HF 2348

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; providing an automatic income 
  1.3             tax rebate to taxpayers; appropriating money; 
  1.4             proposing coding for new law in Minnesota Statutes, 
  1.5             chapter 16A; repealing Minnesota Statutes 1998, 
  1.6             section 16A.152, subdivision 2. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [16A.1523] [AUTOMATIC INCOME TAX REBATE.] 
  1.9      Subdivision 1.  [STATEMENT OF PURPOSE.] This section is 
  1.10  intended to require that 80 percent of any positive unrestricted 
  1.11  budgetary general fund balance in excess of one-half of one 
  1.12  percent of total general fund biennial revenues at the close of 
  1.13  the biennium be automatically returned to the taxpayers of 
  1.14  Minnesota in the form of an income tax rebate, payable at the 
  1.15  end of the budget period. 
  1.16     Subd. 2.  [DETERMINATION OF AMOUNT AVAILABLE FOR 
  1.17  REBATE.] (a) If on the basis of a forecast of general fund 
  1.18  revenues and expenditures in November of an even-numbered year 
  1.19  or February of an odd-numbered year, the commissioner of finance 
  1.20  projects that there will be a positive unrestricted budgetary 
  1.21  general fund balance at the close of the biennium that exceeds 
  1.22  one-half of one percent of total general fund biennial revenues, 
  1.23  the commissioner of finance shall designate 80 percent of the 
  1.24  balance as available for rebate to the taxpayers of Minnesota.  
  1.25  The remaining 20 percent of the balance shall be deposited into 
  1.26  the tax reform account as provided in subdivision 7. 
  2.1      (b) By July 15 of each odd-numbered year, the commissioner 
  2.2   of finance shall certify to the commissioner of revenue the 
  2.3   amount of revenues available for rebate as determined by 
  2.4   preliminary June 30 end-of-year fiscal analysis. 
  2.5      Subd. 3.  [METHOD OF REBATE.] If the commissioner of 
  2.6   finance, under subdivision 1, designates an amount for rebate in 
  2.7   either forecast, then the amount shall be paid to individual 
  2.8   income taxpayers of Minnesota in a percentage of prior year 
  2.9   individual income tax liability.  The commissioner of finance 
  2.10  shall determine and certify to the commissioner of revenue, the 
  2.11  percentage to be used to calculate rebates.  
  2.12     Subd. 4.  [DETERMINATION OF PERCENTAGE.] The percentage 
  2.13  used to calculate rebates shall equal the total amount 
  2.14  designated as available for rebate, divided by the total 
  2.15  individual income tax liability for all individual income 
  2.16  taxpayers in Minnesota, for the most recent, preceding tax year 
  2.17  in which the excess is determined.  The commissioner of finance 
  2.18  shall calculate the percentage to the nearest one-hundredth of a 
  2.19  percent. 
  2.20     Subd. 5.  [DETERMINATION OF REBATE.] To calculate the 
  2.21  amount of the payment to be made to the taxpayer, the 
  2.22  commissioner of revenue shall multiply the percentage determined 
  2.23  under subdivision 4, by the total amount of an individual income 
  2.24  taxpayer's tax liability for the most recent, preceding tax year 
  2.25  in which the excess is determined.  For purposes of this 
  2.26  section, income tax liability means the liability for tax 
  2.27  computed under sections 290.01 and 290.06, and before 
  2.28  subtraction of the credits in sections 290.067 and 290.0671. 
  2.29     Subd. 6.  [PAYMENT OF REBATE.] (a) The commissioner shall 
  2.30  mail the payment described under this section to eligible 
  2.31  individual income taxpayers.  Payments must begin no later than 
  2.32  August 15 of the odd-numbered year.  No payment shall be made to 
  2.33  a taxpayer if, after making the calculation in paragraph (c), 
  2.34  the amount calculated is less than $5. 
  2.35     (b) For returns filed after July 1 of the odd-numbered 
  2.36  year, the commissioner may allow the income tax rebate as a 
  3.1   credit against the tax imposed.  The rebate may not be used to 
  3.2   offset any interest and penalties resulting from underpayment of 
  3.3   estimated tax for prior taxable years. 
  3.4      (c) Individuals who filed a joint return must receive a 
  3.5   joint rebate.  After the rebate has been issued, but before the 
  3.6   check has been cashed, either joint claimant may request a 
  3.7   separate check for one-half of the rebate. 
  3.8      Subd. 7.  [DEPOSITS TO TAX REFORM ACCOUNT.] (a) The 
  3.9   remaining 20 percent of the balance determined under subdivision 
  3.10  1, not available for rebate to the taxpayers of Minnesota, shall 
  3.11  be deposited into the tax relief account established in section 
  3.12  16A.1521. 
  3.13     (b) Any remaining balance of the amount designated as 
  3.14  available for rebate, not available to taxpayers as provided in 
  3.15  subdivision 6, paragraph (a), shall be deposited into the tax 
  3.16  relief account established in section 16A.1521. 
  3.17     (c) If the amount of a positive unrestricted budgetary 
  3.18  general fund balance existing on June 30 of an odd-numbered year 
  3.19  is less than one-half of one percent of the total general fund 
  3.20  biennial revenues, the total amount of the positive balance 
  3.21  shall be deposited into the tax reform account established in 
  3.22  section 16A.1521. 
  3.23     Subd. 8.  [APPLICATION OF OTHER LAWS.] (a) The rebate 
  3.24  provided by this section is a "Minnesota tax law" for purposes 
  3.25  of section 270B.01, subdivision 8. 
  3.26     (b) The rebate is a refund subject to revenue recapture 
  3.27  under chapter 270A.  The commissioner of revenue shall remit the 
  3.28  entire refund to the claimant agency, which shall, upon the 
  3.29  request of the spouse who does not owe the debt, refund one-half 
  3.30  of a joint rebate to the spouse who does not owe the debt. 
  3.31     (c) The rebate is "an overpayment of any tax collected by 
  3.32  the commissioner" for purposes of section 270.07, subdivision 
  3.33  5.  For purposes of this paragraph, a joint rebate is payable to 
  3.34  each spouse equally. 
  3.35     Subd. 9.  [APPROPRIATION.] Amounts certified for rebate by 
  3.36  the commissioner of finance are appropriated from the general 
  4.1   fund to the commissioner of revenue for the sole purpose of 
  4.2   making the payments required by this section. 
  4.3      Sec. 2.  [REPEALER.] 
  4.4      Minnesota Statutes 1998, section 16A.152, subdivision 2, is 
  4.5   repealed. 
  4.6      Sec. 3.  [EFFECTIVE DATE.] 
  4.7      Sections 1 and 2 are effective September 1, 1999.