Legislative Session number- 85

Bill Name: HF2268

HF 2268

SECOND ENGROSSMENT

Omnibus tax bill.

ARTICLE 1: AIDS TO LOCAL
GOVERNMENTS AND PROPERTY TAX REFUND

Sections 1-2: Homeowners language
modified.

Section 3: Inflation adjustment language modified.

Section 4: City
aid base language modified.

Section 5: County transition aid language
modified.

Section 6: Towns language modified.

Section 7: City formula aid
language modified.

Section 8: City aid distribution language modified.

Section
9: Appropriation language modified.

Section 10: Types of land; payments
language modified.

Section 11: General distribution language modified.

Section
12: Mahnomen county; county, city, school district property tax reimbursement
language modified.

Section 13: Utility property; tax base adjustments for
calculation of school district aids and levies language provided.

Section 14:
Utility property; tax base adjustments for calculation of county, city, and town
aids language provided.

Section 15: Mahnomen county; city, county and school
district tax base adjustments language provided.

Section 16: Grand Marais and
Cook county fire aid language provded.

Section 17: Study of aids to local
governments language provided.

Section 18: Repealer language provided.

ARTICLE
2: PROPERTY TAXES

Section 1: Allocation language modified.

Section 2: Retired
employee health benefits language modified.

Section 3: Methodology language
modified.

Section 4: rate adjustment; property tax change language
modified.

Section 5: Modular homes used as models by dealers language
provided.

Section 6: Electric generation facility; personal property language
provided.

Section 7: Apprenticeship training facilities language
provided.

Section 8: Monosloped roofs for feedlots and manure storage areas
language provided.

Section 9: Requirement language modified.

Section 10:
Agricultural use language modified.

Section 11: Agricultural value
determination language provided.

Section 12: Implementation of program language
modified.

Section 13: Applications; denied by county language provided

Section
14: Local option; other property language modified.

Section 15: Agricultural
homesteads; special provisions language modified.

Section 16: annual
registration of certain relative homesteads language provided.

Section 17:
Manufactured homes; sectional structures language modified.

Section 18:
Requirement language modified.

Section 19: Class 1 language modified.

Section
20: Class 2 language modified.

Section 21: Class 3 language modified.

Section
22: class 4 language modified.

Section 23: Classification of unimproved
property language modified.

Section 24: Homestead of disabled veteran language
provided.

Section 25: Certification of class 1b property language
modified.

Section 26: Seasonal residential recreational tax capacity language
modified.

Section 27: Joint public hearing; nonmetropolitan county, cities, and
school districts language provided.

Section 28: Special taxing districts;
definition modified.

Section 29: Contents of tax statements language
modified.

Section 30: Dismissal of petition; exclusion of certain evidence
language modified.

Section 31: Class 3a property language modified.

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

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

Section 34: Property tax statement language
modified.

Section 35: Calculation of incentive payment language
modified.

Section 36: Definition of municipality language modified.

Section
37: General powers of authority language provided.

Section 38: Creation of an
airport authority; dissolution language provided.

Section 39: Tax levy may be
certified by an airport authority provided.

Section 40: Hardship assessment
deferral for seniors, disabled, or military persons language modified.

Section
41: Minneapolis, city of; street maintenance and lighting language
modifie.d

Section 42: Tax; payment of expenses language modified.

Section 43:
Tax levy language modified.

Section 44: Exchange of tax-forfeited land; private
sale; Itasca county language modified.

Section 45: Fiscal disparities study
language provided.

Section 46: City of Brooklyn center; participation in
crime-free multihousing program language provided.

Section 47: Clair A. Nelson
memorial forest, Lake county; temporary suspension of apportionment of proceeds
from tax-forfeited lands language provided.

Section 48: Lakeview cemetery
association language provided.

Section 49: Tax-forfeited lands; Itasca county
language provided.

Section 50: Ham Lake fire; property tax reduction; state
reimbursement language provided.

Section 51: Improving public awareness and
participation in property tax relief programs language provided.

Section 52:
Repealer provided.

ARTICLE 3: CORPORATE FRANCHISE TAX

Section 1: Foreign
operating corporation language modified.

Section 2: Corporations; additions to
federal taxable income language modified.

Section 3: Corporations;
modifications decreasing federal taxable income language modified.

Section 4:
Apportionment formula of general application language modified.

ARTICLE 4:
INDIVIDUAL INCOME TAXES

Section 1: Internal Revenue Code language
modified.

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

Section 3: Net
income language modified.

Section 4: Additions to federal taxable income
language modified.

Section 5: Subtractions from federal taxable income language
modified.

Section 6: Internal Revenue Code language modified.

Section 7:
Investment tax credit language modified.

Section 8: Highway fuels tax credit
language provided.

Section 9: Credit allowed language modified.

Section 10:
Nondeductible items language modified.

Section 11: Income not derived from
conduct of a trade or business language modified.

Section 12: Payments to
persons who are not employees language provided.

Section 13: internal Revenue
Code language modified.

Section 14: Scope language modified.

Section 15: audit
and report to legislature language provided.

ARTICLE 5: SALES AND USE
TAX

Section 1: Sales and use tax language modified.

Section 2: Accelerated
payment of June sales liability; penalty for underpayment language
modified.

Section 3: Manufactured and modular housing language
provided.

Section 4: Capital equipment language modified.

Section 5: Materials
consumed in agricultural production language modified.

Section 6: Repair and
replacement parts language modified.

Section 7: Machinery, equipment, and
fencing language modified.

Section 8: sales of certain goods and services to
government language modified.

Section 9: Regionwide public safety radio
communication system; products and services language modified.

Section 10:
Construction materials for qualified low-income housing projects language
modified.

Section 11: Legal reference and data center facility
provided.

Section 12: Tax collected language modified.

Section 13: Refund;
eligible persons language modified.

Section 14: Application language
modified.

Section 15: Authorization; scope language modified.

Section 16:
Exemptions language modified.

Section 17: Laws language modified.

Section 18:
Low tax in towns language modified.

Section 19: Use of revenues language
modified.

Section 20: Expiration of taxing authority and expenditure limitation
language modified.

Section 21: Bonds language modified.

Section 22: Sales and
use tax language modified.

Section 23: Use of revenues language
modified.

Section 24: Bonding authority language modified.

Section 25: City of
Bemidji language modified.

Section 26: City of Clearwater; taxes authorized
language provided.

Section 27: Cook county; lodging and admissions taxes
language provided.

Section 28: City of North Mankato; Taxes authorized language
provided.

Section 29: Minnetonka water treatment facility language
provided.

Section 30: City of Winona; taxes authorized language
provided.

Section 31: Joint legislative subcommittee on sales and use tax
language provided.

ARTICLE 6: ECONOMIC DEVELOPMENT

Section 1: Dairy
investment grant program language provided.

Section 2: Definitions language
modified.

Section 3: Historic structure rehabilitation grants language
provided.

Section 4: Use of data language modified.

Section 5: Disclosure to
legislative auditor and state auditor language modified.

Section 6: Job
opportunity building zone property language modified.

Section 7: Fergus Falls
historical zone language provided.

Section 8: Reports of job opportunity zone
benefits; penalty for failure to file report language provided.

Section 9:
Additional border city allocations; 2007 language provided.

Section 10:
Redevelopment district language modified.

Section 11: Renewal and renovation
district language modified.

Section 12: Tax increment financing plan language
modified.

Section 13: Municipality approval language modified.

Section 14:
Duration of tax increment financing districts language modified.

Section 15:
Excess increments language modified.

Section 16: Prohibited facilities language
modified.

Section 17: Parcels not includable in districts language
modified.

Section 18: Requirement imposed language modified.

Section 19:
Expenditures outside district language modified.

Section 20: Original net tax
capacity language modified.

Section 21: Interfund loans language
modified.

Section 22: Preconditions to establish district language
modified.

Section 23: Duration limit language modified.

Section 24:
Restrictions on relocations language provided.

Section 25: State auditor;
audits of job opportunity building zones and business subsidiary agreements
language modified.

Section 26: Use of proceeds language modified.

Section 27:
Bloomington computation language provided.

Section 28: Areawide tax rate
language modified.

Section 29: Certification of values; payment language
modified.

Section 30: Establishment language modified.

Section 31: Eligible
activities language modified.

Section 32: Housing account language
modified.

Section 33: Authority language modified.

Section 34: Creation of
projects language modified.

Section 35: Grants to qualifying business language
modified.

Section 36: City of Bloomington; tax increment financing district;
project requirements language provided.

Section 37: City of Bloomington; local
authority language provided.

Section 38: Burnsville; northwest quadrant tax
increment language provided.

Section 39: City of Eagan; tax increment financing
district language provided.

Section 40: City of Eyota; tax increment financing
district language provided.

Section 41: City of Fridley; tax increment
financing district; special rules language provided.

Section 42: City of New
Brighton; tax increment financing; expenditures outside district language
provided.

Section 43: 2008 Republican National Convention expense;
appropriation language provided.

Section 44: Appropriation; grant to Fergus
Falls language provided.

Section 45: Appropriation; dairy investment grants
language modified.

Section 46: Appropriation; Minnesota Historical Society
language provided.

Section 47: Repealer provided.

ARTICLE 7: PUBLIC
FINANCE

Section 1: Amount language modified.

Section 2: Purchase of certain
equipment language modified.

Section 3: Market value language
modified.

Section 4: Time of notice language modified.

Section 5: Definitions
language modified.

Section 6: Creation language modified.

Section 7: Financing
language modified.

Section 8: Petition for removal of district; procedure
language modified.

Section 9: Capital notes language modified.

Section 10:
Limitations on amount language modified.

Section 11: Financing language
modified.

Section 12: Equipment acquisition; capital notes language
modified.

Section 13: Creation language modified.

Section 14: Limitation
language modified.

Section 15: Cities may issue capital notes for capital
equipment language modified.

Section 16: Financing purchase of certain
equipment language modified.

Section 17: City language modified.

Section 18:
Trust for postemployment benefits language provided.

Section 19: Obligations
language provided.

Section 20: Anticipation of grants language
modified.

Section 21: Net debt language modified.

Section 22: Certain purposes
language modified.

Section 23: Grant anticipation financing of transportation
or transit projects language provided.

Section 24: Generally language
modified.

Section 25: Approval by electors; exceptions language
modified.

Section 26: Street reconstruction language modified.

Section 27:
Validation language provided.

Section 28: Town of Crane Lake, certificates of
indebtedness language provided.

Section 29: City of Winsted; Bonding authority
language provided.

ARTICLE 8: MINERALS

Section 1: Commercial-industrial
property language modified.

Section 2: Increase in net tax capacity language
modified.

Section 3: Forest trust language provided.

Section 4: Iron Range
Higher Education Committee; membership language modified.

Section 5: Imposed;
calculation language modified.

Section 6: Taxes additional to occupation tax;
in lieu of other taxes language modified.

Section 7: Cities; towns language
modified.

Section 8: School districts language modified.

Section 9: Counties
language modified.

Section 10: Property tax relief language modified.

Section
11: Iron Range higher education account language provided.

Section 12: Use of
money language modified.

Section 13: Expenditure of funds language
modified.

Section 14: Grant and loan fund language modified.

Section 15:
Public works and local economic development fund language modified.

Section 16:
Definitions language modified.

Section 17: Report and remittance language
modified.

Section 18: Proceeds of taxes language modified.

Section 19: Tax may
be imposed' Otter Tail county language provided.

Section 20: Iron range
resources and rehabilitation board appropriation; retire bonds language
provided.

Section 21: Appropriations; Department of Education language
provided.

Section 22: Repealer language modified.

ARTICLE 9: SPECIAL
TAXES

Section 1: Determination language modified.

Section 2: All-terrain
vehicle language modified.

Section 3: Accelerated tax payment; cigarette or
tobacco products distributor language modified.

Section 4: Inventory; judicial
determination; appeal; disposition of seized property language
modified.

Section 5: Accelerated tax payment; penalty language
modified.

Section 6: Premiums paid to certain foreign insurance companies
language modified.

Section 7: Expiration language modified.

Section 8:
Creation language modified.

Section 9: Uses of fund language modified.

Section
10: Expiration language modified.

Section 11: County deed and mortgage tax
language provided.

Section 12: Environmental response fund language
provided.

Section 13: County deed and mortgage tax language provided.

Section
14: Environmental response fund language provided.

Section 15: County deed and
mortgage tax language provided.

Section 16: Environmental response fund
language provided.

Section 17: Temporary petrofund fee exemption for Minnesota
commercial airlines language modified.

ARTICLE 10: DEPARTMENT INCOME AND
FRANCHISE TAXES

Section 1: Debt language modified.

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

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

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

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

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

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

Section 8: Reportable transaction understatement language
modified.

Section 9: Preparer identification number language provided.

Section
10: Subtractions from federal taxable income language modified.

Section 11:
Corporations; additions to federal taxable income language modified.

Section
12: corporations; modifications decreasing federal taxable income language
modified.

Section 13: Bovine testing credit language modified.

Section 14:
Inflation adjustment language modified.

Section 15: Inflation adjustment
language modified.

Section 16: Exemption amount language modified.

Section 17:
Alternative minimum taxable income language modified.

Section 18: Deposit;
definition language modified.

Section 19: Dependent language modified.

Section
20: Determination language modified.

Section 21:Transition; pollution control
facilities amortization language modified.

ARTICLE 11: DEPARTMENT SALES AND USE
TAXES

Section 1: Bad debt loss language modified.

Section 2: Border city zone
refunds language modified.

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

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

Section 5: Sale and purchase language
modified.

Section 6: Retail sale language modified.

Section 7: Sales price
language modified.

Section 8: Tangible personal property language
modified.

Section 9: Telecommunications services language modified.

Section
10: Bundled transaction language modified.

Section 11: Ancillary services
language modified.

Section 12: Conference bridging service language
provided.

Section 13: Detailed telecommunications billing service language
provided.

Section 14: Directory assistance language provided.

Section 15:
Vertical service language provided.

Section 16: Voice mail service language
modified.

Section 17: Ring tone language modified.

Section 18: fur clothing
language modified.

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

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

Section 21: Defined telecommunications services sourcing
language modified.

Section 22: Postpaid calling service language
modified.

Section 23: Prepaid calling service language modified.

Section 24:
Prepaid wireless calling service language modified.

Section 25: Ancillary
service language modified.

Section 26: Drugs; medical devices language
modified.

Section 27: Clothing language modified.

Section 28: Baby products
language modified.

Section 29: Advertising materials language
modified.

Section 30: Packing materials language modified.

Section 31:
Telecommunications language modified.

Section 32: Materials consumed in
agricultural production language modified.

Section 33: Hospitals and outpatient
surgical centers language modified.

Section 34: Private communication service
for State Lottery language provided.

Section 35: Exemption certificates
language modified.

Section 36: Liquor reporting requirements; penalty language
modified.

Section 37: Payment of tax language modified.

Section 38: ordinary
course of business language modified.

Section 39: Sales tax exemption;
equipment; construction materials language modified.

Section 40: Fur tax
payments language modified.

Section 41: Repealer provided.

ARTICLE 12:
DEPARTMENT PROPERTY TAXES

Section 1: Flight property language
modified.

Section 2: Assessment of flight property language modified.

Section
3: Report by airline company language modified.

Section 4: Airflight property
tax lien language modified.

Section 5: Penalties language provided.

Section 6:
Examination; investigations; subpoenas language provided.

Section 7: Tax
capacity language modified.

Section 8: Appeal language modified.

Section 9:
Creation; purpose; powers language modified.

Section 10: Definition language
provided.

Section 11: Members language modified.

Section 12: License; refusal
or revocation language modified.

Section 13: Prohibited activity language
modified.

Section 14: Charges for course, examinations or materials language
modified.

Section 15: Disposition of fees language modified.

Section 16:
Training courses, regulation language modified.

Section 17: Rules language
modified.

Section 18: Licensure of qualified persons language
modified.

Section 19: Employment of licensed assessors language
modified.

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

Section 21: Authority language
modified.

Section 22: Job opportunity building zone property language
modified.

Section 23: Requirement language modified.

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

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

Section 26: Requirements language modified.

Section 27: Conservation
property tax valuation language modified.

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

Section 29: Reassessment of homestead
property language modified.

Section 30: Computation of local tax rates language
modified.

Section 31: Homestead application language modified.

Section 32:
Disparity reduction credit language modified.

Section 33: Listing and
assessment by commissioner language modified.

Section 34: Listing and
assessment by commissioner language modified.

Section 35: Report required
language modified.

Section 36: Recommended and ordered values language
modified.

Section 37: Ordinary board; meetings, deadlines, grievances language
modified.

Section 38: Members; meetings; rules for equalizing assessments
language modified.

Section 39: County boards; appeals and equalization course
and meeting requirements language provided.

Section 40: Notice of proposed
property taxes language modified.

Section 41: Public advertisement language
modified.

Section 42: Special taxing districts; organization date;
certification of levy or special assessments language modified.

Section 43:
Electronic tax statements language modified.

Section 44: Partial payments
language modified.

Section 45: Due dates; penalties language modified.

Section
46: Qualifying homestead; defined language modified.

Section 47: Claimant
language modified.

Section 48: Applications language modified.

Section 49:
Annual certification language modified.

Section 50: Penalties for removal
language modified.

Section 51: Appeals language modified.

Section 52: Repealer
provided.

ARTICLE 13: DEPARTMENT SPECIAL TAXES

Section 1: Deficit assessments
language modified.

Section 2: Premium tax language modified.

Section 3:
Exemptions language modified.

Section 4: Tax-forfeited land language
modified.

Section 5: Use tax; prescription drugs language modified.

Section 6:
Tax collection language modified.

Section 7: Pharmacy refund language
modified.

Section 8: Tobacco products use tax language modified.

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

Section
10: Insurance policies surcharge language modified.

Section 11: Exemptions
language modified.

Section 12: Joint Underwriting Association offset language
modified

Section 13: Definition of tax language modified.

ARTICLE 14
DEPARTMENT MISCELLANEOUS

Section 1: Duties language modified.

Section 2:
Agency participation language modified.

Section 3: Computation language
modified.

Section 4: Adjustment of rate language modified.

Section 5: Refunds
not subject to attachment or garnishment language modified.

Section 6: Required
and excluded tax prepares language modified.

Section 7: Liability imposed
language modified.

Section 8: Period of limitations language modified.

Section
9: State reimbursement language modified.

ARTICLE 15: MISCELLANEOUS

Section 1:
Local impact notes language modified.

Section 2: Miscellaneous exceptions
language modified.

Section 3: Compilation of local impact notes language
modified.

Section 4: Certain political subdivisions; report language
modified.

Section 5: Forecast parameters language modified.

Section 6:
Forecast variable language modified.

Section 7: Local revenue language
modified.

Section 8: Budget reserve increase language modified.

Section 9:
Additional revenues; priority language modified.

Section 10: Tax volatility
reduction account language modified.

Section 11: Registration or notice filing
fee language modified.

Section 12: Registration or notice filing fee language
modified.

Section 13: Claimant agency language modified.

Section 14: Priority
of claims language modified.

Section 15: Powers and duties language
modified.

Section 16: Taxpayer assistance grants language modified.

Section
17: Runway safety and airport zoning advisory task force; appropriation language
modified.

Section 18: Data update language modified.

Section 19: Financial
management language modified.

Section 20: Appropriations language
provided.

Section 21: Appropriations; St. Paul river centre debt service costs
language modified.

Section 22: Repealer provided.

JAJ 5/29/7