9(1) an area within one-half mile of a completed or planned light rail transit way, bus
62.10rapid transit way, or commuter rail station;
62.11(2) an area within one-fourth mile from any spot along a high-frequency local bus line;
62.12(3) an area within one-half mile from a bus stop or station on a high-frequency
62.13express route;
62.14(4) an area within one-half mile from a park and ride lot; or
62.15(5) an area within one-fourth mile of a high-service public transportation fixed
62.16route stop.
62.17(b) For purposes of this section, the following terms have the meaning given them:
62.18(1) "high-frequency local bus line" means a local bus route providing service at
62.19least every 15 minutes and running between 6:00 a.m. and 7:00 p.m. on weekdays and
62.20between 9:00 a.m. and 6:00 p.m. on Saturdays;
62.21(2) "high-frequency express route" means an express route with bus service
62.22providing six or more trips during at least one of the peak morning hours between 6:00
62.23a.m. and 9:00 a.m. and every ten minutes during the peak morning hour; and
62.24(3) "high-service public transportation fixed route stop" means a stop serviced
62.25between 6:00 a.m. and 7:00 p.m. on weekdays and 9:00 a.m. and 6:00 p.m. on Saturdays
62.26and with service approximately every 30 minutes during that time.
62.27EFFECTIVE DATE.This section is effective beginning with the 2015 allocation of
62.28tax credit.

62.29    Sec. 3. Minnesota Statutes 2012, section 469.1763, subdivision 3, is amended to read:
62.30    Subd. 3. Five-year rule. (a) Revenues derived from tax increments are considered
62.31to have been expended on an activity within the district under subdivision 2 only if one
62.32of the following occurs:
62.33(1) before or within five years after certification of the district, the revenues are
62.34actually paid to a third party with respect to the activity;
63.1(2) bonds, the proceeds of which must be used to finance the activity, are issued and
63.2sold to a third party before or within five years after certification, the revenues are spent
63.3to repay the bonds, and the proceeds of the bonds either are, on the date of issuance,
63.4reasonably expected to be spent before the end of the later of (i) the five-year period, or
63.5(ii) a reasonable temporary period within the meaning of the use of that term under section
63.6148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve
63.7or replacement fund;
63.8(3) binding contracts with a third party are entered into for performance of the
63.9activity before or within five years after certification of the district and the revenues are
63.10spent under the contractual obligation;
63.11(4) costs with respect to the activity are paid before or within five years after
63.12certification of the district and the revenues are spent to reimburse a party for payment
63.13of the costs, including interest on unreimbursed costs; or
63.14(5) expenditures are made for housing purposes as permitted by subdivision 2,
63.15paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted
63.16by subdivision 2, paragraph (e).
63.17(b) For purposes of this subdivision, bonds include subsequent refunding bonds if
63.18the original refunded bonds meet the requirements of paragraph (a), clause (2).
63.19(c) For a redevelopment district or a renewal and renovation district certified after
63.20June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph
63.21(a) are extended to (1) ten years after certification of the district or (2) June 30, 2017,
63.22whichever is later. This extension is provided primarily to accommodate delays in
63.23development activities due to unanticipated economic circumstances.
63.24EFFECTIVE DATE.This section is effective the day following final enactment
63.25and applies to all districts, regardless of when the request for certification was made.

63.26    Sec. 4. Minnesota Statutes 2012, section 469.177, subdivision 3, is amended to read:
63.27    Subd. 3. Tax increment, relationship to chapters 276A and 473F. (a) Unless the
63.28governing body elects pursuant to paragraph (b) the following method of computation
63.29shall apply to a district other than an economic development district for which the request
63.30for certification was made after June 30, 1997:
63.31(1) The original net tax capacity and the current net tax capacity shall be determined
63.32before the application of the fiscal disparity provisions of chapter 276A or 473F. Where
63.33the original net tax capacity is equal to or greater than the current net tax capacity, there is
63.34no captured net tax capacity and no tax increment determination. Where the original net
63.35tax capacity is less than the current net tax capacity, the difference between the original
64.1net tax capacity and the current net tax capacity is the captured net tax capacity. This
64.2amount less any portion thereof which the authority has designated, in its tax increment
64.3financing plan, to share with the local taxing districts is the retained captured net tax
64.4capacity of the authority.
64.5(2) The county auditor shall exclude the retained captured net tax capacity of the
64.6authority from the net tax capacity of the local taxing districts in determining local taxing
64.7district tax rates. The local tax rates so determined are to be extended against the retained
64.8captured net tax capacity of the authority as well as the net tax capacity of the local taxing
64.9districts. The tax generated by the extension of the lesser of (A) the local taxing district
64.10tax rates or (B) the original local tax rate to the retained captured net tax capacity of the
64.11authority is the tax increment of the authority.
64.12(b) The following method of computation applies to any economic development
64.13district for which the request for certification was made after June 30, 1997, and to any
64.14 other district for which the governing body, by resolution approving the tax increment
64.15financing plan pursuant to section 469.175, subdivision 3, elects:
64.16(1) The original net tax capacity shall be determined before the application of the
64.17fiscal disparity provisions of chapter 276A or 473F. The current net tax capacity shall
64.18exclude any fiscal disparity commercial-industrial net tax capacity increase between
64.19the original year and the current year multiplied by the fiscal disparity ratio determined
64.20pursuant to section 276A.06, subdivision 7, or 473F.08, subdivision 6. Where the original
64.21net tax capacity is equal to or greater than the current net tax capacity, there is no captured
64.22net tax capacity and no tax increment determination. Where the original net tax capacity is
64.23less than the current net tax capacity, the difference between the original net tax capacity
64.24and the current net tax capacity is the captured net tax capacity. This amount less any
64.25portion thereof which the authority has designated, in its tax increment financing plan, to
64.26share with the local taxing districts is the retained captured net tax capacity of the authority.
64.27(2) The county auditor shall exclude the retained captured net tax capacity of the
64.28authority from the net tax capacity of the local taxing districts in determining local taxing
64.29district tax rates. The local tax rates so determined are to be extended against the retained
64.30captured net tax capacity of the authority as well as the net tax capacity of the local taxing
64.31districts. The tax generated by the extension of the lesser of (A) the local taxing district
64.32tax rates or (B) the original local tax rate to the retained captured net tax capacity of the
64.33authority is the tax increment of the authority.
64.34(3) An election by the governing body pursuant to paragraph (b) shall be submitted
64.35to the county auditor by the authority at the time of the request for certification pursuant to
64.36subdivision 1.
65.1(c) The method of computation of tax increment applied to a district pursuant to
65.2paragraph (a) or (b) shall remain the same for the duration of the district, except that
65.3the governing body may elect to change its election from the method of computation in
65.4paragraph (a) to the method in paragraph (b).
65.5EFFECTIVE DATE.This section is effective for districts for which the request for
65.6certification is made after June 30, 2014.

65.7    Sec. 5. Laws 2013, chapter 143, article 9, section 23, is amended to read:
65.8    Sec. 23. CITY OF BLOOMINGTON; OLD CEDAR AVENUE BRIDGE.
65.9    (a) Notwithstanding any law to the contrary, the city of Bloomington shall transfer
65.10from the tax increment financing accounts for its Tax Increment Financing District No.
65.111-C and Tax Increment Financing District No. 1-G an amount equal to the tax increment
65.12for each district that is computed under the provisions of Minnesota Statutes, section
65.13473F.08, subdivision 3c , for taxes payable in 2014 to an account or fund established for
65.14the repair, restoration, or replacement of the Old Cedar Avenue bridge for use by bicycle
65.15commuters and recreational users. The city is authorized to and must use the transferred
65.16funds to complete the repair, renovation, or replacement of the bridge. Upon completion
65.17of the repair, renovation, or replacement of the bridge, the city may use any remaining
65.18funds in the account for costs of improving bicycle and pedestrian trails that access the
65.19bridge and that use is deemed to be a permitted use of the increments.
65.20    (b) No signs, plaques, or markers acknowledging or crediting donations for,
65.21sponsorships of, or naming rights may be posted on or in the vicinity of the Old Cedar
65.22Avenue bridge.
65.23EFFECTIVE DATE.This section is effective without local approval under
65.24Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

65.25    Sec. 6. CITY OF EAGAN; TAX INCREMENT FINANCING.
65.26(a) Effective for taxes payable in 2015, the city of Eagan may elect to compute tax
65.27increment for the Cedar Grove Tax Increment Financing District using the current local tax
65.28rate, notwithstanding the provisions of Minnesota Statutes, section 469.177, subdivision 1a.
65.29(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that
65.30activities must be undertaken within a five-year period from the date of certification of a
65.31tax increment financing district, is considered to be met for TIF District 2-5 in the city
65.32of Eagan if the activities are undertaken within seven years from the date of certification
65.33of the district.
66.1EFFECTIVE DATE.This section is effective upon compliance by the governing
66.2body of the city of Eagan with the requirements of Minnesota Statutes, section 645.021,
66.3subdivision 3.

66.4    Sec. 7. CITY OF EDINA; TAX INCREMENT FINANCING.
66.5    Subdivision 1. Authority to create districts. (a) The governing body of the city of
66.6Edina or its development authority may establish one or more tax increment financing
66.7housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries
66.8exist on March 31, 2014.
66.9(b) The authority to request certification of districts under this section expires on
66.10June 30, 2017.
66.11    Subd. 2. Rules governing districts. (a) Housing districts established under this
66.12section are subject to the provisions of Minnesota Statutes, sections 469.174 to 469.1794,
66.13except as otherwise provided in this subdivision.
66.14(b) Notwithstanding the provisions of Minnesota Statutes, section 469.176,
66.15subdivision 1b, no increment must be paid to the authority after 15 years after receipt by
66.16the authority of the first increment from a district established under this section.
66.17(c) Notwithstanding the provisions of Minnesota Statutes, section 469.1761,
66.18subdivision 3, for a residential rental project, the city may elect to substitute "10 percent"
66.19for "40 percent" in the 40-60 test under section 142(d)(1)(B) of the Internal Revenue Code
66.20in determining the applicable income limits.
66.21    Subd. 3. Pooling authority. The city may elect to treat expenditures of increment
66.22from the Southdale 2 district for a housing project of a district established under
66.23this section as expenditures qualifying under Minnesota Statutes, section 469.1763,
66.24subdivision 2, paragraph (d), without regard to whether the housing meets the requirement
66.25of a qualified building under section 42 of the Internal Revenue Code.
66.26EFFECTIVE DATE.This section is effective upon compliance by the governing
66.27body of the city of Edina with the requirements of Minnesota Statutes, section 645.021,
66.28subdivisions 2 and 3.

66.29    Sec. 8. SHOREVIEW TAX INCREMENT FINANCING PILOT PROJECT.
66.30    Subdivision 1. Authority to establish districts. (a) The governing body of the
66.31city of Shoreview or a development authority it designates may establish one or more
66.32economic development tax increment financing districts in the city subject to the special
67.1rules under this section. The purpose of these districts is the retention and expansion of
67.2existing businesses in the city and the attraction of new business to the state to create and
67.3retain high paying jobs.
67.4(b) The authority to establish or approve the tax increment financing plans and
67.5request certification for districts under this section expires on June 30, 2019.
67.6    Subd. 2. Qualified businesses. For purposes of this section, a "qualified business"
67.7must satisfy the following requirements:
67.8(1) the business must qualify under one of the following when the tax increment
67.9financing plan is approved:
67.10(i) it operates at a location in the city of Shoreview;
67.11(ii) it does not have substantial operations in Minnesota; or
67.12(iii) the assistance is provided for relocation of a portion of the business's operation
67.13from another state;
67.14(2) the expansion or location of the operations of the business in the city, as
67.15provided in the business subsidy agreement under Minnesota Statues, sections 116J.993 to
67.16116J.995, will result in an increase in manufacturing, research, service, or professional
67.17jobs, at least 75 percent of which pay an average wage or salary that is equal to or greater
67.18than 25 percent of the median wage or salary for all jobs within the metropolitan area; and
67.19(3) the business is not engaged in making retail sales or in providing other services,
67.20such as legal, medical, accounting, financial, entertainment, or similar, to third parties, at
67.21the location receiving assistance.
67.22    Subd. 3. Applicable rules. (a) Unless otherwise stated, the provisions of Minnesota
67.23Statutes, sections 469.174 to 469.1794, apply to districts established under this section.
67.24(b) Notwithstanding the provisions of section 469.176, subdivision 1b, the duration
67.25limit for districts created under this section is 12 years after the receipt of the first increment.
67.26(c) The provisions of Minnesota Statutes, section 469.176, subdivision 4c, apply
67.27to determining the permitted uses of increments from the districts with the following
67.28exceptions:
67.29(1) any building and facilities must be for a qualified business;
67.30(2) the building and facilities must not be used by the qualified business or its
67.31lessees or tenants to relocate operations from another location in this state outside of the
67.32city of Shoreview;
67.33(3) the 15 percent limit in subdivision 4c, paragraph (a), is increased to 25 percent; and
67.34(4) the city or development authority may elect to deposit up to 20 percent of the
67.35increments in the fund established under subdivision 4. If the city elects to use this
68.1authority, all of the remaining increments must be expended for administrative expenses
68.2or for activities within the district under Minnesota Statutes, section 469.1763.
68.3(d) The governing body of the city may elect, by resolution, to determine the
68.4original and current net tax capacity of a district established under this section using the
68.5computation under Minnesota Statutes, section 469.177, subdivision 3, paragraph (a) or (b).
68.6    Subd. 4. Business retention and expansion fund. (a) The city may establish a
68.7business retention and expansion fund and deposit in the fund:
68.8(1) increments as provided under subdivision 3, paragraph (c), clause (4); and
68.9(2) increments from a district for which the request for certification of the district
68.10was made prior to April 30, 1990, if the amount necessary to meet all of the debt and other
68.11obligations incurred for that district has been received by the city.
68.12(b) Amounts in the fund may be expended to assist qualified businesses, as permitted
68.13under subdivisions 2 and 3, and are not otherwise subject to the restrictions in Minnesota
68.14Statutes, sections 469.174 to 469.1794.
68.15EFFECTIVE DATE.This section is effective upon compliance by the governing
68.16body of the city of Shoreview with the requirements of Minnesota Statutes, section
68.17645.021, subdivision 3.

68.18    Sec. 9. CITY OF NORTH ST. PAUL; TAX INCREMENT FINANCING;
68.19PARCELS DEEMED OCCUPIED.
68.20If the city of North St. Paul authorizes the creation of a redevelopment tax increment
68.21financing district under Minnesota Statutes, section 469.174, subdivision 10, parcel
68.22number 122922330059 is deemed to meet the requirements of Minnesota Statutes, section
68.23469.174, subdivision 10, paragraph (d), notwithstanding any contrary provisions of that
68.24paragraph, if the following conditions are met:
68.25(1) buildings located on the parcel were demolished after the city of North St. Paul
68.26adopted a resolution under Minnesota Statutes, section 469.174, subdivision 10, paragraph
68.27(d), clause (3);
68.28(2) the buildings were removed either by the city of North St. Paul or by the owner
68.29of the property by entering into a development agreement; and
68.30(3) the request for certification of the parcel as part of a district is filed with the
68.31county auditor by December 31, 2016.
68.32EFFECTIVE DATE.This section is effective upon compliance by the governing
68.33body of the city of North St. Paul with the requirements of Minnesota Statutes, section
68.34645.021, subdivisions 2 and 3.


69.3    Section 1. Minnesota Statutes 2012, section 270C.72, subdivision 1, is amended to read:
69.4    Subdivision 1. Tax clearance required. (a) The state or a political subdivision of
69.5the state may not issue, transfer, or renew, and must revoke, a license for the conduct of
69.6a profession, occupation, trade, or business, if the commissioner notifies the licensing
69.7authority that the applicant owes the state delinquent taxes payable to the commissioner,
69.8penalties, or interest. The commissioner may not notify the licensing authority unless the
69.9applicant taxpayer owes $500 or more in delinquent taxes, penalties, or interest, or has
69.10not filed returns. If the applicant taxpayer does not owe delinquent taxes, penalties, or
69.11interest, but has not filed returns, the commissioner may not notify the licensing authority
69.12unless the taxpayer has been given 90 days' written notice to file the returns or show
69.13that the returns are not required to be filed.
69.14(b) Within ten days after receipt of the notification from the commissioner under
69.15paragraph (a), the licensing authority must notify the license holder by certified mail of
69.16the potential revocation of the license for the applicable reason under paragraph (a).
69.17The notice must include a copy of the commissioner's notice to the licensing agency
69.18and information, in the form specified by the commissioner, on the licensee's option for
69.19receiving a tax clearance from the commissioner. The licensing authority must revoke the
69.20license 30 days after receiving the notice from the commissioner, unless it receives a tax
69.21clearance from the commissioner as provided in paragraph (c).
69.22(c) A licensing authority that has received a notice from the commissioner may
69.23issue, transfer, renew, or not revoke the applicant's license only if (a) (1) the commissioner
69.24issues a tax clearance certificate and (b) (2) the commissioner or the applicant forwards a
69.25copy of the clearance to the authority. The commissioner may issue a clearance certificate
69.26only if the applicant does not owe the state any uncontested delinquent taxes, penalties, or
69.27interest and has filed all required returns.
69.28EFFECTIVE DATE.This section is effective July 1, 2014.

69.29    Sec. 2. Minnesota Statutes 2012, section 270C.72, subdivision 3, is amended to read:
69.30    Subd. 3. Notice and hearing. (a) The commissioner, on notifying a licensing
69.31authority pursuant to subdivision 1 not to issue, transfer, or renew a license, must send a
69.32copy of the notice to the applicant. If the applicant requests, in writing, within 30 days
69.33of the date of the notice a hearing, a contested case hearing must be held. The hearing
69.34must be held within 45 days of the date the commissioner refers the case to the Office of
70.1Administrative Hearings. Notwithstanding any law to the contrary, the applicant must be
70.2served with 20 days' notice in writing specifying the time and place of the hearing and the
70.3allegations against the applicant. The notice may be served personally or by mail.
70.4(b) (a) Prior to notifying a licensing authority pursuant to subdivision 1 to revoke a
70.5license, the commissioner must send a notice to the applicant of the commissioner's intent
70.6to require revocation of the license and of the applicant's right to a hearing under paragraph
70.7(a). If the applicant requests a hearing in writing within 30 days of the date of the notice, a
70.8contested case hearing must be held. The hearing must be held within 45 days of the date
70.9the commissioner refers the case to the Office of Administrative Hearings. Notwithstanding
70.10any law to the contrary, the applicant must be served with 20 days notice in writing
70.11specifying the time and place of the hearing and the allegations against the applicant. The
70.12notice may be served personally or by mail. A license is subject to revocation when 30
70.13days have passed following the date of the notice in this paragraph without the applicant
70.14requesting a hearing, or, if a hearing is timely requested, upon final determination of the
70.15hearing under section 14.62, subdivision 1. A license shall be revoked by the licensing
70.16authority within 30 days after receiving notice from the commissioner to revoke.
70.17(b) The commissioner may notify a licensing authority under subdivision 1 only
70.18after the requirements of paragraph (a) have been satisfied.
70.19(c) A hearing under this subdivision is in lieu of any other hearing or proceeding
70.20provided by law arising from any action taken under subdivision 1.
70.21EFFECTIVE DATE.This section is effective July 1, 2014.

70.22    Sec. 3. Minnesota Statutes 2012, section 279.03, subdivision 2, is amended to read:
70.23    Subd. 2. Composite judgment. Amounts included in composite judgments
70.24authorized by section 279.37, subdivision 1, and confessed on or after July 1, 1982, are
70.25subject to interest at the rate determined pursuant to section 549.09. Amounts confessed
70.26under this authority after December 31, 1990, (a) Except as provided in paragraph (b),
70.27amounts included in composite judgments authorized by section 279.37, subdivision 1, are
70.28subject to interest at the rate calculated under subdivision 1a. During each calendar year,
70.29interest shall accrue on the unpaid balance of the composite judgment from the time it is
70.30confessed until it is paid. The rate of interest is subject to change each year in the same
70.31manner that section 549.09 or subdivision 1a, whichever is applicable, for rate changes.
70.32Interest on the unpaid contract balance on judgments confessed before July 1, 1982,
70.33is payable at the rate applicable to the judgment at the time that it was confessed. The
70.34interest rate established at the time the judgment is confessed is fixed for the duration of
70.35that judgment.
71.1(b) A confession of judgment covering any part of a parcel classified as 1a or 1b, and
71.2used as the primary homestead of the owner, is subject to interest at the rate provided in
71.3section 279.37, subdivision 2, paragraph (b).
71.4EFFECTIVE DATE.This section is effective for confession judgments entered
71.5into on or after January 1, 2015.

71.6    Sec. 4. Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is
71.7amended to read:
71.8    Subd. 2. Installment payments. (a) The owner of any such parcel, or any person to
71.9whom the right to pay taxes has been given by statute, mortgage, or other agreement, may
71.10make and file with the county auditor of the county in which the parcel is located a written
71.11offer to pay the current taxes each year before they become delinquent, or to contest the
71.12taxes under Minnesota Statutes 1941, sections 278.01 to 278.13, and agree to confess
71.13judgment for the amount provided, as determined by the county auditor. By filing the
71.14offer, the owner waives all irregularities in connection with the tax proceedings affecting
71.15the parcel and any defense or objection which the owner may have to the proceedings, and
71.16also waives the requirements of any notice of default in the payment of any installment or
71.17interest to become due pursuant to the composite judgment to be so entered. Unless the
71.18property is subject to subdivision 1a, with the offer, the owner shall (i) tender one-tenth of
71.19the amount of the delinquent taxes, costs, penalty, and interest, and (ii) tender all current
71.20year taxes and penalty due at the time the confession of judgment is entered. In the offer,
71.21the owner shall agree to pay the balance in nine equal installments, with interest as provided
71.22in section 279.03, payable annually on installments remaining unpaid from time to time, on
71.23or before December 31 of each year following the year in which judgment was confessed.
71.24(b) If any part of the parcel consists of real estate classified as 1a or 1b and used as the
71.25homestead by the owner of the property, the commissioner of revenue shall set annually
71.26the interest rate on offers made under paragraph (a) at the greater of five percent or two
71.27percent above the prime rate charged by banks during the six-month period ending on
71.28September 30 of that year, rounded to the nearest full percent, provided that the rate must
71.29not exceed the maximum annum rate specified under section 279.03, subdivision 1a. The
71.30rate of interest becomes effective on January 1 of the immediately succeeding year. If a
71.31default occurs in the payments under any confessed judgment entered under this paragraph,
71.32the taxes and penalties due are subject to the interest rate specified in section 279.03.
71.33For the purposes of this subdivision:
72.1(1) the term "prime rate charged by banks" means the average predominant prime
72.2rate quoted by commercial banks to large businesses, as determined by the Board of
72.3Governors of the Federal Reserve System; and
72.4(2) "default" means the cancellation of the confession of judgment due to
72.5nonpayment of the current year tax or failure to make any installment payment required by
72.6this confessed judgment within 60 days from the date on which payment was due.
72.7(c) The interest rate established at the time judgment is confessed is fixed for the
72.8duration of the judgment. By October 15 of each year, the commissioner of revenue must
72.9determine the rate of interest as provided under paragraph (b) and, by November 1 of each
72.10year, must certify the rate to the county auditor.
72.11(d) A qualified property owner eligible to enter into a second confession of judgment
72.12may do so at the interest rate provided in paragraph (b).
72.13(e) Repurchase agreements or contracts for repurchase for properties being
72.14repurchased under section 282.261 are not eligible to receive the interest rate under
72.15paragraph (b).
72.16(f) The offer must be substantially as follows:
72.17"To the court administrator of the district court of ........... county, I, .....................,
72.18am the owner of the following described parcel of real estate located in ....................
72.19county, Minnesota:
72.20.............................. Upon that real estate there are delinquent taxes for the year ........., and
72.21prior years, as follows: (here insert year of delinquency and the total amount of delinquent
72.22taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in
72.23the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and
72.24any defense or objection which I may have to them, and direct judgment to be entered for
72.25the amount stated above, minus the sum of $............, to be paid with this document, which
72.26is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above.
72.27I agree to pay the balance of the judgment in nine or four equal, annual installments, with
72.28interest as provided in section 279.03, payable annually, on the installments remaining
72.29unpaid. I agree to pay the installments and interest on or before December 31 of each year
72.30following the year in which this judgment is confessed and current taxes each year before
72.31they become delinquent, or within 30 days after the entry of final judgment in proceedings
72.32to contest the taxes under Minnesota Statutes, sections 278.01 to 278.13.
72.33Dated .............., ......."
72.34EFFECTIVE DATE.This section shall be effective for confession judgments
72.35entered into on or after January 1, 2015.

73.1    Sec. 5. Minnesota Statutes 2013 Supplement, section 360.531, subdivision 2, is
73.2amended to read:
73.3    Subd. 2. Rate. The tax shall be as follows:

73.4	Base Price		Tax
73.5 73.6	Under $499,999 Not over $500,000		$100
73.7 73.8	over $500,000 to $999,999 but not over $1,000,000		$200
73.9 73.10	over $1,000,000 to $2,499,999 but not over $2,500,000		$2,000
73.11 73.12	over $2,500,000 to $4,999,999 but not over $5,000,000		$4,000
73.13 73.14	over $5,000,000 to $7,499,999 but not over $7,500,000		$7,500
73.15 73.16	over $7,500,000 to $9,999,999 but not over $10,000,000		$10,000
73.17 73.18	over $10,000,000 to $12,499,999 but not over $12,500,000		$12,500
73.19 73.20	over $12,500,000 to $14,999,999 but not over $15,000,000		$15,000
73.21 73.22	over $15,000,000 to $17,499,999 but not over $17,500,000		$17,500
73.23 73.24	over $17,500,000 to $19,999,999 but not over $20,000,000		$20,000
73.25 73.26	over $20,000,000 to $22,499,999 but not over $22,500,000		$22,500
73.27 73.28	over $22,500,000 to $24,999,999 but not over $25,000,000		$25,000
73.29 73.30	over $25,000,000 to $27,499,999 but not over $27,500,000		$27,500
73.31 73.32	over $27,500,000 to $29,999,999 but not over $30,000,000		$30,000
73.33 73.34	over $30,000,000 to $39,999,999 but not over $40,000,000		$50,000
73.35	over $40,000,000 and over		$75,000

73.36EFFECTIVE DATE.This section is effective July 1, 2014, and applies to aircraft
73.37tax due on or after that date.

73.38    Sec. 6. Minnesota Statutes 2012, section 383E.21, subdivision 1, is amended to read:
73.39    Subdivision 1. Authority to levy property taxes and incur debt. (a) To finance the
73.40cost of designing, constructing, and acquiring countywide public safety improvements
73.41and equipment, including personal property, benefiting both Anoka County and the
73.42municipalities located within Anoka County, the governing body of Anoka County may
73.43 levy property taxes for public safety improvements and equipment, and issue:
74.1(1) capital improvement bonds under the provisions of section 373.40 as if the
74.2infrastructure and equipment qualified as a "capital improvement" within the meaning of
74.3section 373.40, subdivision 1, paragraph (b); and
74.4(2) capital notes under the provisions of section 373.01, subdivision 3, as if the
74.5equipment qualified as "capital equipment" within the meaning of section 373.01,
74.6subdivision 3. Personal property acquired with the proceeds of the bonds or capital
74.7notes issued under this section must have an expected useful life at least as long as the
74.8term of debt.
74.9(b) The outstanding principal amount of the bonds and the capital notes issued under
74.10this section may not exceed $8,000,000 at any time. Any bonds or notes issued pursuant
74.11to this section must only be issued after approval by a majority vote of the Anoka County
74.12Joint Law Enforcement Council, a joint powers board.
74.13EFFECTIVE DATE.This section is effective beginning for taxes payable in 2013
74.14and expires under Minnesota Statutes, section 383E.21, subdivision 3.

74.15    Sec. 7. Minnesota Statutes 2012, section 383E.21, subdivision 2, is amended to read:
74.16    Subd. 2. Treatment of levy. Notwithstanding sections 275.065, subdivision 3,
74.17and 276.04, the county may report the tax attributable to any levy to fund public safety
74.18capital improvements or equipment projects approved by the Anoka County Joint Law
74.19Enforcement Council or pay principal and interest on bonds or notes issued under this
74.20section as a separate line item on the proposed property tax notice and the property tax
74.21statement. Notwithstanding any provision in chapter 275 or 373 to the contrary, bonds or
74.22notes issued by Anoka County under this section must not be included in the computation
74.23of the net debt of Anoka County.
74.24EFFECTIVE DATE.This section is effective beginning for taxes payable in 2013
74.25and expires under Minnesota Statutes, section 383E.21, subdivision 3.

74.26    Sec. 8. Minnesota Statutes 2013 Supplement, section 469.169, is amended by adding a
74.27subdivision to read:
74.28    Subd. 20. Additional zone allocations. $3,000,000 is allocated per year for calendar
74.29years 2014 through 2019 for tax reductions in border city enterprise zones and border city
74.30development zones. The commissioner shall allocate this amount among the cities on a
74.31per capita basis. Allocations may be used for tax reductions for that year under either:
74.32(1) the border city enterprise zone program under section 469.171, or for other
74.33offsets of taxes imposed on or remitted by businesses located in the enterprise zone, if
75.1the municipality determines that the granting of the tax reduction or offset is necessary to
75.2retain a business within or attract a business to the zone; or
75.3(2) the border city development zone program under section 469.1732 or 469.1734.
75.4EFFECTIVE DATE.This section is effective July 1, 2014, but only $1,500,000 is
75.5available in calendar year 2014.

75.6    Sec. 9. Minnesota Statutes 2012, section 469.171, subdivision 6, is amended to read:
75.7    Subd. 6. Additional border city tax reductions. In addition to the tax reductions
75.8authorized by subdivision 1, for a border city zone, the following types of tax reductions
75.9may be approved:
75.10(1) a credit against income tax for workers employed in the zone and not qualifying
75.11for a credit under subdivision 1, clause (2), subject to a maximum of $1,500 $3,000 per
75.12employee per year;
75.13(2) a state paid property tax credit for a portion of the property taxes paid by a
75.14commercial or industrial facility located in the zone.
75.15EFFECTIVE DATE.This section is effective the day following final enactment.

75.16    Sec. 10. CARLTON COUNTY; LEVY FOR SOIL AND WATER
75.17CONSERVATION DISTRICT.
75.18    Subdivision 1. Definitions. (a) For the purposes of this section, "district" means
75.19the Carlton County Soil and Water Conservation District.
75.20(b) For the purposes of this section, "county" means Carlton County.
75.21    Subd. 2. Special project levy. Notwithstanding any law to the contrary, the county
75.22may levy ad valorem property taxes on taxable property within the area of its jurisdiction
75.23for the purposes specified in subdivision 3. The proceeds of the tax must be placed in a
75.24separate account and used only for the purposes specified in subdivision 3. The amount
75.25levied is separate from any other amount to be levied for the district by the county under
75.26Minnesota Statutes, section 103C.331, subdivision 16.
75.27    Subd. 3. Purpose; limit on levy amount. (a) The county must allocate the
75.28proceeds of any tax imposed under this section to the district solely to pay principal,
75.29interest, and any associated costs of obtaining and servicing a loan to finance the planning,
75.30constructing, and equipping of an office and storage facility for the district.
75.31(b) The maximum amount of the levy in any year may not exceed the amount
75.32necessary, after deduction of any amount remaining from the levy imposed in prior years,
76.1to pay 105 percent of the principal and interest due in the following calendar year and
76.2through July 1 of the next year.
76.3    Subd. 4. Expiration. (a) This section expires:
76.4(1) following the final payment of principal, interest, and any associated costs of the
76.5loan under subdivision 3, or any loan or other financing that refinanced the original loan; or
76.6(2) if the district does not obtain the loan under subdivision 3 prior to May 1, 2017.
76.7(b) Upon expiration of this section, any amount remaining in the account created
76.8under subdivision 2 must be transferred to the general account of the county and used to
76.9reduce any amount to be levied for the district by the county under Minnesota Statutes,
76.10section 103C.331, subdivision 16, for the following year, and any subsequent years, until
76.11the amount remaining is exhausted.
76.12EFFECTIVE DATE.This section is effective the day following compliance by
76.13Carlton County with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

76.14    Sec. 11. PURPOSE STATEMENTS; TAX EXPENDITURES.
76.15    Subdivision 1. Authority. This section is intended to fulfill the requirement under
76.16Minnesota Statutes, section 3.192, that a bill creating, renewing, or continuing a tax
76.17expenditure provide a purpose for the tax expenditure and a standard or goal against
76.18which its effectiveness may be measured.
76.19    Subd. 2. Income tax subtraction for discharge of indebtedness income. The
76.20provisions of article 4, section 7, clause (21), are intended to exclude from state taxation in
76.212014 amounts otherwise recognizable as income but excluded at the federal level for tax
76.22years 2007 through 2013 in response to the national housing crisis.
76.23    Subd. 3. Income tax subtraction for military pay; Active Guard/Reserve
76.24members of the National Guard. The provisions of article 4, section 7, clause (10), are
76.25intended to provide equitable tax treatment to Minnesota residents who are members of
76.26the National Guard and serve full time in Active Guard/Reserve (AGR) status by allowing
76.27an income tax subtraction for military pay equivalent to that allowed under Minnesota
76.28Statutes, section 290.01, subdivision 19b, clause (11), for Minnesota residents who serve
76.29full time in the armed forces of the United States.
76.30    Subd. 4. Research credit for sole proprietors. The provisions of article 4, section
76.319, are intended to provide equitable tax treatment for Minnesota businesses operated as
77.1sole proprietorships by allowing sole proprietors to claim the research credit on the same
77.2basis as it is allowed for businesses operated as C corporations or pass-through entities.
77.3    Subd. 5. Estate tax situs rule for qualified art. The provisions of article 4, section
77.412, deeming certain qualified art on loan to Minnesota nonprofit entities as property with
77.5a situs outside Minnesota under the estate tax are intended to prevent the Minnesota
77.6estate tax from discouraging nonresident owners of art from loaning it to Minnesota
77.7nonprofit museums.
77.8    Subd. 6. Sales of coin-operated amusement devices defined as sales for resale.
77.9The provisions of article 3, section 9, defining certain coin-operated amusement devices
77.10as sales for resale are intended to reduce tax pyramiding by exempting an input to a
77.11taxable service.
77.12    Subd. 7. Expansion of sales tax exemption for local governments. The provisions
77.13of article 3, sections 12 and 17, modifying the sales tax on certain local government
77.14purchases are intended to reduce the cost of providing local government services,
77.15remove a barrier for intergovernmental cooperation, and reduce existing compliance and
77.16administration costs for local governments.
77.17    Subd. 8. Fund-raising sales by nonprofit groups. The provisions of article 3,
77.18section 13, raising the limit on tax exempt fund-raising by nonprofit organizations is
77.19intended to reflect the impact on inflation over time on the limit and reduce compliance
77.20costs for groups that exceed the limit.
77.21    Subd. 10. Microdistillery credit. The provisions of article 3, section 19, allowing a
77.22microdistillery credit is to relieve small distillers of the burden of paying excise tax on
77.23the distribution of free samples of their products and to encourage the development and
77.24marketing of products by niche distillers in the state.
77.25EFFECTIVE DATE.This section is effective the day following final enactment.


77.28    Section 1. Minnesota Statutes 2012, section 16D.02, subdivision 3, is amended to read:
77.29    Subd. 3. Debt. "Debt" means an amount owed to the state directly, or through a
77.30state agency, on account of a fee, duty, lease, direct loan, loan insured or guaranteed by
77.31the state, rent, service, sale of real or personal property, overpayment, fine, assessment,
77.32penalty, restitution, damages, interest, tax, bail bond, forfeiture, reimbursement, liability
78.1owed, an assignment to the state including assignments under section 256.741, the Social
78.2Security Act, or other state or federal law, recovery of costs incurred by the state, or any
78.3other source of indebtedness to the state. Debt also includes amounts owed to individuals
78.4as a result of civil, criminal, or administrative action brought by the state or a state agency
78.5pursuant to its statutory authority or for which the state or state agency acts in a fiduciary
78.6capacity in providing collection services in accordance with the regulations adopted under
78.7the Social Security Act at Code of Federal Regulations, title 45, section 302.33. When
78.8the commissioner provides collection services pursuant to a debt qualification plan to a
78.9referring agency, debt also includes an amount owed to the courts, local government
78.10units, Minnesota state colleges and universities governed by the Board of Trustees of the
78.11Minnesota State Colleges and Universities, or University of Minnesota.
78.12EFFECTIVE DATE.This section is effective the day following final enactment.

78.13    Sec. 2. Minnesota Statutes 2012, section 16D.02, subdivision 6, is amended to read:
78.14    Subd. 6. Referring agency. "Referring agency" means a state agency, local
78.15government unit, Minnesota state colleges and universities governed by the Board of
78.16Trustees of the Minnesota State Colleges and Universities, University of Minnesota, or a
78.17court, that has entered into a debt qualification plan an agreement with the commissioner
78.18to refer debts to the commissioner for collection.
78.19EFFECTIVE DATE.This section is effective the day following final enactment.

78.20    Sec. 3. Minnesota Statutes 2012, section 16D.04, subdivision 3, is amended to read:
78.21    Subd. 3. Services. The commissioner shall provide collection services for a state
78.22agency, and may provide for collection services for a court, in accordance with the terms and
78.23conditions of a signed debt qualification plan referring agencies other than state agencies.
78.24EFFECTIVE DATE.This section is effective the day following final enactment.

78.25    Sec. 4. Minnesota Statutes 2012, section 16D.04, subdivision 4, is amended to read:
78.26    Subd. 4. Authority to contract. The commissioners commissioner of revenue and
78.27management and budget may contract with credit bureaus, private collection agencies, and
78.28other entities as necessary for the collection of debts. A private collection agency acting
78.29under a contract with the commissioner of revenue or management and budget is subject
78.30to sections 332.31 to 332.45, except that the private collection agency may indicate that it
78.31is acting under a contract with the state. The commissioner may not delegate the powers
78.32provided under section 16D.08 to any nongovernmental entity.
79.1EFFECTIVE DATE.This section is effective the day following final enactment.

79.2    Sec. 5. Minnesota Statutes 2012, section 16D.07, is amended to read:
79.316D.07 NOTICE TO DEBTOR.
79.4The referring agency shall send notice to the debtor by United States mail or
79.5personal delivery at the debtor's last known address at least 20 days before the debt is
79.6referred to the commissioner. The notice must state the nature and amount of the debt,
79.7identify to whom the debt is owed, and inform the debtor of the remedies available under
79.8this chapter. The referring agency shall advise the debtor of collection costs imposed
79.9under section 16D.11 and of the debtor's right to cancellation of collection costs under
79.10section 16D.11, subdivision 3.
79.11EFFECTIVE DATE.This section is effective the day following final enactment.

79.12    Sec. 6. Minnesota Statutes 2012, section 16D.11, subdivision 1, is amended to read:
79.13    Subdivision 1. Imposition. As determined by the commissioner of management and
79.14budget revenue, collection costs shall be added to the debts referred to the commissioner
79.15or private collection agency for collection. Collection costs are collectible by the
79.16commissioner or private agency from the debtor at the same time and in the same
79.17manner as the referred debt. The referring agency shall advise the debtor of collection
79.18costs under this section and the debtor's right to cancellation of collection costs under
79.19subdivision 3 at the time the agency sends notice to the debtor under section 16D.07.
79.20 If the commissioner or private agency collects an amount less than the total due, the
79.21payment is applied proportionally to collection costs and the underlying debt unless
79.22the commissioner of management and budget has waived this requirement for certain
79.23categories of debt pursuant to the department's internal guidelines. Collection costs
79.24collected by the commissioner under this subdivision or retained under subdivision 6 shall
79.25be deposited in the general fund as nondedicated receipts. Collection costs collected by
79.26private agencies are appropriated to the referring agency to pay the collection fees charged
79.27by the private agency. Collections of collection costs in excess of collection agency fees
79.28must be deposited in the general fund as nondedicated receipts.
79.29EFFECTIVE DATE.This section is effective the day following final enactment.

79.30    Sec. 7. Minnesota Statutes 2012, section 16D.11, subdivision 3, is amended to read:
79.31    Subd. 3. Cancellation. Collection costs imposed under subdivision 1 shall be
79.32canceled and subtracted from the amount due if:
80.1(1) the debtor's household income as defined in section 290A.03, subdivision 5,
80.2excluding the exemption subtractions in subdivision 3, paragraph (3) of that section, for
80.3the 12 months preceding the date of referral is less than twice the annual federal poverty
80.4guideline under United States Code, title 42, section 9902, subsection (2);
80.5(2) within 60 days after the first contact with the debtor by the enterprise
80.6 commissioner or collection agency, the debtor establishes reasonable cause for the failure
80.7to pay the debt prior to referral of the debt to the enterprise commissioner;
80.8(3) a good faith dispute as to the legitimacy or the amount of the debt is made,
80.9and payment is remitted or a payment agreement is entered into within 30 days after
80.10resolution of the dispute;
80.11(4) good faith litigation occurs and the debtor's position is substantially justified, and
80.12if the debtor does not totally prevail, the debt is paid or a payment agreement is entered
80.13into within 30 days after the judgment becomes final and nonappealable; or
80.14(5) collection costs have been added by the referring agency and are included in
80.15the amount of the referred debt.
80.16EFFECTIVE DATE.This section is effective the day following final enactment.

80.17    Sec. 8. Minnesota Statutes 2012, section 16D.11, subdivision 7, is amended to read:
80.18    Subd. 7. Adjustment of rate. By June 1 of each year, the commissioner shall
80.19determine the rate of collection costs for debts referred to the enterprise commissioner
80.20 during the next fiscal year. The rate is a percentage of the debts in an amount that most
80.21nearly equals the costs of the enterprise commissioner necessary to process and collect
80.22referred debts under this chapter. In no event shall the rate of the collection costs exceed
80.2325 percent of the debt. Determination of the rate of collection costs under this section is
80.24not subject to the fee setting requirements of section 16A.1283.
80.25EFFECTIVE DATE.This section is effective the day following final enactment.

80.26    Sec. 9. Minnesota Statutes 2012, section 84A.20, subdivision 2, is amended to read:
80.27    Subd. 2. County proposal to state. Under certain conditions, The board of county
80.28commissioners of any county may by resolution propose to the state that one or more
80.29areas in the county be taken over by the state for afforestation, reforestation, flood control
80.30projects, or other state purposes. The projects are to be managed, controlled, and used for
80.31the purposes in subdivision 1 on lands to be acquired by the state within the projects, as set
80.32forth in sections 84A.20 to 84A.30. The county board may propose this if (1) the county
80.33contains lands suitable for the purposes in subdivision 1, (2) on January 1, 1931, the taxes
81.1on more than 35 percent of the taxable land in the county are delinquent, (3) on January 1,
81.21931, the county's bonded ditch indebtedness, including accrued interest, equals or exceeds
81.3nine percent of the assessed valuation of the county, exclusive of money and credits.
81.4The area taken over must include lands that have been assessed for all or part of
81.5the cost of the establishment and construction of public drainage ditches under state law,
81.6and on which the assessments or installments are delinquent. A certified copy of the
81.7county board's resolution must be filed with the department and considered and acted
81.8upon by the department. If approved by the department, it must then be submitted to,
81.9considered, and acted upon by the executive council. If approved by the Executive
81.10Council, the proposition must be formally accepted by the governor. Acceptance must be
81.11communicated in writing to and filed with the county auditor.
81.12EFFECTIVE DATE.This section is effective the day following final enactment.

81.13    Sec. 10. Minnesota Statutes 2012, section 84A.31, subdivision 2, is amended to read:
81.14    Subd. 2. County proposal to state. Under certain conditions, The board of county
81.15commissioners of any county may by resolution propose that the state take over part of the
81.16tax-delinquent lands in the county. The board may propose this if:
81.17(1) the county contains land suitable for the purposes in subdivision 1;.
81.18(2) on January 1, 1933, the taxes on more than 25 percent of the acreage of the lands
81.19in a town in the county are delinquent, as shown by its tax books;
81.20(3) on January 1, 1933, the taxes or ditch assessments on more than 50 percent of the
81.21acreage of the lands to be taken over are delinquent, as shown by the county's tax books; and
81.22(4) on January 1, 1933, the bonded ditch indebtedness of the county equals or
81.23exceeds 15 percent of the assessed value of the county for 1932 as fixed by the Minnesota
81.24Tax Commission, exclusive of money and credits.
81.25EFFECTIVE DATE.This section is effective the day following final enactment.

81.26    Sec. 11. Minnesota Statutes 2012, section 115B.49, subdivision 4, is amended to read:
81.27    Subd. 4. Registration; fees. (a) The owner or operator of a dry cleaning facility
81.28shall register on or before October 1 of each year with the commissioner of revenue in
81.29a manner prescribed by the commissioner of revenue and pay a registration fee for the
81.30facility. The amount of the fee is:
81.31(1) $500, for facilities with a full-time equivalence of fewer than five;
81.32(2) $1,000, for facilities with a full-time equivalence of five to ten; and
81.33(3) $1,500, for facilities with a full-time equivalence of more than ten.
82.1The registration fee must be paid on or before October 18 or the owner or operator
82.2of a dry cleaning facility may elect to pay the fee in equal installments. Installment
82.3payments must be paid on or before October 18, on or before January 18, on or before
82.4April 18, and on or before June 18. All payments made after October 18 bear interest
82.5at the rate specified in section 270C.40.
82.6(b) A person who sells dry cleaning solvents for use by dry cleaning facilities in
82.7the state shall collect and remit to the commissioner of revenue in a the same manner
82.8prescribed by the commissioner of revenue, on or before the 20th day of the month
82.9following the month in which the sales of dry cleaning solvents are made for the taxes
82.10imposed under chapter 297A, a fee of:
82.11(1) $3.50 for each gallon of perchloroethylene sold for use by dry cleaning facilities
82.12in the state;
82.13(2) 70 cents for each gallon of hydrocarbon-based dry cleaning solvent sold for use
82.14by dry cleaning facilities in the state; and
82.15(3) 35 cents for each gallon of other nonaqueous solvents sold for use by dry
82.16cleaning facilities in the state.
82.17(c) The audit, assessment, appeal, collection, enforcement, and administrative
82.18provisions of chapters 270C and 289A apply to the fee imposed by this subdivision. To
82.19enforce this subdivision, the commissioner of revenue may grant extensions to file returns
82.20and pay fees, impose penalties and interest on the annual registration fee under paragraph
82.21(a) and the monthly fee under paragraph (b), and abate penalties and interest in the manner
82.22provided in chapters 270C and 289A. The penalties and interest imposed on taxes under
82.23chapter 297A apply to the fees imposed under this subdivision. Disclosure of data collected
82.24by the commissioner of revenue under this subdivision is governed by chapter 270B.
82.25EFFECTIVE DATE.This section is effective for fees due after June 30, 2014.

82.26    Sec. 12. Minnesota Statutes 2012, section 163.06, subdivision 1, is amended to read:
82.27    Subdivision 1. Levy. The county board of any county in which there are unorganized
82.28townships may levy a tax for road and bridge purposes upon all the real and personal
82.29property in such unorganized townships, exclusive of money and credits taxed under the
82.30provisions of chapter 285.
82.31EFFECTIVE DATE.This section is effective the day following final enactment.

82.32    Sec. 13. Minnesota Statutes 2012, section 270.11, subdivision 1, is amended to read:
83.1    Subdivision 1. To act as State Board of Equalization. The commissioner of
83.2revenue shall have and exercise all the rights, powers and authority by law vested in the
83.3State Board of Equalization, which board of equalization is hereby continued, with full
83.4power and authority to review, modify, and revise all of the acts and proceedings of the
83.5commissioner in so far as they relate to the equalization and valuation of property assessed
83.6for taxation, as prescribed by section 270.12.
83.7EFFECTIVE DATE.This section is effective the day following final enactment.

83.8    Sec. 14. Minnesota Statutes 2012, section 270.12, subdivision 2, is amended to read:
83.9    Subd. 2. Meeting dates; duties. The board shall meet annually between April 15
83.10and June 30 at the office of the commissioner of revenue and examine and compare the
83.11returns of the assessment of the property in the several counties, and equalize the same so
83.12that all the taxable property in the state shall be assessed at its market value, subject to
83.13the following rules:
83.14(1) The board shall add to or deduct from the aggregate valuation of the real property
83.15of every county, which the board believes to be valued below or above its market value in
83.16money, such percent as will bring the same to its market value in money;
83.17(2) The board shall deduct from the aggregate valuation of the real property of every
83.18county, which the board believes to be valued above its market value in money, such
83.19percent as will reduce the same to its market value in money;
83.20(3) (2) If the board believes the valuation for a part of a class determined by a range
83.21of market value under clause (8) (6) or otherwise, a class, or classes of the real property of
83.22any town or district in any county, or the valuation for a part of a class, a class, or classes
83.23of the real property of any county not in towns or cities, should be raised or reduced,
83.24without raising or reducing the other real property of such county, or without raising or
83.25reducing it in the same ratio, the board may add to, or take from, the valuation of a part of
83.26a class, a class, or classes in any one or more of such towns or cities, or of the property not
83.27in towns or cities, such percent as the board believes will raise or reduce the same to its
83.28market value in money;
83.29(4) (3) The board shall add to or take from the aggregate valuation of any part of a
83.30class, a class, or classes of personal property of any county, town, or city, which the
83.31board believes to be valued below or above the market value thereof, such percent as will
83.32raise the same to its market value in money;
83.33(5) The board shall take from the aggregate valuation of any part of a class, a class,
83.34or classes of personal property in any county, town or city, which the board believes to
84.1be valued above the market value thereof, such percent as will reduce the same to its
84.2market value in money;
84.3(6) (4) The board shall not reduce the aggregate valuation of all the property of the
84.4state, as returned by the several county auditors, more than one percent on the whole
84.5valuation thereof;
84.6(7) (5) When it would be of assistance in equalizing values the board may require any
84.7county auditor to furnish statements showing assessments of real and personal property
84.8of any individuals, firms, or corporations within the county. The board shall consider
84.9and equalize such assessments and may increase the assessment of individuals, firms, or
84.10corporations above the amount returned by the county board of equalization when it shall
84.11appear to be undervalued, first giving notice to such persons of the intention of the board
84.12so to do, which notice shall fix a time and place of hearing. The board shall not decrease
84.13any such assessment below the valuation placed by the county board of equalization;
84.14(8) (6) In equalizing values pursuant to this section, the board shall utilize a 12-month
84.15assessment/sales ratio study conducted by the Department of Revenue containing only
84.16sales that are filed in the county auditor's office under section 272.115, by November 1 of
84.17the previous year and that occurred between October 1 of the year immediately preceding
84.18the previous year and September 30 of the previous year.
84.19The assessment/sales ratio study may separate the values of residential property
84.20into market value categories. The board may adjust the market value categories and the
84.21number of categories as necessary to create an adequate sample size for each market value
84.22category. The board may determine the adequate sample size. To the extent practicable,
84.23the methodology used in preparing the assessment/sales ratio study must be consistent
84.24with the most recent Standard on Assessment Sales Ratio Studies published by the
84.25Assessment Standards Committee of the International Association of Assessing Officers.
84.26The board may determine the geographic area used in preparing the study to accurately
84.27equalize values. A sales ratio study separating residential property into market value
84.28categories may not be used as the basis for a petition under chapter 278.
84.29The sales prices used in the study must be discounted for terms of financing. The
84.30board shall use the median ratio as the statistical measure of the level of assessment for
84.31any particular category of property; and
84.32(9) (7) The board shall receive from each county the estimated market values on the
84.33assessment date falling within the study period for all parcels by magnetic tape or other a
84.34 medium as prescribed by the commissioner of revenue.
84.35EFFECTIVE DATE.This section is effective the day following final enactment.

85.1    Sec. 15. Minnesota Statutes 2012, section 270.12, subdivision 4, is amended to read:
85.2    Subd. 4. Public utility property. For purposes of equalization only, public utility
85.3personal property shall be treated as a separate class of property notwithstanding the fact
85.4that its class rate is the same as commercial-industrial property.
85.5EFFECTIVE DATE.This section is effective the day following final enactment.

85.6    Sec. 16. Minnesota Statutes 2012, section 270A.03, subdivision 2, is amended to read:
85.7    Subd. 2. Claimant agency. "Claimant agency" means any state agency, as defined
85.8by section 14.02, subdivision 2, the regents of the University of Minnesota, any district
85.9court of the state, any county, any statutory or home rule charter city, including a city that
85.10is presenting a claim for a municipal hospital or a public library or a municipal ambulance
85.11service, a hospital district, a private nonprofit hospital that leases its building from the
85.12county or city in which it is located, any ambulance service licensed under chapter 144E,
85.13any public agency responsible for child support enforcement, any public agency responsible
85.14for the collection of court-ordered restitution, and any public agency established by
85.15general or special law that is responsible for the administration of a low-income housing
85.16program, and the Minnesota collection enterprise as defined in section 16D.02, subdivision
85.178 , for the purpose of collecting the costs imposed under section 16D.11.
85.18EFFECTIVE DATE.This section is effective the day following final enactment.

85.19    Sec. 17. Minnesota Statutes 2012, section 270B.14, subdivision 3, is amended to read:
85.20    Subd. 3. Administration of enterprise, and job opportunity, and biotechnology
85.21and health sciences industry zone programs. The commissioner may disclose return
85.22information relating to the taxes imposed by chapters 290 and 297A to the Department of
85.23Employment and Economic Development or a municipality with a border city enterprise
85.24zone as defined under section 469.166, but only as necessary to administer the funding
85.25limitations under section 469.169, or to the Department of Employment and Economic
85.26Development and appropriate officials from the local government units in which a
85.27qualified business is located but only as necessary to enforce the job opportunity building
85.28zone benefits under section 469.315, or biotechnology and health sciences industry zone
85.29benefits under section 469.336.
85.30EFFECTIVE DATE.This section is effective the day following final enactment.

85.31    Sec. 18. Minnesota Statutes 2012, section 270C.085, is amended to read:
86.1270C.085 NOTIFICATION REQUIREMENTS; SALES AND USE TAXES.
86.2The commissioner of revenue shall establish a means of electronically notifying
86.3persons holding a sales tax permit under section 297A.84 of any statutory change in
86.4chapter 297A and any issuance or change in any administrative rule, revenue notice, or
86.5sales tax fact sheet or other written information provided by the department explaining the
86.6interpretation or administration of the tax imposed under that chapter. The notification
86.7must indicate the basic subject of the statute, rule, fact sheet, or other material and provide
86.8an electronic link to the material. Any person holding a sales tax permit that provides
86.9an electronic address to the department must receive these notifications unless they
86.10specifically request electronically, or in writing, to be removed from the notification list.
86.11This requirement does not replace traditional means of notifying the general public or
86.12persons without access to electronic communications of changes in the sales tax law. The
86.13electronic notification must begin no later than December 31, 2009.
86.14EFFECTIVE DATE.This section is effective the day following final enactment.

86.15    Sec. 19. Minnesota Statutes 2012, section 270C.52, subdivision 2, is amended to read:
86.16    Subd. 2. Payment agreements. (a) When any portion of any tax payable to the
86.17commissioner together with interest and penalty thereon, if any, has not been paid, the
86.18commissioner may extend the time for payment for a further period. When the authority
86.19of this section is invoked, the extension shall be evidenced by written agreement signed by
86.20the taxpayer and the commissioner, stating the amount of the tax with penalty and interest,
86.21if any, and providing for the payment of the amount in installments.
86.22(b) The agreement may contain a confession of judgment for the amount and for any
86.23unpaid portion thereof. If the agreement contains a confession of judgment, the confession
86.24of judgment must provide that the commissioner may enter judgment against the taxpayer
86.25in the district court of the county of residence as shown upon the taxpayer's tax return for
86.26the unpaid portion of the amount specified in the extension agreement.
86.27(c) The agreement shall provide that it can be terminated, after notice by the
86.28commissioner, if information provided by the taxpayer prior to the agreement was
86.29inaccurate or incomplete, collection of the tax covered by the agreement is in jeopardy,
86.30there is a subsequent change in the taxpayer's financial condition, the taxpayer has failed
86.31to make a payment due under the agreement, or the taxpayer has failed to pay any other
86.32tax or file a tax return coming due after the agreement.
86.33(d) The notice must be given at least 14 calendar days prior to termination, and shall
86.34advise the taxpayer of the right to request a reconsideration from the commissioner of
86.35whether termination is reasonable and appropriate under the circumstances. A request for
87.1reconsideration does not stay collection action beyond the 14-day notice period. If the
87.2commissioner has reason to believe that collection of the tax covered by the agreement
87.3is in jeopardy, the commissioner may proceed under section 270C.36 and terminate the
87.4agreement without regard to the 14-day period.
87.5(e) The commissioner may accept other collateral the commissioner considers
87.6appropriate to secure satisfaction of the tax liability. The principal sum specified in the
87.7agreement shall bear interest at the rate specified in section 270C.40 on all unpaid portions
87.8thereof until the same has been fully paid or the unpaid portion thereof has been entered as
87.9a judgment. The judgment shall bear interest at the rate specified in section 270C.40.
87.10(f) If it appears to the commissioner that the tax reported by the taxpayer is in excess
87.11of the amount actually owing by the taxpayer, the extension agreement or the judgment
87.12entered pursuant thereto shall be corrected. If after making the extension agreement
87.13or entering judgment with respect thereto, the commissioner determines that the tax as
87.14reported by the taxpayer is less than the amount actually due, the commissioner shall
87.15assess a further tax in accordance with the provisions of law applicable to the tax.
87.16(g) The authority granted to the commissioner by this section is in addition to any
87.17other authority granted to the commissioner by law to extend the time of payment or the
87.18time for filing a return and shall not be construed in limitation thereof.
87.19(h) The commissioner shall charge a fee for entering into payment agreements that
87.20reflects the commissioner's costs for entering into payment agreements. The fee is set at
87.21$50 and is charged for entering into a payment agreement, for entering into a new payment
87.22agreement after the taxpayer has defaulted on a prior agreement, and for entering into a
87.23new payment agreement as a result of renegotiation of the terms of an existing agreement.
87.24The fee is paid to the commissioner before the payment agreement becomes effective and
87.25does not reduce the amount of the liability.
87.26EFFECTIVE DATE.This section is effective the day following final enactment.

87.27    Sec. 20. Minnesota Statutes 2012, section 272.01, subdivision 1, is amended to read:
87.28    Subdivision 1. Generally taxable. All real and personal property in this state, and
87.29all personal property of persons residing therein, including the property of corporations,
87.30banks, banking companies, and bankers, is taxable, except Indian lands and such other
87.31property as is by law exempt from taxation.
87.32EFFECTIVE DATE.This section is effective the day following final enactment.

87.33    Sec. 21. Minnesota Statutes 2012, section 272.01, subdivision 3, is amended to read:
88.1    Subd. 3. Exceptions. The provisions of subdivision 2 shall not apply to:
88.2(a) Federal property for which payments are made in lieu of taxes in amounts
88.3equivalent to taxes which might otherwise be lawfully assessed;
88.4(b) Real estate exempt from ad valorem taxes and taxes in lieu thereof which is
88.5leased, loaned, or otherwise made available to telephone companies or electric, light
88.6and power companies upon which personal property consisting of transmission and
88.7distribution lines is situated and assessed pursuant to sections 273.37, 273.38, 273.40
88.8and 273.41, or upon which are situated the communication lines of express, railway, or
88.9telephone or telegraph companies, or pipelines used for the transmission and distribution
88.10of petroleum products, or the equipment items of a cable communications company
88.11subject to sections 238.35 to 238.42;
88.12(c) Property presently owned by any educational institution chartered by the
88.13territorial legislature;
88.14(d) Indian lands;
88.15(e) Property of any corporation organized as a tribal corporation under the Indian
88.16Reorganization Act of June 18, 1934, (Statutes at Large, volume 48, page 984);
88.17(f) Real property owned by the state and leased pursuant to section 161.23 or
88.18161.431 , and acts amendatory thereto;
88.19(g) Real property owned by a seaway port authority on June 1, 1967, upon which
88.20there has been constructed docks, warehouses, tank farms, administrative and maintenance
88.21buildings, railroad and ship terminal facilities and other maritime and transportation
88.22facilities or those directly related thereto, together with facilities for the handling of
88.23passengers and baggage and for the handling of freight and bulk liquids, and personal
88.24property owned by a seaway port authority used or usable in connection therewith, when
88.25said property is leased to a private individual, association or corporation, but only when
88.26such lease provides that the said facilities are available to the public for the loading and
88.27unloading of passengers and their baggage and the handling, storage, care, shipment,
88.28and delivery of merchandise, freight and baggage and other maritime and transportation
88.29activities and functions directly related thereto, but not including property used for grain
88.30elevator facilities; it being the declared policy of this state that such property when
88.31so leased is public property used exclusively for a public purpose, notwithstanding the
88.32one-year limitation in the provisions of section 273.19;
88.33(h) Notwithstanding the provisions of clause (g), when the annual rental received by
88.34a seaway port authority in any calendar year for such leased property exceeds an amount
88.35reasonably required for administrative expense of the authority per year, plus promotional
88.36expense for the authority not to exceed the sum of $100,000 per year, to be expended
89.1when and in the manner decided upon by the commissioners, plus an amount sufficient to
89.2pay all installments of principal and interest due, or to become due, during such calendar
89.3year and the next succeeding year on any revenue bonds issued by the authority, plus
89.425 percent of the gross annual rental to be retained by the authority for improvement,
89.5development, or other contingencies, the authority shall make a payment in lieu of real
89.6and personal property taxes of a reasonable portion of the remaining annual rental to the
89.7county treasurer of the county in which such seaway port authority is principally located.
89.8Any such payments to the county treasurer shall be disbursed by the treasurer on the same
89.9basis as real estate taxes are divided among the various governmental units, but if such
89.10port authority shall have received funds from the state of Minnesota and funds from any
89.11city and county pursuant to Laws 1957, chapters 648, 831, and 849 and acts amendatory
89.12thereof, then such disbursement by the county treasurer shall be on the same basis as real
89.13estate taxes are divided among the various governmental units, except that the portion of
89.14such payments which would otherwise go to other taxing units shall be divided equally
89.15among the state of Minnesota and said county and city.
89.16EFFECTIVE DATE.This section is effective the day following final enactment.

89.17    Sec. 22. Minnesota Statutes 2012, section 272.025, subdivision 1, is amended to read:
89.18    Subdivision 1. Statement of exemption. (a) Except in the case of property owned
89.19by the state of Minnesota or any political subdivision thereof, and property exempt from
89.20taxation under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the
89.21times provided in subdivision 3, a taxpayer claiming an exemption from taxation on
89.22property described in section 272.02, subdivisions 1 2 to 33, must file a statement of
89.23exemption with the assessor of the assessment district in which the property is located.
89.24(b) A taxpayer claiming an exemption from taxation on property described in section
89.25272.02, subdivision 10 , must file a statement of exemption with the commissioner of
89.26revenue, on or before February 15 of each year for which the taxpayer claims an exemption.
89.27(c) In case of sickness, absence or other disability or for good cause, the assessor
89.28or the commissioner may extend the time for filing the statement of exemption for a
89.29period not to exceed 60 days.
89.30(d) The commissioner of revenue shall prescribe the form and contents of the
89.31statement of exemption.
89.32EFFECTIVE DATE.This section is effective the day following final enactment.

89.33    Sec. 23. Minnesota Statutes 2012, section 272.027, subdivision 1, is amended to read:
90.1    Subdivision 1. Electricity generated to produce goods and services. Personal
90.2property used to generate electric power is exempt from property taxation if the electric
90.3power is used to manufacture or produce goods, products, or services, other than electric
90.4power, by the owner of the electric generation plant. Except as provided in subdivisions 2
90.5and 3, The exemption does not apply to property used to produce electric power for sale
90.6to others and does not apply to real property. In determining the value subject to tax,
90.7a proportionate share of the value of the generating facilities, equal to the proportion
90.8that the power sold to others bears to the total generation of the plant, is subject to the
90.9general property tax in the same manner as other property. Power generated in such a
90.10plant and exchanged for an equivalent amount of power that is used for the manufacture or
90.11production of goods, products, or services other than electric power by the owner of the
90.12generating plant is considered to be used by the owner of the plant.
90.13EFFECTIVE DATE.This section is effective the day following final enactment.

90.14    Sec. 24. Minnesota Statutes 2012, section 272.029, subdivision 6, is amended to read:
90.15    Subd. 6. Distribution of revenues. Revenues from the taxes imposed under
90.16subdivision 5 must be part of the settlement between the county treasurer and the county
90.17auditor under section 276.09. The revenue must be distributed by the county auditor or the
90.18county treasurer to local taxing jurisdictions in which the wind energy conversion system
90.19is located as follows: beginning with distributions in 2010, 80 percent to counties; and 20
90.20percent to cities and townships; and for distributions occurring in 2006 to 2009, 80 percent
90.21to counties; 14 percent to cities and townships; and six percent to school districts.
90.22EFFECTIVE DATE.This section is effective the day following final enactment.

90.23    Sec. 25. Minnesota Statutes 2013 Supplement, section 273.032, is amended to read:
90.24273.032 MARKET VALUE DEFINITION.
90.25    (a) Unless otherwise provided, for the purpose of determining any property tax
90.26levy limitation based on market value or any limit on net debt, the issuance of bonds,
90.27certificates of indebtedness, or capital notes based on market value, any qualification to
90.28receive state aid based on market value, or any state aid amount based on market value,
90.29the terms "market value," "estimated market value," and "market valuation," whether
90.30equalized or unequalized, mean the estimated market value of taxable property within the
90.31local unit of government before any of the following or similar adjustments for:
90.32    (1) the market value exclusions under:
90.33    (i) section 273.11, subdivisions 14a and 14c (vacant platted land);
91.1    (ii) section 273.11, subdivision 16 (certain improvements to homestead property);
91.2    (iii) section 273.11, subdivisions 19 and 20 (certain improvements to business
91.3properties);
91.4    (iv) section 273.11, subdivision 21 (homestead property damaged by mold);
91.5    (v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);
91.6    (vi) section 273.13, subdivision 34 (homestead of a disabled veteran or family
91.7caregiver);
91.8    (vii) section 273.13, subdivision 35 (homestead market value exclusion); or
91.9    (2) the deferment of value under:
91.10    (i) the Minnesota Agricultural Property Tax Law, section 273.111;
91.11    (ii) the Aggregate Resource Preservation Law, section 273.1115;
91.12    (iii) (ii) the Minnesota Open Space Property Tax Law, section 273.112;
91.13    (iv) (iii) the rural preserves property tax program, section 273.114; or
91.14    (v) (iv) the Metropolitan Agricultural Preserves Act, section 473H.10; or
91.15    (3) the adjustments to tax capacity for:
91.16    (i) tax increment financing under sections 469.174 to 469.1794;
91.17    (ii) fiscal disparities under chapter 276A or 473F; or
91.18    (iii) powerline credit under section 273.425.
91.19    (b) Estimated market value under paragraph (a) also includes the market value
91.20of tax-exempt property if the applicable law specifically provides that the limitation,
91.21qualification, or aid calculation includes tax-exempt property.
91.22    (c) Unless otherwise provided, "market value," "estimated market value," and
91.23"market valuation" for purposes of property tax levy limitations and calculation of state
91.24aid, refer to the estimated market value for the previous assessment year and for purposes
91.25of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital notes
91.26refer to the estimated market value as last finally equalized.
91.27    (d) For purposes of a provision of a home rule charter or of any special law that is not
91.28codified in the statutes and that imposes a levy limitation based on market value or any limit
91.29on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market
91.30value, the terms "market value," "taxable market value," and "market valuation," whether
91.31equalized or unequalized, mean "estimated market value" as defined in paragraph (a).
91.32EFFECTIVE DATE.This section is effective the day following final enactment.

91.33    Sec. 26. Minnesota Statutes 2012, section 273.061, subdivision 6, is amended to read:
91.34    Subd. 6. Salaries; expenses. The salaries of the county assessor and assistants and
91.35clerical help, shall be fixed by the board of county commissioners and shall be payable in
92.1monthly installments out of the general revenue fund of the county. In counties with a
92.2population of less than 50,000 inhabitants, according to the then last preceding federal
92.3census, the board of county commissioners shall not fix the salary of the county assessor at
92.4an amount below the following schedule:
92.5In counties with a population of less than 6,500, $5,900;
92.6In counties with a population of 6,500 but less than 12,000, $6,200;
92.7In counties with a population of 12,000 but less than 16,000, $6,500;
92.8In counties with a population of 16,000 but less than 21,000, $6,700;
92.9In counties with a population of 21,000 but less than 30,000, $6,900;
92.10In counties with a population of 30,000 but less than 39,500, $7,100;
92.11In counties with a population of 39,500 but less than 50,000, $7,300;
92.12In counties with a population of 50,000 or more, $8,300.
92.13In addition to their salaries, the county assessor and assistants shall be allowed their
92.14expenses for reasonable and necessary travel in the performance of their duties, including
92.15necessary travel, lodging and meal expense incurred by them while attending meetings of
92.16instructions or official hearings called by the commissioner of revenue. These expenses
92.17shall be payable out of the general revenue fund of the county, and shall be allowed on the
92.18same basis as such expenses are allowed to other county officers.
92.19EFFECTIVE DATE.This section is effective the day following final enactment.

92.20    Sec. 27. Minnesota Statutes 2012, section 273.10, is amended to read:
92.21273.10 SCHOOL DISTRICTS.
92.22When assessing personal property the county assessor shall designate the number of
92.23the school district in which each person assessed is liable for tax, by writing the number
92.24of the district opposite each assessment in a column provided for that purpose in the
92.25assessment book. When the personal property of any person is assessable in several
92.26school districts, the amount in each shall be assessed separately, and the name of the
92.27owner placed opposite each amount.
92.28EFFECTIVE DATE.This section is effective the day following final enactment.

92.29    Sec. 28. Minnesota Statutes 2012, section 273.11, subdivision 13, is amended to read:
92.30    Subd. 13. Valuation of income-producing property. Beginning with the 1995
92.31assessment, Only accredited assessors or senior accredited assessors or other licensed
92.32assessors who have successfully completed at least two income-producing property
92.33appraisal courses may value income-producing property for ad valorem tax purposes.
93.1"Income-producing property" as used in this subdivision means the taxable property in
93.2class 3a and 3b in section 273.13, subdivision 24; class 4a and 4c, except for seasonal
93.3recreational property not used for commercial purposes; and class 5 in section 273.13,
93.4subdivision 31 . "Income-producing property" includes any property in class 4e in section
93.5273.13, subdivision 25 , that would be income-producing property under the definition in
93.6this subdivision if it were not substandard. "Income-producing property appraisal course"
93.7as used in this subdivision means a course of study of approximately 30 instructional
93.8hours, with a final comprehensive test. An assessor must successfully complete the final
93.9examination for each of the two required courses. The course must be approved by the
93.10board of assessors.
93.11EFFECTIVE DATE.This section is effective the day following final enactment.

93.12    Sec. 29. Minnesota Statutes 2012, section 273.112, subdivision 6a, is amended to read:
93.13    Subd. 6a. Guidelines issued by commissioner. The commissioner of revenue shall
93.14develop and issue guidelines for qualification by private golf clubs under this section
93.15covering the access to and use of the golf course by members and other adults so as to be
93.16consistent with the purposes and terms of this section. The guidelines shall be mailed to
93.17the county attorney and assessor of each county not later than 60 days following May 26,
93.181989. Within 15 days of receipt of the guidelines from the commissioner, the assessor
93.19shall mail a copy of the guidelines to each golf club in the county.
93.20EFFECTIVE DATE.This section is effective the day following final enactment.

93.21    Sec. 30. Minnesota Statutes 2013 Supplement, section 273.1325, subdivision 2,
93.22is amended to read:
93.23    Subd. 2. Methodology. In making its annual assessment/sales ratio studies, the
93.24Department of Revenue must use a methodology consistent with the most recent Standard
93.25on Assessment Ratio Studies published by the assessment standards committee of the
93.26International Association of Assessing Officers. The commissioner of revenue shall
93.27supplement this general methodology with specific procedures necessary for execution of
93.28the study in accordance with other Minnesota laws impacting the assessment/sales ratio
93.29study. The commissioner shall document these specific procedures in writing and shall
93.30publish the procedures in the State Register, but these procedures will not be considered
93.31"rules" pursuant to the Minnesota Administrative Procedure Act. When property is sold and
93.32the purchaser changes its use in a manner that would result in a change of classification of
93.33the property, the assessment sales ratio study under this subdivision must take into account
94.1that changed classification as soon as practicable. A change in status from homestead to
94.2nonhomestead or from nonhomestead to homestead is not a change under this subdivision.
94.3For purposes of this section, sections 270.12, subdivision 2, clause (8) (6), and 278.05,
94.4subdivision 4 , the commissioner of revenue shall exclude from the assessment/sales ratio
94.5study the sale of any nonagricultural property which does not contain an improvement,
94.6if (1) the statutory basis on which the property's taxable value as most recently assessed
94.7is less than market value as defined in section 273.11, or (2) the property has undergone
94.8significant physical change or a change of use since the most recent assessment.
94.9EFFECTIVE DATE.This section is effective the day following final enactment.

94.10    Sec. 31. Minnesota Statutes 2013 Supplement, section 273.1398, subdivision 3,
94.11is amended to read:
94.12    Subd. 3. Disparity reduction aid. The amount of disparity aid certified for each
94.13taxing district within each unique taxing jurisdiction is the amount certified for taxes
94.14payable in the prior year shall be multiplied by the ratio of (1) the jurisdiction's tax
94.15capacity using the class rates for taxes payable in the year for which aid is being computed,
94.16to (2) its tax capacity using the class rates for taxes payable in the year prior to that for
94.17which aid is being computed, both based upon taxable market values for taxes payable in
94.18the year prior to that for which aid is being computed. If the commissioner determines
94.19that insufficient information is available to reasonably and timely calculate the numerator
94.20in this ratio for the first taxes payable year that a class rate change or new class rate is
94.21effective, the commissioner shall omit the effects of that class rate change or new class
94.22rate when calculating this ratio for aid payable in that taxes payable year. For aid payable
94.23in the year following a year for which such omission was made, the commissioner shall
94.24use in the denominator for the class that was changed or created, the tax capacity for taxes
94.25payable two years prior to that in which the aid is payable, based on taxable market values
94.26for taxes payable in the year prior to that for which aid is being computed.
94.27EFFECTIVE DATE.This section is effective beginning for taxes payable in 2015.

94.28    Sec. 32. Minnesota Statutes 2012, section 273.18, is amended to read:
94.29273.18 LISTING, VALUATION, AND ASSESSMENT OF EXEMPT
94.30PROPERTY BY COUNTY AUDITORS.
94.31(a) In every sixth year after the year 1926 2010, the county auditor shall enter, in
94.32a separate place in the real estate assessment books, the description of each tract of real
94.33property exempt by law from taxation, with the name of the owner, if known, and the
95.1assessor shall value and assess the same in the same manner that other real property is
95.2valued and assessed, and shall designate in each case the purpose for which the property is
95.3used.
95.4(b) For purposes of the apportionment of fire state aid under section 69.021,
95.5subdivision 7 , the county auditor shall include on the abstract of assessment of exempt real
95.6property filed under this section, the total number of acres of all natural resources lands for
95.7which in lieu payments are made under sections 477A.11 to 477A.14. The assessor shall
95.8estimate its market value, provided that if the assessor is not able to estimate the market
95.9value of the land on a per parcel basis, the assessor shall furnish the commissioner of
95.10revenue with an estimate of the average value per acre of this land within the county.
95.11EFFECTIVE DATE.This section is effective the day following final enactment.

95.12    Sec. 33. Minnesota Statutes 2012, section 274.01, subdivision 1, is amended to read:
95.13    Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town
95.14board of a town, or the council or other governing body of a city, is the board of appeal
95.15and equalization except (1) in cities whose charters provide for a board of equalization or
95.16(2) in any city or town that has transferred its local board of review power and duties to
95.17the county board as provided in subdivision 3. The county assessor shall fix a day and
95.18time when the board or the board of equalization shall meet in the assessment districts
95.19of the county. Notwithstanding any law or city charter to the contrary, a city board of
95.20equalization shall be referred to as a board of appeal and equalization. On or before
95.21February 15 of each year the assessor shall give written notice of the time to the city or
95.22town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings
95.23must be held between April 1 and May 31 each year. The clerk shall give published and
95.24posted notice of the meeting at least ten days before the date of the meeting.
95.25    The board shall meet at the office of the clerk to review the assessment and
95.26classification of property in the town or city. No changes in valuation or classification
95.27which are intended to correct errors in judgment by the county assessor may be made by
95.28the county assessor after the board has adjourned in those cities or towns that hold a
95.29local board of review; however, corrections of errors that are merely clerical in nature or
95.30changes that extend homestead treatment to property are permitted after adjournment until
95.31the tax extension date for that assessment year. The changes must be fully documented and
95.32maintained in the assessor's office and must be available for review by any person. A copy
95.33of the changes made during this period in those cities or towns that hold a local board of
95.34review must be sent to the county board no later than December 31 of the assessment year.
96.1    (b) The board shall determine whether the taxable property in the town or city has
96.2been properly placed on the list and properly valued by the assessor. If real or personal
96.3property has been omitted, the board shall place it on the list with its market value, and
96.4correct the assessment so that each tract or lot of real property, and each article, parcel,
96.5or class of personal property, is entered on the assessment list at its market value. No
96.6assessment of the property of any person may be raised unless the person has been
96.7duly notified of the intent of the board to do so. On application of any person feeling
96.8aggrieved, the board shall review the assessment or classification, or both, and correct
96.9it as appears just. The board may not make an individual market value adjustment or
96.10classification change that would benefit the property if the owner or other person having
96.11control over the property has refused the assessor access to inspect the property and the
96.12interior of any buildings or structures as provided in section 273.20. A board member
96.13shall not participate in any actions of the board which result in market value adjustments
96.14or classification changes to property owned by the board member, the spouse, parent,
96.15stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew,
96.16or niece of a board member, or property in which a board member has a financial interest.
96.17The relationship may be by blood or marriage.
96.18    (c) A local board may reduce assessments upon petition of the taxpayer but the total
96.19reductions must not reduce the aggregate assessment made by the county assessor by more
96.20than one percent. If the total reductions would lower the aggregate assessments made by
96.21the county assessor by more than one percent, none of the adjustments may be made. The
96.22assessor shall correct any clerical errors or double assessments discovered by the board
96.23without regard to the one percent limitation.
96.24    (d) A local board does not have authority to grant an exemption or to order property
96.25removed from the tax rolls.
96.26    (e) A majority of the members may act at the meeting, and adjourn from day to day
96.27until they finish hearing the cases presented. The assessor shall attend, with the assessment
96.28books and papers, and take part in the proceedings, but must not vote. The county assessor,
96.29or an assistant delegated by the county assessor shall attend the meetings. The board shall
96.30list separately, on a form appended to the assessment book, all omitted property added
96.31to the list by the board and all items of property increased or decreased, with the market
96.32value of each item of property, added or changed by the board, placed opposite the item.
96.33The county assessor shall enter all changes made by the board in the assessment book.
96.34    (f) Except as provided in subdivision 3, if a person fails to appear in person, by
96.35counsel, or by written communication before the board after being duly notified of the
96.36board's intent to raise the assessment of the property, or if a person feeling aggrieved by an
97.1assessment or classification fails to apply for a review of the assessment or classification,
97.2the person may not appear before the county board of appeal and equalization for a review
97.3of the assessment or classification. This paragraph does not apply if an assessment was
97.4made after the local board meeting, as provided in section 273.01, or if the person can
97.5establish not having received notice of market value at least five days before the local
97.6board meeting.
97.7    (g) The local board must complete its work and adjourn within 20 days from the
97.8time of convening stated in the notice of the clerk, unless a longer period is approved by
97.9the commissioner of revenue. No action taken after that date is valid. All complaints
97.10about an assessment or classification made after the meeting of the board must be heard
97.11and determined by the county board of equalization. A nonresident may, at any time,
97.12before the meeting of the board file written objections to an assessment or classification
97.13with the county assessor. The objections must be presented to the board at its meeting by
97.14the county assessor for its consideration.
97.15EFFECTIVE DATE.This section is effective the day following final enactment.

97.16    Sec. 34. Minnesota Statutes 2012, section 274.01, subdivision 2, is amended to read:
97.17    Subd. 2. Special board; duties delegated. The governing body of a city, including
97.18a city whose charter provides for a board of equalization, may appoint a special board of
97.19review. The city may delegate to the special board of review all of the powers and duties
97.20in subdivision 1. The special board of review shall serve at the direction and discretion
97.21of the appointing body, subject to the restrictions imposed by law. The appointing body
97.22shall determine the number of members of the board, the compensation and expenses to be
97.23paid, and the term of office of each member. At least one member of the special board
97.24of review must be an appraiser, realtor, or other person familiar with property valuations
97.25in the assessment district.
97.26EFFECTIVE DATE.This section is effective the day following final enactment.

97.27    Sec. 35. Minnesota Statutes 2012, section 275.08, subdivision 1a, is amended to read:
97.28    Subd. 1a. Computation of tax capacity. For taxes payable in 1989, the county
97.29auditor shall compute the gross tax capacity for each parcel according to the class rates
97.30specified in section 273.13. The gross tax capacity will be the appropriate class rate
97.31multiplied by the parcel's market value. For taxes payable in 1990 and subsequent years,
97.32 The county auditor shall compute the net tax capacity for each parcel according to the
98.1class rates specified in section 273.13. The net tax capacity will be the appropriate class
98.2rate multiplied by the parcel's market value.
98.3EFFECTIVE DATE.This section is effective the day following final enactment.

98.4    Sec. 36. Minnesota Statutes 2012, section 275.08, subdivision 1d, is amended to read:
98.5    Subd. 1d. Additional adjustment. If, after computing each local government's
98.6adjusted local tax rate within a unique taxing jurisdiction pursuant to subdivision 1c, the
98.7auditor finds that the total adjusted local tax rate of all local governments combined is
98.8less than 90 percent of gross tax capacity for taxes payable in 1989 and 90 percent of net
98.9tax capacity for taxes payable in 1990 and thereafter, the auditor shall increase each local
98.10government's adjusted local tax rate proportionately so the total adjusted local tax rate of
98.11all local governments combined equals 90 percent. The total amount of the increase in
98.12tax resulting from the increased local tax rates must not exceed the amount of disparity
98.13aid allocated to the unique taxing district under section 273.1398. The auditor shall
98.14certify to the Department of Revenue the difference between the disparity aid originally
98.15allocated under section 273.1398, subdivision 3, and the amount necessary to reduce
98.16the total adjusted local tax rate of all local governments combined to 90 percent. Each
98.17local government's disparity reduction aid payment under section 273.1398, subdivision
98.186 , must be reduced accordingly.
98.19EFFECTIVE DATE.This section is effective the day following final enactment.

98.20    Sec. 37. Minnesota Statutes 2013 Supplement, section 275.70, subdivision 5, is
98.21amended to read:
98.22    Subd. 5. Special levies. "Special levies" means those portions of ad valorem taxes
98.23levied by a local governmental unit for the following purposes or in the following manner:
98.24    (1) to pay the costs of the principal and interest on bonded indebtedness or to
98.25reimburse for the amount of liquor store revenues used to pay the principal and interest
98.26due on municipal liquor store bonds in the year preceding the year for which the levy
98.27limit is calculated;
98.28    (2) to pay the costs of principal and interest on certificates of indebtedness issued for
98.29any corporate purpose except for the following:
98.30    (i) tax anticipation or aid anticipation certificates of indebtedness;
98.31    (ii) certificates of indebtedness issued under sections 298.28 and 298.282;
98.32    (iii) certificates of indebtedness used to fund current expenses or to pay the costs of
98.33extraordinary expenditures that result from a public emergency; or
99.1    (iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an
99.2insufficiency in other revenue sources, provided that nothing in this subdivision limits the
99.3special levy authorized under section 475.755;
99.4    (3) to provide for the bonded indebtedness portion of payments made to another
99.5political subdivision of the state of Minnesota;
99.6    (4) to fund payments made to the Minnesota State Armory Building Commission
99.7under section 193.145, subdivision 2, to retire the principal and interest on armory
99.8construction bonds;
99.9    (5) property taxes approved by voters which are levied against the referendum
99.10market value as provided under section 275.61;
99.11    (6) to fund matching requirements needed to qualify for federal or state grants or
99.12programs to the extent that either (i) the matching requirement exceeds the matching
99.13requirement in calendar year 2001, or (ii) it is a new matching requirement that did not
99.14exist prior to 2002;
99.15    (7) to pay the expenses reasonably and necessarily incurred in preparing for or
99.16repairing the effects of natural disaster including the occurrence or threat of widespread
99.17or severe damage, injury, or loss of life or property resulting from natural causes, in
99.18accordance with standards formulated by the Emergency Services Division of the state
99.19Department of Public Safety, as allowed by the commissioner of revenue under section
99.20275.74, subdivision 2 ;
99.21    (8) pay amounts required to correct an error in the levy certified to the county
99.22auditor by a city or county in a levy year, but only to the extent that when added to the
99.23preceding year's levy it is not in excess of an applicable statutory, special law or charter
99.24limitation, or the limitation imposed on the governmental subdivision by sections 275.70
99.25to 275.74 in the preceding levy year;
99.26    (9) to pay an abatement under section 469.1815;
99.27    (10) to pay any costs attributable to increases in the employer contribution rates under
99.28chapter 353, or locally administered pension plans, that are effective after June 30, 2001;
99.29    (11) to pay the operating or maintenance costs of a county jail as authorized in section
99.30641.01 or 641.262, or of a correctional facility as defined in section 241.021, subdivision 1,
99.31paragraph (f), to the extent that the county can demonstrate to the commissioner of revenue
99.32that the amount has been included in the county budget as a direct result of a rule, minimum
99.33requirement, minimum standard, or directive of the Department of Corrections, or to pay
99.34the operating or maintenance costs of a regional jail as authorized in section 641.262. For
99.35purposes of this clause, a district court order is not a rule, minimum requirement, minimum
99.36standard, or directive of the Department of Corrections. If the county utilizes this special
100.1levy, except to pay operating or maintenance costs of a new regional jail facility under
100.2sections 641.262 to 641.264 which will not replace an existing jail facility, any amount
100.3levied by the county in the previous levy year for the purposes specified under this clause
100.4and included in the county's previous year's levy limitation computed under section
100.5275.71 , shall be deducted from the levy limit base under section 275.71, subdivision 2,
100.6when determining the county's current year levy limitation. The county shall provide the
100.7necessary information to the commissioner of revenue for making this determination;
100.8    (12) to pay for operation of a lake improvement district, as authorized under section
100.9103B.555 . If the county utilizes this special levy, any amount levied by the county in the
100.10previous levy year for the purposes specified under this clause and included in the county's
100.11previous year's levy limitation computed under section 275.71 shall be deducted from
100.12the levy limit base under section 275.71, subdivision 2, when determining the county's
100.13current year levy limitation. The county shall provide the necessary information to the
100.14commissioner of revenue for making this determination;
100.15    (13) to repay a state or federal loan used to fund the direct or indirect required
100.16spending by the local government due to a state or federal transportation project or other
100.17state or federal capital project. This authority may only be used if the project is not a
100.18local government initiative;
100.19    (14) to pay for court administration costs as required under section 273.1398,
100.20subdivision 4b , less the (i) county's share of transferred fines and fees collected by the
100.21district courts in the county for calendar year 2001 and (ii) the aid amount certified to be
100.22paid to the county in 2004 under section 273.1398, subdivision 4c; however, for taxes
100.23levied to pay for these costs in the year in which the court financing is transferred to the
100.24state, the amount under this clause is limited to the amount of aid the county is certified to
100.25receive under section 273.1398, subdivision 4a;
100.26    (15) (14) to fund a firefighters relief association as required under Laws 2013,
100.27chapter 111, article 5, sections 31 to 42, to the extent that the required amount exceeds the
100.28amount levied for this purpose in 2001;
100.29    (16) (15) for purposes of a storm sewer improvement district under section 444.20;
100.30    (17) (16) to pay for the maintenance and support of a city or county society for
100.31the prevention of cruelty to animals under section 343.11, but not to exceed in any year
100.32$4,800 or the sum of $1 per capita based on the county's or city's population as of the most
100.33recent federal census, whichever is greater. If the city or county uses this special levy, any
100.34amount levied by the city or county in the previous levy year for the purposes specified
100.35in this clause and included in the city's or county's previous year's levy limit computed
101.1under section 275.71, must be deducted from the levy limit base under section 275.71,
101.2subdivision 2 , in determining the city's or county's current year levy limit;
101.3    (18) (17) for counties, to pay for the increase in their share of health and human
101.4service costs caused by reductions in federal health and human services grants effective
101.5after September 30, 2007;
101.6    (19) (18) for a city, for the costs reasonably and necessarily incurred for securing,
101.7maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by
101.8the commissioner of revenue under section 275.74, subdivision 2. A city must have either
101.9(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in
101.10the city or in a zip code area of the city that is at least 50 percent higher than the average
101.11foreclosure rate in the metropolitan area, as defined in section 473.121, subdivision 2,
101.12to use this special levy. For purposes of this paragraph, "foreclosure rate" means the
101.13number of foreclosures, as indicated by sheriff sales records, divided by the number of
101.14households in the city in 2007;
101.15    (20) for a city, for the unreimbursed costs of redeployed traffic-control agents and
101.16lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified
101.17to the Federal Highway Administration;
101.18    (21) (19) to pay costs attributable to wages and benefits for sheriff, police, and fire
101.19personnel. If a local governmental unit did not use this special levy in the previous year its
101.20levy limit base under section 275.71 shall be reduced by the amount equal to the amount it
101.21levied for the purposes specified in this clause in the previous year;
101.22    (22) (20) an amount equal to any reductions in the certified aids or credit
101.23reimbursements payable under sections 477A.011 to 477A.014, and section 273.1384,
101.24due to unallotment under section 16A.152 or reductions under another provision of law.
101.25The amount of the levy allowed under this clause for each year is limited to the amount
101.26unallotted or reduced from the aids and credit reimbursements certified for payment in the
101.27year following the calendar year in which the tax levy is certified unless the unallotment
101.28or reduction amount is not known by September 1 of the levy certification year, and
101.29the local government has not adjusted its levy under section 275.065, subdivision 6, or
101.30275.07, subdivision 6 , in which case that unallotment or reduction amount may be levied
101.31in the following year;
101.32(23) (21) to pay for the difference between one-half of the costs of confining sex
101.33offenders undergoing the civil commitment process and any state payments for this
101.34purpose pursuant to section 253D.12;
101.35(24) (22) for a county to pay the costs of the first year of maintaining and operating
101.36a new facility or new expansion, either of which contains courts, corrections, dispatch,
102.1criminal investigation labs, or other public safety facilities and for which all or a portion
102.2of the funding for the site acquisition, building design, site preparation, construction, and
102.3related equipment was issued or authorized prior to the imposition of levy limits in 2008.
102.4The levy limit base shall then be increased by an amount equal to the new facility's first
102.5full year's operating costs as described in this clause; and
102.6(25) (23) for the estimated amount of reduction to market value credit reimbursements
102.7under section 273.1384 for credits payable in the year in which the levy is payable.
102.8EFFECTIVE DATE.This section is effective the day following final enactment.

102.9    Sec. 38. Minnesota Statutes 2012, section 275.74, subdivision 2, is amended to read:
102.10    Subd. 2. Authorization for special levies. (a) A local governmental unit may
102.11request authorization to levy for unreimbursed costs for natural disasters under section
102.12275.70, subdivision 5 , clause (7). The local governmental unit shall submit a request to
102.13levy under section 275.70, subdivision 5, clause (7), to the commissioner of revenue by
102.14September 30 of the levy year and the request must include information documenting the
102.15estimated unreimbursed costs. The commissioner of revenue may grant levy authority,
102.16up to the amount requested based on the documentation submitted. All decisions of the
102.17commissioner are final.
102.18    (b) A city may request authorization to levy for reasonable and necessary costs for
102.19securing, maintaining, or demolishing foreclosed or abandoned residential properties under
102.20section 275.70, subdivision 5, clause (19) (18). The local governmental unit shall submit a
102.21request to levy under section 275.70, subdivision 5, clause (19) (18), to the commissioner
102.22of revenue by September 30 of the levy year and the request must include information
102.23documenting the estimated costs. For taxes payable in 2009, the amount may include
102.24unanticipated costs incurred above the amount budgeted for these purposes in 2008. Costs
102.25of securing foreclosed or abandoned residential properties include payment for police and
102.26fire department services. The commissioner of revenue may grant levy authority, up to the
102.27lesser of (1) the amount requested based on the documentation submitted, or (2) $3,000
102.28multiplied by the number of foreclosed residential properties, as defined by sheriff sales
102.29records, in calendar year 2007. All decisions of the commissioner are final.
102.30EFFECTIVE DATE.This section is effective the day following final enactment.

102.31    Sec. 39. Minnesota Statutes 2012, section 275.75, is amended to read:
102.32275.75 CHARTER EXEMPTION FOR AID LOSS.
103.1Notwithstanding any other provision of a municipal charter that limits ad valorem
103.2taxes to a lesser amount, or that would require voter approval for any increase, the
103.3governing body of a municipality may by resolution increase its levy in any year by an
103.4amount equal to its special levies under section 275.70, subdivision 5, clauses (22) and
103.5(25) (20) and (23).
103.6EFFECTIVE DATE.This section is effective the day following final enactment.

103.7    Sec. 40. Minnesota Statutes 2012, section 279.03, is amended to read:
103.8279.03 INTEREST ON DELINQUENT PROPERTY TAXES.
103.9    Subdivision 1. Rate Interest calculation. The rate of interest on delinquent
103.10property taxes levied in 1979 and prior years is fixed at six percent per year until January
103.111, 1983. Thereafter Interest is payable at the rate determined pursuant to section 549.09.
103.12The rate of interest on delinquent property taxes levied in 1980 and subsequent years is
103.13the rate determined pursuant to section 549.09. All provisions of law except section
103.14549.09 providing for the calculation of interest at any different rate on delinquent taxes in
103.15any notice or proceeding in connection with the payment, collection, sale, or assignment
103.16of delinquent taxes, or redemption from such sale or assignment are hereby amended
103.17to correspond herewith. Section 549.09 shall continue in force applies with respect to
103.18judgments arising out of petitions for review filed pursuant to chapter 278 irrespective of
103.19the levy year.
103.20For property taxes levied in 1980 and prior years, interest is to be calculated at
103.21simple interest from the second Monday in May following the year in which the taxes
103.22become due until the time that the taxes and penalties are paid, computed on the amount
103.23of unpaid taxes, penalties and costs. For property taxes levied in 1981 and subsequent
103.24years, Interest shall commence on the first day of January following the year in which the
103.25taxes become due, but the county treasurer need not calculate interest on unpaid taxes and
103.26penalties on the tax list returned to the county auditor pursuant to section 279.01.
103.27If interest is payable for a portion of a year, the interest is calculated only for the
103.28months that the taxes or penalties remain unpaid, and for this purpose a portion of a month
103.29is deemed to be a whole month.
103.30    Subd. 1a. Rate after December 31, 1990. (a) Except as provided in paragraph (b),
103.31interest on delinquent property taxes, penalties, and costs unpaid on or after January 1,
103.321991, shall be is payable at the per annum rate determined in section 270C.40, subdivision
103.335 . If the rate so determined is less than ten percent, the rate of interest shall be is ten
103.34percent. The maximum per annum rate shall be is 14 percent if the rate specified under
104.1section 270C.40, subdivision 5, exceeds 14 percent. The rate shall be is subject to change
104.2on January 1 of each year.
104.3(b) If a person is the owner of one or more parcels of property on which taxes are
104.4delinquent, and the delinquent taxes are more than 25 percent of the prior year's school
104.5district levy, interest on the delinquent property taxes, penalties, and costs unpaid after
104.6January 1, 1992, shall be is payable at twice the rate determined under paragraph (a) for
104.7the year.
104.8    Subd. 2. Composite judgment. Amounts included in composite judgments
104.9authorized by section 279.37, subdivision 1, and confessed on or after July 1, 1982, are
104.10subject to interest at the rate determined pursuant to section 549.09. Amounts confessed
104.11under this authority after December 31, 1990, are subject to interest at the rate calculated
104.12under subdivision 1a. During each calendar year, interest shall accrue accrues on the
104.13unpaid balance of the composite judgment from the time it is confessed until it is paid.
104.14The rate of interest is subject to change each year in the same manner that section 549.09
104.15 or as provided in subdivision 1a, whichever is applicable, for rate changes. Interest on the
104.16unpaid contract balance on judgments confessed before July 1, 1982, is payable at the rate
104.17applicable to the judgment at the time that it was confessed.
104.18EFFECTIVE DATE.This section is effective the day following final enactment.

104.19    Sec. 41. Minnesota Statutes 2012, section 279.16, is amended to read:
104.20279.16 JUDGMENT WHEN NO ANSWER; FORM; ENTRY.
104.21Upon the expiration of 20 days from the later of the filing of the affidavit of
104.22publication or the filing of the affidavit of mailing pursuant to section 279.131, the
104.23court administrator shall enter judgment against each and every such parcel as to which
104.24no answer has been filed, which judgment shall include all such parcels, and shall be
104.25substantially in the following form:

104.26	State of Minnesota	)	District Court,
104.27		) ss.
104.28	County of .....	)	.............. Judicial District.

104.29In the matter of the proceedings to enforce payment of the taxes on real estate
104.30remaining delinquent on the first Monday in January, ......., for the county of ....................,
104.31state of Minnesota.
104.32A list of taxes on real property, delinquent on the first Monday in January, ......., for
104.33said county of ................., having been duly filed in the office of the court administrator of
104.34this court, and the notice and list required by law having been duly published and mailed
105.1as required by law, and more than 20 days having elapsed since the last publication of the
105.2notice and list, and no answer having been filed by any person, company, or corporation
105.3to the taxes upon any of the parcels of land hereinafter described, it is hereby adjudged
105.4that each parcel of land hereinafter described is liable for taxes, penalties, and costs to the
105.5amount set opposite the same, as follows:

105.6

Description.

Parcel Number.

Amount.

105.7The amount of taxes, penalties, and cost to which, as hereinbefore stated, each of
105.8such parcels of land is liable, is hereby declared a lien upon such parcel of land as against
105.9the estate, right, title, interest, claim, or lien, of whatever nature, in law or equity, of every
105.10person, company, or corporation; and it is adjudged that, unless the amount to which
105.11each of such parcels is liable be paid, each of such parcels be sold, as provided by law,
105.12to satisfy the amount to which it is liable.

105.13		Dated this ............. day of ..............., .......
105.14 105.15 105.16		..... Court Administrator of the District Court, County of .....

105.17The judgment shall be entered by the court administrator in a book to be kept by
105.18the court administrator, to be called the real estate tax judgment book, and signed by the
105.19court administrator. The judgment shall be written out on the left-hand pages of the book,
105.20leaving the right-hand pages blank for the entries in this chapter hereinafter provided; and
105.21 The same presumption in favor of the regularity and validity of the judgment shall be
105.22deemed to exist as in respect to judgments in civil actions in such court, except where taxes
105.23have been paid before the entry of judgment, or where the land is exempt from taxation, in
105.24which cases the judgment shall be prima facie evidence only of its regularity and validity.
105.25EFFECTIVE DATE.This section is effective the day following final enactment.

105.26    Sec. 42. Minnesota Statutes 2012, section 279.23, is amended to read:
105.27279.23 COPY OF JUDGMENT TO COUNTY AUDITOR.
105.28When any real estate tax judgment is entered, the court administrator shall forthwith
105.29 deliver to the county auditor, in a book to be provided by the auditor, a certified copy of
105.30such judgment, which shall be written on the left-hand pages of the book, leaving the
105.31right-hand pages blank.
105.32EFFECTIVE DATE.This section is effective the day following final enactment.

105.33    Sec. 43. Minnesota Statutes 2012, section 279.25, is amended to read:
106.1279.25 PAYMENT BEFORE JUDGMENT.
106.2Before sale any person may pay the amount adjudged against any parcel of land.
106.3If payment is made before entry of judgment, and the delinquent list has been filed with
106.4the court administrator, the county auditor shall immediately certify such payment to the
106.5court administrator, who shall note the same on such delinquent list; and all proceedings
106.6pending against such parcel shall thereupon be discontinued. If payment is made after
106.7judgment is entered and before sale, the auditor shall certify such payment to the clerk,
106.8who, upon production of such certificate and the payment of a fee of ten cents, shall enter
106.9on the right-hand page of the real estate tax judgment book, and opposite the description
106.10of such parcel, satisfaction of the judgment against the same. The auditor shall make
106.11proper records of all payments made under this section.
106.12EFFECTIVE DATE.This section is effective the day following final enactment.

106.13    Sec. 44. Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is
106.14amended to read:
106.15    Subd. 2. Installment payments. The owner of any such parcel, or any person to
106.16whom the right to pay taxes has been given by statute, mortgage, or other agreement, may
106.17make and file with the county auditor of the county in which the parcel is located a written
106.18offer to pay the current taxes each year before they become delinquent, or to contest the
106.19taxes under Minnesota Statutes 1941, sections 278.01 to 278.13 chapter 278, and agree
106.20to confess judgment for the amount provided, as determined by the county auditor. By
106.21filing the offer, the owner waives all irregularities in connection with the tax proceedings
106.22affecting the parcel and any defense or objection which the owner may have to the
106.23proceedings, and also waives the requirements of any notice of default in the payment of
106.24any installment or interest to become due pursuant to the composite judgment to be so
106.25entered. Unless the property is subject to subdivision 1a, with the offer, the owner shall (i)
106.26tender one-tenth of the amount of the delinquent taxes, costs, penalty, and interest, and
106.27(ii) tender all current year taxes and penalty due at the time the confession of judgment is
106.28entered. In the offer, the owner shall agree to pay the balance in nine equal installments,
106.29with interest as provided in section 279.03, payable annually on installments remaining
106.30unpaid from time to time, on or before December 31 of each year following the year in
106.31which judgment was confessed. The offer must be substantially as follows:
106.32"To the court administrator of the district court of ........... county, I, .....................,
106.33am the owner of the following described parcel of real estate located in ....................
106.34county, Minnesota:
107.1.............................. Upon that real estate there are delinquent taxes for the year ........., and
107.2prior years, as follows: (here insert year of delinquency and the total amount of delinquent
107.3taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in
107.4the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and
107.5any defense or objection which I may have to them, and direct judgment to be entered for
107.6the amount stated above, minus the sum of $............, to be paid with this document, which
107.7is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above.
107.8I agree to pay the balance of the judgment in nine or four equal, annual installments, with
107.9interest as provided in section 279.03, payable annually, on the installments remaining
107.10unpaid. I agree to pay the installments and interest on or before December 31 of each year
107.11following the year in which this judgment is confessed and current taxes each year before
107.12they become delinquent, or within 30 days after the entry of final judgment in proceedings
107.13to contest the taxes under Minnesota Statutes, sections 278.01 to 278.13 chapter 278.
107.14Dated .............., ......."
107.15EFFECTIVE DATE.This section is effective the day following final enactment.

107.16    Sec. 45. Minnesota Statutes 2012, section 280.001, is amended to read:
107.17280.001 PUBLIC SALES, AUDITOR'S CERTIFICATES ABOLISHED.
107.18Effective the second Monday in May 1974, and each year thereafter, No parcel of
107.19land against which judgment has been entered and remains unsatisfied for the taxes of
107.20the preceding year or years may be sold at public vendue as provided in sections 280.01
107.21and 280.02 by the county auditor but shall be treated in the same manner and regarded in
107.22all respects as land bid in for the state by the auditor in the manner provided in section
107.23280.02 . No notice of sale required by section 280.01 shall be published or posted in 1974
107.24and in years thereafter, and no auditor's certificate authorized by section 280.03 shall be
107.25issued on the second Monday in May 1974, or thereafter.
107.26EFFECTIVE DATE.This section is effective the day following final enactment.

107.27    Sec. 46. Minnesota Statutes 2012, section 280.03, is amended to read:
107.28280.03 CERTIFICATE OF SALE.
107.29The county auditor shall execute to the purchaser of each parcel a certificate which
107.30may be substantially in the following form:
107.31"I, .........., auditor of the county of .........., state of Minnesota, do hereby certify that
107.32at the sale of lands pursuant to the real estate tax judgment entered in the district court
107.33in the county of .........., on the .......... day of .........., ......., in proceedings to enforce the
108.1payment of taxes delinquent on real estate for the years .........., for the county of ..........,
108.2which sale was held at ..............., in said county of ........, on the ........ day of ........, .......,
108.3the following described parcel of land, situate in said county of .........., state of Minnesota:
108.4(insert description), was offered for sale to the bidder who should offer to pay the amount
108.5for which the same was to be sold, at the lowest annual rate of interest on such amount;
108.6and at said sale I did sell the said parcel of land to .......... for the sum of .......... dollars,
108.7with interest at .......... percent per annum on such amount, that being the sum for which the
108.8same was to be sold, and such rate of interest being the lowest rate percent per annum bid
108.9on such sum; and, the sum having been paid, I do therefore, in consideration thereof, and
108.10pursuant to the statute in such case made and provided, convey the said parcel of land, in
108.11fee simple, subject to easements and restrictions of record at the date of the tax judgment
108.12sale, including, but without limitation, permits for telephone, telegraph and electric
108.13power lines either by underground cable or conduit or otherwise, sewer and water lines,
108.14highways, railroads, and pipe lines for gas, liquids, or solids in suspension, to said ..........,
108.15and the heirs and assigns of ......., forever, subject to redemption as provided by law.
108.16Witness my hand and official seal this ........ day of ........, ....... .

108.17 108.18

..... County Auditor."

108.19If the land shall not be redeemed as provided in chapter 281, such certificate shall
108.20pass to the purchaser an estate therein, in fee simple, without any other act or deed
108.21whatever subject to easements and restrictions of record at the date of the tax judgment
108.22sale, including, but without limitation, permits for telephone, telegraph, and electric
108.23power lines either by underground cable or conduit or otherwise, sewer and water lines,
108.24highways, railroads, and pipe lines for gas, liquids, or solids in suspension. Such certificate
108.25may be recorded, after the time for redemption shall have expired, as other deeds of real
108.26estate, and with like effect. If any purchaser at such sale shall purchase more than one
108.27parcel, the auditor shall issue to the purchaser a certificate for each parcel so purchased.
108.28EFFECTIVE DATE.This section is effective the day following final enactment.

108.29    Sec. 47. Minnesota Statutes 2012, section 280.07, is amended to read:
108.30280.07 ENTRIES IN JUDGMENT BOOKS AFTER SALE.
108.31Immediately after such sale the county auditor shall set out in the copy judgment
108.32book record that all parcels were bid in for the state. The county auditor shall thereupon
108.33deliver such book to notify the court administrator, who shall forthwith enter on the
108.34right-hand page of the real estate tax judgment book, opposite the description of each
108.35parcel sold, the words "bid in for the state," and thereupon redeliver the copy judgment
109.1book to the auditor. Upon redemption the auditor shall make a note thereon in the copy
109.2judgment book, opposite the parcel redeemed.
109.3EFFECTIVE DATE.This section is effective the day following final enactment.

109.4    Sec. 48. Minnesota Statutes 2012, section 280.11, is amended to read:
109.5280.11 LANDS BID IN FOR STATE.
109.6At any time after any parcel of land has been bid in for the state, the same not having
109.7been redeemed, the county auditor shall assign and convey the same, and all the right of
109.8the state therein acquired at such sale, to any person who shall pay the amount for which
109.9the same was bid in, with interest at the rate of 12 percent per annum, and the amount of
109.10all subsequent delinquent taxes, penalties, costs, and interest at such rate upon the same
109.11from the time when such taxes became delinquent. The county auditor shall execute to
109.12such person a certificate for such parcel, which may be substantially in the following form:
109.13"I, .........., auditor of the county of .........., state of Minnesota, do hereby certify that
109.14at the sale of lands pursuant to the real estate tax judgment entered in the district court
109.15in the county of .........., on the .......... day of .........., ......., in proceedings to enforce the
109.16payment of taxes delinquent upon real estate for the years .......... for the county of ..........,
109.17which sale was held at .........., in said county of .........., on the .......... day of .........., .......,
109.18the following described parcel of land, situate in said county of .........., state of Minnesota:
109.19(insert description), was duly offered for sale; and, no one bidding upon such offer an
109.20amount equal to that for which the parcel was subject to be sold, the same was then bid in
109.21for the state at such amount, being the sum of .......... dollars; and the same still remaining
109.22unredeemed, and on this day .......... having paid into the treasury of the county the amount
109.23for which the same was so bid in, and all subsequent delinquent taxes, penalties, costs,
109.24and interest, amounting in all to .......... dollars, therefore, in consideration thereof, and
109.25pursuant to the statute in such case made and provided, I do hereby assign and convey this
109.26parcel of land, in fee simple, subject to easements and restrictions of record at the date of
109.27the tax judgment sale, including but without limitation, permits for telephone, telegraph,
109.28 and electric power lines either by underground cable or conduit or otherwise, sewer and
109.29water lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension,
109.30with all the right, title and interest of the state acquired therein at such sale to .........., and
109.31the heirs and assigns of ........, forever, subject to redemption as provided by law.
109.32Witness my hand and official seal this .......... day of .........., .......

109.33 109.34

..... County Auditor."

110.1If the land shall not be redeemed, as provided in chapter 281, such certificate shall
110.2pass to the purchaser or assignee an estate therein, in fee simple, without any other act
110.3or deed whatever subject to easements and restrictions of record at the date of the tax
110.4judgment sale, including, but without limitation, permits for telephone, telegraph and
110.5electric power lines either by underground cable or conduit or otherwise, sewer and water
110.6lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension. Such
110.7certificate or conveyance may be recorded, after the time for redemption shall have
110.8expired, as other deeds of real estate, and with like effect. No assignment of the right of
110.9the state shall be given pursuant to this section after January 1, 1972.
110.10EFFECTIVE DATE.This section is effective the day following final enactment.

110.11    Sec. 49. Minnesota Statutes 2012, section 281.03, is amended to read:
110.12281.03 AUDITOR'S CERTIFICATE.
110.13The county auditor shall certify to the amount due on such redemption, and, on
110.14payment of the same to the county treasurer, shall make duplicate receipts for the certified
110.15amount, describing the property redeemed, one of which shall be filed with the auditor.
110.16Such receipts shall be governed by the provisions of this chapter regulating the payment
110.17of current taxes and such payment shall have the effect to annul the sale. If the amount
110.18certified by the auditor and received in payment for redemption be less than that required
110.19by law, it shall not invalidate the redemption. On redemption being made, the auditor shall
110.20enter upon the copy of the tax judgment book, opposite the description of record the
110.21parcel as redeemed, the word, "redeemed.".
110.22EFFECTIVE DATE.This section is effective the day following final enactment.

110.23    Sec. 50. Minnesota Statutes 2013 Supplement, section 281.17, is amended to read:
110.24281.17 PERIOD FOR REDEMPTION.
110.25Except for properties for which the period of redemption has been limited under
110.26sections 281.173 and 281.174, the following periods for redemption apply.
110.27The period of redemption for all lands sold to the state at a tax judgment sale shall
110.28be three years from the date of sale to the state of Minnesota.
110.29The period of redemption for homesteaded lands as defined in section 273.13,
110.30subdivision 22 , located in a targeted neighborhood as defined in Laws 1987, chapter 386,
110.31article 6, section 4, and sold to the state at a tax judgment sale is three years from the date
110.32of sale. The period of redemption for all lands located in a targeted neighborhood as
110.33defined in Laws 1987, chapter 386, article 6, section 4, except (1) homesteaded lands as
111.1defined in section 273.13, subdivision 22, and (2) for periods of redemption beginning
111.2after June 30, 1991, but before July 1, 1996, lands located in the Loring Park targeted
111.3neighborhood on which a notice of lis pendens has been served, and sold to the state at a
111.4tax judgment sale is one year from the date of sale.
111.5The period of redemption for all real property constituting a mixed municipal solid
111.6waste disposal facility that is a qualified facility under section 115B.39, subdivision 1, is
111.7one year from the date of the sale to the state of Minnesota.
111.8EFFECTIVE DATE.This section is effective the day following final enactment.

111.9    Sec. 51. Minnesota Statutes 2012, section 281.327, is amended to read:
111.10281.327 CANCELLATION OF CERTIFICATE UPON JUDICIAL ORDER.
111.11Upon the petition of any person interested in the land covered by a real estate tax
111.12sale certificate, state assignment certificate, or forfeited tax sale certificate and, upon the
111.13giving of such notice to the holder of such certificate as may be ordered, the district court,
111.14in the proceedings resulting in the judgment upon which a real estate tax judgment sale
111.15certificate, state assignment certificate, or forfeited tax sale certificate is based, may order
111.16the cancellation of a real estate tax judgment sale certificate, state assignment certificate,
111.17or forfeited tax sale certificate upon which notice of expiration of time of redemption
111.18has been issued when the certificate or a deed issued thereon has not been recorded in
111.19the office of the county recorder or filed in that of the registrar of titles, if the land is
111.20registered, within seven years after the date of the issuance of such certificate; the county
111.21auditor, on the filing of the order, shall make an entry in the proper copy real estate tax
111.22judgment book, opposite the description of the land, "canceled by order of court" record
111.23the land as canceled by order of court; and the rights of the holder under the certificate
111.24shall thereupon be terminated of record in the office of the county auditor.
111.25EFFECTIVE DATE.This section is effective the day following final enactment.

111.26    Sec. 52. Minnesota Statutes 2012, section 282.01, subdivision 6, is amended to read:
111.27    Subd. 6. Duties of commissioner after sale. When any sale has been made by the
111.28county auditor under sections 282.01 to 282.13, the auditor shall immediately certify to
111.29the commissioner of revenue such information relating to such sale, on such forms as the
111.30commissioner of revenue may prescribe as will enable the commissioner of revenue to
111.31prepare an appropriate deed if the sale is for cash, or keep necessary records if the sale
111.32is on terms; and not later than October 31 of each year the county auditor shall submit
111.33to the commissioner of revenue a statement of all instances wherein any payment of
112.1principal, interest, or current taxes on lands held under certificate, due or to be paid during
112.2the preceding calendar years, are still outstanding at the time such certificate is made.
112.3When such statement shows that a purchaser or the purchaser's assignee is in default, the
112.4commissioner of revenue may instruct the county board of the county in which the land is
112.5located to cancel said certificate of sale in the manner provided by subdivision 5, provided
112.6that upon recommendation of the county board, and where the circumstances are such
112.7that the commissioner of revenue after investigation is satisfied that the purchaser has
112.8made every effort reasonable to make payment of both the annual installment and said
112.9taxes, and that there has been no willful neglect on the part of the purchaser in meeting
112.10these obligations, then the commissioner of revenue may extend the time for the payment
112.11for such period as the commissioner may deem warranted, not to exceed one year. On
112.12payment in full of the purchase price, appropriate conveyance in fee, in such form as may
112.13be prescribed by the attorney general, shall be issued by the commissioner of revenue,
112.14which conveyance must be recorded by the county and shall have the force and effect of
112.15a patent from the state subject to easements and restrictions of record at the date of the
112.16tax judgment sale, including, but without limitation, permits for telephone, telegraph, and
112.17electric power lines either by underground cable or conduit or otherwise, sewer and water
112.18lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension.
112.19EFFECTIVE DATE.This section is effective the day following final enactment.

112.20    Sec. 53. Minnesota Statutes 2012, section 282.04, subdivision 4, is amended to read:
112.21    Subd. 4. Easements. The county auditor, when and for such price and on such
112.22terms and for such period as the county board prescribes, may grant easements or permits
112.23on unsold tax-forfeited land for telephone, telegraph, and electric power lines either by
112.24underground cable or conduit or otherwise, sewer and water lines, highways, recreational
112.25trails, railroads, and pipe lines for gas, liquids, or solids in suspension. Any such easement
112.26or permit may be canceled by resolution of the county board after reasonable notice for
112.27any substantial breach of its terms or if at any time its continuance will conflict with
112.28public use of the land, or any part thereof, on which it is granted. Land affected by any
112.29such easement or permit may be sold or leased for mineral or other legal purpose, but sale
112.30or lease shall be subject to the easement or permit, and all rights granted by the easement
112.31or permit shall be excepted from the conveyance or lease of the land and be reserved,
112.32and may be canceled by the county board in the same manner and for the same reasons
112.33as it could have been canceled before sale and in that case the rights granted thereby
112.34shall vest in the state in trust as the land on which it was granted was held before sale or
112.35lease. Any easement or permit granted before passage of Laws 1951, Chapter 203, may
113.1be governed thereby if the holder thereof and county board so agree. Reasonable notice
113.2as used in this subdivision, means a 90-day written notice addressed to the record owner
113.3of the easement at the last known address, and upon cancellation the county board may
113.4grant extensions of time to vacate the premises affected.
113.5EFFECTIVE DATE.This section is effective the day following final enactment.

113.6    Sec. 54. Minnesota Statutes 2012, section 282.261, subdivision 2, is amended to read:
113.7    Subd. 2. Interest rate. The unpaid balance on any repurchase contract approved
113.8by the county board on or after July 1, 1982, is subject to interest at the rate determined
113.9pursuant to section 549.09. Repurchase contracts approved after December 31, 1990, are
113.10subject to interest at the rate determined in section 279.03, subdivision 1a. The interest
113.11rate is subject to change each year on the unpaid balance in the manner provided for rate
113.12changes in section 549.09 or 279.03, subdivision 1a, whichever is applicable. Interest on
113.13the unpaid contract balance on repurchases approved before July 1, 1982, is payable at the
113.14rate applicable to the repurchase contract at the time that it was approved.
113.15EFFECTIVE DATE.This section is effective the day following final enactment.

113.16    Sec. 55. Minnesota Statutes 2012, section 282.261, subdivision 4, is amended to read:
113.17    Subd. 4. Service fee. The county auditor may collect a service fee to cover
113.18administrative costs as set by the county board for each repurchase application received
113.19after July 1, 1985. The fee must be paid at the time of application and must be credited to
113.20the county general revenue fund.
113.21EFFECTIVE DATE.This section is effective the day following final enactment.

113.22    Sec. 56. Minnesota Statutes 2012, section 282.261, subdivision 5, is amended to read:
113.23    Subd. 5. County may impose conditions of repurchase. The county auditor, after
113.24receiving county board approval, may impose conditions on repurchase of tax-forfeited
113.25lands limiting the use of the parcel subject to the repurchase, including, but not limited to,
113.26environmental remediation action plan restrictions or covenants, or easements for lines or
113.27equipment for telephone, telegraph, electric power, or telecommunications.
113.28EFFECTIVE DATE.This section is effective the day following final enactment.

113.29    Sec. 57. Minnesota Statutes 2012, section 282.322, is amended to read:
113.30282.322 FORFEITED LANDS LIST.
114.1The county board of any county may at any time after the passage of Laws 1945,
114.2chapter 296, file a list of forfeited lands with the county auditor, if the board is of the
114.3opinion that such lands may be acquired by the state or any municipal subdivision thereof
114.4for public purposes. Upon the filing of such list the county auditor shall withhold said
114.5lands from repurchase. If no proceeding shall be started to acquire such lands by the
114.6state or some municipal subdivision thereof within one year after the filing of such list
114.7the county board shall withdraw said list and thereafter the owner shall have one year in
114.8which to repurchase as otherwise provided in Laws 1945, chapter 296.
114.9EFFECTIVE DATE.This section is effective the day following final enactment.

114.10    Sec. 58. Minnesota Statutes 2012, section 287.30, is amended to read:
114.11287.30 COUNTY TREASURER; DUTIES.
114.12The care of documentary stamps entrusted to county treasurers and the duties imposed
114.13upon county treasurers by this chapter are within the duties of such office and are within
114.14the coverage of any official bond delivered to the state, conditioned that any such officer
114.15shall faithfully execute the duties of office. The county board may by resolution require
114.16the county auditor to perform any duty imposed on the county treasurer under this chapter.
114.17EFFECTIVE DATE.This section is effective the day following final enactment.

114.18    Sec. 59. Minnesota Statutes 2012, section 289A.25, subdivision 1, is amended to read:
114.19    Subdivision 1. Requirements to pay. An individual, trust, S corporation, or
114.20partnership must, when prescribed in subdivision 3, paragraph (b), make payments of
114.21estimated tax. For individuals, the term "estimated tax" means the amount the taxpayer
114.22estimates is the sum of the taxes imposed by chapter 290 for the taxable year. For trusts,
114.23S corporations, and partnerships, the term estimated tax means the amount the taxpayer
114.24estimates is the sum of the taxes for the taxable year imposed by chapter 290 and the
114.25composite income tax imposed by section 289A.08, subdivision 7. If the individual is an
114.26infant or incompetent person, the payments must be made by the individual's guardian. If
114.27joint payments on estimated tax are made but a joint return is not made for the taxable
114.28year, the estimated tax for that year may be treated as the estimated tax of either the
114.29husband or the wife or may be divided between them.
114.30Notwithstanding the provisions of this section, no payments of estimated tax are
114.31required if the estimated tax, as defined in this subdivision, less the credits allowed against
114.32the tax, is less than $500.
115.1EFFECTIVE DATE.This section is effective the day following final enactment.

115.2    Sec. 60. Minnesota Statutes 2012, section 290.01, subdivision 5, is amended to read:
115.3    Subd. 5. Domestic corporation. The term "domestic" when applied to a corporation
115.4means a corporation:
115.5(1) created or organized in the United States, or under the laws of the United
115.6States or of any state, the District of Columbia, or any political subdivision of any of
115.7the foregoing but not including the Commonwealth of Puerto Rico, or any possession
115.8of the United States; or
115.9(2) which qualifies as a DISC, as defined in section 992(a) of the Internal Revenue
115.10Code; or.
115.11(3) which qualifies as a FSC, as defined in section 922 of the Internal Revenue Code.
115.12EFFECTIVE DATE.This section is effective for taxable years beginning after
115.13December 31, 2013.

115.14    Sec. 61. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19d,
115.15is amended to read:
115.16    Subd. 19d. Corporations; modifications decreasing federal taxable income. For
115.17corporations, there shall be subtracted from federal taxable income after the increases
115.18provided in subdivision 19c:
115.19    (1) the amount of foreign dividend gross-up added to gross income for federal
115.20income tax purposes under section 78 of the Internal Revenue Code;
115.21    (2) the amount of salary expense not allowed for federal income tax purposes due to
115.22claiming the work opportunity credit under section 51 of the Internal Revenue Code;
115.23    (3) any dividend (not including any distribution in liquidation) paid within the
115.24taxable year by a national or state bank to the United States, or to any instrumentality of
115.25the United States exempt from federal income taxes, on the preferred stock of the bank
115.26owned by the United States or the instrumentality;
115.27    (4) amounts disallowed for intangible drilling costs due to differences between
115.28this chapter and the Internal Revenue Code in taxable years beginning before January
115.291, 1987, as follows:
115.30    (i) to the extent the disallowed costs are represented by physical property, an amount
115.31equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09,
115.32subdivision 7 , subject to the modifications contained in subdivision 19e; and
116.1    (ii) to the extent the disallowed costs are not represented by physical property, an
116.2amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section
116.3290.09, subdivision 8;
116.4    (5) (4) the deduction for capital losses pursuant to sections 1211 and 1212 of the
116.5Internal Revenue Code, except that:
116.6    (i) for capital losses incurred in taxable years beginning after December 31, 1986,
116.7capital loss carrybacks shall not be allowed;
116.8    (ii) for capital losses incurred in taxable years beginning after December 31, 1986,
116.9a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
116.10allowed;
116.11    (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
116.12capital loss carryback to each of the three taxable years preceding the loss year, subject to
116.13the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and
116.14    (iv) for capital losses incurred in taxable years beginning before January 1, 1987,
116.15a capital loss carryover to each of the five taxable years succeeding the loss year to the
116.16extent such loss was not used in a prior taxable year and subject to the provisions of
116.17Minnesota Statutes 1986, section 290.16, shall be allowed;
116.18    (6) (5) an amount for interest and expenses relating to income not taxable for federal
116.19income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
116.20expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
116.21291 of the Internal Revenue Code in computing federal taxable income;
116.22    (7) (6) in the case of mines, oil and gas wells, other natural deposits, and timber for
116.23which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a
116.24reasonable allowance for depletion based on actual cost. In the case of leases the deduction
116.25must be apportioned between the lessor and lessee in accordance with rules prescribed
116.26by the commissioner. In the case of property held in trust, the allowable deduction must
116.27be apportioned between the income beneficiaries and the trustee in accordance with the
116.28pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
116.29of the trust's income allocable to each;
116.30    (8) (7) for certified pollution control facilities placed in service in a taxable year
116.31beginning before December 31, 1986, and for which amortization deductions were elected
116.32under section 169 of the Internal Revenue Code of 1954, as amended through December
116.3331, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
116.341986, section 290.09, subdivision 7;
116.35    (9) (8) amounts included in federal taxable income that are due to refunds of
116.36income, excise, or franchise taxes based on net income or related minimum taxes paid
117.1by the corporation to Minnesota, another state, a political subdivision of another state,
117.2the District of Columbia, or a foreign country or possession of the United States to the
117.3extent that the taxes were added to federal taxable income under subdivision 19c, clause
117.4(1), in a prior taxable year;
117.5    (10) (9) income or gains from the business of mining as defined in section 290.05,
117.6subdivision 1 , clause (a), that are not subject to Minnesota franchise tax;
117.7    (11) (10) the amount of disability access expenditures in the taxable year which are not
117.8allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
117.9    (12) (11) the amount of qualified research expenses not allowed for federal income
117.10tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent
117.11that the amount exceeds the amount of the credit allowed under section 290.068;
117.12    (13) (12) the amount of salary expenses not allowed for federal income tax purposes
117.13due to claiming the Indian employment credit under section 45A(a) of the Internal
117.14Revenue Code;
117.15    (14) (13) any decrease in subpart F income, as defined in section 952(a) of the
117.16Internal Revenue Code, for the taxable year when subpart F income is calculated without
117.17regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
117.18    (15) (14) in each of the five tax years immediately following the tax year in which
117.19an addition is required under subdivision 19c, clause (12), an amount equal to one-fifth
117.20of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
117.21the amount of the addition made by the taxpayer under subdivision 19c, clause (12). The
117.22resulting delayed depreciation cannot be less than zero;
117.23    (16) (15) in each of the five tax years immediately following the tax year in which an
117.24addition is required under subdivision 19c, clause (13), an amount equal to one-fifth of the
117.25amount of the addition;
117.26(17) (16) to the extent included in federal taxable income, discharge of indebtedness
117.27income resulting from reacquisition of business indebtedness included in federal taxable
117.28income under section 108(i) of the Internal Revenue Code. This subtraction applies only
117.29to the extent that the income was included in net income in a prior year as a result of the
117.30addition under subdivision 19c, clause (16); and
117.31(18) (17) the amount of expenses not allowed for federal income tax purposes due
117.32to claiming the railroad track maintenance credit under section 45G(a) of the Internal
117.33Revenue Code.
117.34EFFECTIVE DATE.This section is effective for taxable years beginning after
117.35December 31, 2013.

118.1    Sec. 62. Minnesota Statutes 2012, section 290.01, subdivision 19f, is amended to read:
118.2    Subd. 19f. Basis modifications affecting gain or loss on disposition of property.
118.3(a) For individuals, estates, and trusts, the basis of property is its adjusted basis for federal
118.4income tax purposes except as set forth in paragraphs (e) and (f), (g), and (m). For
118.5corporations, the basis of property is its adjusted basis for federal income tax purposes,
118.6without regard to the time when the property became subject to tax under this chapter or to
118.7whether out-of-state losses or items of tax preference with respect to the property were not
118.8deductible under this chapter, except that the modifications to the basis for federal income
118.9tax purposes set forth in paragraphs (b) to (j) (i) are allowed to corporations, and the
118.10resulting modifications to federal taxable income must be made in the year in which gain
118.11or loss on the sale or other disposition of property is recognized.
118.12(b) The basis of property shall not be reduced to reflect federal investment tax credit.
118.13(c) The basis of property subject to the accelerated cost recovery system under
118.14section 168 of the Internal Revenue Code shall be modified to reflect the modifications in
118.15depreciation with respect to the property provided for in subdivision 19e. For certified
118.16pollution control facilities for which amortization deductions were elected under section
118.17169 of the Internal Revenue Code of 1954, the basis of the property must be increased by
118.18the amount of the amortization deduction not previously allowed under this chapter.
118.19(d) For property acquired before January 1, 1933, the basis for computing a gain is
118.20the fair market value of the property as of that date. The basis for determining a loss is
118.21the cost of the property to the taxpayer less any depreciation, amortization, or depletion,
118.22actually sustained before that date. If the adjusted cost exceeds the fair market value of the
118.23property, then the basis is the adjusted cost regardless of whether there is a gain or loss.
118.24(e) (d) The basis is reduced by the allowance for amortization of bond premium if
118.25an election to amortize was made pursuant to Minnesota Statutes 1986, section 290.09,
118.26subdivision 13, and the allowance could have been deducted by the taxpayer under this
118.27chapter during the period of the taxpayer's ownership of the property.
118.28(f) (e) For assets placed in service before January 1, 1987, corporations, partnerships,
118.29or individuals engaged in the business of mining ores other than iron ore or taconite
118.30concentrates subject to the occupation tax under chapter 298 must use the occupation
118.31tax basis of property used in that business.
118.32(g) (f) For assets placed in service before January 1, 1990, corporations, partnerships,
118.33or individuals engaged in the business of mining iron ore or taconite concentrates subject
118.34to the occupation tax under chapter 298 must use the occupation tax basis of property
118.35used in that business.
119.1(h) (g) In applying the provisions of sections 301(c)(3)(B), 312(f) and (g), and
119.2316(a)(1) of the Internal Revenue Code, the dates December 31, 1932, and January 1,
119.31933, shall be substituted for February 28, 1913, and March 1, 1913, respectively.
119.4(i) (h) In applying the provisions of section 362(a) and (c) of the Internal Revenue
119.5Code, the date December 31, 1956, shall be substituted for June 22, 1954.
119.6(j) (i) The basis of property shall be increased by the amount of intangible drilling
119.7costs not previously allowed due to differences between this chapter and the Internal
119.8Revenue Code.
119.9(k) (j) The adjusted basis of any corporate partner's interest in a partnership is
119.10the same as the adjusted basis for federal income tax purposes modified as required to
119.11reflect the basis modifications set forth in paragraphs (b) to (j) (i). The adjusted basis
119.12of a partnership in which the partner is an individual, estate, or trust is the same as the
119.13adjusted basis for federal income tax purposes modified as required to reflect the basis
119.14modifications set forth in paragraphs (e) and (f) and (g).
119.15(l) (k) The modifications contained in paragraphs (b) to (j) (i) also apply to the basis
119.16of property that is determined by reference to the basis of the same property in the hands
119.17of a different taxpayer or by reference to the basis of different property.
119.18EFFECTIVE DATE.This section is effective for taxable years beginning after
119.19December 31, 2013.

119.20    Sec. 63. Minnesota Statutes 2012, section 290.01, subdivision 29, is amended to read:
119.21    Subd. 29. Taxable income. The term "taxable income" means:
119.22(1) for individuals, estates, and trusts, the same as taxable net income;
119.23(2) for corporations, the taxable net income less
119.24(i) the net operating loss deduction under section 290.095;
119.25(ii) the dividends received deduction under section 290.21, subdivision 4; and
119.26(iii) the exemption for operating in a job opportunity building zone under section
119.27469.317 ; and.
119.28(iv) the exemption for operating in a biotechnology and health sciences industry
119.29zone under section 469.337.
119.30EFFECTIVE DATE.This section is effective for taxable years beginning after
119.31December 31, 2013.

119.32    Sec. 64. Minnesota Statutes 2012, section 290.015, subdivision 1, is amended to read:
120.1    Subdivision 1. General rule. (a) Except as provided in subdivision 3, a person
120.2that conducts a trade or business that has a place of business in this state, regularly has
120.3employees or independent contractors conducting business activities on its behalf in this
120.4state, or owns or leases real property that is located in this state or tangible personal
120.5property, including but not limited to mobile property, that is present in this state is subject
120.6to the taxes imposed by this chapter.
120.7(b) Except as provided in subdivision 3, a person that conducts a trade or business
120.8not described in paragraph (a) is subject to the taxes imposed by this chapter if the trade
120.9or business obtains or regularly solicits business from within this state, without regard
120.10to physical presence in this state.
120.11(c) For purposes of paragraph (b), business from within this state includes, but is
120.12not limited to:
120.13(1) sales of products or services of any kind or nature to customers in this state who
120.14receive the product or service in this state;
120.15(2) sales of services which are performed from outside this state but the services
120.16are received in this state;
120.17(3) transactions with customers in this state that involve intangible property and
120.18result in receipts attributed to this state as provided in section 290.191, subdivision 5 or 6;
120.19(4) leases of tangible personal property that is located in this state as defined in
120.20section 290.191, subdivision 5, paragraph (g), or 6, paragraph (e); and
120.21(5) sales and leases of real property located in this state.
120.22(d) For purposes of paragraph (b), solicitation includes, but is not limited to:
120.23(1) the distribution, by mail or otherwise, without regard to the state from which such
120.24distribution originated or in which the materials were prepared, of catalogs, periodicals,
120.25advertising flyers, or other written solicitations of business to customers in this state;
120.26(2) display of advertisements on billboards or other outdoor advertising in this state;
120.27(3) advertisements in newspapers published in this state;
120.28(4) advertisements in trade journals or other periodicals, the circulation of which is
120.29primarily within this state;
120.30(5) advertisements in a Minnesota edition of a national or regional publication or a
120.31limited regional edition of which this state is included of a broader regional or national
120.32publication which are not placed in other geographically defined editions of the same issue
120.33of the same publication;
120.34(6) advertisements in regional or national publications in an edition which is not
120.35by its contents geographically targeted to Minnesota, but which is sold over the counter
120.36in Minnesota or by subscription to Minnesota residents;
121.1(7) advertisements broadcast on a radio or television station located in Minnesota; or
121.2(8) any other solicitation by telegraph, telephone, computer database, cable, optic,
121.3microwave, or other communication system.
121.4EFFECTIVE DATE.This section is effective the day following final enactment.

121.5    Sec. 65. Minnesota Statutes 2012, section 290.07, subdivision 1, is amended to read:
121.6    Subdivision 1. Annual accounting period. Net income and taxable net income
121.7shall be computed upon the basis of the taxpayer's annual accounting period. If a taxpayer
121.8has no annual accounting period, or has one other than a fiscal year, as heretofore defined,
121.9 the net income and taxable net income shall be computed on the basis of the calendar year.
121.10Taxpayers shall employ the same accounting period on which they report, or would be
121.11required to report, their net income under the Internal Revenue Code. The commissioner
121.12shall provide by rule for the determination of the accounting period for taxpayers who file
121.13a combined report under section 290.17, subdivision 4, when members of the group use
121.14different accounting periods for federal income tax purposes. Unless the taxpayer changes
121.15its accounting period for federal purposes, the due date of the return is not changed.
121.16    A taxpayer may change accounting periods only with the consent of the
121.17commissioner. In case of any such change, the taxpayer shall pay a tax for the period
121.18not included in either the taxpayer's former or newly adopted taxable year, computed as
121.19provided in section 290.32.
121.20EFFECTIVE DATE.This section is effective for taxable years beginning after
121.21December 31, 2013.

121.22    Sec. 66. Minnesota Statutes 2012, section 290.07, subdivision 2, is amended to read:
121.23    Subd. 2. Accounting methods. Except as specifically provided to the contrary by
121.24this chapter, net income and taxable net income shall be computed in accordance with
121.25the method of accounting regularly employed in keeping the taxpayer's books. If no such
121.26accounting system has been regularly employed, or if that employed does not clearly or
121.27fairly reflect income or the income taxable under this chapter, the computation shall be
121.28made in accordance with such method as in the opinion of the commissioner does clearly
121.29and fairly reflect income and the income taxable under this chapter.
121.30Except as otherwise expressly provided in this chapter, a taxpayer who changes the
121.31method of accounting for regularly computing the taxpayer's income in keeping books
121.32shall, before computing net income and taxable net income under the new method, secure
121.33the consent of the commissioner.
122.1EFFECTIVE DATE.This section is effective for taxable years beginning after
122.2December 31, 2013.

122.3    Sec. 67. Minnesota Statutes 2013 Supplement, section 290.0921, subdivision 3,
122.4is amended to read:
122.5    Subd. 3. Alternative minimum taxable income. "Alternative minimum taxable
122.6income" is Minnesota net income as defined in section 290.01, subdivision 19, and
122.7includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e),
122.8(f), and (h) of the Internal Revenue Code. If a corporation files a separate company
122.9Minnesota tax return, the minimum tax must be computed on a separate company basis.
122.10If a corporation is part of a tax group filing a unitary return, the minimum tax must be
122.11computed on a unitary basis. The following adjustments must be made.
122.12(1) For purposes of the depreciation adjustments under section 56(a)(1) and
122.1356(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in
122.14service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal
122.15income tax purposes, including any modification made in a taxable year under section
122.16290.01, subdivision 19e, or Minnesota Statutes 1986, section 290.09, subdivision 7,
122.17paragraph (c).
122.18For taxable years beginning after December 31, 2000, the amount of any remaining
122.19modification made under section 290.01, subdivision 19e, or Minnesota Statutes 1986,
122.20section 290.09, subdivision 7, paragraph (c), not previously deducted is a depreciation
122.21allowance in the first taxable year after December 31, 2000.
122.22(2) (1) The portion of the depreciation deduction allowed for federal income tax
122.23purposes under section 168(k) of the Internal Revenue Code that is required as an
122.24addition under section 290.01, subdivision 19c, clause (12), is disallowed in determining
122.25alternative minimum taxable income.
122.26(3) (2) The subtraction for depreciation allowed under section 290.01, subdivision
122.2719d , clause (15) (14), is allowed as a depreciation deduction in determining alternative
122.28minimum taxable income.
122.29(4) (3) The alternative tax net operating loss deduction under sections 56(a)(4) and
122.3056(d) of the Internal Revenue Code does not apply.
122.31(5) (4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the
122.32Internal Revenue Code does not apply.
122.33(6) (5) The tax preference for depletion under section 57(a)(1) of the Internal
122.34Revenue Code does not apply.
123.1(7) The tax preference for intangible drilling costs under section 57(a)(2) of the
123.2Internal Revenue Code must be calculated without regard to subparagraph (E) and the
123.3subtraction under section 290.01, subdivision 19d, clause (4).
123.4(8) (6) The tax preference for tax exempt interest under section 57(a)(5) of the
123.5Internal Revenue Code does not apply.
123.6(9) (7) The tax preference for charitable contributions of appreciated property under
123.7section 57(a)(6) of the Internal Revenue Code does not apply.
123.8(10) For purposes of calculating the tax preference for accelerated depreciation or
123.9amortization on certain property placed in service before January 1, 1987, under section
123.1057(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the
123.11deduction allowed under section 290.01, subdivision 19e.
123.12For taxable years beginning after December 31, 2000, the amount of any remaining
123.13modification made under section 290.01, subdivision 19e, not previously deducted is a
123.14depreciation or amortization allowance in the first taxable year after December 31, 2004.
123.15(11) (8) For purposes of calculating the adjustment for adjusted current earnings
123.16in section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable
123.17income" as it is used in section 56(g) of the Internal Revenue Code, means alternative
123.18minimum taxable income as defined in this subdivision, determined without regard to the
123.19adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.
123.20(12) (9) For purposes of determining the amount of adjusted current earnings under
123.21section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section
123.2256(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend
123.23gross-up subtracted as provided in section 290.01, subdivision 19d, clause (1), or (ii) the
123.24amount of refunds of income, excise, or franchise taxes subtracted as provided in section
123.25290.01, subdivision 19d , clause (9).
123.26(13) (10) Alternative minimum taxable income excludes the income from operating
123.27in a job opportunity building zone as provided under section 469.317.
123.28(14) Alternative minimum taxable income excludes the income from operating in a
123.29biotechnology and health sciences industry zone as provided under section 469.337.
123.30Items of tax preference must not be reduced below zero as a result of the
123.31modifications in this subdivision.
123.32EFFECTIVE DATE.This section is effective for taxable years beginning after
123.33December 31, 2013.

123.34    Sec. 68. Minnesota Statutes 2012, section 290.0922, subdivision 3, is amended to read:
124.1    Subd. 3. Definitions. (a) "Minnesota sales or receipts" means the total sales
124.2apportioned to Minnesota pursuant to section 290.191, subdivision 5, the total receipts
124.3attributed to Minnesota pursuant to section 290.191, subdivisions 6 to 8, and/or the
124.4total sales or receipts apportioned or attributed to Minnesota pursuant to any other
124.5apportionment formula applicable to the taxpayer.
124.6(b) "Minnesota property" means total Minnesota tangible property as provided in
124.7section 290.191, subdivisions 9 to 11, any other tangible property located in Minnesota,
124.8but does not include: (1) the property of a qualified business as defined under section
124.9469.310, subdivision 11 , that is located in a job opportunity building zone designated
124.10under section 469.314 and (2) property of a qualified business located in a biotechnology
124.11and health sciences industry zone designated under section 469.334. Intangible property
124.12shall not be included in Minnesota property for purposes of this section. Taxpayers who
124.13do not utilize tangible property to apportion income shall nevertheless include Minnesota
124.14property for purposes of this section. On a return for a short taxable year, the amount of
124.15Minnesota property owned, as determined under section 290.191, shall be included in
124.16Minnesota property based on a fraction in which the numerator is the number of days in
124.17the short taxable year and the denominator is 365.
124.18(c) "Minnesota payrolls" means total Minnesota payrolls as provided in section
124.19290.191, subdivision 12 , but does not include: (1) the job opportunity building zone payroll
124.20under section 469.310, subdivision 8, of a qualified business as defined under section
124.21469.310, subdivision 11 , and (2) biotechnology and health sciences industry zone payrolls
124.22under section 469.330, subdivision 8. Taxpayers who do not utilize payrolls to apportion
124.23income shall nevertheless include Minnesota payrolls for purposes of this section.
124.24EFFECTIVE DATE.This section is effective for taxable years beginning after
124.25December 31, 2013.

124.26    Sec. 69. Minnesota Statutes 2012, section 290.095, subdivision 3, is amended to read:
124.27    Subd. 3. Carryover. (a) A net operating loss incurred in a during the taxable year:
124.28(i) beginning after December 31, 1986, shall be a net operating loss carryover to each of
124.29the 15 taxable years following the taxable year of such loss; (ii) beginning before January
124.301, 1987, shall be a net operating loss carryover to each of the five taxable years following
124.31the taxable year of such loss subject to the provisions of Minnesota Statutes 1986, section
124.32290.095; and (iii) beginning before January 1, 1987, shall be a net operating loss carryback
124.33to each of the three taxable years preceding the loss year subject to the provisions of
124.34Minnesota Statutes 1986, section 290.095.
125.1(b) The entire amount of the net operating loss for any taxable year shall be carried to
125.2the earliest of the taxable years to which such loss may be carried. The portion of such loss
125.3which shall be carried to each of the other taxable years shall be the excess, if any, of the
125.4amount of such loss over the sum of the taxable net income, adjusted by the modifications
125.5specified in subdivision 4, for each of the taxable years to which such loss may be carried.
125.6(c) Where a corporation apportions its income under the provisions of section
125.7290.191 , the net operating loss deduction incurred in any taxable year shall be allowed
125.8to the extent of the apportionment ratio of the loss year.
125.9(d) The provisions of sections 381, 382, and 384 of the Internal Revenue Code apply
125.10to carryovers in certain corporate acquisitions and special limitations on net operating loss
125.11carryovers. The limitation amount determined under section 382 shall be applied to net
125.12income, before apportionment, in each post change year to which a loss is carried.
125.13EFFECTIVE DATE.This section is effective for taxable years beginning after
125.14December 31, 2013.

125.15    Sec. 70. Minnesota Statutes 2013 Supplement, section 290.191, subdivision 5, is
125.16amended to read:
125.17    Subd. 5. Determination of sales factor. For purposes of this section, the following
125.18rules apply in determining the sales factor.
125.19    (a) The sales factor includes all sales, gross earnings, or receipts received in the
125.20ordinary course of the business, except that the following types of income are not included
125.21in the sales factor:
125.22    (1) interest;
125.23    (2) dividends;
125.24    (3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;
125.25    (4) sales of property used in the trade or business, except sales of leased property of
125.26a type which is regularly sold as well as leased; and
125.27    (5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue
125.28Code or sales of stock.
125.29    (b) Sales of tangible personal property are made within this state if the property is
125.30received by a purchaser at a point within this state, and the taxpayer is taxable in this state,
125.31 regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination
125.32of the property.
125.33    (c) Tangible personal property delivered to a common or contract carrier or foreign
125.34vessel for delivery to a purchaser in another state or nation is a sale in that state or nation,
125.35regardless of f.o.b. point or other conditions of the sale.
126.1    (d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine,
126.2fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is
126.3licensed by a state or political subdivision to resell this property only within the state of
126.4ultimate destination, the sale is made in that state.
126.5    (e) Sales made by or through a corporation that is qualified as a domestic
126.6international sales corporation under section 992 of the Internal Revenue Code are not
126.7considered to have been made within this state.
126.8    (f) Sales, rents, royalties, and other income in connection with real property is
126.9attributed to the state in which the property is located.
126.10    (g) Receipts from the lease or rental of tangible personal property, including finance
126.11leases and true leases, must be attributed to this state if the property is located in this
126.12state and to other states if the property is not located in this state. Receipts from the
126.13lease or rental of moving property including, but not limited to, motor vehicles, rolling
126.14stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts
126.15factor to the extent that the property is used in this state. The extent of the use of moving
126.16property is determined as follows:
126.17    (1) A motor vehicle is used wholly in the state in which it is registered.
126.18    (2) The extent that rolling stock is used in this state is determined by multiplying
126.19the receipts from the lease or rental of the rolling stock by a fraction, the numerator of
126.20which is the miles traveled within this state by the leased or rented rolling stock and the
126.21denominator of which is the total miles traveled by the leased or rented rolling stock.
126.22    (3) The extent that an aircraft is used in this state is determined by multiplying the
126.23receipts from the lease or rental of the aircraft by a fraction, the numerator of which is
126.24the number of landings of the aircraft in this state and the denominator of which is the
126.25total number of landings of the aircraft.
126.26    (4) The extent that a vessel, mobile equipment, or other mobile property is used in
126.27the state is determined by multiplying the receipts from the lease or rental of the property
126.28by a fraction, the numerator of which is the number of days during the taxable year the
126.29property was in this state and the denominator of which is the total days in the taxable year.
126.30    (h) Royalties and other income received for the use of or for the privilege of using
126.31intangible property, including patents, know-how, formulas, designs, processes, patterns,
126.32copyrights, trade names, service names, franchises, licenses, contracts, customer lists, or
126.33similar items, must be attributed to the state in which the property is used by the purchaser.
126.34If the property is used in more than one state, the royalties or other income must be
126.35apportioned to this state pro rata according to the portion of use in this state. If the portion
126.36of use in this state cannot be determined, the royalties or other income must be excluded
127.1from both the numerator and the denominator. Intangible property is used in this state if
127.2the purchaser uses the intangible property or the rights therein in the regular course of its
127.3business operations in this state, regardless of the location of the purchaser's customers.
127.4    (i) Sales of intangible property are made within the state in which the property is
127.5used by the purchaser. If the property is used in more than one state, the sales must be
127.6apportioned to this state pro rata according to the portion of use in this state. If the
127.7portion of use in this state cannot be determined, the sale must be excluded from both the
127.8numerator and the denominator of the sales factor. Intangible property is used in this
127.9state if the purchaser used the intangible property in the regular course of its business
127.10operations in this state.
127.11    (j) Receipts from the performance of services must be attributed to the state where
127.12the services are received. For the purposes of this section, receipts from the performance
127.13of services provided to a corporation, partnership, or trust may only be attributed to a state
127.14where it has a fixed place of doing business. If the state where the services are received is
127.15not readily determinable or is a state where the corporation, partnership, or trust receiving
127.16the service does not have a fixed place of doing business, the services shall be deemed
127.17to be received at the location of the office of the customer from which the services were
127.18ordered in the regular course of the customer's trade or business. If the ordering office
127.19cannot be determined, the services shall be deemed to be received at the office of the
127.20customer to which the services are billed.
127.21    (k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts
127.22from management, distribution, or administrative services performed by a corporation
127.23or trust for a fund of a corporation or trust regulated under United States Code, title 15,
127.24sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of
127.25the fund resides. Under this paragraph, receipts for services attributed to shareholders are
127.26determined on the basis of the ratio of: (1) the average of the outstanding shares in the
127.27fund owned by shareholders residing within Minnesota at the beginning and end of each
127.28year; and (2) the average of the total number of outstanding shares in the fund at the
127.29beginning and end of each year. Residence of the shareholder, in the case of an individual,
127.30is determined by the mailing address furnished by the shareholder to the fund. Residence
127.31of the shareholder, when the shares are held by an insurance company as a depositor for
127.32the insurance company policyholders, is the mailing address of the policyholders. In
127.33the case of an insurance company holding the shares as a depositor for the insurance
127.34company policyholders, if the mailing address of the policyholders cannot be determined
127.35by the taxpayer, the receipts must be excluded from both the numerator and denominator.
127.36Residence of other shareholders is the mailing address of the shareholder.
128.1EFFECTIVE DATE.This section is effective the day following final enactment.

128.2    Sec. 71. Minnesota Statutes 2012, section 290.9728, subdivision 2, is amended to read:
128.3    Subd. 2. Taxable income. For purposes of this section, taxable income means
128.4the lesser of:
128.5(1) the amount of the net capital gain of the S corporation for the taxable year, as
128.6determined under sections 1222 and 1374 of the Internal Revenue Code, and subject to the
128.7modifications provided in section 290.01, subdivisions 19e and subdivision 19f, in excess
128.8of $25,000 that is allocable to this state under section 290.17, 290.191, or 290.20; or
128.9(2) the amount of the S corporation's federal taxable income, subject to the
128.10provisions of section 290.01, subdivisions 19c to 19f, that is allocable to this state under
128.11section 290.17, 290.191, or 290.20.
128.12EFFECTIVE DATE.This section is effective for taxable years beginning after
128.13December 31, 2013.

128.14    Sec. 72. Minnesota Statutes 2013 Supplement, section 297A.61, subdivision 3, as
128.15amended by Laws 2014, chapter 150, article 2, section 1, is amended to read:
128.16    Subd. 3. Sale and purchase. (a) "Sale" and "purchase" include, but are not limited
128.17to, each of the transactions listed in this subdivision. In applying the provisions of this
128.18chapter, the terms "tangible personal property" and "retail sale" include the taxable
128.19services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision
128.20of these taxable services, unless specifically provided otherwise. Services performed by
128.21an employee for an employer are not taxable. Services performed by a partnership or
128.22association for another partnership or association are not taxable if one of the entities owns
128.23or controls more than 80 percent of the voting power of the equity interest in the other
128.24entity. Services performed between members of an affiliated group of corporations are not
128.25taxable. For purposes of the preceding sentence, "affiliated group of corporations" means
128.26those entities that would be classified as members of an affiliated group as defined under
128.27United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b).
128.28    (b) Sale and purchase include:
128.29    (1) any transfer of title or possession, or both, of tangible personal property, whether
128.30absolutely or conditionally, for a consideration in money or by exchange or barter; and
128.31    (2) the leasing of or the granting of a license to use or consume, for a consideration
128.32in money or by exchange or barter, tangible personal property, other than a manufactured
128.33home used for residential purposes for a continuous period of 30 days or more.
129.1    (c) Sale and purchase include the production, fabrication, printing, or processing of
129.2tangible personal property for a consideration for consumers who furnish either directly or
129.3indirectly the materials used in the production, fabrication, printing, or processing.
129.4    (d) Sale and purchase include the preparing for a consideration of food.
129.5Notwithstanding section 297A.67, subdivision 2, taxable food includes, but is not limited
129.6to, the following:
129.7    (1) prepared food sold by the retailer;
129.8    (2) soft drinks;
129.9    (3) candy;
129.10    (4) dietary supplements; and
129.11    (5) all food sold through vending machines.
129.12    (e) A sale and a purchase includes the furnishing for a consideration of electricity,
129.13gas, water, or steam for use or consumption within this state.
129.14    (f) A sale and a purchase includes the transfer for a consideration of prewritten
129.15computer software whether delivered electronically, by load and leave, or otherwise.
129.16    (g) A sale and a purchase includes the furnishing for a consideration of the following
129.17services:
129.18    (1) the privilege of admission to places of amusement, recreational areas, or athletic
129.19events, and the making available of amusement devices, tanning facilities, reducing
129.20salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;
129.21    (2) lodging and related services by a hotel, rooming house, resort, campground,
129.22motel, or trailer camp, including furnishing the guest of the facility with access to
129.23telecommunication services, and the granting of any similar license to use real property in
129.24a specific facility, other than the renting or leasing of it for a continuous period of 30 days
129.25or more under an enforceable written agreement that may not be terminated without prior
129.26notice and including accommodations intermediary services provided in connection with
129.27other services provided under this clause;
129.28    (3) nonresidential parking services, whether on a contractual, hourly, or other
129.29periodic basis, except for parking at a meter;
129.30    (4) the granting of membership in a club, association, or other organization if:
129.31    (i) the club, association, or other organization makes available for the use of its
129.32members sports and athletic facilities, without regard to whether a separate charge is
129.33assessed for use of the facilities; and
129.34    (ii) use of the sports and athletic facility is not made available to the general public
129.35on the same basis as it is made available to members.
130.1Granting of membership means both onetime initiation fees and periodic membership
130.2dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and
130.3squash courts; basketball and volleyball facilities; running tracks; exercise equipment;
130.4swimming pools; and other similar athletic or sports facilities;
130.5    (5) delivery of aggregate materials by a third party, excluding delivery of aggregate
130.6material used in road construction; and delivery of concrete block by a third party if the
130.7delivery would be subject to the sales tax if provided by the seller of the concrete block.
130.8For purposes of this clause, "road construction" means construction of:
130.9    (i) public roads;
130.10    (ii) cartways; and
130.11    (iii) private roads in townships located outside of the seven-county metropolitan area
130.12up to the point of the emergency response location sign; and
130.13    (6) services as provided in this clause:
130.14    (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
130.15and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
130.16drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
130.17include services provided by coin operated facilities operated by the customer;
130.18    (ii) motor vehicle washing, waxing, and cleaning services, including services
130.19provided by coin operated facilities operated by the customer, and rustproofing,
130.20undercoating, and towing of motor vehicles;
130.21    (iii) building and residential cleaning, maintenance, and disinfecting services and
130.22pest control and exterminating services;
130.23    (iv) detective, security, burglar, fire alarm, and armored car services; but not
130.24including services performed within the jurisdiction they serve by off-duty licensed peace
130.25officers as defined in section 626.84, subdivision 1, or services provided by a nonprofit
130.26organization or any organization at the direction of a county for monitoring and electronic
130.27surveillance of persons placed on in-home detention pursuant to court order or under the
130.28direction of the Minnesota Department of Corrections;
130.29    (v) pet grooming services;
130.30    (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
130.31and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor
130.32plant care; tree, bush, shrub, and stump removal, except when performed as part of a land
130.33clearing contract as defined in section 297A.68, subdivision 40; and tree trimming for
130.34public utility lines. Services performed under a construction contract for the installation of
130.35shrubbery, plants, sod, trees, bushes, and similar items are not taxable;
131.1    (vii) massages, except when provided by a licensed health care facility or
131.2professional or upon written referral from a licensed health care facility or professional for
131.3treatment of illness, injury, or disease; and
131.4    (viii) the furnishing of lodging, board, and care services for animals in kennels and
131.5other similar arrangements, but excluding veterinary and horse boarding services.
131.6    (h) A sale and a purchase includes the furnishing for a consideration of tangible
131.7personal property or taxable services by the United States or any of its agencies or
131.8instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political
131.9subdivisions.
131.10    (i) A sale and a purchase includes the furnishing for a consideration of
131.11telecommunications services, ancillary services associated with telecommunication
131.12services, and pay television services. Telecommunication services include, but are
131.13not limited to, the following services, as defined in section 297A.669: air-to-ground
131.14radiotelephone service, mobile telecommunication service, postpaid calling service,
131.15prepaid calling service, prepaid wireless calling service, and private communication
131.16services. The services in this paragraph are taxed to the extent allowed under federal law.
131.17    (j) A sale and a purchase includes the furnishing for a consideration of installation if
131.18the installation charges would be subject to the sales tax if the installation were provided
131.19by the seller of the item being installed.
131.20    (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer
131.21to a customer when (1) the vehicle is rented by the customer for a consideration, or (2)
131.22the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section
131.2359B.02, subdivision 11.
131.24    (l) A sale and a purchase includes furnishing for a consideration of specified digital
131.25products or other digital products or granting the right for a consideration to use specified
131.26digital products or other digital products on a temporary or permanent basis and regardless
131.27of whether the purchaser is required to make continued payments for such right. Wherever
131.28the term "tangible personal property" is used in this chapter, other than in subdivisions 10
131.29and 38, the provisions also apply to specified digital products, or other digital products,
131.30unless specifically provided otherwise or the context indicates otherwise.
131.31EFFECTIVE DATE.This section is effective the day following final enactment.

131.32    Sec. 73. Minnesota Statutes 2012, section 297A.70, subdivision 10, is amended to read:
131.33    Subd. 10. Nonprofit tickets or admissions. (a) Tickets or admissions to an event
131.34are exempt if all the gross receipts are recorded as such, in accordance with generally
131.35accepted accounting principles, on the books of one or more organizations whose primary
132.1mission is to provide an opportunity for citizens of the state to participate in the creation,
132.2performance, or appreciation of the arts, and provided that each organization is:
132.3(1) an organization described in section 501(c)(3) of the Internal Revenue Code
132.4in which voluntary contributions make up at least the following five percent of the
132.5organization's annual revenue in its most recently completed 12-month fiscal year, or in
132.6the current year if the organization has not completed a 12-month fiscal year:;
132.7(i) for sales made after July 31, 2001, and before July 1, 2002, for the organization's
132.8fiscal year completed in calendar year 2000, three percent;
132.9(ii) for sales made on or after July 1, 2002, and on or before June 30, 2003, for the
132.10organization's fiscal year completed in calendar year 2001, three percent;
132.11(iii) for sales made on or after July 1, 2003, and on or before June 30, 2004, for the
132.12organization's fiscal year completed in calendar year 2002, four percent; and
132.13(iv) for sales made in each 12-month period, beginning on July 1, 2004, and each
132.14subsequent year, for the organization's fiscal year completed in the preceding calendar
132.15year, five percent;
132.16(2) a municipal board that promotes cultural and arts activities; or
132.17(3) the University of Minnesota, a state college and university, or a private nonprofit
132.18college or university provided that the event is held at a facility owned by the educational
132.19institution holding the event.
132.20The exemption only applies if the entire proceeds, after reasonable expenses, are used
132.21solely to provide opportunities for citizens of the state to participate in the creation,
132.22performance, or appreciation of the arts.
132.23(b) Tickets or admissions to the premises of the Minnesota Zoological Garden are
132.24exempt, provided that the exemption under this paragraph does not apply to tickets or
132.25admissions to performances or events held on the premises unless the performance or
132.26event is sponsored and conducted exclusively by the Minnesota Zoological Board or
132.27employees of the Minnesota Zoological Garden.
132.28EFFECTIVE DATE.This section is effective the day following final enactment.

132.29    Sec. 74. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 1, is
132.30amended to read:
132.31    Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the
132.32following exempt items must be imposed and collected as if the sale were taxable and the
132.33rate under section 297A.62, subdivision 1, applied. The exempt items include:
132.34    (1) building materials for an agricultural processing facility exempt under section
132.35297A.71, subdivision 13 ;
133.1    (2) building materials for mineral production facilities exempt under section
133.2297A.71, subdivision 14 ;
133.3    (3) building materials for correctional facilities under section 297A.71, subdivision 3;
133.4    (4) building materials used in a residence for disabled veterans exempt under section
133.5297A.71, subdivision 11 ;
133.6    (5) elevators and building materials exempt under section 297A.71, subdivision 12;
133.7    (6) building materials for the Long Lake Conservation Center exempt under section
133.8297A.71, subdivision 17;
133.9    (7) (6) materials and supplies for qualified low-income housing under section
133.10297A.71, subdivision 23 ;
133.11    (8) (7) materials, supplies, and equipment for municipal electric utility facilities
133.12under section 297A.71, subdivision 35;
133.13    (9) (8) equipment and materials used for the generation, transmission, and
133.14distribution of electrical energy and an aerial camera package exempt under section
133.15297A.68 , subdivision 37;
133.16    (10) (9) commuter rail vehicle and repair parts under section 297A.70, subdivision
133.173, paragraph (a), clause (10);
133.18    (11) (10) materials, supplies, and equipment for construction or improvement of
133.19projects and facilities under section 297A.71, subdivision 40;
133.20(12) materials, supplies, and equipment for construction or improvement of a meat
133.21processing facility exempt under section 297A.71, subdivision 41;
133.22(13) (11) materials, supplies, and equipment for construction, improvement, or
133.23expansion of:
133.24(i) an aerospace defense manufacturing facility exempt under section 297A.71,
133.25subdivision 42 ;
133.26(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71,
133.27subdivision 45 ;
133.28(iii) a research and development facility exempt under section 297A.71, subdivision
133.2946 ; and
133.30(iv) an industrial measurement manufacturing and controls facility exempt under
133.31section 297A.71, subdivision 47;
133.32(14) (12) enterprise information technology equipment and computer software for
133.33use in a qualified data center exempt under section 297A.68, subdivision 42;
133.34(15) (13) materials, supplies, and equipment for qualifying capital projects under
133.35section 297A.71, subdivision 44;
134.1(16) (14) items purchased for use in providing critical access dental services exempt
134.2under section 297A.70, subdivision 7, paragraph (c); and
134.3(17) (15) items and services purchased under a business subsidy agreement for use or
134.4consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 44.
134.5EFFECTIVE DATE.This section is effective the day following final enactment.

134.6    Sec. 75. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 2, is
134.7amended to read:
134.8    Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the
134.9commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
134.10must be paid to the applicant. Only the following persons may apply for the refund:
134.11    (1) for subdivision 1, clauses (1), (2), and (16) (14), the applicant must be the
134.12purchaser;
134.13    (2) for subdivision 1, clauses clause (3) and (6), the applicant must be the
134.14governmental subdivision;
134.15    (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
134.16provided in United States Code, title 38, chapter 21;
134.17    (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
134.18property;
134.19    (5) for subdivision 1, clause (7) (6), the owner of the qualified low-income housing
134.20project;
134.21    (6) for subdivision 1, clause (8) (7), the applicant must be a municipal electric utility
134.22or a joint venture of municipal electric utilities;
134.23    (7) for subdivision 1, clauses (9), (12), (13), (14) (8), (11), (12), and (17) (15),
134.24the owner of the qualifying business; and
134.25    (8) for subdivision 1, clauses (9), (10), (11), and (15) (13), the applicant must be the
134.26governmental entity that owns or contracts for the project or facility.
134.27EFFECTIVE DATE.This section is effective the day following final enactment.

134.28    Sec. 76. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 3, is
134.29amended to read:
134.30    Subd. 3. Application. (a) The application must include sufficient information
134.31to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
134.32subcontractor, or builder, under subdivision 1, clauses (3) to (15) (13), or (17) (15), the
134.33contractor, subcontractor, or builder must furnish to the refund applicant a statement
135.1including the cost of the exempt items and the taxes paid on the items unless otherwise
135.2specifically provided by this subdivision. The provisions of sections 289A.40 and
135.3289A.50 apply to refunds under this section.
135.4    (b) An applicant may not file more than two applications per calendar year for
135.5refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
135.6    (c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not
135.7exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases
135.8of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71,
135.9subdivision 40, must not be filed until after June 30, 2009.
135.10EFFECTIVE DATE.This section is effective the day following final enactment.

135.11    Sec. 77. Minnesota Statutes 2012, section 297A.94, is amended to read:
135.12297A.94 DEPOSIT OF REVENUES.
135.13(a) Except as provided in this section, the commissioner shall deposit the revenues,
135.14including interest and penalties, derived from the taxes imposed by this chapter in the state
135.15treasury and credit them to the general fund.
135.16(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
135.17account in the special revenue fund if:
135.18(1) the taxes are derived from sales and use of property and services purchased for
135.19the construction and operation of an agricultural resource project; and
135.20(2) the purchase was made on or after the date on which a conditional commitment
135.21was made for a loan guaranty for the project under section 41A.04, subdivision 3.
135.22The commissioner of management and budget shall certify to the commissioner the date
135.23on which the project received the conditional commitment. The amount deposited in
135.24the loan guaranty account must be reduced by any refunds and by the costs incurred by
135.25the Department of Revenue to administer and enforce the assessment and collection of
135.26the taxes.
135.27(c) The commissioner shall deposit the revenues, including interest and penalties,
135.28derived from the taxes imposed on sales and purchases included in section 297A.61,
135.29subdivision 3 , paragraph (g), clauses (1) and (4), in the state treasury, and credit them
135.30as follows:
135.31(1) first to the general obligation special tax bond debt service account in each fiscal
135.32year the amount required by section 16A.661, subdivision 3, paragraph (b); and
135.33(2) after the requirements of clause (1) have been met, the balance to the general fund.
136.1(d) The commissioner shall deposit the revenues, including interest and penalties,
136.2collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
136.3general fund. By July 15 of each year the commissioner shall transfer to the highway user
136.4tax distribution fund an amount equal to the excess fees collected under section 297A.64,
136.5subdivision 5 , for the previous calendar year.
136.6(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and
136.7For fiscal year 2004 and thereafter, 72.43 percent of the revenues, including interest and
136.8penalties, transmitted to the commissioner under section 297A.65, must be deposited by
136.9the commissioner in the state treasury as follows:
136.10(1) 50 percent of the receipts must be deposited in the heritage enhancement account
136.11in the game and fish fund, and may be spent only on activities that improve, enhance, or
136.12protect fish and wildlife resources, including conservation, restoration, and enhancement
136.13of land, water, and other natural resources of the state;
136.14(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and
136.15may be spent only for state parks and trails;
136.16(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and
136.17may be spent only on metropolitan park and trail grants;
136.18(4) three percent of the receipts must be deposited in the natural resources fund, and
136.19may be spent only on local trail grants; and
136.20(5) two percent of the receipts must be deposited in the natural resources fund,
136.21and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and
136.22Conservatory, and the Duluth Zoo.
136.23(f) The revenue dedicated under paragraph (e) may not be used as a substitute
136.24for traditional sources of funding for the purposes specified, but the dedicated revenue
136.25shall supplement traditional sources of funding for those purposes. Land acquired with
136.26money deposited in the game and fish fund under paragraph (e) must be open to public
136.27hunting and fishing during the open season, except that in aquatic management areas or
136.28on lands where angling easements have been acquired, fishing may be prohibited during
136.29certain times of the year and hunting may be prohibited. At least 87 percent of the money
136.30deposited in the game and fish fund for improvement, enhancement, or protection of fish
136.31and wildlife resources under paragraph (e) must be allocated for field operations.
136.32(g) The revenues deposited under paragraphs (a) to (f) do not include the revenues,
136.33including interest and penalties, generated by the sales tax imposed under section
136.34297A.62, subdivision 1a , which must be deposited as provided under the Minnesota
136.35Constitution, article XI, section 15.
136.36EFFECTIVE DATE.This section is effective the day following final enactment.

137.1    Sec. 78. Minnesota Statutes 2012, section 297B.09, is amended to read:
137.2297B.09 ALLOCATION OF REVENUE.
137.3    Subdivision 1. Deposit of revenues. (a) Money collected and received under this
137.4chapter must be deposited as provided in this subdivision.
137.5    (b) From July 1, 2007, through June 30, 2008, 38.25 percent of the money collected
137.6and received must be deposited in the highway user tax distribution fund, 24 percent must
137.7be deposited in the metropolitan area transit account under section 16A.88, and 1.5 percent
137.8must be deposited in the greater Minnesota transit account under section 16A.88. The
137.9remaining money must be deposited in the general fund.
137.10    (c) From July 1, 2008, through June 30, 2009, 44.25 percent of the money collected
137.11and received must be deposited in the highway user tax distribution fund, 27.75 percent
137.12must be deposited in the metropolitan area transit account under section 16A.88, 1.75
137.13percent must be deposited in the greater Minnesota transit account under section 16A.88,
137.14and the remaining money must be deposited in the general fund.
137.15(d) From July 1, 2009, through June 30, 2010, 47.5 percent of the money collected
137.16and received must be deposited in the highway user tax distribution fund, 30 percent
137.17must be deposited in the metropolitan area transit account under section 16A.88, 3.5
137.18percent must be deposited in the greater Minnesota transit account under section 16A.88,
137.19and 16.25 percent must be deposited in the general fund. The remaining amount must
137.20be deposited as follows:
137.21(1) 1.5 percent in the metropolitan area transit account, except that any amount in
137.22excess of $6,000,000 must be deposited in the highway user tax distribution fund; and
137.23(2) 1.25 percent in the greater Minnesota transit account, except that any amount in
137.24excess of $5,000,000 must be deposited in the highway user tax distribution fund.
137.25(e) From July 1, 2010, through June 30, 2011, 54.5 percent of the money collected
137.26and received must be deposited in the highway user tax distribution fund, 33.75 percent
137.27must be deposited in the metropolitan area transit account under section 16A.88, 3.75
137.28percent must be deposited in the greater Minnesota transit account under section 16A.88,
137.29and 6.25 percent must be deposited in the general fund. The remaining amount must
137.30be deposited as follows:
137.31(1) 1.5 percent in the metropolitan area transit account, except that any amount in
137.32excess of $6,750,000 must be deposited in the highway user tax distribution fund; and
137.33(2) 0.25 percent in the greater Minnesota transit account, except that any amount in
137.34excess of $1,250,000 must be deposited in the highway user tax distribution fund.
137.35    (f) On and after July 1, 2011, (b) 60 percent of the money collected and received
137.36must be deposited in the highway user tax distribution fund, 36 percent must be deposited
138.1in the metropolitan area transit account under section 16A.88, and four percent must be
138.2deposited in the greater Minnesota transit account under section 16A.88.
138.3(g) (c) It is the intent of the legislature that the allocations under paragraph (f) (b)
138.4 remain unchanged for fiscal year 2012 and all subsequent fiscal years.
138.5EFFECTIVE DATE.This section is effective the day following final enactment.

138.6    Sec. 79. Minnesota Statutes 2012, section 297F.03, subdivision 2, is amended to read:
138.7    Subd. 2. Form of application. Every application for a cigarette or tobacco products
138.8license shall be made on a form prescribed by the commissioner and shall state the name
138.9and address of the applicant; if the applicant is a firm, partnership, or association, the name
138.10and address of each of its members; if the applicant is a corporation, the name and address
138.11of each of its officers; the address of its principal place of business; the place where the
138.12business to be licensed is to be conducted; and any other information the commissioner
138.13may require for the administration of this chapter.
138.14EFFECTIVE DATE.This section is effective the day following final enactment.

138.15    Sec. 80. Minnesota Statutes 2012, section 297I.05, subdivision 14, is amended to read:
138.16    Subd. 14. Life insurance. A tax is imposed on life insurance. The rate of tax equals
138.17a percentage 1.5 percent of gross premiums less return premiums on all direct business
138.18received by the insurer or agents of the insurer in Minnesota for life insurance, in cash or
138.19otherwise, during the year. For premiums received after December 31, 2005, but before
138.20January 1, 2007, the rate of tax is 1.875 percent. For premiums received after December
138.2131, 2006, but before January 1, 2008, the rate of tax is 1.75 percent. For premiums
138.22received after December 31, 2007, but before January 1, 2009, the rate of tax is 1.625
138.23percent. For premiums received after December 31, 2008, the rate of tax is 1.5 percent.
138.24EFFECTIVE DATE.This section is effective the day following final enactment.

138.25    Sec. 81. Minnesota Statutes 2012, section 298.75, subdivision 1, is amended to read:
138.26    Subdivision 1. Definitions. Except as may otherwise be provided, the following
138.27words, when used in this section, shall have the meanings herein ascribed to them.
138.28    (a) "Aggregate material" means:
138.29    (1) nonmetallic natural mineral aggregate including, but not limited to sand, silica
138.30sand, gravel, crushed rock, limestone, granite, and borrow, but only if the borrow is
138.31transported on a public road, street, or highway, provided that nonmetallic aggregate
138.32material does not include dimension stone and dimension granite; and
139.1    (2) taconite tailings, crushed rock, and architectural or dimension stone and dimension
139.2granite removed from a taconite mine or the site of a previously operated taconite mine.
139.3    Aggregate material must be measured or weighed after it has been extracted from
139.4the pit, quarry, or deposit.
139.5    (b) "Person" means any individual, firm, partnership, corporation, organization,
139.6trustee, association, or other entity.
139.7    (c) "Operator" means any person engaged in the business of removing aggregate
139.8material from the surface or subsurface of the soil, for the purpose of sale, either directly
139.9or indirectly, through the use of the aggregate material in a marketable product or service.
139.10    (d) "Extraction site" means a pit, quarry, or deposit containing aggregate material
139.11and any contiguous property to the pit, quarry, or deposit which is used by the operator for
139.12stockpiling the aggregate material.
139.13    (e) "Importer" means any person who buys aggregate material excavated from a
139.14county not listed in paragraph (f) or another state site on which the tax under this section is
139.15not imposed and causes the aggregate material to be imported into a county in this state
139.16which imposes a tax on aggregate material.
139.17    (f) "County" means the counties of Pope, Stearns, Benton, Sherburne, Carver, Scott,
139.18Dakota, Le Sueur, Kittson, Marshall, Pennington, Red Lake, Polk, Norman, Mahnomen,
139.19Clay, Becker, Carlton, St. Louis, Rock, Murray, Wilkin, Big Stone, Sibley, Hennepin,
139.20Washington, Chisago, and Ramsey. County also means a county imposing the tax under
139.21this section on December 31, 2014, or any other county whose board has voted after a
139.22public hearing to impose the tax under this section and has notified the commissioner of
139.23revenue of the imposition of the tax.
139.24    (g) "Borrow" means granular borrow, consisting of durable particles of gravel and
139.25sand, crushed quarry or mine rock, crushed gravel or stone, or any combination thereof,
139.26the ratio of the portion passing the (#200) sieve divided by the portion passing the (1 inch)
139.27sieve may not exceed 20 percent by mass.
139.28EFFECTIVE DATE.This section is effective January 1, 2015.

139.29    Sec. 82. Minnesota Statutes 2012, section 412.131, is amended to read:
139.30412.131 ASSESSOR; DUTIES, COMPENSATION.
139.31The city assessor, if there is one, shall assess and return as provided by law all
139.32property taxable within the city, if a separate assessment district, and the assessor of the
139.33town within which the city lies shall not include in the return any property taxable in the
139.34city. Any assessor may appoint a deputy assessor as provided in section 273.06. The
140.1assessor may be compensated on a full-time or part-time basis at the option of the council
140.2but the compensation shall be not less than $100 in any one year, if fixed on an annual
140.3basis, or not more than $20 per day, if fixed on a per diem basis. If the compensation is
140.4not fixed by the council the assessor shall be entitled to compensation at the rate of $20
140.5per day for each days service necessarily rendered, and mileage at the rate paid other city
140.6officers for each mile necessarily traveled in going to and returning from the county seat of
140.7the county to attend any meeting of the assessors of the county legally called by the county
140.8auditor, and also for each mile necessarily traveled in making the return of assessment
140.9to the proper county officer and in attending sectional meetings called by the county
140.10assessor, except when mileage is paid by the county. In addition to other compensation,
140.11the council may allow the assessor mileage at the same rate per mile as paid other city
140.12officers for each mile necessarily traveled in assessment work.
140.13EFFECTIVE DATE.This section is effective the day following final enactment.

140.14    Sec. 83. Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 3,
140.15is amended to read:
140.16    Subd. 3. Reporting; definitions. (a) On or before September 1, annually, the
140.17executive director of the Public Employees Retirement Association shall report to the
140.18commissioner of revenue the following:
140.19    (1) the municipalities which employ firefighters with retirement coverage by the
140.20public employees police and fire retirement plan;
140.21    (2) the number of firefighters with public employees police and fire retirement plan
140.22coverage employed by each municipality;
140.23    (3) (2) the fire departments covered by the voluntary statewide lump-sum volunteer
140.24firefighter retirement plan; and
140.25    (4) (3) any other information requested by the commissioner to administer the police
140.26and firefighter retirement supplemental state aid program.
140.27    (b) For this subdivision, (i) the number of firefighters employed by a municipality
140.28who have public employees police and fire retirement plan coverage means the number
140.29of firefighters with public employees police and fire retirement plan coverage that were
140.30employed by the municipality for not less than 30 hours per week for a minimum of six
140.31months prior to December 31 preceding the date of the payment under this section and, if
140.32the person was employed for less than the full year, prorated to the number of full months
140.33employed; and (ii) the number of active police officers certified for police state aid receipt
140.34under section 69.011, subdivisions 2 and 2b, means, for each municipality, the number of
141.1police officers meeting the definition of peace officer in section 69.011, subdivision 1,
141.2counted as provided and limited by section 69.011, subdivisions 2 and 2b.
141.3EFFECTIVE DATE.This section is effective the day following final enactment.

141.4    Sec. 84. Minnesota Statutes 2013 Supplement, section 465.04, is amended to read:
141.5465.04 ACCEPTANCE OF GIFTS.
141.6    Cities A city of the second, third, or fourth class, having at any time an estimated
141.7market value of not more than $41,000,000, as officially equalized by the commissioner
141.8of revenue, either operating under a home rule charter or under the laws of this state, in
141.9addition to all other powers possessed by them, hereby are authorized and empowered to
141.10 may receive and accept gifts and donations for the use and benefit of such cities and the
141.11city and its inhabitants thereof upon terms and conditions to be approved by the governing
141.12bodies body of such cities; and such cities are authorized to comply with and perform such
141.13 the city. The terms and conditions, which may include payment to the donor or donors of
141.14interest on the value of the gift at not exceeding five percent per annum payable annually or
141.15semiannually, during the remainder of the natural life or lives of such the donor or donors.

141.16    Sec. 85. Minnesota Statutes 2012, section 469.176, subdivision 1b, is amended to read:
141.17    Subd. 1b. Duration limits; terms. (a) No tax increment shall in any event be
141.18paid to the authority:
141.19(1) after 15 years after receipt by the authority of the first increment for a renewal
141.20and renovation district;
141.21(2) after 20 years after receipt by the authority of the first increment for a soils
141.22condition district;
141.23(3) after eight years after receipt by the authority of the first increment for an
141.24economic development district;
141.25(4) for a housing district, a compact development district, or a redevelopment
141.26district, after 25 years from the date of receipt by the authority of the first increment.
141.27(b) For purposes of determining a duration limit under this subdivision or subdivision
141.281e that is based on the receipt of an increment, any increments from taxes payable in the year
141.29in which the district terminates shall be paid to the authority. This paragraph does not affect
141.30a duration limit calculated from the date of approval of the tax increment financing plan or
141.31based on the recovery of costs or to a duration limit under subdivision 1c. This paragraph
141.32does not supersede the restrictions on payment of delinquent taxes in subdivision 1f.
142.1(c) An action by the authority to waive or decline to accept an increment has no
142.2effect for purposes of computing a duration limit based on the receipt of increment under
142.3this subdivision or any other provision of law. The authority is deemed to have received an
142.4increment for any year in which it waived or declined to accept an increment, regardless
142.5of whether the increment was paid to the authority.
142.6(d) Receipt by a hazardous substance subdistrict of an increment as a result of a
142.7reduction in original net tax capacity under section 469.174, subdivision 7, paragraph
142.8(b), does not constitute receipt of increment by the overlying district for the purpose of
142.9calculating the duration limit under this section.
142.10EFFECTIVE DATE.This section is effective the day following final enactment.

142.11    Sec. 86. Minnesota Statutes 2012, section 469.176, subdivision 3, is amended to read:
142.12    Subd. 3. Limitation on administrative expenses. (a) For districts for which
142.13certification was requested before August 1, 1979, or after June 30, 1982 and before
142.14 August 1, 2001, no tax increment shall be used to pay any administrative expenses for
142.15a project which exceed ten percent of the total estimated tax increment expenditures
142.16authorized by the tax increment financing plan or the total tax increment expenditures
142.17for the project, whichever is less.
142.18(b) For districts for which certification was requested after July 31, 1979, and before
142.19July 1, 1982, no tax increment shall be used to pay administrative expenses, as defined in
142.20Minnesota Statutes 1980, section 273.73, for a district which exceeds five percent of the
142.21total tax increment expenditures authorized by the tax increment financing plan or the total
142.22estimated tax increment expenditures for the district, whichever is less.
142.23(c) (b) For districts for which certification was requested after July 31, 2001, no tax
142.24increment may be used to pay any administrative expenses for a project which exceed
142.25ten percent of total estimated tax increment expenditures authorized by the tax increment
142.26financing plan or the total tax increments, as defined in section 469.174, subdivision 25,
142.27clause (1), from the district, whichever is less.
142.28(d) (c) Increments used to pay the county's administrative expenses under
142.29subdivision 4h are not subject to the percentage limits in this subdivision.
142.30EFFECTIVE DATE.This section is effective the day following final enactment.

142.31    Sec. 87. Minnesota Statutes 2013 Supplement, section 469.1763, subdivision 2,
142.32is amended to read:
143.1    Subd. 2. Expenditures outside district. (a) For each tax increment financing
143.2district, an amount equal to at least 75 percent of the total revenue derived from tax
143.3increments paid by properties in the district must be expended on activities in the district
143.4or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities
143.5in the district or to pay, or secure payment of, debt service on credit enhanced bonds.
143.6For districts, other than redevelopment districts for which the request for certification
143.7was made after June 30, 1995, the in-district percentage for purposes of the preceding
143.8sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax
143.9increments paid by properties in the district may be expended, through a development fund
143.10or otherwise, on activities outside of the district but within the defined geographic area of
143.11the project except to pay, or secure payment of, debt service on credit enhanced bonds.
143.12For districts, other than redevelopment districts for which the request for certification was
143.13made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is
143.1420 percent. The revenue derived from tax increments for the district that are expended on
143.15costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before
143.16calculating the percentages that must be expended within and without the district.
143.17    (b) In the case of a housing district, a housing project, as defined in section 469.174,
143.18subdivision 11 , is an activity in the district.
143.19    (c) All administrative expenses are for activities outside of the district, except that
143.20if the only expenses for activities outside of the district under this subdivision are for
143.21the purposes described in paragraph (d), administrative expenses will be considered as
143.22expenditures for activities in the district.
143.23    (d) The authority may elect, in the tax increment financing plan for the district,
143.24to increase by up to ten percentage points the permitted amount of expenditures for
143.25activities located outside the geographic area of the district under paragraph (a). As
143.26permitted by section 469.176, subdivision 4k, the expenditures, including the permitted
143.27expenditures under paragraph (a), need not be made within the geographic area of the
143.28project. Expenditures that meet the requirements of this paragraph are legally permitted
143.29expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j.
143.30To qualify for the increase under this paragraph, the expenditures must:
143.31    (1) be used exclusively to assist housing that meets the requirement for a qualified
143.32low-income building, as that term is used in section 42 of the Internal Revenue Code; and
143.33    (2) not exceed the qualified basis of the housing, as defined under section 42(c) of
143.34the Internal Revenue Code, less the amount of any credit allowed under section 42 of
143.35the Internal Revenue Code; and
143.36    (3) be used to:
144.1    (i) acquire and prepare the site of the housing;
144.2    (ii) acquire, construct, or rehabilitate the housing; or
144.3    (iii) make public improvements directly related to the housing; or
144.4(4) be used to develop housing:
144.5(i) if the market value of the housing does not exceed the lesser of:
144.6(A) 150 percent of the average market value of single-family homes in that
144.7municipality; or
144.8(B) $200,000 for municipalities located in the metropolitan area, as defined in
144.9section 473.121, or $125,000 for all other municipalities; and
144.10(ii) if the expenditures are used to pay the cost of site acquisition, relocation,
144.11demolition of existing structures, site preparation, and pollution abatement on one or
144.12more parcels, if the parcel contains a residence containing one to four family dwelling
144.13units that has been vacant for six or more months and is in foreclosure as defined in
144.14section 325N.10, subdivision 7, but without regard to whether the residence is the owner's
144.15principal residence, and only after the redemption period has expired.
144.16    (e) For a district created within a biotechnology and health sciences industry zone
144.17as defined in section 469.330, subdivision 6, or for an existing district located within
144.18such a zone, tax increment derived from such a district may be expended outside of the
144.19district but within the zone only for expenditures required for the construction of public
144.20infrastructure necessary to support the activities of the zone, land acquisition, and other
144.21redevelopment costs as defined in section 469.176, subdivision 4j. These expenditures are
144.22considered as expenditures for activities within the district. The authority provided by
144.23this paragraph expires for expenditures made after the later of (1) December 31, 2015,
144.24or (2) the end of the five-year period beginning on the date the district was certified,
144.25provided that date was before January 1, 2016.
144.26(f) The authority under paragraph (d), clause (4), expires on December 31, 2016.
144.27Increments may continue to be expended under this authority after that date, if they are
144.28used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph
144.29(a), if December 31, 2016, is considered to be the last date of the five-year period after
144.30certification under that provision.
144.31EFFECTIVE DATE.This section is effective the day following final enactment
144.32and applies to all districts, regardless of when the request for certification was made.

144.33    Sec. 88. Minnesota Statutes 2012, section 473.665, subdivision 5, is amended to read:
144.34    Subd. 5. Tax levy; surplus; reduction. The corporation, upon issuing any bonds
144.35under the provisions of this section, shall, before the issuance thereof, levy for each year,
145.1until the principal and interest are paid in full, a direct annual tax on all the taxable property
145.2of the cities in and for which the corporation has been created in an amount not less than
145.3five percent in excess of the sum required to pay the principal and interest thereof, when
145.4and as such principal and interest matures. After any of such bonds have been delivered to
145.5purchasers, such tax shall be irrepealable until all such indebtedness is paid, and after the
145.6issuance of such bonds no further action of the corporation shall be necessary to authorize
145.7the extensions, assessments, and collection of such tax. The secretary of the corporation
145.8shall forthwith furnish a certified copy of such levy to the county auditor or county
145.9auditors of the county or counties in which the cities in and for which the corporation has
145.10been created are located, together with full information regarding the bonds for which the
145.11tax is levied, and such county auditor or such county auditors, as the case may be, shall
145.12enter the same in the register provided for in section 475.62, or a similar register, and shall
145.13extend and assess the tax so levied. If both cities are located wholly within one county, the
145.14county auditor thereof shall annually extend and assess the amount of the tax so levied. If
145.15the cities are located in different counties, the county auditor of each such county shall
145.16annually extend and assess such portion of the tax levied as the net tax capacity of the
145.17taxable property, not including moneys and credits, located wholly within the city in such
145.18county bears to the total net tax capacity of the taxable property, not including moneys and
145.19credits, within both cities. Any surplus resulting from the excess levy herein provided
145.20for shall be transferred to a sinking fund after the principal and interest for which the tax
145.21was levied and collected has been paid; provided, that the corporation may, on or before
145.22October 15 in any year, by appropriate action, cause its secretary to certify to the county
145.23auditor, or auditors, the amount on hand and available in its treasury from earnings, or
145.24otherwise, including the amount in the sinking fund, which it will use to pay principal or
145.25interest or both on each specified issue of its bonds, and the county auditor or auditors
145.26shall reduce the levy for that year, herein provided for by that amount. The amount of
145.27funds so certified shall be set aside by the corporation, and be used for no other purpose
145.28than for the payment of the principal and interest of the bonds. All taxes hereunder shall
145.29be collected and remitted to the corporation by the county treasurer or county treasurers,
145.30in accordance with the provisions of law governing the collection of other taxes, and shall
145.31be used solely for the payment of the bonds where due.
145.32EFFECTIVE DATE.This section is effective the day following final enactment.

145.33    Sec. 89. Minnesota Statutes 2012, section 477A.0124, subdivision 5, is amended to
145.34read:
146.1    Subd. 5. County transition aid. (a) For 2009 and each year thereafter, A county is
146.2eligible to receive the transition aid it received in 2007.
146.3    (b) In 2009 only, a county with (1) a 2006 population less than 30,000, and (2)
146.4an average Part I crimes per capita greater than 3.9 percent based on factors used in
146.5determining county program aid payable in 2008, shall receive $100,000.
146.6EFFECTIVE DATE.This section is effective the day following final enactment.

146.7    Sec. 90. Minnesota Statutes 2012, section 477A.014, subdivision 1, is amended to read:
146.8    Subdivision 1. Calculations and payments. (a) The commissioner of revenue shall
146.9make all necessary calculations and make payments pursuant to sections 477A.013 and
146.10477A.03 directly to the affected taxing authorities annually. In addition, the commissioner
146.11shall notify the authorities of their aid amounts, as well as the computational factors used
146.12in making the calculations for their authority, and those statewide total figures that are
146.13pertinent, before August 1 of the year preceding the aid distribution year.
146.14(b) For the purposes of this subdivision, aid is determined for a city or town based
146.15on its city or town status as of June 30 of the year preceding the aid distribution year. If
146.16the effective date for a municipal incorporation, consolidation, annexation, detachment,
146.17dissolution, or township organization is on or before June 30 of the year preceding
146.18the aid distribution year, such change in boundaries or form of government shall be
146.19recognized for aid determinations for the aid distribution year. If the effective date for a
146.20municipal incorporation, consolidation, annexation, detachment, dissolution, or township
146.21organization is after June 30 of the year preceding the aid distribution year, such change in
146.22boundaries or form of government shall not be recognized for aid determinations until
146.23the following year.
146.24(c) Changes in boundaries or form of government will only be recognized for the
146.25purposes of this subdivision, to the extent that: (1) changes in market values are included
146.26in market values reported by assessors to the commissioner, and changes in population,
146.27 and household size, and the road accidents factor are included in their respective
146.28certifications to the commissioner as referenced in section 477A.011, or (2) an annexation
146.29information report as provided in paragraph (d) is received by the commissioner on
146.30or before July 15 of the aid calculation year. Revisions to estimates or data for use in
146.31recognizing changes in boundaries or form of government are not effective for purposes
146.32of this subdivision unless received by the commissioner on or before July 15 of the aid
146.33calculation year. Clerical errors in the certification or use of estimates and data established
146.34as of July 15 in the aid calculation year are subject to correction within the time periods
146.35allowed under subdivision 3.
147.1(d) In the case of an annexation, an annexation information report may be completed
147.2by the annexing jurisdiction and submitted to the commissioner for purposes of this
147.3subdivision if the net tax capacity of annexed area for the assessment year preceding the
147.4effective date of the annexation exceeds five percent of the city's net tax capacity for the
147.5same year. The form and contents of the annexation information report shall be prescribed
147.6by the commissioner. The commissioner shall change the net tax capacity, the population,
147.7the population decline, the commercial industrial percentage, and the transformed
147.8population for the annexing jurisdiction only if the annexation information report provides
147.9data the commissioner determines to be reliable for all of these factors used to compute city
147.10revenue need for the annexing jurisdiction. The commissioner shall adjust the pre-1940
147.11housing percentage, the road accidents factor, and household size only if the entire area of
147.12an existing city or town is annexed or consolidated and only if reliable data is available for
147.13all of these factors used to compute city revenue need for the annexing jurisdiction.
147.14EFFECTIVE DATE.This section is effective the day following final enactment.

147.15    Sec. 91. Minnesota Statutes 2012, section 611.27, subdivision 13, is amended to read:
147.16    Subd. 13. Public defense services; correctional facility inmates. All billings
147.17for services rendered and ordered under subdivision 7 shall require the approval of the
147.18chief district public defender before being forwarded on a monthly basis to the state
147.19public defender. In cases where adequate representation cannot be provided by the district
147.20public defender and where counsel has been appointed under a court order, the state
147.21public defender shall forward to the commissioner of management and budget all billings
147.22for services rendered under the court order. The commissioner shall pay for services
147.23from county program aid retained by the commissioner of revenue for that purpose under
147.24section 477A.0124, subdivision 1, clause (4), or 477A.03, subdivision 2b, paragraph (a).
147.25    The costs of appointed counsel and associated services in cases arising from new
147.26criminal charges brought against indigent inmates who are incarcerated in a Minnesota
147.27state correctional facility are the responsibility of the state Board of Public Defense. In
147.28such cases the state public defender may follow the procedures outlined in this section for
147.29obtaining court-ordered counsel.
147.30EFFECTIVE DATE.This section is effective the day following final enactment.

147.31    Sec. 92. Minnesota Statutes 2012, section 611.27, subdivision 15, is amended to read:
147.32    Subd. 15. Costs of transcripts. In appeal cases and postconviction cases where
147.33the appellate public defender's office does not have sufficient funds to pay for transcripts
148.1and other necessary expenses because it has spent or committed all of the transcript
148.2funds in its annual budget, the state public defender may forward to the commissioner
148.3of management and budget all billings for transcripts and other necessary expenses. The
148.4commissioner shall pay for these transcripts and other necessary expenses from county
148.5program aid retained by the commissioner of revenue for that purpose under section
148.6477A.0124, subdivision 1, clause (4), or 477A.03, subdivision 2b, paragraph (a).
148.7EFFECTIVE DATE.This section is effective the day following final enactment.

148.8    Sec. 93. REVISOR'S INSTRUCTION.
148.9The revisor of statutes shall make all necessary cross-reference changes in
148.10Minnesota Statutes and Minnesota Rules consistent with the amendments and repealers in
148.11this act. The revisor can make changes to sentence structure to preserve the meaning of
148.12the text. The revisor shall make other changes in chapter titles; section, subdivision, part,
148.13and subpart headnotes; and in other terminology necessary as a result of the enactment of
148.14this act. The Department of Revenue shall assist in making these corrections.

148.15    Sec. 94. REPEALER.
148.16(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision
148.1719e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules,
148.18part 8007.0200, are repealed.
148.19(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11,
148.20subdivision 2; 270C.131; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a,
148.2143, 48, 51, 53, 67, 72, and 82; 272.027, subdivision 2; 272.031; 273.015, subdivision 1;
148.22273.03, subdivision 3; 273.075; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173,
148.23subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision
148.244; 287.27, subdivision 2; 290.01, subdivisions 4b and 20e; 290C.02, subdivisions 5
148.25and 9; 290C.06; 295.52, subdivision 7; 297A.666; 297A.71, subdivisions 4, 5, 7, 9,
148.2610, 17, 18, 20, 32, and 41; 297F.08, subdivision 11; 297H.10, subdivision 2; 469.174,
148.27subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i; 469.177, subdivision
148.2810; 477A.0124, subdivisions 1 and 6; and 505.173, Minnesota Statutes 2013 Supplement,
148.29section 273.1103, Laws 1993, chapter 375, article 9, section 47, and Minnesota Rules,
148.30parts 8002.0200, subpart 8; 8100.0800; 8130.7500, subpart 7; 8130.8900, subpart 3; and
148.318130.9500, subparts 1, 1a, 2, 3, 4, and 5, are repealed.
148.32(c) Minnesota Statutes 2012, section 469.1764, is repealed.
148.33(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision
148.3438; 469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338;
149.1469.339; 469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013
149.2Supplement, section 469.340, subdivision 4, are repealed.
149.3(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.
149.4EFFECTIVE DATE.Paragraph (a) is effective for taxable years beginning after
149.5December 31, 2013.
149.6Paragraph (b) is effective the day following final enactment.
149.7Paragraph (c) is effective the day following final enactment and any remaining
149.8unexpended tax increments from a district subject to Minnesota Statutes, section 469.1764,
149.9must be distributed as excess increments to the city, county, and school district under
149.10Minnesota Statutes, section 469.176, subdivision 2, paragraph (c), clause (4), on or before
149.11December 31, 2014.
149.12Paragraph (d) is effective the day following final enactment.
149.13Paragraph (e) is effective for taxable years beginning after December 31, 2013.


149.17    Section 1. Minnesota Statutes 2012, section 270.87, is amended to read:
149.18270.87 CERTIFICATION TO COUNTY ASSESSORS.
149.19After making an annual determination of the equalized fair market value of the
149.20operating property of each company in each of the respective counties, and in the taxing
149.21districts therein, the commissioner shall certify the equalized fair market value to the
149.22county assessor on or before June 30. The equalized fair market value of the operating
149.23property of the railroad company in the county and the taxing districts therein is the value
149.24on which taxes must be levied and collected in the same manner as on the commercial and
149.25industrial property of such county and the taxing districts therein. If the commissioner
149.26determines that the equalized fair market value certified on or before June 30 is in error,
149.27the commissioner may issue a corrected certification on or before August 31. The
149.28commissioner may correct errors that are merely clerical in nature until December 31.
149.29EFFECTIVE DATE.This section is effective the day following final enactment.

149.30    Sec. 2. Minnesota Statutes 2012, section 272.029, subdivision 4a, is amended to read:
149.31    Subd. 4a. Correction of errors. If the commissioner of revenue determines that
149.32the amount of production tax has been erroneously calculated, the commissioner may
149.33correct the error. The commissioner must notify the owner of the wind energy conversion
150.1system of the correction and the amount of tax due to each county and must certify the
150.2correction to the county auditor of each county in which the system is located on or before
150.3April 1 of the current year. The commissioner may correct errors that are merely clerical
150.4in nature until December 31.
150.5EFFECTIVE DATE.This section is effective the day following final enactment.

150.6    Sec. 3. Minnesota Statutes 2012, section 273.01, is amended to read:
150.7273.01 LISTING AND ASSESSMENT, TIME.
150.8All real property subject to taxation shall be listed and at least one-fifth of the parcels
150.9listed shall be appraised each year with reference to their value on January 2 preceding the
150.10assessment so that each parcel shall be reappraised at maximum intervals of five years. All
150.11real property becoming taxable in any year shall be listed with reference to its value on
150.12January 2 of that year. Except as provided in this section and section 274.01, subdivision
150.131 , all real property assessments shall be completed two weeks prior to the date scheduled
150.14for the local board of review or equalization. No changes in valuation or classification
150.15which are intended to correct errors in judgment by the county assessor may be made by
150.16the county assessor after the board of review or the county board of equalization has
150.17adjourned; however, corrections of errors for real or personal property that are merely
150.18clerical in nature or changes that extend homestead treatment to property are permitted
150.19after adjournment until the tax extension date for that assessment year. Any changes made
150.20by the assessor after adjournment must be fully documented and maintained in a file in the
150.21assessor's office and shall be available for review by any person. A copy of any changes
150.22made during this period shall be sent to the county board no later than December 31 of
150.23the assessment year. In the event a valuation and classification is not placed on any real
150.24property by the dates scheduled for the local board of review or equalization the valuation
150.25and classification determined in the preceding assessment shall be continued in effect and
150.26the provisions of section 273.13 shall, in such case, not be applicable, except with respect
150.27to real estate which has been constructed since the previous assessment. Real property
150.28containing iron ore, the fee to which is owned by the state of Minnesota, shall, if leased by
150.29the state after January 2 in any year, be subject to assessment for that year on the value of
150.30any iron ore removed under said lease prior to January 2 of the following year. Personal
150.31property subject to taxation shall be listed and assessed annually with reference to its value
150.32on January 2; and, if acquired on that day, shall be listed by or for the person acquiring it.
150.33EFFECTIVE DATE.This section is effective the day following final enactment.

151.1    Sec. 4. Minnesota Statutes 2013 Supplement, section 273.1325, subdivision 1, is
151.2amended to read:
151.3    Subdivision 1. Computation. The Department of Revenue must annually conduct
151.4an assessment/sales ratio study of the taxable property in each county, city, town, and
151.5school district in accordance with the procedures in subdivisions 2 and 3. Based upon the
151.6results of this assessment/sales ratio study, the Department of Revenue must determine
151.7an equalized net tax capacity for the various classes of taxable property in each taxing
151.8district, the aggregate of which is designated as the adjusted net tax capacity. The adjusted
151.9net tax capacity must be reduced by the captured tax capacity of tax increment districts
151.10under section 469.177, subdivision 2, fiscal disparities contribution tax capacities under
151.11sections 276A.06 and 473F.08, and the tax capacity of transmission lines required to be
151.12subtracted from the local tax base under section 273.425; and increased by fiscal disparities
151.13distribution tax capacities under sections 276A.06 and 473F.08. The adjusted net tax
151.14capacities shall be determined using the net tax capacity percentages in effect for the
151.15assessment year following the assessment year of the study. The Department of Revenue
151.16must make whatever estimates are necessary to account for changes in the classification
151.17system. The Department of Revenue may incur the expense necessary to make the
151.18determinations. The commissioner of revenue may reimburse any county or governmental
151.19official for requested services performed in ascertaining the adjusted net tax capacity. On
151.20or before March 15 annually, the Department of Revenue shall file with the chair of the
151.21Tax Committee of the house of representatives and the chair of the Committee on Taxes
151.22and Tax laws of the senate a report of adjusted net tax capacities for school districts.
151.23On or before June 15 30 annually, the Department of Revenue shall file its final report
151.24on the adjusted net tax capacities for school districts established by the previous year's
151.25assessments and the current year's net tax capacity percentages with the commissioner of
151.26education and each county auditor for those school districts for which the auditor has the
151.27responsibility for determination of local tax rates. A copy of the report so filed shall be
151.28mailed to the clerk of each school district involved and to the county assessor or supervisor
151.29of assessments of the county or counties in which each school district is located.
151.30EFFECTIVE DATE.This section is effective January 1, 2014.

151.31    Sec. 5. Minnesota Statutes 2012, section 273.33, subdivision 2, is amended to read:
151.32    Subd. 2. Listing and assessment by commissioner. The personal property,
151.33consisting of the pipeline system of mains, pipes, and equipment attached thereto, of
151.34pipeline companies and others engaged in the operations or business of transporting natural
151.35gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed with and
152.1assessed by the commissioner of revenue and the values provided to the city or county
152.2assessor by order. This subdivision shall not apply to the assessment of the products
152.3transported through the pipelines nor to the lines of local commercial gas companies
152.4engaged primarily in the business of distributing gas to consumers at retail nor to pipelines
152.5used by the owner thereof to supply natural gas or other petroleum products exclusively
152.6for such owner's own consumption and not for resale to others. If more than 85 percent
152.7of the natural gas or other petroleum products actually transported over the pipeline is
152.8used for the owner's own consumption and not for resale to others, then this subdivision
152.9shall not apply; provided, however, that in that event, the pipeline shall be assessed in
152.10proportion to the percentage of gas actually transported over such pipeline that is not used
152.11for the owner's own consumption. On or before August 1, the commissioner shall certify
152.12to the auditor of each county, the amount of such personal property assessment against
152.13each company in each district in which such property is located. If the commissioner
152.14determines that the amount of personal property assessment certified on or before August
152.151 is in error, the commissioner may issue a corrected certification on or before October 1.
152.16 The commissioner may correct errors that are merely clerical in nature until December 31.
152.17EFFECTIVE DATE.This section is effective the day following final enactment.

152.18    Sec. 6. Minnesota Statutes 2012, section 273.37, subdivision 2, is amended to read:
152.19    Subd. 2. Listing and assessment by commissioner. Transmission lines of less
152.20than 69 kv, transmission lines of 69 kv and above located in an unorganized township,
152.21and distribution lines, and equipment attached thereto, having a fixed situs outside the
152.22corporate limits of cities except distribution lines taxed as provided in sections 273.40
152.23and 273.41, shall be listed with and assessed by the commissioner of revenue in the
152.24county where situated and the values provided to the city or county assessor by order.
152.25The commissioner shall assess such property at the percentage of market value fixed by
152.26law; and, on or before August 1, shall certify to the auditor of each county in which
152.27such property is located the amount of the assessment made against each company and
152.28person owning such property. If the commissioner determines that the amount of the
152.29assessment certified on or before August 1 is in error, the commissioner may issue a
152.30corrected certification on or before October 1. The commissioner may correct errors that
152.31are merely clerical in nature until December 31.
152.32EFFECTIVE DATE.This section is effective the day following final enactment.

152.33    Sec. 7. Minnesota Statutes 2012, section 273.3711, is amended to read:
153.1273.3711 RECOMMENDED AND ORDERED VALUES.
153.2    For purposes of sections 273.33, 273.35, 273.36, 273.37, 273.371, and 273.372,
153.3all values not required to be listed and assessed by the commissioner of revenue are
153.4recommended values. If the commissioner provides recommended values, the values must
153.5be certified to the auditor of each county in which the property is located on or before
153.6August 1. If the commissioner determines that the certified recommended value is in
153.7error the commissioner may issue a corrected certification on or before October 1. The
153.8commissioner may correct errors that are merely clerical in nature until December 31.
153.9EFFECTIVE DATE.This section is effective the day following final enactment.

153.10    Sec. 8. Minnesota Statutes 2012, section 274.01, subdivision 1, is amended to read:
153.11    Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town
153.12board of a town, or the council or other governing body of a city, is the board of appeal
153.13and equalization except (1) in cities whose charters provide for a board of equalization or
153.14(2) in any city or town that has transferred its local board of review power and duties to
153.15the county board as provided in subdivision 3. The county assessor shall fix a day and
153.16time when the board or the board of equalization shall meet in the assessment districts
153.17of the county. Notwithstanding any law or city charter to the contrary, a city board of
153.18equalization shall be referred to as a board of appeal and equalization. On or before
153.19February 15 of each year the assessor shall give written notice of the time to the city or
153.20town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings
153.21must be held between April 1 and May 31 each year. The clerk shall give published and
153.22posted notice of the meeting at least ten days before the date of the meeting.
153.23    The board shall meet either at a central location within the county or at the office of
153.24the clerk to review the assessment and classification of property in the town or city. No
153.25changes in valuation or classification which are intended to correct errors in judgment by
153.26the county assessor may be made by the county assessor after the board has adjourned
153.27in those cities or towns that hold a local board of review; however, corrections of errors
153.28that are merely clerical in nature or changes that extend homestead treatment to property
153.29are permitted after adjournment until the tax extension date for that assessment year. The
153.30changes must be fully documented and maintained in the assessor's office and must be
153.31available for review by any person. A copy of the changes made during this period in
153.32those cities or towns that hold a local board of review must be sent to the county board no
153.33later than December 31 of the assessment year.
153.34    (b) The board shall determine whether the taxable property in the town or city has
153.35been properly placed on the list and properly valued by the assessor. If real or personal
154.1property has been omitted, the board shall place it on the list with its market value, and
154.2correct the assessment so that each tract or lot of real property, and each article, parcel,
154.3or class of personal property, is entered on the assessment list at its market value. No
154.4assessment of the property of any person may be raised unless the person has been
154.5duly notified of the intent of the board to do so. On application of any person feeling
154.6aggrieved, the board shall review the assessment or classification, or both, and correct
154.7it as appears just. The board may not make an individual market value adjustment or
154.8classification change that would benefit the property if the owner or other person having
154.9control over the property has refused the assessor access to inspect the property and the
154.10interior of any buildings or structures as provided in section 273.20. A board member
154.11shall not participate in any actions of the board which result in market value adjustments
154.12or classification changes to property owned by the board member, the spouse, parent,
154.13stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew,
154.14or niece of a board member, or property in which a board member has a financial interest.
154.15The relationship may be by blood or marriage.
154.16    (c) A local board may reduce assessments upon petition of the taxpayer but the total
154.17reductions must not reduce the aggregate assessment made by the county assessor by more
154.18than one percent. If the total reductions would lower the aggregate assessments made by
154.19the county assessor by more than one percent, none of the adjustments may be made. The
154.20assessor shall correct any clerical errors or double assessments discovered by the board
154.21without regard to the one percent limitation.
154.22    (d) A local board does not have authority to grant an exemption or to order property
154.23removed from the tax rolls.
154.24    (e) A majority of the members may act at the meeting, and adjourn from day to day
154.25until they finish hearing the cases presented. The assessor shall attend, with the assessment
154.26books and papers, and take part in the proceedings, but must not vote. The county assessor,
154.27or an assistant delegated by the county assessor shall attend the meetings. The board shall
154.28list separately, on a form appended to the assessment book, all omitted property added
154.29to the list by the board and all items of property increased or decreased, with the market
154.30value of each item of property, added or changed by the board, placed opposite the item.
154.31The county assessor shall enter all changes made by the board in the assessment book.
154.32    (f) Except as provided in subdivision 3, if a person fails to appear in person, by
154.33counsel, or by written communication before the board after being duly notified of the
154.34board's intent to raise the assessment of the property, or if a person feeling aggrieved by an
154.35assessment or classification fails to apply for a review of the assessment or classification,
154.36the person may not appear before the county board of appeal and equalization for a review
155.1of the assessment or classification. This paragraph does not apply if an assessment was
155.2made after the local board meeting, as provided in section 273.01, or if the person can
155.3establish not having received notice of market value at least five days before the local
155.4board meeting.
155.5    (g) The local board must complete its work and adjourn within 20 days from the
155.6time of convening stated in the notice of the clerk, unless a longer period is approved by
155.7the commissioner of revenue. No action taken after that date is valid. All complaints
155.8about an assessment or classification made after the meeting of the board must be heard
155.9and determined by the county board of equalization. A nonresident may, at any time,
155.10before the meeting of the board file written objections to an assessment or classification
155.11with the county assessor. The objections must be presented to the board at its meeting by
155.12the county assessor for its consideration.
155.13EFFECTIVE DATE.This section is effective the day following final enactment.

155.14    Sec. 9. Minnesota Statutes 2012, section 274.014, subdivision 3, is amended to read:
155.15    Subd. 3. Proof of compliance; transfer of duties. (a) Any city or town that
155.16conducts local boards of appeal and equalization meetings must provide proof to the
155.17county assessor by December 1, 2006 February 15, 2015, and each year thereafter, that it
155.18is in compliance with the requirements of subdivision 2. Beginning in 2006 2015, this
155.19notice must also verify that there was a quorum of voting members at each meeting of the
155.20board of appeal and equalization in the current year. A city or town that does not comply
155.21with these requirements is deemed to have transferred its board of appeal and equalization
155.22powers to the county beginning with the following year's assessment and continuing
155.23unless the powers are reinstated under paragraph (c).
155.24    (b) The county shall notify the taxpayers when the board of appeal and equalization
155.25for a city or town has been transferred to the county under this subdivision and, prior to
155.26the meeting time of the county board of equalization, the county shall make available to
155.27those taxpayers a procedure for a review of the assessments, including, but not limited to,
155.28open book meetings. This alternate review process shall take place in April and May.
155.29    (c) A local board whose powers are transferred to the county under this subdivision
155.30may be reinstated by resolution of the governing body of the city or town and upon proof
155.31of compliance with the requirements of subdivision 2. The resolution and proofs must be
155.32provided to the county assessor by December 1 February 15 in order to be effective for
155.33the following year's assessment.
156.1    (d) A local board whose powers are transferred to the county under this subdivision
156.2may continue to employ a local assessor and is not deemed to have transferred its powers
156.3to make assessments.
156.4EFFECTIVE DATE.This section is effective beginning with local boards of appeal
156.5and equalization meetings held after December 31, 2014.

156.6    Sec. 10. Minnesota Statutes 2013 Supplement, section 290C.03, is amended to read:
156.7290C.03 ELIGIBILITY REQUIREMENTS.
156.8(a) Land may be enrolled in the sustainable forest incentive program under this
156.9chapter if all of the following conditions are met:
156.10(1) the land consists of at least 20 contiguous acres and at least 50 percent of the
156.11land must meet the definition of forest land in section 88.01, subdivision 7, during the
156.12enrollment;
156.13(2) a forest management plan for the land must be prepared by an approved plan
156.14writer and implemented during the period in which the land is enrolled;
156.15(3) timber harvesting and forest management guidelines must be used in conjunction
156.16with any timber harvesting or forest management activities conducted on the land during
156.17the period in which the land is enrolled;
156.18(4) the land must be enrolled for a minimum of eight years;
156.19(5) there are no delinquent property taxes on the land; and
156.20(6) claimants enrolling more than 1,920 acres in the sustainable forest incentive
156.21program must allow year-round, nonmotorized access to fish and wildlife resources and
156.22motorized access on established and maintained roads and trails, unless the road or trail is
156.23temporarily closed for safety, natural resource, or road damage reasons on enrolled land
156.24except within one-fourth mile of a permanent dwelling or during periods of high fire
156.25hazard as determined by the commissioner of natural resources.; and
156.26(7) the land is not classified as class 2c managed forest land.
156.27(b) Claimants required to allow access under paragraph (a), clause (6), do not by
156.28that action:
156.29(1) extend any assurance that the land is safe for any purpose;
156.30(2) confer upon the person the legal status of an invitee or licensee to whom a duty
156.31of care is owed; or
156.32(3) assume responsibility for or incur liability for any injury to the person or property
156.33caused by an act or omission of the person.
157.1EFFECTIVE DATE.This section is effective for certifications and applications
157.2due in 2014 and thereafter.

157.3    Sec. 11. Minnesota Statutes 2013 Supplement, section 423A.02, subdivision 3, is
157.4amended to read:
157.5    Subd. 3. Reallocation of amortization state aid. (a) Seventy percent of the
157.6difference between $5,720,000 and the current year amortization aid distributed under
157.7subdivision 1 that is not distributed for any reason to a municipality must be distributed
157.8by the commissioner of revenue according to this paragraph. The commissioner shall
157.9distribute 50 percent of the amounts derived under this paragraph to the Teachers
157.10Retirement Association, ten percent to the Duluth Teachers Retirement Fund Association,
157.11and 40 percent to the St. Paul Teachers Retirement Fund Association to fund the unfunded
157.12actuarial accrued liabilities of the respective funds. These payments must be made on July
157.1315 each fiscal year. If the St. Paul Teachers Retirement Fund Association or the Duluth
157.14Teachers Retirement Fund Association becomes fully funded, the association's eligibility
157.15for its portion of this aid ceases. Amounts remaining in the undistributed balance account
157.16at the end of the biennium if aid eligibility ceases cancel to the general fund.
157.17    (b) In order to receive amortization aid under paragraph (a), before June 30 annually
157.18Independent School District No. 625, St. Paul, must make an additional contribution of
157.19$800,000 each year to the St. Paul Teachers Retirement Fund Association.
157.20    (c) Thirty percent of the difference between $5,720,000 and the current year
157.21amortization aid under subdivision 1a 1 that is not distributed for any reason to a
157.22municipality must be distributed under section 69.021, subdivision 7, paragraph (d), as
157.23additional funding to support a minimum fire state aid amount for volunteer firefighter
157.24relief associations.
157.25EFFECTIVE DATE.This section is effective retroactively from June 1, 2013.

157.26    Sec. 12. Minnesota Statutes 2013 Supplement, section 477A.12, subdivision 1, is
157.27amended to read:
157.28    Subdivision 1. Types of land; payments. The following amounts are annually
157.29appropriated to the commissioner of natural resources from the general fund for transfer
157.30to the commissioner of revenue. The commissioner of revenue shall pay the transferred
157.31funds to counties as required by sections 477A.11 to 477A.14. The amounts, based on the
157.32acreage as of July 1 of each year prior to the payment year, are:
158.1(1) $5.133 multiplied by the total number of acres of acquired natural resources land
158.2or, at the county's option three-fourths of one percent of the appraised value of all acquired
158.3natural resources land in the county, whichever is greater;
158.4(2) $5.133, multiplied by the total number of acres of transportation wetland or, at
158.5the county's option, three-fourths of one percent of the appraised value of all transportation
158.6wetland in the county, whichever is greater;
158.7(3) $5.133, multiplied by the total number of acres of wildlife management land, or,
158.8at the county's option, three-fourths of one percent of the appraised value of all wildlife
158.9management land in the county, whichever is greater;
158.10(4) 50 percent of the dollar amount as determined under clause (1), multiplied by
158.11the number of acres of military refuge land in the county;
158.12(5) $1.50, multiplied by the number of acres of county-administered other natural
158.13resources land in the county;
158.14(6) $5.133, multiplied by the total number of acres of land utilization project land
158.15in the county;
158.16(7) $1.50, multiplied by the number of acres of commissioner-administered other
158.17natural resources land in the county; and
158.18    (8) without regard to acreage, $300,000 for local assessments under section 84A.55,
158.19subdivision 9 .
158.20EFFECTIVE DATE.This section is effective July 1, 2014.

158.21    Sec. 13. Minnesota Statutes 2013 Supplement, section 477A.14, subdivision 1, is
158.22amended to read:
158.23    Subdivision 1. General distribution. Except as provided in subdivisions 2 and 3,
158.2440 percent of the total payment to the county shall be deposited in the county general
158.25revenue fund to be used to provide property tax levy reduction. The remainder shall be
158.26distributed by the county in the following priority:
158.27(a) (1) 64.2 cents, for each acre of county-administered other natural resources land
158.28shall be deposited in a resource development fund to be created within the county treasury
158.29for use in resource development, forest management, game and fish habitat improvement,
158.30and recreational development and maintenance of county-administered other natural
158.31resources land. Any county receiving less than $5,000 annually for the resource
158.32development fund may elect to deposit that amount in the county general revenue fund;
158.33(b) from the funds remaining, (2) within 30 days of receipt of the payment to
158.34the county, the county treasurer shall pay each organized township ten percent of the
158.35amount received a township with land that qualifies for payment under section 477A.12,
159.1subdivision 1 , clauses (1), (2), and (5) to (7), ten percent of the payment the county
159.2received for such land within that township. Payments for natural resources lands not
159.3located in an organized township shall be deposited in the county general revenue fund.
159.4Payments to counties and townships pursuant to this paragraph shall be used to provide
159.5property tax levy reduction, except that of the payments for natural resources lands not
159.6located in an organized township, the county may allocate the amount determined to be
159.7necessary for maintenance of roads in unorganized townships. Provided that, if the total
159.8payment to the county pursuant to section 477A.12 is not sufficient to fully fund the
159.9distribution provided for in this clause, the amount available shall be distributed to each
159.10township and the county general revenue fund on a pro rata basis; and
159.11(c) (3) any remaining funds shall be deposited in the county general revenue fund.
159.12Provided that, if the distribution to the county general revenue fund exceeds $35,000, the
159.13excess shall be used to provide property tax levy reduction.
159.14EFFECTIVE DATE.This section is effective July 1, 2014.

159.15    Sec. 14. REVISOR'S INSTRUCTION.
159.16The revisor of statutes shall change the terms "class rate" or "class rates" to
159.17"classification rate" or "classification rates" or similar terms wherever they appear in
159.18Minnesota Statutes when the terms are being used to refer to the calculation of net tax
159.19capacity in the property tax system. The revisor can make changes to sentence structure
159.20to preserve the meaning of the text. The revisor shall make other changes in section and
159.21subdivision headnotes and in other terminology as necessary as a result of the enactment
159.22of this section. The Department of Revenue shall assist in making these corrections.

159.23    Sec. 15. REPEALER.
159.24Minnesota Statutes 2012, sections 273.13, subdivision 21a; 290C.02, subdivisions 5
159.25and 9; and 290C.06, are repealed.
159.26EFFECTIVE DATE.This section is effective the day following final enactment,
159.27except that section 273.13, subdivision 21a, is repealed effective beginning with
159.28assessment year 2014.


159.32    Section 1. Minnesota Statutes 2012, section 270C.34, subdivision 2, is amended to read:
160.1    Subd. 2. Procedure. (a) A request for abatement of penalty under subdivision 1 or
160.2section 289A.60, subdivision 4, or a request for abatement of interest or additional tax
160.3charge, must be filed with the commissioner within 60 days of the date the notice was
160.4mailed to the taxpayer's last known address, stating that a penalty has been imposed.
160.5(b) If the commissioner issues an order denying a request for abatement of penalty,
160.6interest, or additional tax charge, the taxpayer may file an administrative appeal as
160.7provided in section 270C.35 or appeal to Tax Court as provided in section 271.06.
160.8(c) If the commissioner does not issue an order on the abatement request within
160.960 days from the date the request is received, the taxpayer may appeal to Tax Court as
160.10provided in section 271.06.
160.11EFFECTIVE DATE.This section is effective the day following final enactment.

160.12    Sec. 2. Minnesota Statutes 2012, section 270C.56, subdivision 3, is amended to read:
160.13    Subd. 3. Procedure for assessment; claims for refunds. (a) The commissioner
160.14may assess liability for the taxes described in subdivision 1 against a person liable
160.15under this section. The assessment may be based upon information available to the
160.16commissioner. It must be made within the prescribed period of limitations for assessing
160.17the underlying tax, or within one year after the date of an order assessing underlying
160.18tax, or within one year after the date of a final administrative or judicial determination,
160.19whichever period expires later. An order assessing personal liability under this section is
160.20reviewable under section 270C.35 and is appealable to Tax Court.
160.21(b) If the time for appealing the order has expired and a payment is made by or
160.22collected from the person assessed on the order in excess of the amount lawfully due
160.23from that person of any portion of the liability shown on the order, a claim for refund
160.24may be made by that person within 120 days after any payment of the liability if the
160.25payment is within 3-1/2 years after the date the order was issued. Claims for refund under
160.26this paragraph are limited to the amount paid during the 120-day period. Any amounts
160.27collected under paragraph (c) after a claim for refund is filed in order to satisfy the unpaid
160.28balance of the assessment that is the subject of the claim shall be returned if the claim is
160.29allowed. There is no claim for refund available under this paragraph if the assessment has
160.30previously been the subject of an administrative or Tax Court appeal, or a denied claim
160.31for refund. The taxpayer may contest denial of the refund as provided in the procedures
160.32governing claims for refunds under section 289A.50, subdivision 7.
160.33(c) If a person has been assessed under this section for an amount for a given period
160.34and the time for appeal has expired, regardless of whether an action contesting denial of a
160.35claim for refund has been filed under paragraph (b), or there has been a final determination
161.1that the person is liable, collection action is not stayed pursuant to section 270C.33,
161.2subdivision 5 , for that assessment or for subsequent assessments of additional amounts for
161.3the same person for the same period and tax type.
161.4EFFECTIVE DATE.This section is effective the day following final enactment.

161.5    Sec. 3. Minnesota Statutes 2012, section 289A.18, subdivision 2, is amended to read:
161.6    Subd. 2. Withholding returns, entertainer withholding returns, returns for
161.7withholding from payments to out-of-state contractors, and withholding returns
161.8from partnerships and S corporations. (a) Withholding returns for the first, second,
161.9 and third quarters are due on or before the last day of the month following the close of
161.10the quarterly period. However, if the return shows timely deposits in full payment of
161.11the taxes due for that period, the returns for the first, second, and third quarters may be
161.12filed on or before the tenth day of the second calendar month following the period. The
161.13return for the fourth quarter must be filed on or before the 28th day of the second calendar
161.14month following the period. An employer, in preparing a quarterly return, may take credit
161.15for deposits previously made for that quarter. Entertainer withholding tax returns are
161.16due within 30 days after each performance. Returns for withholding from payments to
161.17out-of-state contractors are due within 30 days after the payment to the contractor. Returns
161.18for withholding by partnerships are due on or before the due date specified for filing
161.19partnership returns. Returns for withholding by S corporations are due on or before the
161.20due date specified for filing corporate franchise tax returns.
161.21(b) A seasonal employer who provides notice in the form and manner prescribed
161.22by the commissioner before the end of the calendar quarter is not required to file a
161.23withholding tax return for periods of anticipated inactivity unless the employer pays wages
161.24during the period from which tax is withheld. For purposes of this paragraph, a seasonal
161.25employer is an employer that regularly, in the same one or more quarterly periods of each
161.26calendar year, pays no wages to employees.
161.27EFFECTIVE DATE.(a) The amendments in paragraph (a) are effective for returns
161.28due after January 1, 2016.
161.29(b) The amendment adding paragraph (b) is effective for wages paid after December
161.3031, 2015.

161.31    Sec. 4. Minnesota Statutes 2013 Supplement, section 290.191, subdivision 5, is
161.32amended to read:
162.1    Subd. 5. Determination of sales factor. For purposes of this section, the following
162.2rules apply in determining the sales factor.
162.3    (a) The sales factor includes all sales, gross earnings, or receipts received in the
162.4ordinary course of the business, except that the following types of income are not included
162.5in the sales factor:
162.6    (1) interest;
162.7    (2) dividends;
162.8    (3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;
162.9    (4) sales of property used in the trade or business, except sales of leased property of
162.10a type which is regularly sold as well as leased; and
162.11    (5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue
162.12Code or sales of stock.
162.13    (b) Sales of tangible personal property are made within this state if the property is
162.14received by a purchaser at a point within this state, and the taxpayer is taxable in this state,
162.15 regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination
162.16of the property.
162.17    (c) Tangible personal property delivered to a common or contract carrier or foreign
162.18vessel for delivery to a purchaser in another state or nation is a sale in that state or nation,
162.19regardless of f.o.b. point or other conditions of the sale.
162.20    (d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine,
162.21fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is
162.22licensed by a state or political subdivision to resell this property only within the state of
162.23ultimate destination, the sale is made in that state.
162.24    (e) Sales made by or through a corporation that is qualified as a domestic
162.25international sales corporation under section 992 of the Internal Revenue Code are not
162.26considered to have been made within this state.
162.27    (f) Sales, rents, royalties, and other income in connection with real property is
162.28attributed to the state in which the property is located.
162.29    (g) Receipts from the lease or rental of tangible personal property, including finance
162.30leases and true leases, must be attributed to this state if the property is located in this
162.31state and to other states if the property is not located in this state. Receipts from the
162.32lease or rental of moving property including, but not limited to, motor vehicles, rolling
162.33stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts
162.34factor to the extent that the property is used in this state. The extent of the use of moving
162.35property is determined as follows:
162.36    (1) A motor vehicle is used wholly in the state in which it is registered.
163.1    (2) The extent that rolling stock is used in this state is determined by multiplying
163.2the receipts from the lease or rental of the rolling stock by a fraction, the numerator of
163.3which is the miles traveled within this state by the leased or rented rolling stock and the
163.4denominator of which is the total miles traveled by the leased or rented rolling stock.
163.5    (3) The extent that an aircraft is used in this state is determined by multiplying the
163.6receipts from the lease or rental of the aircraft by a fraction, the numerator of which is
163.7the number of landings of the aircraft in this state and the denominator of which is the
163.8total number of landings of the aircraft.
163.9    (4) The extent that a vessel, mobile equipment, or other mobile property is used in
163.10the state is determined by multiplying the receipts from the lease or rental of the property
163.11by a fraction, the numerator of which is the number of days during the taxable year the
163.12property was in this state and the denominator of which is the total days in the taxable year.
163.13    (h) Royalties and other income received for the use of or for the privilege of using
163.14intangible property, including patents, know-how, formulas, designs, processes, patterns,
163.15copyrights, trade names, service names, franchises, licenses, contracts, customer lists, or
163.16similar items, must be attributed to the state in which the property is used by the purchaser.
163.17If the property is used in more than one state, the royalties or other income must be
163.18apportioned to this state pro rata according to the portion of use in this state. If the portion
163.19of use in this state cannot be determined, the royalties or other income must be excluded
163.20from both the numerator and the denominator. Intangible property is used in this state if
163.21the purchaser uses the intangible property or the rights therein in the regular course of its
163.22business operations in this state, regardless of the location of the purchaser's customers.
163.23    (i) Sales of intangible property are made within the state in which the property is
163.24used by the purchaser. If the property is used in more than one state, the sales must be
163.25apportioned to this state pro rata according to the portion of use in this state. If the
163.26portion of use in this state cannot be determined, the sale must be excluded from both the
163.27numerator and the denominator of the sales factor. Intangible property is used in this
163.28state if the purchaser used the intangible property in the regular course of its business
163.29operations in this state.
163.30    (j) Receipts from the performance of services must be attributed to the state where
163.31the services are received. For the purposes of this section, receipts from the performance
163.32of services provided to a corporation, partnership, or trust may only be attributed to a state
163.33where it has a fixed place of doing business. If the state where the services are received is
163.34not readily determinable or is a state where the corporation, partnership, or trust receiving
163.35the service does not have a fixed place of doing business, the services shall be deemed
163.36to be received at the location of the office of the customer from which the services were
164.1ordered in the regular course of the customer's trade or business. If the ordering office
164.2cannot be determined, the services shall be deemed to be received at the office of the
164.3customer to which the services are billed.
164.4    (k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts
164.5from management, distribution, or administrative services performed by a corporation
164.6or trust for a fund of a corporation or trust regulated under United States Code, title 15,
164.7sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of
164.8the fund resides. Under this paragraph, receipts for services attributed to shareholders are
164.9determined on the basis of the ratio of: (1) the average of the outstanding shares in the
164.10fund owned by shareholders residing within Minnesota at the beginning and end of each
164.11year; and (2) the average of the total number of outstanding shares in the fund at the
164.12beginning and end of each year. Residence of the shareholder, in the case of an individual,
164.13is determined by the mailing address furnished by the shareholder to the fund. Residence
164.14of the shareholder, when the shares are held by an insurance company as a depositor for
164.15the insurance company policyholders, is the mailing address of the policyholders. In
164.16the case of an insurance company holding the shares as a depositor for the insurance
164.17company policyholders, if the mailing address of the policyholders cannot be determined
164.18by the taxpayer, the receipts must be excluded from both the numerator and denominator.
164.19Residence of other shareholders is the mailing address of the shareholder.
164.20EFFECTIVE DATE.This section is effective the day following final enactment.

164.21    Sec. 5. Minnesota Statutes 2012, section 296A.01, subdivision 16, is amended to read:
164.22    Subd. 16. Dyed fuel. "Dyed fuel" means diesel motor fuel to which indelible dye
164.23has been added, either before or upon withdrawal at a terminal or refinery rack, and which
164.24may be sold for exempt purposes. The dye may be either dye required to be added per the
164.25EPA or dye that meets other specifications required by the Internal Revenue Service or
164.26the commissioner.
164.27EFFECTIVE DATE.This section is effective the day following final enactment.

164.28    Sec. 6. Minnesota Statutes 2013 Supplement, section 403.162, subdivision 5, is
164.29amended to read:
164.30    Subd. 5. Fees deposited. (a) The commissioner of revenue shall, based on
164.31the relative proportion of the prepaid wireless E911 fee and the prepaid wireless
164.32telecommunications access Minnesota fee imposed per retail transaction, divide the fees
165.1collected in corresponding proportions. Within 30 days of receipt of the collected fees,
165.2the commissioner shall:
165.3(1) deposit the proportion of the collected fees attributable to the prepaid wireless
165.4E911 fee in the 911 emergency telecommunications service account in the special revenue
165.5fund; and
165.6(2) deposit the proportion of collected fees attributable to the prepaid wireless
165.7telecommunications access Minnesota fee in the telecommunications access fund
165.8established in section 237.52, subdivision 1.
165.9(b) The department commissioner of revenue may deduct and retain deposit in a
165.10special revenue account an amount, not to exceed two percent of collected fees,. Money
165.11in the account is annually appropriated to the commissioner of revenue to reimburse its
165.12direct costs of administering the collection and remittance of prepaid wireless E911 fees
165.13and prepaid wireless telecommunications access Minnesota fees.
165.14EFFECTIVE DATE.This section is effective retroactively from January 1, 2014.

165.15    Sec. 7. Laws 2013, chapter 143, article 8, section 3, the effective date, is amended to
165.16read:
165.17EFFECTIVE DATE.This section is effective for sales and purchases made after
165.18June 30, 2013, except for paragraph (p), which is effective the day following final
165.19enactment.
165.20EFFECTIVE DATE.This section is effective retroactively from the day following
165.21final enactment of Laws 2013, chapter 143, article 8, section 3.

165.22    Sec. 8. REPEALER.
165.23Minnesota Rules, parts 8130.8900, subpart 3; and 8130.9500, subparts 1, 1a, 2,
165.243, 4, and 5, are repealed.
165.25EFFECTIVE DATE.This section is effective the day following final enactment."
165.26Renumber the sections in sequence and correct the internal references
165.27Amend the title accordingly