HF 1021

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/11/2021 02:44pm

A bill for an act
relating to taxation; establishing a Minnesota wealth tax; proposing coding for
new law in Minnesota Statutes, chapter 290.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [290.055] WEALTH TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
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new text begin (b) "Pass-through entity" has the meaning given in section 291.005, subdivision 1.
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new text begin (c) "Situs of property" means, with respect to:
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new text begin (1) real property, the state or country in which it is located;
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new text begin (2) tangible personal property, the state or country in which it is normally kept or located;
and
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new text begin (3) intangible personal property, the state or country in which an individual taxpayer is
domiciled or the state of which a trust is a resident.
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new text begin For a nonresident taxpayer with an ownership interest in a pass-through entity with assets
that include real or tangible personal property, situs of the real or tangible personal property,
is determined as if the pass-through entity does not exist and the real or tangible personal
property is personally owned by the taxpayer. If the pass-through entity is owned by a person
or persons in addition to the taxpayer, ownership of the property is attributed to the taxpayer
in proportion to the taxpayer's capital ownership share of the pass-through entity.
new text end

new text begin (d) "Taxable wealth" means:
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new text begin (1) the value of all of a taxpayer's property, real or personal, tangible or intangible, but
excluding property with a situs outside of Minnesota; minus
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new text begin (2) the sum of all debts and financial obligations owed by the taxpayer.
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new text begin The value of a taxpayer's property shall be calculated in the same manner as the value of a
gross estate under section 2031 of the Internal Revenue Code.
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new text begin Subd. 2. new text end

new text begin Tax imposed. new text end

new text begin A tax is annually imposed equal to 2 percent of the taxable wealth
of an individual or trust in excess of $30,000,000.
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new text begin Subd. 3. new text end

new text begin Taxes imposed are in addition to other taxes. new text end

new text begin The tax imposed under this
section is in addition to the tax imposed under chapter 291, section 289A.08, subdivision
7, and any other tax imposed by this chapter.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2019.
new text end