The bill proposes a comprehensive overhaul of Minnesota's mineral taxation framework by transitioning from a net proceeds tax to a gross proceeds tax. This change includes modifications to the distribution of gross proceeds and taconite production taxes, as well as an increase in the distribution of occupation tax proceeds. Key amendments redefine eligibility criteria for facilities to receive payments, shifting the focus from oriented strand board (OSB) production to solar cell manufacturing, and establish new payment structures for solar cell production. The bill also introduces a minimum payment requirement for mining operations and outlines specific distribution percentages for various funds related to mining activities.

In terms of legal language changes, the bill replaces references to "net" with "gross" in several sections, indicating a significant shift in tax calculation methods. It also introduces new definitions and eligibility requirements for solar cell production facilities, including a capital investment threshold and operational deadlines. Additionally, the bill amends tax rates imposed on taxable tons produced, increasing them from 1.5 cents to three cents and from six cents to 18 cents for different allocations. It establishes a temporary loan authority for the commissioner to utilize funds for value-added iron products and minerals processing plants, with specific caps and provisions for grants and loans. The effective dates for these changes vary, with some provisions taking effect immediately and others beginning in 2023.

Statutes affected:
Introduction: 41A.21, 272.02, 273.1341, 297A.68, 298.015, 298.018, 298.17, 298.28, 298.296