HF 1304

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxes; proposing an amendment to the
Minnesota Constitution, article X, by adding a
section; allowing a reverse referendum to rescind
increases in certain state tax revenues; allowing a
refund of rescinded revenue increases; appropriating
money; proposing coding for new law in Minnesota
Statutes, chapters 16A; 290.

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

Section 1. new text begin CONSTITUTIONAL AMENDMENT.
new text end

new text begin An amendment to the Minnesota Constitution is proposed to
the people. If the amendment is adopted, a section will be
added to article X, to read as follows:
new text end

new text begin Sec. 9. Notwithstanding section 1, a law may be enacted to
allow for a referendum or reverse referendum regarding increases
in state tax rates or state tax revenue collections.
new text end

Sec. 2. new text begin SUBMISSION TO VOTERS.
new text end

new text begin The proposed amendment in section 1 must be submitted to
the people at the 2006 general election. The question submitted
shall be:
new text end

new text begin "Shall the Minnesota Constitution be amended to authorize
the enactment of a law allowing voters to approve or disapprove
of increases in state tax rates or state tax revenue collections?
new text end

new text begin Yes .......
No ........"
new text end

Sec. 3.

new text begin [16A.104] REVERSE REFERENDUMS TO RESCIND REVENUE
INCREASES.
new text end

new text begin Subdivision 1. new text end

new text begin Duties of commissioner. new text end

new text begin (a) Each year
within 21 days after the close of the regular legislative
session, the commissioner shall prepare an estimate of the
revenues that will be received in the current and next fiscal
years under the individual income tax and the general sales tax
including the sales tax on motor vehicles. If the estimated
amount of revenue for the next fiscal year for the taxes is
estimated to exceed the revenues for the current fiscal year by
a percentage greater than the sum of the percentage increase in
the implicit price deflator and the percentage increase in the
number of households in the state, the commissioner shall mail
notices to each individual income taxpayer (a married couple
filing a joint return must be treated as two filers), each
holder of a sales tax permit, and each payer of use tax, who
filed and paid tax to the state in the previous calendar year
within 30 days after the close of the legislative session. To
the extent reasonably possible, the commissioner shall mail only
one notice and postcard to an individual or business. The
notices must:
new text end

new text begin (1) be written in clear, plain, and simple language;
new text end

new text begin (2) state the estimated amount of the increase in state
individual income and sales and use tax over the threshold
increase both in total and on a per capita basis;
new text end

new text begin (3) inform the recipient of the right to return the
attached postcard to trigger an election as to whether the
increase should be rebated under section 290.0676, the required
time limit for returning the postcard, and describe the
estimated rebate if the voters approve it;
new text end

new text begin (4) include a postcard, preaddressed to the secretary of
state, upon which the recipient can indicate an intent to
require an election on the question of whether to rebate the
increase under section 290.0676.
new text end

new text begin (b) For purposes of this section, "percentage increase in
the implicit price deflator" means the percentage increase in
the implicit deflator for government consumption and gross
investment for state and local governments prepared by the
Bureau of Economic Analysis of the United States Department of
Commerce for the 12-month period ending on March 31 of the
current calendar year. For purposes of this section, the
"percentage increase in the number of households" means the
percentage increase in the number of households in the state for
the most recently available calendar year as of March 31 of the
current calendar year.
new text end

new text begin Subd. 2. new text end

new text begin Reverse referendum. new text end

new text begin The secretary of state
shall tabulate the postcards returned within 45 days after the
mailing deadline under subdivision 1, but no later than
September 15. If the total number of postcards received that
indicate an intent to require an election to be held exceeds ten
percent of the taxpayers notified, an election must be held on
whether the increase is to be refunded under section 290.0676.
new text end

new text begin Subd. 3. new text end

new text begin Election. new text end

new text begin The election must be held on the
first Tuesday after the first Monday in November. If a majority
of the voters at the election do not vote to sustain the tax
increase, the increase must be refunded as provided in section
290.0676.
new text end

new text begin Subd. 4. new text end

new text begin Form of petition and ballot question. new text end

new text begin The
commissioner of finance shall prepare the form of the question
to be submitted to the voters.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective after approval
by the voters of the constitutional amendment in section 1.
new text end

Sec. 4.

new text begin [290.0676] REFUND OF RESCINDED REVENUE
INCREASES.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin If a majority of the
voters at an election under section 16A.104, subdivision 3, do
not vote to sustain the tax increase, an individual is allowed a
credit against the tax imposed by this chapter equal to the sum
of the allowable dollar amounts, determined under subdivision 3,
for each of the following:
new text end

new text begin (1) the taxpayer;
new text end

new text begin (2) the taxpayer's spouse for a credit claimed on a joint
return; and
new text end

new text begin (3) each dependent of the taxpayer.
new text end

new text begin Subd. 2. new text end

new text begin Definition. new text end

new text begin For purposes of this section, a
"dependent" means a dependent as defined in section 152 of the
Internal Revenue Code.
new text end

new text begin Subd. 3. new text end

new text begin Determination of allowable amount. new text end

new text begin (a) If a
reverse referendum is to be submitted to the voters under
section 16A.104, the commissioner shall estimate the total
number of filers, spouses, and dependents for the current
taxable year.
new text end

new text begin (b) The allowable amount for the taxable year equals the
increase in revenues published in the State Register under
section 16A.104, divided by the number estimated under paragraph
(a).
new text end

new text begin Subd. 4. new text end

new text begin Credit refundable. new text end

new text begin If the claimant is eligible
to receive a credit that is larger than the claimant's tax
liability under this chapter, the commissioner shall refund the
excess to the claimant.
new text end

new text begin Subd. 5. new text end

new text begin Dependent barred from claiming own credit. new text end

new text begin No
credit may be paid to an individual claimed as a dependent on
the federal tax return of another individual.
new text end

new text begin Subd. 6. new text end

new text begin Tax forms. new text end

new text begin If the issue is submitted to the
voters under section 16A.104, the commissioner shall include the
credit in the forms and tax instructions. After the results of
the vote have been certified, the commissioner shall undertake
efforts to publicize whether or not the credit is available for
the taxable year. This may include mailing a notice to each
taxpayer, advertising in print or electronic media, or other
measures.
new text end

new text begin Subd. 7. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the
refunds required by this section is appropriated to the
commissioner from the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective after approval
by the voters of the constitutional amendment in section 1.
new text end