HF 129

as introduced - 84th Legislature, 2005 1st Special Session (2005 - 2005) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; imposing a surcharge on
individual income tax liability; amending Minnesota
Statutes 2004, sections 290.06, by adding a
subdivision; 290.0675, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 290.06, is
amended by adding a subdivision to read:

new text begin Subd. 2g. new text end

new text begin Temporary income surcharge. new text end

new text begin (a) In addition to
the tax computed under subdivision 2c and section 290.091, a
surcharge is imposed on individuals, estates, and trusts. The
surcharge equals the following rate multiplied by the tax under
subdivision 2c and section 290.091:
new text end

new text begin (1) for taxable years beginning after December 31, 2004,
and before January 1, 2006, ... percent;
new text end

new text begin (2) for taxable years beginning after December 31, 2005,
and before January 1, 2007, ... percent;
new text end

new text begin (3) for taxable years beginning after December 31, 2006,
and before January 1, 2008, ... percent; and
new text end

new text begin (4) for taxable years beginning after December 31, 2007, 0
percent.
new text end

new text begin (b) By October 1, 2006, the commissioner of finance shall
estimate the amounts that will be available at the close of the
biennium in the state's (i) unrestricted general fund balance,
prior to the transfer of any amounts to designated funds or
accounts, (ii) budget reserve account, and (iii) cash-flow
account. If the sum of these three amounts is greater than
$1,000,000,000, the commissioner shall reduce the rate of the
surcharge under this subdivision in effect for the following
taxable year so that the amount of revenue raised by the
surcharge and all other general fund revenues results in an
unrestricted general fund balance, budget reserve account, and
cash-flow account at the close of the biennium of no more than
$1,000,000,000. The rate must be rounded to the next one-tenth
of one percent. No adjustment is required if the change in the
rate of the surcharge would be less than one-tenth of one
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, 2004.
new text end

Sec. 2.

Minnesota Statutes 2004, section 290.0675, is
amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Adjustment for surcharge. new text end

new text begin The credit allowed
under this section is increased by the percentage rate of the
surcharge in effect for the taxable year under section 290.06,
subdivision 2g. This increase is applied before the adjustment
under subdivision 4.
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, 2004.
new text end