HF 2428

as introduced - 89th Legislature (2015 - 2016) Posted on 03/08/2016 04:24pm

A bill for an act
relating to taxation; providing for a study and report to the legislature;
appropriating money.

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

Section 1. new text begin FLAT TAX STUDY.
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new text begin (a) The commissioner of revenue shall study and prepare a report to the legislature
on options for replacing the individual income tax with a flat tax on income or consumed
income. All options to be studied must be revenue neutral and include a generous
exemption amount, an adjustment for family size, and a single tax rate. The study and
report must include, at a minimum, options that:
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new text begin (1) follow the existing definitions of items of taxable income;
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new text begin (2) expand the income tax base by eliminating exemptions, deductions, and credits;
and
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new text begin (3) adopt a consumed income tax base.
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new text begin (b) The report must evaluate the options following the basic tax policy principles
and include information on the change in the income distribution of the tax burdens that
would result and any additional information that the commissioner determines useful or
appropriate for the legislature to consider in evaluating the options.
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new text begin (c) The report is due by January 3, 2017, and must be provided to the chairs and
ranking minority members of the committees of the house of representatives and senate with
jurisdiction over taxes and must be filed as required by Minnesota Statutes, section 3.195.
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new text begin (d) $....... in fiscal year 2017 is appropriated from the general fund to the
commissioner of revenue to prepare the study and report required by this section. This is a
onetime appropriation and does not become part of the budget base.
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new text begin EFFECTIVE DATE. new text end

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