HF 63

as introduced - 88th Legislature (2013 - 2014) Posted on 01/14/2013 02:33pm

A bill for an act
relating to taxation; conforming certain income, franchise, and property tax
refund provisions for tax year 2012 to the provisions of the Federal Aviation
Administration Modernization and Reform Act of 2012 and the American
Taxpayer Relief Act of 2012; amending Minnesota Statutes 2012, sections
290.01, subdivisions 19, 31; 290A.03, subdivision 15.

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

Section 1.

Minnesota Statutes 2012, section 290.01, subdivision 19, is amended to read:

Subd. 19.

Net income.

The term "net income" means the federal taxable income,
as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
date named in this subdivision, incorporating the federal effective dates of changes to the
Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in subdivisions 19a to 19f.

In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:

(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;

(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
Revenue Code must be applied by allowing a deduction for capital gain dividends and
exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
Revenue Code; and

(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.

The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.

The net income of a designated settlement fund as defined in section 468B(d) of
the Internal Revenue Code means the gross income as defined in section 468B(b) of the
Internal Revenue Code.

The Internal Revenue Code of 1986, as amended through April 14, 2011, shall be
in effect for taxable years beginning after December 31, 1996 deleted text begin . The provisions of the
act of January 22, 2010, Public Law 111-126, to accelerate the benefits for charitable
cash contributions for the relief of victims of the Haitian earthquake, are effective at the
same time they became effective for federal purposes and apply to the subtraction under
subdivision 19b, clause (6). The provisions of title II, section 2112, of the act of September
27, 2010, Public Law 111-240, rollovers from elective deferral plans to designated Roth
accounts, are effective at the same time they became effective for federal purposes and
taxable rollovers are included in net income at the same time they are included in gross
income for federal purposes deleted text end new text begin , and before January 1, 2012, and for taxable years beginning
after December 31, 2012. The Internal Revenue Code of 1986, as amended through
January 3, 2013, is in effect for taxable years beginning after December 31, 2011, and
before January 1, 2013 new text end .

Except as otherwise provided, references to the Internal Revenue Code in
subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
the applicable year.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2012, section 290.01, subdivision 31, is amended to read:

Subd. 31.

Internal Revenue Code.

Unless specifically defined otherwise, new text begin for
taxable years beginning before January 1, 2012, and after December 31, 2012, new text end "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through April 14,
2011 new text begin ; and for taxable years beginning after December 31, 2011, and before January 1,
2013, "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended
through January 3, 2013 new text end . Internal Revenue Code also includes any uncodified provision in
federal law that relates to provisions of the Internal Revenue Code that are incorporated
into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1,
subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as
amended through March 18, 2010.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
except the changes incorporated by federal changes are effective at the same time as the
changes were effective for federal purposes.
new text end

Sec. 3.

Minnesota Statutes 2012, section 290A.03, subdivision 15, is amended to read:

Subd. 15.

Internal Revenue Code.

new text begin For taxable years beginning before January 1,
2012, and after December 31, 2012, new text end "Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended through April 14, 2011 new text begin ; and for taxable years beginning after
December 31, 2011, and before January 1, 2013, "Internal Revenue Code" means the
Internal Revenue Code of 1986, as amended through January 3, 2013 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property tax refunds based on
property taxes payable after December 31, 2012, and rent paid after December 31, 2011.
new text end

Sec. 4. new text begin AMENDED RETURNS; CERTAIN IRA ROLLOVERS.
new text end

new text begin An individual who excludes an amount from net income in a prior taxable year
through rollover of an airline payment amount to a traditional IRA, as authorized under
Public Law 112-95, section 1106, may file an amended individual income tax return and
claim for refund of state taxes as provided under Minnesota Statutes, section 289A.40,
subdivision 1, or, if later, by April 15, 2013.
new text end

new text begin EFFECTIVE DATE. new text end

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