as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
|Introduction||Posted on 02/06/2003|
1.1 A bill for an act 1.2 relating to public safety; requiring installation of 1.3 automatic sprinkler systems in certain existing 1.4 high-rise buildings; allowing subtraction from taxable 1.5 income; amending Minnesota Statutes 2002, sections 1.6 290.01, subdivisions 19b, 19d; 299F.362, subdivision 1.7 5; proposing coding for new law in Minnesota Statutes, 1.8 chapter 299F. 1.9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.10 Section 1. Minnesota Statutes 2002, section 290.01, 1.11 subdivision 19b, is amended to read: 1.12 Subd. 19b. [SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.] For 1.13 individuals, estates, and trusts, there shall be subtracted from 1.14 federal taxable income: 1.15 (1) interest income on obligations of any authority, 1.16 commission, or instrumentality of the United States to the 1.17 extent includable in taxable income for federal income tax 1.18 purposes but exempt from state income tax under the laws of the 1.19 United States; 1.20 (2) if included in federal taxable income, the amount of 1.21 any overpayment of income tax to Minnesota or to any other 1.22 state, for any previous taxable year, whether the amount is 1.23 received as a refund or as a credit to another taxable year's 1.24 income tax liability; 1.25 (3) the amount paid to others, less the amount used to 1.26 claim the credit allowed under section 290.0674, not to exceed 1.27 $1,625 for each qualifying child in grades kindergarten to 6 and 2.1 $2,500 for each qualifying child in grades 7 to 12, for tuition, 2.2 textbooks, and transportation of each qualifying child in 2.3 attending an elementary or secondary school situated in 2.4 Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, 2.5 wherein a resident of this state may legally fulfill the state's 2.6 compulsory attendance laws, which is not operated for profit, 2.7 and which adheres to the provisions of the Civil Rights Act of 2.8 1964 and chapter 363. For the purposes of this clause, 2.9 "tuition" includes fees or tuition as defined in section 2.10 290.0674, subdivision 1, clause (1). As used in this clause, 2.11 "textbooks" includes books and other instructional materials and 2.12 equipment purchased or leased for use in elementary and 2.13 secondary schools in teaching only those subjects legally and 2.14 commonly taught in public elementary and secondary schools in 2.15 this state. Equipment expenses qualifying for deduction 2.16 includes expenses as defined and limited in section 290.0674, 2.17 subdivision 1, clause (3). "Textbooks" does not include 2.18 instructional books and materials used in the teaching of 2.19 religious tenets, doctrines, or worship, the purpose of which is 2.20 to instill such tenets, doctrines, or worship, nor does it 2.21 include books or materials for, or transportation to, 2.22 extracurricular activities including sporting events, musical or 2.23 dramatic events, speech activities, driver's education, or 2.24 similar programs. For purposes of the subtraction provided by 2.25 this clause, "qualifying child" has the meaning given in section 2.26 32(c)(3) of the Internal Revenue Code; 2.27 (4) income as provided under section 290.0802; 2.28 (5) to the extent included in federal adjusted gross 2.29 income, income realized on disposition of property exempt from 2.30 tax under section 290.491; 2.31 (6) to the extent not deducted in determining federal 2.32 taxable income or used to claim the long-term care insurance 2.33 credit under section 290.0672, the amount paid for health 2.34 insurance of self-employed individuals as determined under 2.35 section 162(l) of the Internal Revenue Code, except that the 2.36 percent limit does not apply. If the individual deducted 3.1 insurance payments under section 213 of the Internal Revenue 3.2 Code of 1986, the subtraction under this clause must be reduced 3.3 by the lesser of: 3.4 (i) the total itemized deductions allowed under section 3.5 63(d) of the Internal Revenue Code, less state, local, and 3.6 foreign income taxes deductible under section 164 of the 3.7 Internal Revenue Code and the standard deduction under section 3.8 63(c) of the Internal Revenue Code; or 3.9 (ii) the lesser of (A) the amount of insurance qualifying 3.10 as "medical care" under section 213(d) of the Internal Revenue 3.11 Code to the extent not deducted under section 162(1) of the 3.12 Internal Revenue Code or excluded from income or (B) the total 3.13 amount deductible for medical care under section 213(a); 3.14 (7) the exemption amount allowed under Laws 1995, chapter 3.15 255, article 3, section 2, subdivision 3; 3.16 (8) to the extent included in federal taxable income, 3.17 postservice benefits for youth community service under section 3.18 124D.42 for volunteer service under United States Code, title 3.19 42, sections 12601 to 12604; 3.20 (9) to the extent not deducted in determining federal 3.21 taxable income by an individual who does not itemize deductions 3.22 for federal income tax purposes for the taxable year, an amount 3.23 equal to 50 percent of the excess of charitable contributions 3.24 allowable as a deduction for the taxable year under section 3.25 170(a) of the Internal Revenue Code over $500; 3.26 (10) for taxable years beginning before January 1, 2008, 3.27 the amount of the federal small ethanol producer credit allowed 3.28 under section 40(a)(3) of the Internal Revenue Code which is 3.29 included in gross income under section 87 of the Internal 3.30 Revenue Code; 3.31 (11) for individuals who are allowed a federal foreign tax 3.32 credit for taxes that do not qualify for a credit under section 3.33 290.06, subdivision 22, an amount equal to the carryover of 3.34 subnational foreign taxes for the taxable year, but not to 3.35 exceed the total subnational foreign taxes reported in claiming 3.36 the foreign tax credit. For purposes of this clause, "federal 4.1 foreign tax credit" means the credit allowed under section 27 of 4.2 the Internal Revenue Code, and "carryover of subnational foreign 4.3 taxes" equals the carryover allowed under section 904(c) of the 4.4 Internal Revenue Code minus national level foreign taxes to the 4.5 extent they exceed the federal foreign tax credit;
and4.6 (12) in each of the five tax years immediately following 4.7 the tax year in which an addition is required under subdivision 4.8 19a, clause (7), an amount equal to one-fifth of the delayed 4.9 depreciation. For purposes of this clause, "delayed 4.10 depreciation" means the amount of the addition made by the 4.11 taxpayer under subdivision 19a, clause (7), minus the positive 4.12 value of any net operating loss under section 172 of the 4.13 Internal Revenue Code generated for the tax year of the 4.14 addition. The resulting delayed depreciation cannot be less 4.15 than zero; and 4.16 (13) an amount equal to ... percent of the expenditures 4.17 made or incurred during the taxable year to comply with the 4.18 requirements of section 299F.365 to retrofit existing buildings 4.19 with sprinklers, but only to the extent that the expenditures 4.20 result in an increase in the adjusted basis of the building 4.21 under section 1011 of the Internal Revenue Code. This 4.22 subtraction does not affect the adjusted basis of the asset for 4.23 purposes of computing gain or loss on a sale or exchange of the 4.24 asset under this chapter. 4.25 Sec. 2. Minnesota Statutes 2002, section 290.01, 4.26 subdivision 19d, is amended to read: 4.27 Subd. 19d. [CORPORATIONS; MODIFICATIONS DECREASING FEDERAL 4.28 TAXABLE INCOME.] For corporations, there shall be subtracted 4.29 from federal taxable income after the increases provided in 4.30 subdivision 19c: 4.31 (1) the amount of foreign dividend gross-up added to gross 4.32 income for federal income tax purposes under section 78 of the 4.33 Internal Revenue Code; 4.34 (2) the amount of salary expense not allowed for federal 4.35 income tax purposes due to claiming the federal jobs credit 4.36 under section 51 of the Internal Revenue Code; 5.1 (3) any dividend (not including any distribution in 5.2 liquidation) paid within the taxable year by a national or state 5.3 bank to the United States, or to any instrumentality of the 5.4 United States exempt from federal income taxes, on the preferred 5.5 stock of the bank owned by the United States or the 5.6 instrumentality; 5.7 (4) amounts disallowed for intangible drilling costs due to 5.8 differences between this chapter and the Internal Revenue Code 5.9 in taxable years beginning before January 1, 1987, as follows: 5.10 (i) to the extent the disallowed costs are represented by 5.11 physical property, an amount equal to the allowance for 5.12 depreciation under Minnesota Statutes 1986, section 290.09, 5.13 subdivision 7, subject to the modifications contained in 5.14 subdivision 19e; and 5.15 (ii) to the extent the disallowed costs are not represented 5.16 by physical property, an amount equal to the allowance for cost 5.17 depletion under Minnesota Statutes 1986, section 290.09, 5.18 subdivision 8; 5.19 (5) the deduction for capital losses pursuant to sections 5.20 1211 and 1212 of the Internal Revenue Code, except that: 5.21 (i) for capital losses incurred in taxable years beginning 5.22 after December 31, 1986, capital loss carrybacks shall not be 5.23 allowed; 5.24 (ii) for capital losses incurred in taxable years beginning 5.25 after December 31, 1986, a capital loss carryover to each of the 5.26 15 taxable years succeeding the loss year shall be allowed; 5.27 (iii) for capital losses incurred in taxable years 5.28 beginning before January 1, 1987, a capital loss carryback to 5.29 each of the three taxable years preceding the loss year, subject 5.30 to the provisions of Minnesota Statutes 1986, section 290.16, 5.31 shall be allowed; and 5.32 (iv) for capital losses incurred in taxable years beginning 5.33 before January 1, 1987, a capital loss carryover to each of the 5.34 five taxable years succeeding the loss year to the extent such 5.35 loss was not used in a prior taxable year and subject to the 5.36 provisions of Minnesota Statutes 1986, section 290.16, shall be 6.1 allowed; 6.2 (6) an amount for interest and expenses relating to income 6.3 not taxable for federal income tax purposes, if (i) the income 6.4 is taxable under this chapter and (ii) the interest and expenses 6.5 were disallowed as deductions under the provisions of section 6.6 171(a)(2), 265 or 291 of the Internal Revenue Code in computing 6.7 federal taxable income; 6.8 (7) in the case of mines, oil and gas wells, other natural 6.9 deposits, and timber for which percentage depletion was 6.10 disallowed pursuant to subdivision 19c, clause (11), a 6.11 reasonable allowance for depletion based on actual cost. In the 6.12 case of leases the deduction must be apportioned between the 6.13 lessor and lessee in accordance with rules prescribed by the 6.14 commissioner. In the case of property held in trust, the 6.15 allowable deduction must be apportioned between the income 6.16 beneficiaries and the trustee in accordance with the pertinent 6.17 provisions of the trust, or if there is no provision in the 6.18 instrument, on the basis of the trust's income allocable to 6.19 each; 6.20 (8) for certified pollution control facilities placed in 6.21 service in a taxable year beginning before December 31, 1986, 6.22 and for which amortization deductions were elected under section 6.23 169 of the Internal Revenue Code of 1954, as amended through 6.24 December 31, 1985, an amount equal to the allowance for 6.25 depreciation under Minnesota Statutes 1986, section 290.09, 6.26 subdivision 7; 6.27 (9) amounts included in federal taxable income that are due 6.28 to refunds of income, excise, or franchise taxes based on net 6.29 income or related minimum taxes paid by the corporation to 6.30 Minnesota, another state, a political subdivision of another 6.31 state, the District of Columbia, or a foreign country or 6.32 possession of the United States to the extent that the taxes 6.33 were added to federal taxable income under section 290.01, 6.34 subdivision 19c, clause (1), in a prior taxable year; 6.35 (10) 80 percent of royalties, fees, or other like income 6.36 accrued or received from a foreign operating corporation or a 7.1 foreign corporation which is part of the same unitary business 7.2 as the receiving corporation; 7.3 (11) income or gains from the business of mining as defined 7.4 in section 290.05, subdivision 1, clause (a), that are not 7.5 subject to Minnesota franchise tax; 7.6 (12) the amount of handicap access expenditures in the 7.7 taxable year which are not allowed to be deducted or capitalized 7.8 under section 44(d)(7) of the Internal Revenue Code; 7.9 (13) the amount of qualified research expenses not allowed 7.10 for federal income tax purposes under section 280C(c) of the 7.11 Internal Revenue Code, but only to the extent that the amount 7.12 exceeds the amount of the credit allowed under section 290.068; 7.13 (14) the amount of salary expenses not allowed for federal 7.14 income tax purposes due to claiming the Indian employment credit 7.15 under section 45A(a) of the Internal Revenue Code; 7.16 (15) the amount of any refund of environmental taxes paid 7.17 under section 59A of the Internal Revenue Code; 7.18 (16) for taxable years beginning before January 1, 2008, 7.19 the amount of the federal small ethanol producer credit allowed 7.20 under section 40(a)(3) of the Internal Revenue Code which is 7.21 included in gross income under section 87 of the Internal 7.22 Revenue Code; 7.23 (17) for a corporation whose foreign sales corporation, as 7.24 defined in section 922 of the Internal Revenue Code, constituted 7.25 a foreign operating corporation during any taxable year ending 7.26 before January 1, 1995, and a return was filed by August 15, 7.27 1996, claiming the deduction under this subdivision for income 7.28 received from the foreign operating corporation, an amount equal 7.29 to 1.23 multiplied by the amount of income excluded under 7.30 section 114 of the Internal Revenue Code, provided the income is 7.31 not income of a foreign operating company; 7.32 (18) any decrease in subpart F income, as defined in 7.33 section 952(a) of the Internal Revenue Code, for the taxable 7.34 year when subpart F income is calculated without regard to the 7.35 provisions of section 614 of Public Law Number 107-147; and7.36 (19) in each of the five tax years immediately following 8.1 the tax year in which an addition is required under subdivision 8.2 19c, clause (16), an amount equal to one-fifth of the delayed 8.3 depreciation. For purposes of this clause, "delayed 8.4 depreciation" means the amount of the addition made by the 8.5 taxpayer under subdivision 19c, clause (16). The resulting 8.6 delayed depreciation cannot be less than zero; and 8.7 (20) an amount equal to ... percent of the expenditures 8.8 made or incurred during the taxable year to comply with the 8.9 requirements of section 299F.365 to retrofit an existing 8.10 building with sprinklers, but only to the extent that the 8.11 expenditures result in an increase in the adjusted basis of the 8.12 building under section 1011 of the Internal Revenue Code. This 8.13 subtraction does not affect the adjusted basis of the asset for 8.14 purposes of computing gain or loss on a sale or exchange of the 8.15 asset under this chapter. 8.16 Sec. 3. Minnesota Statutes 2000, section 299F.362, 8.17 subdivision 5, is amended to read: 8.18 Subd. 5. [MAINTENANCE RESPONSIBILITIES.] For all 8.19 occupancies covered by this section where the occupant is not 8.20 the owner of the dwelling unit or the guest room, the owner is 8.21 responsible for maintenance of the smoke detectors. An owner 8.22 mayshall file inspection and maintenance reports annually with 8.23 the local fire marshal for establishing evidence of inspection8.24 and maintenance of smoke detectorscertifying that each dwelling 8.25 unit or guest room is provided with a functioning smoke detector 8.26 that provides an alarm in the dwelling unit or guest room when 8.27 actuated. 8.28 Sec. 4. [299F.365] [FIRE SAFETY SPRINKLERS IN EXISTING 8.29 HIGH-RISE BUILDINGS.] 8.30 Subdivision 1. [REQUIREMENTS.] This section applies to an 8.31 existing building in which at least one story used for human 8.32 occupancy is at least 75 feet or more above the lowest level of 8.33 access by a fire department vehicle. An automatic fire safety 8.34 sprinkler system must be installed in those portions of the 8.35 entire existing building in which an automatic fire safety 8.36 sprinkler system would be required if the building were 9.1 constructed after the effective date of this section. The 9.2 automatic fire safety sprinkler system must comply with 9.3 standards in the State Fire Code and State Building Code. 9.4 Subd. 2. [EXEMPTIONS.] (a) Subdivision 1 does not apply to 9.5 an area used exclusively for telecommunications equipment and 9.6 associated generator and power equipment and under exclusive 9.7 control of a telecommunications provider if: 9.8 (1) the area is separated from the remainder of the 9.9 building by construction equivalent to a one-hour fire resistant 9.10 wall and two-hour floor/ceiling assemblies; and 9.11 (2) the area has an automatic fire detection and alarm 9.12 system to respond to visible and invisible particles of 9.13 combustion and transmit an alarm and comply with standards in 9.14 the State Fire Code and State Building Code. 9.15 (b) Subdivision 1 does not apply to: 9.16 (1) a monument or war memorial that is included in the 9.17 National Register of Historic Places or the Minnesota state 9.18 register of historic sites and structures; 9.19 (2) an airport control tower or control room; 9.20 (3) an open parking structure; 9.21 (4) a building used for agricultural purposes; or 9.22 (5) a manufacturing facility that is required to meet the 9.23 fire safety standards adopted by the Occupational Safety and 9.24 Health Administration in Code of Federal Regulations, title 29, 9.25 part 1910, subpart L. 9.26 (c) The commissioner, or the state fire marshal as the 9.27 commissioner's designee, may grant extensions for the times 9.28 prescribed in subdivision 3 or 4 for submitting plans or 9.29 completing work, or both, if the applicant for extension 9.30 demonstrates an appropriate effort and a genuine inability to 9.31 comply with the time prescribed. 9.32 (d) When there are practical difficulties involved in 9.33 complying with the times prescribed in subdivision 3 or 4, the 9.34 commissioner, or the state fire marshal as the commissioner's 9.35 designee, may vary or modify the times upon application of a 9.36 building owner or the owner's representative, provided that the 10.1 spirit and intent of the law are observed and public welfare and 10.2 safety are ensured. 10.3 (e) The commissioner shall grant extensions to public 10.4 housing agencies and other owners of publicly subsidized housing 10.5 when lack of capital improvement funds reasonably precludes 10.6 compliance with the times prescribed in subdivisions 3 and 4. 10.7 Subd. 3. [REPORTING.] By January 1, 2003, the owner of a 10.8 building subject to subdivision 1 shall submit to the state fire 10.9 marshal a letter stating the owner's intention to comply with 10.10 this section and providing a schedule for completion. 10.11 Subd. 4. [TRANSITION.] (a) The building owner shall ensure 10.12 that within three years of the effective date of this section 10.13 water supplies for the fire safety sprinkler system are provided 10.14 to all floors of the buildings subject to subdivision 1. 10.15 Installation of operational automatic fire safety sprinkler 10.16 systems or an accepted equivalent alternative method must comply 10.17 with the following schedule: 10.18 Years after effective date Percent of nonexempt portions of 10.19 building with operational automatic 10.20 sprinkler system or protected by an 10.21 accepted alternative method 10.22 3 years 25 percent 10.23 5 years 50 percent 10.24 7 years 75 percent 10.25 10 years 100 percent 10.26 (b) As an alternative to the schedule in paragraph (a), a 10.27 person or entity that owns more than one building subject to 10.28 this section may comply with this section by following the 10.29 schedule in this paragraph: 10.30 Years after effective date Percent of buildings owned by 10.31 person or entity with 10.32 operational automatic sprinkler 10.33 system or protected by an 10.34 accepted alternative method 10.35 3 years 25 percent 10.36 5 years 50 percent 11.1 7 years 75 percent 11.2 10 years 100 percent 11.3 (c) For office buildings and individual spaces within 11.4 office buildings having documented leases that presently extend 11.5 beyond six years after the effective date of this section, an 11.6 extension of an additional one year must be added to each phase 11.7 of the timetable in paragraph (a) for completion. 11.8 (d) The following requirements are the responsibility of 11.9 the authorized licensed sprinkler contractor and apply where 11.10 existing class I, class II, or class III standpipes are used to 11.11 provide a combined standpipe system: 11.12 (1) during the installation of sprinkler systems, no 11.13 standpipe or fire pump may be made inoperative unless the local 11.14 fire department is given 24-hour notice; 11.15 (2) if the building contains two or more standpipes, at 11.16 least one standpipe must be maintained so that water can be 11.17 discharged through piping, valves, hose outlets, and allied 11.18 equipment to extinguish a fire; 11.19 (3) if a building contains only one standpipe riser, 11.20 modifications to the system must be conducted after normal 11.21 working hours; and 11.22 (4) appropriate temporary signage must be provided at all 11.23 fire department connections on the building, indicating the 11.24 operational status of the sprinkler system. 11.25 Subd. 5. [EVACUATION PLANS.] The owner of a building 11.26 subject to subdivision 1 shall develop, maintain, and file with 11.27 the local fire chief an evacuation plan for the building that 11.28 will enable residents to safely exit the building. 11.29 Subd. 6. [LOCAL ASSISTANCE.] The state fire marshal shall 11.30 provide assistance to building owners and local officials in 11.31 coordinating high-rise building retrofit construction and 11.32 developing high-rise building evacuation plans for buildings 11.33 subject to subdivision 1. 11.34 Subd. 7. [EFFECT ON OTHER LAWS.] This section does not 11.35 supersede the State Building Code or State Fire Code. 11.36 Subd. 8. [HOUSING BUDGET PRIORITIES.] This section does 12.1 not affect the existing capital improvement budget priorities of 12.2 public housing facilities in Minnesota. 12.3 Sec. 5. [299F.3651] [WORKING GROUP.] 12.4 The commissioner of public safety shall appoint a working 12.5 group to advise the commissioner on implementation of section 12.6 299F.365 and to advise the commissioner on appeals. The group 12.7 must include a representative from: the state fire marshal's 12.8 office, the department of administration, the Minnesota State 12.9 Fire Chiefs Association, a chapter of the Minnesota Building 12.10 Owners and Managers Association, the Minneapolis Public Housing 12.11 Authority, the Minnesota Multi Housing Association, the 12.12 Minnesota hotel and motel associations, the Fire Marshals 12.13 Association of Minnesota, professional engineers or licensed 12.14 architects, and the general public. This group expires June 30, 12.15 2013.