<a id="pl.1.4"></a><var>1.4</var>changes to income, corporate franchise, estate, sales, use, minerals, mortgage, <br/>
<a id="pl.1.5"></a><var>1.5</var>property, gross receipts, gambling, cigarette, tobacco, liquor, insurance, and <br/>
<a id="pl.1.6"></a><var>1.6</var>various taxes and tax-related provisions; modifying local government aid and <br/>
<a id="pl.1.7"></a><var>1.7</var>tax data provision; appropriating money; amending Minnesota Statutes 2008, <br/>
<a id="pl.1.8"></a><var>1.8</var>sections 126C.21, subdivision 4; 126C.48, subdivision 8; 270B.14, subdivision <br/>
<a id="pl.1.9"></a><var>1.9</var>16; 270C.02, subdivision 1; 270C.12, by adding a subdivision; 270C.446, <br/>
<a id="pl.1.10"></a><var>1.10</var>subdivisions 2, 5; 270C.56, subdivision 1; 273.11, subdivision 23; 273.111, <br/>
<a id="pl.1.11"></a><var>1.11</var>subdivision 4; 273.1115, subdivision 2; 273.113, subdivisions 1, 2; 273.1231, <br/>
<a id="pl.1.12"></a><var>1.12</var>subdivision 8; 273.124, subdivision 21; 273.13, subdivisions 23, 25, 33; 273.33, <br/>
<a id="pl.1.13"></a><var>1.13</var>subdivision 2; 273.37, subdivision 2; 274.13, subdivision 2; 274.135, subdivision <br/>
<a id="pl.1.14"></a><var>1.14</var>3; 274.14; 274.175; 275.70, subdivision 5; 275.71, subdivision 4; 287.04; 287.05, <br/>
<a id="pl.1.15"></a><var>1.15</var>by adding a subdivision; 287.22; 287.25; 289A.08, subdivision 3; 289A.12, by <br/>
<a id="pl.1.16"></a><var>1.16</var>adding a subdivision; 289A.18, subdivision 1; 289A.19, subdivision 4; 289A.38, <br/>
<a id="pl.1.17"></a><var>1.17</var>subdivision 7; 289A.41; 290.0671, subdivision 1; 290A.10; 290A.14; 290C.06; <br/>
<a id="pl.1.18"></a><var>1.18</var>290C.07; 295.56; 295.57, subdivision 5; 296A.21, subdivision 1; 297A.70, <br/>
<a id="pl.1.19"></a><var>1.19</var>subdivisions 2, 4; 297A.992, subdivision 2; 297A.993, subdivision 1; 297E.02, <br/>
<a id="pl.1.20"></a><var>1.20</var>subdivision 4; 297E.06, by adding a subdivision; 297E.11, subdivision 1; <br/>
<a id="pl.1.21"></a><var>1.21</var>297F.09, subdivision 7; 297G.09, subdivision 6; 297I.30, by adding a subdivision; <br/>
<a id="pl.1.22"></a><var>1.22</var>297I.35, subdivision 2; 298.28, subdivisions 4, 11; 423A.02, subdivisions 1b, <br/>
<a id="pl.1.23"></a><var>1.23</var>3, by adding a subdivision; 473.843, subdivision 3; 477A.011, subdivisions <br/>
<a id="pl.1.24"></a><var>1.24</var>34, 42; 477A.013, subdivision 8; repealing Minnesota Statutes 2008, sections <br/>
<a id="pl.1.25"></a><var>1.25</var>287.26; 287.27, subdivision 1; 297A.67, subdivision 24; 298.28, subdivisions <br/>
<a id="pl.1.26"></a><var>1.26</var>11a, 13; Minnesota Rules, parts 8115.0200; 8115.0300; 8115.0400; 8115.0500; <br/>
<a id="pl.1.27"></a><var>1.27</var>8115.0600; 8115.1000; 8115.1100; 8115.1200; 8115.1300; 8115.1400; <br/>
<a id="pl.1.28"></a><var>1.28</var>8115.1500; 8115.1600; 8115.1700; 8115.1800; 8115.1900; 8115.2000; <br/>
<a id="pl.1.29"></a><var>1.29</var>8115.2100; 8115.2200; 8115.2300; 8115.2400; 8115.2500; 8115.2600; <br/>
<a id="pl.1.30"></a><var>1.30</var>8115.2700; 8115.2800; 8115.2900; 8115.3000; 8115.4000; 8115.4100; <br/>
<a id="pl.1.31"></a><var>1.31</var>8115.4200; 8115.4300; 8115.4400; 8115.4500; 8115.4600; 8115.4700; <br/>
<a id="pl.1.32"></a><var>1.32</var>8115.4800; 8115.4900; 8115.5000; 8115.5100; 8115.5200; 8115.5300; <br/>
<a id="pl.1.33"></a><var>1.33</var>8115.5400; 8115.5500; 8115.5600; 8115.5700; 8115.5800; 8115.5900; <br/>
<a id="pl.1.34"></a><var>1.34</var>8115.6000; 8115.6100; 8115.6200; 8115.6300; 8115.6400; 8115.9900.<br/>
<a id="pl.1.35"></a><var>1.35</var>May 7, 2009<br/>
<a id="pl.1.36"></a><var>1.36</var>The Honorable Margaret Anderson Kelliher<br/>
<a id="pl.1.37"></a><var>1.37</var>Speaker of the House of Representatives<br/>
<a id="pl.1.38"></a><var>1.38</var>The Honorable James P. Metzen<br/>
<a id="pl.1.39"></a><var>1.39</var>President of the Senate<br/>
<a id="pl.2.1"></a><var>2.1</var>We, the undersigned conferees for H. F. No. 885 report that we have agreed upon the <br/>
<a id="pl.2.2"></a><var>2.2</var>items in dispute and recommend as follows:<br/>
<a id="pl.2.3"></a><var>2.3</var>That the Senate recede from its amendment and that H. F. No. 885 be further <br/>
<a id="pl.2.4"></a><var>2.4</var>amended as follows:<br/>
<a id="pl.2.5"></a><var>2.5</var>Delete everything after the enacting clause and insert:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.2.6"></a><var>2.6</var>    "Section 1. Minnesota Statutes 2008, section 290.06, subdivision 2c, is amended to <br/>
<a id="pl.2.7"></a><var>2.7</var>read:<br/>
<a id="pl.2.8"></a><var>2.8</var>    Subd. 2c.  <b>Schedules of rates for individuals, estates, and trusts.</b> (a) The income <br/>
<a id="pl.2.9"></a><var>2.9</var>taxes imposed by this chapter upon married individuals filing joint returns and surviving <br/>
<a id="pl.2.10"></a><var>2.10</var>spouses as defined in section 2(a) of the Internal Revenue Code must be computed by <br/>
<a id="pl.2.11"></a><var>2.11</var>applying to their taxable net income the following schedule of rates:<br/>
<a id="pl.2.12"></a><var>2.12</var>    (1) on the first $25,680 $33,220, 5.35 percent;<br/>
<a id="pl.2.13"></a><var>2.13</var>    (2) on all over $25,680 $33,220, but not over $102,030 $131,970, 7.05 percent;<br/>
<a id="pl.2.14"></a><var>2.14</var>    (3) on all over $102,030 $131,970, but not over $250,000, 7.85 percent.; and<br/>
<a id="pl.2.15"></a><var>2.15</var>(4) on all over $250,000, nine percent.<br/>
<a id="pl.2.16"></a><var>2.16</var>    Married individuals filing separate returns, estates, and trusts must compute their <br/>
<a id="pl.2.17"></a><var>2.17</var>income tax by applying the above rates to their taxable income, except that the income <br/>
<a id="pl.2.18"></a><var>2.18</var>brackets will be one-half of the above amounts.<br/>
<a id="pl.2.19"></a><var>2.19</var>    (b) The income taxes imposed by this chapter upon unmarried individuals must be <br/>
<a id="pl.2.20"></a><var>2.20</var>computed by applying to taxable net income the following schedule of rates:<br/>
<a id="pl.2.21"></a><var>2.21</var>    (1) on the first $17,570 $22,730, 5.35 percent;<br/>
<a id="pl.2.22"></a><var>2.22</var>    (2) on all over $17,570 $22,730, but not over $57,710 $74,650, 7.05 percent;<br/>
<a id="pl.2.23"></a><var>2.23</var>    (3) on all over $57,710 $74,650, but not over $141,250, 7.85 percent.; and<br/>
<a id="pl.2.24"></a><var>2.24</var>(4) on all over $141,250, nine percent.<br/>
<a id="pl.2.25"></a><var>2.25</var>    (c) The income taxes imposed by this chapter upon unmarried individuals qualifying <br/>
<a id="pl.2.26"></a><var>2.26</var>as a head of household as defined in section 2(b) of the Internal Revenue Code must be <br/>
<a id="pl.2.27"></a><var>2.27</var>computed by applying to taxable net income the following schedule of rates:<br/>
<a id="pl.2.28"></a><var>2.28</var>    (1) on the first $21,630 $27,980, 5.35 percent;<br/>
<a id="pl.2.29"></a><var>2.29</var>    (2) on all over $21,630 $27,980, but not over $86,910 $112,420, 7.05 percent;<br/>
<a id="pl.2.30"></a><var>2.30</var>    (3) on all over $86,910 $112,420, but not over $212,500, 7.85 percent.; and<br/>
<a id="pl.2.31"></a><var>2.31</var>(4) on all over $212,500, nine percent.<br/>
<a id="pl.2.32"></a><var>2.32</var>    (d) In lieu of a tax computed according to the rates set forth in this subdivision, the <br/>
<a id="pl.2.33"></a><var>2.33</var>tax of any individual taxpayer whose taxable net income for the taxable year is less than <br/>
<a id="pl.2.34"></a><var>2.34</var>an amount determined by the commissioner must be computed in accordance with tables <br/>
<a id="pl.2.35"></a><var>2.35</var>prepared and issued by the commissioner of revenue based on income brackets of not <br/>
<a id="pl.2.36"></a><var>2.36</var>more than $100. The amount of tax for each bracket shall be computed at the rates set <br/>
<a id="pl.3.1"></a><var>3.1</var>forth in this subdivision, provided that the commissioner may disregard a fractional part of <br/>
<a id="pl.3.2"></a><var>3.2</var>a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.<br/>
<a id="pl.3.3"></a><var>3.3</var>    (e) An individual who is not a Minnesota resident for the entire year must compute <br/>
<a id="pl.3.4"></a><var>3.4</var>the individual's Minnesota income tax as provided in this subdivision. After the <br/>
<a id="pl.3.5"></a><var>3.5</var>application of the nonrefundable credits provided in this chapter, the tax liability must <br/>
<a id="pl.3.6"></a><var>3.6</var>then be multiplied by a fraction in which:<br/>
<a id="pl.3.7"></a><var>3.7</var>    (1) the numerator is the individual's Minnesota source federal adjusted gross income <br/>
<a id="pl.3.8"></a><var>3.8</var>as defined in section 62 of the Internal Revenue Code and increased by the additions <br/>
<a id="pl.3.9"></a><var>3.9</var>required under section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clauses (1), (5), (6), (7), (8), (9), (12), and <br/>
<a id="pl.3.10"></a><var>3.10</var>(13) and reduced by the Minnesota assignable portion of the subtraction for United States <br/>
<a id="pl.3.11"></a><var>3.11</var>government interest under section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clause (1), and the subtractions <br/>
<a id="pl.3.12"></a><var>3.12</var>under section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clauses (9), (10), (14), (15), and (16), after applying <br/>
<a id="pl.3.13"></a><var>3.13</var>the allocation and assignability provisions of section 
         <statute_ref>290.081</statute_ref>, clause (a), or 
         <statute_ref>290.17</statute_ref>; and<br/>
<a id="pl.3.14"></a><var>3.14</var>    (2) the denominator is the individual's federal adjusted gross income as defined in <br/>
<a id="pl.3.15"></a><var>3.15</var>section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in <br/>
<a id="pl.3.16"></a><var>3.16</var>section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clauses (1), (5), (6), (7), (8), (9), (12), and (13) and <br/>
<a id="pl.3.17"></a><var>3.17</var>reduced by the amounts specified in section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clauses (1), (9), <br/>
<a id="pl.3.18"></a><var>3.18</var>(10), (14), (15), and (16).<br/>
<a id="pl.3.19"></a><var>3.19</var>(f) For taxable years beginning after December 31, 2013, the maximum tax rate <br/>
<a id="pl.3.20"></a><var>3.20</var>under this subdivision is 7.85 percent, if the commissioner of finance estimates in the <br/>
<a id="pl.3.21"></a><var>3.21</var>February 2013 economic forecast that the unrestricted general fund balance at the end of <br/>
<a id="pl.3.22"></a><var>3.22</var>fiscal year 2013 equals or exceeds $500,000,000.<br/>
<a id="pl.3.23"></a><var>3.23</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.3.24"></a><var>3.24</var>December 31, 2008.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.3.25"></a><var>3.25</var>    Sec. 2. Minnesota Statutes 2008, section 290.06, subdivision 2d, is amended to read:<br/>
<a id="pl.3.26"></a><var>3.26</var>    Subd. 2d. <b>Inflation adjustment of brackets.</b> (a) For taxable years beginning after <br/>
<a id="pl.3.27"></a><var>3.27</var>December 31, 2000 2009, the minimum and maximum dollar amounts for each rate <br/>
<a id="pl.3.28"></a><var>3.28</var>bracket for which a tax is imposed in subdivision 2c shall be adjusted for inflation by the <br/>
<a id="pl.3.29"></a><var>3.29</var>percentage determined under paragraph (b). For the purpose of making the adjustment as <br/>
<a id="pl.3.30"></a><var>3.30</var>provided in this subdivision all of the rate brackets provided in subdivision 2c shall be the <br/>
<a id="pl.3.31"></a><var>3.31</var>rate brackets as they existed for taxable years beginning after December 31, 1999 2008, <br/>
<a id="pl.3.32"></a><var>3.32</var>and before January 1, 2001 2010. The rate applicable to any rate bracket must not be <br/>
<a id="pl.3.33"></a><var>3.33</var>changed. The dollar amounts setting forth the tax shall be adjusted to reflect the changes <br/>
<a id="pl.3.34"></a><var>3.34</var>in the rate brackets. The rate brackets as adjusted must be rounded to the nearest $10 <br/>
<a id="pl.3.35"></a><var>3.35</var>amount. If the rate bracket ends in $5, it must be rounded up to the nearest $10 amount.<br/>
<a id="pl.4.1"></a><var>4.1</var>(b) The commissioner shall adjust the rate brackets and by the percentage determined <br/>
<a id="pl.4.2"></a><var>4.2</var>pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that:<br/>
<a id="pl.4.3"></a><var>4.3</var>(1) in section 1(f)(2)(A) the words "increasing or decreasing" shall be substituted <br/>
<a id="pl.4.4"></a><var>4.4</var>for the word "increasing";<br/>
<a id="pl.4.5"></a><var>4.5</var>(2) in section 1(f)(3)(A) the words "differs from" shall be substituted for the word <br/>
<a id="pl.4.6"></a><var>4.6</var>"exceeds"; and <br/>
<a id="pl.4.7"></a><var>4.7</var>(3) in section 1(f)(3)(B) the word "1999" "2008" shall be substituted for the word <br/>
<a id="pl.4.8"></a><var>4.8</var>"1992." For 2001 2010, the commissioner shall then determine the percent change from <br/>
<a id="pl.4.9"></a><var>4.9</var>the 12 months ending on August 31, 1999 2008, to the 12 months ending on August 31, <br/>
<a id="pl.4.10"></a><var>4.10</var>2000 2009, and in each subsequent year, from the 12 months ending on August 31, 1999 <br/>
<a id="pl.4.11"></a><var>4.11</var>2008, to the 12 months ending on August 31 of the year preceding the taxable year. The <br/>
<a id="pl.4.12"></a><var>4.12</var>determination of the commissioner pursuant to this subdivision shall not be considered a <br/>
<a id="pl.4.13"></a><var>4.13</var>"rule" and shall not be subject to the Administrative Procedure Act contained in chapter 14.<br/>
<a id="pl.4.14"></a><var>4.14</var>No later than December 15 of each year, the commissioner shall announce the <br/>
<a id="pl.4.15"></a><var>4.15</var>specific percentage that will be used to adjust the tax rate brackets.<br/>
<a id="pl.4.16"></a><var>4.16</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.4.17"></a><var>4.17</var>December 31, 2008.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.4.18"></a><var>4.18</var>    Sec. 3. <b>[290.094] SURTAX ON CERTAIN INTEREST INCOME.</b><br/>
<a id="pl.4.19"></a><var>4.19</var>    Subdivision 1. <b>Definitions.</b> (a) Unless the language or context clearly indicates that <br/>
<a id="pl.4.20"></a><var>4.20</var>a different meaning is intended, for the purposes of this section, the following terms <br/>
<a id="pl.4.21"></a><var>4.21</var>have the meanings given them.<br/>
<a id="pl.4.22"></a><var>4.22</var>(b) "Annual percentage rate" has the meaning given the term in Code of Federal <br/>
<a id="pl.4.23"></a><var>4.23</var>Regulations, title 12, parts 226.14 and 226.22, related to open-end and closed-end credit.<br/>
<a id="pl.4.24"></a><var>4.24</var>(c) "Borrower" means a debtor under a loan or a purchaser of debt under a credit <br/>
<a id="pl.4.25"></a><var>4.25</var>sale contract.<br/>
<a id="pl.4.26"></a><var>4.26</var>(d) "Cardholder" means a person to whom a credit card is issued or who has agreed <br/>
<a id="pl.4.27"></a><var>4.27</var>with the financial institution to pay obligations arising from the issuance to or use of the <br/>
<a id="pl.4.28"></a><var>4.28</var>card by another person.<br/>
<a id="pl.4.29"></a><var>4.29</var>(e) "Consumer loan" means a loan made by a financial institution in which:<br/>
<a id="pl.4.30"></a><var>4.30</var>(1) the debtor is a person other than an organization;<br/>
<a id="pl.4.31"></a><var>4.31</var>(2) the debt is incurred primarily for a personal, family, or household purpose; and<br/>
<a id="pl.4.32"></a><var>4.32</var>(3) the debt is payable in installments or a finance charge is made.<br/>
<a id="pl.4.33"></a><var>4.33</var>(f) "Credit" means the right granted by a financial institution to a borrower to defer <br/>
<a id="pl.4.34"></a><var>4.34</var>payment of a debt, to incur debt and defer its payment, or to purchase property or services <br/>
<a id="pl.4.35"></a><var>4.35</var>and defer payment.<br/>
<a id="pl.5.1"></a><var>5.1</var>(g) "Credit card" means a card or device issued under an arrangement under <br/>
<a id="pl.5.2"></a><var>5.2</var>which a financial institution gives to a cardholder the privilege of obtaining credit from <br/>
<a id="pl.5.3"></a><var>5.3</var>the financial institution or other person in purchasing or leasing property or services, <br/>
<a id="pl.5.4"></a><var>5.4</var>obtaining loans, or otherwise. A transaction is "pursuant to a credit card" only if credit is <br/>
<a id="pl.5.5"></a><var>5.5</var>obtained according to the terms of the arrangement by transmitting information contained <br/>
<a id="pl.5.6"></a><var>5.6</var>on the card or device orally, in writing, by mechanical or electronic methods, or in any <br/>
<a id="pl.5.7"></a><var>5.7</var>other manner. A transaction is not "pursuant to a credit card" if the card or device is <br/>
<a id="pl.5.8"></a><var>5.8</var>used solely in that transaction to:<br/>
<a id="pl.5.9"></a><var>5.9</var>(1) identify the cardholder or evidence the cardholder's creditworthiness and credit is <br/>
<a id="pl.5.10"></a><var>5.10</var>not obtained according to the terms of the arrangement;<br/>
<a id="pl.5.11"></a><var>5.11</var>(2) obtain a guarantee of payment from the cardholder's deposit account, whether or <br/>
<a id="pl.5.12"></a><var>5.12</var>not the payment results in a credit extension to the cardholder by the financial institution; or<br/>
<a id="pl.5.13"></a><var>5.13</var>(3) effect an immediate transfer of funds from the cardholder's deposit account by <br/>
<a id="pl.5.14"></a><var>5.14</var>electronic or other means, whether or not the transfer results in a credit extension to <br/>
<a id="pl.5.15"></a><var>5.15</var>the cardholder by the financial institution.<br/>
<a id="pl.5.16"></a><var>5.16</var>(h) "Credit sale contract" means a contract evidencing a credit sale. "Credit sale" <br/>
<a id="pl.5.17"></a><var>5.17</var>means a sale of goods or services, or an interest in land, in which:<br/>
<a id="pl.5.18"></a><var>5.18</var>(1) credit is granted by a seller who regularly engages as a seller in credit transactions <br/>
<a id="pl.5.19"></a><var>5.19</var>of the same kind; and<br/>
<a id="pl.5.20"></a><var>5.20</var>(2) the debt is payable in installments or a finance charge is made.<br/>
<a id="pl.5.21"></a><var>5.21</var>(i) "Financial institution" means a state or federally chartered bank, a state or <br/>
<a id="pl.5.22"></a><var>5.22</var>federally chartered bank and trust, a trust company with banking powers, a state or <br/>
<a id="pl.5.23"></a><var>5.23</var>federally chartered savings association, an industrial loan and thrift company organized <br/>
<a id="pl.5.24"></a><var>5.24</var>under chapter 53, a regulated lender organized under chapter 56, or an operating subsidiary <br/>
<a id="pl.5.25"></a><var>5.25</var>of any such institution.<br/>
<a id="pl.5.26"></a><var>5.26</var>(j) "Loan" means:<br/>
<a id="pl.5.27"></a><var>5.27</var>(1) the creation of debt by the financial institution's payment of money to the <br/>
<a id="pl.5.28"></a><var>5.28</var>borrower or a third person for the account of the borrower;<br/>
<a id="pl.5.29"></a><var>5.29</var>(2) the creation of debt pursuant to a credit card in any manner, including a cash <br/>
<a id="pl.5.30"></a><var>5.30</var>advance or the financial institution's honoring a draft or similar order for the payment of <br/>
<a id="pl.5.31"></a><var>5.31</var>money drawn or accepted by the borrower, paying or agreeing to pay the borrower's <br/>
<a id="pl.5.32"></a><var>5.32</var>obligation, or purchasing or otherwise acquiring the borrower's obligation from the <br/>
<a id="pl.5.33"></a><var>5.33</var>obligee or the borrower's assignee;<br/>
<a id="pl.5.34"></a><var>5.34</var>(3) the creation of debt by a cash advance to a borrower pursuant to an overdraft <br/>
<a id="pl.5.35"></a><var>5.35</var>line of credit arrangement;<br/>
<a id="pl.6.1"></a><var>6.1</var>(4) the creation of debt by a credit to an account with the financial institution upon <br/>
<a id="pl.6.2"></a><var>6.2</var>which the borrower is entitled to draw immediately;<br/>
<a id="pl.6.3"></a><var>6.3</var>(5) the forbearance of debt arising from a loan; and<br/>
<a id="pl.6.4"></a><var>6.4</var>(6) the creation of debt pursuant to open-end credit.<br/>
<a id="pl.6.5"></a><var>6.5</var>"Loan" does not include the forbearance of debt arising from a sale or lease, a credit <br/>
<a id="pl.6.6"></a><var>6.6</var>sale contract, or an overdraft from a person's deposit account with a financial institution <br/>
<a id="pl.6.7"></a><var>6.7</var>which is not pursuant to a written agreement to pay overdrafts with the right to defer <br/>
<a id="pl.6.8"></a><var>6.8</var>repayment thereof.<br/>
<a id="pl.6.9"></a><var>6.9</var>(k) "Organization" means a corporation, government, government subdivision or <br/>
<a id="pl.6.10"></a><var>6.10</var>agency, trust, estate, partnership, joint venture, cooperative, limited liability company, <br/>
<a id="pl.6.11"></a><var>6.11</var>limited liability partnership, or association.<br/>
<a id="pl.6.12"></a><var>6.12</var>(l) "Person" means a natural person or an organization.<br/>
<a id="pl.6.13"></a><var>6.13</var>(m) "Principal" means the total of:<br/>
<a id="pl.6.14"></a><var>6.14</var>(1) the amount paid to, received by, or paid or repayable for the account of, the <br/>
<a id="pl.6.15"></a><var>6.15</var>borrower; and<br/>
<a id="pl.6.16"></a><var>6.16</var>(2) to the extent that payment is deferred:<br/>
<a id="pl.6.17"></a><var>6.17</var>(i) the amount actually paid or to be paid by the financial institution for additional <br/>
<a id="pl.6.18"></a><var>6.18</var>charges permitted under this section; and<br/>
<a id="pl.6.19"></a><var>6.19</var>(ii) prepaid finance charges.<br/>
<a id="pl.6.20"></a><var>6.20</var>    Subd. 2. <b>Scope.</b> (a) Any person or organization conducting a trade or business <br/>
<a id="pl.6.21"></a><var>6.21</var>in this state who is subject to the truth in lending requirements under Code of Federal <br/>
<a id="pl.6.22"></a><var>6.22</var>Regulations, title 12, part 226 (Federal Regulation Z), and who charges interest on the <br/>
<a id="pl.6.23"></a><var>6.23</var>credit issued shall be subject to a surtax on each transaction as prescribed by this chapter. <br/>
<a id="pl.6.24"></a><var>6.24</var>Transactions include any open-end and closed-end credit transactions subject to Federal <br/>
<a id="pl.6.25"></a><var>6.25</var>Regulation Z such as loans, consumer loans, credit sale contracts, extensions of credit, and <br/>
<a id="pl.6.26"></a><var>6.26</var>credit issued pursuant to a credit card. A transferee or assignee of a transaction subject to <br/>
<a id="pl.6.27"></a><var>6.27</var>the surtax under this section is also subject to the tax under this section.<br/>
<a id="pl.6.28"></a><var>6.28</var>(b) The tax shall be determined for each transaction subject to the requirements of <br/>
<a id="pl.6.29"></a><var>6.29</var>this section that occurs during the calendar year.<br/>
<a id="pl.6.30"></a><var>6.30</var>    Subd. 3. <b>Surtax rate.</b> The surtax shall be imposed at the rate of 30 percent on any <br/>
<a id="pl.6.31"></a><var>6.31</var>income attributable to interest collected from the portion of an annual percentage rate <br/>
<a id="pl.6.32"></a><var>6.32</var>that exceeds 15 percent on transactions subject to Code of Federal Regulations, title 12, <br/>
<a id="pl.6.33"></a><var>6.33</var>part 226 (Federal Regulation Z).<br/>
<a id="pl.7.1"></a><var>7.1</var>    Subd. 4. <b>Collection and administration.</b> The tax imposed by this section shall <br/>
<a id="pl.7.2"></a><var>7.2</var>be paid annually to the commissioner of revenue and is subject to the same collection, <br/>
<a id="pl.7.3"></a><var>7.3</var>enforcement, and penalty provisions as other taxes imposed by this chapter.<br/>
<a id="pl.7.4"></a><var>7.4</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.7.5"></a><var>7.5</var>December 31, 2008.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.7.6"></a><var>7.6</var>    Sec. 4. Minnesota Statutes 2008, section 295.75, subdivision 2, is amended to read:<br/>
<a id="pl.7.7"></a><var>7.7</var>    Subd. 2. <b>Gross receipts tax imposed.</b> A tax is imposed on each liquor retailer equal <br/>
<a id="pl.7.8"></a><var>7.8</var>to 2.5 five percent of gross receipts from retail sales in Minnesota of liquor.<br/>
<a id="pl.7.9"></a><var>7.9</var><b>EFFECTIVE DATE.</b>This section is effective for gross receipts received after <br/>
<a id="pl.7.10"></a><var>7.10</var>June 30, 2009.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.7.11"></a><var>7.11</var>    Sec. 5. Minnesota Statutes 2008, section 297G.03, subdivision 1, is amended to read:<br/>
<a id="pl.7.12"></a><var>7.12</var>    Subdivision 1. <b>General rate; distilled spirits and wine.</b> The following excise tax is <br/>
<a id="pl.7.13"></a><var>7.13</var>imposed on all distilled spirits and wine manufactured, imported, sold, or possessed in <br/>
<a id="pl.7.14"></a><var>7.14</var>this state:<br/>
<table>
<col width="50px"/>
<col width="25"/>
<col width="6"/>
<col width="2.5"/>
<col width="10.5"/>
<col width="7.5"/>
<col width="2.5"/>
<col width="8.5"/>
<tr>
<td><a id="pl.7.15"></a><var>7.15</var><br/>
</td>
<td></td>
<td></td>
<td></td>
<td align="center">Standard<br/>
</td>
<td></td>
<td></td>
<td align="center">Metric<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.16"></a><var>7.16</var><br/>
<a id="pl.7.17"></a><var>7.17</var><br/>
<a id="pl.7.18"></a><var>7.18</var><br/>
<a id="pl.7.19"></a><var>7.19</var><br/>
</td>
<td valign="top">(a) Distilled spirits, liqueurs, <br/>
                  		cordials, and specialties regardless <br/>
                  		of alcohol content (excluding ethyl <br/>
                  		alcohol)<br/>
</td>
<td></td>
<td align="right" valign="top">$<br/>
</td>
<td align="right" valign="top">5.037.59 per <br/>
                  		gallon<br/>
</td>
<td></td>
<td align="right" valign="top">$<br/>
</td>
<td align="right" valign="top">1.33  2.01 <br/>
                  		per liter<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.20"></a><var>7.20</var><br/>
<a id="pl.7.21"></a><var>7.21</var><br/>
<a id="pl.7.22"></a><var>7.22</var><br/>
<a id="pl.7.23"></a><var>7.23</var><br/>
</td>
<td valign="top">(b) Wine containing 14 percent <br/>
                  		or less alcohol by volume (except <br/>
                  		cider as defined in section 
                  <statute_ref>297G.01, <br/>
                     		subdivision 3a)<br/>
</statute_ref>
</td>
<td></td>
<td align="right" valign="top">$<br/>
</td>
<td align="right" valign="top">.30.81 per <br/>
                  		gallon<br/>
</td>
<td></td>
<td align="right" valign="top">$<br/>
</td>
<td align="right" valign="top">.08.22 per <br/>
                  		liter<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.24"></a><var>7.24</var><br/>
<a id="pl.7.25"></a><var>7.25</var><br/>
<a id="pl.7.26"></a><var>7.26</var><br/>
</td>
<td valign="top">(c) Wine containing more than <br/>
                  		14 percent but not more than 21 <br/>
                  		percent alcohol by volume<br/>
</td>
<td></td>
<td align="right" valign="top">$<br/>
</td>
<td align="right" valign="top">.951.46 per <br/>
                  		gallon<br/>
</td>
<td></td>
<td align="right" valign="top">$<br/>
</td>
<td align="right" valign="top">.25.39 per <br/>
                  		liter<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.27"></a><var>7.27</var><br/>
<a id="pl.7.28"></a><var>7.28</var><br/>
<a id="pl.7.29"></a><var>7.29</var><br/>
</td>
<td valign="top">(d) Wine containing more than <br/>
                  		21 percent but not more than 24 <br/>
                  		percent alcohol by volume<br/>
</td>
<td></td>
<td align="right" valign="top">$<br/>
</td>
<td align="right" valign="top">1.822.33 per <br/>
                  		gallon<br/>
</td>
<td></td>
<td align="right" valign="top">$<br/>
</td>
<td align="right" valign="top">.48.62 per <br/>
                  		liter<br/>
</td>
</tr>
<tr>
<td><a id="pl.7.30"></a><var>7.30</var><br/>
<a id="pl.7.31"></a><var>7.31</var><br/>
</td>
<td valign="top">(e) Wine containing more than 24 <br/>
                  		percent alcohol by volume<br/>
</td>
<td></td>
<td align="right" valign="top">$<br/>
</td>
<td align="right" valign="top">3.524.03 per <br/>
                  		gallon<br/>
</td>
<td></td>
<td align="right" valign="top">$<br/>
</td>
<td align="right" valign="top">.931.07 <br/>
                  		per liter<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.1"></a><var>8.1</var><br/>
<a id="pl.8.2"></a><var>8.2</var><br/>
</td>
<td valign="top">(f) Natural and artificial sparkling <br/>
                  		wines containing alcohol<br/>
</td>
<td></td>
<td align="right" valign="top">$<br/>
</td>
<td align="right" valign="top">1.822.33 per <br/>
                  		gallon<br/>
</td>
<td></td>
<td align="right" valign="top">$<br/>
</td>
<td align="right" valign="top">.48.62 per <br/>
                  		liter<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.3"></a><var>8.3</var><br/>
<a id="pl.8.4"></a><var>8.4</var><br/>
</td>
<td valign="top">(g) Cider as defined in section <br/>
<statute_ref>297G.01, subdivision 3a<br/>
</statute_ref>
</td>
<td></td>
<td align="right" valign="top">$<br/>
</td>
<td align="right" valign="top">.15.66 per <br/>
                  		gallon<br/>
</td>
<td></td>
<td align="right" valign="top">$<br/>
</td>
<td align="right" valign="top">.04.18 per <br/>
                  		liter<br/>
</td>
</tr>
<tr>
<td><a id="pl.8.5"></a><var>8.5</var><br/>
</td>
<td valign="top">(h) Low alcohol dairy cocktails<br/>
</td>
<td></td>
<td align="right" valign="top">$<br/>
</td>
<td align="right" valign="top">.08 per gallon<br/>
</td>
<td></td>
<td align="right" valign="top">$<br/>
</td>
<td align="right" valign="top">.02 per liter<br/>
</td>
</tr>
</table><a id="pl.8.6"></a><var>8.6</var>In computing the tax on a package of distilled spirits or wine, a proportional tax at a <br/>
<a id="pl.8.7"></a><var>8.7</var>like rate on all fractional parts of a gallon or liter must be paid, except that the tax on a <br/>
<a id="pl.8.8"></a><var>8.8</var>fractional part of a gallon less than 1/16 of a gallon is the same as for 1/16 of a gallon.<br/>
<a id="pl.8.9"></a><var>8.9</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.8.10"></a><var>8.10</var>    Sec. 6. Minnesota Statutes 2008, section 297G.04, is amended to read:<br/>
<a id="pl.8.11"></a><var>8.11</var><b>297G.04 FERMENTED MALT BEVERAGES; RATE OF TAX.</b><br/>
<a id="pl.8.12"></a><var>8.12</var>    Subdivision 1. <b>Tax imposed.</b> The following excise tax is imposed on all fermented <br/>
<a id="pl.8.13"></a><var>8.13</var>malt beverages that are imported, directly or indirectly sold, or possessed in this state:<br/>
<a id="pl.8.14"></a><var>8.14</var>(1) on fermented malt beverages containing not more than 3.2 percent alcohol by <br/>
<a id="pl.8.15"></a><var>8.15</var>weight, $2.40 $9.01 per 31-gallon barrel; and<br/>
<a id="pl.8.16"></a><var>8.16</var>(2) on fermented malt beverages containing more than 3.2 percent alcohol by <br/>
<a id="pl.8.17"></a><var>8.17</var>weight, $4.60 $11.21 per 31-gallon barrel.<br/>
<a id="pl.8.18"></a><var>8.18</var>For fractions of a 31-gallon barrel, the tax rate is calculated proportionally.<br/>
<a id="pl.8.19"></a><var>8.19</var>    Subd. 2. <b>Tax credit.</b> A qualified brewer producing fermented malt beverages is <br/>
<a id="pl.8.20"></a><var>8.20</var>entitled to a tax credit of $4.60 $11.21 per barrel on 25,000 barrels sold in any fiscal year <br/>
<a id="pl.8.21"></a><var>8.21</var>beginning July 1, regardless of the alcohol content of the product. Qualified brewers may <br/>
<a id="pl.8.22"></a><var>8.22</var>take the credit on the 18th day of each month, but the total credit allowed may not exceed <br/>
<a id="pl.8.23"></a><var>8.23</var>in any fiscal year the lesser of:<br/>
<a id="pl.8.24"></a><var>8.24</var>(1) the liability for tax; or<br/>
<a id="pl.8.25"></a><var>8.25</var>(2) $115,000 $280,000.<br/>
<a id="pl.8.26"></a><var>8.26</var>For purposes of this subdivision, a "qualified brewer" means a brewer, whether <br/>
<a id="pl.8.27"></a><var>8.27</var>or not located in this state, manufacturing less than 100,000 barrels of fermented malt <br/>
<a id="pl.8.28"></a><var>8.28</var>beverages in the calendar year immediately preceding the calendar year for which the <br/>
<a id="pl.8.29"></a><var>8.29</var>credit under this subdivision is claimed. In determining the number of barrels, all brands <br/>
<a id="pl.8.30"></a><var>8.30</var>or labels of a brewer must be combined. All facilities for the manufacture of fermented <br/>
<a id="pl.8.31"></a><var>8.31</var>malt beverages owned or controlled by the same person, corporation, or other entity <br/>
<a id="pl.8.32"></a><var>8.32</var>must be treated as a single brewer.<br/>
<a id="pl.8.33"></a><var>8.33</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2009.<br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.9.1"></a><var>9.1</var>    Sec. 7. <b>GENERAL FUND ACCOUNTS; FISCAL YEARS 2010-2013.</b><br/>
<a id="pl.9.2"></a><var>9.2</var>    Subdivision 1. <b>E-12 education account.</b> An E-12 education account is created in <br/>
<a id="pl.9.3"></a><var>9.3</var>the general fund. Amounts remain in the account until appropriated for E-12 education. <br/>
<a id="pl.9.4"></a><var>9.4</var>Appropriations from the account may only be used for E-12 education.<br/>
<a id="pl.9.5"></a><var>9.5</var>    Subd. 2. <b>Nursing home and long-term care account.</b> A nursing home and <br/>
<a id="pl.9.6"></a><var>9.6</var>long-term care account is created in the general fund. Amounts remain in the account until <br/>
<a id="pl.9.7"></a><var>9.7</var>appropriated for nursing homes or long-term care services. Appropriations from the <br/>
<a id="pl.9.8"></a><var>9.8</var>account may only be used for nursing homes and long-term care services.<br/>
<a id="pl.9.9"></a><var>9.9</var>    Subd. 3. <b>Hospital account.</b> A hospital account is created in the general fund. <br/>
<a id="pl.9.10"></a><var>9.10</var>Amounts remain in the account until appropriated for hospitals. Appropriations from the <br/>
<a id="pl.9.11"></a><var>9.11</var>account may only be used for hospitals.<br/>
<a id="pl.9.12"></a><var>9.12</var>    Subd. 4. <b>Expiration.</b> This section expires June 30, 2013.<br/>
<br/>
<a id="bill.0.8.0"></a><a id="pl.9.13"></a><var>9.13</var>    Sec. 8. <b>TRANSFERS.</b><br/>
<a id="pl.9.14"></a><var>9.14</var>(a) In the fiscal year 2010-2011 biennium, $986,000,000 is transferred to the <br/>
<a id="pl.9.15"></a><var>9.15</var>accounts established in section 7 as follows:<br/>
<a id="pl.9.16"></a><var>9.16</var>(1) $585,784,000 to the E-12 education account;<br/>
<a id="pl.9.17"></a><var>9.17</var>(2) $287,566,000 to the nursing home and long-term care account; and<br/>
<a id="pl.9.18"></a><var>9.18</var>(3) $114,130,000 to the hospital account.<br/>
<a id="pl.9.19"></a><var>9.19</var>(b) In the fiscal year 2012-2013 biennium, $1,000,000,000 is transferred to the <br/>
<a id="pl.9.20"></a><var>9.20</var>accounts established in section 7 as follows:<br/>
<a id="pl.9.21"></a><var>9.21</var>(1) $465,259,000 to the E-12 education account;<br/>
<a id="pl.9.22"></a><var>9.22</var>(2) $361,643,000 to the nursing home and long-term care account; and<br/>
<a id="pl.9.23"></a><var>9.23</var>(3) $173,978,000 to the hospital account.<br/>
<br/>
<a id="bill.0.9.0"></a><a id="pl.9.24"></a><var>9.24</var>    Sec. 9. <b>APPROPRIATIONS.</b><br/>
<a id="pl.9.25"></a><var>9.25</var>    Subdivision 1. <b>Tax compliance.</b> (a) $1,194,300 the first year and $2,350,200 the <br/>
<a id="pl.9.26"></a><var>9.26</var>second year are appropriated from the general fund to the commissioner of revenue for <br/>
<a id="pl.9.27"></a><var>9.27</var>additional activities to identify and collect tax liabilities from individuals and businesses <br/>
<a id="pl.9.28"></a><var>9.28</var>that currently do not pay all taxes owed. This initiative is expected to result in new general <br/>
<a id="pl.9.29"></a><var>9.29</var>fund revenues of $7,948,700 for the biennium ending June 30, 2011.<br/>
<a id="pl.9.30"></a><var>9.30</var>    (b) The department must report to the chairs of the house of representatives Ways <br/>
<a id="pl.9.31"></a><var>9.31</var>and Means and senate Finance Committees by March 1, 2010, and January 15, 2011, <br/>
<a id="pl.9.32"></a><var>9.32</var>on the following performance indicators:<br/>
<a id="pl.9.33"></a><var>9.33</var>    (1) the number of corporations noncompliant with the corporate tax system each <br/>
<a id="pl.9.34"></a><var>9.34</var>year and the percentage and dollar amounts of valid tax liabilities collected;<br/>
<a id="pl.10.1"></a><var>10.1</var>    (2) the number of businesses noncompliant with the sales and use tax system and the <br/>
<a id="pl.10.2"></a><var>10.2</var>percentage and dollar amount of the valid tax liabilities collected; and<br/>
<a id="pl.10.3"></a><var>10.3</var>    (3) the number of individual noncompliant cases resolved and the percentage and <br/>
<a id="pl.10.4"></a><var>10.4</var>dollar amounts of valid tax liabilities collected.<br/>
<a id="pl.10.5"></a><var>10.5</var>    Subd. 2. <b>Debt collection management.</b> $364,800 the first year and $750,700 the <br/>
<a id="pl.10.6"></a><var>10.6</var>second year are appropriated from the general fund to the commissioner of revenue for <br/>
<a id="pl.10.7"></a><var>10.7</var>additional activities to identify and collect tax liabilities from individuals and businesses <br/>
<a id="pl.10.8"></a><var>10.8</var>that currently do not pay all taxes owed. This initiative is expected to result in new general <br/>
<a id="pl.10.9"></a><var>10.9</var>fund revenues of $10,691,300 for the biennium ending June 30, 2011."<br/>
<a id="pl.10.10"></a><var>10.10</var>Delete the title and insert:<br/>

<a id="pl.10.13"></a><var>10.13</var>income, liquor, gross receipts, and other tax-related provisions; providing a <br/>
<a id="pl.10.14"></a><var>10.14</var>surtax on certain interest income; creating certain accounts in the general fund, <br/>
<a id="pl.10.15"></a><var>10.15</var>including an E-12 education account, a nursing home and long-term care account, <br/>
<a id="pl.10.16"></a><var>10.16</var>and a hospital account; creating tax compliance initiative; appropriating money;<br/>
<a id="pl.10.17"></a><var>10.17</var>amending Minnesota Statutes 2008, sections 290.06, subdivisions 2c, 2d; 295.75, <br/>
<a id="pl.10.18"></a><var>10.18</var>subdivision 2; 297G.03, subdivision 1; 297G.04; proposing coding for new law <br/>
<a id="pl.10.19"></a><var>10.19</var>in Minnesota Statutes, chapter 290."<br/>
         		We request the adoption of this report and repassage of the bill.House Conferees: (Signed) Ann Lenczewski, Morrie Lanning, Mindy Greiling, Erin Murphy, Keith DowneySenate Conferees: (Signed) Thomas Bakk, Rod Skoe, Ann Rest, D. Scott Dibble, Mee Moua
         <table>
<col width="50px"/>
<col width="252px"/>
<col width="42px"/>
<col width="252px"/>
<tr>
<td><a id="pl.11.1"></a><var>11.1</var><br/>
</td>
<td colspan="3">We request the adoption of this report and repassage of the bill.<br/>
</td>
</tr>
<tr>
<td><a id="pl.11.2"></a><var>11.2</var><br/>
</td>
<td>House Conferees:<span width="2em"></span>(Signed)<br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.11.3"></a><var>11.3</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.11.4"></a><var>11.4</var><br/>
</td>
<td>Ann Lenczewski<br/>
</td>
<td></td>
<td>Paul Marquart<br/>
</td>
</tr>
<tr>
<td><a id="pl.11.5"></a><var>11.5</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.11.6"></a><var>11.6</var><br/>
</td>
<td>Mindy Greiling<br/>
</td>
<td></td>
<td>Erin Murphy<br/>
</td>
</tr>
<tr>
<td><a id="pl.11.7"></a><var>11.7</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.11.8"></a><var>11.8</var><br/>
</td>
<td>Keith Downey<br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.11.9"></a><var>11.9</var><br/>
</td>
<td>Senate Conferees:<span width="2em"></span>(Signed)<br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.11.10"></a><var>11.10</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.11.11"></a><var>11.11</var><br/>
</td>
<td>Thomas Bakk<br/>
</td>
<td></td>
<td>Rod Skoe<br/>
</td>
</tr>
<tr>
<td><a id="pl.11.12"></a><var>11.12</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td><span>
                     							.....
                     						</span><br/>
</td>
</tr>
<tr>
<td><a id="pl.11.13"></a><var>11.13</var><br/>
</td>
<td>Ann H. Rest<br/>
</td>
<td></td>
<td>D. Scott Dibble<br/>
</td>
</tr>
<tr>
<td><a id="pl.11.14"></a><var>11.14</var><br/>
</td>
<td><span>
                     							.....
                     						</span><br/>
</td>
<td></td>
<td></td>
</tr>
<tr>
<td><a id="pl.11.15"></a><var>11.15</var><br/>
</td>
<td>Mee Moua<br/>
</td>
<td></td>
<td></td>
</tr>
</table>