Minnesota Legislature
HF 878
3rd Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to public administration; making deficiency 1.3 appropriations for state government operations; 1.4 imposing certain conditions and directions; providing 1.5 a sales tax rebate; providing agricultural property 1.6 tax relief; changing income tax rates and brackets; 1.7 appropriating money; amending Minnesota Statutes 1998, 1.8 sections 290.06, subdivisions 2c and 2d; and 290.091, 1.9 subdivisions 1, 2, and 6. 1.10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.11 ARTICLE 1 1.12 APPROPRIATIONS 1.13 Section 1. [APPROPRIATIONS.] 1.14 The sums in this article are appropriated from the general 1.15 fund or other named fund to the agencies for the purposes 1.16 specified in this act for fiscal year 1999. The appropriations 1.17 in this article are one time only. 1.18 SUMMARY 1.19 CHILDREN, FAMILIES, 1.20 AND LEARNING DEPARTMENT $ 3,500,000 1.21 HUMAN SERVICES DEPARTMENT 11,647,000 1.22 ZOOLOGICAL BOARD 600,000 1.23 ECONOMIC SECURITY DEPARTMENT 370,000 1.24 CAMPAIGN FINANCE AND 1.25 PUBLIC DISCLOSURE BOARD 15,000 1.26 PUBLIC SAFETY DEPARTMENT 829,000 1.27 TOTAL $ 16,961,000 1.28 General Fund 4,685,000 2.1 Health Care Access Fund 11,647,000 2.2 Highway Users 2.3 Tax Distribution Fund 629,000 2.4 Total 16,961,000 2.5 APPROPRIATIONS 2.6 $ 2.7 Sec. 2. CHILDREN, FAMILIES, 2.8 AND LEARNING DEPARTMENT 3,500,000 2.9 $3,500,000 is added to the 2.10 appropriations in Laws 1997, First 2.11 Special Session chapter 4, article 10, 2.12 section 3, subdivision 2, as amended by 2.13 Laws 1998, chapter 398, article 8, 2.14 section 1, for costs associated with 2.15 educational litigation and may be used 2.16 only for those purposes. Any 2.17 unencumbered balance remaining at the 2.18 end of fiscal year 1999 does not cancel 2.19 but is available for fiscal year 2000. 2.20 Sec. 3. HUMAN SERVICES DEPARTMENT 11,647,000 2.21 $11,647,000 from the health care access 2.22 fund is added to the appropriations in 2.23 Laws 1997, chapter 225, article 7, 2.24 section 2, subdivision 1, as amended by 2.25 Laws 1998, chapter 407, article 1, 2.26 section 2, subdivision 3, paragraph 2.27 (a), for anticipated medical costs of 2.28 the MinnesotaCare program. 2.29 Sec. 4. ZOOLOGICAL BOARD 600,000 2.30 (a) $600,000 is added to the 2.31 appropriations in Laws 1997, chapter 2.32 216, section 4, subdivision 1, for zoo 2.33 operations. Notwithstanding Laws 1994, 2.34 chapter 643, section 27, subdivision 2, 2.35 as amended by Laws 1996, chapter 463, 2.36 section 54, the zoological board may 2.37 institute an admission fee increase 2.38 before April 1, 2000. 2.39 (b) The zoological board must submit a 2.40 report to the governor and legislature 2.41 by February 1, 2000, analyzing 2.42 alternative governing structures, 2.43 including but not limited to, 2.44 conversion to a private nonprofit or 2.45 local governmental entity. The report 2.46 must include analysis of the impact on 2.47 ownership of the facility, impacts on 2.48 employees, and ongoing costs to the 2.49 state related to any changes in 2.50 governance structure. Release of the 2.51 2001 appropriation is contingent upon 2.52 making significant progress toward 2.53 financial self-sufficiency. 2.54 Sec. 5. ECONOMIC SECURITY DEPARTMENT 370,000 2.55 (a) $370,000 is added to the 2.56 appropriations in Laws 1997, chapter 2.57 200, article 1, section 5, subdivision 2.58 3, for vocational rehabilitation and 3.1 independent living services to blind 3.2 Minnesotans. 3.3 (b) The commissioner of finance and the 3.4 commissioner of economic security are 3.5 directed to review the operation of the 3.6 state services for the blind to 3.7 determine why a deficiency occurred and 3.8 what steps should be taken to prevent a 3.9 deficiency in the future. The 3.10 commissioners are to report on this 3.11 issue to the legislature by January 15, 3.12 2000. 3.13 Sec. 6. CAMPAIGN FINANCE AND 3.14 PUBLIC DISCLOSURE BOARD 15,000 3.15 $15,000 is added to the appropriations 3.16 in Laws 1997, chapter 202, article 1, 3.17 section 8, for court-ordered payments. 3.18 Sec. 7. PUBLIC SAFETY DEPARTMENT 829,000 3.19 (a) Of the appropriation in this 3.20 section, $200,000 is added to the 3.21 appropriation in Laws 1997, chapter 3.22 159, article 1, section 4, subdivision 3.23 3, for additional costs for executive 3.24 protection. 3.25 (b) Of the appropriation in this 3.26 section, $629,000 from the highway 3.27 users tax distribution fund is added to 3.28 the appropriations in Laws 1997, 3.29 chapter 159, article 1, section 4, 3.30 subdivision 4, for additional costs 3.31 related to the production of motor 3.32 vehicle license plates. 3.33 Sec. 8. SECRETARY OF STATE 3.34 (a) The secretary of state must appoint 3.35 a project manager to oversee the 3.36 modifications of its business systems. 3.37 A project work plan and schedule must 3.38 be provided monthly to the year 2000 3.39 project office in the department of 3.40 administration. The secretary of state 3.41 must develop contingency plans, 3.42 including plans for funding and staff, 3.43 to be implemented if the year 2000 3.44 modification project does not meet the 3.45 project schedule agreed to with the 3.46 department of administration. 3.47 (b) The department of administration 3.48 must provide $975,000 of the unexpended 3.49 balance of the appropriations in Laws 3.50 1997, chapter 202, article 1, section 3.51 12, subdivision 7, and Laws 1998, 3.52 chapter 366, article 1, section 6, to 3.53 the office of the secretary of state 3.54 for modification of business systems to 3.55 address the year 2000 changes according 3.56 to paragraph (a). 3.57 Sec. 9. [EFFECTIVE DATE.] 3.58 This article is effective the day after its final enactment. 3.59 ARTICLE 2 4.1 SALES TAX REBATE 4.2 Section 1. [STATEMENT OF PURPOSE.] 4.3 (a) The state of Minnesota derives revenues from a variety 4.4 of taxes, fees, and other sources, including the state sales tax. 4.5 (b) It is fair and reasonable to refund the existing state 4.6 budget surplus in the form of a rebate of nonbusiness consumer 4.7 sales taxes paid by individuals in calendar year 1997. 4.8 (c) Information concerning the amount of sales tax paid at 4.9 various income levels is contained in the Minnesota tax 4.10 incidence report, which is written by the commissioner of 4.11 revenue and presented to the legislature according to Minnesota 4.12 Statutes, section 270.0682. 4.13 (d) It is fair and reasonable to use information contained 4.14 in the Minnesota tax incidence report to determine the 4.15 proportionate share of the sales tax rebate due each eligible 4.16 taxpayer since no effective or practical mechanism exists for 4.17 determining the amount of actual sales tax paid by each eligible 4.18 individual. 4.19 Sec. 2. [SALES TAX REBATE.] 4.20 (a) An individual who was eligible for a credit under Laws 4.21 1997, chapter 231, article 1, section 16, as amended by Laws 4.22 1997, First Special Session chapter 5, section 35, and Laws 4.23 1997, Third Special Session chapter 3, section 11, and Laws 4.24 1998, chapter 304, and Laws 1998, chapter 389, article 1, 4.25 section 3, and who filed for that credit on or before April 15, 4.26 1999, or who filed a 1997 Minnesota income tax return and had a 4.27 tax liability before refundable credits on that return of at 4.28 least $1 but did not file the claim for credit authorized under 4.29 Laws 1997, chapter 231, article 1, section 16, as amended, and 4.30 who was not claimed as a dependent on a 1997 federal income tax 4.31 return filed by another person, shall receive a sales tax rebate. 4.32 (b) The sales tax rebate for taxpayers who filed the claim 4.33 for credit authorized under Laws 1997, chapter 231, article 1, 4.34 section 16, as amended, or the 1997 Minnesota income tax return 4.35 as married filing joint or head of household must be computed 4.36 according to the following schedule: 5.1 Income Sales Tax Rebate 5.2 less than $2,500 $ 380 5.3 at least $2,500 but less than $5,000 $ 497 5.4 at least $5,000 but less than $10,000 $ 532 5.5 at least $10,000 but less than $15,000 $ 582 5.6 at least $15,000 but less than $20,000 $ 641 5.7 at least $20,000 but less than $25,000 $ 680 5.8 at least $25,000 but less than $30,000 $ 732 5.9 at least $30,000 but less than $35,000 $ 808 5.10 at least $35,000 but less than $40,000 $ 869 5.11 at least $40,000 but less than $45,000 $ 927 5.12 at least $45,000 but less than $50,000 $ 977 5.13 at least $50,000 but less than $60,000 $1,028 5.14 at least $60,000 but less than $70,000 $1,136 5.15 at least $70,000 but less than $80,000 $1,232 5.16 at least $80,000 but less than $90,000 $1,353 5.17 at least $90,000 but less than $100,000 $1,503 5.18 at least $100,000 but less than $120,000 $1,628 5.19 at least $120,000 but less than $140,000 $1,783 5.20 at least $140,000 but less than $160,000 $1,928 5.21 at least $160,000 but less than $180,000 $2,064 5.22 at least $180,000 but less than $200,000 $2,193 5.23 at least $200,000 but less than $400,000 $2,804 5.24 at least $400,000 but less than $600,000 $3,690 5.25 at least $600,000 but less than $800,000 $4,427 5.26 $800,000 and over $5,000 5.27 (c) The sales tax rebate for individuals who filed the 5.28 claim for credit authorized under Laws 1997, chapter 231, 5.29 article 1, section 16, as amended, or the 1997 Minnesota income 5.30 tax return, as single or married filing separately must be 5.31 computed according to the following schedule: 5.32 Income Sales Tax Rebate 5.33 less than $2,500 $ 217 5.34 at least $2,500 but less than $5,000 $ 264 5.35 at least $5,000 but less than $10,000 $ 318 5.36 at least $10,000 but less than $15,000 $ 432 6.1 at least $15,000 but less than $20,000 $ 492 6.2 at least $20,000 but less than $25,000 $ 526 6.3 at least $25,000 but less than $30,000 $ 546 6.4 at least $30,000 but less than $40,000 $ 604 6.5 at least $40,000 but less than $50,000 $ 688 6.6 at least $50,000 but less than $70,000 $ 823 6.7 at least $70,000 but less than $100,000 $1,016 6.8 at least $100,000 but less than $140,000 $1,224 6.9 at least $140,000 but less than $200,000 $1,478 6.10 at least $200,000 but less than $400,000 $2,004 6.11 $400,000 and over $2,500 6.12 (d) Individuals who were not residents of Minnesota for any 6.13 part of 1997 and who paid more than $10 in Minnesota sales tax 6.14 on nonbusiness consumer purchases in that year qualify for a 6.15 rebate under this paragraph only. Qualifying nonresidents must 6.16 file a claim for rebate on a form prescribed by the commissioner 6.17 before the later of May 15, 1999, or 30 days after the date of 6.18 enactment of this act. The claim must include receipts showing 6.19 the Minnesota sales tax paid and the date of the sale. Taxes 6.20 paid on purchases allowed in the computation of federal taxable 6.21 income or reimbursed by an employer are not eligible for the 6.22 rebate. The commissioner shall determine the qualifying taxes 6.23 paid and rebate the lesser of: 6.24 (1) 68.08 percent of that amount; or 6.25 (2) the maximum amount for which the claimant would have 6.26 been eligible as determined under paragraph (b) if the taxpayer 6.27 filed the 1997 federal income tax return as a married taxpayer 6.28 filing jointly or head of household, or as determined under 6.29 paragraph (c) for other taxpayers. 6.30 (e) "Income," for purposes of this section other than 6.31 paragraph (d), is taxable income as defined in section 63 of the 6.32 Internal Revenue Code of 1986, as amended through December 31, 6.33 1996, plus the sum of any additions to federal taxable income 6.34 for the taxpayer under Minnesota Statutes, section 290.01, 6.35 subdivision 19a, and reported on the original return submitted 6.36 to claim the credit under Laws 1997, chapter 231, article 1, 7.1 section 16, as amended, or by subsequent adjustments to that 7.2 return made within the time limits specified in paragraph (h). 7.3 For an individual who was a resident of Minnesota for less than 7.4 the entire year, the sales tax rebate equals the sales tax 7.5 rebate calculated under paragraph (b) or (c) multiplied by the 7.6 percentage determined pursuant to Minnesota Statutes, section 7.7 290.06, subdivision 2c, paragraph (e), as calculated on the 7.8 original return submitted to claim the credit under Laws 1997, 7.9 chapter 231, article 1, section 16, as amended, or by subsequent 7.10 adjustments to that return made within the time limits specified 7.11 in paragraph (h). For purposes of paragraph (d), "income" is 7.12 taxable income as defined in section 63 of the Internal Revenue 7.13 Code of 1986, as amended through December 31, 1996, and reported 7.14 on the taxpayer's original federal tax return for the first 7.15 taxable year beginning after December 31, 1996. 7.16 (f) The commissioner of revenue must begin making sales tax 7.17 rebates by June 1, 1999. Sales tax rebates not paid by July 1, 7.18 1999, shall bear interest at the rate specified in Minnesota 7.19 Statutes, section 270.75. 7.20 (g) A sales tax rebate shall not be adjusted based on 7.21 changes to the return on which the claim for credit authorized 7.22 under Laws 1997, chapter 231, article 1, section 16, as amended, 7.23 is based that are made by order of assessment after April 15, 7.24 1999, or made by the taxpayer that are filed with the 7.25 commissioner of revenue after April 15, 1999. 7.26 (h) Individuals who filed a joint claim for credit under 7.27 Laws 1997, chapter 231, article 1, section 16, as amended, shall 7.28 receive a joint sales tax rebate. After the sales tax rebate 7.29 has been issued, but before the check has been cashed, either 7.30 joint claimant may request a separate check for one-half of the 7.31 joint sales tax rebate. 7.32 (i) The sales tax rebate is a "Minnesota tax law" for 7.33 purposes of Minnesota Statutes, section 270B.01, subdivision 8. 7.34 (j) The sales tax rebate is "an overpayment of any tax 7.35 collected by the commissioner" for purposes of Minnesota 7.36 Statutes, section 270.07, subdivision 5. For purposes of this 8.1 paragraph, a joint sales tax rebate is payable to each spouse 8.2 equally. 8.3 (k) If the commissioner of revenue cannot locate an 8.4 individual entitled to a sales tax rebate by July 1, 2001, or if 8.5 an individual to whom a sales tax rebate was issued has not 8.6 cashed the check by July 1, 2001, the right to the sales tax 8.7 rebate shall lapse and the check shall be deposited in the 8.8 general fund. 8.9 (l) Individuals entitled to a sales tax rebate pursuant to 8.10 paragraph (a), but who did not receive one, and individuals who 8.11 receive a sales tax rebate that was not correctly computed, must 8.12 file a claim with the commissioner before July 1, 2000, in a 8.13 form prescribed by the commissioner. These claims shall be 8.14 treated as if they are a claim for refund under Minnesota 8.15 Statutes, section 289A.50, subdivisions 4 and 7. 8.16 (m) The sales tax rebate is a refund subject to revenue 8.17 recapture under Minnesota Statutes, chapter 270A. The 8.18 commissioner of revenue shall remit the entire refund to the 8.19 claimant agency, which shall, upon the request of the spouse who 8.20 does not owe the debt, refund one-half of the joint sales tax 8.21 rebate to the spouse who does not owe the debt. 8.22 (n) The amount necessary to make the sales tax rebates and 8.23 interest provided in this section is appropriated from the 8.24 general fund to the commissioner of revenue in fiscal years 2000 8.25 and 2001. 8.26 (o) If a sales tax rebate check is cashed by someone other 8.27 than the payee or payees of the check, and the commissioner of 8.28 revenue determines that the check has been forged or improperly 8.29 endorsed, the commissioner may issue an order of assessment for 8.30 the amount of the check against the person or persons cashing 8.31 it. The assessment must be made within two years after the 8.32 check is cashed, but if cashing the check constitutes theft 8.33 under Minnesota Statutes, section 609.52, or forgery under 8.34 Minnesota Statutes, section 609.631, the assessment can be made 8.35 at any time. The assessment may be appealed administratively 8.36 and judicially. The commissioner may take action to collect the 9.1 assessment in the same manner as provided by Minnesota Statutes, 9.2 chapter 289A, for any other order of the commissioner assessing 9.3 tax. 9.4 (p) Notwithstanding Minnesota Statutes, sections 9.031, 9.5 16A.40, 16B.49, 16B.50, and any other law to the contrary, the 9.6 commissioner of revenue may take whatever actions the 9.7 commissioner deems necessary to pay the rebates required by this 9.8 section, and may, in consultation with the commissioner of 9.9 finance and the state treasurer, contract with a private vendor 9.10 or vendors to process, print, and mail the rebate checks or 9.11 warrants required under this section and receive and disburse 9.12 state funds to pay those checks or warrants. 9.13 Sec. 3. [PAYMENT TO STATE.] 9.14 (a) A taxpayer receiving a rebate under section 2 may 9.15 endorse and return the rebate check to the state and designate 9.16 that the returned rebate must be deposited in one or more of the 9.17 following accounts for use only for the purposes designated in 9.18 this section: 9.19 (1) an account for the basic sliding fee child care program 9.20 for child care assistance to families administered by the 9.21 commissioner of children, families, and learning under Minnesota 9.22 Statutes, section 119B.03; 9.23 (2) an account to lower kindergarten through grade 6 9.24 classroom size and reduce instructor-to-student ratios to an 9.25 average level of 1 to 17 to be administered by the commissioner 9.26 of children, families, and learning; 9.27 (3) the affordable rental investment fund to be used by the 9.28 housing finance agency for family rental housing assistance 9.29 under Minnesota Statutes, section 462A.21, subdivision 8b; 9.30 (4) the contaminated site cleanup and development account 9.31 to be used by the commissioner of trade and economic development 9.32 for contamination cleanup development grants under Minnesota 9.33 Statutes, sections 116J.551 to 116J.556; 9.34 (5) an account to increase funding of the State Board of 9.35 the Arts for grants under chapter 129D; and 9.36 (6) the general fund for use as appropriated by law. 10.1 (b) Each rebate check shall have printed on the back of the 10.2 check that it may be endorsed to the state of Minnesota and used 10.3 for the designated option under paragraph (a). If more than one 10.4 use of the rebate is designated, the rebate must be divided 10.5 evenly between the designated options. If a check is endorsed 10.6 and mailed to the state and no option is designated, the check 10.7 must be deposited in the general fund. 10.8 (c) The rebate check shall be accompanied by a notice 10.9 prepared by the commissioner of revenue that explains the 10.10 taxpayer's option to endorse the check to the state, and 10.11 explains the uses of the funds that the taxpayer may designate. 10.12 In preparing the notice, the commissioner of revenue shall 10.13 consult with the commissioners or agencies that administer the 10.14 funds or accounts. The notice shall also explain that a 10.15 taxpayer may cash the rebate check and mail a contribution of 10.16 any amount to the state and that the contribution must be used 10.17 for the option or options under paragraph (a) as designated by 10.18 the taxpayer. The notice shall contain in bold print the 10.19 address to which the endorsed check or a state contribution may 10.20 be mailed. 10.21 (d) Funds endorsed and mailed to the state and 10.22 contributions mailed to the state under this section shall be 10.23 deposited by the commissioner of finance in the fund or account 10.24 designated, and are appropriated to the agency or commissioner 10.25 designated by the taxpayer or contributor for use as provided in 10.26 this section. Funds appropriated under this paragraph are 10.27 available until expended. 10.28 (e) Funds appropriated under this section are in addition 10.29 to any funds appropriated for the purposes given in this section 10.30 and may not be used for any other purposes including the 10.31 reduction of any other appropriations. Funds appropriated to a 10.32 commissioner or agency under this section are not included in 10.33 the department's or agency's budget base. 10.34 Sec. 4. [APPROPRIATIONS.] 10.35 $1,000,000 is appropriated from the general fund to the 10.36 commissioner of revenue to administer the sales tax rebate for 11.1 fiscal year 1999. Any unencumbered balance remaining on June 11.2 30, 1999, does not cancel but is available for expenditure by 11.3 the commissioner of revenue until June 30, 2001. 11.4 Sec. 5. [EFFECTIVE DATE.] 11.5 Sections 1 to 4 are effective the day following final 11.6 enactment. 11.7 ARTICLE 3 11.8 AGRICULTURAL TAX RELIEF 11.9 Section 1. [AGRICULTURAL ASSISTANCE IN 1999.] 11.10 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 11.11 subdivision apply to this section. 11.12 (b) "Acre" means an acre of effective agricultural use land 11.13 within the state of Minnesota as reported to the farm service 11.14 agency on form 156EZ. 11.15 (c) "Commissioner" means the commissioner of revenue. 11.16 (d) "Effective agricultural use land" means the land 11.17 suitable for growing an agricultural crop and excludes land 11.18 enrolled in the conservation reserve program established by 11.19 Minnesota Statutes, section 103F.515, or the water bank program 11.20 established by Minnesota Statutes, section 103F.601. 11.21 (e) "Farm" or "farm operation" means an agricultural 11.22 production operation with a unique farm number as reported on 11.23 form 156EZ to the farm service agency. 11.24 (f) "Farm operator" means a person who is identified as the 11.25 operator of a farm on form 156EZ filed with the farm service 11.26 agency. 11.27 (g) "Farm service agency" means the United States Farm 11.28 Service Agency. 11.29 (h) "Farmer" or "farmer at risk" means a person who 11.30 produces an agricultural crop or livestock and is reported to 11.31 the farm service agency as bearing a percentage of the risk for 11.32 the farm operation. 11.33 (i) "Livestock" means cattle, hogs, poultry, and sheep. 11.34 (j) "Livestock production facility" means a farm that has 11.35 produced at least $10,000 in sales of unprocessed livestock or 11.36 unprocessed dairy products as reported on schedule F or form 12.1 1065 or form 1120 or 1120S of the farmer's federal income tax 12.2 return for either taxable years beginning in calendar year 1997 12.3 or 1998. 12.4 (k) "Person" includes individuals, fiduciaries, estates, 12.5 trusts, partnerships, joint ventures, and corporations. 12.6 Subd. 2. [PAYMENT TO FARMERS.] Every farm operator may 12.7 apply on a separate form for each farm that they operate to the 12.8 commissioner by the later of three months following the day of 12.9 enactment of this act or June 30, 1999, for payments as provided 12.10 under this subdivision. The payment shall be made to each 12.11 farmer at risk for a farm operation and shall equal $4, 12.12 multiplied by the number of acres of the farm operation, 12.13 multiplied by the percentage of the risk borne by that farmer 12.14 for that farm operation. If total payments for a farm to all 12.15 farmers at risk for that farm exceed $5,600, the payment to each 12.16 farmer at risk shall be prorated so that the total payments to 12.17 all farmers at risk for that farm do not exceed $5,600. 12.18 Applications shall be based on information reported to the 12.19 farm service agency for crop year 1998 by December 31, 1998. 12.20 The applications shall include the social security number or 12.21 federal employer identification number or a producer number 12.22 assigned by the farm service agency for each farmer and the farm 12.23 service agency farm number from form 156EZ. The commissioner 12.24 shall prepare application forms for the payment and ensure that 12.25 they are available throughout the state. The commissioner shall 12.26 make the payment to each eligible farmer within 30 days of the 12.27 application. In no case will applications be accepted after the 12.28 later of six months following the day of enactment or September 12.29 30, 1999. 12.30 Subd. 3. [LIVESTOCK PRODUCERS.] A farmer who owns and 12.31 operates a livestock production facility on 160 acres or less 12.32 may elect the agricultural property tax refund under 12.33 subdivisions 4 to 8 in lieu of the per acre payment under 12.34 subdivision 2. To qualify, the farmer must apply for the refund 12.35 as provided in subdivisions 4 to 8. 12.36 Subd. 4. [REFUND.] The refund equals the full amount of 13.1 the property tax payment due and payable on May 15, 1999, on a 13.2 livestock production facility that is class 1b agricultural 13.3 homestead property or class 2a agricultural homestead property 13.4 as defined in Minnesota Statutes, section 273.13, excluding that 13.5 portion of the tax attributable to the house, garage, and 13.6 surrounding acre of land. If a portion of the property was 13.7 leased for the agricultural production year, the refund amount 13.8 shall be prorated so that only the portion of the property which 13.9 was not leased for the agricultural production year qualifies 13.10 for the refund. 13.11 Subd. 5. [CERTIFICATION.] The commissioner shall develop a 13.12 form by the later of 45 days following the day of enactment of 13.13 this act or May 15, 1999, for use by the county auditors to 13.14 ascertain qualification for the refund under subdivisions 4 to 13.15 8. The form shall require the property owner to certify (1) 13.16 that the owner operates a livestock production facility on 160 13.17 acres or less, and (2) the percentage of that property, if any, 13.18 that was leased to anyone for the agricultural production year. 13.19 Any person qualifying under subdivision 3 shall contact the 13.20 county auditor in the county where the livestock production 13.21 facility is located and shall file the required form with the 13.22 county auditor by the later of 75 days following the day of 13.23 enactment or June 15, 1999. 13.24 Subd. 6. [VERIFICATION.] The county auditor shall 13.25 determine the amount of the refund for all qualifying properties 13.26 in the county for which the owner has applied under subdivision 13.27 5. By the later of 100 days following the day of enactment of 13.28 this act or July 10, 1999, the county auditor shall notify all 13.29 applicants of the amount of the refund. 13.30 Subd. 7. [CERTIFICATION AND PAYMENT.] By June 30, 1999, 13.31 any person eligible for the refund under subdivisions 4 to 8 13.32 shall send the commissioner a copy of the certification that the 13.33 taxpayer received from the county auditor. In no case will 13.34 applications be accepted after the later of eight months 13.35 following the day of enactment or November 30, 1999. The 13.36 commissioner shall issue a refund to each qualifying taxpayer 14.1 who applied by June 30, 1999. 14.2 Subd. 8. [PROPERTY TAX REFUND.] Taxpayers benefiting from 14.3 the refund under subdivisions 4 to 8 must deduct the amount of 14.4 the refund from the net property taxes payable when applying for 14.5 a property tax refund under Minnesota Statutes 1998, section 14.6 290A.04, subdivision 2. 14.7 Subd. 9. [ALTERNATE QUALIFICATION.] (a) If an agricultural 14.8 production operation does not meet the definition of a farm 14.9 under subdivision 1 solely because the farm operator had not 14.10 filed a form 156EZ with the farm service agency, or because 14.11 there was an error in the farm service agency's records, the 14.12 commissioner may allow the farm operator to apply for payment 14.13 under subdivision 2 after providing such information as the 14.14 commissioner may require to determine the number of acres that 14.15 would be comparable to the effective agricultural use land 14.16 listed on form 156EZ. 14.17 (b) If the number of acres of effective agricultural use 14.18 land for crop year 1998 for a farm is greater than indicated in 14.19 the farm service agency's records, the commissioner may allow a 14.20 farm operator to apply for payment on the greater acreage after 14.21 providing such information as the commissioner may require. 14.22 (c) If a person who produced an agricultural crop or 14.23 livestock in 1998 and bore a portion of the risk for the farm 14.24 operation does not meet the definition of a farmer under 14.25 subdivision 1 solely because that information was not reported 14.26 to the farm service agency, or because there was an error in the 14.27 farm service agency's records, the commissioner may allow the 14.28 farmer to be included on an application for payment under 14.29 subdivision 2 after the farmer provides such information as the 14.30 commissioner may require to determine the farmer was at risk for 14.31 that farm. 14.32 Subd. 10. [LIMIT.] No person may receive a payment under 14.33 subdivision 2 or a property tax refund under subdivisions 4 to 8 14.34 that exceeds $5,600. 14.35 Subd. 11. [APPLICATION OF OTHER LAWS.] The payments under 14.36 subdivisions 2 and 7 are a "Minnesota tax law" for purposes of 15.1 Minnesota Statutes, section 270B.01, subdivision 8. 15.2 Subd. 12. [REMEDIES.] A farmer denied a refund may appeal 15.3 that denial under Minnesota Statutes, section 289A.50, 15.4 subdivision 7. 15.5 Subd. 13. [INTEREST.] Payments under subdivision 2 or 15.6 subdivisions 4 to 8 shall bear interest at the rate specified in 15.7 Minnesota Statutes, section 289A.55, subdivision 1, from the 15.8 later of the payment dates specified under subdivision 2 or 7 or 15.9 60 days after a complete payment application was filed. 15.10 Subd. 14. [PENALTIES.] If the commissioner determines that 15.11 claims for payments under subdivisions 2 and 7 are or were 15.12 excessive and were filed with fraudulent intent, the claim must 15.13 be disallowed in full. If the claim has been paid, the amount 15.14 disallowed must be recovered by assessment and collection under 15.15 Minnesota Statutes, chapter 289A. The assessment must be made 15.16 within two years after a check is cashed, but if cashing a check 15.17 constitutes theft under Minnesota Statutes, section 609.52, or 15.18 forgery under Minnesota Statutes, section 609.631, the 15.19 assessment may be made at any time. The assessment may be 15.20 appealed administratively and judicially. 15.21 Sec. 2. [APPROPRIATION.] 15.22 (a) The amount of the payments required under section 1, 15.23 subdivisions 2 and 7, is appropriated from the general fund to 15.24 the commissioner of revenue for fiscal year 2000. 15.25 (b) $68,000 is appropriated to the commissioner of revenue 15.26 for distribution to counties for the costs of administering 15.27 section 1, subdivisions 4 to 8. 15.28 Sec. 3. [EFFECTIVE DATE.] 15.29 Sections 1 and 2 are effective the day following final 15.30 enactment. 15.31 ARTICLE 4 15.32 INCOME TAX 15.33 Section 1. Minnesota Statutes 1998, section 290.06, 15.34 subdivision 2c, is amended to read: 15.35 Subd. 2c. [SCHEDULES OF RATES FOR INDIVIDUALS, ESTATES, 15.36 AND TRUSTS.] (a) The income taxes imposed by this chapter upon 16.1 married individuals filing joint returns and surviving spouses 16.2 as defined in section 2(a) of the Internal Revenue Code must be 16.3 computed by applying to their taxable net income the following 16.4 schedule of rates: 16.5 (1) On the first$19,910$34,500,65.5 percent; 16.6 (2) On all over$19,910$34,500, but not 16.7 over$79,120$113,360,87 percent; 16.8 (3) On all over$79,120$113,360,8.58.0 percent. 16.9 Married individuals filing separate returns, estates, and 16.10 trusts must compute their income tax by applying the above rates 16.11 to their taxable income, except that the income brackets will be 16.12 one-half of the above amounts. 16.13 (b) The income taxes imposed by this chapter upon unmarried 16.14 individuals must be computed by applying to taxable net income 16.15 the following schedule of rates: 16.16 (1) On the first$13,620$17,250,65.5 percent; 16.17 (2) On all over$13,620$17,250, but not 16.18 over$44,750$56,680,87 percent; 16.19 (3) On all over$44,750$56,680,8.58.0 percent. 16.20 (c) The income taxes imposed by this chapter upon unmarried 16.21 individuals qualifying as a head of household as defined in 16.22 section 2(b) of the Internal Revenue Code must be computed by 16.23 applying to taxable net income the following schedule of rates: 16.24 (1) On the first$16,770$25,870,65.5 percent; 16.25 (2) On all over$16,770$25,870, but not 16.26 over$67,390$85,020,87 percent; 16.27 (3) On all over$67,390$85,020,8.58.0 percent. 16.28 (d) In lieu of a tax computed according to the rates set 16.29 forth in this subdivision, the tax of any individual taxpayer 16.30 whose taxable net income for the taxable year is less than an 16.31 amount determined by the commissioner must be computed in 16.32 accordance with tables prepared and issued by the commissioner 16.33 of revenue based on income brackets of not more than $100. The 16.34 amount of tax for each bracket shall be computed at the rates 16.35 set forth in this subdivision, provided that the commissioner 16.36 may disregard a fractional part of a dollar unless it amounts to 17.1 50 cents or more, in which case it may be increased to $1. 17.2 (e) An individual who is not a Minnesota resident for the 17.3 entire year must compute the individual's Minnesota income tax 17.4 as provided in this subdivision. After the application of the 17.5 nonrefundable credits provided in this chapter, the tax 17.6 liability must then be multiplied by a fraction in which: 17.7 (1) the numerator is the individual's Minnesota source 17.8 federal adjusted gross income as defined in section 62 of the 17.9 Internal Revenue Code disregarding income or loss flowing from a 17.10 corporation having a valid election for the taxable year under 17.11 section 1362 of the Internal Revenue Code but which is not an 17.12 "S" corporation under section 290.9725 and increased by the 17.13 additions required under section 290.01, subdivision 19a, 17.14 clauses (1) and (9), after applying the allocation and 17.15 assignability provisions of section 290.081, clause (a), or 17.16 290.17; and 17.17 (2) the denominator is the individual's federal adjusted 17.18 gross income as defined in section 62 of the Internal Revenue 17.19 Code of 1986, increased by the amounts specified in section 17.20 290.01, subdivision 19a, clauses (1), (5), (6), (7), and (9), 17.21 and reduced by the amounts specified in section 290.01, 17.22 subdivision 19b, clauses (1), (11), and (12). 17.23 Sec. 2. Minnesota Statutes 1998, section 290.06, 17.24 subdivision 2d, is amended to read: 17.25 Subd. 2d. [INFLATION ADJUSTMENT OF BRACKETS.] (a) For 17.26 taxable years beginning after December 31,19911999, the 17.27 minimum and maximum dollar amounts for each rate bracket for 17.28 which a tax is imposed in subdivision 2c shall be adjusted for 17.29 inflation by the percentage determined under paragraph (b). For 17.30 the purpose of making the adjustment as provided in this 17.31 subdivision all of the rate brackets provided in subdivision 2c 17.32 shall be the rate brackets as they existed for taxable years 17.33 beginning after December 31,19901998, and before January 17.34 1,19922000. The rate applicable to any rate bracket must not 17.35 be changed. The dollar amounts setting forth the tax shall be 17.36 adjusted to reflect the changes in the rate brackets. The rate 18.1 brackets as adjusted must be rounded to the nearest $10 amount. 18.2 If the rate bracket ends in $5, it must be rounded up to the 18.3 nearest $10 amount. 18.4 (b) The commissioner shall adjust the rate brackets and by 18.5 the percentage determined pursuant to the provisions of section 18.6 1(f) of the Internal Revenue Code, except that in section 18.7 1(f)(3)(B) the word "19901998" shall be substituted for the 18.8 word "19871992." For19912000, the commissioner shall then 18.9 determine the percent change from the 12 months ending on August 18.10 31,19901998, to the 12 months ending on August 31,19911999, 18.11 and in each subsequent year, from the 12 months ending on August 18.12 31,19901998, to the 12 months ending on August 31 of the year 18.13 preceding the taxable year. The determination of the 18.14 commissioner pursuant to this subdivision shall not be 18.15 considered a "rule" and shall not be subject to the 18.16 Administrative Procedure Act contained in chapter 14. 18.17 No later than December 15 of each year, the commissioner 18.18 shall announce the specific percentage that will be used to 18.19 adjust the tax rate brackets. 18.20 Sec. 3. Minnesota Statutes 1998, section 290.091, 18.21 subdivision 1, is amended to read: 18.22 Subdivision 1. [IMPOSITION OF TAX.] In addition to all 18.23 other taxes imposed by this chapter a tax is imposed on 18.24 individuals, estates, and trusts equal to the excess (if any) of 18.25 (a) an amount equal toseven6.5 percent of alternative 18.26 minimum taxable income after subtracting the exemption amount, 18.27 over 18.28 (b) the regular tax for the taxable year. 18.29 Sec. 4. Minnesota Statutes 1998, section 290.091, 18.30 subdivision 2, is amended to read: 18.31 Subd. 2. [DEFINITIONS.] For purposes of the tax imposed by 18.32 this section, the following terms have the meanings given: 18.33 (a) "Alternative minimum taxable income" means the sum of 18.34 the following for the taxable year: 18.35 (1) the taxpayer's federal alternative minimum taxable 18.36 income as defined in section 55(b)(2) of the Internal Revenue 19.1 Code; 19.2 (2) the taxpayer's itemized deductions allowed in computing 19.3 federal alternative minimum taxable income, but excluding: 19.4 (i) the Minnesota charitable contribution deduction; 19.5 (ii) the medical expense deduction; 19.6 (iii) the casualty, theft, and disaster loss deduction; and 19.7 (iv) the impairment-related work expenses of a disabled 19.8 person; 19.9 (3) for depletion allowances computed under section 613A(c) 19.10 of the Internal Revenue Code, with respect to each property (as 19.11 defined in section 614 of the Internal Revenue Code), to the 19.12 extent not included in federal alternative minimum taxable 19.13 income, the excess of the deduction for depletion allowable 19.14 under section 611 of the Internal Revenue Code for the taxable 19.15 year over the adjusted basis of the property at the end of the 19.16 taxable year (determined without regard to the depletion 19.17 deduction for the taxable year); 19.18 (4) to the extent not included in federal alternative 19.19 minimum taxable income, the amount of the tax preference for 19.20 intangible drilling cost under section 57(a)(2) of the Internal 19.21 Revenue Code determined without regard to subparagraph (E); 19.22 (5) to the extent not included in federal alternative 19.23 minimum taxable income, the amount of interest income as 19.24 provided by section 290.01, subdivision 19a, clause (1); 19.25 (6) amounts added to federal taxable income as provided by 19.26 section 290.01, subdivision 19a, clauses (5), (6), and (7); 19.27 less the sum of the amounts determined under the following 19.28 clauses (1) to (4): 19.29 (1) interest income as defined in section 290.01, 19.30 subdivision 19b, clause (1); 19.31 (2) an overpayment of state income tax as provided by 19.32 section 290.01, subdivision 19b, clause (2), to the extent 19.33 included in federal alternative minimum taxable income; 19.34 (3) the amount of investment interest paid or accrued 19.35 within the taxable year on indebtedness to the extent that the 19.36 amount does not exceed net investment income, as defined in 20.1 section 163(d)(4) of the Internal Revenue Code. Interest does 20.2 not include amounts deducted in computing federal adjusted gross 20.3 income; and 20.4 (4) amounts subtracted from federal taxable income as 20.5 provided by section 290.01, subdivision 19b, clauses (11) and 20.6 (12). 20.7 In the case of an estate or trust, alternative minimum 20.8 taxable income must be computed as provided in section 59(c) of 20.9 the Internal Revenue Code. 20.10 (b) "Investment interest" means investment interest as 20.11 defined in section 163(d)(3) of the Internal Revenue Code. 20.12 (c) "Tentative minimum tax" equalsseven6.5 percent of 20.13 alternative minimum taxable income after subtracting the 20.14 exemption amount determined under subdivision 3. 20.15 (d) "Regular tax" means the tax that would be imposed under 20.16 this chapter (without regard to this section and section 20.17 290.032), reduced by the sum of the nonrefundable credits 20.18 allowed under this chapter. 20.19 (e) "Net minimum tax" means the minimum tax imposed by this 20.20 section. 20.21 (f) "Minnesota charitable contribution deduction" means a 20.22 charitable contribution deduction under section 170 of the 20.23 Internal Revenue Code to or for the use of an entity described 20.24 in section 290.21, subdivision 3, clauses (a) to (e). When the 20.25 federal deduction for charitable contributions is limited under 20.26 section 170(b) of the Internal Revenue Code, the allowable 20.27 contributions in the year of contribution are deemed to be first 20.28 contributions to entities described in section 290.21, 20.29 subdivision 3, clauses (a) to (e). 20.30 Sec. 5. Minnesota Statutes 1998, section 290.091, 20.31 subdivision 6, is amended to read: 20.32 Subd. 6. [CREDIT FOR PRIOR YEARS' LIABILITY.] (a) A credit 20.33 is allowed against the tax imposed by this chapter on 20.34 individuals, trusts, and estates equal to the minimum tax credit 20.35 for the taxable year. The minimum tax credit equals the 20.36 adjusted net minimum tax for taxable years beginning after 21.1 December 31, 1988, reduced by the minimum tax credits allowed in 21.2 a prior taxable year. The credit may not exceed the excess (if 21.3 any) for the taxable year of 21.4 (1) the regular tax, over 21.5 (2) the greater of (i) the tentative alternative minimum 21.6 tax, or (ii) zero. 21.7 (b) The adjusted net minimum tax for a taxable year equals 21.8 the lesser of the net minimum tax or the excess (if any) of 21.9 (1) the tentative minimum tax, over 21.10 (2)seven6.5 percent of the sum of 21.11 (i) adjusted gross income as defined in section 62 of the 21.12 Internal Revenue Code, 21.13 (ii) interest income as defined in section 290.01, 21.14 subdivision 19a, clause (1), 21.15 (iii) the amount added to federal taxable income as 21.16 provided by section 290.01, subdivision 19a, clauses (5), (6), 21.17 and (7), 21.18 (iv) interest on specified private activity bonds, as 21.19 defined in section 57(a)(5) of the Internal Revenue Code, to the 21.20 extent not included under clause (ii), 21.21 (v) depletion as defined in section 57(a)(1), determined 21.22 without regard to the last sentence of paragraph (1), of the 21.23 Internal Revenue Code, less 21.24 (vi) the deductions allowed in computing alternative 21.25 minimum taxable income provided in subdivision 2, paragraph (a), 21.26 clause (2) of the first series of clauses and clauses (1), (2), 21.27 (3), and (4) of the second series of clauses, and 21.28 (vii) the exemption amount determined under subdivision 3. 21.29 In the case of an individual who is not a Minnesota 21.30 resident for the entire year, adjusted net minimum tax must be 21.31 multiplied by the fraction defined in section 290.06, 21.32 subdivision 2c, paragraph (e). In the case of a trust or 21.33 estate, adjusted net minimum tax must be multiplied by the 21.34 fraction defined under subdivision 4, paragraph (b). 21.35 Sec. 6. [EFFECTIVE DATE.] 21.36 This article is effective for tax years beginning after 22.1 December 31, 1998.