Bill Text: MN HF42 | 2011-2012 | 87th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Omnibus tax bill.
Spectrum: Moderate Partisan Bill (Republican 9-1)
Status: (Vetoed) 2011-05-24 - Governor's action Veto Chapter 38 [HF42 Detail]
Download: Minnesota-2011-HF42-Introduced.html
Bill Title: Omnibus tax bill.
Spectrum: Moderate Partisan Bill (Republican 9-1)
Status: (Vetoed) 2011-05-24 - Governor's action Veto Chapter 38 [HF42 Detail]
Download: Minnesota-2011-HF42-Introduced.html
1.2relating to taxation; phasing out the corporate franchise tax; amending Minnesota
1.3Statutes 2010, sections 290.06, subdivision 1; 290.0921, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 290.06, subdivision 1, is amended to read:
1.6 Subdivision 1. Computation, corporations. The franchise tax imposed upon
1.7corporations shall be computed by applying to their taxable income the rate of:
1.8(1) 9.8 percent for taxable years beginning before January 1, 2011;
1.9(2) 8.8 percent for taxable year 2011;
1.10(3) 7.8 percent for taxable year 2012;
1.11(4) 6.8 percent for taxable year 2013;
1.12(5) 5.8 percent for taxable year 2014;
1.13(6) 4.8 percent for taxable year 2015;
1.14(7) 3.8 percent for taxable year 2016;
1.15(8) 2.8 percent for taxable year 2017;
1.16(9) 1.8 percent for taxable year 2018;
1.17(10) 0.8 percent for taxable year 2019;
1.18(11) zero for taxable years beginning after December 31, 2019.
1.19EFFECTIVE DATE.This section is effective for taxable years beginning after
1.20December 31, 2010.
1.21 Sec. 2. Minnesota Statutes 2010, section 290.0921, subdivision 1, is amended to read:
2.1 Subdivision 1. Tax imposed. (a) In addition to the taxes computed under this
2.2chapter without regard to this section, the franchise tax imposed on corporations includes
2.3a tax equal to the excess, if any, for the taxable year of:
2.4(1) (i) 5.8 percent of Minnesota alternative minimum taxable income for taxable
2.5years beginning before January 1, 2011;
2.6(ii) 5.2 percent of Minnesota alternative minimum taxable income for taxable year
2.72011;
2.8(iii) 4.6 percent of Minnesota alternative minimum taxable income for taxable year
2.92012;
2.10(iv) four percent of Minnesota alternative minimum taxable income for taxable
2.11year 2013;
2.12(v) 3.4 percent of Minnesota alternative minimum taxable income for taxable year
2.132014;
2.14(vi) 2.8 percent of Minnesota alternative minimum taxable income for taxable year
2.152015;
2.16(vii) 2.2 percent of Minnesota alternative minimum taxable income for taxable
2.17year 2016;
2.18(viii) 1.7 percent of Minnesota alternative minimum taxable income for taxable
2.19year 2017;
2.20(ix) 1.1 percent of Minnesota alternative minimum taxable income for taxable year
2.212018;
2.22(x) 0.5 percent of Minnesota alternative minimum taxable income for taxable year
2.232019; over
2.24(2) the tax imposed under section290.06, subdivision 1 , without regard to this
2.25section.
2.26(b) For taxable years beginning after December 31, 2019, the tax under this
2.27subdivision is zero.
2.28EFFECTIVE DATE.This section is effective for taxable years beginning after
2.29December 31, 2010.
2.30 Sec. 3. REVISOR'S INSTRUCTION.
2.31In consultation with the commissioner of revenue, the revisor of statutes shall
2.32prepare a bill for introduction in the 2019 legislative session that repeals the corporate
2.33franchise tax and, as appropriate, repeals or substitutes new cross references or statutory
2.34language for the repealed provisions of the franchise tax referred to in other sections of
2.35Minnesota Statutes.
1.3Statutes 2010, sections 290.06, subdivision 1; 290.0921, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 290.06, subdivision 1, is amended to read:
1.6 Subdivision 1. Computation, corporations. The franchise tax imposed upon
1.7corporations shall be computed by applying to their taxable income the rate of:
1.8(1) 9.8 percent for taxable years beginning before January 1, 2011;
1.9(2) 8.8 percent for taxable year 2011;
1.10(3) 7.8 percent for taxable year 2012;
1.11(4) 6.8 percent for taxable year 2013;
1.12(5) 5.8 percent for taxable year 2014;
1.13(6) 4.8 percent for taxable year 2015;
1.14(7) 3.8 percent for taxable year 2016;
1.15(8) 2.8 percent for taxable year 2017;
1.16(9) 1.8 percent for taxable year 2018;
1.17(10) 0.8 percent for taxable year 2019;
1.18(11) zero for taxable years beginning after December 31, 2019.
1.19EFFECTIVE DATE.This section is effective for taxable years beginning after
1.20December 31, 2010.
1.21 Sec. 2. Minnesota Statutes 2010, section 290.0921, subdivision 1, is amended to read:
2.1 Subdivision 1. Tax imposed. (a) In addition to the taxes computed under this
2.2chapter without regard to this section, the franchise tax imposed on corporations includes
2.3a tax equal to the excess, if any, for the taxable year of:
2.4(1) (i) 5.8 percent of Minnesota alternative minimum taxable income for taxable
2.5years beginning before January 1, 2011;
2.6(ii) 5.2 percent of Minnesota alternative minimum taxable income for taxable year
2.72011;
2.8(iii) 4.6 percent of Minnesota alternative minimum taxable income for taxable year
2.92012;
2.10(iv) four percent of Minnesota alternative minimum taxable income for taxable
2.11year 2013;
2.12(v) 3.4 percent of Minnesota alternative minimum taxable income for taxable year
2.132014;
2.14(vi) 2.8 percent of Minnesota alternative minimum taxable income for taxable year
2.152015;
2.16(vii) 2.2 percent of Minnesota alternative minimum taxable income for taxable
2.17year 2016;
2.18(viii) 1.7 percent of Minnesota alternative minimum taxable income for taxable
2.19year 2017;
2.20(ix) 1.1 percent of Minnesota alternative minimum taxable income for taxable year
2.212018;
2.22(x) 0.5 percent of Minnesota alternative minimum taxable income for taxable year
2.232019; over
2.24(2) the tax imposed under section
2.25section.
2.26(b) For taxable years beginning after December 31, 2019, the tax under this
2.27subdivision is zero.
2.28EFFECTIVE DATE.This section is effective for taxable years beginning after
2.29December 31, 2010.
2.30 Sec. 3. REVISOR'S INSTRUCTION.
2.31In consultation with the commissioner of revenue, the revisor of statutes shall
2.32prepare a bill for introduction in the 2019 legislative session that repeals the corporate
2.33franchise tax and, as appropriate, repeals or substitutes new cross references or statutory
2.34language for the repealed provisions of the franchise tax referred to in other sections of
2.35Minnesota Statutes.
