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Taxes

THIRTY-THIRD MEETING

2007-2008 Regular Session - Thursday, April 12, 2007

STATE OF MINNESOTA THIRTY-THIRD MEETING
HOUSE OF REPRESENTATIVES EIGHTY-FIFTH SESSION

TAX COMMITTEE

MINUTES


Representative Sandy Wollschlager, Vice-Chair of the Committee, called the meeting to order at 10:12 A.M. on Thursday, April 12, 2007, in Room 10 of the State Office Building.

The Committee Legislative Assistant noted the roll.

Members present:

LENCZEWSKI, Ann (Chair)
WOLLSCHLAGER, Sandy (Vice-Chair)
ATKINS, Joe
BROD, Laura
CARLSON, Lyndon
DAVNIE, Jim
DELAFOREST, Chris
DEMMER, Randy
DILL, David
ERHARDT, Ron
HILSTROM, Debra
JAROS, Mike
KOENEN, Lyle
KOHLS, Paul
LANNING, Morrie
LESCH, John
LIEBLING, Tina
MARQUART, Paul
MULLERY, Joe
PAULSEN, Erik
RUKAVINA, Tom
SIMPSON, Dean
SOLBERG, Loren
THAO, Cy
TILLBERRY, Tom
ZELLERS, Kurt

Members excused:


A quorum was not present.

HF2232 Smith Open space property tax law requirements modified.

Kathy Hahne (lobbyist for HPPS Ltd.) and Gene Purdy (Chief Executive Officer of HPPS Ltd, Brit's Pub) testified on HF2232.

A quorum was present.

Representative Simpson moved HF2232 be laid over for possible inclusion in the Omnibus Tax Bill.

Representative Simpson moved the H2232DE1 amendment to HF2232. THE MOTION PREVAILED - THE AMENDMENT WAS ADOPTED.

HF2232, as amended, was laid over for possible inclusion in the Omnibus Tax Bill.

HF0719 Dill Lake County, temporary suspension of tax-forfeited lands proceeds provided to reimburse county for purchase of Clair A. Nelson Memorial Forest land.

Representative Dill moved HF0719 be laid over for possible inclusion in the Omnibus Tax Bill.

Tom Martinson (Land Commissioner, Lake County) testified on HF0719.

HF0719 was laid over for possible inclusion in the Omnibus Tax Bill.

Representative Lenczewski assumed the gavel at 10:30 A.M.

HF1356 Anzelc Land utilization project land payments in lieu of taxation increased.

Representative Hilstrom moved HF1356 be laid over for possible inclusion in the Omnibus Tax Bill.

Representative Hilstrom moved the A07-0734 amendment to HF1356. THE MOTION PREVAILED - THE AMENDMENT WAS ADOPTED.

Todd Beckel (Lake of the Woods County Commissioner) testified on HF1356.

HF1356, as amended, was laid over for possible inclusion in the Omnibus Tax Bill.

HF1035 Solberg Itasca County, tax-forfeited land assurance fee exemptions provided for certain exchanged land.

Representative Solberg provided an informational hearing on HF1035.

HF1009 Hansen Sesquicentennial celebration income tax checkoff provided, and fund established.

Representative Hilstrom moved HF1009 be laid over for possible inclusion in the Omnibus Tax Bill.

HF1009 was laid over for possible inclusion in the Omnibus Tax Bill.

HF2132 Gottwalt Income tax checkoffs provided for education, health care, and state parks.

Representative Zellers moved HF2132 be laid over for possible inclusion in the Omnibus Tax Bill.

Representative Zellers moved the A07-0720 amendment to HF2132. THE MOTION PREVAILED - THE AMENDMENT WAS ADOPTED.

Representative Zellers moved the H2132A1 amendment to HF2132. THE MOTION PREVAILED - THE AMENDMENT WAS ADOPTED.

Linda Moser (Department of Revenue) provided information on HF2132.

HF2132, as amended, was laid over for possible inclusion in the Omnibus Tax Bill.

HF2106 Gottwalt College savings plan contributions income tax subtraction provided.

Representative Zellers moved HF2106 be laid over for possible inclusion in the Omnibus Tax Bill.

HF2106 was laid over for possible inclusion in the Omnibus Tax Bill.

HF0882 Hilstrom Metropolitan livable communities fund governing provisions modified, funds transfer authorized, and onetime transfer for local planning assistance grants and loans provided.

Representative Hilstrom moved HF0882, First Engrossment, be laid over for possible inclusion in the Omnibus Tax Bill.

Representative Hilstrom moved the H0882A2 amendment to HF0882, First Engrossment. THE MOTION PREVAILED - THE AMENDMENT WAS ADOPTED.

Judd Schetnan (Director of Government Affairs, Metropolitan Council) testified on HF0882, First Engrossment.

Representative Hilstrom amended her motion and moved that HF0882, First Engrossment, as amended, be recommended to pass and be placed on the General Register. THE MOTION PREVAILED - THE BILL PASSED AS AMENDED AND WAS PLACED ON THE GENERAL REGISTER.

HF1337 Davnie Minneapolis street and street lighting construction funding authorized.

Representative Davnie moved HF1337 be recommended to pass and placed on the General Register.

Jon Wertjes (Director of Traffic and Parking, City of Minneapolis) testified on HF1337.

Representative Davnie amended his motion and moved that HF1337 be laid over for possible inclusion in the Omnibus Tax Bill.

HF1337 was laid over for possible inclusion in the Omnibus Tax Bill.

HF1460 Murphy, M. Modular and manufactured home sourcing rules modified.

Representative Wollschlager moved HF1460 be laid over for possible inclusion in the Omnibus Tax Bill.

Mark Brunner (President, Minnesota Manufactured Housing Association) testified on HF1460.

HF1460 was laid over for possible inclusion in the Omnibus Tax Bill.

The committee recessed at 11:53 A.M.

The committee reconvened at 1:51 P.M.

Representative Hilstrom assumed the gavel.

HF2362 Lenczewski Sales and use tax study required.

Representative Lenczewski moved HF2362 be laid over for possible inclusion in the Omnibus Tax Bill.

HF2362 was laid over for possible inclusion in the Omnibus Tax Bill.

HF2360 Lenczewski Tax volatility reduction account established, and adjustments in the account made based on forecasts of state revenue gains and losses.

Representative Lenczewski moved HF2360 be laid over for possible inclusion in the Omnibus Tax Bill.

HF2360 was laid over for possible inclusion in the Omnibus Tax Bill.

HF2214 Juhnke Agricultural homestead property minimum acreage requirements decreased in certain cases.

Representative Lenczewski moved HF2214 be laid over for possible inclusion in the Omnibus Tax Bill.

Rob M. Vanasek (Minnesota Association of Assessing Officers) testified on HF2214.

HF2214 was laid over for possible inclusion in the Omnibus Tax Bill.

The committee recessed at 2:28 P.M.

The committee reconvened at 5:13 P.M.

Representative Lenczewski assumed the gavel.

HF0006 Greiling E-12 Finance Omnibus Bill.

Representative Hilstrom moved HF0006, First Engrossment, be recommended to pass and be re-referred to the Committee on Ways and Means.

Representative Mindy Greiling, Representative Carlos Mariani, Representative Mary Murphy and Representative Nora Slawik presented HF0006, First Engrossment.

Representative Hilstrom moved the H0006A95 amendment to HF0006, First Engrossment. THE MOTION PREVAILED - THE AMENDMENT WAS ADOPTED.

Katherine Schill (House Fiscal Analyst) provided information on HF0006, First Engrossment.

Representative Liebling moved the A07-0757X amendment to HF0006, First Engrossment. THE MOTION PREVAILED- THE AMENDMENT WAS ADOPTED.

Representative Demmer moved the H0006A93 amendment to HF0006, First Engrossment.

Tim Strom (House Fiscal Analyst) provided information on the H0006A93 amendment.

Representative Demmer requested a roll call vote on the H0006A93 amendment.

Representative Demmer withdrew his request for a roll call vote on the H0006A93 amendment.

Representative Demmer moved to amend the H0006A93 amendment as follows:
Page 1, line 5, remove the number "10", and replace with the number "9"

THE MOTION DID NOT PREVAIL - THE AMENDMENT, AS AMENDED, WAS NOT ADOPTED.

Representative Dill moved the A07-0741 amendment to HF0006, First Engrossment. THE MOTION PREVAILED - THE AMENDMENT WAS ADOPTED.

Representative Mullery moved the H0006A98 amendment to HF0006, First Engrossment.

Representative Mullery withdrew the H0006A98 amendment.

Representative DeLaForest moved the H0006A87 amendment to HF0006, First Engrossment. THE MOTION PREVAILED - THE AMENDMENT WAS ADOPTED.

Representative Demmer moved the H0006A90 amendment to HF0006, First Engrossment.

Representative Demmer withdrew the H0006A90 amendment.

Representative Paulsen moved to amend HF0006, the first engrossment, as follows:
Page 18, line 5, before the period insert "and may be voting for a property tax increase."

Representative Paulsen withdrew the oral amendment.

Representative Brod moved to amend HF0006, First Engrossment, as follows:
Page 17, delete section 27

Representative Brod withdrew the oral amendment.

Representative Davnie moved to amend HF0006, First Engrossment, as follows:
Page 18, line 5, after “existing", insert “property tax"
Page 18, line 5, delete “raising" and insert “changing"
Page 18, line 6, delete “tax rate"
THE MOTION PREVAILED - THE AMENDMENT WAS ADOPTED.

Representative Kohls moved to amend HF0006, First Engrossment, as follows:
Page 17, delete section 27

Representative Kohls requested a division vote on the oral amendment. ON A VOTE OF 11 AYES AND 13 NAYS, THE MOTION DID NOT PREVAIL - THE AMENDMENT WAS NOT ADOPTED.

Representative Zellers moved the H0006A91 amendment to HF0006, First Engrossment.

Representative Hilstrom requested a roll call vote on the H0006A91 amendment. The results were as follows:

AYE

NAY

LENCZEWSKI
ATKINS
BROD
CARLSON
DAVNIE
DELAFOREST
DEMMER
HILSTROM
JAROS
KOENEN
KOHLS
LANNING
LIEBLING
MARQUART
PAULSEN
SIMPSON
THAO
TILLBERRY
WOLLSCHLAGER
ZELLERS

ABSENT

DILL
ERHARDT
LESCH
RUKAVINA

ON A VOTE OF 0 AYES AND 22 NAYS, THE MOTION DID NOT PREVAIL - THE AMENDMENT WAS NOT ADOPTED.

Representative Liebling moved to amend HF0006, First Engrossment, as follows:
Page 18, line 1, strike “required"
Page 18, line 2, strike “modified to read" and insert “excluded"
Page 18, line 2, strike the colon and insert a period
Page 18, lines 3 to 6, strike the existing language and delete the new language

Representative Liebling withdrew the oral amendment.

Representative Davnie moved to amend HF0006, First Engrossment, as follows:
Page 18, line 35, strike “an increase" and insert “a change"
THE MOTION PREVAILED - THE AMENDMENT WAS ADOPTED.

The final vote was taken on HF0006, First Engrossment. THE MOTION PREVAILED - THE BILL WAS RECOMMENDED TO PASS AS AMENDED AND WAS RE-REFERRED TO THE COMMITTEE ON WAYS AND MEANS.

The committee recessed at 7:44 P.M.

The committee reconvened at 8:09 P.M.

SF1997 Betzold State Government Omnibus Appropriations Bill.

Representative Lenczewski moved SF1997, Unofficial Engrossment, be recommended to pass and be re-referred to the Committee on Ways and Means.

Representative Phyllis Kahn presented SF1997, Unofficial Engrossment.

Representative Solberg moved the S1997A2 amendment to SF1997, Unofficial Engrossment. THE MOTION PREVAILED - THE AMENDMENT WAS ADOPTED.

Representative Lenczewski moved the S1997A5 amendment to SF1997, Unofficial Engrossment. THE MOTION PREVAILED - THE AMENDMENT WAS ADOPTED.

Representative Simpson assumed the gavel.

Representative Lenczewski assumed the gavel.

Jack Mansun (Department of Revenue), Helen Roberts (House Fiscal Analyst), Bert Black (Legal Advisor, Secretary of State’s Office), Beth Fraser (Director of Governmental Affairs, Secretary of State’s Office) and Rebecca Spartz (Director of Administration, Attorney General’s Office) provided information on SF1997, Unofficial Engrossment.

Representative Liebling moved the S1997A4 amendment to SF1997, Unofficial Engrossment. THE MOTION PREVAILED - THE AMENDMENT WAS ADOPTED.

Representative Brod moved the S1997A3 amendment to SF1997, Unofficial Engrossment.

Representative Brod requested a roll call vote on the S1997A3 amendment. The results were as follows:

AYE

BROD
DELAFOREST
DEMMER
KOHLS
PAULSEN
ZELLERS

NAY

LENCZEWSKI
ATKINS
CARLSON
DAVNIE
DILL
HILSTROM
JAROS
KOENEN
LANNING
LIEBLING
MARQUART
MULLERY
RUKAVINA
SOLBERG
THAO
TILLBERRY
WOLLSCHLAGER

ABSENT

ERHARDT
LESCH
SIMPSON

ON A VOTE OF 6 AYES AND 17 NAYS, THE MOTION DID NOT PREVAIL - THE AMENDMENT WAS NOT ADOPTED.

Representative Kohls moved to amend SF1997, Unofficial Engrossment, as follows:
Page 38, delete section 43
Renumber the remaining sections in sequence and correct internal references
Amend the title accordingly

Representative Kohls requested a roll call vote on the oral amendment. The results were as follows:

AYE

BROD
DELAFOREST
DEMMER
KOHLS
LANNING
PAULSEN
WOLLSCHLAGER
ZELLERS

NAY

LENCZEWSKI
ATKINS
CARLSON
DAVNIE
DILL
HILSTROM
JAROS
KOENEN
LIEBLING
MARQUART
MULLERY
RUKAVINA
SOLBERG
THAO
TILLBERRY

ABSENT

ERHARDT
LESCH
SIMPSON

ON A VOTE OF 8 AYES AND 15 NAYS, THE MOTION DID NOT PREVAIL - THE AMENDMENT WAS NOT ADOPTED.

Representative Brod moved to amend SF1997, Unofficial Engrossment, as follows:
Line 79.24, delete “documents" and insert “data"
Line 79.29, delete “documents" and insert “data"
Line 79.31, delete “documents" and insert “data"
THE MOTION DID NOT PREVAIL - THE AMENDMENT WAS NOT ADOPTED.

Representative Kohls moved to amend SF1997, Unofficial Engrossment, as follows:
Page 85, line 13, after “1c;" insert “and"
Page 85, line 14, delete “and 645.44, subdivision 19,"

Phil Krinkie (President, Minnesota Taxpayers Association) testified on the amendment.

Representative Kohls requested a roll call vote on the oral amendment. The results were as follows:

AYE

LENCZEWSKI
BROD
DELAFOREST
KOHLS
PAULSEN
RUKAVINA
TILLBERRY
ZELLERS

NAY

ATKINS
CARLSON
DAVNIE
DEMMER
DILL
HILSTROM
JAROS
KOENEN
LANNING
LIEBLING
MARQUART
MULLERY
SOLBERG
THAO
WOLLSCHLAGER

ABSENT

ERHARDT
LESCH
SIMPSON

ON A VOTE OF 8 AYES AND 15 NAYS, THE MOTION DID NOT PREVAIL - THE AMENDMENT WAS NOT ADOPTED.

Zellers requested a roll call vote on SF1997, Unofficial Engrossment, as amended. The results were as follows:

AYE

LENCZEWSKI
ATKINS
CARLSON
DAVNIE
HILSTROM
JAROS
LIEBLING
MULLERY
RUKAVINA
SOLBERG
THAO
TILLBERRY

NAY

BROD
DELAFOREST
DEMMER
DILL
KOENEN
KOHLS
LANNING
MARQUART
PAULSEN
WOLLSCHLAGER
ZELLERS

ABSENT

ERHARDT
LESCH
SIMPSON

ON A VOTE OF 12 AYES AND 11 NAYS, THE MOTION PREVAILED - THE BILL PASSED AS AMENDED AND WAS RE-REFERRED TO THE COMMITTEE ON WAYS AND MEANS.

The committee adjourned at 10:25 P.M.



Representative Ann Lenczewski, Chair


Jamie Becker-Finn, Committee Legislative Assistant
More Info On This Meeting..

** Bill order is subject to change.

HF2417 (Lenczewski) Job opportunity building zone property tax exemption modified to exclude school operating referenda levies, and tax incentives limited for certain relocation businesses. ** added to today's schedule. Did not get to this bill on yesterday's agenda - April 11th **
HF719 (Dill) Lake County; temporary suspension of tax-forfeited lands proceeds provided to reimburse county for purchase of Clair A. Nelson Memorial Forest land.
HF1035 (Solberg) Itasca County; tax-forfeited land assurance fee exemptions provided for certain exchanged land.
HF2362 (Lenczewski) Sales and use tax study required
HF2360 (Lenczewski) Tax volatility reduction account established, and adjustments in the account made based on forecasts of state revenue gains and losses
HF1356 (Anzelc) Land utilization project land payments in lieu of taxation increased.
HF2214 (Juhnke) Agricultural homestead property minimum acreage requirements decreased in certain cases.
HF2232 (Smith) Open space property tax law requirements modified.
HF1337 (Davnie) Minneapolis street and street lighting construction funding authorized.
HF1460 (M. Murphy) Modular and manufactured home sourcing rules modified.
HF1009 (Hansen) Sesquicentennial celebration income tax checkoff provided, and fund established.
HF2132 (Gottwalt) Income tax checkoffs provided for education, health care, and state parks.
HF2106 (Gottwalt) College savings plan contributions income tax subtraction provided. ** rescheduled from April 13th **
HF882 (Hilstrom) Metropolitan livable communities fund governing provisions modified, funds transfer authorized, and onetime transfer for local planning assistance grants and loans provided.

THE COMMITTEE WILL RECONVENE AT 5PM TO TAKE UP OMNIBUS BILLS
HF6 (Greiling) E-12 Finance Omnibus Bill (pending Finance approval) ** bill added **
SF1997 (Betzold) State Government Omnibus Appropriations Bill (pending Finance approval) ** bill added **

HF280 (Dill) has been removed