HF 717

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to corporate franchise taxation; accelerating the adoption of single sales
apportionment; amending Minnesota Statutes 2006, section 290.191, subdivision
2.

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

Section 1.

Minnesota Statutes 2006, section 290.191, subdivision 2, is amended to read:

Subd. 2.

Apportionment formula of general application.

(a) 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) the percent for the sales factor under paragraph (b) 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) the percent for the property factor under paragraph (b) 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) the percent for the payroll factor under paragraph (b) 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.

(b) For purposes of paragraph (a) and subdivision 3, the following percentages apply
for the taxable years specified:

Taxable years beginning during calendar year		Sales factor percent		Property factor percent		Payroll factor percent
2007		deleted text begin 78 deleted text end new text begin 84 new text end		deleted text begin 11 deleted text end new text begin 8 new text end		deleted text begin 11 deleted text end new text begin 8 new text end
2008		deleted text begin 81 deleted text end new text begin 90 new text end		deleted text begin 9.5 deleted text end new text begin 5 new text end		deleted text begin 9.5 deleted text end new text begin 5 new text end
2009		deleted text begin 84 deleted text end new text begin 94 new text end		deleted text begin 8 deleted text end new text begin 3 new text end		deleted text begin 8 deleted text end new text begin 3 new text end
deleted text begin 2010 deleted text end		deleted text begin 87 deleted text end		deleted text begin 6.5 deleted text end		deleted text begin 6.5 deleted text end
deleted text begin 2011 deleted text end		deleted text begin 90 deleted text end		deleted text begin 5 deleted text end		deleted text begin 5 deleted text end
deleted text begin 2012 deleted text end		deleted text begin 93 deleted text end		deleted text begin 3.5 deleted text end		deleted text begin 3.5 deleted text end
deleted text begin 2013 deleted text end		deleted text begin 96 deleted text end		deleted text begin 2 deleted text end		deleted text begin 2 deleted text end
deleted text begin 2014 deleted text end new text begin 2010 new text end and later calendar years		100		0		0

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006.
new text end