HF 3583

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/26/2024 04:08pm

A bill for an act
relating to taxation; individual income and corporate franchise; imposing a pollution
control surcharge on certain businesses; proposing coding for new law in Minnesota
Statutes, chapter 290.

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

Section 1.

new text begin [290.034] POLLUTION CONTROL SURCHARGE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Commissioner" means the commissioner of the Minnesota Pollution Control Agency.
new text end

new text begin (c) "Net pollution control income" means:
new text end

new text begin (1) for a corporation that is a pollution control business, taxable income, except that for
a unitary corporation, taxable income for purposes of this clause is determined by multiplying
the unitary corporation's taxable income by a percentage, the numerator of which is the
amount of taxable income from pollution control businesses in the unitary group, and the
denominator of which is the aggregate amount of the unitary corporation's taxable income;
and
new text end

new text begin (2) for an individual, estate, or trust, the federal adjusted gross income from a pollution
control business, including any share of federal adjusted gross income from a pass-through
entity that is a pollution control business, modified by the additions provided in section
290.0131, subdivisions 8 to 10, 16, and 17, and the subtractions provided in:
new text end

new text begin (i) section 290.0132, subdivisions 9 and 27, to the extent the amount is assignable or
allocable to Minnesota under section 290.17; and
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new text begin (ii) section 290.0132, subdivision 14, provided that the subtraction allowed under section
290.0132, subdivision 9, is only allowed on the net pollution control income computation
to the extent the pollution control business owner would have been allowed the subtraction.
new text end

new text begin (d) "Person" has the meaning provided in section 115.01, subdivision 10.
new text end

new text begin (e) "Pollution control business" means any person that the commissioner of the Minnesota
Pollution Control Agency has certified to the commissioner of revenue as having at least
one delinquent pollution control violation.
new text end

new text begin (f) "Pollution control violation" means any violation of sections 103F.701 to 103F.755,
325E.10 to 325E.1251, and 325E.32, chapters 114C, 115, 115A, and 116, and any rule,
standard, order, stipulation agreement, schedule of compliance, or permit adopted or issued
by the Minnesota Pollution Control Agency thereunder, or under any other law now in force
or hereafter enacted for the prevention, control, or abatement of pollution.
new text end

new text begin Subd. 2. new text end

new text begin Surcharge imposed; individuals, trusts, and estates; corporations. new text end

new text begin (a) In
addition to the tax imposed under section 290.06, subdivision 1, a pollution control surcharge
is imposed on a corporation's net pollution control income at a rate of five percent.
new text end

new text begin (b) In addition to the income taxes imposed under section 290.06, subdivision 2c, a
pollution control surcharge is imposed on an individual's, trust's, or estate's net pollution
control income at a rate of five percent.
new text end

new text begin Subd. 3. new text end

new text begin Notifications; certifications. new text end

new text begin (a) The commissioner must notify a person of
any pollution control violation known by the commissioner to have been committed by the
person, including a violation giving rise to the delinquency notice in paragraph (c). The
commissioner must include in the notification a statement regarding the remedial actions a
person must take to ensure that no further violations are committed and a time period in
which the remedial actions must be completed.
new text end

new text begin (b) If in the determination of the commissioner sufficient remedial actions are taken
within the time period provided in paragraph (a), the commissioner must certify to the person
receiving notice of a violation that the violation has been satisfactorily remedied.
new text end

new text begin (c) If the time for remedial actions provided in paragraph (a) has lapsed, the commissioner
must provide a delinquency notice to the person receiving the notice of a violation that the
violation has not been satisfactorily remedied, and that the surcharge under this section
applies to the person's net pollution control income for the taxable year in which the
delinquency notice under this paragraph is provided.
new text end

new text begin (d) By January 31 each year, the commissioner of the Minnesota Pollution Control
Agency must certify to the commissioner of revenue a list of all the persons receiving a
delinquency notice in the immediately preceding calendar year.
new text end

new text begin Subd. 4. new text end

new text begin Administration. new text end

new text begin All provisions relating to the administration of the tax imposed
under section 290.06, subdivisions 1 and 2c, not inconsistent with this section, including
but not limited to all provisions relating to compliance, audits, enforcement, reporting, filing
returns, refunds, penalties, interest, estimated tax, and all applicable statutes of limitations,
apply to the surcharge imposed by this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2023, for certifications due beginning January 31, 2025, on delinquency notices provided
after June 30, 2024.
new text end