HF 2923

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; expanding eligibility for the 
  1.3             sales tax rebates to certain dependents and 
  1.4             individuals over age 65; extending certain dates 
  1.5             relating to the sales tax rebate; appropriating money; 
  1.6             amending Laws 1999, chapter 243, article 1, section 2. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Laws 1999, chapter 243, article 1, section 2, 
  1.9   is amended to read: 
  1.10     Sec. 2.  [SALES TAX REBATE.] 
  1.11     (a) An individual who: 
  1.12     (1) was eligible for a credit under Laws 1997, chapter 231, 
  1.13  article 1, section 16, as amended by Laws 1997, First Special 
  1.14  Session chapter 5, section 35, and Laws 1997, Third Special 
  1.15  Session chapter 3, section 11, and Laws 1998, chapter 304, and 
  1.16  Laws 1998, chapter 389, article 1, section 3, and who filed for 
  1.17  or received that credit on or before June 15, 1999 2000; or 
  1.18     (2) filed a 1997 Minnesota income tax return on or before 
  1.19  June 15, 1999 2000, and had a tax liability before refundable 
  1.20  credits on that return of at least $1 but did not file the claim 
  1.21  for credit authorized under Laws 1997, chapter 231, article 1, 
  1.22  section 16, as amended, and who was not allowed to be claimed as 
  1.23  a dependent on a 1997 federal income tax return filed by another 
  1.24  person; or 
  1.25     (3) had the property taxes payable on his or her homestead 
  1.26  abated to zero under Laws 1997, chapter 231, article 2, section 
  2.1   64, 
  2.2   shall receive a sales tax rebate. 
  2.3      (b) The sales tax rebate for taxpayers who qualify under 
  2.4   paragraph (a) as married filing joint or head of household must 
  2.5   be computed according to the following schedule: 
  2.6        Income                             Sales Tax Rebate
  2.7    less than $2,500                              $  358
  2.8    at least $2,500 but less than $5,000          $  469
  2.9    at least $5,000 but less than $10,000         $  502
  2.10   at least $10,000 but less than $15,000        $  549
  2.11   at least $15,000 but less than $20,000        $  604
  2.12   at least $20,000 but less than $25,000        $  641
  2.13   at least $25,000 but less than $30,000        $  690
  2.14   at least $30,000 but less than $35,000        $  762
  2.15   at least $35,000 but less than $40,000        $  820
  2.16   at least $40,000 but less than $45,000        $  874
  2.17   at least $45,000 but less than $50,000        $  921
  2.18   at least $50,000 but less than $60,000        $  969
  2.19   at least $60,000 but less than $70,000        $1,071
  2.20   at least $70,000 but less than $80,000        $1,162
  2.21   at least $80,000 but less than $90,000        $1,276
  2.22   at least $90,000 but less than $100,000       $1,417
  2.23   at least $100,000 but less than $120,000      $1,535
  2.24   at least $120,000 but less than $140,000      $1,682
  2.25   at least $140,000 but less than $160,000      $1,818
  2.26   at least $160,000 but less than $180,000      $1,946
  2.27   at least $180,000 but less than $200,000      $2,067
  2.28   at least $200,000 but less than $400,000      $2,644
  2.29   at least $400,000 but less than $600,000      $3,479
  2.30   at least $600,000 but less than $800,000      $4,175
  2.31   at least $800,000 but less than $1,000,000    $4,785
  2.32   $1,000,000 and over                           $5,000
  2.33     (c) The sales tax rebate for individuals who qualify under 
  2.34  paragraph (a) as single or married filing separately must be 
  2.35  computed according to the following schedule: 
  2.36        Income                                 Sales Tax Rebate
  3.1    less than $2,500                              $  204
  3.2    at least $2,500 but less than $5,000          $  249
  3.3    at least $5,000 but less than $10,000         $  299
  3.4    at least $10,000 but less than $15,000        $  408
  3.5    at least $15,000 but less than $20,000        $  464
  3.6    at least $20,000 but less than $25,000        $  496
  3.7    at least $25,000 but less than $30,000        $  515
  3.8    at least $30,000 but less than $40,000        $  570
  3.9    at least $40,000 but less than $50,000        $  649
  3.10   at least $50,000 but less than $70,000        $  776
  3.11   at least $70,000 but less than $100,000       $  958
  3.12   at least $100,000 but less than $140,000      $1,154
  3.13   at least $140,000 but less than $200,000      $1,394
  3.14   at least $200,000 but less than $400,000      $1,889
  3.15   at least $400,000 but less than $600,000      $2,485
  3.16   $600,000 and over                             $2,500
  3.17     (d) Individuals who were not residents of Minnesota for any 
  3.18  part of 1997 and who paid more than $10 in Minnesota sales tax 
  3.19  on nonbusiness consumer purchases in that year qualify for a 
  3.20  rebate under this paragraph only.  Qualifying nonresidents must 
  3.21  file a claim for rebate on a form prescribed by the commissioner 
  3.22  before the later of June 15, 1999 2000, or 30 days after the 
  3.23  date of enactment of this act.  The claim must include receipts 
  3.24  showing the Minnesota sales tax paid and the date of the sale.  
  3.25  Taxes paid on purchases allowed in the computation of federal 
  3.26  taxable income or reimbursed by an employer are not eligible for 
  3.27  the rebate.  The commissioner shall determine the qualifying 
  3.28  taxes paid and rebate the lesser of: 
  3.29     (1) 69.0 percent of that amount; or 
  3.30     (2) the maximum amount for which the claimant would have 
  3.31  been eligible as determined under paragraph (b) if the taxpayer 
  3.32  filed the 1997 federal income tax return as a married taxpayer 
  3.33  filing jointly or head of household, or as determined under 
  3.34  paragraph (c) for other taxpayers. 
  3.35     (e) "Income," for purposes of this section other than 
  3.36  paragraph (d), is taxable income as defined in section 63 of the 
  4.1   Internal Revenue Code of 1986, as amended through December 31, 
  4.2   1996, plus the sum of any additions to federal taxable income 
  4.3   for the taxpayer under Minnesota Statutes, section 290.01, 
  4.4   subdivision 19a, and reported on the original 1997 income tax 
  4.5   return including subsequent adjustments to that return made 
  4.6   within the time limits specified in paragraph (h).  For an 
  4.7   individual who was a resident of Minnesota for less than the 
  4.8   entire year, the sales tax rebate equals the sales tax rebate 
  4.9   calculated under paragraph (b) or (c) multiplied by the 
  4.10  percentage determined pursuant to Minnesota Statutes, section 
  4.11  290.06, subdivision 2c, paragraph (e), as calculated on the 
  4.12  original 1997 income tax return including subsequent adjustments 
  4.13  to that return made within the time limits specified in 
  4.14  paragraph (h).  For purposes of paragraph (d), "income" is 
  4.15  taxable income as defined in section 63 of the Internal Revenue 
  4.16  Code of 1986, as amended through December 31, 1996, and reported 
  4.17  on the taxpayer's original federal tax return for the first 
  4.18  taxable year beginning after December 31, 1996. 
  4.19     (f) Before payment, the commissioner of revenue shall 
  4.20  adjust the rebate as follows: 
  4.21     (1) the rebates calculated in paragraphs (b), (c), and (d) 
  4.22  must be proportionately reduced to account for 1997 income tax 
  4.23  returns that are filed on or after January 1, 1999, but before 
  4.24  July 1, 1999, so that the amount of sales tax rebates payable 
  4.25  under paragraphs (b), (c), and (d) does not exceed 
  4.26  $1,250,000,000; and 
  4.27     (2) the commissioner of finance shall certify by July 15, 
  4.28  1999, preliminary fiscal year 1999 general fund net nondedicated 
  4.29  revenues.  The certification shall exclude the impact of any 
  4.30  legislation enacted during the 1999 regular session.  If 
  4.31  certified net nondedicated revenues exceed the amount forecast 
  4.32  in February 1999, up to $50,000,000 of the increase shall be 
  4.33  added to the total amount rebated.  The commissioner of revenue 
  4.34  shall adjust all rebates proportionally to reflect any 
  4.35  increases.  The total amount of the rebate shall not exceed 
  4.36  $1,300,000,000. 
  5.1   The adjustments under this paragraph are not rules subject to 
  5.2   Minnesota Statutes, chapter 14. 
  5.3      (g) The commissioner of revenue may begin making sales tax 
  5.4   rebates by August 1, 1999.  Sales tax rebates not paid by 
  5.5   October 1, 1999, bear interest at the rate specified in 
  5.6   Minnesota Statutes, section 270.75.  Sales tax rebates paid to 
  5.7   (1) taxpayers who file their original 1997 Minnesota income tax 
  5.8   return after June 15, 1999, (2) individuals qualifying under 
  5.9   paragraph (s) or (t), and (3) qualifying nonresidents who file a 
  5.10  claim for rebate after June 15, 1999, bear interest at the rate 
  5.11  specified in Minnesota Statutes, section 270.75, beginning 
  5.12  October 1, 2000. 
  5.13     (h) A sales tax rebate shall not be adjusted based on 
  5.14  changes to a 1997 income tax return that are made by order of 
  5.15  assessment after June 15, 1999, or made by the taxpayer that are 
  5.16  filed with the commissioner of revenue after June 15, 1999. 
  5.17     (i) Individuals who filed a joint income tax return for 
  5.18  1997 shall receive a joint sales tax rebate.  After the sales 
  5.19  tax rebate has been issued, but before the check has been 
  5.20  cashed, either joint claimant may request a separate check for 
  5.21  one-half of the joint sales tax rebate.  Notwithstanding 
  5.22  anything in this section to the contrary, if prior to payment, 
  5.23  the commissioner has been notified that persons who filed a 
  5.24  joint 1997 income tax return are living at separate addresses, 
  5.25  as indicated on their 1998 income tax return or otherwise, the 
  5.26  commissioner may issue separate checks to each person.  The 
  5.27  amount payable to each person is one-half of the total joint 
  5.28  rebate. 
  5.29     (j) The sales tax rebate is a "Minnesota tax law" for 
  5.30  purposes of Minnesota Statutes, section 270B.01, subdivision 8. 
  5.31     (k) The sales tax rebate is "an overpayment of any tax 
  5.32  collected by the commissioner" for purposes of Minnesota 
  5.33  Statutes, section 270.07, subdivision 5.  For purposes of this 
  5.34  paragraph, a joint sales tax rebate is payable to each spouse 
  5.35  equally. 
  5.36     (l) If the commissioner of revenue cannot locate an 
  6.1   individual entitled to a sales tax rebate by July 1, 2001, or if 
  6.2   an individual to whom a sales tax rebate was issued has not 
  6.3   cashed the check by July 1, 2001, the right to the sales tax 
  6.4   rebate lapses and the check must be deposited in the general 
  6.5   fund. 
  6.6      (m) Individuals entitled to a sales tax rebate pursuant to 
  6.7   paragraph (a), but who did not receive one, and individuals who 
  6.8   receive a sales tax rebate that was not correctly computed, must 
  6.9   file a claim with the commissioner before July 1, 2000, in a 
  6.10  form prescribed by the commissioner.  Taxpayers who file their 
  6.11  original 1997 Minnesota income tax return after June 15, 1999, 
  6.12  and qualifying nonresidents who file a claim for rebate after 
  6.13  June 15, 1999, and who do not receive it or who receive a sales 
  6.14  tax rebate that was not correctly computed, must file a claim 
  6.15  with the commissioner before July 1, 2001, in a form prescribed 
  6.16  by the commissioner.  These claims must be treated as if they 
  6.17  are a claim for refund under Minnesota Statutes, section 
  6.18  289A.50, subdivisions 4 and 7. 
  6.19     (n) The sales tax rebate is a refund subject to revenue 
  6.20  recapture under Minnesota Statutes, chapter 270A.  The 
  6.21  commissioner of revenue shall remit the entire refund to the 
  6.22  claimant agency, which shall, upon the request of the spouse who 
  6.23  does not owe the debt, refund one-half of the joint sales tax 
  6.24  rebate to the spouse who does not owe the debt. 
  6.25     (o) The rebate is a reduction of fiscal year 1999 sales tax 
  6.26  revenues.  The amount necessary to make the sales tax rebates 
  6.27  and interest provided in this section is appropriated from the 
  6.28  general fund to the commissioner of revenue in fiscal year 1999 
  6.29  and is available until June 30, 2001. 
  6.30     (p) If a sales tax rebate check is cashed by someone other 
  6.31  than the payee or payees of the check, and the commissioner of 
  6.32  revenue determines that the check has been forged or improperly 
  6.33  endorsed, the commissioner may issue an order of assessment for 
  6.34  the amount of the check against the person or persons cashing 
  6.35  it.  The assessment must be made within two years after the 
  6.36  check is cashed, but if cashing the check constitutes theft 
  7.1   under Minnesota Statutes, section 609.52, or forgery under 
  7.2   Minnesota Statutes, section 609.631, the assessment can be made 
  7.3   at any time.  The assessment may be appealed administratively 
  7.4   and judicially.  The commissioner may take action to collect the 
  7.5   assessment in the same manner as provided by Minnesota Statutes, 
  7.6   chapter 289A, for any other order of the commissioner assessing 
  7.7   tax. 
  7.8      (q) Notwithstanding Minnesota Statutes, sections 9.031, 
  7.9   16A.40, 16B.49, 16B.50, and any other law to the contrary, the 
  7.10  commissioner of revenue may take whatever actions the 
  7.11  commissioner deems necessary to pay the rebates required by this 
  7.12  section, and may, in consultation with the commissioner of 
  7.13  finance and the state treasurer, contract with a private vendor 
  7.14  or vendors to process, print, and mail the rebate checks or 
  7.15  warrants required under this section and receive and disburse 
  7.16  state funds to pay those checks or warrants. 
  7.17     (r) The commissioner may pay rebates required by this 
  7.18  section by electronic funds transfer to individuals who 
  7.19  requested that their 1998 individual income tax refund be paid 
  7.20  through electronic funds transfer.  The commissioner may make 
  7.21  the electronic funds transfer payments to the same financial 
  7.22  institution and into the same account as the 1998 individual 
  7.23  income tax refund. 
  7.24     (s) Individuals who were residents of Minnesota in 1997 and 
  7.25  who attained the age of 65 on or before December 31, 1997, and 
  7.26  who do not otherwise qualify for a rebate, qualify for a rebate 
  7.27  under this paragraph only.  Qualifying senior citizens must file 
  7.28  a claim for a rebate on a form prescribed by the commissioner 
  7.29  before the later of June 15, 2000, or 30 days after the date of 
  7.30  enactment of this act.  The claim must include proof of 
  7.31  Minnesota residency, income tax filing status, and age in 1997.  
  7.32  The commissioner shall verify the information provided and 
  7.33  rebate the minimum amount for which the claimant would have been 
  7.34  eligible as determined under paragraph (b) as adjusted by 
  7.35  paragraph (f) if the taxpayer would have met the requirements to 
  7.36  file a 1997 federal income tax return as a married taxpayer 
  8.1   filing jointly or head of household, or as determined under 
  8.2   paragraph (c) as adjusted by paragraph (f) for other taxpayers.  
  8.3   Qualified claims for rebate under this paragraph not paid by 
  8.4   October 1, 2000, bear interest at the rate specified in 
  8.5   Minnesota Statutes, section 270.75. 
  8.6      (t)(1) An individual allowed to be claimed as a dependent 
  8.7   on a 1997 federal income tax return by another person is allowed 
  8.8   a sales tax rebate as provided by this paragraph only.  Only an 
  8.9   individual allowed to be claimed as a dependent on a 1997 
  8.10  federal income tax return filed by another person may claim a 
  8.11  rebate under this paragraph. 
  8.12     (2) To qualify for a rebate, the taxpayer must file a claim 
  8.13  for a rebate on a form prescribed by the commissioner before the 
  8.14  later of June 15, 2000, or 30 days after enactment of this act.  
  8.15  The claim must include filing status, earned income, and any 
  8.16  other information prescribed by the commissioner. 
  8.17     (3) The amount of the rebate allowed to a taxpayer equals 
  8.18  the amount determined under paragraph (b) or (c), as adjusted by 
  8.19  paragraph (f), except the measure of income is limited to the 
  8.20  lesser of earned income or taxable income.  For purposes of this 
  8.21  paragraph, "earned income" means the sum of (i) self-employment 
  8.22  income subject to the tax under section 1401(b) of the Internal 
  8.23  Revenue Code of 1986, as amended through December 31, 1996, and 
  8.24  (ii) wages subject to tax under section 3101(b) of the Internal 
  8.25  Revenue Code of 1986, as amended through December 31, 1996. 
  8.26     Sec. 2.  [APPLICATION OF LAW.] 
  8.27     The limitation on the total amount of rebates in Laws 1999, 
  8.28  chapter 243, article 1, section 2, paragraph (f), does not apply 
  8.29  to rebates issued under section 1.  To the extent applicable, 
  8.30  all other provisions of Laws 1999, chapter 243, article 1, 
  8.31  section 2, apply to the rebates paid under section 1, including 
  8.32  the adjustments made under section 1, paragraph (f). 
  8.33     Sec. 3.  [APPROPRIATION.] 
  8.34     The amount necessary to pay the rebates under section 1 is 
  8.35  appropriated from the general fund to the commissioner of 
  8.36  revenue for fiscal years 2000 and 2001.  
  9.1      Sec. 4.  [EFFECTIVE DATE.] 
  9.2      Sections 1 to 3 are effective the day following final 
  9.3   enactment.