Legislative Session number- 85

Bill Name: HF2362

HF 2362

SECOND ENGROSSMENT

Omnibus tax bill modifying income, property,
franchise, sales and use, motor vehicle sales, health care provider, tobacco,
insurance, mortgage, gambling, and other tax provisions; and appropriating
money.

ARTICLE 1: HOMESTEAD CREDIT STATE REFUND HOMEOWNERS AND RENTERS

Section
1: Residential homestead market value credit language modified.

Section 2:
Contents of tax statements language modified.

Section 3: Property taxes payable
language modified.

Section 4: Renters language modified.

Section 5: Additional
refund language added.

Section 6: Homestead credit state refund language
provided.

Section 7: Table language modified.

Section 8: Inflation adjustment
language modified.

Section 9: Repealer language provided.

ARTICLE 2: AIDS TO
LOCAL GOVERNMENTS

Section 1: City revenue need language modified.

Section 2:
City aid base language modified.

Section 3: County transition aid language
modified.

Section 4: City formula aid language modified.

Section 5: City aid
distribution language modified.

Section 6: Towns language provided.

Section 7:
Appropriation language modified.

Section 8: Types of land; payments language
modified.

Section 9: General distribution language modified.

Section 10:
Utility property; tax base adjustments for calculation of school district aids
and levies language provided.

Section 11: Utility property; tax base
adjustments for calculation of county and city aids language provided.

Section
12: Mahnomen county; county property tax reimbursement, city and school district
tax base adjustments language provided.

Section 13: Study of city local
government aid program language provided.

ARTICLE 3: PROPERTY TAXES

Section 1:
Allocation language provided.

Section 2: Agricultural lands language
added.

Section 3: Modular homes used as models by dealers language
provided.

Section 4: Electric generation facility; personal property language
provided.

Section 5: Apprenticeship training facilities language
provided.

Section 6: Requirement language provided.

Section 7: Limited market
value language modified.

Section 8: Valuation exclusion for certain
improvements language provided.

Section 9: Applications; denied by county
language provided.

Section 10: Local option; other property language
provided.

Section 11: General rule language added.

Section 12: Agricultural
homesteads; special provisions language modified.

Section 13: Manufactured
homes; sectional structures language modified.

Section 14: Requirements
language modified.

Section 15: Participation in crime-free multihousing program
language provided.

Section 16: Class 1 language modified.

Section 17: Class 2
language modified.

Section 18: Class 3 language modified.

Section 19: Class 4:
language modified.

Section 20: Classification of unimproved property language
modified.

Section 21: Homestead of disabled veteran language provided.

Section
22: Supplemental notice of proposed levy increases language provided.

Section
23: Joint public hearing; nonmetropolitan county, cities, and school districts
language provided.

Section 24: Dismissal of petition; exclusion of certain
evidence language modified.

Section 25: Homestead property; monthly payment
option language provided.

Section 26: Class 3a property language
provided.

Section 27: Delinquent taxes may be paid in inverse order language
modified.

Section 28: Long and short forms; local use tax instructions;
property tax refund information language added.

Section 29: Property tax refund
claims language added.

Section 30: Program qualifications language
modified.

Section 31: Qualifying homestead; defined language provided.

Section
32: Excess-income certification by taxpayer language modified.

Section 33:
Resumption of eligibility certification by taxpayer language modified.

Section
34: Determination by commissioner language modified.

Section 35: Lien; deferred
portion language modified.

Section 36: Calculation of incentive payment
language modified.

Section 37: Citation language provided.

Section 38: Terms
language provided.

Section 39: Qualifications for deferral language
provided.

Section 40: Application for deferral language provided.

Section 41:
Deferred property tax amount language provided.

Section 42: Lien; deferred
portion language provided.

Section 43: Termination of deferral; payment of
deferred taxes language provided.

Section 44: State reimbursement language
provided.

Section 45: Tax may be imposed; Otter Tail County language
provided.

Section 46: Hardship assessment deferral for seniors, disabled, or
military persons language modified.

Section 47: Use of term language
modified.

Section 48: Use of proceeds language modified.

Section 49: Areawide
tax rate language provided.

Section 50: Certification of values; payment
language provided.

Section 51: Minneapolis, city of; street maintenance and
lighting language added.

Section 52: Exchange of tax-forfeited land; private
sale; Itasca County language modified.

Section 53: Fiscal disparities study
language provided.

Section 54: Improving public awareness and participation in
property tax relief programs language provided.

Section 55: Truth in taxation;
costs and participation study language provided.

Section 56: Clair A. Nelson
Memorial Forest, Lake county; temporary suspension of apportionment of proceeds
for tax-forfeited lands language provided.

Section 57: Lakeview Cemetery
association language provided.

Section 58: Tax-forfeited lands lease; Itasca
County language provided.

Section 59: Repealer provided.

ARTICLE 4: CORPORATE
FRANCHISE TAX

Section 1: Corporations language modified.

Section 2: Domestic
corporation language modified.

Section 3: Corporations; additions to federal
taxable income language modified.

Section 4: Corporations; modifications
decreasing federal taxable income language modified.

Section 5: Alternative
minimum taxable income language modified.

Section 6: Unitary business principle
language modified.

Section 7: Election to include foreign corporations language
provided.

Section 8: Apportionment formula of general application language
modified.

Section 9: Apportionment formula for financial institutions language
modified.

Section 10: Determination of sales factor language modified.

Section
11: Dividends received from another corporation language modified.

Section 12:
Transition; pollution control facilities amortization language
provided.

Section 13: Repealer provided.

ARTICLE 5: INDIVIDUAL INCOME
TAX

Section 1: Internal Revenue Code language added.

Section 2: Returns by
persons, corporations, cooperatives, governmental entities or school districts
language added.

Section 3: Net income language modified.

Section 4:
Subtractions from federal taxable income language modified.

Section 5: Internal
Revenue Code language modified.

Section 6: Schedules of rates for individuals,
estates, and trusts language modified.

Section 7: Inflation adjustment of
brackets language modified.

Section 8: Dairy investment credit language
provided.

Section 9: Amount of credit language modified.

Section 10: Credit
allowed language modified.

Section 11: Credit for historic structure
rehabilitation language provided.

Section 12: Exemption amount language
modified.

Section 13: Income not derived from conduct of a trade or business
language modified.

Section 14: Payments to persons who are not employees
language provided.

Section 15: Internal Revenue Code language
modified.

ARTICLE 6: SALES AND USE TAXES

Section 1: Capital improvements
language provided.

Section 2: Sales and use tax language provided.

Section 3:
Farm machinery language modified.

Section 4: Manufactured and modular housing
language provided.

Section 5: Drugs; medical devices language
modified.

Section 6: Agricultural feed processing facility; capital equipment
language provided.

Section 7: Materials consumed in agricultural production
language modified.

Section 8: Repair and replacement parts language
added.

Section 9: Sales of certain goods and services to government language
added.

Section 10: Regionwide public safety radio communication system;
products and services language modified.

Section 11: Sales to fire departments
language provided.

Section 12: Construction materials for qualified low-income
housing projects language modified.

Section 13: Brainerd and Baxter wastewater
treatment facility language provided.

Section 14: Baxter water treatment
facility language provided.

Section 15: Buffalo wastewater treatment facility
language provided.

Section 16: Burnsville surface water treatment plant
language provided.

Section 17: Emily; wastewater treatment facility language
provided.

Section 18: Goodview; water treatment facilities language
provided.

Section 19: Harris wastewater treatment facility language
provided.

Section 20: Milaca water treatment facility language
provided.

Section 21: Minnetonka water treatment facility; sales tax exemption
language provided.

Section 22: New Prague wastewater treatment facility
language provided.

Section 23: New York Mills wastewater treatment facility
language provided.

Section 24: Pelican Rapids wastewater treatment facility
language provided.

Section 25: Princeton; wastewater treatment facility
language provided.

Section 26: Willmar wastewater treatment facility language
provided.

Section 27: Bioscience research facilities language
provided.

Section 28: Biobusiness center language provided.

Section 29: Tax
imposed and collected language modified.

Section 30: Tax collected; other
language provided.

Section 31: Refund; eligible persons language
modified.

Section 32: Application language added.

Section 33: Authorization;
scope language added.

Section 34: Exemptions language added.

Section 35: City
of Duluth language modified.

Section 36: City of Bemidji language
added.

Section 37: City of Crookston; taxes authorized language
provided.

Section 38: City of North Mankato; Taxes authorized language
provided.

Section 39: Study of sales and use tax language provided.

ARTICLE 7:
ECONOMIC DEVELOPMENT

Section 1: Use of data language modified.

Section 2:
Disclosure to legislative auditor and state auditor language added.

Section 3:
Job opportunities building zone property language modified.

Section 4: Report
of job opportunity benefits; penalty for failure to file report language
provided.

Section 5: Additional border city allocations; 2007 language
provided.

Section 6: Redevelopment district language added.

Section 7: Renewal
and renovation district language modified.

Section 8: Small city language
added.

Section 9: Tax increment financing plan language added.

Section 10:
Municipality approval language provided.

Section 11: Duration of tax increment
financing districts language added.

Section 12: Excess increments language
added.

Section 13: Prohibited facilities language added.

Section 14: Parcels
not includable in districts language provided.

Section 15: Requirement imposed
language added.

Section 16: Expenditures outside district language
modified.

Section 17: Original net tax capacity language added.

Section 18:
Interfund loans language added.

Section 19: Preconditions to establish district
language added.

Section 20: Qualified farm language provided.

Section 21:
Restrictions on relocations language provided.

Section 22: FARMZ; special rules
language provided.

Section 23: Commissioner to designate language
added.

Section 24: State auditor; audits of job opportunity building zones and
business subsidy agreements language added.

Section 25: Bioscience business
grants language provided.

Section 26: Establishment language modified.

Section
27: Eligible activities language modified.

Section 28: Housing account language
added.

Section 29: Authority language modified.

Section 30: Creation of
projects language modified.

Section 31: Eagan; tax increment financing language
provided.

Section 32: Tax increment financing; city of Dayton language
provided.

Section 33: City of Fridley; tax increment financing district special
rules language provided.

Section 34: City of Taylor Falls; border city
development zone language provided.

Section 35: Bioscience grants;
appropriation language provided.

Section 36: Appropriation; Minnesota film and
TV board language provided.

Section 37: Repealer provided.

ARTICLE 8:
MINERALS

Section 1: Forest trust language provided.

Section 2: Iron Range
Higher Education Committee; membership language modified.

Section 3: School
districts language added.

Section 4: Iron Range higher education account
language provided.

Section 5: Use of money language added.

Section 6: Grant
and loan fund language added.

Section 7: Iron Range resources and
rehabilitation board appropriation; retire bonds language provided.

Section 8:
Iron range memorial forest language provided.

ARTICLE 9: SPECIAL TAXES

Section
1: Scope language modified.

Section 2: Tax amount language modified.

Section
3: Definitions language provided.

Section 4: Qualified farm property language
provided.

Section 5: Qualified small business property language
provided.

Section 6: Recapture tax language provided.

Section 7: Determination
language modified.

Section 8: Hockey heritage surcharge language
provided.

Section 9: All-terrain vehicle language modified.

Section 10: Tax
rates for fiscal years 2008 to 2010 language provided.

Section 11: Moist snuff
language provided.

Section 12: Tobacco products language modified.

Section 13:
Rates; tobacco products language modified.

Section 14: Use tax; tobacco
products language modified.

Section 15: Adjustment for inflation language
provided.

Section 16: Inventory; judicial determination; appeal; disposition of
seized property language modified.

Section 17: Premiums paid to certain foreign
insurance companies language provided.

Section 18: Dakota County deed and
mortgage tax language provided.

Section 19: Dakota County environmental
response fund language provided.

Section 20: Anoka county deed and mortgage tax
language provided.

Section 21: Anoka County environmental response fund
language provided.

Section 22: Repealer provided.

ARTICLE 10: DEPARTMENT
INCOME AND FRANCHISE TAXES

Section 1: Debt language modified.

Section 2:
Information included in income tax return language modified.

Section 3:
Withholding statement to employee or payee and to commissioner language
modified.

Section 4: Regulated investment companies; reporting exempt-interest
dividends language modified.

Section 5: individual income, fiduciary income,
corporate franchise, and entertainment taxes, partnership and S corporation
returns; information returns; mining company returns language modified.

Section
6: Penalties; failure to file informational return; incorrect taxpayer
identification number language added.

Section 7: Penalties relating to property
tax refunds language modified.

Section 8: Reportable transaction understatement
language added.

Section 9: Preparer identification number language
provided.

Section 10: Bovine testing credit language added.

Sections 11-12:
Inflation adjustment language modified.

Section 13: Deposit; definition
language added.

Section 14: Dependent language modified.

ARTICLE 11: DEPARTMET
SALES AND USE TAXES

Section 1: Bad debt loss language modified.

Section 2:
Border city zone refunds language provided.

Section 3: Penalty for failure to
properly complete sales and use tax return language modified.

Section 4:
Penalty for failure to report liquor sales language provided.

Section 5: Sale
and purchase language modified.

Section 6: Retail sale language
provided.

Section 7: Sales price language modified.

Section 8: Tangible
personal property language modified.

Section 9: Telecommunications services
language modified.

Section 10: Bundled transaction language provided.

Section
11: Ancillary services language provided.

Section 12: Conference bridging
service language provided.

Section 13: Detailed telecommunications billing
service language provided.

Section 14: Directory assistance language
provided.

Section 15: Vertical service language provided.

Section 16: Voice
mail service language provided.

Section 17: Ring tone language
provided.

Section 18: Fur clothing language provided.

Section 19: Use of
tangible personal property or taxable services language added.

Section 20:
Presumption of tax; burden of proof language modified.

Section 21: Defined
telecommunications services sourcing language modified.

Section 22: Postpaid
calling service language provided.

Section 23: Prepaid calling service language
modified.

Section 24: Prepaid wireless calling service language
provided.

Section 25: Ancillary service language provided.

Section 26:
Clothing language modified.

Section 27: Baby products language
provided.

Section 28: Advertising materials language added.

Section 29:
Packing materials language added.

Section 30: Telecommunications, cable
television, and direct satellite equipment language added.

Section 31:
Hospitals and outpatient surgical centers language added.

Section 32: Private
communication service for State Lottery language provided.

Section 33:
Exemption certificates language modified.

Section 34: Liquor reporting
requirements; penalty language provided.

Section 35: Payment of tax language
modified.

Section 36: Ordinary course of business language added.

Section 37:
Sales tax exemption; equipment; construction materials language added.

Section
38: Fur tax payments language provided.

Section 39: Repealer provided.

ARTICLE
12: DEPARTMENT PROPERTY TAXES AND AIDS

Section 1: Flight property language
modified.

Section 2: Assessment of flight property language modified.

Section
3: Report by airline company language modified.

Section 4: Airflight property
tax lien language modified.

Section 5: Penalties language provided.

Section 6:
Examination; investigations; subpoenas language modified.

Section 7: Tax
capacity language modified.

Section 8: Appeal language modified.

Section 9:
Creation; purpose; powers language modified.

Section 10: Definition language
provided.

Section 11: Members language modified.

Section 12: License; refusal
or revocation language modified.

Section 13: Prohibited activity language
modified.

Section 14: Charges for courses; examination or materials language
modified.

Section 15: Disposition of fees language added.

Section 16: Training
courses regulation language modified.

Section 17: Rules language
modified.

Section 18: Licensure of qualified persons language
modified.

Section 19: Employment of licensed assessors language
modified.

Section 20: Commissioner may require social security or identifying
numbers on forms language modified.

Section 21: Authority language
modified.

Section 22: Job opportunity building zone property language
modified.

Section 23: Requirement language modified.

Section 24: Cities and
townships; employment of licensed assessor language provided.

Section 25:
County or local assessing district to assume cost of training language
provided.

Section 26: Requirements language modified.

Section 27: Conservation
property tax valuation language modified.

Section 28: Valuation of real
property, notice language modified.

Section 29: Reassessment of homestead
property language modified.

Section 30: Computation of local tax rates language
modified.

Section 31: Homestead application language modified.

Section 32:
Trust property; homestead language modified.

Section 33: Disparity reduction
credit language modified.

Sections 34-35: Listing and assessment by
commissioner language modified.

Section 36: Report required language
modified.

Section 37: Recommended and ordered values language
provided.

Section 38: Ordinary board; meetings, deadlines, grievances language
added.

Section 39: Members; meetings; rules for equalizing assessments language
added.

Section 40: County boards; appeals and equalization course and meeting
requirements language provided.

Section 41: Notice of proposed property taxes
language added.

Section 42: Public advertisement language added.

Section 43:
Special taxing districts; organization date; certification of levy or special
assessments language modified.

Section 44: Electronic tax statements language
provided.

Section 45: Partial payments language modified.

Section 46: Due
dates; penalties language modified.

Section 47: Claimant language
modified.

Section 48: Applications language modified.

Section 49: Annual
certification language added.

Section 50: Penalties for removal language
modified.

Section 51: Appeals language provided.

Section 52: Repealer
provided.

ARTICLE 13: DEPARTMENT SPECIAL TAXES

Section 1: Deficit assessments
language modified.

Section 2: Premium tax language modified.

Section 3:
Exemptions language modified.

Section 4: Tax-forfeited land language
added.

Section 5: Use tax; prescription drugs language modified.

Section 6:
Tax collection language modified.

Section 7: Pharmacy refund language
added.

Section 8: Tobacco products use tax language modified.

Section 9:
Consumer use tax; use tax return; cigarette consumer language provided.

Section
10: Insurance policies surcharge language added.

Section 11: Exemptions
language modified.

Section 12: Joint Underwriting Association offset language
modified.

Section 13: Definition of tax language modified.

ARTICLE 14:
MISCELLANEOUS

Section 1: Budget reserve increase language added.

Section 2:
Additional revenues; priority language modified.

Section 3: Tax volatility
reduction account language provided.

Section 4: Duties language
modified.

Section 5: Agency participation language modified.

Section 6:
Computation language modified.

Section 7: Adjustment of rate language
modified.

Section 8: Minnesota land conservation incentives act language
provided.

Section 9: Powers and duties language modified.

Section 10: Taxpayer
assistance grants language provided.

Section 11: Refunds not subject to
attachment or garnishment language provided.

Section 12: Required and excluded
tax preparers language modified.

Section 13: Liability imposed language
modified.

Section 14: Period of limitations language added.

Section 15: State
reimbursement language modified.

Section 16: Financial management language
provided.

Section 17: Homestead credit state refund transition reserve language
provided.

Section 18: Lignocellulosic ethanol production grant; appropriation
language provided.

Section 19: Appropriation language provided.

Section 20:
Appropriations language provided.

JAJ 3/26/7