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HF 2277

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

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to state finance; establishing a capital gains volatility reduction account;
directing the commissioner of finance to adjust amounts in the account based on
forecasts of individual income tax revenue resulting from taxation of capital
gains income in comparison to a five-year average; amending Minnesota Statutes
2008, section 16A.152, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2008, section 16A.152, is amended by adding a
subdivision to read:


new text begin Subd. 8. new text end

new text begin Capital gains volatility reduction account. new text end

new text begin (a) A capital gains volatility
reduction account is created in the general fund.
new text end

new text begin (b) Beginning with the November 2009 economic forecast and for each subsequent
economic forecast, the commissioner of finance, in consultation with the commissioner of
revenue, shall estimate:
new text end

new text begin (1) the percentage of individual income tax revenues resulting from taxation of
capital gains income for each fiscal year in the current biennium and the next biennium;
new text end

new text begin (2) the percentage of individual income tax revenues resulting from taxation of
capital gains income in each of the preceding five fiscal years; and
new text end

new text begin (3) the average percentage of individual income revenues resulting from taxation of
capital gains income over the preceding five fiscal years.
new text end

new text begin (c) If the commissioner estimates that the percentage of individual income tax
revenues resulting from taxation of capital gains income in any fiscal year in the current
biennium or the next biennium exceeds the average percentage over the preceding five
fiscal years, then the commissioner must transfer to the capital gains volatility account the
following amount, to the extent it is greater than $5,000,000:
new text end

new text begin (1) the percentage of individual income tax revenues resulting from taxation of
capital gains income in the fiscal year, minus
new text end

new text begin (2) the average percentage of individual income revenues resulting from taxation of
capital gains income over the preceding five fiscal years, multiplied by
new text end

new text begin (3) individual income tax revenues in the fiscal year.
new text end

new text begin (d) If the commissioner estimates that the percentage of individual income tax
revenues resulting from taxation of capital gains income in any fiscal year in the current
biennium or the next biennium is less than the average percentage over the preceding five
fiscal years, then the commissioner must transfer from the capital gains volatility account
to the general fund the following amount, to the extent it is available and is greater than
$5,000,000:
new text end

new text begin (1) the average percentage of individual income revenues resulting from taxation of
capital gains income over the preceding five fiscal years, minus
new text end

new text begin (2) the percentage of individual income tax revenues resulting from taxation of
capital gains income in the fiscal year, multiplied by
new text end

new text begin (3) individual income tax revenues in the fiscal year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end