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Capital IconMinnesota Legislature

HF 2362

2nd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/26/2007
1st Engrossment Posted on 04/25/2007
2nd Engrossment Posted on 04/26/2007

Current Version - 2nd Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33 1.34 1.35 1.36 1.37 1.38 1.39 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36 2.37 2.38 2.39 2.40 2.41 2.42 2.43 2.44 2.45 2.46 2.47 2.48 2.49 2.50 2.51 2.52 2.53 2.54 2.55 2.56 2.57 2.58 3.1 3.2 3.3 3.4 3.5
3.6 3.7 3.8
3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 3.36
4.1 4.2
4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32
5.33 5.34
5.35 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31
6.32 6.33
6.34 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 7.35 7.36 7.37 7.38 7.39 7.40 7.41 7.42 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27
8.28 8.29
8.30 8.31 8.32 8.33 8.34 8.35 8.36 8.37 8.38 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18
9.19 9.20
9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 9.35 9.36 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12
10.13 10.14
10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26
10.27 10.28 10.29 10.30 10.31 10.32 10.33 10.34 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9
11.10 11.11
11.12 11.13
11.14 11.15
11.16 11.17
11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13
12.14
12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 12.34 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 13.33 13.34 13.35 13.36 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33 14.34 14.35 14.36 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 15.34 15.35 15.36 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 16.33 16.34 16.35 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14
17.15 17.16
17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 18.1 18.2
18.3 18.4
18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25
18.26
18.27 18.28 18.29 18.30 18.31 18.32 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27
19.28 19.29
19.30 19.31 19.32 19.33
20.1 20.2
20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 20.31 20.32 20.33 20.34 20.35 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 21.33 21.34 21.35
22.1 22.2
22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28
22.29
22.30 22.31 22.32 22.33 22.34 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26
23.27
23.28 23.29 23.30 23.31 23.32 23.33 23.34
24.1 24.2
24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10
24.11 24.12
24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 24.33
25.1 25.2
25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13
25.14
25.15 25.16
25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32
26.1 26.2
26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12
26.13 26.14
26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 26.33 26.34 27.1 27.2 27.3 27.4 27.5 27.6
27.7 27.8 27.9 27.10 27.11
27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32
27.33
28.1 28.2 28.3 28.4 28.5 28.6
28.7 28.8
28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 28.34
29.1 29.2
29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26
29.27 29.28
29.29 29.30 29.31 29.32 29.33 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 30.34 30.35 30.36 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 31.32 31.33 31.34
31.35 31.36
32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14
32.15
32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 32.33 32.34 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11
33.12 33.13
33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 33.32 33.33 33.34 33.35 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 34.33 34.34 34.35 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32 35.33 35.34 35.35 35.36 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13
36.14
36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 36.31 36.32 36.33 36.34 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 37.33 37.34 37.35 37.36 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 38.32 38.33 38.34 38.35 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 39.34 39.35 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18
40.19 40.20 40.21 40.22
40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 40.32 40.33 40.34 40.35 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 41.33 41.34 41.35 41.36 42.1 42.2 42.3 42.4 42.5
42.6 42.7
42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32
42.33 42.34
43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 43.34 43.35 43.36 44.1 44.2 44.3 44.4 44.5 44.6
44.7 44.8
44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 44.32 44.33 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32 45.33 45.34 45.35 45.36 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 46.33
46.34 46.35 47.1 47.2
47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33 47.34 47.35 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 48.33 48.34 48.35 48.36 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 49.33
49.34 49.35
50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 50.33 50.34 50.35 50.36 51.1 51.2 51.3 51.4 51.5
51.6 51.7
51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 51.31 51.32 51.33 51.34 51.35 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 52.33 52.34 52.35 52.36 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 53.30 53.31 53.32 53.33 53.34 53.35 53.36 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32 54.33 54.34 54.35 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30 55.31 55.32 55.33 55.34 55.35 55.36 56.1 56.2 56.3 56.4 56.5 56.6
56.7 56.8 56.9 56.10 56.11 56.12
56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22
56.23 56.24
56.25 56.26 56.27 56.28 56.29 56.30 56.31 56.32 56.33 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22
57.23 57.24
57.25 57.26 57.27 57.28 57.29 57.30 57.31 57.32 57.33 57.34 57.35 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11
58.12 58.13
58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 58.32 58.33 58.34 58.35 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 59.34 59.35 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21
60.22 60.23
60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 60.33 60.34 60.35 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16
61.17 61.18
61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 61.34 62.1 62.2 62.3 62.4 62.5 62.6 62.7
62.8 62.9
62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26
62.27 62.28
62.29 62.30 62.31 62.32 62.33 63.1 63.2
63.3
63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17
63.18
63.19 63.20 63.21 63.22 63.23 63.24
63.25 63.26
63.27 63.28 63.29 63.30 63.31 63.32 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18
64.19 64.20
64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29
64.30 64.31
64.32 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9
65.10 65.11
65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22
65.23 65.24
65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8
66.9 66.10
66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 66.33 66.34 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26
67.27
67.28 67.29 67.30 67.31 67.32 67.33 67.34 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9
68.10 68.11
68.12 68.13 68.14
68.15
68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 68.33 69.1 69.2 69.3 69.4
69.5 69.6
69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20
69.21 69.22
69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 70.33 70.34 70.35 70.36 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28
71.29 71.30
71.31 71.32 71.33 71.34 71.35 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21
72.22 72.23
72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 72.33 72.34 72.35 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 73.32 73.33 73.34 73.35
74.1 74.2
74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31 74.32 74.33 74.34 74.35 75.1 75.2 75.3 75.4 75.5 75.6
75.7 75.8
75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20
75.21 75.22
75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 75.32 76.1 76.2 76.3
76.4 76.5 76.6
76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25
76.26 76.27
76.28 76.29 76.30 76.31 76.32 76.33 77.1 77.2
77.3 77.4
77.5 77.6 77.7 77.8 77.9
77.10 77.11
77.12 77.13 77.14 77.15 77.16 77.17 77.18
77.19 77.20
77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 78.1 78.2
78.3 78.4
78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14
78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30 78.31 78.32 78.33 78.34 79.1 79.2 79.3 79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13
79.14
79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 79.32 79.33 79.34 80.1 80.2
80.3
80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17 80.18 80.19
80.20
80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 80.32 80.33 81.1 81.2
81.3
81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17
81.18
81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31 81.32 82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14
82.15 82.16
82.17 82.18 82.19 82.20 82.21
82.22
82.23 82.24 82.25 82.26 82.27 82.28
82.29 82.30
83.1 83.2
83.3 83.4 83.5 83.6 83.7 83.8 83.9 83.10 83.11 83.12 83.13 83.14
83.15 83.16
83.17 83.18 83.19 83.20 83.21 83.22 83.23 83.24 83.25 83.26 83.27 83.28 83.29 83.30 83.31 84.1 84.2 84.3
84.4 84.5
84.6 84.7 84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29 84.30 84.31 84.32 84.33 84.34 84.35 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23 85.24 85.25 85.26 85.27 85.28 85.29 85.30 85.31 85.32 85.33 85.34
85.35 85.36
86.1 86.2 86.3 86.4 86.5 86.6 86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30 86.31 86.32 86.33 86.34 86.35 86.36 87.1 87.2 87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30 87.31 87.32 87.33 87.34 88.1 88.2 88.3 88.4 88.5 88.6 88.7 88.8 88.9 88.10 88.11 88.12 88.13 88.14 88.15 88.16 88.17 88.18 88.19 88.20 88.21 88.22 88.23 88.24 88.25 88.26 88.27
88.28 88.29 88.30
88.31 88.32 88.33 88.34 88.35 89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11 89.12 89.13 89.14 89.15 89.16 89.17 89.18 89.19 89.20 89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28 89.29 89.30 89.31 89.32 89.33 89.34 89.35 90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8 90.9 90.10 90.11 90.12 90.13 90.14 90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27
90.28 90.29
90.30 90.31 90.32 90.33 90.34 90.35 91.1 91.2 91.3 91.4 91.5 91.6 91.7 91.8 91.9 91.10 91.11 91.12 91.13 91.14 91.15 91.16 91.17 91.18 91.19 91.20 91.21 91.22 91.23 91.24 91.25 91.26 91.27 91.28 91.29 91.30 91.31 91.32 91.33 91.34 91.35 91.36 92.1 92.2 92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11 92.12 92.13 92.14 92.15 92.16 92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30 92.31 92.32 92.33 92.34 92.35 92.36 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11 93.12 93.13
93.14 93.15
93.16 93.17 93.18 93.19 93.20 93.21 93.22 93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31 93.32 93.33 93.34 93.35 94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15 94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23 94.24
94.25 94.26
94.27 94.28 94.29 94.30 94.31 94.32 94.33 94.34 94.35 95.1 95.2 95.3 95.4 95.5 95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21 95.22 95.23 95.24 95.25 95.26
95.27 95.28 95.29 95.30
95.31 95.32 95.33 95.34 95.35 95.36 95.37 96.1 96.2 96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14
96.15 96.16 96.17 96.18
96.19 96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 96.33 96.34 96.35 97.1 97.2 97.3 97.4 97.5 97.6 97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16 97.17 97.18 97.19 97.20 97.21 97.22 97.23 97.24 97.25 97.26 97.27 97.28 97.29 97.30 97.31 97.32 97.33 97.34 97.35 97.36 98.1 98.2 98.3 98.4 98.5 98.6 98.7 98.8 98.9 98.10 98.11 98.12 98.13 98.14 98.15 98.16 98.17 98.18 98.19 98.20 98.21 98.22 98.23 98.24 98.25 98.26 98.27 98.28 98.29 98.30 98.31 98.32 98.33 98.34 98.35 99.1 99.2
99.3 99.4 99.5
99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30 99.31 99.32 99.33 99.34 99.35 100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11 100.12 100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 100.32 100.33 100.34 100.35 100.36
101.1 101.2
101.3 101.4 101.5 101.6 101.7 101.8 101.9
101.10 101.11 101.12 101.13
101.14 101.15 101.16
101.17 101.18
101.19 101.20 101.21 101.22 101.23
101.24
101.25 101.26 101.27 101.28 101.29 101.30 101.31 102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30
102.31 102.32
102.33 102.34 103.1 103.2 103.3 103.4 103.5 103.6 103.7 103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19 103.20 103.21 103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 103.31 103.32 103.33
103.34
103.35 104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 104.31 104.32 104.33 104.34 104.35 104.36 105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 105.33 105.34 105.35 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32
106.33 106.34 106.35
107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8
107.9 107.10 107.11
107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25 107.26 107.27 107.28 107.29 107.30 107.31 107.32 107.33 107.34 107.35 108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8 108.9 108.10 108.11 108.12 108.13 108.14 108.15 108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23 108.24
108.25 108.26
108.27 108.28 108.29 108.30 108.31 108.32 108.33 108.34 108.35 109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13
109.14 109.15
109.16 109.17 109.18 109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26 109.27 109.28 109.29 109.30 109.31 109.32 109.33 109.34 109.35 110.1 110.2 110.3 110.4 110.5 110.6 110.7 110.8 110.9 110.10 110.11 110.12 110.13 110.14 110.15 110.16 110.17 110.18 110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29
110.30 110.31
110.32 110.33 110.34 111.1 111.2 111.3 111.4 111.5 111.6 111.7 111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30 111.31 111.32 111.33 111.34 111.35 111.36 112.1 112.2 112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15
112.16 112.17
112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25 112.26 112.27 112.28 112.29 112.30 112.31 112.32 112.33 112.34 112.35 113.1 113.2 113.3 113.4
113.5 113.6 113.7
113.8 113.9 113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23 113.24 113.25 113.26 113.27 113.28 113.29 113.30 113.31 113.32 113.33 113.34 113.35 114.1 114.2
114.3 114.4
114.5 114.6 114.7 114.8 114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18 114.19 114.20 114.21 114.22 114.23 114.24 114.25 114.26 114.27 114.28 114.29 114.30 114.31 114.32 114.33 114.34 114.35
115.1 115.2
115.3 115.4 115.5 115.6 115.7 115.8 115.9 115.10 115.11 115.12 115.13 115.14 115.15 115.16 115.17 115.18 115.19 115.20 115.21 115.22 115.23 115.24 115.25 115.26 115.27 115.28 115.29 115.30 115.31 115.32 115.33 115.34 115.35 116.1 116.2 116.3 116.4 116.5 116.6 116.7 116.8 116.9 116.10 116.11 116.12 116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20 116.21 116.22 116.23 116.24 116.25 116.26 116.27 116.28 116.29 116.30 116.31 116.32
116.33 116.34
117.1 117.2 117.3 117.4 117.5 117.6 117.7 117.8 117.9 117.10 117.11 117.12 117.13 117.14 117.15 117.16 117.17 117.18 117.19 117.20 117.21 117.22 117.23 117.24
117.25 117.26
117.27 117.28 117.29 117.30 117.31 117.32 117.33
118.1 118.2 118.3
118.4 118.5
118.6 118.7 118.8 118.9 118.10 118.11 118.12 118.13
118.14 118.15 118.16 118.17 118.18 118.19 118.20 118.21 118.22 118.23 118.24 118.25 118.26 118.27 118.28 118.29 118.30 118.31 118.32 118.33 118.34 119.1 119.2 119.3 119.4 119.5 119.6 119.7
119.8 119.9
119.10 119.11 119.12 119.13 119.14 119.15 119.16 119.17 119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30 119.31 119.32 119.33
120.1 120.2
120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11 120.12 120.13 120.14 120.15 120.16
120.17 120.18
120.19 120.20 120.21 120.22 120.23 120.24 120.25 120.26 120.27 120.28 120.29 120.30 120.31 120.32 120.33 121.1 121.2 121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19 121.20 121.21 121.22 121.23 121.24 121.25 121.26 121.27 121.28 121.29 121.30 121.31 121.32 121.33 121.34 121.35 121.36 122.1 122.2 122.3 122.4 122.5 122.6
122.7
122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20
122.21 122.22
122.23 122.24 122.25 122.26 122.27 122.28 122.29 122.30 122.31 122.32 123.1 123.2 123.3 123.4 123.5 123.6 123.7 123.8 123.9 123.10 123.11 123.12 123.13 123.14 123.15 123.16 123.17 123.18
123.19
123.20 123.21 123.22 123.23 123.24
123.25 123.26
123.27 123.28 123.29 123.30 123.31 123.32 124.1 124.2 124.3 124.4 124.5 124.6 124.7 124.8 124.9 124.10 124.11 124.12 124.13 124.14 124.15 124.16 124.17 124.18 124.19 124.20 124.21 124.22 124.23 124.24 124.25 124.26 124.27 124.28 124.29 124.30 124.31 124.32 124.33 124.34 124.35 124.36
125.1 125.2
125.3 125.4 125.5 125.6 125.7 125.8 125.9 125.10 125.11 125.12 125.13 125.14
125.15 125.16 125.17 125.18 125.19 125.20
125.21 125.22
125.23 125.24 125.25 125.26 125.27 125.28 125.29 125.30 125.31 125.32 126.1 126.2 126.3 126.4 126.5 126.6 126.7 126.8 126.9 126.10 126.11 126.12 126.13 126.14 126.15 126.16 126.17 126.18 126.19 126.20 126.21 126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30 126.31 126.32 126.33 126.34 126.35
127.1 127.2
127.3 127.4 127.5 127.6 127.7 127.8 127.9 127.10 127.11
127.12 127.13
127.14 127.15 127.16 127.17 127.18 127.19 127.20 127.21
127.22 127.23
127.24 127.25 127.26 127.27 127.28 127.29 127.30 127.31 127.32
128.1 128.2
128.3 128.4 128.5 128.6 128.7 128.8 128.9 128.10 128.11 128.12
128.13 128.14
128.15 128.16 128.17 128.18 128.19 128.20 128.21 128.22
128.23 128.24
128.25 128.26 128.27 128.28 128.29 128.30 128.31 129.1 129.2
129.3 129.4
129.5 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13
129.14
129.15 129.16 129.17 129.18 129.19 129.20 129.21 129.22
129.23 129.24
129.25 129.26 129.27 129.28 129.29 129.30 129.31 130.1 130.2
130.3 130.4
130.5 130.6 130.7 130.8 130.9 130.10 130.11 130.12 130.13
130.14 130.15
130.16 130.17 130.18 130.19 130.20 130.21 130.22 130.23 130.24
130.25 130.26
130.27 130.28 130.29 130.30 130.31 130.32 131.1 131.2 131.3
131.4 131.5
131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14
131.15 131.16
131.17 131.18 131.19 131.20 131.21 131.22 131.23 131.24 131.25
131.26 131.27
131.28 131.29 131.30 131.31 131.32 132.1 132.2 132.3 132.4 132.5 132.6 132.7 132.8
132.9 132.10
132.11 132.12 132.13 132.14 132.15 132.16
132.17 132.18
132.19 132.20 132.21 132.22 132.23 132.24 132.25 132.26 132.27 132.28 132.29 132.30 132.31 132.32 132.33 133.1 133.2 133.3 133.4 133.5 133.6 133.7 133.8 133.9 133.10 133.11 133.12 133.13 133.14 133.15
133.16
133.17 133.18 133.19 133.20 133.21
133.22
133.23 133.24 133.25 133.26 133.27 133.28 133.29 133.30 133.31 133.32 133.33 134.1 134.2 134.3 134.4 134.5 134.6 134.7
134.8
134.9 134.10 134.11 134.12 134.13 134.14 134.15 134.16 134.17 134.18
134.19
134.20 134.21 134.22 134.23 134.24 134.25 134.26 134.27 134.28 134.29 134.30 134.31 135.1 135.2 135.3 135.4 135.5
135.6
135.7 135.8 135.9 135.10 135.11 135.12 135.13 135.14 135.15 135.16 135.17 135.18 135.19 135.20 135.21 135.22 135.23 135.24 135.25 135.26 135.27 135.28 135.29 135.30 135.31 135.32 135.33 135.34 136.1 136.2 136.3 136.4 136.5 136.6 136.7 136.8 136.9 136.10 136.11 136.12 136.13 136.14 136.15 136.16 136.17 136.18 136.19 136.20 136.21 136.22 136.23 136.24 136.25 136.26 136.27 136.28 136.29 136.30 136.31 136.32 136.33
136.34 136.35
137.1 137.2 137.3 137.4 137.5 137.6 137.7 137.8 137.9 137.10 137.11 137.12 137.13 137.14 137.15 137.16 137.17 137.18 137.19 137.20 137.21 137.22
137.23 137.24 137.25
137.26 137.27 137.28 137.29 137.30 137.31 137.32 137.33 137.34 137.35 138.1 138.2 138.3 138.4 138.5 138.6 138.7 138.8 138.9 138.10 138.11 138.12 138.13 138.14 138.15 138.16 138.17 138.18 138.19 138.20 138.21 138.22 138.23 138.24 138.25 138.26 138.27 138.28 138.29 138.30 138.31 138.32 138.33 138.34 138.35 139.1 139.2 139.3 139.4 139.5 139.6 139.7 139.8 139.9 139.10 139.11 139.12
139.13 139.14 139.15
139.16 139.17 139.18 139.19 139.20 139.21 139.22 139.23 139.24 139.25 139.26 139.27 139.28 139.29 139.30 139.31 139.32 139.33 139.34 139.35 140.1 140.2 140.3 140.4 140.5 140.6 140.7 140.8 140.9 140.10 140.11 140.12 140.13
140.14 140.15 140.16
140.17 140.18 140.19 140.20 140.21 140.22 140.23 140.24 140.25 140.26 140.27 140.28 140.29 140.30 140.31 140.32 140.33 140.34 141.1 141.2 141.3 141.4 141.5 141.6 141.7 141.8 141.9 141.10 141.11 141.12 141.13 141.14 141.15 141.16 141.17
141.18 141.19 141.20
141.21 141.22 141.23 141.24 141.25 141.26 141.27 141.28 141.29 141.30 141.31 141.32 141.33 141.34 141.35 142.1 142.2 142.3 142.4 142.5 142.6 142.7 142.8 142.9 142.10 142.11 142.12
142.13
142.14 142.15
142.16 142.17 142.18 142.19 142.20 142.21 142.22 142.23 142.24 142.25 142.26 142.27 142.28 142.29 142.30 142.31 142.32 143.1 143.2 143.3 143.4 143.5 143.6 143.7 143.8 143.9 143.10 143.11 143.12 143.13 143.14 143.15 143.16 143.17 143.18 143.19 143.20 143.21 143.22 143.23 143.24 143.25 143.26 143.27 143.28 143.29 143.30 143.31 143.32 143.33 143.34 143.35 143.36
144.1
144.2 144.3 144.4 144.5 144.6 144.7 144.8 144.9
144.10
144.11 144.12 144.13 144.14 144.15 144.16 144.17 144.18 144.19 144.20 144.21 144.22 144.23 144.24 144.25 144.26 144.27 144.28 144.29 144.30 144.31
144.32
145.1 145.2 145.3 145.4 145.5 145.6 145.7 145.8 145.9 145.10 145.11 145.12 145.13 145.14 145.15 145.16 145.17 145.18
145.19 145.20
145.21 145.22 145.23 145.24 145.25 145.26 145.27 145.28 145.29 145.30 145.31 145.32 145.33 145.34 145.35 146.1 146.2 146.3
146.4
146.5 146.6 146.7 146.8 146.9 146.10 146.11 146.12 146.13 146.14 146.15 146.16 146.17 146.18 146.19 146.20 146.21 146.22 146.23 146.24 146.25 146.26 146.27 146.28 146.29 146.30 146.31 146.32 146.33 146.34 146.35 147.1 147.2 147.3 147.4 147.5 147.6 147.7 147.8 147.9 147.10 147.11 147.12 147.13 147.14 147.15 147.16 147.17 147.18 147.19 147.20 147.21 147.22 147.23 147.24 147.25 147.26 147.27 147.28 147.29 147.30 147.31 147.32 147.33 147.34 148.1 148.2 148.3
148.4 148.5
148.6 148.7 148.8 148.9 148.10 148.11 148.12 148.13 148.14 148.15 148.16 148.17 148.18 148.19 148.20 148.21 148.22 148.23
148.24 148.25
148.26 148.27 148.28 148.29 148.30 148.31 148.32 149.1 149.2
149.3 149.4
149.5 149.6 149.7 149.8 149.9 149.10 149.11 149.12 149.13 149.14 149.15 149.16 149.17 149.18 149.19 149.20 149.21 149.22 149.23 149.24 149.25 149.26 149.27 149.28 149.29 149.30 149.31 149.32 149.33 149.34 149.35 150.1 150.2 150.3 150.4 150.5 150.6 150.7 150.8 150.9 150.10 150.11
150.12 150.13
150.14 150.15 150.16 150.17 150.18 150.19 150.20 150.21 150.22 150.23 150.24 150.25 150.26 150.27 150.28 150.29 150.30 150.31 150.32 150.33 150.34 150.35 151.1 151.2 151.3 151.4 151.5 151.6 151.7 151.8 151.9 151.10 151.11 151.12 151.13 151.14 151.15 151.16 151.17 151.18 151.19 151.20 151.21 151.22 151.23 151.24 151.25 151.26 151.27 151.28 151.29 151.30 151.31 151.32 151.33 151.34 151.35 152.1 152.2 152.3 152.4
152.5 152.6
152.7 152.8 152.9 152.10 152.11 152.12 152.13 152.14 152.15 152.16 152.17 152.18 152.19 152.20 152.21 152.22 152.23 152.24 152.25 152.26
152.27 152.28
152.29 152.30 152.31 152.32 153.1 153.2 153.3 153.4 153.5 153.6 153.7 153.8 153.9 153.10 153.11 153.12 153.13 153.14 153.15 153.16 153.17 153.18 153.19 153.20 153.21 153.22 153.23 153.24 153.25 153.26 153.27 153.28 153.29 153.30 153.31 153.32 153.33 153.34 153.35 154.1 154.2
154.3 154.4 154.5
154.6 154.7 154.8 154.9 154.10 154.11 154.12 154.13
154.14 154.15 154.16 154.17
154.18 154.19 154.20 154.21 154.22 154.23 154.24 154.25 154.26 154.27 154.28 154.29 154.30 154.31 154.32 154.33 155.1 155.2 155.3 155.4 155.5 155.6 155.7
155.8 155.9
155.10 155.11 155.12 155.13 155.14 155.15 155.16 155.17 155.18 155.19 155.20 155.21 155.22 155.23 155.24 155.25 155.26 155.27
155.28 155.29 155.30
155.31 155.32 155.33 156.1 156.2 156.3 156.4 156.5 156.6 156.7 156.8 156.9 156.10 156.11 156.12 156.13 156.14 156.15 156.16 156.17 156.18 156.19 156.20 156.21 156.22 156.23 156.24 156.25 156.26 156.27 156.28 156.29 156.30 156.31 156.32 156.33 156.34 156.35 156.36 157.1 157.2 157.3 157.4 157.5 157.6 157.7 157.8
157.9 157.10
157.11 157.12 157.13 157.14 157.15 157.16 157.17 157.18 157.19 157.20 157.21 157.22 157.23 157.24 157.25 157.26 157.27 157.28 157.29 157.30 157.31 157.32 157.33 157.34 157.35 158.1 158.2 158.3 158.4 158.5 158.6 158.7 158.8 158.9 158.10 158.11 158.12 158.13 158.14 158.15 158.16 158.17 158.18 158.19 158.20 158.21 158.22 158.23 158.24 158.25 158.26 158.27 158.28 158.29 158.30 158.31 158.32 158.33 158.34 158.35 158.36 159.1 159.2 159.3 159.4 159.5 159.6 159.7 159.8
159.9 159.10
159.11 159.12 159.13 159.14 159.15 159.16 159.17 159.18 159.19 159.20 159.21 159.22 159.23 159.24 159.25
159.26 159.27 159.28
159.29 159.30 159.31 159.32 159.33 160.1 160.2 160.3 160.4 160.5 160.6 160.7 160.8 160.9 160.10 160.11 160.12 160.13 160.14 160.15 160.16 160.17
160.18 160.19
160.20 160.21 160.22 160.23 160.24 160.25 160.26 160.27 160.28 160.29 160.30 160.31 160.32 160.33 160.34 161.1 161.2 161.3 161.4 161.5
161.6
161.7 161.8 161.9 161.10 161.11 161.12 161.13 161.14 161.15 161.16 161.17 161.18 161.19 161.20 161.21 161.22 161.23 161.24 161.25 161.26 161.27 161.28 161.29 161.30 161.31 161.32 161.33 161.34 162.1 162.2 162.3 162.4
162.5 162.6
162.7 162.8 162.9 162.10 162.11 162.12 162.13 162.14 162.15 162.16 162.17 162.18 162.19 162.20 162.21 162.22 162.23 162.24 162.25 162.26 162.27 162.28
162.29
162.30 162.31 162.32 162.33 163.1 163.2 163.3 163.4 163.5 163.6 163.7 163.8 163.9 163.10 163.11 163.12 163.13 163.14 163.15 163.16 163.17 163.18 163.19 163.20 163.21 163.22 163.23
163.24
163.25 163.26 163.27 163.28 163.29 163.30 163.31 163.32 163.33 163.34 164.1 164.2 164.3
164.4
164.5 164.6 164.7 164.8 164.9 164.10 164.11 164.12 164.13 164.14 164.15 164.16 164.17 164.18 164.19 164.20 164.21 164.22 164.23 164.24 164.25 164.26 164.27 164.28 164.29 164.30 164.31 164.32 164.33 165.1 165.2 165.3 165.4 165.5 165.6 165.7 165.8 165.9 165.10 165.11 165.12 165.13 165.14 165.15 165.16 165.17 165.18 165.19 165.20 165.21 165.22 165.23 165.24 165.25 165.26 165.27 165.28 165.29 165.30 165.31 165.32 165.33 165.34 165.35 165.36 166.1 166.2 166.3 166.4 166.5 166.6 166.7 166.8 166.9 166.10 166.11 166.12 166.13 166.14 166.15 166.16 166.17 166.18 166.19 166.20 166.21 166.22 166.23 166.24 166.25 166.26 166.27 166.28 166.29 166.30 166.31 166.32 166.33 166.34
167.1 167.2 167.3 167.4 167.5 167.6 167.7
167.8
167.9 167.10 167.11 167.12 167.13 167.14 167.15 167.16 167.17 167.18
167.19
167.20 167.21 167.22 167.23 167.24 167.25
167.26
167.27 167.28 167.29 167.30 167.31 167.32 168.1 168.2 168.3 168.4 168.5 168.6 168.7 168.8 168.9 168.10 168.11
168.12 168.13 168.14
168.15 168.16 168.17 168.18 168.19 168.20 168.21 168.22 168.23 168.24 168.25 168.26 168.27 168.28 168.29 168.30 168.31 168.32 168.33 168.34 168.35 169.1 169.2 169.3
169.4 169.5 169.6
169.7 169.8 169.9 169.10 169.11 169.12 169.13 169.14 169.15 169.16 169.17 169.18 169.19 169.20 169.21 169.22 169.23 169.24 169.25 169.26 169.27 169.28 169.29 169.30 169.31 169.32 169.33
170.1 170.2
170.3 170.4 170.5 170.6 170.7 170.8 170.9 170.10 170.11 170.12 170.13 170.14 170.15 170.16 170.17 170.18 170.19 170.20 170.21 170.22 170.23 170.24 170.25 170.26 170.27 170.28 170.29 170.30 170.31 170.32 170.33 170.34 171.1 171.2 171.3 171.4 171.5
171.6 171.7 171.8
171.9 171.10 171.11 171.12 171.13 171.14 171.15 171.16 171.17 171.18 171.19 171.20 171.21 171.22 171.23 171.24 171.25 171.26 171.27 171.28 171.29 171.30 171.31 171.32 171.33 171.34 172.1 172.2 172.3 172.4 172.5 172.6 172.7 172.8 172.9 172.10 172.11 172.12
172.13 172.14 172.15
172.16 172.17 172.18 172.19 172.20 172.21 172.22 172.23 172.24 172.25 172.26 172.27 172.28 172.29 172.30 172.31 172.32 172.33 172.34 172.35
173.1 173.2 173.3
173.4 173.5 173.6 173.7 173.8 173.9
173.10 173.11 173.12 173.13 173.14 173.15 173.16 173.17 173.18 173.19 173.20
173.21 173.22
173.23 173.24 173.25 173.26 173.27 173.28
174.1 174.2
174.3 174.4 174.5 174.6 174.7 174.8 174.9 174.10 174.11 174.12 174.13
174.14
174.15 174.16 174.17 174.18 174.19 174.20 174.21 174.22 174.23
174.24 174.25 174.26 174.27 174.28 174.29 174.30 174.31 174.32 175.1 175.2 175.3 175.4 175.5 175.6 175.7 175.8 175.9 175.10 175.11 175.12 175.13 175.14 175.15 175.16 175.17 175.18 175.19 175.20 175.21 175.22 175.23 175.24 175.25 175.26 175.27 175.28 175.29 175.30 175.31 175.32 175.33 175.34 175.35 175.36 176.1 176.2 176.3 176.4 176.5 176.6 176.7 176.8 176.9 176.10 176.11 176.12 176.13 176.14 176.15 176.16 176.17 176.18 176.19 176.20 176.21 176.22 176.23 176.24 176.25 176.26 176.27 176.28 176.29 176.30 176.31 176.32 176.33 176.34 176.35 176.36 177.1 177.2
177.3 177.4
177.5 177.6 177.7 177.8 177.9 177.10 177.11 177.12 177.13 177.14 177.15 177.16
177.17 177.18
177.19 177.20 177.21 177.22 177.23 177.24 177.25 177.26 177.27 177.28 177.29 177.30 177.31 177.32 178.1 178.2 178.3 178.4 178.5 178.6 178.7 178.8 178.9 178.10 178.11 178.12 178.13 178.14 178.15 178.16 178.17 178.18 178.19 178.20 178.21 178.22 178.23
178.24
178.25 178.26 178.27 178.28 178.29 178.30 178.31 178.32 178.33 178.34 178.35 179.1 179.2 179.3 179.4 179.5 179.6 179.7 179.8 179.9 179.10
179.11
179.12 179.13 179.14 179.15 179.16 179.17 179.18 179.19 179.20 179.21 179.22 179.23
179.24
179.25 179.26 179.27 179.28 179.29 179.30 179.31 179.32
179.33
180.1 180.2
180.3 180.4 180.5 180.6 180.7 180.8 180.9 180.10 180.11 180.12 180.13 180.14 180.15 180.16 180.17 180.18 180.19 180.20 180.21 180.22 180.23 180.24 180.25 180.26 180.27 180.28 180.29 180.30 180.31 180.32 180.33 180.34 181.1 181.2 181.3 181.4 181.5 181.6 181.7 181.8 181.9 181.10 181.11 181.12 181.13 181.14
181.15 181.16
181.17 181.18 181.19 181.20 181.21 181.22 181.23 181.24 181.25 181.26 181.27 181.28 181.29
181.30 181.31
181.32 181.33 182.1 182.2 182.3 182.4 182.5 182.6 182.7 182.8 182.9
182.10 182.11
182.12 182.13 182.14 182.15 182.16 182.17 182.18 182.19 182.20 182.21 182.22 182.23 182.24 182.25 182.26 182.27
182.28 182.29
182.30 182.31 182.32 182.33 183.1 183.2 183.3 183.4 183.5 183.6 183.7 183.8 183.9 183.10 183.11 183.12 183.13 183.14 183.15 183.16 183.17 183.18 183.19 183.20 183.21 183.22 183.23
183.24 183.25
183.26 183.27 183.28 183.29 183.30 183.31 183.32 183.33 183.34 184.1 184.2 184.3 184.4 184.5
184.6 184.7
184.8 184.9 184.10 184.11 184.12 184.13 184.14 184.15 184.16 184.17
184.18 184.19
184.20 184.21 184.22 184.23 184.24 184.25 184.26 184.27 184.28 184.29 184.30 184.31 184.32 185.1 185.2 185.3 185.4 185.5 185.6 185.7 185.8
185.9 185.10 185.11 185.12 185.13 185.14
185.15 185.16
185.17 185.18 185.19 185.20 185.21 185.22 185.23 185.24 185.25 185.26 185.27 185.28 185.29 185.30 185.31 185.32 185.33 185.34 186.1 186.2 186.3 186.4 186.5
186.6
186.7 186.8 186.9 186.10
186.11 186.12 186.13 186.14 186.15 186.16 186.17 186.18
186.19 186.20 186.21 186.22 186.23 186.24 186.25 186.26 186.27 186.28 186.29 186.30 186.31 186.32 187.1 187.2
187.3 187.4 187.5 187.6 187.7 187.8
187.9 187.10 187.11 187.12 187.13 187.14 187.15 187.16 187.17
187.18 187.19 187.20 187.21 187.22 187.23
187.24 187.25 187.26 187.27 187.28 187.29 187.30 187.31 187.32 187.33 188.1 188.2 188.3 188.4 188.5 188.6 188.7
188.8
188.9 188.10 188.11 188.12 188.13 188.14 188.15 188.16 188.17 188.18 188.19 188.20 188.21 188.22 188.23 188.24 188.25 188.26 188.27 188.28 188.29 188.30 188.31 188.32 188.33 188.34 188.35 189.1 189.2 189.3 189.4 189.5 189.6 189.7 189.8 189.9 189.10 189.11 189.12 189.13 189.14 189.15 189.16 189.17 189.18 189.19 189.20 189.21 189.22 189.23 189.24 189.25 189.26 189.27
189.28
189.29 189.30 189.31 189.32 189.33 189.34 190.1 190.2 190.3
190.4 190.5
190.6 190.7 190.8 190.9 190.10 190.11 190.12 190.13 190.14 190.15 190.16 190.17 190.18 190.19
190.20 190.21 190.22 190.23 190.24 190.25 190.26 190.27 190.28 190.29 190.30 190.31 190.32 190.33 190.34 191.1 191.2 191.3 191.4 191.5 191.6 191.7 191.8 191.9 191.10 191.11
191.12 191.13 191.14 191.15 191.16 191.17 191.18 191.19 191.20 191.21 191.22 191.23 191.24 191.25
191.26 191.27 191.28 191.29 191.30 191.31 191.32 191.33 191.34 192.1 192.2 192.3 192.4 192.5 192.6 192.7 192.8 192.9 192.10 192.11 192.12 192.13 192.14 192.15 192.16 192.17 192.18 192.19 192.20 192.21
192.22 192.23 192.24
192.25
192.26 192.27
192.28 192.29 192.30 192.31 192.32 192.33 193.1 193.2 193.3 193.4 193.5 193.6 193.7 193.8 193.9 193.10 193.11 193.12 193.13 193.14 193.15 193.16 193.17 193.18 193.19 193.20 193.21 193.22 193.23 193.24 193.25 193.26 193.27 193.28 193.29 193.30 193.31 193.32 193.33 193.34 193.35 194.1 194.2 194.3 194.4
194.5 194.6
194.7 194.8 194.9 194.10 194.11 194.12 194.13 194.14 194.15 194.16 194.17 194.18 194.19 194.20 194.21
194.22 194.23
194.24 194.25 194.26 194.27 194.28 194.29 194.30 194.31 194.32 194.33 195.1 195.2 195.3 195.4 195.5 195.6 195.7 195.8 195.9 195.10 195.11 195.12 195.13 195.14 195.15 195.16 195.17 195.18 195.19 195.20 195.21 195.22 195.23 195.24 195.25 195.26 195.27 195.28 195.29 195.30 195.31 195.32 195.33 195.34 195.35 195.36 196.1 196.2 196.3 196.4 196.5 196.6 196.7 196.8
196.9 196.10
196.11 196.12 196.13 196.14 196.15 196.16 196.17 196.18 196.19 196.20 196.21 196.22 196.23 196.24 196.25 196.26 196.27 196.28 196.29 196.30 196.31 196.32
196.33 196.34
197.1 197.2 197.3 197.4 197.5 197.6 197.7 197.8 197.9 197.10 197.11 197.12 197.13 197.14 197.15 197.16 197.17 197.18 197.19 197.20 197.21 197.22 197.23 197.24 197.25 197.26 197.27 197.28 197.29 197.30 197.31 197.32 197.33 197.34 197.35
198.1 198.2
198.3 198.4 198.5 198.6 198.7 198.8 198.9 198.10 198.11 198.12 198.13 198.14 198.15 198.16 198.17 198.18 198.19 198.20 198.21 198.22 198.23 198.24
198.25 198.26
198.27 198.28 198.29 198.30 198.31 198.32 198.33 198.34 199.1 199.2 199.3 199.4 199.5 199.6
199.7 199.8
199.9 199.10 199.11 199.12 199.13 199.14 199.15 199.16 199.17 199.18 199.19 199.20 199.21 199.22 199.23 199.24 199.25 199.26 199.27 199.28 199.29 199.30 199.31 199.32 199.33 199.34 199.35 200.1 200.2 200.3 200.4 200.5 200.6 200.7 200.8 200.9 200.10 200.11 200.12 200.13 200.14 200.15 200.16 200.17 200.18 200.19 200.20 200.21 200.22 200.23 200.24 200.25 200.26 200.27 200.28 200.29 200.30 200.31 200.32 200.33 200.34 200.35 200.36 201.1 201.2 201.3 201.4
201.5
201.6 201.7 201.8 201.9 201.10 201.11 201.12 201.13 201.14
201.15 201.16
201.17 201.18 201.19 201.20 201.21 201.22 201.23 201.24 201.25 201.26 201.27 201.28
201.29 201.30
201.31 202.1 202.2 202.3 202.4 202.5 202.6 202.7 202.8 202.9 202.10 202.11 202.12 202.13 202.14 202.15 202.16 202.17 202.18
202.19 202.20
202.21 202.22 202.23 202.24 202.25 202.26 202.27 202.28 202.29 202.30 202.31 202.32 202.33 202.34 202.35 203.1 203.2
203.3 203.4
203.5 203.6 203.7 203.8 203.9 203.10 203.11 203.12 203.13 203.14 203.15 203.16 203.17 203.18 203.19 203.20 203.21 203.22 203.23 203.24 203.25 203.26 203.27 203.28 203.29 203.30 203.31 203.32 203.33 203.34 203.35 204.1 204.2 204.3 204.4 204.5 204.6 204.7 204.8 204.9 204.10
204.11
204.12 204.13 204.14 204.15 204.16 204.17 204.18 204.19
204.20 204.21
204.22 204.23
204.24 204.25 204.26 204.27 204.28 204.29 204.30 204.31 204.32 204.33 205.1 205.2 205.3 205.4 205.5 205.6 205.7 205.8 205.9 205.10 205.11 205.12 205.13 205.14
205.15
205.16 205.17 205.18 205.19 205.20
205.21 205.22
205.23 205.24 205.25 205.26 205.27 205.28 205.29 205.30 205.31 205.32
205.33
206.1 206.2 206.3 206.4 206.5 206.6
206.7
206.8 206.9 206.10 206.11 206.12 206.13 206.14 206.15 206.16 206.17 206.18 206.19 206.20 206.21 206.22 206.23 206.24 206.25 206.26 206.27 206.28 206.29 206.30 206.31 206.32 206.33 207.1 207.2 207.3 207.4 207.5 207.6 207.7 207.8 207.9 207.10 207.11 207.12 207.13 207.14 207.15 207.16 207.17 207.18 207.19 207.20 207.21 207.22 207.23 207.24 207.25 207.26 207.27 207.28 207.29 207.30 207.31 207.32 207.33 207.34 207.35 208.1 208.2 208.3 208.4 208.5 208.6 208.7 208.8 208.9 208.10 208.11 208.12 208.13 208.14 208.15 208.16 208.17 208.18 208.19 208.20 208.21 208.22 208.23 208.24 208.25 208.26 208.27 208.28 208.29 208.30 208.31 208.32 208.33 208.34 208.35 209.1 209.2 209.3 209.4 209.5 209.6 209.7 209.8 209.9 209.10 209.11 209.12 209.13 209.14 209.15
209.16 209.17 209.18
209.19 209.20 209.21 209.22 209.23 209.24 209.25 209.26 209.27 209.28 209.29 209.30 209.31 209.32 209.33 209.34 209.35 210.1 210.2 210.3 210.4 210.5 210.6 210.7 210.8 210.9 210.10 210.11 210.12 210.13 210.14 210.15 210.16 210.17 210.18 210.19 210.20 210.21 210.22 210.23 210.24 210.25 210.26 210.27 210.28 210.29 210.30 210.31 210.32 210.33 210.34 210.35 211.1 211.2 211.3 211.4 211.5 211.6 211.7
211.8 211.9
211.10 211.11 211.12 211.13 211.14 211.15 211.16 211.17 211.18 211.19 211.20 211.21 211.22 211.23 211.24 211.25 211.26 211.27 211.28 211.29 211.30 211.31 211.32 211.33 211.34 211.35 212.1 212.2 212.3 212.4 212.5 212.6 212.7 212.8 212.9 212.10 212.11 212.12 212.13 212.14 212.15 212.16 212.17 212.18 212.19 212.20 212.21
212.22 212.23 212.24
212.25 212.26 212.27 212.28 212.29 212.30 212.31 212.32 212.33 212.34 212.35 213.1
213.2 213.3
213.4 213.5 213.6 213.7 213.8 213.9 213.10 213.11 213.12 213.13 213.14 213.15 213.16 213.17 213.18 213.19 213.20 213.21 213.22 213.23 213.24 213.25 213.26 213.27 213.28 213.29 213.30 213.31 213.32 213.33 213.34 213.35 214.1 214.2 214.3 214.4 214.5 214.6 214.7 214.8 214.9 214.10 214.11
214.12 214.13
214.14 214.15 214.16 214.17 214.18 214.19 214.20 214.21 214.22 214.23 214.24 214.25 214.26 214.27 214.28 214.29 214.30 214.31 214.32 214.33 214.34 215.1 215.2 215.3 215.4 215.5 215.6 215.7 215.8 215.9 215.10 215.11 215.12 215.13 215.14 215.15 215.16 215.17 215.18 215.19 215.20 215.21 215.22 215.23 215.24 215.25 215.26 215.27 215.28 215.29 215.30 215.31 215.32 215.33
215.34 215.35
216.1 216.2 216.3 216.4 216.5 216.6
216.7 216.8
216.9 216.10 216.11 216.12 216.13 216.14
216.15 216.16
216.17 216.18 216.19 216.20 216.21
216.22 216.23
216.24 216.25 216.26 216.27
216.28 216.29
217.1 217.2 217.3 217.4 217.5 217.6
217.7 217.8
217.9 217.10 217.11 217.12 217.13 217.14
217.15 217.16
217.17 217.18 217.19 217.20 217.21
217.22
217.23 217.24 217.25 217.26 217.27 217.28 217.29 217.30 217.31 217.32
218.1 218.2
218.3 218.4 218.5 218.6 218.7 218.8 218.9 218.10 218.11 218.12 218.13 218.14 218.15 218.16 218.17 218.18 218.19 218.20 218.21 218.22
218.23 218.24
218.25 218.26 218.27 218.28 218.29 218.30 218.31 218.32 218.33 219.1 219.2 219.3 219.4 219.5 219.6 219.7 219.8 219.9 219.10 219.11 219.12 219.13 219.14 219.15 219.16 219.17 219.18 219.19 219.20 219.21 219.22 219.23 219.24 219.25 219.26
219.27 219.28
219.29 219.30 219.31 219.32 219.33 219.34 219.35 220.1 220.2 220.3 220.4 220.5 220.6 220.7 220.8 220.9 220.10 220.11 220.12 220.13 220.14 220.15 220.16 220.17 220.18 220.19 220.20 220.21 220.22 220.23 220.24 220.25 220.26
220.27 220.28
220.29 220.30 220.31 220.32 220.33 220.34 220.35 221.1 221.2 221.3
221.4 221.5
221.6 221.7 221.8 221.9 221.10 221.11 221.12 221.13 221.14 221.15
221.16
221.17 221.18 221.19 221.20 221.21 221.22 221.23 221.24 221.25 221.26
221.27 221.28
221.29 221.30 221.31 221.32
222.1 222.2
222.3 222.4 222.5 222.6 222.7 222.8 222.9 222.10 222.11 222.12 222.13 222.14 222.15 222.16 222.17 222.18 222.19 222.20 222.21 222.22 222.23 222.24 222.25 222.26 222.27 222.28 222.29 222.30 222.31 222.32 222.33 222.34 222.35 223.1 223.2 223.3 223.4 223.5 223.6 223.7 223.8 223.9
223.10 223.11
223.12 223.13 223.14
223.15 223.16
223.17 223.18 223.19 223.20 223.21 223.22 223.23 223.24 223.25 223.26 223.27 223.28 223.29
223.30
223.31 224.1 224.2 224.3 224.4 224.5 224.6
224.7 224.8
224.9 224.10 224.11 224.12 224.13 224.14 224.15 224.16 224.17 224.18 224.19 224.20 224.21 224.22 224.23 224.24 224.25 224.26 224.27 224.28 224.29 224.30 224.31 224.32 224.33 224.34 225.1 225.2 225.3
225.4 225.5
225.6 225.7 225.8 225.9 225.10 225.11 225.12 225.13 225.14 225.15 225.16 225.17 225.18 225.19 225.20 225.21 225.22 225.23 225.24 225.25 225.26 225.27 225.28 225.29 225.30 225.31 225.32 225.33 225.34 226.1 226.2 226.3 226.4 226.5 226.6 226.7 226.8 226.9 226.10
226.11
226.12 226.13 226.14 226.15 226.16
226.17 226.18
226.19 226.20 226.21 226.22 226.23 226.24 226.25 226.26 226.27 226.28 226.29 226.30 226.31 226.32 227.1 227.2 227.3 227.4 227.5 227.6 227.7 227.8 227.9 227.10 227.11 227.12 227.13 227.14
227.15
227.16 227.17 227.18 227.19 227.20 227.21 227.22
227.23
227.24 227.25 227.26 227.27 227.28 227.29 227.30 227.31 227.32 227.33 228.1 228.2 228.3 228.4 228.5 228.6 228.7 228.8 228.9 228.10 228.11 228.12 228.13 228.14
228.15
228.16 228.17 228.18 228.19 228.20 228.21
228.22
228.23 228.24 228.25 228.26 228.27 228.28 228.29 228.30 228.31 228.32 229.1 229.2 229.3 229.4 229.5 229.6 229.7 229.8 229.9 229.10 229.11 229.12 229.13 229.14 229.15 229.16 229.17 229.18 229.19 229.20 229.21 229.22 229.23 229.24
229.25 229.26
229.27 229.28 229.29 229.30 229.31 229.32 229.33
230.1 230.2
230.3 230.4 230.5 230.6 230.7
230.8 230.9 230.10
230.11 230.12
230.13 230.14 230.15 230.16 230.17
230.18
230.19 230.20 230.21 230.22 230.23 230.24 230.25 230.26
230.27
230.28 230.29 230.30 231.1 231.2 231.3 231.4 231.5 231.6 231.7 231.8 231.9
231.10 231.11
231.12 231.13 231.14 231.15 231.16 231.17
231.18 231.19
231.20 231.21 231.22 231.23 231.24 231.25 231.26 231.27 231.28 231.29 231.30 231.31 231.32 231.33 232.1 232.2 232.3 232.4 232.5 232.6 232.7 232.8
232.9 232.10
232.11 232.12 232.13 232.14 232.15 232.16
232.17 232.18
232.19 232.20 232.21 232.22 232.23 232.24 232.25 232.26 232.27 232.28 232.29 232.30 232.31 232.32
233.1 233.2
233.3 233.4 233.5 233.6 233.7 233.8 233.9 233.10 233.11 233.12 233.13
233.14 233.15
233.16 233.17 233.18 233.19 233.20 233.21 233.22
233.23
233.24 233.25 233.26 233.27
233.28
233.29 234.1 234.2 234.3 234.4 234.5 234.6 234.7 234.8 234.9 234.10 234.11 234.12 234.13 234.14 234.15 234.16 234.17 234.18 234.19 234.20 234.21
234.22
234.23 234.24 234.25 234.26 234.27 234.28 234.29 234.30 234.31 234.32 234.33 234.34 235.1 235.2 235.3 235.4 235.5
235.6
235.7 235.8 235.9 235.10 235.11 235.12 235.13 235.14 235.15 235.16 235.17 235.18 235.19 235.20 235.21 235.22 235.23
235.24
235.25 235.26 235.27 235.28 235.29 235.30 235.31 235.32 235.33 236.1 236.2 236.3 236.4 236.5
236.6
236.7 236.8 236.9 236.10 236.11
236.12
236.13 236.14 236.15 236.16 236.17 236.18 236.19 236.20 236.21
236.22
236.23 236.24 236.25 236.26 236.27 236.28 236.29 236.30 236.31 237.1 237.2
237.3
237.4 237.5 237.6 237.7 237.8 237.9 237.10 237.11 237.12 237.13
237.14
237.15 237.16 237.17 237.18 237.19 237.20 237.21 237.22 237.23 237.24 237.25 237.26 237.27 237.28 237.29 237.30 237.31 237.32 237.33
238.1
238.2 238.3 238.4 238.5 238.6 238.7 238.8
238.9
238.10 238.11 238.12 238.13 238.14 238.15 238.16 238.17 238.18 238.19 238.20 238.21 238.22 238.23 238.24 238.25 238.26
238.27
238.28 238.29 238.30 238.31 238.32 239.1 239.2 239.3 239.4 239.5 239.6 239.7 239.8 239.9 239.10 239.11 239.12 239.13 239.14 239.15 239.16 239.17 239.18 239.19 239.20 239.21 239.22
239.23
239.24 239.25 239.26 239.27 239.28 239.29 239.30 239.31 239.32 239.33 239.34 239.35 240.1 240.2 240.3 240.4 240.5 240.6 240.7 240.8 240.9 240.10 240.11 240.12 240.13 240.14 240.15 240.16
240.17 240.18
240.19 240.20 240.21 240.22 240.23 240.24 240.25
240.26
240.27 240.28 240.29 240.30 240.31 240.32
240.33
241.1 241.2 241.3 241.4 241.5 241.6 241.7 241.8 241.9 241.10 241.11 241.12 241.13 241.14 241.15 241.16 241.17 241.18 241.19 241.20 241.21 241.22 241.23 241.24 241.25 241.26 241.27 241.28 241.29 241.30 241.31 241.32 241.33 241.34 241.35 241.36 242.1 242.2 242.3 242.4 242.5 242.6 242.7 242.8 242.9 242.10 242.11 242.12 242.13
242.14
242.15 242.16 242.17 242.18 242.19 242.20 242.21 242.22
242.23
242.24 242.25 242.26 242.27 242.28 242.29 242.30 242.31 242.32 242.33 243.1 243.2 243.3 243.4 243.5 243.6 243.7 243.8 243.9 243.10 243.11 243.12 243.13 243.14 243.15 243.16 243.17 243.18 243.19 243.20 243.21 243.22 243.23
243.24 243.25
243.26 243.27 243.28 243.29 243.30 243.31 243.32 243.33 243.34 243.35 244.1 244.2 244.3 244.4 244.5
244.6
244.7 244.8 244.9 244.10 244.11 244.12
244.13
244.14 244.15 244.16 244.17 244.18 244.19 244.20 244.21 244.22 244.23 244.24 244.25 244.26 244.27 244.28 244.29 244.30 244.31 244.32 244.33 245.1 245.2 245.3 245.4 245.5 245.6 245.7 245.8 245.9 245.10 245.11 245.12 245.13 245.14 245.15 245.16 245.17 245.18 245.19 245.20 245.21 245.22 245.23 245.24 245.25 245.26 245.27 245.28 245.29 245.30 245.31 245.32 245.33 245.34 245.35 245.36 246.1 246.2 246.3 246.4 246.5 246.6 246.7 246.8 246.9 246.10 246.11 246.12 246.13 246.14 246.15 246.16 246.17 246.18 246.19 246.20 246.21 246.22 246.23 246.24 246.25 246.26 246.27 246.28 246.29 246.30 246.31 246.32 246.33 246.34 246.35 246.36 247.1 247.2 247.3 247.4 247.5 247.6 247.7 247.8 247.9 247.10 247.11 247.12 247.13 247.14 247.15 247.16 247.17 247.18 247.19 247.20 247.21 247.22 247.23 247.24 247.25 247.26 247.27 247.28 247.29 247.30 247.31 247.32 247.33 247.34 247.35 247.36 248.1 248.2 248.3 248.4 248.5 248.6 248.7 248.8 248.9 248.10 248.11 248.12 248.13 248.14 248.15 248.16 248.17 248.18 248.19 248.20 248.21 248.22 248.23 248.24 248.25 248.26 248.27 248.28 248.29 248.30 248.31 248.32 248.33 248.34 248.35 249.1 249.2 249.3 249.4 249.5 249.6 249.7 249.8
249.9
249.10 249.11 249.12 249.13 249.14 249.15 249.16 249.17 249.18 249.19 249.20 249.21 249.22 249.23 249.24 249.25 249.26 249.27 249.28 249.29 249.30 249.31 249.32 249.33 249.34 249.35
250.1
250.2 250.3 250.4 250.5 250.6 250.7 250.8 250.9 250.10 250.11 250.12 250.13 250.14 250.15 250.16
250.17 250.18
250.19 250.20 250.21 250.22 250.23 250.24 250.25 250.26 250.27 250.28 250.29 250.30 250.31 250.32 250.33 250.34 251.1 251.2
251.3
251.4 251.5 251.6 251.7 251.8 251.9 251.10 251.11 251.12 251.13 251.14
251.15
251.16 251.17 251.18 251.19 251.20 251.21 251.22 251.23 251.24
251.25
251.26 251.27 251.28 251.29
251.30
252.1 252.2 252.3 252.4 252.5 252.6 252.7 252.8 252.9 252.10 252.11 252.12 252.13 252.14 252.15 252.16 252.17 252.18 252.19 252.20 252.21 252.22 252.23 252.24 252.25 252.26 252.27 252.28 252.29 252.30 252.31 252.32 252.33 252.34 252.35 252.36 253.1 253.2 253.3 253.4 253.5 253.6 253.7 253.8 253.9 253.10 253.11 253.12 253.13 253.14 253.15 253.16 253.17 253.18 253.19 253.20 253.21 253.22 253.23 253.24 253.25 253.26 253.27 253.28 253.29 253.30 253.31 253.32 253.33 253.34 253.35 254.1 254.2
254.3
254.4 254.5 254.6 254.7 254.8 254.9 254.10 254.11 254.12 254.13 254.14 254.15 254.16 254.17 254.18 254.19 254.20 254.21 254.22 254.23 254.24 254.25 254.26 254.27 254.28 254.29 254.30 254.31 254.32 254.33 254.34 255.1 255.2 255.3 255.4 255.5 255.6 255.7 255.8 255.9 255.10 255.11 255.12 255.13 255.14 255.15 255.16
255.17
255.18 255.19 255.20 255.21 255.22 255.23 255.24 255.25 255.26 255.27 255.28 255.29 255.30 255.31 255.32 255.33 255.34 256.1 256.2 256.3 256.4 256.5 256.6 256.7 256.8 256.9 256.10 256.11 256.12 256.13 256.14 256.15 256.16 256.17 256.18 256.19 256.20 256.21 256.22 256.23
256.24
256.25 256.26 256.27 256.28 256.29 256.30 256.31 256.32 256.33 256.34 256.35 257.1 257.2 257.3 257.4 257.5 257.6 257.7 257.8 257.9 257.10 257.11 257.12 257.13 257.14 257.15 257.16 257.17 257.18 257.19 257.20 257.21 257.22 257.23 257.24 257.25 257.26 257.27 257.28 257.29 257.30 257.31 257.32 257.33 257.34 257.35 257.36 258.1 258.2 258.3 258.4 258.5 258.6 258.7 258.8 258.9 258.10 258.11 258.12 258.13 258.14 258.15 258.16 258.17 258.18 258.19 258.20 258.21 258.22 258.23 258.24 258.25 258.26 258.27 258.28 258.29 258.30 258.31 258.32 258.33 258.34 258.35 258.36 259.1 259.2 259.3 259.4 259.5 259.6 259.7 259.8 259.9 259.10 259.11 259.12 259.13 259.14 259.15 259.16 259.17 259.18 259.19 259.20 259.21 259.22 259.23 259.24 259.25 259.26 259.27 259.28 259.29 259.30 259.31 259.32 259.33
259.34 259.35
260.1 260.2 260.3 260.4 260.5 260.6 260.7 260.8 260.9 260.10 260.11 260.12 260.13 260.14 260.15 260.16 260.17 260.18 260.19 260.20 260.21 260.22 260.23 260.24 260.25 260.26 260.27 260.28 260.29 260.30 260.31 260.32 260.33 260.34 260.35 260.36 260.37 261.1 261.2 261.3 261.4 261.5 261.6 261.7 261.8 261.9 261.10 261.11 261.12 261.13 261.14 261.15 261.16 261.17 261.18 261.19 261.20 261.21 261.22 261.23 261.24 261.25 261.26 261.27 261.28 261.29 261.30 261.31 261.32 261.33 261.34 261.35 262.1 262.2 262.3 262.4 262.5 262.6 262.7 262.8 262.9 262.10 262.11 262.12 262.13 262.14 262.15 262.16 262.17 262.18 262.19 262.20 262.21 262.22 262.23 262.24 262.25 262.26 262.27 262.28 262.29 262.30 262.31 262.32 262.33 262.34 262.35 262.36 263.1 263.2 263.3 263.4 263.5 263.6 263.7 263.8
263.9 263.10
263.11 263.12 263.13 263.14 263.15 263.16 263.17 263.18 263.19 263.20 263.21 263.22 263.23 263.24 263.25 263.26 263.27 263.28 263.29 263.30
263.31 263.32
264.1 264.2 264.3 264.4 264.5 264.6 264.7
264.8 264.9
264.10 264.11 264.12 264.13 264.14 264.15 264.16 264.17 264.18
264.19 264.20
264.21 264.22 264.23 264.24 264.25 264.26 264.27 264.28 264.29 264.30 264.31 264.32 264.33 265.1 265.2 265.3 265.4 265.5 265.6 265.7 265.8 265.9 265.10 265.11 265.12 265.13 265.14 265.15 265.16 265.17 265.18 265.19 265.20 265.21 265.22 265.23 265.24 265.25 265.26 265.27 265.28 265.29 265.30 265.31 265.32 265.33 265.34 265.35 265.36 266.1 266.2 266.3 266.4 266.5
266.6 266.7
266.8 266.9 266.10 266.11 266.12 266.13 266.14 266.15 266.16 266.17 266.18 266.19 266.20 266.21 266.22 266.23 266.24 266.25 266.26 266.27 266.28 266.29 266.30 266.31 266.32 266.33 266.34
267.1
267.2 267.3 267.4 267.5 267.6 267.7 267.8 267.9 267.10 267.11 267.12 267.13 267.14 267.15 267.16 267.17 267.18 267.19 267.20 267.21 267.22 267.23 267.24 267.25 267.26 267.27 267.28 267.29 267.30 267.31 267.32 267.33 267.34 267.35 268.1 268.2
268.3
268.4 268.5 268.6 268.7 268.8 268.9 268.10 268.11 268.12 268.13 268.14
268.15
268.16 268.17 268.18 268.19 268.20 268.21 268.22 268.23 268.24 268.25 268.26 268.27 268.28 268.29 268.30 268.31 268.32 268.33 269.1 269.2
269.3
269.4 269.5 269.6 269.7 269.8 269.9 269.10 269.11 269.12 269.13 269.14 269.15 269.16 269.17 269.18 269.19 269.20 269.21 269.22 269.23 269.24 269.25 269.26 269.27 269.28 269.29 269.30 269.31 269.32 269.33 269.34 269.35 270.1 270.2 270.3 270.4 270.5 270.6 270.7 270.8 270.9 270.10 270.11 270.12 270.13 270.14 270.15
270.16
270.17 270.18 270.19 270.20
270.21 270.22 270.23
270.24 270.25
270.26 270.27 270.28 270.29 270.30 270.31 270.32 270.33 271.1 271.2
271.3 271.4
271.5 271.6 271.7 271.8
271.9
271.10 271.11 271.12 271.13 271.14 271.15 271.16 271.17 271.18 271.19 271.20 271.21 271.22 271.23 271.24 271.25 271.26 271.27 271.28 271.29 271.30 271.31 271.32 272.1 272.2 272.3 272.4 272.5
272.6
272.7 272.8 272.9 272.10 272.11 272.12 272.13 272.14 272.15
272.16
272.17 272.18 272.19 272.20 272.21 272.22 272.23 272.24 272.25 272.26 272.27 272.28 272.29 272.30
272.31
273.1 273.2 273.3 273.4 273.5 273.6 273.7
273.8
273.9 273.10 273.11 273.12 273.13 273.14 273.15 273.16 273.17 273.18 273.19 273.20 273.21 273.22
273.23
273.24 273.25 273.26 273.27 273.28
273.29 273.30
273.31 273.32 274.1 274.2 274.3 274.4 274.5 274.6 274.7 274.8 274.9 274.10 274.11 274.12
274.13 274.14
274.15 274.16 274.17 274.18 274.19 274.20 274.21 274.22 274.23 274.24 274.25 274.26 274.27 274.28
274.29 274.30
274.31 275.1 275.2 275.3 275.4 275.5 275.6 275.7 275.8 275.9 275.10 275.11 275.12 275.13 275.14 275.15 275.16 275.17 275.18
275.19 275.20 275.21 275.22
275.23 275.24 275.25 275.26 275.27 275.28 275.29 275.30 275.31
275.32 275.33
276.1 276.2 276.3 276.4 276.5
276.6 276.7
276.8 276.9
276.10 276.11 276.12 276.13 276.14 276.15 276.16 276.17
276.18 276.19 276.20 276.21 276.22 276.23 276.24 276.25 276.26 276.27 276.28 276.29 276.30 276.31 276.32 276.33 277.1 277.2 277.3 277.4 277.5 277.6 277.7 277.8 277.9 277.10 277.11 277.12 277.13 277.14 277.15 277.16 277.17 277.18 277.19 277.20 277.21 277.22 277.23 277.24
277.25
277.26 277.27 277.28 277.29 277.30 277.31 277.32 277.33 277.34 278.1 278.2 278.3 278.4 278.5 278.6 278.7 278.8 278.9 278.10 278.11 278.12 278.13 278.14 278.15 278.16 278.17 278.18 278.19 278.20 278.21 278.22 278.23 278.24 278.25 278.26 278.27 278.28 278.29 278.30 278.31
278.32
278.33 278.34 278.35 279.1 279.2 279.3 279.4 279.5 279.6 279.7 279.8 279.9 279.10 279.11 279.12 279.13
279.14
279.15 279.16 279.17 279.18 279.19 279.20 279.21 279.22 279.23 279.24 279.25 279.26 279.27 279.28 279.29 279.30 279.31 279.32 279.33
280.1 280.2
280.3 280.4 280.5 280.6 280.7 280.8 280.9 280.10 280.11 280.12
280.13 280.14
280.15 280.16 280.17 280.18 280.19 280.20 280.21 280.22 280.23
280.24
280.25 280.26 280.27 280.28 280.29 280.30 280.31 280.32 281.1 281.2 281.3 281.4 281.5 281.6 281.7 281.8 281.9 281.10 281.11 281.12 281.13 281.14 281.15 281.16 281.17 281.18 281.19 281.20 281.21 281.22 281.23 281.24 281.25 281.26 281.27 281.28 281.29 281.30 281.31 281.32 281.33 281.34 281.35 281.36 282.1 282.2 282.3 282.4 282.5 282.6 282.7 282.8 282.9 282.10 282.11 282.12 282.13 282.14
282.15 282.16 282.17 282.18 282.19 282.20 282.21 282.22 282.23 282.24 282.25 282.26 282.27 282.28 282.29 282.30 282.31 282.32 282.33 282.34 283.1 283.2 283.3 283.4 283.5 283.6 283.7 283.8 283.9 283.10
283.11
283.12 283.13 283.14 283.15 283.16 283.17 283.18 283.19
283.20
283.21 283.22 283.23 283.24 283.25
283.26
283.27 283.28 283.29 283.30 283.31 283.32 284.1 284.2 284.3 284.4 284.5
284.6 284.7
284.8 284.9 284.10 284.11 284.12 284.13 284.14 284.15
284.16 284.17
284.18 284.19 284.20 284.21 284.22 284.23 284.24 284.25 284.26 284.27 284.28 284.29 284.30
284.31 284.32
285.1 285.2 285.3 285.4 285.5 285.6 285.7 285.8 285.9 285.10 285.11 285.12 285.13 285.14 285.15 285.16 285.17 285.18 285.19 285.20 285.21 285.22 285.23
285.24
285.25 285.26 285.27 285.28 285.29
285.30 285.31 285.32 285.33 286.1 286.2 286.3 286.4 286.5 286.6 286.7
286.8 286.9 286.10 286.11 286.12 286.13 286.14 286.15 286.16 286.17 286.18 286.19 286.20 286.21 286.22 286.23 286.24 286.25
286.26 286.27 286.28 286.29
286.30 286.31 286.32 286.33 287.1 287.2 287.3 287.4 287.5 287.6 287.7 287.8

A bill for an act
relating to the financing and operation of state and local government; making
policy, technical, administrative, enforcement, collection, refund, and other
changes to income, franchise, property, sales and use, motor vehicle sales, health
care provider, cigarette and tobacco products, insurance premiums, aggregate
removal, mortgage, deed, production, estate, gambling, and other taxes and
tax-related provisions; providing a homestead credit state refund; providing
for aids to local governments; increasing property tax refunds; providing
and changing income and franchise tax credits, subtractions, apportionment,
and alternative minimum taxes; adding an income tax bracket and rate;
requiring tax withholding; modifying taxation of certain compensation paid
to nonresidents; providing for taxation of foreign operating corporations;
modifying and authorizing sales tax exemptions; prohibiting new local sales
taxes; modifying and authorizing local government sales taxes; imposing a
surcharge on certain admissions; modifying property tax exemptions, tax bases,
levies, valuation, classes, class rates, credits, statements, abatement, truth in
taxation, payment options, and appeals; extending and establishing certain
property tax deferral programs; changing tax increment financing provisions;
changing certain border city allocation and JOBZ requirements; establishing a
FARMZ program; changing provisions relating to fiscal disparities, state debt
collection procedures, sustainable forest incentives programs, tax-forfeited
land sales, leases, exchanges, and use of proceeds; changing distributions of
production tax proceeds; providing for purchase of forest lands; providing for
higher education grants in the taconite assistance area; providing for taxation of
gifts; conforming provisions to certain changes in federal laws; changing and
imposing powers, duties, and requirements on certain local governments and
authorities and state departments or agencies; transferring money to the budget
reserve account; providing for state funds and accounts; providing for bioscience,
land conservation, film production costs reimbursement, and Lignocellulosic
ethanol production grants; authorizing release of certain data; requiring studies;
appropriating money; amending Minnesota Statutes 2006, sections 16A.152,
subdivisions 1b, 2, by adding a subdivision; 16D.04, subdivisions 1, 2; 16D.11,
subdivisions 2, 7; 37.13, by adding a subdivision; 62I.06, subdivision 6;
71A.04, subdivision 1; 97A.061, subdivision 2; 127A.48, subdivision 3; 268.19,
subdivision 1; 270.071, subdivision 7; 270.072, subdivisions 2, 3, 6; 270.074,
subdivision 3; 270.076, subdivision 1; 270.41, subdivisions 1, 2, 3, 5, by adding
a subdivision; 270.44; 270.45; 270.46; 270.47; 270.48; 270.50; 270A.03,
subdivision 5; 270B.15; 270C.03, subdivision 1; 270C.306; 270C.34, subdivision
1; 270C.446, subdivision 2; 270C.56, subdivision 1; 270C.63, subdivision 9;
272.02, subdivision 64, by adding subdivisions; 272.115, subdivision 1; 273.05,
by adding a subdivision; 273.11, subdivision 1a, by adding a subdivision;
273.111, subdivision 3, by adding a subdivision; 273.117; 273.121; 273.123,
subdivisions 2, 3, 7; 273.124, subdivisions 1, 13, 14, 21; 273.125, subdivision
8; 273.128, subdivision 1, by adding a subdivision; 273.13, subdivisions 22,
23, 24, 25, 33, by adding a subdivision; 273.1384, subdivision 1; 273.1398,
subdivision 4; 273.33, subdivision 2; 273.37, subdivision 2; 273.371, subdivision
1; 274.01, subdivision 1; 274.13, subdivision 1; 275.065, subdivisions 3, 5a, by
adding subdivisions; 275.067; 276.04, subdivision 2, by adding a subdivision;
277.01, subdivision 2; 278.05, subdivision 6; 279.01, subdivision 1, by adding
a subdivision; 279.37, subdivision 1a; 280.39; 287.22; 287.2205; 289A.02,
subdivision 7; 289A.08, subdivisions 3, 11, 13; 289A.09, subdivision 2; 289A.12,
subdivisions 4, 14, by adding a subdivision; 289A.18, subdivision 1; 289A.31,
subdivision 7; 289A.40, subdivisions 2, 4; 289A.56, by adding a subdivision;
289A.60, subdivisions 8, 12, 25, 27, by adding subdivisions; 290.01, subdivisions
5, 19, as amended, 19b, 19c, 19d, 31, as amended; 290.06, subdivisions 2c, 2d,
33, by adding a subdivision; 290.067, subdivisions 1, 2b; 290.0671, subdivision
7; 290.0677, subdivision 1; 290.091, subdivision 3; 290.0921, subdivision
3; 290.17, subdivisions 2, 4, by adding a subdivision; 290.191, subdivisions
2, 3, 5, 8; 290.21, subdivision 4; 290.92, by adding a subdivision; 290A.03,
subdivisions 7, 13, 15, as amended; 290A.04, subdivisions 2a, 2h, 3, 4, by
adding a subdivision; 290B.03, subdivisions 1, 2; 290B.04, subdivisions 3, 4;
290B.05, subdivision 1; 290B.07; 290C.02, subdivision 3; 290C.04; 290C.05;
290C.07; 290C.11; 291.005, subdivision 1; 291.03, subdivision 1, by adding
subdivisions; 291.215, subdivision 1; 295.52, subdivisions 4, 4a; 295.54,
subdivision 2; 296A.18, subdivision 4; 297A.61, subdivisions 3, 4, 7, 10, 12,
24, by adding subdivisions; 297A.63, subdivision 1; 297A.665; 297A.668, by
adding a subdivision; 297A.669, subdivisions 3, 13, 14, by adding subdivisions;
297A.67, subdivisions 7, 8, 9; 297A.68, subdivisions 11, 16, 35, by adding a
subdivision; 297A.69, subdivisions 2, 3; 297A.70, subdivisions 3, 7, 8, by
adding subdivisions; 297A.71, subdivision 23, by adding subdivisions; 297A.72;
297A.75, subdivisions 1, 2, 3, by adding a subdivision; 297A.90, subdivision
2; 297A.99, subdivision 1; 297B.03; 297B.035, subdivision 1; 297E.02, by
adding a subdivision; 297F.01, subdivision 19, by adding a subdivision; 297F.05,
subdivisions 3, 4, by adding a subdivision; 297F.06, subdivision 4; 297F.21,
subdivision 3; 297F.25, by adding a subdivision; 297I.06, subdivisions 1, 2;
297I.15, by adding a subdivision; 297I.20, subdivision 2; 297I.40, subdivision 5;
298.22, by adding a subdivision; 298.2214, subdivision 2; 298.28, subdivision
4, by adding a subdivision; 298.292, subdivision 2; 298.2961, subdivision 4;
298.75, by adding a subdivision; 424A.10, subdivision 3; 435.193; 469.169,
by adding a subdivision; 469.1734, subdivision 6; 469.174, subdivisions 10,
10a, 27; 469.175, subdivisions 1, 3; 469.176, subdivisions 1, 2, 4l, 7; 469.1761,
subdivision 1; 469.1763, subdivision 2; 469.177, subdivision 1; 469.178,
subdivision 7; 469.1791, subdivision 3; 469.1813, subdivision 1a; 469.310, by
adding a subdivision; 469.312, by adding subdivisions; 469.314, subdivision
1; 469.3201; 473F.01, subdivision 2; 473F.08, subdivisions 5, 7a; 477A.011,
subdivisions 34, 36; 477A.0124, subdivision 5; 477A.013, subdivisions 8, 9, by
adding a subdivision; 477A.03; 477A.12, subdivision 1; 477A.14, subdivision
1; Laws 1973, chapter 393, section 1; Laws 1980, chapter 511, section 1,
subdivision 2, as amended; Laws 1994, chapter 587, article 9, section 14,
subdivisions 1, 2, 3; Laws 1995, chapter 264, article 5, sections 44, subdivision
4, as amended; 45, subdivision 1, as amended; Laws 2005, First Special Session
chapter 3, article 5, section 39; Laws 2006, chapter 236, article 1, section 21;
proposing coding for new law in Minnesota Statutes, chapters 84; 270; 270C;
273; 274; 290; 290C; 295; 297A; 383D; 383E; 469; proposing coding for new
law as Minnesota Statutes, chapter 290D; repealing Minnesota Statutes 2006,
sections 270.073; 270.41, subdivision 4; 270.43; 270.51; 270.52; 270.53; 290.01,
subdivision 6b; 290.0921, subdivision 7; 290.191, subdivision 4; 290A.04,
subdivisions 2, 2b; 295.60; 297A.61, subdivision 20; 297A.668, subdivision
6; 297A.67, subdivision 22; 383A.80, subdivision 4; 383B.80, subdivision
4; 469.174, subdivision 29; 473F.08, subdivision 3a; Laws 1973, chapter 393,
section 2; Laws 1994, chapter 587, article 9, section 8, subdivision 1, as amended.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

HOMESTEAD CREDIT STATE REFUND

HOMEOWNERS AND RENTERS

Section 1.

Minnesota Statutes 2006, section 273.1384, subdivision 1, is amended to
read:


Subdivision 1.

Residential homestead market value credit.

new text begin(a) new text endEach county
auditor shall determine a homestead credit for each class 1a, 1b, and 2a homestead
property within the county equal to 0.4 percent of the first $76,000 of market value
of the property minus .09 percent of the market value in excess of $76,000. The credit
amount may not be less than zero. In the case of an agricultural or resort homestead, only
the market value of the house, garage, and immediately surrounding one acre of land is
eligible in determining the property's homestead credit. In the case of a property that
is classified as part homestead and part nonhomestead, (i) the credit shall apply only
to the homestead portion of the property, but (ii) if a portion of a property is classified
as nonhomestead solely because not all the owners occupy the property, not all the
owners have qualifying relatives occupying the property, or solely because not all the
spouses of owners occupy the property, the credit amount shall be initially computed as
if that nonhomestead portion were also in the homestead class and then prorated to the
owner-occupant's percentage of ownership. For the purpose of this section, when an
owner-occupant's spouse does not occupy the property, the percentage of ownership for
the owner-occupant spouse is one-half of the couple's ownership percentage.

new text begin (b) For property taxes payable in 2008 and thereafter, the county auditor shall
determine the amount of the homestead credit under paragraph (a) and this paragraph.
The county auditor shall report the amount of the credit to the taxpayer on the property
tax statement or in another manner, as authorized by the commissioner of revenue. The
amount of the credit allowed for the property taxes payable year is to be computed as the
following percentage of the credit amount under paragraph (a):
new text end

new text begin (1) for property taxes payable in 2008, 100 percent;
new text end

new text begin (2) for property taxes payable in 2009, 60 percent;
new text end

new text begin (3) for property taxes payable in 2010, 30 percent; and
new text end

new text begin (4) for property taxes payable in 2011 or thereafter, no credit is allowed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for property taxes payable
in 2008.
new text end

Sec. 2.

Minnesota Statutes 2006, section 276.04, subdivision 2, is amended to read:


Subd. 2.

Contents of tax statements.

(a) The treasurer shall provide for the
printing of the tax statements. The commissioner of revenue shall prescribe the form
of the property tax statement and its contents. The statement must contain a tabulated
statement of the dollar amount due to each taxing authority and the amount of the state
tax from the parcel of real property for which a particular tax statement is prepared. The
dollar amounts attributable to the county, the state tax, the voter approved school tax, the
other local school tax, the township or municipality, and the total of the metropolitan
special taxing districts as defined in section 275.065, subdivision 3, paragraph (i), must
be separately stated. The amounts due all other special taxing districts, if any, may be
aggregated except that any levies made by the regional rail authorities in the county of
Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
shall be listed on a separate line directly under the appropriate county's levy. If the county
levy under this paragraph includes an amount for a lake improvement district as defined
under sections 103B.501 to 103B.581, the amount attributable for that purpose must be
separately stated from the remaining county levy amount. In the case of Ramsey County,
if the county levy under this paragraph includes an amount for public library service
under section 134.07, the amount attributable for that purpose may be separated from the
remaining county levy amount. The amount of the tax on homesteads qualifying under the
senior citizens' property tax deferral program under chapter 290B is the total amount of
property tax before subtraction of the deferred property tax amount. The amount of the
tax on contamination value imposed under sections 270.91 to 270.98, if any, must also
be separately stated. The dollar amounts, including the dollar amount of any special
assessments, may be rounded to the nearest even whole dollar. For purposes of this section
whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar.
The amount of market value excluded under section 273.11, subdivision 16, if any, must
also be listed on the tax statement.

(b) The property tax statements for manufactured homes and sectional structures
taxed as personal property shall contain the same information that is required on the
tax statements for real property.

(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:

(1) the property's estimated market value under section 273.11, subdivision 1;

(2) the property's taxable market value after reductions under section 273.11,
subdivisions 1a and 16
;

(3) deleted text beginthe property's gross tax, calculated by adding the property's total property tax to
the sum of the aids enumerated in clause (4);
deleted text endnew text begin any items required by the commissioner of
revenue under section 273.1384, subdivision 1, paragraph (b); and
new text end

deleted text begin (4) a total of the following aids:
deleted text end

deleted text begin (i) education aids payable under chapters 122A, 123A, 123B, 124D, 125A, 126C,
and 127A;
deleted text end

deleted text begin (ii) local government aids for cities, towns, and counties under sections to
; and
deleted text end

deleted text begin (iii) disparity reduction aid under section ;
deleted text end

deleted text begin (5) for homestead residential and agricultural properties, the credits under section
;
deleted text end

deleted text begin (6) any credits received under sections ; ; ; ;
deleted text begin273.1398, subdivision 4deleted text end; ; and , except that the amount of credit received
under section must be separately stated and identified as "taconite tax relief"; and
deleted text end

deleted text begin (7)deleted text endnew text begin (4)new text end the net tax payable in the manner required in paragraph (a).

(d) If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current
year, and encouraging taxpayers to attend the hearings. If the county allows notices to
be included in the envelope containing the property tax statement, and if more than
one taxing district relative to a given property decides to include a notice with the tax
statement, the county treasurer or auditor must coordinate the process and may combine
the information on a single announcement.

deleted text begin The commissioner of revenue shall certify to the county auditor the actual or
estimated aids enumerated in paragraph (c), clause (4), that local governments will receive
in the following year. The commissioner must certify this amount by January 1 of each
year.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008 and
thereafter.
new text end

Sec. 3.

Minnesota Statutes 2006, section 290A.03, subdivision 13, is amended to read:


Subd. 13.

Property taxes payable.

"Property taxes payable" means the property
tax exclusive of special assessments, penalties, and interest payable on a claimant's
homestead after deductions made under sections 273.135, deleted text begin273.1384,deleted text end 273.1391, 273.42,
subdivision 2
, and any other state paid property tax credits in any calendar year, and
after any refund claimed and allowable under section 290A.04, subdivision 2h, that is
first payable in the year that the property tax is payable. new text beginBeginning for property taxes
payable in 2008, the amount of the credit under section 273.1384, subdivision 1, must
not be deducted in computing property taxes payable.
new text endIn the case of a claimant who
makes ground lease payments, "property taxes payable" includes the amount of the
payments directly attributable to the property taxes assessed against the parcel on which
the house is located. No apportionment or reduction of the "property taxes payable" shall
be required for the use of a portion of the claimant's homestead for a business purpose if
the claimant does not deduct any business depreciation expenses for the use of a portion
of the homestead in the determination of federal adjusted gross income. For homesteads
which are manufactured homes as defined in section 273.125, subdivision 8, and for
homesteads which are park trailers taxed as manufactured homes under section 168.012,
subdivision 9
, "property taxes payable" shall also include 19 percent of the gross rent paid
in the preceding year for the site on which the homestead is located. When a homestead
is owned by two or more persons as joint tenants or tenants in common, such tenants
shall determine between them which tenant may claim the property taxes payable on the
homestead. If they are unable to agree, the matter shall be referred to the commissioner of
revenue whose decision shall be final. Property taxes are considered payable in the year
prescribed by law for payment of the taxes.

In the case of a claim relating to "property taxes payable," the claimant must have
owned and occupied the homestead on January 2 of the year in which the tax is payable
and (i) the property must have been classified as homestead property pursuant to section
273.124, on or before December 15 of the assessment year to which the "property taxes
payable" relate; or (ii) the claimant must provide documentation from the local assessor
that application for homestead classification has been made on or before December 15
of the year in which the "property taxes payable" were payable and that the assessor has
approved the application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for refund claims based on
property taxes payable in 2008.
new text end

Sec. 4.

Minnesota Statutes 2006, section 290A.04, subdivision 2a, is amended to read:


Subd. 2a.

Renters.

new text begin(a) new text endA claimant whose rent constituting property taxes exceeds
the percentage of the household income stated below must pay an amount equal to the
percent of income shown for the appropriate household income level along with the
percent to be paid by the claimant of the remaining amount of rent constituting property
taxes. The state refund equals the amount of rent constituting property taxes that remain,
up to the maximum state refund amount shown below.

Household Income
Percent of Income
Percent Paid by
Claimant
Maximum State
Refund
deleted text begin $0 to 3,589
deleted text end
1.0 percent
5 percent
deleted text begin $1,190
deleted text end
new text begin $0 to 4,579
new text end
new text begin $1,500
new text end
deleted text begin 3,590 to 4,779
deleted text end
1.0 percent
10 percent
deleted text begin $1,190
deleted text end
new text begin 4,580 to 6,099
new text end
new text begin $1,500
new text end
deleted text begin 4,780 to 5,969
deleted text end
1.1 percent
10 percent
deleted text begin $1,190
deleted text end
new text begin 6,100 to 7,619
new text end
new text begin $1,500
new text end
deleted text begin 5,970 to 8,369
deleted text end
1.2 percent
10 percent
deleted text begin $1,190
deleted text end
new text begin 7,620 to 10,669
new text end
new text begin $1,500
new text end
deleted text begin 8,370 to 10,759
deleted text end
1.3 percent
15 percent
deleted text begin $1,190
deleted text end
new text begin 10,670 to 13,729
new text end
new text begin $1,500
new text end
deleted text begin 10,760 to 11,949
deleted text end
1.4 percent
15 percent
deleted text begin $1,190
deleted text end
new text begin 13,730 to 15,239
new text end
new text begin $1,500
new text end
deleted text begin 11,950 to 13,139
deleted text end
1.4 percent
20 percent
deleted text begin $1,190
deleted text end
new text begin 15,240 to 16,769
new text end
new text begin $1,500
new text end
deleted text begin 13,140 to 15,539
deleted text end
1.5 percent
20 percent
deleted text begin $1,190
deleted text end
new text begin 16,770 to 19,829
new text end
new text begin $1,500
new text end
deleted text begin 15,540 to 16,729
deleted text end
1.6 percent
20 percent
deleted text begin $1,190
deleted text end
new text begin 19,830 to 21,349
new text end
new text begin $1,500
new text end
deleted text begin 16,730 to 17,919
deleted text end
1.7 percent
25 percent
deleted text begin $1,190
deleted text end
new text begin 21,350 to 22,859
new text end
new text begin $1,500
new text end
deleted text begin 17,920 to 20,319
deleted text end
1.8 percent
25 percent
deleted text begin $1,190
deleted text end
new text begin 22,860 to 25,929
new text end
new text begin $1,500
new text end
deleted text begin 20,320 to 21,509
deleted text end
1.9 percent
30 percent
deleted text begin $1,190
deleted text end
new text begin 25,930 to 27,439
new text end
new text begin $1,500
new text end
deleted text begin 21,510 to 22,699
deleted text end
2.0 percent
30 percent
deleted text begin $1,190
deleted text end
new text begin 27,440 to 28,959
new text end
new text begin $1,500
new text end
deleted text begin 22,700 to 23,899
deleted text end
2.2 percent
30 percent
deleted text begin $1,190
deleted text end
new text begin 28,960 to 30,499
new text end
new text begin $1,500
new text end
deleted text begin 23,900 to 25,089
deleted text end
2.4 percent
30 percent
deleted text begin $1,190
deleted text end
new text begin 30,500 to 32,009
new text end
new text begin $1,500
new text end
deleted text begin 25,090 to 26,289
deleted text end
2.6 percent
35 percent
deleted text begin $1,190
deleted text end
new text begin 32,010 to 33,539
new text end
new text begin $1,500
new text end
deleted text begin 26,290 to 27,489
deleted text end
2.7 percent
35 percent
deleted text begin $1,190
deleted text end
new text begin 33,540 to 35,079
new text end
new text begin $1,500
new text end
deleted text begin 27,490 to 28,679
deleted text end
2.8 percent
35 percent
deleted text begin $1,190
deleted text end
new text begin 35,080 to 36,589
new text end
new text begin $1,500
new text end
deleted text begin 28,680 to 29,869
deleted text end
2.9 percent
40 percent
deleted text begin $1,190
deleted text end
new text begin 36,590 to 38,109
new text end
new text begin $1,500
new text end
deleted text begin 29,870 to 31,079
deleted text end
3.0 percent
40 percent
deleted text begin $1,190
deleted text end
new text begin 38,110 to 39,649
new text end
new text begin $1,500
new text end
deleted text begin 31,080 to 32,269
deleted text end
3.1 percent
40 percent
deleted text begin $1,190
deleted text end
new text begin 39,650 to 41,169
new text end
new text begin $1,500
new text end
deleted text begin 32,270 to 33,459
deleted text end
3.2 percent
40 percent
deleted text begin $1,190
deleted text end
new text begin 41,170 to 42,689
new text end
new text begin $1,500
new text end
deleted text begin 33,460 to 34,649
deleted text end
3.3 percent
45 percent
deleted text begin $1,080
deleted text end
new text begin 42,690 to 49,729
new text end
new text begin $1,370
new text end
deleted text begin 34,650 to 35,849
deleted text end
3.4 percent
45 percent
deleted text begin $ 960
deleted text end
new text begin 49,730 to 51,459
new text end
new text begin $1,220
new text end
deleted text begin 35,850 to 37,049
deleted text end
3.5 percent
45 percent
deleted text begin $ 830
deleted text end
new text begin 51,460 to 53,189
new text end
new text begin $1,050
new text end
deleted text begin 37,050 to 38,239
deleted text end
3.5 percent
50 percent
deleted text begin $ 720
deleted text end
new text begin 53,190 to 54,899
new text end
new text begin $910
new text end
deleted text begin 38,240 to 39,439
deleted text end
3.5 percent
50 percent
deleted text begin $ 600
deleted text end
new text begin 54,900 to 56,609
new text end
new text begin $760
new text end
deleted text begin 38,440 to 40,629
deleted text end
3.5 percent
50 percent
deleted text begin $ 360
deleted text end
new text begin 56,610 to 58,319
new text end
new text begin $450
new text end
deleted text begin 40,630 to 41,819
deleted text end
3.5 percent
50 percent
deleted text begin $ 120
deleted text end
new text begin 58,320 to 60,000
new text end
new text begin $150
new text end

new text begin (b) new text endThe payment made to a claimant is the amount of the state refund calculated
under this subdivision. No payment is allowed if the claimant's household income is
deleted text begin $41,820deleted text end new text begin$60,000 new text endor more.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for claims filed for rent
paid after December 31, 2006.
new text end

Sec. 5.

Minnesota Statutes 2006, section 290A.04, subdivision 2h, is amended to read:


Subd. 2h.

Additional refund.

(a) If the gross property taxes payable on a
homestead increase more than 12 percent over the property taxes payable in the prior year
on the same property that is owned and occupied by the same owner on January 2 of both
years, and the amount of that increase is $100 or more, a claimant who is a homeowner
shall be allowed an additional refund equal to 60 percent of the amount of the increase
over the greater of 12 percent of the prior year's property taxes payable or $100. This
subdivision shall not apply to any increase in the gross property taxes payable attributable
to improvements made to the homestead after the assessment date for the prior year's
taxes. This subdivision shall not apply to any increase in the gross property taxes payable
attributable to the termination of valuation exclusions under section 273.11, subdivision
16
new text begin, or to the reduction in and elimination of the homestead market value credit under
section 273.1384, subdivision 1, paragraph (b)
new text end.

The maximum refund allowed under this subdivision is $1,000.

(b) For purposes of this subdivision "gross property taxes payable" means property
taxes payable determined without regard to the refund allowed under this subdivision.

(c) In addition to the other proofs required by this chapter, each claimant under
this subdivision shall file with the property tax refund return a copy of the property tax
statement for taxes payable in the preceding year or other documents required by the
commissioner.

(d) Upon request, the appropriate county official shall make available the names and
addresses of the property taxpayers who may be eligible for the additional property tax
refund under this section. The information shall be provided on a magnetic computer
disk. The county may recover its costs by charging the person requesting the information
the reasonable cost for preparing the data. The information may not be used for any
purpose other than for notifying the homeowner of potential eligibility and assisting the
homeowner, without charge, in preparing a refund claim.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims based on property taxes
payable in 2008 and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2006, section 290A.04, is amended by adding a subdivision
to read:


new text begin Subd. 2k. new text end

new text begin Homestead credit state refund. new text end

new text begin (a) A claimant who is a homeowner
is entitled to a state refund of the amount of the property taxes payable in excess of two
percent of the claimant's household income, based on the percentage and maximum for the
appropriate household income level shown below. The refund amount determined from the
table must be reduced further by the amount of the homestead market value credit under
section 273.1384, subdivision 1, paragraph (b), but not to an amount that is less than zero.
new text end

new text begin Household Income
new text end
new text begin Refund Percentage
new text end
new text begin Maximum State Refund
new text end
new text begin 0 to $5,399
new text end
new text begin 90 percent
new text end
new text begin $2,500
new text end
new text begin 5,400 to 18,899
new text end
new text begin 85 percent
new text end
new text begin 2,500
new text end
new text begin 18,900 to 26,999
new text end
new text begin 80 percent
new text end
new text begin 2,500
new text end
new text begin 27,000 to 32,399
new text end
new text begin 75 percent
new text end
new text begin 2,500
new text end
new text begin 32,400 to 37,799
new text end
new text begin 70 percent
new text end
new text begin 2,500
new text end
new text begin 37,800 to 45,899
new text end
new text begin 65 percent
new text end
new text begin 2,500
new text end
new text begin 45,900 to 64,699
new text end
new text begin 60 percent
new text end
new text begin 2,500
new text end
new text begin 64,700 to 80,899
new text end
new text begin 55 percent
new text end
new text begin 2,300
new text end
new text begin 80,900 to 94,399
new text end
new text begin 50 percent
new text end
new text begin 2,100
new text end
new text begin 94,400 to 99,299
new text end
new text begin 45 percent
new text end
new text begin 1,900
new text end
new text begin 99,300 to 104,099
new text end
new text begin 40 percent
new text end
new text begin 1,700
new text end
new text begin 104,100 to 115,599
new text end
new text begin 30 percent
new text end
new text begin 1,500
new text end
new text begin 115,600 to 127,199
new text end
new text begin 30 percent
new text end
new text begin 1,250
new text end
new text begin 127,200 to 134,099
new text end
new text begin 25 percent
new text end
new text begin 1,000
new text end
new text begin 134,100 to 138,799
new text end
new text begin 25 percent
new text end
new text begin 750
new text end
new text begin 138,800 to 144,399
new text end
new text begin 25 percent
new text end
new text begin 500
new text end
new text begin 144,400 to 150,000
new text end
new text begin 25 percent
new text end
new text begin 250
new text end

new text begin (b) No payment is allowed under paragraph (a) if the claimant's household income
is more than $150,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for claims based on
property taxes payable in 2008.
new text end

Sec. 7.

Minnesota Statutes 2006, section 290A.04, subdivision 3, is amended to read:


Subd. 3.

Table.

The commissioner of revenue shall construct and make available
to taxpayers a comprehensive table showing the deleted text beginproperty taxes to be paid anddeleted text end refund
allowed at various levels of income deleted text beginand assessmentdeleted text end. The table shall follow the schedule
of income percentages, maximums and other provisions specified in deleted text beginsubdivision 2deleted text endnew text begin this
section
new text end, except that the commissioner may graduate the transition between income
brackets. All refunds shall be computed in accordance with tables prepared and issued
by the commissioner of revenue.

The commissioner shall include on the form an appropriate space or method for the
claimant to identify if the property taxes paid are for a manufactured home, as defined in
section 273.125, subdivision 8, paragraph (c), or a park trailer taxed as a manufactured
home under section 168.012, subdivision 9.

Sec. 8.

Minnesota Statutes 2006, section 290A.04, subdivision 4, is amended to read:


Subd. 4.

Inflation adjustment.

Beginning for property tax refunds payable in
calendar year deleted text begin2002deleted text endnew text begin 2009new text end, the commissioner shall annually adjust the dollar amounts of
the income thresholds and the maximum refunds under subdivisions deleted text begin2 anddeleted text end 2a new text beginand 2k new text endfor
inflation. The commissioner shall make the inflation adjustments in accordance with
section 1(f) of the Internal Revenue Code, except that for purposes of this subdivision
the percentage increase shall be determined from the year ending on June 30, deleted text begin2000deleted text endnew text begin 2007new text end,
to the year ending on June 30 of the year preceding that in which the refund is payable.
The commissioner shall use the appropriate percentage increase to annually adjust the
income thresholds and maximum refunds under subdivisions deleted text begin2 anddeleted text end 2a new text beginand 2k new text endfor inflation
without regard to whether or not the income tax brackets are adjusted for inflation in that
year. The commissioner shall round the thresholds and the maximum amounts, as adjusted
to the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up
to the next $10 amount.

The commissioner shall annually announce the adjusted refund schedule at the same
time provided under section 290.06. The determination of the commissioner under this
subdivision is not a rule under the Administrative Procedure Act.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for claims based on
property taxes payable in 2009.
new text end

Sec. 9. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2006, section 290A.04, subdivisions 2 and 2b, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims based on property taxes
payable in 2008 and later.
new text end

ARTICLE 2

AIDS TO LOCAL GOVERNMENTS

Section 1.

Minnesota Statutes 2006, section 477A.011, subdivision 34, is amended to
read:


Subd. 34.

City revenue need.

(a) For a city with a population equal to or greater
than 2,500, "city revenue need" is the sum of (1) 5.0734098 times the pre-1940 housing
percentage; plus (2) 19.141678 times the population decline percentage; plus (3)
2504.06334 times the road accidents factor; plus (4) 355.0547; minus (5) the metropolitan
area factor; minus (6) 49.10638 times the household size.

(b) For a city with a population less than 2,500, "city revenue need" is the sum of (1)
deleted text begin 2.387 times the pre-1940 housing percentagedeleted text endnew text begin 300new text end; plus (2) deleted text begin2.67591 times the commercial
industrial percentage; plus (3) 3.16042 times the population decline percentage; plus
(4) 1.206 times the transformed population; minus (5) 62.772.
deleted text endnew text begin 0.31 multiplied by the
difference between the city's population and 100. The city revenue need for a city with a
population less than 2,500 may not exceed 500.
new text end

(c) For a city with a population of 2,500 or more and a population in one of the most
recently available five years that was less than 2,500, "city revenue need" is the sum of (1)
its city revenue need calculated under paragraph (a) multiplied by its transition factor;
plus (2) its city revenue need calculated under the formula in paragraph (b) multiplied
by the difference between one and its transition factor. For purposes of this paragraph, a
city's "transition factor" is equal to 0.2 multiplied by the number of years that the city's
population estimate has been 2,500 or more. This provision only applies for aids payable
in calendar years 2006 to 2008 to cities with a 2002 population of less than 2,500. It
applies to any city for aids payable in 2009 and thereafter.

(d) The city revenue need cannot be less than zero.

(e) For calendar year deleted text begin2005deleted text end new text begin2008 new text endand subsequent years, the city revenue need for
a city, as determined in paragraphs (a) to (d), is multiplied by the ratio of the annual
implicit price deflator for government consumption expenditures and gross investment for
state and local governments as prepared by the United States Department of Commerce,
for the most recently available year to the deleted text begin2003deleted text end new text begin2000 new text endimplicit price deflator for state
and local government purchases.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2008.
new text end

Sec. 2.

Minnesota Statutes 2006, section 477A.011, subdivision 36, is amended to read:


Subd. 36.

City aid base.

(a) Except as otherwise provided in this subdivision,
"city aid base" is zero.

(b) The city aid base for any city with a population less than 500 is increased by
$40,000 for aids payable in calendar year 1995 and thereafter, and the maximum amount
of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also
increased by $40,000 for aids payable in calendar year 1995 only, provided that:

(i) the average total tax capacity rate for taxes payable in 1995 exceeds 200 percent;

(ii) the city portion of the tax capacity rate exceeds 100 percent; and

(iii) its city aid base is less than $60 per capita.

(c) The city aid base for a city is increased by $20,000 in 1998 and thereafter and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $20,000 in calendar year 1998 only, provided that:

(i) the city has a population in 1994 of 2,500 or more;

(ii) the city is located in a county, outside of the metropolitan area, which contains a
city of the first class;

(iii) the city's net tax capacity used in calculating its 1996 aid under section
477A.013 is less than $400 per capita; and

(iv) at least four percent of the total net tax capacity, for taxes payable in 1996, of
property located in the city is classified as railroad property.

(d) The city aid base for a city is increased by $200,000 in 1999 and thereafter and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $200,000 in calendar year 1999 only, provided that:

(i) the city was incorporated as a statutory city after December 1, 1993;

(ii) its city aid base does not exceed $5,600; and

(iii) the city had a population in 1996 of 5,000 or more.

(e) The city aid base for a city is increased by $450,000 in 1999 to 2008 and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $450,000 in calendar year 1999 only, provided that:

(i) the city had a population in 1996 of at least 50,000;

(ii) its population had increased by at least 40 percent in the ten-year period ending
in 1996; and

(iii) its city's net tax capacity for aids payable in 1998 is less than $700 per capita.

(f) The city aid base for a city is increased by $150,000 for aids payable in 2000 and
thereafter, and the maximum amount of total aid it may receive under section 477A.013,
subdivision 9
, paragraph (c), is also increased by $150,000 in calendar year 2000 only,
provided that:

(1) the city has a population that is greater than 1,000 and less than 2,500;

(2) its commercial and industrial percentage for aids payable in 1999 is greater
than 45 percent; and

(3) the total market value of all commercial and industrial property in the city
for assessment year 1999 is at least 15 percent less than the total market value of all
commercial and industrial property in the city for assessment year 1998.

(g) The city aid base for a city is increased by $200,000 in 2000 and thereafter, and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $200,000 in calendar year 2000 only, provided that:

(1) the city had a population in 1997 of 2,500 or more;

(2) the net tax capacity of the city used in calculating its 1999 aid under section
477A.013 is less than $650 per capita;

(3) the pre-1940 housing percentage of the city used in calculating 1999 aid under
section 477A.013 is greater than 12 percent;

(4) the 1999 local government aid of the city under section 477A.013 is less than
20 percent of the amount that the formula aid of the city would have been if the need
increase percentage was 100 percent; and

(5) the city aid base of the city used in calculating aid under section 477A.013
is less than $7 per capita.

(h) The city aid base for a city is increased by $102,000 in 2000 and thereafter, and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $102,000 in calendar year 2000 only, provided that:

(1) the city has a population in 1997 of 2,000 or more;

(2) the net tax capacity of the city used in calculating its 1999 aid under section
477A.013 is less than $455 per capita;

(3) the net levy of the city used in calculating 1999 aid under section 477A.013 is
greater than $195 per capita; and

(4) the 1999 local government aid of the city under section 477A.013 is less than
38 percent of the amount that the formula aid of the city would have been if the need
increase percentage was 100 percent.

(i) The city aid base for a city is increased by $32,000 in 2001 and thereafter, and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $32,000 in calendar year 2001 only, provided that:

(1) the city has a population in 1998 that is greater than 200 but less than 500;

(2) the city's revenue need used in calculating aids payable in 2000 was greater
than $200 per capita;

(3) the city net tax capacity for the city used in calculating aids available in 2000
was equal to or less than $200 per capita;

(4) the city aid base of the city used in calculating aid under section 477A.013
is less than $65 per capita; and

(5) the city's formula aid for aids payable in 2000 was greater than zero.

(j) The city aid base for a city is increased by $7,200 in 2001 and thereafter, and
the maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $7,200 in calendar year 2001 only, provided that:

(1) the city had a population in 1998 that is greater than 200 but less than 500;

(2) the city's commercial industrial percentage used in calculating aids payable in
2000 was less than ten percent;

(3) more than 25 percent of the city's population was 60 years old or older according
to the 1990 census;

(4) the city aid base of the city used in calculating aid under section 477A.013
is less than $15 per capita; and

(5) the city's formula aid for aids payable in 2000 was greater than zero.

(k) The city aid base for a city is increased by $45,000 in 2001 and thereafter and
by an additional $50,000 in calendar years 2002 to 2011, and the maximum amount of
total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is also
increased by $45,000 in calendar year 2001 only, and by $50,000 in calendar year 2002
only, provided that:

(1) the net tax capacity of the city used in calculating its 2000 aid under section
477A.013 is less than $810 per capita;

(2) the population of the city declined more than two percent between 1988 and 1998;

(3) the net levy of the city used in calculating 2000 aid under section 477A.013 is
greater than $240 per capita; and

(4) the city received less than $36 per capita in aid under section 477A.013,
subdivision 9
, for aids payable in 2000.

(l) The city aid base for a city with a population of 10,000 or more which is located
outside of the seven-county metropolitan area is increased in 2002 and thereafter, and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (b) or (c), is also increased in calendar year 2002 only, by an amount equal to
the lesser of:

(1)(i) the total population of the city, as determined by the United States Bureau of
the Census, in the 2000 census, (ii) minus 5,000, (iii) times 60; or

(2) $2,500,000.

(m) The city aid base is increased by $50,000 in 2002 and thereafter, and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9,
paragraph (c), is also increased by $50,000 in calendar year 2002 only, provided that:

(1) the city is located in the seven-county metropolitan area;

(2) its population in 2000 is between 10,000 and 20,000; and

(3) its commercial industrial percentage, as calculated for city aid payable in 2001,
was greater than 25 percent.

(n) The city aid base for a city is increased by $150,000 in calendar years 2002 to
2011 new text beginand by an additional $75,000 in calendar years 2008 to 2013 new text endand the maximum
amount of total aid it may receive under section 477A.013, subdivision 9, paragraph (c), is
also increased by $150,000 in calendar year 2002 onlynew text begin and by $75,000 in calendar year
2008 only
new text end, provided that:

(1) the city had a population of at least 3,000 but no more than 4,000 in 1999;

(2) its home county is located within the seven-county metropolitan area;

(3) its pre-1940 housing percentage is less than 15 percent; and

(4) its city net tax capacity per capita for taxes payable in 2000 is less than $900
per capita.

(o) The city aid base for a city is increased by $200,000 beginning in calendar
year 2003 and the maximum amount of total aid it may receive under section 477A.013,
subdivision 9
, paragraph (c), is also increased by $200,000 in calendar year 2003 only,
provided that the city qualified for an increase in homestead and agricultural credit aid
under Laws 1995, chapter 264, article 8, section 18.

(p) The city aid base for a city is increased by $200,000 in 2004 only and the
maximum amount of total aid it may receive under section 477A.013, subdivision 9, is
also increased by $200,000 in calendar year 2004 only, if the city is the site of a nuclear
dry cask storage facility.

(q) The city aid base for a city is increased by $10,000 in 2004 and thereafter and the
maximum total aid it may receive under section 477A.013, subdivision 9, is also increased
by $10,000 in calendar year 2004 only, if the city was included in a federal major disaster
designation issued on April 1, 1998, and its pre-1940 housing stock was decreased by
more than 40 percent between 1990 and 2000.

(r) The city aid base for a city is increased by deleted text begin$25,000deleted text endnew text begin $30,000new text end in deleted text begin2006deleted text endnew text begin 2008new text end only
and the maximum total aid it may receive under section 477A.013, subdivision 9, is also
increased by deleted text begin$25,000deleted text endnew text begin $30,000new text end in calendar year deleted text begin2006deleted text endnew text begin 2008new text end only if the city had a population
in 2003 of at least 1,000 and has a state park for which the city provides rescue services
and which comprised at least 14 percent of the total geographic area included within the
city boundaries in 2000.

(s) The city aid base for a city with a population less than 5,000 is increased in
2006 and thereafter and the minimum and maximum amount of total aid it may receive
under this section is also increased in calendar year 2006 only by an amount equal to
$6 multiplied by its population.

(t) The city aid base for a city is increased by $80,000 in 2007 only and the minimum
and maximum amount of total aid it may receive under section 477A.013, subdivision 9,
is also increased by $80,000 in calendar year 2007 only, if:

(1) as of May 1, 2006, at least 25 percent of the tax capacity of the city is proposed
to be placed in trust status as tax-exempt Indian land;

(2) the placement of the land is being challenged administratively or in court; and

(3) due to the challenge, the land proposed to be placed in trust is still on the tax
rolls as of May 1, 2006.

(u) The city aid base for a city is increased by $100,000 in 2007 and thereafter and
the minimum and maximum total amount of aid it may receive under this section is also
increased in calendar year 2007 only, provided that:

(1) the city has a 2004 estimated population greater than 200 but less than 2,000;

(2) its city net tax capacity for aids payable in 2006 was less than $300 per capita;

(3) the ratio of its pay 2005 tax levy compared to its city net tax capacity for aids
payable in 2006 was greater than 110 percent; and

(4) it is located in a county where at least 15,000 acres of land are classified as
tax-exempt Indian reservations according to the 2004 abstract of tax-exempt property.

new text begin (v) The city aid base for a city is increased by $140,000 in 2008 and thereafter, and
the maximum total aid it may receive under section 477A.013, subdivision 9, is also
increased by $140,000 in calendar year 2008 only if the city had a population in 2005 of
less than 3,000 and the city's boundaries as of 2007 were formed by the consolidation
of two cities and one township in 2002.
new text end

new text begin (w) The city aid base for a city is increased by $100,000 in 2008 and thereafter, and
the maximum total aid it may receive under section 477A.013, subdivision 9, is also
increased by $100,000 in calendar year 2008 only if the city had a city net tax capacity for
aids payable in 2007 of less than $150 per capita and the city experienced flooding on
March 14, 2007, that resulted in evacuation of at least 40 homes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2007.
new text end

Sec. 3.

Minnesota Statutes 2006, section 477A.0124, subdivision 5, is amended to read:


Subd. 5.

County transition aid.

(a) For 2005, a county is eligible for transition
aid equal to the amount, if any, by which:

(1) the difference between:

(i) the aid the county received under subdivision 1 in 2004, divided by the total aid
paid to all counties under subdivision 1, multiplied by $205,000,000; and

(ii) the amount of aid the county is certified to receive in 2005 under subdivisions
3 and 4;

exceeds:

(2) three percent of the county's adjusted net tax capacity.

A county's aid under this paragraph may not be less than zero.

(b) In 2006, a county is eligible to receive two-thirds of the transition aid it received
in 2005.

(c) In 2007new text begin and thereafternew text end, a county is eligible to receive one-third of the transition
aid it received in 2005.

(d) deleted text beginNo county shall receive aid under this subdivision after 2007.deleted text endnew text begin In 2008 only, a
county that in 2003 was directed to construct new court facilities by the tenth judicial
district of the State of Minnesota is eligible to receive $250,000 in transition aid, provided
that construction of the facilities commences before July 1, 2008.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2008 and
thereafter.
new text end

Sec. 4.

Minnesota Statutes 2006, section 477A.013, subdivision 8, is amended to read:


Subd. 8.

City formula aid.

In calendar year 2004 and subsequent years, the
formula aid for a city is equal to the need increase percentage multiplied by the difference
between (1) the city's revenue need multiplied by its population, and (2) deleted text beginthe sum ofdeleted text end the
city's net tax capacity multiplied by the tax effort ratedeleted text begin; the taconite aids under sections
298.28 and 298.282 to any city except a city directly impacted by a taconite mine or plant,
multiplied by the following percentages:
deleted text end

deleted text begin (i) zero percent for aids payable in 2004;
deleted text end

deleted text begin (ii) 25 percent for aids payable in 2005;
deleted text end

deleted text begin (iii) 50 percent for aids payable in 2006;
deleted text end

deleted text begin (iv) 75 percent for aids payable in 2007; and
deleted text end

deleted text begin (v) 100 percent for aids payable in 2008 and thereafterdeleted text end.

deleted text begin For purposes of this subdivision, "a city directly impacted by a taconite mine or
plant" means: (1) Babbit, (2) Eveleth, (3) Hibbing, (4) Keewatin, (5) Mountain Iron, (6)
Silver Bay, or (7) Virginia.
deleted text end

No city may have a formula aid amount less than zero. The need increase percentage
must be the same for all cities.

The applicable need increase percentage must be calculated by the Department of
Revenue so that the total of the aid under subdivision 9 equals the total amount available
for aid under section 477A.03 after the subtraction under section 477A.014, subdivisions
4 and 5
.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2008.
new text end

Sec. 5.

Minnesota Statutes 2006, section 477A.013, subdivision 9, is amended to read:


Subd. 9.

City aid distribution.

(a) In calendar year deleted text begin2002 and thereafterdeleted text endnew text begin 2008new text end, each
city shall receive an aid distribution equal to the sum of (1) the city formula aid under
subdivision 8, deleted text beginanddeleted text end (2) its city aid basenew text begin, and (3) one-half of the difference between its total
aid in the previous year under this section and its city aid base in the previous year. For aids
payable in 2009 and thereafter, each city shall receive an aid distribution equal to the sum
of (1) the city formula aid under subdivision 8, (2) its city aid base, and (3) its formula aid
under subdivision 8 in the previous year, prior to any adjustments under this subdivision
new text end.

(b) new text beginFor aids payable in 2008, the total aid for any city shall not exceed the sum of (1)
25 percent of its net levy for the year prior to the aid distribution plus (2) its total aid in the
previous year.
new text endFor aids payable in deleted text begin2005deleted text endnew text begin 2009new text end and thereafter, the total aid for any city shall
not exceed the sum of (1) ten percent of the city's net levy for the year prior to the aid
distribution plus (2) its total aid in the previous year. For aids payable in deleted text begin2005deleted text endnew text begin 2008new text end and
thereafter, the total aid for any city with a population of 2,500 or more may not deleted text begindecrease
from
deleted text end new text beginbe less than new text endits total aid under this section in the previous year deleted text beginby an amount greater
than
deleted text end new text beginminus the lesser of (1) $15 multiplied by its population, or (2) new text endten percent of its net
levy in the year prior to the aid distribution.

(c) deleted text beginFor aids payable in 2004 only, the total aid for a city with a population less than
2,500 may not be less than the amount it was certified to receive in 2003 minus the greater
of (1) the reduction to this aid payment in 2003 under Laws 2003, First Special Session
chapter 21, article 5, or (2) five percent of its 2003 aid amount.
deleted text endnew text begin For aids payable in 2008
only, the total aid for a city with a population less than 2,500 must not be less than the
amount it would otherwise be certified to receive in 2008 if this act was not enacted.
new text end For
aids payable in deleted text begin2005deleted text end new text begin2008 new text endand thereafter, the total aid for a city with a population less
than 2,500 must not be less than the amount it was certified to receive in the previous year
minus new text beginthe lesser of (1) $15 multiplied by its population, or (2) new text endfive percent of its 2003
certified aid amount.

(d) If a city's net tax capacity used in calculating aid under this section has decreased
in any year by more than 25 percent from its net tax capacity in the previous year due to
property becoming tax-exempt Indian land, the city's maximum allowed aid increase
under paragraph (b) shall be increased by an amount equal to (1) the city's tax rate in the
year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease
resulting from the property becoming tax exempt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2008 and
thereafter.
new text end

Sec. 6.

Minnesota Statutes 2006, section 477A.013, is amended by adding a
subdivision to read:


new text begin Subd. 11. new text end

new text begin Towns. new text end

new text begin In 2008 and subsequent years, each town that levied a property
tax in the previous year shall receive a distribution equal to $3 multiplied by its population.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year
2008 and thereafter.
new text end

Sec. 7.

Minnesota Statutes 2006, section 477A.03, is amended to read:


477A.03 APPROPRIATION.

Subd. 2.

Annual appropriation.

A sum sufficient to discharge the duties imposed
by sections 477A.011 to 477A.014 is annually appropriated from the general fund to the
commissioner of revenue.

Subd. 2a.

Cities.

deleted text beginFor aids payable in 2004, the total aids paid under section
477A.013, subdivision 9, are limited to $429,000,000. For aids payable in 2005, the
total aids paid under section 477A.013, subdivision 9, are limited to $437,052,000.
deleted text end For
aids payable in deleted text begin2006 and thereafterdeleted text endnew text begin 2008new text end, the total aids paid under section 477A.013,
subdivision 9
, is limited to deleted text begin$485,052,000deleted text endnew text begin $545,052,000new text end.new text begin For aids payable in 2009 and
thereafter, the total aids paid under section 477A.013, subdivision 9, are the amounts
certified to be paid in the previous year, adjusted for inflation as provided under
subdivision 5.
new text end

Subd. 2b.

Counties.

(a) For aids payable in calendar year deleted text begin2005 and thereafterdeleted text endnew text begin
2008
new text end, the total aids paid to counties under section 477A.0124, subdivision 3, are limited
to deleted text begin$100,500,000deleted text endnew text begin $112,500,000. For aids payable in 2009 and thereafter, the total aids
paid under section 477A.0124, subdivision 3, are the amounts certified to be paid in the
previous year, adjusted for inflation as provided under subdivision 5
new text end. Each calendar year,
$500,000 shall be retained by the commissioner of revenue to make reimbursements
to the commissioner of finance for payments made under section 611.27. deleted text beginFor calendar
year 2004, the amount shall be in addition to the payments authorized under section
477A.0124, subdivision 1. For calendar year 2005 and subsequent years,
deleted text end The amount shall
be deducted from the appropriation under this paragraph. The reimbursements shall be to
defray the additional costs associated with court-ordered counsel under section 611.27.
Any retained amounts not used for reimbursement in a year shall be included in the next
distribution of county need aid that is certified to the county auditors for the purpose of
property tax reduction for the next taxes payable year.

(b) deleted text beginFor aids payable in 2005, the total aids under section 477A.0124, subdivision
4
, are limited to $105,000,000.
deleted text end For aids payable in deleted text begin2006 and thereafterdeleted text endnew text begin 2008new text end, the total
aid under section 477A.0124, subdivision 4, is limited to deleted text begin$105,132,923deleted text endnew text begin $116,669,054.
For aids payable in 2009 and thereafter, the total aids paid under section 477A.0124,
subdivision 4, are the amounts certified to be paid in the previous year, adjusted for
inflation as provided under subdivision 5
new text end. The commissioner of finance shall bill the
commissioner of revenue for the cost of preparation of local impact notes as required by
section 3.987, not to exceed $207,000 in fiscal year 2004 and thereafter. The commissioner
of education shall bill the commissioner of revenue for the cost of preparation of local
impact notes for school districts as required by section 3.987, not to exceed $7,000 in fiscal
year 2004 and thereafter. The commissioner of revenue shall deduct the amounts billed
under this paragraph from the appropriation under this paragraph. The amounts deducted
are appropriated to the commissioner of finance and the commissioner of education for the
preparation of local impact notes.

new text begin Subd. 5. new text end

new text begin Inflation adjustment. new text end

new text begin (a) In 2009 and thereafter, the amount paid under
subdivision 2a shall each be increased by an amount as provided in paragraphs (b) and (c).
new text end

new text begin (b) Unless the requirements of paragraph (c) are met, the increase shall be one
percent above the amount certified to be paid under those subdivisions in the previous year.
new text end

new text begin (c) If the legislature adopts a new formula proposed by the study in section 13
that all city organizations representing at least 40 cities in the state support, the increase
shall be equal to:
new text end

new text begin (1) the amount certified to be paid under that subdivision in the previous year,
multiplied by
new text end

new text begin (2) one plus the percentage increase in the implicit price deflator for state and
local government purchases of goods and services prepared by the Bureau of Economic
Analysis of the United States Department of Commerce for the 12-month period ending
March 31 of the previous year.
new text end

new text begin The increase under this provision in any year may not be less than 2.5 percent or
greater than 5.0 percent.
new text end

new text begin (d) In 2009 to 2010, the amounts paid under subdivision 2b, paragraphs (a) and (b)
shall be increased by the greater of (1) one percent over the amount paid in the previous
year, or (2) the inflation amount applied to the city appropriation under this subdivision. In
2011 and thereafter, the increase shall be equal to:
new text end

new text begin (1) the amount certified to be paid under that subdivision in the previous year,
multiplied by
new text end

new text begin (2) one plus the percentage increase in the implicit price deflator for state and
local government purchases of goods and services prepared by the Bureau of Economic
Analysis of the United States Department of Commerce for the 12-month period ending
March 31 of the previous year.
new text end

new text begin The increase under this provision in any year may not be less than 2.5 percent or
greater than 5.0 percent.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year
2008 and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2006, section 477A.12, subdivision 1, is amended to read:


Subdivision 1.

Types of land; payments.

(a) As an offset for expenses incurred
by counties and towns in support of natural resources lands, the following amounts are
annually appropriated to the commissioner of natural resources from the general fund for
transfer to the commissioner of revenue. The commissioner of revenue shall pay the
transferred funds to counties as required by sections 477A.11 to 477A.145. The amounts
are:

(1) for acquired natural resources land, $3, as adjusted for inflation under section
477A.145, multiplied by the total number of acres of acquired natural resources land or,
at the county's option three-fourths of one percent of the appraised value of all acquired
natural resources land in the county, whichever is greater;

(2) 75 cents, as adjusted for inflation under section 477A.145, multiplied by the
number of acres of county-administered other natural resources land;

(3) deleted text begin75 centsdeleted text endnew text begin $3new text end, as adjusted for inflation under section 477A.145, multiplied by
the total number of acres of land utilization project landnew text begin that is located entirely within a
wildlife management area as described in section 86A.05, subdivision 8; and 75 cents, as
adjusted for inflation under section 477A.145, multiplied by the total number of acres of
land utilization project land not located within a wildlife management area
new text end; and

(4) 37.5 cents, as adjusted for inflation under section 477A.145, multiplied by the
number of acres of commissioner-administered other natural resources land located in
each county as of July 1 of each year prior to the payment year.

(b) The amount determined under paragraph (a), clause (1), is payable for land
that is acquired from a private owner and owned by the Department of Transportation
for the purpose of replacing wetland losses caused by transportation projects, but only
if the county contains more than 500 acres of such land at the time the certification is
made under subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for payments in 2008 and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2006, section 477A.14, subdivision 1, is amended to read:


Subdivision 1.

General distribution.

Except as provided in subdivision 2 or in
section 97A.061, subdivision 5, 40 percent of the total payment to the county shall be
deposited in the county general revenue fund to be used to provide property tax levy
reduction. The remainder shall be distributed by the county in the following priority:

(a) 37.5 cents, as adjusted for inflation under section 477A.145, for each acre
of county-administered other natural resources land shall be deposited in a resource
development fund to be created within the county treasury for use in resource
development, forest management, game and fish habitat improvement, and recreational
development and maintenance of county-administered other natural resources land. Any
county receiving less than $5,000 annually for the resource development fund may elect to
deposit that amount in the county general revenue fund;

(b) From the funds remaining, within 30 days of receipt of the payment to the county,
the county treasurer shall pay each organized township 30 cents, as adjusted for inflation
under section 477A.145, for each acre of acquired natural resources landnew text begin, each acre of
land utilization project land located entirely within a wildlife management area,
new text end and each
acre of land described in section 477A.12, subdivision 1, paragraph (b), and 7.5 cents, as
adjusted for inflation under section 477A.145, for each acre of other natural resources land
and each acre of land utilization project land new text beginnot located within a wildlife management
area,
new text endlocated within its boundaries. Payments for natural resources lands not located in
an organized township shall be deposited in the county general revenue fund. Payments
to counties and townships pursuant to this paragraph shall be used to provide property
tax levy reduction, except that of the payments for natural resources lands not located in
an organized township, the county may allocate the amount determined to be necessary
for maintenance of roads in unorganized townships. Provided that, if the total payment
to the county pursuant to section 477A.12 is not sufficient to fully fund the distribution
provided for in this clause, the amount available shall be distributed to each township and
the county general revenue fund on a pro rata basis; and

(c) Any remaining funds shall be deposited in the county general revenue fund.
Provided that, if the distribution to the county general revenue fund exceeds $35,000, the
excess shall be used to provide property tax levy reduction.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for payments in 2008 and thereafter.
new text end

Sec. 10. new text beginUTILITY PROPERTY; TAX BASE ADJUSTMENTS FOR
CALCULATION OF SCHOOL DISTRICT AIDS AND LEVIES.
new text end

new text begin For purposes of calculating school levies and aids for fiscal years 2009, 2010, and
2011 only, the commissioner of revenue shall compute the adjusted net tax capacity and
referendum market value as if the tax base changes resulting from the amendments to
Minnesota Rules, chapter 8100, including the phase-in provisions of Minnesota Rules,
part 8100.0800, were effective one year earlier.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2009,
2010, and 2011.
new text end

Sec. 11. new text beginUTILITY PROPERTY; TAX BASE ADJUSTMENTS FOR
CALCULATION OF COUNTY AND CITY AIDS.
new text end

new text begin For purposes of calculating aid for cities under section 477A.013, and for counties
under section 477A.0124, for payment in 2008, 2009, and 2010 only, the commissioner
of revenue shall calculate the adjusted net tax capacity of cities and counties, as defined
in sections 477A.011 and 477A.0124, as if the tax base changes resulting from the
amendments to Minnesota Rules, chapter 8100, including the phase-in provisions of
Minnesota Rules, part 8100.0800, were effective one year earlier.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2008, 2009,
and 2010.
new text end

Sec. 12. new text beginMAHNOMEN COUNTY; COUNTY PROPERTY TAX
REIMBURSEMENT, CITY AND SCHOOL DISTRICT TAX BASE
ADJUSTMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Aid appropriation. new text end

new text begin $250,000 is appropriated in fiscal year 2009
from the general fund to the commissioner of revenue to make a payment in calendar year
2008 to the county of Mahnomen to compensate for the loss of property tax revenue due
to the pending placement of property, located in the city of Mahnomen, into trust status by
the United States Department of the Interior, Bureau of Indian Affairs.
new text end

new text begin Subd. 2. new text end

new text begin School district, county, and city tax base adjustments. new text end

new text begin (a) The
commissioner of revenue must reduce the referendum market value and adjusted net
tax capacity used to calculate school levies beginning with taxes payable in 2008 and
subsequent years for Independent School District No. 432, Mahnomen, by the amounts
attributable to the property that is pending placement into trust status by the United States
Department of the Interior, Bureau of Indian Affairs. This adjustment shall be made for
each assessment year that the property remains on the tax rolls.
new text end

new text begin (b) The commissioner of revenue must reduce the county and city net tax capacities
used to calculate aids under sections 477A.011 to 477A.03, beginning with aids payable in
2008 for the county of Mahnomen and the city of Mahnomen, by the amounts attributable
to property that is pending placement into trust status by the United States Department of
the Interior, Bureau of Indian Affairs. This adjustment shall be made for each assessment
year that the property remains on the tax rolls.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids and levies payable in 2008
and thereafter.
new text end

Sec. 13. new text beginSTUDY OF CITY LOCAL GOVERNMENT AID PROGRAM.
new text end

new text begin The commissioner of revenue shall work with representatives of all major city
organizations, representing at least 40 cities on this issue, to study the current local
government aid formula for cities, along with alternatives proposed by the various
interest groups, and provide a written report with recommendations to the legislature, in
compliance with Minnesota Statutes, sections 3.195 and 3.197, by February 1, 2008.
The study must list the alternatives considered and any recommended changes for
which consensus has been reached. If there is no consensus on proposed changes, the
commissioner shall report this. The commissioner shall allocate minimal staff time to the
study, but must provide staff to organize and chair any meetings of the study group and
provide modeling assistance for the final proposed changes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 3

PROPERTY TAXES

Section 1.

Minnesota Statutes 2006, section 97A.061, subdivision 2, is amended to
read:


Subd. 2.

Allocation.

(a) Except as provided in subdivision 3, the county treasurer
shall allocate the payment among the county, towns, and school districts on the same basis
as if the payments were taxes on the land received in the year. Payment of a town's or a
school district's allocation must be made by the county treasurer to the town or school
district within 30 days of receipt of the payment to the county. The county's share of the
payment shall be deposited in the county general revenue fund.

(b) The county treasurer of a county with a population over 39,000 but less than
42,000 in the 1950 federal census shall allocate the payment only among the towns and
school districts on the same basis as if the payments were taxes on the lands received
in the current year.

new text begin (c) If a town received a payment in calendar year 2006 or thereafter under this
subdivision, and subsequently incorporated as a city, the city will continue to receive any
future year's allocations that would have been made to the town had it not incorporated,
provided the city does not pass ordinances prohibiting hunting.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aid payments made in 2007
and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2006, section 127A.48, subdivision 3, is amended to read:


Subd. 3.

Agricultural lands.

For purposes of determining the adjusted net tax
capacity of agricultural lands for the calculation of adjusted net tax capacities, the market
value of agricultural lands must be the price for which the property would sell in an
arm's-length transaction.new text begin When agricultural land that is enrolled under section 273.111
is sold, and the purchaser changes its use in a manner that would result in a change of
classification of the property, the assessment/sales ratio study under this subdivision must
take into account that changed classification as soon as practicable. A change in status
from homestead to nonhomestead or from nonhomestead to homestead is not a change in
classification under this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the first study prepared following
the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision
to read:


new text begin Subd. 85. new text end

new text begin Modular homes used as models by dealers. new text end

new text begin (a) A modular home
is exempt if it:
new text end

new text begin (1) is owned by a modular home dealer and is located on land owned or leased
by that dealer;
new text end

new text begin (2) is a single-family model home;
new text end

new text begin (3) is not available for sale and is used exclusively as a model;
new text end

new text begin (4) is not permanently connected to any utilities except electricity; and
new text end

new text begin (5) is situated on a temporary foundation.
new text end

new text begin (b) The exemption under this subdivision is allowable for up to five assessment
years after the date it becomes located on the property, provided that the modular home
continues to meet all of the criteria under this subdivision each year. The owner of a
modular model home must notify the county assessor within 60 days that it has been
constructed or located on the property and must again notify the assessor if the modular
home ceases to meet any of the criteria. If more than one modular home is constructed or
situated on a property, the owner must notify the assessor within 60 days for each of the
models placed on the property.
new text end

new text begin (c) For purposes of this subdivision, a "modular home" means a building or
structural unit that has been in whole or substantial part manufactured or constructed at an
off-site location to be wholly or partially assembled on-site as a single family dwelling.
Construction of the modular home must comply with applicable standards adopted in
Minnesota Rules authorized under Minnesota Statutes, chapter 16B. A modular home does
not include a structure subject to the requirements of the National Manufactured Home
Construction and Safety Standards Act of 1974 or prefabricated buildings, as defined in
Minnesota Statutes, section 327.31, subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2007 and
thereafter, for taxes payable in 2008 and thereafter. The five-year assessment time period
begins with the 2007 assessment for a modular model home currently situated provided
it meets all of the criteria and the county assessor is notified within 90 days of the day
following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision
to read:


new text begin Subd. 86. new text end

new text begin Electric generation facility; personal property. new text end

new text begin (a) Notwithstanding
subdivision 9, clause (a), attached machinery and other personal property which is part of
a simple-cycle combustion-turbine electric generation facility that exceeds 150 megawatts
of installed capacity and that meets the requirements of this subdivision is exempt. At
the time of construction, the facility must:
new text end

new text begin (1) utilize natural gas as a primary fuel;
new text end

new text begin (2) be owned by an electric generation and transmission cooperative;
new text end

new text begin (3) be located within one mile of an existing 16-inch natural gas pipeline and a
69-kilovolt and a 230-kilovolt high-voltage electric transmission line;
new text end

new text begin (4) be designed to provide peaking, emergency backup, or contingency services;
new text end

new text begin (5) have received a certificate of need under section 216B.243 demonstrating
demand for its capacity; and
new text end

new text begin (6) have received by resolution the approval from the governing bodies of the county
and the city in which the proposed facility is to be located for the exemption of personal
property under this subdivision.
new text end

new text begin (b) Construction of the facility must be commenced after January 1, 2008, and
before January 1, 2012. Property eligible for this exemption does not include electric
transmission lines and interconnections or gas pipelines and interconnections appurtenant
to the property or the facility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2006, section 272.02, is amended by adding a subdivision
to read:


new text begin Subd. 87. new text end

new text begin Apprenticeship training facilities. new text end

new text begin Property used exclusively for a
state-approved apprenticeship program through the Department of Labor and Industry and
owned by a 501(c)(3) nonprofit corporation is exempt, provided the program participants
receive no compensation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2007 and
thereafter, for taxes payable in 2008 and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2006, section 272.115, subdivision 1, is amended to read:


Subdivision 1.

Requirement.

Except as otherwise provided in subdivision 5,
whenever any real estate is sold for a consideration in excess of $1,000, whether by
warranty deed, quitclaim deed, contract for deed or any other method of sale, the grantor,
grantee or the legal agent of either shall file a certificate of value with the county auditor
in the county in which the property is located when the deed or other document is
presented for recording. Contract for deeds are subject to recording under section 507.235,
subdivision 1
. Value shall, in the case of any deed not a gift, be the amount of the full
actual consideration thereof, paid or to be paid, including the amount of any lien or liens
assumed. The items and value of personal property transferred with the real property
must be listed and deducted from the sale price. The certificate of value shall include the
classification to which the property belongs for the purpose of determining the fair market
value of the propertynew text begin, and shall include any proposed change in use of the property known
to the person filing the certificate that could change the classification of the property
new text end. The
certificate shall include financing terms and conditions of the sale which are necessary
to determine the actual, present value of the sale price for purposes of the sales ratio
study. The commissioner of revenue shall promulgate administrative rules specifying the
financing terms and conditions which must be included on the certificate. Pursuant to the
authority of the commissioner of revenue in section 270C.306, the certificate of value
must include the Social Security number or the federal employer identification number
of the grantors and grantees. The identification numbers of the grantors and grantees are
private data on individuals or nonpublic data as defined in section 13.02, subdivisions 9
and 12
, but, notwithstanding that section, the private or nonpublic data may be disclosed to
the commissioner of revenue for purposes of tax administration. The information required
to be shown on the certificate of value is limited to the information required as of the date
of the acknowledgment on the deed or other document to be recorded.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the first assessment/sales ratio
study prepared following the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2006, section 273.11, subdivision 1a, is amended to read:


Subd. 1a.

Limited market value.

In the case of all property classified as
agricultural homestead or nonhomestead, residential homestead or nonhomestead, timber,
or noncommercial seasonal residential recreational, the assessor shall compare the value
with the taxable portion of the value determined in the preceding assessment.

For assessment years 2004deleted text begin, 2005, and 2006deleted text endnew text begin through 2008new text end, the amount of the increase
shall not exceed the greater of (1) 15 percent of the value in the preceding assessment,
or (2) 25 percent of the difference between the current assessment and the preceding
assessment.

For assessment year deleted text begin2007deleted text endnew text begin 2009new text end, the amount of the increase shall not exceed the
greater of (1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the
difference between the current assessment and the preceding assessment.

For assessment year deleted text begin2008deleted text endnew text begin 2010new text end, the amount of the increase shall not exceed the
greater of (1) 15 percent of the value in the preceding assessment, or (2) 50 percent of the
difference between the current assessment and the preceding assessment.

This limitation shall not apply to increases in value due to improvements. For
purposes of this subdivision, the term "assessment" means the value prior to any exclusion
under subdivision 16.

The provisions of this subdivision shall be in effect through assessment year deleted text begin2008deleted text end
new text begin 2010new text end as provided in this subdivision.

For purposes of the assessment/sales ratio study conducted under section 127A.48,
and the computation of state aids paid under chapters 122A, 123A, 123B, 124D, 125A,
126C, 127A, and 477A, market values and net tax capacities determined under this
subdivision and subdivision 16, shall be used.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2007 and
thereafter, for taxes payable in 2008 and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2006, section 273.11, is amended by adding a subdivision to
read:


new text begin Subd. 16a. new text end

new text begin Valuation exclusion for certain improvements. new text end

new text begin (a) Improvements to
homestead property made after January 2, 2008, shall be excluded from the value of the
property for assessment purposes provided that (1) the house is at least 50 years old at the
time of the improvement and (2) the assessor's estimated market value of the property on
January 2 of the current year does not exceed $400,000.
new text end

new text begin (b) The age of a residence is the number of years since the original year of its
construction. In the case of an owner-occupied duplex or triplex, the improvement is
eligible regardless of which portion of the property was improved.
new text end

new text begin (c) If the property lies in a jurisdiction that is subject to a building permit process, a
building permit must have been issued prior to commencement of the improvement.
The improvements for a single project or in any one year must add at least $15,000
market value to the property to be eligible for exclusion under this subdivision. Only
improvements to the structure which is the residence of the qualifying homesteader, or
construction of or improvements to no more than one two-car garage per residence,
qualify for the provisions of this subdivision. Whenever a building permit is issued for
property currently classified as homestead, the issuing jurisdiction shall notify the property
owner of the possibility of valuation exclusion under this subdivision. The assessor shall
require an application, including documentation of the age of the house from the owner,
if unknown by the assessor. The application may be filed subsequent to the date of the
building permit provided that the application must be filed within two years of the date the
building permit was issued for the improvement. If the property lies in a jurisdiction that
is not subject to a building permit process, the application must be filed within two years
of the date the improvement was made. The assessor may require proof from the taxpayer
of the date the improvement was made. Applications must be received prior to July 1 of
any year in order to be effective for taxes payable in the following year.
new text end

new text begin (d) In the case of a residence that is relocated, the relocation must be from a location
within the state and the only improvements eligible for exclusion under this subdivision
are (1) those for which building permits were issued to the homeowner after the residence
was relocated to its present site, and (2) those undertaken during or after the year the
residence is initially occupied by the homeowner, excluding any market value increase
relating to basic improvements that are necessary to install the residence on its foundation
and connect it to utilities at its present site.
new text end

new text begin (e) No exclusion for an improvement may be granted by a local board of review or
county board of equalization, and no abatement of the taxes for qualifying improvements
may be granted by the county board unless (1) a building permit was issued prior to the
commencement of the improvement if the jurisdiction requires a building permit, and
(2) an application was completed.
new text end

new text begin (f) The assessor shall note the qualifying value of each improvement on the
property's record, and the sum of those amounts must be subtracted from the value of the
property in each year for ten years after the improvement has been made. After ten years,
the amount of the qualifying value shall be added back as follows:
new text end

new text begin (1) 50 percent in the two subsequent assessment years if the qualifying value is equal
to or less than $20,000 market value; or
new text end

new text begin (2) 33-1/3 percent in the three subsequent assessment years if the qualifying value is
greater than $20,000 market value.
new text end

new text begin (g) If an application is filed after the first assessment date at which an improvement
could have been subject to the valuation exclusion under this subdivision, the ten-year
period during which the value is subject to exclusion is reduced by the number of years
that have elapsed since the property would have qualified initially. The valuation
exclusion terminates whenever (1) the property is sold, or (2) the property is reclassified to
a class that does not qualify for treatment under this subdivision. Improvements made by
an occupant who is the purchaser of the property under a conditional purchase contract
do not qualify under this subdivision unless the seller of the property is a governmental
entity. The qualifying value of the property must be computed based upon the increase
from that structure's market value as of January 2 preceding the acquisition of the property
by the governmental entity.
new text end

new text begin (h) The total qualifying value for a homestead may not exceed $75,000. The term
"qualifying value" means the increase in estimated market value resulting from the
improvement. The maximum qualifying value under this subdivision may result from no
more than two separate improvements to the homestead.
new text end

new text begin (i) If 50 percent or more of the square footage of a structure is voluntarily razed
or removed, the valuation increase attributable to any subsequent improvements to the
remaining structure does not qualify for the exclusion under this subdivision. If a structure
is unintentionally or accidentally destroyed by a natural disaster, the property is eligible
for an exclusion under this subdivision provided that the structure was not completely
destroyed. The qualifying value on property destroyed by a natural disaster must be
computed based upon the increase from that structure's market value as determined on
January 2 of the year in which the disaster occurred. A property receiving benefits under
the homestead disaster provisions under section 273.123 is not disqualified from receiving
an exclusion under this subdivision. If any combination of improvements made to a
structure after January 2, 2008, increase the size of the structure by 100 percent or more,
the valuation increase attributable to the portion of the improvement that causes the
structure's size to exceed 100 percent does not qualify for exclusion under this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for improvements made after January
2, 2008.
new text end

Sec. 9.

Minnesota Statutes 2006, section 273.111, is amended by adding a subdivision
to read:


new text begin Subd. 16. new text end

new text begin Applications; denied by county. new text end

new text begin For applications filed for the 2007 and
2008 assessment years, all applications for deferment of taxes and assessment under this
section that have been denied by the county shall be forwarded to the commissioner of
revenue by the county assessor within 30 days of denial. The assessor shall also provide
the commissioner with a list of any property owners that requested an application and
were denied, including names and addresses, and the reason for the denial. For the
purpose of monitoring compliance with this section, the commissioner shall compile a
report identifying all denied applications and requests for applications that were denied,
the reason for the denial, and any commissioner action or recommendation. A report must
be submitted to the chairs of the house and senate tax committees on or before February
1, 2008, and February 1, 2009, in compliance with Minnesota Statutes, sections 3.195
and 3.197.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

Minnesota Statutes 2006, section 273.123, subdivision 7, is amended to read:


Subd. 7.

Local option; other property.

The owner of homestead property
not qualifying for an adjustment in valuation pursuant to subdivisions 1 to 5 or of
nonhomestead property may receive a reduction in the amount of taxes payable on the
property for the year in which the destruction occurs and in the following year if:

(a) 50 percent or more of the homestead dwelling or other structure, as established
by the county assessor, isnew text begin:
new text end

new text begin (1)new text end unintentionally or accidentally destroyednew text begin, ornew text end

new text begin (2) destroyed by arson or vandalism, by someone other than the owner,
new text end

and the homestead is uninhabitable or the other structure is not usable;

(b) the owner of the property makes written application to the county assessor as
soon as practical after the damage has occurred; and

(c) the owner of the property makes written application to the county board.

The county board may grant a reduction in the amount of property tax which the
owner must pay on the qualifying property in the year of destruction and in the following
year. Any reduction in the amount of tax payable which is authorized by county board
action shall be calculated based upon the number of months that the home is uninhabitable
or the other structure is unusable. The amount of net tax due from the taxpayer shall be
multiplied by a fraction, the numerator of which is the number of months the dwelling
was occupied by that taxpayer, or the number of months the other structure was used by
the taxpayer, and the denominator of which is 12. For purposes of this subdivision, if a
structure is occupied or used for a fraction of a month, it is considered a month. "Net tax"
is defined as the amount of tax after the subtraction of all of the state paid property tax
credits. If application is made following payment of all property taxes due for the year of
destruction, the amount of the reduction granted by the county board shall be refunded to
the taxpayer by the county treasurer as soon as practical.

Any reductions or refunds approved by the county board shall not be subject to
approval by the commissioner of revenue.

The county board may levy in the following year the amount of tax dollars lost to the
county government as a result of the reductions granted pursuant to this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for destruction that occurs in calendar
year 2006 and thereafter.
new text end

Sec. 11.

Minnesota Statutes 2006, section 273.124, subdivision 1, is amended to read:


Subdivision 1.

General rule.

(a) Residential real estate that is occupied and used
for the purposes of a homestead by its owner, who must be a Minnesota resident, is
a residential homestead.

Agricultural land, as defined in section 273.13, subdivision 23, that is occupied and
used as a homestead by its owner, who must be a Minnesota resident, is an agricultural
homestead.

Dates for establishment of a homestead and homestead treatment provided to
particular types of property are as provided in this section.

Property held by a trustee under a trust is eligible for homestead classification if the
requirements under this chapter are satisfied.

The assessor shall require proof, as provided in subdivision 13, of the facts upon
which classification as a homestead may be determined. Notwithstanding any other law,
the assessor may at any time require a homestead application to be filed in order to verify
that any property classified as a homestead continues to be eligible for homestead status.
Notwithstanding any other law to the contrary, the Department of Revenue may, upon
request from an assessor, verify whether an individual who is requesting or receiving
homestead classification has filed a Minnesota income tax return as a resident for the most
recent taxable year for which the information is available.

When there is a name change or a transfer of homestead property, the assessor may
reclassify the property in the next assessment unless a homestead application is filed to
verify that the property continues to qualify for homestead classification.

(b) For purposes of this section, homestead property shall include property which
is used for purposes of the homestead but is separated from the homestead by a road,
street, lot, waterway, or other similar intervening property. The term "used for purposes
of the homestead" shall include but not be limited to uses for gardens, garages, or other
outbuildings commonly associated with a homestead, but shall not include vacant land
held primarily for future development. In order to receive homestead treatment for
the noncontiguous property, the owner must use the property for the purposes of the
homestead, and must apply to the assessor, both by the deadlines given in subdivision
9. After initial qualification for the homestead treatment, additional applications for
subsequent years are not required.

(c) Residential real estate that is occupied and used for purposes of a homestead by a
relative of the owner is a homestead but only to the extent of the homestead treatment
that would be provided if the related owner occupied the property. For purposes of this
paragraph and paragraph (g), "relative" means a parent, stepparent, child, stepchild,
grandparent, grandchild, brother, sister, uncle, aunt, nephew, or niece. This relationship
may be by blood or marriage. Property that has been classified as seasonal residential
recreational property at any time during which it has been owned by the current owner or
spouse of the current owner will not be reclassified as a homestead unless it is occupied as
a homestead by the owner; this prohibition also applies to property that, in the absence of
this paragraph, would have been classified as seasonal residential recreational property at
the time when the residence was constructed. Neither the related occupant nor the owner of
the property may claim a property tax refund under chapter 290A for a homestead occupied
by a relative. In the case of a residence located on agricultural land, only the house,
garage, and immediately surrounding one acre of land shall be classified as a homestead
under this paragraph, except as provided in paragraph (d). new text beginIn the case of nonagricultural
property, this paragraph only applies to applications approved before July 1, 2007.
new text end

(d) Agricultural property that is occupied and used for purposes of a homestead by
a relative of the owner, is a homestead, only to the extent of the homestead treatment
that would be provided if the related owner occupied the property, and only if all of the
following criteria are met:

(1) the relative who is occupying the agricultural property is a son, daughter,
grandson, granddaughter, father, or mother of the owner of the agricultural property or a
son, daughter, grandson, or granddaughter of the spouse of the owner of the agricultural
property;

(2) the owner of the agricultural property must be a Minnesota resident;

(3) the owner of the agricultural property must not receive homestead treatment on
any other agricultural property in Minnesota; and

(4) the owner of the agricultural property is limited to only one agricultural
homestead per family under this paragraph.

Neither the related occupant nor the owner of the property may claim a property
tax refund under chapter 290A for a homestead occupied by a relative qualifying under
this paragraph. For purposes of this paragraph, "agricultural property" means the house,
garage, other farm buildings and structures, and agricultural land.

Application must be made to the assessor by the owner of the agricultural property to
receive homestead benefits under this paragraph. The assessor may require the necessary
proof that the requirements under this paragraph have been met.

(e) In the case of property owned by a property owner who is married, the assessor
must not deny homestead treatment in whole or in part if only one of the spouses occupies
the property and the other spouse is absent due to: (1) marriage dissolution proceedings,
(2) legal separation, (3) employment or self-employment in another location, or (4) other
personal circumstances causing the spouses to live separately, not including an intent to
obtain two homestead classifications for property tax purposes. To qualify under clause
(3), the spouse's place of employment or self-employment must be at least 50 miles distant
from the other spouse's place of employment, and the homesteads must be at least 50 miles
distant from each other. Homestead treatment, in whole or in part, shall not be denied to
the owner's spouse who previously occupied the residence with the owner if the absence
of the owner is due to one of the exceptions provided in this paragraph.

(f) The assessor must not deny homestead treatment in whole or in part if:

(1) in the case of a property owner who is not married, the owner is absent due to
residence in a nursing home, boarding care facility, or an elderly assisted living facility
property as defined in section 273.13, subdivision 25a, and the property is not otherwise
occupied; or

(2) in the case of a property owner who is married, the owner or the owner's spouse
or both are absent due to residence in a nursing home, boarding care facility, or an elderly
assisted living facility property as defined in section 273.13, subdivision 25a, and the
property is not occupied or is occupied only by the owner's spouse.

(g) If an individual is purchasing property with the intent of claiming it as a
homestead and is required by the terms of the financing agreement to have a relative
shown on the deed as a co-owner, the assessor shall allow a full homestead classification.
This provision only applies to first-time purchasers, whether married or single, or to a
person who had previously been married and is purchasing as a single individual for the
first time. The application for homestead benefits must be on a form prescribed by the
commissioner and must contain the data necessary for the assessor to determine if full
homestead benefits are warranted.

(h) If residential or agricultural real estate is occupied and used for purposes of a
homestead by a child of a deceased owner and the property is subject to jurisdiction of
probate court, the child shall receive relative homestead classification under paragraph (c)
or (d) to the same extent they would be entitled to it if the owner was still living, until
the probate is completed. For purposes of this paragraph, "child" includes a relationship
by blood or by marriage.

(i) If a single-family home, duplex, or triplex classified as either residential
homestead or agricultural homestead is also used to provide licensed child care, the
portion of the property used for licensed child care must be classified as a part of the
homestead property.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2006, section 273.124, subdivision 14, is amended to read:


Subd. 14.

Agricultural homesteads; special provisions.

(a) Real estate of less than
ten acres that is the homestead of its owner must be classified as class 2a under section
273.13, subdivision 23, paragraph (a), if:

(1) the parcel on which the house is located is contiguous on at least two sides to (i)
agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
Service, or (iii) land administered by the Department of Natural Resources on which in
lieu taxes are paid under sections 477A.11 to 477A.14;

(2) its owner also owns a noncontiguous parcel of agricultural land that is at least
20 acres;

(3) the noncontiguous land is located not farther than four townships or cities, or a
combination of townships or cities from the homestead; and

(4) the agricultural use value of the noncontiguous land and farm buildings is equal
to at least 50 percent of the market value of the house, garage, and one acre of land.

Homesteads initially classified as class 2a under the provisions of this paragraph shall
remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
properties, as long as the homestead remains under the same ownership, the owner owns a
noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
value qualifies under clause (4). Homestead classification under this paragraph is limited
to property that qualified under this paragraph for the 1998 assessment.

(b)(i) Agricultural property deleted text beginconsisting of at least 40 acresdeleted text end shall be classified as the
owner's homestead, to the same extent as other agricultural homestead property, if all
of the following criteria are met:

new text begin (1) the property consists of at least 40 acres including undivided government lots
and correctional 40's, or at least 20 acres if used exclusively and intensively for raising
or cultivating agricultural products as defined under section 273.13, subdivision 23,
paragraph (e);
new text end

deleted text begin (1)deleted text end new text begin(2) new text endthe owner, the owner's spouse, the son or daughter of the owner or owner's
spouse, or the grandson or granddaughter of the owner or the owner's spouse, is actively
farming the agricultural property, either on the person's own behalf as an individual or
on behalf of a partnership operating a family farm, family farm corporation, joint family
farm venture, or limited liability company of which the person is a partner, shareholder, or
member;

deleted text begin (2)deleted text end new text begin(3) new text endboth the owner of the agricultural property and the person who is actively
farming the agricultural property under clause deleted text begin(1)deleted text endnew text begin (2)new text end, are Minnesota residents;

deleted text begin (3)deleted text end new text begin(4) new text endneither the owner nor the spouse of the owner claims another agricultural
homestead in Minnesota; and

deleted text begin (4)deleted text end deleted text beginneitherdeleted text end new text begin(5) new text endthe owner deleted text beginnordeleted text end new text beginand new text endthe person actively farming the property deleted text beginlives
farther than four townships or cities, or a combination of four townships or cities, from
the agricultural property
deleted text endnew text begin must live either in the county where the agricultural property is
located or in a county contiguous to the county where the agricultural property is located
new text end,
except that if the owner or the owner's spouse is required to live in employer-provided
housing, the owner or owner's spouse, whichever is actively farming the agricultural
property, may live deleted text beginmore than four townships or cities, or combination of four townships
or cities
deleted text end new text beginfurther new text endfrom the agricultural propertynew text begin than in the county or county contiguous
to the property
new text end.

The relationship under this paragraph may be either by blood or marriage.

(ii) Real property held by a trustee under a trust is eligible for agricultural homestead
classification under this paragraph if the qualifications in clause (i) are met, except that
"owner" means the grantor of the trust.

(iii) Property containing the residence of an owner who owns qualified property
under clause (i) shall be classified as part of the owner's agricultural homestead, if that
property is also used for noncommercial storage or drying of agricultural crops.

(c) Noncontiguous land shall be included as part of a homestead under section
273.13, subdivision 23, paragraph (a), only if the homestead is classified as class 2a
and the detached land is located in the same deleted text begintownship or city, or not farther than four
townships or cities or combination thereof from
deleted text end new text begincounty or in a county contiguous to new text endthe
homestead. Any taxpayer of these noncontiguous lands must notify the county assessor
that the noncontiguous land is part of the taxpayer's homestead, and, if the homestead is
located in another county, the taxpayer must also notify the assessor of the other county.

(d) Agricultural land used for purposes of a homestead and actively farmed by a
person holding a vested remainder interest in it must be classified as a homestead under
section 273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a,
any other dwellings on the land used for purposes of a homestead by persons holding
vested remainder interests who are actively engaged in farming the property, and up to
one acre of the land surrounding each homestead and reasonably necessary for the use of
the dwelling as a home, must also be assessed class 2a.

(e) Agricultural land and buildings that were class 2a homestead property under
section 273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain
classified as agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of the April 1997 floods;

(2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman,
or Wilkin;

(3) the agricultural land and buildings remain under the same ownership for the
current assessment year as existed for the 1997 assessment year and continue to be used
for agricultural purposes;

(4) the dwelling occupied by the owner is located in Minnesota and is within 30
miles of one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to the 1997
floods, and the owner furnishes the assessor any information deemed necessary by the
assessor in verifying the change in dwelling. Further notifications to the assessor are not
required if the property continues to meet all the requirements in this paragraph and any
dwellings on the agricultural land remain uninhabited.

(f) Agricultural land and buildings that were class 2a homestead property under
section 273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain
classified agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by a March 29, 1998, tornado;

(2) the property is located in the county of Blue Earth, Brown, Cottonwood,
LeSueur, Nicollet, Nobles, or Rice;

(3) the agricultural land and buildings remain under the same ownership for the
current assessment year as existed for the 1998 assessment year;

(4) the dwelling occupied by the owner is located in this state and is within 50 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to a March 29,
1998, tornado, and the owner furnishes the assessor any information deemed necessary by
the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the
owner must notify the assessor by December 1, 1998. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph
and any dwellings on the agricultural land remain uninhabited.

(g) Agricultural property deleted text beginconsisting of at least 40 acresdeleted text end of a family farm corporation,
joint family farm venture, family farm limited liability company, or partnership operating
a family farm as described under subdivision 8 shall be classified homestead, to the same
extent as other agricultural homestead property, if all of the following criteria are met:

new text begin (1) the property consists of at least 40 acres including undivided government lots
and correctional 40's, or at least 20 acres if used exclusively and intensively for raising
or cultivating agricultural products as defined under section 273.13, subdivision 23,
paragraph (e);
new text end

deleted text begin (1)deleted text end new text begin(2) new text enda shareholder, member, or partner of that entity is actively farming the
agricultural property;

deleted text begin (2)deleted text end new text begin(3) new text endthat shareholder, member, or partner who is actively farming the agricultural
property is a Minnesota resident;

deleted text begin (3)deleted text end new text begin(4) new text endneither that shareholder, member, or partner, nor the spouse of that
shareholder, member, or partner claims another agricultural homestead in Minnesota; and

deleted text begin (4)deleted text end new text begin(5) new text endthat shareholder, member, or partner deleted text begindoes not live farther than four townships
or cities, or a combination of four townships or cities, from the agricultural property
deleted text endnew text begin
lives in the county where the agricultural property is located or in a county contiguous to
the county where the property is located
new text end.

Homestead treatment applies under this paragraph for property leased to a family
farm corporation, joint farm venture, limited liability company, or partnership operating a
family farm if legal title to the property is in the name of an individual who is a member,
shareholder, or partner in the entity.

(h) To be eligible for the special agricultural homestead under this subdivision, an
initial full application must be submitted to the county assessor where the property is
located. Owners and the persons who are actively farming the property shall be required
to complete only a one-page abbreviated version of the application in each subsequent
year provided that none of the following items have changed since the initial application:

(1) the day-to-day operation, administration, and financial risks remain the same;

(2) the owners and the persons actively farming the property continue to live within
deleted text begin the four townships or city criteriadeleted text end new text beginthe county or a contiguous county new text endand are Minnesota
residents;

(3) the same operator of the agricultural property is listed with the Farm Service
Agency;

(4) a Schedule F or equivalent income tax form was filed for the most recent year;

(5) the property's acreage is unchanged; and

(6) none of the property's acres have been enrolled in a federal or state farm program
since the initial application.

The owners and any persons who are actively farming the property must include
the appropriate Social Security numbers, and sign and date the application. If any of the
specified information has changed since the full application was filed, the owner must
notify the assessor, and must complete a new application to determine if the property
continues to qualify for the special agricultural homestead. The commissioner of revenue
shall prepare a standard reapplication form for use by the assessors.

new text begin EFFECTIVE DATE. new text end

new text begin The portion of this section relating to the 40 acres requirement
is effective for assessment year 2007, taxes payable in 2008 and thereafter. The remaining
portion relating to contiguous counties is effective for assessment year 2008 and thereafter,
taxes payable in 2009 and thereafter.
new text end

Sec. 13.

Minnesota Statutes 2006, section 273.125, subdivision 8, is amended to read:


Subd. 8.

Manufactured homes; sectional structures.

(a) In this section,
"manufactured home" means a structure transportable in one or more sections, which is
built on a permanent chassis, and designed to be used as a dwelling with or without a
permanent foundation when connected to the required utilities, and contains the plumbing,
heating, air conditioning, and electrical systems in it. Manufactured home includes any
accessory structure that is an addition or supplement to the manufactured home and, when
installed, becomes a part of the manufactured home.

(b) Except as provided in paragraph (c), a manufactured home that meets each of the
following criteria must be valued and assessed as an improvement to real property, the
appropriate real property classification applies, and the valuation is subject to review and
the taxes payable in the manner provided for real property:

(1) the owner of the unit holds title to the land on which it is situated;

(2) the unit is affixed to the land by a permanent foundation or is installed at its
location in accordance with the Manufactured Home Building Code in sections 327.31
to 327.34, and rules adopted under those sections, or is affixed to the land like other real
property in the taxing district; and

(3) the unit is connected to public utilities, has a well and septic tank system, or is
serviced by water and sewer facilities comparable to other real property in the taxing
district.

(c) A manufactured home that meets each of the following criteria must be assessed
at the rate provided by the appropriate real property classification but must be treated as
personal property, and the valuation is subject to review and the taxes payable in the
manner provided in this section:

(1) the owner of the unit is a lessee of the land under the terms of a lease, or the unit
is located in a manufactured home park but is not the homestead of the park owner;

(2) the unit is affixed to the land by a permanent foundation or is installed at its
location in accordance with the Manufactured Home Building Code contained in sections
327.31 to 327.34, and the rules adopted under those sections, or is affixed to the land like
other real property in the taxing district; and

(3) the unit is connected to public utilities, has a well and septic tank system, or is
serviced by water and sewer facilities comparable to other real property in the taxing
district.

(d) Sectional structures must be valued and assessed as an improvement to real
property if the owner of the structure holds title to the land on which it is located or is a
qualifying lessee of the land under section 273.19. In this paragraph "sectional structure"
means a building or structural unit that has been in whole or substantial part manufactured
or constructed at an off-site location to be wholly or partially assembled on-site alone or
with other units and attached to a permanent foundation.

(e) The commissioner of revenue may adopt rules under the Administrative
Procedure Act to establish additional criteria for the classification of manufactured homes
and sectional structures under this subdivision.

(f) A storage shed, deck, or similar improvement constructed on property that is
leased or rented as a site for a manufactured home, sectional structure, park trailer, or
travel trailer is taxable as provided in this section. In the case of property that is leased or
rented as a site for a travel trailer, a storage shed, deck, or similar improvement on the
site that is considered personal property under this paragraph is taxable only if its total
estimated market value is over deleted text begin$500deleted text endnew text begin $1,000new text end. The property is taxable as personal property
to the lessee of the site if it is not owned by the owner of the site. The property is taxable
as real estate if it is owned by the owner of the site. As a condition of permitting the owner
of the manufactured home, sectional structure, park trailer, or travel trailer to construct
improvements on the leased or rented site, the owner of the site must obtain the permanent
home address of the lessee or user of the site. The site owner must provide the name
and address to the assessor upon request.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2007 and
thereafter, for taxes payable in 2008 and thereafter.
new text end

Sec. 14.

Minnesota Statutes 2006, section 273.128, subdivision 1, is amended to read:


Subdivision 1.

deleted text beginRequirementdeleted text endnew text begin Requirementsnew text end.

deleted text beginLow-income rental propertydeleted text endnew text begin In order
to be
new text end classified as class 4d new text beginlow-income rental housing new text endunder section 273.13, subdivision
25
, deleted text beginis entitled to valuation under this section ifdeleted text end new text beginthe property must meet the requirements of
subdivision 4, if applicable, and
new text endat least deleted text begin75deleted text end new text begin20 new text endpercent of the units in the rental housing
property new text beginmust new text endmeet any of the following qualifications:

(1) the units are subject to a housing assistance payments contract under Section 8
of the United States Housing Act of 1937, as amended;

(2) the units are rent-restricted and income-restricted units of a qualified low-income
housing project receiving tax credits under section 42(g) of the Internal Revenue Code of
1986, as amended;

(3) the units are financed by the Rural Housing Service of the United States
Department of Agriculture and receive payments under the rental assistance program
pursuant to section 521(a) of the Housing Act of 1949, as amended; or

(4) the units are subject to rent and income restrictions under the terms of financial
assistance provided to the rental housing property by the federal government or the
state of Minnesotanew text begin, or a local unit of government,new text end as evidenced by a document recorded
against the property.

The restrictions must require assisted units to be occupied by residents whose
household income at the time of initial occupancy does not exceed 60 percent of the
greater of area or state median income, adjusted for family size, as determined by the
United States Department of Housing and Urban Development. The restriction must also
require the rents for assisted units to not exceed 30 percent of 60 percent of the greater of
area or state median income, adjusted for family size, as determined by the United States
Department of Housing and Urban Development.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes levied in 2007,
payable in 2008, and thereafter.
new text end

Sec. 15.

Minnesota Statutes 2006, section 273.128, is amended by adding a subdivision
to read:


new text begin Subd. 4. new text end

new text begin Participation in crime-free multihousing program. new text end

new text begin (a) In addition
to the requirements in subdivision 1, if the property qualifies under paragraph (b), the
owners or managers must complete the three phases of the city's or county's crime-free
multihousing program and the qualifying property must be annually certified by the police
or sheriff as participating in the program. If a qualifying property is not certified within
one year after it is first determined to be a qualifying property under paragraph (b), or does
not annually maintain its certification in the program, the city or county shall notify the
property owner that the qualifying property must comply with the requirements of this
subdivision to maintain its classification as class 4d property. If a qualifying property is
not in compliance within one year after receiving the notice from the city or county, the
city or county shall issue a second notice and require the owners to enter into a plan to
achieve compliance within one year. If, upon expiration of the one-year time period,
the qualifying property has not been certified by the police or sheriff as completing the
program, the city or county shall notify the commissioner of the Housing Finance Agency
and the commissioner shall remove the property from the list of class 4d properties
certified to the county or city assessor under subdivision 3. Once removed from the list,
the property is not eligible for class 4d classification until it complies with this subdivision
and its compliance has been certified to the Housing Finance Agency by the city or county.
Certification to the Housing Finance Agency must be made by May 15 to be effective for
taxes payable in the following year.
new text end

new text begin (b) A property is a qualifying property for purposes of this subdivision's requirements
if it satisfies each of the following requirements:
new text end

new text begin (1) the property is located in a city or county that offers a crime-free multihousing
program through its city police or county sheriff;
new text end

new text begin (2) over the preceding three-year period, the number of police or sheriff calls to
the property exceeded the city's or county's average number of calls for multiunit rental
properties for the period by at least 25 percent, adjusted for the number of rental units;
new text end

new text begin (3) the police or sheriff department has requested, in writing, the owners or managers
of the property to enroll in the crime-free multihousing program and the owners or
managers refused or failed to enroll within 60 days after the request, or failed to complete
phases one and three within 90 days and all three phases of the program within a one-year
time period; and
new text end

new text begin (4) the governing body of the city or county, by resolution, determines the property
is a qualifying property under clauses (1) to (3).
new text end

new text begin (c) Calls for police or emergency assistance in response to domestic abuse or
medical assistance shall not be counted toward the number of calls in paragraph (b),
clause (2). For purposes of this subdivision, "domestic abuse" has the meaning given in
section 518B.01, subdivision 2.
new text end

new text begin (d) Low-income qualifying rental housing property classified as class 4d property
for taxes payable in 2007 must meet the requirements of this section by May 15, 2010.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes levied in 2007,
payable in 2008, and thereafter.
new text end

Sec. 16.

Minnesota Statutes 2006, section 273.13, subdivision 22, is amended to read:


Subd. 22.

Class 1.

(a) Except as provided in subdivision 23 and in paragraphs (b)
and (c), real estate which is residential and used for homestead purposes is class 1a. In the
case of a duplex or triplex in which one of the units is used for homestead purposes, the
entire property is deemed to be used for homestead purposes. The market value of class 1a
property must be determined based upon the value of the house, garage, and land.

The first $500,000 of market value of class 1a property has a net class rate of
one percent of its market value; and the market value of class 1a property that exceeds
$500,000 has a class rate of 1.25 percent of its market value.

(b) Class 1b property includes homestead real estate or homestead manufactured
homes used for the purposes of a homestead by

(1) any person who is blind as defined in section 256D.35, or the blind person and
the blind person's spouse; or

(2) deleted text beginany person, hereinafter referred to as "veteran," who:
deleted text end

deleted text begin (i) served in the active military or naval service of the United States; and
deleted text end

deleted text begin (ii) is entitled to compensation under the laws and regulations of the United States
for permanent and total service-connected disability due to the loss, or loss of use, by
reason of amputation, ankylosis, progressive muscular dystrophies, or paralysis, of both
lower extremities, such as to preclude motion without the aid of braces, crutches, canes, or
a wheelchair; and
deleted text end

deleted text begin (iii) has acquired a special housing unit with special fixtures or movable facilities
made necessary by the nature of the veteran's disability, or the surviving spouse of the
deceased veteran for as long as the surviving spouse retains the special housing unit
as a homestead; or
deleted text end

deleted text begin (3)deleted text end any person who is permanently and totally disabled.

Property is classified and assessed under clause (3) only if the government agency or
income-providing source certifies, upon the request of the homestead occupant, that the
homestead occupant satisfies the disability requirements of this paragraph.

Property is classified and assessed pursuant to clause (1) only if the commissioner of
revenue certifies to the assessor that the homestead occupant satisfies the requirements of
this paragraph.

Permanently and totally disabled for the purpose of this subdivision means a
condition which is permanent in nature and totally incapacitates the person from working
at an occupation which brings the person an income. The first deleted text begin$32,000deleted text endnew text begin $50,000new text end market
value of class 1b property has a net class rate of .45 percent of its market value. The
remaining market value of class 1b property has a class rate using the rates for class 1a or
class 2a property, whichever is appropriate, of similar market value.

(c) Class 1c property is commercial use real new text beginand personal new text endproperty that abuts
deleted text begin a lakeshore linedeleted text end new text beginpublic water as defined in section 103G.005, subdivision 15, new text endand is
devoted to temporary and seasonal residential occupancy for recreational purposes but
not devoted to commercial purposes for more than 250 days in the year preceding the
year of assessment, and that includes a portion used as a homestead by the owner, which
includes a dwelling occupied as a homestead by a shareholder of a corporation that owns
the resort, a partner in a partnership that owns the resort, or a member of a limited liability
company that owns the resort even if the title to the homestead is held by the corporation,
partnership, or limited liability company. For purposes of this clause, property is devoted
to a commercial purpose on a specific day if any portion of the property, excluding the
portion used exclusively as a homestead, is used for residential occupancy and a fee is
charged for residential occupancy. new text beginClass 1c property must contain three or more rental
units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room,
or individual camping site equipped with water and electrical hookups for recreational
vehicles. Class 1c property must provide recreational activities such as the rental of ice
fishing houses, boats and motors, snowmobiles, downhill or cross-country ski equipment;
provide marina services, launch services, or guide services; or sell bait and fishing tackle.
Any unit in which the right to use the property is transferred to an individual or entity
by deeded interest, or the sale of shares or stock, no longer qualifies for class 1c even
though it may remain available for rent. A camping pad offered for rent by a property
that otherwise qualifies for class 1c is also class 1c, regardless of the term of the rental
agreement, as long as the use of the camping pad does not exceed 250 days.
new text endThe portion of
the property used as a homestead is class 1a property under paragraph (a). The remainder
of the property is classified as follows: the first deleted text begin$500,000deleted text end new text begin$600,000 new text endof market value is tier
I, the next $1,700,000 of market value is tier II, and any remaining market value is tier
III. The class rates for class 1c are: tier I, deleted text begin0.55deleted text endnew text begin 0.50new text end percent; tier II, 1.0 percent; and tier
III, 1.25 percent. deleted text beginIf a class 1c resort property has any market value in tier III, the entire
property must meet the requirements of subdivision 25, paragraph (d), clause (1), to
qualify for class 1c treatment under this paragraph.
deleted text endnew text begin Owners of real and personal property
devoted to temporary and seasonal residential occupancy for recreation purposes in which
all or a portion of the property was devoted to commercial purposes for not more than 250
days in the year preceding the year of assessment desiring classification as class 1c, must
submit a declaration to the assessor designating the cabins or units occupied for 250 days
or less in the year preceding the year of assessment by January 15 of the assessment year.
Those cabins or units and a proportionate share of the land on which they are located must
be designated as class 1c as otherwise provided. The remainder of the cabins or units and
a proportionate share of the land on which they are located must be designated as class
3a commercial. The owner of property desiring designation as class 1c property must
provide guest registers or other records demonstrating that the units for which class 1c
designation is sought were not occupied for more than 250 days in the year preceding the
assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar,
(3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility
operated on a commercial basis not directly related to temporary and seasonal residential
occupancy for recreation purposes does not qualify for class 1c.
new text end

(d) Class 1d property includes structures that meet all of the following criteria:

(1) the structure is located on property that is classified as agricultural property under
section 273.13, subdivision 23;

(2) the structure is occupied exclusively by seasonal farm workers during the time
when they work on that farm, and the occupants are not charged rent for the privilege of
occupying the property, provided that use of the structure for storage of farm equipment
and produce does not disqualify the property from classification under this paragraph;

(3) the structure meets all applicable health and safety requirements for the
appropriate season; and

(4) the structure is not salable as residential property because it does not comply
with local ordinances relating to location in relation to streets or roads.

The market value of class 1d property has the same class rates as class 1a property
under paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin The portion of this section increasing the market value of
the first tier of class 1c resorts and striking the language relating to class 1b veterans'
homesteads is effective for taxes payable in 2008 and thereafter. The remaining portion of
this section relating to class 1c resorts is effective for taxes payable in 2009 and thereafter.
new text end

Sec. 17.

Minnesota Statutes 2006, section 273.13, subdivision 23, is amended to read:


Subd. 23.

Class 2.

(a) Class 2a property is agricultural land including any
improvements that is homesteaded. The market value of the house and garage and
immediately surrounding one acre of land has the same class rates as class 1a property
under subdivision 22. The value of the remaining land including improvements up to the
first tier valuation limit of agricultural homestead property has a net class rate of deleted text begin0.55deleted text endnew text begin 0.50new text end
percent of market value. The remaining property over the first tier has a class rate of one
percent of market value. For purposes of this subdivision, the "first tier valuation limit of
agricultural homestead property" and "first tier" means the limit certified under section
273.11, subdivision 23.

(b) Class 2b property is (1)new text begin unplattednew text end real estate, rural in character deleted text beginand used
exclusively for growing trees for timber, lumber, and wood and wood products; (2)
real estate
deleted text endnew text begin,new text end that is not improved with a structure deleted text beginand is used exclusively for growing
trees for timber, lumber, and wood and wood products, if the owner has participated or
is participating in a cost-sharing program for afforestation, reforestation, or timber stand
improvement on that particular property, administered or coordinated by the commissioner
of natural resources; (3)
deleted text endnew text begin, and that consists of at least ten acres, including land used for
growing trees for timber, lumber, and wood products, but not including land used for
agricultural purposes, provided that the presence of a structure, other than a minor,
ancillary nonresidential structure, does not disqualify property from the classification
under this clause; (2)
new text endreal estate that is nonhomestead agricultural land; or deleted text begin(4)deleted text endnew text begin (3)new text end a landing
area or public access area of a privately owned public use airport. Class 2b property has a
net class rate of one percent of market value.

(c) Agricultural land as used in this section means contiguous acreage of ten acres or
more, used during the preceding year for agricultural purposes. "Agricultural purposes" as
used in this section means the raising or cultivation of agricultural products. "Agricultural
purposes" also includes enrollment in the Reinvest in Minnesota program under sections
103F.501 to 103F.535 or the federal Conservation Reserve Program as contained in Public
Law 99-198 if the property was classified as agricultural (i) under this subdivision for
the assessment year 2002 or (ii) in the year prior to its enrollment. Contiguous acreage
on the same parcel, or contiguous acreage on an immediately adjacent parcel under the
same ownership, may also qualify as agricultural land, but only if it is pasture, timber,
waste, unusable wild land, or land included in state or federal farm programs. Agricultural
classification for property shall be determined excluding the house, garage, and
immediately surrounding one acre of land, and shall not be based upon the market value of
any residential structures on the parcel or contiguous parcels under the same ownership.

(d) Real estate, excluding the house, garage, and immediately surrounding one acre
of land, of less than ten acres which is exclusively and intensively used for raising or
cultivating agricultural products, shall be considered as agricultural land.

Land shall be classified as agricultural even if all or a portion of the agricultural use
of that property is the leasing to, or use by another person for agricultural purposes.

Classification under this subdivision is not determinative for qualifying under
section 273.111.

The property classification under this section supersedes, for property tax purposes
only, any locally administered agricultural policies or land use restrictions that define
minimum or maximum farm acreage.

(e) The term "agricultural products" as used in this subdivision includes production
for sale of:

(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing
animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains,
bees, and apiary products by the owner;

(2) fish bred for sale and consumption if the fish breeding occurs on land zoned
for agricultural use;

(3) the commercial boarding of horses if the boarding is done in conjunction with
raising or cultivating agricultural products as defined in clause (1);

(4) property which is owned and operated by nonprofit organizations used for
equestrian activities, excluding racing;

(5) game birds and waterfowl bred and raised for use on a shooting preserve licensed
under section 97A.115;

(6) insects primarily bred to be used as food for animals;

(7) trees, grown for sale as a crop, and not sold for timber, lumber, wood, or wood
products; and

(8) maple syrup taken from trees grown by a person licensed by the Minnesota
Department of Agriculture under chapter 28A as a food processor.

(f) If a parcel used for agricultural purposes is also used for commercial or industrial
purposes, including but not limited to:

(1) wholesale and retail sales;

(2) processing of raw agricultural products or other goods;

(3) warehousing or storage of processed goods; and

(4) office facilities for the support of the activities enumerated in clauses (1), (2),
and (3),

the assessor shall classify the part of the parcel used for agricultural purposes as class
1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its
use. The grading, sorting, and packaging of raw agricultural products for first sale is
considered an agricultural purpose. A greenhouse or other building where horticultural
or nursery products are grown that is also used for the conduct of retail sales must be
classified as agricultural if it is primarily used for the growing of horticultural or nursery
products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of
those products. Use of a greenhouse or building only for the display of already grown
horticultural or nursery products does not qualify as an agricultural purpose.

The assessor shall determine and list separately on the records the market value of
the homestead dwelling and the one acre of land on which that dwelling is located. If any
farm buildings or structures are located on this homesteaded acre of land, their market
value shall not be included in this separate determination.

(g) To qualify for classification under paragraph (b), clause deleted text begin(4)deleted text endnew text begin (3)new text end, a privately
owned public use airport must be licensed as a public airport under section 360.018. For
purposes of paragraph (b), clause deleted text begin(4)deleted text endnew text begin (3)new text end, "landing area" means that part of a privately
owned public use airport properly cleared, regularly maintained, and made available to the
public for use by aircraft and includes runways, taxiways, aprons, and sites upon which
are situated landing or navigational aids. A landing area also includes land underlying
both the primary surface and the approach surfaces that comply with all of the following:

(i) the land is properly cleared and regularly maintained for the primary purposes of
the landing, taking off, and taxiing of aircraft; but that portion of the land that contains
facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;

(ii) the land is part of the airport property; and

(iii) the land is not used for commercial or residential purposes.

The land contained in a landing area under paragraph (b), clause deleted text begin(4)deleted text endnew text begin (3)new text end, must be described
and certified by the commissioner of transportation. The certification is effective until
it is modified, or until the airport or landing area no longer meets the requirements of
paragraph (b), clause deleted text begin(4)deleted text endnew text begin (3)new text end. For purposes of paragraph (b), clause deleted text begin(4)deleted text endnew text begin (3)new text end, "public access
area" means property used as an aircraft parking ramp, apron, or storage hangar, or an
arrival and departure building in connection with the airport.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2007 and
thereafter, for taxes payable in 2008 and thereafter.
new text end

Sec. 18.

Minnesota Statutes 2006, section 273.13, subdivision 24, is amended to read:


Subd. 24.

Class 3.

(a) Commercial and industrial property and utility real and
personal property is class 3a.

(1) Except as otherwise provided, each parcel of commercial, industrial, or utility
real property has a class rate of 1.5 percent of the first tier of market value, and 2.0 percent
of the remaining market value. In the case of contiguous parcels of property owned by the
same person or entity, only the value equal to the first-tier value of the contiguous parcels
qualifies for the reduced class rate, except that contiguous parcels owned by the same
person or entity shall be eligible for the first-tier value class rate on each separate business
operated by the owner of the property, provided the business is housed in a separate
structure. For the purposes of this subdivision, the first tier means the first $150,000 of
market value. Real property owned in fee by a utility for transmission line right-of-way
shall be classified at the class rate for the higher tier.

For purposes of this subdivision, parcels are considered to be contiguous even if
they are separated from each other by a road, street, waterway, or other similar intervening
type of property. Connections between parcels that consist of power lines or pipelines do
not cause the parcels to be contiguous. Property owners who have contiguous parcels of
property that constitute separate businesses that may qualify for the first-tier class rate shall
notify the assessor by July 1, for treatment beginning in the following taxes payable year.

(2) deleted text beginAlldeleted text end Personal property that isdeleted text begin: (i)deleted text end part of an electric generationdeleted text begin, transmission, or
distribution
deleted text end systemdeleted text begin; or (ii)deleted text endnew text begin, including tools, implements, and machinery, has a class rate
of 3.0 percent.
new text end

new text begin (3) Personal property that is either: (i) new text endpart of a pipeline system transporting
or distributing water, gas, crude oil, or petroleum productsdeleted text begin; and (iii) not described in
clause (3), and all
deleted text endnew text begin, including tools, implements, and machinery, or (ii) part of an electric
transmission or distribution system, including tools, implements, and machinery, has a
class rate of 2.25 percent.
new text end

new text begin (4) new text endRailroad operating property has a class rate as provided under clause (1) for
the first tier of market value and the remaining market value. In the case of multiple
parcels in one county that are owned by one person or entity, only one first tier amount
is eligible for the reduced rate.

deleted text begin (3) The entire market value of personal property that is: (i) tools, implements, and
machinery of an electric generation, transmission, or distribution system; (ii) tools,
implements, and machinery of a pipeline system transporting or distributing water, gas,
crude oil, or petroleum products; or (iii) the
deleted text endnew text begin (5) Personal property consisting ofnew text end mains
and pipes used in the distribution of steam or hot or chilled water for heating or cooling
buildings, has a class rate as provided under clause (1) for the remaining market value
in excess of the first tier.

(b) Employment property defined in section 469.166, during the period provided
in section 469.170, shall constitute class 3b. The class rates for class 3b property are
determined under paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2007, payable
in 2008, and thereafter.
new text end

Sec. 19.

Minnesota Statutes 2006, section 273.13, subdivision 25, is amended to read:


Subd. 25.

Class 4.

(a) Class 4a is residential real estate containing four or more
units and used or held for use by the owner or by the tenants or lessees of the owner
as a residence for rental periods of 30 days or more, excluding property qualifying for
class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other
than hospitals exempt under section 272.02, and contiguous property used for hospital
purposes, without regard to whether the property has been platted or subdivided. The
market value of class 4a property has a class rate of 1.25 percent.

(b) Class 4b deleted text beginincludes:
deleted text end

deleted text begin (1) residential real estate containing less than four units that does not qualify as class
4bb, other than seasonal residential recreational property;
deleted text end

deleted text begin (2) manufactured homes not classified under any other provision;
deleted text end

deleted text begin (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead
farm classified under subdivision 23, paragraph (b) containing two or three units; and
deleted text end

deleted text begin (4)deleted text end new text beginis new text endunimproved property that is classified residential as determined under
subdivision 33.

The market value of class 4b property has a class rate of 1.25 percent.

(c) Class 4bb includes:

(1) nonhomestead residential real estate containing deleted text beginone unitdeleted text endnew text begin fewer than four unitsnew text end,
other than seasonal residential recreational property; deleted text beginand
deleted text end

(2) a deleted text beginsingle familydeleted text end dwelling, garage, and surrounding one acre of property on a
nonhomestead farm classified under subdivision 23, paragraph (b)new text begin, containing fewer
than four units; and
new text end

new text begin (3) manufactured homes not classified under any other provisionnew text end.

Class 4bb property has the same class rates as class 1a property under subdivision 22.

Property that has been classified as seasonal residential recreational property at
any time during which it has been owned by the current owner or spouse of the current
owner does not qualify for class 4bb.

(d) Class 4c property includes:

(1) except as provided in subdivision 22, paragraph (c), new text beginor subdivision 23, paragraph
(b), clause (1),
new text endreal new text beginand personal new text endproperty devoted to temporary and seasonal residential
occupancy for recreation purposes, including real new text beginand personal new text endproperty devoted to
temporary and seasonal residential occupancy for recreation purposes and not devoted to
commercial purposes for more than 250 days in the year preceding the year of assessment.
For purposes of this clause, property is devoted to a commercial purpose on a specific
day if any portion of the property is used for residential occupancy, and a fee is charged
for residential occupancy. new text beginClass 4c property must contain three or more rental units. A
"rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual
camping site equipped with water and electrical hookups for recreational vehicles. Class
4c property must provide recreational activities such as renting ice fishing houses, boats
and motors, snowmobiles, downhill or cross-country ski equipment; provide marina
services, launch services, or guide services; or sell bait and fishing tackle. A camping
pad offered for rent by a property that otherwise qualifies for class 4c is also class 4c
regardless of the term of the rental agreement, as long as the use of the camping pad
does not exceed 250 days.
new text endIn order for a property to be classified as class 4c, seasonal
residential recreational for commercial purposes, at least 40 percent of the annual gross
lodging receipts related to the property must be from business conducted during 90
consecutive days and either (i) at least 60 percent of all paid bookings by lodging guests
during the year must be for periods of at least two consecutive nights; or (ii) at least 20
percent of the annual gross receipts must be from charges for rental of fish houses, boats
and motors, snowmobiles, downhill or cross-country ski equipment, or charges for marina
services, launch services, and guide services, or the sale of bait and fishing tackle. For
purposes of this determination, a paid booking of five or more nights shall be counted as
two bookings. Class 4c also includes commercial use real property used exclusively
for recreational purposes in conjunction with class 4c property devoted to temporary
and seasonal residential occupancy for recreational purposes, up to a total of two acres,
provided the property is not devoted to commercial recreational use for more than 250
days in the year preceding the year of assessment and is located within two miles of the
class 4c property with which it is used. Owners of real new text beginand personal new text endproperty devoted to
temporary and seasonal residential occupancy for recreation purposes and all or a portion
of which was devoted to commercial purposes for not more than 250 days in the year
preceding the year of assessment desiring classification as class deleted text begin1c ordeleted text end 4c, must submit a
declaration to the assessor designating the cabins or units occupied for 250 days or less in
the year preceding the year of assessment by January 15 of the assessment year. Those
cabins or units and a proportionate share of the land on which they are located deleted text beginwilldeleted text end new text beginmust new text endbe
designated class deleted text begin1c ordeleted text end 4c as otherwise provided. The remainder of the cabins or units and
a proportionate share of the land on which they are located will be designated as class 3a.
The owner of property desiring designation as class deleted text begin1c ordeleted text end 4c property must provide guest
registers or other records demonstrating that the units for which class deleted text begin1c ordeleted text end 4c designation
is sought were not occupied for more than 250 days in the year preceding the assessment if
so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop,
new text begin (4) conference center or meeting room, new text endand deleted text begin(4)deleted text end new text begin(5) new text endother nonresidential facility operated
on a commercial basis not directly related to temporary and seasonal residential occupancy
for recreation purposes deleted text beginshalldeleted text end new text begindoes new text endnot qualify for class deleted text begin1c ordeleted text end 4c;

(2) qualified property used as a golf course if:

(i) it is open to the public on a daily fee basis. It may charge membership fees or
dues, but a membership fee may not be required in order to use the property for golfing,
and its green fees for golfing must be comparable to green fees typically charged by
municipal courses; and

(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).

A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
with the golf course is classified as class 3a property;

(3) real property up to a maximum of deleted text beginone acredeleted text end new text beginthree acres new text endof land owned new text beginand used
new text endby a nonprofit community service oriented organizationdeleted text begin; provided thatdeleted text end new text beginand that is not used
for residential purposes on either a temporary or permanent basis, qualifies for class 4c
provided that it meets either of the following:
new text end

new text begin (i) new text endthe property is not used for a revenue-producing activity for more than six days
in the calendar year preceding the year of assessment deleted text beginand the property is not used for
residential purposes on either a temporary or permanent basis
deleted text endnew text begin; or
new text end

new text begin (ii) the organization makes annual charitable contributions and donations at least
equal to the property's previous year's property taxes and the property is allowed to be
used for public and community meetings or events for no charge, as appropriate to the
size of the facility
new text end.

For purposes of this clause,

new text begin (A) "charitable contributions and donations" has the same meaning as lawful
gambling purposes under section 349.12, subdivision 25, excluding those purposes
relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;
new text end

new text begin (B) "property taxes" excludes the state general tax;
new text end

new text begin (C) new text enda "nonprofit community service oriented organization" means any corporation,
society, association, foundation, or institution organized and operated exclusively for
charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
federal income taxation pursuant to section 501(c)(3), (10), or (19) of the Internal Revenue
Code of 1986, as amended through December 31, 1990deleted text begin. For purposes of this clause,deleted text endnew text begin; and
new text end

new text begin (D)new text end "revenue-producing activities" shall include but not be limited to property or that
portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
insurance business, or office or other space leased or rented to a lessee who conducts a
for-profit enterprise on the premises.

new text beginnew text end Any portion of the property new text beginqualifying under item (i) new text endwhich is used for revenue-producing
activities for more than six days in the calendar year preceding the year of assessment
shall be assessed as class 3a. The use of the property for social events open exclusively
to members and their guests for periods of less than 24 hours, when an admission is
not charged nor any revenues are received by the organization shall not be considered a
revenue-producing activitydeleted text begin;deleted text endnew text begin.
new text end

new text begin The organization shall maintain records of its charitable contributions and donations
and of public meetings and events held on the property and make them available upon
request any time to the assessor to ensure eligibility. An organization meeting the
requirement under item (ii) must file an application by May 1 with the assessor for
eligibility for the current year's assessment. The commissioner shall prescribe a uniform
application form and instructions;
new text end

(4) postsecondary student housing of not more than one acre of land that is owned by
a nonprofit corporation organized under chapter 317A and is used exclusively by a student
cooperative, sorority, or fraternity for on-campus housing or housing located within two
miles of the border of a college campus;

(5) manufactured home parks as defined in section 327.14, subdivision 3;

(6) real property that is actively and exclusively devoted to indoor fitness, health,
social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
and is located within the metropolitan area as defined in section 473.121, subdivision 2;

(7) a leased or privately owned noncommercial aircraft storage hangar not exempt
under section 272.01, subdivision 2, and the land on which it is located, provided that:

(i) the land is on an airport owned or operated by a city, town, county, Metropolitan
Airports Commission, or group thereof; and

(ii) the land lease, or any ordinance or signed agreement restricting the use of the
leased premise, prohibits commercial activity performed at the hangar.

If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
be filed by the new owner with the assessor of the county where the property is located
within 60 days of the sale;

(8) a privately owned noncommercial aircraft storage hangar not exempt under
section 272.01, subdivision 2, and the land on which it is located, provided that:

(i) the land abuts a public airport; and

(ii) the owner of the aircraft storage hangar provides the assessor with a signed
agreement restricting the use of the premises, prohibiting commercial use or activity
performed at the hangar; and

(9) residential real estate, a portion of which is used by the owner for homestead
purposes, and that is also a place of lodging, if all of the following criteria are met:

(i) rooms are provided for rent to transient guests that generally stay for periods
of 14 or fewer days;

(ii) meals are provided to persons who rent rooms, the cost of which is incorporated
in the basic room rate;

(iii) meals are not provided to the general public except for special events on fewer
than seven days in the calendar year preceding the year of the assessment; and

(iv) the owner is the operator of the property.

The market value subject to the 4c classification under this clause is limited to five rental
units. Any rental units on the property in excess of five, must be valued and assessed as
class 3a. The portion of the property used for purposes of a homestead by the owner must
be classified as class 1a property under subdivision 22.

Class 4c property has a class rate of 1.5 percent of market value, except that (i) each
parcel of seasonal residential recreational property not used for commercial purposes has
the same class rates as class 4bb property, (ii) manufactured home parks assessed under
clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal
residential recreational property has a class rate of one percent for the first $500,000 of
market value, and 1.25 percent for the remaining market value, (iv) the market value of
property described in clause (4) has a class rate of one percent, (v) the market value of
property described in clauses (2) and (6) has a class rate of 1.25 percent, and (vi) that
portion of the market value of property in clause (9) qualifying for class 4c property
has a class rate of 1.25 percent.

(e) Class 4d property is qualifying low-income rental housing certified to the assessor
by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion
of the units in the building qualify as low-income rental housing units as certified under
section 273.128, subdivision 3, only the proportion of qualifying units to the total number
of units in the building qualify for class 4d. The remaining portion of the building shall be
classified by the assessor based upon its use. Class 4d also includes the same proportion of
land as the qualifying low-income rental housing units are to the total units in the building.
For all properties qualifying as class 4d, the market value determined by the assessor must
be based on the normal approach to value using normal unrestricted rents.

Class 4d property has a class rate of 0.75 percent.

new text begin EFFECTIVE DATE. new text end

new text begin The portion of this section relating to class 4c resorts in
paragraph (d), clause (1), is effective for assessment year 2008 and thereafter, for taxes
payable in 2009 and thereafter. The portion of this section relating to nonprofit community
service oriented organizations is effective for assessment year 2007 and thereafter, for
taxes payable in 2008 and thereafter, except that the application date in paragraph (d),
clause (3), item (ii), for the 2007 assessment is extended to September 1, 2007.
new text end

Sec. 20.

Minnesota Statutes 2006, section 273.13, subdivision 33, is amended to read:


Subd. 33.

Classification of unimproved property.

(a) All real property that is not
improved with a structure must be classified according to its current use.

(b) new text beginExcept as provided in subdivision 23, paragraph (b), clause (1), new text endreal property that
is not improved with a structure and for which there is no identifiable current use must be
classified according to its highest and best use permitted under the local zoning ordinance.
If the ordinance permits more than one use, the land must be classified according to the
highest and best use permitted under the ordinance. If no such ordinance exists, the
assessor shall consider the most likely potential use of the unimproved land based upon
the use made of surrounding land or land in proximity to the unimproved land.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2007 and
thereafter, for taxes payable in 2008 and thereafter.
new text end

Sec. 21.

Minnesota Statutes 2006, section 273.13, is amended by adding a subdivision
to read:


new text begin Subd. 34. new text end

new text begin Homestead of disabled veteran. new text end

new text begin (a) All or a portion of the market value
of property qualifying for homestead classification under subdivision 22 or 23 is excluded
in determining the property's taxable market value if it serves as the homestead of a
military veteran, as defined in section 197.447, who has a service-connected disability of
50 percent or more. To qualify for exclusion under this subdivision, the veteran must have
been honorably discharged from the United States armed forces, as indicated by United
States Government Form DD214 or other official military discharge papers, and must be
certified by the United States Veterans Administration as having a service-connected
disability.
new text end

new text begin (b)(1) For a disability rating of at least 50 percent but less than 70 percent, $100,000
of market value is excluded;
new text end

new text begin (2) for a disability rating of 70 percent or more, $150,000 of market value is
excluded, except as provided in clause (3); and
new text end

new text begin (3) for a total (100 percent) and permanent disability, $300,000 of market value is
excluded.
new text end

new text begin (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b),
clause (3), predeceases the veteran's spouse, and if upon the death of the veteran the
spouse holds the legal or beneficial title to the homestead and permanently resides there,
the exclusion shall carry over to the benefit of the veteran's spouse until such time as the
spouse sells, transfers, or otherwise disposes of the property.
new text end

new text begin (d) In the case of an agricultural homestead, only the portion of the property
consisting of the house and garage and immediately surrounding one acre of land qualifies
for the valuation exclusion under this subdivision.
new text end

new text begin (e) A property qualifying for a valuation exclusion under this subdivision is not
eligible for the credit under section 273.1384, subdivision 1.
new text end

new text begin (f) To qualify for a valuation exclusion under this subdivision a property owner must
apply to the assessor by July 1 of each assessment year, except that an annual reapplication
is not required once a property has been accepted for a valuation exclusion under paragraph
(b), clause (3), and the property continues to qualify until there is a change in ownership.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for assessment year 2007 and
thereafter, for taxes payable in 2008 and thereafter.
new text end

Sec. 22.

Minnesota Statutes 2006, section 275.065, is amended by adding a subdivision
to read:


new text begin Subd. 3b. new text end

new text begin Supplemental notice of proposed levy increases. new text end

new text begin (a) If a city that has
a population of more than 2,500 or a county proposes a levy increase greater than the
threshold increase calculated under paragraph (b), it shall prepare and deliver by first class
mail a supplemental proposed property tax notice to each property taxpayer in the taxing
jurisdiction, as described in this subdivision.
new text end

new text begin (b) The threshold increase in the proposed property tax levy is equal to the levy in
the previous year, multiplied by the sum of (1) one percent, (2) the percentage growth,
if any, in the population in the taxing jurisdiction for the most recent available year, (3)
the percentage increase in the total market value in the taxing jurisdiction due to new
construction of commercial and industrial property, and (4) the percentage increase in the
implicit price deflator for government consumption expenditures and gross investment for
state and local governments as prepared by the United States Department of Commerce
for the most recent 12-month period ending March of the levy year.
new text end

new text begin (c) The supplemental proposed notice must show the taxing jurisdiction's (1) levy for
the previous year, (2) its threshold levy increase indicating that this increase is calculated
to reflect reasonable growth adjusting for population increases, increased demand from
new business, and inflation, (3) the proposed property tax increase, and (4) the amount the
proposed increase exceeds the threshold increase. The notice must contain a description of
why the jurisdiction needs to raise property taxes above the threshold amount and how the
taxing jurisdiction plans to spend the additional revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in calendar year
2007 and thereafter.
new text end

Sec. 23.

Minnesota Statutes 2006, section 275.065, is amended by adding a subdivision
to read:


new text begin Subd. 6c. new text end

new text begin Joint public hearing; nonmetropolitan county, cities, and school
districts.
new text end

new text begin (a) Notwithstanding any other provision of law, the county board may hold a
joint hearing with the governing bodies of all taxing authorities located wholly or partially
within the county that are required to hold a public hearing under this section, excluding
special taxing districts. The primary purpose of the joint hearing is for taxpayer efficiency
by allowing taxpayers to come to a single public hearing to discuss the budgets and
proposed property tax levies of most taxing authorities that impact the taxes on their
property.
new text end

new text begin (b) This subdivision applies only to counties located outside the metropolitan area
as defined under section 473.121, subdivision 2. If a city or school district is located
partially within the metropolitan area, that taxing jurisdiction may participate in its
nonmetropolitan county's joint hearing, if it so chooses.
new text end

new text begin (c) Upon the adoption of a resolution by the county board to hold a joint public
hearing, the county shall notify each city with a population over 500 and each school
district located wholly or partially within the county of its intention to hold the joint
hearing and ask each of the taxing authorities if it would like to participate. Participation
is voluntary, and participation in the joint hearing is in lieu of the requirement for the
governing body to hold a separate public hearing under subdivision 6. If a participating
city or school district is located in more than one county, the hearing under this subdivision
is in lieu of the requirement to hold a separate public hearing if 75 percent or more
of that city or school district's previous year's net tax capacity is in the county where
the hearing is held.
new text end

new text begin (d) The initial joint hearing must be held on the first Thursday in December. The
county may hold an additional joint hearing on another date before December 20 if the
majority of the participating taxing authorities want an additional hearing.
new text end

new text begin The county board shall obtain a meeting space to hold the joint hearing, preferably
at a public building such as the courthouse, school, or community center. The location
shall be as centrally located within the county as possible. The meeting shall generally be
structured in the following general manner:
new text end

new text begin (1) 30 to 60 minutes must be devoted to discussion of the county's budget and levy;
new text end

new text begin (2) 30 to 60 minutes must be devoted to discussion of the city's budget and levy,
with each city's discussion held in a separate room, preferably in the same building;
new text end

new text begin (3) 30 to 60 minutes must be devoted to discussion of the school district's levy,
with each school district's discussion held in a separate room, preferably in the same
building; and
new text end

new text begin (4) during the last 30 minutes the governing bodies must reassemble in a joint
meeting to entertain any follow-up questions that have arisen from the separate discussions.
new text end

new text begin The county shall attempt to keep the total public hearing to within three hours.
new text end

new text begin (e) In lieu of the public advertisement requirement in subdivision 5a, the county shall
have a single advertisement listing the county, each city with a population of over 500, and
each school district participating in the joint public hearing listing. Any taxing authority
participating under this subdivision is exempt from the separate public advertisement
requirement under subdivision 5a. The cost of the joint hearing advertisement shall be
apportioned in the same manner provided in subdivision 4. The notice must be published
not less than two business days nor more than six business days before the hearing. The
newspaper selected must be one of general interest and readership in the county, and not
one of limited subject matter. The advertisement must appear in a newspaper that is
published at least once per week. The advertisement must be in the following form:
new text end

new text begin "NOTICE OF JOINT PUBLIC HEARING
new text end

new text begin PROPOSED TOTAL PROPERTY TAXES
new text end

new text begin FOR PARTICIPATING TAXING AUTHORITIES
new text end

new text begin The property tax amounts below compare that portion of the current budget levied in
property taxes in the county, cities, and school districts for (year) with the property
taxes the county, cities, and school districts propose to collect in (year) for those taxing
authorities participating in the joint public hearing.
new text end

new text begin Taxing Authority
new text end
new text begin (Year) Property
Taxes
new text end
new text begin Proposed (Year)
Property Taxes
new text end
new text begin Change (Year) -
(Year)
new text end
new text begin $.......
new text end
new text begin $.......
new text end
new text begin $.......
new text end
new text begin ...%
new text end
new text begin $.......
new text end
new text begin $.......
new text end
new text begin $.......
new text end
new text begin ...%
new text end
new text begin $.......
new text end
new text begin $.......
new text end
new text begin $.......
new text end
new text begin ...%
new text end

new text begin ATTEND THE JOINT PUBLIC HEARING
new text end

new text begin All residents are invited to attend the joint public hearing of the county/cities/school
districts to express your opinions on the proposed amount of (year) property taxes. The
hearing will be held on:
new text end

new text begin (Month/Day/Year/Time)
new text end

new text begin (Location/Address)
new text end

new text begin If the discussion cannot be completed, and another hearing is scheduled, a time and place
for that hearing will be announced at this hearing. You are also invited to send your
written comments to the county auditor. If the comments relate to the city or school
district's levy, please identify that on the envelope so the county auditor can direct the
correspondence to the right jurisdiction."
new text end

new text begin The formal adoption of the taxing authority's levy must not be made at the joint
public hearing held under this subdivision. The formal adoption must be made at one of
the regularly scheduled meetings of the taxing authority's governing body. However, the
property tax levy amount that is subsequently adopted cannot exceed the amount shown to
taxpayers at the joint public hearing.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for hearings held in 2007 and
thereafter.
new text end

Sec. 24.

Minnesota Statutes 2006, section 278.05, subdivision 6, is amended to read:


Subd. 6.

Dismissal of petition; exclusion of certain evidence.

(a) new text beginIn cases where
the petitioner contests the valuation of income-producing property,
new text endinformation, including
income and expense figuresnew text begin in the form of (1) year-end financial statements for the
year prior to the assessment date, (2) year-end financial statements for the year of the
assessment date, and (3) rent rolls on the assessment date including tenant name, lease start
and end dates, option terms, base rent, square footage leased and vacant space
new text end, verified net
rentable areasnew text begin in the form of net rentable square footage of the building or buildingsnew text end, and
anticipated income and expensesnew text begin in the form of proposed budgets for the year subsequent
to the year of the assessment date
new text end, deleted text beginfor income-producing propertydeleted text end must be provided to
the county assessor no later than 60 days after the applicable filing deadline contained
in section 278.01, subdivision 1 or 4. Failure to provide the information required in this
paragraph shall result in the dismissal of the petition, unless (1) the failure to provide it was
due to the unavailability of the evidence at the time that the information was due, or (2)
the petitioner was not aware of or informed of the requirement to provide the information.

If the petitioner proves that the requirements under clause (2) are met, the petitioner has
an additional 30 days to provide the information from the time the petitioner became
aware of or was informed of the requirement to provide the information, otherwise the
petition shall be dismissed.

(b) Provided that the information as contained in paragraph (a) is timely submitted to
the county assessor, the county assessor shall furnish the petitioner at least five days before
the hearing under this chapter with the property's appraisal, if any, which will be presented
to the court at the hearing. The petitioner shall furnish to the county assessor at least five
days before the hearing under this chapter with the property's appraisal, if any, which
will be presented to the court at the hearing. An appraisal of the petitioner's property
done by or for the county shall not be admissible as evidence if the county assessor does
not comply with the provisions in this paragraph. The petition shall be dismissed if the
petitioner does not comply with the provisions in this paragraph.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for petitions filed on or after July
1, 2007.
new text end

Sec. 25.

Minnesota Statutes 2006, section 279.01, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Homestead property; monthly payment option. new text end

new text begin (a) In the case of class
1, 1c, or 2a homestead property as defined in section 273.13, a homeowner may apply
to make payments in eight equal monthly installments on the 15th day of each month
from May through December. A homeowner desiring to utilize this option must apply
to the county by April 15 of the year that the taxes are payable, following procedures
established by the county.
new text end

new text begin (b) Each county must establish procedures allowing homeowners the option of
paying the current year's property taxes on a monthly basis. The procedures must address
how homeowners apply to participate in the program, how taxpayers can make payments,
including the possibility of automatic bank withdrawals, how and whether the taxpayer is
notified of each payment due date, whether to require annual applications, how to modify
the property tax settlement process, and any other procedures the county board deems
necessary to implement this subdivision. The proposed procedures must be submitted to
the commissioner of revenue by November 1, 2007. The commissioner must review the
procedures and approve them or notify the county of changes that must be made to the
proposed procedures by January 1, 2008.
new text end

new text begin (c) The application procedure must be included in the property tax statement mailing.
new text end

new text begin (d) Penalties on unpaid taxes on property under the monthly payment program
must be computed by equating the number of days that any of the monthly payments are
overdue to the penalty for the corresponding number of days after May 15 that a payment
is overdue under subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008 and
thereafter.
new text end

Sec. 26.

Minnesota Statutes 2006, section 279.37, subdivision 1a, is amended to read:


Subd. 1a.

Class 3a property.

(a) The delinquent taxes upon a parcel of property
which was classified class 3a, for the previous year's assessment and had a total market
value of deleted text begin$200,000deleted text end new text begin$500,000 new text endor less for that same assessment shall be eligible to be
composed into a confession of judgment. Property qualifying under this subdivision
shall be subject to the same provisions as provided in this section except as provided
in paragraphs (b) to (d).

(b) Current year taxes and penalty due at the time the confession of judgment
is entered must be paid.

(c) The down payment must include all special assessments due in the current tax
year, all delinquent special assessments, and 20 percent of the ad valorem tax, penalties,
and interest accrued against the parcel. The balance remaining is payable in four equal
annual installments.

(d) The amounts entered in judgment bear interest at the rate provided in section
279.03, subdivision 1a, commencing with the date the judgment is entered. The interest
rate is subject to change each year on the unpaid balance in the manner provided in section
279.03, subdivision 1a.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for confessions of judgment entered
into July 1, 2007, and thereafter.
new text end

Sec. 27.

Minnesota Statutes 2006, section 280.39, is amended to read:


280.39 DELINQUENT TAXES MAY BE PAID IN INVERSE ORDER.

In any case where taxes for two or more years are delinquent against a parcel of land,
such taxes for one or more deleted text beginentiredeleted text end years, if held by the state, may be paid in the inverse
order to that in which the taxes were levied, with accrued penalties, interest, and costs
upon the taxes so paid, without payment of the taxes for the first of such years; provided,
that such payment shall not affect the lien of any unpaid taxes or tax judgment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 28.

Minnesota Statutes 2006, section 289A.08, subdivision 13, is amended to read:


Subd. 13.

Long and short forms; local use tax instructionsnew text begin; property tax refund
information
new text end.

new text begin(a) new text endThe commissioner shall provide a long form individual income tax
return and may provide a short form individual income tax return. The returns shall be in
a form that is consistent with the provisions of chapter 290, notwithstanding any other
law to the contrary. The nongame wildlife checkoff provided in section 290.431 and the
dependent care credit provided in section 290.067 must be included on the short form.

new text begin (b) new text endThe commissioner must provide information on local use taxes in the individual
income tax instruction booklet. The commissioner must provide this information in the
same section of the booklet that provides information on the state use tax.

new text begin (c) The commissioner must refer to the property tax refunds allowed under chapter
290A on the front cover of the individual income tax instruction booklet, as well as
information within the booklet on income eligibility for the homestead and renter refunds,
and maximum refund amounts allowed in the current year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 29.

Minnesota Statutes 2006, section 289A.40, subdivision 4, is amended to read:


Subd. 4.

Property tax refund claims.

A property tax refund claim under chapter
290A is not allowed if the initial claim is filed more than new text begin(1) new text endone year after the original
due date for filing the claimnew text begin for refunds under section 290A.04, subdivision 2h; or (2) two
years after the original due date for filing the claim for refunds under section 290A.04,
subdivisions 2, 2a, and 2k
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2006
and thereafter and rent paid in 2005 and thereafter.
new text end

Sec. 30.

Minnesota Statutes 2006, section 290B.03, subdivision 1, is amended to read:


Subdivision 1.

Program qualifications.

The qualifications for the senior citizens'
property tax deferral program are as follows:

(1) the property must be owned and occupied as a homestead by a person 65 years of
age or older. In the case of a married couple, deleted text beginbothdeleted text end new text beginonly one new text endof the spouses must be at least
65 years old at the time the first property tax deferral is granted, regardless of whether the
property is titled in the name of one spouse or both spouses, or titled in another way that
permits the property to have homestead status;

(2) the total household income of the qualifying deleted text beginhomeownersdeleted text endnew text begin homeowner, or in the
case of a married couple, the qualifying homeowner and spouse
new text end, as defined in section
290A.03, subdivision 5, for the calendar year preceding the year of the initial application
may not exceed deleted text begin$60,000deleted text endnew text begin $75,000new text end;

(3) the homestead must have been owned and occupied as the homestead of at
least one of the deleted text beginqualifyingdeleted text end homeowners for at least 15 years prior to the year the initial
application is filed;

(4) there are no state or federal tax liens or judgment liens on the homesteaded
property;

(5) there are no mortgages or other liens on the property that secure future advances,
except for those subject to credit limits that result in compliance with clause (6); and

(6) the total unpaid balances of debts secured by mortgages and other liens on the
property, including unpaid and delinquent special assessments and interest and any
delinquent property taxes, penalties, and interest, but not including property taxes payable
during the year, does not exceed 75 percent of the assessor's estimated market value for
the year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications filed on or after
July 1, 2007.
new text end

Sec. 31.

Minnesota Statutes 2006, section 290B.03, subdivision 2, is amended to read:


Subd. 2.

Qualifying homestead; defined.

Qualifying homestead property is defined
as the dwelling occupied as the homeowner's principal residence and so much of the land
surrounding it as is reasonably necessary for use of the dwelling as a home and any other
property used for purposes of a homestead as defined in section 273.13, subdivisions
22 and 23
, but not to exceed one acre. The homestead may be part of a multidwelling
building and the land on which it is built.new text begin Property is not qualifying homestead property if
a person or entity other than the applicant or the applicant's spouse holds an interest in the
property as the vendor under a contract for deed or as a remainderperson.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications submitted on or
after January 1, 2007.
new text end

Sec. 32.

Minnesota Statutes 2006, section 290B.04, subdivision 3, is amended to read:


Subd. 3.

Excess-income certification by taxpayer.

A taxpayer whose initial
application has been approved under subdivision 2 shall notify the commissioner of
revenue in writing by July 1 if the taxpayer's household income for the preceding calendar
year exceeded deleted text begin$60,000deleted text endnew text begin $75,000new text end. The certification must state the homeowner's total
household income for the previous calendar year. No property taxes may be deferred
under this chapter in any year following the year in which a program participant filed or
should have filed an excess-income certification under this subdivisionnew text begin showing income in
excess of the maximum allowed
new text end, unless the participant has filed a resumption of eligibility
certification as described in subdivision 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications filed on or after
July 1, 2007.
new text end

Sec. 33.

Minnesota Statutes 2006, section 290B.04, subdivision 4, is amended to read:


Subd. 4.

Resumption of eligibility certification by taxpayer.

A taxpayer who has
previously filed an excess-income certification under subdivision 3 may resume program
participation if the taxpayer's household income for a subsequent year is deleted text begin$60,000deleted text endnew text begin $75,000new text end
or less. If the taxpayer chooses to resume program participation, the taxpayer must notify
the commissioner of revenue in writing by July 1 of the year following a calendar year in
which the taxpayer's household income is deleted text begin$60,000deleted text endnew text begin $75,000new text end or less. The certification must
state the taxpayer's total household income for the previous calendar year. Once a taxpayer
resumes participation in the program under this subdivision, participation will continue
until the taxpayer files a subsequent excess-income certification under subdivision 3 or
until participation is terminated under section 290B.08, subdivision 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications filed on or after
July 1, 2007.
new text end

Sec. 34.

Minnesota Statutes 2006, section 290B.05, subdivision 1, is amended to read:


Subdivision 1.

Determination by commissioner.

The commissioner shall
determine each qualifying homeowner's "annual maximum property tax amount"
following approval of the homeowner's initial application and following the receipt of a
resumption of eligibility certification. The "annual maximum property tax amount" equals
three percent of the homeowner's total household income for the year preceding either the
initial application or the resumption of eligibility certification, whichever is applicable.
Following approval of the initial application, the commissioner shall determine the
qualifying homeowner's "maximum allowable deferral." No tax may be deferred relative
to the appropriate assessment year for any homeowner whose total household income
for the previous year exceeds deleted text begin$60,000deleted text endnew text begin $75,000new text end. No tax shall be deferred in any year in
which the homeowner does not meet the program qualifications in section 290B.03. The
maximum allowable total deferral is equal to 75 percent of the assessor's estimated market
value for the year, less the balance of any mortgage loans and other amounts secured by
liens against the property at the time of application, including any unpaid and delinquent
special assessments and interest and any delinquent property taxes, penalties, and interest,
but not including property taxes payable during the year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications received on or after
July 1, 2007.
new text end

Sec. 35.

Minnesota Statutes 2006, section 290B.07, is amended to read:


290B.07 LIEN; DEFERRED PORTION.

(a) Payment by the state to the county treasurer of property taxes, penalties, interest,
or special assessments and interest deferred under this chapter is deemed a loan from the
state to the program participant. The commissioner must deleted text begincompute the interest as provided
in section 270C.40, subdivision 5, but not to exceed five percent, and
deleted text end maintain records of
the total deferred amount and interest for each participant. Interest shall accrue beginning
September 1 of the payable year for which the taxes are deferrednew text begin, provided that no interest
shall be charged on (1) deferred property tax amounts on applications filed on or after
July 1, 2007, or (2) deferred property taxes beginning with taxes payable in 2008 on
applications filed prior to July 1, 2007
new text end. Any deferral made under this chapter shall not
be construed as delinquent property taxes.

The lien created under section 272.31 continues to secure payment by the taxpayer,
or by the taxpayer's successors or assigns, of the amount deferred, including interest, with
respect to all years for which amounts are deferred. The lien for deferred taxes and interest
has the same priority as any other lien under section 272.31, except that liens, including
mortgages, recorded or filed prior to the recording or filing of the notice under section
290B.04, subdivision 2, have priority over the lien for deferred taxes and interest. A
seller's interest in a contract for deed, in which a qualifying homeowner is the purchaser
or an assignee of the purchaser, has priority over deferred taxes and interest on deferred
taxes, regardless of whether the contract for deed is recorded or filed. The lien for deferred
taxes and interest for future years has the same priority as the lien for deferred taxes and
interest for the first year, which is always higher in priority than any mortgages or other
liens filed, recorded, or created after the notice recorded or filed under section 290B.04,
subdivision 2
. The county treasurer or auditor shall maintain records of the deferred
portion and shall list the amount of deferred taxes for the year and the cumulative deferral
and interest for all previous years as a lien against the property. In any certification of
unpaid taxes for a tax parcel, the county auditor shall clearly distinguish between taxes
payable in the current year, deferred taxes and interest, and delinquent taxes. Payment
of the deferred portion becomes due and owing at the time specified in section 290B.08.
Upon receipt of the payment, the commissioner shall issue a receipt for it to the person
making the payment upon request and shall notify the auditor of the county in which the
parcel is located, within ten days, identifying the parcel to which the payment applies.
Upon receipt by the commissioner of revenue of collected funds in the amount of the
deferral, the state's loan to the program participant is deemed paid in full.

(b) If property for which taxes have been deferred under this chapter forfeits
under chapter 281 for nonpayment of a nondeferred property tax amount, or because
of nonpayment of amounts previously deferred following a termination under section
290B.08, the lien for the taxes deferred under this chapter, plus interest and costs, shall be
canceled by the county auditor as provided in section 282.07. However, notwithstanding
any other law to the contrary, any proceeds from a subsequent sale of the property under
chapter 282 or another law, must be used to first reimburse the county's forfeited tax sale
fund for any direct costs of selling the property or any costs directly related to preparing
the property for sale, and then to reimburse the state for the amount of the canceled lien.
Within 90 days of the receipt of any sale proceed to which the state is entitled under these
provisions, the county auditor must pay those funds to the commissioner of revenue by
warrant for deposit in the general fund. No other deposit, use, distribution, or release of
gross sale proceeds or receipts may be made by the county until payments sufficient
to fully reimburse the state for the canceled lien amount have been transmitted to the
commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 36.

Minnesota Statutes 2006, section 290C.07, is amended to read:


290C.07 CALCULATION OF INCENTIVE PAYMENT.

An approved claimant under the sustainable forest incentive program is eligible to
receive an annual payment. The payment shall equal the greater of:

(1) the difference between the property tax that would be paid on the land using the
previous year's statewide average total township tax rate and the class rate for class 2b
timberland under section 273.13, subdivision 23, paragraph (b), if the land were valued
at (i) the average statewide timberland market value per acre calculated under section
290C.06, and (ii) the average statewide timberland current use value per acre calculated
under section 290C.02, subdivision 5;

(2) two-thirds of the property tax amount determined by using the previous year's
statewide average total township tax rate, the estimated market value per acre as calculated
in section 290C.06, and the class rate for 2b timberland under section 273.13, subdivision
23
, paragraph (b); or

(3) deleted text begin$1.50deleted text end new text begin$5 new text endper acre for each acre enrolled in the sustainable forest incentive
program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for payments made in 2008 and
thereafter.
new text end

Sec. 37.

new text begin [290D.01] CITATION.
new text end

new text begin This program shall be named the "seasonal recreational property tax deferral
program."
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 38.

new text begin [290D.02] TERMS.
new text end

new text begin Subdivision 1. new text end

new text begin Terms. new text end

new text begin For purposes of sections 290D.01 to 290D.08, the terms
defined in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Primary property owner. new text end

new text begin "Primary property owner" means a person who
(1) has been the owner, or one of the owners, of the eligible property for at least 15 years
prior to the year the application is filed under section 290D.04; and (2) applies for the
deferral of property taxes under section 290D.04.
new text end

new text begin Subd. 3. new text end

new text begin Secondary property owner. new text end

new text begin "Secondary property owner" means any
person, other than the primary property owner, who has been an owner of the eligible
property for at least 15 years prior to the year the initial application is filed for deferral
of property taxes under section 290D.04.
new text end

new text begin Subd. 4. new text end

new text begin Eligible property. new text end

new text begin "Eligible property" means a parcel of property or
contiguous parcels of property under the same ownership classified as noncommercial
seasonal residential recreational 4c(1) property under section 273.13, subdivision 25.
new text end

new text begin Subd. 5. new text end

new text begin Base property tax amount. new text end

new text begin "Base property tax amount" means the total
property taxes levied by all taxing jurisdictions, including special assessments, on the
eligible property in the year prior to the year that the initial application is approved under
section 290D.04 and payable in the year of the application.
new text end

new text begin Subd. 6. new text end

new text begin Special assessments. new text end

new text begin "Special assessments" means any assessment, fee, or
other charge that may be made by law, and that appears on the property tax statement for
the property for collection under the laws applicable to the enforcement of real estate taxes.
new text end

new text begin Subd. 7. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications filed July 1, 2008,
and thereafter.
new text end

Sec. 39.

new text begin [290D.03] QUALIFICATIONS FOR DEFERRAL.
new text end

new text begin In order for an eligible property to qualify for treatment under this program:
new text end

new text begin (1) the eligible property must have been owned solely by the primary property owner,
or jointly with others, for at least 15 years prior to the year the initial application is filed;
new text end

new text begin (2) there must be no state or federal tax liens or judgment liens on the eligible
property;
new text end

new text begin (3) there must be no mortgages or other liens on the eligible property that secure
future advances, except for those subject to credit limits that result in compliance with
clause (4); and
new text end

new text begin (4) the total unpaid balances of debts secured by mortgages and other liens on the
eligible property, including unpaid and delinquent special assessments and interest and
any delinquent property taxes, penalties, and interest, but not including property taxes
payable during the year, must not exceed 60 percent of the assessor's estimated market
value for the current assessment year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications filed July 1, 2008,
and thereafter.
new text end

Sec. 40.

new text begin [290D.04] APPLICATION FOR DEFERRAL.
new text end

new text begin Subdivision 1. new text end

new text begin Initial application. new text end

new text begin (a) A primary owner of a property meeting
the qualifications under section 290D.03 may apply to the commissioner for deferral
of taxes on the eligible property. Applications are due on or before July 1 for deferral
of any taxes payable in the following year. The application, which must be prescribed
by the commissioner, shall include the following items and any other information the
commissioner deems necessary:
new text end

new text begin (1) the name, address, and Social Security number of the primary property owner
and secondary property owners, if any;
new text end

new text begin (2) a copy of the property tax statement for the current taxes payable year for the
eligible property;
new text end

new text begin (3) the initial year of ownership of the primary property owner and any second
property owners of the eligible property;
new text end

new text begin (4) information on any mortgage loans or other amounts secured by mortgages or
other liens against the eligible property, for which purpose the commissioner may require
the applicant to provide a copy of the mortgage note, the mortgage, or a statement of the
balance owing on the mortgage loan provided by the mortgage holder. The commissioner
may require the appropriate documents in connection with obtaining and confirming
information on unpaid amounts secured by other liens; and
new text end

new text begin (5) the signatures of the primary property owner and all other owners, if any, stating
that each owner agrees to enroll the eligible property in the program to defer property
taxes under this chapter.
new text end

new text begin The application must state that program participation is voluntary. The application
must also state that program participation includes authorization for the annual deferred
amount. The deferred property tax calculated by the county and the cumulative deferred
property tax amount is public data.
new text end

new text begin (b) As part of the initial application process, if the property is abstract property, the
commissioner may require the applicant to obtain at the applicant's cost a report prepared
by a licensed abstracter showing the last deed and any unsatisfied mortgages, liens,
judgments, and state and federal tax lien notices which were recorded on or after the date
of that last deed with respect to the eligible property or to the applicant.
new text end

new text begin The certificate or report need not include references to any documents filed or
recorded more than 40 years prior to the date of the certification or report. The certification
or report must be as of a date not more than 30 days prior to submission of the application
under this section.
new text end

new text begin The commissioner may also require the county recorder or county registrar of the
county where the eligible property is located to provide copies of recorded documents
related to the applicant of the eligible property, for which the recorder or registrar shall
not charge a fee. The commissioner may use any information available to determine or
verify eligibility under this section.
new text end

new text begin Subd. 2. new text end

new text begin Approval; recording. new text end

new text begin The commissioner shall approve all initial
applications that qualify under this chapter and shall notify the primary property owner on
or before December 1. The commissioner may investigate the facts or require confirmation
in regard to an application. The commissioner shall record or file a notice of qualification
for deferral, including the names of the primary and any secondary property owners and a
legal description of the eligible property, in the office of the county recorder, or registrar of
titles, whichever is applicable, in the county where the eligible property is located. The
notice must state that it serves as a notice of lien and that it includes deferrals under this
section for future years. The primary property owner shall pay the recording or filing fees
for the notice, which, notwithstanding section 357.18, shall be paid by that owner at the
time of satisfaction of the lien.
new text end

new text begin Subd. 3. new text end

new text begin Penalty for failure; investigations. new text end

new text begin (a) The commissioner shall assess
a penalty equal to 20 percent of the property taxes improperly deferred in the case of a
false application. The commissioner shall assess a penalty equal to 50 percent of the
property taxes improperly deferred if the taxpayer knowingly filed a false application. The
commissioner shall assess penalties under this section through the issuance of an order
under the provisions of chapter 270C. Persons affected by a commissioner's order issued
under this section may appeal as provided in chapter 270C.
new text end

new text begin (b) The commissioner may conduct investigations related to initial applications
required under this chapter within the period ending 3-1/2 years from the due date of
the application.
new text end

new text begin Subd. 4. new text end

new text begin Annual certification to commissioner. new text end

new text begin Annually on or before July 1,
the primary property owner must certify to the commissioner that the person continues
to qualify as a primary property owner. If the primary owner has died or has transferred
the property in the preceding year, a certification may be filed by the primary owner's
spouse, or by one of the secondary owners, provided that the person is currently an
owner of the property. In this case, the primary owner's spouse or the secondary owner
shall be considered the primary owner from that point forward. If neither the primary
owner, the primary owner's spouse, or a secondary owner is eligible to file the required
annual certification for the property, the property's participation in the program shall be
terminated, and the procedures in section 290D.07 apply.
new text end

new text begin Subd. 5. new text end

new text begin Annual notice to primary property owner. new text end

new text begin Annually, on or before
September 1, the commissioner shall notify each primary property owner, in writing, of
the total cumulative deferred taxes and accrued interest on the qualifying property as of
that date.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications filed July 1, 2008,
and thereafter.
new text end

Sec. 41.

new text begin [290D.05] DEFERRED PROPERTY TAX AMOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Calculation of deferred property tax amount. new text end

new text begin Each year after
the county auditor has determined the final property tax rates under section 275.08, the
"deferred property tax amount" must be calculated on each eligible property. The deferred
property tax amount is equal to 50 percent of the amount of the difference between (1) the
total amount of property taxes and special assessments levied upon the eligible property
for the current year by all taxing jurisdictions and (2) the eligible property's base property
tax amount. Any tax attributable to new improvements made to the eligible property after
the initial application has been approved under section 290D.04, subdivision 2, must be
excluded in determining the deferred property tax amount. The eligible property's total
current year's tax less the deferred property tax amount for the current year must be listed
on the property tax statement and is the amount due to the county under chapter 276.
Reference that the property is enrolled in the seasonal recreational property tax deferral
program under this chapter and a state lien has been recorded must be clearly printed on
the statement.
new text end

new text begin Subd. 2. new text end

new text begin Certification to commissioner. new text end

new text begin The county auditor shall annually, on or
before April 15, certify to the commissioner the property tax deferral amounts determined
under this section for each eligible property in the county. The commissioner shall
prescribe the information that is necessary to identify the eligible properties.
new text end

new text begin Subd. 3. new text end

new text begin Limitation on total amount of deferred taxes. new text end

new text begin The total amount of
deferred taxes and interest on a property, when added to (1) the balance owed on any
mortgages on the property at the time of initial application; (2) other amounts secured by
liens on the property at the time of the initial application; and (3) any unpaid and delinquent
special assessments and interest and any delinquent property taxes, penalties, and interest,
but not including property taxes payable during the year, must not exceed 60 percent of
the assessor's estimated market value of the property for the current assessment year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications filed July 1, 2008,
and thereafter.
new text end

Sec. 42.

new text begin [290D.06] LIEN; DEFERRED PORTION.
new text end

new text begin (a) Payment by the state to the county treasurer of property taxes, penalties, interest,
or special assessments and interest, deferred under this chapter is deemed a loan from the
state to the program participant. The commissioner shall compute the interest as provided
in section 270C.40, subdivision 5, but not to exceed two percent over the maximum
interest rate provided in section 290B.07, paragraph (a), and maintain records of the total
deferred amount and interest for each participant. Interest accrues beginning September 1
of the payable year for which the taxes are deferred. Any deferral made under this chapter
must not be construed as delinquent property taxes.
new text end

new text begin The lien created under section 272.31 continues to secure payment by the taxpayer,
or by the taxpayer's successors or assigns, of the amount deferred, including interest, with
respect to all years for which amounts are deferred. The lien for deferred taxes and interest
has the same priority as any other lien under section 272.31, except that liens, including
mortgages, recorded or filed prior to the recording or filing of the notice under section
290D.04, subdivision 2, have priority over the lien for deferred taxes and interest. A
seller's interest in a contract for deed, in which a qualifying owner is the purchaser or an
assignee of the purchaser, has priority over deferred taxes and interest on deferred taxes,
regardless of whether the contract for deed is recorded or filed. The lien for deferred taxes
and interest for future years has the same priority as the lien for deferred taxes and interest
for the first year, which is always higher in priority than any mortgages or other liens filed,
recorded, or created after the notice recorded or filed under section 290D.04, subdivision
2
. The county treasurer or auditor shall maintain records of the deferred portion and shall
list the amount of deferred taxes for the year and the cumulative deferral and interest for
all previous years as a lien against the eligible property. In any certification of unpaid
taxes for a tax parcel, the county auditor shall clearly distinguish between taxes payable in
the current year, deferred taxes and interest, and delinquent taxes. Payment of the deferred
portion becomes due and owing at the time specified in section 290D.07. Upon receipt of
the payment, the commissioner shall issue a receipt to the person making the payment
upon request and shall notify the auditor of the county in which the parcel is located,
within ten days, identifying the parcel to which the payment applies. Upon receipt by the
commissioner of collected funds in the amount of the deferral, the state's loan to the
program participant is deemed paid in full.
new text end

new text begin (b) If eligible property for which taxes have been deferred under this chapter forfeits
under chapter 281 for nonpayment of a nondeferred property tax amount, or because
of nonpayment of amounts previously deferred following a termination under section
290D.07, the lien for the taxes deferred under this chapter, plus interest and costs, shall be
canceled by the county auditor as provided in section 282.07. However, notwithstanding
any other law to the contrary, any proceeds from a subsequent sale of the eligible property
under chapter 282 or another law, must be used to first reimburse the county's forfeited
tax sale fund for any direct costs of selling the eligible property or any costs directly
related to preparing the eligible property for sale, and then to reimburse the state for
the amount of the canceled lien. Within 90 days of the receipt of any sale proceeds to
which the state is entitled under these provisions, the county auditor must pay those funds
to the commissioner by warrant for deposit in the general fund. No other deposit, use,
distribution, or release of gross sale proceeds or receipts may be made by the county until
payments sufficient to fully reimburse the state for the canceled lien amount have been
transmitted to the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications filed July 1, 2008,
and thereafter.
new text end

Sec. 43.

new text begin [290D.07] TERMINATION OF DEFERRAL; PAYMENT OF
DEFERRED TAXES.
new text end

new text begin Subdivision 1. new text end

new text begin Termination. new text end

new text begin (a) The deferral of taxes granted under this chapter
terminates when one of the following occurs:
new text end

new text begin (1) the eligible property is sold or transferred to someone other than the primary
owner's spouse or a secondary owner;
new text end

new text begin (2) the death of the primary owner, or in the case of a married couple, after the
death of both spouses, provided that there is not a secondary owner eligible to become
the primary owner;
new text end

new text begin (3) the primary property owner notifies the commissioner, in writing, that all owners,
including any secondary property owners, desire to discontinue the deferral; or
new text end

new text begin (4) the eligible property no longer qualifies under section 290D.03.
new text end

new text begin (b) An eligible property is not terminated from the program because no deferred
property tax amount is determined for any given year after the eligible property's initial
enrollment into the program.
new text end

new text begin (c) An eligible property is not terminated from the program if the eligible property
subsequently becomes the homestead of one or more of the property owners and the
property and the owners qualify for, and are immediately enrolled in, the senior deferral
program under chapter 290B.
new text end

new text begin Subd. 2. new text end

new text begin Payment upon termination. new text end

new text begin Upon the termination of the deferral under
subdivision 1, the amount of deferred taxes, penalties, interest, and special assessments
and interest, plus the recording or filing fees under this subdivision and section 290D.04,
subdivision 2
, becomes due and payable to the commissioner within 90 days of termination
of the deferral for terminations under subdivision 1, paragraph (a), clauses (1) and (2),
and within one year of termination of the deferral for terminations under subdivision 1,
paragraph (a), clauses (3) and (4). No additional interest is due on the deferral if timely
paid. On receipt of payment, the commissioner shall, within ten days, notify the auditor
of the county in which the parcel is located, identifying the parcel to which the payment
applies and shall remit the recording or filing fees under this subdivision and section
290D.04, subdivision 2, to the auditor. A notice of termination of deferral, containing the
legal description and the recording or filing data for the notice of qualification for deferral
under section 290D.04, subdivision 2, shall be prepared and recorded or filed by the
county auditor in the same office in which the notice of qualification for deferral under
section 290D.04, subdivision 2, was recorded or filed, and the county auditor shall mail a
copy of the notice of termination to the property owner. The property owner shall pay the
recording or filing fees. Upon recording or filing of the notice of termination of deferral,
the notice of qualification for deferral under section 290D.04, subdivision 2, and the lien
created by it are discharged. If the deferral is not timely paid, the penalty, interest, lien,
forfeiture, and other rules for the collection of ad valorem property taxes apply.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications filed July 1, 2008,
and thereafter.
new text end

Sec. 44.

new text begin [290D.08] STATE REIMBURSEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Determination; payment. new text end

new text begin The county auditor shall determine the
total current year's deferred amount of property tax under this chapter in the county, and
submit those amounts as part of the abstracts of tax lists submitted by the county auditors
under section 275.29. The commissioner may make changes in the abstracts of tax lists as
deemed necessary. The commissioner, after such review, shall pay the deferred amount of
property tax to each county treasurer on or before August 31.
new text end

new text begin The county treasurer shall distribute as part of the October settlement the funds
received as if they had been collected as part of the property tax.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the total amount of property
tax determined under subdivision 1, plus any amounts paid under section 290D.04,
subdivision 4
, is annually appropriated from the general fund to the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications filed July 1, 2008,
and thereafter.
new text end

Sec. 45.

Minnesota Statutes 2006, section 298.75, is amended by adding a subdivision
to read:


new text begin Subd. 11. new text end

new text begin Tax may be imposed; Otter Tail County. new text end

new text begin (a) If Otter Tail County
does not impose a tax under this section and approves imposition of the tax under this
subdivision, the town of Scambler in Otter Tail County may impose the aggregate
materials tax under this section.
new text end

new text begin (b) For purposes of exercising the powers contained in this section, the "town" is
deemed to be the "county."
new text end

new text begin (c) All provisions in this section apply to the town of Scambler, except that in lieu of
the tax proceeds under subdivision 7, all proceeds of the tax must be retained by the town.
new text end

new text begin (d) If Otter Tail County imposes an aggregate materials tax under this section, the
tax imposed by the town of Scambler under this subdivision is repealed on the effective
date of the Otter Tail County tax.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body
of the town of Scambler and its chief clerical officer comply with section 645.021,
subdivisions 2 and 3.
new text end

Sec. 46.

Minnesota Statutes 2006, section 435.193, is amended to read:


435.193 HARDSHIP ASSESSMENT DEFERRAL FOR SENIORS deleted text beginORdeleted text endnew text begin,new text end
DISABLEDnew text begin, OR MILITARY PERSONSnew text end.

new text begin (a) new text endNotwithstanding the provisions of any law to the contrary, any county, statutory
or home rule charter city, or town, making a special assessment may, at its discretion, defer
the payment of that assessment for any homestead propertynew text begin:
new text end

new text begin (1)new text end owned by a person 65 years of age or older or retired by virtue of a permanent
and total disability for whom it would be a hardship to make the paymentsnew text begin; or
new text end

new text begin (2) owned by a person who is a member of the Minnesota National Guard or other
military reserves who is ordered into active military service, as defined in section 190.05,
subdivision 5b or 5c, as stated in the person's military orders, for whom it would be a
hardship to make the payments
new text end.

new text begin (b)new text end Any county, statutory or home rule charter city, or town electing to defer
special assessments shall adopt an ordinance or resolution establishing standards and
guidelines for determining the existence of a hardship and for determining the existence of
a disability, but nothing herein shall be construed to prohibit the determination of hardship
on the basis of exceptional and unusual circumstances not covered by the standards and
guidelines where the determination is made in a nondiscriminatory manner and does not
give the applicant an unreasonable preference or advantage over other applicants.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
and applies to any special assessment for which payment is due on or after that date.
new text end

Sec. 47.

Minnesota Statutes 2006, section 469.1813, subdivision 1a, is amended to
read:


Subd. 1a.

Use of term.

new text begin(a) new text endAs used in this section and sections 469.1814 and
469.1815, "abatement" includes a deferral of taxes with abatement of interest and penalties
unless the context indicates otherwise. new text beginThe abatement may include delinquent taxes,
interest, and penalties.
new text end

new text begin (b) Computation of duration limits under this section must include each taxes
payable year for which delinquent taxes are abated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for abatements granted after
December 31, 2006.
new text end

Sec. 48.

Minnesota Statutes 2006, section 473F.01, subdivision 2, is amended to read:


Subd. 2.

Use of proceeds.

deleted text beginExcept as provided in section 473F.08, subdivision 3a,deleted text end
The proceeds from the areawide tax imposed under this chapter must be used by a local
governmental unit in the same manner and for the same purposes as the proceeds from
other ad valorem taxes levied by the local governmental unit.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008 and
thereafter.
new text end

Sec. 49.

Minnesota Statutes 2006, section 473F.08, subdivision 5, is amended to read:


Subd. 5.

Areawide tax rate.

On or before August 25 of each year, the county auditor
shall certify to the administrative auditor that portion of the levy of each governmental
unit determined under subdivisions 3, clause (a), deleted text begin3a,deleted text end and 3b. The administrative auditor
shall then determine the areawide tax rate sufficient to yield an amount equal to the sum of
such levies from the areawide net tax capacity. On or before September 1 of each year, the
administrative auditor shall certify the areawide tax rate to each of the county auditors.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008 and
thereafter.
new text end

Sec. 50.

Minnesota Statutes 2006, section 473F.08, subdivision 7a, is amended to read:


Subd. 7a.

Certification of values; payment.

The administrative auditor shall
determine for each county the difference between the total levy on distribution value
pursuant to subdivisions 3, clause (a), deleted text begin3a,deleted text end and 3b, within the county and the total tax on
contribution value pursuant to subdivision 6, within the county. On or before May 16 of
each year, the administrative auditor shall certify the differences so determined to each
county auditor. In addition, the administrative auditor shall certify to those county auditors
for whose county the total tax on contribution value exceeds the total levy on distribution
value the settlement the county is to make to the other counties of the excess of the total tax
on contribution value over the total levy on distribution value in the county. On or before
June 15 and November 15 of each year, each county treasurer in a county having a total tax
on contribution value in excess of the total levy on distribution value shall pay one-half of
the excess to the other counties in accordance with the administrative auditors certification.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008 and
thereafter.
new text end

Sec. 51.

Laws 1973, chapter 393, section 1, as amended by Laws 1974, chapter 153,
section 1, is amended to read:


Section 1.

MINNEAPOLIS, CITY OF; STREET MAINTENANCE AND
LIGHTING.


Notwithstanding the provisions of any statute or the charter of the city of
Minneapolis to the contrary, the city council of said city may provide that all new text beginor part of the
new text endcosts of new text beginconstruction, operation, and new text endmaintenance of streets and street lighting within the
city may hereafter be paid from the general revenues of the city of Minneapolis; provided
that the portion of the costs assessable against nongovernmental real property exempt from
ad valorem taxation may be levied as a special assessment against the property.

Sec. 52.

Laws 2006, chapter 236, article 1, section 21, is amended to read:


Sec. 47. EXCHANGE OF TAX-FORFEITED LAND; PRIVATE SALE;
ITASCA COUNTY.

(a) For the purpose of a land exchange for use in connection with a proposed
steel mill in Itasca County referenced in Laws 1999, chapter 240, article 1, section 8,
subdivision 3, title examination and approval of the land described in paragraph (b)
shall be undertaken as a condition of exchange of the land for class B land, and shall be
governed by Minnesota Statutes, section 94.344, subdivisions 9 and 10, and the provisions
of this section. Notwithstanding the evidence of title requirements in Minnesota Statutes,
section 94.344, subdivisions 9 and 10, the county attorney shall examine one or more title
reports or title insurance commitments prepared or underwritten by a title insurer licensed
to conduct title insurance business in this state, regardless of whether abstracts were
created or updated in the preparation of the title reports or commitments. The opinion of
the county attorney, and approval by the attorney general, shall be based on those title
reports or commitments.

(b) The land subject to this section is located in Itasca County and is described as:

(1) Sections 3, 4, 7, 10, 14, 15, 16, 17, 18, 20, 21, 22, 23, 26, 28, and 29, Township
56 North, Range 22 West;

(2) Sections 3, 4, 9, 10, 13, and 14, Township 56 North, Range 23 West;

(3) Section 30, Township 57 North, Range 22 West; and

(4) Sections 25, 26, 34, 35, and 36, Township 57 North, Range 23 West.

(c) Riparian land given in exchange by Itasca County for the purpose of the steel
mill referenced in paragraph (a), is exempt from the restrictions imposed by Minnesota
Statutes, section 94.342, subdivision 3.

(d) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1,
and the public sale provisions of Minnesota Statutes, chapter 282, Itasca County may sell,
by private sale, any land received in exchange for the purpose of the steel mill referenced
in paragraph (a), under the remaining provisions of Minnesota Statutes, chapter 282. The
sale must be in a form approved by the attorney general.

new text begin (e) Notwithstanding Minnesota Statutes, section 284.28, subdivision 8, or any other
law to the contrary, land acquired through an exchange under this section is exempt from
payment of three percent of the sales price required to be collected by the county auditor
at the time of sale for deposit in the state treasury.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 53. new text beginFISCAL DISPARITIES STUDY.
new text end

new text begin The commissioner of revenue shall conduct a study of the metropolitan revenue
distribution program contained in Minnesota Statutes, chapter 473F, commonly known
as the fiscal disparities program. On or before February 1, 2008, the commissioner shall
make a report to the chairs of the house of representatives and senate tax committees
consisting of the findings of the study and any recommendations resulting from the study.
new text end

new text begin The study must consider to what extent the program is meeting the following goals,
and what changes could be made to the program in the furtherance of meeting those goals:
new text end

new text begin (1) reducing the extent to which the property tax encourages development patterns
that do not make cost-effective use of public infrastructure or impose other high public
costs;
new text end

new text begin (2) ensuring that the benefits of economic growth of the region are shared throughout
the region, especially for growth that results from state and/or regional decisions;
new text end

new text begin (3) improving the ability of each jurisdiction within the region to deliver services at
a level commensurate with its tax effort;
new text end

new text begin (4) compensating jurisdictions containing properties that provide regional benefits
for the costs those properties impose on their host jurisdictions in excess of their tax
payments;
new text end

new text begin (5) promoting a fair distribution of property tax burdens across jurisdictions of
the region; and
new text end

new text begin (6) reducing the economic losses that result from competition among communities
for commercial-industrial tax base.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 54. new text beginIMPROVING PUBLIC AWARENESS AND PARTICIPATION IN
PROPERTY TAX RELIEF PROGRAMS.
new text end

new text begin The commissioner of revenue, in consultation with county officials, shall undertake
to improve the public's awareness of and participation in property tax refund programs,
including the regular program for homeowners and renters and the additional property
tax refund program, the senior citizen's property tax deferral program, and the seasonal
recreational property tax deferral program.
new text end

new text begin The commissioner shall consider options for improving public awareness, including,
but not limited to:
new text end

new text begin (i) direct mailings to homeowners;
new text end

new text begin (ii) an insert in the property tax statement;
new text end

new text begin (iii) more prominent and direct references to the programs on the property tax
statement;
new text end

new text begin (iv) notification on the property tax statement envelopes or folders;
new text end

new text begin (v) public service announcements, including print, broadcast, and Internet; and
new text end

new text begin (vi) information and handouts at the truth in taxation hearings.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 55. new text beginTRUTH IN TAXATION PROGRAM; COSTS AND PARTICIPATION
STUDY.
new text end

new text begin The commissioner of revenue shall prepare a study of the costs of the truth in
taxation program under Minnesota Statutes, section 275.065, and the level of taxpayer
participation in the hearings required under Minnesota Statutes, section 275.065,
subdivision 6. In determining the costs, the commissioner shall ascertain the costs of
the preparation and mailing of the notice under Minnesota Statutes, section 275.065,
subdivision 3, the advertisement under Minnesota Statutes, section 275.065, subdivision
5a, and any costs associated with the hearings required under Minnesota Statutes, section
275.065, subdivision 6. The report must also make recommendations for ways to increase
taxpayer participation in the local government budget process, including but not limited to
the truth-in-taxation process. The report must be delivered by January 15, 2008, to the
legislature as provided for in Minnesota Statutes, section 3.195. The report must also be
provided to the chairs of the senate and house of representatives committees and divisions
with jurisdiction over property taxes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 56. new text beginCLAIR A. NELSON MEMORIAL FOREST, LAKE COUNTY;
TEMPORARY SUSPENSION OF APPORTIONMENT OF PROCEEDS FROM
TAX-FORFEITED LANDS.
new text end

new text begin (a) Upon approval of an affected political subdivision within Lake County, the
Lake County Board may suspend the apportionment of the balance of net proceeds from
tax-forfeited lands within the affected political subdivision under Minnesota Statutes,
section 282.08, clause (4), item (iii), and retain the net proceeds. The authority under this
paragraph is available until Lake County suspends the apportionment of net proceeds
subject to item (iii) in the amount of $2,200,000 plus any interest costs incurred by the
county to purchase land described in this section. The money received by Lake County is
to reimburse the county for the purchase in 2006 of 6,085 acres of forest land named the
Clair A. Nelson Memorial Forest.
new text end

new text begin (b) Any revenue derived from acquired land that was reimbursed under paragraph
(a) is subject to apportionment as provided in Minnesota Statutes, section 282.08.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2006.
new text end

Sec. 57. new text beginLAKEVIEW CEMETERY ASSOCIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Authorized. new text end

new text begin Any two or more of the following cities and towns in
Itasca County may enter into a joint powers agreement under Minnesota Statutes, section
471.59, to establish the Lakeview Cemetery Association with the powers and duties of a
cemetery association under Minnesota Statutes, chapter 306: the cities of Bovey, Calumet,
Coleraine, Marble, and Taconite, and the towns of Greenway, Iron Range, Lawrence,
and Trout Lake.
new text end

new text begin Subd. 2. new text end

new text begin Additions; withdrawals. new text end

new text begin (a) A city or town listed in subdivision 1 that
does not join the association at the time of the initial agreement may join as provided in
the joint powers agreement, or if the joint powers agreement does not provide for later
additions, by providing the association a copy of the adopted resolution to join. If the
joint powers agreement does not provide for adding members, a city or town that joins
after the initial agreement is effective, may join prior to July 1 of the levy year, for taxes
payable in the following year.
new text end

new text begin (b) A city or town may withdraw from the association as otherwise provided in the
joint powers agreement, or providing to the association a copy of the adopted resolution of
the city or town, prior to July 1 of the levy year for taxes payable in the following year.
new text end

new text begin Subd. 3. new text end

new text begin Operation; tax levy. new text end

new text begin The joint powers agreement for the association may
provide for each participating city and town to levy a tax against all taxable properties
located within the city or town. The maximum amount that may be levied by all
participating cities and towns combined shall not exceed a total of $200,000 per year. If
levied, the tax is in addition to all other taxes permitted to be levied on the property,
including taxes permitted to be levied for cemetery purposes by a participating city or
town. The levy under this section must be disregarded in the calculation of all other
rate or per capita levy limitations imposed by law. One of the cities or towns within the
association, chosen by the members of the association, shall certify a tax levy to the
Itasca County auditor. When collected, the Itasca County auditor shall pay the Lakeview
Cemetery Association directly.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes levied in 2007, payable
in 2008, and thereafter.
new text end

Sec. 58. new text beginTAX-FORFEITED LANDS LEASE; ITASCA COUNTY.
new text end

new text begin Notwithstanding Minnesota Statutes, section 282.04, or other law to the contrary,
the Itasca County auditor may lease tax-forfeited land to Minnesota Steel for a period of
20 years, for use as a tailings basin and buffer area. A lease entered under this section
is renewable.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 59. new text beginREPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2006, section 473F.08, subdivision 3a, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Laws 1973, chapter 393, section 2, new text end new text begin is repealed.
new text end

new text begin (c) new text end new text begin Laws 1994, chapter 587, article 9, section 8, subdivision 1, as amended by Laws
2005, First Special Session chapter 3, article 1, section 36,
new text end new text begin is repealed, effective for the
same levy year in which the association initially levies under section 57.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective for taxes payable in 2008 and
thereafter.
new text end

ARTICLE 4

CORPORATE FRANCHISE TAX

Section 1.

Minnesota Statutes 2006, section 289A.08, subdivision 3, is amended to
read:


Subd. 3.

Corporations.

A corporation that is subject to the state's jurisdiction to tax
under section 290.014, subdivision 5, must file a returndeleted text begin, except that a foreign operating
corporation as defined in section 290.01, subdivision 6b, is not required to file a return
deleted text end.
The commissioner shall adopt rules for the filing of one return on behalf of the members
of an affiliated group of corporations that are required to file a combined report. All
members of an affiliated group that are required to file a combined report must file one
return on behalf of the members of the group under rules adopted by the commissioner.
If a corporation claims on a return that it has paid tax in excess of the amount of taxes
lawfully due, that corporation must include on that return information necessary for
payment of the tax in excess of the amount lawfully due by electronic means.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006.
new text end

Sec. 2.

Minnesota Statutes 2006, section 290.01, subdivision 5, is amended to read:


Subd. 5.

Domestic corporation.

The term "domestic" when applied to a corporation
means a corporation:

(1) created or organized in the United States, or under the laws of the United States
or of any state, the District of Columbia, or any political subdivision of any of the
foregoing but not including the Commonwealth of Puerto Rico, or any possession of
the United States;

(2) which qualifies as a DISC, as defined in section 992(a) of the Internal Revenue
Code; deleted text beginor
deleted text end

(3) which qualifies as a FSC, as defined in section 922 of the Internal Revenue Codedeleted text begin.deleted text endnew text begin;
new text end

new text begin (4) which is treated as a domestic corporation for purposes of section 1504(d) of the
Internal Revenue Code;
new text end

new text begin (5) if the average of its property, payroll, and sales factors, as defined under section
290.191, within the 50 states of the United States and the District of Columbia is 20
percent or more; or
new text end

new text begin (6) which is a controlled foreign corporation as defined in section 957 of the Internal
Revenue Code and which has subpart F income, as defined in section 952 of the Internal
Revenue Code, for the taxable year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006.
new text end

Sec. 3.

Minnesota Statutes 2006, section 290.01, subdivision 19c, is amended to read:


Subd. 19c.

Corporations; additions to federal taxable income.

For corporations,
there shall be added to federal taxable income:

(1) the amount of any deduction taken for federal income tax purposes for income,
excise, or franchise taxes based on net income or related minimum taxes, including but not
limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota,
another state, a political subdivision of another state, the District of Columbia, or any
foreign country or possession of the United States;

(2) interest not subject to federal tax upon obligations of: the United States, its
possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
state, any of its political or governmental subdivisions, any of its municipalities, or any
of its governmental agencies or instrumentalities; the District of Columbia; or Indian
tribal governments;

(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
Revenue Code;

(4) the amount of any net operating loss deduction taken for federal income tax
purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
deduction under section 810 of the Internal Revenue Code;

(5) the amount of any special deductions taken for federal income tax purposes
under sections 241 to 247 and 965 of the Internal Revenue Code;

(6) losses from the business of mining, as defined in section 290.05, subdivision 1,
clause (a), that are not subject to Minnesota income tax;

(7) the amount of any capital losses deducted for federal income tax purposes under
sections 1211 and 1212 of the Internal Revenue Code;

(8) the exempt foreign trade income of a foreign sales corporation under sections
921(a) and 291 of the Internal Revenue Code;

(9) the amount of percentage depletion deducted under sections 611 through 614 and
291 of the Internal Revenue Code;

(10) deleted text beginfor certified pollution control facilities placed in service in a taxable year
beginning before December 31, 1986, and for which amortization deductions were elected
under section 169 of the Internal Revenue Code of 1954, as amended through December
31, 1985, the amount of the amortization deduction allowed in computing federal taxable
income for those facilities;
deleted text end

deleted text begin (11)deleted text end the amount of deleted text beginany deemed dividend from a foreign operating corporation
determined pursuant to section 290.17, subdivision 4, paragraph (g);
deleted text endnew text begin payments to a foreign
corporation that is part of the unitary business and that is not subject to an election for the
taxable year under section 290.17, subdivision 4a, deducted in computing federal taxable
income, if the payments are foreign personal holding company income as that term is
defined in section 954(c) of the Internal Revenue Code;
new text end

deleted text begin (12)deleted text endnew text begin (11)new text end the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;

deleted text begin (13)deleted text endnew text begin (12)new text end the amount of net income excluded under section 114 of the Internal
Revenue Code;

deleted text begin (14) any increase in subpart F income, as defined in section 952(a) of the Internal
Revenue Code, for the taxable year when subpart F income is calculated without regard
to the provisions of section 103 of Public Law 109-222;
deleted text end

deleted text begin (15)deleted text endnew text begin (13)new text end 80 percent of the depreciation deduction allowed under section
168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if
the taxpayer has an activity that in the taxable year generates a deduction for depreciation
under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable
year that the taxpayer is not allowed to claim for the taxable year, "the depreciation
allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess
of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A)
over the amount of the loss from the activity that is not allowed in the taxable year. In
succeeding taxable years when the losses not allowed in the taxable year are allowed, the
depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;

deleted text begin (16)deleted text endnew text begin (14)new text end 80 percent of the amount by which the deduction allowed by section 179 of
the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
Revenue Code of 1986, as amended through December 31, 2003;

deleted text begin (17)deleted text endnew text begin (15)new text end to the extent deducted in computing federal taxable income, the amount of
the deduction allowable under section 199 of the Internal Revenue Code; and

deleted text begin (18)deleted text endnew text begin (16)new text end the exclusion allowed under section 139A of the Internal Revenue Code
for federal subsidies for prescription drug plans.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006.
new text end

Sec. 4.

Minnesota Statutes 2006, section 290.01, subdivision 19d, is amended to read:


Subd. 19d.

Corporations; modifications decreasing federal taxable income.

For
corporations, there shall be subtracted from federal taxable income after the increases
provided in subdivision 19c:

(1) the amount of foreign dividend gross-up added to gross income for federal
income tax purposes under section 78 of the Internal Revenue Code;

(2) the amount of salary expense not allowed for federal income tax purposes due
to claiming the deleted text beginfederal jobsdeleted text endnew text begin work opportunitynew text end credit under section 51 of the Internal
Revenue Code;

(3) any dividend (not including any distribution in liquidation) paid within the
taxable year by a national or state bank to the United States, or to any instrumentality of
the United States exempt from federal income taxes, on the preferred stock of the bank
owned by the United States or the instrumentality;

(4) amounts disallowed for intangible drilling costs due to differences between
this chapter and the Internal Revenue Code in taxable years beginning before January
1, 1987, as follows:

(i) to the extent the disallowed costs are represented by physical property, an amount
equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09,
subdivision 7
, subject to the modifications contained in subdivision 19e; and

(ii) to the extent the disallowed costs are not represented by physical property, an
amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section
290.09, subdivision 8;

(5) the deduction for capital losses pursuant to sections 1211 and 1212 of the
Internal Revenue Code, except that:

(i) for capital losses incurred in taxable years beginning after December 31, 1986,
capital loss carrybacks shall not be allowed;

(ii) for capital losses incurred in taxable years beginning after December 31, 1986,
a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
allowed;

(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
capital loss carryback to each of the three taxable years preceding the loss year, subject to
the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and

(iv) for capital losses incurred in taxable years beginning before January 1, 1987,
a capital loss carryover to each of the five taxable years succeeding the loss year to the
extent such loss was not used in a prior taxable year and subject to the provisions of
Minnesota Statutes 1986, section 290.16, shall be allowed;

(6) an amount for interest and expenses relating to income not taxable for federal
income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
291 of the Internal Revenue Code in computing federal taxable income;

(7) in the case of mines, oil and gas wells, other natural deposits, and timber for
which percentage depletion was disallowed pursuant to subdivision 19c, clause deleted text begin(11)deleted text endnew text begin (9)new text end, a
reasonable allowance for depletion based on actual cost. In the case of leases the deduction
must be apportioned between the lessor and lessee in accordance with rules prescribed
by the commissioner. In the case of property held in trust, the allowable deduction must
be apportioned between the income beneficiaries and the trustee in accordance with the
pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
of the trust's income allocable to each;

(8) deleted text beginfor certified pollution control facilities placed in service in a taxable year
beginning before December 31, 1986, and for which amortization deductions were elected
under section 169 of the Internal Revenue Code of 1954, as amended through December
31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
1986, section 290.09, subdivision 7;
deleted text end

deleted text begin (9)deleted text end amounts included in federal taxable income that are due to refunds of income,
excise, or franchise taxes based on net income or related minimum taxes paid by the
corporation to Minnesota, another state, a political subdivision of another state, the
District of Columbia, or a foreign country or possession of the United States to the extent
that the taxes were added to federal taxable income under section 290.01, subdivision 19c,
clause (1), in a prior taxable year;

deleted text begin (10) 80 percent of royalties, fees, or other like income accrued or received from a
foreign operating corporation or a foreign corporation which is part of the same unitary
business as the receiving corporation;
deleted text end

deleted text begin (11)deleted text endnew text begin (9)new text end income or gains from the business of mining as defined in section 290.05,
subdivision 1
, clause (a), that are not subject to Minnesota franchise tax;

deleted text begin (12)deleted text endnew text begin (10)new text end the amount of disability access expenditures in the taxable year which are
not allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue
Code;

deleted text begin (13)deleted text endnew text begin (11)new text end the amount of qualified research expenses not allowed for federal income
tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent
that the amount exceeds the amount of the credit allowed under section 290.068;

deleted text begin (14)deleted text endnew text begin (12)new text end the amount of salary expenses not allowed for federal income tax purposes
due to claiming the Indian employment credit under section 45A(a) of the Internal
Revenue Code;

deleted text begin (15) the amount of any refund of environmental taxes paid under section 59A of the
Internal Revenue Code;
deleted text end

deleted text begin (16)deleted text endnew text begin (13)new text end for taxable years beginning before January 1, 2008, the amount of the
federal small ethanol producer credit allowed under section 40(a)(3) of the Internal
Revenue Code which is included in gross income under section 87 of the Internal Revenue
Code;

deleted text begin (17)deleted text endnew text begin (14)new text end for a corporation whose foreign sales corporation, as defined in section
922 of the Internal Revenue Code, constituted a foreign operating corporation during any
taxable year ending before January 1, 1995, and a return was filed by August 15, 1996,
claiming the deduction under section 290.21, subdivision 4, for income received from
the foreign operating corporation, an amount equal to 1.23 multiplied by the amount of
income excluded under section 114 of the Internal Revenue Code, provided the income is
not income of a foreign operating company;

deleted text begin (18) any decrease in subpart F income, as defined in section 952(a) of the Internal
Revenue Code, for the taxable year when subpart F income is calculated without regard
to the provisions of section 614 of Public Law 107-147;
deleted text end

deleted text begin (19)deleted text endnew text begin (15)new text end in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19c, clause deleted text begin(15)deleted text endnew text begin (13)new text end, an amount equal to one-fifth
of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the
amount of the addition made by the taxpayer under subdivision 19c, clause deleted text begin(15)deleted text endnew text begin (13)new text end. The
resulting delayed depreciation cannot be less than zero; and

deleted text begin (20)deleted text endnew text begin (16)new text end in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19c, clause deleted text begin(16)deleted text endnew text begin (14)new text end, an amount equal to one-fifth
of the amount of the addition.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006, except the amendment to clause (2) is effective the day following
final enactment.
new text end

Sec. 5.

Minnesota Statutes 2006, section 290.0921, subdivision 3, is amended to read:


Subd. 3.

Alternative minimum taxable income.

"Alternative minimum taxable
income" is Minnesota net income as defined in section 290.01, subdivision 19, and
includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e),
(f), and (h) of the Internal Revenue Code. If a corporation files a separate company
Minnesota tax return, the minimum tax must be computed on a separate company basis.
If a corporation is part of a tax group filing a unitary return, the minimum tax must be
computed on a unitary basis. The following adjustments must be made.

(1) For purposes of the depreciation adjustments under section 56(a)(1) and
56(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in
service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal
income tax purposes, including any modification made in a taxable year under section
290.01, subdivision 19e, or Minnesota Statutes 1986, section 290.09, subdivision 7,
paragraph (c).

For taxable years beginning after December 31, 2000, the amount of any remaining
modification made under section 290.01, subdivision 19e, or Minnesota Statutes 1986,
section 290.09, subdivision 7, paragraph (c), not previously deducted is a depreciation
allowance in the first taxable year after December 31, 2000.

(2) The portion of the depreciation deduction allowed for federal income tax
purposes under section 168(k) of the Internal Revenue Code that is required as an addition
under section 290.01, subdivision 19c, clause deleted text begin(16)deleted text endnew text begin (13)new text end, is disallowed in determining
alternative minimum taxable income.

(3) The subtraction for depreciation allowed under section 290.01, subdivision
19d
, clause deleted text begin(19)deleted text endnew text begin (15)new text end, is allowed as a depreciation deduction in determining alternative
minimum taxable income.

(4) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d)
of the Internal Revenue Code does not apply.

(5) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal
Revenue Code does not apply.

(6) The special rule for dividends from section 936 companies under section
56(g)(4)(C)(iii) does not apply.

(7) The tax preference for depletion under section 57(a)(1) of the Internal Revenue
Code does not apply.

(8) The tax preference for intangible drilling costs under section 57(a)(2) of the
Internal Revenue Code must be calculated without regard to subparagraph (E) and the
subtraction under section 290.01, subdivision 19d, clause (4).

(9) The tax preference for tax exempt interest under section 57(a)(5) of the Internal
Revenue Code does not apply.

(10) The tax preference for charitable contributions of appreciated property under
section 57(a)(6) of the Internal Revenue Code does not apply.

(11) For purposes of calculating the tax preference for accelerated depreciation or
amortization on certain property placed in service before January 1, 1987, under section
57(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the
deduction allowed under section 290.01, subdivision 19e.

For taxable years beginning after December 31, 2000, the amount of any remaining
modification made under section 290.01, subdivision 19e, not previously deducted is a
depreciation or amortization allowance in the first taxable year after December 31, 2004.

(12) For purposes of calculating the adjustment for adjusted current earnings in
section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable
income" as it is used in section 56(g) of the Internal Revenue Code, means alternative
minimum taxable income as defined in this subdivision, determined without regard to the
adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.

(13) For purposes of determining the amount of adjusted current earnings under
section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section
56(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend
gross-up subtracted as provided in section 290.01, subdivision 19d, clause (1), new text beginor new text end(ii) the
amount of refunds of income, excise, or franchise taxes subtracted as provided in section
290.01, subdivision 19d, clause deleted text begin(10), or (iii) the amount of royalties, fees or other like
income subtracted as provided in section 290.01, subdivision 19d, clause (11)
deleted text endnew text begin (8)new text end.

(14) Alternative minimum taxable income excludes the income from operating in a
job opportunity building zone as provided under section 469.317.

(15) Alternative minimum taxable income excludes the income from operating in a
biotechnology and health sciences industry zone as provided under section 469.337.

(16) Alternative minimum taxable income excludes the income from operating in an
international economic development zone as provided under section 469.326.

Items of tax preference must not be reduced below zero as a result of the
modifications in this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006.
new text end

Sec. 6.

Minnesota Statutes 2006, section 290.17, subdivision 4, is amended to read:


Subd. 4.

Unitary business principle.

(a) If a trade or business conducted wholly
within this state or partly within and partly without this state is part of a unitary business,
the entire income of the unitary business is subject to apportionment pursuant to section
290.191. Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary
business is considered to be derived from any particular source and none may be allocated
to a particular place except as provided by the applicable apportionment formula. The
provisions of this subdivision do not apply to business income subject to subdivision 5,
income of an insurance company, or income of an investment company determined under
section 290.36.

(b) The term "unitary business" means business activities or operations which
result in a flow of value between them. The term may be applied within a single legal
entity or between multiple entities and without regard to whether each entity is a sole
proprietorship, a corporation, a partnership or a trust.

(c) Unity is presumed whenever there is unity of ownership, operation, and use,
evidenced by centralized management or executive force, centralized purchasing,
advertising, accounting, or other controlled interaction, but the absence of these
centralized activities will not necessarily evidence a nonunitary business. Unity is also
presumed when business activities or operations are of mutual benefit, dependent upon or
contributory to one another, either individually or as a group.

(d) Where a business operation conducted in Minnesota is owned by a business
entity that carries on business activity outside the state different in kind from that
conducted within this state, and the other business is conducted entirely outside the state, it
is presumed that the two business operations are unitary in nature, interrelated, connected,
and interdependent unless it can be shown to the contrary.

(e) Unity of ownership is not deemed to exist when a corporation is involved unless
that corporation is a member of a group of two or more business entities and more than 50
percent of the voting stock of each member of the group is directly or indirectly owned
by a common owner or by common owners, either corporate or noncorporate, or by one
or more of the member corporations of the group. For this purpose, the term "voting
stock" shall include membership interests of mutual insurance holding companies formed
under section 66A.40.

(f) The net income and apportionment factors under section 290.191 or 290.20 of
foreign corporations and other foreign entities which are part of a unitary business shall
not be included in the net income or the apportionment factors of the unitary business.
A foreign corporation or other foreign entity which is required to file a return under this
chapter shall file on a separate return basis. deleted text beginThe net income and apportionment factors
under section 290.191 or 290.20 of foreign operating corporations shall not be included in
the net income or the apportionment factors of the unitary business except as provided in
paragraph (g).
deleted text end

deleted text begin (g) The adjusted net income of a foreign operating corporation shall be deemed to
be paid as a dividend on the last day of its taxable year to each shareholder thereof, in
proportion to each shareholder's ownership, with which such corporation is engaged in
a unitary business. Such deemed dividend shall be treated as a dividend under section
290.21, subdivision 4.
deleted text end

deleted text begin Dividends actually paid by a foreign operating corporation to a corporate shareholder
which is a member of the same unitary business as the foreign operating corporation shall
be eliminated from the net income of the unitary business in preparing a combined report
for the unitary business. The adjusted net income of a foreign operating corporation
shall be its net income adjusted as follows:
deleted text end

deleted text begin (1) any taxes paid or accrued to a foreign country, the commonwealth of Puerto
Rico, or a United States possession or political subdivision of any of the foregoing shall
be a deduction; and
deleted text end

deleted text begin (2) the subtraction from federal taxable income for payments received from foreign
corporations or foreign operating corporations under section deleted text begin290.01, subdivision 19ddeleted text end,
clause (10), shall not be allowed.
deleted text end

deleted text begin If a foreign operating corporation incurs a net loss, neither income nor deduction
from that corporation shall be included in determining the net income of the unitary
business.
deleted text end

deleted text begin (h)deleted text endnew text begin (g)new text end For purposes of determining the net income of a unitary business and the
factors to be used in the apportionment of net income pursuant to section 290.191 or
290.20, there must be included only the income and apportionment factors of domestic
corporations or other domestic entities deleted text beginother than foreign operating corporationsdeleted text end that are
determined to be part of the unitary business pursuant to this subdivision, notwithstanding
that foreign corporations or other foreign entities might be included in the unitary businessnew text begin,
except as provided in subdivision 4a
new text end. new text beginFor a controlled foreign corporation, as defined in
section 957 of the Internal Revenue Code, that is a domestic corporation for the taxable
year under section 290.01, subdivision 5, its income and apportionment factors for the
taxable year must be multiplied by a fraction not to exceed one, the numerator of which is
the subpart F income of the corporation, as defined in section 952 of the Internal Revenue
Code, for the taxable year and the denominator of which is the earnings and profits of the
corporation, as defined in section 964 of the Internal Revenue Code, for the taxable year.
new text end

deleted text begin (i) Deductions for expenses, interest, or taxes otherwise allowable under this chapter
that are connected with or allocable against dividends, deemed dividends described
in paragraph (g), or royalties, fees, or other like income described in section deleted text begin290.01,
subdivision 19d
deleted text end
, clause (10), shall not be disallowed.
deleted text end

deleted text begin (j)deleted text endnew text begin (h)new text end Each corporation or other entity, except a sole proprietorship, that is part of
a unitary business must file combined reports as the commissioner determines. On the
reports, all intercompany transactions between entities included pursuant to paragraph
deleted text begin (h)deleted text endnew text begin (g)new text end must be eliminated and the entire net income of the unitary business determined in
accordance with this subdivision is apportioned among the entities by using each entity's
Minnesota factors for apportionment purposes in the numerators of the apportionment
formula and the total factors for apportionment purposes of all entities included pursuant
to paragraph deleted text begin(h)deleted text endnew text begin (g)new text end in the denominators of the apportionment formula.

deleted text begin (k)deleted text endnew text begin (i)new text end If a corporation has been divested from a unitary business and is included in a
combined report for a fractional part of the common accounting period of the combined
report:

(1) its income includable in the combined report is its income incurred for that part
of the year determined by proration or separate accounting; and

(2) its sales, property, and payroll included in the apportionment formula must
be prorated or accounted for separately.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006.
new text end

Sec. 7.

Minnesota Statutes 2006, section 290.17, is amended by adding a subdivision
to read:


new text begin Subd. 4a. new text end

new text begin Election to include foreign corporations. new text end

new text begin (a) Notwithstanding the
provisions of subdivision 4, paragraph (f), a unitary business may elect to include all
foreign corporations and other foreign entities that are part of the unitary business in
the net income and the apportionment factors of the unitary business under the terms
provided in this subdivision. An election under this subdivision requires all of the income
and factors of a controlled foreign corporation, treated as a domestic corporation under
section 290.01, subdivision 5, clause (6), to be included in the combined report. Each
member of the unitary business must make the election under this subdivision for the
election to be effective.
new text end

new text begin (b) An election or a revocation made under this subdivision must be made in the form
and manner provided by the commissioner and include any information, consents, or other
agreements that the commissioner prescribes. The election must be made by the due date
of the return for the taxable year and applies for that taxable year and the succeeding four
taxable years or until it is revoked as provided in this paragraph, whichever occurs later.
Revocation of an election under this subdivision is effective beginning with the first taxable
year that begins two years after the date the revocation is filed with the commissioner. If a
taxpayer revokes an election, a subsequent election under this subdivision may not take
effect until the third taxable year after the revocation became effective.
new text end

new text begin (c) For each taxable year in which an election is effective under this subdivision,
the net income and apportionment factors of the unitary business must include the net
income and apportionment factors of all foreign corporations and other foreign entities
that are part of the unitary business.
new text end

new text begin (d) The commissioner may waive any of the time requirements under paragraph (b)
to the extent necessary to reflect the amount of income fairly attributable to this state.
new text end

new text begin (e) Notwithstanding the requirements of paragraph (b), an election under this
subdivision is revoked for the current taxable year if one of the following occurs:
new text end

new text begin (1) 50 percent or more of the voting stock of the electing corporation is acquired by
a nonaffiliated corporation, which has not made an election under this subdivision; or
new text end

new text begin (2) if the corporation is completely liquidated during the taxable year, its election
does not carry over to the corporation receiving its assets; or
new text end

new text begin (3) the corporation acquires 50 percent or more of the stock of a nonaffiliated
corporation (or corporations), which has not made an election under this subdivision and
which has Minnesota taxable net income for the previous taxable year that equals or
exceeds 20 percent of the Minnesota taxable net income of the unitary business, and each
member of the unitary business elects, in a form prescribed by the commissioner, to
revoke its election under this subdivision.
new text end

new text begin (f) If a corporation with an election in effect for the taxable year acquires 50 percent
or more of the stock of a nonaffiliated corporation, which has not made an election under
this subdivision, and the unitary business does not revoke the election under paragraph (e),
clause (3), or does not qualify to revoke the election under paragraph (e), clause (3), the
acquired corporation is deemed to have made an election under this subdivision for the
term of the election of the unitary business.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006.
new text end

Sec. 8.

Minnesota Statutes 2006, section 290.191, subdivision 2, is amended to read:


Subd. 2.

Apportionment formula of general application.

(a) Except for those
trades or businesses required to use a different formula under subdivision 3 or section
290.36, and for those trades or businesses that receive permission to use some other
method under section 290.20 deleted text beginor under subdivision 4deleted text end, a trade or business required to
apportion its net income must apportion its income to this state on the basis of the
percentage deleted text beginobtained by taking the sum of:
deleted text end

deleted text begin (1) the percent for the sales factor under paragraph (b) of the percentagedeleted text end which
the sales made within this state in connection with the trade or business during the tax
period are of the total sales wherever made in connection with the trade or business during
the tax perioddeleted text begin;deleted text endnew text begin.
new text end

deleted text begin (2) the percent for the property factor under paragraph (b) of the percentage which
the total tangible property used by the taxpayer in this state in connection with the trade or
business during the tax period is of the total tangible property, wherever located, used by
the taxpayer in connection with the trade or business during the tax period; and
deleted text end

deleted text begin (3) the percent for the payroll factor under paragraph (b) of the percentage which
the taxpayer's total payrolls paid or incurred in this state or paid in respect to labor
performed in this state in connection with the trade or business during the tax period are
of the taxpayer's total payrolls paid or incurred in connection with the trade or business
during the tax period.
deleted text end

deleted text begin (b) For purposes of paragraph (a) and subdivision 3, the following percentages apply
for the taxable years specified:
deleted text end

deleted text begin Taxable years
beginning
during
calendar year
deleted text end
deleted text begin deleted text end deleted text begin Sales
factor
percent
deleted text end
deleted text begin Property
factor
deleted text end deleted text begin percent
deleted text end
deleted text begin Payroll
factor
percent
deleted text end
deleted text begin 2007
deleted text end
deleted text begin 78
deleted text end
deleted text begin 11
deleted text end
deleted text begin 11
deleted text end
deleted text begin 2008
deleted text end
deleted text begin 81
deleted text end
deleted text begin 9.5
deleted text end
deleted text begin 9.5
deleted text end
deleted text begin 2009
deleted text end
deleted text begin 84
deleted text end
deleted text begin 8
deleted text end
deleted text begin 8
deleted text end
deleted text begin 2010
deleted text end
deleted text begin 87
deleted text end
deleted text begin 6.5
deleted text end
deleted text begin 6.5
deleted text end
deleted text begin 2011
deleted text end
deleted text begin 90
deleted text end
deleted text begin 5
deleted text end
deleted text begin 5
deleted text end
deleted text begin 2012
deleted text end
deleted text begin 93
deleted text end
deleted text begin 3.5
deleted text end
deleted text begin 3.5
deleted text end
deleted text begin 2013
deleted text end
deleted text begin 96
deleted text end
deleted text begin 2
deleted text end
deleted text begin 2
deleted text end
deleted text begin 2014 and later
calendar years
deleted text end
deleted text begin 100
deleted text end
deleted text begin 0
deleted text end
deleted text begin 0
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2007, provided that for purposes of taxable years beginning during calendar
year 2007 for Minnesota Statutes, section 290.191, subdivisions 2 and 3, the sales factor
percent is 82 and property and payroll factor percents are each nine.
new text end

Sec. 9.

Minnesota Statutes 2006, section 290.191, subdivision 3, is amended to read:


Subd. 3.

Apportionment formula for financial institutions.

Except for an
investment company required to apportion its income under section 290.36, a financial
institution that is required to apportion its net income must apportion its net income to this
state on the basis of the percentage deleted text beginobtained by taking the sum of:
deleted text end

deleted text begin (1) the percent for the sales factor under subdivision 2, paragraph (b), of the
percentage
deleted text end which the receipts from within this state in connection with the trade or
business during the tax period are of the total receipts in connection with the trade or
business during the tax period, from wherever deriveddeleted text begin;deleted text endnew text begin.
new text end

deleted text begin (2) the percent for the property factor under subdivision 2, paragraph (b), of the
percentage which the sum of the total tangible property used by the taxpayer in this
state and the intangible property owned by the taxpayer and attributed to this state in
connection with the trade or business during the tax period is of the sum of the total
tangible property, wherever located, used by the taxpayer and the intangible property
owned by the taxpayer and attributed to all states in connection with the trade or business
during the tax period; and
deleted text end

deleted text begin (3) the percent for the payroll factor under subdivision 2, paragraph (b), of the
percentage which the taxpayer's total payrolls paid or incurred in this state or paid in
respect to labor performed in this state in connection with the trade or business during
the tax period are of the taxpayer's total payrolls paid or incurred in connection with
the trade or business during the tax period.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2007, provided that for purposes of taxable years beginning during calendar
year 2007 for Minnesota Statutes, section 290.191, subdivisions 2 and 3, the sales factor
percent is 82 and property and payroll factor percents are each nine.
new text end

Sec. 10.

Minnesota Statutes 2006, section 290.191, subdivision 5, is amended to read:


Subd. 5.

Determination of sales factor.

For purposes of this section, the following
rules apply in determining the sales factor.

(a) The sales factor includes all sales, gross earnings, or receipts received in the
ordinary course of the business, except that the following types of income are not included
in the sales factor:

(1) interest;

(2) dividends;

(3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;

(4) sales of property used in the trade or business, except sales of leased property of
a type which is regularly sold as well as leased;new text begin or
new text end

(5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue
Code or sales of stockdeleted text begin; and
deleted text end

deleted text begin (6) royalties, fees, or other like income of a type which qualify for a subtraction from
federal taxable income under section 290.01, subdivision 19d(10)
deleted text end.

(b) Sales of tangible personal property are made within this state if the property is
received by a purchaser at a point within this state, and the taxpayer is taxable in this state,
regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination
of the property.

(c) Tangible personal property delivered to a common or contract carrier or foreign
vessel for delivery to a purchaser in another state or nation is a sale in that state or nation,
regardless of f.o.b. point or other conditions of the sale.

(d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine,
fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is
licensed by a state or political subdivision to resell this property only within the state of
ultimate destination, the sale is made in that state.

(e) Sales made by or through a corporation that is qualified as a domestic
international sales corporation under section 992 of the Internal Revenue Code are not
considered to have been made within this state.

(f) Sales, rents, royalties, and other income in connection with real property is
attributed to the state in which the property is located.

(g) Receipts from the lease or rental of tangible personal property, including finance
leases and true leases, must be attributed to this state if the property is located in this
state and to other states if the property is not located in this state. Receipts from the
lease or rental of moving property including, but not limited to, motor vehicles, rolling
stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts
factor to the extent that the property is used in this state. The extent of the use of moving
property is determined as follows:

(1) A motor vehicle is used wholly in the state in which it is registered.

(2) The extent that rolling stock is used in this state is determined by multiplying
the receipts from the lease or rental of the rolling stock by a fraction, the numerator of
which is the miles traveled within this state by the leased or rented rolling stock and the
denominator of which is the total miles traveled by the leased or rented rolling stock.

(3) The extent that an aircraft is used in this state is determined by multiplying the
receipts from the lease or rental of the aircraft by a fraction, the numerator of which is
the number of landings of the aircraft in this state and the denominator of which is the
total number of landings of the aircraft.

(4) The extent that a vessel, mobile equipment, or other mobile property is used in
the state is determined by multiplying the receipts from the lease or rental of the property
by a fraction, the numerator of which is the number of days during the taxable year the
property was in this state and the denominator of which is the total days in the taxable year.

(h) Royalties and other income not described in paragraph (a), clause (6), received
for the use of or for the privilege of using intangible property, including patents,
know-how, formulas, designs, processes, patterns, copyrights, trade names, service names,
franchises, licenses, contracts, customer lists, or similar items, must be attributed to the
state in which the property is used by the purchaser. If the property is used in more
than one state, the royalties or other income must be apportioned to this state pro rata
according to the portion of use in this state. If the portion of use in this state cannot be
determined, the royalties or other income must be excluded from both the numerator
and the denominator. Intangible property is used in this state if the purchaser uses the
intangible property or the rights therein in the regular course of its business operations in
this state, regardless of the location of the purchaser's customers.

(i) Sales of intangible property are made within the state in which the property is
used by the purchaser. If the property is used in more than one state, the sales must be
apportioned to this state pro rata according to the portion of use in this state. If the
portion of use in this state cannot be determined, the sale must be excluded from both the
numerator and the denominator of the sales factor. Intangible property is used in this
state if the purchaser used the intangible property in the regular course of its business
operations in this state.

(j) Receipts from the performance of services must be attributed to the state where
the services are received. For the purposes of this section, receipts from the performance
of services provided to a corporation, partnership, or trust may only be attributed to a state
where it has a fixed place of doing business. If the state where the services are received is
not readily determinable or is a state where the corporation, partnership, or trust receiving
the service does not have a fixed place of doing business, the services shall be deemed
to be received at the location of the office of the customer from which the services were
ordered in the regular course of the customer's trade or business. If the ordering office
cannot be determined, the services shall be deemed to be received at the office of the
customer to which the services are billed.new text begin For purposes of this subdivision and subdivision
6, paragraph (l), receipts from the performance of services provided by corporations
or trusts, providing management, distribution, or administrative services to any fund
regulated under the Investment Company Act of 1940, are attributed to the states where
each fund's shareholders reside as determined by the mailing address furnished by the
client, based on the average number of outstanding shares owned by the shareholders at
the end of each month compared to the total number of outstanding shares. For purposes
of this section, when a fund shareholder of record is an insurance company holding the
shares as depositor for policyholders, the corporation can elect to treat the policyholders
of the insurance company as the fund shareholders. This election applies to all fund
shareholders that are insurance companies and is irrevocable for, and applicable for, five
successive income years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006, except the amendments to paragraph (j) are effective for taxable
years beginning after December 31, 2007.
new text end

Sec. 11.

Minnesota Statutes 2006, section 290.21, subdivision 4, is amended to read:


Subd. 4.

Dividends received from another corporation.

(a)(1) Eighty percent
of dividends received by a corporation during the taxable year from another corporation,
in which the recipient owns 20 percent or more of the stock, by vote and value, not
including stock described in section 1504(a)(4) of the Internal Revenue Code when the
corporate stock with respect to which dividends are paid does not constitute the stock in
trade of the taxpayer or would not be included in the inventory of the taxpayer, or does not
constitute property held by the taxpayer primarily for sale to customers in the ordinary
course of the taxpayer's trade or business, or when the trade or business of the taxpayer
does not consist principally of the holding of the stocks and the collection of the income
and gains therefrom; and

(2)(i) the remaining 20 percent of dividends if the dividends received are the stock in
an affiliated company transferred in an overall plan of reorganization and the dividend
is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as
amended through December 31, 1989;

(ii) the remaining 20 percent of dividends if the dividends are received from a
corporation which is subject to tax under section 290.36 and which is a member of an
affiliated group of corporations as defined by the Internal Revenue Code and the dividend
is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as
amended through December 31, 1989, or is deducted under an election under section
243(b) of the Internal Revenue Code; or

(iii) the remaining 20 percent of the dividends if the dividends are received from a
property and casualty insurer as defined under section 60A.60, subdivision 8, which is a
member of an affiliated group of corporations as defined by the Internal Revenue Code
and either: (A) the dividend is eliminated in consolidation under Treasury Regulation
1.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted
under an election under section 243(b) of the Internal Revenue Code.

(b) Seventy percent of dividends received by a corporation during the taxable year
from another corporation in which the recipient owns less than 20 percent of the stock,
by vote or value, not including stock described in section 1504(a)(4) of the Internal
Revenue Code when the corporate stock with respect to which dividends are paid does not
constitute the stock in trade of the taxpayer, or does not constitute property held by the
taxpayer primarily for sale to customers in the ordinary course of the taxpayer's trade or
business, or when the trade or business of the taxpayer does not consist principally of the
holding of the stocks and the collection of income and gain therefrom.

(c) The dividend deduction provided in this subdivision shall be allowed only with
respect to dividends that are included in a corporation's Minnesota taxable net income
for the taxable year.

The dividend deduction provided in this subdivision does not apply to a dividend
from a corporation which, for the taxable year of the corporation in which the distribution
is made or for the next preceding taxable year of the corporation, is a corporation exempt
from tax under section 501 of the Internal Revenue Code.

The dividend deduction provided in this subdivision applies to the amount of
regulated investment company dividends only to the extent determined under section
854(b) of the Internal Revenue Code.

The dividend deduction provided in this subdivision shall not be allowed with
respect to any dividend for which a deduction is not allowed under the provisions of
section 246(c) of the Internal Revenue Code.

(d) If dividends received by a corporation that does not have nexus with Minnesota
under the provisions of Public Law 86-272 are included as income on the return of an
affiliated corporation permitted or required to file a combined report under section 290.34,
subdivision 2
, then for purposes of this subdivision the determination as to whether the
trade or business of the corporation consists principally of the holding of stocks and the
collection of income and gains therefrom shall be made with reference to the trade or
business of the affiliated corporation having a nexus with Minnesota.

(e) The deduction provided by this subdivision does not apply if the dividends are
paid by a FSC as defined in section 922 of the Internal Revenue Code.

(f) If one or more of the members of the unitary group whose income is included on
the combined report received a dividend, the deduction under this subdivision for each
member of the unitary business required to file a return under this chapter is the product
of: (1) 100 percent of the dividends received by members of the group; (2) the percentage
allowed pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's business
income apportionable to this state for the taxable year under section 290.191 or 290.20.

new text begin (g) The deduction provided by paragraph (a) does not apply to dividends paid by a
corporation that is part of the unitary business for the taxable year for which an election
was not made under section 290.17, subdivision 4a.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006.
new text end

Sec. 12. new text beginTRANSITION; POLLUTION CONTROL FACILITIES
AMORTIZATION.
new text end

new text begin The amount of additions to federal taxable income pursuant to Minnesota Statutes,
section 290.01, subdivision 19c(10), that are properly subtractable pursuant to Minnesota
Statutes, section 290.01, subdivision 19d(8), for taxable years beginning after December
31, 2006, and have not been subtracted pursuant to subdivision 19d(8), are subtractable in
the taxpayer's first taxable year beginning after December 31, 2006.
new text end

Sec. 13. new text beginREPEALER.
new text end

new text begin (a) Minnesota Statutes 2006, sections 290.01, subdivision 6b; and 290.0921,
subdivision 7,
new text end new text begin are repealed.
new text end

new text begin (b) Minnesota Statutes 2006, section 290.191, subdivision 4, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) of this section is effective for taxable years
beginning after December 31, 2006. Paragraph (b) of this section is effective for taxable
years beginning after December 31, 2007.
new text end

ARTICLE 5

INDIVIDUAL INCOME TAX

Section 1.

Minnesota Statutes 2006, section 289A.02, subdivision 7, is amended to
read:


Subd. 7.

Internal Revenue Code.

Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text beginMay 18,
2006
deleted text endnew text begin December 31, 2006new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2006, section 289A.12, subdivision 4, is amended to read:


Subd. 4.

Returns by persons, corporations, cooperatives, governmental entities,
or school districts.

new text begin(a) new text endThe commissioner may by notice and demand require to the
extent required by section 6041 of the Internal Revenue Code, a person, corporation,
or cooperative, the state of Minnesota and its political subdivisions, and a city, county,
and school district in Minnesota, making payments in the regular course of a trade or
business during the taxable year to any person or corporation of $600 or more on account
of rents or royalties, or of $10 or more on account of interest, or $10 or more on account
of dividends or patronage dividends, or $600 or more on account of either wages, salaries,
commissions, fees, prizes, awards, pensions, annuities, or any other fixed or determinable
gains, profits or income, not otherwise reportable under section 289A.09, subdivision 2, or
on account of earnings of $10 or more distributed to its members by savings associations
or credit unions chartered under the laws of this state or the United States, (1) to file with
the commissioner a return (except in cases where a valid agreement to participate in the
combined federal and state information reporting system has been entered into, and the
return is filed only with the commissioner of internal revenue under the applicable filing
and informational reporting requirements of the Internal Revenue Code) with respect to
the payments in excess of the amounts named, giving the names and addresses of the
persons to whom the payments were made, the amounts paid to each, and (2) to make
a return with respect to the total number of payments and total amount of payments,
for each category of income named, which were in excess of the amounts named. This
subdivision does not apply to the payment of interest or dividends to a person who was a
nonresident of Minnesota for the entire year.

new text begin (b) For payments for which a return is covered by paragraph (a), regardless of
whether the commissioner has required filing under paragraph (a), the payor must file a
copy of the return with the commissioner if:
new text end

new text begin (i) the return is for a payment made to a Minnesota resident, to a recipient with a
Minnesota address, or for activity occurring in the state of Minnesota; and
new text end

new text begin (ii) the payment is for wages, salaries, or other compensation for services provided.
The commissioner may require this information to be filed in electronic or another form
that the commissioner determines is appropriate, notwithstanding the provisions of
paragraph (c).
new text end

new text begin (c) new text endA person, corporation, or cooperative required to file returns under this
subdivision must file the returns on magnetic media if magnetic media was used to satisfy
the federal reporting requirement under section 6011(e) of the Internal Revenue Code,
unless the person establishes to the satisfaction of the commissioner that compliance with
this requirement would be an undue hardship.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for forms required to be filed by
federal law after December 31, 2007.
new text end

Sec. 3.

Minnesota Statutes 2006, section 290.01, subdivision 19, as amended by Laws
2007, chapter 1, section 1, is amended to read:


Subd. 19.

Net income.

The term "net income" means the federal taxable income,
as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
date named in this subdivision, incorporating the federal effective dates of changes to the
Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in subdivisions 19a to 19f.

In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:

(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;

(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
Revenue Code must be applied by allowing a deduction for capital gain dividends and
exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
Revenue Code; and

(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.

The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.

The net income of a designated settlement fund as defined in section 468B(d) of
the Internal Revenue Code means the gross income as defined in section 468B(b) of the
Internal Revenue Code.

The Internal Revenue Code of 1986, as amended through deleted text beginMay 18deleted text endnew text begin December 31new text end,
2006, shall be in effect for taxable years beginning after December 31, 1996deleted text begin, and before
January 1, 2006, and for taxable years beginning after December 31, 2006. The Internal
Revenue Code of 1986, as amended through December 31, 2006, is in effect for taxable
years beginning after December 31, 2005, and before January 1, 2007
deleted text end.

Except as otherwise provided, references to the Internal Revenue Code in
subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
the applicable year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2006, section 290.01, subdivision 19b, is amended to read:


Subd. 19b.

Subtractions from federal taxable income.

For individuals, estates,
and trusts, there shall be subtracted from federal taxable income:

(1) net interest income on obligations of any authority, commission, or
instrumentality of the United States to the extent includable in taxable income for federal
income tax purposes but exempt from state income tax under the laws of the United States;

(2) if included in federal taxable income, the amount of any overpayment of income
tax to Minnesota or to any other state, for any previous taxable year, whether the amount
is received as a refund or as a credit to another taxable year's income tax liability;

(3) the amount paid to others, less the amount used to claim the credit allowed under
section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
transportation of each qualifying child in attending an elementary or secondary school
situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
resident of this state may legally fulfill the state's compulsory attendance laws, which
is not operated for profit, and which adheres to the provisions of the Civil Rights Act
of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
"textbooks" includes books and other instructional materials and equipment purchased
or leased for use in elementary and secondary schools in teaching only those subjects
legally and commonly taught in public elementary and secondary schools in this state.
Equipment expenses qualifying for deduction includes expenses as defined and limited in
section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
books and materials used in the teaching of religious tenets, doctrines, or worship, the
purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
or materials for, or transportation to, extracurricular activities including sporting events,
musical or dramatic events, speech activities, driver's education, or similar programs. For
purposes of the subtraction provided by this clause, "qualifying child" has the meaning
given in section 32(c)(3) of the Internal Revenue Code;

(4) income as provided under section 290.0802;

(5) to the extent included in federal adjusted gross income, income realized on
disposition of property exempt from tax under section 290.491;

(6) to the extent not deducted in determining federal taxable income by an individual
who does not itemize deductions for federal income tax purposes for the taxable year, an
amount equal to 50 percent of the excess of charitable contributions over $500 allowable
as a deduction for the taxable year under section 170(a) of the Internal Revenue Code and
under the provisions of Public Law 109-1;

(7) for taxable years beginning before January 1, 2008, the amount of the federal
small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code
which is included in gross income under section 87 of the Internal Revenue Code;

(8) for individuals who are allowed a federal foreign tax credit for taxes that do not
qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
of subnational foreign taxes for the taxable year, but not to exceed the total subnational
foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
"federal foreign tax credit" means the credit allowed under section 27 of the Internal
Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
the extent they exceed the federal foreign tax credit;

(9) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (7), or 19c, clause deleted text begin(15)deleted text endnew text begin (13)new text end, in the case
of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or
subdivision 19c, clause deleted text begin(15)deleted text endnew text begin (13)new text end, in the case of a shareholder of an S corporation, minus
the positive value of any net operating loss under section 172 of the Internal Revenue
Code generated for the tax year of the addition. The resulting delayed depreciation
cannot be less than zero;

(10) job opportunity building zone income as provided under section 469.316;

(11) new text beginto the extent included in federal taxable income,new text end the amount of compensation
paid to members of the Minnesota National Guard or other reserve components of the
United States military for active service performed in Minnesota, excluding compensation
for services performed under the Active Guard Reserve (AGR) program. For purposes of
this clause, "active service" means (i) state active service as defined in section 190.05,
subdivision 5a
, clause (1); (ii) federally funded state active service as defined in section
190.05, subdivision 5b; or (iii) federal active service as defined in section 190.05,
subdivision 5c
, but "active service" excludes services performed exclusively for purposes
of basic combat training, advanced individual training, annual training, and periodic
inactive duty training; special training periodically made available to reserve members;
and service performed in accordance with section 190.08, subdivision 3;

(12) new text beginto the extent included in federal taxable income,new text end the amount of compensation
paid to Minnesota residents who are members of the armed forces of the United States or
United Nations for active duty performed outside Minnesotanew text begin under United States Code,
title 10, section 101(d); United States Code, title 32, section 101(12); or the authority of
the United Nations
new text end;

(13) an amount, not to exceed $10,000, equal to qualified expenses related to a
qualified donor's donation, while living, of one or more of the qualified donor's organs
to another person for human organ transplantation. For purposes of this clause, "organ"
means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
"human organ transplantation" means the medical procedure by which transfer of a human
organ is made from the body of one person to the body of another person; "qualified
expenses" means unreimbursed expenses for both the individual and the qualified donor
for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
may be subtracted under this clause only once; and "qualified donor" means the individual
or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
individual may claim the subtraction in this clause for each instance of organ donation for
transplantation during the taxable year in which the qualified expenses occur;

(14) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (8), or 19c, clause deleted text begin(16)deleted text endnew text begin (14)new text end, in the case
of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
of the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause
deleted text begin (16)deleted text endnew text begin (14)new text end, in the case of a shareholder of a corporation that is an S corporation, minus the
positive value of any net operating loss under section 172 of the Internal Revenue Code
generated for the tax year of the addition. If the net operating loss exceeds the addition for
the tax year, a subtraction is not allowed under this clause;

(15) to the extent included in federal taxable income, compensation paid to a
nonresident who is a service member as defined in United States Code, title 10, section
101(a)(5), for military service as defined in the Service Member Civil Relief Act, Public
Law 108-189, section 101(2); deleted text beginand
deleted text end

(16) international economic development zone income as provided under section
469.325deleted text begin.deleted text endnew text begin; and
new text end

new text begin (17) to the extent included in federal taxable income, the amount of national service
educational awards received from the National Service Trust under United States Code,
title 42, sections 12601 to 12604, for service in an approved AmeriCorps national service
program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for tax years beginning
after December 31, 2004, except that clause (17) is effective for tax years beginning
after December 31, 2006.
new text end

Sec. 5.

Minnesota Statutes 2006, section 290.01, subdivision 31, as amended by Laws
2007, chapter 1, section 3, is amended to read:


Subd. 31.

Internal Revenue Code.

Unless specifically defined otherwise, deleted text beginfor
taxable years beginning before January 1, 2006, and after December 31, 2006,
deleted text end "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text beginMay 18,
2006; and for taxable years beginning after December 31, 2005, and before January 1,
2007, "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended
through
deleted text end December 31, 2006.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
except the changes incorporated by federal changes are effective at the same time as the
changes were effective for federal purposes.
new text end

Sec. 6.

Minnesota Statutes 2006, section 290.06, subdivision 2c, is amended to read:


Subd. 2c.

Schedules of rates for individuals, estates, and trusts.

(a) The income
taxes imposed by this chapter upon married individuals filing joint returns and surviving
spouses as defined in section 2(a) of the Internal Revenue Code must be computed by
applying to their taxable net income the following schedule of rates:

(1) On the first deleted text begin$25,680deleted text endnew text begin $31,150new text end, 5.35 percent;

(2) On all over deleted text begin$25,680deleted text endnew text begin $31,150new text end, but not over deleted text begin$102,030deleted text endnew text begin $123,750new text end, 7.05 percent;

(3) On all over deleted text begin$102,030deleted text endnew text begin $123,750, but not over $400,000new text end, 7.85 percentnew text begin;
new text end

new text begin (4) On all over $400,000, 9 percentnew text end.

Married individuals filing separate returns, estates, and trusts must compute their
income tax by applying the above rates to their taxable income, except that the income
brackets will be one-half of the above amounts.

(b) The income taxes imposed by this chapter upon unmarried individuals must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first deleted text begin$17,570deleted text endnew text begin $21,310new text end, 5.35 percent;

(2) On all over deleted text begin$17,570deleted text endnew text begin $21,310new text end, but not over deleted text begin$57,710deleted text endnew text begin $69,990new text end, 7.05 percent;

(3) On all over deleted text begin$57,710deleted text endnew text begin $69,990, but not over $226,230new text end, 7.85 percentnew text begin;
new text end

new text begin (4) On all over $226,230, 9 percentnew text end.

(c) The income taxes imposed by this chapter upon unmarried individuals qualifying
as a head of household as defined in section 2(b) of the Internal Revenue Code must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first deleted text begin$21,630deleted text endnew text begin $26,230new text end, 5.35 percent;

(2) On all over deleted text begin$21,630deleted text endnew text begin $26,230new text end, but not over deleted text begin$86,910deleted text endnew text begin $105,410new text end, 7.05 percent;

(3) On all over deleted text begin$86,910deleted text endnew text begin $105,410, but not over $340,720new text end, 7.85 percentnew text begin;
new text end

new text begin (4) On all over $340,720, 9 percentnew text end.

(d) In lieu of a tax computed according to the rates set forth in this subdivision, the
tax of any individual taxpayer whose taxable net income for the taxable year is less than
an amount determined by the commissioner must be computed in accordance with tables
prepared and issued by the commissioner of revenue based on income brackets of not
more than $100. The amount of tax for each bracket shall be computed at the rates set
forth in this subdivision, provided that the commissioner may disregard a fractional part of
a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.

(e) An individual who is not a Minnesota resident for the entire year must compute
the individual's Minnesota income tax as provided in this subdivision. After the
application of the nonrefundable credits provided in this chapter, the tax liability must
then be multiplied by a fraction in which:

(1) the numerator is the individual's Minnesota source federal adjusted gross income
as defined in section 62 of the Internal Revenue Code and increased by the additions
required under section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), and (9),
and reduced by the Minnesota assignable portion of the subtraction for United States
government interest under section 290.01, subdivision 19b, clause (1), and the subtractions
under section 290.01, subdivision 19b, clauses (9), (10), (14), (15), and (16), after applying
the allocation and assignability provisions of section 290.081, clause (a), or 290.17; and

(2) the denominator is the individual's federal adjusted gross income as defined in
section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), and (9), and reduced by the
amounts specified in section 290.01, subdivision 19b, clauses (1), (9), (10), (14), (15),
and (16).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006.
new text end

Sec. 7.

Minnesota Statutes 2006, section 290.06, subdivision 2d, is amended to read:


Subd. 2d.

Inflation adjustment of brackets.

(a) For taxable years beginning after
December 31, deleted text begin2000deleted text endnew text begin 2007new text end, the minimum and maximum dollar amounts for each rate
bracket for which a tax is imposed in subdivision 2c shall be adjusted for inflation by the
percentage determined under paragraph (b). For the purpose of making the adjustment as
provided in this subdivision all of the rate brackets provided in subdivision 2c shall be the
rate brackets as they existed for taxable years beginning after December 31, deleted text begin1999deleted text endnew text begin 2006new text end,
and before January 1, deleted text begin2001deleted text endnew text begin 2008new text end. The rate applicable to any rate bracket must not be
changed. The dollar amounts setting forth the tax shall be adjusted to reflect the changes
in the rate brackets. The rate brackets as adjusted must be rounded to the nearest $10
amount. If the rate bracket ends in $5, it must be rounded up to the nearest $10 amount.

(b) The commissioner shall adjust the rate brackets and by the percentage determined
pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in
section 1(f)(3)(B) the word deleted text begin"1999"deleted text end new text begin"2006" new text endshall be substituted for the word "1992." For
deleted text begin 2001deleted text endnew text begin 2008new text end, the commissioner shall then determine the percent change from the 12 months
ending on August 31, deleted text begin1999deleted text endnew text begin 2006new text end, to the 12 months ending on August 31, deleted text begin2000deleted text endnew text begin 2007new text end, and
in each subsequent year, from the 12 months ending on August 31, deleted text begin1999deleted text endnew text begin 2006new text end, to the 12
months ending on August 31 of the year preceding the taxable year. The determination of
the commissioner pursuant to this subdivision shall not be considered a "rule" and shall
not be subject to the Administrative Procedure Act contained in chapter 14.

No later than December 15 of each year, the commissioner shall announce the
specific percentage that will be used to adjust the tax rate brackets.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006.
new text end

Sec. 8.

Minnesota Statutes 2006, section 290.06, is amended by adding a subdivision
to read:


new text begin Subd. 34. new text end

new text begin Dairy investment credit. new text end

new text begin (a) A dairy investment credit is allowed against
the tax due under this chapter equal to ten percent of the amount paid or incurred by the
taxpayer, on the first $500,000 of qualifying expenditures made in the qualifying period by
a person who raises dairy animals in this state.
new text end

new text begin (b) For purposes of this subdivision, "qualifying expenditures" means the amount
spent for:
new text end

new text begin (1) the acquisition, construction, or improvement of buildings or facilities, if related
to dairy animals;
new text end

new text begin (2) the development of pasture owned or rented by the taxpayer for the use of dairy
animals; or
new text end

new text begin (3) the acquisition of equipment for dairy animal housing, for confinement, for
animal feeding, for production and delivery of milk and other dairy products, and for
waste management, including the following, if related to dairy animals in this state:
new text end

new text begin (i) freestall barns;
new text end

new text begin (ii) fences;
new text end

new text begin (iii) watering facilities;
new text end

new text begin (iv) feed storage and handling equipment;
new text end

new text begin (v) milking parlors;
new text end

new text begin (vi) robotic equipment;
new text end

new text begin (vii) scales;
new text end

new text begin (viii) milk storage and cooling facilities;
new text end

new text begin (ix) bulk tanks;
new text end

new text begin (x) manure pumping and storage facilities;
new text end

new text begin (xi) digesters;
new text end

new text begin (xii) equipment used to produce energy; and
new text end

new text begin (xiii) on-farm processing and refrigerated trucks for delivery of milk and other
dairy products.
new text end

new text begin Qualifying expenditures, other than expenditures for development of pasture, only
include amounts that are capitalized and deducted under either section 167 or 179 of the
Internal Revenue Code in computing federal taxable income. Qualifying expenditures
for development of pasture must not include land acquisition and are limited to soil
preparation expenses, seed costs, planting costs, and weed control, which are allowed once
for each acre owned or rented by the taxpayer for the use of dairy animals and developed
into pasture during the qualifying period.
new text end

new text begin (c) The credit is limited to the liability for tax, as computed under this chapter for the
taxable year. If the amount of the credit determined under this section for any taxable year
exceeds this limitation, the excess is a dairy investment credit carryover to each of the 15
succeeding taxable years. The entire amount of the excess unused credit for the taxable
year is carried first to the earliest of the taxable years to which the credit may be carried
and then to each successive year to which the credit may be carried. The amount of the
unused credit which may be added under this paragraph shall not exceed the taxpayer's
liability for tax less the dairy investment credit for the taxable year.
new text end

new text begin (d) The qualifying period is that time after December 31, 2006, and before January
1, 2013.
new text end

new text begin (e) The $50,000 maximum credit applies at the entity level for partnerships, S
corporations, trusts, and estates as well as at the individual level. In the case of married
individuals, the credit is limited to $50,000 for a married couple.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006.
new text end

Sec. 9.

Minnesota Statutes 2006, section 290.067, subdivision 1, is amended to read:


Subdivision 1.

Amount of credit.

(a) A taxpayer may take as a credit against the
tax due from the taxpayer and a spouse, if any, under this chapter an amount equal to the
dependent care credit for which the taxpayer is eligible pursuant to the provisions of
section 21 of the Internal Revenue Code subject to the limitations provided in subdivision
2 except that in determining whether the child qualified as a dependent, income received
as a Minnesota family investment program grant or allowance to or on behalf of the child
must not be taken into account in determining whether the child received more than half
of the child's support from the taxpayer, and the provisions of section 32(b)(1)(D) of
the Internal Revenue Code do not apply.

(b) If a child who has not attained the age of deleted text beginsixdeleted text endnew text begin 13new text end years at the close of the taxable
year is cared for at a licensed family day care home operated by the child's parent, the
taxpayer is deemed to have paid employment-related expenses. If the child is 16 months
old or younger at the close of the taxable year, the amount of expenses deemed to have
been paid equals the maximum limit for one qualified individual under section 21(c) and
(d) of the Internal Revenue Code. If the child is older than 16 months of age but has not
attained the age of deleted text beginsixdeleted text endnew text begin 13new text end years at the close of the taxable year, the amount of expenses
deemed to have been paid equals the amount the licensee would charge for the care of a
child of the same age for the same number of hours of care.

(c) If a married couple:

(1) has a child who has not attained the age of one year at the close of the taxable
year;

(2) files a joint tax return for the taxable year; and

(3) does not participate in a dependent care assistance program as defined in section
129 of the Internal Revenue Code, in lieu of the actual employment related expenses paid
for that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of
(i) the combined earned income of the couple or (ii) the amount of the maximum limit for
one qualified individual under section 21(c) and (d) of the Internal Revenue Code will
be deemed to be the employment related expense paid for that child. The earned income
limitation of section 21(d) of the Internal Revenue Code shall not apply to this deemed
amount. These deemed amounts apply regardless of whether any employment-related
expenses have been paid.

(d) If the taxpayer is not required and does not file a federal individual income tax
return for the tax year, no credit is allowed for any amount paid to any person unless:

(1) the name, address, and taxpayer identification number of the person are included
on the return claiming the credit; or

(2) if the person is an organization described in section 501(c)(3) of the Internal
Revenue Code and exempt from tax under section 501(a) of the Internal Revenue Code,
the name and address of the person are included on the return claiming the credit.

In the case of a failure to provide the information required under the preceding sentence,
the preceding sentence does not apply if it is shown that the taxpayer exercised due
diligence in attempting to provide the information required.

In the case of a nonresident, part-year resident, or a person who has earned income
not subject to tax under this chapter including earned income excluded pursuant to section
290.01, subdivision 19b, clause (10) or (16), the credit determined under section 21 of the
Internal Revenue Code must be allocated based on the ratio by which the earned income
of the claimant and the claimant's spouse from Minnesota sources bears to the total earned
income of the claimant and the claimant's spouse.

For residents of Minnesota, the subtractions for military pay under section 290.01,
subdivision 19b
, clauses (11) and (12), are not considered "earned income not subject to
tax under this chapter."

For residents of Minnesota, the exclusion of combat pay under section 112 of the
Internal Revenue Code is not considered "earned income not subject to tax under this
chapter."

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006.
new text end

Sec. 10.

Minnesota Statutes 2006, section 290.0677, subdivision 1, is amended to read:


Subdivision 1.

Credit allowed.

(a) An individual is allowed a credit against the tax
due under this chapter equal to $59 for each month or portion thereof that the individual
was in active military service in a designated area after September 11, 2001, new text beginand before
January 1, 2007,
new text endwhile a Minnesota domiciliary.

(b) new text beginAn individual is allowed a credit against the tax due under this chapter equal to
$120 for each month or portion thereof that the individual was in active military service in
a designated area after December 31, 2006, while a Minnesota domiciliary.
new text end

new text begin (c) new text endFor active service performed after September 11, 2001, and before December 31,
2006, the individual may claim the credit in the taxable year beginning after December 31,
2005, and before January 1, 2007.

deleted text begin (c)deleted text end new text begin(d) new text endFor active service performed after December 31, 2006, the individual may
claim the credit for the taxable year in which the active service was performed.

deleted text begin (d)deleted text end new text begin(e) new text endIf deleted text begina Minnesota domiciliary is killed while performing active military service
in a designated area, the individual's surviving spouse or dependent child may take the
credit in the taxable year of the death. If a Minnesota domiciliary was killed while
performing active military service in a designated area between September 11, 2001, and
December 31, 2006, the individual's surviving spouse or dependent child may claim this
credit in the taxable year beginning after December 31, 2005, and before January 1, 2007
deleted text endnew text begin
an individual entitled to the credit died prior to January 1, 2006, the individual's estate or
heirs at law, if the individual's probate estate has closed or the estate was not probated,
may claim the credit
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006, except that paragraph (e) is effective retroactively for tax years
beginning after December 31, 2005.
new text end

Sec. 11.

new text begin [290.0678] CREDIT FOR HISTORIC STRUCTURE
REHABILITATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section the following terms
have the meanings given.
new text end

new text begin (b) "Certified historic structure" has the meaning given in section 47(c)(3)(A) of the
Internal Revenue Code.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed; certified historic structure. new text end

new text begin A taxpayer who claims a
credit under section 47(a)(2) of the Internal Revenue Code for the taxable year is allowed
a credit against the tax due under this chapter for rehabilitation of a certified historic
structure that is located in Minnesota. The credit is equal to 100 percent of the credit
allowed for rehabilitation of a certified historic structure under section 47(a)(2) of the
Internal Revenue Code, but is limited to credits generated by rehabilitation of certified
historic structures that are placed in service during the taxable year.
new text end

new text begin Subd. 3. new text end

new text begin Partnerships; multiple owners. new text end

new text begin Credits granted to a partnership, a
limited liability company taxed as a partnership, or multiple owners of property shall be
passed through to the partners, members, or owners, respectively, pro rata to each partner,
member, or owner based on their share of the entity's assets.
new text end

new text begin Subd. 4. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit that the taxpayer is eligible to
receive under this section exceeds the liability for tax under this chapter, the commissioner
shall refund the excess to the claimant.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds authorized under
this section is appropriated to the commissioner of revenue from the general fund.
new text end

new text begin Subd. 6. new text end

new text begin Manner of claiming. new text end

new text begin The commissioner shall prescribe the manner in
which the credit may be issued or claimed. This may include allowing the credit only as
a separately processed claim for refund.
new text end

new text begin Subd. 7. new text end

new text begin Report; determination of economic impact. new text end

new text begin The Minnesota Historical
Society shall annually determine the economic impact to the state from the rehabilitation
of property for which credits are provided under this section and provide a written report
on the impact to the committees on taxes of the senate and house of representatives, in
compliance with sections 3.195 and 3.197.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006.
new text end

Sec. 12.

Minnesota Statutes 2006, section 290.091, subdivision 3, is amended to read:


Subd. 3.

Exemption amount.

(a) For purposes of computing the alternative
minimum tax, the exemption amount isdeleted text begin:
deleted text end

deleted text begin (1) for taxable years beginning before January 1, 2006, the exemption determined
under section 55(d) of the Internal Revenue Code, as amended through December 31,
1992; and
deleted text end

deleted text begin (2)deleted text endnew text begin,new text end for taxable years beginning after December 31, 2005, $60,000 for married
couples filing joint returns, $30,000 for married individuals filing separate returns, estates,
and trusts, and $45,000 for unmarried individuals.

(b) The exemption amount determined under this subdivision is subject to the phase
out under section 55(d)(3) of the Internal Revenue Code, except that alternative minimum
taxable income as determined under this section must be substituted in the computation
of the phase outnew text begin, and the income threshold used in the phaseout must be adjusted for
inflation as provided in paragraph (c)
new text end.

(c) For taxable years beginning after December 31, 2006, the exemption amount
under paragraph (a), clause (2), new text beginand the income threshold for the phaseout under paragraph
(b)
new text endmust be adjusted for inflation. deleted text beginThe commissioner shall make the inflation adjustments
in accordance with section 1(f) of the Internal Revenue Code except that for the purposes
of this subdivision the percentage increase must be determined from the year starting
September 1, 2005, and ending August 31, 2006, as the base year for adjusting for inflation
for the tax year beginning after December 31, 2006.
deleted text endnew text begin The commissioner shall adjust the
exemption amount and phaseout threshold by the percentage determined pursuant to the
provisions of section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B)
the word "2005" shall be substituted for the word "1992." For 2007, the commissioner
shall then determine the percentage change from the 12 months ending on August 31,
2005, to the 12 months ending on August 31, 2006, and in each subsequent year, from the
12 months ending on August 31, 2005, to the 12 months ending on August 31 of the year
preceding the taxable year. The exemption amount and phaseout threshold as adjusted
must be rounded to the nearest $10. If the amount ends in $5, it must be rounded up to the
nearest $10 amount.
new text end The determination of the commissioner under this subdivision is not
a rule under the Administrative Procedure Act.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006.
new text end

Sec. 13.

Minnesota Statutes 2006, section 290.17, subdivision 2, is amended to read:


Subd. 2.

Income not derived from conduct of a trade or business.

The income of
a taxpayer subject to the allocation rules that is not derived from the conduct of a trade or
business must be assigned in accordance with paragraphs (a) to (f):

(a)(1) Subject to paragraphs (a)(2)deleted text begin,deleted text end new text beginand new text end(a)(3), deleted text beginand (a)(4),deleted text end income from wages as
defined in section 3401(a) and (f) of the Internal Revenue Code is assigned to this state if,
and to the extent that, the work of the employee is performed within it; all other income
from such sources is treated as income from sources without this state.

Severance pay shall be considered income from labor or personal or professional
services.

(2) In the case of an individual who is a nonresident of Minnesota and who is an
athlete or entertainer, income from compensation for labor or personal services performed
within this state shall be determined in the following manner:

(i) The amount of income to be assigned to Minnesota for an individual who is a
nonresident salaried athletic team employee shall be determined by using a fraction in
which the denominator contains the total number of days in which the individual is under
a duty to perform for the employer, and the numerator is the total number of those days
spent in Minnesota. For purposes of this paragraph, off-season training activities, unless
conducted at the team's facilities as part of a team imposed program, are not included in
the total number of duty days. Bonuses earned as a result of play during the regular season
or for participation in championship, play-off, or all-star games must be allocated under
the formula. Signing bonuses are not subject to allocation under the formula if they are
not conditional on playing any games for the team, are payable separately from any other
compensation, and are nonrefundable; and

(ii) The amount of income to be assigned to Minnesota for an individual who is a
nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's
athletic or entertainment performance in Minnesota shall be determined by assigning to
this state all income from performances or athletic contests in this state.

(3) For purposes of this section, amounts received by a nonresident as "retirement
income" as defined in section (b)(1) of the State Income Taxation of Pension Income
Act, Public Law 104-95, are not considered income derived from carrying on a trade
or business or from wages or other compensation for work an employee performed in
Minnesota, and are not taxable under this chapter.

deleted text begin (4) Wages, otherwise assigned to this state under clause (1) and not qualifying under
clause (3), are not taxable under this chapter if the following conditions are met:
deleted text end

deleted text begin (i) the recipient was not a resident of this state for any part of the taxable year in
which the wages were received; and
deleted text end

deleted text begin (ii) the wages are for work performed while the recipient was a resident of this state.
deleted text end

(b) Income or gains from tangible property located in this state that is not employed
in the business of the recipient of the income or gains must be assigned to this state.

(c) Income or gains from intangible personal property not employed in the business
of the recipient of the income or gains must be assigned to this state if the recipient of the
income or gains is a resident of this state or is a resident trust or estate.

Gain on the sale of a partnership interest is allocable to this state in the ratio of the
original cost of partnership tangible property in this state to the original cost of partnership
tangible property everywhere, determined at the time of the sale. If more than 50 percent
of the value of the partnership's assets consists of intangibles, gain or loss from the sale
of the partnership interest is allocated to this state in accordance with the sales factor of
the partnership for its first full tax period immediately preceding the tax period of the
partnership during which the partnership interest was sold.

Gain on the sale of goodwill or income from a covenant not to compete that is
connected with a business operating all or partially in Minnesota is allocated to this state
to the extent that the income from the business in the year preceding the year of sale was
assignable to Minnesota under subdivision 3.

When an employer pays an employee for a covenant not to compete, the income
allocated to this state is in the ratio of the employee's service in Minnesota in the calendar
year preceding leaving the employment of the employer over the total services performed
by the employee for the employer in that year.

(d) Income from winnings on a bet made by an individual while in Minnesota is
assigned to this state. In this paragraph, "bet" has the meaning given in section 609.75,
subdivision 2
, as limited by section 609.75, subdivision 3, clauses (1), (2), and (3).

(e) All items of gross income not covered in paragraphs (a) to (d) and not part of the
taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.

(f) For the purposes of this section, working as an employee shall not be considered
to be conducting a trade or business.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006.
new text end

Sec. 14.

Minnesota Statutes 2006, section 290.92, is amended by adding a subdivision
to read:


new text begin Subd. 31. new text end

new text begin Payments to persons who are not employees. new text end

new text begin (a) For purposes of this
subdivision, "contractor" means a person carrying on a trade or business described in
industry code numbers 23 through 238990 of the North American Industry Classification
System.
new text end

new text begin (b) A contractor who makes payments to an individual, other than an employee, for
work must deduct and withhold two percent of the payment as Minnesota withholding
tax when the amount the contractor paid to that individual during the calendar year
exceeds $600.
new text end

new text begin (c) A payment subject to withholding under this subdivision must be treated as if
the payment were a wage paid by an employer to an employee. The requirements in the
definitions of "employee" and "employer" in subdivision 1 relating to geographic location
apply in determining whether withholding tax applies under this subdivision, but without
regard to whether the contractor or the individual otherwise satisfy the definition of an
employer or an employee. Each recipient of a payment subject to withholding under this
subdivision must furnish the contractor with a statement of the recipient's name, address,
and Social Security account number.
new text end

new text begin (d) By February 1 of each year the commissioner must report to the committees of
the house and senate with jurisdiction over taxes, in compliance with Minnesota Statutes,
sections 3.195 and 3.197, on withholding payments received under this section. The report
must include information on the number and amount of payments received, and on the
types of contractors making payments, grouped by specialty skills definitions provided in
the North American Industry Classification System.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for payments made after July 31,
2007.
new text end

Sec. 15.

Minnesota Statutes 2006, section 290A.03, subdivision 15, as amended by
Laws 2007, chapter 1, section 4, is amended to read:


Subd. 15.

Internal Revenue Code.

deleted text beginFor taxable years beginning before January 1,
2006, and after December 31, 2006,
deleted text end "Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended through deleted text beginMay 18, 2006; and for taxable years beginning after
December 31, 2005, and before January 1, 2007, "Internal Revenue Code" means the
Internal Revenue Code of 1986, as amended through
deleted text end December 31, 2006.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property tax refunds based on
property taxes payable on or after December 31, 2006, and rent paid on or after December
31, 2005.
new text end

ARTICLE 6

SALES AND USE TAXES

Section 1.

Minnesota Statutes 2006, section 37.13, is amended by adding a subdivision
to read:


new text begin Subd. 3. new text end

new text begin Capital improvements. new text end

new text begin The society shall spend the amount of sales
tax retained under section 289A.31, subdivision 7, paragraph (f), exclusively to make
capital improvements to state-owned buildings and facilities on the State Fairgrounds.
The society shall match the amount retained with an equal amount from proceeds from
special assessments levied against commercial exhibits, concessions, and rentals, and
other special user fees specifically designated for capital improvements.
new text end

Sec. 2.

Minnesota Statutes 2006, section 289A.31, subdivision 7, is amended to read:


Subd. 7.

Sales and use tax.

(a) The sales and use tax required to be collected by the
retailer under chapter 297A constitutes a debt owed by the retailer to Minnesota, and the
sums collected must be held as a special fund in trust for the state of Minnesota.

A retailer who does not maintain a place of business within this state as defined by
section 297A.66, subdivision 1, shall not be indebted to Minnesota for amounts of tax that
it was required to collect but did not collect unless the retailer knew or had been advised
by the commissioner of its obligation to collect the tax.

(b) The use tax required to be paid by a purchaser is a debt owed by the purchaser
to Minnesota.

(c) The tax imposed by chapter 297A, and interest and penalties, is a personal debt
of the individual required to file a return from the time the liability arises, irrespective
of when the time for payment of that liability occurs. The debt is, in the case of the
executor or administrator of the estate of a decedent and in the case of a fiduciary, that
of the individual in an official or fiduciary capacity unless the individual has voluntarily
distributed the assets held in that capacity without reserving sufficient assets to pay the tax,
interest, and penalties, in which case the individual is personally liable for the deficiency.

(d) Liability for payment of sales and use taxes includes any responsible person or
entity described in the personal liability provisions of section 270C.56.

(e) Any amounts collected, even if erroneously or illegally collected, from a
purchaser under a representation that they are taxes imposed under chapter 297A are
state funds from the time of collection and must be reported on a return filed with the
commissioner.

new text begin (f) The tax imposed under chapter 297A on sales of tickets to the premises of or
events sponsored by the Minnesota State Agricultural Society and conducted on the State
Fairgrounds during the period of annual State Fair may be retained by the Minnesota
State Agricultural Society if the funds are used and matched as required under section
37.13, subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases after June
30, 2007.
new text end

Sec. 3.

Minnesota Statutes 2006, section 297A.61, subdivision 12, is amended to read:


Subd. 12.

Farm machinery.

(a) "Farm machinery" means new or used machinery,
equipment, implements, accessories, and contrivances used directly and principally in
agricultural production of tangible personal property intended to be sold ultimately at
retail including, but not limited to:

(1) machinery for the preparation, seeding, or cultivation of soil for growing
agricultural crops;

(2) barn cleaners, milking systems, grain deleted text begindryers,deleted text endnew text begin drying systems, grain bins,new text end feeding
systems including stationary feed bunks, and similar installations, whether or not the
equipment is installed by the seller and becomes part of the real property; and

(3) irrigation equipment sold for exclusively agricultural use, including pumps, pipe
fittings, valves, sprinklers, and other equipment necessary to the operation of an irrigation
system when sold as part of an irrigation system, whether or not the equipment is installed
by the seller and becomes part of the real property.

(b) Farm machinery does not include:

(1) repair or replacement parts;

(2) tools, shop equipment, deleted text begingrain bins,deleted text end fencing material, communication equipment,
and other farm supplies;

(3) motor vehicles taxed under chapter 297B;

(4) snowmobiles or snow blowers;

(5) lawn mowers except those used in the production of sod for sale, or garden-type
tractors or garden tillers; or

(6) machinery, equipment, implements, accessories, and contrivances used directly in
the production of horses not raised for slaughter, fur-bearing animals, or research animals.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2007.
new text end

Sec. 4.

Minnesota Statutes 2006, section 297A.668, is amended by adding a
subdivision to read:


new text begin Subd. 8. new text end

new text begin Manufactured and modular housing. new text end

new text begin (a) Notwithstanding other
subdivisions of this section, a sale of a manufactured or modular home shall be sourced to
the site where the housing is first set up or installed.
new text end

new text begin (b) For purposes of this section, "manufactured home" has the meaning given
in section 327.31, subdivision 6. For purposes of this section, "modular home" means
a building or structural unit that has been substantially manufactured or constructed,
in whole or in part, at an off-site location, with the final assembly occurring on-site
alone or with other units and attached to a permanent foundation site and occupied
as a single-family dwelling. Modular home construction must comply with applicable
standards adopted in Minnesota Rules authorized under chapter 16B. A modular home
does not include a structure subject to the requirements of the National Manufactured
Home Construction and Safety Standards Act of 1974 or a manufactured home.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2007.
new text end

Sec. 5.

Minnesota Statutes 2006, section 297A.67, subdivision 7, is amended to read:


Subd. 7.

Drugs; medical devices.

(a) Sales of the following drugs and medical
devices are exempt:

(1) drugs for human use, including over-the-counter drugs;

(2) single-use finger-pricking devices for the extraction of blood and other single-use
devices and single-use diagnostic agents used in diagnosing, monitoring, or treating
diabetes;

(3) insulin and medical oxygen for human use, regardless of whether prescribed
or sold over the counter;

(4) prosthetic devices;

(5) durable medical equipment for home use only;

(6) mobility enhancing equipment; deleted text beginand
deleted text end

(7) prescription corrective eyeglassesdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (8) kidney dialysis equipment, including repair and replacement parts.
new text end

(b) For purposes of this subdivision:

(1) "Drug" means a compound, substance, or preparation, and any component of
a compound, substance, or preparation, other than food and food ingredients, dietary
supplements, or alcoholic beverages that is:

(i) recognized in the official United States Pharmacopoeia, official Homeopathic
Pharmacopoeia of the United States, or official National Formulary, and supplement
to any of them;

(ii) intended for use in the diagnosis, cure, mitigation, treatment, or prevention
of disease; or

(iii) intended to affect the structure or any function of the body.

(2) "Durable medical equipment" means equipment, including repair and
replacement parts, but not including mobility enhancing equipment, that:

(i) can withstand repeated use;

(ii) is primarily and customarily used to serve a medical purpose;

(iii) generally is not useful to a person in the absence of illness or injury; and

(iv) is not worn in or on the body.

(3) "Mobility enhancing equipment" means equipment, including repair and
replacement parts, but not including durable medical equipment, that:

(i) is primarily and customarily used to provide or increase the ability to move from
one place to another and that is appropriate for use either in a home or a motor vehicle;

(ii) is not generally used by persons with normal mobility; and

(iii) does not include any motor vehicle or equipment on a motor vehicle normally
provided by a motor vehicle manufacturer.

(4) "Over-the-counter drug" means a drug that contains a label that identifies the
product as a drug as required by Code of Federal Regulations, title 21, section 201.66. The
label must include a "drug facts" panel or a statement of the active ingredients with a list of
those ingredients contained in the compound, substance, or preparation. Over-the-counter
drugs do not include grooming and hygiene products, regardless of whether they otherwise
meet the definition. "Grooming and hygiene products" are soaps, cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and sunscreens.

(5) "Prescribed" and "prescription" means a direction in the form of an order,
formula, or recipe issued in any form of oral, written, electronic, or other means of
transmission by a duly licensed health care professional.

(6) "Prosthetic device" means a replacement, corrective, or supportive device,
including repair and replacement parts, worn on or in the body to:

(i) artificially replace a missing portion of the body;

(ii) prevent or correct physical deformity or malfunction; or

(iii) support a weak or deformed portion of the body.

Prosthetic device does not include corrective eyeglasses.

new text begin (7) "Kidney dialysis equipment" means equipment that:
new text end

new text begin (i) is used to remove waste products that build up in the blood when the kidneys are
not able to do so on their own; and
new text end

new text begin (ii) can withstand repeated use, including multiple use by a single patient.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2006, section 297A.68, is amended by adding a subdivision
to read:


new text begin Subd. 42. new text end

new text begin Agricultural feed processing facility; capital equipment. new text end

new text begin Capital
equipment purchased by a contractor for incorporation into an agricultural feed processing
facility is exempt from sales tax when purchased by the contractor if the following
conditions are met:
new text end

new text begin (1) the equipment would meet the definition of capital equipment under subdivision
5 if purchased by the user instead of the contractor;
new text end

new text begin (2) the equipment was incorporated into a facility that was constructed in part to
replace manufacturing capability destroyed in a fire; and
new text end

new text begin (3) the processing facility is located in the city of Freeport.
new text end

new text begin The user of the equipment must apply for the refund and the maximum amount of the
refund is limited to $70,000. Refund provisions for taxes paid under subdivision 5 apply.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2002, and before December 31, 2003.
new text end

Sec. 7.

Minnesota Statutes 2006, section 297A.69, subdivision 2, is amended to read:


Subd. 2.

Materials consumed in agricultural production.

Materials stored, used,
or consumed in agricultural production of personal property intended to be sold ultimately
at retail are exempt, whether or not the item becomes an ingredient or constituent part
of the property produced. Materials that qualify for this exemption include, but are not
limited to, the following:

(1) feeds, seeds, trees, fertilizers, and herbicides, including when purchased for use
by farmers in a federal or state farm or conservation program;

(2) materials sold to a veterinarian to be used or consumed in the care, medication,
and treatment of agricultural production animals and horses;

(3) chemicals, including chemicals used for cleaning food processing machinery
and equipment;

(4) materials, including chemicals, fuels, and electricity purchased by persons
engaged in agricultural production to treat waste generated as a result of the production
process;

(5) fuels, electricity, gas, and steam used or consumed in the production process,
deleted text begin except thatdeleted text endnew text begin includingnew text end electricity, gas, or steam used for space heating, cooling, or lighting
deleted text begin is exempt if (i) it is in excess of the average climate control or lighting for the production
area, and (ii) it is necessary to produce that particular product
deleted text endnew text begin of facilities housing
agricultural animals
new text end;

(6) petroleum products and lubricants;

(7) packaging materials, including returnable containers used in packaging food and
beverage products; and

(8) accessory tools and equipment that are separate detachable units with an ordinary
useful life of less than 12 months used in producing a direct effect upon the product.

Machinery, equipment, implements, tools, accessories, appliances, contrivances, and
furniture and fixtures, except those listed in this clause are not included within this
exemption.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2006, section 297A.69, subdivision 3, is amended to read:


Subd. 3.

Repair and replacement parts.

Repair and replacement partsdeleted text begin, except tires,deleted text end
used for maintenance or repair of farm machinery, logging equipment, and aquaculture
production equipment are exempt, if the part replaces a machinery part assigned a specific
or generic part number by the manufacturer of the machinery.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2007.
new text end

Sec. 9.

Minnesota Statutes 2006, section 297A.70, subdivision 3, is amended to read:


Subd. 3.

Sales of certain goods and services to government.

(a) The following
sales to or use by the specified governments and political subdivisions of the state are
exempt:

(1) repair and replacement parts for emergency rescue vehicles, fire trucks, and
fire apparatus to a political subdivision;

(2) machinery and equipment, except for motor vehicles, used directly for mixed
municipal solid waste management services at a solid waste disposal facility as defined in
section 115A.03, subdivision 10;

(3) chore and homemaking services to a political subdivision of the state to be
provided to elderly or disabled individuals;

(4) telephone services to the Department of Administration that are used to provide
telecommunications services through the intertechnologies revolving fund;

(5) firefighter personal protective equipment as defined in paragraph (b), if purchased
or authorized by and for the use of an organized fire department, fire protection district, or
fire company regularly charged with the responsibility of providing fire protection to the
state or a political subdivision;

(6) bullet-resistant body armor that provides the wearer with ballistic and trauma
protection, if purchased by a law enforcement agency of the state or a political subdivision
of the state, or a licensed peace officer, as defined in section 626.84, subdivision 1;

(7) motor vehicles purchased or leased by political subdivisions of the state if the
vehicles are exempt from registration under section 168.012, subdivision 1, paragraph (b),
exempt from taxation under section 473.448, or exempt from the motor vehicle sales tax
under section 297B.03, clause (12);

(8) equipment designed to process, dewater, and recycle biosolids for wastewater
treatment facilities of political subdivisions, and materials incidental to installation of
that equipment;

(9) sales to a town of gravel and of machinery, equipment, and accessories, except
motor vehicles, used exclusively for road and bridge maintenance, and leases by a town of
motor vehicles exempt from tax under section 297B.03, clause (10); deleted text beginand
deleted text end

(10) the removal of trees, bushes, or shrubs for the construction and maintenance
of roads, trails, or firebreaks when purchased by an agency of the state or a political
subdivision of the statedeleted text begin.deleted text endnew text begin; and
new text end

new text begin (11) the sale of railroad cars and engines and related equipment, including repair
parts, used in a commuter rail transportation system operated under sections 174.80 to
174.90.
new text end

(b) For purposes of this subdivision, "firefighters personal protective equipment"
means helmets, including face shields, chin straps, and neck liners; bunker coats and
pants, including pant suspenders; boots; gloves; head covers or hoods; wildfire jackets;
protective coveralls; goggles; self-contained breathing apparatus; canister filter masks;
personal alert safety systems; spanner belts; optical or thermal imaging search devices;
and all safety equipment required by the Occupational Safety and Health Administration.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
December 31, 2006.
new text end

Sec. 10.

Minnesota Statutes 2006, section 297A.70, subdivision 8, is amended to read:


Subd. 8.

Regionwide public safety radio communication system; products and
services.

Products and services including, but not limited to, end user equipment used
for construction, ownership, operation, maintenance, and enhancement of the backbone
system of the regionwide public safety radio communication system established under
sections 403.21 to , are exempt. For purposes of this subdivision, backbone
system is defined in section 403.21, subdivision 9. This subdivision is effective for
purchases, sales, storage, use, or consumption for use in the first and second phases of the
system, as defined in section 403.21, subdivisions 3, 10, and 11, deleted text beginanddeleted text end that portion of the
third phase of the system that is located in the southeast district of the State Patrol and
the counties of Benton, Sherburne, Stearns, and Wrightnew text begin, and that portion of the system
that is located in Itasca County
new text end.

Sec. 11.

Minnesota Statutes 2006, section 297A.70, is amended by adding a
subdivision to read:


new text begin Subd. 17. new text end

new text begin Sales to fire departments. new text end

new text begin All sales of tangible personal property to,
or authorized by and for the use of, an independent, nonprofit firefighting corporation
or a statutorily created or municipal fire department that are used directly in providing
emergency response services and emergency response training are exempt.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2007.
new text end

Sec. 12.

Minnesota Statutes 2006, section 297A.71, subdivision 23, is amended to read:


Subd. 23.

Construction materials for qualified low-income housing projects.

(a)
Purchases of materials and supplies used or consumed in and equipment incorporated into
the construction, improvement, or expansion of qualified low-income housing projects are
exempt from the tax imposed under this chapter if the owner of the qualified low-income
housing project is:

(1) the public housing agency or housing and redevelopment authority of a political
subdivision;

(2) an entity exercising the powers of a housing and redevelopment authority within
a political subdivision;

(3) a limited partnership in which the sole new text beginor managingnew text end general partner is an
authority under clause (1) or an entity under clause (2)new text begin or (4)new text end;

(4) a nonprofit corporation subject to the provisions of chapter 317A, and qualifying
under section 501(c)(3) or 501(c)(4) of the Internal Revenue Code of 1986, as amended; or

(5) an owner entity, as defined in Code of Federal Regulations, title 24, part 941.604,
for a qualified low-income housing project described in paragraph (b), clause (5).

This exemption applies regardless of whether the purchases are made by the owner
of the facility or a contractor.

(b) For purposes of this exemption, "qualified low-income housing project" means:

(1) a housing or mixed use project in which at least 20 percent of the residential units
are qualifying low-income rental housing units as defined in section 273.126;

(2) a federally assisted low-income housing project financed by a mortgage insured
or held by the United States Department of Housing and Urban Development under
United States Code, title 12, section 1701s, 1715l(d)(3), 1715l(d)(4), or 1715z-1; United
States Code, title 42, section 1437f; the Native American Housing Assistance and
Self-Determination Act, United States Code, title 25, section 4101 et seq.; or any similar
successor federal low-income housing program;

(3) a qualified low-income housing project as defined in United States Code, title
26, section 42(g), meeting all of the requirements for a low-income housing credit under
section 42 of the Internal Revenue Code regardless of whether the project actually applies
for or receives a low-income housing credit;

(4) a project that will be operated in compliance with Internal Revenue Service
revenue procedure 96-32; or

(5) a housing or mixed use project in which all or a portion of the residential units
are subject to the requirements of section 5 of the United States Housing Act of 1937.

(c) For a project, a portion of which is not used for low-income housing units,
the amount of purchases that are exempt under this subdivision must be determined by
multiplying the total purchases, as specified in paragraph (a), by the ratio of:

(1) the total gross square footage of units subject to the income limits under section
273.126, the financing for the project, the federal low-income housing tax credit, revenue
procedure 96-32, or section 5 of the United States Housing Act of 1937, as applicable
to the project; and

(2) the total gross square footage of all units in the project.

(d) The tax must be imposed and collected as if the rate under section 297A.62,
subdivision 1
, applied, and then refunded in the manner provided in section 297A.75.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2007.
new text end

Sec. 13.

Minnesota Statutes 2006, section 297A.71, is amended by adding a
subdivision to read:


new text begin Subd. 40. new text end

new text begin Brainerd and Baxter wastewater treatment facility. new text end

new text begin Materials and
supplies used in, and equipment incorporated into, the construction of a joint wastewater
treatment facility servicing the cities of Brainerd and Baxter are partially exempt. This
exemption is for purchases made before July 1, 2010. The tax must be imposed and
collected as if the rate under section 297A.62, subdivision 1, applied. The cities must
apply for a refund of 50 percent of taxes paid on purchases partially exempt under this
subdivision as provided under section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 1, 2007.
new text end

Sec. 14.

Minnesota Statutes 2006, section 297A.71, is amended by adding a
subdivision to read:


new text begin Subd. 41. new text end

new text begin Baxter water treatment facility. new text end

new text begin Materials and supplies used in, and
equipment incorporated into, the construction of a water treatment facility owned by the
city of Baxter are partially exempt. This exemption is for purchases made before July
1, 2009. The tax must be imposed and collected as if the rate under section 297A.62,
subdivision 1, applied. The city must apply for a refund of 50 percent of the taxes paid on
purchases partially exempt under this subdivision as provided under section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
May 1, 2007.
new text end

Sec. 15.

Minnesota Statutes 2006, section 297A.71, is amended by adding a
subdivision to read:


new text begin Subd. 42. new text end

new text begin Buffalo wastewater treatment facility. new text end

new text begin Materials and supplies used
in, and equipment incorporated into, the construction, improvement, or expansion of a
wastewater treatment facility owned by the city of Buffalo are partially exempt. This
section is effective for purchases made before December 31, 2008. The tax must be
imposed and collected as if the rate under section 297A.62, subdivision 1, applied. The
city must apply for a refund of 50 percent of the taxes paid on purchases partially exempt
under this subdivision as provided under section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after March 1, 2007.
new text end

Sec. 16.

Minnesota Statutes 2006, section 297A.71, is amended by adding a
subdivision to read:


new text begin Subd. 43. new text end

new text begin Burnsville surface water treatment plant. new text end

new text begin Materials and supplies
used or consumed in, and equipment incorporated into, the construction, improvement,
installation, or repair of facilities and improvements associated with a surface water
treatment plant project located within and owned by the city of Burnsville are partially
exempt. This exemption is for purchases made before January 1, 2010. The tax must be
imposed and collected as if the rate under section 297A.62, subdivision 1, applied. The
city must apply for a refund of 50 percent of the taxes paid on purchases partially exempt
under this subdivision as provided in section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
March 15, 2007.
new text end

Sec. 17.

Minnesota Statutes 2006, section 297A.71, is amended by adding a
subdivision to read:


new text begin Subd. 44. new text end

new text begin Emily; wastewater treatment facility. new text end

new text begin Materials and supplies used in
and equipment incorporated into the construction of a wastewater treatment facility in the
city of Emily are partially exempt. This exemption is for purchases made before January
1, 2007. The tax must be imposed and collected as if the rate under section 297A.62,
subdivision 1, applied. The city must apply for a refund of 50 percent of any tax paid on
purchases partially exempt under this subdivision as provided in section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
January 1, 2005.
new text end

Sec. 18.

Minnesota Statutes 2006, section 297A.71, is amended by adding a
subdivision to read:


new text begin Subd. 45. new text end

new text begin Goodview; water treatment facilities. new text end

new text begin Materials and supplies used in,
and equipment incorporated into, the construction and expansion of up to two water
treatment facilities in the city of Goodview are partially exempt. This exemption is for
purchases made before January 1, 2009. The tax must be imposed and collected as if the
rate under section 297A.62, subdivision 1, applied. The city must apply for a refund
of 50 percent of the taxes paid on purchases partially exempt under this subdivision as
provided in section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2007.
new text end

Sec. 19.

Minnesota Statutes 2006, section 297A.71, is amended by adding a
subdivision to read:


new text begin Subd. 46. new text end

new text begin Harris wastewater treatment facility. new text end

new text begin Materials and supplies used in,
and equipment incorporated into, the construction of a wastewater treatment facility and a
water treatment plant owned by the city of Harris are exempt. This exemption is effective
for purchases made after May 31, 2006, and on or before June 30, 2008. The tax must be
imposed and collected as if the rate under section 297A.62, subdivision 1, applied. The
city must apply for a refund of 100 percent of the taxes paid on purchases exempt under
this subdivision as provided in section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 20.

Minnesota Statutes 2006, section 297A.71, is amended by adding a
subdivision to read:


new text begin Subd. 47. new text end

new text begin Milaca water treatment facility. new text end

new text begin Materials and supplies used in, and
equipment incorporated into, the construction of a water treatment facility owned by the
city of Milaca are partially exempt. This exemption is for purchases made before February
15, 2007. The tax must be imposed and collected as if the rate under section 297A.62,
subdivision 1, applied. The city must apply for a refund of 50 percent of the taxes paid on
purchases partially exempt under this subdivision as provided in section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made before
February 15, 2007.
new text end

Sec. 21.

Minnesota Statutes 2006, section 297A.71, is amended by adding a
subdivision to read:


new text begin Subd. 48. new text end

new text begin Minnetonka water treatment facility; sales tax exemption. new text end

new text begin Materials
and supplies used in, and equipment incorporated into, the construction of a water
treatment facility owned by the city of Minnetonka are partially exempt from the sales
and use tax under this chapter. This exemption is for purchases made before December
31, 2006. The tax must be imposed and collected as if the rate under section 297A.62,
subdivision 1, applied. The city must apply for a refund of 50 percent of the taxes paid on
purchases partially exempt under this subdivision as provided in section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made before
December 31, 2006.
new text end

Sec. 22.

Minnesota Statutes 2006, section 297A.71, is amended by adding a
subdivision to read:


new text begin Subd. 49. new text end

new text begin New Prague wastewater treatment facility. new text end

new text begin Materials and supplies used
in, and equipment incorporated into, the construction, improvement, and expansion of a
wastewater treatment facility owned by the city of New Prague is partially exempt. This
exemption is effective for purchases made on or before December 31, 2008. The tax must
be imposed and collected as if the rate under section 297A.62, subdivision 1, applied. The
city must apply for a refund of 50 percent of the taxes paid on purchases partially exempt
under this subdivision as provided in section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2007.
new text end

Sec. 23.

Minnesota Statutes 2006, section 297A.71, is amended by adding a
subdivision to read:


new text begin Subd. 50. new text end

new text begin New York Mills wastewater treatment facility. new text end

new text begin Materials and supplies
used in, and equipment incorporated into, the construction of a wastewater treatment
facility owned by the city of New York Mills are partially exempt. This exemption is for
purchases made before January 1, 2008. The tax must be imposed and collected as if the
rate under section 297A.62, subdivision 1, applied. The city must apply for a refund of
50 percent of the taxes paid on purchases exempt under this subdivision as provided
in section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made before
January 1, 2008.
new text end

Sec. 24.

Minnesota Statutes 2006, section 297A.71, is amended by adding a
subdivision to read:


new text begin Subd. 51. new text end

new text begin Pelican Rapids wastewater treatment facility. new text end

new text begin Materials and supplies
used in, and equipment incorporated into, the improvement and expansion of a wastewater
treatment facility owned by the city of Pelican Rapids are partially exempt. This
exemption is effective for purchases made on or before December 31, 2008. The tax must
be imposed and collected as if the rate under section 297A.62, subdivision 1, applied. The
city must apply for a refund of 50 percent of the taxes paid on purchases partially exempt
under this subdivision as provided in section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made
beginning on the day following final enactment.
new text end

Sec. 25.

Minnesota Statutes 2006, section 297A.71, is amended by adding a
subdivision to read:


new text begin Subd. 52. new text end

new text begin Princeton; wastewater treatment facility. new text end

new text begin Materials and supplies used
in, and equipment incorporated into, the construction and expansion of a wastewater
treatment facility, including construction of a phosphorous reduction facility, in the city
of Princeton are partially exempt. This exemption is for purchases made before January
1, 2012. The tax must be imposed and collected as if the rate under section 297A.62,
subdivision 1, applied. The city must apply for a refund of 50 percent of the taxes paid on
purchases partially exempt under this subdivision as provided in section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
the day following final enactment.
new text end

Sec. 26.

Minnesota Statutes 2006, section 297A.71, is amended by adding a
subdivision to read:


new text begin Subd. 53. new text end

new text begin Willmar wastewater treatment facility. new text end

new text begin Materials and supplies used
in, and equipment incorporated into, the construction, improvement, or expansion of a
wastewater treatment facility owned by the city of Willmar are partially exempt. This
exemption is effective for purchases made before July 1, 2012. The tax must be imposed
and collected as if the rate under section 297A.62, subdivision 1, applied. The city
must apply for a refund of 50 percent of the taxes paid on purchases exempt under this
subdivision as provided in section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2007.
new text end

Sec. 27.

Minnesota Statutes 2006, section 297A.71, is amended by adding a
subdivision to read:


new text begin Subd. 54. new text end

new text begin Bioscience research facilities. new text end

new text begin (a) Building materials and supplies used
or consumed in, and equipment incorporated into, the construction, improvement, or
expansion of bioscience research facilities are exempt, if:
new text end

new text begin (1) the facilities are utilized by a research institute to conduct cancer research under
a collaboration agreement with the Mayo Clinic;
new text end

new text begin (2) the institute is an independent research unit of the University of Minnesota; and
new text end

new text begin (3) the facilities are owned by a public foundation.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under section 297A.62,
subdivision 1, applied and then refunded in the manner provided in section 297A.75.
new text end

new text begin (c) This subdivision is effective for sales and purchases occurring after June 30,
2006, and before January 1, 2009.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to sales and purchases made after June 30, 2006, and before January 1, 2009.
new text end

Sec. 28.

Minnesota Statutes 2006, section 297A.71, is amended by adding a
subdivision to read:


new text begin Subd. 55. new text end

new text begin Biobusiness center. new text end

new text begin Materials, supplies, used or consumed in, and
equipment incorporated into, the initial construction of a biobusiness center and related
infrastructure in the city of Rochester for which the city received funding for the related
infrastructure under Laws 2006, chapter 258, section 21, subdivision 7, are exempt.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2007.
new text end

Sec. 29.

Minnesota Statutes 2006, section 297A.75, subdivision 1, is amended to read:


Subdivision 1.

Tax new text beginimposed and new text endcollected.

The tax on the gross receipts from
the sale of the following exempt items must be imposed and collected as if the sale
were taxable and the rate under section 297A.62, subdivision 1, applied. The exempt
items include:

(1) capital equipment exempt under section 297A.68, subdivision 5;

(2) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;

(3) building materials for mineral production facilities exempt under section
297A.71, subdivision 14;

(4) building materials for correctional facilities under section 297A.71, subdivision
3
;

(5) building materials used in a residence for disabled veterans exempt under section
297A.71, subdivision 11;

(6) elevators and building materials exempt under section 297A.71, subdivision 12;

(7) building materials for the Long Lake Conservation Center exempt under section
297A.71, subdivision 17;

deleted text begin (8) materials, supplies, fixtures, furnishings, and equipment for a county law
enforcement and family service center under section deleted text begin297A.71, subdivision 26deleted text end;
deleted text end

deleted text begin (9)deleted text endnew text begin (8)new text end materials and supplies for qualified low-income housing under section
297A.71, subdivision 23;

deleted text begin (10)deleted text endnew text begin (9)new text end materials, supplies, and equipment for municipal electric utility facilities
under section 297A.71, subdivision 35;

deleted text begin (11)deleted text endnew text begin (10)new text end equipment and materials used for the generation, transmission, and
distribution of electrical energy and an aerial camera package exempt under section
297A.68, subdivision 37; deleted text beginand
deleted text end

deleted text begin (12)deleted text endnew text begin (11)new text end tangible personal property and taxable services and construction materials,
supplies, and equipment exempt under section 297A.68, subdivision 41deleted text begin.deleted text endnew text begin; and
new text end

new text begin (12) building materials, supplies, and equipment of bioscience research facilities
exempt under section 297A.71, subdivision 54.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 30.

Minnesota Statutes 2006, section 297A.75, is amended by adding a
subdivision to read:


new text begin Subd. 1a. new text end

new text begin Tax collected; other. new text end

new text begin For taxes collected on purchases exempted under
sections 13 to 26, the percentage of the tax listed in each section must be refunded as
provided in this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 31.

Minnesota Statutes 2006, section 297A.75, subdivision 2, is amended to read:


Subd. 2.

Refund; eligible persons.

Upon application on forms prescribed by the
commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
must be paid to the applicant. Only the following persons may apply for the refund:

(1) for subdivision 1, clauses (1) to (3), the applicant must be the purchaser;

(2) for deleted text beginsubdivisiondeleted text endnew text begin subdivisionsnew text end 1, clauses (4)deleted text begin,deleted text endnew text begin andnew text end (7)deleted text begin, and (8),deleted text endnew text begin; and 1a,new text end the applicant
must be the governmental subdivision;

(3) for subdivision 1, clause (5), the applicant must be the recipient of the benefits
provided in United States Code, title 38, chapter 21;

(4) for subdivision 1, clause (6), the applicant must be the owner of the homestead
property;

(5) for subdivision 1, clause deleted text begin(9)deleted text endnew text begin (8)new text end, the owner of the qualified low-income housing
project;

(6) for subdivision 1, clause deleted text begin(10)deleted text endnew text begin (9)new text end, the applicant must be a municipal electric
utility or a joint venture of municipal electric utilities; deleted text beginanddeleted text end

(7) for subdivision 1, clauses deleted text begin(11) and (12)deleted text endnew text begin (10) and (11)new text end, the owner of the qualifying
businessdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (8) for subdivision 1, clause (12), the public foundation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 32.

Minnesota Statutes 2006, section 297A.75, subdivision 3, is amended to read:


Subd. 3.

Application.

(a) The application must include sufficient information
to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
subcontractor, or builder, under subdivision 1, clause (4), (5), (6), (7), (8), (9), (10), (11),
or (12)new text begin; or 1anew text end, the contractor, subcontractor, or builder must furnish to the refund applicant
a statement including the cost of the exempt items and the taxes paid on the items unless
otherwise specifically provided by this subdivision. The provisions of sections 289A.40
and 289A.50 apply to refunds under this section.

(b) An applicant may not file more than two applications per calendar year for
refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 33.

Minnesota Statutes 2006, section 297A.99, subdivision 1, is amended to read:


Subdivision 1.

Authorization; scope.

(a) A political subdivision of this state may
impose a general sales tax if permitted by special law new text beginenacted prior to January 1, 2008, new text endor
if the political subdivision enacted and imposed the tax before the effective date of section
477A.016 and its predecessor provision.

(b) This section governs the imposition of a general sales tax by the political
subdivision. The provisions of this section preempt the provisions of any special law:

(1) enacted before June 2, 1997, or

(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
provision from this section's rules by reference.

(c) This section does not apply to or preempt a sales tax on motor vehicles or a
special excise tax on motor vehicles.

new text begin (d) No political subdivision may use its funds to advertise, promote, or hold a
referendum to support imposing a general sales tax unless authorized by a special law
enacted prior to January 1, 2008.
new text end

new text begin (e) No political subdivision may seek the authority to impose a general sales tax
after January 1, 2008.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 34.

Minnesota Statutes 2006, section 297B.03, is amended to read:


297B.03 EXEMPTIONS.

There is specifically exempted from the provisions of this chapter and from
computation of the amount of tax imposed by it the following:

(1) purchase or use, including use under a lease purchase agreement or installment
sales contract made pursuant to section 465.71, of any motor vehicle by the United States
and its agencies and instrumentalities and by any person described in and subject to the
conditions provided in section 297A.67, subdivision 11;

(2) purchase or use of any motor vehicle by any person who was a resident of
another state or country at the time of the purchase and who subsequently becomes a
resident of Minnesota, provided the purchase occurred more than 60 days prior to the date
such person began residing in the state of Minnesota and the motor vehicle was registered
in the person's name in the other state or country;

(3) purchase or use of any motor vehicle by any person making a valid election to be
taxed under the provisions of section 297A.90;

(4) purchase or use of any motor vehicle previously registered in the state of
Minnesota when such transfer constitutes a transfer within the meaning of section 118,
331, 332, 336, 337, 338, 351, 355, 368, 721, 731, 1031, 1033, or 1563(a) of the Internal
Revenue Code of 1986, as amended through December 31, 1999;

(5) purchase or use of any vehicle owned by a resident of another state and leased
to a Minnesota-based private or for-hire carrier for regular use in the transportation of
persons or property in interstate commerce provided the vehicle is titled in the state of
the owner or secured party, and that state does not impose a sales tax or sales tax on
motor vehicles used in interstate commerce;

(6) purchase or use of a motor vehicle by a private nonprofit or public educational
institution for use as an instructional aid in automotive training programs operated by the
institution. "Automotive training programs" includes motor vehicle body and mechanical
repair courses but does not include driver education programs;

(7) purchase of a motor vehicle for use as an ambulance by an ambulance service
licensed under section 144E.10;

(8) purchase of a motor vehicle by or for a public library, as defined in section
134.001, subdivision 2, as a bookmobile or library delivery vehicle;

(9) purchase of a ready-mixed concrete truck;

(10) purchase or use of a motor vehicle by a town for use exclusively for road
maintenance, including snowplows and dump trucks, but not including automobiles,
vans, or pickup trucks;

(11) purchase or use of a motor vehicle by a corporation, society, association,
foundation, or institution organized and operated exclusively for charitable, religious,
or educational purposes, except a public school, university, or library, but only if the
vehicle is:

(i) a truck, as defined in section 168.011, a bus, as defined in section 168.011, or a
passenger automobile, as defined in section 168.011, if the automobile is designed and
used for carrying more than nine persons including the driver; and

(ii) intended to be used primarily to transport tangible personal property or
individuals, other than employees, to whom the organization provides service in
performing its charitable, religious, or educational purpose;

(12) purchase of a motor vehicle for use by a transit provider exclusively to provide
transit service is exempt if the transit provider is either (i) receiving financial assistance or
reimbursement under section 174.24 or 473.384, or (ii) operating under section 174.29,
473.388, or 473.405;

(13) purchase or use of a motor vehicle by a qualified business, as defined in section
469.310, located in a job opportunity building zone, if the motor vehicle is principally
garaged in the job opportunity building zone and is primarily used as part of or in direct
support of the person's operations carried on in the job opportunity building zone. The
exemption under this clause applies to sales, if the purchase was made and delivery
received during the duration of the job opportunity building zone. The exemption under
this clause also applies to any local sales and use taxnew text begin;
new text end

new text begin (14) purchase of a leased vehicle by the lessee who was a participant in a
lease-to-own program from a charitable organization that is:
new text end

new text begin (i) described in section 501(c)(3) of the Internal Revenue Code; and
new text end

new text begin (ii) licensed as a motor vehicle lessor under section 168.27, subdivision 4new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2007.
new text end

Sec. 35.

Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991,
chapter 291, article 8, section 22, and Laws 1998, chapter 389, article 8, section 25, and
Laws 2003, First Special Session chapter 21, article 8, section 11, is amended to read:


Subd. 2.

Notwithstanding Minnesota Statutes, Section 477A.016, or any other law,
ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance,
impose an additional sales tax of up to deleted text beginone and one-halfdeleted text endnew text begin two and one-quarternew text end percent on
sales transactions which are described in Minnesota Statutes 2000, Section 297A.01,
Subdivision 3, Clause (c). When the city council determines that the taxes imposed
under this subdivision and under new text beginLaws 1998, chapter 389, article 8, new text endsection 26 at a rate
of one-half of one percent have produced revenue sufficient to pay (1) the debt service
on bonds in a principal amount of $8,000,000 issued for capital improvements to the
Duluth Entertainment and Convention Center, and (2) debt service on outstanding bonds
originally issued in the principal amount of $4,970,000 to finance capital improvements
to the Great Lakes Aquarium since the imposition of the taxes at the rate of one and
one-half percent, the rate of the tax under this subdivision is reduced deleted text begintodeleted text endnew text begin by one-half ofnew text end
one percent. The imposition of this tax shall not be subject to voter referendum under
either state law or city charter provisions.new text begin When the city council determines that the taxes
imposed under this subdivision at a rate of three-quarters of one percent and other sources
of revenue produce revenue sufficient to pay debt service on bonds in the principal amount
of $37,931,000 plus issuance and discount costs, issued for capital improvements at the
Duluth Entertainment and Convention Center, which include a new arena, the rate of tax
under this subdivision must be reduced by three-quarters of one percent.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 36.

Laws 2005, First Special Session chapter 3, article 5, section 39, is amended
to read:


Sec. 39. CITY OF BEMIDJI.

Subdivision 1.

Sales and use tax authorized.

Notwithstanding Minnesota Statutes,
section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the
approval of the city voters at the general election held on November 5, 2002, new text beginand at the
general election held November 7, 2006,
new text endthe city of Bemidji may impose by ordinance
a sales and use tax of one-half of one percent for the purposes specified in subdivision
2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.

Subd. 2.

Use of revenues.

Revenues received from the tax authorized by
subdivision 1 must be used for the cost of collecting and administering the tax and to pay
new text begin for the projects listed in this subdivision:
new text end

new text begin (1) To pay new text endall or part of the capital or administrative costs of the acquisition,
construction, and improvement of parks and trails within the city, as provided for in the
city of Bemidji's parks, open space, and trail system plan, adopted by the Bemidji City
Council on November 21, 2001. Authorized expenses include, but are not limited to,
acquiring property, paying construction expenses related to the development of these
facilities and improvements, and securing and paying debt service on bonds or other
obligations issued to finance acquisition, construction, improvement, or development of
parks and trails within the city of Bemidji.

new text begin (2) To pay all or part of the city's share of costs of up to $50,000,000 plus any
associated bond costs, for acquisition, design, and construction of a regional event center.
Authorized expenses include, but are not limited to, acquiring property, paying demolition
and construction expenses, improving associated infrastructure, and purchasing furniture,
fixtures, and equipment for the regional event center, and securing and paying debt service
on bonds or other obligations issued to finance the regional event center project.
new text end

Subd. 3.

Bonds.

new text begin(a) new text endPursuant to the approval of the city voters at the general
election held on November 5, 2002, the city of Bemidji may issue, without an additional
election, general obligation bonds of the city in an amount not to exceed $9,826,000 to
pay capital and administrative expenses for the acquisition, construction, improvement,
and development of parks and trails as specified in subdivision 2. The debt represented by
the bonds must not be included in computing any debt limitations applicable to the city,
and the levy of taxes required by Minnesota Statutes, section 475.61, to pay the principal
of any interest on the bonds must not be subject to any levy limitations or be included in
computing or applying any levy limitation applicable to the city.

new text begin (b) Pursuant to the approval of the city voters at the general election held on
November 7, 2006, the city of Bemidji may issue, without an additional election, general
obligation bonds of the city in an amount not to exceed $50,000,000 to pay capital and
administrative expenses for the acquisition, construction, improvement, and development
of the regional event center specified in subdivision 2. The debt represented by the bonds
must not be included in computing any debt limitations applicable to the city, and the levy
of taxes required by Minnesota Statutes, section , to pay the principal of any interest
on the bonds must not be subject to any levy limitations or be included in computing or
applying any levy limitation applicable to the city.
new text end

Subd. 4.

Termination of tax.

The tax imposed under subdivision 1 expires
when the Bemidji City Council determines that the amount described in subdivision 3new text begin,
paragraph (a),
new text end has been received from the tax to finance the capital and administrative
costs for acquisition, construction, improvement, and development of parks and trails and
to repay or retire at maturity the principal, interest, and premium due on any bonds issued
for the park and trail improvements under subdivision 3new text begin, paragraph (a), plus the earlier
of (1) 30 years, or (2) when the city council first determines that the additional revenues
received from the extension of the tax equals or exceeds the amount authorized to be spent
for the regional event center under subdivision 2, clause (2)
new text end. Any funds remaining after
completion of the deleted text beginpark and trail improvementsdeleted text endnew text begin authorized projectsnew text end and retirement or
redemption of the bonds may be placed in the general fund of the city. The tax imposed
under subdivision 1 may expire at an earlier time if the city so determines by ordinance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after compliance by the
governing body of the city of Bemidji and its chief clerical officer with Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 37. new text beginCITY OF CROOKSTON; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other provision of law, ordinance, or city charter, if approved by the
voters at the next general election or a special election prior to December 31, 2008, the
city of Crookston may impose by ordinance a sales and use tax of up to one-half of one
percent for the purpose specified in subdivision 2. Except as provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Use of revenues. new text end

new text begin Revenues received from taxes authorized by subdivision
1 must be used by the city to pay the cost of collecting the taxes and to pay all or part of the
capital and administrative costs for the reconstruction of public facilities that need to be
relocated in conjunction with the city's flood control project. Authorized expenses include,
but are not limited to, acquiring property and paying construction expenses related to these
facilities and improvements, and paying debt service on bonds or other obligations issued
to finance acquisition, development, and construction of these facilities and improvements.
The total amount of revenues that the city may raise under subdivision 1 to finance these
projects is limited to no more than $10,000,000 plus any associated bond costs.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin Pursuant to the approval of the city voters to impose
the tax authorized under subdivision 1, the city may issue, without an additional election,
general obligation bonds of the city in an amount not to exceed $10,000,000 to pay
capital and administrative expenses for the projects described in subdivision 2. The debt
represented by the bonds is not included in computing any debt limitation applicable to the
city, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of
and interest on the bonds is not subject to any levy limitation or be included in computing
or applying any levy limitation applicable to the city.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The taxes imposed under subdivision 1 expire when
the Crookston city council determines that the amount of revenues received from the taxes
to finance the project described in subdivision 2 first equals or exceeds the amount spent
directly on the projects in subdivision 2, plus the additional amount needed to pay the
costs related to issuance of bonds under subdivision 3, including interest on the bonds.
Any funds remaining after completion of the project and retirement or redemption of the
bonds may be placed in the general fund of the city. The taxes imposed under subdivision
1 may expire at an earlier time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text beginThis section is effective the day after the governing body of
the city of Crookston and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 38. new text beginCITY OF NORTH MANKATO; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorized. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other provision of law, ordinance, or city charter pursuant to
the approval of the voters on November 7, 2006, and pursuant to Minnesota Statutes,
section 297A.99, the city of North Mankato may impose by ordinance a sales and use tax
of one-half of one percent for the purposes specified in subdivision 2. The provisions of
Minnesota Statutes, section 297A.99, govern the imposition, administration, collection,
and enforcement of the taxes authorized under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Use of revenues. new text end

new text begin Revenues received from the tax authorized by
subdivision 1 must be used to pay all or part of the capital costs of the following projects:
new text end

new text begin (1) the local share of the Trunk Highway 14/County State Aid Highway 41
interchange project;
new text end

new text begin (2) development of regional parks and hiking and biking trails;
new text end

new text begin (3) expansion of the North Mankato Taylor Library;
new text end

new text begin (4) riverfront redevelopment; and
new text end

new text begin (5) lake improvement projects.
new text end

new text begin The total amount of revenues from the tax in subdivision 1 that may be used to fund
these projects is $6,000,000 plus any associated bond costs.
new text end

new text begin Subd. 3. new text end

new text begin Bonds. new text end

new text begin (a) The city of North Mankato, pursuant to the approval of the
voters at the November 7, 2006, referendum authorizing the imposition of the taxes in
this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital and
administrative expenses for the projects described in subdivision 2, in an amount that
does not exceed $6,000,000. A separate election to approve the bonds under Minnesota
Statutes, section 475.58, is not required.
new text end

new text begin (b) The debt represented by the bonds is not included in computing any debt
limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section
475.61, to pay principal and interest on the bonds is not subject to any levy limitation.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 1 expires
when the city council determines that the amount of revenues received from the taxes
to pay for the projects under subdivision 2 first equals or exceeds $6,000,000 plus the
additional amount needed to pay the costs related to issuance of bonds under subdivision
3, including interest on the bonds. Any funds remaining after completion of the projects
and retirement or redemption of the bonds must be placed in a capital facilities and
equipment replacement fund of the city. The tax imposed under subdivision 1 may expire
at an earlier time if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after compliance by the
governing body of the city of North Mankato with Minnesota Statutes, section 645.021,
subdivision 3.
new text end

Sec. 39. new text beginSTUDY OF SALES AND USE TAX.
new text end

new text begin (a) The commissioner of revenue shall study the current sales and use tax base
in Minnesota and provide a written report and recommendations to the legislature, in
compliance with Minnesota Statutes, sections 3.195 and 3.197, by February 1, 2008.
The study must report on:
new text end

new text begin (1) the changes needed in the current sales tax base to move to a tax based solely on
final consumption of all consumer goods and services, with no taxation of intermediate
inputs to businesses;
new text end

new text begin (2) the estimated change in state revenues for each of the changes identified in
clause (1), along with the sales tax rate change that would be needed to make the changes
revenue-neutral;
new text end

new text begin (3) legal, administrative, and collection issues that would be associated with the
changes identified in clause (1), including interaction with other existing state taxes;
new text end

new text begin (4) the effect of the changes identified in clause (1) on the incidence of the sales tax
system and the overall state and local tax system;
new text end

new text begin (5) the effect of changes on efficiency and the competitiveness of Minnesota as a
location for business and investment; and
new text end

new text begin (6) alternatives for rebating or refunding a portion of the tax to offset any increase
in regressivity identified under clause (4).
new text end

new text begin (b) The study must make recommendations on:
new text end

new text begin (1) sales tax base expansions to move the state toward a system where the tax applies
to the majority of final purchases of goods and services by consumers while minimizing
administrative and collection issues;
new text end

new text begin (2) the sales tax rate change that would be needed to keep the sales tax system
revenue neutral under clause (1); and
new text end

new text begin (3) sales tax base exemptions to minimize the state taxation of intermediate business
inputs while minimizing administrative and collection issues.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 7

ECONOMIC DEVELOPMENT

Section 1.

Minnesota Statutes 2006, section 268.19, subdivision 1, is amended to read:


Subdivision 1.

Use of data.

(a) Except as otherwise provided by this section, data
gathered from any person pursuant to the administration of the Minnesota Unemployment
Insurance Law are private data on individuals or nonpublic data not on individuals as
defined in section 13.02, subdivisions 9 and 12, and may not be disclosed except pursuant
to a district court order or section 13.05. A subpoena shall not be considered a district
court order. These data may be disseminated to and used by the following agencies
without the consent of the subject of the data:

(1) state and federal agencies specifically authorized access to the data by state
or federal law;

(2) any agency of any other state or any federal agency charged with the
administration of an unemployment insurance program;

(3) any agency responsible for the maintenance of a system of public employment
offices for the purpose of assisting individuals in obtaining employment;

(4) human rights agencies within Minnesota that have enforcement powers;

(5) the Department of Revenue only to the extent necessary for its duties under
Minnesota laws;

(6) public and private agencies responsible for administering publicly financed
assistance programs for the purpose of monitoring the eligibility of the program's
recipients;

(7) the Department of Labor and Industry and the Division of Insurance Fraud
Prevention in the Department of Commerce on an interchangeable basis with the
department for uses consistent with the administration of their duties under Minnesota law;

(8) local and state welfare agencies for monitoring the eligibility of the data subject
for assistance programs, or for any employment or training program administered by those
agencies, whether alone, in combination with another welfare agency, or in conjunction
with the department or to monitor and evaluate the statewide Minnesota family investment
program by providing data on recipients and former recipients of food stamps or food
support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance
under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;

(9) local and state welfare agencies for the purpose of identifying employment,
wages, and other information to assist in the collection of an overpayment debt in an
assistance program;

(10) local, state, and federal law enforcement agencies for the sole purpose of
ascertaining the last known address and employment location of a person who is the
subject of a criminal investigation;

(11) the federal Immigration and Naturalization Service shall have access to data on
specific individuals and specific employers provided the specific individual or specific
employer is the subject of an investigation by that agency; deleted text beginand
deleted text end

(12) the Department of Health solely for the purposes of epidemiologic
investigationsdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (13) the state auditor to the extent necessary to conduct audits of job opportunity
building zones as required under section 469.3201.
new text end

(b) Data on individuals and employers that are collected, maintained, or used by the
department in an investigation pursuant to section 268.182 are confidential as to data on
individuals and protected nonpublic data not on individuals as defined in section 13.02,
subdivisions 3 and 13
, and must not be disclosed except pursuant to statute or district
court order or to a party named in a criminal proceeding, administrative or judicial, for
preparation of a defense.

(c) Data gathered by the department pursuant to the administration of the Minnesota
unemployment insurance program must not be made the subject or the basis for any
suit in any civil proceedings, administrative or judicial, unless the action is initiated by
the department.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2006, section 270B.15, is amended to read:


270B.15 DISCLOSURE TO LEGISLATIVE AUDITORnew text begin AND STATE
AUDITOR
new text end.

new text begin (a) new text endReturns and return information must be disclosed to the legislative auditor to the
extent necessary for the legislative auditor to carry out sections 3.97 to 3.979.

new text begin (b) The commissioner must disclose return information, including the report
required under section 289A.12, subdivision 15, to the state auditor to the extent necessary
to conduct audits of job opportunity building zones as required under section 469.3201.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2006, section 272.02, subdivision 64, is amended to read:


Subd. 64.

Job opportunity building zone property.

(a) Improvements to real
property, and personal property, classified under section 273.13, subdivision 24, and
located within a job opportunity building zone, designated under section 469.314, are
exempt from ad valorem taxes levied under chapter 275.

(b) Improvements to real property, and tangible personal property, of an agricultural
production facility located within an agricultural processing facility zone, designated
under section 469.314, is exempt from ad valorem taxes levied under chapter 275.

(c) For property to qualify for exemption under paragraph (a), the occupant must be
a qualified business, as defined in section 469.310.

(d) The exemption applies beginning for the first assessment year after designation
of the job opportunity building zone by the commissioner of employment and economic
development. The exemption applies to each assessment year that begins during the
duration of the job opportunity building zone. To be exempt, the property must be
occupied by July 1 of the assessment year by a qualified business that has signed the
business subsidy agreement and relocation agreement, if required, by July 1 of the
assessment year. This exemption does not apply to:

(1) the levy under section 475.61 or similar levy provisions under any other law to
pay general obligation bonds; or

(2) a levy under section 126C.17deleted text begin, if the levy was approved by the voters before the
designation of the job opportunity building zone
deleted text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for taxes payable in 2008.
new text end

Sec. 4.

Minnesota Statutes 2006, section 289A.12, is amended by adding a subdivision
to read:


new text begin Subd. 15. new text end

new text begin Report of job opportunity zone benefits; penalty for failure to file
report.
new text end

new text begin (a) By October 15 of each year, every qualified business, as defined under section
469.310, subdivision 11, must file with the commissioner, on a form prescribed by the
commissioner, a report listing the tax benefits under section 469.315 received by the
business for the previous year.
new text end

new text begin (b) The commissioner shall send notice to each business that fails to timely submit
the report required under paragraph (a). The notice shall demand that the business submit
the report within 60 days. Where good cause exists, the commissioner may extend
the period for submitting the report as long as a request for extension is filed by the
business before the expiration of the 60-day period. The commissioner shall notify the
commissioner of the Department of Employment and Economic Development and the
appropriate job opportunity subzone administrator whenever notice is sent to a business
under this paragraph.
new text end

new text begin (c) A business that fails to submit the report as required under paragraph (b) is no
longer a qualified business under section 469.310, subdivision 11, and is subject to the
repayment provisions of section 469.319.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with reports required to be
filed October 15, 2008.
new text end

Sec. 5.

Minnesota Statutes 2006, section 469.169, is amended by adding a subdivision
to read:


new text begin Subd. 18. new text end

new text begin Additional border city allocations; 2007. new text end

new text begin (a) In addition to tax
reductions authorized in subdivisions 7 to 17, the commissioner shall allocate $750,000
for tax reductions to border city enterprise zones in cities located on the western border
of the state. The commissioner shall make allocations to zones in cities on the western
border on a per capita basis. Allocations made under this subdivision may be used for
tax reductions as provided in section 469.171, or for other offsets of taxes imposed on
or remitted by businesses located in the enterprise zone, but only if the municipality
determines that the granting of the tax reduction or offset is necessary in order to retain a
business within or attract a business to the zone. The city alternatively may elect to use
any portion of the allocation provided in this paragraph for tax reductions under section
469.1732 or 469.1734.
new text end

new text begin (b) The commissioner shall allocate $750,000 for tax reductions under section
469.1732 or 469.1734 to cities with border city enterprise zones located on the western
border of the state. The commissioner shall allocate this amount among the cities on a per
capita basis. The city alternatively may elect to use any portion of the allocation provided
in this paragraph for tax reductions as provided in section 469.171.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2006, section 469.174, subdivision 10, is amended to read:


Subd. 10.

Redevelopment district.

(a) "Redevelopment district" means a type of
tax increment financing district consisting of a project, or portions of a project, within
which the authority finds by resolution that one or more of the following conditions,
reasonably distributed throughout the district, exists:

(1) parcels consisting of 70 percent of the area of the district are occupied by
buildings, streets, utilities, paved or gravel parking lots, or other similar structures
and more than 50 percent of the buildings, not including outbuildings, are structurally
substandard to a degree requiring substantial renovation or clearance;

(2) the property consists of vacant, unused, underused, inappropriately used,
or infrequently used railyards, rail storage facilities, or excessive or vacated railroad
rights-of-way;

(3) tank facilities, or property whose immediately previous use was for tank
facilities, as defined in section 115C.02, subdivision 15, if the tank facilities:

(i) have or had a capacity of more than 1,000,000 gallons;

(ii) are located adjacent to rail facilities; and

(iii) have been removed or are unused, underused, inappropriately used, or
infrequently used; or

(4) a qualifying disaster area, as defined in subdivision 10b.

(b) For purposes of this subdivision, "structurally substandard" shall mean
containing defects in structural elements or a combination of deficiencies in essential
utilities and facilities, light and ventilation, fire protection including adequate egress,
layout and condition of interior partitions, or similar factors, which defects or deficiencies
are of sufficient total significance to justify substantial renovation or clearance.

(c) A building is not structurally substandard if it is in compliance with the building
code applicable to new buildings or could be modified to satisfy the building code at
a cost of less than 15 percent of the cost of constructing a new structure of the same
square footage and type on the site. The municipality may find that a building is not
disqualified as structurally substandard under the preceding sentence on the basis of
reasonably available evidence, such as the size, type, and age of the building, the average
cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. The
municipality may not make such a determination without an interior inspection of the
property, but need not have an independent, expert appraisal prepared of the cost of repair
and rehabilitation of the building. An interior inspection of the property is not required,
if the municipality finds that (1) the municipality or authority is unable to gain access to
the property after using its best efforts to obtain permission from the party that owns or
controls the property; and (2) the evidence otherwise supports a reasonable conclusion that
the building is structurally substandard. Items of evidence that support such a conclusion
include recent fire or police inspections, on-site property tax appraisals or housing
inspections, exterior evidence of deterioration, or other similar reliable evidence. Written
documentation of the findings and reasons why an interior inspection was not conducted
must be made and retained under section 469.175, subdivision 3, clause (1). Failure of a
building to be disqualified under the provisions of this paragraph is a necessary, but not a
sufficient, condition to determining that the building is substandard.

(d) A parcel is deemed to be occupied by a structurally substandard building
for purposes of the finding under paragraph (a) new text beginor by the improvements described in
paragraph (e)
new text endif all of the following conditions are met:

(1) the parcel was occupied by a substandard buildingnew text begin or met the requirements
of paragraph (e), as the case may be,
new text end within three years of the filing of the request for
certification of the parcel as part of the district with the county auditor;

(2) the substandard building deleted text beginwasdeleted text endnew text begin or the improvements described in paragraph (e)
were
new text end demolished or removed by the authority or the demolition or removal was financed
by the authority or was done by a developer under a development agreement with the
authority;

(3) the authority found by resolution before the demolition or removal that the
parcel was occupied by a structurally substandard building new text beginor met the requirements of
paragraph (e)
new text endand that after demolition and clearance the authority intended to include
the parcel within a district; and

(4) upon filing the request for certification of the tax capacity of the parcel as part
of a district, the authority notifies the county auditor that the original tax capacity of the
parcel must be adjusted as provided by section 469.177, subdivision 1, paragraph (f).

(e) For purposes of this subdivision, a parcel is not occupied by buildings, streets,
utilities, paved or gravel parking lots, or other similar structures unless 15 percent of the
area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or
other similar structures.

(f) For districts consisting of two or more noncontiguous areas, each area must
qualify as a redevelopment district under paragraph (a) to be included in the district, and
the entire area of the district must satisfy paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for requests for certification made
after June 30, 2007.
new text end

Sec. 7.

Minnesota Statutes 2006, section 469.174, subdivision 10a, is amended to read:


Subd. 10a.

Renewal and renovation district.

(a) "Renewal and renovation district"
means a type of tax increment financing district consisting of a project, or portions of a
project, within which the authority finds by resolution that:

(1)(i) parcels consisting of 70 percent of the area of the district are occupied by
buildings, streets, utilities, paved or gravel parking lots, or other similar structures; (ii)
20 percent of the buildings are structurally substandard; and (iii) 30 percent of the other
buildings require substantial renovation or clearance to remove existing conditions such
as: inadequate street layout, incompatible uses or land use relationships, overcrowding of
buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for
improvement or conversion, or other identified hazards to the health, safety, and general
well-being of the community; and

(2) the conditions described in clause (1) are reasonably distributed throughout the
geographic area of the district.

(b) For purposes of determining whether a building is structurally substandard,
whether parcels are occupied by buildings, streets, utilities, paved or gravel parking lots,
or other similar structures, or whether noncontiguous areas qualify, the provisions of
subdivision 10, paragraphs deleted text begin(c), (e), anddeleted text endnew text begin (b) throughnew text end (f) apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for requests for certification made
after June 30, 2007.
new text end

Sec. 8.

Minnesota Statutes 2006, section 469.174, subdivision 27, is amended to read:


Subd. 27.

Small city.

"Small city" means any home rule charter or statutory city
that has a population of 5,000 or less and that is located ten miles or more from a home
rule charter or statutory city, located in this state, with a population of 10,000 or more. For
purposes of this definition, the distance between cities is measured by drawing a straight
line from the nearest boundaries of the two cities.new text begin In calculating the distance between
cities, the city may use any boundaries of the city with a population of 10,000 or more
that were in effect during the ten-year period ending on the last day of the calendar year
previous to the year in which the request for certification is made.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for requests for certification made
after the day following final enactment.
new text end

Sec. 9.

Minnesota Statutes 2006, section 469.175, subdivision 1, is amended to read:


Subdivision 1.

Tax increment financing plan.

new text begin(a) new text endA tax increment financing plan
shall contain:

(1) a statement of objectives of an authority for the improvement of a project;

(2) a statement as to the development program for the project, including the property
within the project, if any, that the authority intends to acquire, identified by parcel number,
identifiable property name, block, or other appropriate means indicating the area in which
the authority intends to acquire properties;

(3) a list of any development activities that the plan proposes to take place within
the project, for which contracts have been entered into at the time of the preparation of
the plan, including the names of the parties to the contract, the activity governed by the
contract, the cost stated in the contract, and the expected date of completion of that activity;

(4) identification or description of the type of any other specific development
reasonably expected to take place within the project, and the date when the development is
likely to occur;

(5) estimates of the following:

(i) cost of the project, including administrative expenses, except that if part of the
cost of the project is paid or financed with increment from the tax increment financing
district, the tax increment financing plan for the district must contain an estimate of the
amount of the cost of the project, including administrative expenses, that will be paid or
financed with tax increments from the district;

(ii) amount of bonded indebtedness to be incurred;

(iii) sources of revenue to finance or otherwise pay public costs;

(iv) the most recent net tax capacity of taxable real property within the tax increment
financing district and within any subdistrict;

(v) the estimated captured net tax capacity of the tax increment financing district
at completion; and

(vi) the duration of the tax increment financing district's and any subdistrict's
existence;

(6) statements of the authority's alternate estimates of the impact of tax increment
financing on the net tax capacities of all taxing jurisdictions in which the tax increment
financing district is located in whole or in part. For purposes of one statement, the
authority shall assume that the estimated captured net tax capacity would be available to
the taxing jurisdictions without creation of the district, and for purposes of the second
statement, the authority shall assume that none of the estimated captured net tax capacity
would be available to the taxing jurisdictions without creation of the district or subdistrict;

(7) identification and description of studies and analyses used to make the
determination set forth in subdivision 3, clause (2); and

(8) identification of all parcels to be included in the district or any subdistrict.

new text begin (b) The authority may specify in the tax increment financing plan the first year in
which it elects to receive increment, up to four years following the year of approval of the
district. This paragraph does not apply to an economic development district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for districts for which the request for
certification is made after June 30, 2007.
new text end

Sec. 10.

Minnesota Statutes 2006, section 469.175, subdivision 3, is amended to read:


Subd. 3.

Municipality approval.

(a) A county auditor shall not certify the original
net tax capacity of a tax increment financing district until the tax increment financing plan
proposed for that district has been approved by the municipality in which the district
is located. If an authority that proposes to establish a tax increment financing district
and the municipality are not the same, the authority shall apply to the municipality in
which the district is proposed to be located and shall obtain the approval of its tax
increment financing plan by the municipality before the authority may use tax increment
financing. The municipality shall approve the tax increment financing plan only after a
public hearing thereon after published notice in a newspaper of general circulation in the
municipality at least once not less than ten days nor more than 30 days prior to the date
of the hearing. The published notice must include a map of the area of the district from
which increments may be collected and, if the project area includes additional area, a map
of the project area in which the increments may be expended. The hearing may be held
before or after the approval or creation of the project or it may be held in conjunction with
a hearing to approve the project.

(b) Before or at the time of approval of the tax increment financing plan, the
municipality shall make the following findings, and shall set forth in writing the reasons
and supporting facts for each determination:

(1) that the proposed tax increment financing district is a redevelopment district, a
renewal or renovation district, a housing district, a soils condition district, or an economic
development district; if the proposed district is a redevelopment district or a renewal or
renovation district, the reasons and supporting facts for the determination that the district
meets the criteria of section 469.174, subdivision 10, paragraph (a), clauses (1) and (2), or
subdivision 10a, must be documented in writing and retained and made available to the
public by the authority until the district has been terminated;

(2) that, in the opinion of the municipality:

(i) the proposed development or redevelopment would not reasonably be expected to
occur solely through private investment within the reasonably foreseeable future; and

(ii) the increased market value of the site that could reasonably be expected to
occur without the use of tax increment financing would be less than the increase in the
market value estimated to result from the proposed development after subtracting the
present value of the projected tax increments for the maximum duration of the district
permitted by the plan. The requirements of this item do not apply if the district is a
deleted text begin qualifieddeleted text end housing district;

(3) that the tax increment financing plan conforms to the general plan for the
development or redevelopment of the municipality as a whole;

(4) that the tax increment financing plan will afford maximum opportunity,
consistent with the sound needs of the municipality as a whole, for the development or
redevelopment of the project by private enterprise;

(5) that the municipality elects the method of tax increment computation set forth in
section 469.177, subdivision 3, paragraph (b), if applicable.

(c) When the municipality and the authority are not the same, the municipality shall
approve or disapprove the tax increment financing plan within 60 days of submission by
the authority. When the municipality and the authority are not the same, the municipality
may not amend or modify a tax increment financing plan except as proposed by the
authority pursuant to subdivision 4. Once approved, the determination of the authority
to undertake the project through the use of tax increment financing and the resolution of
the governing body shall be conclusive of the findings therein and of the public need for
the financing.

(d) For a district that is subject to the requirements of paragraph (b), clause (2),
item (ii), the municipality's statement of reasons and supporting facts must include all of
the following:

(1) an estimate of the amount by which the market value of the site will increase
without the use of tax increment financing;

(2) an estimate of the increase in the market value that will result from the
development or redevelopment to be assisted with tax increment financing; and

(3) the present value of the projected tax increments for the maximum duration of
the district permitted by the tax increment financing plan.

(e) For purposes of this subdivision, "site" means the parcels on which the
development or redevelopment to be assisted with tax increment financing will be located.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to all districts, regardless of when the request for certification was made.
new text end

Sec. 11.

Minnesota Statutes 2006, section 469.176, subdivision 1, is amended to read:


Subdivision 1.

Duration of tax increment financing districts.

(a) Subject to the
limitations contained in subdivisions 1a to 1f, any tax increment financing district as to
which bonds are outstanding, payment for which the tax increment and other revenues
have been pledged, shall remain in existence at least as long as the bonds continue to be
outstanding. The municipality may, at the time of approval of the initial tax increment
financing plan, provide for new text beginone or both of the following:
new text end

new text begin (1) new text enda shorter maximum duration limit than specified in subdivisions 1a to 1fdeleted text begin.deleted text endnew text begin;new text end

new text begin (2) an election as provided under section 469.175, subdivision 1, paragraph (b).
new text end

The specified limit applies in place of the otherwise applicable limit, unless the authority
modifies the plan following the procedures under section 469.175, subdivision 4,
paragraph (b).

(b) The tax increment pledged to the payment of the bonds and interest thereon may
be discharged and the tax increment financing district may be terminated if sufficient funds
have been irrevocably deposited in the debt service fund or other escrow account held in
trust for all outstanding bonds to provide for the payment of the bonds at maturity or date
of redemption and interest thereon to the maturity or redemption date.

(c) For bonds issued pursuant to section 469.178, subdivisions 2 and 3, the full
faith and credit and any taxing powers of the municipality or authority are pledged to the
payment of the bonds until the principal of and interest on the bonds has been paid in full.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for districts for which the request for
certification is made after June 30, 2007.
new text end

Sec. 12.

Minnesota Statutes 2006, section 469.176, subdivision 2, is amended to read:


Subd. 2.

Excess increments.

(a) The authority shall annually determine the amount
of excess increments for a district, if any. This determination must be based on the tax
increment financing plan in effect on December 31 of the year and the increments and
other revenues received as of December 31 of the year. The authority must spend or return
the excess increments under paragraph (c) within nine months after the end of the year.

(b) For purposes of this subdivision, "excess increments" equals the excess of:

(1) total increments collected from the district since its certification, reduced by any
excess increments paid under paragraph (c), clause (4), for a prior year, over

(2) the total costs authorized by the tax increment financing plan to be paid with
increments from the district, reduced, but not below zero, by the sum of:

(i) the amounts of those authorized costs that have been paid from sources other than
tax increments from the district;

(ii) revenues, other than tax increments from the district, that are dedicated for or
otherwise required to be used to pay those authorized costs and that the authority has
received and that are not included in item (i);

(iii) the amount of principal and interest obligations due on outstanding bonds after
December 31 of the year and not prepaid under paragraph (c) in a prior year; and

(iv) increased by the sum of the transfers of increments made under section 469.1763,
subdivision 6
, to reduce deficits in other districts made by December 31 of the year.

(c) The authority shall use excess increment only to do one or more of the following:

(1) prepay any outstanding bonds;

(2) discharge the pledge of tax increment for any outstanding bonds;

(3) pay into an escrow account dedicated to the payment of any outstanding bonds; or

(4) return the excess amount to the county auditor who shall distribute the excess
amount to the city or town, county, and school district in which the tax increment financing
district is located in direct proportion to their respective local tax rates.

(d) For purposes of a district for which the request for certification was made prior to
August 1, 1979, excess increments equal the amount of increments on hand on December
31, less the principal and interest obligations due on outstanding bonds or advances,
qualifying under subdivision 1c, clauses (1), (2), new text begin(4), new text endand (5), after December 31 of the
year and not prepaid under paragraph (c).

(e) The county auditor must report to the commissioner of education the amount of
any excess tax increment distributed to a school district within 30 days of the distribution.

(f) For purposes of this subdivision, "outstanding bonds" means bonds which are
secured by increments from the district.

new text begin (g) The state auditor may exempt an authority from reporting the amounts calculated
under this subdivision for a calendar year, if the authority certifies to the auditor in
its report that the total amount authorized by the tax increment plan to be paid with
increments from the district exceeds the sum of the total increments collected for the
district for all years by 20 percent.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to all districts regardless of when the request for certification was made, including
districts for which the request for certification was made on or before August 1, 1979.
new text end

Sec. 13.

Minnesota Statutes 2006, section 469.176, subdivision 4l, is amended to read:


Subd. 4l.

Prohibited facilities.

(a) No tax increment from any district may be
used for:

(1) a commons area used as a public park; or

(2) a facility used for social, recreational, or conference purposes.

(b) This subdivision does not apply to a privately owned facility for conference
purposes or a parking structurenew text begin, whether it is public or privately owned or whether it is
ancillary to a use listed in paragraph (a)
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section confirms the original intent of the legislature
in enacting Minnesota Statutes, section 469.176, subdivision 4l, and is effective the day
following final enactment and applies to any expenditure subject to Minnesota Statutes,
section 469.176, subdivision 4l.
new text end

Sec. 14.

Minnesota Statutes 2006, section 469.176, subdivision 7, is amended to read:


Subd. 7.

Parcels not includable in districts.

(a) The authority may request
inclusion in a tax increment financing district and the county auditor may certify the
original tax capacity of a parcel or a part of a parcel that qualified under the provisions of
section 273.111 or 273.112 or chapter 473H for taxes payable in any of the five calendar
years before the filing of the request for certification only for:

(1) a district in which 85 percent or more of the planned buildings and facilities
(determined on the basis of square footage) are a qualified manufacturing facility or a
qualified distribution facility or a combination of both; or

(2) a deleted text beginqualifieddeleted text end housing district.

(b)(1) A distribution facility means buildings and other improvements to real
property that are used to conduct activities in at least each of the following categories:

(i) to store or warehouse tangible personal property;

(ii) to take orders for shipment, mailing, or delivery;

(iii) to prepare personal property for shipment, mailing, or delivery; and

(iv) to ship, mail, or deliver property.

(2) A manufacturing facility includes space used for manufacturing or producing
tangible personal property, including processing resulting in the change in condition of the
property, and space necessary for and related to the manufacturing activities.

(3) To be a qualified facility, the owner or operator of a manufacturing or distribution
facility must agree to pay and pay 90 percent or more of the employees of the facility at
a rate equal to or greater than 160 percent of the federal minimum wage for individuals
over the age of 20.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to all districts regardless of when the request for certification was made.
new text end

Sec. 15.

Minnesota Statutes 2006, section 469.1761, subdivision 1, is amended to read:


Subdivision 1.

Requirement imposed.

(a) In order for a tax increment financing
district to qualify as a housing district:

(1) the income limitations provided in this section must be satisfied; and

(2) no more than 20 percent of the square footage of buildings that receive assistance
from tax increments may consist of commercial, retail, or other nonresidential uses.

(b) The requirements imposed by this section apply to property receiving assistance
financed with tax increments, including interest reduction, land transfers at less than the
authority's cost of acquisition, utility service or connections, roads, parking facilities, or
other subsidies. The provisions of this section do not apply to districts located in a targeted
area as defined in section 462C.02, subdivision 9, clause (e).

new text begin (c) For purposes of the requirements of paragraph (a), the authority may elect to treat
an addition to an existing structure as a separate building if:
new text end

new text begin (1) construction of the addition begins more than three years after construction of
the existing structure was completed; and
new text end

new text begin (2) for an addition that does not meet the requirements of paragraph (a), clause (2), if
it is treated as a separate building, the addition was not contemplated by the tax increment
financing plan which includes the existing structure.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for expenditures of tax increment
authorized and made after the day following final enactment, regardless of when the
request for certification of the district was made.
new text end

Sec. 16.

Minnesota Statutes 2006, section 469.1763, subdivision 2, is amended to read:


Subd. 2.

Expenditures outside district.

(a) For each tax increment financing
district, an amount equal to at least 75 percent of the total revenue derived from tax
increments paid by properties in the district must be expended on activities in the district
or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities
in the district or to pay, or secure payment of, debt service on credit enhanced bonds.
For districts, other than redevelopment districts for which the request for certification
was made after June 30, 1995, the in-district percentage for purposes of the preceding
sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax
increments paid by properties in the district may be expended, through a development fund
or otherwise, on activities outside of the district but within the defined geographic area of
the project except to pay, or secure payment of, debt service on credit enhanced bonds.
For districts, other than redevelopment districts for which the request for certification was
made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is
20 percent. The revenue derived from tax increments for the district that are expended on
costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before
calculating the percentages that must be expended within and without the district.

(b) In the case of a housing district, a housing project, as defined in section 469.174,
subdivision 11
, is an activity in the district.

(c) All administrative expenses are for activities outside of the district, except that
if the only expenses for activities outside of the district under this subdivision are for
the purposes described in paragraph (d), administrative expenses will be considered as
expenditures for activities in the district.

(d) The authority may elect, in the tax increment financing plan for the district,
to increase by up to ten percentage points the permitted amount of expenditures for
activities located outside the geographic area of the district under paragraph (a). As
permitted by section 469.176, subdivision 4k, the expenditures, including the permitted
expenditures under paragraph (a), need not be made within the geographic area of the
project. Expenditures that meet the requirements of this paragraph are legally permitted
expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j.
To qualify for the increase under this paragraph, the expenditures must:

(1) be used exclusively to assist housing that meets the requirement for a qualified
low-income building, as that term is used in section 42 of the Internal Revenue Code;

(2) not exceed the qualified basis of the housing, as defined under section 42(c) of
the Internal Revenue Code, less the amount of any credit allowed under section 42 of
the Internal Revenue Code; and

(3) be used to:

(i) acquire and prepare the site of the housing;

(ii) acquire, construct, or rehabilitate the housing; or

(iii) make public improvements directly related to the housing.

(e) For a district created within a biotechnology and health sciences industry zone
as defined in section 469.330, subdivision 6, or for an existing district located within
such a zone, tax increment derived from such a district may be expended outside of the
district but within the zone only for expenditures required for the construction of public
infrastructure necessary to support the activities of the zonenew text begin, land acquisition, and other
redevelopment costs as defined in section 469.176, subdivision 4j
new text end. deleted text beginPublic infrastructuredeleted text endnew text begin
These
new text end expenditures are considered as expenditures for activities within the district.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for all districts located in bioscience
zones, regardless of when the request for certification was made.
new text end

Sec. 17.

Minnesota Statutes 2006, section 469.177, subdivision 1, is amended to read:


Subdivision 1.

Original net tax capacity.

(a) Upon or after adoption of a tax
increment financing plan, the auditor of any county in which the district is situated shall,
upon request of the authority, certify the original net tax capacity of the tax increment
financing district and that portion of the district overlying any subdistrict as described in
the tax increment financing plan and shall certify in each year thereafter the amount by
which the original net tax capacity has increased or decreased as a result of a change in tax
exempt status of property within the district and any subdistrict, reduction or enlargement
of the district or changes pursuant to subdivision 4.new text begin The auditor shall certify the amount
within 30 days after receipt of the request and sufficient information to identify the parcels
included in the district. The certification relates to the taxes payable year as provided in
subdivision 6.
new text end

(b) If the classification under section 273.13 of property located in a district changes
to a classification that has a different assessment ratio, the original net tax capacity of that
property must be redetermined at the time when its use is changed as if the property had
originally been classified in the same class in which it is classified after its use is changed.

(c) The amount to be added to the original net tax capacity of the district as a result
of previously tax exempt real property within the district becoming taxable equals the net
tax capacity of the real property as most recently assessed pursuant to section 273.18 or, if
that assessment was made more than one year prior to the date of title transfer rendering
the property taxable, the net tax capacity assessed by the assessor at the time of the
transfer. If improvements are made to tax exempt property after the municipality approves
the district and before the parcel becomes taxable, the assessor shall, at the request of
the authority, separately assess the estimated market value of the improvements. If the
property becomes taxable, the county auditor shall add to original net tax capacity, the net
tax capacity of the parcel, excluding the separately assessed improvements. If substantial
taxable improvements were made to a parcel after certification of the district and if the
property later becomes tax exempt, in whole or part, as a result of the authority acquiring
the property through foreclosure or exercise of remedies under a lease or other revenue
agreement or as a result of tax forfeiture, the amount to be added to the original net tax
capacity of the district as a result of the property again becoming taxable is the amount
of the parcel's value that was included in original net tax capacity when the parcel was
first certified. The amount to be added to the original net tax capacity of the district as a
result of enlargements equals the net tax capacity of the added real property as most
recently certified by the commissioner of revenue as of the date of modification of the tax
increment financing plan pursuant to section 469.175, subdivision 4.

(d) If the net tax capacity of a property increases because the property no longer
qualifies under the Minnesota Agricultural Property Tax Law, section 273.111; the
Minnesota Open Space Property Tax Law, section 273.112; or the Metropolitan
Agricultural Preserves Act, chapter 473H, or because platted, unimproved property is
improved or market value is increased after approval of the plat under section 273.11,
subdivision 14
, 14a, or 14b, the increase in net tax capacity must be added to the original
net tax capacity.

(e) The amount to be subtracted from the original net tax capacity of the district
as a result of previously taxable real property within the district becoming tax exempt,
or a reduction in the geographic area of the district, shall be the amount of original net
tax capacity initially attributed to the property becoming tax exempt or being removed
from the district. If the net tax capacity of property located within the tax increment
financing district is reduced by reason of a court-ordered abatement, stipulation agreement,
voluntary abatement made by the assessor or auditor or by order of the commissioner of
revenue, the reduction shall be applied to the original net tax capacity of the district when
the property upon which the abatement is made has not been improved since the date of
certification of the district and to the captured net tax capacity of the district in each year
thereafter when the abatement relates to improvements made after the date of certification.
The county auditor may specify reasonable form and content of the request for certification
of the authority and any modification thereof pursuant to section 469.175, subdivision 4.

(f) If a parcel of property contained a substandard buildingnew text begin or improvements
described in section 469.174, subdivision 10, paragraph (e),
new text end that deleted text beginwasdeleted text endnew text begin werenew text end demolished
or removed and if the authority elects to treat the parcel as occupied by a substandard
building under section 469.174, subdivision 10, paragraph (b), new text beginor by improvements under
section 469.174, subdivision 10, paragraph (e),
new text endthe auditor shall certify the original net
tax capacity of the parcel using the greater of (1) the current net tax capacity of the
parcel, or (2) the estimated market value of the parcel for the year in which the building
deleted text begin wasdeleted text end new text beginor other improvements were new text enddemolished or removed, but applying the class rates
for the current year.

(g) For a redevelopment district qualifying under section 469.174, subdivision 10,
paragraph (a), clause (4), as a qualified disaster area, the auditor shall certify the value of
the land as the original tax capacity for any parcel in the district that contains a building
that suffered substantial damage as a result of the disaster or emergency.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for requests for certification made
after June 30, 2007.
new text end

Sec. 18.

Minnesota Statutes 2006, section 469.178, subdivision 7, is amended to read:


Subd. 7.

Interfund loans.

The authority or municipality may advance or loan
money to finance expenditures under section 469.176, subdivision 4, from its general
fund or any other fund under which it has legal authority to do so. The loan or advance
must be authorized, by resolution of the governing body or of the authority, whichever
has jurisdiction over the fund from which the advance or loan is made, before money
is transferred, advanced, or spent, whichever is earliest. The resolution may generally
grant to the authority the power to make interfund loans under one or more tax increment
financing plans or for one or more districts. The terms and conditions for repayment of the
loan must be provided in writing and include, at a minimum, the principal amount, the
interest rate, and maximum term. The maximum rate of interest permitted to be charged
is limited to the greater of the rates specified under section 270C.40 or 549.09 as of the
date new text beginthe loan new text endor advance is made, unless the written agreement states that the maximum
interest rate will fluctuate as the interest rates specified under section 270C.40 or 549.09
are from time to time adjusted.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to all districts subject to Minnesota Statutes, section 469.178, subdivision 7,
regardless of when the request for certification was made.
new text end

Sec. 19.

Minnesota Statutes 2006, section 469.1791, subdivision 3, is amended to read:


Subd. 3.

Preconditions to establish district.

(a) A city may establish a special
taxing district within a tax increment financing district under this section only if the
conditions under paragraphs (b) and (c) are met or if the city elects to exercise the
authority under paragraph (d).

(b) The city has determined that:

(1) total tax increments from the district, including unspent increments from
previous years and increments transferred under paragraph (c), will be insufficient to pay
the amounts due in a year on preexisting obligations; and

(2) this insufficiency of increments resulted from the reduction in property tax class
rates enacted in the 1997 and 1998 legislative sessions.

(c) The city has agreed to transfer any available increments from other tax increment
financing districts in the city to pay the preexisting obligations of the district under section
469.1763, subdivision 6. This requirement does not apply to any available increments of a
deleted text begin qualifieddeleted text end housing district.

(d) If a tax increment financing district does not qualify under paragraphs (b) and
(c), the governing body may elect to establish a special taxing district under this section.
If the city elects to exercise this authority, increments from the tax increment financing
district and the proceeds of the tax imposed under this section may only be used to pay
preexisting obligations and reasonable administrative expenses of the authority for the tax
increment financing district. The tax increment financing district must be decertified when
all preexisting obligations have been paid.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to districts regardless of when the request for certification was made.
new text end

Sec. 20.

Minnesota Statutes 2006, section 469.310, is amended by adding a subdivision
to read:


new text begin Subd. 11a. new text end

new text begin Qualified farm. new text end

new text begin "Qualified farm" means a person actively engaged in
farming, that invests in an agricultural processing facility on the farm, and that:
new text end

new text begin (1) increases employment on the farm by a minimum of 25 percent of full-time
employment in the first full year of operation. The employment does not include family
members, as defined in section 267(c)(4) of the Internal Revenue Code of 1986, as
amended;
new text end

new text begin (2) makes an investment equal to at least ten percent of the previous year's gross
revenue in the agricultural processing facility;
new text end

new text begin (3) is located outside the metropolitan area, as defined in section 473.121,
subdivision 2; and
new text end

new text begin (4) enters into a binding written agreement with the commissioner that:
new text end

new text begin (i) pledges the agricultural processing facility will meet the requirements of clauses
(1) and (2); and
new text end

new text begin (ii) provides the repayment of all tax benefits enumerated under section 469.315
to the business under the procedures in section 469.319, if the requirements of clauses
(1) and (2) are not met for the taxable year or for taxes payable during the year in which
the requirements are not met; and
new text end

new text begin (iii) contains any other terms the commissioner deems appropriate.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 21.

Minnesota Statutes 2006, section 469.312, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin Restrictions on relocations. new text end

new text begin (a) If a business relocates or intends to
relocate under a proposed project more than 25 full-time equivalent jobs from a location
in Minnesota into a job opportunity building zone, the business must notify the local
government unit, the commissioner of employment and economic development, and the
city and the county governments from which the jobs are being or would be relocated.
A city or county that objects to the relocation of jobs must file a copy of the resolution
with the commissioner of employment and economic development and the local unit
of government.
new text end

new text begin (b) If the governing body of the city or county from which the jobs are being
relocated adopts a qualified resolution objecting to the relocation within 60 days after its
receipt of the notice, the following rules apply until the requirements of paragraph (c) are
satisfied:
new text end

new text begin (1) if the business has not entered into a business subsidy agreement, the local unit
of government may not enter into a business subsidy agreement with the business; or
new text end

new text begin (2) if the local unit of government has entered into a business subsidy agreement
with the business, the business ceases to be a qualified business, effective for the current
taxable year, the current assessment year, and for taxable purchases made after the first
day of the month beginning after the filing of the objecting resolution.
new text end

new text begin (c) To be a qualified resolution for purposes of this subdivision, the resolution must
identify one or more sites in the city or county that could serve as an appropriate site for
the facility proposed by the business. To satisfy this requirement a site must:
new text end

new text begin (1) be of adequate size;
new text end

new text begin (2) have appropriate transportation access, given the nature of the business;
new text end

new text begin (3) be served by adequate public infrastructure and public utilities or the
governmental unit will provide reasonably necessary public infrastructure and public
utilities for the project in a timely manner; and
new text end

new text begin (4) be under the ownership or control of either the governmental unit or the business
or be available for sale.
new text end

new text begin (d) When each city and county that objected to the relocation rescinds its objection
by resolution, the provisions of paragraph (b) no longer apply to the business.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to business subsidy agreements entered into after that date.
new text end

Sec. 22.

Minnesota Statutes 2006, section 469.312, is amended by adding a subdivision
to read:


new text begin Subd. 7. new text end

new text begin FARMZ; special rules. new text end

new text begin (a) Except as otherwise specifically provided in
this subdivision, sections 469.310 to 469.320 apply to family agricultural revitalization
zones designated under section 469.314, subdivision 1, paragraph (d).
new text end

new text begin (b) Only the portion of a qualified farm that consists of the agricultural processing
facility qualifies for the tax incentives under section 469.315. In no case may the
maximum amount of income that is exempt from the individual income tax under section
469.316 or from the corporate franchise tax under section 469.317, exceed the total
income of the qualified farm multiplied by a fraction, the numerator of which is the total
income for the taxable year minus the income of the qualified farm for the last full year of
operation prior to the designation and the denominator of which is the total income for the
taxable year. In no case may the fraction be greater than one or less than zero.
new text end

new text begin (c) A qualified farm is deemed to be a qualified business for purposes of the tax
incentives under section 469.315.
new text end

new text begin (d) Only purchases of materials for use directly in the construction and operation
of the agricultural processing facility qualify for the sales tax exemption under section
297A.68, subdivision 37, and purchases of vehicles used exclusively in connection with
operation of the agricultural processing facility qualify for the motor vehicle sales tax
exemption under section 297B.03.
new text end

new text begin (e) Payroll attributed to payment of family members, as defined in section 267(c)(4)
of the Internal Revenue Code, does not qualify for the jobs credit under section 469.318.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 23.

Minnesota Statutes 2006, section 469.314, subdivision 1, is amended to read:


Subdivision 1.

Commissioner to designate.

(a) The commissioner, in consultation
with the commissioner of revenue, shall designate not more than ten job opportunity
building zones. In making the designations, the commissioner shall consider need and
likelihood of success to yield the most economic development and revitalization of
economically distressed rural areas of Minnesota.

(b) In addition to the designations under paragraph (a), the commissioner may, in
consultation with the commissioners of agriculture and revenue, designate up to five
agricultural processing facility zones.

(c) The commissioner may, upon designation of a zone, modify the development
plan, including the boundaries of the zone or subzones, if in the commissioner's opinion
a modified plan would better meet the objectives of the job opportunity building zone
program. The commissioner shall notify the applicant of the modification and provide a
statement of the reasons for the modifications.

new text begin (d) Upon application by a qualified farm, the commissioner may transfer the
designation of one or more parcels in a job opportunity building zone to the site of the
qualified farm. Such a site is designated a farm agricultural revitalization zone. The
authority to transfer designation of parcels applies only to parcels on which no qualified
business is located when the transfer is made. At least 30 days prior to executing the
transfer of the designation, the commissioner must notify the zone administrator and the
local government in which the parcel proposed to be transferred is located for advice and
comment. Before transferring the designation of a parcel to the site of a qualified farm,
the commissioner shall consult with the commissioner of revenue and shall consider the
need for tax incentives to make the project feasible and the likelihood of success of the
project. A transferred parcel is subject to the duration limit that applies to the original
zone. The transferred parcel is not subject to reporting by the local government under
section 469.320.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 24.

Minnesota Statutes 2006, section 469.3201, is amended to read:


469.3201 deleted text beginJOBZ EXPENDITURE LIMITATIONS; AUDITSdeleted text endnew text begin STATE
AUDITOR; AUDITS OF JOB OPPORTUNITY BUILDING ZONES AND
BUSINESS SUBSIDY AGREEMENTS
new text end.

The Tax Increment Financing, Investment and Finance Division of the Office of the
State Auditor must annually audit the creation and operation of all job opportunity building
zones and business subsidy agreements entered into under Minnesota Statutes, sections
469.310 to 469.320.new text begin To the extent necessary to perform this audit, the state auditor may
request from the commissioner of revenue tax return information of taxpayers who are
eligible to receive tax benefits authorized under section 469.315. To the extent necessary
to perform this audit, the state auditor may request from the commissioner of employment
and economic development wage detail report information required under section 268.044
of taxpayers eligible to receive tax benefits authorized under section 469.315.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 25.

new text begin [469.350] BIOSCIENCE BUSINESS GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section the following terms
have the meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of employment and economic
development.
new text end

new text begin (c) "Qualified bioscience business venture" means a business that satisfies all of
the following conditions:
new text end

new text begin (1) the business has its headquarters in Minnesota;
new text end

new text begin (2) at least 51 percent of the business's employees are employed in Minnesota;
new text end

new text begin (3) the business is engaged in, or is committed to engage in:
new text end

new text begin (i) manufacturing, processing, or assembling biotechnology or medical device
products, including biotechnology and device products for use in agriculture;
new text end

new text begin (ii) conducting research in and development of biotechnology or medical device
products or services; or
new text end

new text begin (iii) developing a new biotechnology or medical device product or business process;
new text end

new text begin (4) the business is not engaged in real estate development, insurance, banking,
lending, lobbying, political consulting, wholesale or retail trade, leisure, hospitality,
transportation, construction, or professional services provided by attorneys, accountants,
business consultants, physicians, or health care consultants;
new text end

new text begin (5) the business has fewer than 25 employees;
new text end

new text begin (6) the business has been in operation for fewer than ten consecutive years;
new text end

new text begin (7) the business has not previously received a grant under this section;
new text end

new text begin (8) the business has less than $1,000,000 in annual gross sales receipts;
new text end

new text begin (9) the business is not a subsidiary or an affiliate of a business that employs more
than 100 employees or has gross sales receipts for the previous year of $1,000,000,
computed by aggregating all of the employees and gross sales receipts of the business
entities affiliated with the business; and
new text end

new text begin (10) the business has not received private equity investments of more than
$2,000,000.
new text end

new text begin (d) "Private equity investments" means investments from individuals or pass-through
entities who do not own, control, or hold power to vote 20 percent or more of the
outstanding securities of the qualified business venture.
new text end

new text begin Subd. 2. new text end

new text begin Bioscience grants authorized. new text end

new text begin The commissioner is authorized to make
grants to qualified bioscience business ventures that have obtained at least $100,000
in private equity investments. The grant amount equals 25 percent of private equity
investments obtained by the qualified bioscience business venture, up to a maximum
grant of $100,000.
new text end

new text begin Subd. 3. new text end

new text begin Application; preliminary certification. new text end

new text begin (a) A qualified bioscience
business venture must apply to the commissioner in order to receive a grant. The
application must be in a form and manner prescribed by the commissioner. The application
must include information on:
new text end

new text begin (1) private equity investments of at least $100,000 obtained or anticipated by the
business venture;
new text end

new text begin (2) the technology under development;
new text end

new text begin (3) the technology's potential merits; and
new text end

new text begin (4) the purposes for which the business will use the grant.
new text end

new text begin (b) The commissioner shall establish a grant evaluation team comprised of not
less than five members including:
new text end

new text begin (1) the commissioner or the commissioner's designee or designees;
new text end

new text begin (2) representatives of one or more bioscience businesses;
new text end

new text begin (3) representatives of one or more private investment companies;
new text end

new text begin (4) representatives of one or more nonprofit entities that meets the requirements of
section 501(c)3 or 501(c)6 of the Internal Revenue Code.
new text end

new text begin (c) The grant evaluation team must evaluate applications for grants using criteria
agreed on by the team, including but not limited to:
new text end

new text begin (1) the scientific merit of the business venture;
new text end

new text begin (2) the market potential of the business venture;
new text end

new text begin (3) the potential for job creation of the business venture; and
new text end

new text begin (4) the ability of the business venture to attract private investment.
new text end

new text begin The team may consult with outside experts, as needed, to best evaluate applications.
The team must recommend applications for preliminary certification to the commissioner
and may only recommend applications that have obtained or anticipate obtaining at least
$100,000 in private equity investments.
new text end

new text begin (d) The commissioner must make preliminary certification of applications
recommended by the grant evaluation team semiannually during a fiscal year, with not
more than $500,000 of preliminary certifications issued each time, unless preliminary
certifications for that fiscal year have been cancelled as provided under subdivision 4.
The preliminary certification reserves a grant equal to 25 percent of the private equity
investments up to the maximum of $100,000.
new text end

new text begin (e) The grant evaluation team and any outside experts consulted by the grant
evaluation team must handle grant applications in accordance with the requirements of
chapter 13. The grant applicant's name, address, and amount requested is classified as
public data. All other data contained in a grant application is classified as nonpublic
data, as defined in section 13.02, subdivision 9, or private data on individuals, as defined
in section 13.02, subdivision 12.
new text end

new text begin Subd. 4. new text end

new text begin Award of grant. new text end

new text begin (a) A qualified bioscience business venture that
has received preliminary certification under subdivision 3 must demonstrate to the
commissioner receipt of the specified amount of private equity investments within 30
days of receiving preliminary certification.
new text end

new text begin (b) The commissioner must provide a grant equal to 25 percent of private equity
investments up to the maximum grant of $100,000 within 30 days of verifying that the
qualified bioscience business venture has received the private equity investments. The
commissioner may not award more than $1,000,000 in grants during the fiscal year.
new text end

new text begin (c) If a qualified bioscience business venture fails to demonstrate receipt of the
specified amount of private equity investments within 30 days of receiving preliminary
certification, the preliminary certification is cancelled and the reserved grant amount is
available to the commissioner for grants to other qualified bioscience business ventures.
new text end

new text begin Subd. 5. new text end

new text begin Repayment obligation. new text end

new text begin (a) A qualified bioscience business venture must
repay the amount of the grant received under this section during the current year and
four preceding years if it:
new text end

new text begin (1) no longer has its headquarters in Minnesota; or
new text end

new text begin (2) no longer employs at least 51 percent of its employees in Minnesota.
new text end

new text begin (b) A qualified bioscience venture that ceases business operations is not subject to
the repayment obligation in this subdivision.
new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin By February 1 of each year the commissioner must report to the
committees of the legislature with jurisdiction over bioscience and technology issues, in
compliance with sections 3.195 and 3.197, on the number and amount of grants awarded
under this section, the activities of grant recipients, and the geographic distribution
of businesses receiving grants.
new text end

Sec. 26.

Laws 1994, chapter 587, article 9, section 14, subdivision 1, is amended to
read:


Subdivision 1.

Establishment.

The city of Brooklyn Center may establish deleted text beginandeleted text end
new text begin a new text endredevelopment tax increment financing district in which 15 percent of the revenues
generated from tax increment in any year is deposited in the housing new text beginand environmental
remediation
new text enddevelopment account of the authority and expended according to the tax
increment financing plan.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 27.

Laws 1994, chapter 587, article 9, section 14, subdivision 2, is amended to
read:


Subd. 2.

Eligible activities.

The authority must identify in the plan the housing
activities that will be assisted by the housing new text beginand environmental remediation new text enddevelopment
account. Housing activities may include rehabilitation, acquisition, new text beginconstruction,
new text enddemolition, and financing of new or existing single family or multifamily housing.
Housing new text beginand environmental remediation new text endactivities listed in the plan need not be located
within the district or project area but must be activities that meet the new text beginincome new text endrequirements
deleted text begin of a qualified housing districtdeleted text end under Minnesota Statutes, section deleted text begin273.1399 ordeleted text end 469.1761deleted text begin,
subdivision 2
deleted text end
.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 28.

Laws 1994, chapter 587, article 9, section 14, subdivision 3, is amended to
read:


Subd. 3.

Housing account.

Tax increment to be expended for housing new text beginand
environmental remediation
new text endactivities under this section must be segregated by the
authority into a special account on its official books and records. The account may also
receive funds from other public and private sources.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 29.

Laws 1995, chapter 264, article 5, section 44, subdivision 4, as amended by
Laws 1996, chapter 471, article 7, section 21, and Laws 1997, chapter 231, article 10,
section 12, is amended to read:


Subd. 4.

Authority.

For housing replacement projects in the city of Crystal,
"authority" means the Crystal economic development authority. For housing replacement
projects in the city of Fridley, "authority" means the housing and redevelopment authority
in and for the city of Fridley or a successor in interest. For housing replacement
projects in the city of Minneapolis, "authority" means the Minneapolis community
development agencynew text begin or its successors and assignsnew text end. For housing replacement projects
in the city of St. Paul, "authority" means the St. Paul housing and redevelopment
authority. For housing replacement projects in the city of Duluth, "authority" means the
Duluth economic development authority. For housing replacement projects in the city of
Richfield, "authority" is the authority as defined in Minnesota Statutes, section 469.174,
subdivision 2
, that is designated by the governing body of the city of Richfield. For
housing replacement projects in the city of Columbia Heights, "authority" is the authority
as defined in Minnesota Statutes, section 469.174, subdivision 2, that is designated by the
governing body of the city of Columbia Heights.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and upon compliance by the governing body of the city of Minneapolis with Minnesota
Statutes, section 645.021, subdivision 3.
new text end

Sec. 30.

Laws 1995, chapter 264, article 5, section 45, subdivision 1, as amended by
Laws 1996, chapter 471, article 7, section 22, and Laws 1997, chapter 231, article 10,
section 13, and Laws 2002, chapter 377, article 7, section 6, is amended to read:


Subdivision 1.

Creation of projects.

(a) An authority may create a housing
replacement project under sections 44 to 47, as provided in this section.

(b) For the cities of Crystal, Fridley, Richfield, and Columbia Heights, the authority
may designate up to 50 parcels in the city to be included in a housing replacement
district. No more than ten parcels may be included in year one of the district, with up
to ten additional parcels added to the district in each of the following nine years. For
the cities of deleted text beginMinneapolis,deleted text end St. Pauldeleted text begin,deleted text end and Duluth, each authority may designate not more
than 200 parcels in the city to be included in a housing replacement district over the life
of the district. new text beginFor the city of Minneapolis, the authority may designate not more than
300 parcels in the city to be included in a housing replacement district over the life of
the district.
new text endThe only parcels that may be included in a district are (1) vacant sites, (2)
parcels containing vacant houses, or (3) parcels containing houses that are structurally
substandard, as defined in Minnesota Statutes, section 469.174, subdivision 10.

(c) The city in which the authority is located must pay at least 25 percent of the
housing replacement project costs from its general fund, a property tax levy, or other
unrestricted money, not including tax increments.

(d) The housing replacement district plan must have as its sole object the acquisition
of parcels for the purpose of preparing the site to be sold for market rate housing. As
used in this section, "market rate housing" means housing that has a market value that
does not exceed 150 percent of the average market value of single-family housing in that
municipality.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and upon compliance by the governing body of the city of Minneapolis with Minnesota
Statutes, section 645.021, subdivision 3.
new text end

Sec. 31. new text beginEAGAN; TAX INCREMENT FINANCING.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin (a) The city of Eagan may establish within the
corporate boundaries of the city one or more economic development tax increment
financing districts subject to the special rules under subdivision 2. The districts must be
located within the area described in paragraph (b).
new text end

new text begin (b) For purposes of this section, the "area" is defined as Section 13, Township 27,
Range 23, Dakota County, Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin (a) If the city elects upon adoption of the tax increment
financing plan for the district, the rules under this subdivision apply to the district.
new text end

new text begin (b) The limitations in Minnesota Statutes, section 469.176, subdivision 4c, on
spending increment for developments more than 15 percent of the square footage of which
is used for purposes other than those listed in that subdivision, do not apply.
new text end

new text begin (c) Increments may be expended on parking, including structured parking, wetland
mitigation, sanitary sewer, storm sewer, water, and street improvements inside and outside
the area defined in subdivision 1, paragraph (b), wherever located, whether or not included
in a tax increment financing district, and without regard to any limitations in Minnesota
Statutes, section 469.1763, subdivision 2, if the improvements are related to development
within the area defined in subdivision 1, paragraph (b), and on administrative expenses.
new text end

new text begin Subd. 3. new text end

new text begin Business subsidy agreement required. new text end

new text begin Prior to approval of a tax
increment financing plan for a district authorized by this section, the city must enter
a business subsidy agreement with the recipient or beneficiary of expenditures of the
increments. The agreement must set minimum full-time employment goals, minimum
compensation amounts of the employment positions, and minimum investment amounts
for the project and must provide for repayment of all or part of the assistance, if the
established goals are not met by the recipient or beneficiaries.
new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin The authority to approve tax increment financing plans to
establish tax increment financing districts under this section expires on December 31, 2008.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance by the city of
Eagan with Minnesota Statutes, section 645.021.
new text end

Sec. 32. new text beginTAX INCREMENT FINANCING; CITY OF DAYTON.
new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin The city of Dayton may establish an economic
development tax increment financing district under the authority provided in this
section. The city may include area with the jurisdiction of the town of Hassan to the
extent authorized by a joint powers agreement with the town. This district must be
established within the area defined in subdivision 2 and is subject to the special rules
under subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Defined area. new text end

new text begin The district must be established within the area defined as
the southwestern corner of the city of Dayton bounded by Brockton Lane (also known
as Hennepin County Road 101) to the west, 109th Avenue North to the south, Hennepin
County Highway 81 diagonally to the north and east from 109th Avenue northwesterly
to a line 120 feet east of the extension of York Avenue northerly to a line 120 feet north
of Gay Wood Drive and then west to Brockton Lane (Hennepin County Road 101). The
area within the jurisdiction of the town of Hassan that may be included in the district is
limited to and defined as all the land within the town of Hassan north of 109th Avenue
North, east of Fletcher Lane (also know as Hennepin County Road 116), south of I-94
and west of Brockton Lane (Hennepin County Road 101).
new text end

new text begin Subd. 3. new text end

new text begin Special rules. new text end

new text begin The district is subject to the rules under Minnesota Statutes,
sections 469.174 to 469.1799, with the following exceptions:
new text end

new text begin (1) the city need not make the findings required by Minnesota Statutes, section
469.174, subdivision 12;
new text end

new text begin (2) the restrictions on the expenditures of increments under Minnesota Statutes,
section 469.176, subdivision 4c, do not apply;
new text end

new text begin (3) the provisions of Minnesota Statutes, section 469.176, subdivision 5, do not
apply to the district;
new text end

new text begin (4) the provisions of Minnesota Statutes, section 469.176, subdivision 7, do not
apply to the district;
new text end

new text begin (5) the district's tax increments must be used only to pay for the costs related
to Brockton interchange project, including land acquisition, public infrastructure, and
administrative costs, which are limited to ten percent of the improvement cost, whether
paid directly or to reimburse for payment of those costs or to repay bonds or other
obligations issued and sold to pay those costs initially;
new text end

new text begin (6) for purposes of any joint powers agreement authorized by this section, the town
of Hassan is deemed to have all the powers of an authority, as defined in Minnesota
Statutes, section 469.174, subdivision 2; and
new text end

new text begin (7) tax increments for the districts must be computed using an original local tax rate
equal to 80 percent of the rate under Minnesota Statutes, section 469.177, subdivision 1a.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance by the governing
body of the city of Dayton and by the board of supervisors of the town of Hassan with
Minnesota Statutes, section 645.021.
new text end

Sec. 33. new text beginCITY OF FRIDLEY; TAX INCREMENT FINANCING DISTRICT;
SPECIAL RULES.
new text end

new text begin (a) If the city elects upon the adoption of a tax increment financing plan for a district,
the rules under this section apply to a redevelopment tax increment financing district
established by the city of Fridley or the housing and redevelopment authority of the city.
The redevelopment tax increment district includes the following parcels and adjacent
railroad property and shall be referred to as the Northstar Transit Station District: parcel
numbers 223024120010, 223024120009, 223024120017, 223024120016, 223024120018,
223024120012, 223024120011, 223024120005, 223024120004, 223024120003,
223024120013, 223024120008, 223024120007, 223024120006, 223024130005,
223024130010, 223024130011, 223024130003, 153024440039, 153024440037,
153024440041, 153024440042, 223024110013, 223024110016, 223024110017,
223024140008, 223024130002, 223024420004, 223024410002, 223024410003,
223024110008, 223024110007, 223024110019, 223024110018, 223024110003,
223024140003, 223024140009, 223024140002, 223024140010, and 223024410007.
new text end

new text begin (b) The requirements for qualifying a redevelopment tax increment district under
Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcels located
within the Northstar Transit Station District, which are deemed eligible for inclusion
in a redevelopment tax increment district.
new text end

new text begin (c) In addition to the costs permitted by Minnesota Statutes, section 469.176,
subdivision 4j, eligible expenditures within the Northstar Transit Station District include
those costs necessary to provide for the development or expanded use of a transfer station.
For purposes of this subdivision, transfer station means a physical structure or designated
area that supports the interconnection of various transportation modes, including light
rail, commuter rail, and bus rapid transit, and that promotes and achieves the loading,
discharging, and transporting of people.
new text end

new text begin (d) Notwithstanding the provisions of Minnesota Statutes, section 469.1763,
subdivision 2, the city of Fridley may expend increments generated from its tax increment
financing districts numbers 11, 12, and 13 for costs permitted by paragraph (c) and
Minnesota Statutes, section 469.176, subdivision 4j, outside the boundaries of tax
increment financing districts numbers 11, 12, and 13, but only within the Northstar
Transit Station District.
new text end

new text begin (e) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3,
does not apply to the Northstar Transit Station District or to tax increment financing
districts numbers 11, 12, and 13.
new text end

new text begin (f) The use of revenues for decertification under Minnesota Statutes, section
469.1763, subdivision 4, does not apply to tax increment financing districts numbers
11, 12, and 13.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing body
of the city of Fridley and upon compliance by the city with Minnesota Statutes, section
645.021, subdivision 3.
new text end

Sec. 34. new text beginCITY OF TAYLORS FALLS; BORDER CITY DEVELOPMENT ZONE.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin The governing body of the city of Taylors Falls may
designate all or any part of the city as a border city development zone.
new text end

new text begin Subd. 2. new text end

new text begin Application of general law. new text end

new text begin (a) Minnesota Statutes, sections 469.1731 to
469.1735, apply to the border city development zones designated under this section. The
governing body of the city may exercise the powers granted under Minnesota Statutes,
sections 469.1731 to 469.1735, including powers that apply outside of the zones.
new text end

new text begin (b) The allocation under subdivision 3 for purposes of Minnesota Statutes, section
469.1735, subdivision 2, is appropriated to the commissioner of revenue.
new text end

new text begin Subd. 3. new text end

new text begin Allocation of state tax reductions. new text end

new text begin (a) The cumulative total amount of the
state portion of the tax reductions for all years of the program under Minnesota Statutes,
sections 469.1731 to 469.1735, for the city of Taylors Falls, is limited to $100,000.
new text end

new text begin (b) This allocation may be used for tax reductions provided in Minnesota Statutes,
section 469.1732 or 469.1734, or for reimbursements under Minnesota Statutes, section
469.1735, subdivision 3, but only if the governing body of the city of Taylors Falls
determines that the tax reduction or offset is necessary to enable a business to expand
within the city or to attract a business to the city.
new text end

new text begin (c) The commissioner of revenue may waive the limit under this subdivision using
the same rules and standards provided in Minnesota Statutes, section 469.169, subdivision
12, paragraph (b).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing
body of the city of Taylors Falls and upon timely compliance by the city with Minnesota
Statutes, section 645.021.
new text end

Sec. 35. new text beginBIOSCIENCE GRANTS; APPROPRIATION.
new text end

new text begin $1,000,000 in fiscal year 2008 and $1,000,000 in fiscal year 2009 are appropriated
from the general fund to the commissioner of employment and economic development for
bioscience grants under Minnesota Statutes, section 469.350. The appropriations made
under this section are exempt from the requirements of Minnesota Statutes, sections
116J.994 and 116J.995.
new text end

Sec. 36. new text beginAPPROPRIATION; MINNESOTA FILM AND TV BOARD.
new text end

new text begin (a) $1,700,000 is appropriated from the general fund to the commissioner of
employment and economic development for a grant to the Minnesota Film and TV Board
for reimbursement of up to 15 percent of the film production costs incurred in Minnesota,
under Minnesota Statutes, section 116U.26. This appropriation is for fiscal years 2008
and 2009. This is a onetime appropriation.
new text end

new text begin (b) This appropriation is contingent upon the availability in the November 2008
revenue forecast of additional revenues, as defined in Minnesota Statutes, section 16A.152,
subdivision 2, and this appropriation is the first priority for the use of those revenues,
notwithstanding the provisions of Minnesota Statutes, section 16A.152, subdivision 2, or
any amendments to that subdivision enacted in this or another law.
new text end

Sec. 37. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2006, section 469.174, subdivision 29, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
For purposes of any special law authorizing or limiting the use of increments to projects
meeting the requirements of a qualified housing district, expenditures for housing districts
satisfying the requirements of Minnesota Statutes, sections 469.174, subdivision 11;
469.176, subdivision 4d; and 469.1761, as amended, also satisfy the requirements of
the special law.
new text end

ARTICLE 8

MINERALS

Section 1.

Minnesota Statutes 2006, section 298.22, is amended by adding a
subdivision to read:


new text begin Subd. 5a. new text end

new text begin Forest trust. new text end

new text begin The board may purchase forest lands in the taconite
assistance area under section 273.1341 with funds specifically authorized for the purchase.
All of these forest lands must be held in trust for the benefit of the citizens of the area as
the Iron Range Miners' Memorial Forest. The board may use the forest trust lands for
recreation and economic uses. The board must deposit the proceeds from the sale of
timber or removal of gravel or other minerals from these forest lands into an Iron Range
Miners' Memorial Forest account established by the board. By majority vote of the board,
money in the Iron Range Miners' Memorial Forest account may be transferred into the
Douglas J. Johnson economic protection trust fund under sections 298.291 to 298.294.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2006, section 298.2214, subdivision 2, is amended to read:


Subd. 2.

new text beginIron Range Higher Education Committee; new text endmembership.

The members
of the committee shall consist of:

(1) one member appointed by the governor;

(2) one member appointed by the president of the University of Minnesota;

(3) two members deleted text beginappointed by the commissionerdeleted text end of new text beginthe new text endIron Range resources and
rehabilitationnew text begin appointed by the chairnew text end; deleted text beginand
deleted text end

(4) the commissioner of Iron Range resources and rehabilitationnew text begin; and
new text end

new text begin (5) the President of the Northeast Higher Education Districtnew text end.

Sec. 3.

Minnesota Statutes 2006, section 298.28, subdivision 4, is amended to read:


Subd. 4.

School districts.

(a) new text begin20.15 new text endcents per taxable ton plus the increase
provided in paragraph (d) must be allocated to qualifying school districts to be distributed,
based upon the certification of the commissioner of revenue, under paragraphs (b) and (c),
except as otherwise provided in paragraph (f).

(b)new text begin(i)new text end 3.43 cents per taxable ton must be distributed to the school districts in which
the lands from which taconite was mined or quarried were located or within which the
concentrate was produced. The distribution must be based on the apportionment formula
prescribed in subdivision 2.

new text begin (ii) Three cents per taxable ton from each taconite facility must be distributed to
each affected school district for deposit in a fund dedicated to building maintenance
and repairs, as follows:
new text end

new text begin (1) proceeds from Keewatin Taconite or its successor are distributed to Independent
School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor
districts;
new text end

new text begin (2) proceeds from the Hibbing Taconite Company or its successor are distributed to
Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor
districts;
new text end

new text begin (3) proceeds from the Mittal Steel Company, United Taconite, and Minntac or their
successors are distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl,
706, Virginia, 2711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;
and
new text end

new text begin (4) proceeds from the Northshore Mining Company or its successor are distributed
to Independent School District No. 2142, St. Louis County, or its successor district.
new text end

new text begin Revenues that are required to be distributed to more than one district shall be
apportioned according to the number of pupil units identified in section 126C.05,
subdivision 1, enrolled in the second previous year. Any amounts received by a qualifying
school district under this provision shall not be applied to: (A) reduce any aid that the
school district is entitled to receive, or (B) reduce the permissible levies of the school
district.
new text end

(c)(i) 13.72 cents per taxable ton, less any amount distributed under paragraph (e),
shall be distributed to a group of school districts comprised of those school districts which
qualify as a tax relief area under section 273.134, paragraph (b), or in which there is a
qualifying municipality as defined by section 273.134, paragraph (a), in direct proportion
to school district indexes as follows: for each school district, its pupil units determined
under section 126C.05 for the prior school year shall be multiplied by the ratio of the
average adjusted net tax capacity per pupil unit for school districts receiving aid under
this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
Each district shall receive that portion of the distribution which its index bears to the sum
of the indices for all school districts that receive the distributions.

(ii) Notwithstanding clause (i), each school district that receives a distribution
under sections 298.018; 298.23 to 298.28, exclusive of any amount received under this
clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a tax on
severed mineral values after reduction for any portion distributed to cities and towns under
section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its levy
reduction under section 126C.48, subdivision 8, for the second year prior to the year of the
distribution shall receive a distribution equal to the difference; the amount necessary to
make this payment shall be derived from proportionate reductions in the initial distribution
to other school districts under clause (i).

(d) Any school district described in paragraph (c) where a levy increase pursuant to
section 126C.17, subdivision 9, was authorized by referendum for taxes payable in 2001,
shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 times the
pupil units identified in section 126C.05, subdivision 1, enrolled in the second previous
year or the 1983-1984 school year, whichever is greater, less the product of 1.8 percent
times the district's taxable net tax capacity in the second previous year.

If the total amount provided by paragraph (d) is insufficient to make the payments
herein required then the entitlement of $175 per pupil unit shall be reduced uniformly
so as not to exceed the funds available. Any amounts received by a qualifying school
district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general
education aid which the district receives pursuant to section 126C.13 or the permissible
levies of the district. Any amount remaining after the payments provided in this paragraph
shall be paid to the commissioner of Iron Range resources and rehabilitation who shall
deposit the same in the taconite environmental protection fund and the Douglas J. Johnson
economic protection trust fund as provided in subdivision 11.

Each district receiving money according to this paragraph shall reserve the lesser of
the amount received under this paragraph or $25 times the number of pupil units served
in the district. It may use the money for early childhood programs or for outcome-based
learning programs that enhance the academic quality of the district's curriculum. The
outcome-based learning programs must be approved by the commissioner of education.

(e) There shall be distributed to any school district the amount which the school
district was entitled to receive under section 298.32 in 1975.

(f) Effective for the distribution in 2003 only, five percent of the distributions to
school districts under paragraphs (b), (c), and (e); subdivision 6, paragraph (c); subdivision
11; and section 298.225, shall be distributed to the general fund. The remainder less any
portion distributed to cities and towns under section 126C.48, subdivision 8, paragraph
(5), shall be distributed to the Douglas J. Johnson economic protection trust fund created
in section 298.292. Fifty percent of the amount distributed to the Douglas J. Johnson
economic protection trust fund shall be made available for expenditure under section
298.293 as governed by section 298.296. Effective in 2003 only, 100 percent of the
distributions to school districts under section 477A.15 less any portion distributed to
cities and towns under section 126C.48, subdivision 8, paragraph (5), shall be distributed
to the general fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for production in 2007, distributions
in 2008, and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2006, section 298.28, is amended by adding a subdivision
to read:


new text begin Subd. 9d. new text end

new text begin Iron Range higher education account. new text end

new text begin Two cents per taxable ton must
be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in
an Iron Range higher education account that is hereby created, to be used for higher
education programs, scholarships, and grants to postsecondary students attending a higher
education institution located in the taconite assistance area defined in section 273.1341.
The Iron Range Higher Education committee under section 298.2214 must approve all
expenditures from the account. The account must be used for the educational expenses of
undergraduate and postgraduate education of eligible students enrolled in the University
of Minnesota, the Minnesota State Colleges and Universities, and private postsecondary
institutions located in the taconite assistance area defined under section 273.1341.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for production in 2007, distributions
in 2008, and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2006, section 298.292, subdivision 2, is amended to read:


Subd. 2.

Use of money.

Money in the Douglas J. Johnson economic protection trust
fund may be used for the following purposes:

(1) to provide loans, loan guarantees, interest buy-downs and other forms of
participation with private sources of financing, but a loan to a private enterprise shall be
for a principal amount not to exceed one-half of the cost of the project for which financing
is sought, and the rate of interest on a loan to a private enterprise shall be no less than the
lesser of eight percent or an interest rate three percentage points less than a full faith
and credit obligation of the United States government of comparable maturity, at the
time that the loan is approved;

(2) to fund reserve accounts established to secure the payment when due of the
principal of and interest on bonds issued pursuant to section 298.2211;

(3) to pay in periodic payments or in a lump sum payment any or all of the interest
on bonds issued pursuant to chapter 474 for the purpose of constructing, converting,
or retrofitting heating facilities in connection with district heating systems or systems
utilizing alternative energy sources; deleted text beginand
deleted text end

(4) to invest in a venture capital fund or enterprise that will provide capital to other
entities that are engaging in, or that will engage in, projects or programs that have the
purposes set forth in subdivision 1. No investments may be made in a venture capital fund
or enterprise unless at least two other unrelated investors make investments of at least
$500,000 in the venture capital fund or enterprise, and the investment by the Douglas
J. Johnson economic protection trust fund may not exceed the amount of the largest
investment by an unrelated investor in the venture capital fund or enterprise. For purposes
of this subdivision, an "unrelated investor" is a person or entity that is not related to
the entity in which the investment is made or to any individual who owns more than 40
percent of the value of the entity, in any of the following relationships: spouse, parent,
child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of
the value of all interests in it. For purposes of determining the limitations under this
clause, the amount of investments made by an investor other than the Douglas J. Johnson
economic protection trust fund is the sum of all investments made in the venture capital
fund or enterprise during the period beginning one year before the date of the investment
by the Douglas J. Johnson economic protection trust fundnew text begin; and
new text end

new text begin (5) to purchase forest land in the taconite assistance area under section 273.1341 to
be held as a public trust for the benefit of the area for recreational uses and for economic
purposes, including timber sales and gravel removal
new text end.

Money from the trust fund shall be expended only in or for the benefit of the taconite
assistance area defined in section 273.1341.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2006, section 298.2961, subdivision 4, is amended to read:


Subd. 4.

Grant and loan fund.

(a) A fund is established to receive distributions
under section 298.28, subdivision 9b, and to make grants or loans as provided in this
subdivision. Any grant or loan made under this subdivision must be approved by
a majority of the members of the Iron Range Resources and Rehabilitation Board,
established under section 298.22.

(b) Distributions received in calendar year 2005 are allocated to the city of Virginia
for improvements and repairs to the city's steam heating system.

(c) Distributions received in calendar year 2006 are allocated to a project of the
public utilities commissions of the cities of Hibbing and Virginia to convert their electrical
generating plants to the use of biomass products, such as wood.

(d) Distributions received in calendar year 2007 must be paid to the city of Tower to
be used for the East Two Rivers project in or near the city of Tower.

(e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution
must be paid to St. Louis County for deposit in its county road and bridge fund to be used
for relocation of St. Louis County Road 715, commonly referred to as Pike River Road.
The remainder of the 2008 distribution deleted text beginand the fulldeleted text end new text beginmust be paid to St. Louis County for a
grant to the City of Virginia for connecting sewer and water lines to the St. Louis County
maintenance garage on Highway 135, further extending the lines to interconnect with the
city of Gilbert's sewer and water lines. The total
new text endamount of the distributions in 2009 and
subsequent years is allocated for projects under section 298.223, subdivision 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7. new text beginIRON RANGE RESOURCES AND REHABILITATION BOARD;
APPROPRIATION; RETIRE BONDS.
new text end

new text begin Commencing with taxes payable in 2008 there is annually appropriated from
the distribution of the taconite production tax revenues to the taconite environmental
protection fund under Minnesota Statutes, section 298.28, subdivision 11, and to the
Douglas J. Johnson economic protection trust fund under Minnesota Statutes, section
298.28, subdivisions 9 and 11, in equal shares, an amount of $500,000 per year.
new text end

new text begin The revenue received under this section shall be used only to retire Mesabi East
School District No. 2711 bonds in the amount of $9,000,000 issued September 1, 2006,
and in the amount of $6,250,000 issued March 1, 2007. The payments shall continue for a
period of ten years ending with taxes payable in 2017. Payments to the school district
shall be made on March 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8. new text beginIRON RANGE MEMORIAL FOREST.
new text end

new text begin Notwithstanding Minnesota Statutes, section 298.293, the Iron Range Resources and
Rehabilitation Board under Minnesota Statutes, section 298.22, may expend funds from
the principal of the Douglas J. Johnson economic protection trust fund under Minnesota
Statutes, sections 298.291 to 298.294, to purchase forest lands. All forest lands purchased
under this section must be held in trust for the benefit of the citizens of the taconite
assistance area under Minnesota Statutes, section 273.1341, as the Iron Range Miners'
Memorial Forest for the benefit of the area as provided under section 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 9

SPECIAL TAXES

Section 1.

Minnesota Statutes 2006, section 291.005, subdivision 1, is amended to read:


Subdivision 1.

Scope.

Unless the context otherwise clearly requires, the following
terms used in this chapter shall have the following meanings:

(1) "Federal gross estate" means the gross estate of a decedent as valued and
otherwise determined for federal estate tax purposes by federal taxing authorities pursuant
to the provisions of the Internal Revenue Code.

(2) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
excluding therefrom any property included therein which has its situs outside Minnesota,
and (b) including therein any property omitted from the federal gross estate which is
includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
authorities.

(3) "Personal representative" means the executor, administrator or other person
appointed by the court to administer and dispose of the property of the decedent. If there
is no executor, administrator or other person appointed, qualified, and acting within this
state, then any person in actual or constructive possession of any property having a situs in
this state which is included in the federal gross estate of the decedent shall be deemed
to be a personal representative to the extent of the property and the Minnesota estate tax
due with respect to the property.

(4) "Resident decedent" means an individual whose domicile at the time of death
was in Minnesota.

(5) "Nonresident decedent" means an individual whose domicile at the time of
death was not in Minnesota.

(6) "Situs of property" means, with respect to real property, the state or country in
which it is located; with respect to tangible personal property, the state or country in which
it was normally kept or located at the time of the decedent's death; and with respect to
intangible personal property, the state or country in which the decedent was domiciled
at death.

(7) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.

(8) "Internal Revenue Code" means the United States Internal Revenue Code of
1986, as amended through deleted text beginMay 18deleted text endnew text begin December 31new text end, 2006.

(9) "Minnesota adjusted taxable estate" means new text beginthe following amount:
new text end

new text begin (i) new text endfederal adjusted taxable estate as defined by section 2011(b)(3) of the Internal
Revenue Codedeleted text begin, increased bydeleted text endnew text begin; plus
new text end

new text begin (ii) new text endthe amount of deduction for state death taxes allowed under section 2058 of
the Internal Revenue Codedeleted text begin.deleted text endnew text begin; plus
new text end

new text begin (iii) expenses which are deducted for federal income tax purposes under section
642(g) of the Internal Revenue Code; plus
new text end

new text begin (iv) the amount of taxable gifts as defined in section 2503 of the Internal Revenue
Code made by the decedent within three years of the decedent's date of death. For
purposes of this clause, the amount of the addition equals the value of the gift under
section 2512 of the Internal Revenue Code and excludes any value of the gift included
in the federal adjusted taxable estate; less
new text end

new text begin (v) the value of qualified farm property under section 291.03, subdivision 9, and
qualified small business property under section 291.03, subdivision 10, but not to exceed
$500,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for decedents dying after December
31, 2006.
new text end

Sec. 2.

Minnesota Statutes 2006, section 291.03, subdivision 1, is amended to read:


Subdivision 1.

Tax amount.

The tax imposed shall be an amount equal to the
proportion of the maximum credit for state death taxes computed under section 2011 of
the Internal Revenue Code, as amended through December 31, 2000, but using Minnesota
adjusted taxable estate instead of federal adjusted taxable estate, as the Minnesota gross
estate bears to the value of the federal gross estate. The tax determined under this
paragraph shall not be greater than the amount computed by applying the rates and
brackets under section 2001(c) of the Internal Revenue Code to the Minnesota adjusted
deleted text begin grossdeleted text endnew text begin taxablenew text end estate and subtracting the federal credit allowed under section 2010 of
the Internal Revenue Code of 1986, as amended through December 31, 2000. deleted text beginFor the
purposes of this section, expenses which are deducted for federal income tax purposes
under section 642(g) of the Internal Revenue Code as amended through December 31,
2002, are not allowable in computing the tax under this chapter.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for decedents dying after December
31, 2006.
new text end

Sec. 3.

Minnesota Statutes 2006, section 291.03, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given in this subdivision.
new text end

new text begin (b) "Family member" means a family member as defined in section 2032A(e)(2) of
the Internal Revenue Code.
new text end

new text begin (c) "Qualified heir" means a family member who acquired qualified property from
the decedent and satisfies the requirement under subdivision 9, clause (4), or under
subdivision 10, clause (6), for the property.
new text end

new text begin (d) "Qualified property" means qualified farm property under subdivision 9 and
qualified small business property under subdivision 10.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for decedents dying after December
31, 2006.
new text end

Sec. 4.

Minnesota Statutes 2006, section 291.03, is amended by adding a subdivision
to read:


new text begin Subd. 9. new text end

new text begin Qualified farm property. new text end

new text begin Property is qualified farm property if it satisfies
all of the following requirements:
new text end

new text begin (1) the value of the property was included in the Minnesota gross estate;
new text end

new text begin (2) the property consists of a farm that meets the requirements of section 500.24
and was classified for property tax purposes as the homestead of the decedent or the
decedent's spouse or both under section 273.124, and as class 2a property under section
273.13, subdivision 23;
new text end

new text begin (3) the decedent continuously owned the property for the three-year period ending
on the date of death of the decedent;
new text end

new text begin (4) a family member continuously uses the property in the operation of the trade or
business for three years following the date of death of the decedent; and
new text end

new text begin (5) the estate and the qualified heir elect to treat the property as qualified farm
property and agree, in a form prescribed by the commissioner, to pay the recapture tax
under subdivision 11, if applicable.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for decedents dying after December
31, 2006.
new text end

Sec. 5.

Minnesota Statutes 2006, section 291.03, is amended by adding a subdivision
to read:


new text begin Subd. 10. new text end

new text begin Qualified small business property. new text end

new text begin Property satisfying all of the
following requirements is qualified small business property:
new text end

new text begin (1) The value of the property was included in the Minnesota gross estate.
new text end

new text begin (2) The property consists of the assets of a trade or business or shares of stock or
other ownership interests in a corporation or other entity engaged in a trade or business.
The decedent or the decedent's spouse must have materially participated in the trade or
business within the meaning of section 469 of the Internal Revenue Code during the
taxable year that ended before the date of the decedent's death. Shares of stock in a
corporation or an ownership interest in another type of entity do not qualify under this
subdivision if the shares or ownership interests are traded on a public stock exchange at
any time during the three-year period ending on the decedent's date of death.
new text end

new text begin (3) The gross annual sales of the trade or business were $10,000,000 or less for the
last taxable year that ended before the date of the death of the decedent.
new text end

new text begin (4) The property does not consist of cash or cash equivalents. For property consisting
of shares of stock or other ownership interests in an entity, the amount of cash or cash
equivalents held by the corporation or other entity must be deducted from the value of
the property qualifying under this subdivision in proportion to the decedent's share of
ownership of the entity on the date of death.
new text end

new text begin (5) The decedent continuously owned the property for the three-year period ending
on the date of death of the decedent.
new text end

new text begin (6) A family member continuously uses the property in the operation of the trade or
business for three years following the date of death of the decedent.
new text end

new text begin (7) The estate and the qualified heir elect to treat the property as qualified small
business property and agree, in the form prescribed by the commissioner, to pay the
recapture tax under subdivision 11, if applicable.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for decedents dying after December
31, 2006.
new text end

Sec. 6.

Minnesota Statutes 2006, section 291.03, is amended by adding a subdivision
to read:


new text begin Subd. 11. new text end

new text begin Recapture tax. new text end

new text begin (a) The tax under this subdivision applies, if, within three
years after the decedent's death and before the death of the qualified heir, the qualified
heir disposes of any interest in qualified property, other than by a disposition to a family
member who satisfies the requirement under subdivision 9, clause (4), and subdivision
10, clause (6), for the remainder of the three years following the date of death of the
decedent, and who agrees, in a form prescribed by the commissioner, to pay the recapture
tax under this subdivision, if applicable.
new text end

new text begin (b) The amount of the additional tax equals the amount of the exclusion claimed
by the estate under section 291.005, subdivision 1, clause (9), item (v), multiplied by
16 percent.
new text end

new text begin (c) The additional tax under this subdivision is due on the day which is six months
after the date of the disposition or cessation in paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for decedents dying after December
31, 2006.
new text end

Sec. 7.

Minnesota Statutes 2006, section 291.215, subdivision 1, is amended to read:


Subdivision 1.

Determination.

All property includable in the Minnesota gross
estate of a decedent shall be valued in accordance with the provisions of sections 2031 or
2032 and, if applicable, 2032A, of the Internal Revenue Code and any elections made in
valuing the federal gross estate shall be applicable in valuing the Minnesota gross estate.
deleted text begin Values for purposes of the estate tax on both probate and nonprobate assets shall be the
same as those finally determined for purposes of the federal estate tax on a decedent's
estate.
deleted text endnew text begin Except as otherwise provided in section 291.075, the value of all property
includable in the Minnesota gross estate of a decedent may be independently determined
under those sections of the Internal Revenue Code for Minnesota estate tax purposes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for estates of decedents
dying after December 31, 2005.
new text end

Sec. 8.

new text begin [295.90] HOCKEY HERITAGE SURCHARGE.
new text end

new text begin Subdivision 1. new text end

new text begin Imposition. new text end

new text begin A surcharge of ten cents is imposed on each ticket or
admission to a professional men's hockey game held in the state.
new text end

new text begin Subd. 2. new text end

new text begin Collection, remittance. new text end

new text begin The surcharge imposed under this subdivision
shall be collected by the professional men's hockey team or association sponsoring or
holding the hockey game. The team or association shall annually report the surcharge on a
form prescribed by the commissioner of revenue and remit the surcharge with the return to
the commissioner of revenue by March 15 of the following calendar year.
new text end

new text begin Subd. 3. new text end

new text begin Administration. new text end

new text begin The commissioner of revenue shall have authority to
administer, collect, enforce, refund, and audit the surcharge under this section. Interest
on late payments or refunds of the surcharge shall be at the rates specified under section
289A.55, and penalties for failure to file, pay, or underpay the surcharge shall be at the
rates provided under section 289A.60, subdivision 1, paragraph (e), and subdivision 2.
new text end

new text begin Subd. 4. new text end

new text begin Deposit of revenues. new text end

new text begin The commissioner of revenue shall deposit all
revenues, including penalty and interest, derived from the surcharge imposed in this
section in the hockey surcharge account in the special revenue fund. The amount deposited
under this section is appropriated to the Iron Range Resources and Rehabilitation Board
for payment to the city of Eveleth to be used for the support of the Hockey Hall of Fame
Museum provided that it continues to operate in the city. Payments under this section for
the Hockey Hall of Fame Museum are in addition to and must not be used to supplant
funding under section 298.28, subdivision 9c.
new text end

Sec. 9.

Minnesota Statutes 2006, section 296A.18, subdivision 4, is amended to read:


Subd. 4.

All-terrain vehicle.

Approximately deleted text begin0.15deleted text end new text begin0.27 new text endof one percent of all gasoline
received in or produced or brought into this state, except gasoline used for aviation
purposes, is being used for the operation of all-terrain vehicles in this state, and of the total
revenue derived from the imposition of the gasoline fuel tax, deleted text begin0.15deleted text end new text begin0.27 new text endof one percent is
the amount of tax on fuel used in all-terrain vehicles operated in this state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue received after June
30, 2008.
new text end

Sec. 10.

Minnesota Statutes 2006, section 297E.02, is amended by adding a subdivision
to read:


new text begin Subd. 12. new text end

new text begin Tax rates for fiscal years 2008 to 2010. new text end

new text begin (a) Notwithstanding the
provisions of subdivisions 1, 4, and 6, the tax rates under this subdivision apply in lieu of
the rates in those subdivisions for the periods specified.
new text end

new text begin (b) For purposes of subdivision 1, a rate of 7.9 percent must be used for gross
receipts received after June 30, 2007, and before July 1, 2010.
new text end

new text begin (c) For purposes of subdivision 4, paragraph (a), a tax rate of 1.6 percent applies
from July 1, 2007, through June 30, 2010, and a refund or credit rate of 1.65 percent
applies for the February 2008 and February 2011 monthly returns and a refund or credit
rate of 1.6 percent applies for the February 2009 and February 2010 monthly returns.
new text end

new text begin (d) For purposes of subdivision 6, the following combined receipts tax rates apply
for fiscal years 2008, 2009, and 2010:
new text end

new text begin If combined receipts for the fiscal
year are:
new text end
new text begin The tax is:
new text end
new text begin Not over $500,000
new text end
new text begin zero
new text end
new text begin Over $500,000, but not over
$700,000
new text end
new text begin 1.6 percent of the amount over
$500,000, but not over $700,000
new text end
new text begin Over $700,000, but not over
$900,000
new text end
new text begin $3,200 plus 3.2 percent of the
amount over $700,000, but not
over $900,000
new text end
new text begin Over $900,000
new text end
new text begin $9,600 plus 4.7 percent of the
amount over $900,000
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective on July 1, 2007.
new text end

Sec. 11.

Minnesota Statutes 2006, section 297F.01, is amended by adding a subdivision
to read:


new text begin Subd. 10b. new text end

new text begin Moist snuff. new text end

new text begin "Moist snuff" means any finely cut, ground, or powdered
smokeless tobacco that is intended to be placed or dipped in the oral cavity.
new text end

Sec. 12.

Minnesota Statutes 2006, section 297F.01, subdivision 19, is amended to read:


Subd. 19.

Tobacco products.

"Tobacco products" means cigars; little cigars;
cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other
smoking tobacco; snuffnew text begin, including moist snuff and dry snuffnew text end; snuff flour; cavendish; plug
and twist tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings,
cuttings and sweepings of tobacco, and other kinds and forms of tobacco, prepared in
such manner as to be suitable for chewing or smoking in a pipe or otherwise, or both for
chewing and smoking; but does not include cigarettes as defined in this section.

Sec. 13.

Minnesota Statutes 2006, section 297F.05, subdivision 3, is amended to read:


Subd. 3.

Rates; tobacco products.

A tax is imposed upon all tobacco products in
this state and upon any person engaged in business as a distributor, at the deleted text beginratedeleted text endnew text begin ratesnew text end ofnew text begin:
new text end

new text begin (i) new text end35 percent of the wholesale sales price of the tobacco productsnew text begin other than moist
snuff; and
new text end

new text begin (ii) in the case of moist snuff, the greater of (A) 91 cents per ounce on the net weight
of the moist snuff in ounces, including a proportionate tax at the like rate on any fractional
parts of an ounce, as listed by the manufacturer and rounded up to the nearest one-tenth
of an ounce, or (B) $1.09 per container
new text end.

The tax is imposed at the time the distributor:

(1) brings, or causes to be brought, into this state from outside the state tobacco
products for sale;

(2) makes, manufactures, or fabricates tobacco products in this state for sale in
this state; or

(3) ships or transports tobacco products to retailers in this state, to be sold by those
retailers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007, but does not apply to
any moist snuff (i) that was in the inventory of a distributor, wholesaler, or retail dealer
within this state on that date, and (ii) as to which the tax levied by Minnesota Statutes,
section 297F.05, subdivision 3, and the tobacco health impact fee levied by Minnesota
Statutes, section 256.9658, subdivision 3, paragraph (b), had been paid as of August
1, 2007.
new text end

Sec. 14.

Minnesota Statutes 2006, section 297F.05, subdivision 4, is amended to read:


Subd. 4.

Use tax; tobacco products.

A tax is imposed upon the use or storage by
consumers of tobacco products in this state, and upon such consumers, at the deleted text beginratedeleted text endnew text begin ratesnew text end ofnew text begin:
new text end

new text begin (i) new text end35 percent of the cost to the consumer of the tobacco productsnew text begin other than moist
snuff; and
new text end

new text begin (ii) in the case of moist snuff, the greater of (A) 91 cents per ounce on the net weight
of the moist snuff in ounces, including a proportionate tax at the like rate on any fractional
parts of an ounce, as listed by the manufacturer and rounded up to the nearest one-tenth
of an ounce, or (B) $1.09 per container
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007, but does not apply to
any moist snuff (i) that was in the inventory of a distributor, wholesaler, or retail dealer
within this state on that date, or in the possession of a consumer within this state on
that date, and (ii) as to which the tax levied by Minnesota Statutes, section 297F.05,
subdivisions 3 and 4, and the tobacco health impact fee levied by Minnesota Statutes,
section 256.9658, subdivision 3, paragraph (b), had been paid as of August 1, 2007.
new text end

Sec. 15.

Minnesota Statutes 2006, section 297F.05, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Adjustment for inflation. new text end

new text begin (a) Each year the rates of tax applicable to
moist snuff under subdivisions 3 and 4 are adjusted for inflation as provided in this
section. The inflation adjusted rate of tax applies to sales, use and possession of moist
snuff during the calendar year.
new text end

new text begin (b) In making the inflation adjustment under this subdivision for a calendar year, the
commissioner shall adjust the tax rate by the percentage determined under the section 1(f)
of the Internal Revenue Code of 1986, except that in section 1(f)(3)(B) the word "2007"
is substituted for the word "1992." For 2009, the commissioner shall then determine the
percent change from the 12 months ending on August 31, 2007, to the 12 months ending
on August 31, 2008, and in each subsequent year, from the 12 months ending on August
31, 2007, to the 12 months ending on August 31 of the year preceding the calendar year.
The amount as adjusted must be rounded to the nearest cent. If the amount ends in 0.5
cent, the amount is rounded up to the nearest cent.
new text end

new text begin (c) The determination of the commissioner under this subdivision is not a "rule" and
is not subject to the Administrative Procedure Act in chapter 14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning for calendar year 2009.
new text end

Sec. 16.

Minnesota Statutes 2006, section 297F.21, subdivision 3, is amended to read:


Subd. 3.

Inventory; judicial determination; appeal; disposition of seized
property.

(a) Within ten days after the seizure of any alleged contraband, the person
making the seizure shall serve by certified mail an inventory of the property seized on the
person from whom the seizure was made, if known, and on any person known or believed
to have any right, title, interest, or lien in the property, at the last known address, and file
a copy with the commissioner. The notice must include an explanation of the right to
demand a judicial forfeiture determination.

(b) Within 60 days after the date of service of the inventory, which is the date of
mailing, the person from whom the property was seized or any person claiming an interest
in the property may file a demand for a judicial determination of the question as to whether
the property was lawfully subject to seizure and forfeiture. The demand must be in the
form of a civil complaint and must be filed with the court administrator in the county in
which the seizure occurred, together with proof of service of a copy of the complaint
on the commissioner of revenue, and the standard filing fee for civil actions unless the
petitioner has the right to sue in forma pauperis under section 563.01. If the value of the
seized property is $7,500 or less, the claimant may file an action in conciliation court for
recovery of the property. If the value of the seized property is less than $500, the claimant
does not have to pay the conciliation court filing fee.

(c) The complaint must be captioned in the name of the claimant as plaintiff and
the seized property as defendant, and must state with specificity the grounds on which
the claimant alleges the property was improperly seized and the plaintiff's interest in the
property seized. No responsive pleading is required of the commissioner, and no court
fees may be charged for the commissioner's appearance in the matter. The proceedings
are governed by the Rules of Civil Procedure. Notwithstanding any law to the contrary,
an action for the return of property seized under this section may not be maintained by
or on behalf of any person who has been served with an inventory unless the person has
complied with this subdivision. The court shall decide whether the alleged contraband is
contraband, as defined in subdivision 1. The court shall hear the action without a jury and
shall try and determine the issues of fact and law involved.

(d) When a judgment of forfeiture is entered, deleted text beginthe commissioner may,deleted text end unless the
judgment is stayed pending an appeal, deleted text begineitherdeleted text endnew text begin the commissionernew text end:

(1) deleted text begindeliver the forfeited cigarette packages or tobacco products to the commissioner
of human services for use by patients in state institutions
deleted text endnew text begin may authorize the forfeited
property to be used for the purpose of enforcing a criminal provision of state or federal law
new text end;

(2) new text beginshall new text endcause deleted text beginthe property in clause (1)deleted text endnew text begin forfeited cigarette packages or tobacco
products not used under clause (1)
new text end to be destroyeddeleted text begin; ordeleted text endnew text begin and products used under clause (1)
to be destroyed upon the completion of use; and
new text end

(3) new text beginmay new text endcause the forfeited propertynew text begin, other than forfeited cigarette packages or
tobacco products,
new text end to be sold at public auction as provided by law.

The person making a sale, after deducting the expense of keeping the property, the fee
for seizure, and the costs of the sale, shall pay all liens according to their priority, which
are established as being bona fide and as existing without the lienor having any notice
or knowledge that the property was being used or was intended to be used for or in
connection with the violation. The balance of the proceeds must be paid 75 percent to the
Department of Revenue for deposit as a supplement to its operating fund or similar fund
for official use, and 25 percent to the county attorney or other prosecuting agency that
handled the court proceeding, if there is one, for deposit as a supplement to its operating
fund or similar fund for prosecutorial purposes. If there is no prosecuting authority
involved in the forfeiture, the 25 percent of the proceeds otherwise designated for the
prosecuting authority must be deposited into the general fund.

(e) If no demand for judicial determination is made, the property seized is considered
forfeited to the state by operation of law and may be disposed of by the commissioner as
provided in the case of a judgment of forfeiture.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for forfeitures after June 30, 2007.
new text end

Sec. 17.

Minnesota Statutes 2006, section 297I.15, is amended by adding a subdivision
to read:


new text begin Subd. 11. new text end

new text begin Premiums paid to certain foreign insurance companies. new text end

new text begin With respect
to the state employees group insurance program established under sections 43A.23 to
43A.31, premiums paid for life insurance and accidental death and dismemberment
insurance for eligible employees and dependents, including premiums paid by employees
or dependents for optional coverage, are exempt from the taxes imposed under this chapter
to the extent the premiums are paid to a foreign insurance company domiciled in a state
that exempts its state employee group life insurance program from premium taxes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for premiums paid after December
31, 2006.
new text end

Sec. 18.

new text begin [383D.75] DAKOTA COUNTY DEED AND MORTGAGE TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Authority to impose; rate. new text end

new text begin (a) The governing body of Dakota
County may impose a mortgage registry and deed tax.
new text end

new text begin (b) The rate of the mortgage registry tax equals .0001 of the principal.
new text end

new text begin (c) The rate of the deed tax equals .0001 of the amount.
new text end

new text begin Subd. 2. new text end

new text begin General law provisions apply. new text end

new text begin The taxes under this section apply to
the same base and must be imposed, collected, administered, and enforced in the same
manner as provided under chapter 287 for the state mortgage registry and deed taxes.
All the provisions of chapter 287 apply to these taxes, except the rate is as specified in
subdivision 1, the term "Dakota County" must be substituted for "the state," and the
revenue must be deposited as provided in subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Deposit of revenues. new text end

new text begin All revenues from the tax are for the use of
the Dakota County Board of Commissioners and must be deposited in the county's
environmental response fund under section
new text end

Sec. 19.

new text begin [383D.76] DAKOTA COUNTY ENVIRONMENTAL RESPONSE FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin An environmental response fund is created for the purposes
specified in this section. The taxes imposed by section 383D.75 must be deposited in the
fund. The Board of County Commissioners shall administer the fund either as a county
board, a housing and redevelopment authority, or a regional rail authority.
new text end

new text begin Subd. 2. new text end

new text begin Uses of fund. new text end

new text begin The fund created in subdivision 1 must be used for the
following purposes:
new text end

new text begin (1) acquisition through purchase or condemnation of lands or property which are
polluted or contaminated with hazardous substances;
new text end

new text begin (2) paying the costs associated with indemnifying or holding harmless the
entity taking title to lands or property from any liability arising out of the ownership,
remediation, or use of the land or property;
new text end

new text begin (3) paying for the costs of remediating the acquired land or property;
new text end

new text begin (4) paying the costs associated with remediating lands or property which are polluted
or contaminated with hazardous substances; or
new text end

new text begin (5) paying for the costs associated with improving the property for economic
development, recreational, housing, transportation or rail traffic.
new text end

new text begin Subd. 3. new text end

new text begin Matching funds. new text end

new text begin In expending funds under this section, the county shall
seek matching funds from contamination cleanup funds administered by the commissioner
of the Department of Employment and Economic Development, the Metropolitan Council,
the federal government, the private sector, and any other source.
new text end

new text begin Subd. 4. new text end

new text begin Bonds. new text end

new text begin The county may pledge the proceeds from the taxes imposed by
section to bonds issued under this chapter and chapters 398A, 462, 469, and 475.
new text end

new text begin Subd. 5. new text end

new text begin Land sales. new text end

new text begin Land or property acquired under this section may be resold
at fair market value. Proceeds from the sale of the land must be deposited in the
environmental response fund.
new text end

Sec. 20.

new text begin [383E.235] ANOKA COUNTY DEED AND MORTGAGE TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Authority to impose; rate. new text end

new text begin (a) The governing body of Anoka
County may impose a mortgage registry and deed tax.
new text end

new text begin (b) The rate of the mortgage registry tax equals .0001 of the principal.
new text end

new text begin (c) The rate of the deed tax equals .0001 of the amount.
new text end

new text begin Subd. 2. new text end

new text begin General law provisions apply. new text end

new text begin The taxes under this section apply to
the same base and must be imposed, collected, administered, and enforced in the same
manner as provided under chapter 287 for the state mortgage registry and deed taxes.
All the provisions of chapter 287 apply to these taxes, except the rate is as specified
in subdivision 1, the term "Anoka County" must be substituted for "the state," and the
revenue must be deposited as provided in subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Deposit of revenues. new text end

new text begin All revenues from the tax are for the use of the Anoka
County Board of Commissioners and must be deposited in the county's environmental
response fund under section 383E.236.
new text end

Sec. 21.

new text begin [383E.236] ANOKA COUNTY ENVIRONMENTAL RESPONSE FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin An environmental response fund is created for the purposes
specified in this section. The taxes imposed by section 383E.235 must be deposited in the
fund. The Board of County Commissioners shall administer the fund either as a county
board, a housing and redevelopment authority, or a regional rail authority.
new text end

new text begin Subd. 2. new text end

new text begin Uses of fund. new text end

new text begin The fund created in subdivision 1 must be used for the
following purposes:
new text end

new text begin (1) acquisition through purchase or condemnation of lands or property which are
polluted or contaminated with hazardous substances;
new text end

new text begin (2) paying the costs associated with indemnifying or holding harmless the
entity taking title to lands or property from any liability arising out of the ownership,
remediation, or use of the land or property;
new text end

new text begin (3) paying for the costs of remediating the acquired land or property;
new text end

new text begin (4) paying the costs associated with remediating lands or property which are polluted
or contaminated with hazardous substances; or
new text end

new text begin (5) paying for the costs associated with improving the property for economic
development, recreation, housing, transportation, or rail traffic.
new text end

new text begin Subd. 3. new text end

new text begin Matching funds. new text end

new text begin In expending funds under this section, the county shall
seek matching funds from contamination cleanup funds administered by the commissioner
of the Department of Employment and Economic Development, the Metropolitan Council,
the federal government, the private sector, and any other source.
new text end

new text begin Subd. 4. new text end

new text begin Bonds. new text end

new text begin The county may pledge the proceeds from the taxes imposed by
section 383E.235 to bonds issued under this section and Minnesota Statutes, chapters
398A, 462, 469, and 475.
new text end

new text begin Subd. 5. new text end

new text begin Land sales. new text end

new text begin Land or property acquired under this section may be resold
at fair market value. Proceeds from the sale of the land must be deposited in the
environmental response fund.
new text end

new text begin Subd. 6. new text end

new text begin DOT assistance. new text end

new text begin The commissioner of transportation shall collaborate with
the county and any affected municipality by providing technical assistance and support in
cleaning up a contaminated site related to a trunk highway or railroad improvement.
new text end

Sec. 22. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 383A.80, subdivision 4; and 383B.80, subdivision
4,
new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 10

DEPARTMENT INCOME AND FRANCHISE TAXES

Section 1.

Minnesota Statutes 2006, section 270A.03, subdivision 5, is amended to
read:


Subd. 5.

Debt.

new text begin(a) new text end"Debt" means a legal obligation of a natural person to pay a fixed
and certain amount of money, which equals or exceeds $25 and which is due and payable
to a claimant agency. The term includes criminal fines imposed under section 609.10 or
609.125, fines imposed for petty misdemeanors as defined in section 609.02, subdivision
4a
, and restitution. The term also includes the co-payment for the appointment of a district
public defender imposed under section 611.17, paragraph (c). A debt may arise under a
contractual or statutory obligation, a court order, or other legal obligation, but need not
have been reduced to judgment.

A debt includes any legal obligation of a current recipient of assistance which is
based on overpayment of an assistance grant where that payment is based on a client
waiver or an administrative or judicial finding of an intentional program violation;
or where the debt is owed to a program wherein the debtor is not a client at the time
notification is provided to initiate recovery under this chapter and the debtor is not a
current recipient of food support, transitional child care, or transitional medical assistance.

new text begin (b) new text endA debt does not include any legal obligation to pay a claimant agency for medical
care, including hospitalization if the income of the debtor at the time when the medical
care was rendered does not exceed the following amount:

(1) for an unmarried debtor, an income of $8,800 or less;

(2) for a debtor with one dependent, an income of $11,270 or less;

(3) for a debtor with two dependents, an income of $13,330 or less;

(4) for a debtor with three dependents, an income of $15,120 or less;

(5) for a debtor with four dependents, an income of $15,950 or less; and

(6) for a debtor with five or more dependents, an income of $16,630 or less.

deleted text begin The income amounts in this subdivision shall be adjusted for inflation for debts
incurred in calendar years 2001 and thereafter. The dollar amount of each income level
that applied to debts incurred in the prior year shall be increased in the same manner
as provided in section 1(f) of the Internal Revenue Code of 1986, as amended through
December 31, 2000, except that for the purposes of this subdivision the percentage
increase shall be determined from the year starting September 1, 1999, and ending August
31, 2000, as the base year for adjusting for inflation for debts incurred after December
31, 2000.
deleted text end new text begin (c) The commissioner shall adjust the income amounts in paragraph (b) by the
percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue
Code, except that in section 1(f)(3)(B) the word "1999" shall be substituted for the word
"1992." For 2001, the commissioner shall then determine the percent change from the 12
months ending on August 31, 1999, to the 12 months ending on August 31, 2000, and in
each subsequent year, from the 12 months ending on August 31, 1999, to the 12 months
ending on August 31 of the year preceding the taxable year. The determination of the
commissioner pursuant to this subdivision shall not be considered a "rule" and shall not
be subject to the Administrative Procedure Act contained in chapter 14. The income
amount as adjusted must be rounded to the nearest $10 amount. If the amount ends in
$5, the amount is rounded up to the nearest $10 amount.
new text end

new text begin (d) new text endDebt also includes an agreement to pay a MinnesotaCare premium, regardless of
the dollar amount of the premium authorized under section 256L.15, subdivision 1a.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for debts incurred after December
31, 2006.
new text end

Sec. 2.

Minnesota Statutes 2006, section 289A.08, subdivision 11, is amended to read:


Subd. 11.

Information included in income tax return.

new text begin(a) new text endThe return must statenew text begin:
new text end

new text begin (1)new text end the name of the taxpayer, or taxpayers, if the return is a joint return, and the
address of the taxpayer in the same name or names and same address as the taxpayer has
used in making the taxpayer's income tax return to the United Statesdeleted text begin, and must statedeleted text endnew text begin;
new text end

new text begin (2) the date or dates of birth of the taxpayer or taxpayers;
new text end

new text begin (3)new text end the Social Security number of the taxpayer, or taxpayers, if a Social Security
number has been issued by the United States with respect to the taxpayersdeleted text begin, and must
state
deleted text endnew text begin; and
new text end

new text begin (4)new text end the amount of the taxable income of the taxpayer as it appears on the federal
return for the taxable year to which the Minnesota state return applies.

new text begin (b) new text endThe taxpayer must attach to the taxpayer's Minnesota state income tax return
a copy of the federal income tax return that the taxpayer has filed or is about to file for
the period, unless the taxpayer is eligible to telefile the federal return and does file the
Minnesota return by telefiling.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after
December 31, 2006.
new text end

Sec. 3.

Minnesota Statutes 2006, section 289A.09, subdivision 2, is amended to read:


Subd. 2.

Withholding statement to employee or payee and to commissioner.

(a)
A person required to deduct and withhold from an employee a tax under section 290.92,
subdivision 2a
or 3, or 290.923, subdivision 2, or who would have been required to
deduct and withhold a tax under section 290.92, subdivision 2a or 3, or persons required
to withhold tax under section 290.923, subdivision 2, determined without regard to
section 290.92, subdivision 19, if the employee or payee had claimed no more than one
withholding exemption, or who paid wages or made payments not subject to withholding
under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, to an employee or
person receiving royalty payments in excess of $600, or who has entered into a voluntary
withholding agreement with a payee under section 290.92, subdivision 20, must give
every employee or person receiving royalty payments in respect to the remuneration paid
by the person to the employee or person receiving royalty payments during the calendar
year, on or before January 31 of the succeeding year, or, if employment is terminated
before the close of the calendar year, within 30 days after the date of receipt of a written
request from the employee if the 30-day period ends before January 31, a written statement
showing the following:

(1) name of the person;

(2) the name of the employee or payee and the employee's or payee's Social Security
account number;

(3) the total amount of wages as that term is defined in section 290.92, subdivision
1
, paragraph (1); the total amount of remuneration subject to withholding under section
290.92, subdivision 20; the amount of sick pay as required under section 6051(f) of the
Internal Revenue Code; and the amount of royalties subject to withholding under section
290.923, subdivision 2; and

(4) the total amount deducted and withheld as tax under section 290.92, subdivision
2a
or 3, or 290.923, subdivision 2.

(b) The statement required to be furnished by deleted text beginthisdeleted text end paragraph new text begin(a) new text endwith respect to any
remuneration must be furnished at those times, must contain the information required, and
must be in the form the commissioner prescribes.

(c) The commissioner may prescribe rules providing for reasonable extensions of
time, not in excess of 30 days, to employers or payers required to give the statements to
their employees or payees under this subdivision.

(d) A duplicate of any statement made under this subdivision and in accordance
with rules prescribed by the commissioner, along with a reconciliation in the form the
commissioner prescribes of the statements for the calendar year, including a reconciliation
of the quarterly returns required to be filed under subdivision 1, must be filed with the
commissioner on or before February 28 of the year after the payments were made.

(e) If an employer cancels the employer's Minnesota withholding account number
required by section 290.92, subdivision 24, the information required by paragraph (d),
must be filed with the commissioner within 30 days of the end of the quarter in which
the employer cancels its account number.

(f) The employer must submit the statements required to be sent to the commissioner
deleted text begin on magnetic media, if the magnetic media wasdeleted text end new text beginin the same manner new text endrequired to satisfy the
federal reporting requirements of section 6011(e) of the Internal Revenue Code and the
regulations issued under it.new text begin For wages paid in calendar year 2007, an employer must
submit statements to the commissioner required by this section by electronic means if the
employer is required to send more than 100 statements to the commissioner, even though
the employer is not required to submit the returns federally by electronic means. For
calendar year 2008, the 100 statements threshold is reduced to 25, and for calendar year
2009 and thereafter, the threshold is reduced to ten.
new text end

(g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph
(a), clause (2), must submit the returns required by this subdivision and subdivision 1,
paragraph (a), with the commissioner by electronic means.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for wages paid after December 31,
2006.
new text end

Sec. 4.

Minnesota Statutes 2006, section 289A.12, subdivision 14, is amended to read:


Subd. 14.

Regulated investment companies; reporting exempt-interest
dividends.

(a) A regulated investment company paying $10 or more in exempt-interest
dividends to an individual who is a resident of Minnesota must make a return indicating
the amount of the exempt-interest dividends, the name, address, and Social Security
number of the recipient, and any other information that the commissioner specifies. The
return must be provided to the shareholder no later than 30 days after the close of the
taxable year. The return provided to the shareholder must include a clear statement, in the
form prescribed by the commissioner, that the exempt-interest dividends must be included
in the computation of Minnesota taxable income. Thedeleted text begin commissioner may by notice and
demand require the
deleted text end regulated investment company new text beginis required in a manner prescribed by
the commissioner
new text endto file a copy of the return with the commissioner.

(b) This subdivision applies to regulated investment companies required to register
under chapter 80A.

(c) For purposes of this subdivision, the following definitions apply.

(1) "Exempt-interest dividends" mean exempt-interest dividends as defined in
section 852(b)(5) of the Internal Revenue Code, but does not include the portion of
exempt-interest dividends that are not required to be added to federal taxable income
under section 290.01, subdivision 19a, clause (1)(ii).

(2) "Regulated investment company" means regulated investment company as
defined in section 851(a) of the Internal Revenue Code or a fund of the regulated
investment company as defined in section 851(g) of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after
December 31, 2006.
new text end

Sec. 5.

Minnesota Statutes 2006, section 289A.18, subdivision 1, is amended to read:


Subdivision 1.

Individual income, fiduciary income, corporate franchise, and
entertainment taxes; partnership and S corporation returns; information returns;
mining company returns.

The returns required to be made under sections 289A.08 and
289A.12 must be filed at the following times:

(1) returns made on the basis of the calendar year must be filed on April 15 following
the close of the calendar year, except that returns of corporations must be filed on March
15 following the close of the calendar year;

(2) returns made on the basis of the fiscal year must be filed on the 15th day of the
fourth month following the close of the fiscal year, except that returns of corporations
must be filed on the 15th day of the third month following the close of the fiscal year;

(3) returns for a fractional part of a year must be filed on the 15th day of the fourth
month following the end of the month in which falls the last day of the period for which
the return is made, except that the returns of corporations must be filed on the 15th day of
the third month following the end of the tax year of the unitary group in which falls the
last day of the period for which the return is made;

(4) in the case of a final return of a decedent for a fractional part of a year, the return
must be filed on the 15th day of the fourth month following the close of the 12-month
period that began with the first day of that fractional part of a year;

(5) in the case of the return of a cooperative association, returns must be filed on or
before the 15th day of the ninth month following the close of the taxable year;

(6) if a corporation has been divested from a unitary group and files a return for
a fractional part of a year in which it was a member of a unitary business that files a
combined report under section 290.34, subdivision 2, the divested corporation's return
must be filed on the 15th day of the third month following the close of the common
accounting period that includes the fractional year;

(7) returns of entertainment entities must be filed on April 15 following the close of
the calendar year;

(8) returns required to be filed under section 289A.08, subdivision 4, must be filed
on the 15th day of the fifth month following the close of the taxable year;

(9) returns of mining companies must be filed on May 1 following the close of the
calendar year; and

(10) returns required to be filed with the commissioner under section 289A.12,
subdivision 2
deleted text begin,deleted text end new text beginor new text end4 to 10, deleted text beginor 14,deleted text end must be filed within 30 days after being demanded by
the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after
December 31, 2006.
new text end

Sec. 6.

Minnesota Statutes 2006, section 289A.60, subdivision 8, is amended to read:


Subd. 8.

deleted text beginPenalty fordeleted text end new text beginPenalties; new text endfailure to file informational returnnew text begin; incorrect
taxpayer identification number
new text end.

new text begin(a) new text endIn the case of a failure to file an informational return
required by section 289A.12 with the commissioner on the date prescribed (determined
with regard to any extension of time for filing), the person failing to file the return shall pay
a penalty of $50 for each failure or in the case of a partnership, S corporation, or fiduciary
return, $50 for each partner, shareholder, or beneficiary; but the total amount imposed on
the delinquent person for all failures during any calendar year must not exceed $25,000. If
a failure to file a return is due to intentional disregard of the filing requirement, then the
penalty imposed under the preceding sentence must not be less than an amount equal to:

(1) in the case of a return not described in clause (2) or (3), ten percent of the
aggregate amount of the items required to be reported;

(2) in the case of a return required to be filed under section 289A.12, subdivision 5,
five percent of the gross proceeds required to be reported; and

(3) in the case of a return required to be filed under section 289A.12, subdivision 9,
relating to direct sales, $100 for each failure; however, the total amount imposed on the
delinquent person for intentional failures during a calendar year must not exceed $50,000.
The penalty must be collected in the same manner as a delinquent income tax.

new text begin (b) If a partnership or S corporation files a partnership or S corporation return with
an incorrect tax identification number used for a partner or shareholder after being notified
by the commissioner that the identification number is incorrect, the partnership or S
corporation must pay a penalty of $50 for each such incorrect number.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for returns filed after December
31, 2007.
new text end

Sec. 7.

Minnesota Statutes 2006, section 289A.60, subdivision 12, is amended to read:


Subd. 12.

Penalties relating to property tax refunds.

(a) If it is determined that a
property tax refund claim is excessive and was negligently prepared, new text begina claimant is liable
for a penalty of
new text endten percent of the deleted text begincorrected claim must bedeleted text end disallowednew text begin claimnew text end. If the claim
has been paid, the amount disallowed must be recovered by assessment and collection.

(b) An owner who without reasonable cause fails to give a certificate of rent
constituting property tax to a renter, as required by section 290A.19, paragraph (a), is
liable to the commissioner for a penalty of $100 for each failure.

(c) If the owner or managing agent knowingly gives rent certificates that report total
rent constituting property taxes in excess of the amount of actual rent constituting property
taxes paid on the rented part of a property, the owner or managing agent is liable for a
penalty equal to the greater of (1) $100 or (2) 50 percent of the excess that is reported. An
overstatement of rent constituting property taxes is presumed to be knowingly made if it
exceeds by ten percent or more the actual rent constituting property taxes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property tax refund claims filed
on or after July 1, 2007.
new text end

Sec. 8.

Minnesota Statutes 2006, section 289A.60, subdivision 27, is amended to read:


Subd. 27.

Reportable transaction understatement.

(a) If a taxpayer has a
reportable transaction understatement for any taxable year, an amount equal to 20 percent
of the amount of the reportable transaction understatement must be added to the tax.

(b)(1) For purposes of this subdivision, "reportable transaction understatement"
means the product of:

(i) the amount of the increase, if any, in taxable income that results from a difference
between the proper tax treatment of an item to which this section applies and the taxpayer's
treatment of that item as shown on the taxpayer's tax return; and

(ii) the highest rate of tax imposed on the taxpayer under section 290.06 determined
without regard to the understatement.

(2) For purposes of clause (1)(i), any reduction of the excess of deductions allowed
for the taxable year over gross income for that year, and any reduction in the amount of
capital losses which would, without regard to section 1211 of the Internal Revenue Code,
be allowed for that year, must be treated as an increase in taxable income.

(c) This subdivision applies to any item that is attributable to:

(1) any listed transaction under section 289A.121; and

(2) any reportable transaction, other than a listed transaction, if a significant purpose
of that transaction is the avoidance or evasion of federal income tax liability.

(d) Paragraph (a) applies by substituting "30 percent" for "20 percent" with respect
to the portion of any reportable transaction understatement with respect to which the
disclosure requirements of section 289A.121, subdivision 5, and section 6664(d)(2)(A)
of the Internal Revenue Code are not met.

(e)(1) No penalty applies under this subdivision with respect to any portion of a
reportable transaction understatement if the taxpayer shows that there was reasonable
cause for the portion and that the taxpayer acted in good faith with respect to the portion.
This paragraph applies only if:

(i) the relevant facts affecting the tax treatment of the item are adequately disclosed
as required under section 289A.121;

(ii) there is or was substantial authority for the treatment; and

(iii) the taxpayer reasonably believed that the treatment was more likely than not
the proper treatment.

(2) A taxpayer who did not adequately disclose under section 289A.121 meets
the requirements of clause (1)(i), if the commissioner abates the penalty new text beginimposed by
subdivision 26, paragraph (d),
new text endunder deleted text beginsection 270C.34deleted text endnew text begin subdivision 26, paragraph (g)new text end.

(3) For purposes of clause (1)(iii), a taxpayer is treated as having a reasonable belief
with respect to the tax treatment of an item only if the belief:

(i) is based on the facts and law that exist when the return of tax which includes the
tax treatment is filed; and

(ii) relates solely to the taxpayer's chances of success on the merits of the treatment
and does not take into account the possibility that a return will not be audited, the
treatment will not be raised on audit, or the treatment will be resolved through settlement
if it is raised.

(4) An opinion of a tax advisor may not be relied upon to establish the reasonable
belief of a taxpayer if:

(i) the tax advisor:

(A) is a material advisor, as defined in section 289A.121, and participates in the
organization, management, promotion, or sale of the transaction or is related (within the
meaning of section 267(b) or 707(b)(1) of the Internal Revenue Code) to any person
who so participates;

(B) is compensated directly or indirectly by a material advisor with respect to the
transaction;

(C) has a fee arrangement with respect to the transaction which is contingent on all
or part of the intended tax benefits from the transaction being sustained; or

(D) has a disqualifying financial interest with respect to the transaction, as
determined under United States Treasury regulations prescribed to implement the
provisions of section 6664(d)(3)(B)(ii)(IV) of the Internal Revenue Code; or

(ii) the opinion:

(A) is based on unreasonable factual or legal assumptions, including assumptions
as to future events;

(B) unreasonably relies on representations, statements, findings, or agreements of
the taxpayer or any other person;

(C) does not identify and consider all relevant facts; or

(D) fails to meet any other requirement as the Secretary of the Treasury may
prescribe under federal law.

(f) The penalty imposed by this subdivision applies in lieu of the penalty imposed
under subdivision 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Minnesota Statutes 2006, section 289A.60, is amended by adding a subdivision
to read:


new text begin Subd. 28. new text end

new text begin Preparer identification number. new text end

new text begin Any Minnesota individual income tax
return or claim for refund prepared by a "tax refund or return preparer" as defined in
subdivision 13, paragraph (f), shall bear the identification number the preparer is required
to use federally under section 6109(a)(4) of the Internal Revenue Code. A tax refund
or return preparer who prepares a Minnesota individual income tax return or claim for
refund and fails to include the required number on the return or claim is subject to a
penalty of $50 for each failure.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for returns prepared for tax years
beginning after December 31, 2006.
new text end

Sec. 10.

Minnesota Statutes 2006, section 290.06, subdivision 33, is amended to read:


Subd. 33.

Bovine testing credit.

(a) An owner of cattle in Minnesota may take a
credit against the tax due under this chapter for an amount equal to one-half the expenses
incurred during the taxable year to conduct tuberculosis testing on those cattle.

(b) If the amount of credit which the taxpayer is eligible to receive under this
subdivision exceeds the taxpayer's tax liability under this chapter, the commissioner of
revenue shall refund the excess to the taxpayer.

(c) The amount necessary to pay claims for the refund provided in this subdivision is
appropriated from the general fund to the commissioner of revenue.

new text begin (d) Expenses incurred in a calendar year in which tuberculosis testing of cattle in
Minnesota is not federally required are not allowed in claiming the credit under paragraph
(a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after
December 31, 2007.
new text end

Sec. 11.

Minnesota Statutes 2006, section 290.067, subdivision 2b, is amended to read:


Subd. 2b.

Inflation adjustment.

new text beginThe commissioner shall adjust new text endthe dollar amount
of the income threshold at which the maximum credit begins to be reduced under
subdivision 2 deleted text beginmust be adjusted for inflation. The commissioner shall make the inflation
adjustments in accordance with section 1(f) of the Internal Revenue Code except that for
the purposes of this subdivision the percentage increase must be determined from the year
starting September 1, 1999, and ending August 31, 2000, as the base year for adjusting
for inflation for the tax year beginning after December 31, 2000. The determination of
the commissioner under this subdivision is not a rule under the Administrative Procedure
Act.
deleted text endnew text begin by the percentage determined pursuant to the provisions of section 1(f) of the Internal
Revenue Code, except that in section 1(f)(3)(B) the word "1999" shall be substituted for
the word "1992." For 2001, the commissioner shall then determine the percent change
from the 12 months ending on August 31, 1999, to the 12 months ending on August 31,
2000, and in each subsequent year, from the 12 months ending on August 31, 1999, to the
12 months ending on August 31 of the year preceding the taxable year. The determination
of the commissioner pursuant to this subdivision must not be considered a "rule" and is
not subject to the Administrative Procedure Act contained in chapter 14. The threshold
amount as adjusted must be rounded to the nearest $10 amount. If the amount ends in
$5, the amount is rounded up to the nearest $10 amount.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after
December 31, 2006.
new text end

Sec. 12.

Minnesota Statutes 2006, section 290.0671, subdivision 7, is amended to read:


Subd. 7.

Inflation adjustment.

The earned income amounts used to calculate the
credit and the income thresholds at which the maximum credit begins to be reduced in
subdivision 1 must be adjusted for inflation. The commissioner shall deleted text beginmake the inflation
adjustments in accordance with section 1(f) of the Internal Revenue Code except that for
the purposes of this subdivision the percentage increase shall be determined from the year
starting September 1, 1999, and ending August 31, 2000, as the base year for adjusting for
inflation for the tax year beginning after December 31, 2000.
deleted text end new text beginadjust by the percentage
determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except
that in section 1(f)(3)(B) the word "1999" shall be substituted for the word "1992." For
2001, the commissioner shall then determine the percent change from the 12 months
ending on August 31, 1999, to the 12 months ending on August 31, 2000, and in each
subsequent year, from the 12 months ending on August 31, 1999, to the 12 months ending
on August 31 of the year preceding the taxable year. The earned income thresholds as
adjusted for inflation must be rounded to the nearest $10 amount. If the amount ends
in $5, the amount is rounded up to the nearest $10 amount.
new text endThe determination of the
commissioner under this subdivision is not a rule under the Administrative Procedure Act.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after
December 31, 2006.
new text end

Sec. 13.

Minnesota Statutes 2006, section 290.191, subdivision 8, is amended to read:


Subd. 8.

Deposit; definition.

(a) "Deposit," as used in subdivision deleted text begin7deleted text endnew text begin 6, paragraph
(n)
new text end, has the meanings in this subdivision.

(b) "Deposit" means the unpaid balance of money or its equivalent received or
held by a financial institution in the usual course of business and for which it has given
or is obligated to give credit, either conditionally or unconditionally, to a commercial,
checking, savings, time, or thrift account whether or not advance notice is required to
withdraw the credited funds, or which is evidenced by its certificate of deposit, thrift
certificate, investment certificate, or certificate of indebtedness, or other similar name, or a
check or draft drawn against a deposit account and certified by the financial institution,
or a letter of credit or a traveler's check on which the financial institution is primarily
liable. However, without limiting the generality of the term "money or its equivalent," any
such account or instrument must be regarded as evidencing the receipt of the equivalent
of money when credited or issued in exchange for checks or drafts or for a promissory
note upon which the person obtaining the credit or instrument is primarily or secondarily
liable, or for a charge against a deposit account, or in settlement of checks, drafts, or other
instruments forwarded to the bank for collection.

(c) "Deposit" means trust funds received or held by the financial institution, whether
held in the trust department or held or deposited in any other department of the financial
institution.

(d) "Deposit" means money received or held by a financial institution, or the credit
given for money or its equivalent received or held by a financial institution, in the usual
course of business for a special or specific purpose, regardless of the legal relationship so
established. Under this paragraph, "deposit" includes, but is not limited to, escrow funds,
funds held as security for an obligation due to the financial institution or others, including
funds held as dealers reserves, or for securities loaned by the financial institution, funds
deposited by a debtor to meet maturing obligations, funds deposited as advance payment
on subscriptions to United States government securities, funds held for distribution or
purchase of securities, funds held to meet its acceptances or letters of credit, and withheld
taxes. It does not include funds received by the financial institution for immediate
application to the reduction of an indebtedness to the receiving financial institution, or
under condition that the receipt of the funds immediately reduces or extinguishes the
indebtedness.

(e) "Deposit" means outstanding drafts, including advice or another such institution,
cashier's checks, money orders, or other officer's checks issued in the usual course
of business for any purpose, but not including those issued in payment for services,
dividends, or purchases or other costs or expenses of the financial institution itself.

(f) "Deposit" means money or its equivalent held as a credit balance by a financial
institution on behalf of its customer if the entity is engaged in soliciting and holding such
balances in the regular course of its business.

(g) Interinstitution fund transfers are not deposits.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14.

Minnesota Statutes 2006, section 290A.03, subdivision 7, is amended to read:


Subd. 7.

Dependent.

"Dependent" means any person who is considered a
dependent under sections 151 and 152 of the Internal Revenue Code. deleted text beginIn the case of a son,
stepson, daughter, or stepdaughter of the claimant, amounts received as a Minnesota
family investment program grant, allowance to or on behalf of the child, surplus food, or
other relief in kind supplied by a governmental agency must not be taken into account
in determining whether the child received more than half of the child's support from
the claimant.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property tax refunds based on
rents paid after December 31, 2006, and property taxes payable after December 31, 2007.
new text end

ARTICLE 11

DEPARTMENT SALES AND USE TAXES

Section 1.

Minnesota Statutes 2006, section 289A.40, subdivision 2, is amended to
read:


Subd. 2.

Bad debt loss.

If a claim relates to an overpayment because of a failure to
deduct a loss due to a bad debt or to a security becoming worthless, the claim is considered
timely if filed within seven years from the date prescribed for the filing of the return. A
claim relating to an overpayment of taxes under chapter 297A must be filed within 3-1/2
years from the date deleted text beginprescribed for filing the return, plus any extensions granted for filing
the return, but only if filed within the extended time
deleted text endnew text begin when the bad debt was (1) written off
as uncollectible in the taxpayer's books and records, and (2) either eligible to be deducted
for federal income tax purposes or would have been eligible for a bad debt deduction for
federal income tax purposes if the taxpayer were required to file a federal income tax
return, or within one year from the date the taxpayer's federal income tax return is timely
filed claiming the bad debt deduction, whichever period is later
new text end. The refund or credit is
limited to the amount of overpayment attributable to the loss. "Bad debt" for purposes
of this subdivision, has the same meaning as that term is used in United States Code,
title 26, section 166, except that for a claim relating to an overpayment of taxes under
chapter 297A the following are excluded from the calculation of bad debt: financing
charges or interest; sales or use taxes charged on the purchase price; uncollectible amounts
on property that remain in the possession of the seller until the full purchase price is
paid; expenses incurred in attempting to collect any debt; and repossessed property.new text begin For
purposes of reporting a payment received on previously claimed bad debt under chapter
297A, any payments made on a debt or account are applied first proportionally to the
taxable price of the property or service and the sales tax on it, and secondly to interest,
service charges, and any other charges.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2006, section 289A.56, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Border city zone refunds. new text end

new text begin Notwithstanding subdivision 3, for refunds
payable under section 469.1734, subdivision 6, interest is computed from 90 days after the
refund claim is filed with the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refund claims filed on or after
July 1, 2007.
new text end

Sec. 3.

Minnesota Statutes 2006, section 289A.60, subdivision 25, is amended to read:


Subd. 25.

Penalty for failure to properly complete sales new text beginand use new text endtax return.

A
person who fails to report local deleted text beginsales taxdeleted text end new text begintaxes required to be reported new text endon a sales new text beginand use
new text endtax return or who fails to report local deleted text beginsales taxdeleted text end new text begintaxes new text endon separate tax lines on the sales
new text begin and use new text endtax return is subject to a penalty of five percent of the amount of tax not properly
reported on the return. A person who files a consolidated tax return but fails to report
location information is subject to a $500 penalty for each return not containing location
information. In addition, the commissioner may revoke the privilege for a taxpayer to
file consolidated returns and may require the taxpayer to separately register each location
and to file a tax return for each location.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for returns filed after June 30, 2007.
new text end

Sec. 4.

Minnesota Statutes 2006, section 289A.60, is amended by adding a subdivision
to read:


new text begin Subd. 29. new text end

new text begin Penalty for failure to report liquor sales. new text end

new text begin In the case of a failure to file
an informational return required by section 297A.8155 with the commissioner on or before
the date prescribed, the person failing to file the report shall pay a penalty of $500 each
failure. If a failure to file a report is intentional, the penalty shall be $1,000 each failure.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2006, section 297A.61, subdivision 3, is amended to read:


Subd. 3.

Sale and purchase.

(a) "Sale" and "purchase" include, but are not limited
to, each of the transactions listed in this subdivision.

(b) Sale and purchase include:

(1) any transfer of title or possession, or both, of tangible personal property, whether
absolutely or conditionally, for a consideration in money or by exchange or barter; and

(2) the leasing of or the granting of a license to use or consume, for a consideration
in money or by exchange or barter, tangible personal property, other than a manufactured
home used for residential purposes for a continuous period of 30 days or more.

(c) Sale and purchase include the production, fabrication, printing, or processing of
tangible personal property for a consideration for consumers who furnish either directly or
indirectly the materials used in the production, fabrication, printing, or processing.

(d) Sale and purchase include the preparing for a consideration of food.
Notwithstanding section 297A.67, subdivision 2, taxable food includes, but is not limited
to, the following:

(1) prepared food sold by the retailer;

(2) soft drinks;

(3) candy;

(4) dietary supplements; and

(5) all food sold through vending machines.

(e) A sale and a purchase includes the furnishing for a consideration of electricity,
gas, water, or steam for use or consumption within this state.

(f) A sale and a purchase includes the transfer for a consideration of prewritten
computer software whether delivered electronically, by load and leave, or otherwise.

(g) A sale and a purchase includes the furnishing for a consideration of the following
services:

(1) the privilege of admission to places of amusement, recreational areas, or athletic
events, and the making available of amusement devices, tanning facilities, reducing
salons, steam baths, turkish baths, health clubs, and spas or athletic facilities;

(2) lodging and related services by a hotel, rooming house, resort, campground,
motel, or trailer campnew text begin, including furnishing the guest of the facility with access to
telecommunication services,
new text end and the granting of any similar license to use real property
in a specific facility, other than the renting or leasing of it for a continuous period of
30 days or more under an enforceable written agreement that may not be terminated
without prior notice;

(3) nonresidential parking services, whether on a contractual, hourly, or other
periodic basis, except for parking at a meter;

(4) the granting of membership in a club, association, or other organization if:

(i) the club, association, or other organization makes available for the use of its
members sports and athletic facilities, without regard to whether a separate charge is
assessed for use of the facilities; and

(ii) use of the sports and athletic facility is not made available to the general public
on the same basis as it is made available to members.

Granting of membership means both onetime initiation fees and periodic membership
dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and
squash courts; basketball and volleyball facilities; running tracks; exercise equipment;
swimming pools; and other similar athletic or sports facilities;

(5) delivery of aggregate materials and concrete block by a third party if the delivery
would be subject to the sales tax if provided by the seller of the aggregate material
or concrete blocknew text begin, unless the aggregate materials are deposited substantially in place.
Aggregate material is deposited substantially in place if the aggregate material is deposited
directly from the transporting vehicle, or through spreaders from the transporting vehicle,
at the actual place where it will be graded or compacted
new text end; and

(6) services as provided in this clause:

(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
include services provided by coin operated facilities operated by the customer;

(ii) motor vehicle washing, waxing, and cleaning services, including services
provided by coin operated facilities operated by the customer, and rustproofing,
undercoating, and towing of motor vehicles;

(iii) building and residential cleaning, maintenance, and disinfecting new text beginservices and
pest control
new text endand exterminating services;

(iv) detective, security, burglar, fire alarm, and armored car services; but not
including services performed within the jurisdiction they serve by off-duty licensed peace
officers as defined in section 626.84, subdivision 1, or services provided by a nonprofit
organization for monitoring and electronic surveillance of persons placed on in-home
detention pursuant to court order or under the direction of the Minnesota Department
of Corrections;

(v) pet grooming services;

(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor
plant care; tree, bush, shrub, and stump removal, except when performed as part of a land
clearing contract as defined in section 297A.68, subdivision 40; and tree trimming for
public utility lines. Services performed under a construction contract for the installation of
shrubbery, plants, sod, trees, bushes, and similar items are not taxable;

(vii) massages, except when provided by a licensed health care facility or
professional or upon written referral from a licensed health care facility or professional for
treatment of illness, injury, or disease; and

(viii) the furnishing of lodging, board, and care services for animals in kennels and
other similar arrangements, but excluding veterinary and horse boarding services.

In applying the provisions of this chapter, the terms "tangible personal property"
and "retail sale" include taxable services listed in clause (6), items (i) to (vi) and (viii),
and the provision of these taxable services, unless specifically provided otherwise.
Services performed by an employee for an employer are not taxable. Services performed
by a partnership or association for another partnership or association are not taxable if
one of the entities owns or controls more than 80 percent of the voting power of the
equity interest in the other entity. Services performed between members of an affiliated
group of corporations are not taxable. For purposes of the preceding sentence, "affiliated
group of corporations" means those entities that would be classified as members of an
affiliated group as defined under United States Code, title 26, section 1504, disregarding
the exclusions in section 1504(b).

(h) A sale and a purchase includes the furnishing for a consideration of tangible
personal property or taxable services by the United States or any of its agencies or
instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political
subdivisions.

(i) A sale and a purchase includes the furnishing for a consideration
of telecommunications services, deleted text beginincludingdeleted text endnew text begin ancillary services associated with
telecommunication services,
new text end cable television services deleted text beginanddeleted text endnew text begin,new text end direct satellite servicesnew text begin, and
ring tones
new text end. deleted text beginTelecommunicationsdeleted text endnew text begin Telecommunication services include, but are not limited
to, the following services, as defined in section 297A.669: air-to-ground radiotelephone
service, mobile telecommunication service, postpaid calling service, prepaid calling
service, prepaid wireless calling service, and private communication services. The
new text end
servicesnew text begin in this paragraphnew text end are taxed to the extent allowed under federal law.

(j) A sale and a purchase includes the furnishing for a consideration of installation if
the installation charges would be subject to the sales tax if the installation were provided
by the seller of the item being installed.

(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer
to a customer when (1) the vehicle is rented by the customer for a consideration, or (2)
the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section
65B.29, subdivision 1, clause (1).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2007, except that the amendments to paragraphs (g), clause (2), and (i), are
effective for sales and purchases made on or after January 1, 2008.
new text end

Sec. 6.

Minnesota Statutes 2006, section 297A.61, subdivision 4, is amended to read:


Subd. 4.

Retail sale.

(a) A "retail sale" means any sale, lease, or rental for any
purpose, other than resale, sublease, or subrent of items by the purchaser in the normal
course of business as defined in subdivision 21.

(b) A sale of property used by the owner only by leasing it to others or by holding it
in an effort to lease it, and put to no use by the owner other than resale after the lease or
effort to lease, is a sale of property for resale.

(c) A sale of master computer software that is purchased and used to make copies for
sale or lease is a sale of property for resale.

(d) A sale of building materials, supplies, and equipment to owners, contractors,
subcontractors, or builders for the erection of buildings or the alteration, repair, or
improvement of real property is a retail sale in whatever quantity sold, whether the sale is
for purposes of resale in the form of real property or otherwise.

(e) A sale of carpeting, linoleum, or similar floor covering to a person who provides
for installation of the floor covering is a retail sale and not a sale for resale since a sale
of floor covering which includes installation is a contract for the improvement of real
property.

(f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides
for installation of the items is a retail sale and not a sale for resale since a sale of
shrubbery, plants, sod, trees, and similar items that includes installation is a contract for
the improvement of real property.

(g) A sale of tangible personal property that is awarded as prizes is a retail sale and
is not considered a sale of property for resale.

(h) A sale of tangible personal property utilized or employed in the furnishing or
providing of services under subdivision 3, paragraph (g), clause (1), including, but not
limited to, property given as promotional items, is a retail sale and is not considered a
sale of property for resale.

(i) A sale of tangible personal property used in conducting lawful gambling under
chapter 349 or the State Lottery under chapter 349A, including, but not limited to,
property given as promotional items, is a retail sale and is not considered a sale of
property for resale.

(j) A sale of machines, equipment, or devices that are used to furnish, provide, or
dispense goods or services, including, but not limited to, coin-operated devices, is a retail
sale and is not considered a sale of property for resale.

(k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease
payment becomes due under the terms of the agreement or the trade practices of the
lessor or (2) in the case of a lease of a motor vehicle, as defined in section 297B.01,
subdivision 5
, but excluding vehicles with a manufacturer's gross vehicle weight rating
greater than 10,000 pounds and rentals of vehicles for not more than 28 days, at the time
the lease is executed.

(l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of
title or possession of the tangible personal property.

new text begin (m) A sale of a bundled transaction in which one or more of the products included
in the bundle is a taxable product is a retail sale, except that if one of the products
is a telecommunication service, ancillary service, Internet access, or audio or video
programming service, and the seller has maintained books and records identifying through
reasonable and verifiable standards the portions of the price that are attributable to the
distinct and separately identifiable products, then the products are not considered part of a
bundled transaction. For purposes of this paragraph:
new text end

new text begin (1) the books and records maintained by the seller must be maintained in the regular
course of business, and do not include books and records created and maintained by the
seller primarily for tax purposes;
new text end

new text begin (2) books and records maintained in the regular course of business include, but are
not limited to, financial statements, general ledgers, invoicing and billing systems and
reports, and reports for regulatory tariffs and other regulatory matters; and
new text end

new text begin (3) books and records are maintained primarily for tax purposes when the books
and records identify taxable and nontaxable portions of the price, but the seller maintains
other books and records that identify different prices attributable to the distinct products
included in the same bundled transaction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2008.
new text end

Sec. 7.

Minnesota Statutes 2006, section 297A.61, subdivision 7, is amended to read:


Subd. 7.

Sales price.

(a) "Sales price" means the measure subject to sales tax, and
means the total amount of consideration, including cash, credit, personal property, and
services, for which personal property or services are sold, leased, or rented, valued in
money, whether received in money or otherwise, without any deduction for the following:

(1) the seller's cost of the property sold;

(2) the cost of materials used, labor or service cost, interest, losses, all costs of
transportation to the seller, all taxes imposed on the seller, and any other expenses of
the seller;

(3) charges by the seller for any services necessary to complete the sale, other than
delivery and installation charges;

(4) delivery chargesnew text begin, except the percentage of the delivery charge allocated to
delivery of tax exempt property, when the delivery charge is allocated by using either (i) a
percentage based on the total sales price of the taxable property compared to the total sales
price of all property in the shipment, or (ii) a percentage based on the total weight of the
taxable property compared to the total weight of all property in the shipment
new text end;new text begin and
new text end

(5) installation chargesdeleted text begin; anddeleted text endnew text begin.
new text end

deleted text begin (6) the value of exempt property given to the purchaser when taxable and exempt
personal property have been bundled together and sold by the seller as a single product
or piece of merchandise.
deleted text end

(b) Sales price does not include:

(1) discounts, including cash, terms, or coupons, that are not reimbursed by a third
party and that are allowed by the seller and taken by a purchaser on a sale;

(2) interest, financing, and carrying charges from credit extended on the sale of
personal property or services, if the amount is separately stated on the invoice, bill of sale,
or similar document given to the purchaser; and

(3) any taxes legally imposed directly on the consumer that are separately stated on
the invoice, bill of sale, or similar document given to the purchaser.

new text begin (c) Sales price includes consideration received by the seller from third parties if:
new text end

new text begin (1) the seller actually receives consideration from a party other than the purchaser
and the consideration is directly related to a price reduction or discount on the sale;
new text end

new text begin (2) the seller has an obligation to pass the price reduction or discount through to
the purchaser;
new text end

new text begin (3) the amount of the consideration attributable to the sale is fixed and determinable
by the seller at the time of the sale of the item to the purchaser; and
new text end

new text begin (4) one of the following criteria is met:
new text end

new text begin (i) the purchaser presents a coupon, certificate, or other documentation to the seller
to claim a price reduction or discount when the coupon, certificate, or documentation is
authorized, distributed, or granted by a third party with the understanding that the third
party will reimburse any seller to whom the coupon, certificate, or documentation is
presented;
new text end

new text begin (ii) the purchaser identifies himself or herself to the seller as a member of a group or
organization entitled to a price reduction or discount. A "preferred customer" card that is
available to any customer does not constitute membership in such a group; or
new text end

new text begin (iii) the price reduction or discount is identified as a third-party price reduction or
discount on the invoice received by the purchaser or on a coupon, certificate, or other
documentation presented by the purchaser.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on or
after January 1, 2008, except that the amendment to paragraph (a), clause (4), is effective
the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2006, section 297A.61, subdivision 10, is amended to read:


Subd. 10.

Tangible personal property.

(a) "Tangible personal property" means
personal property that can be seen, weighed, measured, felt, or touched, or that is in any
other manner perceptible to the senses. "Tangible personal property" includes, but is not
limited to, electricity, water, gas, steam, new text beginand new text endprewritten computer softwaredeleted text begin, and prepaid
calling cards
deleted text end.

(b) Tangible personal property does not include:

(1) large ponderous machinery and equipment used in a business or production
activity which at common law would be considered to be real property;

(2) property which is subject to an ad valorem property tax;

(3) property described in section 272.02, subdivision 9, clauses (a) to (d); and

(4) property described in section 272.03, subdivision 2, clauses (3) and (5).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2008.
new text end

Sec. 9.

Minnesota Statutes 2006, section 297A.61, subdivision 24, is amended to read:


Subd. 24.

Telecommunications services.

(a) "Telecommunications services" means
the new text beginelectronic new text endtransmission, conveyance, or routing of voice, data, audio, video, or any
other information or signals to a point, or between or among pointsdeleted text begin, by or through any
electronic, satellite, optical, microwave, or other medium or method now in existence or
hereafter devised, regardless of the protocol used for such transmission, conveyance,
or routing
deleted text end.

(b) Telecommunications services deleted text beginincludes the furnishing for consideration of access
to telephone services by a hotel to its guests.
deleted text endnew text begin include transmission, conveyance, or routing
in which computer processing applications are used to act on the form, code, or protocol
of the content for purposes of transmission, conveyance, or routing, without regard to
whether the service is referred to as voice over Internet protocol services or is classified by
the Federal Communications Commission as enhanced or value added.
new text end

(c) Telecommunications services do not include:

deleted text begin (1) services purchased with a prepaid telephone calling card;
deleted text end

deleted text begin (2) private communication service purchased by an agent acting on behalf of the
State Lottery;
deleted text end

deleted text begin (3) information services; and
deleted text end

deleted text begin (4) purchases of telecommunications when the purchaser uses the purchased services
as a component part of or integrates such service into another telecommunications service
that is sold by the purchaser in the normal course of business.
deleted text end

deleted text begin (d) For purposes of this subdivision, "information services" means the offering of
the capability for generating, acquiring, storing, transforming, processing, retrieving,
utilizing, or making available information.
deleted text end

new text begin (1) data processing and information services that allow data to be generated,
acquired, stored, processed, or retrieved and delivered by an electronic transmission to
a purchaser when the purchaser's primary purpose for the underlying transaction is the
processed data or information;
new text end

new text begin (2) installation or maintenance of wiring or equipment on a customer's premises;
new text end

new text begin (3) tangible personal property;
new text end

new text begin (4) advertising, including, but not limited to, directory advertising;
new text end

new text begin (5) billing and collection services provided to third parties;
new text end

new text begin (6) Internet access service;
new text end

new text begin (7) radio and television audio and video programming services, regardless of the
medium, including the furnishing of transmission, conveyance, and routing of such
services by the programming service provider. Radio and television audio and video
programming services includes, but is not limited to, cable service as defined in United
States Code, title 47, section 522(6), and audio and video programming services delivered
by commercial mobile radio service providers, as defined in Code of Federal Regulations,
title 47, section 20.3;
new text end

new text begin (8) ancillary services; or
new text end

new text begin (9) digital products delivered electronically, including, but not limited to, software,
music, video, reading materials, or ring tones.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2008.
new text end

Sec. 10.

Minnesota Statutes 2006, section 297A.61, is amended by adding a
subdivision to read:


new text begin Subd. 38. new text end

new text begin Bundled transaction. new text end

new text begin (a) "Bundled transaction" means the retail sale
of two or more products when the products are otherwise distinct and identifiable, and
the products are sold for one nonitemized price. As used in this subdivision, "product"
includes tangible personal property, services, intangibles, and digital goods, but does not
include real property or services to real property. A bundled transaction does not include
the sale of any products in which the sales price varies, or is negotiable, based on the
selection by the purchaser of the products included in the transaction.
new text end

new text begin (b) For purposes of this subdivision, "distinct and identifiable" products does not
include:
new text end

new text begin (1) packaging and other materials, such as containers, boxes, sacks, bags, and
bottles, wrapping, labels, tags, and instruction guides, that accompany the retail sale of the
products and are incidental or immaterial to the retail sale. Examples of packaging that are
incidental or immaterial include grocery sacks, shoe boxes, dry cleaning garment bags,
and express delivery envelopes and boxes;
new text end

new text begin (2) a promotional product provided free of charge with the required purchase of
another product. A promotional product is provided free of charge if the sales price of
another product, which is required to be purchased in order to receive the promotional
product, does not vary depending on the inclusion of the promotional product; and
new text end

new text begin (3) items included in the definition of sales price.
new text end

new text begin (c) For purposes of this subdivision, the term "one nonitemized price" does not
include a price that is separately identified by product on binding sales or other supporting
sales-related documentation made available to the customer in paper or electronic form
including, but not limited to an invoice, bill of sale, receipt, contract, service agreement,
lease agreement, periodic notice of rates and services, rate card, or price list.
new text end

new text begin (d) A transaction that otherwise meets the definition of a bundled transaction is
not a bundled transaction if it is:
new text end

new text begin (1) the retail sale of tangible personal property and a service and the tangible
personal property is essential to the use of the service, and is provided exclusively in
connection with the service, and the true object of the transaction is the service;
new text end

new text begin (2) the retail sale of services if one service is provided that is essential to the use or
receipt of a second service and the first service is provided exclusively in connection with
the second service and the true object of the transaction is the second service;
new text end

new text begin (3) a transaction that includes taxable products and nontaxable products and the
purchase price or sales price of the taxable products is de minimis; or
new text end

new text begin (4) the retail sale of exempt tangible personal property and taxable tangible personal
property if:
new text end

new text begin (i) the transaction includes food and food ingredients, drugs, durable medical
equipment, mobility enhancing equipment, over-the-counter drugs, prosthetic devices,
or medical supplies; and
new text end

new text begin (ii) the seller's purchase price or sales price of the taxable tangible personal property
is 50 percent or less of the total purchase price or sales price of the bundled tangible
personal property. Sellers must not use a combination of the purchase price and sales
price of the tangible personal property when making the 50 percent determination for
a transaction.
new text end

new text begin (e) For purposes of this subdivision, "purchase price" means the measure subject to
use tax on purchases made by the seller, and "de minimis" means that the seller's purchase
price or sales price of the taxable products is ten percent or less of the total purchase
price or sales price of the bundled products. Sellers shall use either the purchase price
or the sales price of the products to determine if the taxable products are de minimis.
Sellers must not use a combination of the purchase price and sales price of the products
to determine if the taxable products are de minimis. Sellers shall use the full term of a
service contract to determine if the taxable products are de minimis.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2008.
new text end

Sec. 11.

Minnesota Statutes 2006, section 297A.61, is amended by adding a
subdivision to read:


new text begin Subd. 39. new text end

new text begin Ancillary services. new text end

new text begin "Ancillary services" means services that are
associated with or incidental to the provision of telecommunications services, including,
but not limited to, conference bridging service, detailed telecommunications billing,
directory assistance, vertical service, and voice mail services.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2008.
new text end

Sec. 12.

Minnesota Statutes 2006, section 297A.61, is amended by adding a
subdivision to read:


new text begin Subd. 40. new text end

new text begin Conference bridging service. new text end

new text begin "Conference bridging service" means an
ancillary service that links two or more participants of an audio or video conference call
and may include the provision of a telephone number. Conference bridging service does
not include the telecommunications services used to reach the conference bridge.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2008.
new text end

Sec. 13.

Minnesota Statutes 2006, section 297A.61, is amended by adding a
subdivision to read:


new text begin Subd. 41. new text end

new text begin Detailed telecommunications billing service. new text end

new text begin "Detailed
telecommunications billing service" means an ancillary service of separately stating
information pertaining to individual calls on a customer's billing statement.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2008.
new text end

Sec. 14.

Minnesota Statutes 2006, section 297A.61, is amended by adding a
subdivision to read:


new text begin Subd. 42. new text end

new text begin Directory assistance. new text end

new text begin "Directory assistance" means an ancillary service
of providing telephone number information or address information, or both.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2008.
new text end

Sec. 15.

Minnesota Statutes 2006, section 297A.61, is amended by adding a
subdivision to read:


new text begin Subd. 43. new text end

new text begin Vertical service. new text end

new text begin "Vertical service" means an ancillary service that is
offered in connection with one or more telecommunications services and which offers
advanced calling features that allow customers to identify callers and to manage multiple
calls and call connections, including conference bridging services.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2008.
new text end

Sec. 16.

Minnesota Statutes 2006, section 297A.61, is amended by adding a
subdivision to read:


new text begin Subd. 44. new text end

new text begin Voice mail service. new text end

new text begin "Voice mail service" means an ancillary service that
enables the customer to store, send, or receive recorded messages. Voice mail service
does not include any vertical services that the customer may be required to have in order
to utilize the voice mail service.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2008.
new text end

Sec. 17.

Minnesota Statutes 2006, section 297A.61, is amended by adding a
subdivision to read:


new text begin Subd. 45. new text end

new text begin Ring tone. new text end

new text begin "Ring tone" means a digitized sound file that is downloaded
onto a device and that may be used to alert the customer of a telecommunication service
with respect to a communication.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 18.

Minnesota Statutes 2006, section 297A.61, is amended by adding a
subdivision to read:


new text begin Subd. 46. new text end

new text begin Fur clothing. new text end

new text begin "Fur clothing" means human wearing apparel that is
required by the Federal Fur Products Labeling Act, United States Code, title 15, section
69, to be labeled as a fur product, and the value of the fur components in the product
is more than three times the value of the next most valuable tangible component. For
purposes of this subdivision, "fur" means any animal skin or part of an animal skin with
hair, fleece, or fur fibers attached to it, either in its raw or processed state, but does not
include animal skins that have been converted into leather or suede, or from which the
hair, fleece, or fur fiber has been completely removed in processing the skins.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on or
after July 1, 2007.
new text end

Sec. 19.

Minnesota Statutes 2006, section 297A.63, subdivision 1, is amended to read:


Subdivision 1.

Use of tangible personal property or taxable services.

(a) For the
privilege of using, storing, distributing, or consuming in Minnesota tangible personal
property or taxable services purchased for use, storage, distribution, or consumption in
this state, a use tax is imposed on a person in Minnesota. The tax is imposed on the
purchase price of retail sales of the tangible personal property or taxable services at the
rate of tax imposed under section 297A.62. A person that purchases property from a
Minnesota retailer and returns the tangible personal property to a point within Minnesota,
except in the course of interstate commerce, after it was delivered outside of Minnesota,
is subject to the use tax.

(b) No tax is imposed under paragraph (a) if the tax imposed by section 297A.62
was paid on the sales price of the tangible personal property or taxable services.

(c) No tax is imposed under paragraph (a) if the purchase meets the requirements for
exemption under section 297A.67, subdivision 21.

new text begin (d) When a transaction otherwise meets the definition of a bundled transaction, but
is not a bundled transaction under section 297A.61, subdivision 38, paragraph (d), and
the seller's purchase price of the taxable product or taxable tangible personal property is
equal to or greater than $100, then use tax is imposed on the purchase price of the taxable
product or taxable personal property. For purposes of this paragraph, "purchase price"
means the measure subject to use tax on purchases made by the seller.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2008.
new text end

Sec. 20.

Minnesota Statutes 2006, section 297A.665, is amended to read:


297A.665 PRESUMPTION OF TAX; BURDEN OF PROOF.

(a) For the purpose of the proper administration of this chapter and to prevent
evasion of the tax, until the contrary is established, it is presumed that:

(1) all gross receipts are subject to the tax; and

(2) all retail sales for delivery in Minnesota are for storage, use, or other consumption
in Minnesota.

(b) The burden of proving that a sale is not a taxable retail sale is on the seller.
deleted text begin However, the seller may take from the purchaser at the time of the sale a fully completed
exemption certificate which conclusively relieves the seller from collecting and remitting
the tax. This
deleted text endnew text begin However, a seller is relieved of liability if:
new text end

new text begin (1) the seller obtains a fully completed exemption certificate or all the relevant
information required by section 297A.72, subdivision 2, at the time of the sale or within
90 days after the date of the sale; or
new text end

new text begin (2) if the seller has not obtained a fully completed exemption certificate or all the
relevant information required by section 297A.72, subdivision 2, within the time provided
in clause (1), within 120 days after a request for substantiation by the commissioner,
the seller either:
new text end

new text begin (i) obtains in good faith a fully completed exemption certificate or all the relevant
information required by section 297A.72, subdivision 2, from the purchaser; or
new text end

new text begin (ii) proves by other means that the transaction was not subject to tax.
new text end

new text begin (c) Notwithstanding paragraph (b),new text end relief from liability does not apply to a seller whonew text begin:new text end

new text begin (1) new text endfraudulently fails to collect the taxnew text begin;new text end or

new text begin (2) new text endsolicits purchasers to participate in the unlawful claim of an exemption. deleted text beginIf a
seller claiming that certain sales are exempt is not in possession of the required exemption
certificates within 60 days after receiving written notice from the commissioner that the
certificates are required, deductions claimed by the seller that required delivery of the
certificates must be disallowed. If the certificates are delivered to the commissioner within
the 60-day period, the commissioner may verify the reason or basis for the exemption
claimed in the certificates before allowing any deductions. A deduction must not be
granted on the basis of certificates delivered to the commissioner after the 60-day period.
deleted text end

deleted text begin (c)deleted text endnew text begin (d)new text end A purchaser of tangible personal property or any items listed in section
297A.63 that are shipped or brought to Minnesota by the purchaser has the burden
of proving that the property was not purchased from a retailer for storage, use, or
consumption in Minnesota.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2008.
new text end

Sec. 21.

Minnesota Statutes 2006, section 297A.669, subdivision 3, is amended to read:


Subd. 3.

Defined telecommunications services sourcing.

The sale of the following
telecommunication services shall be sourced to each level of taxing jurisdiction in
paragraphs (a) to (d).

(a) A sale of mobile telecommunications services, other than air-to-ground
radiotelephone service and prepaid calling service, is sourced to the customer's place of
primary use as required by the Mobile Telecommunications Sourcing Act.

(b) A sale of postpaid calling service is sourced to the origination point of the
telecommunications signal as first identified by either:

(1) the seller's telecommunications system; or

(2) information received by the seller from its service provider, where the system
used to transport such signals is not that of the seller.

(c) A sale of prepaid calling service new text beginor prepaid wireless calling service new text endis sourced in
accordance with section 297A.668, subdivision 2. However, in the case of a sale of deleted text beginmobile
telecommunications service that is
deleted text end a prepaid deleted text begintelecommunicationsdeleted text end new text beginwireless calling new text endservice,
the rule provided in section 297A.668, subdivision 2, paragraph (f), shall include as an
option the location associated with the mobile telephone number.

(d) A sale of a private communication service is sourced as follows:

(1) service for a separate charge related to a customer channel termination point is
sourced to each level of jurisdiction in which the customer channel termination point
is located;

(2) service where all customer termination points are located entirely within one
jurisdiction or levels of jurisdiction is sourced in such jurisdiction in which the customer
channel termination points are located;

(3) service for segments of a channel between two customer channel termination
points located in different jurisdictions and which segment of channel are separately
charged is sourced 50 percent in each level of jurisdiction in which the customer channel
termination points are located; and

(4) service for segments of a channel located in more than one jurisdiction or
levels of jurisdiction and which segments are not separately billed is sourced in each
jurisdiction based on the percentage determined by dividing the number of customer
channel termination points in the jurisdiction by the total number of customer channel
termination points.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2008.
new text end

Sec. 22.

Minnesota Statutes 2006, section 297A.669, subdivision 13, is amended to
read:


Subd. 13.

Postpaid calling service.

"Postpaid calling service," for purposes of
this section, means the telecommunications service obtained by making a payment
on a call-by-call basis either through the use of a credit card or payment mechanism
such as a bank card, travel card, credit card, or debit card, or by a charge made to
a telephone number that is not associated with the origination or termination of the
telecommunications service. A postpaid calling service includes a telecommunications
servicenew text begin, except a prepaid wireless calling service,new text end that would be a prepaid calling service
except it is not exclusively a telecommunication service.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2008.
new text end

Sec. 23.

Minnesota Statutes 2006, section 297A.669, subdivision 14, is amended to
read:


Subd. 14.

Prepaid calling service.

"Prepaid calling service," for purposes of this
section, means new text begina telecommunications service that:
new text end

new text begin (1) provides new text endthe right to access exclusively telecommunications servicesdeleted text begin, whichdeleted text endnew text begin;new text end

new text begin (2) new text endmust be paid for in advance deleted text beginand whichdeleted text endnew text begin;new text end

new text begin (3) new text endenables the origination of calls using an access number or authorization code,
whether manually or electronically dialeddeleted text begin,deleted text endnew text begin;new text end and deleted text beginthatdeleted text end

new text begin (4) new text endis sold in predetermined units or dollars of which the number declines with
use in a known amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 24.

Minnesota Statutes 2006, section 297A.669, is amended by adding a
subdivision to read:


new text begin Subd. 14a. new text end

new text begin Prepaid wireless calling service. new text end

new text begin "Prepaid wireless calling service," for
purposes of this section, means a telecommunications service that:
new text end

new text begin (1) provides the right to utilize mobile wireless service as well as other
nontelecommunications services, including the download of digital products delivered
electronically, content, and ancillary services;
new text end

new text begin (2) must be paid for in advance; and
new text end

new text begin (3) is sold in predetermined units or dollars of which the number declines with
use in a known amount.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2008.
new text end

Sec. 25.

Minnesota Statutes 2006, section 297A.669, is amended by adding a
subdivision to read:


new text begin Subd. 17. new text end

new text begin Ancillary service. new text end

new text begin The sale of an ancillary service is sourced to the
customer's place of primary use.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2008.
new text end

Sec. 26.

Minnesota Statutes 2006, section 297A.67, subdivision 8, is amended to read:


Subd. 8.

Clothing.

(a) Clothing is exempt. For purposes of this subdivision,
"clothing" means all human wearing apparel suitable for general use.

(b) Clothing includes, but is not limited to, aprons, household and shop; athletic
supporters; baby receiving blankets; bathing suits and caps; beach capes and coats; belts
and suspenders; boots; coats and jackets; costumes; children and adult diapers, including
disposable; ear muffs; footlets; formal wear; garters and garter belts; girdles; gloves and
mittens for general use; hats and caps; hosiery; insoles for shoes; lab coats; neckties;
overshoes; pantyhose; rainwear; rubber pants; sandals; scarves; shoes and shoe laces;
slippers; sneakers; socks and stockings; steel-toed boots; underwear; uniforms, athletic
and nonathletic; and wedding apparel.

(c) Clothing does not include the following:

(1) belt buckles sold separately;

(2) costume masks sold separately;

(3) patches and emblems sold separately;

(4) sewing equipment and supplies, including but not limited to, knitting needles,
patterns, pins, scissors, sewing machines, sewing needles, tape measures, and thimbles;

(5) sewing materials that become part of clothing, including but not limited to,
buttons, fabric, lace, thread, yarn, and zippers;

(6) clothing accessories or equipment;

(7) sports or recreational equipment; and

(8) protective equipment.

Clothing also does not include deleted text beginapparel made from fur if a uniform definition of "apparel
made from fur" is developed by the member states of the Streamlined Sales and Use Tax
Agreement
deleted text endnew text begin "fur clothing" as defined in section 297A.61, subdivision 46new text end.

For purposes of this subdivision, "clothing accessories or equipment" means
incidental items worn on the person or in conjunction with clothing. Clothing accessories
and equipment include, but are not limited to, briefcases; cosmetics; hair notions, including
barrettes, hair bows, and hairnets; handbags; handkerchiefs; jewelry; nonprescription
sunglasses; umbrellas; wallets; watches; and wigs and hairpieces. "Sports or recreational
equipment" means items designed for human use and worn in conjunction with an athletic
or recreational activity that are not suitable for general use. Sports and recreational
equipment includes, but is not limited to, ballet and tap shoes; cleated or spiked athletic
shoes; gloves, including, but not limited to, baseball, bowling, boxing, hockey, and golf
gloves; goggles; hand and elbow guards; life preservers and vests; mouth guards; roller
and ice skates; shin guards; shoulder pads; ski boots; waders; and wetsuits and fins.
"Protective equipment" means items for human wear and designed as protection of the
wearer against injury or disease or as protection against damage or injury of other persons
or property but not suitable for general use. Protective equipment includes, but is not
limited to, breathing masks; clean room apparel and equipment; ear and hearing protectors;
face shields; finger guards; hard hats; helmets; paint or dust respirators; protective gloves;
safety glasses and goggles; safety belts; tool belts; and welders gloves and masks.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on or
after July 1, 2007.
new text end

Sec. 27.

Minnesota Statutes 2006, section 297A.67, subdivision 9, is amended to read:


Subd. 9.

Baby products.

new text beginBreast pumps, new text endbaby bottles and nipples, pacifiers, teething
rings, and infant syringes are exempt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on or
after the day following final enactment.
new text end

Sec. 28.

Minnesota Statutes 2006, section 297A.68, subdivision 11, is amended to read:


Subd. 11.

Advertising materials.

Materials designed to advertise and promote the
sale of merchandise or services are exempt if these materials are mailed or transferred to a
person outside the state for use solely outside the state. Mailing and reply envelopes and
cards new text beginand other shipping materials including, but not limited to, boxes, labels, containers,
and banding,
new text endused exclusively in connection with these advertising and promotional
materials are included in this exemption. The exemption applies regardless of where the
mailing occurs. The storage of these materials in the state for the purpose of subsequently
shipping or otherwise transferring the material out of state is also exempt if the other
conditions in this subdivision are met.new text begin For purposes of this subdivision, materials that have
a primary purpose other than advertising, such as fulfilling a legal obligation or furnishing
nonadvertising information, are not materials designed to advertise and promote the sale
of merchandise or services even if they do include advertising content.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 29.

Minnesota Statutes 2006, section 297A.68, subdivision 16, is amended to read:


Subd. 16.

Packing materials.

Packing materials used to pack and ship household
goods new text beginand that are provided to and remain with the customer of a for-hire carrier new text endare
exempt if the ultimate destination of the goods is outside Minnesota and if the deleted text begingoodsdeleted text end
new text begin packing materials new text endare not later returned to a point within Minnesota, except in the course
of interstate commerce.new text begin This exemption does not apply to tools, equipment, pads, or
accessories owned or leased by the for-hire carrier.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2007.
new text end

Sec. 30.

Minnesota Statutes 2006, section 297A.68, subdivision 35, is amended to read:


Subd. 35.

Telecommunicationsnew text begin, cable television, and direct satellitenew text end equipment.

(a) Telecommunicationsnew text begin, cable television, or direct satellitenew text end machinery and equipment
purchased or leased for use directly by a telecommunicationsnew text begin, cable television, or
direct satellite
new text end service provider primarily in the provision of telecommunicationsnew text begin, cable
television, or direct satellite
new text end services that are ultimately to be sold at retail are exempt,
regardless of whether purchased by the owner, a contractor, or a subcontractor.

(b) For purposes of this subdivision, "telecommunicationsnew text begin, cable television, or direct
satellite
new text end machinery and equipment" includes, but is not limited to:

(1) machinery, equipment, and fixtures utilized in receiving, initiating,
amplifying, processing, transmitting, retransmitting, recording, switching, or monitoring
telecommunicationsnew text begin, cable television, or direct satellitenew text end services, such as computers,
transformers, amplifiers, routers, bridges, repeaters, multiplexers, and other items
performing comparable functions;

(2) machinery, equipment, and fixtures used in the transportation of
telecommunicationsnew text begin, cable television, or direct satellitenew text end services, radio transmitters and
receivers, satellite equipment, microwave equipment, and other transporting media, but
not wire, cable, fiber, poles, or conduit;

(3) ancillary machinery, equipment, and fixtures that regulate, control, protect, or
enable the machinery in clauses (1) and (2) to accomplish its intended function, such as
auxiliary power supply, test equipment, towers, heating, ventilating, and air conditioning
equipment necessary to the operation of the telecommunicationsnew text begin, cable television, or direct
satellite
new text end equipment; and software necessary to the operation of the telecommunicationsnew text begin,
cable television, or direct satellite
new text end equipment; and

(4) repair and replacement parts, including accessories, whether purchased as spare
parts, repair parts, or as upgrades or modifications to qualified machinery or equipment.

deleted text begin (c) For purposes of this subdivision, "telecommunications services" means
telecommunications services as defined in section deleted text begin297A.61, subdivision 24deleted text end, paragraphs
(a), (c), and (d).
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2008.
new text end

Sec. 31.

Minnesota Statutes 2006, section 297A.70, subdivision 7, is amended to read:


Subd. 7.

Hospitals and outpatient surgical centers.

(a) Sales, except for those
listed in paragraph (c), to a hospital are exempt, if the items purchased are used in
providing hospital services. For purposes of this subdivision, "hospital" means a hospital
organized and operated for charitable purposes within the meaning of section 501(c)(3) of
the Internal Revenue Code, and licensed under chapter 144 or by any other jurisdiction,
and "hospital services" are services authorized or required to be performed by a "hospital"
under chapter 144.

(b) Sales, except for those listed in paragraph (c), to an outpatient surgical center
are exempt, if the items purchased are used in providing outpatient surgical services. For
purposes of this subdivision, "outpatient surgical center" means an outpatient surgical
center organized and operated for charitable purposes within the meaning of section
501(c)(3) of the Internal Revenue Code, and licensed under chapter 144 or by any other
jurisdiction. For the purposes of this subdivision, "outpatient surgical services" means:
(1) services authorized or required to be performed by an outpatient surgical center under
chapter 144; and (2) urgent care. For purposes of this subdivision, "urgent care" means
health services furnished to a person whose medical condition is sufficiently acute to
require treatment unavailable through, or inappropriate to be provided by, a clinic or
physician's office, but not so acute as to require treatment in a hospital emergency room.

(c) This exemption does not apply to the following products and services:

(1) purchases made by a clinic, physician's office, or any other medical facility not
operating as a hospital or outpatient surgical center, even though the clinic, office, or
facility may be owned and operated by a hospital or outpatient surgical center;

(2) sales under section 297A.61, subdivision 3, paragraph (g), clause (2), and
prepared food, candy, and soft drinks;

(3) building and construction materials used in constructing buildings or facilities
that will not be used principally by the hospital or outpatient surgical center;

(4) building, construction, or reconstruction materials purchased by a contractor
or a subcontractor as a part of a lump-sum contract or similar type of contract with a
guaranteed maximum price covering both labor and materials for use in the construction,
alteration, or repair of a hospital or outpatient surgical center; or

(5) the leasing of a motor vehicle as defined in section 297B.01, subdivision 5.

(d) A limited liability company also qualifies for exemption under this subdivision if
(1) it consists of a sole member that would qualify for the exemption, and (2) the items
purchased qualify for the exemption.

new text begin (e) An entity that contains both a hospital and a nonprofit unit may claim this
exemption on purchases made for both the hospital and nonprofit unit provided that:
new text end

new text begin (1) the nonprofit unit would have qualified for exemption under subdivision 4; and
new text end

new text begin (2) the items purchased would have qualified for the exemption.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 32.

Minnesota Statutes 2006, section 297A.70, is amended by adding a
subdivision to read:


new text begin Subd. 18. new text end

new text begin Private communication service for State Lottery. new text end

new text begin Private
communication service, as defined in section 297A.61, subdivision 26, is exempt if the
service is purchased by an agent acting on behalf of the State Lottery.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made on
or after January 1, 2008.
new text end

Sec. 33.

Minnesota Statutes 2006, section 297A.72, is amended to read:


297A.72 EXEMPTION CERTIFICATES.

Subd. 2.

Content and form of exemption certificate.

An exemption certificate
must be substantially in the form prescribed by the commissioner deleted text beginanddeleted text endnew text begin. To be fully
completed, the exemption certificate must
new text end:

(1)new text begin eithernew text end be signed by the purchasernew text begin if it is a paper form,new text end or meet the requirements
of section 270C.304new text begin if in electronic formnew text end;

(2) bear the name and address of the purchaser; deleted text beginand
deleted text end

(3) indicate the deleted text beginsales tax accountdeleted text endnew text begin identificationnew text end numberdeleted text begin, if any,deleted text end issued to the
purchaserdeleted text begin.deleted text endnew text begin as follows:
new text end

new text begin (i) the purchaser's Minnesota tax identification number;
new text end

new text begin (ii) if the purchaser does not have a Minnesota tax identification number, then the
purchaser's state tax identification number that is issued by a state other than Minnesota,
and the name of that state;
new text end

new text begin (iii) if the purchaser does not have an identification number described in either item
(i) or (ii), then the purchaser's federal Employer Identification Number; or
new text end

new text begin (iv) if the purchaser does not have an identification number described in item (i), (ii),
or (iii), then either the number of the purchaser's state-issued driver's license, if valid in
the state of issue, or if the purchaser does not have a driver's license, a valid state-issued
identification number, and the name of the state of issue;
new text end

new text begin (4) indicate the purchaser's type of business, using a business-type coding system
prescribed by the commissioner; and
new text end

new text begin (5) indicate the reason for the exemption, using an exemption reason coding system
prescribed by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Purchaser requirement. new text end

new text begin A blanket exemption certificate is an exemption
certificate used for continuing future purchases. A purchaser using a blanket exemption
certificate must update it as needed to accurately reflect the information that is required
under subdivision 2.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 34.

new text begin [297A.8155] LIQUOR REPORTING REQUIREMENTS; PENALTY.
new text end

new text begin A person who sells liquor, as defined in section 295.75, subdivision 1, in Minnesota
to a retailer that sells liquor, shall file with the commissioner an annual informational
report, in the form and manner prescribed by the commissioner, indicating the volume of
liquor sold to each retailer in the previous calendar year. The report must be filed on or
before February 28 of each calendar year beginning in 2008. A person failing to file this
report is subject to the penalty imposed under Minnesota Statutes, section 289A.60.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 35.

Minnesota Statutes 2006, section 297A.90, subdivision 2, is amended to read:


Subd. 2.

Payment of tax.

(a) Persons who are registered as retailers may make
purchases in this state or import property into this state without payment of the sales or use
taxes imposed by this chapter at the time of purchase or importation, if the purchases or
importations come within the provisions of this section and are made in strict compliance
with the rules of the commissioner.

(b) A person described in subdivision 1 may elect to pay directly to the commissioner
any sales or use tax that may be due under this chapter for the acquisition of mobile
transportation equipment and parts and accessories attached or to be attached to such
equipment registered under section 168.187.

(c) The total cost of such equipment and parts and accessories attached or to be
attached to such equipment must be multiplied by a fraction. The numerator of the fraction
is the Minnesota mileage as reported on the current pro rata application provided for in
section 168.187 and the denominator of the fraction is the total mileage reported on the
current pro rata registration application. The amount so determined must be multiplied by
the tax rate to obtain the tax due.

In computing the tax under this section "sales price" does not include the amount of any
deleted text begin tax, except any manufacturer's or importer's excise tax, imposed by the United States
upon or with respect to retail sales, whether
deleted text end new text begintaxes new text endimposed new text begindirectly new text endon the deleted text beginretailer or thedeleted text end
consumernew text begin that are separately stated on the invoice, bill of sale, or similar document given
to the purchaser
new text end.

(d) A retailer covered by this section shall make a return and remit to the
commissioner the tax due for the preceding calendar month in accordance with sections
289A.11 and 289A.20, subdivision 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 36.

Minnesota Statutes 2006, section 297B.035, subdivision 1, is amended to read:


Subdivision 1.

Ordinary course of business.

Except as provided in this section,
motor vehicles purchased new text beginsolely new text endfor resale in the ordinary course of business by any motor
vehicle dealer, as defined in section 168.011, subdivision 21, who is licensed under section
168.27, subdivision 2 or 3, new text beginincluding vehicles new text endwhich bear dealer plates as authorized by
section 168.27, subdivision 16, shall be exempt from the provisions of this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 37.

Minnesota Statutes 2006, section 469.1734, subdivision 6, is amended to read:


Subd. 6.

Sales tax exemption; equipment; construction materials.

(a) The gross
receipts from the sale of machinery and equipment and repair parts are exempt from
taxation under chapter 297A, if the machinery and equipment:

(1) are used in connection with a trade or business;

(2) are placed in service in a city that is authorized to designate a zone under section
469.1731, regardless of whether the machinery and equipment are used in a zone; and

(3) have a useful life of 12 months or more.

(b) The gross receipts from the sale of construction materials are exempt, if they are
used to construct:

(1) a facility for use in a trade or business located in a city that is authorized to
designate a zone under section 469.1731, regardless of whether the facility is located in a
zone; or

(2) housing that is located in a zone.

The exemptions under this paragraph apply regardless of whether the purchase is made by
the owner, the user, or a contractor.

(c) A purchaser may claim an exemption under this subdivision for tax on the
purchases up to, but not exceeding:

(1) the amount of the tax credit certificates received from the city, less

(2) any tax credit certificates used under the provisions of subdivisions 4 and 5, and
section 469.1732, subdivision 2.

(d) The tax on sales of items exempted under this subdivision shall be imposed and
collected as if the applicable rate under section 297A.62 applied. Upon application by the
purchaser, on forms prescribed by the commissioner, a refund equal to the tax paid shall
be paid to the purchaser. The application must include sufficient information to permit
the commissioner to verify the sales tax paid and the eligibility of the claimant to receive
the credit. No more than two applications for refunds may be filed under this subdivision
in a calendar year. The provisions of section 289A.40 apply to the refunds payable
under this subdivision. There is annually appropriated to the commissioner of revenue
the amount required to make the refunds, which must be deducted from the amount of
the city's allocation under section 469.169, subdivision 12, that remains available and its
limitation under section 469.1735.

new text begin (e) new text endThe amount to be refunded shall bear interest at the rate in section 270C.405
from deleted text beginthe datedeleted text end new text begin90 days after new text endthe refund claim is filed with the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refund claims filed on or after
July 1, 2007.
new text end

Sec. 38. new text beginFUR TAX PAYMENTS.
new text end

new text begin (a) Furriers must file the annual return, required by Minnesota Statutes, section
295.60, subdivision 5, which otherwise would be due March 15, 2008, by September
15, 2007.
new text end

new text begin (b) If a furrier is required by Minnesota Statutes, section 295.60, subdivision 3, to
make installments of quarterly estimates, then the furrier shall make the last installment by
July 15, 2007.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Effective July 1, 2007, for sales and purchases made prior to
July 1, 2007.
new text end

Sec. 39. new text beginREPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2006, section 295.60, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2006, section 297A.61, subdivision 20, new text end new text begin is repealed.
new text end

new text begin (c) new text end new text begin Minnesota Statutes 2006, section 297A.668, subdivision 6, new text end new text begin is repealed.
new text end

new text begin (d) new text end new text begin Minnesota Statutes 2006, section 297A.67, subdivision 22, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective for sales and purchases made on
or after July 1, 2007; paragraph (b) is effective for sales and purchases made on or after
January 1, 2008; and paragraphs (c) and (d) are effective the day following final enactment.
new text end

ARTICLE 12

DEPARTMENT PROPERTY TAXES AND AIDS

Section 1.

Minnesota Statutes 2006, section 270.071, subdivision 7, is amended to read:


Subd. 7.

Flight property.

"Flight property" means all aircraft and flight equipment
used in connection therewith, including spare flight equipment.new text begin Flight property also
includes computers and computer software used in operating, controlling, or regulating
aircraft and flight equipment.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2006, section 270.072, subdivision 2, is amended to read:


Subd. 2.

Assessment of flight property.

deleted text beginThedeleted text end Flight property deleted text beginofdeleted text end new text beginthat is owned by,
or is leased, loaned, or otherwise made available to
new text endall airline companies operating in
Minnesota shall be assessed and appraised annually by the commissioner with reference
to its value on January 2 of the assessment year in the manner prescribed by sections
270.071 to 270.079. Aircraft with a gross weight of less than 30,000 pounds and used on
intermittent or irregularly timed flights shall be excluded from the provisions of sections
270.071 to 270.079.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2006, section 270.072, subdivision 3, is amended to read:


Subd. 3.

Report by airline company.

new text beginEach year, on or before July 1, new text endevery airline
company engaged in air commerce in this state shall file with the commissioner deleted text beginon or
before the time fixed by the commissioner
deleted text end a report under oath setting forth specifically
the information prescribed by the commissioner to enable the commissioner to make the
assessment required in sections 270.071 to 270.079, unless the commissioner determines
that the airline company or person should be excluded from filing because its activities do
not constitute air commerce as defined herein. deleted text beginA penalty of five percent of the tax being
assessed is imposed on a late filing of the annual report. If the report is not filed within
30 days, an additional penalty of five percent of the assessed tax is imposed for each
additional 30 days or fraction of 30 days until the return is filed. The penalty imposed
under this section must not exceed the lesser of $25,000 or 25 percent of the assessed tax.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning January 2, 2007, for taxes
payable in 2008 and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2006, section 270.072, subdivision 6, is amended to read:


Subd. 6.

Airflight property tax lien.

The tax imposed under sections 270.071 to
270.079 is a lien on all real and personal property within this state of the airline company
in whose name the property is assessed. deleted text beginFor purposes of sections 270C.62 and 270C.63,
the date of assessment for the tax imposed under sections 270.071 to 270.079 is
deleted text end new text beginThe lien
attaches on
new text endJanuary 2 of each year for the taxes payable in the following year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning January 2, 2007, for taxes
payable in 2008 and thereafter.
new text end

Sec. 5.

new text begin [270.0725] PENALTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Penalty for late filing. new text end

new text begin If an airline company does not file its annual
report by the date designated in section 270.072, subdivision 3, a penalty of five percent
of the tax being assessed is imposed on that company. On August 1, and on the first day
of each succeeding calendar month, an additional five percent penalty is imposed if the
report has not yet been filed. For each airline company, the penalties imposed under
this subdivision for any one year are limited to the lesser of $25,000 or 25 percent of
the assessed tax.
new text end

new text begin Subd. 2. new text end

new text begin Penalty for repeated instances of late filing. new text end

new text begin If there is a pattern of
repeated failures by an airline company to timely file the report required by this section, a
penalty of ten percent of the tax being assessed is imposed on that company.
new text end

new text begin Subd. 3. new text end

new text begin Penalty for frivolous report. new text end

new text begin If an airline company files a frivolous annual
report, a penalty of 25 percent of the tax being assessed is imposed on that company. A
frivolous report under this section is a report that would fulfill the criteria for a frivolous
return under section 289A.60, subdivision 7, notwithstanding the restriction in section
289A.01. In a proceeding involving the issue of whether or not an airline company is
liable for this penalty, the burden of proof is on the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Penalty for fraudulent report. new text end

new text begin If an airline company files a false or
fraudulent annual report with intent to evade or defeat the tax, a penalty equal to 50
percent of the tax being assessed is imposed on that company.
new text end

new text begin Subd. 5. new text end

new text begin Penalties added to tax. new text end

new text begin Penalties imposed under this section are added to
the tax and collected as a part of it.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for annual reports due on or after
July 1, 2007.
new text end

Sec. 6.

new text begin [270.0735] EXAMINATION; INVESTIGATIONS; SUBPOENAS.
new text end

new text begin In addition to the powers granted to the commissioner in this chapter, and in order to
determine net tax capacities and issue notices of net tax capacity and tax under sections
270.071 to 270.079, the commissioner has the powers contained in sections 270C.31 and
270C.32, for which purpose the word "taxpayer" as defined in section 270C.01 includes
an airline company.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning January 2, 2007, for taxes
payable in 2008 and thereafter.
new text end

Sec. 7.

Minnesota Statutes 2006, section 270.074, subdivision 3, is amended to read:


Subd. 3.

Tax capacity.

(a) new text beginThe net tax capacity of new text endthe flight property of every airline
company deleted text beginshall have a tax capacity ofdeleted text end new text beginis new text end70 percent of the value thereof apportioned to this
state under subdivision 1, except that new text beginthe net tax capacity of new text endquiet aircraft deleted text beginshall have a
tax capacity of
deleted text end new text beginis new text end40 percent of the value determined under subdivision 1. deleted text beginQuiet aircraft
shall include
deleted text endnew text begin "Quiet aircraft" meansnew text end turboprops and aircraft defined as stage III new text beginor IV new text endby
the Federal Aeronautics Administration. If, in the opinion of the commissioner, other
aircraft may be qualified as quiet aircraft, the commissioner may adopt rules providing
additional qualifications.

(b) The flight property of an airline company that owns or leases aircraft the majority
of which are turboprops, and which provides, during six months or more of the year that
taxes are levied, scheduled passenger service to three or more airports inside or outside of
this state that serve small or medium sized communities, shall be assessed at 50 percent of
the assessment percentage otherwise set by paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning January 2, 2007, for taxes
payable in 2008 and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2006, section 270.076, subdivision 1, is amended to read:


Subdivision 1.

Appeal.

deleted text beginAny airline company against which a tax has been imposed
under sections 270.071 to 270.079 shall have the right to appeal within 60 days from the
date of notice of the levy of the tax
deleted text end new text beginThe notices of net tax capacity and of tax required
under section 270.075, subdivision 2, are orders of the commissioner. These orders must
be issued in conformance with section 270C.33, subdivisions 1 and 2, but are not subject
to administrative review under section 270C.35. These orders may be appealed
new text endto the Tax
Court in the manner provided deleted text beginby lawdeleted text endnew text begin in section 271.06 for appealing official orders of
the commissioner that do not deal with valuation, assessment, or taxation for property
tax purposes, and the provisions of section 273.125, subdivisions 4 and 5, and chapter
278 do not apply
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning January 2, 2007, for taxes
payable in 2008 and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2006, section 270.41, subdivision 1, is amended to read:


Subdivision 1.

Creation; purpose; powers.

A Board of Assessors is created.
The board shall deleted text beginestablish, conduct,deleted text end review, supervise, coordinate, and approve courses
in assessment practices, and establish criteria for determining assessor's qualifications.
The board shall also consider other matters relating to assessment administration brought
before it by the commissioner of revenue. The board may grant, renew, suspend, or revoke
an assessor's license.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

Minnesota Statutes 2006, section 270.41, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Definition. new text end

new text begin For purposes of sections 270.41 to 270.50, "board" means
the Board of Assessors.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

Minnesota Statutes 2006, section 270.41, subdivision 2, is amended to read:


Subd. 2.

Members.

The board shall consist of nine members, who shall be
appointed by the commissioner of revenue, in the manner provided herein. The members
shall include:

(1) two from the Department of Revenue;

(2) two county assessors;

(3) two assessors who are not county assessors, one of whom shall be a township
assessor;

(4) one from the private appraisal field holding a professional appraisal designation;
and

(5) two public members as defined by section 214.02.

The appointment provided in clauses (2) and (3) may be made fromdeleted text begin two listsdeleted text end new text begina list
new text endof not less than three names deleted text begineach, onedeleted text end submitted to the commissioner of revenue by the
Minnesota Association of Assessing Officers or its successor organization containing
recommendations for the appointment of appointees described in deleted text beginclausedeleted text endnew text begin clausesnew text end (2)deleted text begin,
and one by the Minnesota Association of Assessors, Inc. or its successor organization
containing recommendations for the appointees described in clause (3)
deleted text endnew text begin and (3)new text end. The deleted text beginlistsdeleted text end
new text begin list new text endmust be submitted 30 days before the commencement of the term. In the case of a
vacancy, a new list shall be furnished to the commissioner deleted text beginby the respective organizationdeleted text end
immediately. A member of the board who is no longer engaged in the capacity deleted text beginlisted
above
deleted text end new text beginthat was the basis of appointment new text endis disqualified from membership in the board.

The board shall annually elect a chair and a deleted text beginsecretarydeleted text end new text beginvice-chair new text endof the board.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2006, section 270.41, subdivision 3, is amended to read:


Subd. 3.

Licenses; refusal or revocation.

The board may refuse to grant or renew,
or may suspend or revoke, a license of an applicant or licensee for any of the following
causes or acts:

(1) failure to complete required training;

(2) inefficiency or neglect of duty;

(3) deleted text begin"unprofessional conduct" which means knowingly neglecting to perform a duty
required by law, or violation of the laws of this state relating to the assessment of property
or unlawfully exempting property or knowingly and intentionally listing property on the
tax list at substantially less than its market value or the level required by law in order to
gain favor or benefit, or knowingly and intentionally misclassifying property in order to
gain favor or benefit
deleted text endnew text begin failure to comply with the Code of Conduct and Ethics for Licensed
Minnesota Assessors adopted by the board pursuant to Laws 2005, First Special Session
chapter 3, article 1, section 38
new text end;

(4) conviction of a crime involving moral turpitude; or

(5) any other cause or act that in the board's opinion warrants a refusal to issue
or suspension or revocation of a license.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13.

Minnesota Statutes 2006, section 270.41, subdivision 5, is amended to read:


Subd. 5.

Prohibited activity.

deleted text beginAn assessor, deputy assessor, assistant assessor,
appraiser,
deleted text end new text beginA licensed assessor new text endor other person employed by an assessment jurisdiction
or contracting with an assessment jurisdiction for the purpose of valuing or classifying
property for property tax purposes is prohibited from making appraisals or analyses,
accepting an appraisal assignment, or preparing an appraisal report as defined in section
82B.02, subdivisions 2 to 5, on any property within the assessment jurisdiction where the
individual is employed or performing the duties of the assessor under contract. Violation
of this prohibition shall result in immediate revocation of the individual's license to assess
property for property tax purposes. This prohibition must not be construed to prohibit an
individual from carrying out any duties required for the proper assessment of property
for property tax purposes. If a formal resolution has been adopted by the governing body
of a governmental unit, which specifies the purposes for which such work will be done,
this prohibition does not apply to appraisal activities undertaken on behalf of and at the
request of the governmental unit that has employed or contracted with the individual.
The resolution may only allow appraisal activities which are related to condemnations,
right-of-way acquisitions, or special assessments.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14.

Minnesota Statutes 2006, section 270.44, is amended to read:


270.44 CHARGES FOR COURSES, EXAMINATIONS OR MATERIALS.

The board shall charge the following fees:

(1) $105 for a senior accredited Minnesota assessor license;

(2) $80 for an accredited Minnesota assessor license;

(3) $65 for a certified Minnesota assessor specialist license;

(4) $55 for a certified Minnesota assessor license;

deleted text begin (5) $50 for a course challenge examination;
deleted text end

deleted text begin (6)deleted text end new text begin(5) new text end$35 for grading a form appraisal;

deleted text begin (7)deleted text end new text begin(6) new text end$60 for grading a narrative appraisal;

deleted text begin (8)deleted text end new text begin(7) new text end$30 for a reinstatement fee;

deleted text begin (9)deleted text end new text begin(8) new text end$25 for a record retention fee;new text begin and
new text end

deleted text begin (10)deleted text end new text begin(9) new text end$20 for an educational transcriptdeleted text begin; anddeleted text endnew text begin.
new text end

deleted text begin (11) $30 for all retests of board-sponsored educational courses.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 15.

Minnesota Statutes 2006, section 270.45, is amended to read:


270.45 DISPOSITION OF FEES.

All fees so established and collected shall be paid to the commissioner of finance for
deposit in the general fund. The expenses of carrying out the provisions of sections 270.41
to 270.53 shall be paid from appropriations made to the board deleted text beginof Assessorsdeleted text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 16.

Minnesota Statutes 2006, section 270.46, is amended to read:


270.46 TRAINING COURSES, deleted text beginESTABLISHMENT; OTHER COURSES,deleted text end
REGULATION.

The board shall deleted text beginestablishdeleted text end new text beginreview and approve new text endtraining courses on assessment
practices deleted text beginand shall review and approve courses on assessment practicesdeleted text endnew text begin, techniques of
assessment, and ethics
new text end offered by schools, colleges deleted text beginanddeleted text endnew text begin, new text end universities deleted text beginas well as courses that
are offered by any units of government on techniques of assessment. Courses shall be
established in various places throughout the state and be offered on regular intervals
deleted text endnew text begin, units
of government, and other entities
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 17.

Minnesota Statutes 2006, section 270.47, is amended to read:


270.47 RULES.

The board shall deleted text beginestablish thedeleted text end new text beginadopt new text endrules necessary to accomplish the purpose of
deleted text begin sectiondeleted text end new text beginsections new text end270.41new text begin to 270.51new text end, and shall establish criteria required of assessing officials
in the state. Separate criteria may be established depending upon the responsibilities of the
assessor. deleted text beginThe board shall prepare and give examinations from time to time to determine
whether assessing officials possess the necessary qualifications for performing the
functions of the office. Such tests shall be given immediately upon completion of courses
required by the board, or to persons who already possess the requisite qualifications under
the rules of the board.
deleted text endnew text begin An action of the board in refusing to grant or renew a license or in
suspending or revoking a license is subject to review in accordance with chapter 14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 18.

Minnesota Statutes 2006, section 270.48, is amended to read:


270.48 LICENSURE OF QUALIFIED PERSONS.

The board deleted text beginshalldeleted text endnew text begin maynew text end license persons as possessing the necessary qualifications of an
assessing official. Different levels of licensure may be established as to classes of property
which assessors may be certified to assess at the discretion of the board. Every person,
except a local or county assessor, regularly employed by the assessor to assist in making
decisions regarding valuing and classifying property for assessment purposes deleted text beginshall be
required to
deleted text end new text beginmust new text endbecome licensed within three years of the date of employment. Licensure
shall be required for local and county assessors as deleted text beginotherwisedeleted text end provided in deleted text beginsections 270.41
to 270.53
deleted text endnew text begin section 273.061 and rules adopted by the boardnew text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 19.

Minnesota Statutes 2006, section 270.50, is amended to read:


270.50 EMPLOYMENT OF LICENSED ASSESSORS.

No assessor shall be employed who has not been licensed as qualified by the board,
provided the time to comply may be extended after application to the board upon a
showing that licensed assessors are not available for employment. The board may license
deleted text begin thatdeleted text end a county or local assessor who has not received the training, but possesses the
necessary qualifications for performing the functions of the office by the passage of an
approved examination or may waive the examination if such person has demonstrated
competence in performing the functions of the office for a period of time the board deems
reasonable. deleted text beginThe county or local assessing district shall assume the cost of training of its
assessors in courses approved by the board for the purpose of obtaining the assessor's
license to the extent of course fees, mileage, meals and lodging, and recognized travel
expenses not paid by the state. If the governing body of any township or city fails to
employ an assessor as required by sections 270.41 to 270.53, the assessment shall be
made by the county assessor.
deleted text end

deleted text begin In the case of cities incorporated or townships organized after April 11, 1974, except
cities or towns located in Ramsey county or which have elected a county assessor system
in accordance with section 273.055, the board shall allow the city or town 90 days from
the date of incorporation or organization to employ a licensed assessor.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 20.

Minnesota Statutes 2006, section 270C.306, is amended to read:


270C.306 COMMISSIONER MAY REQUIRE SOCIAL SECURITY OR
IDENTIFYING NUMBERS ON FORMS.

Notwithstanding the provisions of any other lawnew text begin except section 272.115new text end, the
commissioner may require that a form required to be filed with the commissioner include
the Social Security number, federal employer identification number, or Minnesota
taxpayer identification number of the taxpayer or applicant.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 21.

Minnesota Statutes 2006, section 270C.34, subdivision 1, is amended to read:


Subdivision 1.

Authority.

(a) The commissioner may abate, reduce, or refund any
penalty or interest that is imposed by a law administered by the commissioner as a result
of the late payment of tax or late filing of a return, if the failure to timely pay the tax or
failure to timely file the return is due to reasonable cause, or if the taxpayer is located
in a presidentially declared disaster area.

(b) The commissioner shall abate any part of a penalty or additional tax charge
under section 289A.25, subdivision 2, or 289A.26, subdivision 4, attributable to erroneous
advice given to the taxpayer in writing by an employee of the department acting in
an official capacity, if the advice:

(1) was reasonably relied on and was in response to a specific written request of the
taxpayer; and

(2) was not the result of failure by the taxpayer to provide adequate or accurate
information.

new text begin (c) The commissioner may abate a penalty imposed under section 270.0725,
subdivision 1 or 2, if the failure to timely file is due to reasonable cause, or if the airline
company is located in a presidentially declared disaster area.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 22.

Minnesota Statutes 2006, section 272.02, subdivision 64, is amended to read:


Subd. 64.

Job opportunity building zone property.

(a) Improvements to real
property, and personal property, classified under section 273.13, subdivision 24, and
located within a job opportunity building zone, designated under section 469.314, are
exempt from ad valorem taxes levied under chapter 275.

(b) Improvements to real property, and tangible personal property, of an agricultural
production facility located within an agricultural processing facility zone, designated
under section 469.314, is exempt from ad valorem taxes levied under chapter 275.

(c) For property to qualify for exemption under paragraph (a), the occupant must be
a qualified business, as defined in section 469.310.

(d) The exemption applies beginning for the first assessment year after designation
of the job opportunity building zone by the commissioner of employment and economic
development. The exemption applies to each assessment year that begins during the
duration of the job opportunity building zone. To be exempt, the property must be
occupied by July 1 of the assessment year by a qualified business that has signed the
business subsidy agreement and relocation agreement, if required, by July 1 of the
assessment year. This exemption does not apply to:

(1) the levy under section 475.61 or similar levy provisions under any other law to
pay general obligation bonds; or

(2) a levy under section 126C.17, if the levy was approved by the voters before the
designation of the job opportunity building zone.

new text begin (e) Except for property of a business that was exempt under this subdivision for
taxes payable in 2007, a business must notify the county assessor in writing of eligibility
under this subdivision by July 1 in order to begin receiving the exemption under this
subdivision for taxes payable in the following year. The business need not annually notify
the county assessor of its continued exemption under this subdivision, but must notify the
county assessor immediately if the exemption no longer applies.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 23.

Minnesota Statutes 2006, section 272.115, subdivision 1, is amended to read:


Subdivision 1.

Requirement.

Except as otherwise provided in subdivision 5,
whenever any real estate is sold for a consideration in excess of $1,000, whether by
warranty deed, quitclaim deed, contract for deed or any other method of sale, the grantor,
grantee or the legal agent of either shall file a certificate of value with the county
auditor in the county in which the property is located when the deed or other document
is presented for recording. Contract for deeds are subject to recording under section
507.235, subdivision 1. Value shall, in the case of any deed not a gift, be the amount of
the full actual consideration thereof, paid or to be paid, including the amount of any lien
or liens assumed. The items and value of personal property transferred with the real
property must be listed and deducted from the sale price. The certificate of value shall
include the classification to which the property belongs for the purpose of determining
the fair market value of the property. The certificate shall include financing terms and
conditions of the sale which are necessary to determine the actual, present value of
the sale price for purposes of the sales ratio study. The commissioner of revenue shall
promulgate administrative rules specifying the financing terms and conditions which must
be included on the certificate. deleted text beginPursuant to the authority of the commissioner of revenue in
section 270C.306,
deleted text end The certificate of value must include the Social Security number or
the federal employer identification number of the grantors and grantees.new text begin However, a
married person who is not an owner of record and who is signing a conveyance instrument
along with the person's spouse solely because of the requirement in section 507.02 that
spouses of owners must sign certain conveyances is not a grantor for the purpose of the
preceding sentence.
new text end The identification numbers of the grantors and grantees are private
data on individuals or nonpublic data as defined in section 13.02, subdivisions 9 and 12,
but, notwithstanding that section, the private or nonpublic data may be disclosed to the
commissioner of revenue for purposes of tax administration. The information required to
be shown on the certificate of value is limited to the information required as of the date of
the acknowledgment on the deed or other document to be recorded.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for certificates of value filed on or
after July 1, 2007.
new text end

Sec. 24.

Minnesota Statutes 2006, section 273.05, is amended by adding a subdivision
to read:


new text begin Subd. 3. new text end

new text begin Cities and townships; employment of licensed assessor. new text end

new text begin In the case
of cities or townships, except cities or towns located in Ramsey County or which have
elected a county assessor system in accordance with section 273.055, the commissioner
shall allow the city or town 90 days from the date of incorporation or organization to
employ a licensed assessor.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 25.

new text begin [273.0535] COUNTY OR LOCAL ASSESSING DISTRICT TO ASSUME
COST OF TRAINING.
new text end

new text begin The county or local assessing district must assume the cost of training its assessors
in courses approved by the board for the purpose of obtaining the assessor's license to
the extent of course fees, mileage, meals, and lodging, and recognized travel expenses
not paid by the state.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 26.

Minnesota Statutes 2006, section 273.111, subdivision 3, is amended to read:


Subd. 3.

Requirements.

(a) Real estate consisting of ten acres or more or a nursery
or greenhouse, and qualifying for classification as class 1b, 2a, or 2b under section 273.13,
shall be entitled to valuation and tax deferment under this section only if it is primarily
devoted to agricultural use, and meets the qualifications in subdivision 6, and either:

(1) is the homestead of the owner, or of a surviving spouse, child, or sibling of the
owner or is real estate which is farmed with the real estate which contains the homestead
property; or

(2) has been in possession of the applicant, the applicant's spouse, parent, or sibling,
or any combination thereof, for a period of at least seven years prior to application for
benefits under the provisions of this section, or is real estate which is farmed with the
real estate which qualifies under this clause and is within four townships or cities or
combination thereof from the qualifying real estate; or

(3) is the homestead of a shareholder in a family farm corporation as defined in
section 500.24, notwithstanding the fact that legal title to the real estate may be held in the
name of the family farm corporation; or

(4) is in the possession of a nursery or greenhouse or an entity owned by a proprietor,
partnership, or corporation which also owns the nursery or greenhouse operations on
the parcel or parcels.

(b) Valuation of real estate under this section is limited to parcels the ownership of
which is in noncorporate entities except for:

(1) family farm corporations organized pursuant to section 500.24; and

(2) corporations that derive 80 percent or more of their gross receipts from the
wholesale or retail sale of horticultural or nursery stock.

deleted text begin Corporate entities who previously qualified for tax deferment pursuant to this section
and who continue to otherwise qualify under subdivisions 3 and 6 for a period of at least
three years following the effective date of Laws 1983, chapter 222, section 8, will not be
required to make payment of the previously deferred taxes, notwithstanding the provisions
of subdivision 9. Special assessments are payable at the end of the three-year period
or at time of sale, whichever comes first.
deleted text end

(c) Land that previously qualified for tax deferment under this section and no longer
qualifies because it is not primarily used for agricultural purposes but would otherwise
qualify under subdivisions 3 and 6 for a period of at least three years will not be required
to make payment of the previously deferred taxes, notwithstanding the provisions of
subdivision 9. Sale of the land prior to the expiration of the three-year period requires
payment of deferred taxes as follows: sale in the year the land no longer qualifies requires
payment of the current year's deferred taxes plus payment of deferred taxes for the two
prior years; sale during the second year the land no longer qualifies requires payment of
the current year's deferred taxes plus payment of the deferred taxes for the prior year; and
sale during the third year the land no longer qualifies requires payment of the current
year's deferred taxes. Deferred taxes shall be paid even if the land qualifies pursuant to
subdivision 11a. When such property is sold or no longer qualifies under this paragraph, or
at the end of the three-year period, whichever comes first, all deferred special assessments
plus interest are payable in equal installments spread over the time remaining until the last
maturity date of the bonds issued to finance the improvement for which the assessments
were levied. If the bonds have matured, the deferred special assessments plus interest
are payable within 90 days. The provisions of section 429.061, subdivision 2, apply
to the collection of these installments. Penalties are not imposed on any such special
assessments if timely paid.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 27.

Minnesota Statutes 2006, section 273.117, is amended to read:


273.117 CONSERVATION PROPERTY TAX VALUATION.

Real property which is subject to a conservation restriction or easement deleted text beginshalldeleted text end new text beginmay new text endbe
entitled to reduced valuation under this section if:

(a) The restriction or easement is for a conservation purpose as defined in section
84.64, subdivision 2, and is recorded on the property;

(b) The property is being used in accordance with the terms of the conservation
restriction or easement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 28.

Minnesota Statutes 2006, section 273.121, is amended to read:


273.121 VALUATION OF REAL PROPERTY, NOTICE.

Any county assessor or city assessor having the powers of a county assessor, valuing
or classifying taxable real property shall in each year notify those persons whose property
is to be included on the assessment roll that year if the person's address is known to the
assessor, otherwise the occupant of the property. The notice shall be in writing and shall be
sent by ordinary mail at least ten days before the meeting of the local board of appeal and
equalization under section 274.01 or the review process established under section 274.13,
subdivision 1c
. new text beginUpon written request by the owner of the property, the assessor may send
the notice in electronic form or by electronic mail instead of on paper or by ordinary mail.
new text endIt shall contain: (1) the market value for the current and prior assessment, (2) the limited
market value under section 273.11, subdivision 1a, for the current and prior assessment,
(3) the qualifying amount of any improvements under section 273.11, subdivision 16,
for the current assessment, (4) the market value subject to taxation after subtracting the
amount of any qualifying improvements for the current assessment, (5) the classification
of the property for the current and prior assessment, (6) a note that if the property is
homestead and at least 45 years old, improvements made to the property may be eligible
for a valuation exclusion under section 273.11, subdivision 16, (7) the assessor's office
address, and (8) the dates, places, and times set for the meetings of the local board of
appeal and equalization, the review process established under section 274.13, subdivision
1c
, and the county board of appeal and equalization. The commissioner of revenue shall
specify the form of the notice. The assessor shall attach to the assessment roll a statement
that the notices required by this section have been mailed. Any assessor who is not
provided sufficient funds from the assessor's governing body to provide such notices,
may make application to the commissioner of revenue to finance such notices. The
commissioner of revenue shall conduct an investigation and, if satisfied that the assessor
does not have the necessary funds, issue a certification to the commissioner of finance
of the amount necessary to provide such notices. The commissioner of finance shall
issue a warrant for such amount and shall deduct such amount from any state payment
to such county or municipality. The necessary funds to make such payments are hereby
appropriated. Failure to receive the notice shall in no way affect the validity of the
assessment, the resulting tax, the procedures of any board of review or equalization, or
the enforcement of delinquent taxes by statutory means.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for notices required in 2008 and
thereafter.
new text end

Sec. 29.

Minnesota Statutes 2006, section 273.123, subdivision 2, is amended to read:


Subd. 2.

Reassessment of homestead property.

The county assessor shall reassess
all homestead property located within a disaster or emergency area which is physically
damaged by the disaster or emergency and shall adjust the valuation for taxes payable the
following year to reflect the loss in market value caused by the damage as follows: Subtract
the market value of the property as reassessed from the market value of the property as
assessed new text beginunder section 273.01 new text endfor deleted text beginJanuary 1 ofdeleted text end the year in which the disaster or emergency
occurred; multiply the remainder by a fraction, the numerator of which is the number of
full months remaining in the year on the date the disaster or emergency occurred, and the
denominator of which is 12; subtract the product of the calculation from the market value
of the property as assessed for deleted text beginJanuary 1 ofdeleted text end the year in which the disaster or emergency
occurred; the remainder is the estimated market value to be used for taxes payable the
following year. The assessor shall report to the county auditor the net tax capacity based
on the assessment deleted text beginof January 1 ofdeleted text end new text beginfor new text endthe year in which the disaster or emergency occurred
and the net tax capacity based on the reassessment made pursuant to this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 30.

Minnesota Statutes 2006, section 273.123, subdivision 3, is amended to read:


Subd. 3.

Computation of local tax rates.

deleted text beginWhen computingdeleted text end Local tax ratesdeleted text begin,deleted text end new text beginmust
be computed by
new text endthe county auditor deleted text beginshall usedeleted text end new text beginbased upon new text endthe valuation new text beginas of January 2 as
new text endreported by the assessor for the assessment deleted text beginmade on January 1 of thedeleted text end year in which the
disaster or emergency occurrednew text begin, and as returned by the local, county, and state boards of
review and equalization and the commissioner of revenue
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 31.

Minnesota Statutes 2006, section 273.124, subdivision 13, is amended to read:


Subd. 13.

Homestead application.

(a) A person who meets the homestead
requirements under subdivision 1 must file a homestead application with the county
assessor to initially obtain homestead classification.

(b) deleted text beginOn or before January 2, 1993, each county assessor shall mail a homestead
application to the owner of each parcel of property within the county which was
classified as homestead for the 1992 assessment year.
deleted text end The format and contents of a
uniform homestead application shall be prescribed by the commissioner of revenue. deleted text beginThe
commissioner shall consult with the chairs of the house and senate tax committees on the
contents of the homestead application form.
deleted text end The application must clearly inform the
taxpayer that this application must be signed by all owners who occupy the property or
by the qualifying relative and returned to the county assessor in order for the property to
deleted text begin continue receivingdeleted text end new text beginreceive new text endhomestead treatment. deleted text beginThe envelope containing the homestead
application shall clearly identify its contents and alert the taxpayer of its necessary
immediate response.
deleted text end

(c) Every property owner applying for homestead classification must furnish to the
county assessor the Social Security number of each occupant who is listed as an owner
of the property on the deed of record, the name and address of each owner who does not
occupy the property, and the name and Social Security number of each owner's spouse who
occupies the property. The application must be signed by each owner who occupies the
property and by each owner's spouse who occupies the property, or, in the case of property
that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.

If a property owner occupies a homestead, the property owner's spouse may not
claim another property as a homestead unless the property owner and the property owner's
spouse file with the assessor an affidavit or other proof required by the assessor stating that
the property qualifies as a homestead under subdivision 1, paragraph (e).

Owners or spouses occupying residences owned by their spouses and previously
occupied with the other spouse, either of whom fail to include the other spouse's name
and Social Security number on the homestead application or provide the affidavits or
other proof requested, will be deemed to have elected to receive only partial homestead
treatment of their residence. The remainder of the residence will be classified as
nonhomestead residential. When an owner or spouse's name and Social Security number
appear on homestead applications for two separate residences and only one application is
signed, the owner or spouse will be deemed to have elected to homestead the residence for
which the application was signed.

The Social Security numbers or affidavits or other proofs of the property owners
and spouses are private data on individuals as defined by section 13.02, subdivision 12,
but, notwithstanding that section, the private data may be disclosed to the commissioner
of revenue, or, for purposes of proceeding under the Revenue Recapture Act to recover
personal property taxes owing, to the county treasurer.

(d) If residential real estate is occupied and used for purposes of a homestead by a
relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in
order for the property to receive homestead status, a homestead application must be filed
with the assessor. The Social Security number of each relativenew text begin and spouse of a relativenew text end
occupying the property deleted text beginand the Social Security number of each owner who is related to an
occupant of the property
deleted text end shall be required on the homestead application filed under this
subdivision. If a different relative of the owner subsequently occupies the property, the
owner of the property must notify the assessor within 30 days of the change in occupancy.
The Social Security number of a relativenew text begin or relative's spousenew text end occupying the property
is private data on individuals as defined by section 13.02, subdivision 12, but may be
disclosed to the commissioner of revenuenew text begin, or, for the purposes of proceeding under the
Revenue Recapture Act to recover personal property taxes owing, to the county treasurer
new text end.

(e) The homestead application shall also notify the property owners that the
application filed under this section will not be mailed annually and that if the property
is granted homestead status for deleted text beginthe 1993 assessment, ordeleted text end any assessment year deleted text beginthereafterdeleted text end,
that same property shall remain classified as homestead until the property is sold or
transferred to another person, or the owners, the spouse of the owner, or the relatives no
longer use the property as their homestead. Upon the sale or transfer of the homestead
property, a certificate of value must be timely filed with the county auditor as provided
under section 272.115. Failure to notify the assessor within 30 days that the property has
been sold, transferred, or that the owner, the spouse of the owner, or the relative is no
longer occupying the property as a homestead, shall result in the penalty provided under
this subdivision and the property will lose its current homestead status.

(f) If the homestead application is not returned within 30 days, the county will send a
second application to the present owners of record. The notice of proposed property taxes
prepared under section 275.065, subdivision 3, shall reflect the property's classification.
deleted text begin Beginning with assessment year 1993 for all properties,deleted text end If a homestead application has
not been filed with the county by December 15, the assessor shall classify the property
as nonhomestead for the current assessment year for taxes payable in the following year,
provided that the owner may be entitled to receive the homestead classification by proper
application under section 375.192.

(g) At the request of the commissioner, each county must give the commissioner a
list that includes the name and Social Security number of eachnew text begin occupant of homestead
property who is the
new text end property owner deleted text beginand thedeleted text endnew text begin,new text end property owner's spouse deleted text beginoccupying the
property, or
deleted text endnew text begin, qualifyingnew text end relative of a property owner, deleted text beginapplying for homestead classification
under this subdivision
deleted text endnew text begin or a spouse of a qualifying relativenew text end. The commissioner shall use the
information provided on the lists as appropriate under the law, including for the detection
of improper claims by owners, or relatives of owners, under chapter 290A.

(h) If the commissioner finds that a property owner may be claiming a fraudulent
homestead, the commissioner shall notify the appropriate counties. Within 90 days of
the notification, the county assessor shall investigate to determine if the homestead
classification was properly claimed. If the property owner does not qualify, the county
assessor shall notify the county auditor who will determine the amount of homestead
benefits that had been improperly allowed. For the purpose of this section, "homestead
benefits" means the tax reduction resulting from the classification as a homestead under
section 273.13, the taconite homestead credit under section 273.135, the residential
homestead and agricultural homestead credits under section 273.1384, and the
supplemental homestead credit under section 273.1391.

The county auditor shall send a notice to the person who owned the affected property
at the time the homestead application related to the improper homestead was filed,
demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent
of the homestead benefits. The person notified may appeal the county's determination
by serving copies of a petition for review with county officials as provided in section
278.01 and filing proof of service as provided in section 278.01 with the Minnesota Tax
Court within 60 days of the date of the notice from the county. Procedurally, the appeal
is governed by the provisions in chapter 271 which apply to the appeal of a property tax
assessment or levy, but without requiring any prepayment of the amount in controversy. If
the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal
has been filed, the county auditor shall certify the amount of taxes and penalty to the county
treasurer. The county treasurer will add interest to the unpaid homestead benefits and
penalty amounts at the rate provided in section 279.03 for real property taxes becoming
delinquent in the calendar year during which the amount remains unpaid. Interest may be
assessed for the period beginning 60 days after demand for payment was made.

If the person notified is the current owner of the property, the treasurer may add the
total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes
otherwise payable on the property by including the amounts on the property tax statements
under section 276.04, subdivision 3. The amounts added under this paragraph to the ad
valorem taxes shall include interest accrued through December 31 of the year preceding
the taxes payable year for which the amounts are first added. These amounts, when added
to the property tax statement, become subject to all the laws for the enforcement of real or
personal property taxes for that year, and for any subsequent year.

If the person notified is not the current owner of the property, the treasurer may
collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of
the powers granted in sections 277.20 and 277.21 without exclusion, to enforce payment
of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent
tax obligations of the person who owned the property at the time the application related
to the improperly allowed homestead was filed. The treasurer may relieve a prior owner
of personal liability for the homestead benefits, penalty, interest, and costs, and instead
extend those amounts on the tax lists against the property as provided in this paragraph
to the extent that the current owner agrees in writing. On all demands, billings, property
tax statements, and related correspondence, the county must list and state separately the
amounts of homestead benefits, penalty, interest and costs being demanded, billed or
assessed.

(i) Any amount of homestead benefits recovered by the county from the property
owner shall be distributed to the county, city or town, and school district where the
property is located in the same proportion that each taxing district's levy was to the total
of the three taxing districts' levy for the current year. Any amount recovered attributable
to taconite homestead credit shall be transmitted to the St. Louis County auditor to be
deposited in the taconite property tax relief account. Any amount recovered that is
attributable to supplemental homestead credit is to be transmitted to the commissioner of
revenue for deposit in the general fund of the state treasury. The total amount of penalty
collected must be deposited in the county general fund.

(j) If a property owner has applied for more than one homestead and the county
assessors cannot determine which property should be classified as homestead, the county
assessors will refer the information to the commissioner. The commissioner shall make
the determination and notify the counties within 60 days.

(k) In addition to lists of homestead properties, the commissioner may ask the
counties to furnish lists of all properties and the record owners. The Social Security
numbers and federal identification numbers that are maintained by a county or city
assessor for property tax administration purposes, and that may appear on the lists retain
their classification as private or nonpublic data; but may be viewed, accessed, and used by
the county auditor or treasurer of the same county for the limited purpose of assisting the
commissioner in the preparation of microdata samples under section 270C.12.

(l) On or before April 30 each year beginning in 2007, each county must provide the
commissioner with the following data for each parcel of homestead property by electronic
means as defined in section 289A.02, subdivision 8:

(i) the property identification number assigned to the parcel for purposes of taxes
payable in the current year;

(ii) the name and Social Security number of eachnew text begin occupant of homestead property
who is the
new text end property owner deleted text beginanddeleted text endnew text begin,new text end property owner's spouse, deleted text beginas shown on the tax rolls for the
current and the prior assessment year
deleted text endnew text begin qualifying relative of a property owner, or spouse
of a qualifying relative
new text end;

(iii) the classification of the property under section 273.13 for taxes payable in the
current year and in the prior year;

(iv) an indication of whether the property was classified as a homestead for taxes
payable in the current year deleted text beginor for taxes payable in the prior yeardeleted text end because of occupancy by
a relative of the owner or by a spouse of a relative;

(v) the property taxes payable as defined in section 290A.03, subdivision 13, for the
current year and the prior year;

(vi) the market value of improvements to the property first assessed for tax purposes
for taxes payable in the current year;

(vii) the assessor's estimated market value assigned to the property for taxes payable
in the current year and the prior year;

(viii) the taxable market value assigned to the property for taxes payable in the
current year and the prior year;

(ix) whether there are delinquent property taxes owing on the homestead;

(x) the unique taxing district in which the property is located; and

(xi) such other information as the commissioner decides is necessary.

The commissioner shall use the information provided on the lists as appropriate
under the law, including for the detection of improper claims by owners, or relatives
of owners, under chapter 290A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 32.

Minnesota Statutes 2006, section 273.124, subdivision 21, is amended to read:


Subd. 21.

Trust property; homestead.

Real property held by a trustee under a trust
is eligible for classification as homestead property if:

(1) the grantor or surviving spouse of the grantor of the trust occupies and uses the
property as a homestead;

(2) a relative or surviving relative of the grantor who meets the requirements of
subdivision 1, paragraph (c), in the case of residential real estate; or subdivision 1,
paragraph (d), in the case of agricultural property, occupies and uses the property as
a homestead;

(3) a family farm corporation, joint farm venture, limited liability company, or
partnership operating a family farm rents the property held by a trustee under a trust, and
the grantor, the spouse new text beginor surviving spouse new text endof the grantor, or the deleted text beginsondeleted text end new text beginchild new text endor deleted text begindaughterdeleted text end
new text begin grandchild new text endof the grantor, who is also a shareholder, member, or partner of the corporation,
joint farm venture, limited liability company, or partnership occupies and uses the property
as a homestead, or is actively farming the property on behalf of the corporation, joint farm
venture, limited liability company, or partnership; or

(4) a person who has received homestead classification for property taxes payable in
2000 on the basis of an unqualified legal right under the terms of the trust agreement to
occupy the property as that person's homestead and who continues to use the property as
a homestead or a person who received the homestead classification for taxes payable in
2005 under clause (3) who does not qualify under clause (3) for taxes payable in 2006
or thereafter but who continues to qualify under clause (3) as it existed for taxes payable
in 2005.

For purposes of this subdivision, "grantor" is defined as the person creating or
establishing a testamentary, inter Vivos, revocable or irrevocable trust by written
instrument or through the exercise of a power of appointment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 33.

Minnesota Statutes 2006, section 273.1398, subdivision 4, is amended to read:


Subd. 4.

Disparity reduction credit.

(a) Beginning with taxes payable in 1989,
class 4a, class 3a, and class 3b property qualifies for a disparity reduction credit if: (1)
the property is located in a border city that has an enterprise zone designated pursuant
to section 469.168, subdivision 4; (2) the property is located in a city with a population
greater than 2,500 and less than 35,000 according to the 1980 decennial census; (3) the
city is adjacent to a city in another state or immediately adjacent to a city adjacent to a city
in another state; and (4) the adjacent city in the other state has a population of greater than
5,000 and less than 75,000new text begin according to the 1980 decennial censusnew text end.

(b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a
property to 2.3 percent of the property's market value and (ii) the tax on class 3a and class
3b property to 2.3 percent of market value.

(c) The county auditor shall annually certify the costs of the credits to the
Department of Revenue. The department shall reimburse local governments for the
property taxes foregone as the result of the credits in proportion to their total levies.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxes payable in
2001 and thereafter.
new text end

Sec. 34.

Minnesota Statutes 2006, section 273.33, subdivision 2, is amended to read:


Subd. 2.

Listing and assessment by commissioner.

The personal property,
consisting of the pipeline system of mains, pipes, and equipment attached thereto, of
pipeline companies and others engaged in the operations or business of transporting
natural gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed
with and assessed by the commissioner of revenuenew text begin and the values provided to the city
or county assessor by order
new text end. This subdivision shall not apply to the assessment of
the products transported through the pipelines nor to the lines of local commercial gas
companies engaged primarily in the business of distributing gas to consumers at retail nor
to pipelines used by the owner thereof to supply natural gas or other petroleum products
exclusively for such owner's own consumption and not for resale to others. If more than
85 percent of the natural gas or other petroleum products actually transported over the
pipeline is used for the owner's own consumption and not for resale to others, then this
subdivision shall not apply; provided, however, that in that event, the pipeline shall be
assessed in proportion to the percentage of gas actually transported over such pipeline that
is not used for the owner's own consumption. On or before June 30, the commissioner
shall certify to the auditor of each county, the amount of such personal property assessment
against each company in each district in which such property is located.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 35.

Minnesota Statutes 2006, section 273.37, subdivision 2, is amended to read:


Subd. 2.

Listing and assessment by commissioner.

Transmission lines of less
than 69 kv, transmission lines of 69 kv and above located in an unorganized township,
and distribution lines, and equipment attached thereto, having a fixed situs outside the
corporate limits of cities except distribution lines taxed as provided in sections 273.40
and 273.41, shall be listed with and assessed by the commissioner of revenue in the
county where situatednew text begin and the values provided to the city or county assessor by ordernew text end.
The commissioner shall assess such property at the percentage of market value fixed by
law; and, on or before June 30, shall certify to the auditor of each county in which such
property is located the amount of the assessment made against each company and person
owning such property.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 36.

Minnesota Statutes 2006, section 273.371, subdivision 1, is amended to read:


Subdivision 1.

Report required.

Every electric light, power, gas, water, express,
stage, and transportation company and pipeline doing business in Minnesota shall
annually file with the commissioner on or before March 31 a report under oath setting
forth the information prescribed by the commissioner to enable the commissioner to make
valuations, recommended valuations, and equalization required under sections 273.33,
273.35, 273.36, deleted text beginanddeleted text end 273.37new text begin, and 273.3711new text end. If all the required information is not available
on March 31, the company or pipeline shall file the information that is available on or
before March 31, and the balance of the information as soon as it becomes available.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 37.

new text begin [273.3711] RECOMMENDED AND ORDERED VALUES.
new text end

new text begin For purposes of sections 273.33, 273.35, 273.36, 273.37, 273.371, and 273.372,
all values not required to be listed and assessed by the commissioner of revenue are
recommended values.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 38.

Minnesota Statutes 2006, section 274.01, subdivision 1, is amended to read:


Subdivision 1.

Ordinary board; meetings, deadlines, grievances.

(a) The town
board of a town, or the council or other governing body of a city, is the board of appeal
and equalization except (1) in cities whose charters provide for a board of equalization or
(2) in any city or town that has transferred its local board of review power and duties to
the county board as provided in subdivision 3. The county assessor shall fix a day and
time when the board or the board of equalization shall meet in the assessment districts
of the county. Notwithstanding any law or city charter to the contrary, a city board of
equalization shall be referred to as a board of appeal and equalization. On or before
February 15 of each year the assessor shall give written notice of the time to the city or
town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings
must be held between April 1 and May 31 each year. The clerk shall give published and
posted notice of the meeting at least ten days before the date of the meeting.

The board shall meet at the office of the clerk to review the assessment and
classification of property in the town or city. No changes in valuation or classification
which are intended to correct errors in judgment by the county assessor may be made by
the county assessor after the board has adjourned in those cities or towns that hold a
local board of review; however, corrections of errors that are merely clerical in nature or
changes that extend homestead treatment to property are permitted after adjournment until
the tax extension date for that assessment year. The changes must be fully documented and
maintained in the assessor's office and must be available for review by any person. A copy
of the changes made during this period in those cities or towns that hold a local board of
review must be sent to the county board no later than December 31 of the assessment year.

(b) The board shall determine whether the taxable property in the town or city has
been properly placed on the list and properly valued by the assessor. If real or personal
property has been omitted, the board shall place it on the list with its market value, and
correct the assessment so that each tract or lot of real property, and each article, parcel,
or class of personal property, is entered on the assessment list at its market value. No
assessment of the property of any person may be raised unless the person has been
duly notified of the intent of the board to do so. On application of any person feeling
aggrieved, the board shall review the assessment or classification, or both, and correct
it as appears just. The board may not make an individual market value adjustment or
classification change that would benefit the property if the owner or other person having
control over the property has refused the assessor access to inspect the property and the
interior of any buildings or structures as provided in section 273.20.new text begin A board member
shall not participate in any actions of the board which result in market value adjustments
or classification changes to property owned by the board member, the spouse, parent,
stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew,
or niece of a board member, or property in which a board member has a financial interest.
The relationship may be by blood or marriage.
new text end

(c) A local board may reduce assessments upon petition of the taxpayer but the total
reductions must not reduce the aggregate assessment made by the county assessor by more
than one percent. If the total reductions would lower the aggregate assessments made by
the county assessor by more than one percent, none of the adjustments may be made. The
assessor shall correct any clerical errors or double assessments discovered by the board
without regard to the one percent limitation.

(d) A local board does not have authority to grant an exemption or to order property
removed from the tax rolls.

(e) A majority of the members may act at the meeting, and adjourn from day to day
until they finish hearing the cases presented. The assessor shall attend, with the assessment
books and papers, and take part in the proceedings, but must not vote. The county assessor,
or an assistant delegated by the county assessor shall attend the meetings. The board shall
list separately, on a form appended to the assessment book, all omitted property added
to the list by the board and all items of property increased or decreased, with the market
value of each item of property, added or changed by the board, placed opposite the item.
The county assessor shall enter all changes made by the board in the assessment book.

(f) Except as provided in subdivision 3, if a person fails to appear in person, by
counsel, or by written communication before the board after being duly notified of the
board's intent to raise the assessment of the property, or if a person feeling aggrieved by an
assessment or classification fails to apply for a review of the assessment or classification,
the person may not appear before the county board of appeal and equalization for a review
of the assessment or classification. This paragraph does not apply if an assessment was
made after the local board meeting, as provided in section 273.01, or if the person can
establish not having received notice of market value at least five days before the local
board meeting.

(g) The local board must complete its work and adjourn within 20 days from the
time of convening stated in the notice of the clerk, unless a longer period is approved by
the commissioner of revenue. No action taken after that date is valid. All complaints
about an assessment or classification made after the meeting of the board must be heard
and determined by the county board of equalization. A nonresident may, at any time,
before the meeting of the board file written objections to an assessment or classification
with the county assessor. The objections must be presented to the board at its meeting by
the county assessor for its consideration.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 39.

Minnesota Statutes 2006, section 274.13, subdivision 1, is amended to read:


Subdivision 1.

Members; meetings; rules for equalizing assessments.

The county
commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be
present, the deputy county auditor, or, if there is no deputy, the court administrator of the
district court, shall form a board for the equalization of the assessment of the property
of the county, including the property of all cities whose charters provide for a board of
equalization. This board shall be referred to as the county board of appeal and equalization.
The board shall meet annually, on the date specified in section 274.14, at the office of the
auditor. Each member shall take an oath to fairly and impartially perform duties as a
member. new text beginMembers shall not participate in any actions of the board which result in market
value adjustments or classification changes to property owned by the board member, the
spouse, parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle,
aunt, nephew, or niece of a board member, or property in which a board member has a
financial interest. The relationship may be by blood or marriage.
new text endThe board shall examine
and compare the returns of the assessment of property of the towns or districts, and
equalize them so that each tract or lot of real property and each article or class of personal
property is entered on the assessment list at its market value, subject to the following rules:

(1) The board shall raise the valuation of each tract or lot of real property which
in its opinion is returned below its market value to the sum believed to be its market
value. The board must first give notice of intention to raise the valuation to the person in
whose name it is assessed, if the person is a resident of the county. The notice must fix
a time and place for a hearing.

(2) The board shall reduce the valuation of each tract or lot which in its opinion is
returned above its market value to the sum believed to be its market value.

(3) The board shall raise the valuation of each class of personal property which
in its opinion is returned below its market value to the sum believed to be its market
value. It shall raise the aggregate value of the personal property of individuals, firms, or
corporations, when it believes that the aggregate valuation, as returned, is less than the
market value of the taxable personal property possessed by the individuals, firms, or
corporations, to the sum it believes to be the market value. The board must first give notice
to the persons of intention to do so. The notice must set a time and place for a hearing.

(4) The board shall reduce the valuation of each class of personal property that
is returned above its market value to the sum it believes to be its market value. Upon
complaint of a party aggrieved, the board shall reduce the aggregate valuation of the
individual's personal property, or of any class of personal property for which the individual
is assessed, which in its opinion has been assessed at too large a sum, to the sum it believes
was the market value of the individual's personal property of that class.

(5) The board must not reduce the aggregate value of all the property of its county, as
submitted to the county board of equalization, with the additions made by the auditor under
this chapter, by more than one percent of its whole valuation. The board may raise the
aggregate valuation of real property, and of each class of personal property, of the county,
or of any town or district of the county, when it believes it is below the market value of the
property, or class of property, to the aggregate amount it believes to be its market value.

(6) The board shall change the classification of any property which in its opinion
is not properly classified.

(7) The board does not have the authority to grant an exemption or to order property
removed from the tax rolls.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 40.

new text begin [274.135] COUNTY BOARDS; APPEALS AND EQUALIZATION
COURSE AND MEETING REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Handbook for county boards. new text end

new text begin By no later than January 1, 2009, the
commissioner of revenue must develop a handbook detailing procedures, responsibilities,
and requirements for county boards of appeal and equalization. The handbook must
include, but need not be limited to, the role of the county board in the assessment process,
the legal and policy reasons for fair and impartial appeal and equalization hearings, county
board meeting procedures that foster fair and impartial assessment reviews and other best
practices recommendations, quorum requirements for county boards, and explanations
of alternate methods of appeal.
new text end

new text begin Subd. 2. new text end

new text begin Appeals and equalization course. new text end

new text begin Beginning in 2009, and each year
thereafter, there must be at least one member at each meeting of a county board of appeal
and equalization who has attended an appeals and equalization course developed or
approved by the commissioner within the last four years, as certified by the commissioner.
The course may be offered in conjunction with a meeting of the Minnesota Association
of Assessment Officers. The course content must include, but need not be limited to, a
review of the handbook developed by the commissioner under subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Proof of compliance; transfer of duties. new text end

new text begin (a) Any county that
conducts county boards of appeal and equalization meetings must provide proof to the
commissioner by December 1, 2009, and each year thereafter, that it is in compliance
with the requirements of subdivision 2. Beginning in 2009, this notice must also verify
that there was a quorum of voting members at each meeting of the board of appeal and
equalization in the current year. A county that does not comply with these requirements
is deemed to have transferred its board of appeal and equalization powers to the special
board of equalization appointed pursuant to section 274.13, subdivision 2, beginning
with the following year's assessment and continuing unless the powers are reinstated
under paragraph (c). A county that does not comply with the requirements of subdivision
2 and has not appointed a special board of equalization shall appoint a special board of
equalization before the following year's assessment.
new text end

new text begin (b) The county shall notify the taxpayers when the board of appeal and equalization
for a county has been transferred to the special board of equalization under this subdivision
and, prior to the meeting time of the special board of equalization, the county shall make
available to those taxpayers a procedure for a review of the assessments, including, but
not limited to, open book meetings. This alternate review process must take place in
April and May.
new text end

new text begin (c) A county board whose powers are transferred to the special board of equalization
under this subdivision may be reinstated by resolution of the county board and upon proof
of compliance with the requirements of subdivision 2. The resolution and proofs must be
provided to the commissioner by December 1 in order to be effective for the following
year's assessment.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 41.

Minnesota Statutes 2006, section 275.065, subdivision 3, is amended to read:


Subd. 3.

Notice of proposed property taxes.

(a) The county auditor shall prepare
and the county treasurer shall deliver after November 10 and on or before November 24
each year, by first class mail to each taxpayer at the address listed on the county's current
year's assessment roll, a notice of proposed property taxes.new text begin Upon written request by
the taxpayer, the treasurer may send the notice in electronic form or by electronic mail
instead of on paper or by ordinary mail.
new text end

(b) The commissioner of revenue shall prescribe the form of the notice.

(c) The notice must inform taxpayers that it contains the amount of property taxes
each taxing authority proposes to collect for taxes payable the following year. In the case
of a town, or in the case of the state general tax, the final tax amount will be its proposed
tax. In the case of taxing authorities required to hold a public meeting under subdivision 6,
the notice must clearly state that each taxing authority, including regional library districts
established under section 134.201, and including the metropolitan taxing districts as
defined in paragraph (i), but excluding all other special taxing districts and towns, will
hold a public meeting to receive public testimony on the proposed budget and proposed or
final property tax levy, or, in case of a school district, on the current budget and proposed
property tax levy. It must clearly state the time and place of each taxing authority's
meeting, a telephone number for the taxing authority that taxpayers may call if they have
questions related to the notice, and an address where comments will be received by mail.

(d) The notice must state for each parcel:

(1) the market value of the property as determined under section 273.11, and used
for computing property taxes payable in the following year and for taxes payable in the
current year as each appears in the records of the county assessor on November 1 of the
current year; and, in the case of residential property, whether the property is classified as
homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
which the market values apply and that the values are final values;

(2) the items listed below, shown separately by county, city or town, and state general
tax, net of the residential and agricultural homestead credit under section 273.1384, voter
approved school levy, other local school levy, and the sum of the special taxing districts,
and as a total of all taxing authorities:

(i) the actual tax for taxes payable in the current year; and

(ii) the proposed tax amount.

If the county levy under clause (2) includes an amount for a lake improvement
district as defined under sections 103B.501 to 103B.581, the amount attributable for that
purpose must be separately stated from the remaining county levy amount.

In the case of a town or the state general tax, the final tax shall also be its proposed
tax unless the town changes its levy at a special town meeting under section 365.52. If a
school district has certified under section 126C.17, subdivision 9, that a referendum will
be held in the school district at the November general election, the county auditor must
note next to the school district's proposed amount that a referendum is pending and that,
if approved by the voters, the tax amount may be higher than shown on the notice. In
the case of the city of Minneapolis, the levy for the Minneapolis Library Board and the
levy for Minneapolis Park and Recreation shall be listed separately from the remaining
amount of the city's levy. In the case of the city of St. Paul, the levy for the St. Paul
Library Agency must be listed separately from the remaining amount of the city's levy.
In the case of Ramsey County, any amount levied under section 134.07 may be listed
separately from the remaining amount of the county's levy. In the case of a parcel where
tax increment or the fiscal disparities areawide tax under chapter 276A or 473F applies,
the proposed tax levy on the captured value or the proposed tax levy on the tax capacity
subject to the areawide tax must each be stated separately and not included in the sum of
the special taxing districts; and

(3) the increase or decrease between the total taxes payable in the current year and
the total proposed taxes, expressed as a percentage.

For purposes of this section, the amount of the tax on homesteads qualifying under
the senior citizens' property tax deferral program under chapter 290B is the total amount
of property tax before subtraction of the deferred property tax amount.

(e) The notice must clearly state that the proposed or final taxes do not include
the following:

(1) special assessments;

(2) levies approved by the voters after the date the proposed taxes are certified,
including bond referenda and school district levy referenda;

(3) a levy limit increase approved by the voters by the first Tuesday after the first
Monday in November of the levy year as provided under section 275.73;

(4) amounts necessary to pay cleanup or other costs due to a natural disaster
occurring after the date the proposed taxes are certified;

(5) amounts necessary to pay tort judgments against the taxing authority that become
final after the date the proposed taxes are certified; and

(6) the contamination tax imposed on properties which received market value
reductions for contamination.

(f) Except as provided in subdivision 7, failure of the county auditor to prepare or
the county treasurer to deliver the notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the tax levy.

(g) If the notice the taxpayer receives under this section lists the property as
nonhomestead, and satisfactory documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the homestead classification in that
assessment year, the assessor shall reclassify the property to homestead for taxes payable
in the following year.

(h) In the case of class 4 residential property used as a residence for lease or rental
periods of 30 days or more, the taxpayer must either:

(1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
renter, or lessee; or

(2) post a copy of the notice in a conspicuous place on the premises of the property.

The notice must be mailed or posted by the taxpayer by November 27 or within
three days of receipt of the notice, whichever is later. A taxpayer may notify the county
treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
which the notice must be mailed in order to fulfill the requirements of this paragraph.

(i) For purposes of this subdivision, subdivisions 5a and 6, "metropolitan special
taxing districts" means the following taxing districts in the seven-county metropolitan area
that levy a property tax for any of the specified purposes listed below:

(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325,
473.446, 473.521, 473.547, or 473.834;

(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672;
and

(3) Metropolitan Mosquito Control Commission under section 473.711.

For purposes of this section, any levies made by the regional rail authorities in the
county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
398A shall be included with the appropriate county's levy and shall be discussed at that
county's public hearing.

(j) The governing body of a county, city, or school district may, with the consent
of the county board, include supplemental information with the statement of proposed
property taxes about the impact of state aid increases or decreases on property tax
increases or decreases and on the level of services provided in the affected jurisdiction.
This supplemental information may include information for the following year, the current
year, and for as many consecutive preceding years as deemed appropriate by the governing
body of the county, city, or school district. It may include only information regarding:

(1) the impact of inflation as measured by the implicit price deflator for state and
local government purchases;

(2) population growth and decline;

(3) state or federal government action; and

(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.

The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for notices required in 2007 and
thereafter, for taxes payable in 2008 and thereafter.
new text end

Sec. 42.

Minnesota Statutes 2006, section 275.065, subdivision 5a, is amended to read:


Subd. 5a.

Public advertisement.

(a) A city that has a population of more than
2,500, county, a metropolitan special taxing district as defined in subdivision 3, paragraph
(i), a regional library district established under section 134.201, or school district shall
advertise in a newspaper a notice of its intent to adopt a budget and property tax levy or,
in the case of a school district, to review its current budget and proposed property taxes
payable in the following year, at a public hearing, if a public hearing is required under
subdivision 6. The notice must be published not less than two business days nor more
than six business days before the hearing.

The advertisement must be at least one-eighth page in size of a standard-size or a
tabloid-size newspaper. The advertisement must not be placed in the part of the newspaper
where legal notices and classified advertisements appear. The advertisement must be
published in an official newspaper of general circulation in the taxing authority. The
newspaper selected must be one of general interest and readership in the community, and
not one of limited subject matter. The advertisement must appear in a newspaper that is
published at least once per week.

For purposes of this section, the metropolitan special taxing district's advertisement
must only be published in the Minneapolis Star and Tribune and the Saint Paul Pioneer
Press.

In addition to other requirements, a county and a city having a population of
more than 2,500 must show in the public advertisement required under this subdivision
the current local tax rate, the proposed local tax rate if no property tax levy increase
is adopted, and the proposed rate if the proposed levy is adopted. For purposes of this
subdivision, "local tax rate" means the city's or county's net tax capacity levy divided by
the city's or county's taxable net tax capacity.

(b)new text begin Subject to the provisions of paragraph (g),new text end the advertisement for school districts,
metropolitan special taxing districts, and regional library districts must be in the following
form, except that the notice for a school district may include references to the current
budget in regard to proposed property taxes.

"NOTICE OF

PROPOSED PROPERTY TAXES

(School District/Metropolitan

Special Taxing District/Regional

Library District) of .........

The governing body of ........ will soon hold budget hearings and vote on the property
taxes for (metropolitan special taxing district/regional library district services that will be
provided in (year)/school district services that will be provided in (year) and (year)).

NOTICE OF PUBLIC HEARING:

All concerned citizens are invited to attend a public hearing and express their opinions
on the proposed (school district/metropolitan special taxing district/regional library
district) budget and property taxes, or in the case of a school district, its current budget
and proposed property taxes, payable in the following year. The hearing will be held on
(Month/Day/Year) at (Time) at (Location, Address)."

(c)new text begin Subject to the provisions of paragraph (g),new text end the advertisement for cities and
counties must be in the following form.

"NOTICE OF PROPOSED

TOTAL BUDGET AND PROPERTY TAXES

The (city/county) governing body or board of commissioners will hold a public hearing to
discuss the budget and to vote on the amount of property taxes to collect for services the
(city/county) will provide in (year).

SPENDING: The total budget amounts below compare (city's/county's) (year) total actual
budget with the amount the (city/county) proposes to spend in (year).

(Year) Total Actual
Budget
Proposed (Year)
Budget
Change from
(Year)-(Year)
$...........
$...........
.....%

TAXES: The property tax amounts below compare that portion of the current budget
levied in property taxes in (city/county) for (year) with the property taxes the (city/county)
proposes to collect in (year).

(Year) Property
Taxes
Proposed (Year)
Property Taxes
Change from
(Year)-(Year)
$...........
$...........
.....%

LOCAL TAX RATE COMPARISON: The current local tax rate, the local tax rate if no tax
levy increase is adopted, and the proposed local tax rate if the proposed levy is adopted.

(Year) Tax Rate
(Year) Tax Rate if NO
Levy Increase
(Year) Proposed
Tax Rate
...........
...........
.....

ATTEND THE PUBLIC HEARING

All (city/county) residents are invited to attend the public hearing of the (city/county) to
express your opinions on the budget and the proposed amount of (year) property taxes.
The hearing will be held on:

(Month/Day/Year/Time)

(Location/Address)

If the discussion of the budget cannot be completed, a time and place for continuing the
discussion will be announced at the hearing. You are also invited to send your written
comments to:

(City/County)

(Location/Address)"

(d) For purposes of this subdivision, the budget amounts listed on the advertisement
mean:

(1) for cities, the total government fund expenditures, as defined by the state auditor
under section 471.6965, less any expenditures for improvements or services that are
specially assessed or charged under chapter 429, 430, 435, or the provisions of any other
law or charter; and

(2) for counties, the total government fund expenditures, as defined by the state
auditor under section 375.169, less any expenditures for direct payments to recipients or
providers for the human service aids listed below:

(i) Minnesota family investment program under chapters 256J and 256K;

(ii) medical assistance under sections 256B.041, subdivision 5, and 256B.19,
subdivision 1
;

(iii) general assistance medical care under section 256D.03, subdivision 6;

(iv) general assistance under section 256D.03, subdivision 2;

(v) emergency assistance under section 256J.48;

(vi) Minnesota supplemental aid under section 256D.36, subdivision 1;

(vii) preadmission screening under section 256B.0911, and alternative care grants
under section 256B.0913;

(viii) general assistance medical care claims processing, medical transportation and
related costs under section 256D.03, subdivision 4;

(ix) medical transportation and related costs under section 256B.0625, subdivisions
17 to 18a
;

(x) group residential housing under section 256I.05, subdivision 8, transferred from
programs in clauses (iv) and (vi); or

(xi) any successor programs to those listed in clauses (i) to (x).

(e) A city with a population of over 500 but not more than 2,500 that is required to
hold a public hearing under subdivision 6 must advertise by posted notice as defined in
section 645.12, subdivision 1. The advertisement must be posted at the time provided in
paragraph (a). It must be in the form required in paragraph (b).

(f) For purposes of this subdivision, the population of a city is the most recent
population as determined by the state demographer under section 4A.02.

(g) The commissioner of revenuedeleted text begin, subject to the approval of the chairs of the house
and senate tax committees,
deleted text end shall new text beginannually new text endprescribe thenew text begin specificnew text end form and format of the
advertisements required under this subdivisionnew text begin, including such details as font size and
style, and spacing for the required items. The commissioner may prescribe alternate and
additional language for the advertisement for a taxing authority or for groups of taxing
authorities. At least two weeks before November 29 each year, the commissioner shall
provide a copy of the prescribed advertisements to the chairs of the committees of the
house of representatives and the senate with jurisdiction over taxes
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for advertisements in 2007 and
thereafter, for proposed taxes payable in 2008 and thereafter.
new text end

Sec. 43.

Minnesota Statutes 2006, section 275.067, is amended to read:


275.067 SPECIAL TAXING DISTRICTS; ORGANIZATION DATE;
CERTIFICATION OF LEVY OR SPECIAL ASSESSMENTS.

Special taxing districts as defined in section 275.066 organized on or before July 1 in
deleted text begin adeleted text end new text beginthe current new text endcalendar year deleted text beginmaydeleted text endnew text begin, and special taxing districts organized in a prior year that
have not previously certified a levy to the county auditor, are allowed to
new text endcertify a levy to
the county auditor in deleted text beginthat samedeleted text end new text beginthe current new text endyear for property taxes or special assessments
to be payable in the following calendar year to the extent that the special taxing district is
authorized by statute or special act to levy taxes or special assessmentsnew text begin, but only if the
county auditor receives written notice from the district on or before July 1 of the current
year that the district may be certifying a levy in the current year, and the notice includes a
complete list or other description of the tax parcels in the district and a map showing the
boundaries of the district
new text end. Special taxing districts organized after July 1 in a calendar year
may not certify a levy of property taxes or special assessments to the county auditor under
the powers granted to them by statute or special act new text beginand subject to the requirements of
this section
new text enduntil the following calendar year.new text begin All special taxing districts must notify the
county auditor by July 1 in order for its boundaries for the levy to be certified that year
to be different than its boundaries for levies certified in prior years, and the notice must
include a complete list or other description of the tax parcels within the new boundaries
and a map showing the new boundaries of the district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008 and
thereafter.
new text end

Sec. 44.

Minnesota Statutes 2006, section 276.04, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Electronic tax statements. new text end

new text begin Upon written request by the owner of real
property located in the county, or by the owner's agent, a county may send tax statements
by electronic means instead of by mailing. For the purposes of the payment deadlines
specified in section 279.01, the postmark date on the envelope containing these property
tax statements is the date the statements were sent by electronic means.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax statements for taxes payable
in 2008 and thereafter.
new text end

Sec. 45.

Minnesota Statutes 2006, section 277.01, subdivision 2, is amended to read:


Subd. 2.

Partial payments.

The county treasurer may accept payments of more or
less than the exact amount of a tax installment due. new text beginPayments must be applied first to the
oldest installment that is due but which has not been fully paid.
new text endIf the accepted payment is
less than the amount due, deleted text beginpayments must bedeleted text end new text beginthe payment is new text endapplied first to the penalty
accrued for the year deleted text beginthe payment is madedeleted text endnew text begin or the installment being paidnew text end. Acceptance of
partial payment of tax does not constitute a waiver of the minimum payment required as a
condition for filing an appeal under section 278.03 or any other law, nor does it affect the
order of payment of delinquent taxes under section 280.39.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for payments made on or after the
day following final enactment.
new text end

Sec. 46.

Minnesota Statutes 2006, section 279.01, subdivision 1, is amended to read:


Subdivision 1.

Due dates; penalties.

Except as provided in subdivision 3 or 4, on
May 16 or 21 days after the postmark date on the envelope containing the property tax
statement, whichever is later, a penalty deleted text beginshall accruedeleted text end new text beginaccrues new text endand thereafter deleted text beginbedeleted text end new text beginis new text endcharged
upon all unpaid taxes on real estate on the current lists in the hands of the county treasurer.
The penalty deleted text beginshall bedeleted text end new text beginis new text endat a rate of two percent on homestead property until May 31 and
four percent on June 1. The penalty on nonhomestead property deleted text beginshall bedeleted text end new text beginis new text endat a rate of four
percent until May 31 and eight percent on June 1. This penalty deleted text beginshalldeleted text end new text begindoes new text endnot accrue until
June 1 of each year, or 21 days after the postmark date on the envelope containing the
property tax statements, whichever is later, on commercial use real property used for
seasonal residential recreational purposes and classified as class 1c or 4c, and on other
commercial use real property classified as class 3a, provided that over 60 percent of the
gross income earned by the enterprise on the class 3a property is earned during the months
of May, June, July, and August. deleted text beginAny property owner of such class 3a property who paysdeleted text end
new text begin In order for new text endthe first half of the tax due on deleted text beginthedeleted text end new text beginclass 3a new text endproperty new text beginto be paid new text endafter May 15
and before June 1, or 21 days after the postmark date on the envelope containing the
property tax statement, whichever is later, deleted text beginshalldeleted text end new text beginwithout penalty, the owner of the property
must
new text endattach an affidavit to the payment attesting to compliance with the income provision
of this subdivision. Thereafter, for both homestead and nonhomestead property, on the
first day of each month beginning July 1, up to and including October 1 following, an
additional penalty of one percent for each month deleted text beginshall accruedeleted text end new text beginaccrues new text endand deleted text beginbedeleted text end new text beginis new text endcharged on
all such unpaid taxes provided that if the due date was extended beyond May 15 as the
result of any delay in mailing property tax statements no additional penalty shall accrue
if the tax is paid by the extended due date. If the tax is not paid by the extended due
date, then all penalties that would have accrued if the due date had been May 15 shall be
charged. When the taxes against any tract or lot exceed $50, one-half thereof may be paid
prior to May 16 or 21 days after the postmark date on the envelope containing the property
tax statement, whichever is later; and, if so paid, no penalty deleted text beginshall attachdeleted text endnew text begin attachesnew text end; the
remaining one-half deleted text beginshalldeleted text end new text beginmay new text endbe paid at any time prior to October 16 following, without
penalty; but, if not so paid, then a penalty of two percent deleted text beginshall accruedeleted text end new text beginaccrues new text endthereon for
homestead property and a penalty of four percent on nonhomestead property. Thereafter,
for homestead property, on the first day of November an additional penalty of four percent
deleted text begin shall accruedeleted text end new text beginaccrues new text endand on the first day of December following, an additional penalty of
two percent deleted text beginshall accruedeleted text end new text beginaccrues new text endand deleted text beginbedeleted text end new text beginis new text endcharged on all such unpaid taxes. Thereafter,
for nonhomestead property, on the first day of November and December following, an
additional penalty of four percent for each month deleted text beginshall accruedeleted text end new text beginaccrues new text endand deleted text beginbedeleted text end new text beginis new text endcharged
on all such unpaid taxes. If one-half of such taxes deleted text beginshalldeleted text end new text beginare new text endnot deleted text beginbedeleted text end paid prior to May 16 or
21 days after the postmark date on the envelope containing the property tax statement,
whichever is later, the same may be paid at any time prior to October 16, with accrued
penalties to the date of payment added, and thereupon no penalty deleted text beginshall attachdeleted text end new text beginattaches new text endto
the remaining one-half until October 16 following.

This section applies to payment of personal property taxes assessed against
improvements to leased property, except as provided by section 277.01, subdivision 3.

A county may provide by resolution that in the case of a property owner that has
multiple tracts or parcels with aggregate taxes exceeding $50, payments may be made in
installments as provided in this subdivision.

The county treasurer may accept payments of more or less than the exact amount of
a tax installment due. new text beginPayments must be applied first to the oldest installment that is due
but which has not been fully paid.
new text endIf the accepted payment is less than the amount due,
payments must be applied first to the penalty accrued for the year deleted text beginthe payment is madedeleted text endnew text begin
or the installment being paid
new text end. Acceptance of partial payment of tax does not constitute
a waiver of the minimum payment required as a condition for filing an appeal under
section 278.03 or any other law, nor does it affect the order of payment of delinquent
taxes under section 280.39.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for payments made on or after the
day following final enactment.
new text end

Sec. 47.

Minnesota Statutes 2006, section 290C.02, subdivision 3, is amended to read:


Subd. 3.

Claimant.

(a) "Claimant" meansnew text begin:new text end

new text begin (1) new text enda person, as that term is defined in section 290.01, subdivision 2, who owns
forest land in Minnesota and files an application authorized by the Sustainable Forest
Incentive Actdeleted text begin. Claimant includesdeleted text endnew text begin;
new text end

new text begin (2)new text end a purchaser or grantee if property enrolled in the program was sold or transferred
after the original application was filed and prior to the annual incentive payment being
madedeleted text begin.deleted text endnew text begin; or
new text end

new text begin (3) an owner of land previously covered by an auxiliary forest contract that
automatically qualifies for inclusion in the Sustainable Forest Incentive Act program
pursuant to section 88.49, subdivision 9a, or 88.491, subdivision 2.
new text end

The purchaser or grantee must notify the commissioner in writing of the sale or
transfer of the property. new text beginOwners of land that qualifies for inclusion pursuant to section
88.49, subdivision 9a, or 88.491, subdivision 2, must notify the commissioner in writing
of the expiration of the auxiliary forest contract or land trade with a governmental unit and
submit an application to the commissioner by August 15 in order to be eligible to receive a
payment by October 1 of that same year.
new text endFor purposes of section 290C.11, claimant also
includes any person bound by the covenant required in section 290C.04.

(b) No more than one claimant is entitled to a payment under this chapter with
respect to any tract, parcel, or piece of land enrolled under this chapter that has been
assigned the same parcel identification number. When enrolled forest land is owned by
two or more persons, the owners must determine between them which person is eligible to
claim the payments provided under sections 290C.01 to 290C.11. In the case of property
sold or transferred, the former owner and the purchaser or grantee must determine between
them which person is eligible to claim the payments provided under sections 290C.01 to
290C.11. The owners, transferees, or grantees must notify the commissioner in writing
which person is eligible to claim the payments.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 48.

Minnesota Statutes 2006, section 290C.04, is amended to read:


290C.04 APPLICATIONS.

(a) A landowner may apply to enroll forest land for the sustainable forest incentive
program under this chapter. The claimant must complete, sign, and submit an application
to the commissioner by September 30 in order for the land to become eligible beginning
in the next year. The application shall be on a form prescribed by the commissioner and
must include the information the commissioner deems necessary. At a minimum, the
application must show the following information for the land and the claimant: (i) the
claimant's Social Security number or state or federal business tax registration number and
date of birth, (ii) the claimant's address, (iii) the claimant's signature, (iv) the county's
parcel identification numbers for the tax parcels that completely contain the claimant's
forest land that is sought to be enrolled, (v) the number of acres eligible for enrollment
in the program, (vi) the approved plan writer's signature and identification number, and
(vii) proof, in a form specified by the commissioner, that the claimant has executed and
acknowledged in the manner required by law for a deed, and recorded, a covenant that the
land is not and shall not be developed in a manner inconsistent with the requirements and
conditions of this chapter. The covenant shall state in writing that the covenant is binding
on the claimant and the claimant's successor or assignee, and that it runs with the land
for a period of not less than eight years. The commissioner shall specify the form of the
covenant and provide copies upon request. The covenant must include a legal description
that encompasses all the forest land that the claimant wishes to enroll under this section or
the certificate of title number for that land if it is registered land.

(b) In all cases, the commissioner shall notify the claimant within 90 days after
receipt of a completed application that either the land has or has not been approved for
enrollment. A claimant whose application is denied may appeal the denial as provided in
section deleted text begin290C.11, paragraph (a)deleted text endnew text begin 290C.13new text end.

(c) Within 90 days after the denial of an application, or within 90 days after the
final resolution of any appeal related to the denial, the commissioner shall execute and
acknowledge a document releasing the land from the covenant required under this chapter.
The document must be mailed to the claimant and is entitled to be recorded.

(d) The Social Security numbers collected from individuals under this section are
private data as provided in section 13.355. The federal business tax registration number
and date of birth data collected under this section are also private data on individuals or
nonpublic data, as defined in section 13.02, subdivisions 9 and 12, but may be shared
with county assessors for purposes of tax administration and with county treasurers for
purposes of the revenue recapture under chapter 270A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 49.

Minnesota Statutes 2006, section 290C.05, is amended to read:


290C.05 ANNUAL CERTIFICATION.

On or before July 1 of each year, beginning with the year after the new text beginoriginal new text endclaimant
has received an approved application, the commissioner shall send each claimant enrolled
under the sustainable forest incentive program a certification form. new text beginFor purposes of this
section, the original claimant is the person that filed the first application under section
290C.04 to enroll the land in the program.
new text endThe claimant must sign the certification,
attesting that the requirements and conditions for continued enrollment in the program are
currently being met, and must return the signed certification form to the commissioner by
August 15 of that same year. If the claimant does not return an annual certification form
by the due date, the provisions in section 290C.11 apply.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 50.

Minnesota Statutes 2006, section 290C.11, is amended to read:


290C.11 PENALTIES FOR REMOVAL.

(a) If the commissioner determines that land enrolled in the sustainable forest
incentive program is in violation of the conditions for enrollment as specified in section
290C.03, the commissioner shall notify the claimant of the intent to remove all enrolled
land from the sustainable forest incentive program. The claimant has 60 days to appeal
this determinationnew text begin under the provisions of section 290C.13new text end. deleted text beginThe appeal must be made
in writing to the commissioner, who shall, within 60 days, notify the claimant as to the
outcome of the appeal. Within 60 days after the commissioner denies an appeal, or within
120 days after the commissioner received a written appeal if the commissioner has not
made a determination in that time, the owner may appeal to Tax Court under chapter 271
as if the appeal is from an order of the commissioner.
deleted text end

(b) If the commissioner determines the land is to be removed from the sustainable
forest incentive program, the claimant is liable for payment to the commissioner in the
amount equal to the payments received under this chapter for the previous four-year
period, plus interest. The claimant has 90 days to satisfy the payment for removal of land
from the sustainable forest incentive program under this section. If the penalty is not paid
within the 90-day period under this paragraph, the commissioner shall certify the amount
to the county auditor for collection as a part of the general ad valorem real property taxes
on the land in the following taxes payable year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 51.

new text begin [290C.13] APPEALS.
new text end

new text begin Subdivision 1. new text end

new text begin Claimant right to reconsideration. new text end

new text begin A claimant may obtain
reconsideration by the commissioner of a determination removing enrolled land from the
sustainable forest incentive program, a determination denying an application to enroll land
in the program, or a denial of part or all of an incentive payment by filing an administrative
appeal under subdivision 4. A claimant cannot obtain reconsideration under this section if
the action taken by the commissioner is the outcome of an administrative appeal.
new text end

new text begin Subd. 2. new text end

new text begin Appeal by claimant. new text end

new text begin A claimant who wishes to seek administrative review
must follow the procedures in subdivision 4.
new text end

new text begin Subd. 3. new text end

new text begin Notice date. new text end

new text begin For purposes of this section, the term "notice date" means
the date of the determination removing enrolled land or the date of the notice denying an
application to enroll land or denying part or all of an incentive payment.
new text end

new text begin Subd. 4. new text end

new text begin Time and content for administrative appeal. new text end

new text begin Within 60 days after the
notice date, the claimant must file a written appeal with the commissioner. The appeal
need not be in any particular form but must contain the following information:
new text end

new text begin (1) name and address of the claimant;
new text end

new text begin (2) if a corporation, the state of incorporation of the claimant, and the principal
place of business of the corporation;
new text end

new text begin (3) the Minnesota or federal business identification number or Social Security
number of the claimant;
new text end

new text begin (4) the date;
new text end

new text begin (5) the periods involved and the amount of payment involved for each year or period;
new text end

new text begin (6) the findings in the notice that the claimant disputes;
new text end

new text begin (7) a summary statement that the claimant relies on for each exception; and
new text end

new text begin (8) the claimant's signature or signature of the claimant's duly authorized agent.
new text end

new text begin Subd. 5. new text end

new text begin Extensions. new text end

new text begin When requested in writing and within the time allowed for
filing an administrative appeal, the commissioner may extend the time for filing an appeal
for a period not more than 30 days from the expiration of the 60 days from the notice date.
new text end

new text begin Subd. 6. new text end

new text begin Determination of appeal. new text end

new text begin On the basis of applicable law and available
information, the commissioner shall determine the validity, if any, in whole or in part,
of the appeal and notify the claimant of the decision. This notice must be in writing
and contain the basis for the determination.
new text end

new text begin Subd. 7. new text end

new text begin Agreement determining issues under appeal. new text end

new text begin When it appears to be in
the best interests of the state, the commissioner may settle the amount of any incentive
payments, payments owed by the claimant under section 290C.11, paragraph (b), penalties,
or interest that the commissioner has under consideration by virtue of an appeal filed
under this section. An agreement must be in writing and signed by the commissioner and
the claimant, or the claimant's representative authorized by the claimant to enter into an
agreement. The agreement is final and conclusive and, except upon a showing of fraud or
malfeasance, or misrepresentation of a material fact, the case must not be reopened as to
the matters agreed upon.
new text end

new text begin Subd. 8. new text end

new text begin Appeal to Tax Court. new text end

new text begin Within 60 days after the commissioner denies
an appeal, or within 120 days after the commissioner received a written appeal if the
commissioner has not made a determination in that time, the claimant may appeal to Tax
Court under chapter 271 as if the appeal is from an order of the commissioner.
new text end

new text begin Subd. 9. new text end

new text begin Exemption from Administrative Procedure Act. new text end

new text begin This section is not
subject to chapter 14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 52. new text beginREPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2006, section 270.073, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2006, sections 270.41, subdivision 4; 270.43; 270.51; 270.52;
and 270.53,
new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) of this section is effective beginning January 2,
2007, for taxes payable in 2008 and thereafter. Paragraph (b) of this section is effective
the day following final enactment.
new text end

ARTICLE 13

DEPARTMENT SPECIAL TAXES

Section 1.

Minnesota Statutes 2006, section 62I.06, subdivision 6, is amended to read:


Subd. 6.

deleted text beginDeficitsdeleted text endnew text begin Deficit assessmentsnew text end.

The association shall certify to the
commissioner the estimated amount of any deficit remaining after the stabilization reserve
fund has been exhausted and payment of the maximum final premium for all policyholders
of the association. Within 60 days after the certification, the commissioner shall authorize
the association to recover the members' respective shares of the deficit by assessing
all members an amount sufficient to fully fund the obligations of the association. The
assessment of each member shall be determined in the manner provided in section 62I.07.
An assessment made pursuant to this section shall be deductible by the member from deleted text beginpast
or future
deleted text end premium taxes due the statenew text begin as provided in section 297I.20, subdivision 2new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax returns due on or after January
1, 2008.
new text end

Sec. 2.

Minnesota Statutes 2006, section 71A.04, subdivision 1, is amended to read:


Subdivision 1.

Premium tax.

The attorney-in-factdeleted text begin, in lieu of all taxes, state, county,
and municipal,
deleted text end shall file with the commissioner of revenue all returns and pay to the
commissioner of revenue all amounts required under chapter 297I.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2006, section 287.22, is amended to read:


287.22 EXEMPTIONS.

The tax imposed by section 287.21 does not apply to:

(1) An executory contract for the sale of real property under which the purchaser is
entitled to or does take possession of the real property, or any assignment or cancellation
of the contract;

(2) A mortgage or an amendment, assignment, extension, partial release, or
satisfaction of a mortgage;

(3) A will;

(4) A plat;

(5) A lease, amendment of lease, assignment of lease, or memorandum of lease;

(6) A deed, instrument, or writing in which the United States or any agency or
instrumentality thereof is the grantor, assignor, transferor, conveyor, grantee, or assignee;

(7) A deed for a cemetery lot or lots;

(8) A deed of distribution by a personal representative;

(9) A deed to or from a co-owner partitioning their undivided interest in the same
piece of real property;

(10) A deed or other instrument of conveyance issued pursuant to a permanent
school fund land exchange under section 92.121 and related laws;

(11) A referee's or sheriff's certificate of sale in a mortgage or lien foreclosure sale;

(12) A referee's, sheriff's, or certificate holder's certificate of redemption from a
mortgage or lien foreclosure sale issued deleted text beginto the redeeming mortgagor or lieneedeleted text endnew text begin pursuant to
section 580.23 or other statute applicable to redemption by an owner of real property
new text end;

(13) A deed, instrument, or writing which grants, creates, modifies, or terminates an
easement; and

(14) A decree of marriage dissolution, as defined in section 287.01, subdivision 4,
or a deed or other instrument between the parties to the dissolution made pursuant to
the terms of the decree.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2006, section 287.2205, is amended to read:


287.2205 TAX-FORFEITED LAND.

Before a state deed for tax-forfeited land may be issued, the deed tax must be paid
by the purchaser of tax-forfeited land whether the purchase is the result of a public
auction or private sale or a repurchase of tax-forfeited land. State agencies and local
units of government that acquire tax-forfeited land by purchase or any other means are
subject to this section.new text begin The deed tax is $1.65 for a conveyance of tax-forfeited lands to a
governmental subdivision for an authorized public use under section 282.01, subdivision
1a, or for redevelopment purposes under section 282.01, subdivision 1b.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2006, section 295.52, subdivision 4, is amended to read:


Subd. 4.

Use tax; prescription drugs.

(a) A person that receives prescription drugs
for resale or use in Minnesota, other than from a wholesale drug distributor that is subject
to tax under subdivision 3, is subject to a tax equal to the price paid to the wholesale drug
distributor multiplied by the tax percentage specified in this section. Liability for the tax is
incurred when prescription drugs are received or delivered in Minnesota by the person.

deleted text begin (b) A person that receives prescription drugs for use in Minnesota from a nonresident
pharmacy required to be registered under section is subject to a tax equal to
the price paid by the nonresident pharmacy to the wholesale drug distributor or the
price received by the nonresident pharmacy, whichever is lower, multiplied by the tax
percentage specified in this section. Liability for the tax is incurred when prescription
drugs are received in Minnesota by the person.
deleted text end

deleted text begin (c)deleted text endnew text begin (b)new text end A tax imposed under this subdivision does not apply to purchases by an
individual for personal consumption.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2006, section 295.52, subdivision 4a, is amended to read:


Subd. 4a.

Tax collection.

A wholesale drug distributor with nexus in Minnesota,
who is not subject to tax under subdivision 3, on all or a particular transaction deleted text beginor a
nonresident pharmacy with nexus in Minnesota,
deleted text end is required to collect the tax imposed
under subdivision 4, from the purchaser of the drugs and give the purchaser a receipt
for the tax paid. The tax collected shall be remitted to the commissioner in the manner
prescribed by section 295.55, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2006, section 295.54, subdivision 2, is amended to read:


Subd. 2.

Pharmacy refund.

A pharmacy may claim an annual refund against the
total amount of tax, if any, the pharmacy owes during that calendar year under section
295.52, subdivision 2. The refund shall equal the amount paid by the pharmacy to a
wholesale drug distributor subject to tax under section 295.52, subdivision 3, for legend
drugs delivered by the pharmacy outside of Minnesota, multiplied by the tax percentage
specified in section 295.52. If the amount of the refund exceeds the tax liability of the
pharmacy under section 295.52, subdivision deleted text begin1bdeleted text endnew text begin 2new text end, the commissioner shall provide the
pharmacy with a refund equal to the excess amount. Each qualifying pharmacy must apply
for the refund on the annual return as provided under section 295.55, subdivision 5. The
refund must be claimed within one year of the due date of the return. Interest on refunds
paid under this subdivision will begin to accrue 60 days after the date a claim for refund is
filed. For purposes of this subdivision, the date a claim is filed is the due date of the return
or the date of the actual claim for refund, whichever is later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2006, section 297F.06, subdivision 4, is amended to read:


Subd. 4.

Tobacco products use tax.

The tobacco products use tax does not apply to
the possession, use, or storage of tobacco products deleted text beginthatdeleted text end new text beginif (1) the tobacco products new text endhave an
aggregate cost in any calendar month to the consumer of deleted text begin$100deleted text endnew text begin $50new text end or lessnew text begin, and (2) the
tobacco products were carried into this state by that consumer
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the possession, use, or storage of
tobacco products on or after July 1, 2007.
new text end

Sec. 9.

Minnesota Statutes 2006, section 297F.25, is amended by adding a subdivision
to read:


new text begin Subd. 3a. new text end

new text begin Consumer use tax; use tax return; cigarette consumer. new text end

new text begin (a) On or before
the 18th day of each calendar month, a consumer who, during the preceding calendar
month, has acquired title to or possession of cigarettes for use or storage in this state, upon
which the sales tax imposed by this section has not been paid, shall file a return with the
commissioner showing the quantity of cigarettes so acquired or possessed. The return
must be made in the form and manner prescribed by the commissioner, and must contain
any other information required by the commissioner. The return must be accompanied by
a remittance for the full unpaid sales tax liability shown by it.
new text end

new text begin (b) The tax imposed under paragraph (a) does not apply if (1) the consumer has
acquired title to or possession of cigarettes for use or storage in this state in quantities
of 200 or fewer in the month, and (2) the cigarettes were carried into this state by that
consumer.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for cigarettes which a consumer has
acquired title to or possession of on or after July 1, 2007.
new text end

Sec. 10.

Minnesota Statutes 2006, section 297I.06, subdivision 1, is amended to read:


Subdivision 1.

Insurance policies surcharge.

(a) Except as otherwise provided in
subdivision 2, each new text beginlicensednew text end insurer engaged in writing policies of homeowner's insurance
authorized in section 60A.06, subdivision 1, clause (1)(c), or commercial fire policies or
commercial nonliability policies shall collect a surcharge equal to 0.65 percent of the
gross premiums and assessments, less return premiums, on direct business received by
the company, or by its agents for it, for homeowner's insurance policies, commercial fire
policies, and commercial nonliability insurance policies in this state.

(b) The surcharge amount collected under paragraph (a)new text begin or subdivision 2, paragraph
(b),
new text end may not be considered premium for any other purpose. The surcharge amount
new text begin under paragraph (a)new text end must be separately stated on either a billing or policy declaration new text beginor
document containing similar information
new text end sent to an insured.

(c) Amounts collected by the commissioner under this section must be deposited in
the fire safety account established pursuant to subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007, and applies to policies
written or renewed on or after July 1, 2007.
new text end

Sec. 11.

Minnesota Statutes 2006, section 297I.06, subdivision 2, is amended to read:


Subd. 2.

Exemptions.

(a) This section does not apply to a farmers' mutual fire
insurance company or township mutual fire insurance company in Minnesota organized
under chapter 67A.

(b) An insurer described in section 297I.05, subdivisions 3 and 4, authorized to
transact business in Minnesota shall elect to remit to the Department of Revenue for
deposit in the fire safety account either (1) the surcharge amount deleted text begincollecteddeleted text endnew text begin imposednew text end under
deleted text begin this sectiondeleted text endnew text begin subdivision 1 on all premiums subject to that surchargenew text end, or (2) a surcharge of
one-half of one percent on the gross fire premiums and assessments, less return premiums,
on all direct business received by the insurer or agents of the insurer in Minnesota, in
cash or otherwise, during the year.

new text begin (c) The election must be made prior to July 1, 2007, for policies written or renewed
between July 1, 2007, and December 31, 2007, and by December 31 of each year for
insurance for policies written or renewed in the succeeding calendar year. An insurer
who elects to remit the one-half of one percent surcharge on gross fire premiums and
assessments must not charge the insured the surcharge imposed under subdivision 1.
new text end

deleted text begin (c)deleted text end new text begin(d) new text endFor purposes of this subdivision, "gross fire premiums and assessments"
includes premiums on policies covering fire risks only on automobiles, whether written or
under floater form or otherwise.

new text begin EFFECTIVE DATE. new text end

new text begin The requirement for certain insurers to make an election
before July 1, 2007, is effective the day following final enactment. The rest of this section
is effective July 1, 2007, and applies to insurance policies written or renewed on or after
that date.
new text end

Sec. 12.

Minnesota Statutes 2006, section 297I.20, subdivision 2, is amended to read:


Subd. 2.

Joint Underwriting Association offset.

Annew text begin insurance company may offset
against its premium tax liability to this state any amount paid for an
new text end assessment made
pursuant to section 62I.06, subdivision 6deleted text begin, shall be deductible by the member from past
or future premium taxes due the state
deleted text end.new text begin The offset against premium tax liability must be
claimed beginning with the taxable year that the assessment is paid. To the extent that the
allowable offset exceeds the tax liability, the remaining offset must be carried forward to
succeeding taxable years until the entire offset has been credited against the insurance
company's liability for premium tax under this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax returns due on or after January
1, 2008.
new text end

Sec. 13.

Minnesota Statutes 2006, section 297I.40, subdivision 5, is amended to read:


Subd. 5.

Definition of tax.

The term "tax" as used in this section means the tax
imposed by section 297I.05, subdivisions 1 to 6,new text begin 11,new text end and 12, paragraphs (a), clauses (1)
to (5), (b), and deleted text begin(e)deleted text endnew text begin (d)new text end, deleted text beginwithout regard to the retaliatory provisions of section 297I.05,
subdivision 11
, and the
deleted text endnew text begin less anynew text end offset in section 297I.20.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax returns due on or after January
1, 2008.
new text end

ARTICLE 14

MISCELLANEOUS

Section 1.

Minnesota Statutes 2006, section 16A.152, subdivision 1b, is amended to
read:


Subd. 1b.

Budget reserve increase.

On July 1, 2003, the commissioner of finance
shall transfer $300,000,000 to the budget reserve account in the general fund. On July
1, 2004, the commissioner of finance shall transfer $296,000,000 to the budget reserve
account in the general fund. new text beginOn July 1, 2007, the commissioner of finance shall transfer
$30,000,000 to the budget reserve account in the general fund.
new text endThe amounts necessary
for this purpose are appropriated from the general fund.

Sec. 2.

Minnesota Statutes 2006, section 16A.152, subdivision 2, is amended to read:


Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general
fund revenues and expenditures, the commissioner of finance determines that there will
be a positive unrestricted budgetary general fund balance at the close of the new text begincurrent
new text endbiennium, the commissioner of finance must allocate money to the following accounts and
purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;

(2) the budget reserve account established in subdivision 1a until that account
reaches deleted text begin$653,000,000deleted text endnew text begin $683,000,000new text end;new text begin and
new text end

(3) deleted text beginthe amount necessary to increase the aid payment schedule for school district
aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
nearest tenth of a percent without exceeding the amount available and with any remaining
funds deposited in the budget reserve; and
deleted text endnew text begin the tax volatility reduction account until that
account reaches the amount designated for transfer in the current biennium as provided
in subdivision 8, paragraph (c).
new text end

deleted text begin (4) the amount necessary to restore all or a portion of the net aid reductions under
section and to reduce the property tax revenue recognition shift under section
deleted text begin123B.75, subdivision 5deleted text end, paragraph (c), and Laws 2003, First Special Session chapter 9,
article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, section
20, by the same amount.
deleted text end

(b) new text beginIf on the basis of a forecast of general fund revenues and expenditures, the
commissioner of finance determines that there will be a positive unrestricted budgetary
general fund balance at the close of the next biennium, the commissioner of finance must
allocate money to the tax volatility reduction account until that account reaches the amount
designated for transfer in the next biennium as provided in subdivision 8, paragraph (f).
new text end

new text begin (c) new text endThe amounts necessary to meet the requirements of deleted text beginthis sectiondeleted text end new text beginparagraph (a)
new text endare appropriated from the general fund within two weeks after the forecast is released
deleted text begin or, in the case of transfers under paragraph (a), clauses (3) and (4), as necessary to meet
the appropriations schedules otherwise established in statute
deleted text end.new text begin The amount necessary to
meet the requirements of paragraph (b) are transferred from the general fund on the first
day of the next biennium.
new text end

deleted text begin (c)deleted text end new text begin(d) new text endTo the extent that a positive unrestricted budgetary general fund balance is
projected, appropriations under this section must be made before section 16A.1522 takes
effect.

deleted text begin (d) The commissioner of finance shall certify the total dollar amount of the
reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. The
commissioner of education shall increase the aid payment percentage and reduce the
property tax shift percentage by these amounts and apply those reductions to the current
fiscal year and thereafter.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2006, section 16A.152, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Tax volatility reduction account. new text end

new text begin (a) A tax volatility reduction account is
created in the general fund.
new text end

new text begin (b) Beginning with the November 2007 economic forecast and for each subsequent
economic forecast, the commissioner of finance, in consultation with the commissioner of
revenue, shall estimate the revenue gain or loss anticipated for the current biennium and
the next biennium, as a result of changes in taxpayer behavior in anticipation of (1) the
sunset of favorable federal income tax rates for capital gains income under Public Law
108-27; (2) the extension of the sunset referenced in (1); or (3) any other federal law that
changes federal income tax rates for capital gains income.
new text end

new text begin (c) If the commissioner estimates a revenue gain under paragraph (b) for the current
biennium, and if the amount of gain estimated for the current biennium is more than the
amount forecast to be in the tax volatility reduction account at the close of the current
biennium, then the difference is designated for transfer to the tax volatility reduction
account.
new text end

new text begin (d) If the commissioner estimates a revenue gain under paragraph (b) for the current
biennium, and if the amount of gain estimated for the current biennium is less than the
amount forecast to be in the tax volatility reduction account at the close of the current
biennium, then the difference is transferred from the tax volatility reduction account
to the general fund.
new text end

new text begin (e) If the commissioner estimates a revenue loss under paragraph (b) in the current
biennium, then the amount adequate to offset the loss, to the extent it is available, is
transferred from the tax volatility reduction account to the general fund.
new text end

new text begin (f) If the commissioner estimates a revenue gain for the next biennium under
paragraph (b), and if the amount of gain estimated for the next biennium is more than
the amount forecast to be in the tax volatility reduction account at the close of the next
biennium, then the difference is designated for transfer to the tax volatility reduction
account on the first day of the next biennium.
new text end

new text begin (g) If the commissioner estimates a revenue gain for the next biennium under
paragraph (b), and if the amount of gain estimated for the next biennium is less than
the amount forecast to be in the tax volatility reduction account at the close of the next
biennium, then the difference is transferred from the tax volatility reduction account to the
general fund on the first day of the next biennium.
new text end

new text begin (h) If the commissioner estimates a revenue loss under paragraph (a) in the next
biennium, then the amount adequate to offset the loss, to the extent it is available, is
transferred from the tax volatility reduction account to the general fund on the first day of
the next biennium.
new text end

new text begin (i) For purposes of this subdivision "economic forecast" means the economic
forecast prepared according to section 16A.103.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2006, section 16D.04, subdivision 1, is amended to read:


Subdivision 1.

Duties.

The commissioner shall provide services to the state and deleted text beginitsdeleted text end
new text begin referring new text endagencies to collect debts deleted text beginowed the statedeleted text endnew text begin referred for collection under this chapternew text end.
The commissioner is not a collection agency as defined by section 332.31, subdivision 3,
and is not licensed, bonded, or regulated by the commissioner of commerce under sections
332.31 to 332.35 or 332.38 to 332.45. The commissioner is subject to section 332.37,
except clause (9), (10), (12), or (19). Debts referred to the commissioner for collection
under section 256.9792 may in turn be referred by the commissioner to the enterprise.
An audited financial statement may not be required as a condition of debt placement with
a private agency if the private agency: (1) has errors and omissions coverage under a
professional liability policy in an amount of at least $1,000,000; or (2) has a fidelity bond
to cover actions of its employees, in an amount of at least $100,000. In cases of debts
referred under section 256.9792, the provisions of this chapter and section 256.9792 apply
to the extent they are not in conflict. If they are in conflict, the provisions of section
256.9792 control. For purposes of this chapter, the referring agency for such debts remains
the Department of Human Services.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2006, section 16D.04, subdivision 2, is amended to read:


Subd. 2.

Agency participation.

(a) A referring agencydeleted text begin may, at its option,deleted text endnew text begin mustnew text end
refernew text begin, by electronic means,new text end debts to the commissioner for collection. deleted text beginThe ultimatedeleted text end
Responsibility for the debt, including the reporting of the debt to the commissioner of
finance and the decision with regard to the continuing collection and uncollectibility of the
debt, remains with the referring agency.

(b) new text beginBefore a debt becomes 121 days past due, a referring agency may refer the
debt to the commissioner for collection at any time after a debt becomes delinquent and
uncontested and the debtor has no further administrative appeal of the amount of the
debt.
new text endWhen a debt owed to a deleted text beginstatedeleted text end new text beginreferring new text endagency becomes 121 days past due, the deleted text beginstatedeleted text end
new text begin referring new text endagency must refer the debt to the commissioner for collection. This requirement
does not apply if there is a dispute over the amount or validity of the debt, if the debt is the
subject of legal action or administrative proceedings, or the agency determines that the
debtor is adhering to acceptable payment arrangements. The commissionerdeleted text begin, in consultation
with the commissioner of finance,
deleted text end may provide that certain types of debt need not be
referred to the commissioner for collection under this paragraph. Methods and procedures
for referral must follow internal guidelines prepared by the commissioner deleted text beginof financedeleted text end.

(c) If the referring agency is a court, the court must furnish a debtor's Social Security
number to the commissioner when the court refers the debt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for debts referred on or after January
1, 2008.
new text end

Sec. 6.

Minnesota Statutes 2006, section 16D.11, subdivision 2, is amended to read:


Subd. 2.

Computation.

At the time a debt is referred, the amount of collection
costs is equal to deleted text begin15deleted text end new text begin17 new text endpercent of the debtdeleted text begin, or 25 percent of the debt remaining unpaid if
the commissioner or private collection agency has to take enforced collection action
by serving a summons and complaint on or entering judgment against the debtor, or by
utilizing any of the remedies authorized under section 16D.08, subdivision 2, except for
the remedies in sections 270C.32 and 270C.65 or when referred by the commissioner for
additional collection activity by a private collection agency
deleted text end. If, after referral of a debt to
a private collection agency, the debtor requests cancellation of collection costs under
subdivision 3, the debt must be returned to the commissioner for resolution of the request.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for debts referred on or after January
1, 2008.
new text end

Sec. 7.

Minnesota Statutes 2006, section 16D.11, subdivision 7, is amended to read:


Subd. 7.

Adjustment of rate.

By June 1 of each year, the commissioner deleted text beginof financedeleted text end
shall determine the rate of collection costs for debts referred to the enterprise during
the next fiscal year. The rate is a percentage of the debts in an amount that most nearly
equals the costs of the enterprise necessary to process and collect referred debts under this
chapter. In no event deleted text beginshall the rate of collection costs when a debt is first referred exceed
three-fifths of the maximum collection costs, and in no event
deleted text end shall the rate of the deleted text beginmaximumdeleted text end
collection costs exceed 25 percent of the debt. Determination of the rate of collection costs
under this section is not subject to the fee setting requirements of section 16A.1285.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 8.

new text begin [84.635] MINNESOTA LAND CONSERVATION INCENTIVES ACT.
new text end

new text begin Subdivision 1. new text end

new text begin Citation. new text end

new text begin This section may be cited as the "Minnesota Land
Conservation Incentives Act of 2007."
new text end

new text begin Subd. 2. new text end

new text begin Purpose and findings. new text end

new text begin (a) The legislature finds that Minnesota's unique
natural resources are of significant benefit to the state and the public.
new text end

new text begin (b) The legislature finds that the state of Minnesota's unique natural resources and
distinctive natural heritage, including habitat for plants, animals, and natural communities,
are being lost at an alarming rate.
new text end

new text begin (c) The legislature finds that much of Minnesota's unique natural resources and
habitats are found on lands which are privately owned.
new text end

new text begin (d) The legislature shall provide private landowners with incentives to encourage
protection of private lands for natural resources, biodiversity conservation, and outdoor
recreation purposes.
new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (a) "Fee interest in real property" means fee title in real property that can be legally
conveyed.
new text end

new text begin (b) "Public conservation agency" means the state of Minnesota or a county of the
state.
new text end

new text begin (c) "Landowner" means an individual, estate, trust, partnership, or S-corporation.
new text end

new text begin (d) "Eligible landowner" means a landowner who makes a donation of fee interest in
real property to a public conservation agency.
new text end

new text begin (e) "Donation of fee interest in real property" means the unconditional donation of a
fee interest in real property located in Minnesota and determined by the commissioner
of natural resources to meet the criteria for designation as a scientific and natural area
under section 86A.05, subdivision 5.
new text end

new text begin Subd. 4. new text end

new text begin Land conservation grant; eligibility. new text end

new text begin (a) An eligible landowner is eligible
for a grant equal to 30 percent of the fair market value of a donation of fee interest in real
property which satisfies the requirements and purposes of this section, up to a maximum
grant of $200,000.
new text end

new text begin (b) The donation of fee interest in real property must be acceptable to the public
conservation agency, which must agree to hold and maintain the property for conservation
purposes, and which may not receive any payment in lieu of taxes or other compensation
for the property donated after the donation is accepted.
new text end

new text begin (c) The fair market value of qualified donations made under this section shall be
substantiated by a qualified appraisal prepared by a qualified appraiser, as those terms are
defined under applicable federal law and regulations governing charitable contributions.
new text end

new text begin (d) A landowner must establish eligibility by application in a form and manner
prescribed by the commissioner to be considered for a grant under subdivision 5.
new text end

new text begin (e) The maximum amount of statewide grants is $1,000,000 for each fiscal year.
new text end

new text begin Subd. 5. new text end

new text begin Land conservation grant; award by commissioner. new text end

new text begin The commissioner
shall:
new text end

new text begin (1) approve donations of fee interest in real property to a public conservation agency
as qualifying for a grant under this section;
new text end

new text begin (2) determine criteria and priorities for awarding grants to landowners approved
as qualifying for a grant under clause (1);
new text end

new text begin (3) provide grants to landowners who qualify under clause (1) and meet the criteria
and priorities under clause (2); and
new text end

new text begin (4) not award more than a total of $1,000,000 of land conservation grants per fiscal
year.
new text end

new text begin Subd. 6. new text end

new text begin Authorizing rulemaking; requiring report. new text end

new text begin The commissioner of natural
resources shall adopt such rules as may be deemed necessary to implement the land
conservation grant program under this section. The commissioner shall prepare a report
to the legislature each year, in compliance with sections 3.195 and 3.197, showing the
lands protected under this section.
new text end

new text begin Subd. 7. new text end

new text begin Construction. new text end

new text begin No part of this section shall be interpreted to alter or
amend any permit requirements, reporting requirements, allocation procedures, or other
requirements set forth in any other provision of state law.
new text end

Sec. 9.

Minnesota Statutes 2006, section 270C.03, subdivision 1, is amended to read:


Subdivision 1.

Powers and duties.

The commissioner shall have and exercise
the following powers and duties:

(1) administer and enforce the assessment and collection of taxes;

(2) make determinations, corrections, and assessments with respect to taxes,
including interest, additions to taxes, and assessable penalties;

(3) use statistical or other sampling techniques consistent with generally accepted
auditing standards in examining returns or records and making assessments;

(4) investigate the tax laws of other states and countries, and formulate and submit
to the legislature such legislation as the commissioner may deem expedient to prevent
evasions of state revenue laws and to secure just and equal taxation and improvement in
the system of state revenue laws;

(5) consult and confer with the governor upon the subject of taxation, the
administration of the laws in regard thereto, and the progress of the work of the
department, and furnish the governor, from time to time, such assistance and information
as the governor may require relating to tax matters;

(6) execute and administer any agreement with the secretary of the treasury or the
Bureau of Alcohol, Tobacco, Firearms, and Explosives in the Department of Justice of the
United States or a representative of another state regarding the exchange of information
and administration of the state revenue laws;

(7) require town, city, county, and other public officers to report information as to the
collection of taxes received from licenses and other sources, and such other information
as may be needful in the work of the commissioner, in such form as the commissioner
may prescribe;

(8) authorize the use of unmarked motor vehicles to conduct seizures or criminal
investigations pursuant to the commissioner's authority; deleted text beginand
deleted text end

(9) new text beginmaintain toll-free telephone access for taxpayer assistance for calls from
locations within the state; and
new text end

new text begin (10) new text endexercise other powers and authority and perform other duties required of or
imposed upon the commissioner by law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 10.

new text begin [270C.21] TAXPAYER ASSISTANCE GRANTS.
new text end

new text begin When the commissioner awards grants to nonprofit organizations to coordinate,
facilitate, encourage, and aid in the provision of taxpayer assistance services, the
commissioner must provide public notice of the grants in a timely manner so that the
grant process is completed and grants are awarded by October 1, in order for recipient
organizations to adequately plan expenditures for the filing season. At the time the
commissioner provides public notice, the commissioner must also notify nonprofit
organizations that received grants in the previous biennium.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

new text begin [270C.435] REFUNDS NOT SUBJECT TO ATTACHMENT OR
GARNISHMENT.
new text end

new text begin No amount of a tax refund or other payment payable by the commissioner to
a taxpayer is assignable or subject to execution, levy, attachment, garnishment, lien
foreclosure, or other legal process, except as specifically provided by law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2006, section 270C.446, subdivision 2, is amended to read:


Subd. 2.

Required and excluded tax preparers.

(a) Subject to the limitations
of paragraph (b), the commissioner must publish lists of tax preparers new text beginas defined in
section 289A.60, subdivision 13, paragraph (f),
new text endwho have been convicted under section
289A.63new text begin or assessed penalties in excess of $1,000 under section 289A.60, subdivision
13, paragraph (a)
new text end.

(b) For the purposes of this section, tax preparers are not subject to publication if:

(1) an administrative or court action contesting the penalty has been filed or served
and is unresolved at the time when notice would be given under subdivision 3;

(2) an appeal period to contest the penalty has not expired; or

(3) the commissioner has been notified that the tax preparer is deceased.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for penalties on returns filed after
December 31, 2007.
new text end

Sec. 13.

Minnesota Statutes 2006, section 270C.56, subdivision 1, is amended to read:


Subdivision 1.

Liability imposed.

A person who, either singly or jointly with
others, has the control of, supervision of, or responsibility for filing returns or reports,
paying taxes, or collecting or withholding and remitting taxes and who fails to do so, or
a person who is liable under any other law, is liable for the payment of taxes, penalties,
and interest arising under chapters 295, 296A, 297A, 297F, and 297G, or sections 290.92
and 297E.02new text begin, and, for the taxes listed in this subdivision, the applicable penalties for
nonpayment under section 289A.60
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for personal liability assessments
made on or after the day following final enactment.
new text end

Sec. 14.

Minnesota Statutes 2006, section 270C.63, subdivision 9, is amended to read:


Subd. 9.

Period of limitations.

The lien imposed by this section shall,
notwithstanding any other provision of law to the contrary, be enforceable from the time
the lien arises and for ten years from the date of filing the notice of lien, which must be
filed by the commissioner within five years after the date of assessment of the tax or final
administrative or judicial determination of the assessment. new text beginA notice of lien filed at the
Office of the Secretary of State may be transcribed to any county within ten years after the
date of its filing, but the transcription does not extend the period during which the lien is
enforceable.
new text endA notice of lien filed in one county may be transcribed to the secretary of
state or to any other county within ten years after the date of its filing, but the transcription
shall not extend the period during which the lien is enforceable. A notice of lien may be
renewed by the commissioner before the expiration of the ten-year period for an additional
ten years. The taxpayer must receive written notice of the renewal.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for liens transcribed on or after the
day following final enactment.
new text end

Sec. 15.

Minnesota Statutes 2006, section 424A.10, subdivision 3, is amended to read:


Subd. 3.

State reimbursement.

(a) deleted text beginBy February 15 of each year, the treasurer of
the relief association shall apply to the commissioner of revenue
deleted text end new text beginEach year, to be eligible
new text endfor state reimbursement of the amount of supplemental benefits paid under subdivision 2
during the preceding calendar yearnew text begin, the relief association must apply to the commissioner
of revenue by February 15
new text end. By March 15 the commissioner shall reimburse the relief
association for the amount of the supplemental benefits paid to qualified recipients.

(b) The commissioner of revenue shall prescribe the form of and supporting
information that must be supplied as part of the application for state reimbursement.new text begin
The commissioner of revenue shall reimburse the relief association by paying the
reimbursement amount to the treasurer of the municipality where the association is located.
Within 30 days after receipt, the municipal treasurer shall transmit the state reimbursement
to the treasurer of the association if the association has filed a financial report with the
municipality. If the relief association has not filed a financial report with the municipality,
the municipal treasurer shall delay transmission of the reimbursement payment to the
association until the complete financial report is filed. If the association has dissolved or
has been removed as a trustee of state aid, the treasurer shall deposit the money in a
special account in the municipal treasury, and the money may be disbursed only for the
purposes and in the manner provided in section 424A.08. When paid to the association,
new text end

deleted text begin (c)deleted text end the reimbursement payment must be deposited in the special fund of the relief
association.

deleted text begin (d)deleted text end new text begin(c) new text endA sum sufficient to make the payments is appropriated from the general fund
to the commissioner of revenue.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2007, and thereafter.
new text end

Sec. 16. new text beginFINANCIAL MANAGEMENT.
new text end

new text begin Notwithstanding the provisions of Minnesota Statutes, section 16A.1522,
subdivision 4, the commissioner of finance shall designate any positive general fund
budgetary balance on June 30, 2007, as an unrestricted balance. Money so designated shall
remain available for general fund appropriations authorized in fiscal years 2008 and 2009.
new text end

Sec. 17. new text beginHOMESTEAD CREDIT STATE REFUND TRANSITION RESERVE.
new text end

new text begin Subdivision 1. new text end

new text begin Reserve account. new text end

new text begin A homestead credit state refund transition reserve
account is established in the general fund to provide two additional years of transition
funding for the homestead credit state refund.
new text end

new text begin Subd. 2. new text end

new text begin Transfer to account. new text end

new text begin On June 29, 2009, the commissioner of finance
shall transfer $84,295,000 from the general fund to the homestead credit state refund
transition reserve account.
new text end

new text begin Subd. 3. new text end

new text begin Transfer to general fund. new text end

new text begin On July 1, 2009, the commissioner of finance
shall transfer the balance in the homestead credit state refund transition reserve account
to the general fund.
new text end

new text begin Subd. 4. new text end

new text begin Expiration date. new text end

new text begin This section expires July 2, 2009.
new text end

Sec. 18. new text beginLIGNOCELLULOSIC ETHANOL PRODUCTION GRANT;
APPROPRIATION.
new text end

new text begin $4,735,000 is appropriated in fiscal year 2008 from the general fund to the
commissioner of agriculture for a competitive grant to a biofuel producer for the design
and construction of a new plant or the conversion of an existing plant in Minnesota that
produces ethanol from lignocellulosic feedstocks. The commissioner of agriculture shall
solicit proposals for demonstration projects. The proposals shall be reviewed and the
winning proposal chosen by the NextGen Energy Board established by the 85th Legislative
Session House File 2227, the third engrossment. Eligible lignocellulosic feedstocks
include dedicated energy crops and trees, wood and wood residues, plants, grasses,
agricultural residues, fibers, animal wastes and other waste materials, and municipal solid
waste. The NextGen Energy Board shall select a proposal that: (1) demonstrates sufficient
funding from all sources to fully construct or retrofit an ethanol plant and produce ethanol
from eligible lignocellulosic feedstocks; (2) demonstrates the continued economic viability
of the project once the initial construction costs are paid; and (3) proposes to construct or
retrofit an ethanol plant that can be easily replicated in Minnesota. Proposals solely to
replace energy inputs derived from fossil fuels with energy derived from lignocellulosic
sources are not eligible. This appropriation is available until expended.
new text end

Sec. 19. new text beginAPPROPRIATION.
new text end

new text begin $1,000,000 in fiscal year 2008 and $1,000,000 in fiscal year 2009 are appropriated
from the general fund to the commissioner of natural resources to make land conservation
grants as provided in Minnesota Statutes, section 84.635.
new text end

Sec. 20. new text beginAPPROPRIATIONS.
new text end

new text begin (a) $342,500 is appropriated for fiscal year 2008 and $85,500 is appropriated for
fiscal year 2009 from the general fund to the commissioner of revenue to administer
this act.
new text end

new text begin (b) Of these amounts:
new text end

new text begin (i) $150,000 in fiscal year 2008 is for the fiscal disparities study required under
article 3;
new text end

new text begin (ii) $87,000 in fiscal year 2008 is for the sales and use tax study required under
article 6; and
new text end

new text begin (iii) $73,000 in fiscal year 2008 and $58,000 in fiscal year 2009 is for administering
1099 reporting requirements under article 5. The $58,000 in fiscal year 2009 becomes part
of the agency's base budget for fiscal years 2010 and 2011.
new text end