HF 3523

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; converting the transit pass credit to a refund and extending
it to additional employers; amending Minnesota Statutes 2004, section 290.06,
subdivision 28.

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

Section 1.

Minnesota Statutes 2004, section 290.06, subdivision 28, is amended to read:

Subd. 28.

Credit Refunds for transit passes.

(a) A taxpayer An employer may
take a credit against the tax due under this chapter claim a refund equal to 30 percent
of the expense incurred by the taxpayer employer to provide transit passes, for use in
Minnesota, to employees of the taxpayer.

(b) As used in this subdivision, the following terms have the meanings given:

(1) "employer" means an individual or entity subject to tax under this chapter
or an entity that is exempt from taxation under section 290.05, but excluding entities
enumerated in section 290.05, subdivision 1, clause (b); and

(2) "transit pass" has the meaning given in section 132(f)(5)(A) of the Internal
Revenue Code.

(c) If the taxpayer employer purchases the transit passes from the transit system
operator, and resells them to the employees, the credit refund is based on the amount of
the difference between the price paid for the passes by the employer and the amount
charged to employees.

(d) The commissioner shall prescribe the forms for and the manner in which the
refund may be claimed. The commissioner must provide for paying refunds at least
quarterly. The commissioner may set a minimum amount of qualifying expenses that must
be incurred before a refund may be claimed.

(e) An amount sufficient to pay the refunds required by this subdivision is
appropriated to the commissioner of revenue.

EFFECTIVE DATE.

This section is effective for transit passes purchased after
June 30, 2006.