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HF 1732

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/11/2021 04:05pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/01/2021 ,  1 occurence of "cannabis"

Current Version - as introduced

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A bill for an act
relating to taxation; tax expenditures; providing purpose statements for certain
past tax expenditures.

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

Section 1. new text beginSTATEMENT OF INTENT; TAX EXPENDITURE PURPOSE
STATEMENTS.
new text end

new text begin The intent of this act is to identify purpose statements for the tax expenditures identified,
in accordance with Minnesota Statutes, section 3.192. The purpose statements in this act
were included in proposed legislation, but were omitted from the legislation that enacted
the expenditures. The provisions of this act are intended to provide context for evaluating
the effectiveness of the tax expenditures referenced and are not intended to have a substantive
effect on the meaning or administration of the laws referenced.
new text end

Sec. 2. new text beginPURPOSE STATEMENTS; 2019 OMNIBUS TAX BILL.
new text end

new text begin Subdivision 1. new text end

new text begin Source of purpose statements. new text end

new text begin The purpose statements in this section
were originally included in the 2019 bill styled as House File 2125, the third engrossment,
in the 91st Legislature. The tax expenditures referenced were enacted in Laws 2019, First
Special Session chapter 6.
new text end

new text begin Subd. 2. new text end

new text begin Sales tax purpose statements. new text end

new text begin (a) The purpose of the exemption in Minnesota
Statutes, section 297A.67, subdivision 37, is to level the playing field for costs between
local governments and private entities of managing invasive species in lakes. The goal is
an increase in the number of lakes where invasive species are being controlled.
new text end

new text begin (b) The purpose of the exemption in Minnesota Statutes, section 297A.70, subdivision
10, paragraph (c), is to reduce the cost of providing education on the state's farming history.
The goal is to decrease the public cost of access to this facility.
new text end

new text begin (c) The purpose of the exemption in Minnesota Statutes, section 297A.70, subdivision
20, is to decrease maintenance costs for the ice arena. The goal is to increase local recreation
opportunities and reduce local participation costs.
new text end

new text begin (d) The purpose of the exemption in Minnesota Statutes, section 297A.70, subdivision
21, is to help county agricultural societies maintain county fairgrounds. The goal is to
increase spending on fairground maintenance and capital improvements.
new text end

new text begin (e) The purpose of the exemptions in Minnesota Statutes, section 297A.71, subdivision
50, is to encourage rebuilding in the damaged area of each city. The goal is to have these
properties returned to the tax rolls at the same or greater value.
new text end

new text begin (f) The purpose of the exemptions in Minnesota Statutes, section 297A.71, subdivision
51, is to encourage rebuilding in the damaged area of each city. The goal is to have these
properties returned to the tax rolls at the same or greater value.
new text end

new text begin (g) The purpose of the exemption in Minnesota Statutes, section 297A.71, subdivision
52, is to reduce the cost of providing local public services in these communities. The goal
is to decrease the growth in local property taxes and service fees in these communities.
new text end

new text begin Subd. 3. new text end

new text begin Income and corporate franchise tax purpose statements. new text end

new text begin (a) The purpose
and goal of the tax expenditure under Minnesota Statutes, sections 290.0132, subdivision
29; 290.0134, subdivision 18; 290.0921, subdivisions 2 and 3; relating to disallowed expenses
under section 280E of the Internal Revenue Code, is to provide equitable state tax treatment
between medical cannabis manufacturers that are not allowed to deduct their business
expenses under the Internal Revenue Code and manufacturers of other goods who may
deduct these expenses.
new text end

new text begin (b) The purpose of the tax expenditures under Minnesota Statutes, section 116J.8737,
subdivision 1, relating to the minimum qualified investment threshold for minority-, veteran-,
or women-owned businesses; subdivision 5, relating to the $10,000,000 allocation for taxable
years beginning after December 31, 2018, and before January 1, 2020, and beginning after
December 31, 2020, and before January 1, 2022; and subdivision 12, relating to the extension
of the sunset date; is to encourage investment in innovative small businesses in Minnesota
and the goal of the these expenditures is to increase the number of these businesses in the
state, the number of people employed by these businesses in the state, the productivity of
these businesses, or the sales of these businesses.
new text end

Sec. 3. new text beginPURPOSE STATEMENTS; 2017 OMNIBUS TAX BILL.
new text end

new text begin Subdivision 1. new text end

new text begin Source of purpose statements. new text end

new text begin The purpose statements in this section
were originally included in the 2015 bill styled as House File 848, the third engrossment,
in the 89th Legislature. The tax expenditures referenced were enacted in Laws 2017, First
Special Session chapter 1.
new text end

new text begin Subd. 2. new text end

new text begin Sales tax purpose statements. new text end

new text begin (a) The provision of Minnesota Statutes, section
297A.67, subdivision 34, is intended to provide equitable tax treatment for different types
of investments. The standard against which effectiveness is to be measured is the increase
in precious metal bullion sold in the state and in number of coin and precious metal trade
shows held in the state.
new text end

new text begin (b) The provisions of Minnesota Statutes, section 297A.70, subdivision 14, are intended
to increase the ability of the nonprofit to provide opportunities for educating the public on
the history of farming. The standard against which effectiveness is to be measured is an
increase in the percent of the organization's budget being used for direct spending for its
mission.
new text end

new text begin Subd. 3. new text end

new text begin Income and corporate franchise tax purpose statements. new text end

new text begin (a) The provisions
of Minnesota Statutes, section 290.0132, subdivision 26, are intended to attract to Minnesota
recipients of Social Security benefits and to retain those already present, by providing a
phased-in subtraction of Social Security benefits. The standard against which effectiveness
is to be measured is the change over time in the number of Social Security recipients in
Minnesota, after adjusting for demographic changes.
new text end

new text begin (b) The provisions of Minnesota Statutes, section 290.0132, subdivision 23, and
Minnesota Statutes, section 290.0684, are intended to increase saving for higher education
expenses. The standard against which effectiveness is to be measured is the change over
time, as tracked by the Minnesota Office of Higher Education, in: (1) the estimated number
of Minnesota residents making contributions to the Minnesota College Savings Plan, and
(2) the amount contributed.
new text end

new text begin (c) The modifications to Minnesota Dependent Care Credit amending Minnesota Statutes,
section 290.067, subdivision 1, and repealing Minnesota Statutes, section 290.067,
subdivision 2, modifying the limitations for claiming the credit, are intended to simplify
the dependent care credit by tying it more closely to the federal credit and to recognize an
increased burden in dependent care expenses as a cost of workforce participation for parents.
The standard against which effectiveness is to be measured is the change in the error rate
on claims for dependent care credits and the change in the average credit amount claimed
by parents in the income range eligible for the credit under present law.
new text end

new text begin (d) The provisions of Minnesota Statutes, section 290.0686, are intended to improve the
quality of teaching in Minnesota kindergarten through grade 12 schools by encouraging
teachers to obtain master's degrees in the subject areas they teach. The standard against
which effectiveness is to be measured is the change over time in the number of kindergarten
through grade 12 classroom teachers with master's degrees in the subject area that they
teach.
new text end

new text begin (e) The provisions of Minnesota Statutes, section 290.0682, are intended to reduce the
debt burden of recent graduates of higher education programs and to reduce and potentially
reverse the current net demographic loss of young adults in Minnesota. The standard against
which effectiveness is to be measured is the change over time in the number of young adults
choosing to move to or remain in Minnesota, as measured by the state demographer.
new text end

new text begin (f) The purpose of the tax expenditures under Minnesota Statutes, sections 290.01,
subdivision 19; 289A.02, subdivision 7; 290.01, subdivision 31; and 290A.03, subdivision
15; conforming Minnesota individual income, corporate franchise, and estate taxes to changes
in federal law through December 16, 2016, are intended to simplify compliance with and
administration of those taxes. The standard against which effectiveness is to be measured
is the reduction in the number of income tax forms and text in the instructions for taxpayers
resulting from this provision.
new text end

new text begin Subd. 4. new text end

new text begin Other purpose statements. new text end

new text begin (a ) The provisions in Minnesota Statutes, section
290.06, subdivision 38, are intended to reduce the effect of school bond referenda on owners
of agricultural property. The standard against which the effectiveness of the credit is to be
measured is the amount of property tax reductions provided to owners of agricultural land.
new text end

new text begin (b) The provisions in Minnesota Statutes, section 298.24, subdivision 1, are intended to
encourage the production of direct reduced ore and the establishment of more direct reduced
ore production facilities in Minnesota. The standard against which this effectiveness is to
be measured is the amount of direct reduced ore produced and the number of producers of
direct reduced ore before and after enactment.
new text end

Sec. 4. new text beginPURPOSE STATEMENTS; 2017 TAX CONFORMITY BILL.
new text end

new text begin Subdivision 1. new text end

new text begin Source of purpose statements. new text end

new text begin The purpose statements in this section
were originally included in the 2015 bill styled as House File 848, the third engrossment,
in the 89th Legislature. The tax expenditure referenced was enacted in Laws 2017, chapter
1.
new text end

new text begin Subd. 2. new text end

new text begin Income and corporate franchise tax purpose statements. new text end

new text begin The purpose of
the tax expenditures under Minnesota Statutes, sections 290.01, subdivision 19; 289A.02,
subdivision 7; 290.01, subdivision 31; and 290A.03, subdivision 15; conforming Minnesota
individual income, corporate franchise, and estate taxes to changes in federal law through
December 16, 2016, are intended to simplify compliance with and administration of those
taxes. The standard against which effectiveness is to be measured is the reduction in the
number of income tax forms and text in the instructions for taxpayers resulting from this
provision.
new text end

Sec. 5. new text beginPURPOSE STATEMENTS; 2016 OMNIBUS SUPPLEMENTAL SPENDING
BILL.
new text end

new text begin Subdivision 1. new text end

new text begin Source of purpose statements. new text end

new text begin The purpose statements in this section
were originally included in the 2015 bill styled as House File 848, the third engrossment,
in the 89th Legislature. The tax expenditure referenced was enacted in Laws 2016, chapter
189.
new text end

new text begin Subd. 2. new text end

new text begin Income and corporate franchise tax purpose statements. new text end

new text begin The provisions of
Minnesota Statutes, section 290.0132, subdivision 21, are intended to attract to Minnesota
military retirees, and to retain those already present, by allowing a subtraction from income
tied to the number of years of military service provided. The standard against which
effectiveness is to be measured is the change over time in the number of military retirees
in Minnesota.
new text end

Sec. 6. new text beginPURPOSE STATEMENTS; 2014 OMNIBUS TAX BILL.
new text end

new text begin Subdivision 1. new text end

new text begin Source of purpose statements. new text end

new text begin The purpose statements in this section
were originally included in the 2014 bill styled as House File 3167, the third engrossment,
in the 89th Legislature. The tax expenditures referenced were enacted in Laws 2014, chapter
308.
new text end

new text begin Subd. 2. new text end

new text begin Sales tax purpose statements. new text end

new text begin (a) The provision of Minnesota Statutes, section
297A.68, subdivision 3a, defining certain coin-operated amusement devices as sales for
resale is intended to reduce tax pyramiding by exempting an input to a taxable service.
new text end

new text begin (b) The provision of Minnesota Statutes, section 297A.70, subdivision 2, paragraph (b),
clause (5), modifying the sales tax on certain local government purchases is intended to
reduce the cost of providing local government services, remove a barrier for
intergovernmental cooperation, and reduce existing compliance and administration costs
for local governments.
new text end

new text begin (c) The provisions of Minnesota Statutes, section 297A.70, subdivision 13, raising the
limit on tax exempt fund-raising by nonprofit organizations are intended to reflect the impact
on inflation over time on the limit and reduce compliance costs for groups that exceed the
limit.
new text end

new text begin (d) The provision of Minnesota Statutes, section 297G.03, subdivision 5, allowing a
microdistillery credit is to relieve small distillers of the burden of paying excise tax on the
distribution of free samples of their products and to encourage the development and marketing
of products by niche distillers in the state.
new text end

new text begin Subd. 3. new text end

new text begin Income and corporate franchise tax purpose statements. new text end

new text begin The modifications
to the National Guard subtraction contained in Laws 2014, chapter 308, article 4, section
12, are intended to provide equitable tax treatment to Minnesota residents who are members
of the National Guard and serve full time in Active Guard/Reserve status by allowing an
income tax subtraction for military pay equivalent to that allowed under Minnesota Statutes
2014, section 290.01, subdivision 19b, clause (11), now codified as Minnesota Statutes,
section 290.0132, subdivision 11, for Minnesota residents who serve full time in the armed
forces of the United States.
new text end

new text begin Subd. 4. new text end

new text begin Other purpose statements. new text end

new text begin The purpose of the tax expenditure under Minnesota
Statutes, section 291.005, subdivision 1, clause (8), subclause (iii), deeming certain qualified
art on loan to Minnesota nonprofit entities as property with a situs outside Minnesota under
the estate tax is intended to prevent the Minnesota estate tax from discouraging nonresident
owners of art from loaning it to Minnesota nonprofit museums.
new text end