1.1.................... moves to amend H.F. No. 42, the delete everything amendment
1.2(A11-0140), as follows:
1.3Page 31, after line 24 insert:


1.6    Section 1. Minnesota Statutes 2010, section 298.01, subdivision 3, is amended to read:
1.7    Subd. 3. Occupation tax; other ores. Every person engaged in the business of
1.8mining or producing ores in this state, except iron ore or taconite concentrates, shall pay
1.9an occupation tax to the state of Minnesota as provided in this subdivision. The tax is
1.10determined in the same manner as the tax imposed by section 290.02, except that sections
1.11290.05, subdivision 1 , clause (a), 290.17, subdivision 4, and 290.191, subdivision 2, do
1.12not apply, and the occupation tax must be computed by applying to taxable income the rate
1.13of 2.45 1.75 percent. A person subject to occupation tax under this section shall apportion
1.14its net income on the basis of the percentage obtained by taking the sum of:
1.15(1) 75 percent of the percentage which the sales made within this state in connection
1.16with the trade or business during the tax period are of the total sales wherever made in
1.17connection with the trade or business during the tax period;
1.18(2) 12.5 percent of the percentage which the total tangible property used by the
1.19taxpayer in this state in connection with the trade or business during the tax period is of
1.20the total tangible property, wherever located, used by the taxpayer in connection with the
1.21trade or business during the tax period; and
1.22(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
1.23in this state or paid in respect to labor performed in this state in connection with the trade
1.24or business during the tax period are of the taxpayer's total payrolls paid or incurred in
1.25connection with the trade or business during the tax period.
1.26The tax is in addition to all other taxes.

2.1    Sec. 2. Minnesota Statutes 2010, section 298.015, subdivision 1, is amended to read:
2.2    Subdivision 1. Tax imposed. A person engaged in the business of mining shall pay
2.3to the state of Minnesota for distribution as provided in section 298.018 a net proceeds tax
2.4equal to two 2.7 percent of the net proceeds from mining in Minnesota. The tax applies to
2.5all mineral and energy resources mined or extracted within the state of Minnesota except
2.6for sand, silica sand, gravel, building stone, crushed rock, limestone, granite, dimension
2.7granite, dimension stone, horticultural peat, clay, soil, iron ore, and taconite concentrates.
2.8The tax is in addition to all other taxes provided for by law.

2.9    Sec. 3. Minnesota Statutes 2010, section 298.018, subdivision 1, is amended to read:
2.10    Subdivision 1. Within taconite assistance area. The proceeds of the tax paid under
2.11sections 298.015 to 298.017 on minerals and energy resources mined or extracted within
2.12the taconite assistance area defined in section 273.1341, shall be allocated as follows:
2.13(1) five percent to the city or town within which the minerals or energy resources
2.14are mined or extracted or within which the concentrate was produced. If the mining
2.15and concentration, or different steps in either process, are carried on in more than one
2.16taxing district, the commissioner shall apportion equitably the proceeds of the part of the
2.17tax going to cities and towns among them upon the basis of attributing 50 percent of
2.18the proceeds of the tax to the operation of mining or extraction, and the remainder to
2.19the concentrating plant and to the processes of concentration, and with respect to each
2.20thereof giving due consideration to the relative extent of such operations performed in
2.21each taxing district;
2.22(2) ten percent to the taconite municipal aid account to be distributed as provided
2.23in section 298.282;
2.24(3) ten percent to the school district within which the minerals or energy resources
2.25are mined or extracted or within which the concentrate was produced. If the mining
2.26and concentration, or different steps in either process, are carried on in more than one
2.27school district, distribution among the school districts must be based on the apportionment
2.28formula prescribed in clause (1);
2.29(4) 20 percent to a group of school districts comprised of those school districts
2.30wherein the mineral or energy resource was mined or extracted or in which there is a
2.31qualifying municipality as defined by section 273.134, paragraph (b), in direct proportion
2.32to school district indexes as follows: for each school district, its pupil units determined
2.33under section 126C.05 for the prior school year shall be multiplied by the ratio of the
2.34average adjusted net tax capacity per pupil unit for school districts receiving aid under
2.35this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
3.1ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
3.2Each district shall receive that portion of the distribution which its index bears to the sum
3.3of the indices for all school districts that receive the distributions;
3.4(5) 20 percent to the county within which the minerals or energy resources are mined
3.5or extracted, provided that the county shall pay one percent of its proceeds to the Range
3.6Association of Municipalities and Schools;
3.7(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be
3.8distributed as provided in sections 273.134 to 273.136;
3.9(7) five percent to the Iron Range Resources and Rehabilitation Board for the
3.10purposes of section 298.22;
3.11(8) five three percent to the Douglas J. Johnson economic protection trust fund; and
3.12(9) five seven percent to the taconite environmental protection fund.
3.13The proceeds of the tax shall be distributed on July 15 each year.

3.14    Sec. 4. Minnesota Statutes 2010, section 298.28, subdivision 3, is amended to read:
3.15    Subd. 3. Cities; towns. (a) 12.5 cents per taxable ton, less any amount distributed
3.16under subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid
3.17account to be distributed as provided in section 298.282.
3.18    (b) An amount must be allocated to towns or cities that is annually certified by
3.19the county auditor of a county containing a taconite tax relief area as defined in section
3.20273.134, paragraph (b) , within which there is (1) an organized township if, as of January
3.212, 1982, more than 75 percent of the assessed valuation of the township consists of iron
3.22ore or (2) a city if, as of January 2, 1980, more than 75 percent of the assessed valuation
3.23of the city consists of iron ore.
3.24    (c) The amount allocated under paragraph (b) will be the portion of a township's or
3.25city's certified levy equal to the proportion of (1) the difference between 50 percent of
3.26January 2, 1982, assessed value in the case of a township and 50 percent of the January 2,
3.271980, assessed value in the case of a city and its current assessed value to (2) the sum of
3.28its current assessed value plus the difference determined in (1), provided that the amount
3.29distributed shall not exceed $55 per capita in the case of a township or $75 per capita in
3.30the case of a city. For purposes of this limitation, population will be determined according
3.31to the 1980 decennial census conducted by the United States Bureau of the Census. If the
3.32current assessed value of the township exceeds 50 percent of the township's January 2,
3.331982, assessed value, or if the current assessed value of the city exceeds 50 percent of the
3.34city's January 2, 1980, assessed value, this paragraph shall not apply. For purposes of this
4.1paragraph, "assessed value," when used in reference to years other than 1980 or 1982,
4.2means the appropriate net tax capacities multiplied by 10.2.
4.3    (d) In addition to other distributions under this subdivision, three cents per taxable
4.4ton for distributions in 2009 and subsequent years must be allocated for distribution
4.5to towns that are entirely located within the taconite tax relief area defined in section
4.6273.134 , paragraph (b). For distribution in 2010 and subsequent years, the three-cent
4.7amount must be annually increased in the same proportion as the increase in the implicit
4.8price deflator as provided in section 298.24, subdivision 1. The amount available under
4.9this paragraph will be distributed to eligible towns on a per capita basis, provided that no
4.10town may receive more than $50,000 in any year under this paragraph. Any amount of the
4.11distribution that exceeds the $50,000 limitation for a town under this paragraph must be
4.12redistributed on a per capita basis among the other eligible towns, to whose distributions
4.13do not exceed $50,000.
4.14EFFECTIVE DATE.This section is effective for the 2012 distribution."
4.15Renumber the sections in sequence and correct the internal references
4.16Amend the title accordingly