Legislative Session number- 82

Bill Name: HF2498

hf2498 FOURTH ENGROSSMENT Omnibus tax bill modifying provisions relating to
income, franchise, sales and use, property, MinnesotaCare, liquor, and other
taxes; providing for transfer of funds; providing for a budget reserve; and
appropriating money. ARTICLE 1 INCOME AND FRANCHISE TAXES Section 1: Date range
extended relating to corporations with foreign sales corporations. Sec. 2:
"Clause" changed to "paragraph," income tax reciprocity with state of Wisconsin
terminated (pending certain conditions). Sec. 3: "Minnesota alternative minimum
taxable income" definition expanded. Sec. 4: Alternative minimum taxable net
income deduction limitation exceptions provided. Sec. 5: Apportionment formula
application to mail order businesses specified. Sec. 6: Insurance group dividend
deduction provided. ARTICLE 2 FEDERAL UPDATE Section 1: Date modified. Sec. 2:
Federal regulation code conformity provided. Sec. 3: "Net income" definition
modified to conform with Job Creation and Worker Assistance Act. Sec. 4: Federal
taxable income additions modified to conform with federal law. Sec. 5: Obsolete
language deleted and income tax subtraction "delayed depreciation" clarified.
Sec. 6: Federal taxable income definitions pertaining to corporations clarified.
Sec. 7: Conforming changes to subtractions from taxable income regulations
pertaining to corporations. Sec. 8: "Internal Revenue Code" definition modified.
Sec. 9: Credit maximum limit regulations modified to conform with federal law.
Sec. 10: Holocaust victims' settlement payments eliminated from alternative
minimum taxable income. Sec. 11: Corporate alternative minimum tax depreciation
adjustment modified. Sec. 12: Conforming changes. ARTICLE 3 SALES AND USE TAXES
Section 1: County payment regulations relating to Indian casinos modified. Sec.
2: Sales tax June requirement of 62 percent raised to 75 percent. Sec. 3:
Aggregate and concrete block included in services subject to sales tax. Sec. 4:
"Prepared food" definition modified. Sec. 5: "Retailer maintaining a place of
business in this state" definition modified. Sec. 6: "Affiliate" defined. Sec.
7: Sales tax exemption for meals served at colleges, universities, and private
career school narrowed. Sec. 8: Instructional materials other than textbooks
sales tax exemption provided. Sec. 9: Technical. Sec. 10: Items added to list of
energy efficient products which are exempt from sales tax. Sec. 11: Technical.
Sec. 12: Arts organizations events exemption expanded to include University of
Minnesota. Sec. 13: Sales tax exemption for public housing construction
materials clarified. Sec. 14: Replacement agricultural processing facility
construction materials and equipment sales tax exemption provided. Sec. 15:
Hydroelectric generating facility materials and supplies sales tax exemption
provided. Sec. 16: Nonprofit arts organization materials, equipment, and
supplies sales tax exemption provided. Sec. 17: Tax refund provided for
materials and supplies for qualified low-income housing. Sec. 18: Local
admission and amusement tax exemption for arts organizations clarified. Sec. 19:
Authority to enter into Streamlined sales tax agreement provided. Sec. 20:
Bloomington lodging tax increase authorized. Sec. 21: Makeup of St. Paul citizen
review board modified. Sec. 22: Effective date modified. Sec. 23: Duluth sales
tax technical change provided. Sec. 24: Repealer. Sec. 25: Rochester local
lodging tax increase authorized. Sec. 26: Repealer.ARTICLE 4 PROPERTY
TAXESSection 1: Payment of property taxes for manufactured homes required. Sec.
2: Manufactured homes property tax exemption provided. Sec. 3: Electric rate
reduction provided and clarified. Sec. 4: Jurisdiction of Small Claims Division
for Property Tax Cases clarified. Sec. 5: Conforming changes to section 4. Sec.
6: Wind energy conversion systems property tax exemption provided. Sec. 7:
Waseca county electric generation facility personal property exemption provided.
Sec. 8: Beltrami county electric generation facility personal property exemption
provided. Sec. 9: Minneapolis electric generation facility personal property
exemption provided. Sec. 10: Shakopee electric generation facility personal
property small biomass facility exemption provided. Sec. 11: LTV electrig
generation facility personal property exemption provided. Sec. 12: Wind energy
production tax imposed. Sec. 13: Wind energy production tax detailed. Sec. 14:
Homestead treatment limitation established. Sec. 15: Property tax statement
notification to taxpayers regarding manufactured home titles required. Sec. 16:
Homestead classification regulations regarding duplexes and triplexes modified.
Sec. 17: Allows bed and breakfast establishments to qualify as class 4c
property. Sec. 18. Residential homestead market value credit modified. Sec. 19:
Agricultural homestead market value credit reduced. Sec. 20: Tax base
differential modified. Sec. 21: Homestead and agricultural credit aid net tax
capacity calculation procedures modified. Sec. 22: Proposed property tax
notification modified. Sec. 23: Lake improvement district itemization
standardization required. Sec. 24: Property tax deferred tax payment regulations
relating to nonprofit organizations modified. Sec. 25: Cook county road bridge
levy expenditures authorized. Sec. 26: Repealer.ARTICLE 5 EDUCATION LEVIES AND
REVENUESSection 1: Integration revenue increased for Minneapolis. Sec. 2:
Technology and Information Education System data processing joint board lease
levies authorized. Sec. 3: Tax levy for judgement authorized. Sec. 4: Safe
schools levy raised and renamed. Sec. 5: Referendum conversion adjustment for
interest earned modified. Sec. 6: Interactive web-based and independent study
programs revenue provision extended. Sec. 7: Web-based and independent study
program reimbursement provided. Sec. 8: Westbrook-Walnut Grove disabled access
levy authority provided. Sec. 9: Pine City disabled access levy authority
provided.ARTICLE 6 AIDS AND LEVIESSection 1: Property tax levies intended to
fund required contributions for police and firefighter relief associations
reduction prohibited. Sec. 2: Tree growth replacement revenue provided. Sec. 3:
Disparity reduction aid increased. Sec. 4: Out of home placement costs aid
offset HACA reduction delayed. Sec. 5: "Special levies" definition expanded.
Sec. 6: Levy limit base increased. Sec. 7: State takeover adjustments increased.
Sec. 8: Levies in excess of levy limits adjusted and regulations clarified. Sec.
9: City aid base increased. Sec. 10: Out of home placement cost reimbursement
provided and program implementation delayed. Sec. 11: Apartment tax base
replacement aid annual amount set. Sec. 12: County HACA amount added to
Apartment Tax base Replacement Aid.ARTICLE 7 ECONOMIC DEVELOPMENTSection 1:
Technical. Sec. 2: Border city sales tax exemptions provided. Sec. 3: Increment
pooling authorized. Sec. 4: TIF deficit reduction provision usage allowed. Sec.
5: Extended duration abatements established for qualified businesses. Sec. 6:
Housing replacement TIF district parcel limit increased. Sec. 7: Albert lea TIF
district established. Sec. 8: Rushford TIF extension provided. Sec. 9:
Minneapolis TIF district duration extension provided. Sec. 10: Minneapolis TIF
duration extensio provided. Sec. 11: Washburn Crosby Mill project grant
provided. Sec. 12: Dakota couny TIF district extension provided. Sec. 13:
Repealer.ARTICLE 8 MINERALS TAXESSection 1: School levy and aid offsets for
taconite school aids restored. Sec. 2: Taconite payment reduction prevented.
Sec. 3: Occupation tax statutory references corrected. Sec. 4: Technical. Sec.
5: Taconite school aid minimum guarantee reduced. Sec. 6: Collection and payment
of production tax regulations clarified. Sec. 7: Taconite school aid
distribution reduced. Sec. 8: Taconite production tax rate of distribution to
counties increased. Sec. 9: Taconite production tax rate of distribution for
property tax relief reduced. Sec. 10: Taconite economic development fund
industry production floor eliminated. Sec. 11: Taconite environmental fund per
ton distribution extended. Sec. 12: taconite production tax formulas regarding
frozen rates eliminated. Sec. 13: Taconite railroad aid "grandfather"
distribution reduced. Sec. 14: "Northeast Minnesota Economic Protection Trust
Fund Act" renamed the "Douglas J. Johnson Economic Protection Trust Fund Act."
Sec. 15: Economic protection trust fund extended 25 years. Sec. 16: Taconite aid
reimbursement technical corrections made. Sec. 17: Additional school district
distribution provided. Sec. 18: Revisor instruction.ARTICLE 9 DEPARTMENT OF
REVENUE POLICY PROVISIONSSection 1: Time limit for submitting claims for offset
established. Sec. 2: Expiration date extended for publication of names of
delinquent taxpayers. Sec. 3: Filing deadline for contesting a property tax
assessment extended relating to manufactured homes. Sec. 4: Conforming change.
Sec. 5: Agricultural property tax classification regulations modified. Sec. 6:
Automatic extension to file a partnership, "S" corporation, or fiduciary income
tax return provided. Sec. 7: Exemption for amounts paid for legend drugs
provided. Sec. 8: Conforming change to section 7. Sec. 9: "Delivered outside of
Minnesota" defined. Sec. 10: Exemption for fur clothing delivered outside of
Minnesota provided. Sec. 11: "Private communication service" definition
modified. Sec. 12: Delivery or distribution charges for printed materials
exemptions provided. Sec. 13: Liquor tax exemption for foreign diplomats
provided. Sec. 14: Pooling regulations for TIF deficits modified.ARTICLE 10
DEPARTMENT OF REVENUE TECHNICAL PROVISIONSSections 1-18: Technical statutory
references added and conforming changes provided. Sec. 19: Fur clothing use tax
clarified. Sec. 20: Use tax collection required. Sec. 21: Credit for furriers
who pay taxes to other jurisdictions provided.Sections 22-31: Technical and
conforming changes. Sec. 32: Repealer.ARTICLE 11 LOCAL LAWSSection 1: Moorhead
tax levy authorized. Sec. 2: St. Cloud area cities local taxes authorized to
fund regional airport. Taxes detailed.ARTICLE 12 MISCELLANEOUSSection 1: Budget
reserve increase provided. Sec. 2: Money credited to Minnesota Conservation Fund
account. Sec. 3: Technical. Sec. 4: Technical. Sec. 5: Technical. Sec. 6: Sales
tax permit information requirements clarified. Sec. 7: Technical. Sec. 8:
Requirement to file and estate tax return modified. Sec. 9: Exchange of data
between departments of labor and industry and revenue clarified. Sec. 10:
Minnesota estate tax set equal to the state credit allowed. Sec. 11: Technical.
Sec. 12: Technical. Sec. 13: Date modified. Sec. 14: "Lawful purpose" definition
modified. Sec. 15: School district bonds net debt limit percentage adjusted.
Sec. 16: Thief River Falls nonprofit corporation establishment authorized. Sec.
17: Money appropriated. Sec. 18: Repealer.AE