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Minnesota Legislature

Office of the Revisor of Statutes

HF 2643

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

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

Bill Text Versions

Engrossments
Introduction Posted on 03/01/2004

Current Version - as introduced

  1.1                          A bill for an act 
  1.2             relating to taxation; income; modifying the 
  1.3             alternative minimum tax exemption and charitable 
  1.4             contribution subtraction; amending Minnesota Statutes 
  1.5             2002, section 290.091, subdivision 3; Minnesota 
  1.6             Statutes 2003 Supplement, section 290.091, subdivision 
  1.7             2. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.10  290.091, subdivision 2, is amended to read: 
  1.11     Subd. 2.  [DEFINITIONS.] For purposes of the tax imposed by 
  1.12  this section, the following terms have the meanings given: 
  1.13     (a) "Alternative minimum taxable income" means the sum of 
  1.14  the following for the taxable year: 
  1.15     (1) the taxpayer's federal alternative minimum taxable 
  1.16  income as defined in section 55(b)(2) of the Internal Revenue 
  1.17  Code; 
  1.18     (2) the taxpayer's itemized deductions allowed in computing 
  1.19  federal alternative minimum taxable income, but excluding: 
  1.20     (i) the charitable contribution deduction under section 170 
  1.21  of the Internal Revenue Code; 
  1.22     (A) for taxable years beginning before January 1, 2004, to 
  1.23  the extent that the deduction exceeds 1.0 percent of adjusted 
  1.24  gross income, as defined; 
  1.25     (B) for taxable years beginning after December 31, 2003, 
  1.26  and before January 1, 2006, to the extent the deduction exceeds 
  2.1   0.5 percent of adjusted gross income; 
  2.2      (C) for taxable years beginning after December 31, 2005, to 
  2.3   the full extent of the deduction; 
  2.4      For purposes of this clause "adjusted gross income" has the 
  2.5   meaning given in section 62 of the Internal Revenue Code; 
  2.6      (ii) the medical expense deduction; 
  2.7      (iii) the casualty, theft, and disaster loss deduction; and 
  2.8      (iv) the impairment-related work expenses of a disabled 
  2.9   person; 
  2.10     (3) for depletion allowances computed under section 613A(c) 
  2.11  of the Internal Revenue Code, with respect to each property (as 
  2.12  defined in section 614 of the Internal Revenue Code), to the 
  2.13  extent not included in federal alternative minimum taxable 
  2.14  income, the excess of the deduction for depletion allowable 
  2.15  under section 611 of the Internal Revenue Code for the taxable 
  2.16  year over the adjusted basis of the property at the end of the 
  2.17  taxable year (determined without regard to the depletion 
  2.18  deduction for the taxable year); 
  2.19     (4) to the extent not included in federal alternative 
  2.20  minimum taxable income, the amount of the tax preference for 
  2.21  intangible drilling cost under section 57(a)(2) of the Internal 
  2.22  Revenue Code determined without regard to subparagraph (E); 
  2.23     (5) to the extent not included in federal alternative 
  2.24  minimum taxable income, the amount of interest income as 
  2.25  provided by section 290.01, subdivision 19a, clause (1); and 
  2.26     (6) the amount of addition required by section 290.01, 
  2.27  subdivision 19a, clause (7); 
  2.28     less the sum of the amounts determined under the following: 
  2.29     (1) interest income as defined in section 290.01, 
  2.30  subdivision 19b, clause (1); 
  2.31     (2) an overpayment of state income tax as provided by 
  2.32  section 290.01, subdivision 19b, clause (2), to the extent 
  2.33  included in federal alternative minimum taxable income; 
  2.34     (3) the amount of investment interest paid or accrued 
  2.35  within the taxable year on indebtedness to the extent that the 
  2.36  amount does not exceed net investment income, as defined in 
  3.1   section 163(d)(4) of the Internal Revenue Code.  Interest does 
  3.2   not include amounts deducted in computing federal adjusted gross 
  3.3   income; and 
  3.4      (4) amounts subtracted from federal taxable income as 
  3.5   provided by section 290.01, subdivision 19b, clauses (10) and 
  3.6   (11). 
  3.7      In the case of an estate or trust, alternative minimum 
  3.8   taxable income must be computed as provided in section 59(c) of 
  3.9   the Internal Revenue Code. 
  3.10     (b) "Investment interest" means investment interest as 
  3.11  defined in section 163(d)(3) of the Internal Revenue Code. 
  3.12     (c) "Tentative minimum tax" equals 6.4 percent of 
  3.13  alternative minimum taxable income after subtracting the 
  3.14  exemption amount determined under subdivision 3. 
  3.15     (d) "Regular tax" means the tax that would be imposed under 
  3.16  this chapter (without regard to this section and section 
  3.17  290.032), reduced by the sum of the nonrefundable credits 
  3.18  allowed under this chapter.  
  3.19     (e) "Net minimum tax" means the minimum tax imposed by this 
  3.20  section. 
  3.21     [EFFECTIVE DATE.] This section is effective for taxable 
  3.22  years beginning after December 31, 2003. 
  3.23     Sec. 2.  Minnesota Statutes 2002, section 290.091, 
  3.24  subdivision 3, is amended to read: 
  3.25     Subd. 3.  [EXEMPTION AMOUNT.] (a) For purposes of computing 
  3.26  the alternative minimum tax, the exemption amount is: 
  3.27     (1) for taxable years beginning before January 1, 2004, the 
  3.28  exemption determined under section 55(d) of the Internal Revenue 
  3.29  Code, as amended through December 31, 1992; 
  3.30     (2) for taxable years beginning after December 31, 2003, 
  3.31  and before January 1, 2006, $42,000 for married couples filing 
  3.32  joint returns; $21,000 for married individuals filing separate 
  3.33  returns, estates, and trusts; and $31,500 for unmarried 
  3.34  individuals; 
  3.35     (3) for taxable years beginning after December 31, 2005, 
  3.36  and before January 1, 2007, $44,000 for married couples filing 
  4.1   joint returns; $22,000 for married individuals filing separate 
  4.2   returns, estates, and trusts; and $33,000 for unmarried 
  4.3   individuals; 
  4.4      (4) for taxable years beginning after December 31, 2006, 
  4.5   and before January 1, 2008, $46,000 for married couples filing 
  4.6   joint returns; $23,000 for married individuals filing separate 
  4.7   returns, estates, and trusts; and $34,500 for unmarried 
  4.8   individuals; 
  4.9      (5) for taxable years beginning after December 31, 2007, 
  4.10  and before January 1, 2009, $48,000 for married couples filing 
  4.11  joint returns; $24,000 for married individuals filing separate 
  4.12  returns, estates, and trusts; and $36,000 for unmarried 
  4.13  individuals; 
  4.14     (6) for taxable years beginning after December 31, 2008, 
  4.15  $50,000 for married couples filing joint returns; $25,000 for 
  4.16  married individuals filing separate returns, estates, and 
  4.17  trusts; and $37,500 for unmarried individuals. 
  4.18     (b) The exemption amount determined under this subdivision 
  4.19  is subject to the phase out under section 55(d)(3) of the 
  4.20  Internal Revenue Code, except that alternative minimum taxable 
  4.21  income as determined under this section must be substituted in 
  4.22  the computation of the phase out under section 55(d)(3). 
  4.23     (c) For taxable years beginning after December 31, 2009, 
  4.24  the exemption amount under paragraph (a), clause (6), must be 
  4.25  adjusted for inflation.  The commissioner shall make the 
  4.26  inflation adjustments in accordance with section 1(f) of the 
  4.27  Internal Revenue Code except that for the purposes of this 
  4.28  subdivision the percentage increase must be determined from the 
  4.29  year starting September 1, 2008, and ending August 31, 2009, as 
  4.30  the base year for adjusting for inflation for the tax year 
  4.31  beginning after December 31, 2009.  The determination of the 
  4.32  commissioner under this subdivision is not a rule under the 
  4.33  Administrative Procedure Act. 
  4.34     [EFFECTIVE DATE.] This section is effective for taxable 
  4.35  years beginning after December 31, 2003.