HF 703

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; corporate franchise; adopting a 
  1.3             single factor sales apportionment; amending Minnesota 
  1.4             Statutes 1998, section 290.191, subdivision 2; 
  1.5             repealing Minnesota Statutes 1998, section 290.191, 
  1.6             subdivision 4. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 290.191, 
  1.9   subdivision 2, is amended to read: 
  1.10     Subd. 2.  [APPORTIONMENT FORMULA OF GENERAL APPLICATION.] 
  1.11  Except for those trades or businesses required to use a 
  1.12  different formula under subdivision 3 or section 290.35 or 
  1.13  290.36, and for those trades or businesses that receive 
  1.14  permission to use some other method under section 290.20 or 
  1.15  under subdivision 4, a trade or business required to apportion 
  1.16  its net income must apportion its income to this state on the 
  1.17  basis of the percentage obtained by taking the sum of:  
  1.18     (1) 70 percent of the percentage which the sales made 
  1.19  within this state in connection with the trade or business 
  1.20  during the tax period are of the total sales wherever made in 
  1.21  connection with the trade or business during the tax period; 
  1.22     (2) 15 percent of the percentage which the total tangible 
  1.23  property used by the taxpayer in this state in connection with 
  1.24  the trade or business during the tax period is of the total 
  1.25  tangible property, wherever located, used by the taxpayer in 
  1.26  connection with the trade or business during the tax period; and 
  2.1      (3) 15 percent of the percentage which the taxpayer's total 
  2.2   payrolls paid or incurred in this state or paid in respect to 
  2.3   labor performed in this state in connection with the trade or 
  2.4   business during the tax period are of the taxpayer's total 
  2.5   payrolls paid or incurred in connection with the trade or 
  2.6   business during the tax period.  
  2.7      Sec. 2.  [REPEALER.] 
  2.8      Minnesota Statutes 1998, section 290.191, subdivision 4, is 
  2.9   repealed. 
  2.10     Sec. 3.  [EFFECTIVE DATE.] 
  2.11     Sections 1 and 2 are effective for taxable years beginning 
  2.12  after December 31, 1998.