as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 03/02/2006 |
A bill for an act
relating to taxation; modifying the withholding rules for payments to contractors;
amending Minnesota Statutes 2005 Supplement, section 290.9705, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2005 Supplement, section 290.9705, subdivision 1,
is amended to read:
(a) In this
section, "person" means a person, corporation, or cooperative, the state of Minnesota and
its political subdivisions, and a city, county, and school district in Minnesota.
(b) A person who in the regular course of business is hiring, contracting, or having a
contract with a nonresident person or foreign corporation, as defined in Minnesota Statutes
1986, section 290.01, subdivision 5, to perform construction work in Minnesota, shall
deduct and withhold eight percent of deleted text begin cumulative calendar year paymentsdeleted text end new text begin every paymentnew text end
to the contractor deleted text begin which exceed $50,000deleted text end new text begin if the contract exceeds or can be reasonably
expected to exceed $100,000new text end .
new text begin
This section is effective for payments made after December
31, 2006.
new text end