HF 2155

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to taxation; providing for a study of 
  1.3             business taxation; appropriating money. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [BUSINESS TAX STUDY.] 
  1.6      Subdivision 1.  [APPROPRIATION.] $....... is appropriated 
  1.7   from the general fund for fiscal years 1998 and 1999 to the 
  1.8   legislative coordinating commission to study alternative methods 
  1.9   for taxing business.  This appropriation may be used to hire a 
  1.10  consultant or consultants to prepare all or part of the study 
  1.11  and related costs. 
  1.12     Subd. 2.  [STUDY.] The study must analyze using a business 
  1.13  activities tax, based on value added or another tax base, to 
  1.14  replace, in part or full, the following taxes paid by the 
  1.15  businesses: 
  1.16     (1) the corporate franchise tax; 
  1.17     (2) the sales tax on capital or other business inputs; 
  1.18     (3) the personal property tax on utility property; 
  1.19     (4) the real property tax on commercial and industrial 
  1.20  property. 
  1.21     The study is to consider the impact of a substitution of a 
  1.22  business activity tax on the fairness, efficiency, simplicity, 
  1.23  elasticity and stability of revenues, and competitiveness of 
  1.24  Minnesota's taxation of business. 
  2.1      Subd. 3.  [PROCEDURES.] The legislative coordinating 
  2.2   commission is responsible for managing any contracts under this 
  2.3   section and for preparing the study.  The commission may appoint 
  2.4   a formal or informal bipartisan working group of house and 
  2.5   senate members to oversee and coordinate the study.  The 
  2.6   commission shall regularly consult with and involve the 
  2.7   commissioner of revenue in contracting with consultants and 
  2.8   preparing the study.  The commission shall use legislative and 
  2.9   executive branch staff to the extent possible in preparing the 
  2.10  study and shall provide for a regular process for 
  2.11  representatives of the business community, the tax section of 
  2.12  the bar, the society of certified public accountants, and other 
  2.13  appropriate groups with expertise in business taxation to 
  2.14  participate in the study.