Minnesota Legislature
SF 61
as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
Current Version - as introduced
1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 2.1 2.2 2.3 2.4 2.5 2.6 2.7
2.8
2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36
3.1
3.2 3.3 3.4
3.5 3.6
A bill for an act
relating to corporate franchise tax; providing for
single sales apportionment; amending Minnesota
Statutes 2004, section 290.191, subdivisions 2, 3;
repealing Minnesota Statutes 2004, section 290.191,
subdivision 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2004, section 290.191,
subdivision 2, is amended to read:
Subd. 2.
Apportionment formula of general application.
Except for those trades or businesses required to use a
different formula under subdivision 3 or section 290.36, and for
those trades or businesses that receive permission to use some
other method under section 290.20deleted text begin or under subdivision 4deleted text end , a
trade or business required to apportion its net income must
apportion its income to this state on the basis of deleted text begin the
percentage obtained by taking the sum of:
deleted text end
deleted text begin
(1) 75 percent of deleted text end the percentage which the sales made
within this state in connection with the trade or business
during the tax period are of the total sales wherever made in
connection with the trade or business during the tax perioddeleted text begin ;deleted text end new text begin .
new text end
deleted text begin
(2) 12.5 percent of the percentage which the total tangible
property used by the taxpayer in this state in connection with
the trade or business during the tax period is of the total
tangible property, wherever located, used by the taxpayer in
connection with the trade or business during the tax period; and
deleted text end
deleted text begin
(3) 12.5 percent of the percentage which the taxpayer's
total payrolls paid or incurred in this state or paid in respect
to labor performed in this state in connection with the trade or
business during the tax period are of the taxpayer's total
payrolls paid or incurred in connection with the trade or
business during the tax period.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable
years beginning after December 31, 2004.
new text end
Sec. 2.
Minnesota Statutes 2004, section 290.191,
subdivision 3, is amended to read:
Subd. 3.
Apportionment formula for financial
institutions.
Except for an investment company required to
apportion its income under section 290.36, a financial
institution that is required to apportion its net income must
apportion its net income to this state on the basis of the
percentage deleted text begin obtained by taking the sum of:
deleted text end
deleted text begin
(1) 75 percent of the percentage deleted text end which the receipts from
within this state in connection with the trade or business
during the tax period are of the total receipts in connection
with the trade or business during the tax period, from wherever
deriveddeleted text begin ;deleted text end new text begin .
new text end
deleted text begin
(2) 12.5 percent of the percentage which the sum of the
total tangible property used by the taxpayer in this state and
the intangible property owned by the taxpayer and attributed to
this state in connection with the trade or business during the
tax period is of the sum of the total tangible property,
wherever located, used by the taxpayer and the intangible
property owned by the taxpayer and attributed to all states in
connection with the trade or business during the tax period; and
deleted text end
deleted text begin
(3) 12.5 percent of the percentage which the taxpayer's
total payrolls paid or incurred in this state or paid in respect
to labor performed in this state in connection with the trade or
business during the tax period are of the taxpayer's total
payrolls paid or incurred in connection with the trade or
business during the tax period.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable
years beginning after December 31, 2004.
new text end
Sec. 3. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2004, section 290.191, subdivision 4, is
repealed.
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, 2004.
new text end