as introduced - 92nd Legislature (2021 - 2022) Posted on 02/11/2021 02:44pm
Engrossments | ||
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Introduction | Posted on 02/11/2021 |
A bill for an act
relating to taxation; establishing a Minnesota wealth tax; proposing coding for
new law in Minnesota Statutes, chapter 290.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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(a) For purposes of this section, the following terms have
the meanings given.
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(b) "Pass-through entity" has the meaning given in section 291.005, subdivision 1.
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(c) "Situs of property" means, with respect to:
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(1) real property, the state or country in which it is located;
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(2) tangible personal property, the state or country in which it is normally kept or located;
and
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(3) intangible personal property, the state or country in which an individual taxpayer is
domiciled or the state of which a trust is a resident.
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For a nonresident taxpayer with an ownership interest in a pass-through entity with assets
that include real or tangible personal property, situs of the real or tangible personal property,
is determined as if the pass-through entity does not exist and the real or tangible personal
property is personally owned by the taxpayer. If the pass-through entity is owned by a person
or persons in addition to the taxpayer, ownership of the property is attributed to the taxpayer
in proportion to the taxpayer's capital ownership share of the pass-through entity.
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(d) "Taxable wealth" means:
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(1) the value of all of a taxpayer's property, real or personal, tangible or intangible, but
excluding property with a situs outside of Minnesota; minus
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(2) the sum of all debts and financial obligations owed by the taxpayer.
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The value of a taxpayer's property shall be calculated in the same manner as the value of a
gross estate under section 2031 of the Internal Revenue Code.
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A tax is annually imposed equal to 2 percent of the taxable wealth
of an individual or trust in excess of $30,000,000.
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The tax imposed under this
section is in addition to the tax imposed under chapter 291, section 289A.08, subdivision
7, and any other tax imposed by this chapter.
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This section is effective for taxable years beginning after December
31, 2019.
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