A bill for an act
relating to taxation; minerals; converting the net proceeds tax into a gross proceeds
tax; modifying distributions of gross proceeds and taconite production taxes;
modifying and increasing distribution of occupation tax proceeds; amending
Minnesota Statutes 2022, sections 41A.21; 272.02, subdivision 73; 273.1341;
297A.68, subdivision 4; 298.015; 298.018, subdivisions 1, 1a; 298.17; 298.28,
subdivisions 5, 7a; 298.296, subdivision 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2022, section 41A.21, is amended to read:
(a) For the purposes of this section, the terms defined in this
subdivision have the meanings given them.
(b) "Commissioner" means the commissioner of agriculture.
(c) deleted text begin "Forest resources" means raw wood logs and material primarily made up of cellulose,
hemicellulose, or lignin, or a combination of those ingredientsdeleted text end new text begin "Solar cell" means a device
that is capable of converting the energy of light into electricitynew text end .
deleted text begin
(d) "Oriented strand board" or "OSB" means a material manufactured into panels using
forest resources.
deleted text end
(a) A facility eligible for payment under this section must deleted text begin source
at least 80 percent of its forest resources raw materials from Minnesota. The facility must
be located in Minnesota; must begin construction activities by December 31, 2023, for a
specific location; must have produced at least one OSB square foot on a 3/8-inch nominal
basis at a specific location by June 30, 2026; and must not begin operating before January
1, 2022. Eligible facilities must be new OSB construction sites with total capital investment
in excess of $250,000,000. Eligible OSB production facilities must produce at least
50,000,000 OSB square feet on a 3/8-inch nominal basis of OSB each quarter. At least one
product produced at the facility should be a wood-based wall or roof structural sheathing
panel that has an integrated, cellulose-based paper overlay that serves as a water resistive
barrierdeleted text end new text begin manufacture and produce solar cells in Minnesota, be located in the Taconite Tax
Relief Area, and begin operations by December 31, 2026. An eligible facility may include
solar module manufacturing, solar cell manufacturing, and warehouse facilities with a total
capital investment in excess of $100,000,000. No payments shall be made for solar cell
production that occurs after June 30, 2036new text end .
(b) No payments shall be made for deleted text begin OSBdeleted text end new text begin solar cellnew text end production that occurs after June 30,
2036, for those eligible producers under paragraph (a).
deleted text begin
(c) An eligible producer of OSB shall not transfer the producer's eligibility for payments
under this section to a facility at a different location.
deleted text end
deleted text begin (d)deleted text end new text begin (c)new text end A producer that ceases production for any reason is ineligible to receive payments
under this section until the producer resumes production.
deleted text begin (a)deleted text end The commissioner shall make payments tonew text begin the
firstnew text end eligible deleted text begin producersdeleted text end new text begin producernew text end of deleted text begin OSBdeleted text end new text begin solar cellsnew text end . The amount of the payment deleted text begin for each
eligible producer's annual production is $7.50 per 1,000 OSB square feet on a 3/8-inch
nominal basis of OSB produced at a specific location for ten years starting after the first
calendar year in which production beginsdeleted text end new text begin shall not exceed $3,000,000 per year from fiscal
year 2026 through fiscal year 2034. The payment shall be $1,000,000 for the first 12,000,000
solar cells produced each year, $2,000,000 for 24,000,000 solar cells produced each year,
and $3,000,000 for 36,000,000 solar cells produced each year, not to exceed $3,000,000 in
any fiscal year from 2026 through fiscal year 2034new text end .
deleted text begin
(b) Total payments under this section to an eligible OSB producer in a fiscal year may
not exceed the amount necessary for 400,000,000 OSB square feet on a 3/8-inch nominal
basis of OSB produced. Total payments under this section to all eligible OSB producers in
a fiscal year may not exceed the amount necessary for 400,000,000 OSB square feet on a
3/8-inch nominal basis of OSB produced. If the total amount for which all producers are
eligible in a quarter exceeds the amount available for payments, the commissioner shall
make the payments on a pro rata basis.
deleted text end
deleted text begin
(c) For purposes of this section, an entity that holds a controlling interest in more than
one OSB facility is considered a single eligible producer.
deleted text end
deleted text begin
Forest resources that are purchased to be used
at the facility must be in compliance with one or more of the following: the Sustainable
Forestry Initiative Fiber Sourcing Standard, the Forest Stewardship Council Chain of Custody
Standard, or the Forest Stewardship Controlled Wood Standard. For forest resources that
come from land parcels greater than 160 acres, all efforts must be made to procure from
land that is certified by one or more of the following: the Forest Stewardship Council Forest
Management Standard, the Sustainable Forestry Initiative Forest Management Standard, or
the American Tree Farm System.
deleted text end
deleted text begin
(a) By the last day of October, January, April, and July, each eligible
OSB producer shall file a claim for payment for OSB production during the preceding three
calendar months. An eligible OSB producer that files a claim under this subdivision shall
include a statement of the eligible producer's total board feet of OSB produced during the
quarter covered by the claim. For each claim and statement of total board feet of OSB filed
under this subdivision, the board feet of OSB produced must be examined by a certified
public accounting firm with a valid permit to practice under chapter 326A, in accordance
with Statements on Standards for Attestation Engagements established by the American
Institute of Certified Public Accountants.
deleted text end
deleted text begin
(b) The commissioner must issue payments by November 15, February 15, May 15, and
August 15. A separate payment must be made for each claim filed.
deleted text end
(a) In fiscal year 2025, a sum sufficient to make the payments
required by this section, not to exceed $1,500,000, is appropriated from the general fund to
the commissioner. This is a onetime appropriation.
(b) From fiscal year 2026 through fiscal year 2034, a sum sufficient to make the payments
required by this section, not to exceed $3,000,000 in a fiscal year, is annually appropriated
from the general fund to the commissioner.
Minnesota Statutes 2022, section 272.02, subdivision 73, is amended to read:
(a)
Real and personal property described in section 298.25 is exempt to the extent the tax on
taconite and iron sulphides under section 298.24 is described in section 298.25 as being in
lieu of other taxes on such property. This exemption applies for taxes payable in each year
that the tax under section 298.24 is payable with respect to such property.
(b) Deposits of mineral, metal, or energy resources the mining of which is subject to
taxation new text begin or the minimum payment new text end under section 298.015 are exempt.