HF 1797

as introduced - 90th Legislature (2017 - 2018) Posted on 03/01/2017 02:04pm

A bill for an act
relating to taxation; income; gross revenues and gross receipts; modifying
provisions related to the long term care credit, pharmacy refund, and disclosure
to the commissioner of human services; amending Minnesota Statutes 2016,
sections 270B.14, subdivision 1; 289A.38, subdivision 6; 290.0672, subdivision
1; 295.54, subdivision 2.

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

Section 1.

Minnesota Statutes 2016, section 270B.14, subdivision 1, is amended to read:

Subdivision 1.

Disclosure to commissioner of human services.

(a) On the request of
the commissioner of human services, the commissioner shall disclose return information
regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the
extent provided in paragraph (b) and for the purposes set forth in paragraph (c).

(b) Data that may be disclosed are limited to data relating to the identity, whereabouts,
employment, income, and property of a person owing or alleged to be owing an obligation
of child support.

(c) The commissioner of human services may request data only for the purposes of
carrying out the child support enforcement program and to assist in the location of parents
who have, or appear to have, deserted their children. Data received may be used only as set
forth in section 256.978.

(d) The commissioner shall provide the records and information necessary to administer
the supplemental housing allowance to the commissioner of human services.

(e) At the request of the commissioner of human services, the commissioner of revenue
shall electronically match the Social Security numbers and names of participants in the
telephone assistance plan operated under sections 237.69 to 237.71, with those of property
tax refund filers, and determine whether each participant's household income is within the
eligibility standards for the telephone assistance plan.

(f) The commissioner may provide records and information collected under sections
295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid
Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law
102-234. Upon the written agreement by the United States Department of Health and Human
Services to maintain the confidentiality of the data, the commissioner may provide records
and information collected under sections 295.50 to 295.59 to the Centers for Medicare and
Medicaid Services section of the United States Department of Health and Human Services
for purposes of meeting federal reporting requirements.

(g) The commissioner may provide records and information to the commissioner of
human services as necessary to administer the early refund of refundable tax credits.

(h) The commissioner may disclose information to the commissioner of human services
new text begin as new text end necessary deleted text begin to verify income deleted text end new text begin for income verification new text end for eligibility and premium payment
under the MinnesotaCare program, under section 256L.05, subdivision 2 new text begin , as well as the
medical assistance program under chapter 256B new text end .

(i) The commissioner may disclose information to the commissioner of human services
necessary to verify whether applicants or recipients for the Minnesota family investment
program, general assistance, food support, Minnesota supplemental aid program, and child
care assistance have claimed refundable tax credits under chapter 290 and the property tax
refund under chapter 290A, and the amounts of the credits.

(j) The commissioner may disclose information to the commissioner of human services
necessary to verify income for purposes of calculating parental contribution amounts under
section 252.27, subdivision 2a.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2016, section 289A.38, subdivision 6, is amended to read:

Subd. 6.

Omission in excess of 25 percent.

Additional taxes may be assessed within
6-1/2 years after the due date of the return or the date the return was filed, whichever is
later, if:

(1) the taxpayer omits from gross income an amount properly includable in it that is in
excess of 25 percent of the amount of gross income stated in the return;

(2) the taxpayer omits from a sales, use, or withholding tax return new text begin , or a return for a tax
imposed under section 295.52, new text end an amount of taxes in excess of 25 percent of the taxes
reported in the return; or

(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the gross
estate reported in the return.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2016, section 290.0672, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Long-term care insurance" means a policy that:

(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding
the deleted text begin 7.5 percent deleted text end new text begin adjusted gross new text end income test; or meets the requirements given in section 62A.46;
or provides similar coverage issued under the laws of another jurisdiction; and

(2) has a lifetime long-term care benefit limit of not less than $100,000; and

(3) has been offered in compliance with the inflation protection requirements of section
62S.23.

(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.

(d) "Premiums deducted in determining federal taxable income" means the lesser of (1)
long-term care insurance premiums that qualify as deductions under section 213 of the
Internal Revenue Code; and (2) the total amount deductible for medical care under section
213 of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2012.
new text end

Sec. 4.

Minnesota Statutes 2016, section 295.54, subdivision 2, is amended to read:

Subd. 2.

Pharmacy refund.

A pharmacy may claim an annual refund against the total
amount of tax, if any, the pharmacy owes during that calendar year under section 295.52,
subdivision 4. The refund shall equal the amount paid by the pharmacy to a wholesale drug
distributor subject to tax under section 295.52, subdivision 3, for legend drugs delivered by
the pharmacy outside of Minnesota, multiplied by the tax percentage specified in section
295.52, subdivision 3. If the amount of the refund exceeds the tax liability of the pharmacy
under section 295.52, subdivision 4, the commissioner shall provide the pharmacy with a
refund equal to the excess amount. Each qualifying pharmacy must apply for the refund on
the annual return as deleted text begin provided under section 295.55, subdivision 5 deleted text end new text begin prescribed by the
commissioner, on or before March 15 of the year following the calendar year the legend
drugs were delivered outside Minnesota new text end . The refund deleted text begin must be claimed within 18 months
from the date the drugs were delivered outside of Minnesota deleted text end new text begin shall not be allowed if the
initial claim for refund is filed more than one year after the original due date of the return new text end .
Interest on refunds paid under this subdivision will begin to accrue 60 days after the date a
claim for refund is filed. For purposes of this subdivision, the date a claim is filed is the due
date of the return if a return is due or the date of the actual claim for refund, whichever is
later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for qualifying legend drugs delivered
outside Minnesota after December 31, 2017.
new text end