Minnesota Legislature
HF 705
as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 02/03/2005 |
Current Version - as introduced
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3.2
A bill for an act
relating to taxation; corporate franchise and income;
increasing sales weighting of the apportionment
formula; amending Minnesota Statutes 2004, section
290.191, subdivisions 2, 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2004, section 290.191,
subdivision 2, is amended to read:
Subd. 2.
Apportionment formula of general application.
Except for those trades or businesses required to use a
different formula under subdivision 3 or section 290.36, and for
those trades or businesses that receive permission to use some
other method under section 290.20 or under subdivision 4, a
trade or business required to apportion its net income must
apportion its income to this state on the basis of the
percentage obtained by taking the sum of:
(1) deleted text begin 75 deleted text end new text begin 90 new text end percent of the percentage which the sales made
within this state in connection with the trade or business
during the tax period are of the total sales wherever made in
connection with the trade or business during the tax period;
(2) deleted text begin 12.5 deleted text end new text begin five new text end percent of the percentage which the total
tangible property used by the taxpayer in this state in
connection with the trade or business during the tax period is
of the total tangible property, wherever located, used by the
taxpayer in connection with the trade or business during the tax
period; and
(3) deleted text begin 12.5 deleted text end new text begin five new text end percent of the percentage which the
taxpayer's total payrolls paid or incurred in this state or paid
in respect to labor performed in this state in connection with
the trade or business during the tax period are of the
taxpayer's total payrolls paid or incurred in connection with
the trade or business during the tax period.
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 290.191,
subdivision 3, is amended to read:
Subd. 3.
Apportionment formula for financial
institutions.
Except for an investment company required to
apportion its income under section 290.36, a financial
institution that is required to apportion its net income must
apportion its net income to this state on the basis of the
percentage obtained by taking the sum of:
(1) deleted text begin 75 deleted text end new text begin 90 new text end percent of the percentage which the receipts from
within this state in connection with the trade or business
during the tax period are of the total receipts in connection
with the trade or business during the tax period, from wherever
derived;
(2) deleted text begin 12.5 deleted text end new text begin five new text end percent of the percentage which the sum of
the total tangible property used by the taxpayer in this state
and the intangible property owned by the taxpayer and attributed
to this state in connection with the trade or business during
the tax period is of the sum of the total tangible property,
wherever located, used by the taxpayer and the intangible
property owned by the taxpayer and attributed to all states in
connection with the trade or business during the tax period; and
(3) deleted text begin 12.5 deleted text end new text begin five new text end percent of the percentage which the
taxpayer's total payrolls paid or incurred in this state or paid
in respect to labor performed in this state in connection with
the trade or business during the tax period are of the
taxpayer's total payrolls paid or incurred in connection with
the trade or business during the tax period.
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