1.1Senator .................... moves to amend S.F. No. 27 as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. Minnesota Statutes 2010, section 270B.12, is amended by adding a
1.6subdivision to read:
1.7    Subd. 14. Wisconsin secretary of revenue; income tax reciprocity benchmark
1.8study. The commissioner may disclose return information to the secretary of revenue
1.9of the state of Wisconsin for the purpose of conducting a joint individual income tax
1.10reciprocity study.
1.11EFFECTIVE DATE.This section is effective the day following final enactment.

1.12    Sec. 2. Minnesota Statutes 2010, section 290.01, subdivision 19b, is amended to read:
1.13    Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
1.14and trusts, there shall be subtracted from federal taxable income:
1.15    (1) net interest income on obligations of any authority, commission, or
1.16instrumentality of the United States to the extent includable in taxable income for federal
1.17income tax purposes but exempt from state income tax under the laws of the United States;
1.18    (2) if included in federal taxable income, the amount of any overpayment of income
1.19tax to Minnesota or to any other state, for any previous taxable year, whether the amount
1.20is received as a refund or as a credit to another taxable year's income tax liability;
1.21    (3) the amount paid to others, less the amount used to claim the credit allowed under
1.22section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
1.23to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
1.24transportation of each qualifying child in attending an elementary or secondary school
1.25situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
1.26resident of this state may legally fulfill the state's compulsory attendance laws, which
1.27is not operated for profit, and which adheres to the provisions of the Civil Rights Act
1.28of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
1.29tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
1.30"textbooks" includes books and other instructional materials and equipment purchased
1.31or leased for use in elementary and secondary schools in teaching only those subjects
1.32legally and commonly taught in public elementary and secondary schools in this state.
1.33Equipment expenses qualifying for deduction includes expenses as defined and limited in
1.34section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
2.1books and materials used in the teaching of religious tenets, doctrines, or worship, the
2.2purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
2.3or materials for, or transportation to, extracurricular activities including sporting events,
2.4musical or dramatic events, speech activities, driver's education, or similar programs. No
2.5deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
2.6the qualifying child's vehicle to provide such transportation for a qualifying child. For
2.7purposes of the subtraction provided by this clause, "qualifying child" has the meaning
2.8given in section 32(c)(3) of the Internal Revenue Code;
2.9    (4) income as provided under section 290.0802;
2.10    (5) to the extent included in federal adjusted gross income, income realized on
2.11disposition of property exempt from tax under section 290.491;
2.12    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
2.13of the Internal Revenue Code in determining federal taxable income by an individual
2.14who does not itemize deductions for federal income tax purposes for the taxable year, an
2.15amount equal to 50 percent of the excess of charitable contributions over $500 allowable
2.16as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
2.17under the provisions of Public Law 109-1 and Public Law 111-126;
2.18    (7) for individuals who are allowed a federal foreign tax credit for taxes that do not
2.19qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
2.20of subnational foreign taxes for the taxable year, but not to exceed the total subnational
2.21foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
2.22"federal foreign tax credit" means the credit allowed under section 27 of the Internal
2.23Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
2.24under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
2.25the extent they exceed the federal foreign tax credit;
2.26    (8) in each of the five tax years immediately following the tax year in which an
2.27addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case
2.28of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
2.29of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
2.30the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or
2.31subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the
2.32positive value of any net operating loss under section 172 of the Internal Revenue Code
2.33generated for the tax year of the addition. The resulting delayed depreciation cannot be
2.34less than zero;
2.35    (9) job opportunity building zone income as provided under section 469.316;
3.1    (10) to the extent included in federal taxable income, the amount of compensation
3.2paid to members of the Minnesota National Guard or other reserve components of the
3.3United States military for active service performed in Minnesota, excluding compensation
3.4for services performed under the Active Guard Reserve (AGR) program. For purposes of
3.5this clause, "active service" means (i) state active service as defined in section 190.05,
3.6subdivision 5a , clause (1); (ii) federally funded state active service as defined in section
3.7190.05, subdivision 5b ; or (iii) federal active service as defined in section 190.05,
3.8subdivision 5c , but "active service" excludes service performed in accordance with section
3.9190.08, subdivision 3 ;
3.10    (11) to the extent included in federal taxable income, the amount of compensation
3.11paid to Minnesota residents who are members of the armed forces of the United States or
3.12United Nations for active duty performed outside Minnesota under United States Code,
3.13title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of
3.14the United Nations;
3.15    (12) an amount, not to exceed $10,000, equal to qualified expenses related to a
3.16qualified donor's donation, while living, of one or more of the qualified donor's organs
3.17to another person for human organ transplantation. For purposes of this clause, "organ"
3.18means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
3.19"human organ transplantation" means the medical procedure by which transfer of a human
3.20organ is made from the body of one person to the body of another person; "qualified
3.21expenses" means unreimbursed expenses for both the individual and the qualified donor
3.22for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
3.23may be subtracted under this clause only once; and "qualified donor" means the individual
3.24or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
3.25individual may claim the subtraction in this clause for each instance of organ donation for
3.26transplantation during the taxable year in which the qualified expenses occur;
3.27    (13) in each of the five tax years immediately following the tax year in which an
3.28addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a
3.29shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
3.30addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the
3.31case of a shareholder of a corporation that is an S corporation, minus the positive value of
3.32any net operating loss under section 172 of the Internal Revenue Code generated for the
3.33tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
3.34subtraction is not allowed under this clause;
4.1    (14) to the extent included in federal taxable income, compensation paid to a service
4.2member as defined in United States Code, title 10, section 101(a)(5), for military service
4.3as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2);
4.4    (15) international economic development zone income as provided under section
4.5469.325 ;
4.6    (16) to the extent included in federal taxable income, the amount of national service
4.7educational awards received from the National Service Trust under United States Code,
4.8title 42, sections 12601 to 12604, for service in an approved Americorps National Service
4.9program; and
4.10(17) to the extent included in federal taxable income, discharge of indebtedness
4.11income resulting from reacquisition of business indebtedness included in federal taxable
4.12income under section 108(i) of the Internal Revenue Code. This subtraction applies only
4.13to the extent that the income was included in net income in a prior year as a result of the
4.14addition under section 290.01, subdivision 19a, clause (16).; and
4.15(18) to the extent included in federal taxable income, a percentage of compensation
4.16received from a pension or other retirement pay from the federal government for service in
4.17the military, as computed under United States Code, title 10, sections 1401 to 1414, 1447
4.18to 1455, and 12733, as follows:
4.19(i) for taxable years beginning after December 31, 2010, and before January 1,
4.202012, the percentage is 20 percent;
4.21(ii) for taxable years beginning after December 31, 2011, and before January 1,
4.222013, the percentage is 35 percent; and
4.23(iii) for taxable years beginning after December 31, 2012, the percentage is 55
4.24percent.
4.25EFFECTIVE DATE.This section is effective for taxable years beginning after
4.26December 31, 2010.

4.27    Sec. 3. Minnesota Statutes 2010, section 290.0674, subdivision 1, is amended to read:
4.28    Subdivision 1. Credit allowed. An individual is allowed a credit against the
4.29tax imposed by this chapter in an amount equal to 75 percent of the amount paid for
4.30education-related expenses for a qualifying child in kindergarten through grade 12. For
4.31purposes of this section, "education-related expenses" means:
4.32(1) fees or tuition for instruction by an instructor under section 120A.22, subdivision
4.3310 , clause (1), (2), (3), (4), or (5), or a member of the Minnesota Music Teachers
4.34Association, and who is not a lineal ancestor or sibling of the dependent for instruction
4.35outside the regular school day or school year, including tutoring, driver's education
5.1offered as part of school curriculum, regardless of whether it is taken from a public or
5.2private entity or summer camps, in grade or age appropriate curricula that supplement
5.3curricula and instruction available during the regular school year, that assists a dependent
5.4to improve knowledge of core curriculum areas or to expand knowledge and skills under
5.5the required academic standards under section 120B.021, subdivision 1, and the elective
5.6standard under section 120B.022, subdivision 1, clause (2), and that do not include the
5.7teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such
5.8tenets, doctrines, or worship;
5.9(2) expenses for textbooks, including books and other instructional materials and
5.10equipment purchased or leased for use in elementary and secondary schools in teaching
5.11only those subjects legally and commonly taught in public elementary and secondary
5.12schools in this state. "Textbooks" does not include instructional books and materials
5.13used in the teaching of religious tenets, doctrines, or worship, the purpose of which is
5.14to instill such tenets, doctrines, or worship, nor does it include books or materials for
5.15extracurricular activities including sporting events, musical or dramatic events, speech
5.16activities, driver's education, or similar programs;
5.17(3) a maximum expense of $200 per family for personal computer hardware,
5.18excluding single purpose processors, and educational software that assists a dependent to
5.19improve knowledge of core curriculum areas or to expand knowledge and skills under
5.20the required academic standards under section 120B.021, subdivision 1, and the elective
5.21standard under section 120B.022, subdivision 1, clause (2), purchased for use in the
5.22taxpayer's home and not used in a trade or business regardless of whether the computer is
5.23required by the dependent's school; and
5.24(4) the amount paid to others for tuition and transportation of a qualifying child
5.25attending an elementary or secondary school situated in Minnesota, North Dakota, South
5.26Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's
5.27compulsory attendance laws, which is not operated for profit, and which adheres to the
5.28provisions of the Civil Rights Act of 1964 and chapter 363A.
5.29For purposes of this section, "qualifying child" has the meaning given in section
5.3032(c)(3) of the Internal Revenue Code.
5.31EFFECTIVE DATE.This section is effective for taxable years beginning after
5.32December 31, 2010.

5.33    Sec. 4. Minnesota Statutes 2010, section 290.081, is amended to read:
5.34290.081 INCOME OF NONRESIDENTS, RECIPROCITY.
6.1    Subdivision 1. Reciprocity with other states. (a) The compensation received for
6.2the performance of personal or professional services within this state by an individual
6.3whose residence, place of abode, and place customarily returned to at least once a month
6.4is in another state, shall be excluded from gross income to the extent such compensation is
6.5subject to an income tax imposed by the state of residence; provided that such state allows
6.6a similar exclusion of compensation received by residents of Minnesota for services
6.7performed therein.
6.8(b) When it is deemed to be in the best interests of the people of this state, the
6.9commissioner may determine that the provisions of paragraph (a) shall not apply. As long
6.10as the provisions of paragraph (a) apply between Minnesota and Wisconsin, the provisions
6.11of paragraph (a) shall apply to any individual who is domiciled in Wisconsin.
6.12(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota
6.13residents which would have been paid Wisconsin without paragraph (a) exceeds the
6.14Minnesota tax on Wisconsin residents which would have been paid Minnesota without
6.15paragraph (a), or vice versa, then the state with the net revenue loss resulting from
6.16paragraph (a) must be compensated by the other state as provided in the agreement under
6.17paragraph (d). This provision shall be effective for all years beginning after December 31,
6.181972. The data used for computing the loss to either state shall be determined on or before
6.19September 30 of the year following the close of the previous calendar year.
6.20(d) Interest is payable on all amounts calculated under paragraph (c) relating to
6.21taxable years beginning after December 31, 2000 and before January 1, 2010. Interest
6.22accrues from July 1 of the taxable year.
6.23(e) The commissioner of revenue is authorized to enter into agreements reciprocity
6.24agreement with the state of Wisconsin specifying must specify the compensation required
6.25under paragraph (b), the one or more reciprocity payment due date, dates for the revenue
6.26loss relating to each taxable year, with one or more estimated payment due dates in the
6.27same fiscal year in which the revenue loss occurred, and a final payment in the following
6.28fiscal year, conditions constituting delinquency, interest rates, and a method for computing
6.29interest due. Interest is payable from July 1 of the taxable year on final payments made in
6.30the following fiscal year. Calculation of compensation under the agreement must specify
6.31if the revenue loss is determined before or after the allowance of each state's credit for
6.32taxes paid to the other state.
6.33(e) (f) If an agreement cannot be reached as to the amount of the loss, the
6.34commissioner of revenue and the taxing official of the state of Wisconsin shall each
6.35appoint a member of a board of arbitration and these members shall appoint the third
6.36member of the board. The board shall select one of its members as chair. Such board may
7.1administer oaths, take testimony, subpoena witnesses, and require their attendance, require
7.2the production of books, papers and documents, and hold hearings at such places as are
7.3deemed necessary. The board shall then make a determination as to the amount to be paid
7.4the other state which determination shall be final and conclusive.
7.5(f) (g) The commissioner may furnish copies of returns, reports, or other information
7.6to the taxing official of the state of Wisconsin, a member of the board of arbitration, or a
7.7consultant under joint contract with the states of Minnesota and Wisconsin for the purpose
7.8of making a determination as to the amount to be paid the other state under the provisions
7.9of this section. Prior to the release of any information under the provisions of this section,
7.10the person to whom the information is to be released shall sign an agreement which
7.11provides that the person will protect the confidentiality of the returns and information
7.12revealed thereby to the extent that it is protected under the laws of the state of Minnesota.
7.13(h) Any reciprocity agreement entered into under this section continues in effect
7.14until terminated by Minnesota or Wisconsin law. The commissioner may agree to modify
7.15the timing or method of calculating the state payments to be made under the agreement,
7.16consistent with the requirements of paragraphs (c) and (e), but may not terminate the
7.17agreement.
7.18    Subd. 2. New reciprocity agreement with Wisconsin. The commissioner of
7.19revenue is directed to initiate negotiations with the secretary of revenue of Wisconsin,
7.20with the objective of entering into an income tax reciprocity agreement effective for tax
7.21years beginning after December 31, 2011. The agreement must satisfy the conditions of
7.22subdivision 1, with one or more estimated payment due dates and a final payment due
7.23date specified so that the state with a net revenue loss as a result of the agreement receives
7.24estimated payments from the other state, in the same fiscal year as that in which the net
7.25revenue loss occurred and a final payment with interest in the following fiscal year.
7.26EFFECTIVE DATE.Subdivision 2 is effective the day following final enactment.
7.27The changes to subdivision 1 are effective for taxable years beginning after December 31
7.28of the year of the agreement, contingent upon agreement from the state of Wisconsin to a
7.29reciprocity arrangement in which estimated payments are made in the same fiscal year in
7.30which a change in revenue occurs, and a final payment is made in the following fiscal year.

7.31    Sec. 5. Minnesota Statutes 2010, section 290.091, subdivision 2, is amended to read:
7.32    Subd. 2. Definitions. For purposes of the tax imposed by this section, the following
7.33terms have the meanings given:
7.34    (a) "Alternative minimum taxable income" means the sum of the following for
7.35the taxable year:
8.1    (1) the taxpayer's federal alternative minimum taxable income as defined in section
8.255(b)(2) of the Internal Revenue Code;
8.3    (2) the taxpayer's itemized deductions allowed in computing federal alternative
8.4minimum taxable income, but excluding:
8.5    (i) the charitable contribution deduction under section 170 of the Internal Revenue
8.6Code;
8.7    (ii) the medical expense deduction;
8.8    (iii) the casualty, theft, and disaster loss deduction; and
8.9    (iv) the impairment-related work expenses of a disabled person;
8.10    (3) for depletion allowances computed under section 613A(c) of the Internal
8.11Revenue Code, with respect to each property (as defined in section 614 of the Internal
8.12Revenue Code), to the extent not included in federal alternative minimum taxable income,
8.13the excess of the deduction for depletion allowable under section 611 of the Internal
8.14Revenue Code for the taxable year over the adjusted basis of the property at the end of the
8.15taxable year (determined without regard to the depletion deduction for the taxable year);
8.16    (4) to the extent not included in federal alternative minimum taxable income, the
8.17amount of the tax preference for intangible drilling cost under section 57(a)(2) of the
8.18Internal Revenue Code determined without regard to subparagraph (E);
8.19    (5) to the extent not included in federal alternative minimum taxable income, the
8.20amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and
8.21    (6) the amount of addition required by section 290.01, subdivision 19a, clauses (7)
8.22to (9), (12), (13), (16), and (17);
8.23    less the sum of the amounts determined under the following:
8.24    (1) interest income as defined in section 290.01, subdivision 19b, clause (1);
8.25    (2) an overpayment of state income tax as provided by section 290.01, subdivision
8.2619b , clause (2), to the extent included in federal alternative minimum taxable income;
8.27    (3) the amount of investment interest paid or accrued within the taxable year on
8.28indebtedness to the extent that the amount does not exceed net investment income, as
8.29defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include
8.30amounts deducted in computing federal adjusted gross income; and
8.31    (4) amounts subtracted from federal taxable income as provided by section 290.01,
8.32subdivision 19b , clauses (6), (8) to (15), and (17), and (18).
8.33    In the case of an estate or trust, alternative minimum taxable income must be
8.34computed as provided in section 59(c) of the Internal Revenue Code.
8.35    (b) "Investment interest" means investment interest as defined in section 163(d)(3)
8.36of the Internal Revenue Code.
9.1    (c) "Net minimum tax" means the minimum tax imposed by this section.
9.2    (d) "Regular tax" means the tax that would be imposed under this chapter (without
9.3regard to this section and section 290.032), reduced by the sum of the nonrefundable
9.4credits allowed under this chapter.
9.5    (e) "Tentative minimum tax" equals 6.4 percent of alternative minimum taxable
9.6income after subtracting the exemption amount determined under subdivision 3.
9.7EFFECTIVE DATE.This section is effective for taxable years beginning after
9.8December 31, 2010.

9.9    Sec. 6. [290.433] BUDGET RESERVE FUND CHECKOFF.
9.10    (a) An individual who files an income tax return or property tax refund claim form
9.11may designate on the original return that $1 or more shall be added to the tax or deducted
9.12from the refund that would otherwise be payable by or to that individual and paid into the
9.13general fund.
9.14    (b) All amounts designated by individuals under paragraph (a) must be deposited in
9.15the state treasury and credited to the budget reserve established under section 16A.152,
9.16subdivision 1a.
9.17EFFECTIVE DATE.This section is effective for taxable years beginning after
9.18December 31, 2010.

9.19    Sec. 7. Minnesota Statutes 2010, section 291.005, subdivision 1, is amended to read:
9.20    Subdivision 1. Scope. Unless the context otherwise clearly requires, the following
9.21terms used in this chapter shall have the following meanings:
9.22    (1) "Commissioner" means the commissioner of revenue or any person to whom the
9.23commissioner has delegated functions under this chapter.
9.24    (2) "Federal gross estate" means the gross estate of a decedent as required to be
9.25valued and otherwise determined for federal estate tax purposes under the Internal
9.26Revenue Code.
9.27    (3) "Internal Revenue Code" means the United States Internal Revenue Code of
9.281986, as amended through March 18, 2010, but without regard to the provisions of
9.29sections 501 and 901 of Public Law 107-16.
9.30    (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
9.31defined by section 2011(b)(3) of the Internal Revenue Code, increased by plus
9.32(i) the amount of deduction for state death taxes allowed under section 2058 of
9.33the Internal Revenue Code.; less
10.1(ii) (A) the value of qualified small business property under section 291.03,
10.2subdivision 9, and the value of qualified farm property under section 291.03, subdivision
10.310, or (B) $4,000,000, whichever is less.
10.4    (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
10.5excluding therefrom any property included therein which has its situs outside Minnesota,
10.6and (b) including therein any property omitted from the federal gross estate which is
10.7includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
10.8authorities.
10.9    (6) "Nonresident decedent" means an individual whose domicile at the time of
10.10death was not in Minnesota.
10.11    (7) "Personal representative" means the executor, administrator or other person
10.12appointed by the court to administer and dispose of the property of the decedent. If there
10.13is no executor, administrator or other person appointed, qualified, and acting within this
10.14state, then any person in actual or constructive possession of any property having a situs in
10.15this state which is included in the federal gross estate of the decedent shall be deemed
10.16to be a personal representative to the extent of the property and the Minnesota estate tax
10.17due with respect to the property.
10.18    (8) "Resident decedent" means an individual whose domicile at the time of death
10.19was in Minnesota.
10.20    (9) "Situs of property" means, with respect to real property, the state or country in
10.21which it is located; with respect to tangible personal property, the state or country in which
10.22it was normally kept or located at the time of the decedent's death; and with respect to
10.23intangible personal property, the state or country in which the decedent was domiciled
10.24at death.
10.25EFFECTIVE DATE.This section is effective for decedents dying after December
10.2631, 2010.

10.27    Sec. 8. Minnesota Statutes 2010, section 291.03, subdivision 1, is amended to read:
10.28    Subdivision 1. Tax amount. (a) The tax imposed shall be an amount equal to the
10.29proportion of the maximum credit for state death taxes computed under section 2011
10.30of the Internal Revenue Code, but using Minnesota adjusted taxable estate instead of
10.31federal adjusted taxable estate, as the Minnesota gross estate bears to the value of the
10.32federal gross estate.
10.33    (b) The tax determined under this subdivision must not be greater than the sum of
10.34the following amounts multiplied by a fraction, the numerator of which is the Minnesota
10.35gross estate and the denominator of which is the federal gross estate:
11.1    (1) the rates and brackets under section 2001(c) of the Internal Revenue Code
11.2multiplied by the sum of:
11.3    (i) the taxable estate, as defined under section 2051 of the Internal Revenue Code;
11.4plus
11.5    (ii) adjusted taxable gifts, as defined in section 2001(b) of the Internal Revenue
11.6Code; less
11.7(iii) the lesser of (A) the sum of the value of qualified small business property
11.8under subdivision 9, and the value of qualified farm property under subdivision 10,
11.9or (B) $4,000,000; less
11.10    (2) the amount of tax allowed under section 2001(b)(2) of the Internal Revenue
11.11Code; and less
11.12    (3) the federal credit allowed under section 2010 of the Internal Revenue Code.
11.13    (c) For purposes of this subdivision, "Internal Revenue Code" means the Internal
11.14Revenue Code of 1986, as amended through December 31, 2000.
11.15EFFECTIVE DATE.This section is effective for decedents dying after December
11.1631, 2010.

11.17    Sec. 9. Minnesota Statutes 2010, section 291.03, is amended by adding a subdivision
11.18to read:
11.19    Subd. 8. Definitions. (a) For purposes of this section, the following terms have the
11.20meanings given in this subdivision.
11.21(b) "Family member" means a family member as defined in section 2032A(e)(2) of
11.22the Internal Revenue Code.
11.23(c) "Qualified heir" means a family member who acquired qualified property from
11.24the decedent and satisfies the requirement under subdivision 9, clause (6), or subdivision
11.2510, clause (4), for the property.
11.26(d) "Qualified property" means qualified small businesss property under subdivision
11.279 and qualified farm property under subdivision 10.
11.28EFFECTIVE DATE.This section is effective for decedents dying after December
11.2931, 2010.

11.30    Sec. 10. Minnesota Statutes 2010, section 291.03, is amended by adding a subdivision
11.31to read:
11.32    Subd. 9. Qualified small business property. Property satisfying all of the following
11.33requirements is qualified small business property:
12.1(1) The value of the property was included in the federal adjusted taxable estate.
12.2(2) The property consists of the assets of a trade or business or shares of stock or
12.3other ownership interests in a corporation or other entity engaged in a trade or business.
12.4The decedent or the decedent's spouse must have materially participated in the trade or
12.5business within the meaning of section 469 of the Internal Revenue Code during the
12.6taxable year that ended before the date of the decedent's death. Shares of stock in a
12.7corporation or an ownership interest in another type of entity do not qualify under this
12.8subdivision if the shares or ownership interests are traded on a public stock exchange at
12.9any time during the three-year period ending on the decedent's date of death.
12.10(3) The gross annual sales of the trade or business were $10,000,000 or less for the
12.11last taxable year that ended before the date of the death of the decedent.
12.12(4) The property does not consist of cash or cash equivalents. For property consisting
12.13of shares of stock or other ownership interests in an entity, the amount of cash or cash
12.14equivalents held by the corporation or other entity must be deducted from the value of
12.15the property qualifying under this subdivision in proportion to the decedent's share of
12.16ownership of the entity on the date of death.
12.17(5) The decedent continuously owned the property for the three-year period ending
12.18on the date of death of the decedent.
12.19(6) A family member continuously uses the property in the operation of the trade or
12.20business for three years following the date of death of the decedent.
12.21(7) The estate and the qualified heir elect to treat the property as qualified small
12.22business property and agree, in the form prescribed by the commissioner, to pay the
12.23recapture tax under subdivision 11, if applicable.
12.24EFFECTIVE DATE.This section is effective for decedents dying after December
12.2531, 2010.

12.26    Sec. 11. Minnesota Statutes 2010, section 291.03, is amended by adding a subdivision
12.27to read:
12.28    Subd. 10. Qualified farm property. Property satisfying all of the following
12.29requirements is qualified farm property:
12.30(1) The value of the property was included in the federal adjusted taxable estate.
12.31(2) The property consists of a farm meeting the requirements of section 500.24,
12.32and was classified for property tax purposes as the homestead of the decedent or the
12.33decedent's spouse or both under section 273.124, and as class 2a property under section
12.34273.13, subdivision 23.
13.1(3) The decedent continuously owned the property for the three-year period ending
13.2on the date of death of the decedent.
13.3(4) A family member continuously uses the property in the operation of the trade or
13.4business for three years following the date of death of the decedent.
13.5(5) The estate and the qualified heir elect to treat the property as qualified farm
13.6property and agree, in a form prescribed by the commissioner, to pay the recapture tax
13.7under subdivision 11, if applicable.
13.8EFFECTIVE DATE.This section is effective for decedents dying after December
13.931, 2010.

13.10    Sec. 12. Minnesota Statutes 2010, section 291.03, is amended by adding a subdivision
13.11to read:
13.12    Subd. 11. Recapture tax. (a) If, within three years after the decedent's death and
13.13before the death of the qualified heir, the qualified heir disposes of any interest in qualified
13.14property, other than by a disposition to a family member, or a family member ceases to
13.15use the qualified property which was acquired or passed from the decedent, an additional
13.16estate tax is imposed on the property.
13.17(b) The amount of the additional tax equals the amount of the exclusion claimed by
13.18the estate under subdivision 8, paragraph (d), multiplied by 16 percent.
13.19(c) The additional tax under this subdivision is due on the day which is six months
13.20after the date of the disposition or cessation in paragraph (a).
13.21EFFECTIVE DATE.This section is effective for decedents dying after December
13.2231, 2010.

13.23    Sec. 13. INCOME TAX RECIPROCITY BENCHMARK STUDY.
13.24(a) The Department of Revenue, in conjunction with the Wisconsin Department of
13.25Revenue, must conduct a study to determine at least the following:
13.26(1) the number of residents of each state who earn income from personal services in
13.27the other state;
13.28(2) the total amount of income earned by residents of each state who earn income
13.29from personal services in the other state; and
13.30(3) the change in tax revenue in each state if an income tax reciprocity arrangement
13.31were resumed between the two states under which the taxpayers were required to pay
13.32income taxes on the income only in their state of residence.
14.1(b) The study must be conducted as soon as practicable, using information obtained
14.2from each state's income tax returns for tax year 2011, and from any other source of
14.3information the departments determine is necessary to complete the study.
14.4(c) No later than March 1, 2013, the Department of Revenue must submit a report
14.5containing the results of the study to the governor and to the chairs and ranking minority
14.6members of the legislative committees having jurisdiction over taxes.

14.7    Sec. 14. APPROPRIATIONS.
14.8    Subdivision 1. Income tax reciprocity benchmark study. The sum of $409,000 in
14.9fiscal year 2012 and $429,000 in fiscal year 2013 is appropriated from the general fund
14.10to the commissioner of revenue for the income reciprocity benchmark study required
14.11under section 12. The appropriation under this section is onetime and is not added to
14.12the agency's base budget.
14.13    Subd. 2. Tax checkoff for state budget reserve. $104,000 in fiscal year 2012 and
14.14$37,000 in fiscal year 2013 are appropriated from the general fund to the commissioner of
14.15revenue to implement the tax checkoff in section 6.


14.18    Section 1. Minnesota Statutes 2010, section 297A.67, subdivision 7, is amended to
14.19read:
14.20    Subd. 7. Drugs; medical devices. (a) Sales of the following drugs and medical
14.21devices for human use are exempt:
14.22    (1) drugs, including over-the-counter drugs;
14.23    (2) single-use finger-pricking devices for the extraction of blood and other single-use
14.24devices and single-use diagnostic agents used in diagnosing, monitoring, or treating
14.25diabetes;
14.26    (3) insulin and medical oxygen for human use, regardless of whether prescribed
14.27or sold over the counter;
14.28    (4) prosthetic devices;
14.29    (5) durable medical equipment for home use only;
14.30    (6) mobility enhancing equipment;
14.31    (7) prescription corrective eyeglasses; and
14.32    (8) kidney dialysis equipment, including repair and replacement parts.
14.33(b) Items purchased in transactions covered by:
15.1(1) Medicare as defined under title XVIII of the Social Security Act, United States
15.2Code, title 42, sections 1395, et seq.; or
15.3(2) Medicaid as defined under title XIX of the Social Security Act, United States
15.4Code, title 42, sections 1396, et seq.
15.5    (b) (c) For purposes of this subdivision:
15.6    (1) "Drug" means a compound, substance, or preparation, and any component of
15.7a compound, substance, or preparation, other than food and food ingredients, dietary
15.8supplements, or alcoholic beverages that is:
15.9    (i) recognized in the official United States Pharmacopoeia, official Homeopathic
15.10Pharmacopoeia of the United States, or official National Formulary, and supplement
15.11to any of them;
15.12    (ii) intended for use in the diagnosis, cure, mitigation, treatment, or prevention
15.13of disease; or
15.14    (iii) intended to affect the structure or any function of the body.
15.15    (2) "Durable medical equipment" means equipment, including repair and
15.16replacement parts, including single patient use items, but not including mobility enhancing
15.17equipment, that:
15.18    (i) can withstand repeated use;
15.19    (ii) is primarily and customarily used to serve a medical purpose;
15.20    (iii) generally is not useful to a person in the absence of illness or injury; and
15.21    (iv) is not worn in or on the body.
15.22    For purposes of this clause, "repair and replacement parts" includes all components
15.23or attachments used in conjunction with the durable medical equipment, but does not
15.24include including repair and replacement parts which are for single patient use only.
15.25    (3) "Mobility enhancing equipment" means equipment, including repair and
15.26replacement parts, but not including durable medical equipment, that:
15.27    (i) is primarily and customarily used to provide or increase the ability to move from
15.28one place to another and that is appropriate for use either in a home or a motor vehicle;
15.29    (ii) is not generally used by persons with normal mobility; and
15.30    (iii) does not include any motor vehicle or equipment on a motor vehicle normally
15.31provided by a motor vehicle manufacturer.
15.32    (4) "Over-the-counter drug" means a drug that contains a label that identifies the
15.33product as a drug as required by Code of Federal Regulations, title 21, section 201.66. The
15.34label must include a "drug facts" panel or a statement of the active ingredients with a list of
15.35those ingredients contained in the compound, substance, or preparation. Over-the-counter
15.36drugs do not include grooming and hygiene products, regardless of whether they otherwise
16.1meet the definition. "Grooming and hygiene products" are soaps, cleaning solutions,
16.2shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and sunscreens.
16.3    (5) "Prescribed" and "prescription" means a direction in the form of an order,
16.4formula, or recipe issued in any form of oral, written, electronic, or other means of
16.5transmission by a duly licensed health care professional.
16.6    (6) "Prosthetic device" means a replacement, corrective, or supportive device,
16.7including repair and replacement parts, worn on or in the body to:
16.8    (i) artificially replace a missing portion of the body;
16.9    (ii) prevent or correct physical deformity or malfunction; or
16.10    (iii) support a weak or deformed portion of the body.
16.11Prosthetic device does not include corrective eyeglasses.
16.12    (7) "Kidney dialysis equipment" means equipment that:
16.13    (i) is used to remove waste products that build up in the blood when the kidneys are
16.14not able to do so on their own; and
16.15    (ii) can withstand repeated use, including multiple use by a single patient,
16.16notwithstanding the provisions of clause (2).
16.17(8) A transaction is covered by Medicare or Medicaid if any portion of the cost of
16.18the item purchased in the transaction is paid for or reimbursed by the federal government
16.19or the state of Minnesota pursuant to the Medicare or Medicaid program, by a private
16.20insurance company administering the Medicare or Medicaid program on behalf of the
16.21federal government or the state of Minnesota, or by a managed care organization for the
16.22benefit of a patient enrolled in a prepaid program that furnishes medical services in lieu
16.23of conventional Medicare or Medicaid coverage pursuant to agreement with the federal
16.24government or the state of Minnesota.
16.25EFFECTIVE DATE.This section is effective for sales and purchases made after
16.26June 30, 2011.

16.27    Sec. 2. Minnesota Statutes 2010, section 297A.67, is amended by adding a subdivision
16.28to read:
16.29    Subd. 7a. Accessories and supplies. Accessories and supplies required for the
16.30effective use of durable medical equipment for home use only or purchased in a transaction
16.31covered by medicare or Medicaid, that are not already exempt under Minnesota Statutes
16.32297A.67, subdivision 7, are exempt. Accessories and supplies for the effective use of a
16.33prosthetic device that are not already exempt under Minnesota Statutes, section 297A.67,
16.34subdivision 7, are exempt. For purposes of this subdivision "durable medical equipment,"
17.1"prosthetic device," "Medicare," and "Medicaid" have the definitions given in Minnesota
17.2Statutes, section 297A.67, subdivision 7.
17.3EFFECTIVE DATE.This section is effective for sales and purchases made after
17.4June 30, 2011.

17.5    Sec. 3. Minnesota Statutes 2010, section 297A.67, is amended by adding a subdivision
17.6to read:
17.7    Subd. 33. Resale ticket purchases. For resale purchases made subsequent to the
17.8purchase of a ticket from the initial seller, as defined under section 609.807, paragraph
17.9(a), the original face value of a ticket, as defined under section 609.807, paragraph (a),
17.10is exempt.
17.11EFFECTIVE DATE.This section is effective for sales and purchases made after
17.12June 30, 2011.

17.13    Sec. 4. Minnesota Statutes 2010, section 297A.70, subdivision 1, is amended to read:
17.14    Subdivision 1. Scope. (a) To the extent provided in this section, the gross receipts
17.15from sales of items to or by, and storage, distribution, use, or consumption of items by the
17.16organizations or units of local government listed in this section are specifically exempted
17.17from the taxes imposed by this chapter.
17.18(b) Notwithstanding any law to the contrary enacted before 1992, only sales to
17.19governments and political subdivisions listed in this section are exempt from the taxes
17.20imposed by this chapter.
17.21(c) "Sales" includes purchases under an installment contract or lease purchase
17.22agreement under section 465.71.
17.23EFFECTIVE DATE.This section is effective for sales and purchases made after
17.24June 30, 2011.

17.25    Sec. 5. Minnesota Statutes 2010, section 297A.70, subdivision 2, is amended to read:
17.26    Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b),
17.27to the following governments and political subdivisions, or to the listed agencies or
17.28instrumentalities of governments and political subdivisions, are exempt:
17.29(1) the United States and its agencies and instrumentalities;
17.30(2) school districts, the University of Minnesota, state universities, community
17.31colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts
18.1Education, and an instrumentality of a political subdivision that is accredited as an
18.2optional/special function school by the North Central Association of Colleges and Schools;
18.3(3) hospitals and nursing homes owned and operated by political subdivisions of
18.4the state of tangible personal property and taxable services used at or by hospitals and
18.5nursing homes;
18.6(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip
18.7operations provided for in section 473.4051;
18.8(5) other states or political subdivisions of other states, if the sale would be exempt
18.9from taxation if it occurred in that state; and
18.10(6) sales to public libraries, public library systems, multicounty, multitype library
18.11systems as defined in section 134.001, county law libraries under chapter 134A, state
18.12agency libraries, the state library under section 480.09, and the Legislative Reference
18.13Library; and
18.14(7) towns.
18.15(b) This exemption does not apply to the sales of the following products and services:
18.16(1) building, construction, or reconstruction materials purchased by a contractor
18.17or a subcontractor as a part of a lump-sum contract or similar type of contract with a
18.18guaranteed maximum price covering both labor and materials for use in the construction,
18.19alteration, or repair of a building or facility;
18.20(2) construction materials purchased by tax exempt entities or their contractors to
18.21be used in constructing buildings or facilities which will not be used principally by the
18.22tax exempt entities;
18.23(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11,
18.24except for leases entered into by the United States or its agencies or instrumentalities; or
18.25(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g),
18.26clause (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in
18.27section 297A.67, subdivision 2, except for lodging, prepared food, candy, soft drinks,
18.28and alcoholic beverages purchased directly by the United States or its agencies or
18.29instrumentalities; or
18.30(5) goods or services purchased by a town that are generally provided by a private
18.31business and the purchases would be taxable if made by a private business engaged in the
18.32same activity.
18.33(c) As used in this subdivision, "school districts" means public school entities and
18.34districts of every kind and nature organized under the laws of the state of Minnesota, and
18.35any instrumentality of a school district, as defined in section 471.59.
19.1(d) As used in this subdivision, "local governments" means cities, counties, and
19.2townships.
19.3(e) As used in this subdivision, "goods or services generally provided by a private
19.4business" include, but are not limited to, goods or services provided by liquor stores, gas
19.5and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes,
19.6and laundromats. "Goods or services generally provided by a private business" do not
19.7include housing services, sewer and water services, wastewater treatment, ambulance and
19.8other public safety services, correctional services, chore or homemaking services provided
19.9to elderly or disabled individuals, or road and street maintenance or lighting.
19.10EFFECTIVE DATE.This section is effective for sales and purchases made after
19.11June 30, 2011.

19.12    Sec. 6. Minnesota Statutes 2010, section 297A.70, subdivision 3, is amended to read:
19.13    Subd. 3. Sales of certain goods and services to government. (a) The following
19.14sales to or use by the specified governments and political subdivisions of the state are
19.15exempt:
19.16    (1) repair and replacement parts for emergency rescue vehicles, fire trucks, and
19.17fire apparatus to a political subdivision;
19.18    (2) machinery and equipment, except for motor vehicles, used directly for mixed
19.19municipal solid waste management services at a solid waste disposal facility as defined in
19.20section 115A.03, subdivision 10;
19.21    (3) chore and homemaking services to a political subdivision of the state to be
19.22provided to elderly or disabled individuals;
19.23    (4) telephone services to the Office of Enterprise Technology that are used to provide
19.24telecommunications services through the enterprise technology revolving fund;
19.25    (5) firefighter personal protective equipment as defined in paragraph (b), if purchased
19.26or authorized by and for the use of an organized fire department, fire protection district, or
19.27fire company regularly charged with the responsibility of providing fire protection to the
19.28state or a political subdivision;
19.29    (6) bullet-resistant body armor that provides the wearer with ballistic and trauma
19.30protection, if purchased by a law enforcement agency of the state or a political subdivision
19.31of the state, or a licensed peace officer, as defined in section 626.84, subdivision 1;
19.32    (7) motor vehicles purchased or leased by political subdivisions of the state if the
19.33vehicles are exempt from registration under section 168.012, subdivision 1, paragraph (b),
19.34exempt from taxation under section 473.448, or exempt from the motor vehicle sales tax
19.35under section 297B.03, clause (12);
20.1    (8) equipment designed to process, dewater, and recycle biosolids for wastewater
20.2treatment facilities of political subdivisions, and materials incidental to installation of
20.3that equipment;
20.4    (9) sales to a town of gravel and of machinery, equipment, and accessories, except
20.5motor vehicles, used exclusively for road and bridge maintenance, and leases by a town of
20.6motor vehicles exempt from tax under section 297B.03, clause (10);
20.7    (10) (9) the removal of trees, bushes, or shrubs for the construction and maintenance
20.8of roads, trails, or firebreaks when purchased by an agency of the state or a political
20.9subdivision of the state; and
20.10    (11) (10) purchases by the Metropolitan Council or the Department of Transportation
20.11of vehicles and repair parts to equip operations provided for in section 174.90, including,
20.12but not limited to, the Northstar Corridor Rail project.
20.13    (b) For purposes of this subdivision, "firefighters personal protective equipment"
20.14means helmets, including face shields, chin straps, and neck liners; bunker coats and
20.15pants, including pant suspenders; boots; gloves; head covers or hoods; wildfire jackets;
20.16protective coveralls; goggles; self-contained breathing apparatus; canister filter masks;
20.17personal alert safety systems; spanner belts; optical or thermal imaging search devices;
20.18and all safety equipment required by the Occupational Safety and Health Administration.
20.19    (c) For purchases of items listed in paragraph (a), clause (11), the tax must be
20.20imposed and collected as if the rate under section 297A.62, subdivision 1, applied and
20.21then refunded in the manner provided in section 297A.75.
20.22EFFECTIVE DATE.This section is effective for sales and purchases made after
20.23June 30, 2011.

20.24    Sec. 7. Minnesota Statutes 2010, section 297A.82, subdivision 4, is amended to read:
20.25    Subd. 4. Exemptions. (a) The following transactions are exempt from the tax
20.26imposed in this chapter to the extent provided.
20.27(b) The purchase or use of aircraft previously registered in Minnesota by a
20.28corporation or partnership is exempt if the transfer constitutes a transfer within the
20.29meaning of section 351 or 721 of the Internal Revenue Code.
20.30(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer
20.31of an aircraft for which a commercial use permit has been issued pursuant to section
20.32360.654 is exempt, if the aircraft is resold while the permit is in effect.
20.33(d) Airflight equipment when sold to, or purchased, stored, used, or consumed by
20.34airline companies, as defined in section 270.071, subdivision 4, is exempt. For purposes of
20.35this subdivision, "airflight equipment" includes airplanes and parts necessary for the repair
21.1and maintenance of such airflight equipment, and flight simulators, but does not include
21.2airplanes with a gross weight of less than 30,000 pounds that are used on intermittent or
21.3irregularly timed flights.
21.4(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined
21.5in section 360.511 and approved by the Federal Aviation Administration, and which the
21.6seller delivers to a purchaser outside Minnesota or which, without intermediate use, is
21.7shipped or transported outside Minnesota by the purchaser are exempt, but only if the
21.8purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter
21.9returned to a point within Minnesota, except in the course of interstate commerce or
21.10isolated and occasional use, and will be registered in another state or country upon its
21.11removal from Minnesota. This exemption applies even if the purchaser takes possession of
21.12the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes
21.13for a period not to exceed ten days prior to removing the aircraft from this state.
21.14(f) The sale or purchase of aircraft and aircraft equipment, including parts necessary
21.15for repair and maintenance of such airflight equipment, as defined under Federal Aviation
21.16Regulations, Part 135, that has a maximum certified takeoff weight of 6,000 pounds or
21.17more are exempt.
21.18EFFECTIVE DATE.This section is effective for sales and purchases made after
21.19June 30, 2011.

21.20    Sec. 8. Minnesota Statutes 2010, section 297A.99, subdivision 1, is amended to read:
21.21    Subdivision 1. Authorization; scope. (a) A political subdivision of this state may
21.22impose a general sales tax (1) under section 297A.992, (2) under section 297A.993, (3) if
21.23permitted by special law enacted prior to May 20, 2008, or (4) if the political subdivision
21.24enacted and imposed the tax before January 1, 1982, and its predecessor provision, or if
21.25the tax is allowed under subdivision 1a.
21.26    (b) This section governs the imposition of a general sales tax by the political
21.27subdivision. The provisions of this section preempt the provisions of any special law:
21.28    (1) enacted before June 2, 1997, or
21.29    (2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
21.30provision from this section's rules by reference.
21.31    (c) This section does not apply to or preempt a sales tax on motor vehicles or a
21.32special excise tax on motor vehicles.
21.33    (d) Until after May 31, 2010, a political subdivision may not advertise, promote,
21.34expend funds, or hold a referendum to support imposing a local option sales tax unless
22.1it is for extension of an existing tax or the tax was authorized by a special law enacted
22.2prior to May 20, 2008.

22.3    Sec. 9. Minnesota Statutes 2010, section 297A.99, is amended by adding a subdivision
22.4to read:
22.5    Subd. 1a. General authority; certain cities. (a) A city, or a group of cities acting
22.6under a joint powers agreement, may impose a local sales and use tax of up to one-half of
22.7one percent without authorization under a special law provided that:
22.8(1) imposition of the tax is approved by the voters of each city at a general election
22.9pursuant to subdivision 3, paragraph (a); and
22.10(2) all the conditions for adoption, use, and termination of the tax contained in this
22.11subdivision and subdivisions 3 to 12 are met.
22.12The authority under this section is in addition to any local sales tax authority
22.13permitted under special law.
22.14(b) If a city imposes a tax under paragraph (a) at a rate less than one-half of one
22.15percent, the city may increase the rate upon approval of the voters at a general election up
22.16to a rate of one-half of one percent without authorization under a special law provided that
22.17all of the conditions of this subdivision are met.
22.18(c) The proceeds of a tax imposed under this subdivision must be dedicated
22.19exclusively to pay for specific capital projects approved by the voters in the authorizing
22.20referendum. No proceeds may be used for normal maintenance or operating costs of a
22.21facility or properties owned by a city or group of cities. The proceeds may be used to
22.22pay for collecting and administering the tax, to pay all or part of the capital costs of the
22.23development, acquisition, construction, expansion, and improvement, and to secure and
22.24pay debt service on bonds or other obligations issued to finance capital costs of a regional
22.25project, including the following:
22.26(1) convention or civic center;
22.27(2) public libraries;
22.28(3) parks, trails, and recreational centers;
22.29(4) overpasses, arterial and collector roads, or bridges, on, adjacent to, or connecting
22.30to a Minnesota state highway;
22.31(5) railroad overpasses or crossing safety improvements;
22.32(6) flood control and protection;
22.33(7) water quality projects to address groundwater and drinking water pollution
22.34problems;
22.35(8) court facilities;
23.1(9) fire, law enforcement, or public safety facilities; or
23.2(10) municipal buildings.
23.3(d) At least three months prior to holding a referendum to impose the tax, a city must
23.4provide to the commissioner of revenue a resolution approved by the city that shows that
23.5the tax will fund a project that meets the requirements of paragraphs (a) to (c), the date on
23.6which the referendum will be held, the maximum amount raised by the tax that may be
23.7used for the specified project, excluding issuance and interest costs for any related bonds,
23.8and the maximum time that the tax may be imposed. The commissioner shall certify that
23.9the requirements under this subdivision are met and the city shall provide any additional
23.10information on the commissioner's requests in order to make that determination. The
23.11commissioner's decision is final.
23.12(e) The question put to the voters at the referendum authorizing the vote must
23.13include information on the specific project or projects to be funded by the proceeds of the
23.14tax, the maximum amount of sales tax revenues that will be used to fund each project, not
23.15including any issuance and interest costs for related bonds, and the maximum length of
23.16time that the tax will be imposed, which must not exceed ten years from the date the initial
23.17tax was imposed without regard to an increase in the rate. If the referendum is not held on
23.18the date contained in the resolution, the authority for imposing the tax expires.
23.19(f) A city may issue general obligation bonds to pay the costs of projects specified
23.20in the referendum authorizing imposition of the tax. The approval of the question under
23.21paragraph (e) meets the requirement for elector approval for issuance of bonds under
23.22section 475.58, subdivision 1. The debt represented by the bonds must not be included in
23.23computing any debt limitations applicable to the city, and the levy of taxes required by
23.24section 475.61 to pay the principal or any interest on the bonds must not be subject to any
23.25levy limitations or be included in computing or applying any levy limitation to the city.
23.26(g) The tax, if enacted, expires when the specified revenue has been raised or the
23.27maximum time in which the tax is in effect under the resolution is reached, whichever is
23.28sooner. Any tax imposed under this subdivision must expire no later than ten years after
23.29imposition from the date the initial tax was imposed without regard to an increase in the
23.30rate. The governing board of the city may, by ordinance, terminate the tax at an earlier
23.31date. A city must not impose a new local option sales and use tax until a previously
23.32authorized one has been terminated.
23.33EFFECTIVE DATE.This section is effective for local sales taxes for which the
23.34authorizing referendum is held after June 30, 2011.

23.35    Sec. 10. Minnesota Statutes 2010, section 297A.99, subdivision 3, is amended to read:
24.1    Subd. 3. Requirements for adoption, use, termination. (a) Imposition of a local
24.2sales tax is subject to approval by voters of the political subdivision at a general election.
24.3The election must be conducted before the governing body of the political subdivision
24.4requests legislative approval of the tax. A referendum on the issuance of bonds to be paid
24.5from the proceeds of a local sales tax is not subject to sections 275.60 and 275.61.
24.6(b) The proceeds of the tax must be dedicated exclusively to payment of the cost of a
24.7specific capital improvement which is designated at least 90 days before the referendum
24.8on imposition of the tax is conducted.
24.9(c) The tax must terminate after the improvement designated under paragraph (b)
24.10has been completed.
24.11(d) After a sales tax imposed by a political subdivision has expired or been
24.12terminated, the political subdivision is prohibited from imposing a local sales tax for a
24.13period of one year. Notwithstanding subdivision 13, this paragraph applies to all local
24.14sales taxes in effect at the time of or imposed after May 26, 1999.
24.15EFFECTIVE DATE.This section is effective the day following final enactment.

24.16    Sec. 11. Minnesota Statutes 2010, section 297A.99, is amended by adding a
24.17subdivision to read:
24.18    Subd. 14. Local government aid offset. A home rule charter or statutory city
24.19that imposes a tax under subdivision 1a after June 30, 2011, or that renews or extends a
24.20previously authorized tax after June 30, 2011, is subject to a reduction in the amount of
24.21aid the city is otherwise eligible to receive under section 477A.013, as provided in this
24.22subdivision.
24.23The amount of the sales tax collected for the calendar year is deducted from the aid
24.24the home rule charter or statutory city would otherwise receive under section 477A.013
24.25in the following year, but only to the extent of the amount of aid paid to that city that is
24.26attributable to the sum of: (1) any aid base increase under section 477A.011, subdivision
24.2736, paragraph (k); and (2) any aid increase due to its city jobs base under section 477.013,
24.28subdivision 8.
24.29EFFECTIVE DATE.This section is effective for aids payable in 2012 and
24.30thereafter.

24.31    Sec. 12. Minnesota Statutes 2010, section 477A.013, subdivision 9, is amended to read:
25.1    Subd. 9. City aid distribution. (a) In calendar year 2009 and thereafter, each
25.2city shall receive an aid distribution equal to the sum of (1) the city formula aid under
25.3subdivision 8, and (2) its city aid base.
25.4    (b) For aids payable in 2011 only, the total aid in the previous year for any city shall
25.5mean the amount of aid it was certified to receive for aids payable in 2010 under this
25.6section minus the amount of its aid reduction under section 477A.0134. For aids payable
25.7in 2012 and thereafter, the total aid in the previous year for any city means the amount of
25.8aid it was certified to receive under this section in the previous payable year.
25.9    (c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed
25.10the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution
25.11plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total
25.12aid for any city with a population of 2,500 or more may not be less than its total aid under
25.13this section in the previous year minus the lesser of $10 multiplied by its population, or ten
25.14percent of its net levy in the year prior to the aid distribution.
25.15    (d) For aids payable in 2010 and thereafter, the total aid for a city with a population
25.16less than 2,500 must not be less than the amount it was certified to receive in the
25.17previous year minus the lesser of $10 multiplied by its population, or five percent of its
25.182003 certified aid amount. For aids payable in 2009 only, the total aid for a city with a
25.19population less than 2,500 must not be less than what it received under this section in the
25.20previous year unless its total aid in calendar year 2008 was aid under section 477A.011,
25.21subdivision 36, paragraph (s), in which case its minimum aid is zero.
25.22    (e) A city's aid loss under this section may not exceed $300,000 in any year in
25.23which the total city aid appropriation under section 477A.03, subdivision 2a, is equal or
25.24greater than the appropriation under that subdivision in the previous year, unless the
25.25city has an adjustment in its city net tax capacity under the process described in section
25.26469.174, subdivision 28 .
25.27    (f) If a city's net tax capacity used in calculating aid under this section has decreased
25.28in any year by more than 25 percent from its net tax capacity in the previous year due to
25.29property becoming tax-exempt Indian land, the city's maximum allowed aid increase
25.30under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the
25.31year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease
25.32resulting from the property becoming tax exempt.
25.33(g) In calendar year 2012 and thereafter, the aid that would otherwise be distributed
25.34to a city under paragraphs (a) to (f) will be reduced or eliminated if the city is subject to an
25.35aid offset under section 297A.99, subdivision 14.

26.1    Sec. 13. Minnesota Statutes 2010, section 477A.03, subdivision 2a, is amended to read:
26.2    Subd. 2a. Cities. For aids payable in 2011 and thereafter, the total aid paid under
26.3section 477A.013, subdivision 9, is $527,100,646, reduced by the cumulative amount of
26.4all aid offsets for that year under section 297A.99, subdivision 14.

26.5    Sec. 14. Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by
26.6Laws 2005, First Special Session chapter 3, article 5, section 28, is amended to read:
26.7    Subd. 3. Use of revenues. (a) Revenues received from the taxes authorized by
26.8subdivisions 1 and 2 must be used by the city to pay for the cost of collecting and
26.9administering the taxes and to pay for the following projects:
26.10    (1) transportation infrastructure improvements including regional highway and
26.11airport improvements;
26.12    (2) improvements to the civic center complex;
26.13    (3) a municipal water, sewer, and storm sewer project necessary to improve regional
26.14ground water quality; and
26.15    (4) construction of a regional recreation and sports center and other higher education
26.16facilities available for both community and student use.
26.17    (b) The total amount of capital expenditures or bonds for these projects listed in
26.18paragraph (a) that may be paid from the revenues raised from the taxes authorized in this
26.19section may not exceed $111,500,000. The total amount of capital expenditures or bonds
26.20for the project in clause (4) that may be paid from the revenues raised from the taxes
26.21authorized in this section may not exceed $28,000,000.
26.22(c) In addition to the projects authorized in paragraph (a) and not subject to the
26.23amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an
26.24election under subdivision 5, paragraph (c), use the revenues received from the taxes and
26.25bonds authorized in this section to pay the costs of or bonds for the following purposes:
26.26(1) $47,000,000 for capital expenditures and bonds for transportation infrastructure
26.27improvements including regional highway and airport improvements, but excluding any
26.28transportation improvements related to a railroad bypass that would divert rail traffic
26.29from the city of Rochester;
26.30(2) $26,500,000 for capital expenditures and bonds for higher education facilities in
26.31the city;
26.32(3) $40,500,000 for capital expenditures and bonds for improvements to regional
26.33youth and elder community facilities;
26.34(4) $8,000,000 for capital expenditures and bonds for construction of regional public
26.35safety facilities; and
27.1(5) $38,000,000 for project expenditures and bonds for any economic development
27.2purposes authorized under Minnesota Statutes, chapter 469.
27.3EFFECTIVE DATE.This section is effective the day following final enactment.

27.4    Sec. 15. Laws 1998, chapter 389, article 8, section 43, subdivision 4, as amended by
27.5Laws 2005, First Special Session chapter 3, article 5, section 29, is amended to read:
27.6    Subd. 4. Bonding authority. (a) The city may issue bonds under Minnesota
27.7Statutes, chapter 475, to finance the capital expenditure and improvement projects.
27.8An election to approve up to $71,500,000 in bonds under Minnesota Statutes, section
27.9475.58 , may be held in combination with the election to authorize imposition of the tax
27.10under subdivision 1. Whether to permit imposition of the tax and issuance of bonds
27.11may be posed to the voters as a single question. The question must state that the sales
27.12tax revenues are pledged to pay the bonds, but that the bonds are general obligations
27.13and will be guaranteed by the city's property taxes. An election to approve up to an
27.14additional $40,000,000 of bonds under Minnesota Statutes, section 475.58, may be held
27.15in combination with the election to authorize extension of the tax under subdivision 5,
27.16paragraph (b). An election to approve bonds under Minnesota Statutes, section 475.58,
27.17in an amount not to exceed $160,000,000 plus an amount equal to the costs of issuance
27.18of the bonds, may be held in combination with the election to authorize the extension of
27.19the tax under subdivision 5, paragraph (c).
27.20    (b) The city may shall enter into an agreement with Olmsted County under which the
27.21city and the county agree to jointly undertake and finance certain roadway infrastructure
27.22improvements. The agreement may shall provide that the city will make available to the
27.23county a portion of the sales tax revenues collected pursuant to the authority granted in
27.24this section and the bonding authority provided in this subdivision. The county may,
27.25pursuant to the agreement, issue its general obligation bonds in a principal amount not
27.26exceeding the amount authorized by its agreement with the city payable primarily from
27.27the sales tax revenues from the city under the agreement. The county's bonds must be
27.28issued in accordance with the provisions of Minnesota Statutes, chapter 475, except that
27.29no election is required for the issuance of the bonds and the bonds are not included in
27.30the net debt of the county.
27.31    (b) (c) The issuance of bonds under this subdivision is not subject to Minnesota
27.32Statutes, section 275.60.
27.33    (c) (d) The bonds are not included in computing any debt limitation applicable to the
27.34city, and the levy of taxes under Minnesota Statutes, section 475.61, to pay principal of
27.35and interest on the bonds is not subject to any levy limitation.
28.1    (e) The aggregate principal amount of bonds, plus the aggregate of the taxes used
28.2directly to pay eligible capital expenditures and improvements for projects listed in
28.3subdivision 3, paragraph (a), may not exceed $111,500,000, plus an amount equal to the
28.4costs related to issuance of the bonds. The aggregate principal amount of bonds plus the
28.5aggregate of the taxes used directly to pay the costs of eligible projects under subdivision
28.63, paragraph (c), may not exceed $160,000,000 plus an amount equal to the costs of
28.7issuance of the bonds.
28.8    (d) (f) The taxes may be pledged to and used for the payment of the bonds and
28.9any bonds issued to refund them, only if the bonds and any refunding bonds are general
28.10obligations of the city.
28.11EFFECTIVE DATE.This section is effective the day following final enactment.

28.12    Sec. 16. Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by
28.13Laws 2005, First Special Session chapter 3, article 5, section 30, is amended to read:
28.14    Subd. 5. Termination of taxes. (a) The taxes imposed under subdivisions 1 and
28.152 expire at the later of (1) December 31, 2009, or (2) when the city council determines
28.16that sufficient funds have been received from the taxes to finance the first $71,500,000
28.17of capital expenditures and bonds for the projects authorized in subdivision 3, including
28.18the amount to prepay or retire at maturity the principal, interest, and premium due on any
28.19bonds issued for the projects under subdivision 4, unless the taxes are extended as allowed
28.20in paragraph (b). Any funds remaining after completion of the project and retirement or
28.21redemption of the bonds shall also be used to fund the projects under subdivision 3. The
28.22taxes imposed under subdivisions 1 and 2 may expire at an earlier time if the city so
28.23determines by ordinance.
28.24    (b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any
28.25other contrary provision of law, ordinance, or city charter, the city of Rochester may, by
28.26ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009,
28.27if approved by the voters of the city at a special election in 2005 or the general election in
28.282006. The question put to the voters must indicate that an affirmative vote would allow
28.29up to an additional $40,000,000 of sales tax revenues be raised and up to $40,000,000
28.30of bonds to be issued above the amount authorized in the June 23, 1998, referendum for
28.31the projects specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are
28.32extended under this paragraph, the taxes expire when the city council determines that
28.33sufficient funds have been received from the taxes to finance the projects and to prepay
28.34or retire at maturity the principal, interest, and premium due on any bonds issued for the
29.1projects under subdivision 4. Any funds remaining after completion of the project and
29.2retirement or redemption of the bonds may be placed in the general fund of the city.
29.3(c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any
29.4other contrary provision of law, ordinance, or city charter, the city of Rochester may, by
29.5ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond the date the city
29.6council determines that sufficient funds have been received from the taxes to finance
29.7$111,500,000 of expenditures and bonds for the projects authorized in subdivision 3,
29.8paragraph (a), plus an amount equal to the costs of issuance of the bonds and including
29.9the amount to prepay or retire at maturity the principal, interest, and premiums due on
29.10any bonds issued for the projects under subdivision 4, paragraph (a), if approved by the
29.11voters of the city at the general election in 2012. If the election to authorize the additional
29.12$160,000,000 of bonds plus an amount equal to the costs of the issuance of the bonds is
29.13placed on the general election ballot in 2012, the city may continue to collect the taxes
29.14authorized in subdivisions 1 and 2 until December 31, 2012. The question put to the
29.15voters must indicate that an affirmative vote would allow sales tax revenues be raised for
29.16an extended period of time and an additional $160,000,000 of bonds plus an amount
29.17equal to the costs of issuance of the bonds, to be issued above the amount authorized in
29.18the previous elections required under paragraphs (a) and (b) for the projects and amounts
29.19specified in subdivision 3. The issuance of bonds under this subdivision is not subject to
29.20Minnesota Statutes, sections 275.60 and 275.61. If the taxes authorized in subdivisions 1
29.21and 2 are extended under this paragraph, the taxes expire when the city council determines
29.22that $160,000,000 has been received from the taxes to finance the projects plus an amount
29.23sufficient to prepay or retire at maturity the principal, interest, and premium due on any
29.24bonds issued for the projects under subdivision 4, including any bonds issued to refund the
29.25bonds. Any funds remaining after completion of the projects and retirement or redemption
29.26of the bonds may be placed in the general fund of the city.
29.27EFFECTIVE DATE.This section is effective the day after compliance by the
29.28governing body of the city of Rochester with Minnesota Statutes, section 645.021,
29.29subdivision 3.

29.30    Sec. 17. Laws 2008, chapter 366, article 7, section 19, subdivision 3, is amended to
29.31read:
29.32    Subd. 3. Use of revenues. Notwithstanding Minnesota Statutes, section 297A.99,
29.33subdivision 3, paragraph (b), the proceeds of the tax imposed under this section shall be
29.34used to pay for the costs of acquisition, construction, improvement, and development of
29.35a regional parks, bicycle trails, park land, open space, and pedestrian bridge walkways,
30.1as described in the city improvement plan adopted by the city council by resolution on
30.2December 12, 2006, and land and buildings for a community and recreation center. The
30.3total amount of revenues from the taxes in subdivisions 1 and 2 that may be used to fund
30.4these projects is $12,000,000 plus any associated bond costs.
30.5EFFECTIVE DATE.This section is effective the day after compliance by the
30.6governing body of the city of Clearwater with Minnesota Statutes, section 645.021,
30.7subdivisions 2 and 3.

30.8    Sec. 18. CITY OF FERGUS FALLS; SALES AND USE TAX AUTHORIZED.
30.9    Subdivision 1. Sales and use tax. Notwithstanding Minnesota Statutes, section
30.10297A.99, subdivision 1, or 477A.016, or any other provision of law, ordinance, or city
30.11charter, as approved by the voters at the November 2, 2010, general election, the city
30.12of Fergus Falls may impose by ordinance a sales and use tax of up to one-half of one
30.13percent for the purposes specified in subdivision 2. Except as provided in this section, the
30.14provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
30.15collection, and enforcement of the tax authorized under this subdivision.
30.16    Subd. 2. Use of revenues. Revenues received from taxes authorized by subdivision
30.171 must be used by the city of Fergus Falls to pay the cost of collecting the tax and to pay
30.18for all or part of the costs of the acquisition and betterment of a regional community ice
30.19arena facility. Authorized expenses include, but are not limited to, acquiring property,
30.20predesign, design, and paying construction, furnishing, and equipment costs related to
30.21the facility and paying debt service on bonds or other obligations issued by the Fergus
30.22Falls Port Authority to finance the facility.
30.23    Subd. 3. Termination of taxes. The tax imposed under this section expires when
30.24the Fergus Falls City Council determines that sufficient funds have been received from
30.25the taxes to finance the facility and to prepay or retire at maturity the principal, interest,
30.26and premium due on any bonds, including refunding bonds, issued by the Fergus Falls
30.27Port Authority for the facility. Any funds remaining after completion of the facility and
30.28retirement or redemption of the bonds may be placed in the general fund of the city of
30.29Fergus Falls. The tax imposed under subdivision 1 may expire at an earlier time if the
30.30city so determines by ordinance.
30.31EFFECTIVE DATE.This section is effective the day after the governing body
30.32of the city of Fergus Falls and its chief clerical officer timely comply with Minnesota
30.33Statutes, section 645.021, subdivisions 2 and 3.

31.1    Sec. 19. CITY OF LANESBORO; SALES TAX AUTHORIZED.
31.2    Subdivision 1. Sales and use tax authorized. Notwithstanding Minnesota Statutes,
31.3section 477A.016, or any other provision of law, ordinance, or city charter, as approved by
31.4the voters at the November 2, 2010, general election, the city of Lanesboro may impose by
31.5ordinance a sales and use tax of up to one-half of one percent for the purposes specified in
31.6subdivision 2. Except as provided in this section, the provisions of Minnesota Statutes,
31.7section 297A.99, govern the imposition of the tax authorized under this subdivision.
31.8    Subd. 2. Use of revenues. Revenues received from the tax authorized under
31.9subdivision 1 must be used by the city of Lanesboro to pay the costs of collecting the tax
31.10and to pay for all or a part of the improvements to city streets and utility systems, and the
31.11betterment of city municipal buildings consisting of (i) street and utility improvements to
31.12Calhoun Avenue, Fillmore Avenue, Kenilworth Avenue, Pleasant Street, Kirkwood Street,
31.13Auburn Avenue, and Zenith Street, and street light replacement on State Highways 250
31.14and 16; (ii) improvements to utility systems consisting of wastewater treatment facility
31.15improvements and electric utility improvements to the Lanesboro High Hazard Dam; and
31.16(iii) improvements to the Lanesboro community center, library, and city hall, including
31.17paying debt service on bonds or other obligations issued to fund these projects under
31.18subdivision 3. The total amount of revenues from the taxes in subdivision 1 that may be
31.19used to fund these projects is $800,000 plus any associated bond costs.
31.20    Subd. 3. Bonding authority. The city of Lanesboro may issue bonds under
31.21Minnesota Statutes, chapter 475, to pay capital and administrative expenses related to the
31.22projects authorized in subdivision 2. An election to approve the bonds under Minnesota
31.23Statutes, section 475.58, is not required. The issuance of bonds under this subdivision
31.24is not subject to Minnesota Statutes, sections 275.60 and 275.61. The bonds are not
31.25included in computing any debt limitation applicable to the city and the levy of taxes
31.26under Minnesota Statutes, section 475.61, to pay principal and interest on the bonds is
31.27not subject to any levy limitation.
31.28The aggregate principal amount of the bonds plus the aggregate of the taxes used
31.29directly to pay costs of the projects listed in subdivision 2 may not exceed $800,000, plus
31.30an amount equal to the costs related to issuance of the bonds and capitalized interest.
31.31The taxes authorized in subdivision 1 may be pledged and used for payments of
31.32the bonds and bonds issued to refund them, only if the bonds and any refunding bonds
31.33are general obligations of the city.
32.1    Subd. 4. Termination of tax. The tax imposed under subdivision 1 expires when
32.2the Lanesboro City Council determines that sufficient funds have been raised from the
32.3taxes to finance the projects authorized under subdivision 2 and to prepay or retire at
32.4maturity the principal, interest, and premium due on any bonds issued under subdivision 3.
32.5Any funds remaining after completion of the project and retirement or redemption of the
32.6bonds may be placed in the general fund of the city. The tax imposed under subdivision 1
32.7may expire at an earlier time if the city so determines by ordinance.
32.8EFFECTIVE DATE.This section is effective the day after the governing body of
32.9the city of Lanesboro and its chief clerical officer comply with Minnesota Statutes, section
32.10645.021, subdivisions 2 and 3.

32.11    Sec. 20. CITY OF HUTCHINSON; TAXES AUTHORIZED.
32.12    Subdivision 1. Sales and use tax. Notwithstanding Minnesota Statutes, section
32.13477A.016, or any other provision of law, ordinance, or city charter, as approved by
32.14the voters at a referendum held at the 2010 general election, the city of Hutchinson
32.15may impose by ordinance a sales and use tax of up to one-half of one percent for the
32.16purposes specified in subdivision 3. Except as otherwise provided in this section,
32.17Minnesota Statutes, section 297A.99, governs the imposition, administration, collection,
32.18and enforcement of the tax authorized under this subdivision. Minnesota Statutes, section
32.19297A.99, subdivision 1, paragraph (d), does not apply to this section.
32.20    Subd. 2. Excise tax authorized. Notwithstanding Minnesota Statutes, section
32.21477A.016, or any other provision of law, ordinance, or city charter, the city of Hutchinson
32.22may impose by ordinance, for the purposes specified in subdivision 3, an excise tax of up
32.23to $20 per motor vehicle, as defined by ordinance, purchased or acquired from any person
32.24engaged within the city in the business of selling motor vehicles at retail.
32.25    Subd. 3. Use of revenues. Revenues received from the taxes authorized by this
32.26section must be used to pay the cost of collecting and administering the tax and to finance
32.27the costs of constructing the water treatment facility and renovating the wastewater
32.28treatment facility in the city of Hutchinson. Authorized costs include, but are not limited
32.29to, construction and engineering costs of the projects and associated bond costs.
32.30    Subd. 4. Termination of tax. The taxes authorized under subdivisions 1 and 2
32.31terminate at the earlier of: (1) 18 years after the date of initial imposition of the tax; or
32.32(2) when the Hutchinson City Council determines that the amount of revenues raised is
32.33sufficient to pay for the projects under subdivision 3, plus the amount needed to finance
33.1the capital and administrative costs for the projects specified in subdivision 3, and to repay
33.2or retire at maturity the principal, interest, and premium due on any bonds issued for the
33.3projects. Any funds remaining after completion of the projects specified in subdivision
33.43 and retirement or redemption of the associated bonds may be placed in the general
33.5fund of the city. The taxes imposed under subdivisions 1 and 2 may expire at an earlier
33.6time if the city so determines by ordinance.
33.7EFFECTIVE DATE.This section is effective the day after compliance by the
33.8governing body of the city of Hutchinson with Minnesota Statutes, section 645.021,
33.9subdivisions 2 and 3.


33.12    Section 1. Minnesota Statutes 2010, section 97A.061, subdivision 1, is amended to
33.13read:
33.14    Subdivision 1. Applicability; amount. (a) The commissioner shall annually make a
33.15payment to each county having public hunting areas and game refuges. Money to make
33.16the payments is annually appropriated for that purpose from the general fund. Except as
33.17provided in paragraph (b), this section does not apply to state trust fund land and other
33.18state land not purchased for game refuge or public hunting purposes. Except as provided
33.19in paragraph (b), the payment shall be the greatest of:
33.20(1) 35 29.75 percent of the gross receipts from all special use permits and leases of
33.21land acquired for public hunting and game refuges;
33.22(2) 50 42.5 cents per acre on land purchased actually used for public hunting or
33.23game refuges; or
33.24(3) three-fourths of one .6375 percent of the appraised value of purchased land
33.25actually used for public hunting and game refuges.
33.26(b) The payment shall be 50 percent of the dollar amount adjusted for inflation as
33.27determined under section 477A.12, subdivision 1, paragraph (a), clause (1), multiplied
33.28by the number of acres of land in the county that are owned by another state agency for
33.29military purposes and designated as a game refuge under section 97A.085.
33.30(c) The payment must be reduced by the amount paid under subdivision 3 for
33.31croplands managed for wild geese.
33.32(d) The appraised value is the purchase price for five years after acquisition.
33.33The appraised value shall be determined by the county assessor every five years after
33.34acquisition.
34.1EFFECTIVE DATE.This section is effective for aids payable in calendar year
34.22011 and thereafter.

34.3    Sec. 2. Minnesota Statutes 2010, section 97A.061, subdivision 3, is amended to read:
34.4    Subd. 3. Goose management croplands. (a) The commissioner shall make a
34.5payment on July 1 of each year to each county where the state owns more than 1,000 acres
34.6of crop land, for wild goose management purposes. The payment shall be equal to 85
34.7percent of the taxes assessed on comparable, privately owned, adjacent land. Money to
34.8make the payments is annually appropriated for that purpose from the general fund. The
34.9county treasurer shall allocate and distribute the payment as provided in subdivision 2.
34.10(b) The land used for goose management under this subdivision is exempt from
34.11taxation as provided in sections 272.01 and 273.19.
34.12EFFECTIVE DATE.This section is effective for aids payable in calendar year
34.132011 and thereafter.

34.14    Sec. 3. Minnesota Statutes 2010, section 270A.03, subdivision 7, is amended to read:
34.15    Subd. 7. Refund. "Refund" means an individual income tax refund or political
34.16contribution refund, pursuant to chapter 290, or a property tax credit or refund, pursuant to
34.17chapter 290A, or a sustainable forest tax payment to a claimant under chapter 290C.
34.18For purposes of this chapter, lottery prizes, as set forth in section 349A.08,
34.19subdivision 8 , and amounts granted to persons by the legislature on the recommendation
34.20of the joint senate-house of representatives Subcommittee on Claims shall be treated
34.21as refunds.
34.22In the case of a joint property tax refund payable to spouses under chapter 290A,
34.23the refund shall be considered as belonging to each spouse in the proportion of the total
34.24refund that equals each spouse's proportion of the total income determined under section
34.25290A.03, subdivision 3 . In the case of a joint income tax refund under chapter 289A, the
34.26refund shall be considered as belonging to each spouse in the proportion of the total
34.27refund that equals each spouse's proportion of the total taxable income determined under
34.28section 290.01, subdivision 29. The commissioner shall remit the entire refund to the
34.29claimant agency, which shall, upon the request of the spouse who does not owe the debt,
34.30determine the amount of the refund belonging to that spouse and refund the amount to
34.31that spouse. For court fines, fees, and surcharges and court-ordered restitution under
34.32section 611A.04, subdivision 2, the notice provided by the commissioner of revenue under
34.33section 270A.07, subdivision 2, paragraph (b), serves as the appropriate legal notice
34.34to the spouse who does not owe the debt.
35.1EFFECTIVE DATE.This section is effective for refund claims based on
35.2contributions made after June 30, 2011.

35.3    Sec. 4. Minnesota Statutes 2010, section 273.13, subdivision 21b, is amended to read:
35.4    Subd. 21b. Tax capacity. (a) Gross tax capacity means the product of the
35.5appropriate gross class rates in this section and market values.
35.6(b) Net tax capacity means the product of the appropriate net class rates in this
35.7section and market values, minus the property's tax capacity reduction determined under
35.8section 273.1384, subdivision 1, if applicable.
35.9EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
35.10thereafter.

35.11    Sec. 5. Minnesota Statutes 2010, section 273.1384, subdivision 1, is amended to read:
35.12    Subdivision 1. Residential homestead market value credit tax capacity
35.13reduction. Each county auditor shall determine a homestead credit tax capacity reduction
35.14for each class 1a, 1b, and 2a homestead property within the county equal to 0.4 percent of
35.15the first $76,000 of market value of the property minus .09 percent of the market value
35.16in excess of $76,000. The credit tax capacity reduction amount may not be less than
35.17zero. In the case of an agricultural or resort homestead, only the market value of the
35.18house, garage, and immediately surrounding one acre of land is eligible in determining
35.19the property's homestead credit tax capacity reduction. In the case of a property that is
35.20classified as part homestead and part nonhomestead, (i) the credit tax capacity reduction
35.21shall apply only to the homestead portion of the property, but (ii) if a portion of a property
35.22is classified as nonhomestead solely because not all the owners occupy the property, not
35.23all the owners have qualifying relatives occupying the property, or solely because not all
35.24the spouses of owners occupy the property, the credit tax capacity reduction amount shall
35.25be initially computed as if that nonhomestead portion were also in the homestead class and
35.26then prorated to the owner-occupant's percentage of ownership. For the purpose of this
35.27section, when an owner-occupant's spouse does not occupy the property, the percentage of
35.28ownership for the owner-occupant spouse is one-half of the couple's ownership percentage.
35.29EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
35.30thereafter.

35.31    Sec. 6. Minnesota Statutes 2010, section 273.1384, subdivision 3, is amended to read:
36.1    Subd. 3. Credit reimbursements. The county auditor shall determine the tax
36.2reductions allowed under this section subdivision 2 within the county for each taxes
36.3payable year and shall certify that amount to the commissioner of revenue as a part of the
36.4abstracts of tax lists submitted by the county auditors under section 275.29. Any prior
36.5year adjustments shall also be certified on the abstracts of tax lists. The commissioner
36.6shall review the certifications for accuracy, and may make such changes as are deemed
36.7necessary, or return the certification to the county auditor for correction. The credits
36.8credit under this section must be used to proportionately reduce the net tax capacity-based
36.9property tax payable to each local taxing jurisdiction as provided in section 273.1393.
36.10EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
36.11thereafter.

36.12    Sec. 7. Minnesota Statutes 2010, section 273.1384, subdivision 4, is amended to read:
36.13    Subd. 4. Payment. (a) The commissioner of revenue shall reimburse each local
36.14taxing jurisdiction, other than school districts, for the tax reductions granted under this
36.15section subdivision 2 in two equal installments on October 31 and December 26 of the
36.16taxes payable year for which the reductions are granted, including in each payment
36.17the prior year adjustments certified on the abstracts for that taxes payable year. The
36.18reimbursements related to tax increments shall be issued in one installment each year on
36.19December 26.
36.20(b) The commissioner of revenue shall certify the total of the tax reductions granted
36.21under this section subdivision 2 for each taxes payable year within each school district to
36.22the commissioner of the Department of Education and the commissioner of education shall
36.23pay the reimbursement amounts to each school district as provided in section 273.1392.
36.24EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
36.25thereafter.

36.26    Sec. 8. Minnesota Statutes 2010, section 273.1384, is amended by adding a subdivision
36.27to read:
36.28    Subd. 7. Credit reductions and limitation; counties and cities. In 2011, the
36.29market value credit reimbursement payment to each county and city authorized under
36.30subdivision 4 may not exceed the reimbursement payment received by the county or city
36.31for taxes payable in 2010.
36.32EFFECTIVE DATE.This section is effective for credit reimbursements in 2011.

37.1    Sec. 9. Minnesota Statutes 2010, section 273.1393, is amended to read:
37.2273.1393 COMPUTATION OF NET PROPERTY TAXES.
37.3    Notwithstanding any other provisions to the contrary, "net" property taxes are
37.4determined by subtracting the credits in the order listed from the gross tax:
37.5    (1) disaster credit as provided in sections 273.1231 to 273.1235;
37.6    (2) powerline credit as provided in section 273.42;
37.7    (3) agricultural preserves credit as provided in section 473H.10;
37.8    (4) enterprise zone credit as provided in section 469.171;
37.9    (5) disparity reduction credit;
37.10    (6) conservation tax credit as provided in section 273.119;
37.11    (7) homestead and agricultural credits credit as provided in section 273.1384;
37.12    (8) taconite homestead credit as provided in section 273.135;
37.13    (9) supplemental homestead credit as provided in section 273.1391; and
37.14    (10) the bovine tuberculosis zone credit, as provided in section 273.113.
37.15    The combination of all property tax credits must not exceed the gross tax amount.
37.16EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
37.17thereafter.

37.18    Sec. 10. Minnesota Statutes 2010, section 273.1398, subdivision 3, is amended to read:
37.19    Subd. 3. Disparity reduction aid. The amount of disparity aid certified in 2012
37.20for each taxing school district within each unique taxing jurisdiction for taxes payable in
37.21the prior year shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using
37.22the class rates for taxes payable in the year for which aid is being computed, to (2) its tax
37.23capacity using the class rates for taxes payable in the year prior to that for which aid is
37.24being computed, both based upon market values for taxes payable in the year prior to
37.25that for which aid is being computed. If the commissioner determines that insufficient
37.26information is available to reasonably and timely calculate the numerator in this ratio
37.27for the first taxes payable year that a class rate change or new class rate is effective,
37.28the commissioner shall omit the effects of that class rate change or new class rate when
37.29calculating this ratio for aid payable in that taxes payable year. For aid payable in the
37.30year following a year for which such omission was made, the commissioner shall use in
37.31the denominator for the class that was changed or created, the tax capacity for taxes
37.32payable two years prior to that in which the aid is payable, based on market values for
37.33taxes payable in the year prior to that for which aid is being computed is equal to the
37.34amount certified for taxes payable in 2011.
38.1EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
38.2thereafter.

38.3    Sec. 11. Minnesota Statutes 2010, section 273.1398, subdivision 4, is amended to read:
38.4    Subd. 4. Disparity reduction credit. (a) Beginning with taxes payable in 1989,
38.5class 4a, class 3a, and class 3b property qualifies for a disparity reduction credit if: (1)
38.6the property is located in a border city that has an enterprise zone designated pursuant
38.7to section 469.168, subdivision 4; (2) the property is located in a city with a population
38.8greater than 2,500 and less than 35,000 according to the 1980 decennial census; (3) the
38.9city is adjacent to a city in another state or immediately adjacent to a city adjacent to a city
38.10in another state; and (4) the adjacent city in the other state has a population of greater than
38.115,000 and less than 75,000 according to the 1980 decennial census.
38.12    (b) For taxes payable in 2012, the credit is 75 percent of an amount sufficient to
38.13reduce (i) the taxes levied on class 4a property to 2.3 percent of the property's market
38.14value and (ii) the tax on class 3a and class 3b property to 2.3 percent of market value.
38.15(c) For taxes payable in 2013, the credit is 50 percent of an amount sufficient to
38.16reduce (i) the taxes levied on class 4a property to 2.3 percent of the property's market
38.17value and (ii) the tax on class 3a and class 3b property to 2.3 percent of market value.
38.18(d) For taxes payable in 2014, the credit is 25 percent of an amount sufficient to
38.19reduce (i) the taxes levied on class 4a property to 2.3 percent of the property's market
38.20value and (ii) the tax on class 3a and class 3b property to 2.3 percent of market value.
38.21    (c) (e) The county auditor shall annually certify the costs of the credits to the
38.22Department of Revenue. The department shall reimburse local governments for the
38.23property taxes forgone as the result of the credits in proportion to their total levies.
38.24EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
38.25thereafter.

38.26    Sec. 12. Minnesota Statutes 2010, section 275.08, subdivision 1a, is amended to read:
38.27    Subd. 1a. Computation of tax capacity. For taxes payable in 1989, the county
38.28auditor shall compute the gross tax capacity for each parcel according to the class rates
38.29specified in section 273.13. The gross tax capacity will be the appropriate class rate
38.30multiplied by the parcel's market value. For taxes payable in 1990 and subsequent years,
38.31The county auditor shall compute the net tax capacity for each parcel according to the
38.32class rates specified in as defined under section 273.13, subdivision 21b. The net tax
38.33capacity will be the appropriate class rate multiplied by the parcel's market value.
39.1EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
39.2thereafter.

39.3    Sec. 13. Minnesota Statutes 2010, section 276.04, subdivision 2, is amended to read:
39.4    Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the
39.5printing of the tax statements. The commissioner of revenue shall prescribe the form of
39.6the property tax statement and its contents. The tax statement must not state or imply
39.7that property tax credits are paid by the state of Minnesota. The statement must contain
39.8a tabulated statement of the dollar amount due to each taxing authority and the amount
39.9of the state tax from the parcel of real property for which a particular tax statement is
39.10prepared. The dollar amounts attributable to the county, the state tax, the voter approved
39.11school tax, the other local school tax, the township or municipality, and the total of
39.12the metropolitan special taxing districts as defined in section 275.065, subdivision 3,
39.13paragraph (i), must be separately stated. The amounts due all other special taxing districts,
39.14if any, may be aggregated except that any levies made by the regional rail authorities in the
39.15county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
39.16398A shall be listed on a separate line directly under the appropriate county's levy. If the
39.17county levy under this paragraph includes an amount for a lake improvement district as
39.18defined under sections 103B.501 to 103B.581, the amount attributable for that purpose
39.19must be separately stated from the remaining county levy amount. In the case of Ramsey
39.20County, if the county levy under this paragraph includes an amount for public library
39.21service under section 134.07, the amount attributable for that purpose may be separated
39.22from the remaining county levy amount. The amount of the tax on homesteads qualifying
39.23under the senior citizens' property tax deferral program under chapter 290B is the total
39.24amount of property tax before subtraction of the deferred property tax amount. The
39.25amount of the tax on contamination value imposed under sections 270.91 to 270.98, if any,
39.26must also be separately stated. The dollar amounts, including the dollar amount of any
39.27special assessments, may be rounded to the nearest even whole dollar. For purposes of this
39.28section whole odd-numbered dollars may be adjusted to the next higher even-numbered
39.29dollar. The amount of market value excluded under section 273.11, subdivision 16, if any,
39.30must also be listed on the tax statement.
39.31    (b) The property tax statements for manufactured homes and sectional structures
39.32taxed as personal property shall contain the same information that is required on the
39.33tax statements for real property.
39.34    (c) Real and personal property tax statements must contain the following information
39.35in the order given in this paragraph. The information must contain the current year tax
40.1information in the right column with the corresponding information for the previous year
40.2in a column on the left:
40.3    (1) the property's estimated market value under section 273.11, subdivision 1;
40.4    (2) the property's taxable market value after reductions under section 273.11,
40.5subdivisions 1a and 16 ;
40.6    (3) the property's gross tax, before credits;
40.7    (4) for homestead residential and agricultural properties, the credits credit under
40.8section 273.1384;
40.9    (5) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135;
40.10273.1391 ; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of
40.11credit received under section 273.135 must be separately stated and identified as "taconite
40.12tax relief"; and
40.13    (6) the net tax payable in the manner required in paragraph (a).
40.14    (d) If the county uses envelopes for mailing property tax statements and if the county
40.15agrees, a taxing district may include a notice with the property tax statement notifying
40.16taxpayers when the taxing district will begin its budget deliberations for the current
40.17year, and encouraging taxpayers to attend the hearings. If the county allows notices to
40.18be included in the envelope containing the property tax statement, and if more than
40.19one taxing district relative to a given property decides to include a notice with the tax
40.20statement, the county treasurer or auditor must coordinate the process and may combine
40.21the information on a single announcement.
40.22EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
40.23thereafter.

40.24    Sec. 14. Minnesota Statutes 2010, section 289A.50, subdivision 1, is amended to read:
40.25    Subdivision 1. General right to refund. (a) Subject to the requirements of this
40.26section and section 289A.40, a taxpayer who has paid a tax in excess of the taxes lawfully
40.27due and who files a written claim for refund will be refunded or credited the overpayment
40.28of the tax determined by the commissioner to be erroneously paid.
40.29(b) The claim must specify the name of the taxpayer, the date when and the period
40.30for which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer
40.31claims was erroneously paid, the grounds on which a refund is claimed, and other
40.32information relative to the payment and in the form required by the commissioner. An
40.33income tax, estate tax, or corporate franchise tax return, or amended return claiming an
40.34overpayment constitutes a claim for refund.
41.1(c) When, in the course of an examination, and within the time for requesting a
41.2refund, the commissioner determines that there has been an overpayment of tax, the
41.3commissioner shall refund or credit the overpayment to the taxpayer and no demand
41.4is necessary. If the overpayment exceeds $1, the amount of the overpayment must
41.5be refunded to the taxpayer. If the amount of the overpayment is less than $1, the
41.6commissioner is not required to refund. In these situations, the commissioner does not
41.7have to make written findings or serve notice by mail to the taxpayer.
41.8(d) If the amount allowable as a credit for withholding, estimated taxes, or dependent
41.9care exceeds the tax against which the credit is allowable, the amount of the excess is
41.10considered an overpayment. The refund allowed by section 290.06, subdivision 23, is also
41.11considered an overpayment. The requirements of section 270C.33 do not apply to the
41.12refunding of such an overpayment shown on the original return filed by a taxpayer.
41.13(e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes,
41.14penalties, and interest reported in the return of the entertainment entity or imposed by
41.15section 290.9201, the excess must be refunded to the entertainment entity. If the excess is
41.16less than $1, the commissioner need not refund that amount.
41.17(f) If the surety deposit required for a construction contract exceeds the liability of
41.18the out-of-state contractor, the commissioner shall refund the difference to the contractor.
41.19(g) An action of the commissioner in refunding the amount of the overpayment does
41.20not constitute a determination of the correctness of the return of the taxpayer.
41.21(h) There is appropriated from the general fund to the commissioner of revenue the
41.22amount necessary to pay refunds allowed under this section.
41.23EFFECTIVE DATE.This section is effective for refund claims based on
41.24contributions made after June 30, 2011.

41.25    Sec. 15. Minnesota Statutes 2010, section 290.01, subdivision 6, is amended to read:
41.26    Subd. 6. Taxpayer. The term "taxpayer" means any person or corporation subject to
41.27a tax imposed by this chapter. For purposes of section 290.06, subdivision 23, the term
41.28"taxpayer" means an individual eligible to vote in Minnesota under section 201.014.
41.29EFFECTIVE DATE.This section is effective for refund claims based on
41.30contributions made after June 30, 2011.

41.31    Sec. 16. Minnesota Statutes 2010, section 290A.03, subdivision 11, is amended to read:
41.32    Subd. 11. Rent constituting property taxes. "Rent constituting property taxes"
41.33means 19 15 percent of the gross rent actually paid in cash, or its equivalent, or the portion
42.1of rent paid in lieu of property taxes, in any calendar year by a claimant for the right
42.2of occupancy of the claimant's Minnesota homestead in the calendar year, and which
42.3rent constitutes the basis, in the succeeding calendar year of a claim for relief under this
42.4chapter by the claimant.
42.5EFFECTIVE DATE.This section is effective for claims based on rent paid in
42.62010 and following years.

42.7    Sec. 17. Minnesota Statutes 2010, section 290A.03, subdivision 13, is amended to read:
42.8    Subd. 13. Property taxes payable. "Property taxes payable" means the property tax
42.9exclusive of special assessments, penalties, and interest payable on a claimant's homestead
42.10after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2,
42.11and any other state paid property tax credits in any calendar year, and after any refund
42.12claimed and allowable under section 290A.04, subdivision 2h, that is first payable in
42.13the year that the property tax is payable. In the case of a claimant who makes ground
42.14lease payments, "property taxes payable" includes the amount of the payments directly
42.15attributable to the property taxes assessed against the parcel on which the house is located.
42.16No apportionment or reduction of the "property taxes payable" shall be required for the
42.17use of a portion of the claimant's homestead for a business purpose if the claimant does not
42.18deduct any business depreciation expenses for the use of a portion of the homestead in the
42.19determination of federal adjusted gross income. For homesteads which are manufactured
42.20homes as defined in section 273.125, subdivision 8, and for homesteads which are park
42.21trailers taxed as manufactured homes under section 168.012, subdivision 9, "property
42.22taxes payable" shall also include 19 15 percent of the gross rent paid in the preceding
42.23year for the site on which the homestead is located. When a homestead is owned by
42.24two or more persons as joint tenants or tenants in common, such tenants shall determine
42.25between them which tenant may claim the property taxes payable on the homestead. If
42.26they are unable to agree, the matter shall be referred to the commissioner of revenue
42.27whose decision shall be final. Property taxes are considered payable in the year prescribed
42.28by law for payment of the taxes.
42.29In the case of a claim relating to "property taxes payable," the claimant must have
42.30owned and occupied the homestead on January 2 of the year in which the tax is payable
42.31and (i) the property must have been classified as homestead property pursuant to section
42.32273.124 , on or before December 15 of the assessment year to which the "property taxes
42.33payable" relate; or (ii) the claimant must provide documentation from the local assessor
42.34that application for homestead classification has been made on or before December 15
43.1of the year in which the "property taxes payable" were payable and that the assessor has
43.2approved the application.
43.3EFFECTIVE DATE.This section is effective for claims based on rent paid in
43.42010 and following years.

43.5    Sec. 18. Minnesota Statutes 2010, section 290A.04, subdivision 2, is amended to read:
43.6    Subd. 2. Homeowners. A claimant whose property taxes payable are in excess
43.7of the percentage of the household income stated below shall pay an amount equal to
43.8the percent of income shown for the appropriate household income level along with the
43.9percent to be paid by the claimant of the remaining amount of property taxes payable.
43.10The state refund equals the amount of property taxes payable that remain, up to the state
43.11refund amount shown below.

43.12 43.13 43.14	Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
43.15	$0 to 1,189	1.0 percent	15 percent	$	1,850
43.16	1,190 to 2,379	1.1 percent	15 percent	$	1,850
43.17	2,380 to 3,589	1.2 percent	15 percent	$	1,800
43.18	3,590 to 4,789	1.3 percent	20 percent	$	1,800
43.19	4,790 to 5,979	1.4 percent	20 percent	$	1,730
43.20	5,980 to 8,369	1.5 percent	20 percent	$	1,730
43.21	8,370 to 9,559	1.6 percent	25 percent	$	1,670
43.22	9,560 to 10,759	1.7 percent	25 percent	$	1,670
43.23	10,760 to 11,949	1.8 percent	25 percent	$	1,610
43.24	11,950 to 13,139	1.9 percent	30 percent	$	1,610
43.25	13,140 to 14,349	2.0 percent	30 percent	$	1,540
43.26	14,350 to 16,739	2.1 percent	30 percent	$	1,540
43.27	16,740 to 17,929	2.2 percent	35 percent	$	1,480
43.28	17,930 to 19,119	2.3 percent	35 percent	$	1,480
43.29	19,120 to 20,319	2.4 percent	35 percent	$	1,420
43.30	20,320 to 25,099	2.5 percent	40 percent	$	1,420
43.31	25,100 to 28,679	2.6 percent	40 percent	$	1,360
43.32	28,680 to 35,849	2.7 percent	40 percent	$	1,360
43.33	35,850 to 41,819	2.8 percent	45 percent	$	1,240
43.34	41,820 to 47,799	3.0 percent	45 percent	$	1,240
43.35	47,800 to 53,779	3.2 percent	45 percent	$	1,110
43.36	53,780 to 59,749	3.5 percent	50 percent	$	990
43.37	59,750 to 65,729	3.5 percent	50 percent	$	870
43.38	65,730 to 69,319	3.5 percent	50 percent	$	740
43.39	69,320 to 71,719	3.5 percent	50 percent	$	610
44.1	71,720 to 74,619	3.5 percent	50 percent	$	500
44.2	74,620 to 77,519	3.5 percent	50 percent	$	370

44.3 44.4 44.5	Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
44.6	$0 to 1,549	1.0 percent	ten percent	$	2,500
44.7	1,550 to 3,089	1.1 percent	ten percent	$	2,500
44.8	3,090 to 4,669	1.2 percent	ten percent	$	2,500
44.9	4,670 to 6,229	1.3 percent	15 percent	$	2,500
44.10	6,230 to 7,769	1.4 percent	15 percent	$	2,500
44.11	7,770 to 10,879	1.5 percent	15 percent	$	2,500
44.12	10,880 to 12,429	1.6 percent	20 percent	$	2,500
44.13	12,430 to 13,989	1.7 percent	20 percent	$	2,500
44.14	13,990 to 15,539	1.8 percent	20 percent	$	2,500
44.15	15,540 to 17,079	1.9 percent	25 percent	$	2,500
44.16	17,080 to 18,659	2.0 percent	25 percent	$	2,500
44.17	18,660 to 21,759	2.1 percent	25 percent	$	2,500
44.18	21,760 to 23,309	2.2 percent	25 percent	$	2,500
44.19	23,310 to 24,859	2.3 percent	25 percent	$	2,500
44.20	24,860 to 26,419	2.4 percent	25 percent	$	2,500
44.21	26,420 to 32,629	2.5 percent	30 percent	$	2,500
44.22	32,630 to 37,279	2.6 percent	30 percent	$	2,500
44.23	37,280 to 46,609	2.7 percent	30 percent	$	2,000
44.24	46,610 to 54,369	2.8 percent	35 percent	$	2,000
44.25	54,370 to 62,139	2.8 percent	35 percent	$	1,750
44.26	62,140 to 69,909	3.0 percent	35 percent	$	1,440
44.27	69,910 to 77,679	3.0 percent	40 percent	$	1,290
44.28	77,680 to 84,449	3.0 percent	40 percent	$	1,130
44.29	85,450 to 90,119	3.5 percent	45 percent	$	960
44.30	90,120 to 93,239	3.5 percent	45 percent	$	790
44.31	93,240 to 97,009	3.5 percent	50 percent	$	650
44.32	97,010 to 100,779	3.5 percent	50 percent	$	480

44.33    The payment made to a claimant shall be the amount of the state refund calculated
44.34under this subdivision. No payment is allowed if the claimant's household income is
44.35$77,520 $100,780 or more.
44.36EFFECTIVE DATE.This section is effective beginning with refunds based on
44.37taxes payable in 2012.

44.38    Sec. 19. Minnesota Statutes 2010, section 290A.04, subdivision 4, is amended to read:
45.1    Subd. 4. Inflation adjustment. (a) Beginning for property tax refunds payable in
45.2calendar year 2002, the commissioner shall annually adjust the dollar amounts of the
45.3income thresholds and the maximum refunds under subdivisions 2 and 2a for inflation.
45.4The commissioner shall make the inflation adjustments in accordance with section 1(f) of
45.5the Internal Revenue Code, except that for purposes of this subdivision the percentage
45.6increase shall be determined as provided in this subdivision.
45.7(b) In adjusting the dollar amounts of the income thresholds and the maximum
45.8refunds under subdivision 2 for inflation, the percentage increase shall be determined from
45.9the year ending on June 30, 2011, to the year ending on June 30 of the year preceding that
45.10in which the refund is payable.
45.11(c) In adjusting the dollar amounts of the income thresholds and the maximum
45.12refunds under subdivision 2a for inflation, the percentage increase shall be determined
45.13from the year ending on June 30, 2000, to the year ending on June 30 of the year preceding
45.14that in which the refund is payable.
45.15(d) The commissioner shall use the appropriate percentage increase to annually
45.16adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for
45.17inflation without regard to whether or not the income tax brackets are adjusted for inflation
45.18in that year. The commissioner shall round the thresholds and the maximum amounts,
45.19as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall
45.20round it up to the next $10 amount.
45.21(e) The commissioner shall annually announce the adjusted refund schedule at the
45.22same time provided under section 290.06. The determination of the commissioner under
45.23this subdivision is not a rule under the Administrative Procedure Act.
45.24EFFECTIVE DATE.This section is effective beginning for refunds based on
45.25taxes payable in 2013.

45.26    Sec. 20. Minnesota Statutes 2010, section 477A.0124, is amended by adding a
45.27subdivision to read:
45.28    Subd. 6. Aid payments in 2011 and 2012. Notwithstanding total aids calculated or
45.29certified for 2011 under subdivisions 3, 4, and 5, for 2011 and 2012, each county shall
45.30receive an aid distribution under this section equal to the lesser of (1) the total amount of
45.31aid it received under this section in 2010 after the reductions under Minnesota Statutes,
45.32sections 477A.0133 and 477A.0134, or (2) the total amount the county is certified to
45.33receive in 2011 under subdivisions 3 to 5.
46.1EFFECTIVE DATE.This section is effective for aids payable in calendar year
46.22011 and 2012.

46.3    Sec. 21. Minnesota Statutes 2010, section 477A.013, subdivision 9, is amended to read:
46.4    Subd. 9. City aid distribution. (a) In calendar year 2009 and thereafter, each
46.5city shall receive an aid distribution equal to the sum of (1) the city formula aid under
46.6subdivision 8, and (2) its city aid base.
46.7    (b) For aids payable in 2011 2013 only, the total aid in the previous year for any
46.8city shall mean the amount of aid it was certified to receive for aids payable in 2010 2012
46.9under this section minus the amount of its aid reduction under section 477A.0134. For aids
46.10payable in 2012 2014 and thereafter, the total aid in the previous year for any city means
46.11the amount of aid it was certified to receive under this section in the previous payable year.
46.12    (c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed
46.13the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution
46.14plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total
46.15aid for any city with a population of 2,500 or more may not be less than its total aid under
46.16this section in the previous year minus the lesser of $10 multiplied by its population, or ten
46.17percent of its net levy in the year prior to the aid distribution.
46.18    (d) For aids payable in 2010 and thereafter, the total aid for a city with a population
46.19less than 2,500 must not be less than the amount it was certified to receive in the
46.20previous year minus the lesser of $10 multiplied by its population, or five percent of its
46.212003 certified aid amount. For aids payable in 2009 only, the total aid for a city with a
46.22population less than 2,500 must not be less than what it received under this section in the
46.23previous year unless its total aid in calendar year 2008 was aid under section 477A.011,
46.24subdivision 36, paragraph (s), in which case its minimum aid is zero.
46.25    (e) A city's aid loss under this section may not exceed $300,000 in any year in
46.26which the total city aid appropriation under section 477A.03, subdivision 2a, is equal or
46.27greater than the appropriation under that subdivision in the previous year, unless the
46.28city has an adjustment in its city net tax capacity under the process described in section
46.29469.174, subdivision 28 .
46.30    (f) If a city's net tax capacity used in calculating aid under this section has decreased
46.31in any year by more than 25 percent from its net tax capacity in the previous year due to
46.32property becoming tax-exempt Indian land, the city's maximum allowed aid increase
46.33under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the
46.34year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease
46.35resulting from the property becoming tax exempt.
47.1EFFECTIVE DATE.This section is effective for aids payable in calendar year
47.22012 and thereafter.

47.3    Sec. 22. Minnesota Statutes 2010, section 477A.013, is amended by adding a
47.4subdivision to read:
47.5    Subd. 11. Aid payments in 2011 and 2012. Notwithstanding aids calculated or
47.6certified for 2011 under subdivision 9, for 2011 and 2012, each city shall receive an aid
47.7distribution under this section equal to the lesser of (1) the total amount of aid it received
47.8under this section in 2010 after the reductions under sections 477A.0133 and 477A.0134,
47.9and reduced by the amount of payments made under section 477A.011, subdivision
47.1036, paragraphs (y) and (z), or (2) the amount it was certified to receive in 2011 under
47.11subdivision 9. In 2011 only, a city that qualifies for the aid base adjustment under section
47.12477A.011, subdivision 36, paragraph (aa), shall receive the amount that it was certified to
47.13receive in 2011. In 2012, a city that qualifies for the aid base adjustment under section
47.14477A.011, subdivision 36, paragraph (aa), shall receive the amount that it was certified
47.15to receive in 2011, minus the aid base adjustment provided under section 477A.011,
47.16subdivision 36, paragraph (aa).
47.17EFFECTIVE DATE.This section is effective for aids payable in calendar years
47.182011 and 2012.

47.19    Sec. 23. Minnesota Statutes 2010, section 477A.03, is amended to read:
47.20477A.03 APPROPRIATION.
47.21    Subd. 2. Annual appropriation. A sum sufficient to discharge the duties imposed
47.22by sections 477A.011 to 477A.014 is annually appropriated from the general fund to the
47.23commissioner of revenue.
47.24    Subd. 2a. Cities. For aids payable in 2011 2013 and thereafter, the total aid paid
47.25under section 477A.013, subdivision 9, is $527,100,646 $426,438,012.
47.26    Subd. 2b. Counties. (a) For aids payable in 2011 2013 and thereafter, the total aid
47.27payable under section 477A.0124, subdivision 3, is $96,395,000 $80,795,000. Each
47.28calendar year, $500,000 shall be retained by the commissioner of revenue to make
47.29reimbursements to the commissioner of management and budget for payments made
47.30under section 611.27. For calendar year 2004, the amount shall be in addition to the
47.31payments authorized under section 477A.0124, subdivision 1. For calendar year 2005
47.32and subsequent years, the amount shall be deducted from the appropriation under
47.33this paragraph. The reimbursements shall be to defray the additional costs associated
48.1with court-ordered counsel under section 611.27. Any retained amounts not used for
48.2reimbursement in a year shall be included in the next distribution of county need aid
48.3that is certified to the county auditors for the purpose of property tax reduction for the
48.4next taxes payable year.
48.5    (b) For aids payable in 2011 2013 and thereafter, the total aid under section
48.6477A.0124, subdivision 4 , is $101,309,575 $84,909,575. The commissioner of
48.7management and budget shall bill the commissioner of revenue for the cost of preparation
48.8of local impact notes as required by section 3.987, not to exceed $207,000 in fiscal year
48.92004 and thereafter. The commissioner of education shall bill the commissioner of
48.10revenue for the cost of preparation of local impact notes for school districts as required by
48.11section 3.987, not to exceed $7,000 in fiscal year 2004 and thereafter. The commissioner
48.12of revenue shall deduct the amounts billed under this paragraph from the appropriation
48.13under this paragraph. The amounts deducted are appropriated to the commissioner of
48.14management and budget and the commissioner of education for the preparation of local
48.15impact notes.
48.16EFFECTIVE DATE.This section is effective for aids payable in calendar year
48.172012 and thereafter.

48.18    Sec. 24. Minnesota Statutes 2010, section 477A.11, subdivision 1, is amended to read:
48.19    Subdivision 1. Terms. For the purpose of sections 477A.11 to 477A.145 477A.14,
48.20the terms defined in this section have the meanings given them.
48.21EFFECTIVE DATE.This section is effective for aids payable in calendar year
48.222011 and thereafter.

48.23    Sec. 25. Minnesota Statutes 2010, section 477A.12, subdivision 1, is amended to read:
48.24    Subdivision 1. Types of land; payments. (a) As an offset for expenses incurred
48.25by counties and towns in support of natural resources lands, the following amounts are
48.26annually appropriated to the commissioner of natural resources from the general fund for
48.27transfer to the commissioner of revenue. The commissioner of revenue shall pay the
48.28transferred funds to counties as required by sections 477A.11 to 477A.145 477A.14.
48.29The amounts are:
48.30(1) for acquired natural resources land, $3, as adjusted for inflation under section
48.31477A.145, $4.363 multiplied by the total number of acres of acquired natural resources
48.32land or, at the county's option three-fourths of one 0.6375 percent of the appraised value of
48.33all acquired natural resources land in the county, whichever is greater;
49.1(2) 75 cents, as adjusted for inflation under section 477A.145, $1.091 multiplied by
49.2the number of acres of county-administered other natural resources land;
49.3(3) 75 cents, as adjusted for inflation under section 477A.145, $1.091 multiplied by
49.4the total number of acres of land utilization project land; and
49.5(4) 37.5 cents, as adjusted for inflation under section 477A.145, 54.5 cents multiplied
49.6by the number of acres of commissioner-administered other natural resources land located
49.7in each county as of July 1 of each year prior to the payment year.
49.8(b) The amount determined under paragraph (a), clause (1), is payable for land
49.9that is acquired from a private owner and owned by the Department of Transportation
49.10for the purpose of replacing wetland losses caused by transportation projects, but only
49.11if the county contains more than 500 acres of such land at the time the certification is
49.12made under subdivision 2.
49.13EFFECTIVE DATE.This section is effective for aids payable in calendar year
49.142011 and thereafter.

49.15    Sec. 26. Minnesota Statutes 2010, section 477A.14, subdivision 1, is amended to read:
49.16    Subdivision 1. General distribution. Except as provided in subdivision 2 or in
49.17section 97A.061, subdivision 5, 40 percent of the total payment to the county shall be
49.18deposited in the county general revenue fund to be used to provide property tax levy
49.19reduction. The remainder shall be distributed by the county in the following priority:
49.20(a) 37.5 cents, as adjusted for inflation under section 477A.145, 54.5 cents for
49.21each acre of county-administered other natural resources land shall be deposited in a
49.22resource development fund to be created within the county treasury for use in resource
49.23development, forest management, game and fish habitat improvement, and recreational
49.24development and maintenance of county-administered other natural resources land. Any
49.25county receiving less than $5,000 annually for the resource development fund may elect to
49.26deposit that amount in the county general revenue fund;
49.27(b) From the funds remaining, within 30 days of receipt of the payment to the
49.28county, the county treasurer shall pay each organized township 30 cents, as adjusted for
49.29inflation under section 477A.145, 43.6 cents for each acre of acquired natural resources
49.30land and each acre of land described in section 477A.12, subdivision 1, paragraph (b), and
49.317.5 cents, as adjusted for inflation under section 477A.145, 10.9 cents for each acre of
49.32other natural resources land and each acre of land utilization project land located within its
49.33boundaries. Payments for natural resources lands not located in an organized township
49.34shall be deposited in the county general revenue fund. Payments to counties and townships
49.35pursuant to this paragraph shall be used to provide property tax levy reduction, except
50.1that of the payments for natural resources lands not located in an organized township, the
50.2county may allocate the amount determined to be necessary for maintenance of roads in
50.3unorganized townships. Provided that, if the total payment to the county pursuant to
50.4section 477A.12 is not sufficient to fully fund the distribution provided for in this clause,
50.5the amount available shall be distributed to each township and the county general revenue
50.6fund on a pro rata basis; and
50.7(c) Any remaining funds shall be deposited in the county general revenue fund.
50.8Provided that, if the distribution to the county general revenue fund exceeds $35,000, the
50.9excess shall be used to provide property tax levy reduction.
50.10EFFECTIVE DATE.This section is effective for aids payable in calendar year
50.112011 and thereafter.

50.12    Sec. 27. Minnesota Statutes 2010, section 477A.17, is amended to read:
50.13477A.17 LAKE VERMILION STATE PARK AND SOUDAN
50.14UNDERGROUND MINE STATE PARK; ANNUAL PAYMENTS.
50.15    (a) Beginning in fiscal year 2012, in lieu of the payment amount provided under
50.16section 477A.12, subdivision 1, clause (1), the county shall receive an annual payment for
50.17land acquired for Lake Vermilion State Park, established in section 85.012, subdivision
50.1838a, and land within the boundary of Soudan Underground Mine State Park, established
50.19in section 85.012, subdivision 53a, equal to 1.5 1.275 percent of the appraised value of
50.20the land.
50.21    (b) For the purposes of this section, the appraised value of the land acquired for
50.22Lake Vermilion State Park for the first five years after acquisition shall be the purchase
50.23price of the land, plus the value of any portion of the land that is acquired by donation.
50.24The appraised value must be redetermined by the county assessor every five years after
50.25the land is acquired.
50.26    (c) The annual payments under this section shall be distributed to the taxing
50.27jurisdictions containing the property as follows: one-third to the school districts; one-third
50.28to the town; and one-third to the county. The payment to school districts is not a county
50.29apportionment under section 127A.34 and is not subject to aid recapture. Each of those
50.30taxing jurisdictions may use the payments for their general purposes.
50.31    (d) Except as provided in this section, the payments shall be made as provided
50.32in sections 477A.11 to 477A.13.
50.33EFFECTIVE DATE.This section is effective for aids payable in calendar year
50.342011 and thereafter.

51.1    Sec. 28. ADMINISTRATION OF PROPERTY TAX REFUND CLAIMS; 2011.
51.2In administering sections 16 and 17 for claims for refunds submitted using 19
51.3percent of gross rent as rent constituting property taxes under prior law, the commissioner
51.4shall recalculate and pay the refund amounts using 15 percent of gross rent. The
51.5commissioner shall notify the claimant that the recalculation was mandated by action
51.6of the 2011 Legislature.
51.7EFFECTIVE DATE.This section is effective the day following final enactment.

51.8    Sec. 29. PROPERTY TAX STATEMENT FOR TAXES PAYABLE IN 2012 ONLY.
51.9For the purposes of the property tax statements required under Minnesota Statutes,
51.10section 276.04, subdivision 2, for taxes payable in 2012 only, the gross tax amount shown
51.11for the previous year is the gross tax minus the residential homestead market value credit.
51.12EFFECTIVE DATE.This section is effective for taxes payable in 2012 only.

51.13    Sec. 30. CONSOLIDATION GRANTS; APPROPRIATION.
51.14    Subdivision 1. Definition. For the purposes of this section, "local government"
51.15means a county or a home rule charter or statutory city.
51.16    Subd. 2. Grants. The state auditor may make a consolidation grant to a local
51.17government that is planning to consolidate with at least one other contiguous local
51.18government of the same type. The grants shall be made on a first-come first-served
51.19basis. The state auditor shall determine the form and content of the application and
51.20grant agreements. An application must contain a resolution adopted by the governing
51.21body of each participating local government supporting the consolidation of the local
51.22governments. The amount of the grant shall be determined by the state auditor based on
51.23the estimated cost to the local governments of the consolidation process and their need for
51.24state financial assistance to accomplish the consolidation. The maximum grant amount is
51.25$100,000 per local government.
51.26    Subd. 3. Report. The state auditor must report to the governor and legislative
51.27committees with jurisdiction over local government governance and local government
51.28taxes and finance on the consolidation grants made and how the money was used. An
51.29interim report is due February 1, 2012, and a final report is due December 15, 2012.
52.1    Subd. 4. Appropriation. $3,500,000 is appropriated from the general fund to the
52.2state auditor for each of the fiscal years 2012 and 2013, to make grants to counties and
52.3cities as provided in this section.

52.4    Sec. 31. REPEALER.
52.5(a) Minnesota Statutes 2010, sections 10A.322, subdivision 4; and 13.4967,
52.6subdivision 2, are repealed.
52.7(b) Minnesota Statutes 2010, section 290.06, subdivision 23, is repealed.
52.8(c) Minnesota Statutes 2010, sections 275.295; and 477A.145, are repealed.
52.9(d) Minnesota Statutes 2010, section 273.1384, subdivision 6, is repealed.
52.10(e) Minnesota Statutes 2010, section 273.1398, subdivision 4, is repealed.
52.11(f) Minnesota Statutes 2010, sections 290C.01; 290C.02; 290C.03; 290C.04;
52.12290C.05; 290C.055; 290C.06; 290C.07; 290C.08; 290C.09; 290C.10; 290C.11; 290C.12;
52.13and 290C.13, are repealed.
52.14EFFECTIVE DATE.Paragraph (a) is effective the day following final enactment.
52.15Paragraph (b) is effective for refund claims based on contributions made after June 30,
52.162011. Paragraph (c) is effective for aids payable in 2011 and thereafter. Paragraph (d)
52.17is effective for taxes payable in 2012 and thereafter. Paragraph (e) is effective for taxes
52.18payable in 2015 and thereafter. Paragraph (f) is effective July 1, 2011, and the covenants
52.19under the program are void on that date. No later than 60 days after enactment of this
52.20section, the commissioner of revenue shall issue a document to each enrollee immediately
52.21releasing the land from the covenant as provided in Minnesota Statutes 2010, section
52.22290C.04, paragraph (c).


52.25    Section 1. Minnesota Statutes 2010, section 270C.991, subdivision 4, is amended to
52.26read:
52.27    Subd. 4. Property tax working group. (a) A property tax working group is
52.28established as provided in this subdivision. The goals of the working group are:
52.29(1) to investigate ways to simplify the property tax system and make advisory
52.30recommendations on ways to make the system more understandable;
52.31(2) to reexamine the property tax calendar to determine what changes could be made
52.32to shorten the two-year cycle from assessment through property tax collection; and
53.1(3) to determine the cost versus the benefits of the various property tax components,
53.2including property classifications, credits, aids, exclusions, exemptions, and abatements,
53.3and to suggest ways to achieve some of the goals in simpler and more cost-efficient ways.
53.4(b) The working group shall analyze and present specific recommendations on:
53.5(1) an equitable and efficient approach to the elimination of the metropolitan area
53.6fiscal disparities system under chapter 473F; and
53.7(2) a reasonable approach to the distribution of the proceeds of the taconite
53.8production tax and the net proceeds tax on nonferrous minerals that analyzes the imposition
53.9of those taxes in lieu of property taxes on mining property, and suggests a formula for fair
53.10distribution of the tax proceeds between the local governments and the state.
53.11(b) (c) The 13-member working group shall consist of the following members:
53.12(1) two state representatives, both appointed by the chair of the house of
53.13representatives Taxes Committee, one from the majority party and one from the largest
53.14minority party;
53.15(2) two senators appointed by the Subcommittee on Committees of the Senate Rules
53.16and Administration Committee, one from the majority party and one from the largest
53.17minority party;
53.18(3) the commissioner of revenue, or designee;
53.19(4) one person appointed by the Association of Minnesota Counties;
53.20(5) one person appointed by the League of Minnesota Cities;
53.21(6) one person appointed by the Minnesota Association of Townships;
53.22(7) one person appointed by the Minnesota Chamber of Commerce;
53.23(8) one person appointed by the Minnesota Association of Assessing Officers;
53.24(9) two homeowners, one who is under 65 years of age, and one who is 65 years of
53.25age or older, both appointed by the commissioner of revenue; and
53.26(10) one person jointly appointed by the Minnesota Farm Bureau and the Minnesota
53.27Farmers Union.
53.28The commissioner of revenue shall chair the initial meeting, and the working
53.29group shall elect a chair at that initial meeting. The working group will meet at the call
53.30of the chair. Members of the working group shall serve without compensation. The
53.31commissioner of revenue must provide administrative support to the working group.
53.32Chapter 13D does not apply to meetings of the working group. Meetings of the working
53.33group must be open to the public and the working group must provide notice of a meeting
53.34to potentially interested persons at least seven days before the meeting. A meeting of the
53.35council occurs when a quorum is present.
54.1(c) (d) The working group shall make its advisory recommendations to the chairs of
54.2the house of representatives and senate Taxes Committees on or before February 1, 2012, at
54.3which time the working group shall be finished and this subdivision expires. The advisory
54.4recommendations should be reviewed by the Taxes Committee under subdivision 5.

54.5    Sec. 2. Minnesota Statutes 2010, section 272.02, subdivision 39, is amended to read:
54.6    Subd. 39. Economic development; public purpose. The holding of property by a
54.7political subdivision of the state for later resale for economic development purposes shall
54.8be considered a public purpose in accordance with subdivision 8 for a period not to exceed
54.9eight ten years, except that for property located in a city of 5,000 population or under that
54.10is located outside of the metropolitan area as defined in section 473.121, subdivision 2, the
54.11period must not exceed 15 years.
54.12The holding of property by a political subdivision of the state for later resale (1)
54.13which is purchased or held for housing purposes, or (2) which meets the conditions
54.14described in section 469.174, subdivision 10, shall be considered a public purpose in
54.15accordance with subdivision 8.
54.16The governing body of the political subdivision which acquires property which is
54.17subject to this subdivision shall after the purchase of the property certify to the city or
54.18county assessor whether the property is held for economic development purposes or
54.19housing purposes, or whether it meets the conditions of section 469.174, subdivision 10.
54.20If the property is acquired for economic development purposes and buildings or other
54.21improvements are constructed after acquisition of the property, and if more than one-half
54.22of the floor space of the buildings or improvements which is available for lease to or use
54.23by a private individual, corporation, or other entity is leased to or otherwise used by
54.24a private individual, corporation, or other entity the provisions of this subdivision shall
54.25not apply to the property. This subdivision shall not create an exemption from section
54.26272.01, subdivision 2 ; 272.68; 273.19; or 469.040, subdivision 3; or other provision of
54.27law providing for the taxation of or for payments in lieu of taxes for publicly held property
54.28which is leased, loaned, or otherwise made available and used by a private person.
54.29EFFECTIVE DATE.This section is effective for taxes levied in 2011, payable
54.30in 2012, and thereafter.

54.31    Sec. 3. Minnesota Statutes 2010, section 272.02, is amended by adding a subdivision
54.32to read:
54.33    Subd. 95. Electric generation facility; personal property. (a) Notwithstanding
54.34subdivision 9, clause (a), and section 453.54, subdivision 20, attached machinery and other
55.1personal property that is part of a multiple reciprocating engine electric generation facility
55.2that adds more than 20 and less than 30 megawatts of installed capacity at a site where
55.3there is presently more than ten megawatts and fewer than 15 megawatts of installed
55.4capacity and that meets the requirements of this subdivision is exempt from taxation and
55.5from payments in lieu of taxation. At the time of construction, the facility must:
55.6(1) be designed to utilize natural gas as a primary fuel;
55.7(2) be owned and operated by a municipal power agency as defined in section
55.8453.52, subdivision 8;
55.9(3) be located within one mile of an existing natural gas pipeline;
55.10(4) be designed to have black start capability and to furnish emergency backup
55.11power service to the city in which it is located;
55.12(5) satisfy a resource deficiency identified in an approved integrated resource plan
55.13filed under section 216B.2422; and
55.14(6) have received, by resolution, the approval of the governing bodies of the city
55.15and county in which it is located for the exemption of personal property provided by
55.16this subdivision.
55.17(b) Construction of the facility must be commenced after December 31, 2011, and
55.18before January 1, 2015. Property eligible for this exemption does not include (i) electric
55.19transmission lines and interconnections or gas pipelines and interconnections appurtenant
55.20to the property or the facility; or (ii) property located on the site on the enactment date
55.21of this subdivision.
55.22EFFECTIVE DATE.This section is effective for assessments in 2012, taxes
55.23payable in 2013, and thereafter.

55.24    Sec. 4. Minnesota Statutes 2010, section 273.111, is amended by adding a subdivision
55.25to read:
55.26    Subd. 17. Appeal. If an assessor denies an application for valuation under this
55.27section, the applicant may appeal the decision to the local board of appeal and equalization
55.28as provided under section 274.01, subdivision 1, paragraph (h).
55.29EFFECTIVE DATE.This section is effective for appeals denied after June 30,
55.302011.

55.31    Sec. 5. Minnesota Statutes 2010, section 273.114, subdivision 2, is amended to read:
55.32    Subd. 2. Requirements. Class 2a or 2b property that had been assessed properly
55.33classified under Minnesota Statutes 2006, section 273.111, or that is part of an agricultural
56.1homestead under Minnesota Statutes, section 273.13, subdivision 23, paragraph (a), is
56.2entitled to valuation and tax deferment under this section if:
56.3(1) the land consists of at least ten acres;
56.4(2) a conservation assessment plan for the land must be prepared by an approved
56.5plan writer and implemented during the period in which the land is subject to valuation
56.6and deferment under this section;
56.7(3) the land must be enrolled for a minimum of eight years;
56.8(4) (2) there are no delinquent property taxes on the land; and
56.9(5) (3) the property is not also enrolled for valuation and deferment under section
56.10273.111 or 273.112, or chapter 290C or 473H.
56.11EFFECTIVE DATE.This section is effective the day following final enactment.

56.12    Sec. 6. Minnesota Statutes 2010, section 273.114, subdivision 5, is amended to read:
56.13    Subd. 5. Application and covenant agreement. (a) Application for deferment
56.14of taxes and assessment under this section shall be filed by May 1 of the year prior to
56.15the year in which the taxes are payable. Any application filed under this subdivision
56.16and granted shall continue in effect for subsequent years until the termination of the
56.17covenant agreement under paragraph (b) property is withdrawn or no longer qualifies.
56.18The application must be filed with the assessor of the taxing district in which the real
56.19property is located on the form prescribed by the commissioner of revenue. Each
56.20application must include the most recent available aerial photograph or satellite image
56.21of the property provided by the Farm Service Agency of the United States Department
56.22of Agriculture that clearly delineates the land that is to be enrolled. The application
56.23form must contain a statement setting forth the consequences to the property owner of
56.24termination of qualification of property under the rural preserve program, together with a
56.25recommendation that land that is likely to be changed to a nonqualifying use during the
56.26period of enrollment should not be included in the application. The assessor may require
56.27proof by affidavit or otherwise that the property qualifies under subdivision 2.
56.28    (b) The owner of the property must sign a covenant agreement that is filed with the
56.29county recorder and recorded in the county where the property is located. The covenant
56.30agreement must include all of the following:
56.31    (1) legal description of the area to which the covenant applies;
56.32    (2) name and address of the owner;
56.33    (3) a statement that the land described in the covenant must be kept as rural preserve
56.34land, which meets the requirements of subdivision 2, for the duration of the covenant;
57.1    (4) a statement that the landowner may terminate the covenant agreement by
57.2notifying the county assessor in writing three years in advance of the date of proposed
57.3termination, provided that the notice of intent to terminate may not be given at any time
57.4before the land has been subject to the covenant for a period of five years;
57.5    (5) a statement that the covenant is binding on the owner or the owner's successor or
57.6assigns and runs with the land; and
57.7    (6) a witnessed signature of the owner, agreeing by covenant, to maintain the land as
57.8described in subdivision 2.
57.9(c) After a covenant under this section has been terminated, the land that had been
57.10subject to the covenant is ineligible for subsequent valuation under this section for a
57.11period of three years after the termination.
57.12EFFECTIVE DATE.This section is effective the day following final enactment.

57.13    Sec. 7. Minnesota Statutes 2010, section 273.114, subdivision 6, is amended to read:
57.14    Subd. 6. Additional taxes. Upon termination of a covenant agreement in
57.15subdivision 5, paragraph (b), the land to which the covenant applied When real property
57.16which is being, or has been valued and assessed under this section no longer qualifies
57.17under subdivision 2, the portion no longer qualifying shall be subject to additional taxes
57.18in the amount equal to the difference between the taxes determined in accordance with
57.19subdivision 3 and the amount determined under subdivision 4, provided that the amount
57.20determined under subdivision 4 shall not be greater than it would have been had the
57.21actual bona fide sale price of the real property at an arm's-length transaction been used in
57.22lieu of the market value determined under subdivision 4. The additional taxes shall be
57.23extended against the property on the tax list for the current year, provided that no interest
57.24or penalties shall be levied on the additional taxes if timely paid and that the additional
57.25taxes shall only be levied with respect to the current year plus two prior years that the
57.26property has been valued and assessed under this section.
57.27EFFECTIVE DATE.This section is effective the day following final enactment.

57.28    Sec. 8. Minnesota Statutes 2010, section 273.13, subdivision 34, is amended to read:
57.29    Subd. 34. Homestead of disabled veteran. (a) All or a portion of the market value
57.30of property owned by a veteran or by the veteran and the veteran's spouse qualifying
57.31for homestead classification under subdivision 22 or 23 is excluded in determining the
57.32property's taxable market value if it serves as the homestead of a military veteran, as
57.33defined in section 197.447, who has a service-connected disability of 70 percent or more.
58.1To qualify for exclusion under this subdivision, the veteran must have been honorably
58.2discharged from the United States armed forces, as indicated by United States Government
58.3Form DD214 or other official military discharge papers, and must be certified by the
58.4United States Veterans Administration as having a service-connected disability.
58.5    (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is
58.6excluded, except as provided in clause (2); and
58.7    (2) for a total (100 percent) and permanent disability, $300,000 of market value is
58.8excluded.
58.9    (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
58.10clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
58.11spouse holds the legal or beneficial title to the homestead and permanently resides there,
58.12the exclusion shall carry over to the benefit of the veteran's spouse for one five additional
58.13assessment year taxes payable years or until such time as the spouse sells, transfers,
58.14remarries, or otherwise disposes of the property, whichever comes first. To qualify for
58.15the exemption under this paragraph, the surviving spouse must apply annually to the
58.16assessor by July 1 of the assessment year.
58.17    (d) In the case of an agricultural homestead, only the portion of the property
58.18consisting of the house and garage and immediately surrounding one acre of land qualifies
58.19for the valuation exclusion under this subdivision.
58.20    (e) A property qualifying for a valuation exclusion under this subdivision is not
58.21eligible for the credit under section 273.1384, subdivision 1, or classification under
58.22subdivision 22, paragraph (b).
58.23    (f) To qualify for a valuation exclusion under this subdivision a property owner must
58.24apply to the assessor by July 1 of each assessment year, except that an annual reapplication
58.25is not required once a property has been accepted for a valuation exclusion under paragraph
58.26(b), clause (2), and the property continues to qualify until there is a change in ownership.
58.27EFFECTIVE DATE.This section is effective for taxes levied in 2010, payable in
58.282011, and thereafter, and applies to homesteads that initially qualified for the exclusion
58.29for taxes payable in 2009 and thereafter.

58.30    Sec. 9. Minnesota Statutes 2010, section 274.01, subdivision 1, is amended to read:
58.31    Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town
58.32board of a town, or the council or other governing body of a city, is the board of appeal
58.33and equalization except (1) in cities whose charters provide for a board of equalization or
58.34(2) in any city or town that has transferred its local board of review power and duties to
58.35the county board as provided in subdivision 3. The county assessor shall fix a day and
59.1time when the board or the board of equalization shall meet in the assessment districts
59.2of the county. Notwithstanding any law or city charter to the contrary, a city board of
59.3equalization shall be referred to as a board of appeal and equalization. On or before
59.4February 15 of each year the assessor shall give written notice of the time to the city or
59.5town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings
59.6must be held between April 1 and May 31 each year, provided that the board may review
59.7appeals of denials of green acres treatment as provided in paragraph (h) at any time.
59.8The clerk shall give published and posted notice of the meeting at least ten days before
59.9the date of the meeting.
59.10    The board shall meet at the office of the clerk to review the assessment and
59.11classification of property in the town or city. No changes in valuation or classification
59.12which are intended to correct errors in judgment by the county assessor may be made by
59.13the county assessor after the board has adjourned in those cities or towns that hold a
59.14local board of review; however, corrections of errors that are merely clerical in nature or
59.15changes that extend homestead treatment to property are permitted after adjournment until
59.16the tax extension date for that assessment year. The changes must be fully documented and
59.17maintained in the assessor's office and must be available for review by any person. A copy
59.18of the changes made during this period in those cities or towns that hold a local board of
59.19review must be sent to the county board no later than December 31 of the assessment year.
59.20    (b) The board shall determine whether the taxable property in the town or city has
59.21been properly placed on the list and properly valued by the assessor. If real or personal
59.22property has been omitted, the board shall place it on the list with its market value, and
59.23correct the assessment so that each tract or lot of real property, and each article, parcel,
59.24or class of personal property, is entered on the assessment list at its market value. No
59.25assessment of the property of any person may be raised unless the person has been
59.26duly notified of the intent of the board to do so. On application of any person feeling
59.27aggrieved, the board shall review the assessment or classification, or both, and correct
59.28it as appears just. The board may not make an individual market value adjustment or
59.29classification change that would benefit the property if the owner or other person having
59.30control over the property has refused the assessor access to inspect the property and the
59.31interior of any buildings or structures as provided in section 273.20. A board member
59.32shall not participate in any actions of the board which result in market value adjustments
59.33or classification changes to property owned by the board member, the spouse, parent,
59.34stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew,
59.35or niece of a board member, or property in which a board member has a financial interest.
59.36The relationship may be by blood or marriage.
60.1    (c) A local board may reduce assessments upon petition of the taxpayer but the total
60.2reductions must not reduce the aggregate assessment made by the county assessor by more
60.3than one percent. If the total reductions would lower the aggregate assessments made by
60.4the county assessor by more than one percent, none of the adjustments may be made. The
60.5assessor shall correct any clerical errors or double assessments discovered by the board
60.6without regard to the one percent limitation.
60.7    (d) A local board does not have authority to grant an exemption or to order property
60.8removed from the tax rolls.
60.9    (e) A majority of the members may act at the meeting, and adjourn from day to day
60.10until they finish hearing the cases presented. The assessor shall attend, with the assessment
60.11books and papers, and take part in the proceedings, but must not vote. The county assessor,
60.12or an assistant delegated by the county assessor shall attend the meetings. The board shall
60.13list separately, on a form appended to the assessment book, all omitted property added
60.14to the list by the board and all items of property increased or decreased, with the market
60.15value of each item of property, added or changed by the board, placed opposite the item.
60.16The county assessor shall enter all changes made by the board in the assessment book.
60.17    (f) Except as provided in subdivision 3, if a person fails to appear in person, by
60.18counsel, or by written communication before the board after being duly notified of the
60.19board's intent to raise the assessment of the property, or if a person feeling aggrieved by an
60.20assessment or classification fails to apply for a review of the assessment or classification,
60.21the person may not appear before the county board of appeal and equalization for a review
60.22of the assessment or classification. This paragraph does not apply if an assessment was
60.23made after the local board meeting, as provided in section 273.01, or if the person can
60.24establish not having received notice of market value at least five days before the local
60.25board meeting.
60.26    (g) The local board must complete its work and adjourn within 20 days from the
60.27time of convening stated in the notice of the clerk, unless a longer period is approved by
60.28the commissioner of revenue. No action taken after that date is valid. All complaints
60.29about an assessment or classification made after the meeting of the board must be heard
60.30and determined by the county board of equalization. A nonresident may, at any time,
60.31before the meeting of the board file written objections to an assessment or classification
60.32with the county assessor. The objections must be presented to the board at its meeting by
60.33the county assessor for its consideration.
60.34(h) The local board may, but is not required to, review appeals from property owners
60.35of denials by assessors of applications for valuation under section 273.111. If it intends
60.36to exercise the authority provided in this paragraph, the board must pass a resolution
61.1stating that it will do so, and must then review all such appeals until it passes a subsequent
61.2resolution stating that it will not review such appeals.
61.3EFFECTIVE DATE.This section is effective for appeals denied after June 30,
61.42011.

61.5    Sec. 10. Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read:
61.6    Subdivision 1. Levy amount. The state general levy is levied against
61.7commercial-industrial property and seasonal residential recreational property, as defined
61.8in this section. The state general levy base amount for commercial-industrial property
61.9is $592,000,000 $702,700,000 and the state general levy base amount for seasonal
61.10residential recreational property is $39,800,000 for taxes payable in 2002 2012 and 2013.
61.11For taxes payable in subsequent years, the levy base amount is increased each year by
61.12multiplying the levy base amount for the prior year by the sum of one plus the rate of
61.13increase, if any, in the implicit price deflator for government consumption expenditures
61.14and gross investment for state and local governments prepared by the Bureau of Economic
61.15Analysts of the United States Department of Commerce for the 12-month period ending
61.16March 31 of the year prior to the year the taxes are payable decreased as follows:
61.17(1) for taxes payable in 2014, the state general levy base amount is $667,600,000
61.18for commercial-industrial property and $37,800,000 for seasonal residential recreational
61.19property;
61.20(2) for taxes payable in 2015, the state general levy base amount is $632,500,000
61.21for commercial-industrial property and $35,800,000 for seasonal residential recreational
61.22property;
61.23(3) for taxes payable in 2016, the state general levy base amount is $562,300,000
61.24for commercial-industrial property and $31,800,000 for seasonal residential recreational
61.25property;
61.26(4) for taxes payable in 2017, the state general levy base amount is $492,100,000
61.27for commercial-industrial property and $27,800,000 for seasonal residential recreational
61.28property;
61.29(5) for taxes payable in 2018, the state general levy base amount is $421,900,000
61.30for commercial-industrial property and $23,800,000 for seasonal residential recreational
61.31property;
61.32(6) for taxes payable in 2019, the state general levy base amount is $351,700,000
61.33for commercial-industrial property and $19,800,000 for seasonal residential recreational
61.34property;
62.1(7) for taxes payable in 2020, the state general levy base amount is $281,500,000
62.2for commercial-industrial property and $15,800,000 for seasonal residential recreational
62.3property;
62.4(8) for taxes payable in 2021, the state general levy base amount is $211,300,000
62.5for commercial-industrial property and $11,800,000 for seasonal residential recreational
62.6property;
62.7(9) for taxes payable in 2022, the state general levy base amount is $141,100,000
62.8for commercial-industrial property and $7,800,000 for seasonal residential recreational
62.9property; and
62.10(10) for taxes payable in 2023, the state general levy base amount is $70,900,000
62.11for commercial-industrial property and $3,800,000 for seasonal residential recreational
62.12property.
62.13The tax under this section is not treated as a local tax rate under section 469.177 and
62.14is not the levy of a governmental unit under chapters 276A and 473F.
62.15The commissioner shall increase or decrease the preliminary or final rate for a year
62.16as necessary to account for errors and tax base changes that affected a preliminary or final
62.17rate for either of the two preceding years. Adjustments are allowed to the extent that the
62.18necessary information is available to the commissioner at the time the rates for a year must
62.19be certified, and for the following reasons:
62.20(1) an erroneous report of taxable value by a local official;
62.21(2) an erroneous calculation by the commissioner; and
62.22(3) an increase or decrease in taxable value for commercial-industrial or seasonal
62.23residential recreational property reported on the abstracts of tax lists submitted under
62.24section 275.29 that was not reported on the abstracts of assessment submitted under
62.25section 270C.89 for the same year.
62.26The commissioner may, but need not, make adjustments if the total difference in the tax
62.27levied for the year would be less than $100,000.

62.28    Sec. 11. Minnesota Statutes 2010, section 275.025, subdivision 4, is amended to read:
62.29    Subd. 4. Apportionment and levy of state general tax. Ninety-five percent of the
62.30state general tax must be levied by applying a uniform rate to all commercial-industrial tax
62.31capacity and five percent of the state general tax must be levied by applying a uniform
62.32rate to all seasonal residential recreational tax capacity. On or before October 1 each year,
62.33the commissioner of revenue shall certify the preliminary state general levy rates to each
62.34county auditor that must be used to prepare the notices of proposed property taxes for taxes
63.1payable in the following year. By January 1 of each year, the commissioner shall certify
63.2the final state general levy rate to each county auditor that shall be used in spreading taxes.
63.3EFFECTIVE DATE.This section is effective for taxes levied in 2011, payable
63.4in 2012, and thereafter.

63.5    Sec. 12. REPEALER.
63.6(a) Minnesota Statutes 2010, section 273.114, subdivision 1, is repealed.
63.7(b) Minnesota Statutes 2010, section 275.025, is repealed.
63.8EFFECTIVE DATE.Paragraph (a) of this section is effective the day following
63.9final enactment. Paragraph (b) of this section is effective for taxes levied in 2023, payable
63.10in 2024, and thereafter.


63.13    Section 1. Minnesota Statutes 2010, section 469.176, subdivision 4c, is amended to
63.14read:
63.15    Subd. 4c. Economic development districts. (a) Revenue derived from tax
63.16increment from an economic development district may not be used to provide
63.17improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form
63.18to developments consisting of buildings and ancillary facilities, if more than 15 percent
63.19of the buildings and facilities (determined on the basis of square footage) are used for a
63.20purpose other than:
63.21(1) the manufacturing or production of tangible personal property, including
63.22processing resulting in the change in condition of the property;
63.23(2) warehousing, storage, and distribution of tangible personal property, excluding
63.24retail sales;
63.25(3) research and development related to the activities listed in clause (1) or (2);
63.26(4) telemarketing if that activity is the exclusive use of the property;
63.27(5) tourism facilities;
63.28(6) qualified border retail facilities; or
63.29(7) space necessary for and related to the activities listed in clauses (1) to (6).
63.30(b) Notwithstanding the provisions of this subdivision, revenues derived from tax
63.31increment from an economic development district may be used to provide improvements,
63.32loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000
63.33square feet of any separately owned commercial facility located within the municipal
64.1jurisdiction of a small city, if the revenues derived from increments are spent only to
64.2assist the facility directly or for administrative expenses, the assistance is necessary to
64.3develop the facility, and all of the increments, except those for administrative expenses,
64.4are spent only for activities within the district.
64.5(c) A city is a small city for purposes of this subdivision if the city was a small city
64.6in the year in which the request for certification was made and applies for the rest of
64.7the duration of the district, regardless of whether the city qualifies or ceases to qualify
64.8as a small city.
64.9(d) Notwithstanding the requirements of paragraph (a) and the finding requirements
64.10of section 469.174, subdivision 12, tax increments from an economic development district
64.11may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or
64.12assistance in any form to developments consisting of buildings and ancillary facilities, if
64.13all the following conditions are met:
64.14(1) the municipality finds that the project will create or retain jobs in this state,
64.15including construction jobs, and that construction of the project would not have
64.16commenced before July 1, 2011 2012, without the authority providing assistance under
64.17the provisions of this paragraph;
64.18(2) construction of the project begins no later than July 1, 2011 2012; and
64.19(3) the request for certification of the district is made no later than June 30, 2011
64.202012; and
64.21(4) for development of housing under this paragraph, the construction must begin
64.22before July 1, 2011.
64.23EFFECTIVE DATE.This section is effective the day following final enactment.

64.24    Sec. 2. Minnesota Statutes 2010, section 469.176, subdivision 4m, is amended to read:
64.25    Subd. 4m. Temporary authority to stimulate construction. (a) Notwithstanding
64.26the restrictions in any other subdivision of this section or any other law to the contrary,
64.27except the requirement to pay bonds to which the increments are pledged and the
64.28provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or
64.29more of the following purposes:
64.30(1) to provide improvements, loans, interest rate subsidies, or assistance in any
64.31form to private development consisting of the construction or substantial rehabilitation
64.32of buildings and ancillary facilities, if doing so will create or retain jobs in this state,
64.33including construction jobs, and that the construction commences before July 1, 2011
64.342012, and would not have commenced before that date without the assistance; or
65.1(2) to make an equity or similar investment in a corporation, partnership, or limited
65.2liability company that the authority determines is necessary to make construction of a
65.3development that meets the requirements of clause (1) financially feasible.
65.4(b) The authority may undertake actions under the authority of this subdivision only
65.5after approval by the municipality of a written spending plan that specifically authorizes
65.6the authority to take the actions. The municipality shall approve the spending plan only
65.7after a public hearing after published notice in a newspaper of general circulation in
65.8the municipality at least once, not less than ten days nor more than 30 days prior to the
65.9date of the hearing.
65.10(c) The authority to spend tax increments under this subdivision expires December
65.1131, 2011 2012.
65.12(d) For a development consisting of housing, the authority to spend tax increments
65.13under this subdivision expires December 31, 2011, and construction must commence
65.14before July 1, 2011.
65.15EFFECTIVE DATE.This section is effective the day following final enactment.

65.16    Sec. 3. Laws 2010, chapter 389, article 7, section 22, is amended to read:
65.17    Sec. 22. CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT;
65.18SPECIAL RULES.
65.19(a) If the city of Ramsey or an authority of the city elects upon the adoption of a tax
65.20increment financing plan for a district, the rules under this section apply to a redevelopment
65.21tax increment financing district established by the city or an authority of the city. The
65.22redevelopment tax increment district includes parcels within the area bounded on the east
65.23by Ramsey Boulevard, on the north by Bunker Lake Boulevard as extended west to Llama
65.24Street, on the west by Llama Street, and on the south by a line running parallel to and
65.25600 feet south of the southerly right-of-way for U.S. Highway 10, but including Parcels
65.2628-32-25-43-0007 and 28-32-25-34-0002 in their entirety, and excluding the Anoka
65.27County Regional Park property in its entirety. A parcel within this area that is included in
65.28a tax increment financing district that was certified before the date of enactment of this act
65.29may be included in the district created under this act if the initial district is decertified.
65.30(b) The requirements for qualifying a redevelopment tax increment district under
65.31Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcels located
65.32within the district.
65.33(c) In addition to the costs permitted by Minnesota Statutes, section 469.176,
65.34subdivision 4j , Eligible expenditures within the district include the city's share of the
65.35costs necessary to provide for the construction of the Northstar Transit Station and
66.1related infrastructure, including structured parking, a pedestrian overpass, and roadway
66.2improvements.
66.3(d) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that
66.4activities must be undertaken within a five-year period from the date of certification of a
66.5tax increment financing district, is considered to be met for the district if the activities
66.6were undertaken within ten years from the date of certification of the district.
66.7(e) Except for administrative expenses, the in-district percentage for purposes of
66.8the restriction on pooling under Minnesota Statutes, section 469.1763, subdivision 2, for
66.9this district is 100 percent.
66.10EFFECTIVE DATE.This section is effective upon approval by the governing
66.11body of the city of Ramsey, and upon compliance by the city with Minnesota Statutes,
66.12section 645.021, subdivision 3.

66.13    Sec. 4. CITY OF COHASSET; USE OF TAX INCREMENTS.
66.14The authority operating tax increment financing districts No. 2-1 and No. 3-1 in
66.15the city of Cohasset may transfer tax increments from each of those districts to the city
66.16in an amount equal to the advances made by the city from its general fund to finance
66.17expenditures under Minnesota Statutes, section 469.176, subdivision 4, for the benefit
66.18of that district.
66.19EFFECTIVE DATE.This section is effective the day following final enactment,
66.20upon approval by the governing body of the city of Cohasset and compliance with
66.21Minnesota Statutes, section 645.021, subdivision 3.

66.22    Sec. 5. CITY OF LINO LAKES; TAX INCREMENT FINANCING.
66.23    Subdivision 1. Duration of district. Notwithstanding the provisions of Minnesota
66.24Statutes, section 469.176, subdivision 1b, the city of Lino Lakes may collect tax
66.25increments from tax increment financing district no. 1-10 through December 31, 2023,
66.26subject to the conditions in subdivision 2.
66.27    Subd. 2. Conditions for extension. All tax increments remaining in the account
66.28for the district after February 1, 2011, and all tax increments collected thereafter, must
66.29be used only to pay debt service on bonds issued to finance the interchange of Anoka
66.30County Highway 23 and marked Interstate Highway 35W, bonds issued to finance public
66.31improvements serving the development known as Legacy at Woods Edge, and any bonds
67.1issued to refund those bonds. Minnesota Statutes, sections 469.176, subdivision 4c, and
67.2469.1763 do not apply to expenditures made under this section.
67.3EFFECTIVE DATE.This section is effective upon compliance by the governing
67.4body of the city of Lino Lakes with the requirements of Minnesota Statutes, sections
67.5469.1782, subdivision 2, and 645.021, subdivision 3.


67.8    Section 1. Minnesota Statutes 2010, section 290.05, subdivision 1, is amended to read:
67.9    Subdivision 1. Exempt entities. The following corporations, individuals, estates,
67.10trusts, and organizations shall be exempted from taxation under this chapter, provided
67.11that every such person or corporation claiming exemption under this chapter, in whole
67.12or in part, must establish to the satisfaction of the commissioner the taxable status of
67.13any income or activity:
67.14(a) corporations, individuals, estates, and trusts engaged in the business of mining or
67.15producing iron ore and mining, producing, or refining other ores, metals, and minerals,
67.16the mining or, production, or refining of which is subject to the occupation tax imposed
67.17by section 298.01; but if any such corporation, individual, estate, or trust engages in any
67.18other business or activity or has income from any property not used in such business it
67.19shall be subject to this tax computed on the net income from such property or such other
67.20business or activity. Royalty shall not be considered as income from the business of
67.21mining or producing iron ore within the meaning of this section;
67.22(b) the United States of America, the state of Minnesota or any political subdivision
67.23of either agencies or instrumentalities, whether engaged in the discharge of governmental
67.24or proprietary functions; and
67.25(c) any insurance company.
67.26EFFECTIVE DATE.This section is effective for taxable years beginning after
67.27December 31, 2010.

67.28    Sec. 2. Minnesota Statutes 2010, section 297A.68, subdivision 4, is amended to read:
67.29    Subd. 4. Taconite, other ores, metals, or minerals; production materials. Mill
67.30liners, grinding rods, and grinding balls that are substantially consumed in the production
67.31of taconite or other ores, metals, or minerals are exempt when sold to or stored, used, or
67.32consumed by persons taxed under the in-lieu or net proceeds provisions of chapter 298.
68.1EFFECTIVE DATE.This section is effective for sales and purchases made after
68.2June 30, 2011.

68.3    Sec. 3. Minnesota Statutes 2010, section 298.001, is amended by adding a subdivision
68.4to read:
68.5    Subd. 10. Refining. "Refining" means and is limited to refining:
68.6(1) of ores, metals, or mineral products, the mining, extraction, or quarrying of
68.7which were subject to tax under section 298.015; and
68.8(2) carried out by the entity, or an affiliated entity, that mined, extracted, or quarried
68.9the metal or mineral products.
68.10EFFECTIVE DATE.This section is effective for taxable years beginning after
68.11December 31, 2010.

68.12    Sec. 4. Minnesota Statutes 2010, section 298.01, subdivision 3, is amended to read:
68.13    Subd. 3. Occupation tax; other ores. Every person engaged in the business of
68.14mining, refining, or producing ores, metals, or minerals in this state, except iron ore or
68.15taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided
68.16in this subdivision. For purposes of this subdivision, mining includes the application
68.17of hydrometallurgical processes. The tax is determined in the same manner as the tax
68.18imposed by section 290.02, except that sections 290.05, subdivision 1, clause (a), 290.17,
68.19subdivision 4 , and 290.191, subdivision 2, do not apply, and the occupation tax must
68.20be computed by applying to taxable income the rate of 2.45 percent. A person subject
68.21to occupation tax under this section shall apportion its net income on the basis of the
68.22percentage obtained by taking the sum of:
68.23(1) 75 percent of the percentage which the sales made within this state in connection
68.24with the trade or business during the tax period are of the total sales wherever made in
68.25connection with the trade or business during the tax period;
68.26(2) 12.5 percent of the percentage which the total tangible property used by the
68.27taxpayer in this state in connection with the trade or business during the tax period is of
68.28the total tangible property, wherever located, used by the taxpayer in connection with the
68.29trade or business during the tax period; and
68.30(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
68.31in this state or paid in respect to labor performed in this state in connection with the trade
68.32or business during the tax period are of the taxpayer's total payrolls paid or incurred in
68.33connection with the trade or business during the tax period.
68.34The tax is in addition to all other taxes.
69.1EFFECTIVE DATE.This section is effective for taxable years beginning after
69.2December 31, 2010.

69.3    Sec. 5. Minnesota Statutes 2010, section 298.01, subdivision 3a, is amended to read:
69.4    Subd. 3a. Gross income. (a) For purposes of determining a person's taxable income
69.5under subdivision 3, gross income is determined by the amount of gross proceeds from
69.6mining in this state under section 298.016 and includes any gain or loss recognized
69.7from the sale or disposition of assets used in the business in this state. If more than one
69.8ore, mineral, or metal, or energy resource referred to in section 298.016 is mined and
69.9processed at the same mine and plant, a gross income for each ore, mineral, or metal, or
69.10energy resource must be determined separately. The gross incomes may be combined on
69.11one occupation tax return to arrive at the gross income of all production.
69.12(b) In applying section 290.191, subdivision 5, transfers of ores, metals, or minerals
69.13that are subject to tax under this chapter are deemed to be sales in this state.
69.14EFFECTIVE DATE.This section is effective for taxable years beginning after
69.15December 31, 2010.

69.16    Sec. 6. Minnesota Statutes 2010, section 298.015, subdivision 1, is amended to read:
69.17    Subdivision 1. Tax imposed. A person engaged in the business of mining shall pay
69.18to the state of Minnesota for distribution as provided in section 298.018 a net proceeds tax
69.19equal to two percent of the net proceeds from mining in Minnesota. The tax applies to all
69.20mineral and energy resources ores, metals, and minerals mined or, extracted, produced,
69.21or refined within the state of Minnesota except for sand, silica sand, gravel, building
69.22stone, crushed rock, limestone, granite, dimension granite, dimension stone, horticultural
69.23peat, clay, soil, iron ore, and taconite concentrates. The tax is in addition to all other
69.24taxes provided for by law.
69.25EFFECTIVE DATE.This section is effective for taxable years beginning after
69.26December 31, 2010.

69.27    Sec. 7. Minnesota Statutes 2010, section 298.015, subdivision 2, is amended to read:
69.28    Subd. 2. Net proceeds. For purposes of this section, the term "net proceeds" means
69.29the gross proceeds from mining, as defined in section 298.016, less the deductions allowed
69.30in section 298.017 for purposes of determining taxable income under section 298.01,
69.31subdivision 3b, applied to the mining, production, processing, beneficiation, smelting, or
70.1refining of metal or mineral products. No other credits or deductions shall apply to this tax
70.2except for those provided in section 298.017.
70.3EFFECTIVE DATE.This section is effective for taxes payable in 2012 and
70.4thereafter.

70.5    Sec. 8. Minnesota Statutes 2010, section 298.016, subdivision 4, is amended to read:
70.6    Subd. 4. Definitions Metal or mineral products; definition. For the purposes of
70.7sections 298.015 and 298.017 this section, the terms defined in this subdivision have the
70.8meaning given them unless the context clearly indicates otherwise.
70.9(a) "metal or mineral products" means all those mineral and energy resources ores,
70.10metals, and minerals subject to the tax provided in section 298.015.
70.11(b) "Exploration" means activities designed and engaged in to ascertain the
70.12existence, location, extent, or quality of any deposit of metal or mineral products prior to
70.13the development of a mining site.
70.14(c) "Development" means activities designed and engaged in to prepare or develop
70.15a potential mining site for mining after the existence of metal or mineral products in
70.16commercially marketable quantities has been disclosed including, but not limited to,
70.17the clearing of forestation, the building of roads, removal of overburden, or the sinking
70.18of shafts.
70.19(d) "Research" means activities designed and engaged in to create new or improved
70.20methods of mining, producing, processing, beneficiating, smelting, or refining metal
70.21or mineral products.
70.22EFFECTIVE DATE.This section is effective for taxable years beginning after
70.23December 31, 2010.

70.24    Sec. 9. Minnesota Statutes 2010, section 298.225, subdivision 1, is amended to read:
70.25    Subdivision 1. Guaranteed distribution. (a) The distribution of the taconite
70.26production tax as provided in section 298.28, subdivisions 3 to 5, 6, paragraph (b), and
70.277, and 8, shall equal the lesser of the following amounts:
70.28(1) the amount distributed pursuant to this section and section 298.28, with respect
70.29to 1983 production if the production for the year prior to the distribution year is no less
70.30than 42,000,000 taxable tons. If the production is less than 42,000,000 taxable tons, the
70.31amount of the distributions shall be reduced proportionately at the rate of two percent
70.32for each 1,000,000 tons, or part of 1,000,000 tons by which the production is less than
70.3342,000,000 tons; or
71.1(2)(i) for the distributions made pursuant to section 298.28, subdivisions 4,
71.2paragraphs (b) and (c), and 6, paragraph (c), 31.2 percent of the amount distributed
71.3pursuant to this section and section 298.28, with respect to 1983 production;
71.4(ii) for the distributions made pursuant to section 298.28, subdivision 5, paragraphs
71.5(b) and (d), 75 percent of the amount distributed pursuant to this section and section
71.6298.28 , with respect to 1983 production.
71.7(b) The distribution of the taconite production tax as provided in section 298.28,
71.8subdivision 2 , shall equal the following amount:
71.9(1) if the production for the year prior to the distribution year is at least 42,000,000
71.10taxable tons, the amount distributed pursuant to this section and section 298.28 with
71.11respect to 1999 production; or
71.12(2) if the production for the year prior to the distribution year is less than 42,000,000
71.13taxable tons, the amount distributed pursuant to this section and section 298.28 with respect
71.14to 1999 production, reduced proportionately at the rate of two percent for each 1,000,000
71.15tons or part of 1,000,000 tons by which the production is less than 42,000,000 tons.
71.16EFFECTIVE DATE.This section is effective for distributions in 2012 and
71.17thereafter.

71.18    Sec. 10. Minnesota Statutes 2010, section 298.24, subdivision 1, is amended to read:
71.19    Subdivision 1. Imposed; calculation. (a) For concentrate produced in 2001,
71.202002, and 2003 2011 and subsequent years, there is imposed upon taconite and iron
71.21sulphides, and upon the mining and quarrying thereof, and upon the production of
71.22iron ore concentrate therefrom, and upon the concentrate so produced, and upon other
71.23iron-bearing material, a tax of $2.103 $2.074 per gross ton of merchantable iron ore
71.24concentrate produced therefrom. For concentrates produced in 2005, the tax rate is the
71.25same rate imposed for concentrates produced in 2004. For concentrates produced in 2009
71.26and subsequent years, the tax is also imposed upon other iron-bearing material.
71.27    (b) For concentrates produced in 2006 and subsequent years, the tax rate shall be
71.28equal to the preceding year's tax rate plus an amount equal to the preceding year's tax rate
71.29multiplied by the percentage increase in the implicit price deflator from the fourth quarter
71.30of the second preceding year to the fourth quarter of the preceding year. "Implicit price
71.31deflator" means the implicit price deflator for the gross domestic product prepared by the
71.32Bureau of Economic Analysis of the United States Department of Commerce.
71.33    (c) An additional tax is imposed equal to three cents per gross ton of merchantable
71.34iron ore concentrate for each one percent that the iron content of the product exceeds 72
71.35percent, when dried at 212 degrees Fahrenheit.
72.1    (d) (c) The tax on taconite and iron sulphides shall be imposed on the average of the
72.2production for the current year and the previous two years. The rate of the tax imposed
72.3will be the current year's tax rate. This clause shall not apply in the case of the closing
72.4of a taconite facility if the property taxes on the facility would be higher if this clause
72.5and section 298.25 were not applicable. The tax on other iron-bearing material shall be
72.6imposed on the current year production.
72.7    (e) (d) If the tax or any part of the tax imposed by this subdivision is held to be
72.8unconstitutional, a tax of $2.103 $2.074 per gross ton of merchantable iron ore concentrate
72.9produced shall be imposed.
72.10    (f) (e) Consistent with the intent of this subdivision to impose a tax based upon the
72.11weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly
72.12determine the weight of merchantable iron ore concentrate included in fluxed pellets by
72.13subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic
72.14flux additives included in the pellets from the weight of the pellets. For purposes of this
72.15paragraph, "fluxed pellets" are pellets produced in a process in which limestone, dolomite,
72.16olivine, or other basic flux additives are combined with merchantable iron ore concentrate.
72.17No subtraction from the weight of the pellets shall be allowed for binders, mineral and
72.18chemical additives other than basic flux additives, or moisture.
72.19    (g) (f)(1) Notwithstanding any other provision of this subdivision, for the first two
72.20years of a plant's commercial production of direct reduced ore from ore mined in this state,
72.21no tax is imposed under this section. As used in this paragraph, "commercial production"
72.22is production of more than 50,000 tons of direct reduced ore in the current year or in any
72.23prior year, "noncommercial production" is production of 50,000 tons or less of direct
72.24reduced ore in any year, and "direct reduced ore" is ore that results in a product that has an
72.25iron content of at least 75 percent. For the third year of a plant's commercial production of
72.26direct reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate
72.27otherwise determined under this subdivision. For the fourth commercial production year,
72.28the rate is 50 percent of the rate otherwise determined under this subdivision; for the fifth
72.29commercial production year, the rate is 75 percent of the rate otherwise determined under
72.30this subdivision; and for all subsequent commercial production years, the full rate is
72.31imposed.
72.32    (2) Subject to clause (1), production of direct reduced ore in this state is subject to
72.33the tax imposed by this section, but if that production is not produced by a producer of
72.34taconite, iron sulfides, or other iron-bearing material, the production of taconite, iron
72.35sulfides, or other iron-bearing material, that is consumed in the production of direct
73.1reduced iron in this state is not subject to the tax imposed by this section on taconite,
73.2iron sulfides, or other iron-bearing material.
73.3    (3) Notwithstanding any other provision of this subdivision, no tax is imposed
73.4on direct reduced ore under this section during the facility's noncommercial production
73.5of direct reduced ore. The taconite or iron sulphides consumed in the noncommercial
73.6production of direct reduced ore is subject to the tax imposed by this section on taconite
73.7and iron sulphides. Three-year average production of direct reduced ore does not
73.8include production of direct reduced ore in any noncommercial year. Three-year average
73.9production for a direct reduced ore facility that has noncommercial production is the
73.10average of the commercial production of direct reduced ore for the current year and the
73.11previous two commercial years.
73.12    (4) This paragraph applies only to plants for which all environmental permits have
73.13been obtained and construction has begun before July 1, 2008.
73.14EFFECTIVE DATE.This section is effective for production in 2011 and thereafter.

73.15    Sec. 11. Minnesota Statutes 2010, section 298.28, subdivision 3, is amended to read:
73.16    Subd. 3. Cities; towns. (a) 12.5 12.2 cents per taxable ton, less any amount
73.17distributed under subdivision 8, and paragraph (b), must be allocated to the taconite
73.18municipal aid account to be distributed as provided in section 298.282.
73.19    (b) An amount must be allocated to towns or cities that is annually certified by
73.20the county auditor of a county containing a taconite tax relief area as defined in section
73.21273.134, paragraph (b) , within which there is (1) an organized township if, as of January
73.222, 1982, more than 75 percent of the assessed valuation of the township consists of iron
73.23ore or (2) a city if, as of January 2, 1980, more than 75 percent of the assessed valuation
73.24of the city consists of iron ore.
73.25    (c) The amount allocated under paragraph (b) will be the portion of a township's or
73.26city's certified levy equal to the proportion of (1) the difference between 50 percent of
73.27January 2, 1982, assessed value in the case of a township and 50 percent of the January 2,
73.281980, assessed value in the case of a city and its current assessed value to (2) the sum of
73.29its current assessed value plus the difference determined in (1), provided that the amount
73.30distributed shall not exceed $55 per capita in the case of a township or $75 per capita in
73.31the case of a city. For purposes of this limitation, population will be determined according
73.32to the 1980 decennial census conducted by the United States Bureau of the Census. If the
73.33current assessed value of the township exceeds 50 percent of the township's January 2,
73.341982, assessed value, or if the current assessed value of the city exceeds 50 percent of the
73.35city's January 2, 1980, assessed value, this paragraph shall not apply. For purposes of this
74.1paragraph, "assessed value," when used in reference to years other than 1980 or 1982,
74.2means the appropriate net tax capacities multiplied by 10.2.
74.3    (d) In addition to other distributions under this subdivision, three 3.1 cents per
74.4taxable ton for distributions in 2009 2012 and subsequent years must be allocated for
74.5distribution to towns that are entirely located within the taconite tax relief area defined
74.6in section 273.134, paragraph (b). For distribution in 2010 and subsequent years, the
74.7three-cent amount must be annually increased in the same proportion as the increase
74.8in the implicit price deflator as provided in section 298.24, subdivision 1. The amount
74.9available under this paragraph will be distributed to eligible towns on a per capita basis,
74.10provided that no town may receive more than $50,000 in any year under this paragraph.
74.11Any amount of the distribution that exceeds the $50,000 limitation for a town under this
74.12paragraph must be redistributed on a per capita basis among the other eligible towns, to
74.13whose distributions do not exceed $50,000.

74.14    Sec. 12. Minnesota Statutes 2010, section 298.28, subdivision 6, is amended to read:
74.15    Subd. 6. Property tax relief. (a) In 2002 2012 and thereafter, 33.9 41.6 cents per
74.16taxable ton, less any amount required to be distributed under paragraphs (b) and (c), or
74.17section 298.2961, subdivision 5, must be allocated to St. Louis County acting as the
74.18counties' fiscal agent, to be distributed as provided in sections 273.134 to 273.136.
74.19(b) If an electric power plant owned by and providing the primary source of power
74.20for a taxpayer mining and concentrating taconite is located in a county other than the
74.21county in which the mining and the concentrating processes are conducted, .1875 cent per
74.22taxable ton of the tax imposed and collected from such taxpayer shall be paid to the county.
74.23(c) If an electric power plant owned by and providing the primary source of power
74.24for a taxpayer mining and concentrating taconite is located in a school district other than
74.25a school district in which the mining and concentrating processes are conducted, .4541
74.26cent per taxable ton of the tax imposed and collected from the taxpayer shall be paid to
74.27the school district.

74.28    Sec. 13. Minnesota Statutes 2010, section 298.28, subdivision 7, is amended to read:
74.29    Subd. 7. Iron Range Resources and Rehabilitation Board. For the 1998 2012 and
74.30subsequent years distribution, 6.5 8.3 cents per taxable ton shall be paid to the Iron Range
74.31Resources and Rehabilitation Board for the purposes of section 298.22. That amount
74.32shall be increased in 1999 and subsequent years in the same proportion as the increase
74.33in the implicit price deflator as provided in section 298.24, subdivision 1. The amount
74.34distributed pursuant to this subdivision shall be expended within or for the benefit of the
75.1taconite assistance area defined in section 273.1341. No part of the fund provided in this
75.2subdivision may be used to provide loans for the operation of private business unless the
75.3loan is approved by the governor.

75.4    Sec. 14. Minnesota Statutes 2010, section 298.28, subdivision 9, is amended to read:
75.5    Subd. 9. Douglas J. Johnson economic protection trust fund. In 1999, 3.35 2012
75.6and subsequent years, 4.2 cents per taxable ton shall be paid to the Douglas J. Johnson
75.7economic protection trust fund.

75.8    Sec. 15. Minnesota Statutes 2010, section 298.28, subdivision 9b, is amended to read:
75.9    Subd. 9b. Taconite environmental fund. In 2012 and subsequent years, five cents
75.10per ton, plus the amount paid to the fund in 2011 under subdivision 10, paragraph (b), must
75.11be paid to the taconite environmental fund for use under section 298.2961, subdivision 4.

75.12    Sec. 16. REPEALER.
75.13(a) Minnesota Statutes 2010, sections 298.227; and 298.28, subdivisions 8, 9a,
75.149c, and 10, are repealed.
75.15(b) Minnesota Statutes 2010, section 298.285, is repealed.
75.16(c) Minnesota Statutes 2010, section 298.017, is repealed.
75.17EFFECTIVE DATE.Paragraph (a) of this section is effective for distributions in
75.182012 and thereafter of taxes on production in 2011 and thereafter. Paragraph (b) of this
75.19section is effective June 30, 2011. Paragraph (c) of this section is effective for taxable
75.20years beginning after December 31, 2010.


75.23    Section 1. Minnesota Statutes 2010, section 270A.03, subdivision 2, is amended to
75.24read:
75.25    Subd. 2. Claimant agency. "Claimant agency" means any state agency, as defined
75.26by section 14.02, subdivision 2, the regents of the University of Minnesota, any district
75.27court of the state, any county, any statutory or home rule charter city, including a city
75.28that is presenting a claim for a municipal hospital or a public library or a municipal
75.29ambulance service, a hospital district, a private nonprofit hospital that leases its building
75.30from the county or city in which it is located, any ambulance service licensed under
75.31chapter 144E, any public agency responsible for child support enforcement, any public
75.32agency responsible for the collection of court-ordered restitution, and any public agency
76.1established by general or special law that is responsible for the administration of a
76.2low-income housing program, and the Minnesota collection enterprise as defined in
76.3section 16D.02, subdivision 8, for the purpose of collecting the costs imposed under
76.4section 16D.11. A county may act as a claimant agency on behalf of an ambulance service
76.5licensed under chapter 144E if the ambulance service's primary service area is located at
76.6least in part within the county, but more than one county may not act as a claimant agency
76.7for a licensed ambulance service with respect to the same debt.
76.8EFFECTIVE DATE.This section is effective the day following final enactment.

76.9    Sec. 2. Minnesota Statutes 2010, section 270A.07, subdivision 1, is amended to read:
76.10    Subdivision 1. Notification requirement. (a) Any claimant agency, seeking
76.11collection of a debt through setoff against a refund due, shall submit to the commissioner
76.12information indicating the amount of each debt and information identifying the debtor, as
76.13required by section 270A.04, subdivision 3.
76.14(b) For each setoff of a debt against a refund due, the commissioner shall charge a fee
76.15of $15. The proceeds of fees shall be allocated by depositing $4 of each $15 fee collected
76.16into a Department of Revenue recapture revolving fund and depositing the remaining
76.17balance into the general fund. The sums deposited into the revolving fund are appropriated
76.18to the commissioner for the purpose of administering the Revenue Recapture Act.
76.19(c) For each debt for which a county acts as claimant agency on behalf of a licensed
76.20ambulance service, the county may charge the ambulance service a fee not to exceed the
76.21cost of administering the claim.
76.22(d) The claimant agency shall notify the commissioner when a debt has been
76.23satisfied or reduced by at least $200 within 30 days after satisfaction or reduction.
76.24EFFECTIVE DATE.This section is effective the day following final enactment.

76.25    Sec. 3. Minnesota Statutes 2010, section 270C.13, subdivision 1, is amended to read:
76.26    Subdivision 1. Biennial report. The commissioner shall report to the legislature
76.27by March 1 of each odd-numbered year on the overall incidence of the income tax,
76.28sales and excise taxes, and property tax. The report shall present information on the
76.29distribution of the tax burden as follows: (1) for the overall income distribution, using
76.30a systemwide incidence measure such as the Suits index or other appropriate measures
76.31of equality and inequality; (2) by income classes, including at a minimum deciles of the
76.32income distribution; and (3) by other appropriate taxpayer characteristics. The report
77.1must also include information on the distribution of the burden of federal taxes borne
77.2by Minnesota residents.
77.3EFFECTIVE DATE.This section is effective beginning with the report due in
77.4March 2013.

77.5    Sec. 4. APPROPRIATION; TAX INCIDENCE REPORT.
77.6$15,000 in fiscal year 2012 and $15,000 in fiscal year 2013 are appropriated from
77.7the general fund to the commissioner of revenue for the change to the tax incidence report
77.8in section 3."
77.9Amend the title accordingly