HF 2079

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:58am

A bill for an act
relating to taxation; individual income; imposing a progressive surtax; amending
Minnesota Statutes 2008, section 290.06, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2008, section 290.06, is amended by adding a
subdivision to read:

new text begin Subd. 2g. new text end

new text begin Income surtax. new text end

new text begin (a) In addition to the tax computed under subdivision
2c and section 290.091, there is a surtax imposed on individuals, estates, and trusts. The
surtax is computed by applying the following rates to the tax computed under subdivision
2c and section 290.091:
new text end

new text begin (1) for taxpayers with adjusted gross income for the taxable year less than $30,000,
six percent;
new text end

new text begin (2) for taxpayers with adjusted gross income of at least $30,000 but not more than
$80,000, eight percent;
new text end

new text begin (3) for taxpayers with adjusted gross income of at least $80,000 but not more than
$250,000, ten percent; and
new text end

new text begin (4) for taxpayers with adjusted gross income of at least $250,000, 12 percent.
new text end

new text begin (b) For purposes of this section, "adjusted gross income" has the meaning given in
section 62 of the Internal Revenue Code.
new text end

new text begin (c) The adjusted gross income thresholds in paragraph (a) must be adjusted for
inflation. For tax years beginning after December 31, 2009, the commissioner shall
annually adjust the adjusted gross income thresholds by the percentage determined
pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in
section 1(f)(3)(B) of the Internal Revenue Code, the word "2008" shall be substituted for
the word "1992." For 2010, the commissioner shall then determine the percent change
from the 12 months ending on August 31, 2008, to the 12 months ending on August 31,
2009, and in each subsequent year, from the 12 months ending on August 31, 2008, to
the 12 months ending on August 31 of the year preceding the taxable year. The adjusted
gross income thresholds as adjusted for inflation must be rounded to the nearest $10. If the
amount ends in $5, the amount is rounded up to the nearest $10. The determination of the
commissioner under this subdivision is not a rule under the Administrative Procedure Act.
new text end

new text begin (d) On October 1, 2011, the commissioner of finance shall determine the amount of
the state's unrestricted general fund balance at the close of the 2010-2011 biennium. If this
amount is more than $700,000,000, the commissioner shall reduce the rate of the surtax in
effect for taxable years beginning after December 31, 2010, and before January 1, 2012,
so that the amount of revenue raised by the surtax results in a fund balance of no more
than $700,000,000, provided that the rate so determined shall be rounded upward to the
next one-tenth of one percent and no adjustment shall be required if the change in the rate
of the surtax would be less than one-tenth of one percent.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2008.
new text end