Bill Text: MN SF1716 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Individual income tax restructuring, single tax rate imposition and tax credits repeal
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-02-08 - Referred to Taxes [SF1716 Detail]
Download: Minnesota-2011-SF1716-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 2010, section 290.091, subdivision 6; Minnesota
1.6Statutes 2011 Supplement, sections 290.01, subdivisions 19a, 19b; 290.06,
1.7subdivision 2c; 290.0671, subdivision 1; repealing Minnesota Statutes 2010,
1.8sections 290.067, subdivisions 1, 2, 2a, 2b, 3, 4; 290.0672; 290.0674; 290.0675,
1.9subdivisions 2, 3, 4; 290.0679; 290.0802; 290.091, subdivisions 1, 3, 4, 5, 6;
1.10Minnesota Statutes 2011 Supplement, sections 290.0675, subdivision 1; 290.091,
1.11subdivision 2.
1.12BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.13 Section 1. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19a,
1.14is amended to read:
1.15 Subd. 19a. Additions to federal taxable income. For individuals, estates, and
1.16trusts, there shall be added to federal taxable income:
1.17 (1)(i) interest income on obligations of any state other than Minnesota or a political
1.18or governmental subdivision, municipality, or governmental agency or instrumentality
1.19of any state other than Minnesota exempt from federal income taxes under the Internal
1.20Revenue Code or any other federal statute; and
1.21 (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
1.22Code, except:
1.23(A) the portion of the exempt-interest dividends exempt from state taxation under
1.24the laws of the United States; and
1.25(B) the portion of the exempt-interest dividends derived from interest income
1.26on obligations of the state of Minnesota or its political or governmental subdivisions,
1.27municipalities, governmental agencies or instrumentalities, but only if the portion of the
2.1exempt-interest dividends from such Minnesota sources paid to all shareholders represents
2.295 percent or more of the exempt-interest dividends, including any dividends exempt
2.3under subitem (A), that are paid by the regulated investment company as defined in section
2.4851(a) of the Internal Revenue Code, or the fund of the regulated investment company as
2.5defined in section 851(g) of the Internal Revenue Code, making the payment; and
2.6 (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
2.7government described in section 7871(c) of the Internal Revenue Code shall be treated as
2.8interest income on obligations of the state in which the tribe is located;
2.9 (2) the amount ofincome, sales and use, motor vehicle sales, or excise taxes paid or
2.10accrued within the taxable year under this chapter and the amount of taxes based on net
2.11income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state
2.12or to any province or territory of Canada itemized deductions, to the extent allowed as
2.13a deduction deductions under section 63(d) of the Internal Revenue Code, but the addition
2.14may not be more than the amount by which the itemized deductions as allowed under
2.15section 63(d) of the Internal Revenue Code exceeds the amount of the standard deduction
2.16as defined in section 63(c) of the Internal Revenue Code, disregarding the amounts
2.17allowed under sections 63(c)(1)(C) and 63(c)(1)(E) of the Internal Revenue Code, minus
2.18any addition that would have been required under clause(21) (20) if the taxpayer had
2.19claimed the standard deduction. For the purpose of this paragraph, the disallowance of
2.20itemized deductions under section 68 of the Internal Revenue Code of 1986, income, sales
2.21and use, motor vehicle sales, or excise taxes are the last itemized deductions disallowed;
2.22 (3) the capital gain amount of a lump-sum distribution to which the special tax under
2.23section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;
2.24 (4) the amount of income taxes paid or accrued within the taxable year under this
2.25chapter and taxes based on net income paid to any other state or any province or territory
2.26of Canada, to the extent allowed as a deduction in determining federal adjusted gross
2.27income. For the purpose of this paragraph, income taxes do not include the taxes imposed
2.28by sections290.0922, subdivision 1 , paragraph (b),
290.9727 ,
290.9728 , and
290.9729 ;
2.29 (5) the amount of expense, interest, or taxes disallowed pursuant to section290.10
2.30other than expenses or interest used in computing net interest income for the subtraction
2.31allowed under subdivision 19b, clause (1);
2.32 (6) the amount of a partner's pro rata share of net income which does not flow
2.33through to the partner because the partnership elected to pay the tax on the income under
2.34section 6242(a)(2) of the Internal Revenue Code;
2.35 (7) 80 percent of the depreciation deduction allowed under section 168(k) of the
2.36Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
3.1in the taxable year generates a deduction for depreciation under section 168(k) and the
3.2activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
3.3the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
3.4limited to excess of the depreciation claimed by the activity under section 168(k) over the
3.5amount of the loss from the activity that is not allowed in the taxable year. In succeeding
3.6taxable years when the losses not allowed in the taxable year are allowed, the depreciation
3.7under section 168(k) is allowed;
3.8 (8) 80 percent of the amount by which the deduction allowed by section 179 of the
3.9Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
3.10Revenue Code of 1986, as amended through December 31, 2003;
3.11 (9) to the extent deducted in computing federal taxable income, the amount of the
3.12deduction allowable under section 199 of the Internal Revenue Code;
3.13 (10) for taxable years beginning before January 1, 2013, the exclusion allowed
3.14under section 139A of the Internal Revenue Code for federal subsidies for prescription
3.15drug plans;
3.16(11) the amount of expenses disallowed under section 290.10, subdivision 2;
3.17 (12) for taxable years beginning before January 1, 2010, the amount deducted for
3.18qualified tuition and related expenses under section 222 of the Internal Revenue Code, to
3.19the extent deducted from gross income;
3.20 (13) for taxable years beginning before January 1, 2010, the amount deducted for
3.21certain expenses of elementary and secondary school teachers under section 62(a)(2)(D)
3.22of the Internal Revenue Code, to the extent deducted from gross income;
3.23(14) the additional standard deduction for property taxes payable that is allowable
3.24under section 63(c)(1)(C) of the Internal Revenue Code;
3.25(15) the additional standard deduction for qualified motor vehicle sales taxes
3.26allowable under section 63(c)(1)(E) of the Internal Revenue Code;
3.27(16) discharge of indebtedness income resulting from reacquisition of business
3.28indebtedness and deferred under section 108(i) of the Internal Revenue Code;
3.29(17) the amount of unemployment compensation exempt from tax under section
3.3085(c) of the Internal Revenue Code;
3.31(18) changes to federal taxable income attributable to a net operating loss that the
3.32taxpayer elected to carry back for more than two years for federal purposes but for which
3.33the losses can be carried back for only two years under section290.095, subdivision
3.3411, paragraph (c);
3.35(19) to the extent included in the computation of federal taxable income in taxable
3.36years beginning after December 31, 2010, the amount of disallowed itemized deductions,
4.1but the amount of disallowed itemized deductions plus the addition required under clause
4.2(2) may not be more than the amount by which the itemized deductions as allowed under
4.3section 63(d) of the Internal Revenue Code exceeds the amount of the standard deduction
4.4as defined in section 63(c) of the Internal Revenue Code, disregarding the amounts
4.5allowed under sections 63(c)(1)(C) and 63(c)(1)(E) of the Internal Revenue Code, and
4.6reduced by any addition that would have been required under clause (21) if the taxpayer
4.7had claimed the standard deduction:
4.8(i) the amount of disallowed itemized deductions is equal to the lesser of:
4.9(A) three percent of the excess of the taxpayer's federal adjusted gross income
4.10over the applicable amount; or
4.11(B) 80 percent of the amount of the itemized deductions otherwise allowable to the
4.12taxpayer under the Internal Revenue Code for the taxable year;
4.13(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a
4.14married individual filing a separate return. Each dollar amount shall be increased by
4.15an amount equal to:
4.16(A) such dollar amount, multiplied by
4.17(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
4.18Revenue Code for the calendar year in which the taxable year begins, by substituting
4.19"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof;
4.20(iii) the term "itemized deductions" does not include:
4.21(A) the deduction for medical expenses under section 213 of the Internal Revenue
4.22Code;
4.23(B) any deduction for investment interest as defined in section 163(d) of the Internal
4.24Revenue Code; and
4.25(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or
4.26theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue
4.27Code or for losses described in section 165(d) of the Internal Revenue Code;
4.28(20) (19) to the extent included in federal taxable income in taxable years beginning
4.29after December 31, 2010, the amount of disallowed personal exemptions for taxpayers
4.30with federal adjusted gross income over the threshold amount:
4.31(i) the disallowed personal exemption amount is equal to the dollar amount of the
4.32personal exemptions claimed by the taxpayer in the computation of federal taxable income
4.33multiplied by the applicable percentage;
4.34(ii) "applicable percentage" means two percentage points for each $2,500 (or
4.35fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable
4.36year exceeds the threshold amount. In the case of a married individual filing a separate
5.1return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In
5.2no event shall the applicable percentage exceed 100 percent;
5.3(iii) the term "threshold amount" means:
5.4(A) $150,000 in the case of a joint return or a surviving spouse;
5.5(B) $125,000 in the case of a head of a household;
5.6(C) $100,000 in the case of an individual who is not married and who is not a
5.7surviving spouse or head of a household; and
5.8(D) $75,000 in the case of a married individual filing a separate return; and
5.9(iv) the thresholds shall be increased by an amount equal to:
5.10(A) such dollar amount, multiplied by
5.11(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
5.12Revenue Code for the calendar year in which the taxable year begins, by substituting
5.13"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof;and
5.14(21) (20) to the extent deducted in the computation of federal taxable income,
5.15for taxable years beginning after December 31, 2010, and before January 1, 2013, the
5.16difference between the standard deduction allowed under section 63(c) of the Internal
5.17Revenue Code and the standard deduction allowed for 2011 and 2012 under the Internal
5.18Revenue Code as amended through December 1, 2010.;
5.19(21) the amount deducted for moving expenses under section 62(a)(15) of the
5.20Internal Revenue Code, to the extent deducted from gross income; and
5.21(22) the amount deducted for interest on education loans under section 62(a)(17) of
5.22the Internal Revenue Code, to the extent deducted from gross income.
5.23EFFECTIVE DATE.This section is effective for taxable years beginning after
5.24December 31, 2011.
5.25 Sec. 2. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19b, is
5.26amended to read:
5.27 Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
5.28and trusts, there shall be subtracted from federal taxable income:
5.29 (1) net interest income on obligations of any authority, commission, or
5.30instrumentality of the United States to the extent includable in taxable income for federal
5.31income tax purposes but exempt from state income tax under the laws of the United States;
5.32 (2) if included in federal taxable income, the amount of any overpayment of income
5.33tax to Minnesota or to any other state, for any previous taxable year, whether the amount
5.34is received as a refund or as a credit to another taxable year's income tax liability;
6.1(3) the amount paid to others, less the amount used to claim the credit allowed under
6.2section
290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
6.3to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
6.4transportation of each qualifying child in attending an elementary or secondary school
6.5situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
6.6resident of this state may legally fulfill the state's compulsory attendance laws, which
6.7is not operated for profit, and which adheres to the provisions of the Civil Rights Act
6.8of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
6.9tuition as defined in section
290.0674, subdivision 1, clause (1). As used in this clause,
6.10"textbooks" includes books and other instructional materials and equipment purchased
6.11or leased for use in elementary and secondary schools in teaching only those subjects
6.12legally and commonly taught in public elementary and secondary schools in this state.
6.13Equipment expenses qualifying for deduction includes expenses as defined and limited in
6.14section
290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
6.15books and materials used in the teaching of religious tenets, doctrines, or worship, the
6.16purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
6.17or materials for, or transportation to, extracurricular activities including sporting events,
6.18musical or dramatic events, speech activities, driver's education, or similar programs. No
6.19deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
6.20the qualifying child's vehicle to provide such transportation for a qualifying child. For
6.21purposes of the subtraction provided by this clause, "qualifying child" has the meaning
6.22given in section 32(c)(3) of the Internal Revenue Code;
6.23(4) income as provided under section
290.0802;
6.24(5) (3) to the extent included in federal adjusted gross income, income realized on
6.25disposition of property exempt from tax under section290.491 ;
6.26(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
6.27of the Internal Revenue Code in determining federal taxable income by an individual
6.28who does not itemize deductions for federal income tax purposes for the taxable year, an
6.29amount equal to 50 percent of the excess of charitable contributions over $500 allowable
6.30as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
6.31under the provisions of Public Law 109-1 and Public Law 111-126;
6.32(7) for individuals who are allowed a federal foreign tax credit for taxes that do not
6.33qualify for a credit under section
290.06, subdivision 22, an amount equal to the carryover
6.34of subnational foreign taxes for the taxable year, but not to exceed the total subnational
6.35foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
6.36"federal foreign tax credit" means the credit allowed under section 27 of the Internal
7.1Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
7.2under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
7.3the extent they exceed the federal foreign tax credit;
7.4(8) (4) in each of the five tax years immediately following the tax year in which an
7.5addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case
7.6of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
7.7of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
7.8the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or
7.9subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the
7.10positive value of any net operating loss under section 172 of the Internal Revenue Code
7.11generated for the tax year of the addition. The resulting delayed depreciation cannot be
7.12less than zero;
7.13(9) (5) job opportunity building zone income as provided under section
469.316 ;
7.14(10) to the extent included in federal taxable income, the amount of compensation
7.15paid to members of the Minnesota National Guard or other reserve components of the
7.16United States military for active service, excluding compensation for services performed
7.17under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
7.18service" means (i) state active service as defined in section
190.05, subdivision 5a, clause
7.19(1); or (ii) federally funded state active service as defined in section
190.05, subdivision
7.205b
, but "active service" excludes service performed in accordance with section
190.08,
7.21subdivision 3
;
7.22(11) to the extent included in federal taxable income, the amount of compensation
7.23paid to Minnesota residents who are members of the armed forces of the United States
7.24or United Nations for active duty performed under United States Code, title 10; or the
7.25authority of the United Nations;
7.26(12) an amount, not to exceed $10,000, equal to qualified expenses related to a
7.27qualified donor's donation, while living, of one or more of the qualified donor's organs
7.28to another person for human organ transplantation. For purposes of this clause, "organ"
7.29means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
7.30"human organ transplantation" means the medical procedure by which transfer of a human
7.31organ is made from the body of one person to the body of another person; "qualified
7.32expenses" means unreimbursed expenses for both the individual and the qualified donor
7.33for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
7.34may be subtracted under this clause only once; and "qualified donor" means the individual
7.35or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
8.1individual may claim the subtraction in this clause for each instance of organ donation for
8.2transplantation during the taxable year in which the qualified expenses occur;
8.3(13) (6) in each of the five tax years immediately following the tax year in which an
8.4addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a
8.5shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
8.6addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the
8.7case of a shareholder of a corporation that is an S corporation, minus the positive value of
8.8any net operating loss under section 172 of the Internal Revenue Code generated for the
8.9tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
8.10subtraction is not allowed under this clause;
8.11(14) (7) to the extent included in the federal taxable income of a nonresident of
8.12Minnesota, compensation paid to a service member as defined in United States Code, title
8.1310, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
8.14Act, Public Law 108-189, section 101(2);
8.15(15) (8) international economic development zone income as provided under section
8.16469.325
;
8.17(16) to the extent included in federal taxable income, the amount of national service
8.18educational awards received from the National Service Trust under United States Code,
8.19title 42, sections 12601 to 12604, for service in an approved Americorps National Service
8.20program;
8.21(17) (9) to the extent included in federal taxable income, discharge of indebtedness
8.22income resulting from reacquisition of business indebtedness included in federal taxable
8.23income under section 108(i) of the Internal Revenue Code. This subtraction applies only
8.24to the extent that the income was included in net income in a prior year as a result of the
8.25addition under section290.01, subdivision 19a , clause (16); and
8.26(18) (10) the amount of the net operating loss allowed under section
290.095,
8.27subdivision 11, paragraph (c).
8.28EFFECTIVE DATE.This section is effective for taxable years beginning after
8.29December 31, 2011.
8.30 Sec. 3. Minnesota Statutes 2011 Supplement, section 290.06, subdivision 2c, is
8.31amended to read:
8.32 Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income
8.33taxes imposed by this chapter upon married individuals filing joint returnsand, surviving
8.34spouses as defined in section 2(a) of the Internal Revenue Code, married individuals
8.35filing separate returns, estates, trusts, unmarried individuals, and unmarried individuals
9.1qualifying as a head of household as defined in section 2(b) of the Internal Revenue Code,
9.2must be computed by applying to their taxable net income thefollowing schedule of
9.3rates: rate of 5.96 percent.
9.4(1) On the first $25,680,
5.35 percent;
9.5(2) On all over $25,680, but not over $102,030,
7.05 percent;
9.6(3) On all over $102,030,
7.85 percent.
9.7Married individuals filing separate returns, estates, and trusts must compute their
9.8income tax by applying the above rates to their taxable income, except that the income
9.9brackets will be one-half of the above amounts.
9.10(b) The income taxes imposed by this chapter upon unmarried individuals must be
9.11computed by applying to taxable net income the following schedule of rates:
9.12(1) On the first $17,570,
5.35 percent;
9.13(2) On all over $17,570, but not over $57,710,
7.05 percent;
9.14(3) On all over $57,710,
7.85 percent.
9.15(c) The income taxes imposed by this chapter upon unmarried individuals qualifying
9.16as a head of household as defined in section 2(b) of the Internal Revenue Code must be
9.17computed by applying to taxable net income the following schedule of rates:
9.18(1) On the first $21,630,
5.35 percent;
9.19(2) On all over $21,630, but not over $86,910,
7.05 percent;
9.20(3) On all over $86,910,
7.85 percent.
9.21(d) (b) In lieu of a tax computed according to the rates set forth in this subdivision,
9.22the tax of any individual taxpayer whose taxable net income for the taxable year is less
9.23than an amount determined by the commissioner must be computed in accordance with
9.24tables prepared and issued by the commissioner of revenue based on income brackets of
9.25not more than $100. The amount of tax for each bracket shall be computed at the rates set
9.26forth in this subdivision, provided that the commissioner may disregard a fractional part of
9.27a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.
9.28(e) (c) An individual who is not a Minnesota resident for the entire year must
9.29compute the individual's Minnesota income tax as provided in this subdivision. After the
9.30application of the nonrefundable credits provided in this chapter, the tax liability must
9.31then be multiplied by a fraction in which:
9.32 (1) the numerator is the individual's Minnesota source federal adjusted gross income
9.33as defined in section 62 of the Internal Revenue Code and increased by the additions
9.34required under section290.01, subdivision 19a , clauses (1), (5), (6), (7), (8), (9), (12),
9.35(13), and (16) to (18), and reduced by the Minnesota assignable portion of the subtraction
9.36for United States government interest under section290.01, subdivision 19b , clause (1),
10.1and the subtractions under section290.01, subdivision 19b , clauses (8), (9), (13), (14) (4)
10.2to (10), (15), (17), and (18), after applying the allocation and assignability provisions of
10.3section290.081 , clause (a), or
290.17 ; and
10.4 (2) the denominator is the individual's federal adjusted gross income as defined in
10.5section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
10.6section290.01, subdivision 19a , clauses (1), (5), (6), (7), (8), (9), (12), (13), and (16) to
10.7(18), and reduced by the amounts specified in section290.01, subdivision 19b , clauses
10.8(1), (8), (9), (13), (14), (15), (17), and (18) and (4) to (10).
10.9EFFECTIVE DATE.This section is effective for taxable years beginning after
10.10December 31, 2011.
10.11 Sec. 4. Minnesota Statutes 2011 Supplement, section 290.0671, subdivision 1, is
10.12amended to read:
10.13 Subdivision 1. Credit allowed. (a) An individual is allowed a credit against the tax
10.14imposed by this chapter equal toa percentage of earned income. To receive a credit, a
10.15taxpayer must be 25 percent of the credit for which the individual is eligible for a credit
10.16under section 32 of the Internal Revenue Code.
10.17(b) For individuals with no qualifying children, the credit equals
1.9125 percent of
10.18the first $4,620 of earned income. The credit is reduced by
1.9125 percent of earned
10.19income or adjusted gross income, whichever is greater, in excess of $5,770, but in no
10.20case is the credit less than zero.
10.21(c) For individuals with one qualifying child, the credit equals 8.5 percent of the first
10.22$6,920 of earned income and 8.5 percent of earned income over $12,080 but less than
10.23$13,450. The credit is reduced by
5.73 percent of earned income or adjusted gross income,
10.24whichever is greater, in excess of $15,080, but in no case is the credit less than zero.
10.25(d) For individuals with two or more qualifying children, the credit equals ten
10.26percent of the first $9,720 of earned income and 20 percent of earned income over
10.27$14,860 but less than $16,800. The credit is reduced by 10.3 percent of earned income
10.28or adjusted gross income, whichever is greater, in excess of $17,890, but in no case is
10.29the credit less than zero.
10.30(e) (b) For a nonresident or part-year resident, the credit must be allocated based on
10.31the percentage calculated under section290.06, subdivision 2c , paragraph (e) (c).
10.32(f) (c) For a person who was a resident for the entire tax year and has earned income
10.33not subject to tax under this chapter, including income excluded under section290.01,
10.34subdivision 19b , clause (9) or (15) (5) or (8), the credit must be allocated based on the
10.35ratio of federal adjusted gross income reduced by the earned income not subject to tax
11.1under this chapter over federal adjusted gross income.For purposes of this paragraph, the
11.2subtractions for military pay under section
290.01, subdivision 19b, clauses (10) and (11),
11.3are not considered "earned income not subject to tax under this chapter."
11.4For the purposes of this paragraph, the exclusion of combat pay under section 112
11.5of the Internal Revenue Code is not considered "earned income not subject to tax under
11.6this chapter."
11.7(g) For tax years beginning after December 31, 2007, and before December 31,
11.82010, the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in
11.9paragraph (d), after being adjusted for inflation under subdivision 7, are each increased by
11.10$3,000 for married taxpayers filing joint returns. For tax years beginning after December
11.1131, 2008, the commissioner shall annually adjust the $3,000 by the percentage determined
11.12pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in
11.13section 1(f)(3)(B), the word "2007" shall be substituted for the word "1992." For 2009,
11.14the commissioner shall then determine the percent change from the 12 months ending on
11.15August 31, 2007, to the 12 months ending on August 31, 2008, and in each subsequent
11.16year, from the 12 months ending on August 31, 2007, to the 12 months ending on August
11.1731 of the year preceding the taxable year. The earned income thresholds as adjusted
11.18for inflation must be rounded to the nearest $10. If the amount ends in $5, the amount
11.19is rounded up to the nearest $10. The determination of the commissioner under this
11.20subdivision is not a rule under the Administrative Procedure Act.
11.21(h) For tax years beginning after December 31, 2010, and before January 1, 2012,
11.22the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph
11.23(d), after being adjusted for inflation under subdivision 7, are each increased by $5,000
11.24for married taxpayers filing joint returns. For tax years beginning after December 31,
11.252010, and before January 1, 2012, the commissioner shall annually adjust the $5,000
11.26by the percentage determined pursuant to the provisions of section 1(f) of the Internal
11.27Revenue Code, except that in section 1(f)(3)(B), the word "2008" shall be substituted for
11.28the word "1992." For 2011, the commissioner shall then determine the percent change
11.29from the 12 months ending on August 31, 2008, to the 12 months ending on August
11.3031, 2010. The earned income thresholds as adjusted for inflation must be rounded to
11.31the nearest $10. If the amount ends in $5, the amount is rounded up to the nearest $10.
11.32The determination of the commissioner under this subdivision is not a rule under the
11.33Administrative Procedure Act.
11.34(i) The commissioner shall construct tables showing the amount of the credit at
11.35various income levels and make them available to taxpayers. The tables shall follow
12.1the schedule contained in this subdivision, except that the commissioner may graduate
12.2the transition between income brackets.
12.3EFFECTIVE DATE.This section is effective for taxable years beginning after
12.4December 31, 2011.
12.5 Sec. 5. Minnesota Statutes 2010, section 290.091, subdivision 6, is amended to read:
12.6 Subd. 6. Credit for prior years' liability. (a) A credit is allowed against the tax
12.7imposed by this chapter on individuals, trusts, and estates equal to the minimum tax
12.8credit for the taxable year. The minimum tax credit equals the adjusted net minimum
12.9tax for taxable years beginning after December 31, 1988, reduced by the minimum tax
12.10credits allowed in a prior taxable year. The credit may not exceed the excess (if any) for
12.11the taxable year of
12.12(1) the regular tax, over
12.13(2) the greater of (i) the tentative alternative minimum tax, or (ii) zero.
12.14(b) The adjusted net minimum tax for a taxable year equals the lesser of the net
12.15minimum tax or the excess (if any) of
12.16(1) the tentative minimum tax, over
12.17(2) 6.4 percent of the sum of
12.18(i) adjusted gross income as defined in section 62 of the Internal Revenue Code,
12.19(ii) interest income as defined in section290.01, subdivision 19a , clause (1),
12.20(iii) interest on specified private activity bonds, as defined in section 57(a)(5) of the
12.21Internal Revenue Code, to the extent not included under clause (ii),
12.22(iv) depletion as defined in section 57(a)(1), determined without regard to the last
12.23sentence of paragraph (1), of the Internal Revenue Code, less
12.24(v) the deductions allowed in computing alternative minimum taxable income
12.25provided in subdivision 2, paragraph (a), clause (2) of the first series of clauses and clauses
12.26(1), (2), and (3) of the second series of clauses, and
12.27(vi) the exemption amount determined under subdivision 3.
12.28In the case of an individual who is not a Minnesota resident for the entire year,
12.29adjusted net minimum tax must be multiplied by the fraction defined in section290.06,
12.30subdivision 2c , paragraph (e). In the case of a trust or estate, adjusted net minimum tax
12.31must be multiplied by the fraction defined under subdivision 4, paragraph (b).
12.32(c) For tax years beginning after December 31, 2011, and before January 1, 2014, a
12.33credit is allowed against the tax imposed by this chapter on individuals, trusts, and estates
12.34equal to the minimum tax credit for the taxable year. The minimum tax credit equals the
12.35adjusted net minimum tax for taxable years beginning after December 31, 1988, and
13.1before January 1, 2012, reduced by the minimum tax credits allowed in a prior taxable
13.2year. The credit may not exceed the tax imposed by this chapter after the allowance of the
13.3credits in section 290.06, subdivisions 22, 22a, 28, 29, 30, and 31.
13.4EFFECTIVE DATE.This section is effective for taxable years beginning after
13.5December 31, 2011.
13.6 Sec. 6. REVISOR'S INSTRUCTION.
13.7(a) The revisor of statutes shall identify and correct internal cross-references affected
13.8by the amendments in sections 1, 2, and 3. The revisor may make changes necessary
13.9to correct the punctuation, grammar, or structure of the remaining text and preserve its
13.10meaning.
13.11(b) The revisor of statutes shall identify and correct internal cross-references to
13.12sections that are affected by section 7. The revisor may make changes necessary to correct
13.13the punctuation, grammar, or structure of the remaining text and preserve its meaning.
13.14EFFECTIVE DATE.This section is effective the day following final enactment.
13.15 Sec. 7. REPEALER.
13.16(a) Minnesota Statutes 2010, sections 290.067, subdivisions 1, 2, 2a, 2b, 3, and
13.174; 290.0672; 290.0674; 290.0675, subdivisions 2, 3, and 4; 290.0679; 290.0802; and
13.18290.091, subdivisions 1, 3, 4, and 5, and Minnesota Statutes 2011 Supplement, section
13.19290.0675, subdivision 1, are repealed.
13.20(b) Minnesota Statutes 2010, section 290.091, subdivision 6, and Minnesota Statutes
13.212011 Supplement, section 290.091, subdivision 2, are repealed.
13.22EFFECTIVE DATE.Paragraph (a) is effective for taxable years beginning after
13.23December 31, 2011, and paragraph (b) is effective for taxable years beginning after
13.24December 31, 2013.
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 2010, section 290.091, subdivision 6; Minnesota
1.6Statutes 2011 Supplement, sections 290.01, subdivisions 19a, 19b; 290.06,
1.7subdivision 2c; 290.0671, subdivision 1; repealing Minnesota Statutes 2010,
1.8sections 290.067, subdivisions 1, 2, 2a, 2b, 3, 4; 290.0672; 290.0674; 290.0675,
1.9subdivisions 2, 3, 4; 290.0679; 290.0802; 290.091, subdivisions 1, 3, 4, 5, 6;
1.10Minnesota Statutes 2011 Supplement, sections 290.0675, subdivision 1; 290.091,
1.11subdivision 2.
1.12BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.13 Section 1. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19a,
1.14is amended to read:
1.15 Subd. 19a. Additions to federal taxable income. For individuals, estates, and
1.16trusts, there shall be added to federal taxable income:
1.17 (1)(i) interest income on obligations of any state other than Minnesota or a political
1.18or governmental subdivision, municipality, or governmental agency or instrumentality
1.19of any state other than Minnesota exempt from federal income taxes under the Internal
1.20Revenue Code or any other federal statute; and
1.21 (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
1.22Code, except:
1.23(A) the portion of the exempt-interest dividends exempt from state taxation under
1.24the laws of the United States; and
1.25(B) the portion of the exempt-interest dividends derived from interest income
1.26on obligations of the state of Minnesota or its political or governmental subdivisions,
1.27municipalities, governmental agencies or instrumentalities, but only if the portion of the
2.1exempt-interest dividends from such Minnesota sources paid to all shareholders represents
2.295 percent or more of the exempt-interest dividends, including any dividends exempt
2.3under subitem (A), that are paid by the regulated investment company as defined in section
2.4851(a) of the Internal Revenue Code, or the fund of the regulated investment company as
2.5defined in section 851(g) of the Internal Revenue Code, making the payment; and
2.6 (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
2.7government described in section 7871(c) of the Internal Revenue Code shall be treated as
2.8interest income on obligations of the state in which the tribe is located;
2.9 (2) the amount of
2.10
2.11
2.12
2.13
2.14may not be more than the amount by which the itemized deductions as allowed under
2.15section 63(d) of the Internal Revenue Code exceeds the amount of the standard deduction
2.16as defined in section 63(c) of the Internal Revenue Code, disregarding the amounts
2.17allowed under sections 63(c)(1)(C) and 63(c)(1)(E) of the Internal Revenue Code, minus
2.18any addition that would have been required under clause
2.19claimed the standard deduction
2.20
2.21
2.22 (3) the capital gain amount of a lump-sum distribution to which the special tax under
2.23section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;
2.24 (4) the amount of income taxes paid or accrued within the taxable year under this
2.25chapter and taxes based on net income paid to any other state or any province or territory
2.26of Canada, to the extent allowed as a deduction in determining federal adjusted gross
2.27income. For the purpose of this paragraph, income taxes do not include the taxes imposed
2.28by sections
2.29 (5) the amount of expense, interest, or taxes disallowed pursuant to section
2.31allowed under subdivision 19b, clause (1);
2.32 (6) the amount of a partner's pro rata share of net income which does not flow
2.33through to the partner because the partnership elected to pay the tax on the income under
2.34section 6242(a)(2) of the Internal Revenue Code;
2.35 (7) 80 percent of the depreciation deduction allowed under section 168(k) of the
2.36Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
3.1in the taxable year generates a deduction for depreciation under section 168(k) and the
3.2activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
3.3the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
3.4limited to excess of the depreciation claimed by the activity under section 168(k) over the
3.5amount of the loss from the activity that is not allowed in the taxable year. In succeeding
3.6taxable years when the losses not allowed in the taxable year are allowed, the depreciation
3.7under section 168(k) is allowed;
3.8 (8) 80 percent of the amount by which the deduction allowed by section 179 of the
3.9Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
3.10Revenue Code of 1986, as amended through December 31, 2003;
3.11 (9) to the extent deducted in computing federal taxable income, the amount of the
3.12deduction allowable under section 199 of the Internal Revenue Code;
3.13 (10) for taxable years beginning before January 1, 2013, the exclusion allowed
3.14under section 139A of the Internal Revenue Code for federal subsidies for prescription
3.15drug plans;
3.16(11) the amount of expenses disallowed under section 290.10, subdivision 2;
3.17 (12) for taxable years beginning before January 1, 2010, the amount deducted for
3.18qualified tuition and related expenses under section 222 of the Internal Revenue Code, to
3.19the extent deducted from gross income;
3.20 (13) for taxable years beginning before January 1, 2010, the amount deducted for
3.21certain expenses of elementary and secondary school teachers under section 62(a)(2)(D)
3.22of the Internal Revenue Code, to the extent deducted from gross income;
3.23(14) the additional standard deduction for property taxes payable that is allowable
3.24under section 63(c)(1)(C) of the Internal Revenue Code;
3.25(15) the additional standard deduction for qualified motor vehicle sales taxes
3.26allowable under section 63(c)(1)(E) of the Internal Revenue Code;
3.27(16) discharge of indebtedness income resulting from reacquisition of business
3.28indebtedness and deferred under section 108(i) of the Internal Revenue Code;
3.29(17) the amount of unemployment compensation exempt from tax under section
3.3085(c) of the Internal Revenue Code;
3.31(18) changes to federal taxable income attributable to a net operating loss that the
3.32taxpayer elected to carry back for more than two years for federal purposes but for which
3.33the losses can be carried back for only two years under section
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
4.26
4.27
4.28
4.29after December 31, 2010, the amount of disallowed personal exemptions for taxpayers
4.30with federal adjusted gross income over the threshold amount:
4.31(i) the disallowed personal exemption amount is equal to the dollar amount of the
4.32personal exemptions claimed by the taxpayer in the computation of federal taxable income
4.33multiplied by the applicable percentage;
4.34(ii) "applicable percentage" means two percentage points for each $2,500 (or
4.35fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable
4.36year exceeds the threshold amount. In the case of a married individual filing a separate
5.1return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In
5.2no event shall the applicable percentage exceed 100 percent;
5.3(iii) the term "threshold amount" means:
5.4(A) $150,000 in the case of a joint return or a surviving spouse;
5.5(B) $125,000 in the case of a head of a household;
5.6(C) $100,000 in the case of an individual who is not married and who is not a
5.7surviving spouse or head of a household; and
5.8(D) $75,000 in the case of a married individual filing a separate return; and
5.9(iv) the thresholds shall be increased by an amount equal to:
5.10(A) such dollar amount, multiplied by
5.11(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
5.12Revenue Code for the calendar year in which the taxable year begins, by substituting
5.13"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof;
5.14
5.15for taxable years beginning after December 31, 2010, and before January 1, 2013, the
5.16difference between the standard deduction allowed under section 63(c) of the Internal
5.17Revenue Code and the standard deduction allowed for 2011 and 2012 under the Internal
5.18Revenue Code as amended through December 1, 2010
5.19(21) the amount deducted for moving expenses under section 62(a)(15) of the
5.20Internal Revenue Code, to the extent deducted from gross income; and
5.21(22) the amount deducted for interest on education loans under section 62(a)(17) of
5.22the Internal Revenue Code, to the extent deducted from gross income.
5.23EFFECTIVE DATE.This section is effective for taxable years beginning after
5.24December 31, 2011.
5.25 Sec. 2. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19b, is
5.26amended to read:
5.27 Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
5.28and trusts, there shall be subtracted from federal taxable income:
5.29 (1) net interest income on obligations of any authority, commission, or
5.30instrumentality of the United States to the extent includable in taxable income for federal
5.31income tax purposes but exempt from state income tax under the laws of the United States;
5.32 (2) if included in federal taxable income, the amount of any overpayment of income
5.33tax to Minnesota or to any other state, for any previous taxable year, whether the amount
5.34is received as a refund or as a credit to another taxable year's income tax liability;
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
6.20
6.21
6.22
6.23
6.24
6.25disposition of property exempt from tax under section
6.26
6.27
6.28
6.29
6.30
6.31
6.32
6.33
6.34
6.35
6.36
7.1
7.2
7.3
7.4
7.5addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case
7.6of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
7.7of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
7.8the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or
7.9subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the
7.10positive value of any net operating loss under section 172 of the Internal Revenue Code
7.11generated for the tax year of the addition. The resulting delayed depreciation cannot be
7.12less than zero;
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
7.33
7.34
7.35
8.1
8.2
8.3
8.4addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a
8.5shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
8.6addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the
8.7case of a shareholder of a corporation that is an S corporation, minus the positive value of
8.8any net operating loss under section 172 of the Internal Revenue Code generated for the
8.9tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
8.10subtraction is not allowed under this clause;
8.11
8.12Minnesota, compensation paid to a service member as defined in United States Code, title
8.1310, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
8.14Act, Public Law 108-189, section 101(2);
8.15
8.17
8.18
8.19
8.20
8.21
8.22income resulting from reacquisition of business indebtedness included in federal taxable
8.23income under section 108(i) of the Internal Revenue Code. This subtraction applies only
8.24to the extent that the income was included in net income in a prior year as a result of the
8.25addition under section
8.26
8.27subdivision
8.28EFFECTIVE DATE.This section is effective for taxable years beginning after
8.29December 31, 2011.
8.30 Sec. 3. Minnesota Statutes 2011 Supplement, section 290.06, subdivision 2c, is
8.31amended to read:
8.32 Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income
8.33taxes imposed by this chapter upon married individuals filing joint returns
8.34spouses as defined in section 2(a) of the Internal Revenue Code, married individuals
8.35filing separate returns, estates, trusts, unmarried individuals, and unmarried individuals
9.1qualifying as a head of household as defined in section 2(b) of the Internal Revenue Code,
9.2must be computed by applying to their taxable net income the
9.3
9.4
9.5
9.6
9.7
9.8
9.9
9.10
9.11
9.12
9.13
9.14
9.15
9.16
9.17
9.18
9.19
9.20
9.21
9.22the tax of any individual taxpayer whose taxable net income for the taxable year is less
9.23than an amount determined by the commissioner must be computed in accordance with
9.24tables prepared and issued by the commissioner of revenue based on income brackets of
9.25not more than $100. The amount of tax for each bracket shall be computed at the rates set
9.26forth in this subdivision, provided that the commissioner may disregard a fractional part of
9.27a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.
9.28
9.29compute the individual's Minnesota income tax as provided in this subdivision. After the
9.30application of the nonrefundable credits provided in this chapter, the tax liability must
9.31then be multiplied by a fraction in which:
9.32 (1) the numerator is the individual's Minnesota source federal adjusted gross income
9.33as defined in section 62 of the Internal Revenue Code and increased by the additions
9.34required under section
9.35(13), and (16) to (18), and reduced by the Minnesota assignable portion of the subtraction
9.36for United States government interest under section
10.1and the subtractions under section
10.2to (10), (15), (17), and (18), after applying the allocation and assignability provisions of
10.3section
10.4 (2) the denominator is the individual's federal adjusted gross income as defined in
10.5section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
10.6section
10.7(18), and reduced by the amounts specified in section
10.8(1)
10.9EFFECTIVE DATE.This section is effective for taxable years beginning after
10.10December 31, 2011.
10.11 Sec. 4. Minnesota Statutes 2011 Supplement, section 290.0671, subdivision 1, is
10.12amended to read:
10.13 Subdivision 1. Credit allowed. (a) An individual is allowed a credit against the tax
10.14imposed by this chapter equal to
10.15
10.16under section 32 of the Internal Revenue Code.
10.17
10.18
10.19
10.20
10.21
10.22
10.23
10.24
10.25
10.26
10.27
10.28
10.29
10.30
10.31the percentage calculated under section
10.32
10.33not subject to tax under this chapter, including income excluded under section
10.34subdivision 19b
10.35ratio of federal adjusted gross income reduced by the earned income not subject to tax
11.1under this chapter over federal adjusted gross income.
11.2
11.3
11.4For the purposes of this paragraph, the exclusion of combat pay under section 112
11.5of the Internal Revenue Code is not considered "earned income not subject to tax under
11.6this chapter."
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
11.27
11.28
11.29
11.30
11.31
11.32
11.33
11.34
11.35
12.1
12.2
12.3EFFECTIVE DATE.This section is effective for taxable years beginning after
12.4December 31, 2011.
12.5 Sec. 5. Minnesota Statutes 2010, section 290.091, subdivision 6, is amended to read:
12.6 Subd. 6. Credit for prior years' liability. (a) A credit is allowed against the tax
12.7imposed by this chapter on individuals, trusts, and estates equal to the minimum tax
12.8credit for the taxable year. The minimum tax credit equals the adjusted net minimum
12.9tax for taxable years beginning after December 31, 1988, reduced by the minimum tax
12.10credits allowed in a prior taxable year. The credit may not exceed the excess (if any) for
12.11the taxable year of
12.12(1) the regular tax, over
12.13(2) the greater of (i) the tentative alternative minimum tax, or (ii) zero.
12.14(b) The adjusted net minimum tax for a taxable year equals the lesser of the net
12.15minimum tax or the excess (if any) of
12.16(1) the tentative minimum tax, over
12.17(2) 6.4 percent of the sum of
12.18(i) adjusted gross income as defined in section 62 of the Internal Revenue Code,
12.19(ii) interest income as defined in section
12.20(iii) interest on specified private activity bonds, as defined in section 57(a)(5) of the
12.21Internal Revenue Code, to the extent not included under clause (ii),
12.22(iv) depletion as defined in section 57(a)(1), determined without regard to the last
12.23sentence of paragraph (1), of the Internal Revenue Code, less
12.24(v) the deductions allowed in computing alternative minimum taxable income
12.25provided in subdivision 2, paragraph (a), clause (2) of the first series of clauses and clauses
12.26(1), (2), and (3) of the second series of clauses, and
12.27(vi) the exemption amount determined under subdivision 3.
12.28In the case of an individual who is not a Minnesota resident for the entire year,
12.29adjusted net minimum tax must be multiplied by the fraction defined in section
12.30subdivision 2c
12.31must be multiplied by the fraction defined under subdivision 4, paragraph (b).
12.32(c) For tax years beginning after December 31, 2011, and before January 1, 2014, a
12.33credit is allowed against the tax imposed by this chapter on individuals, trusts, and estates
12.34equal to the minimum tax credit for the taxable year. The minimum tax credit equals the
12.35adjusted net minimum tax for taxable years beginning after December 31, 1988, and
13.1before January 1, 2012, reduced by the minimum tax credits allowed in a prior taxable
13.2year. The credit may not exceed the tax imposed by this chapter after the allowance of the
13.3credits in section 290.06, subdivisions 22, 22a, 28, 29, 30, and 31.
13.4EFFECTIVE DATE.This section is effective for taxable years beginning after
13.5December 31, 2011.
13.6 Sec. 6. REVISOR'S INSTRUCTION.
13.7(a) The revisor of statutes shall identify and correct internal cross-references affected
13.8by the amendments in sections 1, 2, and 3. The revisor may make changes necessary
13.9to correct the punctuation, grammar, or structure of the remaining text and preserve its
13.10meaning.
13.11(b) The revisor of statutes shall identify and correct internal cross-references to
13.12sections that are affected by section 7. The revisor may make changes necessary to correct
13.13the punctuation, grammar, or structure of the remaining text and preserve its meaning.
13.14EFFECTIVE DATE.This section is effective the day following final enactment.
13.15 Sec. 7. REPEALER.
13.16(a) Minnesota Statutes 2010, sections 290.067, subdivisions 1, 2, 2a, 2b, 3, and
13.174; 290.0672; 290.0674; 290.0675, subdivisions 2, 3, and 4; 290.0679; 290.0802; and
13.18290.091, subdivisions 1, 3, 4, and 5, and Minnesota Statutes 2011 Supplement, section
13.19290.0675, subdivision 1, are repealed.
13.20(b) Minnesota Statutes 2010, section 290.091, subdivision 6, and Minnesota Statutes
13.212011 Supplement, section 290.091, subdivision 2, are repealed.
13.22EFFECTIVE DATE.Paragraph (a) is effective for taxable years beginning after
13.23December 31, 2011, and paragraph (b) is effective for taxable years beginning after
13.24December 31, 2013.
