1.1.................... moves to amend the first committee engrossment to H.F. No. 2020
1.2as follows:
1.3Page 8, line 3, after "excess of" insert "the greater of (i) $70,000, or (ii)"
1.4Page 8, line 4, after "of" insert "the greater of (i) $170,000, or (ii)"
1.5Page 8, line 23, delete "$207,000" and insert "$357,000"
1.6Page 8, line 26, after the period insert " The commissioner of finance shall annually
1.7use at least $150,000 of the $357,000 appropriation to contract with the representative
1.8associations for counties, cities, towns, and school districts to establish a local impact
1.9network of political subdivisions for preparing local impact notes that provide information
1.10to the legislature as provided in section 270C.991, subdivision 7."
1.11Page 13, delete lines 25 to 26 and insert:
1.12    "Subd. 4. Appropriation. (a) The amount necessary to fund obligations to counties
1.13under subdivision 2 is annually appropriated from the general fund to the commissioner of
1.14revenue.
1.15    (b) The amount necessary to fund obligations to cities under subdivision 2 is
1.16annually appropriated from the general fund to the commissioner of revenue.
1.17    (c) The sum of $6,000 in fiscal year 2010 and $2,000 in each fiscal year thereafter is
1.18annually appropriated from the general fund to the state auditor to carry out the auditor's
1.19responsibilities under sections 6.90 to 6.91."
1.20Page 15, after line 36, insert:
1.21    "(f) The sum of $21,000 in fiscal year 2010 and each fiscal year thereafter is
1.22appropriated from the general fund to the commissioner of education to carry out the
1.23additional responsibilities under this section."
1.24Page 19, delete section 7
1.25Page 19, after line 2, insert:
2.1    "Subd. 8. Appropriation. The sum of $30,000 in fiscal year 2010 and $25,000 in
2.2each fiscal year thereafter is appropriated from the general fund to the commissioner of
2.3revenue to carry out the commissioner's added responsibilities under subdivision 6."
2.4Page 25, after line 4, insert:
2.5    "Subd. 4. Appropriation. The sum of $11,000 in fiscal year 2010 and each fiscal
2.6year thereafter is transferred from the general fund to the administrative hearings fund
2.7and appropriated to the administrative law judge to fund the added responsibilities under
2.8this section."
2.9Page 66, delete section 22
2.10Page 67, after line 22, insert:

2.11    "Sec. 2. Minnesota Statutes 2008, section 273.1384, is amended by adding a
2.12subdivision to read:
2.13    Subd. 3a. Reimbursement reductions. (a) Each year, each county's reimbursement
2.14under this section shall be reduced by a uniform percentage so that the total reduction
2.15in reimbursements equals the sum of: (i) the amount appropriated under section 6.91,
2.16subdivision 4, paragraph (a); (ii) one-half of the total amount appropriated under section
2.176.91, subdivision 4, paragraph (c); (iii) one-half of the total amount appropriated under
2.18section 14.128, subdivision 4; and (iv) one-half of the total amount appropriated under
2.19section 270C.991, subdivision 8.
2.20    (b) Each year, each city's reimbursement under this section shall be reduced by a
2.21uniform percentage so that the total reduction in reimbursements equals the sum of: (i) the
2.22amount appropriated under section 6.91, subdivision 4, paragraph (b); (ii) one-half of the
2.23total amount appropriated under section 6.91, subdivision 4, paragraph (c); (iii) one-half
2.24of the total amount appropriated under section 14.128, subdivision 4; and (iv) one-half of
2.25the total amount appropriated under section 270C.991, subdivision 8.
2.26    (c) Each year, each school district's reimbursement under this section shall be
2.27reduced by a uniform percentage so that the total reduction in reimbursements equals the
2.28amount appropriated under section 134.34, subdivision 4.
2.29EFFECTIVE DATE.This section is effective for aids payable in 2009 and
2.30thereafter."
2.31Page 75, after line 3, insert:
2.32    "(z) In calendar year 2010 only, the city aid base for a city is increased by $225,000
2.33if it was eligible for a $450,000 payment in calendar year 2008 under Minnesota Statutes
2.342006, section 477A.011, subdivision 36, paragraph (e), and the second half of the payment
2.35under that paragraph in December 2008 was canceled due to the governor's unallotment.
3.1The payment under this paragraph is not subject to any aid reductions under section
3.2477A.0133 or any future unallotment of the city aid under section 16A.152"
3.3Page 76, line 15, after "this section" insert ", except for city aid base under section
3.4477A.011, subdivision 36, paragraph (z),"
3.5Page 77, delete section 10
3.6Page 77, line 14, delete "$526,148,487" and insert "$526,373,487"
3.7Page 77,line 16, delete "$516,500,000" and insert "$526,148,487"
3.8Page 88, after line 36, insert:

3.9    "Sec. 3. Minnesota Statutes 2008, section 290.01, subdivision 19a, as amended by
3.10Laws 2009, chapter 12, article 1, section 3, is amended to read:
3.11    Subd. 19a. Additions to federal taxable income. For individuals, estates, and
3.12trusts, there shall be added to federal taxable income:
3.13    (1)(i) interest income on obligations of any state other than Minnesota or a political
3.14or governmental subdivision, municipality, or governmental agency or instrumentality
3.15of any state other than Minnesota exempt from federal income taxes under the Internal
3.16Revenue Code or any other federal statute; and
3.17    (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
3.18Code, except the portion of the exempt-interest dividends derived from interest income
3.19on obligations of the state of Minnesota or its political or governmental subdivisions,
3.20municipalities, governmental agencies or instrumentalities, but only if the portion of the
3.21exempt-interest dividends from such Minnesota sources paid to all shareholders represents
3.2295 percent or more of the exempt-interest dividends that are paid by the regulated
3.23investment company as defined in section 851(a) of the Internal Revenue Code, or the
3.24fund of the regulated investment company as defined in section 851(g) of the Internal
3.25Revenue Code, making the payment; and
3.26    (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
3.27government described in section 7871(c) of the Internal Revenue Code shall be treated as
3.28interest income on obligations of the state in which the tribe is located;
3.29    (2) the amount of (i) income or sales and use taxes paid or accrued within the taxable
3.30year under this chapter and the amount of taxes based on net income paid or sales and use
3.31taxes paid to any other state or to any province or territory of Canada, and (ii) the amount
3.32of real and personal property taxes paid or accrued within the taxable year, to the extent
3.33allowed as a deduction under section 63(d) of the Internal Revenue Code, but the addition
3.34may not be more than the amount by which the itemized deductions as allowed under
3.35section 63(d) of the Internal Revenue Code exceeds the amount of the standard deduction
3.36as defined in section 63(c) of the Internal Revenue Code, disregarding the amount allowed
4.1under section 63(c)(1)(C) of the Internal Revenue Code. For the purpose of this paragraph,
4.2the disallowance of itemized deductions under section 68 of the Internal Revenue Code of
4.31986, income or sales and use tax is the last itemized deduction disallowed, real property
4.4tax is the second to last itemized deduction disallowed, and personal property tax is the
4.5third to last itemized deduction disallowed;
4.6    (3) the capital gain amount of a lump-sum distribution to which the special tax under
4.7section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;
4.8    (4) the amount of income taxes paid or accrued within the taxable year under this
4.9chapter and taxes based on net income paid to any other state or any province or territory
4.10of Canada, to the extent allowed as a deduction in determining federal adjusted gross
4.11income. For the purpose of this paragraph, income taxes do not include the taxes imposed
4.12by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729;
4.13    (5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10
4.14other than expenses or interest used in computing net interest income for the subtraction
4.15allowed under subdivision 19b, clause (1);
4.16    (6) the amount of a partner's pro rata share of net income which does not flow
4.17through to the partner because the partnership elected to pay the tax on the income under
4.18section 6242(a)(2) of the Internal Revenue Code;
4.19    (7) 80 percent of the depreciation deduction allowed under section 168(k) of the
4.20Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
4.21in the taxable year generates a deduction for depreciation under section 168(k) and the
4.22activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
4.23the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
4.24limited to excess of the depreciation claimed by the activity under section 168(k) over the
4.25amount of the loss from the activity that is not allowed in the taxable year. In succeeding
4.26taxable years when the losses not allowed in the taxable year are allowed, the depreciation
4.27under section 168(k) is allowed;
4.28    (8) 80 percent of the amount by which the deduction allowed by section 179 of the
4.29Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
4.30Revenue Code of 1986, as amended through December 31, 2003;
4.31    (9) to the extent deducted in computing federal taxable income, the amount of the
4.32deduction allowable under section 199 of the Internal Revenue Code;
4.33    (10) the exclusion allowed under section 139A of the Internal Revenue Code for
4.34federal subsidies for prescription drug plans;
4.35    (11) the amount of expenses disallowed under section 290.10, subdivision 2;
5.1    (12) the amount deducted for qualified tuition and related expenses under section
5.2222 of the Internal Revenue Code, to the extent deducted from gross income;
5.3    (13) the amount deducted for certain expenses of elementary and secondary school
5.4teachers under section 62(a)(2)(D) of the Internal Revenue Code, to the extent deducted
5.5from gross income; and
5.6    (14) the additional standard deduction for property taxes payable that is allowable
5.7under section 63(c)(1)(C) of the Internal Revenue Code.
5.8EFFECTIVE DATE.This section is effective for taxable years beginning after
5.9December 31, 2008."
5.10Renumber the sections in sequence and correct the internal references
5.11Amend the title accordingly