HF 320

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; modifying the payment of 
  1.3             interest on refunds; amending Minnesota Statutes 2002, 
  1.4             section 289A.56, subdivision 2. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2002, section 289A.56, 
  1.7   subdivision 2, is amended to read: 
  1.8      Subd. 2.  [CORPORATE FRANCHISE, MINING COMPANY, INDIVIDUAL 
  1.9   AND FIDUCIARY INCOME, AND ENTERTAINER TAX OVERPAYMENTS.] 
  1.10  Interest must be paid on an overpayment refunded or credited to 
  1.11  the taxpayer from the date of payment of the tax until the date 
  1.12  the refund is paid or credited.  For purposes of this 
  1.13  subdivision, the prepayment of tax made by withholding of tax at 
  1.14  the source or payment of estimated tax before the due date is 
  1.15  considered paid on the last day prescribed by law for the 
  1.16  payment of the tax by the taxpayer.  A return filed before the 
  1.17  due date is considered as filed on the due date. 
  1.18     When the amount of tax withheld at the source or paid as 
  1.19  estimated tax or allowable as other refundable credits, or 
  1.20  withheld from compensation of entertainers, exceeds the tax 
  1.21  shown on the original return by $10, the amount refunded bears 
  1.22  interest from 90 30 days after (1) the due date of first day of 
  1.23  the calendar year in which the return of the taxpayer is due, or 
  1.24  (2) the date on which the original return is filed, whichever is 
  1.25  later, until the date the refund is paid to the taxpayer.  Where 
  2.1   the amount to be refunded is less than $10, no interest is 
  2.2   paid.  However, to the extent that the basis for the refund is a 
  2.3   net operating loss carryback, interest is computed only from the 
  2.4   end of the taxable year in which the loss occurs. 
  2.5      [EFFECTIVE DATE.] This section is effective for payment of 
  2.6   refunds on returns due after June 30, 2003.