1.1                          A bill for an act 
  1.2             relating to taxation; providing that certain annuities 
  1.3             paid to survivors of public safety officers are exempt 
  1.4             from taxation; amending Minnesota Statutes 1997 
  1.5             Supplement, section 290.01, subdivision 19. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1997 Supplement, section 
  1.8   290.01, subdivision 19, is amended to read: 
  1.9      Subd. 19.  [NET INCOME.] The term "net income" means the 
  1.10  federal taxable income, as defined in section 63 of the Internal 
  1.11  Revenue Code of 1986, as amended through the date named in this 
  1.12  subdivision, incorporating any elections made by the taxpayer in 
  1.13  accordance with the Internal Revenue Code in determining federal 
  1.14  taxable income for federal income tax purposes, and with the 
  1.15  modifications provided in subdivisions 19a to 19f. 
  1.16     In the case of a regulated investment company or a fund 
  1.17  thereof, as defined in section 851(a) or 851(h) of the Internal 
  1.18  Revenue Code, federal taxable income means investment company 
  1.19  taxable income as defined in section 852(b)(2) of the Internal 
  1.20  Revenue Code, except that:  
  1.21     (1) the exclusion of net capital gain provided in section 
  1.22  852(b)(2)(A) of the Internal Revenue Code does not apply; 
  1.23     (2) the deduction for dividends paid under section 
  1.24  852(b)(2)(D) of the Internal Revenue Code must be applied by 
  1.25  allowing a deduction for capital gain dividends and 
  2.1   exempt-interest dividends as defined in sections 852(b)(3)(C) 
  2.2   and 852(b)(5) of the Internal Revenue Code; and 
  2.3      (3) the deduction for dividends paid must also be applied 
  2.4   in the amount of any undistributed capital gains which the 
  2.5   regulated investment company elects to have treated as provided 
  2.6   in section 852(b)(3)(D) of the Internal Revenue Code.  
  2.7      The net income of a real estate investment trust as defined 
  2.8   and limited by section 856(a), (b), and (c) of the Internal 
  2.9   Revenue Code means the real estate investment trust taxable 
  2.10  income as defined in section 857(b)(2) of the Internal Revenue 
  2.11  Code.  
  2.12     The net income of a designated settlement fund as defined 
  2.13  in section 468B(d) of the Internal Revenue Code means the gross 
  2.14  income as defined in section 468B(b) of the Internal Revenue 
  2.15  Code. 
  2.16     The Internal Revenue Code of 1986, as amended through 
  2.17  December 31, 1986, shall be in effect for taxable years 
  2.18  beginning after December 31, 1986.  The provisions of sections 
  2.19  10104, 10202, 10203, 10204, 10206, 10212, 10221, 10222, 10223, 
  2.20  10226, 10227, 10228, 10611, 10631, 10632, and 10711 of the 
  2.21  Omnibus Budget Reconciliation Act of 1987, Public Law Number 
  2.22  100-203, the provisions of sections 1001, 1002, 1003, 1004, 
  2.23  1005, 1006, 1008, 1009, 1010, 1011, 1011A, 1011B, 1012, 1013, 
  2.24  1014, 1015, 1018, 2004, 3041, 4009, 6007, 6026, 6032, 6137, 
  2.25  6277, and 6282 of the Technical and Miscellaneous Revenue Act of 
  2.26  1988, Public Law Number 100-647, the provisions of sections 
  2.27  7811, 7816, and 7831 of the Omnibus Budget Reconciliation Act of 
  2.28  1989, Public Law Number 101-239, and the provisions of sections 
  2.29  1305, 1704(r), and 1704(e)(1) of the Small Business Job 
  2.30  Protection Act, Public Law Number 104-188, shall be effective at 
  2.31  the time they become effective for federal income tax purposes.  
  2.32     The Internal Revenue Code of 1986, as amended through 
  2.33  December 31, 1987, shall be in effect for taxable years 
  2.34  beginning after December 31, 1987.  The provisions of sections 
  2.35  4001, 4002, 4011, 5021, 5041, 5053, 5075, 6003, 6008, 6011, 
  2.36  6030, 6031, 6033, 6057, 6064, 6066, 6079, 6130, 6176, 6180, 
  3.1   6182, 6280, and 6281 of the Technical and Miscellaneous Revenue 
  3.2   Act of 1988, Public Law Number 100-647, the provisions of 
  3.3   sections 7815 and 7821 of the Omnibus Budget Reconciliation Act 
  3.4   of 1989, Public Law Number 101-239, and the provisions of 
  3.5   section 11702 of the Revenue Reconciliation Act of 1990, Public 
  3.6   Law Number 101-508, shall become effective at the time they 
  3.7   become effective for federal tax purposes.  
  3.8      The Internal Revenue Code of 1986, as amended through 
  3.9   December 31, 1988, shall be in effect for taxable years 
  3.10  beginning after December 31, 1988.  The provisions of sections 
  3.11  7101, 7102, 7104, 7105, 7201, 7202, 7203, 7204, 7205, 7206, 
  3.12  7207, 7210, 7211, 7301, 7302, 7303, 7304, 7601, 7621, 7622, 
  3.13  7641, 7642, 7645, 7647, 7651, and 7652 of the Omnibus Budget 
  3.14  Reconciliation Act of 1989, Public Law Number 101-239, the 
  3.15  provision of section 1401 of the Financial Institutions Reform, 
  3.16  Recovery, and Enforcement Act of 1989, Public Law Number 101-73, 
  3.17  the provisions of sections 11701 and 11703 of the Revenue 
  3.18  Reconciliation Act of 1990, Public Law Number 101-508, and the 
  3.19  provisions of sections 1702(g) and 1704(f)(2)(A) and (B) of the 
  3.20  Small Business Job Protection Act, Public Law Number 104-188, 
  3.21  shall become effective at the time they become effective for 
  3.22  federal tax purposes.  
  3.23     The Internal Revenue Code of 1986, as amended through 
  3.24  December 31, 1989, shall be in effect for taxable years 
  3.25  beginning after December 31, 1989.  The provisions of sections 
  3.26  11321, 11322, 11324, 11325, 11403, 11404, 11410, and 11521 of 
  3.27  the Revenue Reconciliation Act of 1990, Public Law Number 
  3.28  101-508, and the provisions of sections 13224 and 13261 of the 
  3.29  Omnibus Budget Reconciliation Act of 1993, Public Law Number 
  3.30  103-66, shall become effective at the time they become effective 
  3.31  for federal purposes.  
  3.32     The Internal Revenue Code of 1986, as amended through 
  3.33  December 31, 1990, shall be in effect for taxable years 
  3.34  beginning after December 31, 1990. 
  3.35     The provisions of section 13431 of the Omnibus Budget 
  3.36  Reconciliation Act of 1993, Public Law Number 103-66, shall 
  4.1   become effective at the time they became effective for federal 
  4.2   purposes.  
  4.3      The Internal Revenue Code of 1986, as amended through 
  4.4   December 31, 1991, shall be in effect for taxable years 
  4.5   beginning after December 31, 1991.  
  4.6      The provisions of sections 1936 and 1937 of the 
  4.7   Comprehensive National Energy Policy Act of 1992, Public Law 
  4.8   Number 102-486, and the provisions of sections 13101, 13114, 
  4.9   13122, 13141, 13150, 13151, 13174, 13239, 13301, and 13442 of 
  4.10  the Omnibus Budget Reconciliation Act of 1993, Public Law Number 
  4.11  103-66, shall become effective at the time they become effective 
  4.12  for federal purposes.  
  4.13     The Internal Revenue Code of 1986, as amended through 
  4.14  December 31, 1992, shall be in effect for taxable years 
  4.15  beginning after December 31, 1992.  
  4.16     The provisions of sections 13116, 13121, 13206, 13210, 
  4.17  13222, 13223, 13231, 13232, 13233, 13239, 13262, and 13321 of 
  4.18  the Omnibus Budget Reconciliation Act of 1993, Public Law Number 
  4.19  103-66, and the provisions of sections 1703(a), 1703(d), 
  4.20  1703(i), 1703(l), and 1703(m) of the Small Business Job 
  4.21  Protection Act, Public Law Number 104-188, shall become 
  4.22  effective at the time they become effective for federal purposes.
  4.23     The Internal Revenue Code of 1986, as amended through 
  4.24  December 31, 1993, shall be in effect for taxable years 
  4.25  beginning after December 31, 1993. 
  4.26     The provision of section 741 of Legislation to Implement 
  4.27  Uruguay Round of General Agreement on Tariffs and Trade, Public 
  4.28  Law Number 103-465, the provisions of sections 1, 2, and 3, of 
  4.29  the Self-Employed Health Insurance Act of 1995, Public Law 
  4.30  Number 104-7, the provision of section 501(b)(2) of the Health 
  4.31  Insurance Portability and Accountability Act, Public Law Number 
  4.32  104-191, and the provisions of sections 1604 and 1704(p)(1) and 
  4.33  (2) of the Small Business Job Protection Act, Public Law Number 
  4.34  104-188, shall become effective at the time they become 
  4.35  effective for federal purposes. 
  4.36     The Internal Revenue Code of 1986, as amended through 
  5.1   December 31, 1994, shall be in effect for taxable years 
  5.2   beginning after December 31, 1994. 
  5.3      The provisions of sections 1119(a), 1120, 1121, 1202(a), 
  5.4   1444, 1449(b), 1602(a), 1610(a), 1613, and 1805 of the Small 
  5.5   Business Job Protection Act, Public Law Number 104-188, and the 
  5.6   provision of section 511 of the Health Insurance Portability and 
  5.7   Accountability Act, Public Law Number 104-191, shall become 
  5.8   effective at the time they become effective for federal purposes.
  5.9      The Internal Revenue Code of 1986, as amended through March 
  5.10  22, 1996, is in effect for taxable years beginning after 
  5.11  December 31, 1995. 
  5.12     The provisions of sections 1113(a), 1117, 1206(a), 1313(a), 
  5.13  1402(a), 1403(a), 1443, 1450, 1501(a), 1605, 1611(a), 1612, 
  5.14  1616, 1617, 1704(l), and 1704(m) of the Small Business Job 
  5.15  Protection Act, Public Law Number 104-188, and the provisions of 
  5.16  Public Law Number 104-117 become effective at the time they 
  5.17  become effective for federal purposes. 
  5.18     The Internal Revenue Code of 1986, as amended through 
  5.19  December 31, 1996, shall be in effect for taxable years 
  5.20  beginning after December 31, 1996. 
  5.21     Except as otherwise provided, references to the Internal 
  5.22  Revenue Code in subdivisions 19a to 19g mean the code in effect 
  5.23  for purposes of determining net income for the applicable year. 
  5.24     The provisions of section 1528(a) of the Taxpayer Relief 
  5.25  Act of 1997, Public Law Number 105-34, become effective at the 
  5.26  time they become effective for federal purposes. 
  5.27     Sec. 2.  [EFFECTIVE DATE.] 
  5.28     Section 1 is effective the day following final enactment.