HF 3958

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

A bill for an act
relating to taxes; individual income; adjusting alternative minimum tax
exemption amounts and phaseout thresholds for inflation; amending Minnesota
Statutes 2004, section 290.091, subdivision 3.

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

Section 1.

Minnesota Statutes 2004, section 290.091, subdivision 3, is amended to read:

Subd. 3.

Exemption amount.

new text begin (a) new text end For purposes of computing the alternative
minimum tax, the exemption amount is the exemption determined under section 55(d)
of the Internal Revenue Code, as amended through December 31, 1992, except that
alternative minimum taxable income as determined under this section must be substituted
in the computation of the phase out under section 55(d)(3).

new text begin (b) For taxable years beginning after December 31, 2005, the exemption amounts
and phaseout thresholds determined under paragraph (a) must be adjusted for inflation.
The commissioner shall make the inflation adjustments in accordance with section 1(f) of
the Internal Revenue Code except that, for the purposes of this subdivision, the percentage
increase must be determined from the year starting September 1, 2004, and ending August
31, 2005, as the base year for adjusting for inflation for the tax year beginning after
December 31, 2005. The determination of the commissioner under this subdivision is not
a rule under the Administrative Procedure Act.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2005.
new text end