HF 1

1st Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to taxation; providing an income tax rebate; 
  1.3             providing for agricultural assistance; appropriating 
  1.4             money. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [1999 INCOME TAX REBATE.] 
  1.7      Subdivision 1.  [PAYMENT REQUIRED.] The commissioner of 
  1.8   revenue shall pay an income tax rebate to each individual or 
  1.9   married couple who paid tax under Minnesota Statutes, chapter 
  1.10  290, for a taxable year beginning after December 31, 1996, and 
  1.11  before January 1, 1998.  The commissioner shall pay the rebate 
  1.12  by (1) 60 days after the day following final enactment of this 
  1.13  section for returns filed before January 1, 1999; or (2) within 
  1.14  90 days after the commissioner receives the taxpayer's return 
  1.15  for all other returns.  Payments of the rebate made after the 
  1.16  required payment date bear interest at the rate provided in 
  1.17  Minnesota Statutes, section 270.76.  For returns filed after 
  1.18  July 1, 1999, the commissioner may allow the rebate as a credit 
  1.19  against the tax imposed. 
  1.20     Subd. 2.  [AMOUNT ALLOWED.] (a) The amount of the rebate 
  1.21  equals the sum of: 
  1.22     (1) 100 percent of the first $150 of income tax liability; 
  1.23  and 
  1.24     (2) 20 percent of any income tax liability in excess of 
  1.25  $150. 
  2.1      The maximum rebate is $7,600 for married taxpayers filing 
  2.2   joint returns and surviving spouses, and $3,800 for all other 
  2.3   taxpayers. 
  2.4      (b) Income tax liability means the liability for tax 
  2.5   computed under Minnesota Statutes, sections 290.06 and 290.091, 
  2.6   and before subtraction of the credits in Minnesota Statutes, 
  2.7   sections 290.067 and 290.0671, and Laws 1997, chapter 231, 
  2.8   article 1, section 16, as amended. 
  2.9      Subd. 3.  [NO OFFSET OF INTEREST AND PENALTIES.] The rebate 
  2.10  may not be used to offset any interest and penalties resulting 
  2.11  from underpayment of estimated tax for taxable year 1997. 
  2.12     Subd. 4.  [JOINT RETURNS.] Individuals who filed a joint 
  2.13  return must receive a joint income tax rebate.  After the income 
  2.14  tax rebate has been issued, but before the check has been 
  2.15  cashed, either joint claimant may request a separate check for 
  2.16  one-half of the rebate. 
  2.17     Subd. 5.  [APPLICATION OF OTHER LAWS.] (a) The income tax 
  2.18  rebate is a "Minnesota tax law" for purposes of Minnesota 
  2.19  Statutes, section 270B.01, subdivision 8. 
  2.20     (b) The income tax rebate is "an overpayment of any tax 
  2.21  collected by the commissioner" for purposes of Minnesota 
  2.22  Statutes, section 270.07, subdivision 5.  For purposes of this 
  2.23  paragraph, a joint income tax rebate is payable to each spouse 
  2.24  equally. 
  2.25     (c) The income tax rebate is a refund subject to revenue 
  2.26  recapture under Minnesota Statutes, chapter 270A.  The 
  2.27  commissioner of revenue shall remit the entire refund to the 
  2.28  claimant agency, which shall, upon the request of the spouse who 
  2.29  does not owe the debt, refund one-half of a joint income tax 
  2.30  rebate to the spouse who does not owe the debt. 
  2.31     Subd. 6.  [UNCASHED CHECKS.] If the commissioner of revenue 
  2.32  cannot locate an individual entitled to a rebate by July 1, 
  2.33  2001, or if an individual to whom a rebate was issued has not 
  2.34  cashed the check by July 1, 2001, the right to the rebate lapses 
  2.35  and the check must be deposited in the general fund. 
  2.36     Subd. 7.  [FILING PERMITTED.] Individuals entitled to an 
  3.1   income tax rebate under this section, but who did not receive 
  3.2   one, and individuals who receive an income tax rebate that was 
  3.3   not correctly computed, must file a claim with the commissioner 
  3.4   before July 1, 2000, in a form prescribed by the commissioner.  
  3.5   The commissioner shall treat these claims as claims for refund 
  3.6   under Minnesota Statutes, section 289A.50, subdivisions 4 and 7. 
  3.7      Subd. 8.  [PAYMENT TO STATE.] (a) A taxpayer receiving a 
  3.8   rebate under this section may endorse and return the rebate 
  3.9   check to the state and designate that the returned rebate must 
  3.10  be deposited in one or more of the following accounts for use 
  3.11  only for the purposes designated in this subdivision: 
  3.12     (1) an account for the basic sliding fee child care program 
  3.13  for child care assistance to families administered by the 
  3.14  commissioner of children, families, and learning under Minnesota 
  3.15  Statutes, section 119B.03; 
  3.16     (2) an account to lower kindergarten through grade 6 
  3.17  classroom size and reduce instructor-to-student ratios to an 
  3.18  average level of 1 to 17 to be administered by the commissioner 
  3.19  of children, families, and learning; 
  3.20     (3) the affordable rental investment fund to be used by the 
  3.21  housing finance agency for family rental housing assistance 
  3.22  under Minnesota Statutes, section 462A.21, subdivision 8b; 
  3.23     (4) the contaminated site cleanup and development account 
  3.24  to be used by the commissioner of trade and economic development 
  3.25  for contamination cleanup development grants under Minnesota 
  3.26  Statutes, sections 116J.551 to 116J.556; and 
  3.27     (5) the general fund for use as appropriated by law. 
  3.28     (b) Each rebate check shall have printed on the back of the 
  3.29  check that it may be endorsed to the state of Minnesota and used 
  3.30  for the designated option under paragraph (a).  If more than one 
  3.31  use of the rebate is designated, the rebate must be divided 
  3.32  evenly between the designated options.  If a check is endorsed 
  3.33  and mailed to the state and no option is designated, the check 
  3.34  must be deposited in the general fund. 
  3.35     (c) The rebate check shall be accompanied by a notice 
  3.36  prepared by the commissioner of revenue that explains the 
  4.1   taxpayer's option to endorse the check to the state, and 
  4.2   explains the uses of the funds that the taxpayer may designate.  
  4.3   In preparing the notice, the commissioner of revenue shall 
  4.4   consult with the commissioners or agencies that administer the 
  4.5   funds or accounts.  The notice shall also explain that a 
  4.6   taxpayer may cash the rebate check and mail a contribution of 
  4.7   any amount to the state and that the contribution must be used 
  4.8   for the option or options under paragraph (a) as designated by 
  4.9   the taxpayer.  The notice shall contain in bold print the 
  4.10  address to which the endorsed check or a state contribution may 
  4.11  be mailed. 
  4.12     (d) Funds endorsed and mailed to the state and 
  4.13  contributions mailed to the state under this subdivision shall 
  4.14  be deposited by the commissioner of finance in the fund or 
  4.15  account designated, and are appropriated to the agency or 
  4.16  commissioner designated by the taxpayer or contributor for use 
  4.17  as provided in this subdivision.  Funds appropriated under this 
  4.18  paragraph are available until expended. 
  4.19     (e) Funds appropriated under this subdivision are in 
  4.20  addition to any funds appropriated for the purposes given in 
  4.21  this subdivision and may not be used for any other purposes 
  4.22  including the reduction of any other appropriations.  Funds 
  4.23  appropriated to a commissioner or agency under this subdivision 
  4.24  are not included in the department's or agency's budget base. 
  4.25     Sec. 2.  [AGRICULTURAL ASSISTANCE IN 1999.] 
  4.26     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
  4.27  subdivision apply to this section. 
  4.28     (b) "Commissioner" means the commissioner of revenue. 
  4.29     (c) "Farm service agency" means the United States Farm 
  4.30  Service Agency. 
  4.31     (d) "Farmer" means a person who produces an agricultural 
  4.32  crop or livestock and is certified by the farm service agency as 
  4.33  bearing a percentage of the risk for the production operation. 
  4.34     (e) "Livestock" means cattle, hogs, poultry, and sheep. 
  4.35     (f) "Livestock production facility" means a facility that 
  4.36  has produced at least $10,000 in sales of livestock or dairy 
  5.1   products as reported on schedule F of the farmer's federal 
  5.2   income tax return for either taxable years beginning in calendar 
  5.3   year 1997 or 1998. 
  5.4      Subd. 2.  [PAYMENT TO FARMERS.] Every farmer may apply to 
  5.5   the commissioner by April 1, 1999, for a payment as provided 
  5.6   under this subdivision.  The payment is equal to $4 for every 
  5.7   acre in Minnesota on which the farmer produced an agricultural 
  5.8   crop for crop year 1998 as certified by the farm service agency 
  5.9   by December 31, 1998.  The commissioner shall prepare 
  5.10  application forms for the payment and ensure that they are 
  5.11  available throughout the state.  To receive a payment under this 
  5.12  subdivision, a farmer must include with the application a 
  5.13  certification from the farm service agency of the number of 
  5.14  acres farmed including any percentage of risk for particular 
  5.15  acres.  The commissioner shall make the payment to each eligible 
  5.16  farmer by May 1, 1999. 
  5.17     Subd. 3.  [LIVESTOCK PRODUCERS.] Only a farmer who operates 
  5.18  a livestock production facility on 160 acres or less is eligible 
  5.19  for the agricultural property tax refund under subdivisions 4 to 
  5.20  8.  The refund is in lieu of the per acre payment under 
  5.21  subdivision 2.  To qualify, the farmer must apply for the refund 
  5.22  as provided in subdivisions 4 to 8. 
  5.23     Subd. 4.  [REFUND.] The refund equals the full amount of 
  5.24  the property tax payment due and payable on May 15, 1999, on 
  5.25  class 1b agricultural homestead property or class 2a 
  5.26  agricultural homestead property as defined in Minnesota 
  5.27  Statutes, section 273.13, excluding that portion of the tax 
  5.28  attributable to the house, garage, and surrounding acre of 
  5.29  land.  If a portion of the property was leased for the 1998 
  5.30  agricultural production year, the refund amount shall be 
  5.31  prorated so that only the portion of the property which was not 
  5.32  leased for the 1998 agricultural production year qualifies for 
  5.33  the refund.  
  5.34     Subd. 5.  [CERTIFICATION.] The commissioner shall develop a 
  5.35  form by February 15, 1999, for use by the county auditors to 
  5.36  ascertain qualification for the refund under subdivisions 4 to 
  6.1   8.  The form shall require the property owner to certify that (i)
  6.2   the owner operates a livestock production facility on 160 acres 
  6.3   or less, and (ii) the percentage of that property, if any, that 
  6.4   was leased to anyone for the 1998 agricultural production year.  
  6.5   Any person qualifying under subdivision 3 shall contact the 
  6.6   county auditor in the county where the livestock production 
  6.7   facility is located and shall file the required form with the 
  6.8   county auditor by April 1, 1999. 
  6.9      Subd. 6.  [VERIFICATION.] The county auditor shall 
  6.10  determine the amount of the refund for all qualifying properties 
  6.11  in the county for which the owner has applied under subdivision 
  6.12  5.  By April 10, 1999, the county auditor shall notify all 
  6.13  applicants of the amount of the refund. 
  6.14     Subd. 7.  [CERTIFICATION AND PAYMENT.] By April 20, 1999, 
  6.15  any person eligible for the refund under subdivisions 4 to 8 
  6.16  shall send the commissioner a copy of the certification that the 
  6.17  taxpayer received from the county auditor.  The commissioner 
  6.18  shall issue a refund to each qualifying taxpayer by May 10, 1999.
  6.19     Subd. 8.  [PROPERTY TAX REFUND.] Taxpayers benefiting from 
  6.20  the refund under subdivisions 4 to 8 must deduct the amount of 
  6.21  the refund from the net property taxes payable when applying for 
  6.22  a property tax refund under Minnesota Statutes 1998, section 
  6.23  290A.04, subdivision 2. 
  6.24     Subd. 9.  [LIMIT.] No person may receive a payment under 
  6.25  subdivision 2 or a property tax refund under subdivisions 4 to 8 
  6.26  that exceeds $10,000. 
  6.27     Sec. 3.  [APPROPRIATION.] 
  6.28     (a) The amount necessary to pay the rebate under section 1 
  6.29  is appropriated from the general fund to the commissioner of 
  6.30  revenue.  The first $200,000,000 of this appropriation is from 
  6.31  the tax reform and reduction account. 
  6.32     (b) The amount of the appropriation for the cost of 
  6.33  administration under paragraph (a) may not exceed 0.1 percent of 
  6.34  the total amount of the rebates paid under section 1. 
  6.35     (c) The amount necessary to make the payments required 
  6.36  under section 2, subdivisions 2 and 7, is appropriated from the 
  7.1   general fund to the commissioner of revenue for fiscal year 1999.
  7.2      (d) An amount not to exceed one percent of the total amount 
  7.3   under section 2, subdivisions 4 to 8, for fiscal year 1999 is 
  7.4   appropriated to the commissioner of revenue for distribution to 
  7.5   counties for the costs of administering section 2, subdivisions 
  7.6   4 to 8. 
  7.7      Sec. 4.  [EFFECTIVE DATE.] 
  7.8      Sections 1 to 3 are effective the day following final 
  7.9   enactment.