Omnibus Tax Bill

A bill for an act

relating to taxation; modifying individual income and corporate franchise taxes,

property taxes, sales and use taxes, excise taxes, local government aids, tax

increment financing provisions, local sales and use taxes, mining and mineral

taxes, public finance provisions, and other miscellaneous taxes and tax-related

provisions; providing for certain federal conformity; modifying and providing for

income tax credits and subtractions; modifying and providing for property tax

exemptions and classifications; providing for certain sales tax exemptions;

establishing a social media tax; authorizing and modifying local sales taxes;

establishing seasonal tax base replacement aid and federal enforcement

reimbursement aid; modifying and providing for various local government aids;

establishing and modifying various programs; modifying and clarifying certain

definitions; establishing a Hennepin County health care tax; establishing a tax on

amounts acquired by fraud; modifying the allocation of production tax proceeds;

making related clarifying and technical changes; requiring and modifying reports;

modifying and canceling appropriations; appropriating and transferring money;

amending Minnesota Statutes 2024, sections 16A.726; 41A.30, subdivisions 1, 2,

7; 116U.27, subdivisions 1, 4, 5; 123B.53, subdivision 1; 123B.535, subdivision

1; 126C.17, by adding a subdivision; 168E.09, subdivision 2, by adding a

subdivision; 270B.14, subdivision 3, by adding a subdivision; 270B.15; 270C.055,

by adding a subdivision; 270C.07; 270C.08; 270C.085; 270C.56, subdivision 1;

272.01, subdivision 2; 272.02, subdivision 101, by adding subdivisions; 273.032;

273.111, subdivision 9; 273.124, subdivision 14; 273.13, subdivision 34; 289A.02,

subdivision 7; 289A.08, subdivision 7; 289A.40, subdivision 1; 289A.60,

subdivision 6; 290.01, subdivisions 19, 29, 31; 290.0132, subdivision 11; 290.0137;

290.0681, subdivisions 3, 4; 290.0683, subdivisions 1, 3; 290.0921, subdivision

3; 290.0922, subdivisions 2, 3; 290.62; 290.92, by adding a subdivision; 290A.03,

subdivision 15; 291.005, subdivision 1; 295.52, subdivision 5; 295.75, subdivision

11, by adding a subdivision; 295.81, by adding a subdivision; 297A.993,

subdivision 4; 297A.994, subdivision 4; 297B.03; 297H.01, subdivisions 2, 8;

298.225; 298.227; 298.28, subdivisions 2, 3, 4, 7a, 8, 9a, 9b, 11, by adding a

subdivision; 298.282, subdivision 1; 383A.80, subdivision 4; 383B.80, subdivision

4; 428B.02, subdivision 4; 462A.40, subdivision 3; 469.060, subdivision 3; 469.171,

subdivisions 1, 4, 6a; 469.1731, subdivision 1; 469.176, subdivision 2; 473.756,

by adding a subdivision; 473.757, subdivisions 1, 2, 3, 4, 7, 8, 9, 10, 11, by adding

subdivisions; 473.759, subdivision 3; 477A.011, subdivision 34, by adding a

subdivision; 477A.23, subdivision 6; 477A.35, subdivisions 4, 6; 477A.36,

subdivisions 4, 5a, 6; Minnesota Statutes 2025 Supplement, sections 41A.30,

subdivision 5; 41B.0391, subdivisions 2, 4, 6a; 116U.27, subdivision 2; 126C.13,

subdivision 4; 268.19, subdivision 1; 273.13, subdivisions 22, 23; 295.81,

subdivision 10; 297A.75, subdivisions 1, 2, 3; 297A.94; 299C.061, subdivision 6;

299C.76, subdivision 1; 477A.35, subdivision 5; 477A.36, subdivision 5; Laws

1986, chapter 400, section 44, as amended; Laws 1993, chapter 375, article 9,

section 46, subdivisions 2, as amended, 2b, as added, 3, as amended, 5, as amended;

Laws 1996, chapter 471, article 2, section 30, subdivision 5, as amended; Laws

1998, chapter 389, article 8, sections 36; 37, subdivision 2, as amended; Laws

2005, First Special Session chapter 3, article 5, section 38, as amended; Laws

2006, chapter 259, article 3, sections 9, subdivision 4, by adding subdivisions; 10,

subdivisions 3, as amended, 4, as amended, 5, as amended; Laws 2019, First Special

Session chapter 6, article 6, sections 17, subdivisions 1, 3, 4, by adding a

subdivision; 28, subdivisions 3, 4, by adding a subdivision; Laws 2021, First

Special Session chapter 14, article 8, section 5, subdivisions 2, as amended, 3, as

amended; article 9, sections 9; 11; Laws 2023, chapter 64, article 5, section 25,

subdivision 1; Laws 2025, First Special Session chapter 13, article 5, section 11,

subdivision 3; proposing coding for new law in Minnesota Statutes, chapters 116J;

270C; 290; 295; repealing Minnesota Statutes 2024, sections 272.02, subdivisions

31, 64; 272.029, subdivision 7; 273.11, subdivisions 19, 20; 273.1315, subdivision

1; 273.1385; 273.25; 273.65; 273.66; 273.67; 274.07; 289A.12, subdivision 15;

290.06, subdivision 29; 297A.68, subdivision 37; 428B.02, subdivision 7; 469.310;

469.311; 469.312; 469.313; 469.314; 469.315; 469.316; 469.317; 469.318;

469.3181; 469.319; 469.3191; 469.3192; 469.3193; 469.320; 469.3201; 477A.085;

477A.18; 477A.30, subdivision 8.

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

ARTICLE 1

FEDERAL UPDATE

Section 1.

Minnesota Statutes 2024, 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 May 1,

2023
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, except the sections of federal law in section 290.0112 shall also apply
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.

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EFFECTIVE DATE.

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This section is effective the day following final enactment, except

the changes incorporated by federal changes are effective retroactively at the same time as

the changes were effective for federal purposes.

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Sec. 2.

Minnesota Statutes 2024, section 290.01, subdivision 19, is amended to read:

Subd. 19.

Net income.

(a) For a trust or estate taxable under section
290.03
, and a

corporation taxable under section
290.02
, 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 sections
290.0131
to
290.0136
.

(b) For an individual, the term "net income" means federal adjusted gross income with

the modifications provided in sections
290.0131
,
290.0132
, and
290.0135
to
290.0137
.

(c) 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.

(d) 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.

(e) 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.

(f) The Internal Revenue Code of 1986, as amended through May 1, 2023, applies for

taxable years beginning after December 31, 1996
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, except the sections of federal law in

section 290.0112 shall also apply
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.

(g) Except as otherwise provided, references to the Internal Revenue Code in this

subdivision and sections
290.0131
to
290.0136
mean the code in effect for purposes of

determining net income for the applicable year.

(h) In the case of a partnership electing to file a composite return under section
289A.08
,

subdivision 7, "net income" means the partner's share of federal adjusted gross income from

the partnership modified by the additions provided in section
290.0131, subdivisions 8
to

10, 16, and 17, and the subtractions provided in: (1) section
290.0132, subdivisions 9
, 27,

and 28, to the extent the amount is assignable or allocable to Minnesota under section
290.17
;

and (2) section
290.0132, subdivision 14
. The subtraction allowed under section
290.0132
,

subdivision 9, is only allowed on the composite tax computation to the extent the electing

partner would have been allowed the subtraction.

(i) In the case of a qualifying entity electing to pay the pass-through entity tax under

section
289A.08, subdivision 7a
, "net income" means the qualifying owner's share of federal

adjusted gross income from the qualifying entity modified by the additions provided in

section
290.0131, subdivisions 5
, 8 to 10, 16, and 17, and the subtractions provided in: (1)

section
290.0132, subdivisions 3
, 9, 27, and 28, to the extent the amount is assignable or

allocable to Minnesota under section
290.17
; and (2) section
290.0132, subdivision 14
. The

subtraction allowed under section
290.0132, subdivision 9
, is only allowed on the

pass-through entity tax computation to the extent the qualifying owners would have been

allowed the subtraction. The income of both a resident and nonresident qualifying owner

is allocated and assigned to this state as provided for nonresident partners and shareholders

under sections
290.17
,
290.191
, and
290.20
.

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EFFECTIVE DATE.

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This section is effective the day following final enactment, except

the changes incorporated by federal changes are effective retroactively at the same time as

the changes were effective for federal purposes.

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Sec. 3.

Minnesota Statutes 2024, section 290.01, subdivision 31, is amended to read:

Subd. 31.

Internal Revenue Code.

Unless specifically defined otherwise, "Internal

Revenue Code" means the Internal Revenue Code of 1986, as amended through May 1,

2023
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, except the sections of federal law in section 290.0112 shall also apply
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. Internal

Revenue Code also includes any uncodified provision in federal law that relates to provisions

of the Internal Revenue Code that are incorporated into Minnesota law.

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EFFECTIVE DATE.

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This section is effective the day following final enactment, except

the changes incorporated by federal changes are effective retroactively at the same time as

the changes were effective for federal purposes.

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Sec. 4.

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[290.0112] CONFORMITY TO CERTAIN FEDERAL TAX CHANGES.

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Subdivision 1.

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Adopting Internal Revenue Code changes.

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For the purposes of this

chapter, "Internal Revenue Code," as defined in section 290.01, subdivisions 19 and 31,

includes the sections of federal law specified in this section as enacted or amended through

March 1, 2026.

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Subd. 2.

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One Big Beautiful Bill Act, 2025.

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"Internal Revenue Code" includes the

following provisions in Public Law 119-21:

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(1) section 70301;

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(2) section 70307;

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(3) section 70404;

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(4) section 70405;

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(5) section 70434; and

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(6) section 70603.

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EFFECTIVE DATE.

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This section is effective the day following final enactment, except

the changes incorporated by federal changes are effective retroactively at the same time as

the changes were effective for federal purposes.

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Sec. 5.

Minnesota Statutes 2024, section 290A.03, subdivision 15, is amended to read:

Subd. 15.

Internal Revenue Code.

"Internal Revenue Code" means the Internal Revenue

Code of 1986, as amended through May 1, 2023
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, except the sections of federal law in section

290.0112 shall also apply
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.

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EFFECTIVE DATE.

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This section is effective the day following final enactment, except

the changes incorporated by federal changes are effective retroactively at the same time as

the changes were effective for federal purposes.

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Sec. 6.

Minnesota Statutes 2024, 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) "Commissioner" means the commissioner of revenue or any person to whom the

commissioner has delegated functions under this chapter.

(2) "Federal gross estate" means the gross estate of a decedent as required to be valued

and otherwise determined for federal estate tax purposes under the Internal Revenue Code,

increased by the value of any property in which the decedent had a qualifying income interest

for life and for which an election was made under section
291.03, subdivision 1d
, for

Minnesota estate tax purposes, but was not made for federal estate tax purposes.

(3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986,

as amended through May 1, 2023
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, except the sections of federal law in section 290.0112

shall also apply
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.

(4) "Minnesota gross estate" means the federal gross estate of a decedent after (a)

excluding therefrom any property included in the estate which has its situs outside Minnesota,

and (b) including any property omitted from the federal gross estate which is includable in

the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.

(5) "Nonresident decedent" means an individual whose domicile at the time of death

was not in Minnesota.

(6) "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.

(7) "Resident decedent" means an individual whose domicile at the time of death was

in Minnesota. The provisions of section
290.01, subdivision 7
, paragraphs (c) and (d), apply

to determinations of domicile under this chapter.

(8) "Situs of property" means, with respect to:

(i) real property, the state or country in which it is located;

(ii) tangible personal property, the state or country in which it was normally kept or

located at the time of the decedent's death or for a gift of tangible personal property within

three years of death, the state or country in which it was normally kept or located when the

gift was executed;

(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue

Code, owned by a nonresident decedent and that is normally kept or located in this state

because it is on loan to an organization, qualifying as exempt from taxation under section

501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is

deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and

(iv) intangible personal property, the state or country in which the decedent was domiciled

at death or for a gift of intangible personal property within three years of death, the state or

country in which the decedent was domiciled when the gift was executed.

For a nonresident decedent with an ownership interest in a pass-through entity with

assets that include real or tangible personal property, situs of the real or tangible personal

property, including qualified works of art, is determined as if the pass-through entity does

not exist and the real or tangible personal property is personally owned by the decedent. If

the pass-through entity is owned by a person or persons in addition to the decedent, ownership

of the property is attributed to the decedent in proportion to the decedent's capital ownership

share of the pass-through entity.

(9) "Pass-through entity" includes the following:

(i) an entity electing S corporation status under section 1362 of the Internal Revenue

Code;

(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;

(iii) a single-member limited liability company or similar entity, regardless of whether

it is taxed as an association or is disregarded for federal income tax purposes under Code

of Federal Regulations, title 26, section 301.7701-3; or

(iv) a trust to the extent the property is includable in the decedent's federal gross estate;

but excludes

(v) an entity whose ownership interest securities are traded on an exchange regulated

by the Securities and Exchange Commission as a national securities exchange under section

6 of the Securities Exchange Act, United States Code, title 15, section 78f.

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EFFECTIVE DATE.

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This section is effective the day following final enactment, except

the changes incorporated by federal changes are effective retroactively at the same time as

the changes were effective for federal purposes.

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ARTICLE 2

INCOME AND CORPORATE FRANCHISE TAXES

Section 1.

Minnesota Statutes 2024, section 41A.30, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have

the meanings given.

(b) "Aircraft" has the meaning given in section
296A.01, subdivision 3
.

(c) "Aviation gasoline" has the meaning given in section
296A.01, subdivision 7
.

(d) "Commissioner" means the commissioner of agriculture.

(e) "Jet fuel" has the meaning given in section
296A.01, subdivision 8
.

(f) "Qualifying taxpayer" means a taxpayer, as defined in section
290.01, subdivision

6, that is engaged in the business of:

(1) producing sustainable aviation fuel; or

(2) blending sustainable aviation fuel with aviation gasoline or jet fuel.

(g) "Sustainable aviation fuel" means liquid fuel that:

(1) is derived from
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:
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(i)
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biomass, as defined in section
41A.15, subdivision 2e
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, that is produced in the United

States, provided that any agricultural feedstocks are from planted crops and crop residue

harvested from agricultural land cleared or cultivated any time prior to December 19, 2007,

that is either actively managed or fallow;
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(ii) gaseous carbon oxides; or

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(iii) hydrogen that has a carbon intensity not greater than four kilograms of carbon

dioxide equivalent per kilogram of hydrogen produced
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;

(2) is not derived from palm fatty acid distillates; and

(3) achieves at least a 50 percent life cycle greenhouse gas emissions reduction in

comparison with petroleum-based aviation gasoline, aviation turbine fuel, and jet fuel as

determined by a test that shows:

(i) that the fuel production pathway achieves at least a 50 percent life cycle greenhouse

gas emissions reduction in comparison with petroleum-based aviation gasoline, aviation

turbine fuel, and jet fuel utilizing the most recent version of Argonne National Laboratory's

Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) model

that accounts for reduced emissions throughout the fuel production process; or

(ii) that the fuel production pathway achieves at least a 50 percent reduction of the

aggregate attributional core life cycle emissions and the positive induced land use change

values under the life cycle methodology for sustainable aviation fuels adopted by the

International Civil Aviation Organization with the agreement of the United States.

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EFFECTIVE DATE.

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This section is effective retroactively for taxable years beginning

after December 31, 2024, for sustainable aviation fuel sold after June 30, 2025.

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Sec. 2.

Minnesota Statutes 2024, section 41A.30, subdivision 2, is amended to read:

Subd. 2.

Tax credit establishment.

(a) A qualifying taxpayer may claim a tax credit

against the tax due under chapter 290 equal to $1.50 for each gallon of sustainable aviation

fuel that is:

(1) produced in Minnesota or blended with aviation or gasoline or jet fuel in Minnesota
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,

provided that carbon oxides sequestered as part of the production process are not used as a

tertiary injectant in a qualified enhanced oil recovery project
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; and

(2) sold in Minnesota to a purchaser who certifies that the sustainable aviation fuel is

for use as fuel in an aircraft departing from an airport in Minnesota.

(b) The credit may be claimed only after approval and certification by the commissioner

and is limited to the amount stated on the credit certificate issued under subdivision 3. A

qualifying taxpayer must apply to the commissioner for certification and allocation of a

credit in a form and manner prescribed by the commissioner.

(c) A qualifying taxpayer may claim a credit for blending or producing sustainable

aviation fuel, but not both. If sustainable aviation fuel is blended with aviation gasoline or

jet fuel, the credit is allowed only for the portion of sustainable aviation fuel that is included

in the blended fuel.

(d) If the amount of credit that the taxpayer is eligible to receive under this section

exceeds the liability for tax under chapter 290, the commissioner of revenue must refund

the excess to the taxpayer.

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(e) Subject to the commissioner's certification, a qualifying taxpayer may claim a

supplemental tax credit against the tax due under chapter 290 equal to the rate of $0.02 per

gallon for each additional whole percentage carbon intensity reduction beyond 50 percent,

but capped at $2.00 per gallon.

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EFFECTIVE DATE.

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This section is effective retroactively for taxable years beginning

after December 31, 2024, for sustainable aviation fuel sold after June 30, 2025.

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Sec. 3.

Minnesota Statutes 2025 Supplement, section 41A.30, subdivision 5, is amended

to read:

Subd. 5.

Allocation limits.

(a) Subject to additional rollover allocation as provided in

paragraph (b), for tax credits allowed under subdivision 2, the commissioner must not issue

credit certificates for more than
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$11,600,000
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$36,900,000
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in total, allocated as follows:

(1) $7,400,000 for fiscal year 2025;
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and
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(2) $2,100,000 for
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each of
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fiscal
deleted text begin
years
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year
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2026
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and 2027
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;
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(3) $7,400,000 for fiscal year 2027;

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(4) $5,300,000 for fiscal year 2028; and

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(5) $2,100,000 for each fiscal year from 2029 through 2035
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.

(b) Any portion of a fiscal year's credits that is not allocated by the commissioner does

not cancel and may be carried forward to subsequent fiscal years until
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all credits have been

allocated
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the entire allocation has been made
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, except that the commissioner must not issue

any credit certificates for fiscal years beginning after June 30,
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2030
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2035
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, and any unallocated

amounts cancel on that date.

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EFFECTIVE DATE.

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This section is effective retroactively for taxable years beginning

after December 31, 2025.

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Sec. 4.

Minnesota Statutes 2024, section 41A.30, subdivision 7, is amended to read:

Subd. 7.

Expiration.

This section expires for taxable years beginning after December

31,
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2030
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2035
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.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 5.

Minnesota Statutes 2025 Supplement, section 41B.0391, subdivision 2, is amended

to read:

Subd. 2.

Tax credit for owners of agricultural assets.

(a) An owner of agricultural

assets may take a credit against the tax due under chapter 290 for the sale or rental of

agricultural assets to a beginning farmer
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in the amount allocated by the authority under

subdivision 4
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. An owner of agricultural assets is eligible for allocation of a credit equal to:

(1) eight percent of the lesser of the sale price or the fair market value of the agricultural

asset, up to a maximum of $50,000;

(2) ten percent of the gross rental income in each of the first, second, and third years of

a rental agreement, up to a maximum of $7,000 per year; or

(3) 15 percent of the cash equivalent of the gross rental income in each of the first,

second, and third years of a share rent agreement, up to a maximum of $10,000 per year.

(b) A qualifying rental agreement includes cash rent of agricultural assets or a share rent

agreement. The agricultural asset must be rented at prevailing community rates as determined

by the authority.

(c) The credit may be claimed only after approval and certification by the authority, and

is limited to the amount stated on the certificate issued under subdivision 4. An owner of

agricultural assets must apply to the authority for certification and allocation of a credit, in

a form and manner prescribed by the authority.

(d) An owner of agricultural assets or beginning farmer may terminate a rental agreement,

including a share rent agreement, for reasonable cause upon approval of the authority. If a

rental agreement is terminated without the fault of the owner of agricultural assets, the tax

credits shall not be retroactively disallowed. In determining reasonable cause, the authority

must look at which party was at fault in the termination of the agreement. If the authority

determines the owner of agricultural assets did not have reasonable cause, the owner of

agricultural assets must repay all credits received as a result of the rental agreement to the

commissioner of revenue. The repayment is additional income tax for the taxable year in

which the authority makes its decision or when a final adjudication under subdivision 5,

paragraph (a), is made, whichever is later.

(e) The credit is limited to the liability for tax as computed under chapter 290 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 beginning farmer incentive credit carryover according

to section
290.06, subdivision 37
.

(f) For purposes of the credit for the sale of agricultural land only, the family member

definitional exclusions in subdivision 1, paragraph (c), clauses (4) and (5), do not apply.

For a sale to a family member to qualify for the credit, the sales price of the agricultural

land must equal or exceed the assessed value of the land as of the date of the sale. For

purposes of this paragraph, "sale to a family member" means a sale to a beginning farmer

in which the beginning farmer or the beginning farmer's spouse is a family member of:

(1) the owner of the agricultural land; or

(2) a partner, member, shareholder, or trustee of the owner of the agricultural land.

(g) For a sale to a limited land access farmer, the credit rate under paragraph (a), clause

(1), is 12 percent rather than eight percent.

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EFFECTIVE DATE.

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This section is effective for taxable years beginning after December

31, 2025.

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Sec. 6.

Minnesota Statutes 2025 Supplement, section 41B.0391, subdivision 4, is amended

to read:

Subd. 4.

Authority duties.

(a) The authority shall:

(1) approve and certify or recertify beginning farmers as eligible for the program under

this section;

(2) approve and certify or recertify owners of agricultural assets as eligible for the tax

credit under subdivision 2
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subject to the allocation limits in paragraph (c)
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;

(3) provide necessary and reasonable assistance and support to beginning farmers for

qualification and participation in financial management programs approved by the authority;

(4) refer beginning farmers to agencies and organizations that may provide additional

pertinent information and assistance; and

(5) notwithstanding section
41B.211
, the Rural Finance Authority must share information

with the commissioner of revenue to the extent necessary to administer provisions under

this subdivision and section
290.06, subdivisions 37
and 38. The Rural Finance Authority

must annually notify the commissioner of revenue of approval and certification or

recertification of beginning farmers and owners of agricultural assets under this section.

For credits under subdivision 2, the notification must include the amount of credit approved

by the authority and stated on the credit certificate.

(b) The certification of a beginning farmer or an owner of agricultural assets under this

section is valid for the year of the certification and the two following years, after which

time the beginning farmer or owner of agricultural assets must apply to the authority for

recertification.

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(c) For credits for owners of agricultural assets allowed under subdivision 2, the authority

must not allocate more than $6,500,000 for taxable years beginning after December 31,

2022, and before January 1, 2024, and $4,000,000 for taxable years beginning after December

31, 2023. The authority must allocate credits on a first-come, first-served basis beginning

on January 1 of each year, except that recertifications for the second and third years of

credits under subdivision 2, paragraph (a), clauses (1) and (2), have first priority. Any

amount authorized but not allocated for taxable years ending before January 1, 2023, is

canceled and is not allocated for future taxable years. For taxable years beginning after

December 31, 2022, any amount authorized but not allocated in any taxable year does not

cancel and is added to the allocation for the next taxable year. For each taxable year, 50

percent of newly allocated credits must be allocated to limited land access farmers. Any

portion of a taxable year's newly allocated credits that is reserved for limited land access

farmers that is not allocated by September 30 of the taxable year is available for allocation

to other credit allocations beginning on October 1.

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, 2025.

new text end

Sec. 7.

Minnesota Statutes 2025 Supplement, section 41B.0391, subdivision 6a, is amended

to read:

Subd. 6a.

Report to legislature.

(a) No later than
deleted text begin
February
deleted text end

new text begin
March
new text end
1 each year the Rural

Finance Authority, in consultation with the commissioner of revenue, must provide a report

to the chairs and ranking minority members of the legislative committees having jurisdiction

over agriculture, economic development, rural development, and taxes, in compliance with

sections
3.195
and
3.197
, on the beginning farmer tax credits under this section.

(b) The report must include background information on beginning farmers in Minnesota

and any other information the commissioner and authority find relevant to evaluating the

effect of the credits on increasing opportunities for and the number of beginning farmers.

(c) For credits issued under subdivision 2, paragraph (a), clauses (1) to (3), the report

must include:

(1) the number and amount of credits issued under each clause;

(2) the geographic distribution of credits issued under each clause;

(3) the type of agricultural assets for which credits were issued under clause (1);

(4) the number and geographic distribution of beginning farmers whose purchase or

rental of assets resulted in credits for the seller or owner of the asset;

(5) the number and amount of credits disallowed under subdivision 2, paragraph (d);
new text begin

and
new text end

(6) data on the number of beginning farmers by geographic region, including:

(i) the number of beginning farmers by race and ethnicity, as those terms are applied in

the 2020 United States Census; and

(ii) to the extent available, the number of beginning farmers who are limited land access

farmers
deleted text begin
; and
deleted text end
new text begin
.
new text end

deleted text begin

(7) the number and amount of credit applications that exceeded the allocation available

in each year.

deleted text end

(d) For credits issued under subdivision 3, the report must include:

(1) the number and amount of credits issued;

(2) the geographic distribution of credits;

(3) a listing and description of each approved financial management program for which

credits were issued; and

(4) a description of the approval procedure for financial management programs not on

the list maintained by the authority, as provided in subdivision 3, paragraph (a).

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for reports due for credits issued for

taxable years beginning after December 31, 2025.

new text end

Sec. 8.

Minnesota Statutes 2024, section 116U.27, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have

the meanings given.

(b) "Allocation
deleted text begin
certificate
deleted text end
new text begin
letter
new text end
" means a
deleted text begin
certificate
deleted text end
new text begin
letter
new text end
issued by the commissioner

to a taxpayer upon receipt and approval of an initial application for a credit for a project

that has not yet been completed.

(c) "Application" means the application for a credit under subdivision 4.

new text begin

(d) "Below-the-line crew position" means a position that handles the technical execution

of film production, including camera operators, sound technicians, grips, electricians, and

other specialized crafts positions.

new text end

deleted text begin

(d)
deleted text end

new text begin
(e)
new text end
"Credit certificate" means a certificate issued by the commissioner upon receipt

and approval of the cost verification report in subdivision 4, paragraph (e).

deleted text begin

(e)
deleted text end
new text begin
(f)
new text end
"Director" means the director of Explore Minnesota.

deleted text begin

(f)
deleted text end
new text begin
(g)
new text end
"Eligible production costs" means eligible production costs as defined in section

116U.26
, paragraph (b), clause (1), incurred in Minnesota that are directly attributable to

the production of a film project in Minnesota.

deleted text begin

(g)
deleted text end
new text begin
(h)
new text end
"Film" has the meaning given in section
116U.26
, paragraph (b), clause (2).

new text begin

(i) "Key creative role" means a project director, producer, showrunner, editor, actor,

writer, director of photography, production designer, cinematographer, or equivalent project

role.

new text end

new text begin

(j) "Minnesota script or screenplay production" means a script or screenplay created by

a Minnesota resident that is produced into a film.

new text end

deleted text begin

(h)
deleted text end
new text begin
(k)
new text end
"Project" means a film
new text begin
, including television programming
new text end
:

(1) that includes the promotion of Minnesota;

(2) for which the taxpayer has expended at least
deleted text begin
$1,000,000
deleted text end
new text begin
$400,000
new text end
in any consecutive

12-month period beginning after expenditures are first paid in Minnesota for eligible

production costs; and

(3) to the extent practicable, that employs Minnesota residents.

deleted text begin

Television commercials are exempt from the requirement under clause (1).

deleted text end

new text begin

Project also includes a television commercial or Minnesota script or screenplay production

for which the taxpayer has expended at least $150,000 in any consecutive 12-month period

beginning after expenditures are first paid in Minnesota for eligible production costs and,

to the extent practicable, that employs Minnesota residents.

new text end

deleted text begin

(i)
deleted text end
new text begin
(l)
new text end
"Promotion of Minnesota" or "promotion" means visible display of a static or

animated logo, approved by the director, that promotes Minnesota within its presentation

in the end credits for the life of the project.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for taxable years beginning after December

31, 2026.

new text end

Sec. 9.

Minnesota Statutes 2025 Supplement, section 116U.27, subdivision 2, is amended

to read:

Subd. 2.

Credit allowed.

new text begin
(a)
new text end
A taxpayer is eligible for a credit up to
deleted text begin
25
deleted text end
new text begin
40
new text end
percent of

eligible production costs paid in any consecutive 12-month period as described in subdivision

1
deleted text begin
, paragraph (h)
deleted text end
. A taxpayer may only claim a credit if the taxpayer was issued a credit

certificate under subdivision 4.

new text begin

(b) A taxpayer is eligible for an additional five percent credit totaling up to 45 percent

if the project meets the requirements of paragraph (a), and:

new text end

new text begin

(1) employs a Minnesota resident in a key creative role;

new text end

new text begin

(2) films outside of the seven-county metropolitan area, as defined in section 473.121,

subdivision 2; or

new text end

new text begin

(3) hires a majority of Minnesota residents in below-the-line crew positions.

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, 2026.

new text end

Sec. 10.

Minnesota Statutes 2024, section 116U.27, subdivision 4, is amended to read:

Subd. 4.

Applications; allocations.

(a) To qualify for a credit under this section, a

taxpayer must submit to the director an application for a credit in the form prescribed by

the director, in consultation with the commissioner of revenue.

(b) Upon approving an application for a credit that meets the requirements of this section,

the director shall issue allocation
deleted text begin
certificates
deleted text end
new text begin
letters
new text end
that:

(1) verify eligibility for the credit;

(2) state the amount of credit anticipated for the eligible project, with the credit amount

up to
deleted text begin
25
deleted text end
new text begin
45
new text end
percent of eligible project costs; and

(3) state the taxable year in which the credit is allocated.

(c) The director must not issue allocation
deleted text begin
certificates
deleted text end
new text begin
letters
new text end
for more than $24,950,000

of credits each year. If the entire amount is not allocated in that taxable year, any remaining

amount is available for allocation for the four following taxable years until the entire

allocation has been made. The director must not award any credits for taxable years beginning

after December 31, 2030, and any unallocated amounts cancel on that date.

(d) The director must allocate credits on a first-come, first-served basis.

(e) Upon completion of a project, the taxpayer shall submit to the director a report

prepared by an independent certified public accountant licensed in the state of Minnesota

to verify the amount of eligible production costs related to the project. The report must be

prepared in accordance with generally accepted accounting principles. Upon receipt and

approval of the cost verification report and other documents required by the director, the

director shall determine the final amount of eligible production costs and issue a credit

certificate to the taxpayer. The credit may not exceed the anticipated credit amount on the

allocation
deleted text begin
certificate
deleted text end
new text begin
letter
new text end
. If the credit is less than the anticipated amount on the allocation

credit, the difference is returned to the amount available for allocation under paragraph (c).

To claim the credit under section
290.06
, subdivision 39, or
297I.20, subdivision 4
, a taxpayer

must include a copy of the credit certificate as part of the taxpayer's return.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for taxable years beginning after December

31, 2026.

new text end

Sec. 11.

Minnesota Statutes 2024, section 116U.27, subdivision 5, is amended to read:

Subd. 5.

Report required.

By
deleted text begin
January 15, 2025
deleted text end
new text begin
March 1, 2027, and each year thereafter
new text end
,

the commissioner of revenue, in consultation with the director, must provide a report to the

chairs and ranking minority members of the legislative committees with jurisdiction over

economic development and taxes. The report must comply with sections
3.195
and
3.197
,

and must detail the following:

(1) the amount of credit certifications issued annually;

(2) the number of applications submitted, the number of allocation
deleted text begin
certificates
deleted text end
new text begin
letters
new text end

issued, the amount of allocation
deleted text begin
certificates
deleted text end
new text begin
letters
new text end
issued, the number of reports submitted

upon completion of a project, and the number of credit certificates issued;

(3) the types of projects eligible for the credit;

(4) the total economic impact of the credit in Minnesota, including the calendar year

over calendar year percentage changes in the number of jobs held by Minnesota residents

in businesses having a primary North American Industry Classification System code of

512110 as reported to the commissioner, for calendar years
deleted text begin
2019
deleted text end
new text begin
2027
new text end
through
deleted text begin
2023
deleted text end
new text begin
2030
new text end
;

(5) the number of taxpayers per tax type which are assignees of credit certificates under

subdivision 3;

(6) annual Minnesota taxes paid by businesses having a primary North American Industry

Classification System code of 512110, for taxable years beginning after December 31,
deleted text begin
2018
deleted text end
new text begin

2026
new text end
, and before January 1,
deleted text begin
2024
deleted text end
new text begin
2031
new text end
; and

(7) any other information the commissioner of revenue, in consultation with the director,

deems necessary for purposes of claiming and administering the credit.

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 2024, section 290.0132, subdivision 11, is amended to read:

Subd. 11.

National Guard and reserve compensation.

(a) Compensation paid to

members of the Minnesota National Guard
new text begin
, the National Guard of a neighboring state,
new text end
or

other reserve components of the United States military for active service, including

compensation for services performed under the Active Guard Reserve (AGR) program, is

a subtraction.

(b) For purposes of this subdivision,
deleted text begin
"active service" means
deleted text end
new text begin
the following terms have

the meanings given
new text end
:

(1)
deleted text begin
state active service as defined in section
190.05, subdivision 5a
, clause (1)
deleted text end
new text begin
"active

service" means:
new text end

new text begin

(i) service or duty on behalf of the state or neighboring states in case of actual or

threatened public disaster, war, riot, tumult, breach of the peace, resistance of process, or

whenever called upon in aid of state civil authority;

new text end

new text begin

(ii) service or duty under United States Code, title 32, as amended through December

31, 1983, and travel to or from that service or duty
new text end
; or

new text begin

(iii) service performed under section 190.08, subdivision 3; and

new text end

(2)
deleted text begin
federally funded state active service as defined in section
190.05, subdivision 5b
,

and includes service performed under section
190.08, subdivision 3
deleted text end
new text begin
"neighboring state"

means North Dakota, South Dakota, Iowa, or Wisconsin
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, 2025.

new text end

Sec. 13.

Minnesota Statutes 2024, section 290.0681, subdivision 3, is amended to read:

Subd. 3.

Applications; allocations.

(a) To qualify for a credit or grant under this section,

the developer of a project must apply to the office before the rehabilitation begins. The

application must contain the information and be in the form prescribed by the office. The

office may collect a fee for application of up to 0.5 percent of qualified rehabilitation

expenditures, up to $40,000, based on estimated qualified rehabilitation expenditures, to

offset costs associated with personnel and administrative expenses related to administering

the credit and preparing the economic impact report in subdivision 9. Application fees are

deposited in the account. The application must indicate if the application is for a credit or

a grant in lieu of the credit or a combination of the two and designate the taxpayer qualifying

for the credit or the recipient of the grant.

(b) Upon approving an application for credit, the office shall issue allocation certificates

that:

(1) verify eligibility for the credit or grant;

(2) state the amount of credit or grant anticipated with the project, with the credit amount

equal to 100 percent and the grant amount equal to 90 percent of the federal credit anticipated

in the application;

(3) state that the credit or grant allowed may increase or decrease if the federal credit

the project receives at the time it is placed in service is different than the amount anticipated

at the time the allocation certificate is issued; and

(4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer or

grant recipient is entitled to receive one-fifth of the total amount of either the credit or the

grant at the time the project is placed in service, provided that date is within
deleted text begin
three
deleted text end

new text begin
six
new text end
calendar

years following the issuance of the allocation certificate.

(c) The office, in consultation with the commissioner, shall determine if the project is

eligible for a credit or a grant under this section and must notify the developer in writing

of its determination. Eligibility for the credit is subject to review and audit by the

commissioner.

(d) The federal credit recapture and repayment requirements under section 50 of the

Internal Revenue Code do not apply to the credit allowed under this section.

(e) Any decision of the office under paragraph (c) may be challenged as a contested case

under chapter 14. The contested case proceeding must be initiated within 45 days of the

date of written notification by the office.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective retroactively for projects for which an

allocation certificate was issued after June 30, 2021.

new text end

Sec. 14.

Minnesota Statutes 2024, section 290.0681, subdivision 4, is amended to read:

Subd. 4.

Credit certificates; grants.

(a)(1) The developer of a project for which the

office has issued an allocation certificate must notify the office when the project is placed

in service. Upon verifying that the project has been placed in service, and was allowed a

federal credit, the office must issue a credit certificate to the taxpayer designated in the

application or must issue a grant to the recipient designated in the application. The credit

certificate must state the amount of the credit.

(2) The credit amount equals the federal credit allowed for the project.

(3) The grant amount equals 90 percent of the federal credit allowed for the project.

(b) The recipient of a credit certificate may assign the certificate to another taxpayer

before the first one-fifth payment is claimed, which is then allowed the credit under this

section or section
297I.20, subdivision 3
.
new text begin
Before the payment is claimed but after the first

assignment, the first assignee may assign the credit certificate in whole to a second assignee.
new text end

An assignment is not valid unless the assignee notifies the commissioner within 30 days of

the date that the assignment is made. The commissioner shall prescribe the forms necessary

for notifying the commissioner of the assignment of a credit certificate and for claiming a

credit by assignment.
new text begin
The original credit certificate recipient and each assignee must file a

return with the commissioner for the taxable year that the project is placed in service.
new text end

(c) Credits passed through to partners, members, shareholders, or owners pursuant to

subdivision 5 are not an assignment of a credit certificate under this subdivision.

(d) A grant agreement between the office and the recipient of a grant may allow the

grant to be issued to another individual or entity.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for applications for allocation certificates

submitted after June 30, 2026.

new text end

Sec. 15.

Minnesota Statutes 2024, section 290.0683, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have

the meanings given.

(b) "Agency" means the Minnesota Housing Finance Agency.

new text begin

(c) "Greater Minnesota" means the area of Minnesota located outside of the metropolitan

area.

new text end

new text begin

(d) "Metropolitan area" has the meaning given in section 473.121, subdivision 2.

new text end

deleted text begin

(c)
deleted text end
new text begin
(e)
new text end
"Minnesota housing tax credit contribution account" or "account" means the

account established in section
462A.40
.

deleted text begin

(d)
deleted text end
new text begin
(f)
new text end
"Qualified project" means a project that qualifies for a grant or loan under section

462A.40
.

deleted text begin

(e)
deleted text end
new text begin
(g)
new text end
"Taxpayer" means a taxpayer as defined in section
290.01, subdivision 6
, or a

taxpayer as defined in section
297I.01, subdivision 16
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for taxable years beginning after December

31, 2026.

new text end

Sec. 16.

Minnesota Statutes 2024, section 290.0683, subdivision 3, is amended to read:

Subd. 3.

Allocation.

(a) To qualify for the credit, a taxpayer must contribute to the

Minnesota housing tax credit contribution account. A taxpayer may indicate that a

contribution is intended for a specific qualified project
new text begin
, subject to the limitations in paragraph

(b)
new text end
. A taxpayer is prohibited from contributing to certain projects as provided in section

462A.40, subdivision 3
.

new text begin

(b) For each taxable year, the agency must reserve 50 percent of credits for contributions

to qualified projects located in greater Minnesota. Any portion of a taxable year's credits

reserved for contributions to qualified projects located in greater Minnesota that is not

allocated by the agency by September 30 of each year is available for allocation to credit

applications for contributions to other qualified projects beginning on October 1.

new text end

deleted text begin

(b)
deleted text end
new text begin
(c)
new text end
The aggregate amount of tax credits allowed to all eligible contributors is limited

to $9,900,000 annually.

deleted text begin

(c)
deleted text end
new text begin
(d)
new text end
Within 30 days after a taxpayer contributes to the account, the agency must file

with the contributing taxpayer a credit certificate statement or return any amounts to the

taxpayer as provided in this paragraph. The agency must send a copy of the credit certificate

to the commissioner. If there are insufficient credits to match the contribution, the agency

must not issue a credit certificate for the amount of the contribution for which there are

insufficient credits, and must return that amount to the taxpayer before issuing any credit

certificate.

deleted text begin

(d)
deleted text end
new text begin
(e)
new text end
The credit certificate must state the dollar amount of the contribution made by

the taxpayer and the date the payment was received by the account, and indicate if the

contribution was intended for a specific qualified project.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for taxable years beginning after December

31, 2026.

new text end

Sec. 17.

Minnesota Statutes 2024, section 290.92, is amended by adding a subdivision to

read:

new text begin

Subd. 32.

new text end

new text begin

Nonconformity to certain worker classification rules.

new text end

new text begin

For purposes of

employee classification under this section, "Internal Revenue Code" does not include section

530 of Public Law 95-600, as amended.

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, 2026.

new text end

Sec. 18.

Minnesota Statutes 2024, section 462A.40, subdivision 3, is amended to read:

Subd. 3.

Eligible recipients; definitions; restrictions; use of funds.

(a) The agency

may award a grant or a loan to any recipient that qualifies under subdivision 2. The agency

must not award a grant or a loan to a disqualified individual or disqualified business.

(b) For the purposes of this subdivision disqualified individual means:

(1) an individual who or an individual whose immediate family member made a

contribution to the account in the current or prior taxable year and received a credit certificate;

(2) an individual who or an individual whose immediate family member owns the housing

for which the grant or loan will be used;

(3) an individual who meets the following criteria:

(i) the individual is an officer or principal of a business entity; and

(ii) that business entity made a contribution to the account in the current or previous

taxable year and received a credit certificate; or

(4) an individual who meets the following criteria:

(i) the individual directly owns, controls, or holds the power to vote 20 percent or more

of the outstanding securities of a business entity; and

(ii) that business entity made a contribution to the account in the current or previous

taxable year and received a credit certificate.

(c) For the purposes of this subdivision disqualified business means a business entity

that:

(1) made a contribution to the account in the current or prior taxable year and received

a credit certificate;

(2) has an officer or principal who is an individual who made a contribution to the

account in the current or previous taxable year and received a credit certificate; or

(3) meets the following criteria:

(i) the business entity is directly owned, controlled, or is subject to the power to vote 20

percent or more of the outstanding securities by an individual or business entity; and

(ii) that controlling individual or business entity made a contribution to the account in

the current or previous taxable year and received a credit certificate.

(d) For purposes of this subdivision, "immediate family" means the taxpayer's spouse,

parent or parent's spouse, sibling or sibling's spouse, or child or child's spouse. For a married

couple filing a joint return, the limitations in this subdivision apply collectively to the

taxpayer and spouse.

(e) Before applying for a grant or loan, all recipients must sign a disclosure that the

disqualifications under this subdivision do not apply. The Minnesota Housing Finance

Agency must prescribe the form of the disclosure. The Minnesota Housing Finance Agency

may rely on the disclosure to determine the eligibility of recipients under paragraph (a).

(f) The agency may award grants or loans to a city as defined in section
462A.03
,

subdivision 21; a federally recognized American Indian Tribe or subdivision located in

Minnesota; a Tribal housing corporation; a private developer; a nonprofit organization; a

housing and redevelopment authority under sections
469.001
to
469.047
; a public housing

authority or agency authorized by law to exercise any of the powers granted by sections

469.001
to
469.047
; or the owner of the housing. The provisions of subdivision 2, and

paragraphs (a) to (e) and (g) of this subdivision, regarding the use of funds and eligible

recipients apply to grants and loans awarded under this paragraph.

(g)
new text begin
Except for projects receiving funding under section 462A.39,
new text end
eligible recipients must

use the funds to serve households that meet the income limits as provided in section
462A.33,

subdivision 5
.

ARTICLE 3

PROPERTY TAXES

Section 1.

Minnesota Statutes 2024, section 272.01, subdivision 2, is amended to read:

Subd. 2.

Exempt property used by private entity for profit.

(a) When any real or

personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is leased,

loaned, or otherwise made available and used by a private individual, association, or

corporation in connection with a business conducted for profit, there shall be imposed a

tax, for the privilege of so using or possessing such real or personal property, in the same

amount and to the same extent as though the lessee or user was the owner of such property.

(b) The tax imposed by this subdivision shall not apply to:

(1) property leased or used as a concession in or relative to the use in whole or part of

a public park, market, fairgrounds, port authority, economic development authority

established under chapter 469, municipal auditorium, municipal parking facility, municipal

museum, or municipal stadium;

(2) property of an airport owned by a city, town, county, or group thereof which is:

(i) leased to or used by any person or entity including a fixed base operator; and

(ii) used as a hangar for the storage
deleted text begin
or
deleted text end
new text begin
,
new text end
repair
new text begin
, or manufacture
new text end
of aircraft or to provide

aviation goods, services, or facilities to the airport or general public;

deleted text begin

the exception from taxation provided in this clause does not apply to:

deleted text end

deleted text begin

(i) property located at an airport owned or operated by the Metropolitan Airports

Commission or by a city of over 50,000 population according to the most recent federal

census or such a city's airport authority; or

deleted text end

deleted text begin

(ii) hangars leased by a private individual, association, or corporation in connection with

a business conducted for profit other than an aviation-related business;

deleted text end

(3) property constituting or used as a public pedestrian ramp or concourse in connection

with a public airport;

(4)
new text begin
except as provided in paragraph (f),
new text end
property constituting or used as a passenger

check-in area or ticket sale counter, boarding area, or luggage claim area in connection with

a public airport but not the airports owned or operated by the Metropolitan Airports

Commission or cities of over 50,000 population or an airport authority therein. Real estate

owned by a municipality in connection with the operation of a public airport and leased or

used for agricultural purposes is not exempt;

(5) property leased, loaned, or otherwise made available to a private individual,

corporation, or association under a cooperative farming agreement made pursuant to section

97A.135
;
deleted text begin
or
deleted text end

(6) property leased, loaned, or otherwise made available to a private individual,

corporation, or association under section
272.68, subdivision 4
deleted text begin
.
deleted text end
new text begin
; or
new text end

new text begin

(7) property owned by a nonprofit conservation organization that is leased, loaned, or

otherwise made available to a private individual, corporation, or association for grazing

activities that further the nonprofit conservation organization's conservation objectives for

the property, as documented in the organization's management or restoration plan.

new text end

new text begin

(c) Except as provided in paragraph (f), the exception from taxation provided in paragraph

(b), clause (2), does not apply to:

new text end

new text begin

(1) property located at an airport owned or operated by the Metropolitan Airports

Commission or by a city of over 50,000 population according to the most recent federal

census or such a city's airport authority; or

new text end

new text begin

(2) hangars leased by a private individual, association, or corporation in connection with

a business conducted for profit other than an aviation-related business.

new text end

deleted text begin

(c)
deleted text end
new text begin
(d)
new text end
Taxes imposed by this subdivision are payable as in the case of personal property

taxes and shall be assessed to the lessees or users of real or personal property in the same

manner as taxes assessed to owners of real or personal property, except that such taxes shall

not become a lien against the property. When due, the taxes shall constitute a debt due from

the lessee or user to the state, township, city, county, and school district for which the taxes

were assessed and shall be collected in the same manner as personal property taxes. If

property subject to the tax imposed by this subdivision is leased or used jointly by two or

more persons, each lessee or user shall be jointly and severally liable for payment of the

tax.

deleted text begin

(d)
deleted text end
new text begin
(e)
new text end
The tax on real property of the federal government, the state or any of its political

subdivisions that is leased, loaned, or otherwise made available to a private individual,

association, or corporation and becomes taxable under this subdivision or other provision

of law must be assessed and collected as a personal property assessment. The taxes do not

become a lien against the real property.

new text begin

(f) Property of an airport that is:

new text end

new text begin

(1) located at an airport owned or operated by a city of over 50,000 but under 150,000

in population according to the most recent federal census or such a city's airport authority;

new text end

new text begin

(2) not owned or operated by the Metropolitan Airports Commission; and

new text end

new text begin

(3) used as a hangar for the storage, repair, or manufacture of aircraft or to provide

aviation goods, services, or facilities to the airport or general public, or used as a passenger

check-in area or ticket sale counter, boarding area, or luggage claim area, shall have the tax

imposed by this subdivision calculated as follows: for property taxes payable in 2027 through

2038, the net tax capacity of such property shall be reduced by 50 percent.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective beginning with property taxes payable

in 2027. For assessment year 2026 only, an exemption application under this section must

be filed with the county assessor by July 1, 2026.

new text end

Sec. 2.

Minnesota Statutes 2024, section 272.02, subdivision 101, is amended to read:

Subd. 101.

Certain property owned by an Indian tribe.

(a) Property is exempt that:

(1) is located in a city of the first class with a population less than 100,000 as of the

2010 federal census;

(2) was on January 1, 2016, and is for the current assessment, owned by a federally

recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota;

and

(3) is used exclusively as a medical clinic
new text begin
or for a parking lot used exclusively to serve

the medical clinic
new text end
.

(b) Property that qualifies for the exemption under this subdivision is limited to no more

than
deleted text begin
two contiguous
deleted text end
new text begin
five
new text end
parcels and structures that do not exceed, in the aggregate, 30,000

square feet. Property acquired for single-family housing, market-rate apartments, agriculture,

or forestry does not qualify for this exemption. The exemption created by this subdivision

expires with taxes payable in
deleted text begin
2028
deleted text end
new text begin
2038
new text end
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective beginning with assessment year 2027.

new text end

Sec. 3.

Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to

read:

new text begin

Subd. 109.

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 that are part of

an electric generation facility with more than 40 megawatts and less than 50 megawatts of

installed capacity and that meet the requirements of this subdivision are exempt from taxation

and payments in lieu of taxation. The facility must:

new text end

new text begin

(1) be designed to utilize natural gas as a primary fuel;

new text end

new text begin

(2) be owned and operated by a municipal power agency as defined in section 453.52,

subdivision 8;

new text end

new text begin

(3) be located within 1,000 feet of an existing natural gas pipeline;

new text end

new text begin

(4) satisfy a resource deficiency identified in an integrated resource plan filed under

section 216B.2422;

new text end

new text begin

(5) be located outside of the metropolitan area as defined in section 473.121, subdivision

2; and

new text end

new text begin

(6) have received, by resolution, the approval of the governing bodies of the city and

county in which the facility is located for the exemption of personal property provided in

this subdivision.

new text end

new text begin

(b) Construction of the facility must have commenced after January 1, 2026, and before

January 1, 2030. 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 beginning with property taxes payable

in 2029.

new text end

Sec. 4.

Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to

read:

new text begin

Subd. 110.

new text end

new text begin

Certain property owned by an Indian Tribe.

new text end

new text begin

(a) Property is exempt that:

new text end

new text begin

(1) is located in a city with a population greater than 12,400 but less than 12,800

according to the 2020 federal census;

new text end

new text begin

(2) was on January 1, 2026, and is for the current assessment, owned by a federally

recognized Indian Tribe, or its instrumentality, that is located within the state; and

new text end

new text begin

(3) is used to store medical clinic equipment and materials.

new text end

new text begin

(b) Property that qualifies for exemption under this subdivision is limited to one parcel.

Any portion of the property used for housing, parking facilities, agriculture, or forestry does

not qualify for this exemption.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective beginning with property taxes payable

in 2027. For assessment year 2026 only, an exemption application under this section must

be filed with the county assessor by July 1, 2026.

new text end

Sec. 5.

Minnesota Statutes 2024, 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 or section
477A.17
;

(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.

deleted text begin

(b)(i)
deleted text end
new text begin
(b)(1)
new text end
Agricultural property 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:

deleted text begin

(1)
deleted text end
new text begin
(i)
new text end
the agricultural property consists of at least 40 acres including undivided

government lots and correctional 40's;

deleted text begin

(2)
deleted text end
new text begin
(ii)
new text end
the owner, the owner's spouse, or
new text begin
grandparent,
new text end
a grandchild, child,
new text begin
stepchild,
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sibling,
deleted text begin
or
deleted text end
new text begin
uncle, aunt, nephew, niece,
new text end
parent
new text begin
, or stepparent
new text end
of the owner or of 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

(3)
deleted text end
new text begin
(iii)
new text end
both the owner of the agricultural property and the person who is actively farming

the agricultural property under
deleted text begin
clause (2)
deleted text end
new text begin
item (ii)
new text end
, are Minnesota residents;

deleted text begin

(4)
deleted text end
new text begin
(iv)
new text end
neither the owner nor the spouse of the owner claims another agricultural

homestead in Minnesota; and

deleted text begin

(5)
deleted text end

new text begin
(v)
new text end
neither the owner nor the person actively farming the agricultural property lives
deleted text begin

farther than four townships or cities, or a combination of four townships or cities, from the

agricultural property, 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 more than four townships or cities, or combination of

four townships or cities from the agricultural property
deleted text end
new text begin
outside the county where the

agricultural property is located, or lives outside a county that is adjacent to the county where

the agricultural property is located
new text end
.

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

deleted text begin

(ii)
deleted text end
new text begin
(2)
new text end
Property containing the residence of an owner who owns qualified property under

clause
deleted text begin
(i)
deleted text end
new text begin
(1)
new text end
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.

deleted text begin

(iii)
deleted text end
new text begin
(3)
new text end
As used in this paragraph, "agricultural property" means class 2a property and

any class 2b property that is contiguous to and under the same ownership as the class 2a

property.

(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 township or city, or not farther than four townships or cities or

combination thereof from the 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, Le Sueur,

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 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:

(1) the property consists of at least 40 acres including undivided government lots and

correctional 40's;

(2) a shareholder, member, or partner of that entity is actively farming the agricultural

property;

(3) that shareholder, member, or partner who is actively farming the agricultural property

is a Minnesota resident;

(4) neither that shareholder, member, or partner, nor the spouse of that shareholder,

member, or partner claims another agricultural homestead in Minnesota; and

(5) that shareholder, member, or partner does not live farther than four townships or

cities, or a combination of four townships or cities, from the agricultural property.

Homestead treatment applies under this paragraph even if:

(i) the shareholder, member, or partner of that entity is actively farming the agricultural

property on the shareholder's, member's, or partner's own behalf; or

(ii) the family farm is operated by a family farm corporation, joint family farm venture,

partnership, or limited liability company other than the family farm corporation, joint family

farm venture, partnership, or limited liability company that owns the land, provided that:

(A) the shareholder, member, or partner of the family farm corporation, joint family

farm venture, partnership, or limited liability company that owns the land who is actively

farming the land is a shareholder, member, or partner of the family farm corporation, joint

family farm venture, partnership, or limited liability company that is operating the farm;

and

(B) more than half of the shareholders, members, or partners of each family farm

corporation, joint family farm venture, partnership, or limited liability company are persons

or spouses of persons who are a qualifying relative under section
273.124, subdivision 1
,

paragraphs (c) and (d).

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 the

four townships or city criteria and 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 or individual taxpayer identification 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.

(i) Agricultural land and buildings that were class 2a homestead property under section

273.13, subdivision 23
, paragraph (a), for the 2007 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 the August 2007 floods;

(2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele,

Wabasha, or Winona;

(3) the agricultural land and buildings remain under the same ownership for the current

assessment year as existed for the 2007 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 the August 2007

floods, and the owner furnishes the assessor any information deemed necessary by the

assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the

owner must notify the assessor by December 1, 2008. 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.

(j) Agricultural land and buildings that were class 2a homestead property under section

273.13, subdivision 23
, paragraph (a), for the 2008 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 March 2009 floods;

(2) the property is located in the county of Marshall;

(3) the agricultural land and buildings remain under the same ownership for the current

assessment year as existed for the 2008 assessment year and continue to be used for

agricultural purposes;

(4) the dwelling occupied by the owner is located in Minnesota 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 the 2009 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.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective beginning with assessment year 2027.

new text end

Sec. 6.

Minnesota Statutes 2025 Supplement, 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 classification rate of

one percent of its market value; and the market value of class 1a property that exceeds

$500,000 has a classification 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 person who is blind

and the spouse of the person who is blind;

(2) any person who is permanently and totally disabled or by the person with a disability

and the spouse of the person with a disability; or

(3) the surviving spouse of a veteran who was permanently and totally disabled

homesteading a property classified under this paragraph for taxes payable in 2008.

Property is classified and assessed under clause (2) 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, and that the

property is not eligible for the valuation exclusion under subdivision 34.

Property is classified and assessed under paragraph (b) only if the commissioner of

revenue or the county assessor certifies 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 $50,000 market value of class 1b

property has a net classification rate of 0.45 percent of its market value. The remaining

market value of class 1b property is classified as class 1a property, class 2a property, or

class 4d(2) property, whichever is appropriate.

(c) Class 1c property is commercial use real and personal property that abuts public

water as defined in section
103G.005, subdivision 15
, or abuts a state trail administered by

the Department of Natural Resources, and 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 paragraph, 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. Class 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. If

the same owner owns two separate parcels that are located in the same township, and one

of those properties is classified as a class 1c property and the other would be eligible to be

classified as a class 1c property if it was used as the homestead of the owner, both properties

will be assessed as a single class 1c property; for purposes of this sentence, properties are

deemed to be owned by the same owner if each of them is owned by a limited liability

company, and both limited liability companies have the same membership. The 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
$600,000
deleted text end
new text begin
$1,500,000
new text end
of market value is tier

I, the next
deleted text begin
$1,700,000
deleted text end
new text begin
$3,000,000
new text end
of market value is tier II, and any remaining market value

is tier III. The classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent;

and tier III, 1.25 percent. 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.

(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 classification rates as class 1a property

under paragraph (a).

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective beginning with assessment year 2027.

new text end

Sec. 7.

Minnesota Statutes 2025 Supplement, section 273.13, subdivision 23, is amended

to read:

Subd. 23.

Class 2.

(a) An agricultural homestead consists of class 2a agricultural land

that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class

2a land under the same ownership. The market value of the house and garage and immediately

surrounding one acre of land has the same classification rates as class 1a or 1b 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 classification rate of 0.5

percent of market value. The remaining property over the first tier has a classification 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 2a agricultural land consists of parcels of property, or portions thereof, that

are agricultural land and buildings. Class 2a property has a classification rate of one percent

of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a

property must also include any property that would otherwise be classified as 2b, but is

interspersed with class 2a property, including but not limited to sloughs, wooded wind

shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement,

and other similar land that is impractical for the assessor to value separately from the rest

of the property or that is unlikely to be able to be sold separately from the rest of the property.

An assessor may classify the part of a parcel described in this subdivision that is used

for agricultural purposes as class 2a and the remainder in the class appropriate to its use.

(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that

are unplatted real estate, rural in character and not used for agricultural purposes, including

land used for growing trees for timber, lumber, and wood and wood products, that is not

improved with a structure. The presence of a minor, ancillary nonresidential structure as

defined by the commissioner of revenue does not disqualify the property from classification

under this paragraph. Any parcel of 20 acres or more improved with a structure that is not

a minor, ancillary nonresidential structure must be split-classified, and ten acres must be

assigned to the split parcel containing the structure. If a parcel of 20 acres or more is enrolled

in the sustainable forest management incentive program under chapter 290C, the number

of acres assigned to the split parcel improved with a structure that is not a minor, ancillary

nonresidential structure must equal three acres or the number of acres excluded from the

sustainable forest incentive act covenant due to the structure, whichever is greater. Class

2b property has a classification rate of one percent of market value unless it is part of an

agricultural homestead under paragraph (a), or qualifies as class 2c under paragraph (d).

(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920

acres statewide per taxpayer that is being managed under a forest management plan that

meets the requirements of
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chapter
deleted text end
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290C
deleted text end
new text begin
section 290C.02, subdivision 7, prepared by an

approved plan writer as defined in section 290C.02, subdivision 2
new text end
,
deleted text begin
but
deleted text end
new text begin
and
new text end
is not enrolled

in the sustainable forest resource management incentive program. It has a classification rate

of .65 percent, provided that the owner of the property must apply to the assessor in order

for the property to initially qualify for the reduced rate and provide the information required

by the assessor to verify that the property qualifies for the reduced rate. If the assessor

receives the application and information before May 1 in an assessment year, the property

qualifies beginning with that assessment year. If the assessor receives the application and

information after April 30 in an assessment year, the property may not qualify until the next

assessment year. The commissioner of natural resources must concur that the land is qualified.

The commissioner of natural resources shall annually provide county assessors verification

information on a timely basis. The presence of a minor, ancillary nonresidential structure

as defined by the commissioner of revenue does not disqualify the property from

classification under this paragraph.
new text begin
Notwithstanding any law to the contrary, managed forest

land that is otherwise eligible to be classified as class 2c under this paragraph is eligible

regardless of whether it is wholly or partially subject to a conservation easement.
new text end

(e) Agricultural land as used in this section means:

(1) contiguous acreage of ten acres or more, used during the preceding year for

agricultural purposes; or

(2) contiguous acreage used during the preceding year for an intensive livestock or

poultry confinement operation, provided that land used only for pasturing or grazing does

not qualify under this clause.

"Agricultural purposes" as used in this section means the raising, cultivation, drying, or

storage of agricultural products for sale, or the storage of machinery or equipment used in

support of agricultural production by the same farm entity. For a property to be classified

as agricultural based only on the drying or storage of agricultural products, the products

being dried or stored must have been produced by the same farm entity as the entity operating

the drying or storage facility. "Agricultural purposes" also includes (i) enrollment in a local

conservation program or 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

or a similar state or federal conservation program if the property was classified as agricultural

(A) under this subdivision for taxes payable in 2003 because of its enrollment in a qualifying

program and the land remains enrolled or (B) in the year prior to its enrollment, or (ii) use

of land, not to exceed three acres, to provide environmental benefits such as buffer strips,

old growth forest restoration or retention, or retention ponds to prevent soil erosion. For

purposes of this section, a "local conservation program" means a program administered by

a town, statutory or home rule charter city, or county, including a watershed district, water

management organization, or soil and water conservation district, in which landowners

voluntarily enroll land and receive incentive payments equal to at least $50 per acre in

exchange for use or other restrictions placed on the land. In order for property to qualify

under the local conservation program provision, a taxpayer must apply to the assessor by

February 1 of the assessment year and must submit the information required by the assessor,

including but not limited to a copy of the program requirements, the specific agreement

between the land owner and the local agency, if applicable, and a map of the conservation

area. Agricultural classification shall not be based upon the market value of any residential

structures on the parcel or contiguous parcels under the same ownership.

"Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous

portion of, a tax parcel as described in section
272.193
, or all of, or a contiguous portion

of, a set of contiguous tax parcels under that section that are owned by the same person.

(f) Agricultural land under this section also includes:

(1) contiguous acreage that is less than ten acres in size and exclusively used in the

preceding year for raising or cultivating agricultural products;

(2) contiguous acreage that contains a residence and is less than 11 acres in size, if the

contiguous acreage exclusive of the house, garage, and surrounding one acre of land was

used in the preceding year for one or more of the following three uses:

(i) for an intensive grain drying or storage operation, or for intensive machinery or

equipment storage activities used to support agricultural activities on other parcels of property

operated by the same farming entity;

(ii) as a nursery, provided that only those acres used intensively to produce nursery stock

are considered agricultural land; or

(iii) for intensive market farming;
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or
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(3) contiguous acreage that contains a residence and is less than 15 acres in size, if the

contiguous acreage inclusive of the house, garage, and surrounding one acre of land was

used in the preceding year for market farming and the owner provides the county assessor

with the filed federal Schedule F (Form 1040) for the most recent completed tax year that

reports gross income of at least $20,000
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.
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new text begin
; or
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(4) contiguous acreage that contains a farm winery licensed under section 340A.315.

new text end

For purposes of this paragraph, "market farming" means the cultivation of one or more

fruits or vegetables or production of animal or other agricultural products for sale to local

markets by the farmer or an organization with which the farmer is affiliated, and "contiguous

acreage" means all of a tax parcel as described in section
272.193
, or all of a set of contiguous

tax parcels under that section that are owned by the same person.

(g) 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
.

(h) 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.

(i) 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, floriculture, fruit of all kinds, vegetables, forage,

grains, bees, and apiary products by the owner;

(2) aquacultural products for sale and consumption, as defined under section
17.47
, if

the aquaculture occurs on land zoned for agricultural use;

(3) the commercial boarding of horses, which may include related horse training and

riding instruction, if the boarding is done on property that is also used for raising pasture

to graze horses or raising or cultivating other 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 (i) on a game farm licensed under section

97A.105
, provided that the annual licensing report to the Department of Natural Resources,

which must be submitted annually by March 30 to the assessor, indicates that at least 500

birds were raised or used for breeding stock on the property during the preceding year and

that the owner provides a copy of the owner's most recent schedule F; or (ii) 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, including short rotation woody crops, and not sold

for timber, lumber, wood, or wood products;
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and
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(8) maple syrup taken from trees grown by a person licensed by the Minnesota

Department of Agriculture under chapter 28A as a food processor
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.
deleted text end
new text begin
; and
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(9) wine for sale and consumption if production occurs on a farm winery licensed under

section 340A.315.

new text end

(j) 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 floricultural, 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 floricultural, 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 floricultural, horticultural or nursery products does not qualify as an agricultural

purpose.

"Floriculture," for the purposes of this paragraph, includes production of bedding and garden

plants, foliage plants, potted flowering plants, and cut flowers.

(k) 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.

(l) Class 2d airport landing area consists of a landing area or public access area of a

privately owned public use airport. It has a classification rate of one percent of market value.

To qualify for classification under this paragraph, a privately owned public use airport must

be licensed as a public airport under section
360.018
. For purposes of this paragraph, "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 this paragraph 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 this paragraph. For

purposes of this paragraph, "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.

(m) Class 2e consists of land with a commercial aggregate deposit that is not actively

being mined and is not otherwise classified as class 2a or 2b, provided that the land is not

located in a county that has elected to opt-out of the aggregate preservation program as

provided in section
273.1115, subdivision 6
. It has a classification rate of one percent of

market value. To qualify for classification under this paragraph, the property must be at

least ten contiguous acres in size and the owner of the property must record with the county

recorder of the county in which the property is located an affidavit containing:

(1) a legal description of the property;

(2) a disclosure that the property contains a commercial aggregate deposit that is not

actively being mined but is present on the entire parcel enrolled;

(3) documentation that the conditional use under the county or local zoning ordinance

of this property is for mining; and

(4) documentation that a permit has been issued by the local unit of government or the

mining activity is allowed under local ordinance. The disclosure must include a statement

from a registered professional geologist, engineer, or soil scientist delineating the deposit

and certifying that it is a commercial aggregate deposit.

For purposes of this section and section
273.1115
, "commercial aggregate deposit"

means a deposit that will yield crushed stone or sand and gravel that is suitable for use as

a construction aggregate; and "actively mined" means the removal of top soil and overburden

in preparation for excavation or excavation of a commercial deposit.

(n) When any portion of the property under this subdivision or subdivision 22 begins to

be actively mined, the owner must file a supplemental affidavit within 60 days from the

day any aggregate is removed stating the number of acres of the property that is actively

being mined. The acres actively being mined must be (1) valued and classified under

subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate

resource preservation property tax program under section
273.1115
, if the land was enrolled

in that program. Copies of the original affidavit and all supplemental affidavits must be

filed with the county assessor, the local zoning administrator, and the Department of Natural

Resources, Division of Land and Minerals. A supplemental affidavit must be filed each

time a subsequent portion of the property is actively mined, provided that the minimum

acreage change is five acres, even if the actual mining activity constitutes less than five

acres.

(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not

rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in

section
14.386
concerning exempt rules do not apply.

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EFFECTIVE DATE.

new text end

new text begin

This section is effective beginning with assessment year 2027.

new text end

Sec. 8.

Minnesota Statutes 2024, section 273.13, subdivision 34, is amended to read:

Subd. 34.

Homestead of veteran with a disability or family caregiver.

(a) All or a

portion of the market value of property owned by a veteran and serving as the veteran's

homestead under this section is excluded in determining the property's taxable market value

if the veteran has a service-connected disability of 70 percent or more as certified by the

United States Department of Veterans Affairs. 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.

(b)(1) For a disability rating of 70 percent or more,
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$150,000
deleted text end
new text begin
$175,000
new text end
of market value

is excluded, except as provided in clause (2); and

(2) for a total (100 percent) and permanent disability,
deleted text begin
$300,000
deleted text end
new text begin
$350,000
new text end
of market

value is excluded.

(c) If a veteran with a disability qualifying for a valuation exclusion under paragraph

(b), clause (2), 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 remarries, or sells, transfers, or otherwise disposes of the property, except as otherwise

provided in paragraph (n). Qualification under this paragraph requires an application under

paragraph (h), and a spouse must notify the assessor if there is a change in the spouse's

marital status, ownership of the property, or use of the property as a permanent residence.

(d) If the spouse of a member of any branch or unit of the United States armed forces

who dies due to a service-connected cause while serving honorably in active service, as

indicated on United States Government Form DD1300 or DD2064, holds the legal or

beneficial title to a homestead and permanently resides there, the spouse is entitled to the

benefit described in paragraph (b), clause (2), until such time as the spouse remarries or

sells, transfers, or otherwise disposes of the property, except as otherwise provided in

paragraph (n).

(e) If a veteran meets the disability criteria of paragraph (a) but does not own property

classified as homestead in the state of Minnesota, then the homestead of the veteran's primary

family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify

for under paragraph (b).

(f) 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.

(g) A property qualifying for a valuation exclusion under this subdivision is not eligible

for the market value exclusion under subdivision 35, or classification under subdivision 22,

paragraph (b).

(h) To qualify for a valuation exclusion under this subdivision a property owner must

apply to the assessor by December 31 of the first assessment year for which the exclusion

is sought. Except as provided in paragraph (c), the owner of a property that has been accepted

for a valuation exclusion must notify the assessor if there is a change in ownership of the

property or in the use of the property as a homestead.

(i) A first-time application by a qualifying spouse for the market value exclusion under

paragraph (d) must be made any time within two years of the death of the service member.

(j) For purposes of this subdivision:

(1) "active service" has the meaning given in section
190.05
;

(2) "own" means that the person's name is present as an owner on the property deed;

(3) "primary family caregiver" means a person who is approved by the secretary of the

United States Department of Veterans Affairs for assistance as the primary provider of

personal care services for an eligible veteran under the Program of Comprehensive Assistance

for Family Caregivers, codified as United States Code, title 38, section 1720G; and

(4) "veteran" has the meaning given the term in section
197.447
.

(k) If a veteran did not apply for or receive the exclusion under paragraph (b), clause

(2), before dying, or the exclusion under paragraph (b), clause (2), did not exist at the time

of the veterans death, the veteran's spouse is entitled to the benefit under paragraph (b),

clause (2), until the spouse remarries or sells, transfers, or otherwise disposes of the property,

except as otherwise provided in paragraph (n), if:

(1) the spouse files a first-time application;

(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the

homestead and permanently resides there;

(3) the veteran met the honorable discharge requirements of paragraph (a); and

(4) the United States Department of Veterans Affairs certifies that:

(i) the veteran met the total (100 percent) and permanent disability requirement under

paragraph (b), clause (2); or

(ii) the spouse has been awarded dependency and indemnity compensation.

(l) The purpose of this provision of law providing a level of homestead property tax

relief for veterans with a disability, their primary family caregivers, and their surviving

spouses is to help ease the burdens of war for those among our state's citizens who bear

those burdens most heavily.

(m) By July 1, the county veterans service officer must certify the disability rating and

permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.

(n) A spouse who received the benefit in paragraph (c), (d), or (k) but no longer holds

the legal or beneficial title to the property may continue to receive the exclusion for a

property other than the property for which the exclusion was initially granted until the spouse

remarries or sells, transfers, or otherwise disposes of the property, provided that:

(1) the spouse applies under paragraph (h) for the continuation of the exclusion allowed

under this paragraph;

(2) the spouse holds the legal or beneficial title to the property for which the continuation

of the exclusion is sought under this paragraph, and permanently resides there;

(3) the estimated market value of the property for which the exclusion is sought under

this paragraph is less than or equal to the estimated market value of the property that first

received the exclusion, based on the value of each property on the date of the sale of the

property that first received the exclusion; and

(4) the spouse has not previously received the benefit under this paragraph for a property

other than the property for which the exclusion is sought.

(o) If a spouse had previously received the exclusion under paragraph (c) or (d) and the

exclusion expired prior to taxes payable in 2020, the spouse may reapply under this section

for the exclusion under paragraph (c) or (d).

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EFFECTIVE DATE.

new text end

new text begin

This section is effective beginning with assessment year 2026.

new text end

Sec. 9.

Minnesota Statutes 2024, section 469.171, subdivision 1, is amended to read:

Subdivision 1.

Authorized types.

(a) The following types of tax reductions
new text begin
or

reimbursements
new text end
may be approved by the commissioner for businesses located in a border

city enterprise zone, after the governing body of the border city has designated an area or

areas
deleted text begin
, each consisting of at least 100 acres, of the city not in excess of a total of 400 acres
deleted text end

in which the tax reductions may be provided:

(1) an exemption from the general sales tax imposed by chapter 297A for purchases of

construction materials or equipment for use in the zone if the purchase was made after the

date of application for the zone;

(2) a credit against the income tax of an employer for additional workers employed in

the zone, other than workers employed in construction, up to a maximum of
deleted text begin
$3,000
deleted text end
new text begin
$5,000
new text end

per employee per year;

(3) an income tax credit for a percentage of the cost of debt financing to construct new

or expanded facilities in the zone;
deleted text begin
and
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(4) a state paid property tax credit for a portion of the property taxes paid by a new

commercial or industrial facility or the additional property taxes paid by an expansion of

an existing commercial or industrial facility in the zone
deleted text begin
.
deleted text end
new text begin
; and
new text end

new text begin

(5) reimbursement of land acquisition costs for business expansion within the zone if

the municipality determines that expansion was necessary to prevent relocation outside the

state.

new text end

(b) An application for a tax reduction
new text begin
or reimbursement
new text end
under this subdivision may not

be approved unless the governing body finds
new text begin
both: (1)
new text end
that the construction or improvement

of the facility is not likely to have the effect of transferring existing employment from a

location outside of the municipality but within the state
new text begin
; and (2) that the facility is in

compliance with all applicable municipal licensing and municipal regulatory requirements
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 2024, section 469.171, subdivision 4, is amended to read:

Subd. 4.

Restriction.

The tax reductions provided by this section shall not apply to (1)
deleted text begin

a facility the primary purpose of which is one of the following: the provision of recreation

or entertainment, or a private or commercial golf course, country club, massage parlor,

tennis club, skating facility including roller skating, skateboard, and ice skating, racquet

sports facility, including any handball or racquetball court, hot tub facility, suntan facility,

or racetrack; (2)
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property of a public utility;
deleted text begin
(3)
deleted text end
new text begin
(2)
new text end
property used in the operation of a

financial institution;
deleted text begin
(4)
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new text begin
or (3)
new text end
property owned by a fraternal or veterans' organization
deleted text begin
; or

(5) a retail food or beverage facility operating under a franchise agreement that requires the

business to be located in this state
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. 11.

Minnesota Statutes 2024, section 469.171, subdivision 6a, is amended to read:

Subd. 6a.

Additional border city allocations.

The commissioner may allocate $2,000,000

for tax reductions pursuant to subdivision 9 to border city enterprise zones. This money

shall be allocated among the zones on a per capita basis. Tax reductions authorized by this

subdivision may not be allocated to any property which is:

deleted text begin

(1) a facility the primary purpose of which is one of the following: the provision of

recreation or entertainment, or a private or commercial golf course, country club, massage

parlor, tennis club, skating facility including roller skating, skateboard, and ice skating,

racquet sports facility, including any handball or racquetball court, hot tub facility, suntan

facility, or racetrack;

deleted text end

deleted text begin

(2)
deleted text end
new text begin
(1)
new text end
property of a public utility;

deleted text begin

(3)
deleted text end
new text begin
(2)
new text end
property used in the operation of a financial institution;
new text begin
or
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deleted text begin

(4)
deleted text end
new text begin
(3)
new text end
property owned by a fraternal or veterans' organization
deleted text begin
;
deleted text end
new text begin
.
new text end

deleted text begin

(5) property of a retail food or beverage service business operating under a franchise

agreement that requires the business to be located in the state.

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. 12.

Minnesota Statutes 2024, section 469.1731, subdivision 1, is amended to read:

Subdivision 1.

Designation.

To encourage economic development, to revitalize the

designated areas, to expand tax base and economic activity, and to provide job creation,

growth, and retention, the following border cities may designate, by resolution, areas of the

city as development zones after a public hearing upon 30-day notice.

(a) The city of Breckenridge may designate all or any part of the city as a zone.

(b) The city of Dilworth may designate
deleted text begin
between one and six areas of the city as zones

containing not more than 100 acres in the aggregate
deleted text end
new text begin
all or any part of the city as a zone
new text end
.

(c) The city of East Grand Forks may designate all or any part of the city as a zone.

(d) The city of Moorhead may designate
deleted text begin
between one and six areas of the city as zones

containing not more than 100 acres in the aggregate
deleted text end
new text begin
all or any part of the city as a zone
new text end
.

(e) The city of Ortonville may designate
deleted text begin
between one and six areas of the city as zones

containing not more than 100 acres in the aggregate
deleted text end
new text begin
all or any part of the city as a zone
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. 13.
new text begin
ONETIME INCREASE IN HOMESTEAD CREDIT REFUND.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Homestead credit refund.

new text end

new text begin

For claims filed based on taxes payable in

2026, the commissioner shall increase by 12 percent the refund otherwise payable under

Minnesota Statutes, section 290A.04, subdivision 2.

new text end

new text begin

Subd. 2.

new text end

new text begin

No notification of appeal rights.

new text end

new text begin

In adjusting homestead credit refunds under

this section, the commissioner is not required to provide information concerning appeal

rights that ordinarily must be provided whenever the commissioner adjusts refunds payable

under Minnesota Statutes, chapter 290A. Taxpayers retain all rights to appeal adjustments

under this section.

new text end

new text begin

Subd. 3.

new text end

new text begin

Appropriation.

new text end

new text begin

The amount necessary to make the payments required under

this section is appropriated from the general fund to the commissioner of revenue.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective only for refunds based on property taxes

payable in 2026.

new text end

ARTICLE 4

SALES AND USE AND EXCISE TAXES

Section 1.

new text begin

[295.90] SOCIAL MEDIA CONSUMER DATA COLLECTION TAX.

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) "Collects" means collects, engages, maintains, uses, processes, or shares.

new text end

new text begin

(c) "Commissioner" means the commissioner of revenue.

new text end

new text begin

(d) "Consumer" means an individual who establishes an account with a social media

platform business or who accesses a social media platform through an account registered

with a social media platform business and whose consumer data is collected by the social

media platform business, regardless of whether the individual is charged for establishing

the account.

new text end

new text begin

(e) "Consumer data" means any information that identifies, relates to, describes, is

capable of being associated with, or could reasonably be linked with a consumer, whether

directly submitted to the social media platform business by the consumer or derived from

other sources.

new text end

new text begin

(f) "Minnesota consumer" means a consumer who is a resident of Minnesota.

new text end

new text begin

(g) "Resident" has the meaning given in section 290.01, subdivision 7.

new text end

new text begin

(h) "Social media platform" has the meaning given in section 325M.31, paragraph (j).

new text end

new text begin

(i) "Social media platform business" means a for-profit entity that: (1) owns, controls,

or operates a social media platform; and (2) collects consumer data in support of the entity's

business activities.

new text end

new text begin

Subd. 2.

new text end

new text begin

Tax imposed.

new text end

new text begin

A tax is imposed on social media platform businesses based on

the number of Minnesota social media platform consumers from whom a social media

platform business collects data within a month:

new text end

new text begin

Minnesota consumers

new text end

new text begin

Tax

new text end

new text begin

Fewer than or equal to 100,000

new text end

new text begin

Zero;

new text end

new text begin

Over 100,000 but not more than 500,000

new text end

new text begin

$0.50 per month on the number of Minnesota

consumers over 100,000 but not more than

500,000;

new text end

new text begin

Over 500,000 but not more than 1,000,000

new text end

new text begin

$200,000 plus $0.70 per month on the number

of Minnesota consumers over 500,000 but

not more than 1,000,000; and

new text end

new text begin

Over 1,000,000

new text end

new text begin

$550,000 plus $0.90 per month on the number

of Minnesota consumers over 1,000,000.

new text end

new text begin

Subd. 3.

new text end

new text begin

Business entities.

new text end

new text begin

Business entities that are part of a controlled group of

corporations as defined in section 1563(a) of the Internal Revenue Code shall be treated as

a single entity for purposes of meeting the definition of a social media platform business

under this section. The entities constituting the single taxpayer are jointly and severally

liable for the tax.

new text end

new text begin

Subd. 4.

new text end

new text begin

Counting Minnesota consumers.

new text end

new text begin

(a) A Minnesota consumer must be counted

only once in the calculation of tax imposed under this section. Until the contrary is

established, it is presumed that each account is an individual consumer. The burden of

proving that multiple accounts are one consumer is on the social media platform business.

new text end

new text begin

(b) The single member of a single member limited liability company must be treated as

a consumer under this section.

new text end

new text begin

(c) Until the contrary is established, it is presumed that a consumer whose information

on record with or available to a social media platform business indicates a Minnesota home

address, a Minnesota mailing address, or an internet protocol address connected with a

Minnesota location is a Minnesota consumer for purposes of this section. The burden of

proving that a consumer is not a Minnesota resident is on the social media platform business.

new text end

new text begin

(d) A social media platform business and the commissioner may agree on a methodology

for determining the number of Minnesota consumers for purposes of calculating the tax.

new text end

new text begin

Subd. 5.

new text end

new text begin

Credit against tax paid to another jurisdiction.

new text end

new text begin

A social media platform

business that has paid tax under this section may claim a credit against the tax paid with

respect to a Minnesota consumer if another state imposes an excise tax identical to the tax

imposed under this section with respect to the same consumer.

new text end

new text begin

Subd. 6.

new text end

new text begin

Record keeping.

new text end

new text begin

A social media platform business must maintain records

necessary to demonstrate compliance with this section or as required by the commissioner.

new text end

new text begin

Subd. 7.

new text end

new text begin

Administration.

new text end

new text begin

Unless specifically provided otherwise, the audit, assessment,

refund, penalty, interest, criminal penalty, enforcement, collection remedy, appeal, and

administrative provisions of chapters 270C and 289A that are applicable to taxes imposed

under chapter 297A apply to the tax imposed under this section.

new text end

new text begin

Subd. 8.

new text end

new text begin

Returns; payment of tax.

new text end

new text begin

(a) On or before the 20th of the month following

the month that tax liability is incurred under subdivision 2, a social media platform business

must report the tax on a return prescribed by the commissioner and must remit the tax in a

form and manner prescribed by the commissioner.

new text end

new text begin

(b) A social media platform business that owes tax imposed under this section must file

a return in subsequent months until it reports no tax liability for 12 consecutive months.

new text end

new text begin

(c) Interest must be paid on an overpayment refunded or credited to the taxpayer from

the date of payment of the tax until the date the refund is paid or credited. For purposes of

this subdivision, the date of payment is the due date of the return or the date of actual

payment of the tax, whichever is later.

new text end

new text begin

Subd. 9.

new text end

new text begin

Deposit of revenues.

new text end

new text begin

The commissioner must deposit the revenues, including

penalties and interest, derived from the tax imposed under this section to the general fund.

new text end

new text begin

Subd. 10.

new text end

new text begin

Personal debt.

new text end

new text begin

The tax imposed under this section, and interest and penalties

imposed with respect to the tax, are a personal debt of the person required to file a return

from the time that the liability for the tax arises, irrespective of when the time for payment

of the liability occurs. The debt must, in the case of the executor or administrator of the

estate of a decedent and in the case of a fiduciary, be that of the person in the person's official

or fiduciary capacity only, unless the person has voluntarily distributed the assets held in

that capacity without reserving sufficient assets to pay the tax, interest, and penalties, in

which event the person is personally liable for any deficiency.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for consumer data collected after

December 31, 2026.

new text end

Sec. 2.

Minnesota Statutes 2024, section 297A.994, subdivision 4, is amended to read:

Subd. 4.

General fund allocations.

deleted text begin
(a)
deleted text end
The commissioner must retain and deposit to

the general fund the following amounts, as required by subdivision 3, clause (3):

(1) for state bond debt service support beginning in calendar year 2021, and for each

calendar year thereafter through calendar year 2046, periodic amounts so that not later than

December 31, 2046, an aggregate amount equal to a present value of $150,000,000 has been

deposited in the general fund. To determine aggregate present value, the commissioner must

consult with the commissioner of management and budget regarding the present value dates,

discount rate or rates, and schedules of annual amounts. The present value date or dates

must be based on the date or dates bonds are sold under Minnesota Statutes 2022, section

16A.965
, or the date or dates other state funds, if any, are deposited into the construction

fund. The discount rate or rates must be based on the true interest cost of the bonds issued

under Minnesota Statutes 2022, section
16A.965
, or an equivalent 30-year bond index, as

determined by the commissioner of management and budget. The schedule of annual amounts

must be certified to the commissioner by the commissioner of management and budget and

the finance officer of the city;

(2) for the capital improvement reserve appropriation to the Minnesota Sports Facilities

Authority beginning in calendar year 2021, and for each calendar year thereafter through

calendar year 2046, an aggregate annual amount equal to the amount paid by the state for

this purpose in that calendar year under section
473J.13, subdivision 4
;

(3) for the operating expense appropriation to the Minnesota Sports Facilities Authority

beginning in calendar year 2021, and for each calendar year thereafter through calendar

year 2046, an aggregate annual amount equal to the amount paid by the state for this purpose

in that calendar year under section
473J.13, subdivision 2
;

deleted text begin

(4) to capture increases in taxes imposed under the special law, for the benefit of the

Minnesota Sports Facilities Authority, beginning in calendar year 2013 and for each calendar

year thereafter through 2046, there shall be deposited to the general fund in proportionate

periodic payments in the following year, an amount equal to the lesser of:

deleted text end

deleted text begin

(i)(A) 50 percent of the difference, if any, by which the amount of the net annual taxes

for the previous year exceeds the sum of the net actual taxes in calendar year 2011 plus

$1,000,000, inflated at two percent per year since 2011, minus

deleted text end

deleted text begin

(B) 25 percent of the difference, if any, by which the amount of the net annual taxes for

the preceding year exceeds the sum of the net actual taxes in calendar year 2011 plus

$3,000,000, inflated at two percent per year since 2011; or

deleted text end

deleted text begin

(ii) the amount of the net annual taxes for the preceding year multiplied by three percent;
deleted text end

and

deleted text begin

(5)
deleted text end
new text begin
(4)
new text end
if the bonds under
new text begin
Minnesota Statutes 2022,
new text end
section
16A.965
new text begin
,
new text end
are defeased,

redeemed, or paid in full, the commissioner of management and budget and finance officer

of the city must agree to a revised schedule of annual amounts under clause (1). The revised

schedule of annual amounts must factor in a discount rate equal to zero percent and otherwise

consistent with the methodology previously agreed upon by the parties.

deleted text begin

(b) The Minnesota Sports Facility Authority must use the amounts available from the

deposits under paragraph (a), clause (4), for capital repairs, replacements, and improvements

for the stadium and stadium infrastructure.

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 2024, section 297H.01, subdivision 2, is amended to read:

Subd. 2.

Commercial generator.

"Commercial generator" means any of the following:

(1) an owner or operator of a business, including a home-operated business, industry,

church, nursing home, nonprofit organization
new text begin
that does not meet the criteria in subdivision

8, clause (4)
new text end
, school, or any other commercial or institutional enterprise that generates mixed

municipal solid waste or nonmixed municipal solid waste; or

(2) any other generator of taxable waste that is not a residential generator defined in

subdivision 8. A commercial generator does not include a self-hauler.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for waste management services received

after June 30, 2026.

new text end

Sec. 4.

Minnesota Statutes 2024, section 297H.01, subdivision 8, is amended to read:

Subd. 8.

Residential generator.

"Residential generator" means any of the following:

(1) a detached single family residence that generates mixed municipal solid waste or

nonmixed municipal solid waste;

(2) a person residing in a building or site containing multiple residences that generates

mixed municipal solid waste, including apartment buildings, common interest communities,

or manufactured home parks, where each residence is separately billed by the waste service

provider;

(3) an owner of a building or site containing multiple residences or an association

representing residences that generate mixed municipal solid waste or nonmixed municipal

solid waste, including apartment buildings, condominiums, manufactured home parks, or

townhomes where no residence is separately billed for such service by the waste management

service provider and the owner or association is billed directly for the waste management

services. A residential generator does not include a self-hauler
deleted text begin
.
deleted text end
new text begin
; or
new text end

new text begin

(4) an organization exempt under section 501(c)(3) of the Internal Revenue Code whose

primary mission is to receive donations for resale that receives donations for resale from a

person or an entity listed in clauses (1) to (3).

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for waste management services received

by a residential generator after June 30, 2026.

new text end

Sec. 5.

Minnesota Statutes 2024, section 428B.02, subdivision 4, is amended to read:

Subd. 4.

Service charges; relationship to services.

(a) A municipality may impose a

service charge on a business pursuant to this chapter for the purpose of providing activities

and improvements that will provide benefits to a business that is located within the tourism

improvement district and subject to the tourism improvement district service charge. Each

business paying a service charge within a district must benefit directly or indirectly from

improvements provided by a tourism improvement association, provided, however, the

business need not benefit equally. Service charges must be based on a percent of gross

business revenue, a fixed dollar amount per transaction, or any other reasonable method

based upon benefit and approved by the municipality.
new text begin
A business may, but is not required

to, collect the service charge imposed by this section from the purchaser. If separately stated

on the invoice, bill of sale, or similar document given to the purchaser, the service charge

is excluded from the sales price for purposes of the tax imposed under chapter 297A.
new text end

(b) Service charges may be used to cover the costs of collections, as well as other

administrative costs associated with operating, forming, or maintaining the district.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective retroactively for sales and purchases

made after June 30, 2025.

new text end

Sec. 6.

Laws 2023, chapter 64, article 5, section 25, subdivision 1, is amended to read:

Subdivision 1.

Exemption; refund.

(a) Materials and supplies used or consumed in and

equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,

or remodeling of a new water treatment plant
new text begin
and trunk water main improvements
new text end
in the

city of Ramsey are exempt from sales and use tax under Minnesota Statutes, chapter 297A,

provided that the materials, supplies, and equipment are purchased after December 31, 2022,

and before July 1, 2027.

(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section

297A.62
,
deleted text begin
subdivision
deleted text end
new text begin
subdivisions
new text end
1
new text begin
and 1a
new text end
, applied and then refunded in the same manner

provided for projects under Minnesota Statutes, section
297A.75, subdivision 1
, clause (17).

Refunds for eligible purchases must not be issued until after June 30, 2023
deleted text begin
, and before July

1, 2027
deleted text end
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective retroactively for sales and purchases

made after December 31, 2022, and before July 1, 2027.

new text end

Sec. 7.
new text begin
BROWERVILLE PUBLIC SCHOOLS; SALES TAX EXEMPTION FOR

CONSTRUCTION MATERIALS.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Exemption; refund.

new text end

new text begin

(a) Materials and supplies used or consumed in and

equipment incorporated into the following projects in Independent School District No. 787,

Browerville Public Schools, are exempt from sales and use tax imposed under Minnesota

Statutes, chapter 297A, if the materials, supplies, and equipment are purchased after

December 1, 2023, and before January 1, 2026:

new text end

new text begin

(1) renovations to the prekindergarten through grade 12 school building; and

new text end

new text begin

(2) construction of a new gymnasium, classrooms, locker rooms, a wrestling and weight

room, offices, and a stage.

new text end

new text begin

(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section

297A.62, subdivisions 1 and 1a, applied and then refunded in the same manner provided

for projects under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).

new text end

new text begin

Subd. 2.

new text end

new text begin

Appropriation.

new text end

new text begin

The amount required to pay the refunds under subdivision 1

is appropriated from the general fund to the commissioner of revenue.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective retroactively for sales and purchases

made after December 1, 2023, and before January 1, 2026.

new text end

Sec. 8.
new text begin
CITY OF WOODBURY; SALES AND USE TAX EXEMPTION FOR

CONSTRUCTION MATERIALS.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Exemption; refund.

new text end

new text begin

(a) Materials and supplies used or consumed in and

equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,

or remodeling of a water treatment facility and water tower, including water pipeline

infrastructure and associated improvements funded by the city of Woodbury are exempt

from sales and use tax under Minnesota Statutes, chapter 297A, provided that the materials,

supplies, and equipment are purchased after January 31, 2024, and before December 1,

2028.

new text end

new text begin

(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section

297A.62, subdivisions 1 and 1a, applied and then refunded in the same manner provided

for projects under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).

new text end

new text begin

Subd. 2.

new text end

new text begin

Appropriation.

new text end

new text begin

The amount required to pay the refunds under subdivision 1

is appropriated from the general fund to the commissioner of revenue.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective retroactively for sales and purchases

made after January 31, 2024, and before December 1, 2028.

new text end

ARTICLE 5

LOCAL SALES AND USE AND SPECIAL TAXES

Section 1.

Laws 1986, chapter 400, section 44, as amended by Laws 1995, chapter 264,

article 2, section 39, and Laws 2009, chapter 88, article 4, section 13, is amended to read:

Sec. 44.
DOWNTOWN TAXING AREA.

If a bill is enacted into law in the 1986 legislative session which authorizes the city of

Minneapolis to issue bonds and expend certain funds including taxes to finance the

acquisition and betterment of a convention center and related facilities, which authorizes

certain taxes to be levied in a downtown taxing area, then, notwithstanding the provisions

of that law "downtown taxing area" shall mean the geographic area bounded by the portion

of the Mississippi River between I-35W and Washington Avenue, the portion of Washington

Avenue between the river and I-35W, the portion of I-35W between Washington Avenue

and 8th Street South, the portion of 8th Street South between I-35W and Portland Avenue

South, the portion of Portland Avenue South between 8th Street South and I-94, the portion

of I-94 from the intersection of Portland Avenue South to the intersection of I-94 and
deleted text begin
the

Burlington Northern Railroad tracks
deleted text end
new text begin
Plymouth Avenue North
new text end
, the portion of
deleted text begin
the Burlington

Northern Railroad tracks
deleted text end
new text begin
Plymouth Avenue North
new text end
from I-94 to
deleted text begin
Main Street
deleted text end
new text begin
the Mississippi

River, from Plymouth Avenue North and the Mississippi River south to the Burlington

Northern Railroad tracks
new text end
and including Nicollet Island, and the portion of Main Street
new text begin
from

Burlington Northern Railroad tracks
new text end
to Hennepin Avenue and the portion of Hennepin

Avenue between Main Street and 2nd Street S.E., and the portion of 2nd Street S.E. between

Main Street and Bank Street, and the portion of Bank Street between 2nd Street S.E. and

University Avenue S.E., and the portion of University Avenue S.E. between Bank Street

and I-35W, and by I-35W from University Avenue S.E., to the river. The downtown taxing

area excludes the area bounded on the south and west by Oak Grove Street, on the east by

Spruce Place, and on the north by West 15th Street. The downtown taxing area also excludes

any property located in a zone that is contained in chapter 546 of the Minneapolis Zoning

Code of Ordinances on which a restaurant with a wine license is operated.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for sales and purchases made after

September 30, 2026.

new text end

Sec. 2.

Laws 1993, chapter 375, article 9, section 46, subdivision 2, as amended by Laws

1997, chapter 231, article 7, section 40, Laws 1998, chapter 389, article 8, section 30, Laws

2003, First Special Session chapter 21, article 8, section 13, Laws 2005, First Special Session

chapter 3, article 5, section 26, Laws 2009, chapter 88, article 4, section 15, and Laws 2013,

chapter 143, article 8, section 44, is amended to read:

Subd. 2.

Use of revenues.

Revenues received from the tax authorized by subdivision 1

may only be used by the city to pay the cost of collecting the tax, and, except as provided

in paragraph (e), to pay for the following projects or to secure or pay any principal, premium,

or interest on bonds issued in accordance with subdivision 3 for the following projects.

(a) To pay all or a portion of the capital expenses of construction, equipment and

acquisition costs for the expansion and remodeling of the St. Paul Civic Center complex,

including the
deleted text begin
demolition of the existing arena and the
deleted text end
construction
new text begin
, renovation, betterment,
new text end

and equipping of
deleted text begin
a new
deleted text end
new text begin
the existing
new text end
arena.

(b) Except as provided in paragraphs (e) and (f), the remainder of the funds must be

spent for:

(1) capital projects to further residential, cultural, commercial, and economic development

in both downtown St. Paul and St. Paul neighborhoods; and

(2) capital and operating expenses of cultural organizations in the city, provided that the

amount spent under this clause must equal ten percent of the total amount spent under this

paragraph in any year.

(c) The amount apportioned under paragraph (b) shall be no less than 60 percent of the

revenues derived from the tax each year, except to the extent that a portion of that amount

is required to pay debt service on (1) bonds issued for the purposes of paragraph (a) prior

to March 1, 1998; or (2) bonds issued for the purposes of paragraph (a) after March 1, 1998,

but only if the city council determines that 40 percent of the revenues derived from the tax

together with other revenues pledged to the payment of the bonds, including the proceeds

of definitive bonds, is expected to exceed the annual debt service on the bonds.

(d) If in any year more than 40 percent of the revenue derived from the tax authorized

by subdivision 1 is used to pay debt service on the bonds issued for the purposes of paragraph

(a) and to fund a reserve for the bonds, the amount of the debt service payment that exceeds

40 percent of the revenue must be determined for that year. In any year when 40 percent of

the revenue produced by the sales tax exceeds the amount required to pay debt service on

the bonds and to fund a reserve for the bonds under paragraph (a), the amount of the excess

must be made available for capital projects to further residential, cultural, commercial, and

economic development in the neighborhoods and downtown until the cumulative amounts

determined for all years under the preceding sentence have been made available under this

sentence. The amount made available as reimbursement in the preceding sentence is not

included in the 60 percent determined under paragraph (c).

(e) If the amount necessary to meet obligations under paragraphs (a) and (d) are less

than 40 percent of the revenue from the tax in any year, the city may place the difference

between 40 percent of the revenue and the amounts allocated under paragraphs (a) and (d)

in an economic development fund to be used for any economic development purposes.

(f)
deleted text begin
By January 15 of each year
deleted text end
new text begin
Beginning January 15, 2027, and every other year

thereafter
new text end
, the mayor and the city council must report to the
deleted text begin
legislature
deleted text end
new text begin
chairs and ranking

minority members of the legislative committees with jurisdiction over taxes
new text end
on the use of

sales tax revenues during the preceding one-year period.

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 St. Paul and its chief clerical officer comply with the requirements of Minnesota

Statutes, section 645.021, subdivisions 2 and 3.

new text end

Sec. 3.

Laws 1993, chapter 375, article 9, section 46, subdivision 2b, as added by Laws

2023, chapter 64, article 10, section 3, is amended to read:

Subd. 2b.

Use of revenues.

(a) The revenues derived from the tax authorized under

subdivision 1a must be used by the city of St. Paul to pay the costs of collecting and

administering the tax and to finance all or part of the following projects in the city, including

securing and paying debt service on bonds issued under subdivision 3a:

(1) notwithstanding Minnesota Statutes, section
297A.99, subdivision 2
, paragraphs (a),

clause (2), and (d), $738,000,000, plus associated bonding costs for improvements to:

(i) streets; and

(ii) bridges; and

(2) notwithstanding Minnesota Statutes, section
297A.99, subdivision 2
,
deleted text begin
paragraph
deleted text end
new text begin

paragraphs (a), clause (2), (c), and
new text end
(d), $246,000,000, plus associated bonding costs for

capital improvements to St. Paul parks and recreation facilities.

(b) The city must adopt an amended resolution authorizing use of the revenues from the

tax authorized under subdivision 1a for the use listed in paragraph (a), clause (1), item (ii).

The city must submit the resolution to the state auditor no later than August 31 of the year

the city presents the tax for voter approval as required under Minnesota Statutes, section

297A.99, subdivision 3
, paragraph (a). The question to approve the tax as required under

Minnesota Statutes, section
297A.99, subdivision 3
, paragraph (a), must indicate the purposes

for which the revenues must be used as included in the amended resolution.

(c) If the city does not adopt and submit the amended resolution under paragraph (b),

the question presented to the voters under Minnesota Statutes, section
297A.99, subdivision

3
, paragraph (a), must not include, and revenues from the tax authorized under subdivision

1a must not be used for, the purpose specified in paragraph (a), clause (1), item (ii).

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective retroactively from May 24, 2023, without

local approval, pursuant to Minnesota Statutes, section 645.023, subdivision 1.

new text end

Sec. 4.

Laws 1993, chapter 375, article 9, section 46, subdivision 3, as amended by Laws

1998, chapter 389, article 8, section 31, and Laws 2005, First Special Session chapter 3,

article 5, section 27, is amended to read:

Subd. 3.

Bonds.

The city may issue general obligation bonds or special revenue bonds

to finance all or a portion of the cost for projects authorized in subdivision 2, paragraph (a)

or (b). The debt represented by the bonds shall not be included in computing any debt

limitations applicable to the city. The bonds may be paid from or secured by any funds

available to the city, including the tax authorized under subdivision 1, any revenues derived

from the project, tax increments from the tax increment district that includes the project,

and revenue from any lodging tax imposed under Laws 1982, chapter 523, article 25, section

1. The bonds may be issued in one or more series and sold without election on the question

of issuance of the bonds or a property tax to pay them. Except as otherwise provided in this

section, the bonds must be issued, sold, and secured in the manner provided in Minnesota

Statutes, chapter 475. The aggregate principal amount of bonds issued under this subdivision

for projects authorized in subdivision 2, paragraph (a), may not exceed
deleted text begin
$65 million
deleted text end
new text begin

$275,000,000
new text end
, provided that the city may issue additional bonds under this subdivision for

projects authorized in subdivision 2, paragraph (a), as long as the total principal amount of

the additional bonds together with the outstanding principal amount of the bonds previously

issued under this subdivision for projects authorized in subdivision 2, paragraph (a), does

not exceed
deleted text begin
$130 million
deleted text end
new text begin
$325,000,000
new text end
. The bonds authorized by this subdivision shall not

be included in local general obligation debt as defined in Laws 1971, chapter 773, as

amended, including Laws 1992, chapter 511, and shall not affect the amount of capital

improvement bonds authorized to be issued by the city of St. Paul. Bonds to pay for projects

authorized in subdivision 2, paragraph (b), may be issued if the city council first determines

that 20 percent of the revenues derived from the tax authorized under section 1 together

with other revenues pledged to payment of the bonds, including the proceeds of definitive

bonds, is expected to exceed the annual debt service on the bonds.

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 St. Paul and its chief clerical officer comply with the requirements of Minnesota

Statutes, section 645.021, subdivisions 2 and 3.

new text end

Sec. 5.

Laws 1993, chapter 375, article 9, section 46, subdivision 5, as amended by Laws

1998, chapter 389, article 8, section 32, Laws 2013, chapter 143, article 8, section 45, and

Laws 2023, chapter 64, article 10, section 5, is amended to read:

Subd. 5.

Expiration of taxing authority.

(a) The authority granted by subdivision 1 to

the city to impose a sales tax shall expire on December 31,
deleted text begin
2042
deleted text end
new text begin
2061
new text end
, or at an earlier time

as the city shall, by ordinance, determine. Any funds remaining after completion of projects

approved under subdivision 2, paragraph (a) and retirement or redemption of any bonds or

other obligations may be placed in the general fund of the city.

(b) The tax imposed under subdivision 1a expires at the earlier of (1) 20 years after the

tax is first imposed, or (2) when the city council determines that the amount of revenues

received from the tax is sufficient to pay for the project costs authorized under subdivision

2b for projects approved by the voters as required under Minnesota Statutes, section
297A.99,

subdivision 3
, paragraph (a), plus an amount sufficient to pay the costs related to issuance

of the bonds under subdivision 3a, including interest on the bonds. Except as otherwise

provided in Minnesota Statutes, section
297A.99, subdivision 3
, paragraph (f), any funds

remaining after payment of the allowed costs due to the timing of the termination of the tax

under Minnesota Statutes, section
297A.99, subdivision 12
, shall be placed in the general

fund of the city. The tax imposed under subdivision 1a 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 the governing body of the

city of St. Paul and its chief clerical officer comply with the requirements of Minnesota

Statutes, section 645.021, subdivisions 2 and 3.

new text end

Sec. 6.

Laws 1996, chapter 471, article 2, section 30, subdivision 5, as amended by Laws

2009, chapter 88, article 4, section 17, is amended to read:

Subd. 5.

Expiration of taxing authority.

The tax imposed under subdivision 1 expires
deleted text begin

30 years after it first becomes effective
deleted text end
new text begin
on July 1, 2056
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 Little Falls and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 7.

Laws 1998, chapter 389, article 8, section 36, is amended to read:

Sec. 36.
CITY OF ST. PAUL; USE OF SALES TAX REVENUES.

The revenue derived from the sales tax imposed by the city of St. Paul under Laws 1993,

chapter 375, article 9, section 46, as amended by Laws 1997, chapter 231, article 7, section

40, that is distributed to the city's cultural STAR program must be awarded through a grant

or loan review process as provided in this section. Eighty percent of the revenue
new text begin
collected

annually
new text end
must be
deleted text begin
annually
deleted text end
awarded to nonprofit arts organizations, libraries, and museums

that are located in the designated cultural district of downtown St. Paul, and the remaining

20 percent may be awarded to businesses in the cultural district for projects which enhance

visitor enjoyment of the district, or to nonprofit arts organizations, libraries, and museums

located in St. Paul but outside of the cultural district. Grants or loans may be used for capital

improvements. The restrictions in this section apply to all STAR cultural funds expended

for projects approved after June 30, 1998.

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 St. Paul and its chief clerical officer comply with the requirements of Minnesota

Statutes, section 645.021, subdivisions 2 and 3.

new text end

Sec. 8.

Laws 1998, chapter 389, article 8, section 37, subdivision 2, as amended by Laws

2002, chapter 377, article 3, section 21, is amended to read:

Subd. 2.

Appointment of members.

deleted text begin
The citizen review panel consists of three residents

from each of the seven city council wards, for a total of 21 members.
deleted text end
The mayor must

appoint the members, and the appointments are subject to confirmation by a majority vote

of the city council. Members serve for a term of four years. Elected officials and employees

of the city are ineligible to serve as members of the panel.

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 St. Paul and its chief clerical officer comply with the requirements of Minnesota

Statutes, section 645.021, subdivisions 2 and 3.

new text end

Sec. 9.

Laws 2005, First Special Session chapter 3, article 5, section 38, as amended by

Laws 2006, chapter 259, article 3, section 6, Laws 2014, chapter 308, article 3, section 23,

and Laws 2017, First Special Session chapter 1, article 5, sections 12 and 13, is amended

by adding a subdivision to read:

new text begin

Subd. 1a.

new text end

new text begin

Authorization; extension.

new text end

new text begin

Notwithstanding Minnesota Statutes, section

477A.016, or any other law, ordinance, or city charter, and if approved by the voters at an

election as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of

Albert Lea may extend the sales and use tax of one-half percent authorized under subdivision

1 for the purposes specified in subdivision 2a. Except as otherwise 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. The tax imposed

under this subdivision is in addition to any local sales and use tax imposed under any other

special law.

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 Albert Lea and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 10.

Laws 2005, First Special Session chapter 3, article 5, section 38, as amended by

Laws 2006, chapter 259, article 3, section 6, Laws 2014, chapter 308, article 3, section 23,

and Laws 2017, First Special Session chapter 1, article 5, sections 12 and 13, is amended

by adding a subdivision to read:

new text begin

Subd. 2a.

new text end

new text begin

Use of revenues; additional projects.

new text end

new text begin

The revenues derived from the tax

authorized under subdivision 1a must be used by the city to pay the costs of collecting and

administering the tax and paying for the following projects in the city, plus associated costs

related to the issuance of bonds used to finance all or part of the following projects:

new text end

new text begin

(1) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),

$20,000,000 for water quality improvements for the Shell Rock Watershed District;

new text end

new text begin

(2) $9,300,000 for the expansion, improvement, and equipping of the Songbird Trail;

new text end

new text begin

(3) $4,500,000 for the expansion, improvement, and equipping of the Albert Lea Public

Library;

new text end

new text begin

(4) $4,700,000 for the Snyder Field Complex, including the expansion, improvement,

and equipping of the Snyder Field Recreation Area; and

new text end

new text begin

(5) $1,500,000 for acquisition, construction, improvement, and equipping of Miracle

Field at Edgewater Park.

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 Albert Lea and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 11.

Laws 2005, First Special Session chapter 3, article 5, section 38, as amended by

Laws 2006, chapter 259, article 3, section 6, Laws 2014, chapter 308, article 3, section 23,

and Laws 2017, First Special Session chapter 1, article 5, sections 12 and 13, is amended

by adding a subdivision to read:

new text begin

Subd. 3a.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The city may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the projects authorized in subdivision

2a and approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this

subdivision may not exceed $40,000,000, plus an amount applied to the payment of the

costs of issuing the bonds. The bonds may be paid from or secured by any money available

to the city, including the tax authorized under subdivision 1a. The issuance of bonds under

this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the city.

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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

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 Albert Lea and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 12.

Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 4,

as amended by Laws 2014, chapter 308, article 3, section 23, and Laws 2017, First Special

Session chapter 1, article 5, section 13, is amended to read:

Subd. 4.

Termination of taxes.

new text begin
(a)
new text end
The taxes imposed under
deleted text begin
this section
deleted text end
new text begin
subdivision 1
new text end

expire at the earlier of (1) 30 years after the taxes are first imposed, or (2) when the city

council first determines that the amount of revenues raised to pay for the projects under

subdivision 2, shall meet or exceed the sum of $30,000,000. Any funds remaining after

completion of the projects may be placed in the general fund of the city.

new text begin

(b) The tax imposed under subdivision 1a expires at the earlier of (1) 30 years after the

tax is first imposed, or (2) when the city council determines that the amount of revenues

received from the tax is sufficient to pay for the project costs authorized under subdivision

2a for projects approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance

of the bonds under subdivision 3a, including interest on the bonds. Except as otherwise

provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any money

remaining after payment of the allowed costs due to the timing of the termination of the tax

under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general

fund of the city. The tax imposed under subdivision 1a 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 the governing body of the

city of Albert Lea and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 13.

Laws 2006, chapter 259, article 3, section 9, is amended by adding a subdivision

to read:

new text begin

Subd. 1a.

new text end

new text begin

Authorization; extension.

new text end

new text begin

Notwithstanding Minnesota Statutes, section

477A.016, or any other law, ordinance, or city charter, and if approved by the voters at an

election as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of

Austin may extend the sales and use tax of one-half percent authorized under subdivision

1 for the purpose specified in subdivision 2a. Except as otherwise 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. The tax authorized

under this subdivision is in addition to any local sales and use tax imposed under any other

special law.

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 Austin and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

new text end

Sec. 14.

Laws 2006, chapter 259, article 3, section 9, is amended by adding a subdivision

to read:

new text begin

Subd. 2a.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 297A.99, subdivisions 2, paragraph (d), and 3, paragraph (b), the revenues derived

from the extension of the tax authorized under subdivision 1a must be used by the city to

pay the costs of collecting and administering the tax, and to finance up to $28,000,000, plus

associated bonding costs, for the following, in connection with a law enforcement center:

(1) the previous purchase of land; (2) utility, site work, and design services; and (3)

construction.

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 Austin and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

new text end

Sec. 15.

Laws 2006, chapter 259, article 3, section 9, is amended by adding a subdivision

to read:

new text begin

Subd. 3a.

new text end

new text begin

Bonds; additional use and extension of tax.

new text end

new text begin

(a) After payment of the bonds

authorized under subdivision 3, the city may issue bonds under Minnesota Statutes, chapter

475, to finance the costs of the facility authorized in subdivision 2a. The aggregate principal

amount of bonds issued under this subdivision may not exceed $28,000,000 for the project

listed in subdivision 2a, plus an amount to be applied to the payment of the costs of issuing

the bonds. The bonds may be paid from or secured by any money available to the city,

including the tax authorized under subdivision 1. The issuance of bonds under this

subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are 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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

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 Austin and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

new text end

Sec. 16.

Laws 2006, chapter 259, article 3, section 9, subdivision 4, is amended to read:

Subd. 4.

Termination of tax.

new text begin
(a)
new text end
The tax authorized under subdivision 1 terminates at

the earlier of:

(1) 20 years after the date of initial imposition of the tax; or

(2) when the Austin City Council determines that the amount described in subdivision

2 has been received from the tax to finance the capital and administrative costs for the

projects specified in subdivision 2, and to repay or retire at maturity, the principal, interest,

and premium due on any bonds issued for the projects under subdivision 3.

Any funds remaining after completion of the projects specified in subdivision 2, and

retirement or redemption of the bonds in subdivision 3, 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

(b) The tax extended under subdivision 1a expires at the earlier of: (1) 20 years after the

tax is first imposed; or (2) when the city determines that the amount received from the tax

is sufficient to pay for the project costs authorized under subdivision 2a, plus an amount

sufficient to pay the costs related to issuance of any bonds authorized under subdivision 3,

including interest on the bonds. Except as otherwise provided in Minnesota Statutes, section

297A.99, subdivision 3, paragraph (f), any money remaining after payment of the allowed

costs due to the timing of the termination of the tax under Minnesota Statutes, section

297A.99, subdivision 12, must 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 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 Austin and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

new text end

Sec. 17.

Laws 2006, chapter 259, article 3, section 10, subdivision 3, as amended by Laws

2014, chapter 308, article 3, section 24, is amended to read:

Subd. 3.

Use of revenues.

(a) Revenues received from the taxes authorized by

subdivisions 1 and 2 must be used to pay the cost of collecting and administering the tax

and to finance the acquisition and betterment of water and wastewater facilities to serve the

cities of Brainerd and Baxter, building and equipping a fire substation, as approved by the

voters at the referendum authorizing the tax. Authorized costs include, but are not limited

to, acquiring property and paying construction and engineering costs related to the projects.

(b) In addition to the projects authorized in paragraph (a), the city of Baxter may, if

approved by the voters at an election under subdivision 5, paragraph (b), allocate up to an

additional $40,000,000 of the revenues received from the taxes authorized by subdivisions

1 and 2 to a capital infrastructure fund. Money from this fund may only be used to finance

(1) sanitary sewer, storm sewer, and water projects, (2) transportation safety improvements,

and (3) improvements to the Brainerd Lakes Area Airport.

new text begin

(c) In addition to the projects authorized in paragraphs (a) and (b), the city of Baxter

may, if approved by the voters at an election as required under Minnesota Statutes, section

297A.99, subdivision 3, allocate the revenues received from the taxes authorized by

subdivisions 1 and 2 to pay for projects in the city, including the costs of collecting and

administering the tax and securing and paying debt service on bonds issued to finance all

or part of the following projects, including property acquisition:

new text end

new text begin

(1) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraphs (a),

clauses (4) and (5), and (d), $67,000,000 for upgrades and improvements to the water and

wastewater utility systems; and

new text end

new text begin

(2) $10,000,000 for construction of a new public safety facility.

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 Baxter and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

new text end

Sec. 18.

Laws 2006, chapter 259, article 3, section 10, subdivision 4, as amended by Laws

2014, chapter 308, article 3, section 25, is amended to read:

Subd. 4.

Bonds.

(a) The city of Baxter, pursuant to the approval of the voters at the

November 2, 2004, referendum authorizing the imposition of the taxes in this section, may

issue general obligation bonds of the city, in one or more series, in the aggregate principal

amount not to exceed $15,000,000 to finance the projects listed in subdivision 3, paragraph

(a). The debt represented by the bonds is not 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 and interest on the bonds is not subject to any levy limitation or

included in computing or applying any levy limitation applicable to the city of Baxter.

(b) The city of Baxter, pursuant to the approval of the voters at the 2014 general election

to extend the tax under this section, may issue general obligation bonds of the city, in one

or more series, in the aggregate principal amount not to exceed (1) $32,000,000 plus an

amount equal to the costs of issuance of the bonds to finance the projects listed in subdivision

3, paragraph (b), clauses (1) and (2), and (2) $8,000,000 plus an amount equal to the costs

of the issuance of the bonds to finance the project listed in subdivision 3, paragraph (b),

clause (3). The debt represented by the bonds is not 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 and interest on the bonds is not subject to any levy

limitation or included in computing or applying any levy limitation applicable to the city

of Baxter.

new text begin

(c) The city of Baxter may issue bonds under Minnesota Statutes, chapter 475, to finance

all or a portion of the costs of the projects authorized in subdivision 3, paragraph (c), and

approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision

3, paragraph (a). The aggregate principal amount of bonds issued for this purpose must not

exceed $77,000,000, plus an amount applied to the payment of costs of issuing the bonds.

The bonds may be issued as general obligations of the city and may be paid from or secured

by any funds available to the city, including the tax authorized under subdivision 1. The

issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60

and 275.61. The bonds are not included in computing any debt limitation applicable to the

city. 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. A separate election to approve

the bonds under Minnesota Statutes, section 475.58, is not required.

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 Baxter and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

new text end

Sec. 19.

Laws 2006, chapter 259, article 3, section 10, subdivision 5, as amended by Laws

2014, chapter 308, article 3, section 26, is amended to read:

Subd. 5.

Termination of taxes.

(a) The taxes imposed under subdivisions 1 and 2 expire

at the earlier of a date 12 years after the imposition of the tax or when the Baxter City

Council first determines that the amount of revenues raised from the taxes to pay for the

projects under subdivision 3 equals or exceeds $15,000,000 plus any interest on bonds

issued for the projects under subdivision 4, paragraph (a). Any funds remaining after the

expiration of the taxes and retirement of the bonds shall be placed in a capital project fund

of the city of Baxter. The taxes imposed under subdivisions 1 and 2 may expire at an earlier

time if the city of Baxter so determines by ordinance.

(b) Notwithstanding Minnesota Statutes, sections
297A.99
and
477A.016
, or any other

contrary provision of law, ordinance, or city charter, the city of Baxter may, by ordinance,

extend the taxes authorized under subdivisions 1 and 2 beyond the termination date in

paragraph (a) if approved by the voters of the city at a general election held in 2014. The

question put to the voters must indicate that an affirmative vote would extend the imposition

of the taxes through 2037 or until an additional $40,000,000, plus an amount equal to interest

and issuance costs associated with bonds issued under subdivision 4, paragraph (b), above

the initial amount authorized to pay for $15,000,000 in bonds and associated bond cost and

projects, listed in subdivision 3, paragraph (a), is raised. If extended under this paragraph,

the taxes authorized in subdivisions 1 and 2 will terminate at the earlier of (1) when an

additional $40,000,000, plus an amount equal to interest and issuance costs associated with

bonds issued under subdivision 4, paragraph (b), above the amount authorized under

paragraph (a), is raised, or (2) December 31, 2037.

new text begin

(c) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, ordinance,

or city charter, the city of Baxter may, by ordinance, extend the taxes authorized under

subdivisions 1 and 2 beyond the termination date in paragraph (a) if approved by the voters

as required under Minnesota Statutes, section 297A.99, subdivision 3, paragraphs (a) and

(b). If extended under this paragraph, the taxes authorized in subdivisions 1 and 2 will

terminate at the earlier of: (1) when an additional $77,000,000, plus an amount equal to

interest and issuance costs associated with bonds issued under subdivision 4, paragraph (c),

above the amount authorized under paragraphs (a) and (b), is raised; or (2) 20 years after

the tax is extended.

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 Baxter and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

new text end

Sec. 20.

Laws 2019, First Special Session chapter 6, article 6, section 17, subdivision 1,

is amended to read:

Subdivision 1.

Sales and use tax authorization.

new text begin
(a)
new text end
Notwithstanding Minnesota Statutes,

section
297A.99, subdivision 1
, or
477A.016
, or any other law or ordinance, and as approved

by the voters at the November 6, 2018, general election, the city of Elk River may impose,

by ordinance, a sales and use tax of one-half of one percent for the purposes specified in

subdivision 2. Except as otherwise 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 begin

(b) If approved by the voters at a general election pursuant to Minnesota Statutes, section

297A.99, subdivision 3, paragraph (a), the city must use the revenues derived from the tax

authorized under paragraph (a) for the purpose specified in subdivision 2a.

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 Elk River and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 21.

Laws 2019, First Special Session chapter 6, article 6, section 17, is amended by

adding a subdivision to read:

new text begin

Subd. 2a.

new text end

new text begin

Use of revenues.

new text end

new text begin

In addition to the uses authorized under subdivision 2, the

revenues derived from the tax authorized under subdivision 1 must be used by the city of

Elk River to finance up to $20,000,000, plus associated bonding costs, for bonds issued

under subdivision 3 for construction of a new fire station. The project authorized under this

subdivision does not extend the termination requirements in subdivision 4.

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 Elk River and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 22.

Laws 2019, First Special Session chapter 6, article 6, section 17, subdivision 3,

is amended to read:

Subd. 3.

Bonding authority.

(a) The city of Elk River may issue bonds under Minnesota

Statutes, chapter 475, to finance all or a portion of the costs of the
deleted text begin
project
deleted text end
new text begin
projects
new text end
authorized

in
deleted text begin
subdivision
deleted text end
new text begin
subdivisions
new text end
2
new text begin
and 2a
new text end
. The aggregate principal amount of bonds issued under

this subdivision may not exceed
deleted text begin
$35,000,000
deleted text end
new text begin
$55,000,000
new text end
, plus an amount applied to the

payment of costs of issuing the bonds. The bonds may be paid from or secured by any funds

available to the city of Elk River, including the tax authorized under subdivision 1. The

issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections
275.60

and
275.61
.

(b) The bonds are not included in computing any debt limitation applicable to the city.

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. A separate election to approve the bonds

under Minnesota Statutes, section
475.58
, is not required.

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 Elk River and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 23.

Laws 2019, First Special Session chapter 6, article 6, section 17, subdivision 4,

is amended to read:

Subd. 4.

Termination of taxes.

The tax imposed under subdivision 1 expires at the

earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines

that the city has received
deleted text begin
$35,000,000
deleted text end
new text begin
$55,000,000
new text end
from this tax to fund the projects listed

in
deleted text begin
subdivision
deleted text end
new text begin
subdivisions
new text end
2
new text begin
and 2a
new text end
plus an amount sufficient to pay costs, including interest

costs, related to the issuance of the bonds authorized in subdivision 3. Any funds remaining

after payment of the allowed costs due to timing of the termination under section
297A.99

shall be placed in the city's general fund. 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 the governing body of the

city of Elk River and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 24.

Laws 2019, First Special Session chapter 6, article 6, section 28, is amended by

adding a subdivision to read:

new text begin

Subd. 1a.

new text end

new text begin

Sales and use tax authorization; modification and voter

approval.

new text end

new text begin

Notwithstanding Minnesota Statutes, section 477A.016, or any other law,

ordinance, or city charter, the modifications to bonding authority in subdivision 3 and the

amount of tax that may be collected before the termination of taxes in subdivision 4 are

effective if approved by the voters at an election as required under Minnesota Statutes,

section 297A.99, subdivision 3, paragraph (a).

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 Sauk Centre and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 25.

Laws 2019, First Special Session chapter 6, article 6, section 28, subdivision 3,

is amended to read:

Subd. 3.

Bonding authority.

(a) The city may issue bonds under Minnesota Statutes,

chapter 475, to pay the costs of the projects authorized in subdivision 2. The aggregate

principal amount of bonds issued under this subdivision may not exceed
deleted text begin
$10,000,000
deleted text end
new text begin

$15,000,000
new text end
plus an amount to be applied to the payment of the costs of issuing the bonds.

The bonds may be paid from or secured by any funds available to the city, including the

tax authorized under subdivision 1. The issuance of bonds under this subdivision is not

subject to Minnesota Statutes, sections
275.60
and
275.61
.

(b) The bonds are 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. A separate election to approve the bonds

under Minnesota Statutes, section
475.58
, is not required.

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 Sauk Centre and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 26.

Laws 2019, First Special Session chapter 6, article 6, section 28, subdivision 4,

is amended to read:

Subd. 4.

Termination of taxes.

The tax imposed under subdivision 1 expires at the

earlier of: (1) December 31, 2045; or (2) when the city council determines that
deleted text begin
$10,000,000
deleted text end
new text begin

$15,000,000
new text end
has been received from the tax to pay for the cost of the projects authorized

under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the

bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining

after payment of all such costs and retirement or redemption of the bonds shall 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 the governing body of the

city of Sauk Centre and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 27.

Laws 2021, First Special Session chapter 14, article 8, section 5, subdivision 2,

as amended by Laws 2023, chapter 64, article 10, section 17, is amended to read:

Subd. 2.

Use of sales and use tax revenues
new text begin
; requirements
new text end
.

new text begin
(a)
new text end
The revenues derived

from the tax authorized under subdivision 1 must be used by the city of Edina to pay the

costs of collecting and administering the tax and paying for the following projects in the

city, including securing and paying debt service on bonds issued to finance all or part of

the following projects:

(1) $17,700,000 plus associated bonding costs for development of Fred Richards Park

as identified in the Fred Richards Park Master Plan;
deleted text begin
and
deleted text end

(2)
deleted text begin
$53,300,000
deleted text end
new text begin
$56,300,000
new text end
plus associated bonding costs for improvements to Braemar
deleted text begin

Park
deleted text end

new text begin
Ice Arena
new text end
as identified in the Braemar Park Master Plan
deleted text begin
.
deleted text end
new text begin
;
new text end

new text begin

(3) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (a),

clauses (1) to (4), $35,000,000 plus associated bonding costs for design and construction

of new public safety facilities;

new text end

new text begin

(4) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (a),

clauses (1) to (4), $6,000,000 plus associated bonding costs for tenant improvements to the

Edina Art Center;

new text end

new text begin

(5) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (a),

clauses (1) to (4), $8,000,000 plus associated bonding costs for a capital improvement plan

for the Edina Aquatic Center; and

new text end

new text begin

(6) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (a),

clauses (1) to (4), $4,000,000 plus associated bonding costs for design of the Braemar Golf

Course Clubhouse.

new text end

new text begin

(b) Use of tax revenues for the projects listed in paragraph (a), clauses (3) to (6), is

subject to voter approval at the November 3, 2026, general election.

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 Edina and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

new text end

Sec. 28.

Laws 2021, First Special Session chapter 14, article 8, section 5, subdivision 3,

as amended by Laws 2023, chapter 64, article 10, section 17, is amended to read:

Subd. 3.

Bonding authority.

(a) The city of Edina may issue bonds under Minnesota

Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in

subdivision 2 and approved by the voters as required under Minnesota Statutes, section

297A.99, subdivision 3
, paragraph (a). The aggregate principal amount of bonds issued

under this subdivision may not exceed: (1) $17,700,000 for the project listed in subdivision

2,
new text begin
paragraph (a),
new text end
clause (1), plus an amount to be applied to the payment of the costs of

issuing the bonds;
deleted text begin
and
deleted text end
(2)
deleted text begin
$53,300,000
deleted text end
new text begin
$56,300,000
new text end
for the project listed in subdivision 2,
new text begin

paragraph (a),
new text end
clause (2), plus an amount to be applied to the payment of the costs of issuing

the bonds
new text begin
; (3) $35,000,000 for the project listed in subdivision 2, paragraph (a), clause (3),

plus an amount to be applied to the payment of the costs of issuing the bonds; (4) $6,000,000

for the project listed in subdivision 2, paragraph (a), clause (4), plus an amount to be applied

to the payment of the costs of issuing the bonds; (5) $8,000,000 for the project listed in

subdivision 2, paragraph (a), clause (5), plus an amount to be applied to the payment of the

costs of issuing the bonds; and (6) $4,000,000 for the project listed in subdivision 2,

paragraph (a), clause (6), plus an amount to be applied to the payment of the costs of issuing

the bonds
new text end
. The bonds may be paid from or secured by any funds available to the city of

Edina, including the tax authorized under subdivision 1. The issuance of bonds under this

subdivision is not subject to Minnesota Statutes, sections
275.60
and
275.61
.

(b) The bonds are not included in computing any debt limitation applicable to the city

of Edina, 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. A separate election to approve

the bonds under Minnesota Statutes, section
475.58
, is not required.

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 Edina and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

new text end

Sec. 29.
new text begin
CITY OF ALEXANDRIA; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters

at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the

city of Alexandria may impose by ordinance a sales and use tax of up to one-quarter of one

percent for the purposes specified in subdivision 2. Except as otherwise 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.

The tax authorized under this subdivision is in addition to any local sales and use tax imposed

under any other special law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the city to pay the costs of collecting and administering

the tax and to finance up to $30,000,000, plus associated bonding costs, for the expansion

and renovation of the PrimeWest Health Runestone Community Center.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The city may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the project authorized in subdivision

2 and approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this

subdivision may not exceed $30,000,000, plus an amount applied to the payment of the

costs of issuing the bonds. The bonds may be paid from or secured by any money available

to the city including the tax authorized under subdivision 1. The issuance of bonds under

this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the city.

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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years

after the tax is first imposed, or (2) when the city council determines that the amount received

from the tax is sufficient to pay for the project costs authorized under subdivision 2 if

approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision

3, paragraph (a), plus an amount sufficient to pay the costs related to issuance of any bonds

authorized under subdivision 3, including interest on the bonds. Except as otherwise provided

in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any money remaining

after payment of the allowed costs due to the timing of the termination of the tax under

Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the general fund of

the city. The tax authorized 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 the governing body of the

city of Alexandria and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 30.
new text begin
CITY OF AUDUBON; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters

at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the

city of Audubon may impose by ordinance a sales and use tax of up to one-half of one

percent for the purposes specified in subdivision 2. Except as otherwise provided in this

section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,

administration, collection, and enforcement of the tax imposed under this subdivision. The

tax authorized under this subdivision is in addition to any local sales and use tax authorized

under any other special law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the city to pay the costs of collecting and administering

the tax and to finance up to $3,000,000, plus associated bonding costs, for construction of

a new fire station.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The city may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the project authorized in subdivision

2 and approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this

subdivision may not exceed $3,000,000, plus an amount applied to the payment of the costs

of issuing the bonds. The bonds may be paid from or secured by any money available to

the city, including the tax authorized under subdivision 1. The issuance of bonds under this

subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the city.

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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years

after the tax is first imposed, or (2) when the city council determines that the amount received

from the tax is sufficient to pay for the project costs authorized under subdivision 2 if

approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision

3, paragraph (a), plus an amount sufficient to pay the costs related to issuance of any bonds

authorized under subdivision 3, including interest on the bonds. Except as otherwise provided

in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any money remaining

after payment of the allowed costs due to the timing of the termination of the tax under

Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the general fund of

the city. The tax authorized 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 the governing body of the

city of Audubon and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 31.
new text begin
CITY OF BLAINE; RESTAURANT, LODGING, AND ADMISSIONS

TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Scope.

new text end

new text begin

Notwithstanding Minnesota Statutes, section 477A.016, or any

other law, ordinance, or city charter provision to the contrary, the city of Blaine may, by

ordinance, impose one or more taxes authorized under subdivision 3 on sales transactions

occurring within or into the boundaries of the taxing area.

new text end

new text begin

Subd. 2.

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

(1) "city" means the city of Blaine;

new text end

new text begin

(2) "tax" means a tax imposed under this special law and authorized under subdivision

3; and

new text end

new text begin

(3) "taxing area" means the geographic area within the city known as the 105th

Redevelopment Area as identified in the city's zoning ordinance and zoning map.

new text end

new text begin

Subd. 3.

new text end

new text begin

Taxes authorized.

new text end

new text begin

(a) The city may by ordinance impose one or more of the

following taxes:

new text end

new text begin

(1) a tax of not more than three percent on the gross receipts of all food and beverages

sold by a restaurant or place of refreshment, as defined by city ordinance, located within

the taxing area, including retail on-sale of intoxicating liquor and fermented malt beverages

and all sales of food primarily for consumption on or off the premises;

new text end

new text begin

(2) a tax of not more than three percent on the gross receipts from the furnishing for

consideration of lodging for a period of less than 30 days at a hotel, motel, rooming house,

tourist court, or trailer camp located within the taxing area by a hotel or motel that has more

than 50 rooms available for lodging. The tax imposed under this clause is in addition to any

tax imposed under Minnesota Statutes, section 469.190, and the total tax imposed under

that section and this provision must not exceed six percent; and

new text end

new text begin

(3) a tax of not more than three percent on the gross receipts from the furnishing for

consideration of the privilege of admission to places of amusement or athletic events located

within the taxing area and the privilege of use of amusement devices located within the

taxing area.

new text end

new text begin

(b) The taxes must be imposed and may be adjusted periodically by the city council so

that the rates imposed produce revenue sufficient to finance the purposes described in

subdivision 4, but the tax rate may not increase by more than one percentage point over the

rates first imposed by ordinance.

new text end

new text begin

Subd. 4.

new text end

new text begin

Use of revenues.

new text end

new text begin

The city must use the revenues received from the taxes only

for initial and ongoing financing of capital improvements within the taxing area as provided

in this subdivision. The city may use the revenues to:

new text end

new text begin

(1) pay or secure the payment of any principal of, premium on, or interest on bonds

issued in accordance with this section;

new text end

new text begin

(2) pay costs to acquire, design, equip, construct, improve, maintain, operate, administer,

or promote the facilities and capital improvements, including financing costs related to

them; and

new text end

new text begin

(3) maintain reserves for the foregoing purposes deemed reasonable and appropriate by

the city.

new text end

new text begin

Subd. 5.

new text end

new text begin

Bond authority.

new text end

new text begin

The city may issue bonds under Minnesota Statutes, chapter

475, to finance all or a portion of the costs of the development and construction projects

located within the taxing area. The bonds are 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. The issuance

of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and

275.61.

new text end

new text begin

Subd. 6.

new text end

new text begin

Collection and enforcement.

new text end

new text begin

The commissioner of revenue and the city may

enter into an agreement to provide for the collection of the taxes by the state on behalf of

the city. The taxes are subject to the same interest, penalties, and enforcement provisions

as the taxes imposed under Minnesota Statutes, chapter 297A.

new text end

new text begin

Subd. 7.

new text end

new text begin

Termination of taxes.

new text end

new text begin

The taxes authorized by this section must not be

terminated before January 1, 2055.

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 Blaine and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

new text end

Sec. 32.
new text begin
CITY OF CALEDONIA; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

sections 297A.99, subdivision 2, paragraphs (a) to (c), and 477A.016, or any other law or

ordinance, and if approved by the voters at an election as required under Minnesota Statutes,

section 297A.99, subdivision 3, the city of Caledonia may impose by ordinance a sales and

use tax of up to one-quarter percent for the purposes specified in subdivision 2. Except as

otherwise 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. The tax authorized under this subdivision is in addition to any local

sales and use tax imposed under any other special law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the city to pay the costs of collecting and administering

the tax and to finance up to $1,600,000, plus associated bonding costs and interest, for

construction of a Public Safety Center.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The city may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the project authorized in subdivision

2 and approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this

subdivision may not exceed $1,600,000, plus an amount applied to the payment of the costs

of issuing the bonds. The bonds may be paid from or secured by any money available to

the city, including the tax authorized under subdivision 1. The issuance of bonds under this

subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the city.

Any levy of taxes under Minnesota Statutes, section 475.61, to pay the principal of and

interest on the bonds is not subject to any levy limitation. A separate election to approve

the bonds under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) ten years

after the tax is first imposed, or (2) when the city council determines that the amount received

from the tax is sufficient to pay for the project costs authorized under subdivision 2 if

approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision

3, paragraph (a), plus an amount sufficient to pay the costs related to issuance of any bonds

authorized under subdivision 3, including interest on the bonds. Except as otherwise provided

in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any money remaining

after payment of the allowed costs due to the timing of the termination of the tax under

Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the general fund of

the city. The tax authorized 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 the governing body of the

city of Caledonia and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 33.
new text begin
CITY OF CHAMPLIN; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters

at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the

city of Champlin may impose by ordinance a sales and use tax of up to one-half of one

percent for the purposes specified in subdivision 2. Except as otherwise 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.

The tax authorized under this subdivision is in addition to any local sales and use tax

authorized under any other special law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The city must use the revenues derived

from the tax authorized under subdivision 1 to pay the costs of collecting and administering

the tax and to finance up to $18,000,000, plus associated bonding costs, for construction of

a new indoor athletic facility.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The city may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the project authorized in subdivision

2 and approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this

subdivision may not exceed $18,000,000, plus an amount applied to the payment of the

costs of issuing the bonds. The bonds may be paid from or secured by any money available

to the city, including the tax authorized under subdivision 1. The issuance of bonds under

this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the city.

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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 30 years

after the tax is first imposed, or (2) when the city council determines that the amount received

from the tax is sufficient to pay for the project costs authorized under subdivision 2 and

approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision

3, paragraph (a), plus an amount sufficient to pay the costs related to issuance of any bonds

authorized under subdivision 3, including interest on the bonds. Except as otherwise provided

in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any money remaining

after payment of the allowed costs due to the timing of the termination of the tax under

Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the general fund of

the city. The tax authorized 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 the governing body of the

city of Champlin and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 34.
new text begin
CLOQUET AREA FIRE DISTRICT; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

(a) Notwithstanding Minnesota Statutes,

section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters

within the Cloquet Area Fire District at an election as required under Minnesota Statutes,

section 297A.99, subdivision 3, the Cloquet Area Fire District may impose by majority vote

of the governing body of the district a sales and use tax of up to one-half of one percent for

the purpose specified in subdivision 2.

new text end

new text begin

(b) Except as otherwise 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. In accordance with Minnesota Statutes, section

297A.99, subdivision 11, the commissioner of revenue must remit the proceeds of the tax,

less refunds and a proportionate share of the cost of collection, to the Cloquet Area Fire

District. The tax authorized under this subdivision is in addition to any local sales and use

tax authorized under any other special law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the Cloquet Area Fire District to pay the costs of

collecting and administering the tax, and to finance up to $18,609,000 for the construction

of Ambulance and Fire Station I for the district, as well as securing and paying debt service

on bonds issued to finance all or part of this project.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The Cloquet Area Fire District may issue bonds under

Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project

authorized in subdivision 2 and approved by voters as required under Minnesota Statutes,

section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds

issued under this subdivision may not exceed $18,609,000, plus an amount applied to the

payment of the costs of issuing the bonds. The bonds may be paid from or secured by any

funds available to the Cloquet Area Fire District, including the tax authorized under

subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota

Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the Cloquet

Area Fire District. 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. A separate election

to approve the bonds under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years

after the tax is first authorized, or (2) when the Cloquet Area Fire District determines that

the amount received from the tax is sufficient to pay for the project cost authorized under

subdivision 2 if approved by voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance

of any bonds authorized under subdivision 3, including interest on the bonds. Except as

otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),

any funds remaining after payment of the allowed costs due to the timing of the termination

of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the

general fund of the district. The tax authorized under subdivision 1 may expire at an earlier

time if the governing body of the district so determines.

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

Cloquet Area Fire District and its chief clerical officer comply with Minnesota Statutes,

section 645.021, subdivisions 2 and 3.

new text end

Sec. 35.
new text begin
CITY OF COON RAPIDS; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters

at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the

city of Coon Rapids may impose by ordinance a sales and use tax of up to one-half of one

percent for the purposes specified in subdivision 2. Except as otherwise 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.

The tax authorized under this subdivision is in addition to any local sales and use tax

authorized under any other special law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the city to pay for the following projects in the city,

including the costs of collecting and administering the tax and securing and paying debt

service on bonds issued to finance all or part of the projects:

new text end

new text begin

(1) $40,000,000 for renovation and expansion of the police department and city center

facility, including the city hall and civic center; and

new text end

new text begin

(2) $40,000,000 for the construction of a new community center and expansion of the

Coon Rapids Ice Center.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The city may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the projects authorized in subdivision

2 and approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this

subdivision may not exceed $80,000,000, plus an amount applied to the payment of the

costs of issuing the bonds. The bonds may be paid from or secured by any money available

to the city, including the tax authorized under subdivision 1. The issuance of bonds under

this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the city.

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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 25 years

after the tax is first imposed, or (2) when the city council determines that the amount received

from the tax is sufficient to pay for the project costs authorized under subdivision 2 for

projects approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance

of any bonds authorized under subdivision 3, including interest on the bonds. Except as

otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),

any money remaining after payment of the allowed costs due to the timing of the termination

of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must 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 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 Coon Rapids and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 36.
new text begin
DOUGLAS COUNTY; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any other law or ordinance, and if approved by the voters at an election

as required under Minnesota Statutes, section 297A.99, subdivision 3, Douglas County may

impose by ordinance a sales and use tax of up to one-quarter of one percent for the purposes

specified in subdivision 2. Except as otherwise 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. The tax authorized under this

subdivision is in addition to any local sales and use tax imposed under any other special

law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the county to pay the costs of collecting and

administering the tax and to finance up to $18,500,000, plus associated bonding costs, for

the construction of a new library.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The county may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the project authorized in subdivision

2 and approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this

subdivision may not exceed $18,500,000, plus an amount applied to the payment of the

costs of issuing the bonds. The bonds may be paid from or secured by any money available

to the county, including the tax authorized under subdivision 1. The issuance of bonds under

this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the county.

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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) ten years

after the tax is first imposed, or (2) when the county board determines that the amount

received from the tax is sufficient to pay for the project costs authorized under subdivision

2 if approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance

of any bonds authorized under subdivision 3, including interest on the bonds. Except as

otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),

any money remaining after payment of the allowed costs due to the timing of the termination

of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the

general fund of the county. The tax authorized under subdivision 1 may expire at an earlier

time if the county 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 the governing body of

Douglas County and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 37.
new text begin
CITY OF FOREST LAKE; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters

at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the

city of Forest Lake may impose by ordinance a sales and use tax of up to one-half of one

percent for the purposes specified in subdivision 2. Except as otherwise 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.

The tax authorized under this subdivision is in addition to any local sales and use tax imposed

under any other special law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the city to pay the costs of collecting and administering

the tax and to finance up to $50,000,000, plus associated bonding costs, for construction of

a new public works facility.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The city may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the project authorized in subdivision

2 and approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this

subdivision may not exceed $50,000,000, plus an amount applied to the payment of the

costs of issuing the bonds. The bonds may be paid from or secured by any money available

to the city, including the tax authorized under subdivision 1. The issuance of bonds under

this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the city.

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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years

after the tax is first imposed, or (2) when the city council determines that the amount received

from the tax is sufficient to pay for the project costs authorized under subdivision 2 if

approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision

3, paragraph (a), plus an amount sufficient to pay the costs related to issuance of any bonds

authorized under subdivision 3, including interest on the bonds. Except as otherwise provided

in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any money remaining

after payment of the allowed costs due to the timing of the termination of the tax under

Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the general fund of

the city. The tax authorized 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 the governing body of the

city of Forest Lake and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 38.
new text begin
ISANTI COUNTY; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters

at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, Isanti

County may impose, by ordinance, a sales and use tax of up to one-quarter percent for the

purposes specified in subdivision 2. Except as otherwise 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. The tax authorized

under this subdivision is in addition to any local sales and use tax imposed under any other

special law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the county to pay the costs of collecting and

administering the tax, and to finance up to $25,000,000 for construction of the new highway

department facility, as well as the associated bond costs for any bonds issued under

subdivision 3.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The county may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the project authorized in subdivision

2. The aggregate principal amount of bonds issued under this subdivision may not exceed

$25,000,000, plus an amount applied to the payment of costs of issuing the bonds.

new text end

new text begin

(b) The bonds may be paid from or secured by any money available to the county,

including the tax authorized under subdivision 1. The issuance of bonds under this

subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(c) The bonds are not included in computing any debt limitation applicable to the county.

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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

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 authorized under subdivision 1 expires at the

earlier of: (1) 25 years after the tax is first imposed; or (2) when the county determines that

it has received from this tax $25,000,000 to fund the project listed in subdivision 2, plus an

amount sufficient to pay costs related to issuance of any bonds authorized under subdivision

3, including interest on the bonds. Except as otherwise provided in Minnesota Statutes,

section 297A.99, subdivision 3, paragraph (f), any money remaining after payment of the

allowed costs due to timing of the termination of the tax under Minnesota Statutes, section

297A.99, subdivision 12, shall be placed in the county's general fund. The tax authorized

under subdivision 1 may expire at an earlier time if the county determines by ordinance.

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 Isanti

County and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

new text end

Sec. 39.
new text begin
CITY OF LANESBORO; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters

at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the

city of Lanesboro may impose by ordinance a sales and use tax of up to one-half of one

percent for the purposes specified in subdivision 2. Except as otherwise 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.

The tax authorized under this subdivision is in addition to any local sales and use tax imposed

under any other special law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the city to pay the costs of collecting and administering

the tax and to finance up to $500,000 for rehabilitation and improvements to Sylvan Park.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The city of Lanesboro may issue bonds under Minnesota

Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in

subdivision 2 and approved by the voters at an election as required under Minnesota Statutes,

section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds

issued under this subdivision may not exceed $500,000, plus an amount applied to the

payment of the costs of issuing the bonds. The bonds may be paid from or secured by any

money available to the city, including the tax authorized under subdivision 1. The issuance

of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and

275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the city.

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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) five years

after the tax is first imposed, or (2) when the city council determines that the amount received

from the tax is sufficient to pay for the project costs authorized under subdivision 2 for

projects approved by the voters at an election as required under Minnesota Statutes, section

297A.99, subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to

issuance of any bonds authorized under subdivision 3, including interest on the bonds.

Except as otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3,

paragraph (f), any money remaining after payment of the allowed costs due to the timing

of the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 12,

must be placed in the general fund of the city. The tax authorized 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 the governing body of the

city of Lanesboro and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 40.
new text begin
CITY OF MAPLEWOOD; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any other law or ordinance, and if approved by the voters at an election

as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of Maplewood

may impose by ordinance a sales and use tax of up to one-half percent for the purposes

specified in subdivision 2. Except as otherwise 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. The tax authorized under this

subdivision is in addition to any local sales and use tax imposed under any other special

law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the city to pay the costs of collecting and administering

the tax and paying for the following projects in the city, plus associated costs related to the

issuance of bonds used to finance all or part of the following projects:

new text end

new text begin

(1) $25,000,000 for the East Metro Public Safety Training Facility; and

new text end

new text begin

(2) $48,000,000 for the Maplewood Community Center.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The city may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the projects authorized in subdivision

2 and approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this

subdivision may not exceed $73,000,000, plus an amount applied to the payment of the

costs of issuing the bonds. The bonds may be paid from or secured by any money available

to the city, including the tax authorized under subdivision 1. The issuance of bonds under

this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the city.

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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years

after the tax is first imposed, or (2) when the city council determines that the amount received

from the tax is sufficient to pay for the project costs authorized under subdivision 2 for

projects approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance

of any bonds authorized under subdivision 3, including interest on the bonds. Except as

otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),

any money remaining after payment of the allowed costs due to the timing of the termination

of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the

general fund of the city. The tax authorized 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 the governing body of the

city of Maplewood and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 41.
new text begin
CITY OF MINNETONKA; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters

at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the

city of Minnetonka may impose by ordinance a sales and use tax of up to one-half of one

percent for the purposes specified in subdivision 2. Except as otherwise 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.

The tax authorized under this subdivision is in addition to any local sales and use tax

authorized under any other special law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the city to pay for the following projects in the city,

including the costs of collecting and administering the tax and securing and paying debt

service on bonds issued to finance all or part of the following projects:

new text end

new text begin

(1) $13,000,000 for the new construction of Fire Station 2;

new text end

new text begin

(2) $17,600,000 for the new construction of Fire Station 3; and

new text end

new text begin

(3) $35,000,000 for renovations to The Marsh health and wellness center.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The city may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the projects authorized in subdivision

2 and approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this

subdivision may not exceed $65,600,000, plus an amount applied to the payment of the

costs of issuing the bonds. The bonds may be paid from or secured by any money available

to the city, including the tax authorized under subdivision 1. The issuance of bonds under

this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the city.

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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 30 years

after the tax is first imposed, or (2) when the city council determines that the amount received

from the tax is sufficient to pay for the project costs authorized under subdivision 2 for

projects approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance

of any bonds authorized under subdivision 3, including interest on the bonds. Except as

otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),

any money remaining after payment of the allowed costs due to the timing of the termination

of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the

general fund of the city. The tax authorized 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 the governing body of the

city of Minnetonka and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 42.
new text begin
CITY OF NORTHFIELD; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters

at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the

city of Northfield may impose by ordinance a sales and use tax of up to one-half of one

percent for the purposes specified in subdivision 2. Except as otherwise 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.

The tax authorized under this subdivision is in addition to any local sales and use tax imposed

under any other special law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the city to pay for the following projects in the city,

including the costs of collecting and administering the tax and to pay or finance the costs

of the following projects, plus costs of issuance and debt service on associated bonds:

new text end

new text begin

(1) $2,800,000 for the acquisition, rehabilitation, and betterment of the Northfield Public

Library;

new text end

new text begin

(2) $2,800,000 for the acquisition, rehabilitation, and betterment of the Northfield

Community Resource Center; and

new text end

new text begin

(3) $7,500,000 for the acquisition and betterment of interconnected city Riverfront Parks.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The city may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the projects authorized in subdivision

2 and approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this

subdivision may not exceed $13,100,000, plus an amount applied to the payment of the

costs of issuing the bonds. The bonds may be issued as general obligations of the city and

may be paid from or secured by any money available to the city, including the tax authorized

under subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota

Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the city.

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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years

after the tax is first imposed, or (2) when the city council determines that the amount received

from the tax is sufficient to pay for the project costs authorized under subdivision 2 for

projects approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance

of any bonds authorized under subdivision 3, including interest on the bonds. Except as

otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),

any money remaining after payment of the allowed costs due to the timing of the termination

of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the

general fund of the city. The tax authorized 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 the governing body of the

city of Northfield and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 43.
new text begin
CITY OF OAK PARK HEIGHTS; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 297A.99, subdivision 2, paragraphs (a) and (b), or 477A.016, or any other law,

ordinance, or city charter, and if approved by the voters at a general election as required

under Minnesota Statutes, section 297A.99, subdivision 3, the city of Oak Park Heights

may impose by ordinance a sales and use tax of up to one-half percent for the purposes

specified in subdivision 2. Except as otherwise 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. The tax authorized under this

subdivision is in addition to any local sales and use tax imposed under any other special

law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

(a) The revenues derived from the tax

authorized under subdivision 1 must be used by the city to pay for the following projects

in the city, including the costs of collecting and administering the tax and securing and

paying debt service on bonds issued to finance all or part of the following projects:

new text end

new text begin

(1) $13,000,000 for water main infrastructure improvements;

new text end

new text begin

(2) $3,000,000 for water tower infrastructure improvements; and

new text end

new text begin

(3) $25,000,000 for a perfluoroalkyl and polyfluoralkyl substances (PFAS) removal

water treatment facility.

new text end

new text begin

(b) The city must adopt an amended resolution in support of the use of revenues from

the tax authorized under subdivision 1 for the uses listed in paragraph (a). The resolution

must include the components of the resolution required under Minnesota Statutes, section

297A.99, subdivision 2, paragraph (a), for each project listed in paragraph (a). The city

must submit the resolution to the state auditor no later than August 31 of the year the city

presents the tax for voter approval as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The question to approve the tax as required under Minnesota

Statutes, section 297A.99, subdivision 3, paragraph (a), must indicate the purposes for which

the revenues must be used as included in the amended resolution.

new text end

new text begin

(c) If the city does not adopt and submit the amended resolution under paragraph (b),

the question presented to the voters under Minnesota Statutes, section 297A.99, subdivision

3, paragraph (a), must not include, and revenues from the tax authorized under subdivision

1 must not be used for, the purposes specified in paragraph (a).

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The city may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the water infrastructure facilities and

systems authorized in subdivision 2 and approved by the voters as required under Minnesota

Statutes, section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of

bonds issued under this subdivision may not exceed $41,000,000 for the projects listed in

subdivision 2 plus an amount to be applied to the payment of the costs of issuing the bonds.

new text end

new text begin

(b) The bonds may be paid from or secured by any money available to the city of Oak

Park Heights, including the tax authorized under subdivision 1 and the full faith and credit

of the city. The issuance of bonds under this subdivision is not subject to Minnesota Statutes,

sections 275.60 and 275.61.

new text end

new text begin

(c) The bonds are not included in computing any debt limitation applicable to the city

of Oak Park Heights 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. A separate election

to approve the bonds under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years

after being first imposed, or (2) when the city council determines that $41,000,000 has been

received from the tax to fund the project authorized under subdivision 2, plus an amount

sufficient to pay the costs related to issuance of any bonds authorized under subdivision 3,

including interest on the bonds. Except as otherwise provided in Minnesota Statutes, section

297A.99, subdivision 3, paragraph (f), any money remaining after payment of the allowed

costs due to the timing of the termination of the tax under Minnesota Statutes, section

297A.99, subdivision 12, shall be placed in the general fund of the city. The tax authorized

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 the governing body of the

city of Oak Park Heights and its chief clerical officer comply with Minnesota Statutes,

section 645.021, subdivisions 2 and 3.

new text end

Sec. 44.
new text begin
CITY OF OSSEO; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 297A.99, subdivision 2, paragraph (b), or 477A.016, or any other law, ordinance,

or city charter, and if approved by the voters at an election as required under Minnesota

Statutes, section 297A.99, subdivision 3, the city of Osseo may impose by ordinance a sales

and use tax of up to one-half percent for the purposes specified in subdivision 2. Except as

otherwise 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. The tax authorized under this subdivision is in addition to any local

sales and use tax imposed under any other special law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the city to pay the costs of collecting and administering

the tax and paying for the following projects in the city, including securing and paying debt

service on bonds issued to finance all or part of the following projects:

new text end

new text begin

(1) $7,000,000 for the Boerboom Park Community Center Hub Project; and

new text end

new text begin

(2) $3,000,000 for the City Hall Renovations Project, including the renovation and

betterment of city hall and associated infrastructure as part of the City Campus Project.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The city may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the projects authorized in subdivision

2 and approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this

subdivision may not exceed $10,000,000 for the projects listed in subdivision 2, plus an

amount to be applied to the payment of the costs of issuing the bonds.

new text end

new text begin

(b) The bonds may be paid from or secured by any money available to the city of Osseo,

including the tax authorized under subdivision 1. The issuance of bonds under this

subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(c) The bonds are not included in computing any debt limitation applicable to the city

of Osseo, 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. A separate election to approve

the bonds under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years

after the tax is first imposed, or (2) when the city council determines that the amount received

from the tax is sufficient to pay for the project costs authorized under subdivision 2 for

projects approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance

of any bonds authorized under subdivision 3, including interest on the bonds. Except as

otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),

any money remaining after payment of the allowed costs due to the timing of the termination

of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must 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 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 Osseo and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

new text end

Sec. 45.
new text begin
CITY OF OWATONNA; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters

at a general election as required under Minnesota Statutes, section 297A.99, subdivision 3,

the city of Owatonna may impose by ordinance a sales and use tax of up to one-half percent

for the purposes specified in subdivision 2. Except as otherwise 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. The tax imposed

under this subdivision is in addition to any local sales and use tax authorized under any

other special law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the city to pay the costs of collecting and administering

the tax and to finance $75,000,000, plus associated bonding costs, for the construction of

a community center.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The city may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the facilities authorized in subdivision

2 and approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this

subdivision may not exceed $75,000,000 for the projects listed in subdivision 2 plus an

amount to be applied to the payment of the costs of issuing the bonds.

new text end

new text begin

(b) The bonds may be paid from or secured by any money available to the city, including

the tax authorized under subdivision 1 and the full faith and credit of the city. The issuance

of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and

275.61.

new text end

new text begin

(c) The bonds are 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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 25 years

after being first imposed, or (2) when the city council determines that the amount received

from the tax is sufficient to pay for the project costs authorized under subdivision 2 for

projects approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance

of any bonds authorized under subdivision 3, including interest on the bonds. Except as

otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),

any money remaining after payment of the allowed costs due to the timing of the termination

of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the

general fund of the city. The tax authorized 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 the governing body of the

city of Owatonna and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 46.
new text begin
CITY OF PLYMOUTH; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any other law or ordinance, and if approved by the voters at an election

as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of Plymouth

may impose by ordinance a sales and use tax of up to one-half percent for the purposes

specified in subdivision 2. Except as otherwise 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. The tax authorized under this

subdivision is in addition to any local sales and use tax imposed under any other special

law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the city to pay the costs of collecting and administering

the tax and paying for the following projects in the city, plus associated costs related to the

issuance of bonds used to finance all or part of the following projects:

new text end

new text begin

(1) $55,000,000 for expansion and renovation of the Plymouth Ice Center;

new text end

new text begin

(2) $55,000,000 for expansion of the Plymouth Community Center Fieldhouse; and

new text end

new text begin

(3) $25,000,000 for the Four Seasons Regional Sports Complex.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The city may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the projects authorized in subdivision

2 and approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this

subdivision may not exceed $135,000,000, plus an amount applied to the payment of the

costs of issuing the bonds. The bonds may be paid from or secured by any money available

to the city, including the tax authorized under subdivision 1. The issuance of bonds under

this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the city.

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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years

after the tax is first imposed, or (2) when the city council determines that the amount received

from the tax is sufficient to pay for the project costs authorized under subdivision 2 for

projects approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance

of any bonds authorized under subdivision 3, including interest on the bonds. Except as

otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),

any money remaining after payment of the allowed costs due to the timing of the termination

of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the

general fund of the city. The tax authorized 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 the governing body of the

city of Plymouth and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 47.
new text begin
CITY OF ROBBINSDALE; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters

at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the

city of Robbinsdale may impose by ordinance a sales and use tax of up to one-half of one

percent for the purposes specified in subdivision 2. Except as otherwise 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.

The tax authorized under this subdivision is in addition to any local sales and use tax

authorized under any other special law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the city to pay the costs of collecting and administering

the tax and to finance up to $40,000,000, plus associated bonding costs, for the Public Works

Facility Project.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The city may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the project authorized in subdivision

2 and approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this

subdivision may not exceed $40,000,000, plus an amount applied to the payment of the

costs of issuing the bonds. The bonds may be paid from or secured by any money available

to the city, including the tax authorized under subdivision 1. The issuance of bonds under

this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the city.

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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years

after the tax is first imposed, or (2) when the city council determines that the amount received

from the tax is sufficient to pay for the project costs authorized under subdivision 2 if

approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision

3, paragraph (a), plus an amount sufficient to pay the costs related to issuance of any bonds

authorized under subdivision 3, including interest on the bonds. Except as otherwise provided

in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any money remaining

after payment of the allowed costs due to the timing of the termination of the tax under

Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the general fund of

the city. The tax authorized 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 the governing body of the

city of Robbinsdale and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 48.
new text begin
CITY OF ROSEAU; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any other law or ordinance, and if approved by the voters at an election

as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of Roseau

may impose by ordinance a sales and use tax of up to one-half of one percent for the purposes

specified in subdivision 2. Except as otherwise 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. The tax imposed under this

subdivision is in addition to any local sales and use tax authorized under any other special

law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the city of Roseau to pay the costs of collecting and

administering the tax and paying for the following projects in the city, plus associated costs

related to the issuance of bonds used to finance all or part of the following projects:

new text end

new text begin

(1) $4,300,000 for renovation of the Roseau Memorial Arena; and

new text end

new text begin

(2) $8,200,000 for the construction of a new community and wellness center.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The city of Roseau may issue bonds under Minnesota

Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in

subdivision 2 and approved by the voters as required under Minnesota Statutes, section

297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued

under this subdivision may not exceed $12,500,000, plus an amount applied to the payment

of the costs of issuing the bonds. The bonds may be paid from or secured by any money

available to the city, including the tax authorized under subdivision 1. The issuance of bonds

under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the city.

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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 30 years

after the tax is first imposed, or (2) when the city council determines that the amount received

from the tax is sufficient to pay for the project costs authorized under subdivision 2 for

projects approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance

of any bonds authorized under subdivision 3, including interest on the bonds. Except as

otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),

any money remaining after payment of the allowed costs due to the timing of the termination

of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the

general fund of the city. The tax authorized 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 the governing body of the

city of Roseau and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

new text end

Sec. 49.
new text begin
SHERBURNE COUNTY; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

sections 297A.99, subdivision 2, paragraph (b); 477A.016; or any other law or ordinance,

and if approved by the voters at an election as required under Minnesota Statutes, section

297A.99, subdivision 3, Sherburne County may impose by ordinance a sales and use tax of

up to one-quarter percent for the purposes specified in subdivision 2. Except as otherwise

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. The tax authorized under this subdivision is in addition to any local sales and

use tax imposed under any other special law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the county to pay the costs of collecting and

administering the tax and to finance up to $75,000,000, plus associated bonding costs, for

a law enforcement center, which includes a jail.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The county may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the project authorized in subdivision

2 and approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this

subdivision may not exceed $75,000,000, plus an amount applied to the payment of the

costs of issuing the bonds. The bonds may be paid from or secured by any money available

to the county, including the tax authorized under subdivision 1. The issuance of bonds under

this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the county.

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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years

after the tax is first imposed, or (2) when the county determines that the amount received

from the tax is sufficient to pay for the project costs authorized under subdivision 2 if

approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision

3, paragraph (a), plus an amount sufficient to pay the costs related to issuance of any bonds

authorized under subdivision 3, including interest on the bonds. Except as otherwise provided

in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any money remaining

after payment of the allowed costs due to the timing of the termination of the tax under

Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the general fund of

the county. The tax authorized under subdivision 1 may expire at an earlier time if the county

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 the governing body of

Sherburne County and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 50.
new text begin
CITY OF ST. CLOUD; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any other law or ordinance, and if approved by the voters at an election

as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of St. Cloud

may impose by ordinance a sales and use tax of up to one-quarter percent for the purposes

specified in subdivision 2. Except as otherwise 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. The tax authorized under this

subdivision is in addition to any local sales and use tax imposed under any other special

law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the city to pay the costs of collecting and administering

the tax and:

new text end

new text begin

(1) to finance up to $7,000,000, plus associated bonding costs, for an outdoor water park

adjacent to the St. Cloud Aquatics Center; or

new text end

new text begin

(2) to otherwise fund up to $7,000,000 for an outdoor water park adjacent to the St.

Cloud Aquatics Center.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority; voter approval.

new text end

new text begin

(a) The city may issue bonds under

Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project

authorized in subdivision 2. The aggregate principal amount of bonds issued under this

subdivision may not exceed $7,000,000, plus an amount applied to the payment of the costs

of issuing the bonds. The bonds may be paid from or secured by any money available to

the city, including the tax authorized under subdivision 1. The issuance of bonds under this

subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the city.

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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

(c) Voter approval as required under Minnesota Statutes, section 297A.99, subdivision

3, paragraph (a), applies regardless of whether the city issues bonds under paragraph (a) or

otherwise funds the project authorized in subdivision 2.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) three

years after the tax is first imposed, or (2) when the city council determines that the amount

received from the tax is sufficient to pay for the project costs authorized under subdivision

2 if approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a), plus, if applicable, an amount sufficient to pay the costs related

to issuance of any bonds authorized under subdivision 3, including interest on the bonds.

Except as otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3,

paragraph (f), any money remaining after payment of the allowed costs due to the timing

of the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 12,

must be placed in the general fund of the city. The tax authorized 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 the governing body of the

city of St. Cloud and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 51.
new text begin
CITY OF TAYLORS FALLS; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any other law or ordinance, and if approved by the voters at an election

as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of Taylors

Falls may impose by ordinance a sales and use tax of up to one-half percent for the purposes

specified in subdivision 2. Except as otherwise 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. The tax authorized under this

subdivision is in addition to any local sales and use tax imposed under any other special

law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the city to pay the costs of collecting and administering

the tax and paying for the following projects in the city, plus associated costs related to the

issuance of bonds used to finance all or part of the following projects:

new text end

new text begin

(1) $600,000 for community center improvements;

new text end

new text begin

(2) $1,000,000 for the Taylors Falls River Walk improvements and trail system; and

new text end

new text begin

(3) $400,000 for development of a town square.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The city may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the projects authorized in subdivision

2 and approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this

subdivision may not exceed $2,000,000, plus an amount applied to the payment of the costs

of issuing the bonds. The bonds may be paid from or secured by any money available to

the city, including the tax authorized under subdivision 1. The issuance of bonds under this

subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the city.

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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 20 years

after the tax is first imposed, or (2) when the city council determines that the amount received

from the tax is sufficient to pay for the project costs authorized under subdivision 2 for

projects approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance

of any bonds authorized under subdivision 3, including interest on the bonds. Except as

otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),

any money remaining after payment of the allowed costs due to the timing of the termination

of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the

general fund of the city. The tax authorized 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 the governing body of the

city of Taylors Falls and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 52.
new text begin
CITY OF VERGAS; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any other law or ordinance, and if approved by the voters at an election

as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of Vergas

may impose by ordinance a sales and use tax of up to one-half percent for the purposes

specified in subdivision 2. Except as otherwise 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. The tax authorized under this

subdivision is in addition to any local sales and use tax imposed under any other special

law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

(a) The revenues derived from the tax

authorized under subdivision 1 must be used by the city to pay the costs of collecting and

administering the tax and to pay for the following projects in the Vergas Park Improvement

Plan:

new text end

new text begin

(1) $240,000 for construction of a new amphitheater and bathhouse; and

new text end

new text begin

(2) $45,000 for extension of utilities to the amphitheater.

new text end

new text begin

(b) The city must adopt an amended resolution in support of the use of revenues from

the tax authorized under subdivision 1 for the uses listed in paragraph (a). The resolution

must include the components of the resolution required under Minnesota Statutes, section

297A.99, subdivision 2, paragraph (a), for each project listed in paragraph (a). The city

must submit the resolution to the state auditor no later than August 31 of the year the city

presents the tax for voter approval as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The question to approve the tax as required under Minnesota

Statutes, section 297A.99, subdivision 3, paragraph (a), must indicate the purposes for which

the revenues must be used as included in the amended resolution.

new text end

new text begin

(c) If the city does not adopt and submit the amended resolution under paragraph (b),

the question presented to the voters under Minnesota Statutes, section 297A.99, subdivision

3, paragraph (a), must not include, and revenues from the tax authorized under subdivision

1 must not be used for, the purposes specified in paragraph (a).

new text end

new text begin

Subd. 3.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) five years

after the tax is first imposed, or (2) when the city council determines that the amount received

from the tax is sufficient to pay for the project costs authorized under subdivision 2 if

approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision

3, paragraph (a). Except as otherwise provided in Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (f), any money remaining after payment of the allowed costs due

to the timing of the termination of the tax under Minnesota Statutes, section 297A.99,

subdivision 12, must be placed in the general fund of the city. The tax authorized 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 the governing body of the

city of Vergas and its chief clerical officer comply with Minnesota Statutes, section 645.021,

subdivisions 2 and 3.

new text end

Sec. 53.
new text begin
WASECA COUNTY; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any other law or ordinance, and if approved by the voters at an election

as required under Minnesota Statutes, section 297A.99, subdivision 3, Waseca County may

impose by ordinance a sales and use tax of up to three-eighths of one percent for the purposes

specified in subdivision 2. Except as otherwise 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. The tax authorized under this

subdivision is in addition to any local sales and use tax imposed under any other special

law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the county to pay the costs of collecting and

administering the tax and to finance up to $45,000,000, plus associated bonding costs, for

construction of a new judicial center.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The county may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the project authorized in subdivision

2 and approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this

subdivision may not exceed $45,000,000, plus an amount applied to the payment of the

costs of issuing the bonds. The bonds may be paid from or secured by any money available

to the county, including the tax authorized under subdivision 1. The issuance of bonds under

this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the county.

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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 30 years

after the tax is first imposed, or (2) when the county board determines that the amount

received from the tax is sufficient to pay for the project costs authorized under subdivision

2 if approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance

of any bonds authorized under subdivision 3, including interest on the bonds. Except as

otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),

any money remaining after payment of the allowed costs due to the timing of the termination

of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the

general fund of the county. The tax authorized under subdivision 1 may expire at an earlier

time if the county 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 the governing body of

Waseca County and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 54.
new text begin
CITY OF WAYZATA FOOD AND BEVERAGE TAX.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Food and beverage tax authorized.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any ordinance, city charter, or other provision of law, the city of

Wayzata may, by ordinance, impose a sales tax of up to one percent on the gross receipts

on all sales of food and beverages by a restaurant or place of refreshment, as defined by

resolution of the city, that are located within the city. For purposes of this section, "food

and beverages" includes retail on-sale of intoxicating liquor and fermented malt beverages.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of proceeds from tax.

new text end

new text begin

(a) The proceeds of any tax imposed under

subdivision 1 shall be used by the city to pay all or a portion of the expenses of:

new text end

new text begin

(1) operation, maintenance, and capital improvement expenses for city parks;

new text end

new text begin

(2) operation and capital improvement expenses related to providing public safety; and

new text end

new text begin

(3) costs related to downtown business attraction and retention.

new text end

new text begin

(b) Authorized capital expenses include securing or paying debt service on bonds or

other obligations issued to finance the construction of capital improvements to city parks

or public safety facilities.

new text end

new text begin

Subd. 3.

new text end

new text begin

Collection, administration, and enforcement.

new text end

new text begin

If the city desires, it may enter

into an agreement with the commissioner of revenue to administer, collect, and enforce the

tax authorized under subdivision 1. If the commissioner agrees to collect the tax, the

provisions of Minnesota Statutes, section 297A.99, related to collection, administration,

and enforcement apply.

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 Wayzata and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 55.
new text begin
CITY OF WINDOM; TAXES AUTHORIZED.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Sales and use tax authorization.

new text end

new text begin

Notwithstanding Minnesota Statutes,

section 477A.016, or any other law or ordinance, and if approved by the voters at an election

as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of Windom

may impose by ordinance a sales and use tax of up to one-half percent for the purposes

specified in subdivision 2. Except as otherwise 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. The tax authorized under this

subdivision is in addition to any local sales and use tax imposed under any other special

law.

new text end

new text begin

Subd. 2.

new text end

new text begin

Use of sales and use tax revenues.

new text end

new text begin

The revenues derived from the tax authorized

under subdivision 1 must be used by the city to pay the costs of collecting and administering

the tax and to finance $8,000,000 for the swimming pool project, plus associated costs

related to the issuance of bonds issued under subdivision 3.

new text end

new text begin

Subd. 3.

new text end

new text begin

Bonding authority.

new text end

new text begin

(a) The city may issue bonds under Minnesota Statutes,

chapter 475, to finance all or a portion of the costs of the project authorized in subdivision

2 and approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this

subdivision may not exceed $8,000,000, plus an amount applied to the payment of the costs

of issuing the bonds. The bonds may be paid from or secured by any money available to

the city, including the tax authorized under subdivision 1. The issuance of bonds under this

subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

new text end

new text begin

(b) The bonds are not included in computing any debt limitation applicable to the city.

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. A separate election to approve the bonds

under Minnesota Statutes, section 475.58, is not required.

new text end

new text begin

Subd. 4.

new text end

new text begin

Termination of taxes.

new text end

new text begin

Subject to Minnesota Statutes, section 297A.99,

subdivision 12, the tax authorized under subdivision 1 expires at the earlier of (1) 30 years

after the tax is first imposed, or (2) when the city council determines that the amount received

from the tax is sufficient to pay for the project costs authorized under subdivision 2 for

projects approved by the voters as required under Minnesota Statutes, section 297A.99,

subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance

of any bonds authorized under subdivision 3, including interest on the bonds. Except as

otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),

any money remaining after payment of the allowed costs due to the timing of the termination

of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the

general fund of the city. The tax authorized 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 the governing body of the

city of Windom and its chief clerical officer comply with Minnesota Statutes, section

645.021, subdivisions 2 and 3.

new text end

Sec. 56.
new text begin
MODIFICATIONS ALLOWED.
new text end

new text begin

The amendments to Laws 1993, chapter 375, article 9, section 46, as amended, are

allowed notwithstanding Minnesota Statutes, section 297A.99, subdivisions 2, paragraphs

(a) and (b), and 3, paragraph (a).

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 6

LOCAL GOVERNMENT AIDS

Section 1.

Minnesota Statutes 2025 Supplement, section 126C.13, subdivision 4, is amended

to read:

Subd. 4.

General education aid.

deleted text begin
For fiscal year 2015 and later,
deleted text end
A district's general

education aid equals:

(1) general education revenue, excluding operating capital revenue, equity revenue, local

optional revenue, and transition revenue; plus

(2) operating capital aid under section
126C.10, subdivision 13b
; plus

(3) equity aid under section
126C.10, subdivision 30
; plus

(4) transition aid under section
126C.10, subdivision 33
; plus

(5) shared time aid under section
126C.01, subdivision 7
; plus

(6) referendum aid under section
126C.17, subdivisions 7
deleted text begin
and
deleted text end
new text begin
,
new text end
7a
new text begin
, and 7c
new text end
; plus

(7) online learning aid under section
124D.096
; plus

(8) local optional aid according to section
126C.10, subdivision 2e
, paragraph (f).

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for revenue in fiscal year 2028 and later.

new text end

Sec. 2.

Minnesota Statutes 2024, section 126C.17, is amended by adding a subdivision to

read:

new text begin

Subd. 7c.

new text end

new text begin

Seasonal tax base replacement aid.

new text end

new text begin

(a) For purposes of this subdivision,

"eligible school district" means a school district for which the seasonal tax base adjustment

factor under paragraph (c) is at least equal to 0.15. A school district determined eligible

under this paragraph for aid in fiscal year 2028 or any later fiscal year remains an eligible

school district for aid in any subsequent fiscal year.

new text end

new text begin

(b) An eligible school district's seasonal tax base replacement aid equals the product of

(1) the seasonal tax base adjustment factor, and (2) the district's referendum equalization

levy calculated under subdivision 6, after any adjustment under subdivisions 7a and 7b.

new text end

new text begin

(c) A district's seasonal tax base adjustment factor equals the lesser of 0.50 or the ratio

of (1) the seasonal market value for the district, to (2) the sum of the referendum market

value and the seasonal market value for the district. For the purposes of this paragraph,

"seasonal market value" means the market value of all taxable property classified as class

4c(12) under section 273.13.

new text end

new text begin

(d) The amount calculated under paragraph (b) must be used to reduce the district's

referendum levy determined after the adjustments under subdivisions 7a and 7b.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for taxes payable in 2027 and later.

new text end

Sec. 3.

Minnesota Statutes 2024, 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

10,000, "city revenue need" is 1.15 times the sum of (1) 8.572 times the pre-1940 housing

percentage; plus (2) 11.494 times the city age index; plus (3) 5.719 times the commercial

industrial utility percentage; plus (4) 9.484 times peak population decline; plus (5) 293.056
new text begin
;

plus (6) the sparsity adjustment
new text end
.

(b) For a city with a population equal to or greater than 2,500 and less than 10,000, "city

revenue need" is 1.15 times the sum of (1) 497.308; plus (2) 6.667 times the pre-1940

housing percentage; plus (3) 9.215 times the commercial industrial utility percentage; plus

(4) 16.081 times peak population decline
new text begin
; plus (5) the sparsity adjustment
new text end
.

(c) For a city with a population less than 2,500, "city revenue need" is the sum of (1)

196.487; plus (2) 220.877 times the city's transformed population
new text begin
; plus (3) the sparsity

adjustment
new text end
.

(d) For a city with a population of at least 2,500 but less than 3,000, the "city revenue

need" equals (1) the transition factor times the city's revenue need calculated in paragraph

(b); plus (2) the city's revenue need calculated under the formula in paragraph (c) times the

difference between one and the transition factor. For a city with a population of at least

10,000 but less than 11,000, the "city revenue need" equals (1) the transition factor times

the city's revenue need calculated in paragraph (a); plus (2) the city's revenue need calculated

under the formula in paragraph (b) times the difference between one and the transition

factor. For purposes of the first sentence of this paragraph "transition factor" is 0.2 percent

times the amount that the city's population exceeds the minimum threshold. For purposes

of the second sentence of this paragraph, "transition factor" is 0.1 percent times the amount

that the city's population exceeds the minimum threshold.

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

(f) For calendar year 2024 and subsequent years, the city revenue need for a city, as

determined in paragraphs (a) to (e), 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 2022 implicit 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 2027 and thereafter.

new text end

Sec. 4.

Minnesota Statutes 2024, section 477A.011, is amended by adding a subdivision

to read:

new text begin

Subd. 48.

new text end

new text begin

Sparsity adjustment.

new text end

new text begin

(a) The "sparsity adjustment" equals 200 for:

new text end

new text begin

(1) a city with a population of 10,000 or more and an average population density less

than 150 per square mile, according to the most recent federal census; and

new text end

new text begin

(2) a city with a population less than 10,000 and an average population density less than

30 per square mile, according to the most recent federal census.

new text end

new text begin

(b) The "sparsity adjustment" equals zero for all other cities.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for aids payable in 2027 and thereafter.

new text end

Sec. 5.

Minnesota Statutes 2024, section 477A.23, subdivision 6, is amended to read:

Subd. 6.

Appropriation.

deleted text begin
For aids payable in 2023 and 2024, $15,000,000 is appropriated

in each year from the general fund to the commissioner of revenue to make the payments

required under this section.
deleted text end
For aids payable in
deleted text begin
2025
deleted text end
new text begin
2026
new text end
and thereafter,
deleted text begin
$12,000,000
deleted text end
new text begin

$14,000,000
new text end
is annually appropriated from the general fund to the commissioner of revenue

to make the payments required under this section.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for aids payable in 2026 and thereafter.

new text end

Sec. 6.

Minnesota Statutes 2024, section 477A.35, subdivision 4, is amended to read:

Subd. 4.

Qualifying projects.

(a) Qualifying projects include:

(1) emergency rental assistance for households earning less than 80 percent of area

median income as determined by the United States Department of Housing and Urban

Development;

(2) financial support to nonprofit affordable housing providers in their mission to provide

safe, dignified, affordable and supportive housing;

(3) projects designed for the purpose of construction, acquisition, rehabilitation,

demolition or removal of existing structures, construction financing, permanent financing,

interest rate reduction, refinancing, and gap financing of housing to provide affordable

housing to households that have incomes which do not exceed, for homeownership projects,

115 percent of the greater of state or area median income as determined by the United States

Department of Housing and Urban Development, and for rental housing projects, 80 percent

of the greater of state or area median income as determined by the United States Department

of Housing and Urban Development, except that the housing developed or rehabilitated

with funds under this section must be affordable to the local work force;

(4) financing the operations and management of financially distressed residential

properties;

(5) funding of supportive services or staff of supportive services providers for supportive

housing as defined by section
462A.37, subdivision 1
. Financial support to nonprofit housing

providers to finance supportive housing operations may be awarded as a capitalized reserve

or as an award of ongoing funding; and

(6)
deleted text begin
costs of operating
deleted text end
emergency shelter
deleted text begin
facilities
deleted text end
new text begin
facility construction and operations
new text end
,

including
deleted text begin
the costs of providing services
deleted text end
new text begin
service provision
new text end
.

(b) Recipients must prioritize projects that provide affordable housing to households

that have incomes which do not exceed, for homeownership projects, 80 percent of the

greater of state or area median income as determined by the United States Department of

Housing and Urban Development, and for rental housing projects, 50 percent of the greater

of state or area median income as determined by the United States Department of Housing

and Urban Development. Priority may be given to projects that: reduce disparities in home

ownership; reduce housing cost burden, housing instability, or homelessness; improve the

habitability of homes; create accessible housing; or create more energy- or water-efficient

homes.

(c) Gap financing is either:

(1) the difference between the costs of the property, including acquisition, demolition,

rehabilitation, and construction, and the market value of the property upon sale; or

(2) the difference between the cost of the property and the amount the targeted household

can afford for housing, based on industry standards and practices.

(d) If aid under this section is used for demolition or removal of existing structures, the

cleared land must be used for the construction of housing to be owned or rented by persons

who meet the income limits of paragraph (a).

(e) If an aid recipient uses the aid on new construction of a building containing more

than four units, the loan recipient must construct, convert, or otherwise adapt the building

to include:

(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are

accessible units, and each accessible unit includes at least one roll-in shower, water closet,

and kitchen work surface meeting the requirements of section 1002 of the current State

Building Code Accessibility Provisions for Dwelling Units in Minnesota; and

(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are

sensory-accessible units that include:

(A) soundproofing between shared walls for first and second floor units;

(B) no florescent lighting in units and common areas;

(C) low-fume paint;

(D) low-chemical carpet; and

(E) low-chemical carpet glue in units and common areas.

Nothing in this paragraph relieves a project funded by this section from meeting other

applicable accessibility requirements.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for aids payable in 2027 and thereafter.

new text end

Sec. 7.

Minnesota Statutes 2025 Supplement, section 477A.35, subdivision 5, is amended

to read:

Subd. 5.

Use of proceeds.

(a) Any funds distributed under this section must be spent on

a qualifying project. Funds are considered spent on a qualifying project if:

(1) a tier I city or county demonstrates to the Minnesota Housing Finance Agency that

the city or county cannot expend funds on a qualifying project by the
deleted text begin
deadline
deleted text end

new text begin
deadlines
new text end

imposed by
deleted text begin
paragraph (b)
deleted text end

new text begin
this subdivision
new text end
due to factors outside the control of the city or

county; and

(2) the funds are transferred to a local housing trust fund.

Funds transferred to a local housing trust fund under this paragraph must be spent on a
deleted text begin

project or household that meets the affordability requirements of subdivision 4, paragraph
deleted text end
deleted text begin

(a)
deleted text end
new text begin
qualifying project
new text end
.

(b) Funds must be
deleted text begin
spent by December 31 in the third year following the year after the
deleted text end
deleted text begin

aid was received. The requirements of this paragraph are satisfied if funds are:
deleted text end

deleted text begin

(1)
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committed to a qualifying project by December 31
deleted text begin
in
deleted text end

new text begin
of
new text end
the third year following the

year
deleted text begin
after
deleted text end
the aid was received
deleted text begin
;
deleted text end
and

deleted text begin

(2)
deleted text end
expended by December 31
deleted text begin
in
deleted text end

new text begin
of
new text end
the fourth year following the year
deleted text begin
after
deleted text end
the aid was

received.

new text begin

(c) Notwithstanding paragraph (b), aid that a tier I city or county will spend on a

qualifying affordable housing construction project or a qualifying emergency shelter facility

construction project under subdivision 4, as documented in the most recent annual report

submitted to the Minnesota Housing Finance Agency under subdivision 6, must be committed

to the project by December 31 of the fifth year following the year the aid was received and

expended by December 31 of the sixth year following the year the aid was received.

new text end

deleted text begin

(c)
deleted text end
new text begin
(d)
new text end
An aid recipient may not use aid money to reimburse itself for prior expenditures.

deleted text begin

(d)
deleted text end
new text begin
(e)
new text end
Any program income generated from funds distributed under this section must

be used on a qualifying project.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for aids payable in 2027 and thereafter.

new text end

Sec. 8.

Minnesota Statutes 2024, section 477A.35, subdivision 6, is amended to read:

Subd. 6.

Administration.

(a) The commissioner of revenue must compute the amount

of aid payable to each tier I city and county under this section. By August 1 of each year,

the commissioner must certify the distribution factors of each tier I city and county to be

used in the following year. The commissioner must pay local affordable housing aid annually

at the times provided in section
477A.015
, distributing the amounts available on the

immediately preceding June 1 under the accounts established in section
477A.37, subdivisions

2 and 3.

(b) Beginning in 2025, tier I cities and counties shall submit a report annually, no later

than December 1 of each year, to the Minnesota Housing Finance Agency. The report must

include documentation of the location of any unspent funds distributed under this section

and of qualifying projects completed or planned with funds under this section. If a tier I

city or county fails to submit a report, if a tier I city or county fails to spend funds
deleted text begin
within

the timeline
deleted text end
new text begin
by the deadlines
new text end
imposed under subdivision 5,
deleted text begin
paragraph (b),
deleted text end
if a tier I city or

county uses funds for a project that does not qualify under this section, or if a tier I city or

county fails to meet its requirements of subdivision 5a, the Minnesota Housing Finance

Agency shall notify the Department of Revenue and the cities and counties that must repay

funds under paragraph (c) by February 15 of the following year.

(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, a

tier I city or county must pay to the Minnesota Housing Finance Agency funds the city or

county received under this section if the city or county:

(1) fails to spend the funds
deleted text begin
within the time allowed
deleted text end
new text begin
by the deadlines imposed
new text end
under

subdivision 5
deleted text begin
, paragraph (b)
deleted text end
;

(2) spends the funds on anything other than a qualifying project;

(3) fails to submit a report documenting use of the funds; or

(4) fails to meet the requirements of subdivision 5a.

(d) The commissioner of revenue must stop distributing funds to a tier I city or county

that requests in writing that the commissioner stop payment or that, in three consecutive

years, the Minnesota Housing Finance Agency has reported, pursuant to paragraph (b), to

have failed to use funds, misused funds, or failed to report on its use of funds. A request to

stop payment under this paragraph must be submitted to the commissioner in the form and

manner prescribed by the commissioner on or before May 1 of the aids payable year the

aid recipient wants the commissioner to stop payment of aid. The commissioner shall not

stop payment based on a request received after May 1 until the next aids payable year.

(e) The commissioner may resume distributing funds to a tier I city or county to which

the commissioner has stopped payments in the year following the August 1 after the

Minnesota Housing Finance Agency certifies that the city or county has submitted

documentation of plans for a qualifying project. The commissioner may resume distributing

funds to a tier I city or county to which the commissioner has stopped payments at the

request of the city or county in the year following the August 1 after the Minnesota Housing

Finance Agency certifies that the city or county has submitted documentation of plans for

a qualifying project.

(f) By June 1, any funds paid to the Minnesota Housing Finance Agency under paragraph

(c) must be deposited in the housing development fund. Funds deposited under this paragraph

are appropriated to the commissioner of the Minnesota Housing Finance Agency for use

on the family homeless prevention and assistance program under section
462A.204
, the

economic development and housing challenge program under section
462A.33
, and the

workforce and affordable homeownership development program under section
462A.38
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for aids payable in 2027 and thereafter.

new text end

Sec. 9.

Minnesota Statutes 2024, section 477A.36, subdivision 4, is amended to read:

Subd. 4.

Qualifying projects.

(a) Qualifying projects shall include:

(1) emergency rental assistance for households earning less than 80 percent of area

median income as determined by the United States Department of Housing and Urban

Development;

(2) financial support to nonprofit affordable housing providers in their mission to provide

safe, dignified, affordable and supportive housing;

(3) outside the metropolitan counties as defined in section
473.121, subdivision 4
,

development of market rate residential rental properties, as defined in section
462A.39,

subdivision 2
, paragraph (d), if the relevant unit of government submits with the report

required under subdivision 6 a resolution and supporting documentation showing that the

area meets the requirements of section
462A.39, subdivision 4
, paragraph (a);

(4) projects designed for the purpose of construction, acquisition, rehabilitation,

demolition or removal of existing structures, construction financing, permanent financing,

interest rate reduction, refinancing, and gap financing of housing to provide affordable

housing to households that have incomes which do not exceed, for homeownership projects,

115 percent of the greater of state or area median income as determined by the United States

Department of Housing and Urban Development and, for rental housing projects, 80 percent

of the greater of state or area median income as determined by the United States Department

of Housing and Urban Development, except that the housing developed or rehabilitated

with funds under this section must be affordable to the local work force;

(5) financing the operations and management of financially distressed residential

properties;

(6) funding of supportive services or staff of supportive services providers for supportive

housing as defined in section
462A.37, subdivision 1
. Financial support to nonprofit housing

providers to finance supportive housing operations may be awarded as a capitalized reserve

or as an award of ongoing funding; and

(7)
deleted text begin
costs of operating
deleted text end
emergency shelter
deleted text begin
facilities
deleted text end
new text begin
facility construction and operations
new text end
,

including
deleted text begin
the costs of providing services
deleted text end
new text begin
service provision
new text end
.

(b) Recipients must prioritize projects that provide affordable housing to households

that have incomes that do not exceed, for homeownership projects, 80 percent of the greater

of state or area median income as determined by the United States Department of Housing

and Urban Development, and for rental housing projects, 50 percent of the greater of state

or area median income as determined by the United States Department of Housing and

Urban Development. Priority may be given to projects that: reduce disparities in home

ownership; reduce housing cost burden, housing instability, or homelessness; improve the

habitability of homes; create accessible housing; or create more energy- or water-efficient

homes.

(c) Gap financing is either:

(1) the difference between the costs of the property, including acquisition, demolition,

rehabilitation, and construction, and the market value of the property upon sale; or

(2) the difference between the cost of the property and the amount the targeted household

can afford for housing, based on industry standards and practices.

(d) If aid under this section is used for demolition or removal of existing structures, the

cleared land must be used for the construction of housing to be owned or rented by persons

who meet the income limits of paragraph (a).

(e) If an aid recipient uses the aid on new construction of a building containing more

than four units, the loan recipient must construct, convert, or otherwise adapt the building

to include:

(1) the greater of: (i) at least one unit; or (ii) at least five percent of units that are

accessible units, and each accessible unit includes at least one roll-in shower, water closet,

and kitchen work surface meeting the requirements of section 1002 of the current State

Building Code Accessibility Provisions for Dwelling Units in Minnesota; and

(2) the greater of: (i) at least one unit; or (ii) at least five percent of units that are

sensory-accessible units that include:

(A) soundproofing between shared walls for first and second floor units;

(B) no florescent lighting in units and common areas;

(C) low-fume paint;

(D) low-chemical carpet; and

(E) low-chemical carpet glue in units and common areas.

Nothing in this paragraph relieves a project funded by this section from meeting other

applicable accessibility requirements.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for aids payable in 2027 and thereafter.

new text end

Sec. 10.

Minnesota Statutes 2025 Supplement, section 477A.36, subdivision 5, is amended

to read:

Subd. 5.

Use of proceeds.

(a) Any funds distributed under this section must be spent on

a qualifying project. If a tier I city or county demonstrates to the Minnesota Housing Finance

Agency that the tier I city or county cannot expend funds on a qualifying project by the
deleted text begin

deadline
deleted text end

new text begin
deadlines
new text end
imposed by
deleted text begin
paragraph (b)
deleted text end
new text begin
this subdivision
new text end
due to factors outside the

control of the tier I city or county, funds shall be considered spent on a qualifying project

if the funds are transferred to a local housing trust fund. Funds transferred to a local housing

trust fund must be spent on a
deleted text begin
project or household that meets the affordability requirements

of subdivision 4, paragraph (a)
deleted text end
new text begin
qualifying project
new text end
.

new text begin

(b) If a Tribal Nation demonstrates to the Minnesota Housing Finance Agency that the

Tribal Nation cannot expend funds on a qualifying project by the deadlines imposed by this

subdivision due to factors outside the control of the Tribal Nation, funds shall be considered

spent on a qualifying project if the funds are transferred to a Tribal housing fund overseen

by the Tribal Nation. Funds transferred to a Tribal housing fund must be spent on a qualifying

project.

new text end

deleted text begin

(b)
deleted text end
new text begin
(c)
new text end
Funds must be
deleted text begin
spent by December 31 in the third year following the year after
deleted text end
deleted text begin

the aid was received. The requirements of this paragraph are satisfied if funds are:
deleted text end

deleted text begin

(1)
deleted text end
committed to a qualifying project by December 31
deleted text begin
in
deleted text end

new text begin
of
new text end
the third year following the

year
deleted text begin
after
deleted text end
the aid was received
deleted text begin
;
deleted text end
and

deleted text begin

(2)
deleted text end
expended by December 31
deleted text begin
in
deleted text end

new text begin
of
new text end
the fourth year following the year
deleted text begin
after
deleted text end
the aid was

received.

new text begin

(d) Notwithstanding paragraph (c), aid that a recipient will spend on a qualifying

affordable housing construction project or a qualifying emergency shelter facility construction

project under subdivision 4, as documented in the most recent annual report submitted to

the Minnesota Housing Finance Agency under subdivision 6, must be committed to the

project by December 31 of the fifth year following the year the aid was received and

expended by December 31 of the sixth year following the year the aid was received.

new text end

deleted text begin

(c)
deleted text end
new text begin
(e)
new text end
An aid recipient may not use aid funds to reimburse itself for prior expenditures.

deleted text begin

(d)
deleted text end
new text begin
(f)
new text end
Any program income generated from funds distributed under this section must

be used on a qualifying project.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for aids payable in 2027 and thereafter.

new text end

Sec. 11.

Minnesota Statutes 2024, section 477A.36, subdivision 5a, is amended to read:

Subd. 5a.

Conditions for receipt.

(a) As a condition of receiving aid under this section,

a recipient must commit to using money to supplement, not supplant, existing locally funded

housing expenditures, so that the recipient is using the funds to create new or to expand

existing housing programs.

(b) In the annual report required under subdivision 6, a
deleted text begin
recipient
deleted text end
new text begin
tier I city or county
new text end

must certify compliance with this subdivision, including an accounting of locally funded

housing expenditures in the prior fiscal year. In
deleted text begin
an aid recipient's
deleted text end
new text begin
a tier I city's or county's
new text end

first report to the Minnesota Housing Finance Agency, the
deleted text begin
aid recipient
deleted text end
new text begin
tier I city or county
new text end

must document its locally funded housing expenditures in the two prior fiscal years. If a
deleted text begin

recipient
deleted text end
new text begin
tier I city or county
new text end
reduces one of its locally funded housing expenditures, the
deleted text begin

recipient
deleted text end
new text begin
tier I city or county
new text end
must detail the expenditure, the amount of the reduction, and

the reason for the reduction. The certification required under this paragraph must be made

available publicly on the
deleted text begin
recipient's
deleted text end
new text begin
tier I city's or county's
new text end
website.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for aids payable in 2027 and thereafter.

new text end

Sec. 12.

Minnesota Statutes 2024, section 477A.36, subdivision 6, is amended to read:

Subd. 6.

Administration.

(a) The commissioner of revenue must compute the amount

of aid payable to each aid recipient under this section. Beginning with aids payable in

calendar year 2024, before computing the amount of aid for counties and after receiving

the report required by subdivision 3, paragraph (e), the commissioner shall compute the

amount necessary to increase the amount in the account or accounts established under that

paragraph to $1,250,000. The amount calculated under the preceding sentence shall be

deducted from the amount available to counties for the purposes of certifying the amount

of aid to be paid to counties in the following year. By August 1 of each year, the

commissioner must certify the amount to be paid to each tier I city and county in the

following year. The commissioner must pay statewide local housing aid to tier I cities and

counties annually at the times provided in section
477A.015
. Before paying the first

installment of aid annually, the commissioner of revenue shall transfer to the Minnesota

Housing Finance Agency from the funds available for counties, for deposit in the account

or accounts established under subdivision 3, paragraph (e), the amount computed in the

prior year to be necessary to increase the amount in the account or accounts established

under that paragraph to $1,250,000.

(b) Beginning in 2025, aid recipients shall submit a report annually, no later than

December 1 of each year, to the Minnesota Housing Finance Agency. The report shall

include documentation of the location of any unspent funds distributed under this section

and of qualifying projects completed or planned with funds under this section. If an aid

recipient fails to submit a report, fails to spend funds
deleted text begin
within the timeline
deleted text end
new text begin
by the deadlines
new text end

imposed under subdivision 5,
deleted text begin
paragraph (b),
deleted text end
uses funds for a project that does not qualify

under this section, or if an aid recipient fails to meet the requirements of subdivision 5a,

the Minnesota Housing Finance Agency shall notify the Department of Revenue and the

aid recipient must repay funds under paragraph (c) by February 15 of the following year.

(c) By May 15, after receiving notice from the Minnesota Housing Finance Agency, an

aid recipient must pay to the Minnesota Housing Finance Agency funds the aid recipient

received under this section if the aid recipient:

(1) fails to spend the funds
deleted text begin
within the time allowed
deleted text end
new text begin
by the deadlines imposed
new text end
under

subdivision 5
deleted text begin
, paragraph (b)
deleted text end
;

(2) spends the funds on anything other than a qualifying project;

(3) fails to submit a report documenting use of the funds; or

(4) fails to meet the requirements of subdivision 5a.

(d) The commissioner of revenue must stop distributing funds to an aid recipient that

requests in writing that the commissioner stop payment or that the Minnesota Housing

Finance Agency reports to have, in three consecutive years, failed to use funds, misused

funds, or failed to report on its use of funds. A request to stop payment under this paragraph

must be submitted to the commissioner in the form and manner prescribed by the

commissioner on or before May 1 of the year prior to the aids payable year in which the

aid recipient wants the commissioner to stop payment of aid. The commissioner shall not

stop payment based on a request received after May 1 until aids payable based on certification

in the following calendar year.

(e) The commissioner may resume distributing funds to an aid recipient to which the

commissioner has stopped payments in the year following the August 1 after the Minnesota

Housing Finance Agency certifies that the city or county has submitted documentation of

plans for a qualifying project. The commissioner may resume distributing funds to an aid

recipient to which the commissioner has stopped payments at the request of the recipient

in the year following the August 1 after the Minnesota Housing Finance Agency certifies

that the recipient has submitted documentation of plans for a qualifying project.

(f) By June 1, any funds paid to the Minnesota Housing Finance Agency under paragraph

(c) must be deposited in the housing development fund. Funds deposited under this paragraph

are appropriated to the commissioner of the Minnesota Housing Finance Agency for use

on the family homeless prevention and assistance program under section
462A.204
, the

economic development and housing challenge program under section
462A.33
, and the

workforce and affordable homeownership development program under section
462A.38
.

(g) An eligible Tribal Nation may choose to receive an aid distribution under this section

by submitting an application under this subdivision. An eligible Tribal Nation which has

not received a distribution in a prior aids payable year may elect to begin participation in

the program by submitting an application in the manner and form prescribed by the

commissioner of revenue by January 15 of the aids payable year. In order to receive a

distribution, an eligible Tribal Nation must certify to the commissioner of revenue the most

recent estimate of the total number of enrolled members of the eligible Tribal Nation. The

information must be annually certified by March 1 in the form prescribed by the

commissioner of revenue. The commissioner of revenue must annually calculate and certify

the amount of aid payable to each eligible Tribal Nation on or before August 1 of the aids

payable year. The commissioner of revenue must pay statewide local housing aid to eligible

Tribal Nations annually by December 27 of the year the aid is certified.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for aids payable in 2027 and thereafter.

new text end

Sec. 13.
new text begin
FEDERAL ENFORCEMENT REIMBURSEMENT AID.
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) "City" means a statutory or home rule charter city.

new text end

new text begin

(c) "Commissioner" means the commissioner of revenue.

new text end

new text begin

(d) "Eligible costs" means any or all of the following costs incurred by the city in

association with federal enforcement actions:

new text end

new text begin

(1) vehicle towing and impoundment;

new text end

new text begin

(2) overtime, standby, on-call, or related costs for police, fire, first responders, and other

emergency personnel;

new text end

new text begin

(3) overtime, standby, on-call, or related costs for nonemergency personnel; and

new text end

new text begin

(4) other materials and supplies.

new text end

new text begin

(e) "Federal enforcement actions" means the presence of United States Department of

Homeland Security immigration officials in Minnesota for purposes of federal immigration

enforcement between December 1, 2025, and May 31, 2026.

new text end

new text begin

Subd. 2.

new text end

new text begin

Certification of costs.

new text end

new text begin

(a) By August 1, 2026, the administrator, manager, or

finance director of each city may submit to the commissioner a notarized certification of

eligible costs. The commissioner shall prescribe the form and manner of the certification.

new text end

new text begin

(b) Costs certified to the commissioner under paragraph (a) are subject to audit by the

state auditor. Each city must maintain documentation of these costs until August 1, 2029.

new text end

new text begin

Subd. 3.

new text end

new text begin

Distribution.

new text end

new text begin

(a) If the sum of eligible costs certified to the commissioner by

all cities under subdivision 2 is less than or equal to the total amount appropriated for aid

under subdivision 6, each city shall receive an amount of aid equal to the eligible costs

certified to the commissioner by the city.

new text end

new text begin

(b) If the sum of eligible costs certified to the commissioner by all cities under subdivision

2 is greater than the total amount appropriated for aid under subdivision 6, each city shall

receive an amount of aid equal to the product of:

new text end

new text begin

(1) the total amount appropriated for aid; and

new text end

new text begin

(2) the ratio of the eligible costs certified to the commissioner by the city to the eligible

costs certified to the commissioner by all cities.

new text end

new text begin

Subd. 4.

new text end

new text begin

Federal reimbursement.

new text end

new text begin

(a) Cities are encouraged to make reasonable, good

faith efforts to pursue federal reimbursement for eligible costs.

new text end

new text begin

(b) A city that receives federal reimbursement for eligible costs on or before December

31, 2027, must return to the commissioner the lesser of the amount of the federal

reimbursement or the portion of aid received by the city under this section for the same

costs. Aid returned to the commissioner under this subdivision is canceled to the general

fund.

new text end

new text begin

Subd. 5.

new text end

new text begin

Certification and payment.

new text end

new text begin

(a) By December 1, 2026, the commissioner must

calculate and certify the amount of aid payable to each city under this section.

new text end

new text begin

(b) By December 26, 2026, the commissioner must pay federal enforcement

reimbursement aid to each city.

new text end

new text begin

Subd. 6.

new text end

new text begin

Appropriation.

new text end

new text begin

(a) $2,000,000 in fiscal year 2027 is appropriated from the

general fund to the commissioner of revenue for aid payments under this section. This is a

onetime appropriation.

new text end

new text begin

(b) Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the

commissioner may retain up to five percent of the amount appropriated in paragraph (a) for

administrative costs of this section.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for aids payable in 2026 only.

new text end

Sec. 14.
new text begin
FILLMORE COUNTY DISPARITY REDUCTION AID PAYMENTS.
new text end

new text begin

(a) Notwithstanding Minnesota Statutes, section 273.1398, the 2027 disparity reduction

aid payments for jurisdictions located in Fillmore County must include the 2024 and 2025

disparity reduction aid amounts that were not paid to the jurisdictions in those years. The

2024 and 2025 amounts are in addition to any aid determined for 2027, except that these

amounts cannot reduce any jurisdiction's levy in 2027 to less than $0.

new text end

new text begin

(b) By April 1, 2027, the Fillmore County auditor must calculate and certify to the

commissioner of revenue the 2024 and 2025 disparity reduction aid amounts. To calculate

the total amount of disparity reduction aid for each jurisdiction in 2027, the county auditor

must first calculate the 2027 disparity reduction aid payments for jurisdictions in Fillmore

County pursuant to Minnesota Statutes, section 273.1398, without regard to the 2024 and

2025 disparity reduction aid amounts. The county auditor must then add any additional aid

amounts attributable to the 2024 and 2025 aid to each jurisdiction's 2027 disparity reduction

aid amount. Notwithstanding Minnesota Statutes, section 275.08, subdivision 1d, the 2024

and 2025 disparity reduction aid amounts may reduce below 90 percent of net tax capacity

the total adjusted local tax rate of all local governments combined within a unique taxing

jurisdiction in 2027.

new text end

new text begin

(c) The commissioner of revenue must include the 2024 and 2025 disparity reduction

aid payments along with the certification for disparity reduction aid paid in 2027, pursuant

to Minnesota Statutes, section 273.1398, subdivision 6. The commissioner of revenue must

include the additional amounts from 2024 and 2025 in the payments for aid payable in 2027

to each affected local government, other than school districts. The commissioner of education

must include the additional amounts from 2024 and 2025 in the payment to school districts

for aid payable in 2027. No later than June 30, 2027, the commissioner of revenue and the

commissioner of education must deposit to the general fund any unspent money appropriated

under this section.

new text end

new text begin

(d) $215,860 in fiscal year 2028 is appropriated from the general fund to the commissioner

of revenue for payments under this section to counties and towns. $250,790 in fiscal year

2028 is appropriated from the general fund to the commissioner of education for payments

under this section to school districts, intermediate school districts, or any group of school

districts levying as a single taxing entity.

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. 15.
new text begin
REPEALER.
new text end

new text begin

Minnesota Statutes 2024, section 477A.30, subdivision 8,

new text end

new text begin

is repealed.

new text end

ARTICLE 7

TAX INCREMENT FINANCING

Section 1.

Minnesota Statutes 2024, section 469.176, subdivision 2, is amended to read:

Subd. 2.

Excess increments.

(a) The authority
deleted text begin
shall
deleted text end
new text begin
must
new text end
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
new text begin
being reviewed
new text end
and the

increments
deleted text begin
and other revenues
deleted text end
received as of December 31 of the year.
deleted text begin
The authority must

spend or return the excess increments under paragraph (c) within nine months after the end

of the year.
deleted text end
new text begin
If the authority determines there are excess increments for a district, within nine

months after December 31, the authority must:

new text end

new text begin

(1) return the excess increments to the county auditor; and

new text end

new text begin

(2) absent an outstanding qualifying pay-as-you-go contract and note, as defined under

section 469.1763, subdivision 4, paragraph (e), decertify the district.

new text end

new text begin

(b) The requirement to decertify under paragraph (a) is deferred if:

new text end

new text begin

(1) within nine months after December 31, a modification of the tax increment financing

plan is approved under section 469.175, subdivision 4; and

new text end

new text begin

(2) the modification increases the total costs authorized to be paid with increments from

the district by an amount greater than the excess increment determined under paragraph (a).

new text end

new text begin

(c) The deferral permitted under paragraph (b) expires nine months following the next

year for which:

new text end

new text begin

(1) the authority determines an amount of excess increments exists;

new text end

new text begin

(2) there are no further approved modifications to the tax increment financing plan that

increase the total costs authorized to be paid with increments from the district by an amount

greater than the excess increment; and

new text end

new text begin

(3) the district has no outstanding qualifying pay-as-you-go contract and note.

new text end

deleted text begin

(b)
deleted text end
new text begin
(d)
new text end
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
deleted text begin
paid
deleted text end
new text begin
returned
new text end
under paragraph
deleted text begin
(c), clause (4),
deleted text end
new text begin
(e)
new text end
for a prior year, over

(2) the total costs authorized by the tax increment financing plan to be paid with

increments from the district,
deleted text begin
reduced, but not below zero, by the sum of:
deleted text end

deleted text begin

(i) the amounts of those authorized costs that have been paid from sources other than

tax increments from the district;

deleted text end

deleted text begin

(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);

deleted text end

deleted text begin

(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

deleted text end

deleted text begin

(iv)
deleted text end
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.

deleted text begin

(c) The authority shall use excess increment only to do one or more of the following:

deleted text end

deleted text begin

(1) prepay any outstanding bonds;

deleted text end

deleted text begin

(2) discharge the pledge of tax increment for any outstanding bonds;

deleted text end

deleted text begin

(3) pay into an escrow account dedicated to the payment of any outstanding bonds; or

deleted text end

deleted text begin

(4) return the excess amount to
deleted text end
new text begin
(e)
new text end
The county auditor
deleted text begin
who shall
deleted text end
new text begin
must
new text end
distribute the

excess
deleted text begin
amount
deleted text end
new text begin
increments returned under paragraph (a)
new text end
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.

deleted text begin

(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), (4), and (5), after December 31 of the year

and not prepaid under paragraph (c).

deleted text end

deleted text begin

(e)
deleted text end
new text begin
(f)
new text end
The county auditor must, prior to February 1 of each year, report to the

commissioner of education the amount of any excess tax increment distributed to a school

district for the preceding taxable year.

deleted text begin

(f) For purposes of this subdivision, "outstanding bonds" means bonds which are secured

by increments from the district.

deleted text end

deleted 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.

deleted text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section applies to all districts and is effective for excess

increment determinations for calendar year 2026 and thereafter.

new text end

Sec. 2.

Laws 2021, First Special Session chapter 14, article 9, section 9, is amended to

read:

Sec. 9.
CITY OF MOUNTAIN LAKE; TIF DISTRICT NO. 1-8; FIVE-YEAR RULE

EXTENSION.

(a) The requirement of Minnesota Statutes, section
469.1763, subdivision 3
, that activities

must be undertaken within a five-year period from the date of certification of a tax increment

financing district, is extended by
deleted text begin
a five-year
deleted text end
new text begin
an eight-year
new text end
period
new text begin
to April 1, 2029,
new text end
for Tax

Increment Financing District No. 1-8, administered by the city of Mountain Lake or its

economic development authority.

(b) The requirement of Minnesota Statutes, section
469.1763, subdivision 4
, relating to

the use of increment after the expiration of the five-year period under Minnesota Statutes,

section
469.1763, subdivision 3
, is extended to the
deleted text begin
11th
deleted text end
new text begin
14th
new text end
year for Tax Increment

Financing District No. 1-8.

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 Mountain Lake and its chief clerical officer comply with the requirements of

Minnesota Statutes, section 645.021, subdivisions 2 and 3.

new text end

Sec. 3.

Laws 2021, First Special Session chapter 14, article 9, section 11, is amended to

read:

Sec. 11.
CITY OF WAYZATA; TIF DISTRICT NO. 6; EXPENDITURES

ALLOWED.

new text begin

(a)
new text end
Notwithstanding Minnesota Statutes, section
469.1763, subdivision 2
, the city of

Wayzata may expend increments generated from Tax Increment Financing District No. 6

for the design and construction of the lakefront pedestrian walkway and community transient

lake public access infrastructure related to the Panoway on Wayzata Bay project, and all

such expenditures are deemed expended on activities within the district.

new text begin

(b) Notwithstanding Minnesota Statutes, section 469.1763, subdivision 2, the city of

Wayzata may expend increments generated from Tax Increment Financing District No. 6

on the following projects:

new text end

new text begin

(1) design and construction of the Eco Park, including shoreline restoration, marsh and

water quality improvements, a pier extension of the lakeside boardwalk, and creation of

eco-living classrooms;

new text end

new text begin

(2) restoration of the Section Foreman House, including installation of a learning center

and community space; and

new text end

new text begin

(3) expansion and remodeling of the Depot Park, including accessibility improvements

related to the Panoway on Wayzata Bay project.

new text end

new text begin

(c) Notwithstanding Minnesota Statutes, section 469.1763, subdivisions 2, 3, and 4,

expenditures on projects in paragraph (b) are deemed expended on activities within the

district.

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 Wayzata and its chief clerical officer comply with the requirements of Minnesota

Statutes, section 645.021, subdivisions 2 and 3.

new text end

Sec. 4.

Laws 2025, First Special Session chapter 13, article 5, section 11, subdivision 3,

is amended to read:

Subd. 3.

Expiration.

The authority to approve a tax increment financing plan to establish

a tax increment financing district under this section expires December 31,
deleted text begin
2026
deleted text end
new text begin
2028
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 Eden Prairie and its chief clerical officer comply with the requirements of Minnesota

Statutes, section 645.021, subdivisions 2 and 3.

new text end

Sec. 5.
new text begin
CITY OF CHASKA; TAX INCREMENT FINANCING DISTRICT NO. 23.
new text end

new text begin

Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, the Chaska

Economic Development Authority may collect tax increment from Chaska Tax Increment

Financing District No. 23 for up to 35 years after receipt of the first increment.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective upon compliance by the governing bodies

of the city of Chaska, Carver County, and Independent School District No. 112 with the

requirements of Minnesota Statutes, section 469.1782, subdivision 2.

new text end

Sec. 6.
new text begin
CITY OF COLUMBIA HEIGHTS; ALATUS TAX INCREMENT

FINANCING DISTRICT; FIVE-YEAR RULE EXTENSION; SIX-YEAR RULE

EXTENSION; DURATION EXTENSION.
new text end

new text begin

(a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is

extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision

4, relating to the use of increment after the expiration of the five-year period, is extended

to 11 years for the Alatus Tax Increment Financing District in the city of Columbia Heights.

new text end

new text begin

(b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the

city of Columbia Heights or its economic development authority may elect to extend the

duration of the Alatus Tax Increment Financing District in the city of Columbia Heights by

five years.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

Paragraph (a) is effective the day after the governing body of the

city of Columbia Heights and its chief clerical officer comply with the requirements of

Minnesota Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon

compliance by the governing bodies of the city of Columbia Heights, Anoka County, and

Independent School District No. 13 with the requirements of Minnesota Statutes, section

469.1782, subdivision 2.

new text end

Sec. 7.
new text begin
CITY OF HOPKINS; TAX INCREMENT FINANCING DISTRICT 1-6 (325

BLAKE); FIVE-YEAR RULE EXTENSION; SIX-YEAR RULE EXTENSION.
new text end

new text begin

The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is

extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision

4, relating to the use of increment after the expiration of the five-year period, is extended

to 11 years for Tax Increment Financing District 1-6 (325 Blake) in the city of Hopkins.

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 Hopkins and its chief clerical officer comply with the requirements of Minnesota

Statutes, section 645.021, subdivisions 2 and 3.

new text end

ARTICLE 8

PUBLIC FINANCE

Section 1.

Minnesota Statutes 2024, section 297A.993, subdivision 4, is amended to read:

Subd. 4.

Bonds.

(a) A county may, by resolution, authorize, issue, and sell its bonds,

notes, or other obligations for the purposes specified in subdivision 2. The county may also,

by resolution, issue bonds to refund the bonds issued pursuant to this subdivision.

(b) The bonds may be limited obligations, payable solely from or secured by taxes levied

under this section, and the county may also pledge its full faith, credit, and taxing power as

additional security for the bonds. A regional railroad authority within the county may also

pledge its taxing powers as additional security for the bonds.

(c) A county may issue and sell bonds in one or more series and without an election.

The county may determine how the bonds shall be secured; how the bonds will bear interest,

and the rate or rates, or variable rate; the rank or priority; how the bonds will be executed

and be payable, and how they will mature; and how the bonds will be subject to any defaults,

redemptions, repurchases, tender options, or other terms. The county may also determine

how the bonds shall be sold.

(d) The county may enter into and perform all contracts deemed necessary or desirable

by it to issue and secure the bonds, including an indenture of trust with a trustee located

within or outside of the state.

(e) Before issuing bonds qualifying under this section, the county must publish a notice

of its intention to issue the bonds and the date and time of a hearing to obtain public comment

on the matter. The notice must be published in the official newspaper of the county or in a

newspaper of general circulation in the county. The notice must be published at least
deleted text begin
14
deleted text end
new text begin

ten
new text end
, but not more than 28, days before the date of the hearing.

(f) Any project financed with bonds issued under this section must be included in a

capital improvement plan as defined in section
373.40, subdivision 3
. For purposes of this

paragraph, "project" means any project described in subdivision 2, notwithstanding section

373.40, subdivision 1
, paragraph (b).

(g) Except as otherwise provided in this subdivision, the bonds must be issued and sold

in the manner provided under chapter 475.

Sec. 2.

Minnesota Statutes 2024, section 469.060, subdivision 3, is amended to read:

Subd. 3.

Detail; maturity.

The port authority with the consent of its city's council shall

set the date, denominations, place of payment, form, and details of the bonds.
deleted text begin
The bonds

must mature serially.
deleted text end
The first installment must be due in not more than three years and the

last in not more than 30 years from the date of issuance.

ARTICLE 9

HENNEPIN COUNTY HEALTHCARE TAX

Section 1.

Minnesota Statutes 2024, section 473.756, is amended by adding a subdivision

to read:

new text begin

Subd. 15.

new text end

new text begin

Qualifying government.

new text end

new text begin

The authority is a qualifying government for purposes

of section 118A.09, subdivision 1. Whenever the authority's investments are managed by

the county, the authority's additional long-term equity investment limitations as provided

in section 118A.09, subdivision 3, are calculated based on the county's most recent audited

statement of net position instead of the authority's most recent audited statement of net

position.

new text end

Sec. 2.

Minnesota Statutes 2024, section 473.757, subdivision 1, is amended to read:

Subdivision 1.

Ballpark grants.

The county may authorize, by resolution, and make

one or more grants to the authority for ballpark development and construction, public

infrastructure,
new text begin
capital improvement of the ballpark or public infrastructure within the

development area,
new text end
reserves for capital improvements, and other purposes related to the

ballpark on the terms and conditions agreed to by the county and the authority.

Sec. 3.

Minnesota Statutes 2024, section 473.757, subdivision 2, is amended to read:

Subd. 2.

Youth sports; library.

To the extent funds are available from collections of

the tax authorized by subdivision 10 after
deleted text begin
payment each year of debt service on the bonds

authorized and issued under subdivision 9 and
deleted text end
payments for the purposes described in

subdivision 1, the county may also authorize, by resolution, and expend or make grants to

the authority and to other governmental units and nonprofit organizations in an aggregate

amount of up to $4,000,000 annually, increased by up to 1.5 percent annually to fund equally:

(1) youth activities and youth and amateur sports within Hennepin County; and (2) the cost

of extending the hours of operation of Hennepin County libraries and Minneapolis public

libraries.

The money provided under this subdivision is intended to supplement and not supplant

county expenditures for these purposes as of May 27, 2006.

Hennepin County must provide reports to the chairs of the committees and budget

divisions in the senate and the house of representatives that have jurisdiction over education

policy and funding, describing the uses of the money provided under this subdivision. The

first report must be made by January 15, 2009, and subsequent reports must be made on

January 15 of each subsequent odd-numbered year.

Sec. 4.

Minnesota Statutes 2024, section 473.757, is amended by adding a subdivision to

read:

new text begin

Subd. 2a.

new text end

new text begin

Hennepin County health care facilities.

new text end

new text begin

To the extent money is available

from collections of the tax authorized by subdivision 10 after payments for the purposes

described in subdivisions 1 and 2:

new text end

new text begin

(1) the county must distribute $21,000,000 annually, subject to annual increases in

percentages acceptable to the county, to a private, nonprofit hospital located in Hennepin

County that is designated by the commissioner of health as an adult level I trauma hospital

according to section 144.605, subdivision 3, and provides statewide ground and air emergency

medical transportation services. The money must be used to fund uncompensated care

provided in facilities owned or operated by the eligible private, nonprofit hospital; and

new text end

new text begin

(2) from the remainder of the money available, the county may only authorize, by

resolution, appropriations to fund any or all of the following:

new text end

new text begin

(i) the development, construction, improvement, and equipping of county-owned or

county-operated health care facilities;

new text end

new text begin

(ii) public infrastructure determined by the county to facilitate the development and use

of facilities described in item (i);

new text end

new text begin

(iii) reserves for county-owned or county-operated health care facilities capital

improvements;

new text end

new text begin

(iv) uncompensated care provided in county-owned or county-operated health care

facilities;

new text end

new text begin

(v) other purposes related to county-owned or county-operated health care facilities,

including operating expenses for county-owned or county-operated health care facilities;

new text end

new text begin

(vi) other purposes related to county public health services or priorities;

new text end

new text begin

(vii) other county-identified services or programs, including housing programs and

housing with low barriers to entry, that address health-related social needs; and

new text end

new text begin

(viii) debt service on bonds authorized and issued under subdivision 9.

new text end

Sec. 5.

Minnesota Statutes 2024, section 473.757, subdivision 3, is amended to read:

Subd. 3.

Expenditure limitations.

The amount that the county may grant or expend for

ballpark costs shall not exceed $260,000,000. The amount of any grant for capital

improvement reserves shall not exceed
deleted text begin
$1,000,000
deleted text end
new text begin
$9,000,000
new text end
annually, subject to the

agreement under section
473.759
, subdivision 3, and to annual increases according to an

inflation index acceptable to the county. The amount of grants or expenditures for land, site

improvements, and public infrastructure shall not exceed $90,000,000, excluding capital

improvement reserves, bond reserves, capitalized interest, and financing costs. The authority

to spend money for land, site improvements, and public infrastructure is limited to payment

of amounts incurred or for construction contracts entered into during the period ending five

years after the date of the issuance of the initial series of bonds under Laws 2006, chapter

257. Such grant agreements are valid and enforceable notwithstanding that they involve

payments in future years and they do not constitute a debt of the county within the meaning

of any constitutional or statutory limitation or for which a referendum is required.

Sec. 6.

Minnesota Statutes 2024, section 473.757, subdivision 4, is amended to read:

Subd. 4.

Property acquisition and disposition.

new text begin
(a)
new text end
The county may acquire by purchase,

eminent domain, or gift, land, air rights, and other property interests within the development

area for the ballpark site and public infrastructure and convey it to the authority with or

without consideration, prepare a site for development as a ballpark, and acquire and construct

any related public infrastructure. The purchase of property and development of public

infrastructure financed with revenues under this section is limited to infrastructure within

the development area or within 1,000 feet of the border of the development area. The public

infrastructure may include the construction and operation of parking facilities within the

development area notwithstanding any law imposing limits on county parking facilities in

the city of Minneapolis. The county may acquire and construct property, facilities, and

improvements within the stated geographical limits for the purpose of drainage and

environmental remediation for property within the development area, walkways and a

pedestrian bridge to link the ballpark to Third Avenue distributor ramps, street and road

improvements and access easements for the purpose of providing access to the ballpark,

streetscapes, connections to transit facilities and bicycle trails, and any utility modifications

which are incidental to any utility modifications within the development area.

new text begin

(b) The county or any of the county's subsidiaries may acquire by purchase, eminent

domain, or gift the land rights, air rights, and other property interests within the county for

health care facilities and related infrastructure.

new text end

new text begin

(c)
new text end
To the extent property parcels or interests acquired are more extensive than the public

infrastructure requirements, the county may sell or otherwise dispose of the excess. The

proceeds from sales of excess property must be deposited in the debt service reserve fund.

Sec. 7.

Minnesota Statutes 2024, section 473.757, subdivision 7, is amended to read:

Subd. 7.

Local government expenditures.

The county may make expenditures or grants

for other costs incidental and necessary to further the purposes of Laws 2006, chapter 257,
new text begin

and this act
new text end
and may by agreement, reimburse in whole or in part, any entity that has granted,

loaned, or advanced funds to the county to further the purposes of Laws 2006, chapter 257
new text begin
,

and this act
new text end
. The county shall reimburse a local governmental entity within its jurisdiction

or make a grant to such a governmental unit for site acquisition, preparation of the site for

ballpark development, and public infrastructure. Amounts expended by a local governmental

unit with the proceeds of a grant or under an agreement that provides for reimbursement by

the county shall not be deemed an expenditure or other use of local governmental resources

by the governmental unit within the meaning of any law or charter limitation. Exercise by

the county of its powers under this section shall not affect the amounts that the county is

otherwise eligible to spend, borrow, tax, or receive under any law.

Sec. 8.

Minnesota Statutes 2024, section 473.757, subdivision 8, is amended to read:

Subd. 8.

County authority.

It is the intent of the legislature that, except as expressly

limited herein, the county has the authority to acquire and develop a site for the ballpark

and public infrastructure, to enter into contracts with the authority and other governmental

or nongovernmental entities, to appropriate funds,
new text begin
to fund capital reserves and make capital

improvements,
new text end
and to make employees, consultants, and other revenues available for those

purposes.

Sec. 9.

Minnesota Statutes 2024, section 473.757, subdivision 9, is amended to read:

Subd. 9.

County revenue bonds.

new text begin
(a)
new text end
The county may, by resolution, authorize, sell, and

issue revenue bonds to provide funds to make a grant or grants to the authority and to finance

all or a portion of the costs of site acquisition, site improvements, and other activities

necessary to prepare a site for development of a ballpark, to construct, improve, and maintain

the ballpark and to establish and fund any capital improvement reserves, and to acquire and

construct any related parking facilities and other public infrastructure and for other costs

incidental and necessary to further the purposes of Laws 2006, chapter 257. The county

may also, by resolution, issue bonds to refund the bonds issued pursuant to this section. The

bonds must be limited obligations, payable solely from or secured by taxes levied under

subdivision 10, and any other revenues to become available under Laws 2006, chapter 257.

The bonds may be issued in one or more series and sold without an election. The bonds

shall be sold in the manner provided by section
475.60
. The bonds shall be secured, bear

the interest rate or rates or a variable rate, have the rank or priority, be executed in the

manner, be payable in the manner, mature, and be subject to the defaults, redemptions,

repurchases, tender options, or other terms, as the county may determine. The county may

enter into and perform all contracts deemed necessary or desirable by it to issue and secure

the bonds, including an indenture of trust with a trustee within or without the state. The debt

represented by the bonds shall not be included in computing any debt limitation applicable

to the county. Subject to this subdivision, the bonds must be issued and sold in the manner

provided in chapter 475. The bonds shall recite that they are issued under Laws 2006, chapter

257, and the recital shall be conclusive as to the validity of the bonds and the imposition

and pledge of the taxes levied for their payment. In anticipation of the issuance of the bonds

authorized under this subdivision and the collection of taxes levied under subdivision 10,

the county may provide funds for the purposes authorized by Laws 2006, chapter 257,

through temporary interfund loans from other available funds of the county which shall be

repaid with interest.

new text begin

(b) The county may, by resolution, authorize, sell, and issue revenue bonds to provide

money to finance all or a portion of the costs of county-owned or county-operated health

care facilities, including but not limited to site acquisition, site improvements, and other

activities necessary to prepare a site for development of health care facilities and to construct,

maintain, and improve health care facilities; establish and fund any capital improvement

reserves; and acquire and construct any related parking facilities and related infrastructure.

The county may, by resolution, authorize, sell, and issue revenue bonds for other costs

incidental and necessary to further the purposes of this act. The county may also, by

resolution, issue bonds to refund the bonds issued pursuant to this section. The bonds may

be limited obligations, payable solely from or secured by taxes levied under subdivision

10, and any other revenues made available under this act, and the county may also pledge

its full faith, credit, and taxing power as additional security for the bonds. The bonds may

be issued in one or more series and sold without an election. The bonds must be secured,

bear the interest rate or rates or a variable rate, have the rank or priority, be executed in the

manner, be payable in the manner, mature, and be subject to the defaults, redemptions,

repurchases, tender options, or other terms, as the county may determine. The county may

enter into and perform all contracts deemed necessary or desirable to issue and secure the

bonds, including an indenture of trust with a trustee within or outside of the state. The debt

represented by the bonds must not be included in computing any debt limitation applicable

to the county. Subject to this subdivision, the bonds must be issued and sold in the manner

provided in chapter 475. The bonds must recite that they are issued under this act, and the

recital is conclusive as to the validity of the bonds and the imposition and pledge of the

taxes levied for payment of the bonds. In anticipation of the issuance of the bonds authorized

under this subdivision and the collection of taxes levied under subdivision 10, the county

may provide money for the purposes authorized by this act, through temporary interfund

loans from other available county money that must be repaid with interest.

new text end

Sec. 10.

Minnesota Statutes 2024, section 473.757, subdivision 10, is amended to read:

Subd. 10.

Sales and use tax.

(a) Notwithstanding section
477A.016
, or other law, the

governing body of the county may by ordinance, impose a sales and use tax at the rate of
deleted text begin

0.15
deleted text end
new text begin
0.25
new text end
percent for the purposes listed in this section. The taxes authorized under this

section and the manner in which they are imposed are exempt from the rules of section

297A.99
, subdivisions 2 and 3. The provisions of section
297A.99
, except for subdivisions

2 and 3, apply to the imposition, administration, collection, and enforcement of this tax.

(b) The tax imposed under this section is not included in determining if the total tax on

lodging in the city of Minneapolis exceeds the maximum allowed tax under Laws 1986,

chapter 396, section 5, as amended by Laws 2001, First Special Session chapter 5, article

12, section 87, or in determining a tax that may be imposed under any other limitations.

Sec. 11.

Minnesota Statutes 2024, section 473.757, subdivision 11, is amended to read:

Subd. 11.

Uses of tax.

(a) Revenues received from the tax imposed under subdivision

10 may be used
new text begin
for the following and for no other purpose
new text end
:

(1) to pay costs of collection;

(2) to pay or reimburse or secure the payment of any principal of, premium, or interest

on bonds issued in accordance with Laws 2006, chapter 257, section 12
new text begin
, and this act
new text end
;

deleted text begin

(3) to pay costs and make expenditures and grants described in this section, including

financing costs related to them;

deleted text end

deleted text begin

(4)
deleted text end
new text begin
(3)
new text end
to maintain reserves for the foregoing purposes deemed reasonable and appropriate

by the county;

deleted text begin

(5)
deleted text end
new text begin
(4)
new text end
to pay for operating costs of the ballpark authority other than the cost of operating

or maintaining the ballpark;
deleted text begin
and
deleted text end

deleted text begin

(6)
deleted text end
new text begin
(5)
new text end
to make expenditures and grants for youth activities and amateur sports and

extension of library hours as described in subdivision 2;

deleted text begin

and for no other purpose.

deleted text end

new text begin

(6) to make grants to the authority for capital improvement expenditures for purposes

permitted under subdivision 1;

new text end

new text begin

(7) to make distributions to a private, nonprofit hospital as required under subdivision

2a, clause (1); and

new text end

new text begin

(8) to make appropriations to fund expenditures for Hennepin County health care facilities

as described in subdivision 2a, clause (2), including financing costs related to the

expenditures.

new text end

(b) Revenues from the tax designated for use under paragraph (a), clause
deleted text begin
(5)
deleted text end
new text begin
(4)
new text end
, must

be deposited in the operating fund of the ballpark authority.

(c) After completion of the ballpark and public infrastructure, the tax revenues not

required for current payments of the expenditures described in paragraph (a), clauses (1) to
deleted text begin

(6)
deleted text end
new text begin
(8)
new text end
, shall be used to
deleted text begin
(i)
deleted text end
new text begin
(1)
new text end
redeem or defease the bonds
new text begin
,
new text end
and
deleted text begin
(ii)
deleted text end
new text begin
(2)
new text end
prepay or establish

a fund for
deleted text begin
payment of future obligations under grants or other commitments for future

expenditures which are permitted by this section. Upon the redemption or defeasance of

the bonds and the establishment of reserves adequate to meet such future obligations, the

taxes shall terminate and shall not be reimposed
deleted text end
new text begin
reserves adequate to meet the future

obligations
new text end
. For purposes of this subdivision, "reserves adequate to meet such future

obligations" means a reserve that does not exceed the net present value of the county's

obligation to make grants under paragraph (a), clauses
deleted text begin
(5)
deleted text end
new text begin
(4)
new text end
and
deleted text begin
(6)
deleted text end
new text begin
(5)
new text end
, and to fund the

reserve for capital improvements required under section
473.759, subdivision 3
, for
new text begin
the later

of (i)
new text end
the 30-year period beginning on the date of the original issuance of the
new text begin
latest-issued

series of
new text end
bonds
new text begin
issued pursuant to subdivision 9
new text end
, less those obligations that the county has

already paid
new text begin
, or (ii) the period extending through the final term of the agreement in section

473.759, subdivision 4, as the agreement may be modified or extended from time to time
new text end
.

Sec. 12.

Minnesota Statutes 2024, section 473.757, is amended by adding a subdivision

to read:

new text begin

Subd. 12.

new text end

new text begin

Termination of tax.

new text end

new text begin

(a) The tax imposed under subdivision 10 expires 25

years after the tax is first imposed.

new text end

new text begin

(b) The county's share of the reserve for capital improvements required under section

473.759, subdivision 3, applies until otherwise terminated, regardless of the termination of

the tax under paragraph (a).

new text end

Sec. 13.

Minnesota Statutes 2024, section 473.759, subdivision 3, is amended to read:

Subd. 3.

Reserve for capital improvements.

The authority shall require that a reserve

fund for capital improvements to the ballpark
new text begin
and public infrastructure within the

development area
new text end
be established and funded with annual payments of
deleted text begin
$2,000,000
deleted text end
new text begin

$15,526,000
new text end
, with the team's share of those payments to be approximately
deleted text begin
$1,000,000
deleted text end
new text begin

$6,526,000
new text end
, as determined by agreement of the team and county. The annual payments shall

increase according to an inflation index determined by the
deleted text begin
authority, provided that any

portion of the team's contribution that has already been reduced to present value shall not

increase according to an inflation index
deleted text end
new text begin
county
new text end
. The authority may accept contributions

from the county or other source for the portion of the funding not required to be provided

by the team.

Sec. 14.
new text begin
EFFECTIVE DATE.
new text end

new text begin

Sections 1 to 13 are effective the day following final enactment.

new text end

ARTICLE 10

MINERALS

Section 1.

Minnesota Statutes 2024, section 298.225, is amended to read:

298.225 APPROPRIATION.

Subdivision 1.

Guaranteed distribution.

(a) Except as provided under
deleted text begin
paragraph
deleted text end
new text begin

paragraphs
new text end
(c)
new text begin
to (e)
new text end
, the distribution of the taconite production tax as provided in section

298.28
, subdivisions 3 to 5, 6,
deleted text begin
paragraph
deleted text end
new text begin
paragraphs
new text end
(b)
new text begin
and (c)
new text end
, 7, and 8, shall equal the

lesser of the following amounts:

(1) the amount distributed pursuant to this section and section
298.28
, with respect to

1983 production if the production for the year prior to the distribution year is no less than

42,000,000 taxable tons. If the production is less than 42,000,000 taxable tons, the amount

of the distributions shall be reduced proportionately at the rate of two percent for each

1,000,000 tons, or part of 1,000,000 tons by which the production is less than 42,000,000

tons; or

(2)(i) for the distributions made pursuant to section
298.28, subdivisions 4, paragraphs

(b)
and (c), and 6, paragraph (c), 31.2 percent of the amount distributed pursuant to this

section and section
298.28
, with respect to 1983 production;

(ii) for the distributions made pursuant to section
298.28, subdivision 5
, paragraphs (b)

and (d), 75 percent of the amount distributed pursuant to this section and section
298.28
,

with respect to 1983 production provided that the aid guarantee for distributions under

section
298.28, subdivision 5
, paragraph (b), shall be reduced by five cents per taxable ton

for production years 2014 and thereafter.

(b) The distribution of the taconite production tax as provided in section
298.28,

subdivision 2
, shall equal the following amount:

(1) if the production for the year prior to the distribution year is at least 42,000,000

taxable tons, the amount distributed pursuant to this section and section
298.28
with respect

to 1999 production; or

(2) if the production for the year prior to the distribution year is less than 42,000,000

taxable tons, the amount distributed pursuant to this section and section
298.28
with respect

to 1999 production, reduced proportionately at the rate of two percent for each 1,000,000

tons or part of 1,000,000 tons by which the production is less than 42,000,000 tons.

(c) The distribution of the taconite production tax under section
298.28
, subdivision 3,

paragraph (a), must equal the amount distributed under
298.28
, with respect to 1983

production.

new text begin

(d) For the two years after the year in which Mesabi Metallics or its successor begins

producing tonnage subject to the taxes under section 298.24, the distributions of the taconite

production tax to each school district under section 298.28, subdivision 4, paragraph (b),

clause (1), items (i) and (ii), must equal $100,000, and the distribution of the taconite

production tax under section 298.28, subdivision 4, paragraph (b), clause (1), item (iii),

must equal the amount distributed under section 298.28, with respect to 2023 production.

new text end

new text begin

(e) For the two years after the year in which Mesabi Metallics or its successor begins

producing tonnage subject to the taxes under section 298.24, the distributions of the taconite

production tax under section 298.28, subdivision 4, paragraph (b), clause (2), items (i) to

(v), must equal the amounts distributed under section 298.28, with respect to 2023 production,

and the distributions of the taconite production tax to each school district under section

298.28, subdivision 4, paragraph (b), clause (2), item (vi), subitems (A) and (B), must equal

$150,000.

new text end

new text begin

(f) For the two years after the year in which Mesabi Metallics or its successor begins

producing tonnage subject to the taxes under section 298.24, the distribution of the taconite

production tax under section 298.28, subdivision 11, paragraph (d), must equal 75 percent

of the amount that each school district received under Minnesota Statutes 1978, section

294.26, in calendar year 1977.

new text end

new text begin

(g) For the two years after the year in which Mesabi Metallics or its successor begins

producing tonnage subject to the taxes under section 298.24, the distributions of the taconite

production tax to each of the city of Orr and the city of Winton under section 298.282,

subdivision 1, paragraph (a), must equal $25,000, and the distributions of the taconite

production tax to each of the city of Cook and the city of Two Harbors under section 298.282,

subdivision 1, paragraph (a), must equal $75,000.

new text end

Subd. 2.

Funding guaranteed distribution level.

new text begin
(a)
new text end
The money necessary for funding

the difference between the initial distribution made pursuant to section
298.28
and the

amount guaranteed in subdivision 1
new text begin
, paragraphs (a) to (c),
new text end
is appropriated in equal proportions

from the initial current year distributions to the taconite environmental protection fund and

to the Douglas J. Johnson economic protection trust pursuant to section
298.28
. If the initial

distributions to the taconite environmental protection fund and the Douglas J. Johnson

economic protection trust are insufficient to fund the difference, the commissioner of Iron

Range resources and rehabilitation shall make the payments of any remaining difference

from the corpus of the taconite environmental protection fund and the corpus of the Douglas

J. Johnson economic protection trust fund in equal proportions as directed by the

commissioner of revenue.

new text begin

(b) The money necessary for funding the difference between the initial distribution made

pursuant to section 298.28 and the amount guaranteed in subdivision 1, paragraphs (d) to

(g), is appropriated from the initial current year distribution to the Douglas J. Johnson

economic protection trust pursuant to section 298.28. If the initial distribution to the Douglas

J. Johnson economic protection trust is insufficient to fund the difference, the commissioner

of Iron Range resources and rehabilitation shall make the payments of any remaining

difference from the corpus of the Douglas J. Johnson economic protection trust fund as

directed by the commissioner of revenue.

new text end

new text begin

(c)
new text end
If a taconite producer ceases beneficiation operations permanently and is required

by a special law to make bond payments for a school district, the Douglas J. Johnson

economic protection trust fund shall assume the payments of the taconite producer if the

producer ceases to make the needed payments. The commissioner of Iron Range resources

and rehabilitation shall make these school bond payments from the corpus of the Douglas

J. Johnson economic protection trust fund in the amounts certified by the commissioner of

revenue.

Sec. 2.

Minnesota Statutes 2024, section 298.227, is amended to read:

298.227 TACONITE ECONOMIC DEVELOPMENT FUND.

new text begin

(a) Except as provided in paragraph (b),
new text end
an amount equal to that distributed pursuant to

each taconite producer's taxable production and qualifying sales under section
298.28,

subdivision 9a
, shall be held by the commissioner of Iron Range resources and rehabilitation

in a separate taconite economic development fund for each taconite and direct reduced ore

producer. Money from the fund for each producer shall be released by the commissioner

after review by a joint committee consisting of an equal number of representatives of the

salaried employees and the nonsalaried production and maintenance employees of that

producer. The District 11 director of the United States Steelworkers of America, on advice

of each local employee president, shall select the employee members. In nonorganized

operations, the employee committee shall be elected by the nonsalaried production and

maintenance employees. The review must be completed no later than six months after the

producer presents a proposal for expenditure of the funds to the committee. The funds held

pursuant to this section may be released only for workforce development, concurrent

reclamation, plant and stationary mining equipment, facilities for the producer, or for research

and development in Minnesota on new mining, taconite, iron, or steel production technology,

but only if the producer provides a matching expenditure equal to the amount of the

distribution to be used for the same purpose. If a proposed expenditure is not approved by

the commissioner, after consultation with the advisory board, the funds must be deposited

in the taconite environmental protection fund under sections
298.222
to
298.225
. If a taconite

production facility is sold after operations at the facility had ceased, any money remaining

in the fund for the former producer may be released to the purchaser of the facility on the

terms otherwise applicable to the former producer under this section. If a producer fails to

provide matching funds for a proposed expenditure within six months after the commissioner

approves release of the funds, the funds may be released by the commissioner for deposit

in the taconite area environmental protection fund created in section
298.223
. Any portion

of the fund which is not released by the commissioner within one year of its deposit in the

fund shall be distributed to the taconite environmental protection fund.

new text begin

(b) Notwithstanding any provision to the contrary, a producer operating Mesabi Metallics

or its successor may not receive a distribution under this section.

new text end

Sec. 3.

Minnesota Statutes 2024, section 298.28, subdivision 2, is amended to read:

Subd. 2.

City or town where quarried or produced.

(a) 4.5 cents per gross ton of

merchantable iron ore concentrate, hereinafter referred to as "taxable ton,"
new text begin
produced by

each producer except Mesabi Metallics or its successor, plus one cent per taxable ton

produced in 2023 from the proceeds of the taxes collected under section 298.24 from Mesabi

Metallics or its successor,
new text end
plus the amount provided in paragraph (c), must be allocated to

the city or town in the county in which the lands from which taconite was mined or quarried

were located or within which the concentrate was produced. If the mining, quarrying, and

concentration, or different steps in either thereof are carried on in more than one taxing

district, the commissioner shall apportion equitably the proceeds of the part of the tax going

to cities and towns among such subdivisions upon the basis of attributing 50 percent of the

proceeds of the tax to the operation of mining or quarrying the taconite, and the remainder

to the concentrating plant and to the processes of concentration, and with respect to each

thereof giving due consideration to the relative extent of such operations performed in each

such taxing district. The commissioner's order making such apportionment shall be subject

to review by the Tax Court at the instance of any of the interested taxing districts, in the

same manner as other orders of the commissioner.

(b)(1) Four cents per taxable ton
new text begin
produced by each producer except Mesabi Metallics

or its successor, and one cent per taxable ton produced in 2023 from the proceeds of the

taxes collected under section 298.24 from Mesabi Metallics or its successor
new text end
shall be allocated

to cities and
deleted text begin
organized
deleted text end
townships affected by mining because their boundaries are within

three miles of a taconite mine pit that:

(i) was actively mined by LTV Steel Mining Company in 1999; or

(ii) has been actively mined in at least one of the prior three years.

(2) If a city or town is located near more than one mine meeting the criteria under this

paragraph, the city or town is eligible to receive aid calculated from only the mine producing

the largest taxable tonnage. When more than one municipality qualifies for aid based on

one company's production, the aid must be apportioned among the municipalities in

proportion to their populations. The amounts distributed under this paragraph to each
deleted text begin

municipality
deleted text end
new text begin
city and organized township
new text end
must be used for infrastructure improvement

projects.
new text begin
The amounts distributed under this paragraph to counties on behalf of each

unorganized township must be used by the county for infrastructure improvement projects

within the unorganized township.
new text end

(c) The amount that would have been computed for the current year under Minnesota

Statutes 2008, section 126C.21, subdivision 4, for a school district shall be distributed to

the cities and townships within the school district in the proportion that their taxable net tax

capacity within the school district bears to the taxable net tax capacity of the school district

for property taxes payable in the year prior to distribution.

Sec. 4.

Minnesota Statutes 2024, section 298.28, subdivision 3, is amended to read:

Subd. 3.

Cities; towns.

(a) 12.5 cents per taxable ton
deleted text begin
,
deleted text end
new text begin
produced by each producer except

Mesabi Metallics or its successor, plus two cents per taxable ton produced in 2023 from the

proceeds of the taxes collected under section 298.24 from Mesabi Metallics or its successor,
new text end

less any amount distributed under subdivision 8, and paragraph (b), must be allocated to

the taconite municipal aid account to be distributed as provided in section
298.282
. The

amount allocated to the taconite municipal aid account must be annually increased in the

same proportion as the increase in the implicit price deflator as provided in section
298.24,

subdivision 1
.

(b) An amount must be allocated to towns or cities that is annually certified by the county

auditor of a county containing a taconite tax relief area as defined in section
273.134,

paragraph (b)
, within which there is (1) an organized township if, as of January 2, 1982,

more than 75 percent of the assessed valuation of the township consists of iron ore or (2) a

city if, as of January 2, 1980, more than 75 percent of the assessed valuation of the city

consists of iron ore.

(c) The amount allocated under paragraph (b) will be the portion of a township's or city's

certified levy equal to the proportion of (1) the difference between 50 percent of January

2, 1982, assessed value in the case of a township and 50 percent of the January 2, 1980,

assessed value in the case of a city and its current assessed value to (2) the sum of its current

assessed value plus the difference determined in (1), provided that the amount distributed

shall not exceed $55 per capita in the case of a township or $75 per capita in the case of a

city. For purposes of this limitation, population will be determined according to the 1980

decennial census conducted by the United States Bureau of the Census. If the current assessed

value of the township exceeds 50 percent of the township's January 2, 1982, assessed value,

or if the current assessed value of the city exceeds 50 percent of the city's January 2, 1980,

assessed value, this paragraph shall not apply. For purposes of this paragraph, "assessed

value," when used in reference to years other than 1980 or 1982, means the appropriate net

tax capacities multiplied by 10.2.

(d) In addition to other distributions under this subdivision, three cents per taxable ton

for distributions in 2009 must be allocated for distribution to towns that are entirely located

within the taconite tax relief area defined in section
273.134
, paragraph (b). For distribution

in 2010 through 2014 and for distribution in 2018 and subsequent years, the three-cent

amount must be annually increased in the same proportion as the increase in the implicit

price deflator as provided in section
298.24, subdivision 1
. The amount available under this

paragraph will be distributed to eligible towns on a per capita basis, provided that no town

may receive more than
deleted text begin
$50,000
deleted text end
new text begin
$70,000
new text end
in any year under this paragraph. Any amount of

the distribution that exceeds the
deleted text begin
$50,000
deleted text end
new text begin
$70,000
new text end
limitation for a town under this paragraph

must be redistributed on a per capita basis among the other eligible towns, to whose

distributions do not exceed
deleted text begin
$50,000
deleted text end
new text begin
$70,000
new text end
.

Sec. 5.

Minnesota Statutes 2024, section 298.28, subdivision 4, is amended to read:

Subd. 4.

School districts.

(a) 32.15 cents per taxable ton
deleted text begin
,
deleted text end
new text begin
produced by each producer

except Mesabi Metallics or its successor, plus 32.72 cents per taxable ton produced by

Mesabi Metallics or its successor, plus 4.57 cents per taxable ton produced in 2023 from

the proceeds of the taxes collected under section 298.24 from Mesabi Metallics or its

successor, plus $300,000 from the proceeds of the taxes collected under section 298.24 from

Mesabi Metallics or its successor, plus the increase provided in paragraph (b), clause (3),
new text end

plus the increase provided in paragraph (d), less the amount that would have been computed

under Minnesota Statutes 2008, section
126C.21
, subdivision 4, for the current year for that

district, must be allocated to qualifying school districts to be distributed, based upon the

certification of the commissioner of revenue, under paragraphs (b), (c), and (f).

(b)
deleted text begin
(i)
deleted text end
new text begin
(1)
new text end
3.43 cents per taxable ton
new text begin
produced by each producer except Mesabi Metallics

or its successor, and 4.57 cents per taxable ton produced in 2023 from the proceeds of the

taxes collected under section 298.24 from Mesabi Metallics or its successor
new text end
must be

distributed
deleted text begin
to the school districts in which the lands from which taconite was mined or

quarried were located or within which the concentrate was produced.
deleted text end
new text begin
as follows:
new text end

new text begin

(i) $100,000 from the proceeds of Mesabi Metallics or its successor to Independent

School District No. 695, Chisholm, or its successor district;

new text end

new text begin

(ii) $100,000 from the proceeds of Mesabi Metallics or its successor to Independent

School District No. 696, Ely, or its successor district; and

new text end

deleted text begin

The distribution must be
deleted text end
new text begin
(iii) the remainder to school districts in which the lands from

which taconite was mined or quarried were located or within which the concentrate was

produced,
new text end
based on the apportionment formula prescribed in subdivision 2.

deleted text begin

(ii)
deleted text end
new text begin
(2)
new text end
Four cents per taxable ton
deleted text begin
from each taconite facility
deleted text end
new text begin
produced by each producer

except Mesabi Metallics or its successor, plus eight cents per taxable ton produced by Mesabi

Metallics or its successor, plus $300,000 from the proceeds of the taxes collected under

section 298.24 from Mesabi Metallics or its successor
new text end
must be distributed to each affected

school district for deposit in a fund dedicated to building maintenance and repairs, as follows:

deleted text begin

(1)
deleted text end
new text begin
(i)
new text end
proceeds from Keewatin Taconite or its successor are distributed to Independent

School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor

districts;

deleted text begin

(2)
deleted text end
new text begin
(ii)
new text end
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;

deleted text begin

(3)
deleted text end
new text begin
(iii)
new text end
proceeds from the Mittal Steel Company and Minntac or their successors are

distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl,
deleted text begin
706, Virginia,
deleted text end

2711, Mesabi East, and
deleted text begin
2154, Eveleth-Gilbert
deleted text end
new text begin
2909, Rock Ridge
new text end
, or their successor districts;

deleted text begin

(4)
deleted text end
new text begin
(iv)
new text end
proceeds from the Northshore Mining Company or its successor are distributed

to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior, or

their successor districts;
deleted text begin
and
deleted text end

deleted text begin

(5)
deleted text end
new text begin
(v)
new text end
proceeds from United Taconite or its successor are distributed to Independent

School Districts Nos. 2142, St. Louis County, and
deleted text begin
2154, Eveleth-Gilbert
deleted text end
new text begin
2909, Rock Ridge
new text end
,

or their successor districts
deleted text begin
.
deleted text end
new text begin
; and
new text end

new text begin

(vi) proceeds from Mesabi Metallics or its successor are distributed as follows:

new text end

new text begin

(A) $150,000 to Independent School District No. 318, Grand Rapids, or its successor

district;

new text end

new text begin

(B) $150,000 to Independent School District No. 696, Ely, or its successor district; and

new text end

new text begin

(C) eight cents per taxable ton to Independent School District Nos. 316, Greenway, and

319, Nashwauk-Keewatin, or their successor districts.

new text end

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.

new text begin

(3) Each school district that received a distribution under clause (2) in distribution year

2024 shall receive, from the proceeds of the taxes collected under section 298.24 from

Mesabi Metallics or its successor, an additional four cents per taxable ton produced in 2023

by the producer from which the school district received a distribution under clause (2) in

distribution year 2024.

new text end

(c)
deleted text begin
(i)
deleted text end
new text begin
(1)
new text end
24.72 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.

deleted text begin

(ii)
deleted text end
new text begin
(2)
new text end
Notwithstanding clause
deleted text begin
(i)
deleted text end
new text begin
(1)
new text end
, each school district that receives a distribution

under sections
298.018
;
298.24
; and
298.25
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
deleted text begin
(i)
deleted text end
new text begin
(1)
new text end
. If there are insufficient tax proceeds to make

the distribution provided under this paragraph in any year, money must be transferred from

the taconite property tax relief account in subdivision 6, to the extent of the shortfall in the

distribution.

(d)(1) 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
new text begin
taxable
new text end
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 2011.

(2) Districts qualifying under paragraph (c) must receive additional taconite aid each

year equal to 22.5 percent of the amount obtained by subtracting:

(i) 1.8 percent of the district's net tax capacity for 2011, from:

(ii) the district's weighted average daily membership for fiscal year 2012, multiplied by

the sum of:

(A) $415, plus

(B) the district's referendum revenue allowance for fiscal year 2013.

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.

(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) Four cents per taxable ton must be distributed to qualifying school districts according

to the distribution specified in paragraph (b), clause
deleted text begin
(ii)
deleted text end
new text begin
(2)
new text end
, and 11 cents per taxable ton

must be distributed according to the distribution specified in paragraph (c). These amounts

are not subject to section
126C.48, subdivision 8
.

Sec. 6.

Minnesota Statutes 2024, section 298.28, subdivision 7a, is amended to read:

Subd. 7a.

Iron Range schools and community development account.

(a) The following

amounts must be allocated to the commissioner of Iron Range resources and rehabilitation

to be deposited in the Iron Range schools and community development account that is

hereby created:

(1)(i) for distributions in 2024 through 2032, 24 cents per taxable ton of the tax imposed

under section
298.24
, (ii) for distributions beginning in 2033, ten cents per taxable ton of

the tax imposed under section
298.24
;

(2) the amount as determined under section
298.17
, paragraph (b), clause (3);
deleted text begin
and
deleted text end

(3)
new text begin
for distributions in the year after the year in which Mesabi Metallics or its successor

begins producing tonnage subject to the taxes under section 298.24 through 2050, 20 cents

per taxable ton produced by Mesabi Metallics or its successor, provided that the allocation

under this clause must only be used for projects within Independent School District No.

316, Greenway, that are approved by referendum within five years of the date Mesabi

Metallics or its successor begins producing tonnage subject to the taxes under section 298.24,

and that are approved by the commissioner of Iron Range resources and rehabilitation after

review by the Iron Range Resources and Rehabilitation Advisory Board. If projects are not

approved by referendum within five years of the date Mesabi Metallics or its successor

begins producing tonnage subject to the taxes under section 298.24, or if the commissioner

determines that the allocation exceeds the amount necessary for approved projects, the

remainder of the allocation under this clause must be used as provided under paragraph (b);

and
new text end

new text begin

(4)
new text end
any other amount as provided by law.

(b) Expenditures from this account
new text begin
, except as provided in paragraph (a), clause (3),
new text end
may

be approved as ongoing annual expenditures and shall be made only
deleted text begin
to provide
deleted text end
new text begin
for
new text end

disbursements to assist school districts with the payment of bonds that were issued for

qualified school projects,
deleted text begin
or for any
deleted text end
other
new text begin
disbursements to
new text end
school
deleted text begin
disbursement as approved

by the commissioner of Iron Range resources and rehabilitation after consultation with the

Iron Range Resources and Rehabilitation Board
deleted text end
new text begin
districts, or community development
new text end
. For

purposes of this section, "qualified school projects" means school projects within the taconite

assistance area as defined in section
273.1341
, that were (1) approved, by referendum, after

April 3, 2006; and (2) approved by the commissioner of education pursuant to section

123B.71
.

(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for

bonds issued under section
123A.482
, subdivision 9, must be increased each year to offset

any reduction in debt service equalization aid that the school district qualifies for in that

year, under section
123B.53, subdivision 6
, compared with the amount the school district

qualified for in fiscal year 2018.

(d) No expenditure under this section shall be made unless approved by the commissioner

of Iron Range resources and rehabilitation after consultation with the Iron Range Resources

and Rehabilitation
new text begin
Advisory
new text end
Board.

Sec. 7.

Minnesota Statutes 2024, section 298.28, subdivision 8, is amended to read:

Subd. 8.

Range Association of Municipalities and Schools.

0.50 cent per taxable ton
new text begin

produced by each producer except Mesabi Metallics or its successor
new text end
shall be paid to the

Range Association of Municipalities and Schools, for the purpose of providing an areawide

approach to problems which demand coordinated and cooperative actions and which are

common to those areas of northeast Minnesota affected by operations involved in mining

iron ore and taconite and producing concentrate therefrom, and for the purpose of promoting

the general welfare and economic development of the cities, towns, and school districts

within the Iron Range area of northeast Minnesota.

Sec. 8.

Minnesota Statutes 2024, section 298.28, subdivision 9a, is amended to read:

Subd. 9a.

Taconite economic development fund.

(a) 25.1 cents per
new text begin
taxable
new text end
ton
deleted text begin
for

distributions in 2002 and thereafter
deleted text end
new text begin
produced by each producer except Mesabi Metallics or

its successor
new text end
must be paid to the taconite economic development fund. No distribution shall

be made under this paragraph in
deleted text begin
2004
deleted text end
new text begin
2027
new text end
or any subsequent year in which total industry

production
new text begin
in the preceding year, excluding production by MagIron or its successor at Plant

4 in Arbo Township and production by Mesabi Metallics or its successor,
new text end
falls below 30

million tons. Distribution shall only be made to a Minnesota taconite pellet producer's fund

under section
298.227
if the producer timely pays its tax under section
298.24
by the dates

provided under section
298.27
, or pursuant to the due dates provided by an administrative

agreement with the commissioner.

(b) An amount equal to 50 percent of the
deleted text begin
tax
deleted text end
new text begin
taxes collected
new text end
under section
298.24

new text begin
from

each producer except Mesabi Metallics or its successor
new text end
for concentrate sold in the form of

pellet chips and fines not exceeding 5/16 inch in size and not including crushed pellets shall

be paid to the taconite economic development fund. The amount paid shall not exceed

$700,000 annually for all Minnesota taconite pellet producers. If the initial amount to be

paid to the fund exceeds this amount, each Minnesota taconite pellet producer's payment

shall be prorated so the total does not exceed $700,000.

Sec. 9.

Minnesota Statutes 2024, section 298.28, subdivision 9b, is amended to read:

Subd. 9b.

Taconite environmental fund.

Five cents per
new text begin
taxable
new text end
ton must be paid to the

taconite environmental fund for use under section
298.2961, 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. 10.

Minnesota Statutes 2024, section 298.28, is amended by adding a subdivision to

read:

new text begin

Subd. 10a.

new text end

new text begin

Insufficient proceeds.

new text end

new text begin

If the proceeds of the taxes collected under section

298.24 from Mesabi Metallics or its successor are insufficient to fund the allocations

designated from those proceeds under this section, the allocations designated from those

proceeds that are not calculated based on taxable tonnage produced by Mesabi Metallics or

its successor must be proportionally decreased such that the proceeds of the taxes collected

under section 298.24 from Mesabi Metallics or its successor are sufficient to fund the

allocations designated from those proceeds under this section.

new text end

Sec. 11.

Minnesota Statutes 2024, section 298.28, subdivision 11, is amended to read:

Subd. 11.

Remainder.

(a) The proceeds of the tax imposed by section
298.24
which

remain after the distributions and payments in subdivisions 2 to
deleted text begin
10a
deleted text end
new text begin
10
new text end
, as certified by the

commissioner of revenue, and paragraphs (b), (c), and (d) have been made, together with

interest earned on all money distributed under this section prior to distribution, shall be

divided between the taconite environmental protection fund created in section
298.223
and

the Douglas J. Johnson economic protection trust fund created in section
298.292
as follows:

Two-thirds to the taconite environmental protection fund and one-third to the Douglas J.

Johnson economic protection trust fund. The proceeds shall be placed in the respective

special accounts.

(b) There shall be distributed to each city, town, and county the amount that it received

under Minnesota Statutes 1978, section 294.26, in calendar year 1977; provided, however,

that (1) the amount distributed in 1981 to the unorganized territory number 2 of Lake County

and the town of Beaver Bay based on the between-terminal trackage of Erie Mining Company

will be distributed in 1982 and subsequent years to the unorganized territory number 2 of

Lake County and the towns of Beaver Bay and Stony River based on the miles of track of

Erie Mining Company in each taxing district; and (2) a city located within six miles of five

other cities qualifying for a distribution under section
298.282
shall receive a distribution

equal to $5,000 under this paragraph in calendar year 2020 and subsequent years. The

distribution to all other cites and towns receiving a distribution under this paragraph shall

be reduced by the ratio that $5,000 bears to the total aid distribution received by all cities

and towns under this paragraph.

(c) There shall be distributed to the Iron Range resources and rehabilitation account the

amounts it received in 1977 under Minnesota Statutes 1978, section
298.22
. The amount

distributed under this paragraph shall be expended within or for the benefit of the taconite

assistance area defined in section
273.1341
.

(d) There shall be distributed to each school district
deleted text begin
62
deleted text end
new text begin
75
new text end
percent of the amount that it

received under Minnesota Statutes 1978, section 294.26, in calendar year 1977.

Sec. 12.

Minnesota Statutes 2024, section 298.282, subdivision 1, is amended to read:

Subdivision 1.

Distribution of taconite municipal aid account.

(a) The amount

deposited with the county as provided in section
298.28, subdivision 3
, must be distributed

as provided by this section among: (1) the municipalities located within a taconite assistance

area under section
273.1341
that meet the criteria of section
273.1341
, clause (1) or (2); (2)

a township that contains a state park consisting primarily of an underground iron ore mine;

(3) a city located within five miles of that state park;
new text begin
(4) the city of Cook in St. Louis County;

(5) the city of Two Harbors in Lake County; (6) the city of Orr in St. Louis County; (7) the

city of Winton in St. Louis County;
new text end
and
deleted text begin
(4)
deleted text end
new text begin
(8)
new text end
Breitung Township in St. Louis County,

each being referred to in this section as a qualifying municipality. The
deleted text begin
distribution to
deleted text end
new text begin

distributions to each of the city of Orr, the city of Winton, and
new text end
Breitung Township under

this subdivision shall be $25,000 annually
new text begin
. The distributions to each of the city of Cook and

the city of Two Harbors under this subdivision shall be $75,000 annually
new text end
.

(b) The amount deposited in the state general fund as provided in section
298.018
,

subdivision 1, must be distributed in the same manner as provided under paragraph (a),

except that subdivisions 3, 4, and 5 do not apply, and the distributions shall be made on the

dates provided under section
298.018, subdivision 1a
.

Sec. 13.
new text begin
EFFECTIVE DATE; REVISOR NOTIFICATION.
new text end

new text begin

(a) Sections 1 to 8 and 10 to 12 are effective for distributions in the year after the year

in which Mesabi Metallics or its successor begins producing tonnage subject to the taxes

under Minnesota Statutes, section 298.24, and thereafter. The commissioner of revenue

must certify to the commissioner of Iron Range resources and rehabilitation when production

begins.

new text end

new text begin

(b) The commissioner of revenue must notify the revisor of statutes within 30 days of

the certification under paragraph (a).

new text end

ARTICLE 11

MISCELLANEOUS

Section 1.

Minnesota Statutes 2024, section 16A.726, is amended to read:

16A.726 SPORTS FACILITIES TRANSFERS; APPROPRIATIONS.

(a) The commissioner shall make transfers to the Minnesota Sports Facilities Authority

required to make the state payments under section
473J.13, subdivisions 2
and 4
deleted text begin
, and for

the amount of Minneapolis taxes withheld under section
297A.994, subdivision 4
, paragraph

(a), clause (4)
deleted text end
. Amounts sufficient to make the transfers are appropriated to the commissioner

from the general fund.

(b) $2,700,000 is annually appropriated from the general fund from fiscal year 2014

through fiscal year 2033 to the commissioner of management and budget for a grant to the

city of St. Paul for the operating or capital costs of new or existing sports facilities.

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.

new text begin

[116J.8753] SPORTS AND EVENTS REIMBURSEMENT PROGRAM.

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) "Account" means the sports and events reimbursement program account.

new text end

new text begin

(c) "Event" means any of the following and includes any activity related to or associated

with the following:

new text end

new text begin

(1) Amateur Athletic Union Junior Olympic Games;

new text end

new text begin

(2) Big Ten conference tournaments;

new text end

new text begin

(3) Bowl Season;

new text end

new text begin

(4) College Football Playoff;

new text end

new text begin

(5) Confederation of North, Central America, and Caribbean Association Football

(CONCACAF) Gold Cup or other matches;

new text end

new text begin

(6) Confederation Sudamericana de Football (CONMEBOL) Copa America;

new text end

new text begin

(7) CrossFit Games;

new text end

new text begin

(8) Federation of Gay Games;

new text end

new text begin

(9) Formula 1 United States Grand Prix;

new text end

new text begin

(10) International Ice Hockey Federation (IIHF) World Juniors, Men's, Women's, or any

tournament sanctioned by USA hockey or the IIHF;

new text end

new text begin

(11) International Skating Union (ISU) Worlds;

new text end

new text begin

(12) International Soccer Match;

new text end

new text begin

(13) Laver Cup;

new text end

new text begin

(14) Major League Baseball All-Star Game;

new text end

new text begin

(15) Major League Soccer All-Star Game or other special events or matches;

new text end

new text begin

(16) National Basketball Association All-Star Game, Cup, or Draft;

new text end

new text begin

(17) National Collegiate Athletic Association's (NCAA) Men's or Women's Final Four

or preliminary round basketball tournament, Men's or Women's Frozen Four, Volleyball

Championship, Wrestling Championship, Gymnastics Championship, or any sanctioned

NCAA championship;

new text end

new text begin

(18) National Football League Draft, Super Bowl, or combine;

new text end

new text begin

(19) National Hockey League All-Star Game, Draft, Four Nations, Stadium Series,

Winter Classic, or World Cup of Hockey;

new text end

new text begin

(20) Rugby World Cup Men's or Women's;

new text end

new text begin

(21) Ultimate Fighting Championship;

new text end

new text begin

(22) United States Figure Skating Championship;

new text end

new text begin

(23) Unrivaled Event;

new text end

new text begin

(24) United States Olympic Team Trials in gymnastics, swimming, and wrestling,

sanctioned by the national governing body, recognized by the United States Olympic

Committee;

new text end

new text begin

(25) Women's National Basketball Association All-Star Game or Draft;

new text end

new text begin

(26) World Cup Soccer Matches for Men's or Women's;

new text end

new text begin

(27) World Wrestling Entertainment Summer Slam, Royal Rumbles, Survivor Series,

WrestleMania, TKO Takeover Weekend, or other premium live event;

new text end

new text begin

(28) X Games;

new text end

new text begin

(29) Professional Golfers' Association (PGA) of America championship-level events

for Men's or Women's; or

new text end

new text begin

(30) any event certified by the commissioner of revenue that:

new text end

new text begin

(i) will include at least 15,000 participants and spectators;

new text end

new text begin

(ii) the site selection organization is considering whether to host in a state other than

Minnesota; and

new text end

new text begin

(iii) is not held more than one time in any year.

new text end

new text begin

(d) "Program" means the sports and events reimbursement program.

new text end

new text begin

(e) "Local organizing committee" means a body with a demonstrated track record of

attracting high-profile events to Minnesota that is responsible for the promotion and execution

of an event.

new text end

new text begin

(f) "Site selection organization" means an organization that has the ability to enter into

a contract for an event listed in paragraph (c) with a local organizing committee.

new text end

new text begin

Subd. 2.

new text end

new text begin

Sports and events reimbursement program account.

new text end

new text begin

The sports and events

reimbursement program account is created in the special revenue fund in the state treasury.

Except as otherwise appropriated by law, money in the account is appropriated to the

commissioner of revenue for the purposes of this section. All money earned by the account

must be credited to the account and remain available until expended.

new text end

new text begin

Subd. 3.

new text end

new text begin

Events eligible for funding.

new text end

new text begin

(a) Only an event listed in subdivision 1, paragraph

(c), is eligible for funding under this section.

new text end

new text begin

(b) A listed event may receive funding through the program only if:

new text end

new text begin

(1) a site selection organization, after considering one or more sites not in this state,

selects a site in this state for the event to be held:

new text end

new text begin

(i) one time; or

new text end

new text begin

(ii) if the event is scheduled under an event contract or event support contract to be held

each year for a period of years, one time in each year;

new text end

new text begin

(2) a site selection organization selects a site in this state as:

new text end

new text begin

(i) the sole site for the event; or

new text end

new text begin

(ii) the sole site for the event in a region composed of this state and one or more adjoining

states; and

new text end

new text begin

(3) the event is held not more than one time in any year.

new text end

new text begin

Subd. 4.

new text end

new text begin

Administration of program.

new text end

new text begin

(a) Prior to any determination under section

270C.45, subdivision 2, a local organizing committee must submit an application to the

commissioner of revenue. Applications must be submitted in the form and manner provided

by the commissioner of revenue but must include:

new text end

new text begin

(1) a certification that the event meets the eligibility requirements for funding under

subdivision 3 and all other funding requirements under this section; and

new text end

new text begin

(2) documentation from a site selection organization selecting the site for the event.

new text end

new text begin

(b) The commissioner must conduct due diligence in administering the program, including

contracting with professionals as needed to assist in the due diligence.

new text end

new text begin

Subd. 5.

new text end

new text begin

Allowable expenses.

new text end

new text begin

Money in the account may be used to fulfill obligations

of the state to a local organizing committee under an event contract including the payment

of:

new text end

new text begin

(1) the costs relating to the preparations necessary or desirable for conducting the event;

and

new text end

new text begin

(2) the costs of conducting the event, including the costs of an improvement or renovation

to an existing facility and the costs of the acquisition or construction of a new facility or

other facility.

new text end

new text begin

Subd. 6.

new text end

new text begin

Rulemaking.

new text end

new text begin

The commissioner of revenue may adopt rules necessary to

implement this section.

new text end

new text begin

Subd. 7.

new text end

new text begin

Reporting.

new text end

new text begin

(a) A local organizing committee must provide the following

information to the commissioner of revenue:

new text end

new text begin

(1) annual audited statements of any financial records required by a site selection

organization; and

new text end

new text begin

(2) data obtained by the local organizing committee relating to:

new text end

new text begin

(i) attendance at the event, including an estimate of the number of people expected to

attend the event who are not residents of Minnesota; and

new text end

new text begin

(ii) the economic impact of the event.

new text end

new text begin

(b) A local organizing committee must provide an annual audited financial statement

required by the commissioner of revenue no later than the end of the fourth month after the

last day of the period covered by the financial statement.

new text end

new text begin

(c) After the conclusion of an event, a local organizing committee must provide

information about the event, such as attendance figures, including an estimate of the number

of people who attended the event who are not residents of Minnesota, financial information,

or other public information held by the committee as requested by 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. 3.

Minnesota Statutes 2024, section 168E.09, is amended by adding a subdivision to

read:

new text begin

Subd. 1a.

new text end

new text begin

Deposit of revenues; sports and events reimbursement program

account.

new text end

new text begin

After deposits under subdivision 1, the commissioner must deposit the share of

revenues of the taxes imposed under this chapter that are directly attributable to an event

in the amount determined under section 270C.45 to the sports and events reimbursement

program account.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for revenues collected for sales and

purchases made after the day following final enactment.

new text end

Sec. 4.

Minnesota Statutes 2024, section 168E.09, subdivision 2, is amended to read:

Subd. 2.

Deposits.

After deposits under
deleted text begin
subdivision
deleted text end
new text begin
subdivisions
new text end
1
new text begin
and 1a
new text end
, the

commissioner must deposit the balance of proceeds from the retail delivery fee in the

transportation advancement account under section
174.49
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for revenues collected for sales and

purchases made after the day following final enactment.

new text end

Sec. 5.

Minnesota Statutes 2024, section 270B.14, is amended by adding a subdivision to

read:

new text begin

Subd. 25.

new text end

new text begin

Exchange of criminal investigative data between Department of Revenue

and Financial Crimes and Fraud Section.

new text end

new text begin

(a) For purposes of this subdivision, "FCFS"

means the Financial Crimes and Fraud Section of the Bureau of Criminal Apprehension.

new text end

new text begin

(b) The commissioner may disclose active criminal investigative data as classified under

section 270B.03, subdivision 6, to the FCFS. The FCFS may disclose active criminal

investigative data concerning tax administration to the commissioner as outlined in section

299C.061, subdivision 6. The commissioner may enter into an agreement with the FCFS

outlining procedures to implement the exchange of information under this subdivision, but

an agreement may provide for the disclosure of data only to the extent allowed under this

subdivision. Disclosure is allowed only for the purpose of and to the extent necessary for

tax administration and for the purpose of and to the extent necessary for the FCFS to carry

out section 299C.061, subdivision 3.

new text end

new text begin

(c) Data disclosed by the commissioner to the FCFS under this subdivision are classified

under section 270B.03, subdivision 6. Data disclosed by the FCFS to the commissioner

under section 299C.061, subdivision 6, are classified under section 13.82, subdivision 7.

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 2024, section 270B.15, is amended to read:

270B.15 DISCLOSURE TO LEGISLATIVE AUDITOR AND STATE AUDITOR
new text begin
;

INSPECTOR GENERAL
new text end
.

new text begin

Subdivision 1.

new text end

new text begin

Legislative auditor and state auditor.

new text end

(a) Returns 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
.

(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 begin

Subd. 2.

new text end

new text begin

Inspector general.

new text end

new text begin

Returns and return information must be disclosed to the

inspector general, as given meaning in section 15E.10, to the extent necessary for the

inspector general to carry out chapter 15E. The inspector general may disseminate data of

any classification to the commissioner for purposes of administering the provisions of section

290.034.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective January 1, 2027, unless the legislature

has not established the inspector general as referred to in this section, in which case this

section will not be enacted.

new text end

Sec. 7.

Minnesota Statutes 2024, section 270C.07, is amended to read:

270C.07 REVENUE
deleted text begin
NOTICES
deleted text end
new text begin
RULINGS
new text end
.

Subdivision 1.

Authority.

The commissioner may make, adopt, and publish interpretive

revenue
deleted text begin
notices
deleted text end
new text begin
rulings
new text end
. A "revenue
deleted text begin
notice
deleted text end
new text begin
ruling
new text end
" is a policy statement that has been

published pursuant to subdivision 5 and that provides interpretation, details, or supplementary

information concerning the application of state revenue laws or rules promulgated by the

commissioner. Revenue
deleted text begin
notices
deleted text end
new text begin
rulings
new text end
are published for the information and guidance of

taxpayers, local government officials, the department, and others concerned.

Subd. 2.

Effect.

Revenue
deleted text begin
notices
deleted text end
new text begin
rulings
new text end
do not have the force and effect of law and

have no precedential effect, but may be relied on by taxpayers
new text begin
unless and
new text end
until revoked or

modified.
deleted text begin
A notice may be expressly revoked or modified by the commissioner, by the

issuance of a revenue notice, but may not be revoked or modified retroactively to the

detriment of the taxpayers. A change in the law or an interpretation of the law occurring

after the revenue notice is issued, whether in the form of a statute, court decision,

administrative rule, or revenue notice, results in revocation or modification of the notice to

the extent that the change affects the notice.
deleted text end

new text begin

Subd. 2a.

new text end

new text begin

Revocation or modification.

new text end

new text begin

A revenue ruling may be expressly revoked or

modified by the commissioner, by the issuance of a revenue ruling, but may not be revoked

or modified retroactively to the detriment of taxpayers. A change in the law or an

interpretation of the law occurring after the revenue ruling is issued, whether in the form

of a statute, court decision, administrative rule, or revenue ruling, results in revocation or

modification of the ruling to the extent that the change affects the ruling.

new text end

Subd. 3.

Retroactivity.

Revenue
deleted text begin
notices
deleted text end
new text begin
rulings
new text end
are generally interpretive of existing

law and therefore are retroactive to the effective date of the applicable law provision unless

otherwise stated in the
deleted text begin
notice
deleted text end
new text begin
ruling
new text end
.

Subd. 4.

Issuance.

The issuance of revenue
deleted text begin
notices
deleted text end
new text begin
rulings
new text end
is at the discretion of the

commissioner. The commissioner shall establish procedures governing the issuance of

revenue
deleted text begin
notices
deleted text end
new text begin
rulings
new text end
and tax information bulletins.
deleted text begin
At least one week before publication

of a revenue notice in the State Register, the commissioner shall provide a copy of the notice

to the chairs of the Taxes Committee of the house of representatives and the Taxes and Tax

Laws Committee of the senate.
deleted text end

new text begin

Subd. 4a.

new text end

new text begin

Request.

new text end

new text begin

(a) Any person may submit a revenue ruling request to the

commissioner. The request must contain the following:

new text end

new text begin

(1) tax type;

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new text begin

(2) the name and characteristics of the taxpayer submitting the request;

new text end

new text begin

(3) description of the issue to be addressed;

new text end

new text begin

(4) information demonstrating the frequency of the issue;

new text end

new text begin

(5) any supporting materials and documents that provide background information on

the issue; and

new text end

new text begin

(6) any other relevant information and documents identified by the commissioner.

new text end

new text begin

(b) The commissioner must acknowledge all submitted requests within 21 days of receipt.

The person making the request must provide additional information and documents as

requested by the commissioner within 60 days of the request. Failure to timely provide the

requested information and documents may result in the request being denied. Upon the

commissioner's receipt of all requested additional information and documents, the person's

request is considered complete.

new text end

new text begin

(c) The commissioner must respond to all requests for revenue rulings either by issuance

of a ruling or by letter explaining why the commissioner declined to issue a ruling. If the

commissioner declines the request, the commissioner shall provide the person making the

request with a letter explaining the reasons for declining to do so within 45 days of receipt

of the completed request. If the commissioner does not decline the completed request, the

commissioner shall complete the revenue ruling and submit the revenue ruling for feedback

under subdivision 5 within 210 days of the commissioner's receipt of the completed request.

new text end

new text begin

(d) The commissioner's revenue rulings, decisions to decline to issue revenue rulings,

and other determinations made under this section may not be appealed.

new text end

Subd. 5.

new text begin
Review and
new text end
publication.

new text begin
The commissioner shall seek feedback from the tax

section of the Minnesota State Bar Association and the Minnesota Society of Certified

Public Accountants prior to publication of a revenue ruling.
new text end
The commissioner shall publish

the revenue
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notices
deleted text end
new text begin
rulings
new text end
in the State Register and in any other manner that makes them

accessible to the general public.
deleted text begin
The commissioner may charge a reasonable fee for

publications.
deleted text end
new text begin
At least two weeks before publication of a revenue ruling in the State Register,

the commissioner shall provide a copy of the ruling to the chairs and ranking minority

members of the legislative committees with jurisdiction over taxes.
new text end

new text begin

Subd. 6.

new text end

new text begin

Confidentiality.

new text end

new text begin

Prior to publication or other public dissemination, the

commissioner shall redact certain information from a revenue ruling or proposed ruling,

including the name and address of the taxpayer and taxpayer's representative.

new text end

new text begin

Subd. 7.

new text end

new text begin

Effect of determination.

new text end

new text begin

A determination of any kind made by the commissioner

pursuant to this section is not a rule and is not subject to the Administrative Procedure Act

contained in chapter 14.

new text end

new text begin

Subd. 8.

new text end

new text begin

Legislative report.

new text end

new text begin

(a) On or before January 31, 2028, and on or before January

31 each year thereafter, the commissioner shall report in writing to the legislature the

following information for the immediately preceding calendar year:

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new text begin

(1) the number of revenue ruling requests submitted and the number of those rulings

subsequently issued;

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new text begin

(2) the tax types for which rulings were requested;

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new text begin

(3) the types and characteristics of taxpayers requesting rulings; and

new text end

new text begin

(4) any other information that the commissioner considers relevant to legislative oversight

of revenue rulings.

new text end

new text begin

(b) The report must be filed as provided in sections 3.195 and 3.197 and copies must be

provided to the chairs and ranking minority members of the legislative committees with

jurisdiction over taxes.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2026, except that the first

legislative report under subdivision 8 is due January 31, 2028.

new text end

Sec. 8.

Minnesota Statutes 2024, section 270C.08, is amended to read:

270C.08 TAX INFORMATION BULLETINS.

The commissioner may issue tax information bulletins. "Tax information bulletins" are

informational guides to enable taxpayers and local governmental officials to become more

familiar with state revenue laws and their rights and responsibilities under these laws.

Nothing contained in the tax information bulletins supersedes, alters, or otherwise changes

any provisions of the state revenue laws, administrative rules, court decisions, or revenue
deleted text begin

notices
deleted text end
new text begin
rulings
new text end
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2026.

new text end

Sec. 9.

Minnesota Statutes 2024, section 270C.085, is amended to read:

270C.085 NOTIFICATION REQUIREMENTS; SALES AND USE TAXES.

The commissioner of revenue shall establish a means of electronically notifying persons

holding a sales tax permit under section
297A.84
of any statutory change in chapter 297A

and any issuance or change in any administrative rule, revenue
deleted text begin
notice
deleted text end
new text begin
ruling
new text end
, or sales tax

fact sheet or other written information provided by the department explaining the

interpretation or administration of the tax imposed under that chapter. The notification must

indicate the basic subject of the statute, rule, fact sheet, or other material and provide an

electronic link to the material. Any person holding a sales tax permit that provides an

electronic address to the department must receive these notifications unless they specifically

request electronically, or in writing, to be removed from the notification list. This requirement

does not replace traditional means of notifying the general public or persons without access

to electronic communications of changes in the sales tax law.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2026.

new text end

Sec. 10.

new text begin

[270C.45] CALCULATION AND DEPOSIT OF REVENUES TO THE

SPORTS AND EVENTS REIMBURSEMENT PROGRAM ACCOUNT.

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 them.

new text end

new text begin

(b) "Authorized entity" means an independent third-party economic analysis firm or

research organization with demonstrated expertise in conducting economic impact studies

for large-scale events, including the ability to quantify direct, indirect, and induced economic

activity and estimate associated tax revenue generation.

new text end

new text begin

(c) "Event" has the meaning given in section 116J.8753, subdivision 1, paragraph (c).

new text end

new text begin

(d) "Local organizing committee" has the meaning given in section 116J.8753, subdivision

1, paragraph (e).

new text end

new text begin

(e) "Site selection organization" has the meaning given in section 116J.8753, subdivision

1, paragraph (f).

new text end

new text begin

(f) "University" means the University of Minnesota.

new text end

new text begin

Subd. 2.

new text end

new text begin

Determination of incremental increase in certain tax receipts.

new text end

new text begin

(a) Following

each event, a local organizing committee must request a determination of the incremental

increase in tax revenues directly attributable to the event. The request must be submitted to

the university or authorized entity in the form and manner prescribed by the university and

the commissioner. The university must notify a local organizing committee within seven

days if the university is unable to provide a determination. Upon notification, a local

organizing committee must request a determination from an authorized entity.

new text end

new text begin

(b) Within ten days of the conclusion of an event, the university must commence an

estimate of the incremental increase in tax revenues listed in paragraph (c) that the university

or authorized entity determines are directly attributable to the preparation for and presentation

of an event for a one-year period that begins two months before the date on which the event

will begin. The university or authorized entity must use the information submitted by the

local organizing committee under paragraph (a) for each event.

new text end

new text begin

(c) Revenues from the following taxes must be included in the determination of

incremental increase under paragraph (b):

new text end

new text begin

(1) notwithstanding section 297A.62, subdivision 4, the tax imposed under section

297A.62, subdivision 1;

new text end

new text begin

(2) the taxes imposed under section 297A.64, subdivisions 1 and 2;

new text end

new text begin

(3) the tax imposed under section 295.75;

new text end

new text begin

(4) the tax imposed under section 295.81;

new text end

new text begin

(5) the fee imposed under section 168E.03; and

new text end

new text begin

(6) the taxes imposed under sections 290.02 and 290.03.

new text end

new text begin

Subd. 3.

new text end

new text begin

Deposit of revenues.

new text end

new text begin

Within 30 days after the determination of incremental

increase in the tax revenues under subdivision 2, paragraph (b), the commissioner must

disburse the amount of the incremental increase to the local organizing committee for the

purposes enumerated in section 116J.8753, subdivision 5. The commissioner of revenue

must not make any disbursement to an entity other than the local organizing committee that

requested a determination of incremental increase for an event under subdivision 2, paragraph

(a).

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 2024, 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 arising under chapters 295,

296A, 297A, 297F, and 297G, or sections
new text begin
290.034,
new text end
290.92
new text begin
,
new text end
and
297E.02
, and the applicable

penalties and interest on those taxes.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for convictions of fraud made after

December 31, 2025.

new text end

Sec. 12.

Minnesota Statutes 2024, section 289A.40, subdivision 1, is amended to read:

Subdivision 1.

Time limit; generally.

new text begin
(a)
new text end
Unless otherwise provided in this chapter, a

claim for a refund of an overpayment of state tax must be filed within 3-1/2 years from the

date prescribed for filing the return, plus any extension of time granted for filing the return,

but only if filed within the extended time, or
deleted text begin
one year from the date of an order assessing

tax under section
270C.33
or an order determining an appeal under section
270C.35,

subdivision 8
, or one year from the date of a return made by the commissioner under section

270C.33, subdivision 3
, upon payment in full of the tax, penalties, and interest shown on

the order or return made by the commissioner
deleted text end
new text begin
two years from the date the tax, penalties, or

interest was paid
new text end
, whichever period expires later.
deleted text begin
Claims for refund, except for taxes under

chapter 297A, filed after the 3-1/2 year period but within the one-year period are limited to

the amount of the tax, penalties, and interest on the order or return made by the commissioner

and to issues determined by the order or return made by the commissioner.
deleted text end

deleted text begin

In the case of assessments under section
289A.38, subdivision 5
or 6, claims for refund

under chapter 297A filed after the 3-1/2 year period but within the one-year period are

limited to the amount of the tax, penalties, and interest on the order or return made by the

commissioner that are due for the period before the 3-1/2 year period.

deleted text end

new text begin

(b) For purposes of this subdivision, the amount of a refund is limited as follows:

new text end

new text begin

(1) if the claim was filed by the taxpayer during the 3-1/2 year period prescribed in

paragraph (a), the refund must not exceed the tax, penalties, and interest paid within the

period, immediately preceding the filing of the claim, equal to 3-1/2 years plus any extension

of time granted for filing the return, but only if filed within the extended time;

new text end

new text begin

(2) if the claim was not filed by the taxpayer within the 3-1/2 year period prescribed in

paragraph (a), the refund must not exceed the tax, penalties, and interest paid during the

two years immediately preceding the filing of the claim; and

new text end

new text begin

(3) if no claim was filed by the taxpayer, the refund must not exceed the amount which

would be allowable under clause (1) or (2), if the claim was filed on the date the refund is

allowed.

new text end

new text begin

(c) For purposes of this subdivision, the prepayment of tax made by withholding of tax

at the source or payment of estimated tax before the due date is considered paid on the last

day prescribed by law for the payment of the tax by the taxpayer. A return filed before the

last day prescribed for filing the return is considered to be filed on the last day. If an extension

for filing a return is granted, a return filed before the extended due date is considered to be

filed on the extended due date.

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 claims for refund filed on or after that date.

new text end

Sec. 13.

Minnesota Statutes 2024, section 289A.60, subdivision 6, is amended to read:

Subd. 6.

Penalty for failure to file, false or fraudulent return, evasion.

(a) If a person,

with intent to evade or defeat a tax or payment of tax, fails to file a return, files a false or

fraudulent return, or attempts in any other manner to evade or defeat a tax or payment of

tax, there is imposed on the person a penalty equal to 50 percent of the tax, less amounts

paid by the person on the basis of the false or fraudulent return, if any, due for the period

to which the return related.

(b) If a person files a false or fraudulent return that includes a claim for refund, there is

imposed on the person a penalty equal to 50 percent of the portion of any refund claimed

that is attributable to fraud. The penalty under this paragraph is in addition to any penalty

imposed under paragraph (a)
new text begin
or (c)
new text end
.

new text begin

(c) If a person receives money, whether reported or not reported on a return, that is due

to fraud of a public program as defined in section 290.034, subdivision 1, without regard

to whether a conviction resulted, there may be imposed on the person a penalty equal to

100 percent of the amounts received attributable to the fraud. The penalty under this

paragraph is in addition to any penalty imposed under paragraph (a) or (b). This penalty

must not be assessed on any amounts already assessed under section 290.034. Any amounts

collected must be deposited to the tax relief account identified in section 290.034, subdivision

5.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for convictions of fraud made after

December 31, 2025.

new text end

Sec. 14.

new text begin

[290.034] TAX ON AMOUNTS OBTAINED THROUGH FRAUD.

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) "First-tier rate" means the lowest rate cited in section 290.06, subdivision 2c,

paragraphs (a) to (c).

new text end

new text begin

(c) "Public program" and "fraud" have the meanings given in section 13.357.

new text end

new text begin

(d) "Program fraud amount" means the amount of money acquired directly or indirectly

by fraud of a public program that is certified to the commissioner under subdivision 4. This

definition excludes refunds for overpayment of taxes.

new text end

new text begin

Subd. 2.

new text end

new text begin

Tax imposed.

new text end

new text begin

(a) A tax equal to 100 percent of the program fraud amount is

imposed on any person or organization convicted by a state or federal court of fraud.

new text end

new text begin

(b) The tax under this section applies regardless of any amount of restitution, tax, or

penalty imposed on or paid by a person or organization described in paragraph (a).

new text end

new text begin

(c) If multiple persons or organizations are convicted of the same fraud, the liability

shall be joint and several on the convicted persons or organizations.

new text end

new text begin

(d) The assessment of this tax under paragraph (a) is considered a jeopardy assessment

or jeopardy collection as provided in section 270C.36.

new text end

new text begin

Subd. 3.

new text end

new text begin

Data sharing.

new text end

new text begin

As authorized by section 270B.14, subdivision 25, the

commissioner may share with the Financial Crimes and Fraud Section of the Bureau of

Criminal Apprehension active investigative data related to enforcement of this section.

new text end

new text begin

Subd. 4.

new text end

new text begin

Agency certification.

new text end

new text begin

(a) After a conviction of a person or organization of

fraud of a public program, the agency primarily responsible for administering the public

program must certify to the commissioner the name of the person or organization, the name

of the public program involved, and the amount of money the court determines the person

or organization was responsible for in the conviction, regardless of the restitution amount.

new text end

new text begin

(b) The agency's certification must be in the form and manner prescribed by the

commissioner.

new text end

new text begin

(c) An agency's certification to the commissioner is prima facie correct and valid. The

person or organization has the burden of establishing its incorrectness or invalidity in any

related action or proceeding.

new text end

new text begin

Subd. 5.

new text end

new text begin

Deposit of money.

new text end

new text begin

(a) A tax relief account is established in the special revenue

fund. The commissioner must deposit the money collected from the tax imposed under this

section to the tax relief account.

new text end

new text begin

(b) The funds will remain in this account until the following:

new text end

new text begin

(1) by December 15 of each year, the commissioner must determine the amount in the

tax relief account and determine the amount of a reduction in the first-tier rate for the

following taxable year. The determination is based using the most recent November forecast

required under section 16A.103;

new text end

new text begin

(2) when there is enough money accumulated in the tax relief account, the commissioner

must reduce the first-tier rate for the following taxable year. This reduction must be calculated

to approximate the amount currently on deposit in the tax relief fund. The reduction must

only be for that taxable year. The threshold for a reduction of the rate must not be below

one-tenth of one percent; and

new text end

new text begin

(3) if the rate is reduced for the following taxable year under clause (2), the amounts in

the tax relief fund must be deposited in the general fund.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for convictions of fraud made after

December 31, 2025.

new text end

Sec. 15.

Minnesota Statutes 2024, section 290.62, is amended to read:

290.62 DISTRIBUTION OF REVENUES.

new text begin

Subdivision 1.

new text end

new text begin

Deposit of revenues; general fund; refunds.

new text end

new text begin
Except as provided in

subdivision 2,
new text end
all revenues derived from the taxes, interest, penalties and charges under this

chapter shall, notwithstanding any other provisions of law, be paid into the state treasury

and credited to the general fund, and be distributed as follows:

(1) There shall, notwithstanding any other provision of the law, be paid from this general

fund all refunds of taxes erroneously collected from taxpayers under this chapter as provided

herein;

(2) There is hereby appropriated to the persons entitled to payment herein, from the fund

or account in the state treasury to which the money was credited, an amount sufficient to

make the refund and payment.

new text begin

Subd. 2.

new text end

new text begin

Deposit of revenues; sports and events reimbursement program.

new text end

new text begin

The

commissioner must deposit the share of revenues of the taxes imposed under this chapter

that are directly attributable to an event in the amount determined under section 270C.45

to the sports and events reimbursement program account.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for revenues collected in taxable years

beginning after the day following final enactment.

new text end

Sec. 16.

Minnesota Statutes 2024, section 295.75, subdivision 11, is amended to read:

Subd. 11.

Deposit of revenues
new text begin
; sports and events reimbursement program

account
new text end
.

new text begin
Except as provided in subdivision 11a,
new text end
the commissioner shall deposit all revenues,

including penalties and interest, derived from the tax imposed by this section in the general

fund.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for revenues collected for sales and

purchases made after the day following final enactment.

new text end

Sec. 17.

Minnesota Statutes 2024, section 295.75, is amended by adding a subdivision to

read:

new text begin

Subd. 11a.

new text end

new text begin

Deposit of revenues; sports and events reimbursement program

account.

new text end

new text begin

The commissioner must deposit the share of revenues of the taxes imposed under

this chapter that are directly attributable to an event in the amount determined under section

270C.45 to the sports and events reimbursement program account.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for revenues collected for sales and

purchases made after the day following final enactment.

new text end

Sec. 18.

Minnesota Statutes 2025 Supplement, section 295.81, subdivision 10, is amended

to read:

Subd. 10.

Deposit of revenues; account established.

new text begin
Except as provided in subdivision

10a,
new text end
the commissioner must deposit the revenues, including penalties and interest, derived

from the tax imposed by this section in the general fund.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for revenues collected for sales and

purchases made after the day following final enactment.

new text end

Sec. 19.

Minnesota Statutes 2024, section 295.81, is amended by adding a subdivision to

read:

new text begin

Subd. 10a.

new text end

new text begin

Deposit of revenues; sports and events reimbursement program

account.

new text end

new text begin

The commissioner must deposit the share of revenues of the taxes imposed under

this chapter that are directly attributable to an event in the amount determined under section

270C.45 to the sports and events reimbursement program account.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for revenues collected for sales and

purchases made after the day following final enactment.

new text end

Sec. 20.

Minnesota Statutes 2025 Supplement, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,

including interest and penalties, derived from the taxes imposed by this chapter in the state

treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic

account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for the

construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment was

made for a loan guaranty for the project under section
41A.04, subdivision 3
.

The commissioner of management and budget shall certify to the commissioner the date on

which the project received the conditional commitment. The amount deposited in the loan

guaranty account must be reduced by any refunds and by the costs incurred by the Department

of Revenue to administer and enforce the assessment and collection of the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties, derived

from the taxes imposed on sales and purchases included in section
297A.61, subdivision 3
,

paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal

year the amount required by section
16A.661, subdivision 3
, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general fund.

(d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit

in the state treasury the revenues collected under section
297A.64, subdivision 1
, including

interest and penalties and minus refunds, and credit them to the highway user tax distribution

fund.

(e) The commissioner shall deposit the revenues, including interest and penalties,

collected under section
297A.64, subdivision 5
, in the state treasury and credit them to the

general fund. By July 15 of each year the commissioner shall transfer to the highway user

tax distribution fund an amount equal to the excess fees collected under section
297A.64,

subdivision 5
, for the previous calendar year.

(f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit

of revenues under paragraph (d), the commissioner shall deposit into the state treasury and

credit to the highway user tax distribution fund an amount equal to the estimated revenues

derived from the tax rate imposed under section
297A.62, subdivision 1
, on the lease or

rental for not more than 28 days of rental motor vehicles subject to section
297A.64
. The

commissioner shall estimate the amount of sales tax revenue deposited under this paragraph

based on the amount of revenue deposited under paragraph (d).

(g) Each month the commissioner must deposit an amount equal to the estimated revenues

derived from the taxes imposed under section
297A.62, subdivision 1
, on the sale and

purchase of motor vehicle repair and replacement parts in the state treasury and credit:

(1) a percentage to the highway user tax distribution fund as follows:

(i) 43.5 percent in each of fiscal years 2024 and 2025;

(ii) 43 percent in fiscal year 2026;

(iii) 41 percent in fiscal year 2027;

(iv) 36 percent in fiscal year 2028;

(v) 30 percent in fiscal year 2029;

(vi) 36 percent in each of fiscal years 2030 to 2034;

(vii) 38.5 percent in fiscal year 2035;

(viii) 41 percent in fiscal year 2036; and

(ix) 43.5 percent in fiscal year 2037 and thereafter;

(2) a percentage to the transportation advancement account under section
174.49
as

follows:

(i) 3.5 percent in fiscal year 2024;

(ii) 4.5 percent in fiscal year 2025;

(iii) 5.5 percent in fiscal year 2026;

(iv) 7.5 percent in fiscal year 2027;

(v) 14.5 percent in fiscal year 2028;

(vi) 21.5 percent in fiscal year 2029;

(vii) 28.5 percent in fiscal year 2030;

(viii) 36.5 percent in fiscal year 2031;

(ix) 44.5 percent in fiscal year 2032; and

(x) 56.5 percent in fiscal year 2033 and thereafter; and

(3) the remainder in each fiscal year to the general fund.

After each February forecast, and prior to the following April 15, the commissioner shall

estimate the monthly deposit amount for use in the following fiscal year based on the estimate

of average revenue derived from the taxes imposed under section
297A.62, subdivision 1
,

on the sale and purchase of motor vehicle repair and replacement parts from the department's

three most recent consumption tax models. For purposes of this paragraph, "motor vehicle"

has the meaning given in section
297B.01, subdivision 11
, and "motor vehicle repair and

replacement parts" includes (i) all parts, tires, accessories, and equipment incorporated into

or affixed to the motor vehicle as part of the motor vehicle maintenance and repair, and (ii)

paint, oil, and other fluids that remain on or in the motor vehicle as part of the motor vehicle

maintenance or repair. For purposes of this paragraph, "tire" means any tire of the type used

on highway vehicles, if wholly or partially made of rubber and if marked according to

federal regulations for highway use.

(h) 81.56 percent of the revenues, including interest and penalties, transmitted to the

commissioner under section
297A.65
, must be deposited by the commissioner in the state

treasury as follows:

(1) 47.5 percent of the receipts must be deposited in the heritage enhancement account

in the game and fish fund, and may be spent only on activities that improve, enhance, or

protect fish and wildlife resources, including conservation, restoration, and enhancement

of land, water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may

be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may

be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and

may be spent only on local trail grants;

(5) two percent of the receipts must be deposited in the natural resources fund, and may

be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,

and the Duluth Zoo; and

(6) 2.5 percent of the receipts must be deposited in the pollinator account established in

section
103B.101, subdivision 19
.

(i) 1.5 percent of the revenues, including interest and penalties, transmitted to the

commissioner under section
297A.65
must be deposited in a regional parks and trails account

in the natural resources fund and may only be spent for parks and trails of regional

significance outside of the seven-county metropolitan area under section
85.535
, based on

recommendations from the Greater Minnesota Regional Parks and Trails Commission under

section
85.536
.

(j) 1.5 percent of the revenues, including interest and penalties, transmitted to the

commissioner under section
297A.65
must be deposited in an outdoor recreational

opportunities for underserved communities account in the natural resources fund and may

only be spent on projects and activities that connect diverse and underserved Minnesotans

through expanding cultural environmental experiences, exploration of their environment,

and outdoor recreational activities.

(k) The revenue dedicated under paragraph (h) may not be used as a substitute for

traditional sources of funding for the purposes specified, but the dedicated revenue shall

supplement traditional sources of funding for those purposes. Land acquired with money

deposited in the game and fish fund under paragraph (h) must be open to public hunting

and fishing during the open season, except that in aquatic management areas or on lands

where angling easements have been acquired, fishing may be prohibited during certain times

of the year and hunting may be prohibited. At least 87 percent of the money deposited in

the game and fish fund for improvement, enhancement, or protection of fish and wildlife

resources under paragraph (h) must be allocated for field operations.

(l) The commissioner must deposit the revenues, including interest and penalties minus

any refunds, derived from the sale of items regulated under section
624.20, subdivision 1
,

that may be sold to persons 18 years old or older and that are not prohibited from use by

the general public under section
624.21
, in the state treasury and credit:

(1) 25 percent to the volunteer fire assistance grant account established under section

88.068
;

(2) 25 percent to the fire safety account established under section
297I.06, subdivision

3
; and

(3) the remainder to the general fund.

For purposes of this paragraph, the percentage of total sales and use tax revenue derived

from the sale of items regulated under section
624.20, subdivision 1
, that are allowed to be

sold to persons 18 years old or older and are not prohibited from use by the general public

under section
624.21
, is a set percentage of the total sales and use tax revenues collected in

the state, with the percentage determined under Laws 2017, First Special Session chapter

1, article 3, section 39.

new text begin

(m) The commissioner must deposit the share of revenues of the taxes imposed under

this chapter that are directly attributable to an event in the amount determined under section

270C.45 to the sports and events reimbursement program account.

new text end

deleted text begin

(m)
deleted text end
new text begin
(n)
new text end
The revenues deposited under paragraphs (a) to
deleted text begin
(l)
deleted text end
new text begin
(m)
new text end
do not include the

revenues, including interest and penalties, generated by the sales tax imposed under section

297A.62, subdivision 1a
, which must be deposited as provided under the Minnesota

Constitution, article XI, section 15.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for revenue collected for sales and

purchases made after the day following final enactment.

new text end

Sec. 21.

Minnesota Statutes 2025 Supplement, section 299C.061, subdivision 6, is amended

to read:

Subd. 6.

Data sharing authorized.

Notwithstanding chapter 13 or any other statute

related to the classification of government data to the contrary, state agencies making a

referral under subdivision 4 or 5 shall provide data related to the suspected fraudulent activity

to the Section, including data classified as not public. The Section may share active criminal

investigative data concerning insurance fraud with the Department of Commerce
new text begin
and active

criminal investigative data concerning tax administration with the Department of Revenue.

Data shared by the Section under this subdivision are classified under section 13.82,

subdivision 7
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. 22.

Minnesota Statutes 2024, section 383A.80, subdivision 4, is amended to read:

Subd. 4.

Expiration.

The authority to impose the tax under this section expires January

1,
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2028
deleted text end
new text begin
2036
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 2024, section 383B.80, subdivision 4, is amended to read:

Subd. 4.

Expiration.

The authority to impose the tax under this section expires January

1,
deleted text begin
2028
deleted text end
new text begin
2036
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.
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EFFECT OF REVENUE NOTICES.
new text end

new text begin

A revenue notice published by the commissioner of revenue on or before July 1, 2026,

has the full force and effect of revenue rulings under Minnesota Statutes, section 270C.07.

If the commissioner of revenue modifies a revenue notice after June 30, 2026, the

commissioner of revenue must publish the modification as a revenue ruling pursuant to

Minnesota Statutes, section 270C.07.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day after final enactment.

new text end

Sec. 25.
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NO OBLIGATION TO LIST ON LIQUOR POSTING; TEMPORARY

AUTHORITY.
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new text begin

(a) Notwithstanding Minnesota Statutes, section 270C.725, the commissioner of revenue

is under no obligation to list a qualifying taxpayer whose business is a place of public

accommodation.

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new text begin

(b) For purposes of this section the following definitions apply:

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new text begin

(1) "qualifying taxpayer" means a taxpayer that:

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new text begin

(i) is ten days or more delinquent in either filing a tax return or paying a tax imposed

by Minnesota Statutes, sections 290.02, 290.0922, 290.92, 290.9727, 290.9728, 290.9729,

or 297A.62, or local sales and use tax payable to the commissioner of revenue, or a local

option tax administered and collected by the commissioner of revenue; and

new text end

new text begin

(ii) within seven days of receiving notification from the commissioner of revenue of the

intended action to list the taxpayer on the liquor posting, has filed a request for abatement

of penalty under Minnesota Statutes, section 270C.34 or section 289A.60, subdivision 4,

or a request for abatement of interest or additional tax charge; and

new text end

new text begin

(2) "place of public accommodation" has the meaning given in Minnesota Statutes,

section 363A.03, subdivision 34.

new text end

new text begin

(c) This section expires December 31, 2027.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective retroactively from January 1, 2026, and

applies to taxes first required to be paid, and returns first required to be filed, after that date.

new text end

Sec. 26.
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APPROPRIATION; CITY OF SOUTH ST. PAUL; GRANT.
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new text begin

(a) $250,000 in fiscal year 2026 is appropriated from the general fund to the commissioner

of revenue for a grant to the city of South St. Paul. This is a onetime appropriation. The

grant must be paid by June 30, 2026. The grant under this section is not subject to retention

of administrative costs under Minnesota Statutes, section 16B.98, subdivision 14.

new text end

new text begin

(b) The grant under this section must be used by the city of South St. Paul to pay for

planning and development costs within the city.

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. 27.
new text begin
APPROPRIATION; PROFESSIONAL GOLFERS' ASSOCIATION OF

AMERICA (PGA) CHAMPIONSHIP EVENTS.
new text end

new text begin

$7,000,000 in fiscal year 2027 is appropriated from the general fund to the director of

Explore Minnesota for a grant to the city of Chaska to attract, and for costs associated with

hosting, a package of future PGA of America championship-level events, which shall include

at least one men's PGA championship and one women's PGA championship. This

appropriation is onetime and is available until June 30, 2029. Notwithstanding Minnesota

Statutes, section 16B.98, subdivision 14, the director may use up to two percent of the

amount appropriated for administrative costs.

new text end

Sec. 28.
new text begin
CANCELLATIONS.
new text end

new text begin

$7,000,000 of the fiscal year 2024 Minnesota forward fund account appropriation in

Laws 2023, chapter 53, article 21, section 7, paragraph (c), is canceled.

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.
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TRANSFER.
new text end

new text begin

$7,000,000 in fiscal year 2027 is transferred from the Minnesota forward fund account

established in Minnesota Statutes, section 116J.8752, subdivision 3, to the general fund.

This is a onetime transfer.

new text end

ARTICLE 12

DEPARTMENT OF REVENUE; INDIVIDUAL INCOME AND CORPORATE

FRANCHISE TAXES

Section 1.

Minnesota Statutes 2024, section 289A.08, subdivision 7, is amended to read:

Subd. 7.

Composite income tax returns for nonresident partners, shareholders, and

beneficiaries.

(a) The commissioner may allow a partnership with nonresident partners to

file a composite return and to pay the tax on behalf of nonresident partners who have no

other Minnesota source income. This composite return must include the names, addresses,

Social Security numbers, income allocation, and tax liability for the nonresident partners

electing to be covered by the composite return.

(b) The computation of a partner's tax liability must be determined by multiplying the

income allocated to that partner by the highest rate used to determine the tax liability for

individuals under section
290.06, subdivision 2c
. Nonbusiness deductions, standard

deductions, or personal exemptions are not allowed. The computation of a partner's net

investment income tax liability must be computed under section 290.033.

(c) The partnership must submit a request to use this composite return filing method for

nonresident partners. The requesting partnership must file a composite return in the form

prescribed by the commissioner of revenue. The filing of a composite return is considered

a request to use the composite return filing method.

(d) The electing partner must not have any Minnesota source income other than the

income from the partnership, other electing partnerships, and other qualifying entities

electing to file and pay the pass-through entity tax under subdivision 7a. If it is determined

that the electing partner has other Minnesota source income, the inclusion of the income

and tax liability for that partner under this provision will not constitute a return to satisfy

the requirements of subdivision 1. The tax paid for the individual as part of the composite

return is allowed as a payment of the tax by the individual on the date on which the composite

return payment was made. If the electing nonresident partner has no other Minnesota source

income, filing of the composite return is a return for purposes of subdivision 1.

(e) This subdivision does not negate the requirement that an individual pay estimated

tax if the individual's liability would exceed the requirements set forth in section
289A.25
.

The individual's liability to pay estimated tax is, however, satisfied when the partnership

pays composite estimated tax in the manner prescribed in section
289A.25
.

(f) If an electing partner's share of the partnership's gross income from Minnesota sources

is less than the filing requirements for a nonresident under this subdivision, the tax liability

is zero. However, a statement showing the partner's share of gross income must be included

as part of the composite return.

(g) The election provided in this subdivision is only available to a partner who has no

other Minnesota source income and who is either (1) a full-year nonresident individual or

(2) a trust or estate that does not claim a deduction under either section 651 or 661 of the

Internal Revenue Code.

new text begin

(h) The composite return election provided in this subdivision is available to a nonresident

partner who incurs an accelerated gain on installment sales under section 290.0137, paragraph

(a). A nonresident partner who elects to defer the gain on installment sales under section

290.0137, paragraph (b), cannot utilize the composite return election for the partnership

until the recognition of the deferred gain is completed. A nonresident who makes the election

in section 290.0137, paragraph (b), must report the deferred gain on the nonresident's

individual income tax return in the manner prescribed by the commissioner.

new text end

deleted text begin

(h)
deleted text end
new text begin
(i)
new text end
A corporation defined in section
290.9725
and its nonresident shareholders may

make an election under this
deleted text begin
paragraph
deleted text end
new text begin
subdivision
new text end
. The provisions covering the partnership

apply to the corporation and the provisions applying to the partner apply to the shareholder.

deleted text begin

(i)
deleted text end
new text begin
(j)
new text end
Estates and trusts distributing current income only and the nonresident individual

beneficiaries of the estates or trusts may make an election under this
deleted text begin
paragraph
deleted text end
new text begin
subdivision
new text end
.

The provisions covering the partnership apply to the estate or trust. The provisions applying

to the partner apply to the beneficiary.

deleted text begin

(j)
deleted text end
new text begin
(k)
new text end
For the purposes of this subdivision, "income" has the meaning given in section

290.01, subdivision 19
, paragraph (h).

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for taxable years beginning after December

31, 2025.

new text end

Sec. 2.

Minnesota Statutes 2024, section 290.01, subdivision 19, is amended to read:

Subd. 19.

Net income.

(a) For a trust or estate taxable under section
290.03
, and a

corporation taxable under section
290.02
, 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 sections
290.0131
to
290.0136
.

(b) For an individual, the term "net income" means federal adjusted gross income with

the modifications provided in sections
290.0131
,
290.0132
, and
290.0135
to
290.0137
.

(c) 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.

(d) 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.

(e) 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.

(f) The Internal Revenue Code of 1986, as amended through May 1, 2023, applies for

taxable years beginning after December 31, 1996.

(g) Except as otherwise provided, references to the Internal Revenue Code in this

subdivision and sections
290.0131
to
290.0136
mean the code in effect for purposes of

determining net income for the applicable year.

(h) In the case of a partnership electing to file a composite return under section
289A.08
,

subdivision 7, "net income" means the partner's share of federal adjusted gross income from

the partnership modified by
new text begin
:
new text end

new text begin

(1)
new text end
the additions provided in section
290.0131, subdivisions 8
to 10, 16, and 17,
new text begin
and

290.0137, paragraph (a);
new text end
and

new text begin

(2)
new text end
the subtractions provided in:
deleted text begin
(1)
deleted text end
new text begin
(i)
new text end
section
290.0132, subdivisions 9
, 27, and 28, to

the extent the amount is assignable or allocable to Minnesota under section
290.17
;
deleted text begin
and (2)
deleted text end
new text begin

(ii)
new text end
section
290.0132, subdivision 14
new text begin
; and (iii) section 290.0137, paragraph (c)
new text end
.

The subtraction allowed under section
290.0132
, subdivision 9, is only allowed on the

composite tax computation to the extent the electing partner would have been allowed the

subtraction.

(i) In the case of a qualifying entity electing to pay the pass-through entity tax under

section
289A.08, subdivision 7a
, "net income" means the qualifying owner's share of federal

adjusted gross income from the qualifying entity modified by the additions provided in

section
290.0131, subdivisions 5
, 8 to 10, 16, and 17, and the subtractions provided in: (1)

section
290.0132, subdivisions 3
, 9, 27, and 28, to the extent the amount is assignable or

allocable to Minnesota under section
290.17
; and (2) section
290.0132, subdivision 14
. The

subtraction allowed under section
290.0132, subdivision 9
, is only allowed on the

pass-through entity tax computation to the extent the qualifying owners would have been

allowed the subtraction. The income of both a resident and nonresident qualifying owner

is allocated and assigned to this state as provided for nonresident partners and shareholders

under sections
290.17
,
290.191
, and
290.20
.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for taxable years beginning after December

31, 2025.

new text end

Sec. 3.

Minnesota Statutes 2024, section 290.0137, is amended to read:

290.0137 ACCELERATED RECOGNITION OF CERTAIN INSTALLMENT

SALE GAINS.

(a) In the case of a nonresident individual or a person who becomes a nonresident

individual during the tax year, taxable net income shall include the amount realized upon

a sale of the assets of, or any interest in, an S corporation or partnership that operated in

Minnesota during the year of sale, including any income or gain to be recognized in future

years pursuant to an installment sale method of reporting under the Internal Revenue Code.

(1) For the purposes of this paragraph, an individual who becomes a nonresident of

Minnesota in any year after an installment sale is required to recognize the full amount of

any income or gain described in this paragraph on the individual's final Minnesota resident

tax return to the extent that such income has not been recognized in a prior year.

(2) For the purposes of this section, "realized" has the meaning given in section 1001(b)

of the Internal Revenue Code.

(3) For the purposes of this section, "installment sale" means any installment sale under

section 453 of the Internal Revenue Code and any other sale that is reported utilizing a

method of accounting authorized under subchapter E of the Internal Revenue Code that

allows taxpayers to delay reporting or recognizing a realized gain until a future year.

(b) Notwithstanding paragraph (a), nonresident taxpayers may elect to defer recognizing

unrecognized installment sale gains by making an election under this paragraph. The election

must be filed on a form to be determined or prescribed by the commissioner and must be

filed by the due date of the individual income tax return, including any extension. Electing

taxpayers must make an irrevocable agreement to:

(1) file Minnesota tax returns in all subsequent years when gains from the installment

sales are recognized and reported to the Internal Revenue Service;

(2) allocate gains to the state of Minnesota as though the gains were realized in the year

of sale under section
290.17
,
290.191
, or
290.20
; and

(3) include all relevant federal tax documents reporting the installment sale with

subsequent Minnesota tax returns.

(c) Income or gain recognized for Minnesota purposes pursuant to paragraph (a) must

be excluded from taxable net income in any future year that
deleted text begin
the taxpayer files a Minnesota

tax return
deleted text end
new text begin
a composite Minnesota tax return is filed
new text end
to the extent that the income or gain

has already been subject to tax pursuant to paragraph (a).
new text begin
If a composite Minnesota tax

return is not filed, then any income or gain recognized for Minnesota purposes under

paragraph (a) must be excluded from taxable net income in any future year in which the

taxpayer files a Minnesota tax return to the extent that the income or gain has already been

subject to tax pursuant to paragraph (a).
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, 2025.

new text end

ARTICLE 13

DEPARTMENT OF REVENUE; PROPERTY TAXES

Section 1.

Minnesota Statutes 2024, section 273.032, is amended to read:

273.032 MARKET VALUE DEFINITION.

(a) Unless otherwise provided, for the purpose of determining any property tax levy

limitation based on market value or any limit on net debt, the issuance of bonds, certificates

of indebtedness, or capital notes based on market value, any qualification to receive state

aid based on market value, or any state aid amount based on market value, the terms "market

value," "estimated market value," and "market valuation," whether equalized or unequalized,

mean the estimated market value of taxable property within the local unit of government

before any of the following or similar adjustments for:

(1) the market value exclusions under:

(i) section
273.11, subdivisions 14a
and 14c (vacant platted land);

deleted text begin

(ii) section
273.11, subdivisions 19
and 20 (certain improvements to business properties);

deleted text end

deleted text begin

(iii)
deleted text end
new text begin
(ii)
new text end
section
273.11, subdivision 21
(homestead property damaged by mold);

deleted text begin

(iv)
deleted text end
new text begin
(iii)
new text end
section
273.13, subdivision 34
(homestead of a veteran with a disability or

family caregiver); or

deleted text begin

(v)
deleted text end
new text begin
(iv)
new text end
section
273.13, subdivision 35
(homestead market value exclusion); or

(2) the deferment of value under:

(i) the Minnesota Agricultural Property Tax Law, section
273.111
;

(ii) the Aggregate Resource Preservation Law, section
273.1115
;

(iii) the Minnesota Open Space Property Tax Law, section
273.112
;

(iv) the rural preserves property tax program, section
273.114
; or

(v) the Metropolitan Agricultural Preserves Act, section
473H.10
; or

(3) the adjustments to tax capacity for:

(i) tax increment financing under sections
469.174
to
469.1794
;

(ii) fiscal disparities under chapter 276A or 473F; or

(iii) powerline credit under section
273.425
.

(b) Estimated market value under paragraph (a) also includes the market value of

tax-exempt property if the applicable law specifically provides that the limitation,

qualification, or aid calculation includes tax-exempt property.

(c) Unless otherwise provided, "market value," "estimated market value," and "market

valuation" for purposes of property tax levy limitations and calculation of state aid, refer

to the estimated market value for the previous assessment year and for purposes of limits

on net debt, the issuance of bonds, certificates of indebtedness, or capital notes refer to the

estimated market value as last finally equalized.

(d) For purposes of a provision of a home rule charter or of any special law that is not

codified in the statutes and that imposes a levy limitation based on market value or any limit

on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market

value, the terms "market value," "taxable market value," and "market valuation," whether

equalized or unequalized, mean "estimated market value" as defined in paragraph (a).

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 2024, section 273.111, subdivision 9, is amended to read:

Subd. 9.

Additional taxes.

deleted text begin
(a) Except as provided in paragraph (b),
deleted text end
When real property

which is being, or has been valued and assessed under this section no longer qualifies under

subdivision 3, the portion no longer qualifying shall be subject to additional taxes, in the

amount equal to the difference between the taxes determined in accordance with subdivision

4, and the amount determined under subdivision 5. Provided, however, that the amount

determined under subdivision 5 shall not be greater than it would have been had the actual

bona fide sale price of the real property at an arm's-length transaction been used in lieu of

the market value determined under subdivision 5. Such additional taxes shall be extended

against the property on the tax list for the current year, provided, however, that no interest

or penalties shall be levied on such additional taxes if timely paid, and provided further,

that such additional taxes shall only be levied with respect to the last three years that the

said property has been valued and assessed under this section.

deleted text begin

(b) Real property that has been valued and assessed under this section prior to May 29,

2008, and that ceases to qualify under this section after May 28, 2008, and is withdrawn

from the program before August 16, 2010, is not subject to additional taxes under this

subdivision or subdivision 3, paragraph (c). If additional taxes have been paid under this

subdivision with respect to property described in this paragraph prior to April 3, 2009, the

county must repay the property owner in the manner prescribed by the commissioner of

revenue.

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.
new text begin
REPEALER.
new text end

new text begin

Minnesota Statutes 2024, sections 272.02, subdivision 31; 273.11, subdivisions 19 and

20; 273.1315, subdivision 1; 273.1385; 273.25; 273.65; 273.66; 273.67; 274.07; 428B.02,

subdivision 7; 477A.085; and 477A.18,

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 14

DEPARTMENT OF REVENUE; MISCELLANEOUS

Section 1.

Minnesota Statutes 2024, section 123B.53, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the eligible debt service

revenue of a district is defined as follows:

(1) the amount needed to produce between five and six percent in excess of the amount

needed to meet when due the principal and interest payments on the obligations of the district

for eligible projects according to subdivision 2, excluding the amounts listed in paragraph

(b), minus

(2) the amount of debt service excess levy reduction for that school year calculated

according to the procedure established by the commissioner.

(b) The obligations in this paragraph are excluded from eligible debt service revenue:

(1) obligations under section
123B.61
;

(2) the part of debt service principal and interest paid from the taconite environmental

protection fund or Douglas J. Johnson economic protection trust, excluding the portion of

taconite payments from the Iron Range schools and community development account under

section
298.28, subdivision 7a
;

(3) obligations for long-term facilities maintenance under section
123B.595
;

(4) obligations under section
123B.62
; and

(5) obligations equalized under section
123B.535
.

(c) For purposes of this section, if a preexisting school district reorganized under sections

123A.35
to
123A.43
,
123A.46
, and
123A.48
is solely responsible for retirement of the

preexisting district's bonded indebtedness or capital loans, debt service equalization aid

must be computed separately for each of the preexisting districts.

deleted text begin

(d) For purposes of this section, the adjusted net tax capacity determined according to

sections
127A.48
and
273.1325
shall be adjusted to include the tax capacity of property

generally exempted from ad valorem taxes under section
272.02
, subdivision 64.

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. 2.

Minnesota Statutes 2024, section 123B.535, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the eligible natural disaster

debt service revenue of a district is defined as the amount needed to produce between five

and six percent in excess of the amount needed to meet when due the principal and interest

payments on the obligations of the district that would otherwise qualify under section

123B.53
under the following conditions:

(1) the district was impacted by a natural disaster event or area occurring January 1,

2005, or later, as declared by the President of the United States of America, which is eligible

for Federal Emergency Management Agency payments;

(2) the natural disaster caused $500,000 or more in damages to school district buildings;

and

(3) the repair and replacement costs are not covered by insurance payments or Federal

Emergency Management Agency payments.

(b) For purposes of this section, the adjusted net tax capacity equalizing factor equals

the quotient derived by dividing the total adjusted net tax capacity of all school districts in

the state for the year before the year the levy is certified by the total number of adjusted

pupil units in the state for the year prior to the year the levy is certified.

deleted text begin

(c) For purposes of this section, the adjusted net tax capacity determined according to

sections
127A.48
and
273.1325
shall be adjusted to include the tax capacity of property

generally exempted from ad valorem taxes under section
272.02, subdivision 64
.

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 2025 Supplement, section 268.19, subdivision 1, is amended

to read:

Subdivision 1.

Use of data.

(a) Except as provided by this section, data gathered from

any person under 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 according to a district court order

or section
13.05
. A subpoena is not 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) the public authority responsible for child support in Minnesota or any other state in

accordance with section
518A.83
;

(5) human rights agencies within Minnesota that have enforcement powers;

(6) the Department of Revenue to the extent necessary for its duties under Minnesota

laws;

(7) public and private agencies responsible for administering publicly financed assistance

programs for the purpose of monitoring the eligibility of the program's recipients;

(8) the Department of Labor and Industry, the Department of Commerce, and the Bureau

of Criminal Apprehension for uses consistent with the administration of their duties under

Minnesota law;

(9) the Department of Human Services and the Office of Inspector General and its agents

within the Department of Human Services, including county fraud investigators, for

investigations related to recipient or provider fraud and employees of providers when the

provider is suspected of committing public assistance fraud;

(10) the Department of Human Services for the purpose of evaluating medical assistance

services and supporting program improvement;

(11) 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 and other cash assistance programs, the Supplemental Nutrition Assistance Program,

and the Supplemental Nutrition Assistance Program Employment and Training program by

providing data on recipients and former recipients of Supplemental Nutrition Assistance

Program (SNAP) benefits, cash assistance under chapter 256, 256D, 256J, or 256K, child

care assistance under chapter 142E, or medical programs under chapter 256B or 256L or

formerly codified under chapter 256D;

(12) 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;

(13) local, state, and federal law enforcement agencies for the purpose of ascertaining

the last known address and employment location of an individual who is the subject of a

criminal investigation;

(14) the United States Immigration and Customs Enforcement has 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;

(15) the Department of Health for the purposes of epidemiologic investigations;

(16) the Department of Corrections for the purposes of case planning and internal research

for preprobation, probation, and postprobation employment tracking of offenders sentenced

to probation and preconfinement and postconfinement employment tracking of committed

offenders;

deleted text begin

(17) the state auditor to the extent necessary to conduct audits of job opportunity building

zones as required under section
469.3201
;

deleted text end

deleted text begin

(18)
deleted text end
new text begin
(17)
new text end
the Office of Higher Education for purposes of supporting program

improvement, system evaluation, and research initiatives including the Statewide

Longitudinal Education Data System;

deleted text begin

(19)
deleted text end
new text begin
(18)
new text end
the Family and Medical Benefits Division of the Department of Employment

and Economic Development to be used as necessary to administer chapter 268B; and

deleted text begin

(20)
deleted text end
new text begin
(19)
new text end
the executive director or interim executive director of the Minnesota Secure

Choice Retirement Program established under chapter 187 for the purposes of assisting with

communication with employers and to verify employer compliance with chapter 187.

(b) Data on individuals and employers that are collected, maintained, or used by the

department in an investigation under 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 under 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 in 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. 4.

Minnesota Statutes 2024, section 270B.14, subdivision 3, is amended to read:

Subd. 3.

Administration of enterprise and job opportunity programs.

The

commissioner may disclose return information relating to the taxes imposed by chapters

290 and 297A to the Department of Employment and Economic Development or a

municipality with a border city enterprise zone as defined under section
469.166
, but only

as necessary to administer the funding limitations under section
469.169
deleted text begin
, or to the Department

of Employment and Economic Development and appropriate officials from the local

government units in which a qualified business is located but only as necessary to enforce

the job opportunity building zone benefits under section
469.315
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. 5.

Minnesota Statutes 2024, section 270B.15, is amended to read:

270B.15 DISCLOSURE TO LEGISLATIVE AUDITOR
deleted text begin
AND STATE AUDITOR
deleted text end
.

deleted text begin

(a)
deleted text end
Returns 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
.

deleted 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
.

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. 6.

Minnesota Statutes 2024, section 270C.055, is amended by adding a subdivision

to read:

new text begin

Subd. 4.

new text end

new text begin

Venue.

new text end

new text begin

Unless otherwise provided in chapter 289A, if two or more criminal

offenses under the state revenue laws or chapter 349 are committed by the same person in

more than one county, the accused may be prosecuted for all the offenses in any county in

which one of the offenses was committed.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective for criminal offenses committed after

July 31, 2026.

new text end

Sec. 7.

Minnesota Statutes 2024, section 290.01, subdivision 29, is amended to read:

Subd. 29.

Taxable income.

The term "taxable income" means:

(1) for individuals, estates, and trusts, the same as taxable net income;

(2) for corporations, the taxable net income less

(i) the net operating loss deduction under section
290.095
;
new text begin
and
new text end

(ii) the dividends received deduction under section
290.21, subdivision 4
deleted text begin
; and
deleted text end
new text begin
.
new text end

deleted text begin

(iii) the exemption for operating in a job opportunity building zone under section
469.317
.

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. 8.

Minnesota Statutes 2024, 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) 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
290.0133, subdivision 11
, is disallowed in determining alternative minimum taxable

income.

(2) The subtraction for depreciation allowed under section
290.0134, subdivision 13
, is

allowed as a depreciation deduction in determining alternative minimum taxable income.

(3) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d)

of the Internal Revenue Code does not apply.

(4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal

Revenue Code does not apply.

(5) The tax preference for depletion under section 57(a)(1) of the Internal Revenue Code

does not apply.

(6) The tax preference for tax exempt interest under section 57(a)(5) of the Internal

Revenue Code does not apply.

(7) The tax preference for charitable contributions of appreciated property under section

57(a)(6) of the Internal Revenue Code does not apply.

(8) 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.

(9) 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
290.0134
, subdivision 2, or (ii) the amount of refunds of

income, excise, or franchise taxes subtracted as provided in section
290.0134, subdivision

8
.

deleted text begin

(10) Alternative minimum taxable income excludes the income from operating in a job

opportunity building zone as provided under section
469.317
.

deleted text end

deleted text begin

Items of tax preference must not be reduced below zero as a result of the modifications

in this subdivision.

deleted text end

deleted text begin

(11)
deleted text end
new text begin
(10)
new text end
The subtraction for disallowed section 280E expenses under section
290.0134
,

subdivision 19, is allowed as a deduction in determining alternative minimum taxable

income.

new text begin

Items of tax preference must not be reduced below zero as a result of the modifications

in this subdivision.

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. 9.

Minnesota Statutes 2024, section 290.0922, subdivision 2, is amended to read:

Subd. 2.

Exemptions.

The following entities are exempt from the tax imposed by this

section:

(1) corporations exempt from tax under section
290.05
;

(2) real estate investment trusts;

(3) regulated investment companies or a fund thereof;

(4) entities having a valid election in effect under section 860D(b) of the Internal Revenue

Code;

(5) township mutual insurance companies;
new text begin
and
new text end

(6) cooperatives organized under chapter 308A, 308B, or 308C that provide housing

exclusively to persons age 55 and over and are classified as homesteads under section

273.124, subdivision 3
deleted text begin
; and
deleted text end
new text begin
.
new text end

deleted text begin

(7) a qualified business as defined under section
469.310, subdivision 11
, if for the

taxable year all of its property is located in a job opportunity building zone designated under

section
469.314
and all of its payroll is a job opportunity building zone payroll under section

469.310
.

deleted text end

Entities not specifically exempted by this subdivision are subject to tax under this section,

notwithstanding section
290.05
.

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 2024, section 290.0922, subdivision 3, is amended to read:

Subd. 3.

Definitions.

(a) "Minnesota sales or receipts" means the total sales apportioned

to Minnesota pursuant to section
290.191, subdivision 5
, the total receipts attributed to

Minnesota pursuant to section
290.191
, subdivisions 6 to 8, and/or the total sales or receipts

apportioned or attributed to Minnesota pursuant to any other apportionment formula

applicable to the taxpayer.

(b) "Minnesota property" means total Minnesota tangible property as provided in section

290.191
, subdivisions 9 to 11,
new text begin
and
new text end
any other tangible property located in Minnesota
deleted text begin
, but

does not include the property of a qualified business as defined under section
469.310,

subdivision 11
, that is located in a job opportunity building zone designated under section

469.314
deleted text end
. Intangible property shall not be included in Minnesota property for purposes of

this section. Taxpayers who do not utilize tangible property to apportion income shall

nevertheless include Minnesota property for purposes of this section. On a return for a short

taxable year, the amount of Minnesota property owned, as determined under section
290.191
,

shall be included in Minnesota property based on a fraction in which the numerator is the

number of days in the short taxable year and the denominator is 365.

(c) "Minnesota payrolls" means total Minnesota payrolls as provided in section
290.191,

subdivision 12
, but does not include the job opportunity building zone payroll under section

469.310, subdivision 8
, of a qualified business as defined under section
469.310, subdivision

11
. Taxpayers who do not utilize payrolls to apportion income shall nevertheless include

Minnesota payrolls for purposes of this section.

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 2024, section 295.52, subdivision 5, is amended to read:

Subd. 5.

Volunteer ambulance services.

Volunteer ambulance services are not subject

to the tax under this section. For purposes of this requirement, "volunteer ambulance service"

means an ambulance service in which all of the individuals whose primary responsibility

is direct patient care meet the definition of volunteer
new text begin
ambulance attendant
new text end
under section

144E.001, subdivision 15
. The ambulance service may employ administrative and support

staff, and remain eligible for this exemption, if the primary responsibility of these staff is

not direct patient care.

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 2025 Supplement, section 297A.75, subdivision 1, is amended

to read:

Subdivision 1.

Tax collected.

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) building materials for an agricultural processing facility exempt under section

297A.71, subdivision 13
;

(2) building materials for mineral production facilities exempt under section
297A.71,

subdivision 14
;

(3) building materials for correctional facilities under section
297A.71, subdivision 3
;

(4) building materials used in a residence for veterans with a disability exempt under

section
297A.71, subdivision 11
;

(5) elevators and building materials exempt under section
297A.71, subdivision 12
;

(6) materials and supplies for qualified low-income housing under section
297A.71,

subdivision 23
;

(7) materials, supplies, and equipment for municipal electric utility facilities under

section
297A.71, subdivision 35
;

deleted text begin

(8) 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 end

deleted text begin

(9)
deleted text end
new text begin
(8)
new text end
commuter rail vehicle and repair parts under section
297A.70, subdivision 3
,

paragraph (a), clause (10);

deleted text begin

(10)
deleted text end
new text begin
(9)
new text end
materials, supplies, and equipment for construction or improvement of projects

and facilities under section
297A.71, subdivision 40
;

deleted text begin

(11)
deleted text end
new text begin
(10)
new text end
enterprise information technology equipment and computer software for use

in a qualified data center, qualified large-scale data center, or qualified refurbished data

center exempt under section
297A.68, subdivision 42
;

deleted text begin

(12)
deleted text end
new text begin
(11)
new text end
materials, supplies, and equipment for qualifying capital projects under section

297A.71, subdivision 44
, paragraphs (a) and (b);

deleted text begin

(13)
deleted text end
new text begin
(12)
new text end
items purchased for use in providing critical access dental services exempt

under section
297A.70, subdivision 7
, paragraph (c);

deleted text begin

(14)
deleted text end
new text begin
(13)
new text end
items and services purchased under a business subsidy agreement for use or

consumption primarily in greater Minnesota exempt under section
297A.68, subdivision

44
;

deleted text begin

(15)
deleted text end
new text begin
(14)
new text end
building materials, equipment, and supplies for constructing or replacing real

property exempt under section
297A.71, subdivisions
deleted text begin
49
deleted text end
deleted text begin
;
deleted text end
50, paragraph (b)
deleted text begin
;
deleted text end
new text begin
,
new text end
and 51;

deleted text begin

(16)
deleted text end
new text begin
(15)
new text end
building materials, equipment, and supplies for qualifying capital projects

under section
297A.71, subdivision 52
;

deleted text begin

(17)
deleted text end
new text begin
(16)
new text end
building materials, equipment, and supplies for constructing, remodeling,

expanding, or improving a fire station, police station, or related facilities exempt under

section
297A.71, subdivision 53
; and

deleted text begin

(18)
deleted text end
new text begin
(17)
new text end
building materials, equipment, and supplies for constructing, remodeling, or

improving a sustainable aviation fuel facility exempt under section
297A.71, subdivision

54
.

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 2025 Supplement, 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), (2), and
deleted text begin
(13)
deleted text end
new text begin
(12)
new text end
, the applicant must be the purchaser;

(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;

(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits

provided in United States Code, title 38, chapter 21;

(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead

property;

(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;

(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a

joint venture of municipal electric utilities;

(7) for subdivision 1, clauses
deleted text begin
(8), (11), and (14)
deleted text end
new text begin
(10) and (13)
new text end
, the owner of the qualifying

business;

(8) for subdivision 1, clauses
deleted text begin
(9), (10), (12), (16), and (17)
deleted text end
new text begin
(8), (9), (11), (15), and (16)
new text end
,

the applicant must be the governmental entity that owns or contracts for the project or

facility;

(9) for subdivision 1, clause
deleted text begin
(15)
deleted text end
new text begin
(14)
new text end
, the applicant must be the owner or developer of

the building or project; and

(10) for subdivision 1, clause
deleted text begin
(18)
deleted text end
new text begin
(17)
new text end
, the applicant must be the owner or developer

of the sustainable aviation fuel facility.

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 2025 Supplement, 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, clauses (3) to
deleted text begin
(12)
deleted text end
new text begin
(11)
new text end
or
deleted text begin
(14) to (18)
deleted text end
new text begin
(13) to (17)
new 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. 15.

Minnesota Statutes 2025 Supplement, section 297A.94, is amended to read:

297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner shall deposit the revenues,

including interest and penalties, derived from the taxes imposed by this chapter in the state

treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic

account in the special revenue fund if:

(1) the taxes are derived from sales and use of property and services purchased for the

construction and operation of an agricultural resource project; and

(2) the purchase was made on or after the date on which a conditional commitment was

made for a loan guaranty for the project under section
41A.04, subdivision 3
.

The commissioner of management and budget shall certify to the commissioner the date on

which the project received the conditional commitment. The amount deposited in the loan

guaranty account must be reduced by any refunds and by the costs incurred by the Department

of Revenue to administer and enforce the assessment and collection of the taxes.

(c) The commissioner shall deposit the revenues, including interest and penalties, derived

from the taxes imposed on sales and purchases included in section
297A.61, subdivision 3
,

paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:

(1) first to the general obligation special tax bond debt service account in each fiscal

year the amount required by section
16A.661, subdivision 3
, paragraph (b); and

(2) after the requirements of clause (1) have been met, the balance to the general fund.

(d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit

in the state treasury the revenues collected under section
297A.64, subdivision 1
, including

interest and penalties and minus refunds, and credit them to the highway user tax distribution

fund.

(e) The commissioner shall deposit the revenues, including interest and penalties,

collected under section
297A.64, subdivision 5
, in the state treasury and credit them to the

general fund. By July 15 of each year the commissioner shall transfer to the highway user

tax distribution fund an amount equal to the excess fees collected under section
297A.64,

subdivision 5
, for the previous calendar year.

(f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit

of revenues under paragraph (d), the commissioner shall deposit into the state treasury and

credit to the highway user tax distribution fund an amount equal to the estimated revenues

derived from the tax rate imposed under section
297A.62, subdivision 1
, on the lease or

rental for not more than 28 days of rental motor vehicles subject to section
297A.64
. The

commissioner shall estimate the amount of sales tax revenue deposited under this paragraph

based on the amount of revenue deposited under paragraph (d).

(g) Each month the commissioner must deposit an amount equal to the estimated revenues

derived from the taxes imposed under section
297A.62, subdivision 1
, on the sale and

purchase of motor vehicle repair and replacement parts in the state treasury and credit:

(1) a percentage to the highway user tax distribution fund as follows:

(i) 43.5 percent in each of fiscal years 2024 and 2025;

(ii) 43 percent in fiscal year 2026;

(iii) 41 percent in fiscal year 2027;

(iv) 36 percent in fiscal year 2028;

(v) 30 percent in fiscal year 2029;

(vi) 36 percent in each of fiscal years 2030 to 2034;

(vii) 38.5 percent in fiscal year 2035;

(viii) 41 percent in fiscal year 2036; and

(ix) 43.5 percent in fiscal year 2037 and thereafter;

(2) a percentage to the transportation advancement account under section
174.49
as

follows:

(i) 3.5 percent in fiscal year 2024;

(ii) 4.5 percent in fiscal year 2025;

(iii) 5.5 percent in fiscal year 2026;

(iv) 7.5 percent in fiscal year 2027;

(v) 14.5 percent in fiscal year 2028;

(vi) 21.5 percent in fiscal year 2029;

(vii) 28.5 percent in fiscal year 2030;

(viii) 36.5 percent in fiscal year 2031;

(ix) 44.5 percent in fiscal year 2032; and

(x) 56.5 percent in fiscal year 2033 and thereafter; and

(3) the remainder in each fiscal year to the general fund.

After each February forecast, and prior to the following April 15, the commissioner shall

estimate the monthly deposit amount for use in the following fiscal year based on the estimate

of average revenue derived from the taxes imposed under section
297A.62, subdivision 1
,

on the sale and purchase of motor vehicle repair and replacement parts from the department's

three most recent consumption tax models.
new text begin
If, after the commissioner estimates the monthly

deposit amounts and prior to July 1, the rate of tax imposed under section 297A.62,

subdivision 1, or the percentages specified under this paragraph are impacted by a law

change, then the commissioner must update the estimated deposit amount by July 15.
new text end
For

purposes of this paragraph, "motor vehicle" has the meaning given in section
297B.01,

subdivision 11
, and "motor vehicle repair and replacement parts" includes (i) all parts, tires,

accessories, and equipment incorporated into or affixed to the motor vehicle as part of the

motor vehicle maintenance and repair, and (ii) paint, oil, and other fluids that remain on or

in the motor vehicle as part of the motor vehicle maintenance or repair. For purposes of this

paragraph, "tire" means any tire of the type used on highway vehicles, if wholly or partially

made of rubber and if marked according to federal regulations for highway use.

(h) 81.56 percent of the revenues, including interest and penalties, transmitted to the

commissioner under section
297A.65
, must be deposited by the commissioner in the state

treasury as follows:

(1) 47.5 percent of the receipts must be deposited in the heritage enhancement account

in the game and fish fund, and may be spent only on activities that improve, enhance, or

protect fish and wildlife resources, including conservation, restoration, and enhancement

of land, water, and other natural resources of the state;

(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may

be spent only for state parks and trails;

(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may

be spent only on metropolitan park and trail grants;

(4) three percent of the receipts must be deposited in the natural resources fund, and

may be spent only on local trail grants;

(5) two percent of the receipts must be deposited in the natural resources fund, and may

be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,

and the Duluth Zoo; and

(6) 2.5 percent of the receipts must be deposited in the pollinator account established in

section
103B.101, subdivision 19
.

(i) 1.5 percent of the revenues, including interest and penalties, transmitted to the

commissioner under section
297A.65
must be deposited in a regional parks and trails account

in the natural resources fund and may only be spent for parks and trails of regional

significance outside of the seven-county metropolitan area under section
85.535
, based on

recommendations from the Greater Minnesota Regional Parks and Trails Commission under

section
85.536
.

(j) 1.5 percent of the revenues, including interest and penalties, transmitted to the

commissioner under section
297A.65
must be deposited in an outdoor recreational

opportunities for underserved communities account in the natural resources fund and may

only be spent on projects and activities that connect diverse and underserved Minnesotans

through expanding cultural environmental experiences, exploration of their environment,

and outdoor recreational activities.

(k) The revenue dedicated under paragraph (h) may not be used as a substitute for

traditional sources of funding for the purposes specified, but the dedicated revenue shall

supplement traditional sources of funding for those purposes. Land acquired with money

deposited in the game and fish fund under paragraph (h) must be open to public hunting

and fishing during the open season, except that in aquatic management areas or on lands

where angling easements have been acquired, fishing may be prohibited during certain times

of the year and hunting may be prohibited. At least 87 percent of the money deposited in

the game and fish fund for improvement, enhancement, or protection of fish and wildlife

resources under paragraph (h) must be allocated for field operations.

(l) The commissioner must deposit the revenues, including interest and penalties minus

any refunds, derived from the sale of items regulated under section
624.20, subdivision 1
,

that may be sold to persons 18 years old or older and that are not prohibited from use by

the general public under section
624.21
, in the state treasury and credit:

(1) 25 percent to the volunteer fire assistance grant account established under section

88.068
;

(2) 25 percent to the fire safety account established under section
297I.06, subdivision

3
; and

(3) the remainder to the general fund.

For purposes of this paragraph, the percentage of total sales and use tax revenue derived

from the sale of items regulated under section
624.20, subdivision 1
, that are allowed to be

sold to persons 18 years old or older and are not prohibited from use by the general public

under section
624.21
, is a set percentage of the total sales and use tax revenues collected in

the state, with the percentage determined under Laws 2017, First Special Session chapter

1, article 3, section 39.

(m) The revenues deposited under paragraphs (a) to (l) do not include the revenues,

including interest and penalties, generated by the sales tax imposed under section
297A.62,

subdivision 1a
, which must be deposited as provided under the Minnesota Constitution,

article XI, section 15.

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EFFECTIVE DATE.

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This section is effective retroactively from January 1, 2026.

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Sec. 16.

Minnesota Statutes 2024, 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,

as amended through December 16, 2016;

(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 by an ambulance service licensed under section
144E.10

when that vehicle is equipped and specifically intended for emergency response or for

providing ambulance service;

(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
168.002
, a bus, as defined in section
168.002
, or a

passenger automobile, as defined in section
168.002
, 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
;

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(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 tax;

deleted text end

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(14)
deleted text end
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(13)
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purchase of a leased vehicle by the lessee who was a participant in a

lease-to-own program from a charitable organization that is:

(i) described in section 501(c)(3) of the Internal Revenue Code; and

(ii) licensed as a motor vehicle lessor under section
168.27, subdivision 4
;

deleted text begin

(15)
deleted text end
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(14)
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purchase of a motor vehicle used exclusively as a mobile medical unit for the

provision of medical or dental services by a federally qualified health center, as defined

under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus Budget

Reconciliation Act of 1990; and

deleted text begin

(16)
deleted text end
new text begin
(15)
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purchase of a motor vehicle by a veteran having a total service-connected

disability, as defined in section
171.01, subdivision 51
.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 17.

Minnesota Statutes 2025 Supplement, section 299C.76, subdivision 1, is amended

to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following definitions

apply.

(b) "Federal tax information" means federal tax returns and return information or

information derived or created from federal tax returns, in possession of or control by the

requesting agency, that is covered by the safeguarding provisions of section 6103(p)(4) of

the Internal Revenue Code.

(c) "IRS Publication 1075" means Internal Revenue Service Publication 1075 that

provides guidance and requirements for the protection and confidentiality of federal tax

information as required in section 6103(p)(4) of the Internal Revenue Code.

(d) "National criminal history record information" means the Federal Bureau of

Investigation identification records as defined in Code of Federal Regulations, title 28,

section 20.3(d).

(e) "Requesting agency" means the Department of Revenue; Department of Employment

and Economic Development; Department of Human Services; Department of Children,

Youth, and Families; board of directors of MNsure; Department of Information Technology

Services; attorney general;
new text begin
Office of the Legislative Auditor;
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and counties.

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EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment.

new text end

Sec. 18.
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REPEALER.
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new text begin

Minnesota Statutes 2024, sections 272.02, subdivision 64; 272.029, subdivision 7;

289A.12, subdivision 15; 290.06, subdivision 29; 297A.68, subdivision 37; 469.310; 469.311;

469.312; 469.313; 469.314; 469.315; 469.316; 469.317; 469.318; 469.3181; 469.319;

469.3191; 469.3192; 469.3193; 469.320; and 469.3201,

new text end

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are repealed.

new text end

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EFFECTIVE DATE.

new text end

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This section is effective the day following final enactment.

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APPENDIX

Repealed Minnesota Statutes: S5052-1

272.02 EXEMPT PROPERTY.

Subd. 31.

Business incubator property.

Property owned by a nonprofit charitable organization that qualifies for tax exemption under section 501(c)(3) of the Internal Revenue Code that is intended to be used as a business incubator in a high-unemployment county, is exempt. As used in this subdivision, a "business incubator" is a facility used for the development of nonretail businesses, offering access to equipment, space, services, and advice to the tenant businesses, for the purpose of encouraging economic development, diversification, and job creation in the area served by the organization, and "high-unemployment county" is a county that had an average annual unemployment rate of 7.9 percent or greater in 1997. Property that qualifies for the exemption under this subdivision is limited to no more than two contiguous parcels and structures that do not exceed in the aggregate 40,000 square feet. This exemption expires after taxes payable in 2016.

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) other school district levies included in the debt service levy of the district under section
123B.55
.

(e) Except for property of a business that was exempt under this subdivision for taxes payable in 2008, 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.

272.029 WIND ENERGY PRODUCTION TAX.

Subd. 7.

Exemption.

The tax imposed under this section does not apply to electricity produced by wind energy conversion systems located in a job opportunity building zone for the duration of the zone. The exemption applies beginning for the first calendar year after designation of the zone and applies to each calendar year that begins during the designation of the zone. The exemption only applies if the owner of the system is a qualified business under section
469.310, subdivision 11
, who has entered into a business subsidy agreement that covers the land on which the system is situated.

273.11 VALUATION OF PROPERTY.

Subd. 19.

Valuation exclusion for improvements to certain business property.

Property classified under section
273.13, subdivision 24
, which is eligible for the preferred classification rate on the market value up to $150,000, shall qualify for a valuation exclusion for assessment purposes, provided all of the following conditions are met:

(1) the building must be at least 50 years old at the time of the improvement or damaged by the 1997 floods;

(2) the building must be located in a city or town with a population of 10,000 or less that is located outside the seven-county metropolitan area, as defined in section
473.121, subdivision 2
;

(3) the total estimated market value of the land and buildings must be $100,000 or less prior to the improvement and prior to the damage caused by the 1997 floods;

(4) the current year's estimated market value of the property must be equal to or less than the property's estimated market value in each of the two previous years' assessments;

(5) a building permit must have been issued prior to the commencement of the improvement, or if the building is located in a city or town which does not have a building permit process, the property owner must notify the assessor prior to the commencement of the improvement;

(6) the property, including its improvements, has received no public assistance, grants or financing except, that in the case of property damaged by the 1997 floods, the property is eligible to the extent that the flood losses are not reimbursed by insurance or any public assistance, grants, or financing;

(7) the property is not receiving a property tax abatement under section
469.1813
; and

(8) the improvements are made after the effective date of Laws 1997, chapter 231, and prior to January 1, 1999.

The assessor shall estimate the market value of the building in the assessment year immediately following the year that (1) the building permit was taken out, or (2) the taxpayer notified the assessor that an improvement was to be made. If the estimated market value of the building has increased over the prior year's assessment, the assessor shall note the amount of the increase on the property's record, and that amount shall be subtracted from the value of the property in each year for five years after the improvement has been made, at which time an amount equal to 20 percent of the excluded value shall be added back in each of the five subsequent assessment years.

For any property, there can be no more than two improvements qualifying for exclusion under this subdivision. The maximum amount of value that can be excluded from any property under this subdivision is $50,000.

The assessor shall require an application, including documentation of the age of the building from the owner, if unknown by the assessor. Applications must be received prior to July 1 of any year in order to be effective for taxes payable in the following year.

For purposes of this subdivision, "population" has the same meaning given in section
477A.011, subdivision 3
.

Subd. 20.

Valuation exclusion for improvements to certain business property.

Property classified under section
273.13, subdivision 24
, qualifies for a valuation exclusion for assessment purposes, provided all of the following conditions are met:

(1) the building must have been damaged by the 2002 floods;

(2) the building must be located in a city or town with a population of 10,000 or less that is located in a county in the area included in DR-1419;

(3) the total estimated market value of the land and buildings must be $150,000 or less for assessment year 2002;

(4) a building permit must have been issued prior to the commencement of the improvement, or if the building is located in a city or town which does not have a building permit process, the property owner must notify the assessor prior to the commencement of the improvement;

(5) the property is not receiving a property tax abatement under section
469.1813
; and

(6) the improvements are made before January 1, 2004.

The assessor shall estimate the market value of the building in the assessment year immediately following the year that (1) the building permit was taken out, or (2) the taxpayer notified the assessor that an improvement was to be made. If the estimated market value of the building has increased over the 2002 assessment before any reassessment due to flood damage, the assessor shall note the amount of the increase on the property's record, and that amount shall be subtracted from the value of the property in each year for five years after the improvement has been made. In each of the next five subsequent assessment years, an amount equal to 20 percent of the value excluded in the fifth year for that improvement shall be added back.

The maximum amount of value that can be excluded for all improvements to any property under this subdivision is $50,000.

The assessor shall require an application. Applications must be received by December 31, 2002, or December 31, 2003, in order to be effective for taxes payable in the following year.

For purposes of this subdivision, "population" has the meaning given in section
477A.011, subdivision 3
.

273.1315 CERTIFICATION OF CLASS 1B PROPERTY.

Subdivision 1.

Class 1b homestead declaration before 2009.

Any property owner seeking classification and assessment of the owner's homestead as class 1b property pursuant to section
273.13, subdivision 22
, paragraph (b), on or before October 1, 2008, shall file with the commissioner of revenue a 1b homestead declaration, on a form prescribed by the commissioner. The declaration shall contain the following information:

(1) the information necessary to verify that on or before June 30 of the filing year, the property owner or the owner's spouse satisfies the requirements of section
273.13, subdivision 22
, paragraph (b), for 1b classification; and

(2) any additional information prescribed by the commissioner.

The declaration must be filed on or before October 1 to be effective for property taxes payable during the succeeding calendar year. The declaration and any supplementary information received from the property owner pursuant to this subdivision shall be subject to chapter 270B. If approved by the commissioner, the declaration remains in effect until the property no longer qualifies under section
273.13, subdivision 22
, paragraph (b). Failure to notify the commissioner within 30 days that the property no longer qualifies under that paragraph because of a sale, change in occupancy, or change in the status or condition of an occupant shall result in the penalty provided in section
273.124, subdivision
13b, computed on the basis of the class 1b benefits for the property, and the property shall lose its current class 1b classification.

The commissioner shall provide to the assessor on or before November 1 a listing of the parcels of property qualifying for 1b classification.

273.1385 AID FOR PUBLIC EMPLOYEES RETIREMENT ASSOCIATION EMPLOYER CONTRIBUTION RATE INCREASE.

Subdivision 1.

Aid to offset rate increase.

Beginning with the December 26, 1997, payment, and according to the schedule for payment of local aid under section
477A.015
thereafter, the commissioner of revenue shall pay to each city, county, town, and other nonschool jurisdiction an amount equal to 0.35 percent of the fiscal year 1997 payroll for employees who were members of the general plan of the Public Employees Retirement Association. Except for the December 1997 distribution under this section, the amount of aid must be certified before September 1 of the year preceding the distribution year to the affected local government. The executive director of the Public Employees Retirement Association shall certify the general plan fiscal year covered payroll and other information requested by the commissioner of revenue, on or before August 1, 1997, and in subsequent years where necessary, in order to facilitate administration of this section. The amount necessary to make these aid payments is appropriated annually from the general fund to the commissioner of revenue. Expenditures under this section are estimated to be $7,942,500 in fiscal year 1998, and $15,885,000 in each subsequent fiscal year, less any future reductions under subdivision 2.

Subd. 2.

Limit on aid and potential future permanent aid reductions.

(a) The aid amount received by any jurisdiction in fiscal year 2000 or any year thereafter may not exceed the amount it received in fiscal year 1999. The commissioner may, from time to time, request the most recent fiscal year payroll information by jurisdiction to be certified by the executive director of the Public Employees Retirement Association. For any jurisdiction where newly certified public employees retirement association general plan payroll is significantly lower than the fiscal 1997 amount, as determined by the commissioner, the commissioner shall recalculate the aid amount based on the most recent fiscal year payroll information, certify the recalculated aid amount for the next distribution year, and permanently reduce the aid amount to that jurisdiction.

(b) Aid to a jurisdiction must not be reduced under this section due to a transfer of an employee from the general plan of the Public Employees Retirement Association to the local government correctional service plan administered by the Public Employees Retirement Association. The executive director of the Public Employees Retirement Association must provide the commissioner of revenue with any information requested by the commissioner to administer this paragraph.

Subd. 3.

Effect of reorganizations.

The commissioner of revenue may adjust the aid amounts for separate jurisdictions to account for significant changes in boundaries or in the form of government, as determined by the commissioner. If a local government function and the associated Public Employees Retirement Association general plan payroll is assumed by either the state, or a nonpublic organization, the aid amounts attributable to the function under this section must terminate.

Subd. 4.

Aid termination.

The aid provided under this section terminates on June 30, 2020.

273.25 LISTS TO BE VERIFIED.

Every person required to list property for taxation shall make out and deliver to the assessor, upon blanks furnished by the assessor, a verified statement of all personal property owned on January 2 of the current year. The person shall also make separate statements in like manner of all personal property possessed or controlled by the person and required by this chapter to be listed for taxation as agent or attorney, guardian, parent, trustee, executor, administrator, receiver, accounting officer, partner, factor, or in any other capacity; but no person shall be required to include in the statement any share of the capital stock of any company or corporation which it is required to list and return as its capital and property for taxation in this state.

273.65 FAILURE TO LIST; EXAMINATION UNDER OATH; DUTIES OF ASSESSOR.

When the assessor shall be of opinion that the person listing property for that person, or for any other person, company, or corporation, has not made a full, fair, and complete list thereof, the assessor may examine such person, under oath, in regard to the amount of the property required to be listed; and, if such person shall refuse to make full discovery under oath, the assessor may list the property of such person, or the person's principal, according to the assessor's best judgment and information.

273.66 OWNER ABSENT OR SICK.

If any person required to list property be sick or absent when the assessor calls for a list thereof, the assessor shall leave at the office or usual place of residence or business of such person a written or printed notice requiring such person to make out and leave at a place, and on or before a day named therein, the statement or list required by this chapter. The date of leaving such notice, and the name of the person so required to list, shall be noted by the assessor in the assessment book.

273.67 PROCEDURE WHEN OWNER DOES NOT LIST OR IS NOT SWORN.

When any person whose duty it is to list shall refuse or neglect to list personal property when called on by the assessor, or to take and subscribe the required oath in regard to the truth of a statement, or any part thereof, the assessor shall enter opposite the name of such person, in an appropriate column, the words "refused to list," or "refused to swear," as the case may be; and when any person whose duty it is to list is absent, or unable from sickness to list, the assessor shall enter opposite the name of such person, in an appropriate column, the word "absent" or "sick." The assessor may administer oaths to all persons who by this chapter are required to swear, or whom the assessor may require to testify, and may examine, upon oath, any person supposed to have knowledge of the amount or value of the personal property of any person refusing to list or to verify a list of personal property.

274.07 LIST BY PERSON SICK OR ABSENT.

If any person required to list property for taxation is prevented by sickness or absence from listing it with the assessor, the person, or the person's agent in charge of the property, may give the auditor a statement of the property value as required by this chapter at any time before the taxes are extended by the county auditor. The auditor shall list the property and correct the corresponding items in the return made by the assessor. No statement may be received from any person who refused or neglected to attest to the statement when required by the assessor. No statement may be received from any person, unless the person makes and files with it an affidavit of absence from the town or district without design to avoid the listing of the property, or was prevented by sickness from giving the assessor the required statement when asked to do so.

289A.12 FILING REQUIREMENTS FOR INFORMATION RETURNS AND REPORTS.

Subd. 15.

Report of job opportunity zone benefits; penalty for failure to file report.

(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.

(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 employment and economic development and the appropriate job opportunity subzone administrator whenever notice is sent to a business under this paragraph.

(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
.

290.06 RATES OF TAX; CREDITS.

Subd. 29.

Job opportunity building zone job credit.

A taxpayer that is a qualified business, as defined in section
469.310, subdivision 11
, is allowed a credit as determined under section
469.318
against the tax imposed by this chapter.

297A.68 BUSINESS EXEMPTIONS.

Subd. 37.

Job opportunity building zones.

(a) Purchases of tangible personal property or taxable services by a qualified business, as defined in section
469.310
, are exempt if the property or services are primarily used or consumed in a job opportunity building zone designated under section
469.314
. For purposes of this subdivision, an aerial camera package, including any camera, computer, and navigation device contained in the package, that is used in an aircraft that is operated under a Federal Aviation Administration Restricted Airworthiness Certificate according to Code of Federal Regulations, title 14, part 21, section 21.25(b)(3), relating to aerial surveying, and that is based, maintained, and dispatched from a job opportunity building zone, qualifies as primarily used or consumed in a job opportunity building zone if the imagery acquired from the aerial camera package is returned to the job opportunity building zone for processing. The exemption for an aerial camera package is limited as provided in this subdivision and 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
. The total amount of the aerial camera package exemption refunded for all taxpayers for all fiscal years is limited to $50,000 in taxes.

(b) Purchase and use of construction materials and supplies used or consumed in, and equipment incorporated into, the construction of improvements to real property in a job opportunity building zone are exempt if the improvements after completion of construction are to be used in the conduct of a qualified business, as defined in section
469.310
. This exemption applies regardless of whether the purchases are made by the business or a contractor.

(c) The exemptions under this subdivision apply to a local sales and use tax regardless of whether the local sales tax is imposed on the sales taxable as defined under this chapter.

(d) This subdivision applies to sales, if the purchase was made and delivery received during the duration of the zone.

(e) Notwithstanding the restriction in paragraph (a), which requires items purchased to be primarily used or consumed in the zone, purchases by a qualified business that is an electrical cooperative located in Meeker County of equipment and materials used for the generation, transmission, and distribution of electrical energy are exempt under this subdivision, except that:

(1) the exemption for materials and equipment used or consumed outside the zone must not exceed $200,000 in taxes for all taxpayers for all fiscal years; and

(2) no sales and use tax exemption is allowed for equipment purchased for resale.

For purposes of this paragraph, 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
.

428B.02 ESTABLISHMENT OF TOURISM IMPROVEMENT DISTRICT.

Subd. 7.

Notice to the commissioner of revenue.

Within 30 days of adoption of the ordinance, the governing body must send a copy of the ordinance to the commissioner of revenue.

469.310 DEFINITIONS.

Subdivision 1.

Scope.

For purposes of sections
469.310
to
469.320
, the following terms have the meanings given.

Subd. 2.

Agricultural processing facility.

"Agricultural processing facility" means one or more facilities or operations that transform, package, sort, or grade livestock or livestock products, agricultural commodities, or plants or plant products into goods that are used for intermediate or final consumption including goods for nonfood use, and surrounding property.

Subd. 3.

Applicant.

"Applicant" means a local government unit or units applying for designation of an area as a job opportunity building zone or a joint powers board, established under section
471.59
, acting on behalf of two or more local government units.

Subd. 4.

Commissioner.

"Commissioner" means the commissioner of employment and economic development.

Subd. 4a.

Create automotive recovery zone.

"Create automotive recovery zone" means a zone designated by the commissioner under section
469.314
that contains a motor vehicle assembly facility.

Subd. 5.

Development plan.

"Development plan" means a plan meeting the requirements of section
469.311
.

Subd. 6.

Job opportunity building zone or zone.

"Job opportunity building zone" or "zone" means a zone designated by the commissioner under section
469.314
, and includes an agricultural processing facility zone and a create automotive recovery zone.

Subd. 7.

Job opportunity building zone percentage or zone percentage.

"Job opportunity building zone percentage" or "zone percentage" means the following fraction reduced to a percentage:

(1) the numerator of the fraction is:

(i) the ratio of the taxpayer's property factor under section
290.191
located in the zone for the taxable year over the property factor numerator determined under section
290.191
, plus

(ii) the ratio of the taxpayer's job opportunity building zone payroll factor under subdivision 8 over the payroll factor numerator determined under section
290.191
; and

(2) the denominator of the fraction is two.

When calculating the zone percentage for a business that is part of a unitary business as defined under section
290.17, subdivision 4
, the denominator of the payroll and property factors is the Minnesota payroll and property of the unitary business as reported on the combined report under section
290.17, subdivision 4
, paragraph (h).

Subd. 8.

Job opportunity building zone payroll factor.

"Job opportunity building zone payroll factor" or "job opportunity building zone payroll" is that portion of the payroll factor under section
290.191
that represents:

(1) wages or salaries paid to an individual for services performed in a job opportunity building zone; or

(2) wages or salaries paid to individuals working from offices within a job opportunity building zone if their employment requires them to work outside the zone and the work is incidental to the work performed by the individual within the zone.

Subd. 9.

Local government unit.

"Local government unit" means a statutory or home rule charter city, county, town, the Department of Iron Range Resources and Rehabilitation, regional development commission, or a federally designated economic development district.

Subd. 10.

Person.

"Person" includes an individual, corporation, partnership, limited liability company, association, or any other entity.

Subd. 11.

Qualified business.

(a) A person carrying on a trade or business at a place of business located within a job opportunity building zone is a qualified business for the purposes of sections
469.310
to
469.320
according to the criteria in paragraphs (b) to (f).

(b) A person is a qualified business only on those parcels of land for which the person has entered into a business subsidy agreement, as required under section
469.313
, with the appropriate local government unit in which the parcels are located.

(c) Prior to execution of the business subsidy agreement, the local government unit must consider the following factors:

(1) how wages compare to the regional industry average;

(2) the number of jobs that will be provided relative to overall employment in the community;

(3) the economic outlook for the industry the business will engage in;

(4) sales that will be generated from outside the state of Minnesota;

(5) how the business will build on existing regional strengths or diversify the regional economy;

(6) how the business will increase capital investment in the zone; and

(7) any other criteria the commissioner deems necessary.

(d) A person that relocates a trade or business from outside a job opportunity building zone into a zone is not a qualified business unless the business meets all of the requirements of paragraphs (b) and (c) and:

(1) increases full-time employment in the first full year of operation within the job opportunity building zone by a minimum of five jobs or 20 percent, whichever is greater, measured relative to the operations that were relocated and maintains the required level of employment for each year the zone designation applies; and

(2) enters a binding written agreement with the commissioner that:

(i) pledges the business will meet the requirements of clause (1);

(ii) provides for repayment of all tax benefits enumerated under section
469.315
to the business under the procedures in section
469.319
, if the requirements of clause (1) are not met for the taxable year or for taxes payable during the year in which the requirements were not met; and

(iii) contains any other terms the commissioner determines appropriate.

(e) The commissioner may waive the requirements under paragraph (d), clause (1), if the commissioner determines that the qualified business will substantially achieve the factors under this subdivision.

(f) A business is not a qualified business if, at its location or locations in the zone, the business is primarily engaged in making retail sales to purchasers who are physically present at the business's zone location.

(g) A qualifying business must pay each employee compensation, including benefits not mandated by law, that on an annualized basis is equal to at least 110 percent of the federal poverty level for a family of four.

(h) A public utility, as defined in section
336B.01
, is not a qualified business.

(i) A business operating in a create automotive recovery zone is a qualified business only if it engages in the assembly of motor vehicles at the zone location.

Subd. 12.

Relocates.

(a) "Relocates" means that the trade or business:

(1) ceases one or more operations or functions at another location in Minnesota and begins performing substantially the same operations or functions at a location in a job opportunity building zone; or

(2) reduces employment at another location in Minnesota during a period starting one year before and ending one year after it begins operations in a job opportunity building zone and its employees in the job opportunity building zone are engaged in the same line of business as the employees at the location where it reduced employment.

(b) "Relocate" does not include an expansion by a business that establishes a new facility that does not replace or supplant an existing operation or employment, in whole or in part.

(c) "Trade or business" includes any business entity that is substantially similar in operation or ownership to the business entity seeking to be a qualified business under this section.

Subd. 13.

Relocation payroll percentage.

"Relocation payroll percentage" is a fraction, the numerator of which is the zone payroll of the business for the tax year minus the payroll from the relocated operations in the last full year of operations prior to the relocation, and the denominator of which is the zone payroll of the business for the tax year. The relocation payroll percentage of a business that is not a relocating business is 100 percent.

Subd. 14.

Motor vehicle assembly facility.

"Motor vehicle assembly facility" means a manufacturing facility with at least 500 employees that is used to assemble motor vehicles and is located in a city of the first class.

469.311 DEVELOPMENT PLAN.

(a) An applicant for designation of a job opportunity building zone must adopt a written development plan for the zone before submitting the application to the commissioner.

(b) The development plan must contain, at least, the following:

(1) a map of the proposed zone that indicates the geographic boundaries of the zone, the total area, and present use and conditions generally of the land and structures within those boundaries;

(2) evidence of community support and commitment from local government, local workforce investment boards, school districts, and other education institutions, business groups, and the public;

(3) a description of the methods proposed to increase economic opportunity and expansion, facilitate infrastructure improvement, reduce the local regulatory burden, and identify job-training opportunities;

(4) current social, economic, and demographic characteristics of the proposed zone and anticipated improvements in education, health, human services, and employment if the zone is created;

(5) a description of anticipated activity in the zone and each subzone, including, but not limited to, industrial use, industrial site reuse, commercial or retail use, and residential use; and

(6) any other information required by the commissioner.

469.312 JOB OPPORTUNITY BUILDING ZONES; LIMITATIONS.

Subdivision 1.

Maximum size.

A job opportunity building zone may not exceed 5,000 acres. For a zone designated as an agricultural processing facility zone, the zone also may not exceed the size of a site necessary for the agricultural processing facility, including ancillary operations and space for expansion in the reasonably foreseeable future. For a zone designated as a create automotive recovery zone, the zone also may not exceed the size of the site necessary for the assembly of motor vehicles, including ancillary operations and space for expansion in the reasonably foreseeable future.

Subd. 2.

Subzones.

The area of a job opportunity building zone may consist of one or more noncontiguous areas or subzones.

Subd. 3.

Outside metropolitan area.

Except for a create automotive recovery zone, the area of a job opportunity building zone must be located outside of the metropolitan area, as defined in section
473.121, subdivision 2
.

Subd. 4.

Border city development zones.

(a) The area of a job opportunity building zone may not include the area of a border city development zone designated under section
469.1731
. The city may remove property from a border city development zone contingent upon the area being designated as a job opportunity building zone. Before removing a parcel of property from a border city development zone, the city must obtain the written consent to the removal from each recipient that is located on the parcel and receives incentives under the border city development zone. Consent of any other property owner or taxpayer in the border city development zone is not required.

(b) A city may not provide tax incentives under section
469.1734
to individuals or businesses for operations or activity in a job opportunity building zone.

Subd. 5.

Duration limit.

(a) The maximum duration of a zone is 12 years. The applicant may request a shorter duration. The commissioner may specify a shorter duration, regardless of the requested duration.

(b) The duration limit under this subdivision and the duration of the zone for purposes of allowance of tax incentives described in section
469.315
is extended by three calendar years for each parcel of property that meets the following requirements:

(1) the qualified business operates an ethanol plant, as defined in section
41A.09
, on the site that includes the parcel; and

(2) the business subsidy agreement was executed after April 30, 2006.

(c) The duration limit under this subdivision and the duration of the zone for purposes of allowance of tax incentives described in section
469.315
is extended by five calendar years for each parcel of property that meets the following requirements:

(1) the parcel is located in a county with an unemployment rate that on the date that the business subsidy agreement is executed (i) equals or exceeds ten percent or (ii) is ten percent higher than the statewide average;

(2) the operations of the qualified business on the site include:

(i) its headquarters;

(ii) facilities for research and development; and

(iii) the manufacturing of products, used by the building, transport, consumer products, and industrial products sectors, that reduce the use of or increase the efficiency of the use of energy resources and that are manufactured using innovative and high technology processes; and

(3) the business subsidy agreement is executed after July 1, 2009, and before July 1, 2011.

(d) The duration of a create automotive recovery zone is 12 years from the date of the designation of a zone by the commissioner under section
469.314, subdivision 4
, paragraph (g).

(e) The duration limit under this subdivision and the duration of the zone for purposes of allowance of tax incentives described in section
469.315
is extended by five calendar years for each parcel of property that meets the following requirements:

(1) the parcel is located in a county with an unemployment rate for any of the 12 months preceding the date on which the business subsidy agreement is executed that (i) equals or exceeds ten percent or (ii) is ten percent higher than the statewide average;

(2) the qualified business is engaged in the business of manufacturing wind turbines and related products for the generation of energy, and the parcel includes one or more of the following facilities of the qualified business:

(i) the headquarters of the business in this country;

(ii) training facilities; or

(iii) manufacturing facilities; and

(3) the initial business subsidy agreement is executed after July 1, 2010, and before November 1, 2011.

469.313 APPLICATION FOR DESIGNATION.

Subdivision 1.

Who may apply.

One or more local government units, or a joint powers board under section
471.59
, acting on behalf of two or more units, may apply for designation of an area as a job opportunity building zone. All or part of the area proposed for designation as a zone must be located within the boundaries of each of the governmental units. A local government unit may not submit or have submitted on its behalf more than one application for designation of a job opportunity building zone.

Subd. 2.

Application content.

The application must include:

(1) a development plan meeting the requirements of section
469.311
;

(2) the proposed duration of the zone, not to exceed 12 years;

(3) a resolution or ordinance adopted by each of the cities or towns and the counties in which the zone is located, agreeing to provide all of the local tax exemptions provided under section
469.315
;

(4) if the proposed zone includes area in a border city development zone, written consent to removal of the property from the border city development zone to the extent required by section
469.312, subdivision 4
;

(5) an agreement by the applicant to treat incentives provided under the zone designation as business subsidies under sections
116J.993
to
116J.995
and to comply with the requirements of that law; and

(6) supporting evidence to allow the commissioner to evaluate the application under the criteria in section
469.314
.

469.314 DESIGNATION OF JOB OPPORTUNITY BUILDING ZONES.

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 and not more than one create automotive recovery zone. 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.

Subd. 2.

Need indicators.

(a) In evaluating applications to determine the need for designation of a job opportunity building zone, the commissioner shall consider the following factors as indicators of need:

(1) the percentage of the population that is below 200 percent of the poverty rate, compared with the state as a whole;

(2) the extent to which the area's average weekly wage is significantly lower than the state average weekly wage;

(3) the amount of property in or near the proposed zone that is deteriorated or underutilized;

(4) the extent to which the median sale price of housing units in the area is below the state median;

(5) the extent to which the median household income of the area is lower than the state median household income;

(6) the extent to which the area experienced a population loss during the 20-year period ending the year before the application is made;

(7) the extent to which an area has experienced sudden or severe job loss as a result of closing of businesses or other employers;

(8) the extent to which property in the area would remain underdeveloped or nonperforming due to physical characteristics;

(9) the extent to which the area has substantial real property with adequate infrastructure and energy to support new or expanded development; and

(10) the extent to which the business startup or expansion rates are significantly lower than the respective rate for the state.

(b) In applying the need indicators, the best available data should be used. If reported data are not available for the proposed zone, data for the smallest area that is available and includes the area of the proposed zone may be used. The commissioner may require applicants to provide data to demonstrate how the area meets one or more of the indicators of need.

Subd. 3.

Success indicators.

In determining the likelihood of success of a proposed zone, the commissioner shall consider:

(1) the strength and viability of the proposed development goals, objectives, and strategies in the development plan;

(2) whether the development plan is creative and innovative in comparison to other applications;

(3) local public and private commitment to development of the proposed zone and the potential cooperation of surrounding communities;

(4) existing resources available to the proposed zone;

(5) how the designation of the zone would relate to other economic and community development projects and to regional initiatives or programs;

(6) how the regulatory burden will be eased for businesses operating in the proposed zone;

(7) proposals to establish and link job creation and job training; and

(8) the extent to which the development is directed at encouraging and that designation of the zone is likely to result in the creation of high-paying jobs.

Subd. 4.

Designation schedule.

(a) The schedule in paragraphs (b) to (f) applies to the designation of job opportunity building zones. Paragraph (g) applies to the designation of a create automotive recovery zone.

(b) The commissioner shall publish the form for applications and any procedural, form, or content requirements for applications by no later than August 1, 2003. The commissioner may publish these requirements on the Internet, in the State Register, or by any other means the commissioner determines appropriate to disseminate the information to potential applicants for designation.

(c) Applications must be submitted by October 15, 2003.

(d) The commissioner shall designate the zones by no later than December 31, 2003.

(e) The designation of the zones takes effect January 1, 2004.

(f) The commissioner may reserve one or more of the ten authorized zones for a second round of designations in calendar year 2004. If the commissioner chooses to reserve designations for this purpose, the commissioner shall establish the schedule for the second round of designations, notwithstanding the dates in paragraphs (c), (d), and (e). The commissioner shall allow a period of at least 90 days for submission of applications after notification of the second round. A zone designated in the second round takes effect on January 1, 2005.

(g) The commissioner may accept applications for a create automotive recovery zone at any time before January 1, 2016. The commissioner may designate a create automotive recovery zone at any time after December 31, 2011, and before January 1, 2016, but only if the applicant has entered a written agreement with a qualified business committing to make a capital investment of at least $100,000,000 to improve or retrofit a motor vehicle assembly facility located in the zone.

Subd. 5.

Geographic distribution.

The commissioner shall have as a goal the geographic distribution of zones around the state.

Subd. 6.

Rulemaking exemption.

The commissioner's actions in establishing procedures, requirements, and making determinations to administer sections
469.310
to
469.320
are not a rule for purposes of chapter 14 and are not subject to the Administrative Procedure Act contained in chapter 14 and are not subject to section
14.386
.

469.315 TAX INCENTIVES AVAILABLE IN ZONES.

Qualified businesses that operate in a job opportunity building zone, individuals who invest in a qualified business that operates in a job opportunity building zone, and property located in a job opportunity building zone qualify for:

(1) exemption from individual income taxes as provided under section
469.316
;

(2) exemption from corporate franchise taxes as provided under section
469.317
;

(3) exemption from the state sales and use tax and any local sales and use taxes on qualifying purchases as provided in section
297A.68, subdivision 37
;

(4) exemption from the state sales tax on motor vehicles and any local sales tax on motor vehicles as provided under section
297B.03
;

(5) exemption from the property tax as provided in section
272.02, subdivision 64
;

(6) exemption from the wind energy production tax under section
272.029, subdivision 7
; and

(7) the jobs credit allowed under section
469.318
, except that a qualified business located in a create automotive recovery zone is not eligible for the credit under section
469.318
but is eligible for the credit under section
469.3181
.

469.316 INDIVIDUAL INCOME TAX EXEMPTION.

Subdivision 1.

Application.

An individual, estate, or trust operating a trade or business in a job opportunity building zone, and an individual, estate, or trust making a qualifying investment in a qualified business operating in a job opportunity building zone qualifies for the exemptions from taxes imposed under chapter 290, as provided in this section. The exemptions provided under this section apply only to the extent that the income otherwise would be taxable under chapter 290. Subtractions under this section from federal adjusted gross income, federal taxable income, alternative minimum taxable income, or any other base subject to tax are limited to the amount that otherwise would be included in the tax base absent the exemption under this section. This section applies only to taxable years beginning during the duration of the job opportunity building zone.

Subd. 2.

Rents.

An individual, estate, or trust is exempt from the taxes imposed under chapter 290 on net rents derived from real or tangible personal property used by a qualified business and located in a zone for a taxable year in which the zone was designated a job opportunity building zone. If tangible personal property was used both within and outside of the zone by the qualified business, the exemption amount for the net rental income must be multiplied by a fraction, the numerator of which is the number of days the property was used in the zone and the denominator of which is the total days the property is rented by the qualified business.

Subd. 3.

Business income.

An individual, estate, or trust is exempt from the taxes imposed under chapter 290 on net income from the operation of a qualified business in a job opportunity building zone. If the trade or business is carried on within and without the zone and the individual is not a resident of Minnesota, or the taxpayer is an estate or trust, the exemption must be apportioned based on the zone percentage and the relocation payroll percentage for the taxable year. If the trade or business is carried on within and without the zone and the individual is a resident of Minnesota, the exemption must be apportioned based on the zone percentage and the relocation payroll percentage for the taxable year, except the ratios under section
469.310, subdivision 7
, clause (1), items (i) and (ii), must use the denominators of the property and payroll factors determined under section
290.191
. No subtraction is allowed under this section in excess of 20 percent of the sum of the job opportunity building zone payroll and the adjusted basis of the property at the time that the property is first used in the job opportunity building zone by the business.

Subd. 4.

Capital gains.

(a) An individual, estate, or trust is exempt from the taxes imposed under chapter 290 on:

(1) net gain derived on a sale or exchange of real property located in the zone and used by a qualified business. If the property was held by the individual, estate, or trust during a period when the zone was not designated, the gain must be prorated based on the percentage of time, measured in calendar days, that the real property was held by the individual, estate, or trust during the period the zone designation was in effect to the total period of time the real property was held by the individual;

(2) net gain derived on a sale or exchange of tangible personal property used by a qualified business in the zone. If the property was held by the individual, estate, or trust during a period when the zone was not designated, the gain must be prorated based on the percentage of time, measured in calendar days, that the property was held by the individual, estate, or trust during the period the zone designation was in effect to the total period of time the property was held by the individual. If the tangible personal property was used outside of the zone during the period of the zone's designation, the exemption must be multiplied by a fraction, the numerator of which is the number of days the property was used in the zone during the time of the designation and the denominator of which is the total days the property was held during the time of the designation; and

(3) net gain derived on a sale of an ownership interest in a qualified business operating in the job opportunity building zone, meeting the requirements of paragraph (b). The exemption on the gain must be multiplied by the zone percentage of the business for the taxable year prior to the sale.

(b) A qualified business meets the requirements of paragraph (a), clause (3), if it is a corporation, an S corporation, or a partnership, and for the taxable year its job opportunity building zone percentage exceeds 25 percent. For purposes of paragraph (a), clause (3), the zone percentage must be calculated by modifying the ratios under section
469.310, subdivision 7
, clause (1), items (i) and (ii), to use the denominators of the property and payroll factors determined under section
290.191
. Upon the request of an individual, estate, or trust holding an ownership interest in the entity, the entity must certify to the owner, in writing, the job opportunity building zone percentage needed to determine the exemption.

469.317 CORPORATE FRANCHISE TAX EXEMPTION.

(a) A qualified business is exempt from taxation under section
290.02
, the alternative minimum tax under section
290.0921
, and the minimum fee under section
290.0922
, on the portion of its income attributable to operations within the zone. This exemption is determined as follows:

(1) for purposes of the tax imposed under section
290.02
, by multiplying its taxable net income by its zone percentage and by its relocation payroll percentage and subtracting the result in determining taxable income;

(2) for purposes of the alternative minimum tax under section
290.0921
, by multiplying its alternative minimum taxable income by its zone percentage and by its relocation payroll percentage and reducing alternative minimum taxable income by this amount; and

(3) for purposes of the minimum fee under section
290.0922
, by excluding property and payroll in the zone from the computations of the fee or by exempting the entity under section
290.0922, subdivision 2
, clause (7).

(b) No subtraction is allowed under this section in excess of 20 percent of the sum of the corporation's job opportunity building zone payroll and the adjusted basis of the property at the time that the property is first used in the job opportunity building zone by the corporation.

(c) This section applies only to taxable years beginning during the duration of the job opportunity building zone.

469.318 JOBS CREDIT.

Subdivision 1.

Credit allowed.

A qualified business is allowed a credit against the taxes imposed under chapter 290. The credit equals seven percent of the:

(1) lesser of:

(i) zone payroll for the taxable year, less the zone payroll for the base year; or

(ii) total Minnesota payroll for the taxable year, less total Minnesota payroll for the base year; minus

(2) $30,000 multiplied by (the number of full-time equivalent employees that the qualified business employs in the job opportunity building zone for the taxable year, minus the number of full-time equivalent employees the business employed in the zone in the base year, but not less than zero).

Subd. 2.

Definitions.

(a) For purposes of this section, the following terms have the meanings given.

(b) "Base year" means the taxable year beginning during the calendar year prior to the calendar year in which the zone designation took effect.

(c) "Full-time equivalent employees" means the equivalent of annualized expected hours of work equal to 2,080 hours.

(d) "Minnesota payroll" means the wages or salaries attributed to Minnesota under section
290.191, subdivision 12
, for the qualified business or the unitary business of which the qualified business is a part, whichever is greater.

(e) "Zone payroll" means wages or salaries used to determine the zone payroll factor for the qualified business, less the amount of compensation attributable to any employee that exceeds $100,000.

Subd. 3.

Inflation adjustment.

For taxable years beginning after December 31, 2004, the dollar amounts in subdivision 1, clause (2), and subdivision 2, paragraph (e), are annually adjusted for inflation. The commissioner of revenue shall adjust the amounts by the percentage determined under section
290.06, subdivision 2d
, for the taxable year.

Subd. 4.

Refundable.

If the amount of the credit exceeds the liability for tax under chapter 290, the commissioner of revenue shall refund the excess to the qualified business.

Subd. 5.

Appropriation.

An amount sufficient to pay the refunds authorized by this section is appropriated to the commissioner of revenue from the general fund.

469.3181 CREATE AUTOMOTIVE RECOVERY JOBS CREDIT.

Subdivision 1.

Credit allowed.

(a) A qualified business located in a create automotive recovery zone is allowed a credit against the tax imposed under chapter 290 equal to $2,500 times the number of full-time equivalent employees receiving wages from the qualified business for working at the facility during the taxable year. The qualified business is allowed an additional credit equal to $1,000 times the number of full-time equivalent employees receiving wages from the qualified business for working at the facility during the taxable year in excess of 750 employees.

(b) For purposes of this section, "employee" and "wages" have the meanings given them in section
290.92, subdivisions 1
and 3.

(c) For purposes of this section, "full-time equivalent employees" means the equivalent of annualized expected hours of work equal to 2,080 hours.

Subd. 2.

Refundable.

If the amount of the credit exceeds the liability for tax under chapter 290, the commissioner of revenue shall refund the excess to the qualified business.

Subd. 3.

Appropriation.

An amount sufficient to pay the refunds authorized by this section is appropriated to the commissioner of revenue from the general fund.

Subd. 4.

Manner of claiming credit.

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.

469.319 REPAYMENT OF TAX BENEFITS BY BUSINESSES THAT NO LONGER OPERATE IN A ZONE.

Subdivision 1.

Repayment obligation.

A business must repay the total tax benefits listed in section
469.315
received during the two years immediately before it (1) ceased to perform a substantial level of activities described in the business subsidy agreement, or (2) otherwise ceased to be a qualified business, other than those subject to the provisions of section
469.3191
.

Subd. 1a.

Repayment obligation of businesses not operating in zone.

Persons that receive benefits without operating a business in a zone are subject to repayment under this section if the business for which those benefits relate is subject to repayment under this section. Such persons are deemed to have ceased performing in the zone on the same day that the qualified business for which the benefits relate becomes subject to repayment under subdivision 1.

Subd. 2.

Definitions.

(a) For purposes of this section, the following terms have the meanings given.

(b) "Business" means any person that received tax benefits enumerated in section
469.315
.

(c) "Commissioner" means the commissioner of revenue.

(d) "Persons that receive benefits without operating a business in a zone" means persons that claim benefits under section
469.316, subdivision 2
or 4, as well as persons that own property leased by a qualified business and are eligible for benefits under section
272.02, subdivision 64
, or
297A.68, subdivision 37
, paragraph (b).

Subd. 3.

Disposition of repayment.

The repayment must be paid to the state to the extent it represents a state tax reduction and to the county to the extent it represents a property tax reduction. Any amount repaid to the state must be deposited in the general fund. Any amount repaid to the county for the property tax exemption must be distributed to the taxing authorities with authority to levy taxes in the zone in the same manner provided for distribution of payment of delinquent property taxes. Any repayment of local sales taxes must be repaid to the commissioner for distribution to the city or county imposing the local sales tax.

Subd. 4.

Repayment procedures.

(a) For the repayment of taxes imposed under chapter 290 or 297A or local taxes collected pursuant to section
297A.99
, a business must file an amended return with the commissioner of revenue and pay any taxes required to be repaid within 30 days after becoming subject to repayment under this section. The amount required to be repaid is determined by calculating the tax for the period or periods for which repayment is required without regard to the exemptions and credits allowed under section
469.315
.

(b) For the repayment of taxes imposed under chapter 297B, a business must pay any taxes required to be repaid to the motor vehicle registrar, as agent for the commissioner of revenue, within 30 days after becoming subject to repayment under this section.

(c) For the repayment of property taxes, the county auditor shall prepare a tax statement for the business, applying the applicable tax extension rates for each payable year and provide a copy to the business and to the taxpayer of record. The business must pay the taxes to the county treasurer within 30 days after receipt of the tax statement. The business or the taxpayer of record may appeal the valuation and determination of the property tax to the Tax Court within 30 days after receipt of the tax statement.

(d) The provisions of chapters 270C and 289A relating to the commissioner's authority to audit, assess, and collect the tax and to hear appeals are applicable to the repayment required under paragraphs (a) and (b). The commissioner may impose civil penalties as provided in chapter 289A, and the additional tax and penalties are subject to interest at the rate provided in section
270C.40
. The additional tax shall bear interest from 30 days after becoming subject to repayment under this section until the date the tax is paid. Any penalty imposed pursuant to this section shall bear interest from the date provided in section
270C.40, subdivision 3
, to the date of payment of the penalty.

(e) If a property tax is not repaid under paragraph (c), the county treasurer shall add the amount required to be repaid to the property taxes assessed against the property for payment in the year following the year in which the auditor provided the statement under paragraph (c).

(f) For determining the tax required to be repaid, a reduction of a state or local sales or use tax is deemed to have been received on the date that the good or service was purchased or first put to a taxable use. In the case of an income tax or franchise tax, including the credit payable under section
469.318
, a reduction of tax is deemed to have been received for the two most recent tax years that have ended prior to the date that the business became subject to repayment under this section. In the case of a property tax, a reduction of tax is deemed to have been received for the taxes payable in the year that the business became subject to repayment under this section and for the taxes payable in the prior year.

(g) The commissioner may assess the repayment of taxes under paragraph (d) any time within two years after the business becomes subject to repayment under subdivision 1, or within any period of limitations for the assessment of tax under sections
289A.38
to
289A.382
, whichever period is later. The county auditor may send the statement under paragraph (c) any time within three years after the business becomes subject to repayment under subdivision 1.

(h) A business is not entitled to any income tax or franchise tax benefits, including refundable credits, for any part of the year in which the business becomes subject to repayment under this section nor for any year thereafter. Property is not exempt from tax under section
272.02, subdivision 64
, for any taxes payable in the year following the year in which the property became subject to repayment under this section nor for any year thereafter. A business is not eligible for any sales tax benefits beginning with goods or services purchased or first put to a taxable use on the day that the business becomes subject to repayment under this section.

Subd. 5.

Waiver authority.

(a) The commissioner may waive all or part of a repayment required under subdivision 1, if the commissioner, in consultation with the commissioner of employment and economic development and appropriate officials from the local government units in which the qualified business is located, determines that requiring repayment of the tax is not in the best interest of the state or the local government units and the business ceased operating as a result of circumstances beyond its control including, but not limited to:

(1) a natural disaster;

(2) unforeseen industry trends; or

(3) loss of a major supplier or customer.

(b)(1) The commissioner shall waive repayment required under subdivision 1a if the commissioner has waived repayment by the operating business under subdivision 1, unless the person that received benefits without having to operate a business in the zone was a contributing factor in the qualified business becoming subject to repayment under subdivision 1;

(2) the commissioner shall waive the repayment required under subdivision 1a, even if the repayment has not been waived for the operating business if:

(i) the person that received benefits without having to operate a business in the zone and the business that operated in the zone are not related parties as defined in section 267(b) of the Internal Revenue Code of 1986, as amended through December 31, 2007; and

(ii) actions of the person were not a contributing factor in the qualified business becoming subject to repayment under subdivision 1.

(c) Requests for waiver must be made no later than 60 days after the earlier of the notice date of an order issued under subdivision 4, paragraph (d), or the date of a tax statement issued under subdivision 4, paragraph (c). For purposes of this section, "notice date" means the notice date designated by the commissioner on the order.

Subd. 6.

Reconciliation.

Where this section is inconsistent with section
116J.994, subdivision 3
, paragraph (e), or 6, or any other provisions of sections
116J.993
to
116J.995
, this section prevails.

469.3191 BREACH OF AGREEMENTS BY BUSINESSES THAT CONTINUE TO OPERATE IN ZONE.

(a) A "business in violation of its business subsidy agreement but not subject to section
469.319
" means a business that is operating in violation of the business subsidy agreement but maintains a level of operations in the zone that does not subject it to the repayment provisions of section
469.319, subdivision 1
, clause (1).

(b) A business described in paragraph (a) that does not sign a new or amended business subsidy agreement, as authorized under paragraph (h), is subject to repayment of benefits under section
469.319
from the day that it ceases to perform in the zone a substantial level of activities described in the business subsidy agreement.

(c) A business described in paragraph (a) ceases being a qualified business after the last day that it has to meet the goals stated in the agreement.

(d) A business is not entitled to any income tax or franchise tax benefits, including refundable credits, for any part of the year in which the business is no longer a qualified business under paragraph (c), and thereafter. A business is not eligible for sales tax benefits beginning with goods or services purchased or put to a taxable use on the day that it is no longer a qualified business under paragraph (c). Property is not exempt from tax under section
272.02, subdivision 64
, for any taxes payable in the year following the year in which the business is no longer a qualified business under paragraph (c), and thereafter.

(e) A business described in paragraph (a) that wants to resume eligibility for benefits under section
469.315
must request that the commissioner of employment and economic development determine the length of time that the business is ineligible for benefits. The commissioner shall determine the length of ineligibility by applying the proportionate level of performance under the agreement to the total duration of the zone as measured from the date that the business subsidy agreement was executed. The length of time must not be less than one full year for each tax benefit listed in section
469.315
. The commissioner of employment and economic development and the appropriate local government officials shall consult with the commissioner of revenue to ensure that the period of ineligibility includes at least one full year of benefits for each tax.

(f) The length of ineligibility determined under paragraph (e) must be applied by reducing the zone duration for the property by the duration of the ineligibility.

(g) The zone duration of property that has been adjusted under paragraph (f) must not be altered again to permit the business additional benefits under section
469.315
.

(h) A business described in paragraph (a) becomes eligible for benefits available under section
469.315
by entering into a new or amended business subsidy agreement with the appropriate local government unit. The new or amended agreement must cover a period beginning from the date of ineligibility under the original business subsidy agreement, through the zone duration determined by the commissioner under paragraph (f). No exemption of property taxes under section
272.02, subdivision 64
, is available under the new or amended agreement for property taxes due or paid before the date of the final execution of the new or amended agreement, but unpaid taxes due after that date need not be paid.

(i) A business that violates the terms of an agreement authorized under paragraph (h) is permanently barred from seeking benefits under section
469.315
and is subject to the repayment provisions under section
469.319
effective from the day that the business ceases to operate as a qualified business in the zone under the second agreement.

469.3192 PROHIBITION AGAINST AMENDMENTS TO BUSINESS SUBSIDY AGREEMENT.

Except as authorized under section
469.3191
, under no circumstance shall terms of any agreement required as a condition for eligibility for benefits listed under section
469.315
be amended to change job creation, job retention, or wage goals included in the agreement.

469.3193 CERTIFICATION OF CONTINUING ELIGIBILITY FOR JOBZ BENEFITS.

(a) By October 15 of each year, every qualified business must certify to the commissioner of revenue, on a form prescribed by the commissioner of revenue, whether it is in compliance with any agreement required as a condition for eligibility for benefits listed under section
469.315
. A business that fails to submit the certification, or any business, including those still operating in the zone, that submits a certification that the commissioner of revenue later determines materially misrepresents the business's compliance with the agreement, is subject to the repayment provisions under section
469.319
from January 1 of the year in which the report is due or the date that the business became subject to section
469.319
, whichever is earlier. Any such business is permanently barred from obtaining benefits under section
469.315
. For purposes of this section, the bar applies to an entity and also applies to any individuals or entities that have an ownership interest of at least 20 percent of the entity.

(b) Before the sanctions under paragraph (a) apply to a business that fails to submit the certification, the commissioner of revenue shall send notice to the business, demanding that the certification be submitted within 30 days and advising the business of the consequences for failing to do so. The commissioner of revenue shall notify the commissioner of employment and economic development and the appropriate job opportunity subzone administrator whenever notice is sent to a business under this paragraph.

(c) The certification required under this section is public.

(d) The commissioner of revenue shall promptly notify the commissioner of employment and economic development of all businesses that certify that they are not in compliance with the terms of their business subsidy agreement and all businesses that fail to file the certification.

469.320 ZONE PERFORMANCE; REMEDIES.

Subdivision 1.

Reporting requirement.

An applicant receiving designation of a job opportunity building zone under section
469.314
must annually report to the commissioner on its progress in meeting the zone performance goals under the development plan for the zone and the applicant's compliance with the business subsidy law under sections
116J.993
to
116J.995
.

Subd. 2.

Procedures.

For reports required by subdivision 1, the commissioner may prescribe:

(1) the required time or times by which the reports must be filed;

(2) the form of the report; and

(3) the information required to be included in the report.

Subd. 3.

Remedies.

If the commissioner determines, based on a report filed under subdivision 1 or other available information, that a zone or subzone is failing to meet its performance goals, the commissioner may take any actions the commissioner determines appropriate, including modification of the boundaries of the zone or a subzone or termination of the zone or a subzone. Before taking any action, the commissioner shall consult with the applicant and the affected local government units, including notifying them of the proposed actions to be taken. The applicant may appeal the commissioner's order under the contested case procedures of chapter 14.

Subd. 4.

Existing businesses.

(a) An action to remove area from a zone or to terminate a zone under this section does not apply to:

(1) the property tax on improvements constructed before the first January 2 following publication of the commissioner's order;

(2) sales tax on purchases made before the first day of the next calendar month beginning at least 30 days after publication of the commissioner's order; and

(3) individual income tax or corporate franchise tax attributable to a facility that was in operation before the publication of the commissioner's order.

(b) The tax exemptions specified in paragraph (a) terminate on the date on which the zone expires under the original designation.

469.3201 LEGISLATIVE AUDITOR; AUDITS OF JOB OPPORTUNITY BUILDING ZONES AND BUSINESS SUBSIDY AGREEMENTS.

As resources allow, the legislative auditor must audit the creation and operation of all job opportunity building zones and business subsidy agreements entered into under sections
469.310
to
469.320
. All public officials and parties to the agreements shall provide the legislative auditor with all documents and data the legislative auditor deems necessary and in all other respects comply with the requirements of section
3.978, subdivision 2
.

477A.085 DEBT SERVICE AID; CITY OF MINNEAPOLIS.

On or before November 1, 2016, and the first day of each November thereafter, the commissioner shall pay to the city of Minneapolis an amount equal to 40 percent of the city's otherwise required levy to pay its general obligation library referendum bonds for the following calendar year. The levy excludes any amount to pay bonds, other than refunding bonds, issued after May 1, 2013. An amount sufficient to pay the aid under this section is appropriated from the general fund to the commissioner of revenue.

477A.18 PRODUCTION PROPERTY TRANSITION AID.

Subdivision 1.

Definitions.

(a) When used in this section, the following terms have the meanings indicated in this subdivision.

(b) "Local unit" means a home rule charter or statutory city, or a town.

(c) "Net tax capacity differential" means the positive difference, if any, by which the local unit's net tax capacity was reduced from assessment year 2014 to assessment year 2015 due to the change in the definition of real property in section
272.03, subdivision
1, enacted by Laws 2014, chapter 308, article 2, section 9. For purposes of determining the net tax capacity differential, any property in a job opportunity building zone under section
469.314
may not be included when calculating a local unit's net tax capacity.

Subd. 2.

Aid eligibility; payment.

(a) If the net tax capacity differential of the local unit exceeds five percent of its 2015 net tax capacity, the local unit is eligible for transition aid computed under paragraphs (b) to (f).

(b) For aids payable in 2016, transition aid under this section for an eligible local unit equals (1) the net tax capacity differential, times (2) the jurisdiction's tax rate for taxes payable in 2015.

(c) For aids payable in 2017, transition aid under this section for an eligible local unit equals 80 percent of (1) the net tax capacity differential, times (2) the jurisdiction's tax rate for taxes payable in 2016.

(d) For aids payable in 2018, transition aid under this section for an eligible local unit equals 60 percent of (1) the net tax capacity differential, times (2) the jurisdiction's tax rate for taxes payable in 2017.

(e) For aids payable in 2019, transition aid under this section for an eligible local unit equals 40 percent of (1) the net tax capacity differential, times (2) the jurisdiction's tax rate for taxes payable in 2018.

(f) For aids payable in 2020, transition aid under this section for an eligible local unit equals 20 percent of (1) the net tax capacity differential, times (2) the jurisdiction's tax rate for taxes payable in 2019.

(g) No aids shall be payable under this section in 2021 and thereafter.

(h) The commissioner of revenue shall compute the amount of transition aid payable to each local unit under this section. On or before August 1 of each year, the commissioner shall certify the amount of transition aid computed for aids payable in the following year for each recipient local unit. The commissioner shall pay transition aid to local units annually at the times provided in section
477A.015
.

(i) The commissioner of revenue may require counties to provide any data that the commissioner deems necessary to administer this section.

Subd. 3.

Appropriation.

An amount sufficient to pay transition aid under this section is annually appropriated to the commissioner of revenue from the general fund.

477A.30 LOCAL HOMELESS PREVENTION AID.

Subd. 8.

Expiration.

Distributions under this section expire after aids payable in 2028 have been distributed.