HF 2002

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

  1.1                          A bill for an act 
  1.2             relating to property tax refund; excluding from 
  1.3             household income Roth IRA conversions; amending 
  1.4             Minnesota Statutes 1998, section 290A.03, subdivision 
  1.5             3. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 290A.03, 
  1.8   subdivision 3, is amended to read: 
  1.9      Subd. 3.  [INCOME.] (1) "Income" means the sum of the 
  1.10  following:  
  1.11     (a) federal adjusted gross income as defined in the 
  1.12  Internal Revenue Code; and 
  1.13     (b) the sum of the following amounts to the extent not 
  1.14  included in clause (a):  
  1.15     (i) all nontaxable income; 
  1.16     (ii) the amount of a passive activity loss that is not 
  1.17  disallowed as a result of section 469, paragraph (i) or (m) of 
  1.18  the Internal Revenue Code and the amount of passive activity 
  1.19  loss carryover allowed under section 469(b) of the Internal 
  1.20  Revenue Code; 
  1.21     (iii) an amount equal to the total of any discharge of 
  1.22  qualified farm indebtedness of a solvent individual excluded 
  1.23  from gross income under section 108(g) of the Internal Revenue 
  1.24  Code; 
  1.25     (iv) cash public assistance and relief; 
  2.1      (v) any pension or annuity (including railroad retirement 
  2.2   benefits, all payments received under the federal Social 
  2.3   Security Act, supplemental security income, and veterans 
  2.4   benefits), which was not exclusively funded by the claimant or 
  2.5   spouse, or which was funded exclusively by the claimant or 
  2.6   spouse and which funding payments were excluded from federal 
  2.7   adjusted gross income in the years when the payments were made; 
  2.8      (vi) interest received from the federal or a state 
  2.9   government or any instrumentality or political subdivision 
  2.10  thereof; 
  2.11     (vii) workers' compensation; 
  2.12     (viii) nontaxable strike benefits; 
  2.13     (ix) the gross amounts of payments received in the nature 
  2.14  of disability income or sick pay as a result of accident, 
  2.15  sickness, or other disability, whether funded through insurance 
  2.16  or otherwise; 
  2.17     (x) a lump sum distribution under section 402(e)(3) of the 
  2.18  Internal Revenue Code; 
  2.19     (xi) contributions made by the claimant to an individual 
  2.20  retirement account, including a qualified voluntary employee 
  2.21  contribution; simplified employee pension plan; self-employed 
  2.22  retirement plan; cash or deferred arrangement plan under section 
  2.23  401(k) of the Internal Revenue Code; or deferred compensation 
  2.24  plan under section 457 of the Internal Revenue Code; and 
  2.25     (xii) nontaxable scholarship or fellowship grants.  
  2.26     In the case of an individual who files an income tax return 
  2.27  on a fiscal year basis, the term "federal adjusted gross income" 
  2.28  shall mean federal adjusted gross income reflected in the fiscal 
  2.29  year ending in the calendar year.  Federal adjusted gross income 
  2.30  shall not be reduced by the amount of a net operating loss 
  2.31  carryback or carryforward or a capital loss carryback or 
  2.32  carryforward allowed for the year.  
  2.33     (2) "Income" does not include:  
  2.34     (a) amounts excluded pursuant to the Internal Revenue Code, 
  2.35  sections 101(a) and 102; 
  2.36     (b) amounts of any pension or annuity which was exclusively 
  3.1   funded by the claimant or spouse and which funding payments were 
  3.2   not excluded from federal adjusted gross income in the years 
  3.3   when the payments were made; 
  3.4      (c) surplus food or other relief in kind supplied by a 
  3.5   governmental agency; 
  3.6      (d) relief granted under this chapter; or 
  3.7      (e) child support payments received under a temporary or 
  3.8   final decree of dissolution or legal separation; or 
  3.9      (f) rollovers or conversions of an individual retirement 
  3.10  plan to a Roth IRA to the extent that they are included in gross 
  3.11  income under section 408A(d)(3) of the Internal Revenue Code of 
  3.12  1986, as amended through December 31, 1998, and constitute 
  3.13  recovery of contributions to an individual retirement account or 
  3.14  other qualified plan that were made by and excluded from gross 
  3.15  income by the claimant in a previous taxable year.  
  3.16     (3) The sum of the following amounts may be subtracted from 
  3.17  income:  
  3.18     (a) for the claimant's first dependent, the exemption 
  3.19  amount multiplied by 1.4; 
  3.20     (b) for the claimant's second dependent, the exemption 
  3.21  amount multiplied by 1.3; 
  3.22     (c) for the claimant's third dependent, the exemption 
  3.23  amount multiplied by 1.2; 
  3.24     (d) for the claimant's fourth dependent, the exemption 
  3.25  amount multiplied by 1.1; 
  3.26     (e) for the claimant's fifth dependent, the exemption 
  3.27  amount; and 
  3.28     (f) if the claimant or claimant's spouse was disabled or 
  3.29  attained the age of 65 on or before December 31 of the year for 
  3.30  which the taxes were levied or rent paid, the exemption amount.  
  3.31     For purposes of this subdivision, the "exemption amount" 
  3.32  means the exemption amount under section 151(d) of the Internal 
  3.33  Revenue Code for the taxable year for which the income is 
  3.34  reported. 
  3.35     Sec. 2.  [EFFECTIVE DATE.] 
  3.36     Section 1 is effective for claims based on property taxes 
  4.1   paid in 2000 and rent constituting property taxes paid in 1999.