1.1                          A bill for an act
  1.2             relating to taxation; providing an income tax rebate; 
  1.3             appropriating money. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [1999 INCOME TAX REBATE.] 
  1.6      Subdivision 1.  [PAYMENT REQUIRED.] The commissioner of 
  1.7   revenue shall pay an income tax rebate to each individual or 
  1.8   married couple who paid tax under Minnesota Statutes, chapter 
  1.9   290, for a taxable year beginning after December 31, 1996, and 
  1.10  before January 1, 1998.  The commissioner shall pay the rebate 
  1.11  by (1) 60 days after the day following final enactment of this 
  1.12  section for returns filed before January 1, 1999; or (2) within 
  1.13  90 days after the commissioner receives the taxpayer's return 
  1.14  for all other returns.  Payments of the rebate made after the 
  1.15  required payment date bear interest at the rate provided in 
  1.16  Minnesota Statutes, section 270.76. For returns filed after July 
  1.17  1, 1999, the commissioner may allow the rebate as a credit 
  1.18  against the tax imposed. 
  1.19     Subd. 2.  [AMOUNT ALLOWED.] (a) The amount of the rebate 
  1.20  equals the sum of: 
  1.21     (1) 100 percent of the first $150 of income tax liability; 
  1.22  and 
  1.23     (2) 20 percent of any income tax liability in excess of 
  1.24  $150. 
  2.1      The maximum rebate is $7,600 for married taxpayers filing 
  2.2   joint returns, and $3,800 for all other taxpayers. 
  2.3      (b) Income tax liability means the liability for tax 
  2.4   computed under Minnesota Statutes, sections 290.06 and 290.091, 
  2.5   and before subtraction of the credits in Minnesota Statutes, 
  2.6   sections 290.067 and 290.0671, and Laws 1997, chapter 231, 
  2.7   article 1, section 16, as amended. 
  2.8      Subd. 3.  [NO OFFSET OF INTEREST AND PENALTIES.] The rebate 
  2.9   may not be used to offset any interest and penalties resulting 
  2.10  from underpayment of estimated tax for taxable year 1997. 
  2.11     Subd. 4.  [PAYMENT SUBJECT TO OFFSET.] Payment of the 
  2.12  rebate under this section is subject to Minnesota Statutes, 
  2.13  chapter 270A, and any other provision applicable to refunds 
  2.14  under Minnesota Statutes, chapter 290. 
  2.15     Sec. 2.  [APPROPRIATION.] 
  2.16     (a) The amount necessary to pay the rebate under section 1 
  2.17  is appropriated from the general fund to the commissioner of 
  2.18  revenue.  The first $200,000,000 of this appropriation is from 
  2.19  the tax reform and reduction account. 
  2.20     (b) $2,000,000 is appropriated from the general fund for 
  2.21  fiscal years 1999 and 2000 to the commissioner of revenue to 
  2.22  administer section 1. 
  2.23     Sec. 3.  [EFFECTIVE DATE.] 
  2.24     Sections 1 and 2 are effective the day following final 
  2.25  enactment.