2009 Regular Session, Omnibus Tax Bill Conference Committee Report Comparison for HF 2323 and SF 2074 (Dollars in Thousands)

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1 /7/009, :10 PM General Fund Summary Gov. Gov. Senate Senate Senate Senate Senate Senate House House House House House House FY10-11 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 Forecasted Taxes, Aids & Credits Base $,,9 $,9,7 $,,9 $,9,7 $,,9 $,9,7 Total General Fund Expenditure Changes (9,06) (60,97) 10,000 (,1) (,1) (,167) (,796) (68,96) (7,189) (198,91) (7,780) (18,0) (18,6) (67,96) Total General Fund Revenue Changes (97,910) (,780) 1,98,60 1,198,089,96,719 1,86,19 1,06,8,69,991 69, 80,67 1,, ,00 91, 1,89,7 Grand Total = Revenue - Expenditures 1,96 169,19 1,88,60 1,,0,61,9 1,19,16 1,,68,761,9 767,7 1,09,18 1,796,91 1,070,0 1,16,908,06,9 Conference Committee Target Amount Above Target/(Amount Short from Target) Total - Non General Fund (1,87) (1,666) (,9) (809) (,0) ,6 8,88 6,010,8,9 70,811 Budget Reserve Budget Reserve - base funding 0 0, , ,000 Transfer to Budget Reserve 0, , , Reserve for Job Creation Activities in SF078 16, ,081 Total - Budget Reserve 0,000 0,000 16, ,081 0, ,000 0, ,000 For General Fund expenditure changes, negative numbers represent revenue gains or spending reductions For General Fund revenue changes and Grand Total, negative numbers represent revenue reductions or expenditures. House and Senate Fiscal Analysts H:\Excel\009 Session\joint ss 1 09_v.xls 1

2 /7/009,:10 PM General Fund Tax Revenue Changes Gov Gov Senate Senate Senate Senate Senate Senate House House House House House House SF# Author HF Author 'Note: Positive numbers reflect revenue gains, negative numbers reflect revenue reductions FY10-11 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 Federal Conformity Chapter 1, 009 Session Laws (HF 9) Includes Selected Provisions in The Heroes Earnings Assistance Tax Act, The Heartland, Habitat, Harvest and Horticulture Act, The Housing Assistance Tax Act, Emergency Economic Stabilization Act 07 Bakk Lenczews American Recovery and Reinvestment Act (ARRA) of 009 Individual Income Tax Provisions (6,190) 7,0 [,8] [,10] [9,69] [,70] [,8] [7,0] [,8] [,10] [9,69] [,70] [,8] [7,0] Chapter 1, 009 Session Laws (HF 9) - Total (6,190) 7,0 [,8] [,10] [9,69] [,70] [,8] [7,0] [,8] [,10] [9,69] [,70] [,8] [7,0] Exclude from Income Up to $00 of Unemployment Compensation (tax year 009) (8,00) 0 (8,00) 0 (8,00) (8,00) 0 (8,00) Year Carry back of 008 NOLs for Businesses with Gross Receipts of $1 million 0 0 (,900) 00 (,00) (,900) 00 (,00) or Less Small Business Stock - Increase Exclusion from 0% to 7% (issued /18/09 to /1/10) * Revenue loss occurs after FY1. Expand Availability of Industrial Development Bonds (issued /18/09 to 1/1/09) 0 0 (1) () (0) (0) (0) (100) (1) () (0) (0) (0) (100) Tribal Economic Development Bonds (issued after /17/09) 0 0 (10) () () (70) (90) (160) (10) () () (70) (90) (160) Modify Rules for Interest Expense of Financial Institutions Relating to Tax-Exempt 0 0 (100) (100) (00) (100) (100) (00) (100) (100) (00) (100) (100) (00) Income (issued in 009 and 010) 0% Bonus Depreciation, with 80% Add back and -year Recovery (property 0 0 1,700,000,700 (800) (,00) (,00) 1,700,000,700 (800) (,00) (,00) placed in 009) Exemption from AMT for Interest from Private Activity Bonds 0 0 (180) (10) (0) (100) (100) (00) (180) (10) (0) (100) (100) (00) Allow Section 9 Tuition Plan Expenses to Include Computer 0 (Negli) (Negli) (Negli) (Negli) (Negli) (Negli) Technology/Equipment (tax years 009, 010) Increase Monthly Limits for Employee Tax-Free Transit and Vanpool Benefits (/1/09 to 1/1/10) 0 (Negli) (Negli) (Negli) (Negli) (Negli) (Negli) Section 179 Expensing (18,000) 9,1 0 0 (16,900) (1,100) (18,000),60,7 9,1 Increased Section 179 Expensing, with 80% Addback and -Yr Recovery (for (0) () (7) 0 0 property in 009) Individual Income Tax - Subtotal (6,00) 9,1 (9,0), (,90) (710) (,70) (,1) (6,70),080 (,6),990 1,99,98 Corporate Franchise Tax Provisions Reduce S Corporations Built-In Gains Holding Period from 10 to 7 years (tax years 0 0 (700) (00) (1,00) (00) (10) (0) (700) (00) (1,00) (00) (10) (0) 009, 010) Treatment of Certain Ownership Changes of Manufacturing Firms for Limitation of (0) (0) (0) (00) (0) 0 (0) (0) (0) (00) (0) NOL Carry forwards and Built-in Losses (/18/09) 0% Bonus Depreciation, with 80% Add back and -year Recovery (property 0 0,900 7,00 11,100 (1,900) (,900) (7,800),900 7,00 11,100 (1,900) (,900) (7,800) placed in 009) Conform to Section 179 Expensing (,00) 1,6 0 0 (,00) () (,7) 1,07 1,0,100 Increased Section 179 Expensing, with 80% Addback and -Yr Recovery (for property in 009) (10) (0) (60) H:\Excel\009 Session\joint ss 1 09_v.xls

3 /7/009,:10 PM General Fund Tax Revenue Changes Gov Gov Senate Senate Senate Senate Senate Senate House House House House House House SF# Author HF Author 'Note: Positive numbers reflect revenue gains, negative numbers reflect revenue reductions FY10-11 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 Corporate Franchise Tax - Subtotal (,00) 1,6,7 6,760 10,0 (,160) (6,00) (8,660) (80) 6,,8 (1,07) (,) (6,00) ARRA Total (Individual Income and Corporate Franchise Tax) (0,00) 10,70 (6,0) 10,1 (1,91) (,870) (9,0) (1,07) (7,) 8,1 (9,00),91 (,0) (1) Individual Income Tax: Rate Changes New Rates 6.0%, 7.7%, 8.%, New th Bracket at 9.% for MJ at $0,000; AMT 7.0%. Eff. TY 009. New Rates Blink Off by Bracket with Structural Balance. 1,7,00 91,000,188,00 966,00 1,0,00 1,991,600 New th Income Tax Tier at 9.0% for MJ filers at $00,000, Effective TY ,00 6,000 69,00,100 6,900 60,000 Tax Expenditures Changes Rate Change - Subtotal 0 0 1,7,00 91,000,188,00 966,00 1,0,00 1,991,600,00 6,000 69,00,100 6,900 60,000 Require Addback to Federal Taxable Income of Itemized Deduction for Mortgage 70,700 69,00 10,100 7,900 80,100 16,000 Interest on nd Residence 17 Rest 10% Sutraction for Partnership and S Corporations Active Pass-Through Income (77,00) (8,100) (19,00) (87,700) (9,00) (180,000) Interaction between th Bracket/AMT Rate and Subtraction for Partnership & S (1,100) (1,700) (,800) (1,700) (1,00) (8,00) Corporation 1969 Cohen 7 Lesch Film Investment Credit (1,000) (1,000) (,000) (1,000) (1,000) (,000) New Mortgage Interest Credit (,00) (,000) (67,00) (8,700) (8,800) (87,00) New Charitable Contribution Credit (16,900) (171,800) (,700) (178,00) (188,00) (66,700) New Refundable Child Credit (,100) (,00) (66,00) (1,00) (1,100) (6,600) 7 Mullery Expanded Research and Development Credit Available to Individuals, 10% Credit for First $ million of RD Expenditures Disallow Itemized Deduction for Mortgage Interest, Charitable Contribution & Real Personal Property Tax and Require Addback to Federal Taxable Income (700) (700) (1,00) (700) (700) (1,00) , ,800 1,8,900 89,00 9,700 1,87,900 Revenue Interaction Impact from Changes to Itemized Deductions (01,100) (01,00) (0,00) (1,100) (,600) (7,700) Disallow Charitable Deductions from Alternative Minimum Tax ,100 6,00,00,00,900 0,00 Disallow Exemption for MN State & Municipal Bonds Interest Income ,800 1,700 1,00,00 6,00 61,000 Disallow K-1 Dependent Education Expense Subtraction ,000 1,800 9,800 1,00 1,600 0,900 Disallow Charitable Contributions for Non Itemizer Subtraction ,600 6,000 11,600 6,00 6,900 1,00 Disallow Income of the Elderly or Disabled Subtraction , ,70 H:\Excel\009 Session\joint ss 1 09_v.xls

4 /7/009,:10 PM General Fund Tax Revenue Changes Gov Gov Senate Senate Senate Senate Senate Senate House House House House House House SF# Author HF Author 'Note: Positive numbers reflect revenue gains, negative numbers reflect revenue reductions FY10-11 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 Disallow Americorps Education Awards Subtraction Disallow Subnational Foreign Tax Subtraction Disallow Organ Donor Expense Subtraction Disallow Certain Farm Income Subtraction Negli Negl Negli. Negl Negli Negli. Repeal Child & Dependent Care Credit ,00 1,800 1,00 1,00 1,00 8,700 Repeal K-1 Education Credit ,100 10,00 1,00 9,900 9,00 19,00 Repeal Long-Term Care Credit ,00 7,00 1,800 7,600 7,700 1,00 Repeal Lower Income Motor Fuels Credit and Modify Dedication of Motor Vehicle 0 0 9,800 0,700 60,00 0,900 6,000 66,900 9,800 0,700 60,00 0,900 1,100 6,000 Lease Sales Tax Revenue Repeal Employee Health Insurance Credit , ,60 Other Income Tax Changes Tax Expenditures Changes - Subtotal ,000,00 1,00,00 8,00 1,700 6,80 98,190,00 7,690 81,0 79,00 Job Reinvestment Tax Credit (Eff TY 011) (0,000) Capital Gains Exemption for Qualifying Investments in Small Businesses, Requiring a -Year Holding Period Job Creation Reinvestment Credit 0 (,00) 0 0 Revenue Interaction from All Individual Income Tax Provisions (7,00) (7,700) (,100) (1,00) (,00) (6,700) Revenue Interaction Impact from Changes to Property Tax Provisions (9,900) (1,80) (,180) (6,00) (8,10) (10,00) (9,90) (19,60) (0) (80) (900) (90) (170) (1,090) Other Income Tax Changes - Subtotal (9,900) (0,0) (,180) (6,00) (8,10) (10,00) (9,90) (19,60) (7,0) (8,0) (6,000) (,0) (,70) (6,790) Individual Income Tax Total (9,900) (0,0) 1,,10 99,70,19,90 960,770 1,0,910 1,98,680 6,900 9,60 98,0 8,70 8,680 1,1, Corporate Franchise Tax: Rate Changes Corporate Franchise Tax Rate Reduction from 9.8% to.8% over six years (eff tax (100,000) (90,000) year 010) Rate Change - Subtotal (100,000) (90,000) Tax Expenditure Changes H:\Excel\009 Session\joint ss 1 09_v.xls

5 /7/009,:10 PM General Fund Tax Revenue Changes Gov Gov Senate Senate Senate Senate Senate Senate House House House House House House SF# Author HF Author 'Note: Positive numbers reflect revenue gains, negative numbers reflect revenue reductions FY10-11 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY Lenczews Repeal Foreign Operating Corporations (FOC) and Disallow Foreign Royalty ,700 78,000 18,700 90,800 9,00 186,000 Subtraction Require Addition to Income for Development Subsidies ,600 6,600 6,700 6,00 1,00 Repeal Employer Transit Pass Credit ,00 Repeal Bovine TB Testing Credit Freeze Single Sales Factor at 81% in TY 009 9,00 17,100 6,00 8,700 9,00 67,900 Immediate Phase-in of 100% Single Sales Factor for Corporate Apportionment in (,100) (,00) (7,00) (,00) (1,700) (8,00) TY Mullery Expanded Research and Development Credit for RD expenditures, 10% Credit for (,100) (,00) (7,00) (,100) (,00) (8,00) the First $ Million New Bovine TB Testing Grants (60) (60) (70) (60) (60) (70) Other Corporate Tax Changes Tax Expenditure Changes - Subtotal 0 0 9,00 17,100 6,00 8,700 9,00 67,900,00 6,00 100,900 71,00 8,00 1,700 Corporate Tax Havens ,00 10,600 19,100 1,000 1,00,00 New Schedule for Minimum Fee ,00 8,00 16,00 8,00 8,00 16,00 Revenue Interaction Impact from Changes to Property Tax Provisions (,600) (,00) 0 0 Revenue Interaction Impact from Single Sales, FOCs and the Foreign Royalty (,00) (,900) (9,00) (,700) (,700) (6,00) Subtraction Other Corporate Tax Changes - Subtotal (,600) (,00) ,00 1,900 6,00 16,00 18,000, Corporate Franchise Tax Total (10,600) (9,00) 9,00 17,100 6,00 8,700 9,00 67,900,900 71,00 17,00 88, ,00 188, Individual Income and Corporate Franchise Tax 07 Ortman 716 Rukavina Surtax On Excess Interest Rate Income 118,900 97,00 16,00 10,00 109,00 1, Pogemiller 197 Marquart Credit for Historic Preservation 0 0 (,700) (7,900) (10,600) (1,100) (1,800) (,900) Saltzman 799 Davnie Income Tax Credit for Investment in Qualified High Technology Business Ventures (,000) (,000) 0 0 Ind. Income and Corporate Franchise - Total ,00 89,00 0,700 91,100 90, , Estate Tax: 18 Mullery Impose Gift Tax, Include Certain Gifts in Estate Tax ,00 10,00 1,000 1,000 17,700 1,700 H:\Excel\009 Session\joint ss 1 09_v.xls

6 /7/009,:10 PM General Fund Tax Revenue Changes Gov Gov Senate Senate Senate Senate Senate Senate House House House House House House SF# Author HF Author 'Note: Positive numbers reflect revenue gains, negative numbers reflect revenue reductions FY10-11 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY Skoe 17 Mullery Pass-Through Entities Subject to Taxation 0 0,00,00,600,00,800 7,00,00,00,600,00,800 7,00 Estate Tax - Total 0 0,00,00,600,00,800 7,00 6,800 1,800 0,600 17,00 1,00 9, Sales & Use Tax 189 Dibble 1980 Davnie Impose Tax on Specified Digital Products ,80,90,0,870,10 6, Mullery Disallow the Occasional Sales Exemption for Watercraft, ATVs, and Snowmobiles ,100,00 10,00,600,700 11,00 18 Gardner Modify Heating Fuel Exemption ,00 17,700,00 18,00 19,00 7,800 8 Bakk 01 Solberg Modifies the Definition of Affiliated Entity to include "Solicitor" for Nexus Purposes ,600 1,00,000 1,00 16,00 0,600 10,600 1,00,000 1,00 16,00 0, Lenczews Modification to Formula for the Dedication of Sales Tax on Motor Vehicle Leases To Transportation Funds (Impact of Credit Repeal and Timing Change) (9,00) (8,000) (7,00) (,800) (7,00) (7,000) 17 Rest Capital Equipment Up-Front Exemption (Eff. Jan. 1, 010) (7,180) (19,0) (,0) (,70) (7,180) (11,90) (7,80) (19,0) 8 Pogemiller 81 Kahn Local Options Tax - Minneapolis Downtown Taxing Area Modification 9 81 Negl Negl. Murphy Exempt Construction Materials for Meat Processing Facility (,000) 0 (,000) 1 Sales Tax Changes - Total (7,180) (19,0) (1,801) (0,98) (,099) 0 8,80 9,1,679 9,9 1,611,1 7,610 1, Special Taxes 1617 Murphy 1 Clark Increase Alcoholic Beverage Tax Rates for Beer, Spirits, Malt Beverages, and Wines. Alcohol Excise Tax Revenue ,000,100 80,100,800,00 86,00 Sales Tax on Alcoholic Beverages (due to price increase) ,00 1,00,700 1,00 1,00,800 Proposed Gross Receipts Tax Increase of.% to.0% ,600 68,000 16,600 71,100 7,100 1,00 Alcohol Excise Tax Subtotal , ,00 09,00 11,00 118,900, Murphy Increase Cigarette Tax Rate from $1. per pack to $1.77 per pack, by cents. Cigarette Excise Tax Revenue ,00 108,700 10, ,800 10,000 11,800 Floor Stocks Tax , , H:\Excel\009 Session\joint ss 1 09_v.xls 6

7 /7/009,:10 PM General Fund Tax Revenue Changes Gov Gov Senate Senate Senate Senate Senate Senate House House House House House House SF# Author HF Author 'Note: Positive numbers reflect revenue gains, negative numbers reflect revenue reductions FY10-11 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 Sales Tax on Cigarettes (adjustment for in-lieu sales tax with rate increase) ,00,00,800,00,00,800 Cigarette Refunds (,00) (,800) (7,100) (,800) (,900) (7,700) General Fund Net Subtotal , ,00 19,00 10,00 10,00 08, Cigarette Fee (due to fewer sales) (1,00) (1,00) (,700) (1,600) (1,100) (,700) Health Impact Fund (HIF) Total (1,00) (1,00) (,700) (1,600) (1,100) (,700) Transferred to General Fund From HIF (1,00) (1,00) (,700) (1,600) (1,100) (,700) Total Increased Cigarette Tax Revenue (including interaction and shift from HIF) ,600 9,00 19,800 9,800 91,00 18, Dibble 191 Davnie Impose Tax on Moist Snuff at a Rate of 91 Cents Per Ounce (not as a percentage of the price) ,100,00 8,00,00,00 8,800 General Fund Net Subtotal ,100,00 8,00,00,00 8, Impose Tax on Moist Snuff at a Rate of 91 Cents Per Ounce (not as a percentage of the price) ,100,00 8,00,00,00 8,800 Transferred to General Fund From HIF ,100,00 8,00,00,00 8,800 Total Increased Moist Snuff Tax Revenue (including shift from HIF) ,00 8,600 16,800 8,600 9,000 17, Special Taxes - Total ,700 1,00 0,000 16,700 19,00 6, Insurance Gross Earnings Tax Small Business Tax Credit 0 (1,0) Saltzman 7 Winkler Business Investment Company Credit for New & Emerging Businesses, modified, fiscal impact FY1 and thereafter Insurance Gross Earnings Tax - Total 0 (1,0) State Levy 10 Olson, M. Seasonal Rec. Residential Property Removed from State Levy; State General levy Rate Set at Pay 00 Rate,.7% 7,600 16,000 8,600 00,00,600, Lenczews Remove Exemption from State General Levy for Airports ,70,00,0,00,00 7,000 H:\Excel\009 Session\joint ss 1 09_v.xls 7

8 /7/009,:10 PM 16 General Fund Tax Revenue Changes Gov Gov Senate Senate Senate Senate Senate Senate House House House House House House SF# Author HF Author 'Note: Positive numbers reflect revenue gains, negative numbers reflect revenue reductions FY10-11 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 State Levy - Total 7,600 16,000 8,600 00,00,600,000 1,70,00,0,00,00 7, Miscellaneous Taxes JOBZ Terminate Designation of Businesses, Effective May 1, 009 1,60,800,060,000,60 8, Lenczews Repeal JOBZ Income Tax and Corporate Income Tax Benefits ,600 11,600 1,00 1,00 8, Lenczews Voided, Renegotiated or Modified JOBZ Subsidy Agreements Resulting from Tax ,60 1,90,90 1,70 1,80,0 Benefit Reductions Implemented 178 Lenczews Green JOBZ (,60) (6,600) 0 0 Murphy 6 Kelly Solid Waste Management Tax Exemption for City-Owned Waste-to-Energy Facilities (19) (8) (7) (8) (8) (16) Miscellaneous Tax - Total (,60) (6,600) 1,1,79,0,99,61 8,60,60 1,0 1,890 1,0 16,780, Non Tax Revenue 681 Bakk 88 Lenczews DOR Technical Bill, Withholding Tax Liability Modifications Total General Fund Tax and Non Tax Revenue Changes (97,910) (,780) 1,98,60 1,198,089,96,719 1,86,19 1,06,8,69,991 69, 80,67 1,, ,00 91, 1,89,7 H:\Excel\009 Session\joint ss 1 09_v.xls 8

9 /7/009, :10 PM 1 General Fund Tax Expenditure Changes Note: Negative #s reflect expenditure reductions (revenue gains), positive #s reflect expenditure increases (revenue reductions). Brackets [] indicate spending within a current appropriation Gov Gov Senate Senate Senate Senate Senate Senate House House House House House House SF# Author HF Author that does not impact the bottomline. FY10-11 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY Property Tax Refunds (PTR)/Deferrals Homeowner property tax refund changes: lowers % of income thresholds, incrs max refund by 10% 0 Marquart Homeowner PTR ,900 18,900 19,00 0,000 9,00 Gov Reduce Renter PTR formula to 1% rent paiid (0,800) (10,800) Marquart Eliminate Targeting PTR 0 (,0) (,0) (,0) (,70) (,170) Senior Property Tax Deferral changes: max income $7,000, removes marriage penalty if one is age 6, 10 yr residency Dibble 11 Marquart Seasonal Recreational Residential Deferral Marquart DOR Administration Market Value Homestead Credit - reimbursement cut for cities + Reform, Accountability, Value & Efficiency (RAVE) reporting and participation (0,17) (,9) (,010) (,18) (,8) (8,06) Agricultural Market Value Credit - reimbursement cut for cities (10) (10) (0) (10) (10) (60) Market Value Homestead Credit - Reduction 0 (0,000) (0,000) (1,00) (,100) (,00) PTR impact due to MVHC reduction 0 1,00 1,00 1,00 1,00,000 Adjust K-1 shift 7/ Levy recognition shift (90) (6) (996) () () (8) 119 Lanning Mandate Relief - Department of Education admin [1] [1] 0 [1] [1] Lanning Mandate Relief - Legislative Commission admin [100] [100] 0 [100] [100] Skoe 101 Marquart Council on Local Results & Innovation - State Auditor admin [6] [] 0 [] [] 0 Council on Local Results & Innovation - City per capita 0 [90] 0 [870] [880] 0 Council on Local Results & Innovation - County per capita 0 [70] 0 [700] [700] Dittrich Property Tax System Benchmarks DOR admin [0] [] 0 [] [] 0 H:\Excel\009 Session\joint ss 1 09_v.xls 9

10 /7/009, :10 PM 1 General Fund Tax Expenditure Changes Note: Negative #s reflect expenditure reductions (revenue gains), positive #s reflect expenditure increases (revenue reductions). Brackets [] indicate spending within a current appropriation Gov Gov Senate Senate Senate Senate Senate Senate House House House House House House SF# Author HF Author that does not impact the bottomline. FY10-11 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY Gov Market Value Homestead Credit - Reduction (68,00) (7,00) Gov Agricultural Market Value Credit - Reduction (,900) (6,10) Market Value Homestead Credit - Reduce 0.7% for Non-LGA Cities. Pay 10 & thereafter (,990) (,990) (,0) (,0) (10,670) Market Value Ag. Credit - Reduce 0.7% for Non-LGA Cities, Pay 10 & thereafter 0 (10) (10) (10) (10) (0) Local Aids Local Government Aid - eliminate growth 0 (10,) (10,) (,00) (,00) (6,080) 6 7 Gov Sen Local Government Aid reductions (9,00) (,71) (7,1) Appropriation for LGA from fiscal stabilization account in the federal fund to minimize budget reductions and avert local tax increases (GF savings) (6,10) 0 (6,10) Local Government Aid - Reduce by.0% levy plus aid FY 10; reduct 10.% levy & aid FY 11 (,900) (9,000) Local Government Aid - Reduce by 0.7% Levy + Aid Pay 10 and thereafter (10,990) (10,990) (11,60) (11,980) (,60) Ortman 88 Kohls City of Mayer Aid LGA base increase by $100,000 per year Coon Rapids one-time city aid payment to pay state's portion of 1991 Foley 188 Dittrich 1998 joint powers agreement w/city 0 [] Olseen 101 Kalin Taylor's Falls LGA base increase by $0, Dahle 68 Brod Green Isle one-time LGA increase of $10, Murphy St Charles LGA increase of $16,06 CY 10 & Marquart County program aid - eliminate growth 0 (,) (,) (1,80) (1,80) (7,680) 00 Marquart County program aid offset + RAVE local notes; includes exemption for counties with fewer 10,000 residents & under $7 per capita (1,80) (16,98) (1,8) (16,10) (19,00) (,710) 161 Dittrich Property Tax System Benchmarks - MMB admin [10] [10] 0 [10] [10] 0 Gov County program aid - Reduce (18,800) (197,76) H:\Excel\009 Session\joint ss 1 09_v.xls 10

11 /7/009, :10 PM General Fund Tax Expenditure Changes Note: Negative #s reflect expenditure reductions (revenue gains), positive #s reflect expenditure increases (revenue reductions). Brackets [] indicate spending within a current appropriation Gov Gov Senate Senate Senate Senate Senate Senate House House House House House House SF# Author HF Author that does not impact the bottomline. FY10-11 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 Earn-back CPA with participation in Human Services regional Gov administrative plan 7,00 6, County Program Aid - Reduce 0.% Levy + Aid Pay 10 & thereafter (1,960) (1,960) (1,600) (1,00) (9,60) 0 0 Eliminate Utility Transition Aid Feb 009 (for offset, see Public Utility rate increase) (1,6) (1,6) (879) (78) (1,7) Bakk 1610 Davnie Repeal Levy Limits and Local Aid Changes, PTR Impact ,180 1,180,0 1,980, Severson 119 Lanning 1976 Koenen 189 Scalze 1610 Davnie Property Tax Refund/Levy Limit Repeal & Aid Change Interaction ,910 1,910,10 60, Marquart Local Option Taxes County Revenue Option -1/ cent sales tax; for offset, see County Program Aid Property Tax Changes Homesteads Erickson- Ropes 7 Brod Taxable value limited for reconstructed homes in a disaster area 0 negligible 0 negligible negligible 0 Residential market value homestead credit value exclusion 1 Juhnke extended to surviving spouses of disabled military veterans (70) (10) (0) 1906 Loeffler Future relative homesteads eliminated 0 unknown 0 unknown unknown Erickson- Ropes 10 Olson M 61 Davids 1767 Saxhaug Dittrich 10 Skoe Olin Non-homestead Class c Modification - Commercial Seasonal Recreational Residential 0 Unknown Unknown Unknown Unknown Unknown 0 unknown 0 unknown unknown 0 Seasonal Rec. Residential Property Addes to School Refernedum Levies 0 (700) (700) (700) (700) (1,00) Exemption for Leased Seasonal Recreational Residential Modified Repeal of Bovine Tuberculosis Zone Credits (M.S. 7.11) (for offset, see Bovine TB Herd grants) 0 (00) (00) (00) (00) (1,000) Modify Bovine Tuberculosis Zone State-Paid Property Tax Credits (M.S. 7.11) (100) (100) (100) (100) (00) 0 0 H:\Excel\009 Session\joint ss 1 09_v.xls 11

12 /7/009, :10 PM General Fund Tax Expenditure Changes Note: Negative #s reflect expenditure reductions (revenue gains), positive #s reflect expenditure increases (revenue reductions). Brackets [] indicate spending within a current appropriation Gov Gov Senate Senate Senate Senate Senate Senate House House House House House House SF# Author HF Author that does not impact the bottomline. FY10-11 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 Public Utility Property Tax Class Rate Increases. Electric Generating Equip. to.8%, Transmission Distribution System to 10 Murphy 17 Koenen.% (1,100) (1,100) (1,100) (1,100) (,00) Pogemiller 1661 Loeffler Property Tax Exemption for Certain Elderly Living Facilities 0 (Negl.) (Negl.) (Negl.) (Negl.) (Negl.) Bakk Skoe 1986 Bakk 116 Atkins 09 Sparks Poppe Brown 0 Bakk 686 Lenczewski 117 Lourey 16 Hilty Property Tax Exemption for Electric Generation Facilities in Current Law, -year Exemption with -year Phase Out, PTR Impact 0 (17) (17) (0) () (87) Lakeshore / Riparian Property Used to Provide Marina Services Rate Reduction (c Class) 0 Unknown Unknown Unknown Unknown Unknown Wind Production Tax. Additional Expenditure to Dept of Education to Offset the Loss of School District Revenue Property Tax Administration Local Government Units Authorized to Issue Emergency Debt Certificates 0 Unknown Unknown Unknown Unknown Unknown 0 unknown 0 unknown unknown 0 Cloquet Area Fire & Ambulance Special Taxing District Establishment 0 (Negl.) (Negl.) (Negl.) (Negl.) (Negl.) Haws Special levy for costs of confining sex offenders Special levy for costs of operating and maintaining new county 980 Johnson 96 Dittrich facilities Lourey 17 Faust Tax forfeited land proceeds for other purposes 0 (8) (8) Eliminate local government authority to issue OPEB bonds but 17 Buesgens preserves authority for school districts 0 (0) (0) (10) (00) (0) Other Expenditures Gov Cap Sustainable Forest payments (,00) (1,000) 0 0 Gov Eliminate Political Contribution Refund (10,00) (11,800) 0 0 Gov Reduct Taconite Replacement Aid from cents to 7 cents / ton (1,9) (10,116) 0 0 Appropriation for a Forgivable Loan to a Manufacturer of Wind Turbine Blades , , Omnibus Transportation bill, Sec 1, Metro Area Transit tax - PTR impact House Eliminate 0% cut for DNR PILT,00,00 8,700,00,00 10,00 Gov Cut DNR PILT by 0% (8,700) (10,00) 0 0 H:\Excel\009 Session\joint ss 1 09_v.xls 1

13 /7/009, :10 PM General Fund Tax Expenditure Changes Note: Negative #s reflect expenditure reductions (revenue gains), positive #s reflect expenditure increases (revenue reductions). Brackets [] indicate spending within a current appropriation Gov Gov Senate Senate Senate Senate Senate Senate House House House House House House SF# Author HF Author that does not impact the bottomline. FY10-11 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 Basic Sliding Fee Child Care (one of offsets for elim of Slawik childcare dependent credit),000,000 10,000,000,000 10, Skoe 001 Olin Bovine Tuberculosis Herd "Split-State Status" Grants Lesch DOR Required to Collect Unpaid Sales and Lodging Taxes Lenczewski Debt Service - Administration for non-taxable bonds 0 0 0,078,0,68 Gov Property Tax Refund Interaction 9,000 1,10 Gov K-1 payment shift from 90/10 to 80/0 (6,71) 1 House K-1 payment shift from 90/10 to 7/7 (11,61) 18 (11,1) Other Expenditures Tax - Total (9,06) (60,97) 10,000 (,1) (,1) (,167) (,796) (68,96) (7,189) (198,91) (7,780) (18,0) (18,6) (67,96) H:\Excel\009 Session\joint ss 1 09_v.xls 1

14 /7/009, :10 PM House Non General Fund Tax Revenue Changes Gov Gov Senate Senate Senate Senate Senate Senate House House House House House House SF# Author File Author Note: Positive #s reflect revenue gains, negative #s reflect revenue reductions FY10-11 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 Special Revenue Fund 681 Bakk 88 Lenczewski DOR Technical / Policy Bill - Local Gov't Fee for Conditional Use Deed Application Bakk 88 Lenczewski DOR Technical / Policy Bill - Local Gov't Fee for Conditional Use Deed Application (8) (8) (1) (1) (8) (1) (1) (8) Gov Revenues - Angel & Early Stage Capital Application Fees 79 0 Gov Expenditures - Angel & Early Stage Capital Administration Costs Offset (79) (0) Special Revenue Fund - Subtotal 0 0 Natural Resources & Arts Funds 8 Bakk 01 Solberg Modifies the Definition of Affliated Entity to include "Solicitor" for Nexus purposes , , , , Mullery Disallow the Occasional Sales Exemption for Watercraft, ATVs, and Snowmobiles Gardner Modify Heating Fuel Exemption 1,07 1,1,0 1,0 1,6, Bakk 1980 Davnie Impose Tax on Specified Digital Products Murphy Increase Alcohol Beverage Excise Tax Rate Murphy Exempt Construction Materials for Meat Processing Facility (100) 0 (100) 17 Rest na Capital Equipment Upfront Exemption (,61) (1,00) (1,11) (1,90) (,61) (80) (0) (1,00) Natural Resources & Arts Fund - Subtotal (,61) (1,00) (1) (790) (1,1) ,18,86,,77,768, Environmental Fund Murphy 6 Kelly Solid Waste Mgt. Tax Exemption for City-Owned Waste-to-Energy Facilities () (19) (6) (19) (19) (8) Environmental Fund Subtotal () (19) (6) (19) (19) (8) Health Impact Fund 1617 Murphy 1 Increase Cigarette Tax Rate from $1. per pack to $1.77 per pack, by cents. (1,00) (1,00) (,700) (1,600) (1,100) (,700) 1909 Dibble 191 Impose Tax on Moist Snuff at a Rate of 88 Cents/Per Ounce,100,00 8,00,00,00 8,800 Net Health Impact Fund (HIF) (8,00) (8,900) (17,00) (8,00) (7,600) (1,900) HIF transferred to the General Fund 8,00 8,900 17,00 8,00 7,600 1,900 Total HIF (after transfer to General Fund) H:\Excel\009 Session\joint ss 1 09_v.xls 1

15 /7/009, :10 PM House Non General Fund Tax Revenue Changes Gov Gov Senate Senate Senate Senate Senate Senate House House House House House House SF# Author File Author Note: Positive #s reflect revenue gains, negative #s reflect revenue reductions FY10-11 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 Transportation Funds Greater Minnesota Transit Account 1,700 1,000 8,700 17,900 18,600 6,00 County State Aid Fund 1,700 1,000 8,700 17,900 18,600 6,00 Highway User Tax Distribution Fund Transportation funds 9,00 8,000 7,00,800 7,00 7, Marty 16 Davnie Motor Vehicle Rental Fee Non Profit Car Sharing (10) (11) (1) (10) (11) (1) Other Highway User Transportation Fund (10) (11) (1) (10) (11) (1) 178 Lenczewsk Additonal Debt Service - MN Finance Agency (70) (1,00) (,0) (,078) (,0) (,68) Additional Debt Service - Revenue Bond Capital Project Fund (MMB) (179) (8) (7) (70) () (7) Additional Debt Service - Public Facilities Authority Fund (DEED) (160) (0) (80) (80) (60) (1,10) Additional Debt Service - Drinking Water Revolving Fund (DEED) (90) (180) (70) (70) (60) (60) Additional Debt Service - MNSCU Revenue Bond Fund (State Colleges) (1) (1) (0) (1) (1) (0) Additional Debt Service - MNSCU Universities Bond Fund (State Colleges) (7) (7) (11) (11) (10) (6) Federal Funds Other Funds (1,1) (,8) (,889) (,) (,178) (8,61) LGA Appropriation from fiscal stabilization account 6,10 0 6, Iron Range Resources (IRRB ) Fund Gov. Reduce Funding (7,76) (7,76) Federal funds 6,10 0 6, Taconite Environmental Protection Fund ,100 IRRB fund (7,76) (7,76) ,100 H:\Excel\009 Session\joint ss 1 09_v.xls 1

16 /7/009, :10 PM House Non General Fund Tax Revenue Changes Gov Gov Senate Senate Senate Senate Senate Senate House House House House House House SF# Author File Author Note: Positive #s reflect revenue gains, negative #s reflect revenue reductions FY10-11 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 FY 10 FY 11 FY10-11 FY 1 FY 1 FY1-1 DJ Johnson Economic Protection Trust Fund Gov. Reduce Funding (,88) (,88) Bakk Grant or Forgivable Loan to a Manufacturer of Wind Turbine Blades (10,000) 0 (10,000) st Century Minerals Fund (00) DJJ EPTF Subtotal (,88) (,88) (10,000) 0 (10,000) Grant or Forgivable Loan to a Manufacturer of Wind Turbine Blades (10,000) 0 (10,000) Minnesota Investment Fund (00) 1st Century Minerals Fund Subtotal (10,000) 0 (10,000) Appropriation for a Loan to Aircraft Assembly / Finishing Enterprise (,000) 0 (,000) Minnesota Investment Fund Subtotal (,000) 0 (,000) 0 0 Total Non General Fund Total (1,87) (1,666) (,9) (809) (,0) ,6 8,88 6,010,8,9 70,811 H:\Excel\009 Session\joint ss 1 09_v.xls 16