Bill Text: MN HF32 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Individual income tax restructured, subtractions eliminated, single tax rate applied, working family credit modified, and alternative minimum tax and various credits repealed.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-01-10 - Introduction and first reading, referred to Taxes [HF32 Detail]
Download: Minnesota-2013-HF32-Introduced.html
1.2relating to taxation; individual income; restructuring the individual income tax;
1.3eliminating subtractions, applying a single tax rate, modifying the working
1.4family credit, and repealing the alternative minimum tax and various credits;
1.5amending Minnesota Statutes 2012, sections 290.01, subdivisions 19a, 19b;
1.6290.06, subdivision 2c; 290.0671, subdivision 1; 290.091, subdivision 6;
1.7repealing Minnesota Statutes 2012, sections 290.067, subdivisions 1, 2, 2a, 2b, 3,
1.84; 290.0672; 290.0674; 290.0675, subdivisions 1, 2, 3, 4; 290.0679; 290.0802;
1.9290.091, subdivisions 1, 2, 3, 4, 5, 6.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2012, section 290.01, subdivision 19a, is amended to read:
1.12 Subd. 19a. Additions to federal taxable income. For individuals, estates, and
1.13trusts, there shall be added to federal taxable income:
1.14 (1)(i) interest income on obligations of any state other than Minnesota or a political
1.15or governmental subdivision, municipality, or governmental agency or instrumentality
1.16of any state other than Minnesota exempt from federal income taxes under the Internal
1.17Revenue Code or any other federal statute; and
1.18 (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
1.19Code, except:
1.20(A) the portion of the exempt-interest dividends exempt from state taxation under
1.21the laws of the United States; and
1.22(B) the portion of the exempt-interest dividends derived from interest income
1.23on obligations of the state of Minnesota or its political or governmental subdivisions,
1.24municipalities, governmental agencies or instrumentalities, but only if the portion of the
1.25exempt-interest dividends from such Minnesota sources paid to all shareholders represents
1.2695 percent or more of the exempt-interest dividends, including any dividends exempt
2.1under subitem (A), that are paid by the regulated investment company as defined in section
2.2851(a) of the Internal Revenue Code, or the fund of the regulated investment company as
2.3defined in section 851(g) of the Internal Revenue Code, making the payment; and
2.4 (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
2.5government described in section 7871(c) of the Internal Revenue Code shall be treated as
2.6interest income on obligations of the state in which the tribe is located;
2.7 (2) the amount ofincome, sales and use, motor vehicle sales, or excise taxes paid or
2.8accrued within the taxable year under this chapter and the amount of taxes based on net
2.9income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state
2.10or to any province or territory of Canada itemized deductions, to the extent allowed as a
2.11deduction deductions under section 63(d) of the Internal Revenue Code, but the addition
2.12may not be more than the amount by which the itemized deductions as allowed under
2.13section 63(d) of the Internal Revenue Code exceeds the amount of the standard deduction
2.14as defined in section 63(c) of the Internal Revenue Code, disregarding the amounts
2.15allowed under sections 63(c)(1)(C) and 63(c)(1)(E) of the Internal Revenue Code, minus
2.16any addition that would have been required under clause(21) (20) if the taxpayer had
2.17claimed the standard deduction. For the purpose of this paragraph, the disallowance of
2.18itemized deductions under section 68 of the Internal Revenue Code of 1986, income, sales
2.19and use, motor vehicle sales, or excise taxes are the last itemized deductions disallowed;
2.20 (3) the capital gain amount of a lump-sum distribution to which the special tax under
2.21section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;
2.22 (4) the amount of income taxes paid or accrued within the taxable year under this
2.23chapter and taxes based on net income paid to any other state or any province or territory
2.24of Canada, to the extent allowed as a deduction in determining federal adjusted gross
2.25income. For the purpose of this paragraph, income taxes do not include the taxes imposed
2.26by sections290.0922, subdivision 1 , paragraph (b),
290.9727 ,
290.9728 , and
290.9729 ;
2.27 (5) the amount of expense, interest, or taxes disallowed pursuant to section290.10
2.28other than expenses or interest used in computing net interest income for the subtraction
2.29allowed under subdivision 19b, clause (1);
2.30 (6) the amount of a partner's pro rata share of net income which does not flow
2.31through to the partner because the partnership elected to pay the tax on the income under
2.32section 6242(a)(2) of the Internal Revenue Code;
2.33 (7) 80 percent of the depreciation deduction allowed under section 168(k) of the
2.34Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
2.35in the taxable year generates a deduction for depreciation under section 168(k) and the
2.36activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
3.1the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
3.2limited to excess of the depreciation claimed by the activity under section 168(k) over the
3.3amount of the loss from the activity that is not allowed in the taxable year. In succeeding
3.4taxable years when the losses not allowed in the taxable year are allowed, the depreciation
3.5under section 168(k) is allowed;
3.6 (8) 80 percent of the amount by which the deduction allowed by section 179 of the
3.7Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
3.8Revenue Code of 1986, as amended through December 31, 2003;
3.9 (9) to the extent deducted in computing federal taxable income, the amount of the
3.10deduction allowable under section 199 of the Internal Revenue Code;
3.11 (10) for taxable years beginning before January 1, 2013, the exclusion allowed under
3.12section 139A of the Internal Revenue Code for federal subsidies for prescription drug plans;
3.13(11) the amount of expenses disallowed under section 290.10, subdivision 2;
3.14 (12) for taxable years beginning before January 1, 2010, the amount deducted for
3.15qualified tuition and related expenses under section 222 of the Internal Revenue Code, to
3.16the extent deducted from gross income;
3.17 (13) for taxable years beginning before January 1, 2010, the amount deducted for
3.18certain expenses of elementary and secondary school teachers under section 62(a)(2)(D)
3.19of the Internal Revenue Code, to the extent deducted from gross income;
3.20(14) the additional standard deduction for property taxes payable that is allowable
3.21under section 63(c)(1)(C) of the Internal Revenue Code;
3.22(15) the additional standard deduction for qualified motor vehicle sales taxes
3.23allowable under section 63(c)(1)(E) of the Internal Revenue Code;
3.24(16) discharge of indebtedness income resulting from reacquisition of business
3.25indebtedness and deferred under section 108(i) of the Internal Revenue Code;
3.26(17) the amount of unemployment compensation exempt from tax under section
3.2785(c) of the Internal Revenue Code;
3.28(18) changes to federal taxable income attributable to a net operating loss that the
3.29taxpayer elected to carry back for more than two years for federal purposes but for which
3.30the losses can be carried back for only two years under section290.095, subdivision
3.3111, paragraph (c);
3.32(19) to the extent included in the computation of federal taxable income in taxable
3.33years beginning after December 31, 2010, the amount of disallowed itemized deductions,
3.34but the amount of disallowed itemized deductions plus the addition required under clause
3.35(2) may not be more than the amount by which the itemized deductions as allowed under
3.36section 63(d) of the Internal Revenue Code exceeds the amount of the standard deduction
4.1as defined in section 63(c) of the Internal Revenue Code, disregarding the amounts
4.2allowed under sections 63(c)(1)(C) and 63(c)(1)(E) of the Internal Revenue Code, and
4.3reduced by any addition that would have been required under clause (21) if the taxpayer
4.4had claimed the standard deduction:
4.5(i) the amount of disallowed itemized deductions is equal to the lesser of:
4.6(A) three percent of the excess of the taxpayer's federal adjusted gross income
4.7over the applicable amount; or
4.8(B) 80 percent of the amount of the itemized deductions otherwise allowable to the
4.9taxpayer under the Internal Revenue Code for the taxable year;
4.10(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a
4.11married individual filing a separate return. Each dollar amount shall be increased by
4.12an amount equal to:
4.13(A) such dollar amount, multiplied by
4.14(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
4.15Revenue Code for the calendar year in which the taxable year begins, by substituting
4.16"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof;
4.17(iii) the term "itemized deductions" does not include:
4.18(A) the deduction for medical expenses under section 213 of the Internal Revenue
4.19Code;
4.20(B) any deduction for investment interest as defined in section 163(d) of the Internal
4.21Revenue Code; and
4.22(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or
4.23theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue
4.24Code or for losses described in section 165(d) of the Internal Revenue Code;
4.25(20) (19) to the extent included in federal taxable income in taxable years beginning
4.26after December 31, 2010, the amount of disallowed personal exemptions for taxpayers
4.27with federal adjusted gross income over the threshold amount:
4.28(i) the disallowed personal exemption amount is equal to the dollar amount of the
4.29personal exemptions claimed by the taxpayer in the computation of federal taxable income
4.30multiplied by the applicable percentage;
4.31(ii) "applicable percentage" means two percentage points for each $2,500 (or
4.32fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable
4.33year exceeds the threshold amount. In the case of a married individual filing a separate
4.34return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In
4.35no event shall the applicable percentage exceed 100 percent;
4.36(iii) the term "threshold amount" means:
5.1(A) $150,000 in the case of a joint return or a surviving spouse;
5.2(B) $125,000 in the case of a head of a household;
5.3(C) $100,000 in the case of an individual who is not married and who is not a
5.4surviving spouse or head of a household; and
5.5(D) $75,000 in the case of a married individual filing a separate return; and
5.6(iv) the thresholds shall be increased by an amount equal to:
5.7(A) such dollar amount, multiplied by
5.8(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
5.9Revenue Code for the calendar year in which the taxable year begins, by substituting
5.10"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; and
5.11(21) (20) to the extent deducted in the computation of federal taxable income,
5.12for taxable years beginning after December 31, 2010, and before January 1, 2013, the
5.13difference between the standard deduction allowed under section 63(c) of the Internal
5.14Revenue Code and the standard deduction allowed for 2011 and 2012 under the Internal
5.15Revenue Code as amended through December 1, 2010.;
5.16(21) the amount deducted for moving expenses under section 62(a)(15) of the
5.17Internal Revenue Code, to the extent deducted from gross income; and
5.18(22) the amount deducted for interest on education loans under section 62(a)(17) of
5.19the Internal Revenue Code, to the extent deducted from gross income.
5.20EFFECTIVE DATE.This section is effective for taxable years beginning after
5.21December 31, 2012.
5.22 Sec. 2. Minnesota Statutes 2012, section 290.01, subdivision 19b, is amended to read:
5.23 Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
5.24and trusts, there shall be subtracted from federal taxable income:
5.25 (1) net interest income on obligations of any authority, commission, or
5.26instrumentality of the United States to the extent includable in taxable income for federal
5.27income tax purposes but exempt from state income tax under the laws of the United States;
5.28 (2) if included in federal taxable income, the amount of any overpayment of income
5.29tax to Minnesota or to any other state, for any previous taxable year, whether the amount
5.30is received as a refund or as a credit to another taxable year's income tax liability;
5.31(3) the amount paid to others, less the amount used to claim the credit allowed under
5.32section
290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
5.33to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
5.34transportation of each qualifying child in attending an elementary or secondary school
5.35situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
6.1resident of this state may legally fulfill the state's compulsory attendance laws, which
6.2is not operated for profit, and which adheres to the provisions of the Civil Rights Act
6.3of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
6.4tuition as defined in section
290.0674, subdivision 1, clause (1). As used in this clause,
6.5"textbooks" includes books and other instructional materials and equipment purchased
6.6or leased for use in elementary and secondary schools in teaching only those subjects
6.7legally and commonly taught in public elementary and secondary schools in this state.
6.8Equipment expenses qualifying for deduction includes expenses as defined and limited in
6.9section
290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
6.10books and materials used in the teaching of religious tenets, doctrines, or worship, the
6.11purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
6.12or materials for, or transportation to, extracurricular activities including sporting events,
6.13musical or dramatic events, speech activities, driver's education, or similar programs. No
6.14deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
6.15the qualifying child's vehicle to provide such transportation for a qualifying child. For
6.16purposes of the subtraction provided by this clause, "qualifying child" has the meaning
6.17given in section 32(c)(3) of the Internal Revenue Code;
6.18(4) income as provided under section
290.0802;
6.19(5) (3) to the extent included in federal adjusted gross income, income realized on
6.20disposition of property exempt from tax under section290.491 ;
6.21(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
6.22of the Internal Revenue Code in determining federal taxable income by an individual
6.23who does not itemize deductions for federal income tax purposes for the taxable year, an
6.24amount equal to 50 percent of the excess of charitable contributions over $500 allowable
6.25as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
6.26under the provisions of Public Law 109-1 and Public Law 111-126;
6.27(7) for individuals who are allowed a federal foreign tax credit for taxes that do not
6.28qualify for a credit under section
290.06, subdivision 22, an amount equal to the carryover
6.29of subnational foreign taxes for the taxable year, but not to exceed the total subnational
6.30foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
6.31"federal foreign tax credit" means the credit allowed under section 27 of the Internal
6.32Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
6.33under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
6.34the extent they exceed the federal foreign tax credit;
6.35(8) (4) in each of the five tax years immediately following the tax year in which an
6.36addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case of a
7.1shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
7.2delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
7.3of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
7.4clause (15), in the case of a shareholder of an S corporation, minus the positive value of
7.5any net operating loss under section 172 of the Internal Revenue Code generated for the
7.6tax year of the addition. The resulting delayed depreciation cannot be less than zero;
7.7(9) (5) job opportunity building zone income as provided under section
469.316 ;
7.8(10) to the extent included in federal taxable income, the amount of compensation
7.9paid to members of the Minnesota National Guard or other reserve components of the
7.10United States military for active service, excluding compensation for services performed
7.11under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
7.12service" means (i) state active service as defined in section
190.05, subdivision 5a, clause
7.13(1); or (ii) federally funded state active service as defined in section
190.05, subdivision
7.145b
, but "active service" excludes service performed in accordance with section
190.08,
7.15subdivision 3
;
7.16(11) to the extent included in federal taxable income, the amount of compensation
7.17paid to Minnesota residents who are members of the armed forces of the United States
7.18or United Nations for active duty performed under United States Code, title 10; or the
7.19authority of the United Nations;
7.20(12) an amount, not to exceed $10,000, equal to qualified expenses related to a
7.21qualified donor's donation, while living, of one or more of the qualified donor's organs
7.22to another person for human organ transplantation. For purposes of this clause, "organ"
7.23means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
7.24"human organ transplantation" means the medical procedure by which transfer of a human
7.25organ is made from the body of one person to the body of another person; "qualified
7.26expenses" means unreimbursed expenses for both the individual and the qualified donor
7.27for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
7.28may be subtracted under this clause only once; and "qualified donor" means the individual
7.29or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
7.30individual may claim the subtraction in this clause for each instance of organ donation for
7.31transplantation during the taxable year in which the qualified expenses occur;
7.32(13) (6) in each of the five tax years immediately following the tax year in which an
7.33addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a
7.34shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
7.35addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the
7.36case of a shareholder of a corporation that is an S corporation, minus the positive value of
8.1any net operating loss under section 172 of the Internal Revenue Code generated for the
8.2tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
8.3subtraction is not allowed under this clause;
8.4(14) (7) to the extent included in the federal taxable income of a nonresident of
8.5Minnesota, compensation paid to a service member as defined in United States Code, title
8.610, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
8.7Act, Public Law 108-189, section 101(2);
8.8(15) to the extent included in federal taxable income, the amount of national service
8.9educational awards received from the National Service Trust under United States Code,
8.10title 42, sections 12601 to 12604, for service in an approved Americorps National Service
8.11program;
8.12(16) (8) to the extent included in federal taxable income, discharge of indebtedness
8.13income resulting from reacquisition of business indebtedness included in federal taxable
8.14income under section 108(i) of the Internal Revenue Code. This subtraction applies only
8.15to the extent that the income was included in net income in a prior year as a result of the
8.16addition under section290.01, subdivision 19a , clause (16); and
8.17(17) (9) the amount of the net operating loss allowed under section
290.095,
8.18subdivision 11 , paragraph (c).
8.19EFFECTIVE DATE.This section is effective for taxable years beginning after
8.20December 31, 2012.
8.21 Sec. 3. Minnesota Statutes 2012, section 290.06, subdivision 2c, is amended to read:
8.22 Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income
8.23taxes imposed by this chapter upon married individuals filing joint returnsand, surviving
8.24spouses as defined in section 2(a) of the Internal Revenue Code, married individuals
8.25filing separate returns, estates, trusts, unmarried individuals, and unmarried individuals
8.26qualifying as a head of household as defined in section 2(b) of the Internal Revenue Code
8.27 must be computed by applying to their taxable net incomethe following schedule of rates:
8.28 the rate of 5.96 percent.
8.29(1) On the first $25,680, 5.35 percent;
8.30(2) On all over $25,680, but not over $102,030, 7.05 percent;
8.31(3) On all over $102,030, 7.85 percent.
8.32Married individuals filing separate returns, estates, and trusts must compute their
8.33income tax by applying the above rates to their taxable income, except that the income
8.34brackets will be one-half of the above amounts.
9.1(b) The income taxes imposed by this chapter upon unmarried individuals must be
9.2computed by applying to taxable net income the following schedule of rates:
9.3(1) On the first $17,570, 5.35 percent;
9.4(2) On all over $17,570, but not over $57,710, 7.05 percent;
9.5(3) On all over $57,710, 7.85 percent.
9.6(c) The income taxes imposed by this chapter upon unmarried individuals qualifying
9.7as a head of household as defined in section 2(b) of the Internal Revenue Code must be
9.8computed by applying to taxable net income the following schedule of rates:
9.9(1) On the first $21,630, 5.35 percent;
9.10(2) On all over $21,630, but not over $86,910, 7.05 percent;
9.11(3) On all over $86,910, 7.85 percent.
9.12(d) (b) In lieu of a tax computed according to the rates set forth in this subdivision,
9.13the tax of any individual taxpayer whose taxable net income for the taxable year is less
9.14than an amount determined by the commissioner must be computed in accordance with
9.15tables prepared and issued by the commissioner of revenue based on income brackets of
9.16not more than $100. The amount of tax for each bracket shall be computed at the rates set
9.17forth in this subdivision, provided that the commissioner may disregard a fractional part of
9.18a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.
9.19(e) (c) An individual who is not a Minnesota resident for the entire year must
9.20compute the individual's Minnesota income tax as provided in this subdivision. After the
9.21application of the nonrefundable credits provided in this chapter, the tax liability must
9.22then be multiplied by a fraction in which:
9.23 (1) the numerator is the individual's Minnesota source federal adjusted gross income
9.24as defined in section 62 of the Internal Revenue Code and increased by the additions
9.25required under section290.01, subdivision 19a , clauses (1), (5), (6), (7), (8), (9), (12),
9.26(13), and (16) to (18), and reduced by the Minnesota assignable portion of the subtraction
9.27for United States government interest under section290.01, subdivision 19b , clause (1),
9.28and the subtractions under section290.01, subdivision 19b , clauses (8), (9), (13), (14),
9.29(16), and (17) (4) to (9), after applying the allocation and assignability provisions of
9.30section290.081 , clause (a), or
290.17 ; and
9.31 (2) the denominator is the individual's federal adjusted gross income as defined in
9.32section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
9.33section290.01, subdivision 19a , clauses (1), (5), (6), (7), (8), (9), (12), (13), and (16) to
9.34(18), and reduced by the amounts specified in section290.01, subdivision 19b , clauses (1),
9.35(8), (9), (13), (14), (16), and (17) and (4) to (9).
10.1EFFECTIVE DATE.This section is effective for taxable years beginning after
10.2December 31, 2012.
10.3 Sec. 4. Minnesota Statutes 2012, section 290.0671, subdivision 1, is amended to read:
10.4 Subdivision 1. Credit allowed. (a) An individual is allowed a credit against the tax
10.5imposed by this chapter equal toa percentage of earned income. To receive a credit, a
10.6taxpayer must be 25 percent of the credit for which the individual is eligible for a credit
10.7 under section 32 of the Internal Revenue Code.
10.8(b) For individuals with no qualifying children, the credit equals 1.9125 percent of
10.9the first $4,620 of earned income. The credit is reduced by 1.9125 percent of earned
10.10income or adjusted gross income, whichever is greater, in excess of $5,770, but in no
10.11case is the credit less than zero.
10.12(c) For individuals with one qualifying child, the credit equals 8.5 percent of the first
10.13$6,920 of earned income and 8.5 percent of earned income over $12,080 but less than
10.14$13,450. The credit is reduced by 5.73 percent of earned income or adjusted gross income,
10.15whichever is greater, in excess of $15,080, but in no case is the credit less than zero.
10.16(d) For individuals with two or more qualifying children, the credit equals ten percent
10.17of the first $9,720 of earned income and 20 percent of earned income over $14,860 but less
10.18than $16,800. The credit is reduced by 10.3 percent of earned income or adjusted gross
10.19income, whichever is greater, in excess of $17,890, but in no case is the credit less than zero.
10.20(e) (b) For a nonresident or part-year resident, the credit must be allocated based on
10.21the percentage calculated under section290.06, subdivision 2c , paragraph (e) (c).
10.22(f) (c) For a person who was a resident for the entire tax year and has earned income
10.23not subject to tax under this chapter, including income excluded under section290.01,
10.24subdivision 19b , clause (9) (5), the credit must be allocated based on the ratio of federal
10.25adjusted gross income reduced by the earned income not subject to tax under this chapter
10.26over federal adjusted gross income.For purposes of this paragraph, the subtractions
10.27for military pay under section
290.01, subdivision 19b, clauses (10) and (11), are not
10.28considered "earned income not subject to tax under this chapter."
10.29For the purposes of this paragraph, the exclusion of combat pay under section 112
10.30of the Internal Revenue Code is not considered "earned income not subject to tax under
10.31this chapter."
10.32(g) For tax years beginning after December 31, 2007, and before December 31,
10.332010, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in
10.34paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by
10.35$3,000 for married taxpayers filing joint returns. For tax years beginning after December
11.131, 2008, the commissioner shall annually adjust the $3,000 by the percentage determined
11.2pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in
11.3section 1(f)(3)(B), the word "2007" shall be substituted for the word "1992." For 2009,
11.4the commissioner shall then determine the percent change from the 12 months ending on
11.5August 31, 2007, to the 12 months ending on August 31, 2008, and in each subsequent
11.6year, from the 12 months ending on August 31, 2007, to the 12 months ending on August
11.731 of the year preceding the taxable year. The earned income thresholds as adjusted
11.8for inflation must be rounded to the nearest $10. If the amount ends in $5, the amount
11.9is rounded up to the nearest $10. The determination of the commissioner under this
11.10subdivision is not a rule under the Administrative Procedure Act.
11.11(h) For tax years beginning after December 31, 2010, and before January 1, 2012,
11.12the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph
11.13(d), after being adjusted for inflation under subdivision 7, are each increased by $5,000 for
11.14married taxpayers filing joint returns. For tax years beginning after December 31, 2010,
11.15and before January 1, 2012, the commissioner shall annually adjust the $5,000 by the
11.16percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue
11.17Code, except that in section 1(f)(3)(B), the word "2008" shall be substituted for the word
11.18"1992." For 2011, the commissioner shall then determine the percent change from the 12
11.19months ending on August 31, 2008, to the 12 months ending on August 31, 2010. The
11.20earned income thresholds as adjusted for inflation must be rounded to the nearest $10. If the
11.21amount ends in $5, the amount is rounded up to the nearest $10. The determination of the
11.22commissioner under this subdivision is not a rule under the Administrative Procedure Act.
11.23(i) The commissioner shall construct tables showing the amount of the credit at
11.24various income levels and make them available to taxpayers. The tables shall follow
11.25the schedule contained in this subdivision, except that the commissioner may graduate
11.26the transition between income brackets.
11.27EFFECTIVE DATE.This section is effective for taxable years beginning after
11.28December 31, 2012.
11.29 Sec. 5. Minnesota Statutes 2012, section 290.091, subdivision 6, is amended to read:
11.30 Subd. 6. Credit for prior years' liability. (a) A credit is allowed against the tax
11.31imposed by this chapter on individuals, trusts, and estates equal to the minimum tax
11.32credit for the taxable year. The minimum tax credit equals the adjusted net minimum
11.33tax for taxable years beginning after December 31, 1988, reduced by the minimum tax
11.34credits allowed in a prior taxable year. The credit may not exceed the excess (if any) for
11.35the taxable year of
12.1(1) the regular tax, over
12.2(2) the greater of (i) the tentative alternative minimum tax, or (ii) zero.
12.3(b) The adjusted net minimum tax for a taxable year equals the lesser of the net
12.4minimum tax or the excess (if any) of
12.5(1) the tentative minimum tax, over
12.6(2) 6.4 percent of the sum of
12.7(i) adjusted gross income as defined in section 62 of the Internal Revenue Code,
12.8(ii) interest income as defined in section290.01, subdivision 19a , clause (1),
12.9(iii) interest on specified private activity bonds, as defined in section 57(a)(5) of the
12.10Internal Revenue Code, to the extent not included under clause (ii),
12.11(iv) depletion as defined in section 57(a)(1), determined without regard to the last
12.12sentence of paragraph (1), of the Internal Revenue Code, less
12.13(v) the deductions allowed in computing alternative minimum taxable income
12.14provided in subdivision 2, paragraph (a), clause (2) of the first series of clauses and clauses
12.15(1), (2), and (3) of the second series of clauses, and
12.16(vi) the exemption amount determined under subdivision 3.
12.17In the case of an individual who is not a Minnesota resident for the entire year,
12.18adjusted net minimum tax must be multiplied by the fraction defined in section290.06,
12.19subdivision 2c , paragraph (e). In the case of a trust or estate, adjusted net minimum tax
12.20must be multiplied by the fraction defined under subdivision 4, paragraph (b).
12.21(c) For tax years beginning after December 31, 2012, and before January 1, 2015, a
12.22credit is allowed against the tax imposed by this chapter on individuals, trusts, and estates
12.23equal to the minimum tax credit for the taxable year. The minimum tax credit equals the
12.24adjusted net minimum tax for taxable years beginning after December 31, 1988, and
12.25before January 1, 2013, reduced by the minimum tax credits allowed in a prior taxable
12.26year. The credit may not exceed the tax imposed by this chapter after the allowance of the
12.27credits in section 290.06, subdivisions 22, 22a, 28, 29, 30, and 31.
12.28EFFECTIVE DATE.This section is effective for taxable years beginning after
12.29December 31, 2012.
12.30 Sec. 6. REVISOR'S INSTRUCTION.
12.31(a) The revisor of statutes shall identify and correct internal cross-references affected
12.32by the amendments in sections 1, 2, and 3. The revisor may make changes necessary to
12.33correct the punctuation, grammar, or structure of the remaining text and preserve its
12.34meaning.
13.1(b) The revisor of statutes shall identify and correct internal cross-references to
13.2sections that are affected by section 7. The revisor may make changes necessary to correct
13.3the punctuation, grammar, or structure of the remaining text and preserve its meaning.
13.4EFFECTIVE DATE.This section is effective the day following final enactment.
13.5 Sec. 7. REPEALER.
13.6(a) Minnesota Statutes 2012, sections 290.067, subdivisions 1, 2, 2a, 2b, 3, and 4;
13.7290.0672; 290.0674; 290.0675, subdivisions 1, 2, 3, and 4; 290.0679; 290.0802; and
13.8290.091, subdivisions 1, 3, 4, and 5, are repealed.
13.9(b) Minnesota Statutes 2012, section 290.091, subdivisions 2 and 6, are repealed.
13.10EFFECTIVE DATE.Paragraph (a) is effective for taxable years beginning after
13.11December 31, 2012, and paragraph (b) is effective for taxable years beginning after
13.12December 31, 2014.
1.3eliminating subtractions, applying a single tax rate, modifying the working
1.4family credit, and repealing the alternative minimum tax and various credits;
1.5amending Minnesota Statutes 2012, sections 290.01, subdivisions 19a, 19b;
1.6290.06, subdivision 2c; 290.0671, subdivision 1; 290.091, subdivision 6;
1.7repealing Minnesota Statutes 2012, sections 290.067, subdivisions 1, 2, 2a, 2b, 3,
1.84; 290.0672; 290.0674; 290.0675, subdivisions 1, 2, 3, 4; 290.0679; 290.0802;
1.9290.091, subdivisions 1, 2, 3, 4, 5, 6.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2012, section 290.01, subdivision 19a, is amended to read:
1.12 Subd. 19a. Additions to federal taxable income. For individuals, estates, and
1.13trusts, there shall be added to federal taxable income:
1.14 (1)(i) interest income on obligations of any state other than Minnesota or a political
1.15or governmental subdivision, municipality, or governmental agency or instrumentality
1.16of any state other than Minnesota exempt from federal income taxes under the Internal
1.17Revenue Code or any other federal statute; and
1.18 (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
1.19Code, except:
1.20(A) the portion of the exempt-interest dividends exempt from state taxation under
1.21the laws of the United States; and
1.22(B) the portion of the exempt-interest dividends derived from interest income
1.23on obligations of the state of Minnesota or its political or governmental subdivisions,
1.24municipalities, governmental agencies or instrumentalities, but only if the portion of the
1.25exempt-interest dividends from such Minnesota sources paid to all shareholders represents
1.2695 percent or more of the exempt-interest dividends, including any dividends exempt
2.1under subitem (A), that are paid by the regulated investment company as defined in section
2.2851(a) of the Internal Revenue Code, or the fund of the regulated investment company as
2.3defined in section 851(g) of the Internal Revenue Code, making the payment; and
2.4 (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
2.5government described in section 7871(c) of the Internal Revenue Code shall be treated as
2.6interest income on obligations of the state in which the tribe is located;
2.7 (2) the amount of
2.8
2.9
2.10
2.11
2.12may not be more than the amount by which the itemized deductions as allowed under
2.13section 63(d) of the Internal Revenue Code exceeds the amount of the standard deduction
2.14as defined in section 63(c) of the Internal Revenue Code, disregarding the amounts
2.15allowed under sections 63(c)(1)(C) and 63(c)(1)(E) of the Internal Revenue Code, minus
2.16any addition that would have been required under clause
2.17claimed the standard deduction
2.18
2.19
2.20 (3) the capital gain amount of a lump-sum distribution to which the special tax under
2.21section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;
2.22 (4) the amount of income taxes paid or accrued within the taxable year under this
2.23chapter and taxes based on net income paid to any other state or any province or territory
2.24of Canada, to the extent allowed as a deduction in determining federal adjusted gross
2.25income. For the purpose of this paragraph, income taxes do not include the taxes imposed
2.26by sections
2.27 (5) the amount of expense, interest, or taxes disallowed pursuant to section
2.29allowed under subdivision 19b, clause (1);
2.30 (6) the amount of a partner's pro rata share of net income which does not flow
2.31through to the partner because the partnership elected to pay the tax on the income under
2.32section 6242(a)(2) of the Internal Revenue Code;
2.33 (7) 80 percent of the depreciation deduction allowed under section 168(k) of the
2.34Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
2.35in the taxable year generates a deduction for depreciation under section 168(k) and the
2.36activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
3.1the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
3.2limited to excess of the depreciation claimed by the activity under section 168(k) over the
3.3amount of the loss from the activity that is not allowed in the taxable year. In succeeding
3.4taxable years when the losses not allowed in the taxable year are allowed, the depreciation
3.5under section 168(k) is allowed;
3.6 (8) 80 percent of the amount by which the deduction allowed by section 179 of the
3.7Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
3.8Revenue Code of 1986, as amended through December 31, 2003;
3.9 (9) to the extent deducted in computing federal taxable income, the amount of the
3.10deduction allowable under section 199 of the Internal Revenue Code;
3.11 (10) for taxable years beginning before January 1, 2013, the exclusion allowed under
3.12section 139A of the Internal Revenue Code for federal subsidies for prescription drug plans;
3.13(11) the amount of expenses disallowed under section 290.10, subdivision 2;
3.14 (12) for taxable years beginning before January 1, 2010, the amount deducted for
3.15qualified tuition and related expenses under section 222 of the Internal Revenue Code, to
3.16the extent deducted from gross income;
3.17 (13) for taxable years beginning before January 1, 2010, the amount deducted for
3.18certain expenses of elementary and secondary school teachers under section 62(a)(2)(D)
3.19of the Internal Revenue Code, to the extent deducted from gross income;
3.20(14) the additional standard deduction for property taxes payable that is allowable
3.21under section 63(c)(1)(C) of the Internal Revenue Code;
3.22(15) the additional standard deduction for qualified motor vehicle sales taxes
3.23allowable under section 63(c)(1)(E) of the Internal Revenue Code;
3.24(16) discharge of indebtedness income resulting from reacquisition of business
3.25indebtedness and deferred under section 108(i) of the Internal Revenue Code;
3.26(17) the amount of unemployment compensation exempt from tax under section
3.2785(c) of the Internal Revenue Code;
3.28(18) changes to federal taxable income attributable to a net operating loss that the
3.29taxpayer elected to carry back for more than two years for federal purposes but for which
3.30the losses can be carried back for only two years under section
3.32
3.33
3.34
3.35
3.36
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.15
4.16
4.17
4.18
4.19
4.20
4.21
4.22
4.23
4.24
4.25
4.26after December 31, 2010, the amount of disallowed personal exemptions for taxpayers
4.27with federal adjusted gross income over the threshold amount:
4.28(i) the disallowed personal exemption amount is equal to the dollar amount of the
4.29personal exemptions claimed by the taxpayer in the computation of federal taxable income
4.30multiplied by the applicable percentage;
4.31(ii) "applicable percentage" means two percentage points for each $2,500 (or
4.32fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable
4.33year exceeds the threshold amount. In the case of a married individual filing a separate
4.34return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In
4.35no event shall the applicable percentage exceed 100 percent;
4.36(iii) the term "threshold amount" means:
5.1(A) $150,000 in the case of a joint return or a surviving spouse;
5.2(B) $125,000 in the case of a head of a household;
5.3(C) $100,000 in the case of an individual who is not married and who is not a
5.4surviving spouse or head of a household; and
5.5(D) $75,000 in the case of a married individual filing a separate return; and
5.6(iv) the thresholds shall be increased by an amount equal to:
5.7(A) such dollar amount, multiplied by
5.8(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
5.9Revenue Code for the calendar year in which the taxable year begins, by substituting
5.10"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; and
5.11
5.12for taxable years beginning after December 31, 2010, and before January 1, 2013, the
5.13difference between the standard deduction allowed under section 63(c) of the Internal
5.14Revenue Code and the standard deduction allowed for 2011 and 2012 under the Internal
5.15Revenue Code as amended through December 1, 2010
5.16(21) the amount deducted for moving expenses under section 62(a)(15) of the
5.17Internal Revenue Code, to the extent deducted from gross income; and
5.18(22) the amount deducted for interest on education loans under section 62(a)(17) of
5.19the Internal Revenue Code, to the extent deducted from gross income.
5.20EFFECTIVE DATE.This section is effective for taxable years beginning after
5.21December 31, 2012.
5.22 Sec. 2. Minnesota Statutes 2012, section 290.01, subdivision 19b, is amended to read:
5.23 Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
5.24and trusts, there shall be subtracted from federal taxable income:
5.25 (1) net interest income on obligations of any authority, commission, or
5.26instrumentality of the United States to the extent includable in taxable income for federal
5.27income tax purposes but exempt from state income tax under the laws of the United States;
5.28 (2) if included in federal taxable income, the amount of any overpayment of income
5.29tax to Minnesota or to any other state, for any previous taxable year, whether the amount
5.30is received as a refund or as a credit to another taxable year's income tax liability;
5.31
5.32
5.33
5.34
5.35
6.1
6.2
6.3
6.4
6.5
6.6
6.7
6.8
6.9
6.10
6.11
6.12
6.13
6.14
6.15
6.16
6.17
6.18
6.19
6.20disposition of property exempt from tax under section
6.21
6.22
6.23
6.24
6.25
6.26
6.27
6.28
6.29
6.30
6.31
6.32
6.33
6.34
6.35
6.36addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case of a
7.1shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
7.2delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
7.3of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
7.4clause (15), in the case of a shareholder of an S corporation, minus the positive value of
7.5any net operating loss under section 172 of the Internal Revenue Code generated for the
7.6tax year of the addition. The resulting delayed depreciation cannot be less than zero;
7.7
7.8
7.9
7.10
7.11
7.12
7.13
7.14
7.15
7.16
7.17
7.18
7.19
7.20
7.21
7.22
7.23
7.24
7.25
7.26
7.27
7.28
7.29
7.30
7.31
7.32
7.33addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a
7.34shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
7.35addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the
7.36case of a shareholder of a corporation that is an S corporation, minus the positive value of
8.1any net operating loss under section 172 of the Internal Revenue Code generated for the
8.2tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
8.3subtraction is not allowed under this clause;
8.4
8.5Minnesota, compensation paid to a service member as defined in United States Code, title
8.610, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
8.7Act, Public Law 108-189, section 101(2);
8.8
8.9
8.10
8.11
8.12
8.13income resulting from reacquisition of business indebtedness included in federal taxable
8.14income under section 108(i) of the Internal Revenue Code. This subtraction applies only
8.15to the extent that the income was included in net income in a prior year as a result of the
8.16addition under section
8.17
8.18subdivision 11
8.19EFFECTIVE DATE.This section is effective for taxable years beginning after
8.20December 31, 2012.
8.21 Sec. 3. Minnesota Statutes 2012, section 290.06, subdivision 2c, is amended to read:
8.22 Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income
8.23taxes imposed by this chapter upon married individuals filing joint returns
8.24spouses as defined in section 2(a) of the Internal Revenue Code, married individuals
8.25filing separate returns, estates, trusts, unmarried individuals, and unmarried individuals
8.26qualifying as a head of household as defined in section 2(b) of the Internal Revenue Code
8.27 must be computed by applying to their taxable net income
8.28 the rate of 5.96 percent.
8.29
8.30
8.31
8.32
8.33
8.34
9.1
9.2
9.3
9.4
9.5
9.6
9.7
9.8
9.9
9.10
9.11
9.12
9.13the tax of any individual taxpayer whose taxable net income for the taxable year is less
9.14than an amount determined by the commissioner must be computed in accordance with
9.15tables prepared and issued by the commissioner of revenue based on income brackets of
9.16not more than $100. The amount of tax for each bracket shall be computed at the rates set
9.17forth in this subdivision, provided that the commissioner may disregard a fractional part of
9.18a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.
9.19
9.20compute the individual's Minnesota income tax as provided in this subdivision. After the
9.21application of the nonrefundable credits provided in this chapter, the tax liability must
9.22then be multiplied by a fraction in which:
9.23 (1) the numerator is the individual's Minnesota source federal adjusted gross income
9.24as defined in section 62 of the Internal Revenue Code and increased by the additions
9.25required under section
9.26(13), and (16) to (18), and reduced by the Minnesota assignable portion of the subtraction
9.27for United States government interest under section
9.28and the subtractions under section
9.29
9.30section
9.31 (2) the denominator is the individual's federal adjusted gross income as defined in
9.32section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
9.33section
9.34(18), and reduced by the amounts specified in section
9.35
10.1EFFECTIVE DATE.This section is effective for taxable years beginning after
10.2December 31, 2012.
10.3 Sec. 4. Minnesota Statutes 2012, section 290.0671, subdivision 1, is amended to read:
10.4 Subdivision 1. Credit allowed. (a) An individual is allowed a credit against the tax
10.5imposed by this chapter equal to
10.6
10.7 under section 32 of the Internal Revenue Code.
10.8
10.9
10.10
10.11
10.12
10.13
10.14
10.15
10.16
10.17
10.18
10.19
10.20
10.21the percentage calculated under section
10.22
10.23not subject to tax under this chapter, including income excluded under section
10.24subdivision 19b
10.25adjusted gross income reduced by the earned income not subject to tax under this chapter
10.26over federal adjusted gross income.
10.27
10.28
10.29For the purposes of this paragraph, the exclusion of combat pay under section 112
10.30of the Internal Revenue Code is not considered "earned income not subject to tax under
10.31this chapter."
10.32
10.33
10.34
10.35
11.1
11.2
11.3
11.4
11.5
11.6
11.7
11.8
11.9
11.10
11.11
11.12
11.13
11.14
11.15
11.16
11.17
11.18
11.19
11.20
11.21
11.22
11.23
11.24
11.25
11.26
11.27EFFECTIVE DATE.This section is effective for taxable years beginning after
11.28December 31, 2012.
11.29 Sec. 5. Minnesota Statutes 2012, section 290.091, subdivision 6, is amended to read:
11.30 Subd. 6. Credit for prior years' liability. (a) A credit is allowed against the tax
11.31imposed by this chapter on individuals, trusts, and estates equal to the minimum tax
11.32credit for the taxable year. The minimum tax credit equals the adjusted net minimum
11.33tax for taxable years beginning after December 31, 1988, reduced by the minimum tax
11.34credits allowed in a prior taxable year. The credit may not exceed the excess (if any) for
11.35the taxable year of
12.1(1) the regular tax, over
12.2(2) the greater of (i) the tentative alternative minimum tax, or (ii) zero.
12.3(b) The adjusted net minimum tax for a taxable year equals the lesser of the net
12.4minimum tax or the excess (if any) of
12.5(1) the tentative minimum tax, over
12.6(2) 6.4 percent of the sum of
12.7(i) adjusted gross income as defined in section 62 of the Internal Revenue Code,
12.8(ii) interest income as defined in section
12.9(iii) interest on specified private activity bonds, as defined in section 57(a)(5) of the
12.10Internal Revenue Code, to the extent not included under clause (ii),
12.11(iv) depletion as defined in section 57(a)(1), determined without regard to the last
12.12sentence of paragraph (1), of the Internal Revenue Code, less
12.13(v) the deductions allowed in computing alternative minimum taxable income
12.14provided in subdivision 2, paragraph (a), clause (2) of the first series of clauses and clauses
12.15(1), (2), and (3) of the second series of clauses, and
12.16(vi) the exemption amount determined under subdivision 3.
12.17In the case of an individual who is not a Minnesota resident for the entire year,
12.18adjusted net minimum tax must be multiplied by the fraction defined in section
12.19subdivision 2c
12.20must be multiplied by the fraction defined under subdivision 4, paragraph (b).
12.21(c) For tax years beginning after December 31, 2012, and before January 1, 2015, a
12.22credit is allowed against the tax imposed by this chapter on individuals, trusts, and estates
12.23equal to the minimum tax credit for the taxable year. The minimum tax credit equals the
12.24adjusted net minimum tax for taxable years beginning after December 31, 1988, and
12.25before January 1, 2013, reduced by the minimum tax credits allowed in a prior taxable
12.26year. The credit may not exceed the tax imposed by this chapter after the allowance of the
12.27credits in section 290.06, subdivisions 22, 22a, 28, 29, 30, and 31.
12.28EFFECTIVE DATE.This section is effective for taxable years beginning after
12.29December 31, 2012.
12.30 Sec. 6. REVISOR'S INSTRUCTION.
12.31(a) The revisor of statutes shall identify and correct internal cross-references affected
12.32by the amendments in sections 1, 2, and 3. The revisor may make changes necessary to
12.33correct the punctuation, grammar, or structure of the remaining text and preserve its
12.34meaning.
13.1(b) The revisor of statutes shall identify and correct internal cross-references to
13.2sections that are affected by section 7. The revisor may make changes necessary to correct
13.3the punctuation, grammar, or structure of the remaining text and preserve its meaning.
13.4EFFECTIVE DATE.This section is effective the day following final enactment.
13.5 Sec. 7. REPEALER.
13.6(a) Minnesota Statutes 2012, sections 290.067, subdivisions 1, 2, 2a, 2b, 3, and 4;
13.7290.0672; 290.0674; 290.0675, subdivisions 1, 2, 3, and 4; 290.0679; 290.0802; and
13.8290.091, subdivisions 1, 3, 4, and 5, are repealed.
13.9(b) Minnesota Statutes 2012, section 290.091, subdivisions 2 and 6, are repealed.
13.10EFFECTIVE DATE.Paragraph (a) is effective for taxable years beginning after
13.11December 31, 2012, and paragraph (b) is effective for taxable years beginning after
13.12December 31, 2014.
