HF 2588

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; allowing single sales 
  1.3             apportionment under the corporate franchise tax; 
  1.4             amending Minnesota Statutes 2002, section 290.191, 
  1.5             subdivision 4. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 290.191, 
  1.8   subdivision 4, is amended to read: 
  1.9      Subd. 4.  [OPTIONAL APPORTIONMENT FORMULA FOR CERTAIN MAIL 
  1.10  ORDER BUSINESSES.] If the business of a corporation, 
  1.11  partnership, or proprietorship consists exclusively of the 
  1.12  selling of tangible personal property and services at retail, as 
  1.13  defined in section 297A.61, subdivision 4, paragraph (a), in 
  1.14  response to orders received by United States mail, telephone, 
  1.15  facsimile, or other electronic media, and 99 percent of the 
  1.16  taxpayer's property and payroll is within Minnesota, 
  1.17  then Notwithstanding subdivisions 2 and 3, upon filing its 
  1.18  original tax return, the taxpayer may make an irrevocable 
  1.19  election to apportion net income to Minnesota based solely upon 
  1.20  the percentage that the sales made within this state in 
  1.21  connection with its trade or business during the tax period are 
  1.22  of the total sales wherever made in connection with the trade or 
  1.23  business during the tax period.  Property and payroll factors 
  1.24  are disregarded.  In determining eligibility for this 
  1.25  subdivision:  
  2.1      (1) the sale not in the ordinary course of business of 
  2.2   tangible or intangible assets used in conducting business 
  2.3   activities must be disregarded; and 
  2.4      (2) property and payroll at a distribution center outside 
  2.5   of Minnesota are disregarded if the sole activity at the 
  2.6   distribution center is the filling of orders, and no 
  2.7   solicitation of orders occurs at the distribution center. 
  2.8      [EFFECTIVE DATE.] This section is effective for taxable 
  2.9   years beginning after December 31, 2003.