HF 3753

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

1.1                                        A bill for an act
1.2     relating to taxation; accelerating the phase-in of the sales-only apportionment 
1.3     factor;amending Minnesota Statutes 2005 Supplement, section 290.191, 
1.4     subdivision 2.
1.5     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6         Section 1. Minnesota Statutes 2005 Supplement, section 290.191, subdivision 2, 
1.7     is amended to read:
1.8         Subd. 2. Apportionment formula of general application. (a) Except for those 
1.9     trades or businesses required to use a different formula under subdivision 3 or section 
1.10    290.36, and for those trades or businesses that receive permission to use some other 
1.11    method under section 290.20 or under subdivision 4, a trade or business required to 
1.12    apportion its net income must apportion its income to this state on the basis of the 
1.13    percentage obtained by taking the sum of:
1.14    (1) the percent for the sales factor under paragraph (b) of the percentage which 
1.15    the sales made within this state in connection with the trade or business during the tax 
1.16    period are of the total sales wherever made in connection with the trade or business during 
1.17    the tax period;
1.18    (2) the percent for the property factor under paragraph (b) of the percentage which 
1.19    the total tangible property used by the taxpayer in this state in connection with the trade or 
1.20    business during the tax period is of the total tangible property, wherever located, used by 
1.21    the taxpayer in connection with the trade or business during the tax period; and
1.22    (3) the percent for the payroll factor under paragraph (b) of the percentage which 
1.23    the taxpayer's total payrolls paid or incurred in this state or paid in respect to labor 
1.24    performed in this state in connection with the trade or business during the tax period are 
2.1     of the taxpayer's total payrolls paid or incurred in connection with the trade or business 
2.2     during the tax period.
2.3     (b) For purposes of paragraph (a) and subdivision 3, the following percentages apply 
2.4     for the taxable years specified:
2.5     Taxable years                                                         
2.6     beginning                  Sales             Property         Payroll 
2.7     during                     factor            factor           factor  
2.8     calendar year              percent           percent          percent 
2.9          2007                   78 80              11 10           11 10  
2.10         2008                   81 90               9.55             9.5 0  
2.11    2009 and later                                                        
2.12    calendar years             84 100              8 0             8 0   
2.13         2010                    87                6.5             6.5   
2.14         2011                    90                 5               5    
2.15         2012                    93                3.5             3.5   
2.16         2013                    96                 2               2    
2.17    2014 and later                                                        
2.18    calendar years               100                 0               0    
2.19    EFFECTIVE DATE.This section is effective for taxable years beginning after 
2.20    December 31, 2006.