MN HF2779

Reduces occupation tax rate on nonferrous minerals (ores, metals, minerals excluding iron ore and taconite) from 2.45 percent to 1.45 percent, effective for taxable years beginning after December 31, 2011.

Increases net proceeds tax on nonferrous minerals from 2 percent to 3 percent of net proceeds from mining in Minnesota, effective for taxable years beginning after December 31, 2011.

Modifies distribution of mineral production tax revenues within the taconite assistance area by adjusting allocations to the Douglas J. Johnson economic protection trust fund (from 5 percent to 3 percent) and the taconite environmental protection fund (from 5 percent to 7 percent).

Changes taconite mine tax allocations to cities and townships from 4 cents to 9 cents per taxable ton and removes restrictions on how municipalities must use the funds (eliminates requirement that half be used for infrastructure and half for multi-municipality projects).

Increases school district allocations from nonferrous mineral taxes, raising the base rate from 23.15 cents to 26.15 cents per taxable ton and increasing the per-taconite-facility distribution from 4 cents to 7 cents per taxable ton, effective beginning with the 2013 distribution.