SF 3311

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/24/2025 09:19 a.m.

A bill for an act
relating to taxation; corporate franchise; providing for a contingent increase in the
tax rate; amending Minnesota Statutes 2024, section 290.06, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 290.06, subdivision 1, is amended to read:

Subdivision 1.

Computation, corporations.

new text begin (a) For taxable years beginning after
December 31, 2024, new text end the franchise tax imposed upon corporations shall be computed by
applying to their taxable income the deleted text begin rate deleted text end new text begin greater new text end of new text begin :
new text end

new text begin (1) new text end 9.8 percent new text begin ; or
new text end

new text begin (2) the rate calculated under paragraph (c) new text end .

new text begin (b) Pursuant to enactment of legislation decreasing the corporate franchise tax rate
imposed under section 13001(b) of Public Law 115-97, the commissioner must calculate
the percentage decrease of the rate imposed under section 11(b) of the Internal Revenue
Code as of March 23, 2025, to the rate imposed under section 11(b) of the Internal Revenue
Code in the enacted legislation.
new text end

new text begin (c) Upon the calculation in paragraph (b), the commissioner must calculate the tax rate
that applies under paragraph (a), clause (2). The rate equals 9.8 percent, increased by a
percentage equal to the percentage decrease in paragraph (b), rounded to the nearest twentieth
of a percent.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2024.
new text end