SF 1305

Introduction - 81st Legislature (1999 - 2000)

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act 
  1.2             relating to state finance; providing a sales tax 
  1.3             rebate; providing for deposit of tobacco litigation 
  1.4             settlement proceeds; abolishing the tax reform and 
  1.5             reduction account; appropriating money for capital 
  1.6             improvements related to housing, bridges, polluted 
  1.7             lands and waters, and information technology projects; 
  1.8             proposing coding for new law in Minnesota Statutes, 
  1.9             chapter 16A. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11                             ARTICLE 1 
  1.12                          SALES TAX REBATE 
  1.13     Section 1.  [STATEMENT OF PURPOSE.] 
  1.14     (a) The state of Minnesota derives revenues from a variety 
  1.15  of taxes, fees, and other sources, including the state sales tax.
  1.16     (b) It is fair and reasonable to refund the existing state 
  1.17  budget surplus in the form of a rebate of nonbusiness consumer 
  1.18  sales taxes paid by individuals in calendar year 1997. 
  1.19     (c) Information concerning the amount of sales tax paid at 
  1.20  various income levels is contained in the Minnesota tax 
  1.21  incidence report, which is written by the commissioner of 
  1.22  revenue and presented to the legislature according to Minnesota 
  1.23  Statutes, section 270.0682. 
  1.24     (d) It is fair and reasonable to use information contained 
  1.25  in the Minnesota tax incidence report to determine the 
  1.26  proportionate share of the sales tax rebate due each eligible 
  1.27  taxpayer since no effective or practical mechanism exists for 
  2.1   determining the amount of actual sales tax paid by each eligible 
  2.2   individual. 
  2.3      Sec. 2.  [SALES TAX REBATE.] 
  2.4      (a) An individual who was eligible for a credit under Laws 
  2.5   1997, chapter 231, article 1, section 16, as amended by Laws 
  2.6   1997, First Special Session chapter 5, section 35, Laws 1997, 
  2.7   Third Special Session chapter 3, section 11, Laws 1998, chapter 
  2.8   304, section 1, and Laws 1998, chapter 389, article 1, section 
  2.9   3, and who filed for that credit on or before April 15, 1999, 
  2.10  shall receive a sales tax rebate. 
  2.11     (b) The sales tax rebate for taxpayers who filed the claim 
  2.12  for credit authorized under Laws 1997, chapter 231, article 1, 
  2.13  section 16, as amended, as married filing joint or head of 
  2.14  household must be computed according to the following schedule: 
  2.15         Income                             Sales Tax Rebate
  2.16   less than $2,500                              $  187
  2.17   at least $2,500 but less than $5,000          $  238
  2.18   at least $5,000 but less than $10,000         $  248
  2.19   at least $10,000 but less than $15,000        $  278
  2.20   at least $15,000 but less than $20,000        $  303
  2.21   at least $20,000 but less than $25,000        $  323
  2.22   at least $25,000 but less than $30,000        $  345
  2.23   at least $30,000 but less than $35,000        $  368
  2.24   at least $35,000 but less than $40,000        $  388
  2.25   at least $40,000 but less than $45,000        $  408
  2.26   at least $45,000 but less than $50,000        $  430
  2.27   at least $50,000 but less than $60,000        $  462
  2.28   at least $60,000 but less than $70,000        $  507
  2.29   at least $70,000 but less than $80,000        $  549
  2.30   at least $80,000 but less than $90,000        $  590
  2.31   at least $90,000 but less than $100,000       $  635
  2.32   at least $100,000 but less than $120,000      $  680
  2.33   at least $120,000 but less than $140,000      $  765
  2.34   at least $140,000 but less than $160,000      $  824
  2.35   at least $160,000 but less than $180,000      $  874
  2.36   at least $180,000 but less than $200,000      $  950
  3.1    $200,000 and over                             $1,000
  3.2      (c) The sales tax rebate for individuals who filed the 
  3.3   claim for credit authorized under Laws 1997, chapter 231, 
  3.4   article 1, section 16, as amended, as single or married filing 
  3.5   separately must be computed according to the following schedule: 
  3.6          Income                                 Sales Tax Rebate
  3.7    less than $2,500                              $   98
  3.8    at least $2,500 but less than $5,000          $  122
  3.9    at least $5,000 but less than $10,000         $  151
  3.10   at least $10,000 but less than $15,000        $  178
  3.11   at least $15,000 but less than $20,000        $  209
  3.12   at least $20,000 but less than $25,000        $  235
  3.13   at least $25,000 but less than $30,000        $  261
  3.14   at least $30,000 but less than $40,000        $  293
  3.15   at least $40,000 but less than $50,000        $  336
  3.16   at least $50,000 but less than $70,000        $  399
  3.17   $70,000 and over                              $  500
  3.18     (d) The sales tax rebate for individuals who filed a 1997 
  3.19  Minnesota income tax return and had a tax liability before 
  3.20  refundable credits on that return of at least $1 but did not 
  3.21  file the claim for credit authorized under Laws 1997, chapter 
  3.22  231, article 1, section 16, as amended, and who were not claimed 
  3.23  as dependents on the 1997 Minnesota income tax return filed by 
  3.24  another person, will receive a credit equal to $50, multiplied 
  3.25  by the fraction determined under Minnesota Statutes, section 
  3.26  290.06, subdivision 2c, paragraph (e), for nonresidents or 
  3.27  part-year residents. 
  3.28     (e) "Income," for purposes of this section, is taxable net 
  3.29  income as defined in Minnesota Statutes, section 290.01, 
  3.30  subdivision 22, and reported on the original return submitted to 
  3.31  claim the credit under Laws 1997, chapter 231, article 1, 
  3.32  section 16, as amended, or by subsequent adjustments to that 
  3.33  return made within the time limits specified in paragraph (h).  
  3.34  For an individual who was not a resident of Minnesota for the 
  3.35  entire year, the sales tax rebate equals the sales tax rebate 
  3.36  calculated under paragraph (b) or (c) multiplied by the 
  4.1   percentage determined pursuant to Minnesota Statutes, section 
  4.2   290.06, subdivision 2c, paragraph (e), as calculated on the 
  4.3   original return submitted to claim the credit under Laws 1997, 
  4.4   chapter 231, article 1, section 16, as amended, or by subsequent 
  4.5   adjustments to that return made within the time limits specified 
  4.6   in paragraph (i). 
  4.7      (f) Prior to payment, the commissioner of revenue shall 
  4.8   reduce the sales tax rebates calculated in paragraphs (b), (c), 
  4.9   and (d) proportionately to account for the amount of credits 
  4.10  described in Laws 1997, chapter 231, article 1, section 16, as 
  4.11  amended, that are paid on or after January 1, 1999, but before 
  4.12  July 1, 1999, so that the amount of sales tax rebates payable 
  4.13  under paragraphs (b), (c), and (d) do not exceed $500,000,000. 
  4.14  These adjustments are not rules subject to Minnesota Statutes, 
  4.15  chapter 14. 
  4.16     (g) The commissioner of revenue may begin making sales tax 
  4.17  rebates by August 1, 1999.  Sales tax rebates not paid by 
  4.18  October 1, 1999, shall bear interest at the rate specified in 
  4.19  Minnesota Statutes, section 270.75. 
  4.20     (h) A sales tax rebate shall not be adjusted based on 
  4.21  changes to the return on which the claim for credit authorized 
  4.22  under Laws 1997, chapter 231, article 1, section 16, as amended, 
  4.23  made by order of assessment after April 15, 1999, or made by the 
  4.24  taxpayer that are filed with the commissioner of revenue after 
  4.25  April 15, 1999. 
  4.26     (i) Individuals who filed a joint claim for credit under 
  4.27  Laws 1997, chapter 231, article 1, section 16, as amended, shall 
  4.28  receive a joint sales tax rebate.  After the sales tax rebate 
  4.29  has been issued, but before the check has been cashed, either 
  4.30  joint claimant may request a separate check for one-half of the 
  4.31  joint sales tax rebate. 
  4.32     (j) The sales tax rebate is a "Minnesota tax law" for 
  4.33  purposes of Minnesota Statutes, section 270B.01, subdivision 8. 
  4.34     (k) The sales tax rebate is "an overpayment of any tax 
  4.35  collected by the commissioner" for purposes of Minnesota 
  4.36  Statutes, section 270.07, subdivision 5.  For purposes of this 
  5.1   paragraph, a joint sales tax rebate is payable to each spouse 
  5.2   equally. 
  5.3      (l) If the commissioner of revenue cannot locate an 
  5.4   individual entitled to a sales tax rebate by July 1, 2001, or if 
  5.5   an individual to whom a sales tax rebate was issued has not 
  5.6   cashed the check by July 1, 2001, the right to the sales tax 
  5.7   rebate shall lapse and the check shall be deposited in the 
  5.8   general fund. 
  5.9      (m) Individuals entitled to a sales tax rebate pursuant to 
  5.10  paragraph (b), but who did not receive one, and individuals who 
  5.11  receive a sales tax rebate that was not correctly computed, must 
  5.12  file a claim with the commissioner before July 1, 2000, in a 
  5.13  form prescribed by the commissioner.  These claims shall be 
  5.14  treated as if they are a claim for refund under Minnesota 
  5.15  Statutes, section 289A.50, subdivisions 4 and 7. 
  5.16     (n) The sales tax rebate is a refund subject to revenue 
  5.17  recapture under Minnesota Statutes, chapter 270A.  The 
  5.18  commissioner of revenue shall remit the entire refund to the 
  5.19  claimant agency, which shall, upon the request of the spouse who 
  5.20  does not owe the debt, refund one-half of the joint sales tax 
  5.21  rebate to the spouse who does not owe the debt. 
  5.22     (o) The amount necessary to make the sales tax rebates and 
  5.23  interest provided in this section is appropriated from the 
  5.24  general fund to the commissioner of revenue in fiscal years 2000 
  5.25  and 2001. 
  5.26     (p) If a sales tax rebate check is cashed by someone other 
  5.27  than the payee or payees of the check, and the commissioner of 
  5.28  revenue determines that the check has been forged or improperly 
  5.29  endorsed, the commissioner may issue an order of assessment for 
  5.30  the amount of the check against the person or persons cashing 
  5.31  it.  The assessment must be made within two years after the 
  5.32  check is cashed, but if cashing the check constitutes theft 
  5.33  under Minnesota Statutes, section 609.52, or forgery under 
  5.34  Minnesota Statutes, section 609.631, the assessment can be made 
  5.35  at any time.  The assessment may be appealed administratively 
  5.36  and judicially.  The commissioner may take action to collect the 
  6.1   assessment in the same manner as provided by Minnesota Statutes, 
  6.2   chapter 289A, for any other order of the commissioner assessing 
  6.3   tax. 
  6.4      (q) Notwithstanding Minnesota Statutes, sections 9.031, 
  6.5   16A.40, 16B.49, 16B.50, and any other law to the contrary, the 
  6.6   commissioner of revenue may take whatever actions the 
  6.7   commissioner deems necessary to pay the rebates required by this 
  6.8   section, and may, in consultation with the commissioner of 
  6.9   finance and the state treasurer, contract with a private vendor 
  6.10  or vendors to process, print, and mail the rebate checks or 
  6.11  warrants required under this section and receive and disburse 
  6.12  state funds to pay those checks or warrants. 
  6.13     Sec. 3.  [APPROPRIATIONS.] 
  6.14     $1,000,000 is appropriated from the general fund to the 
  6.15  commissioner of revenue to administer the sales tax rebate for 
  6.16  fiscal year 1999.  Any unencumbered balance remaining on June 
  6.17  30, 1999, does not cancel but is available for expenditure by 
  6.18  the commissioner of revenue until June 30, 2001. 
  6.19     Sec. 4.  [EFFECTIVE DATE.] 
  6.20     Sections 1 to 3 are effective the day following final 
  6.21  enactment. 
  6.22                             ARTICLE 2 
  6.23                         DEDICATED ACCOUNTS
  6.24     Section 1.  [ABOLISHING TAX REFORM AND REDUCTION ACCOUNT.] 
  6.25     The tax reform and reduction account created in Laws 1998, 
  6.26  chapter 389, article 9, section 2, subdivision 2, clause (2), is 
  6.27  abolished.  The balance in the account shall revert to the 
  6.28  unrestricted general fund balance. 
  6.29     Sec. 2.  [16A.77] [TOBACCO SETTLEMENT FUND.] 
  6.30     (a) A tobacco settlement fund is established in the state 
  6.31  treasury.  Amounts in the fund are available only for purposes 
  6.32  authorized by appropriation by the legislature.  The governor 
  6.33  shall make recommendations to the legislature regarding use of 
  6.34  the money in the fund. 
  6.35     (b) The commissioner of finance shall credit all settlement 
  6.36  payments received after July 1, 1998, as defined in Section IIB 
  7.1   of the settlement document, filed May 18, 1998, in the State v. 
  7.2   Philip Morris, Inc., No. C1-94-8565 (Minnesota District Court, 
  7.3   Second Judicial District), to the tobacco settlement fund.  All 
  7.4   other payments to the state resulting from the specified 
  7.5   litigation shall be credited to the general fund. 
  7.6      Sec. 3.  [EFFECTIVE DATE.] 
  7.7      Sections 1 and 2 are effective the day following final 
  7.8   enactment. 
  7.9                              ARTICLE 3
  7.10                        CAPITAL IMPROVEMENTS
  7.11  Section 1.  [CAPITAL IMPROVEMENT APPROPRIATIONS.] 
  7.12     The sums in the column under "APPROPRIATIONS" are 
  7.13  appropriated from the general fund to the state agencies or 
  7.14  officials indicated, to be spent for public purposes including 
  7.15  to acquire and to better public land and buildings and other 
  7.16  public improvements of a capital nature, as specified in this 
  7.17  article.  Unless otherwise specified, the appropriations in this 
  7.18  article are available until the project is completed or 
  7.19  abandoned. 
  7.20                              SUMMARY 
  7.21  HOUSING FINANCE AGENCY                           $  100,000,000 
  7.22  TRANSPORTATION                                      100,000,000 
  7.23  TRADE AND ECONOMIC DEVELOPMENT                      100,000,000
  7.24  PUBLIC FACILITIES AUTHORITY                         100,000,000
  7.25  POLLUTION CONTROL AGENCY                            100,000,000
  7.26  OFFICE OF TECHNOLOGY                                100,000,000
  7.27  TOTAL                                            $  600,000,000
  7.28                                                   APPROPRIATIONS
  7.29                                                   $ 
  7.30  Sec. 2.  HOUSING FINANCE AGENCY                     100,000,000
  7.31  This appropriation is for transfer to 
  7.32  the housing development fund for 
  7.33  programs authorized by Minnesota 
  7.34  Statutes, chapter 462A, as allocated 
  7.35  among the programs by the housing 
  7.36  finance agency. 
  7.37  Sec. 3.  TRANSPORTATION                             100,000,000
  7.38  Subdivision 1.  To the commissioner of 
  7.39  transportation for local bridge 
  7.40  replacement and rehabilitation. 
  8.1   This appropriation is from the general 
  8.2   fund for the same purposes and subject 
  8.3   to the same conditions as money 
  8.4   appropriated from the state 
  8.5   transportation fund provided in 
  8.6   Minnesota Statutes, section 174.50, to 
  8.7   match federal funds and to replace or 
  8.8   rehabilitate local deficient bridges. 
  8.9   Political subdivisions may use grants 
  8.10  made under this section to construct or 
  8.11  reconstruct bridges, including: 
  8.12  (1) matching federal aid grants to 
  8.13  construct or reconstruct key bridges; 
  8.14  (2) paying the costs of preliminary 
  8.15  engineering and environmental studies 
  8.16  authorized under Minnesota Statutes, 
  8.17  section 174.50, subdivision 6a; 
  8.18  (3) paying the costs to abandon an 
  8.19  existing bridge that is deficient and 
  8.20  in need of replacement, but where no 
  8.21  replacement will be made; and 
  8.22  (4) paying the costs to construct a 
  8.23  road or street to facilitate the 
  8.24  abandonment of an existing bridge 
  8.25  determined by the commissioner to be 
  8.26  deficient, if the commissioner 
  8.27  determines that construction of the 
  8.28  road or street is more cost efficient 
  8.29  than the replacement of the existing 
  8.30  bridge. 
  8.31  Sec. 4.  TRADE AND    
  8.32  ECONOMIC DEVELOPMENT                                100,000,000
  8.33  This appropriation is to the 
  8.34  commissioner of trade and economic 
  8.35  development for grants to cities to 
  8.36  remediate brownfields. 
  8.37  Sec. 5.  PUBLIC 
  8.38  FACILITIES AUTHORITY                                100,000,000
  8.39  This appropriation is to the public 
  8.40  facilities authority for wastewater 
  8.41  infrastructure grants to municipalities 
  8.42  under Minnesota Statutes, section 
  8.43  446A.072. 
  8.44  Sec. 6.  POLLUTION    
  8.45  CONTROL AGENCY                                      100,000,000
  8.46  This appropriation is to the pollution 
  8.47  control agency to clean up water 
  8.48  through the clean water partnership 
  8.49  loan and grant programs, the individual 
  8.50  sewer treatment system grant program, 
  8.51  and other programs, as allocated among 
  8.52  the programs by the agency.  A portion 
  8.53  of this appropriation may be 
  8.54  transferred to the board of water and 
  8.55  soil resources for the feedlot upgrade 
  8.56  cost-share program. 
  8.57  Sec. 7.  OFFICE OF    
  8.58  TECHNOLOGY                                          100,000,000
  9.1   This appropriation is to the executive 
  9.2   director of the office of technology 
  9.3   for information technology projects 
  9.4   authorized or approved by the executive 
  9.5   director under Minnesota Statutes, 
  9.6   chapter 16E. 
  9.7      Sec. 8.  [EFFECTIVE DATE.] 
  9.8      This article is effective the day following final enactment.