SF 396

1st Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to state finance; providing a sales tax 
  1.3             rebate; providing for deposit of tobacco litigation 
  1.4             settlement proceeds; abolishing the tax reform and 
  1.5             reduction account; establishing an offer-in-compromise 
  1.6             program in the department of revenue; excluding 
  1.7             certain gains on sales of farm property from the 
  1.8             income tax; providing for a property tax refund and 
  1.9             other financial assistance to farmers; appropriating 
  1.10            money; amending Minnesota Statutes 1998, sections 
  1.11            270.67, by adding a subdivision; and 290.491; 
  1.12            proposing coding for new law in Minnesota Statutes, 
  1.13            chapter 16A. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15                             ARTICLE 1 
  1.16                          SALES TAX REBATE 
  1.17     Section 1.  [STATEMENT OF PURPOSE.] 
  1.18     (a) The state of Minnesota derives revenues from a variety 
  1.19  of taxes, fees, and other sources, including the state sales tax.
  1.20     (b) It is fair and reasonable to refund the existing state 
  1.21  budget surplus in the form of a rebate of nonbusiness consumer 
  1.22  sales taxes paid by individuals in calendar year 1997. 
  1.23     (c) Information concerning the amount of sales tax paid at 
  1.24  various income levels is contained in the Minnesota tax 
  1.25  incidence report, which is written by the commissioner of 
  1.26  revenue and presented to the legislature according to Minnesota 
  1.27  Statutes, section 270.0682. 
  1.28     (d) It is fair and reasonable to use information contained 
  1.29  in the Minnesota tax incidence report to determine the 
  2.1   proportionate share of the sales tax rebate due each eligible 
  2.2   taxpayer since no effective or practical mechanism exists for 
  2.3   determining the amount of actual sales tax paid by each eligible 
  2.4   individual. 
  2.5      Sec. 2.  [SALES TAX REBATE.] 
  2.6      (a) By July 15, 1999, the commissioner of finance shall 
  2.7   certify to the commissioner of revenue the amount of revenues 
  2.8   available for rebate.  The amount available is the unrestricted 
  2.9   general fund budgetary fund balance as of June 30, 1999, plus 
  2.10  $423,300,000. 
  2.11     (b) An individual who was eligible for a credit under Laws 
  2.12  1997, chapter 231, article 1, section 16, as amended by Laws 
  2.13  1997, First Special Session chapter 5, section 35, and Laws 
  2.14  1997, Third Special Session chapter 3, section 11, and Laws 
  2.15  1998, chapter 304, and Laws 1998, chapter 389, article 1, 
  2.16  section 3, and who filed for that credit on or before April 15, 
  2.17  1999, shall receive a portion of the amount certified in 
  2.18  paragraph (a) in the form of a sales tax rebate. 
  2.19     (c) The sales tax rebate for taxpayers who filed the claim 
  2.20  for credit authorized under Laws 1997, chapter 231, article 1, 
  2.21  section 16, as amended, as married filing joint or head of 
  2.22  household must be computed according to the following schedule: 
  2.23         Income                             Sales Tax Rebate
  2.24   less than $2,500                              $  374
  2.25   at least $2,500 but less than $5,000          $  476
  2.26   at least $5,000 but less than $10,000         $  495
  2.27   at least $10,000 but less than $15,000        $  555
  2.28   at least $15,000 but less than $20,000        $  605
  2.29   at least $20,000 but less than $25,000        $  646
  2.30   at least $25,000 but less than $30,000        $  690
  2.31   at least $30,000 but less than $35,000        $  737
  2.32   at least $35,000 but less than $40,000        $  775
  2.33   at least $40,000 but less than $45,000        $  815
  2.34   at least $45,000 but less than $50,000        $  861
  2.35   at least $50,000 but less than $60,000        $  924
  2.36   at least $60,000 but less than $70,000        $1,014
  3.1    at least $70,000 but less than $80,000        $1,098
  3.2    at least $80,000 but less than $90,000        $1,181
  3.3    at least $90,000 but less than $100,000       $1,269
  3.4    at least $100,000 but less than $120,000      $1,360
  3.5    at least $120,000 but less than $140,000      $1,531
  3.6    at least $140,000 but less than $160,000      $1,648
  3.7    at least $160,000 but less than $180,000      $1,747
  3.8    at least $180,000 but less than $200,000      $1,901
  3.9    $200,000 and over                             $2,000
  3.10     (d) The sales tax rebate for individuals who filed the 
  3.11  claim for credit authorized under Laws 1997, chapter 231, 
  3.12  article 1, section 16, as amended, as single or married filing 
  3.13  separately must be computed according to the following schedule: 
  3.14         Income                                 Sales Tax Rebate
  3.15   less than $2,500                              $  197
  3.16   at least $2,500 but less than $5,000          $  244
  3.17   at least $5,000 but less than $10,000         $  302
  3.18   at least $10,000 but less than $15,000        $  356
  3.19   at least $15,000 but less than $20,000        $  418
  3.20   at least $20,000 but less than $25,000        $  471
  3.21   at least $25,000 but less than $30,000        $  522
  3.22   at least $30,000 but less than $40,000        $  585
  3.23   at least $40,000 but less than $50,000        $  671
  3.24   at least $50,000 but less than $70,000        $  798
  3.25   $70,000 and over                              $1,000
  3.26     (e) The sales tax rebate for individuals who filed a 1997 
  3.27  Minnesota income tax return and had a tax liability before 
  3.28  refundable credits on that return of at least $1 but did not 
  3.29  file the claim for credit authorized under Laws 1997, chapter 
  3.30  231, article 1, section 16, as amended, and who were not claimed 
  3.31  as dependents on the 1997 Minnesota income tax return filed by 
  3.32  another person, will receive a credit equal to $50, multiplied 
  3.33  by the fraction determined under Minnesota Statutes, section 
  3.34  290.06, subdivision 2c, paragraph (e), for nonresidents or 
  3.35  part-year residents. 
  3.36     (f) "Income," for purposes of this section, is taxable net 
  4.1   income as defined in Minnesota Statutes, section 290.01, 
  4.2   subdivision 22, and reported on the original return submitted to 
  4.3   claim the credit under Laws 1997, chapter 231, article 1, 
  4.4   section 16, as amended, or by subsequent adjustments to that 
  4.5   return made within the time limits specified in paragraph (i).  
  4.6   For an individual who was not a resident of Minnesota for the 
  4.7   entire year, the sales tax rebate equals the sales tax rebate 
  4.8   calculated under paragraph (c) or (d) multiplied by the 
  4.9   percentage determined pursuant to Minnesota Statutes, section 
  4.10  290.06, subdivision 2c, paragraph (e), as calculated on the 
  4.11  original return submitted to claim the credit under Laws 1997, 
  4.12  chapter 231, article 1, section 16, as amended, or by subsequent 
  4.13  adjustments to that return made within the time limits specified 
  4.14  in paragraph (i). 
  4.15     (g) Prior to payment, the commissioner of revenue shall 
  4.16  reduce the sales tax rebates calculated in paragraphs (c), (d), 
  4.17  and (e) proportionately to account for the amount of credits 
  4.18  described in Laws 1997, chapter 231, article 1, section 16, as 
  4.19  amended, that are paid on or after January 1, 1999, but before 
  4.20  July 1, 1999, so that the amount of sales tax rebates payable 
  4.21  under paragraphs (c), (d), and (e) do not exceed $1,063,000,000. 
  4.22  The commissioner of revenue shall also increase or decrease all 
  4.23  sales tax rebates computed under this section by the percentage 
  4.24  that the amount of revenues available for rebate as certified by 
  4.25  the commissioner of finance deviate from $1,063,000,000.  These 
  4.26  adjustments are not rules subject to Minnesota Statutes, chapter 
  4.27  14. 
  4.28     (h) The commissioner of revenue may begin making sales tax 
  4.29  rebates by August 1, 1999.  Sales tax rebates not paid by 
  4.30  October 1, 1999, shall bear interest at the rate specified in 
  4.31  Minnesota Statutes, section 270.75. 
  4.32     (i) A sales tax rebate shall not be adjusted based on 
  4.33  changes to the return on which the claim for credit authorized 
  4.34  under Laws 1997, chapter 231, article 1, section 16, as amended, 
  4.35  made by order of assessment after April 15, 1999, or made by the 
  4.36  taxpayer that are filed with the commissioner of revenue after 
  5.1   April 15, 1999. 
  5.2      (j) Individuals who filed a joint claim for credit under 
  5.3   Laws 1997, chapter 231, article 1, section 16, as amended, shall 
  5.4   receive a joint sales tax rebate.  After the sales tax rebate 
  5.5   has been issued, but before the check has been cashed, either 
  5.6   joint claimant may request a separate check for one-half of the 
  5.7   joint sales tax rebate. 
  5.8      (k) The sales tax rebate is a "Minnesota tax law" for 
  5.9   purposes of Minnesota Statutes, section 270B.01, subdivision 8. 
  5.10     (l) The sales tax rebate is "an overpayment of any tax 
  5.11  collected by the commissioner" for purposes of Minnesota 
  5.12  Statutes, section 270.07, subdivision 5.  For purposes of this 
  5.13  paragraph, a joint sales tax rebate is payable to each spouse 
  5.14  equally. 
  5.15     (m) If the commissioner of revenue cannot locate an 
  5.16  individual entitled to a sales tax rebate by July 1, 2001, or if 
  5.17  an individual to whom a sales tax rebate was issued has not 
  5.18  cashed the check by July 1, 2001, the right to the sales tax 
  5.19  rebate shall lapse and the check shall be deposited in the 
  5.20  general fund. 
  5.21     (n) Individuals entitled to a sales tax rebate pursuant to 
  5.22  paragraph (b), but who did not receive one, and individuals who 
  5.23  receive a sales tax rebate that was not correctly computed, must 
  5.24  file a claim with the commissioner before July 1, 2000, in a 
  5.25  form prescribed by the commissioner.  These claims shall be 
  5.26  treated as if they are a claim for refund under Minnesota 
  5.27  Statutes, section 289A.50, subdivisions 4 and 7. 
  5.28     (o) The sales tax rebate is a refund subject to revenue 
  5.29  recapture under Minnesota Statutes, chapter 270A.  The 
  5.30  commissioner of revenue shall remit the entire refund to the 
  5.31  claimant agency, which shall, upon the request of the spouse who 
  5.32  does not owe the debt, refund one-half of the joint sales tax 
  5.33  rebate to the spouse who does not owe the debt. 
  5.34     (p) The amount necessary to make the sales tax rebates and 
  5.35  interest provided in this section is appropriated from the 
  5.36  general fund to the commissioner of revenue in fiscal years 2000 
  6.1   and 2001. 
  6.2      (q) If a sales tax rebate check is cashed by someone other 
  6.3   than the payee or payees of the check, and the commissioner of 
  6.4   revenue determines that the check has been forged or improperly 
  6.5   endorsed, the commissioner may issue an order of assessment for 
  6.6   the amount of the check against the person or persons cashing 
  6.7   it.  The assessment must be made within two years after the 
  6.8   check is cashed, but if cashing the check constitutes theft 
  6.9   under Minnesota Statutes, section 609.52, or forgery under 
  6.10  Minnesota Statutes, section 609.631, the assessment can be made 
  6.11  at any time.  The assessment may be appealed administratively 
  6.12  and judicially.  The commissioner may take action to collect the 
  6.13  assessment in the same manner as provided by Minnesota Statutes, 
  6.14  chapter 289A, for any other order of the commissioner assessing 
  6.15  tax. 
  6.16     (r) Notwithstanding Minnesota Statutes, sections 9.031, 
  6.17  16A.40, 16B.49, 16B.50, and any other law to the contrary, the 
  6.18  commissioner of revenue may take whatever actions the 
  6.19  commissioner deems necessary to pay the rebates required by this 
  6.20  section, and may, in consultation with the commissioner of 
  6.21  finance and the state treasurer, contract with a private vendor 
  6.22  or vendors to process, print, and mail the rebate checks or 
  6.23  warrants required under this section and receive and disburse 
  6.24  state funds to pay those checks or warrants. 
  6.25     Sec. 3.  [APPROPRIATIONS.] 
  6.26     $1,000,000 is appropriated from the general fund to the 
  6.27  commissioner of revenue to administer the sales tax rebate for 
  6.28  fiscal year 1999.  Any unencumbered balance remaining on June 
  6.29  30, 1999, does not cancel but is available for expenditure by 
  6.30  the commissioner of revenue until June 30, 2001. 
  6.31     Sec. 4.  [EFFECTIVE DATE.] 
  6.32     Sections 1 to 3 are effective the day following final 
  6.33  enactment. 
  6.34                             ARTICLE 2 
  6.35                         DEDICATED ACCOUNTS
  6.36     Section 1.  [ABOLISHING TAX REFORM AND REDUCTION ACCOUNT.] 
  7.1      The tax reform and reduction account created in Laws 1998, 
  7.2   chapter 389, article 9, section 2, subdivision 2, clause (2), is 
  7.3   abolished.  The balance in the account shall revert to the 
  7.4   unrestricted general fund balance. 
  7.5      Sec. 2.  [16A.77] [TOBACCO SETTLEMENT FUND.] 
  7.6      (a) A tobacco settlement fund is established in the state 
  7.7   treasury.  Amounts in the fund are available only for purposes 
  7.8   authorized by appropriation by the legislature.  The governor 
  7.9   shall make recommendations to the legislature regarding use of 
  7.10  the money in the fund. 
  7.11     (b) The commissioner of finance shall credit all settlement 
  7.12  payments received after July 1, 1998, as defined in Section IIB 
  7.13  of the settlement document, filed May 18, 1998, in the State of 
  7.14  Minnesota et al. vs. Phillip Morris et al., to the tobacco 
  7.15  settlement fund.  All other payments to the state resulting from 
  7.16  the specified litigation shall be credited to the general fund. 
  7.17     Sec. 3.  [EFFECTIVE DATE.] 
  7.18     Sections 1 and 2 are effective the day following final 
  7.19  enactment. 
  7.20                             ARTICLE 3 
  7.21                      AGRICULTURAL TAX RELIEF 
  7.22     Section 1.  Minnesota Statutes 1998, section 270.67, is 
  7.23  amended by adding a subdivision to read: 
  7.24     Subd. 4.  [OFFER-IN-COMPROMISE PROGRAM.] (a) In 
  7.25  implementing the authority provided in subdivision 1 or in 
  7.26  section 8.30 to accept offers of installment payments or 
  7.27  offers-in-compromise of tax liabilities, the commissioner of 
  7.28  revenue shall prescribe guidelines for employees of the 
  7.29  department of revenue to determine whether an 
  7.30  offer-in-compromise or an offer to make installment payments is 
  7.31  adequate and should be accepted to resolve a dispute.  In 
  7.32  prescribing the guidelines, the commissioner shall develop and 
  7.33  publish schedules of national and local allowances designed to 
  7.34  provide that taxpayers entering into a compromise have an 
  7.35  adequate means to provide for basic living expenses.  The 
  7.36  guidelines must provide that the taxpayer's ownership interest 
  8.1   in a motor vehicle, to the extent of the value allowed in 
  8.2   section 550.37, will not be considered as an asset; in the case 
  8.3   of an offer related to a joint tax liability of spouses, that 
  8.4   value of two motor vehicles must be excluded.  The guidelines 
  8.5   must provide that employees of the department shall determine, 
  8.6   on the basis of the facts and circumstances of each taxpayer, 
  8.7   whether the use of the schedules is appropriate and that 
  8.8   employees must not use the schedules to the extent the use would 
  8.9   result in the taxpayer not having adequate means to provide for 
  8.10  basic living expenses.  The guidelines must provide that: 
  8.11     (1) an employee of the department shall not reject an 
  8.12  offer-in-compromise from a low-income taxpayer solely on the 
  8.13  basis of the amount of the offer; and 
  8.14     (2) in the case of an offer-in-compromise which relates 
  8.15  only to issues of liability of the taxpayer: 
  8.16     (i) the offer must not be rejected solely because the 
  8.17  commissioner is unable to locate the taxpayer's return or return 
  8.18  information for verification of the liability; and 
  8.19     (ii) the taxpayer shall not be required to provide an 
  8.20  audited, reviewed, or compiled financial statement. 
  8.21     (b) The commissioner shall establish procedures: 
  8.22     (1) for an independent administrative review of any 
  8.23  rejection of a proposed offer-in-compromise or installment 
  8.24  agreement made by a taxpayer under this section before the 
  8.25  rejection is communicated to the taxpayer; 
  8.26     (2) that allow a taxpayer to appeal any rejection of the 
  8.27  offer or agreement to the taxpayer rights advocate of the 
  8.28  department of revenue; 
  8.29     (3) that provide for notification to the taxpayer when an 
  8.30  offer-in-compromise has been accepted, and issuance of 
  8.31  certificates of release of any liens imposed under section 
  8.32  270.69 related to the liability which is the subject of the 
  8.33  compromise; and 
  8.34     (4) that require presentation of a counteroffer by the 
  8.35  commissioner if the amount offered by the taxpayer in an 
  8.36  offer-in-compromise is not accepted by the commissioner. 
  9.1      Sec. 2.  Minnesota Statutes 1998, section 290.491, is 
  9.2   amended to read: 
  9.3      290.491 [TAX ON GAIN; DISCHARGE IN BANKRUPTCY.] 
  9.4      (a) Any tax due under this chapter on a gain realized on a 
  9.5   forced sale pursuant to foreclosure of a mortgage or other 
  9.6   security interest in agricultural production property, other 
  9.7   real property, or equipment, used in a farm business that was 
  9.8   owned and operated by the taxpayer shall be a dischargeable debt 
  9.9   in a bankruptcy proceeding under United States Code, title 11, 
  9.10  section 727. 
  9.11     (b) Income realized on a sale or exchange of agricultural 
  9.12  production property, other real property, or equipment, used in 
  9.13  a farm business that was owned and operated by the taxpayer 
  9.14  shall be exempt from taxation under this chapter, if the 
  9.15  taxpayer was insolvent at the time of the sale or would become 
  9.16  insolvent if tax were payable on the income from the sale and 
  9.17  the proceeds of the sale were used solely to discharge 
  9.18  indebtedness secured by a mortgage, lien, or other security 
  9.19  interest on the property sold.  For purposes of this section, 
  9.20  "insolvent" means insolvent as defined in section 108(d)(3) of 
  9.21  the Internal Revenue Code. This paragraph applies only to the 
  9.22  extent that the gain is includable in federal taxable income or 
  9.23  in the computation of the alternative minimum taxable income 
  9.24  under section 290.091 for purposes of the alternative minimum 
  9.25  tax.  The amount of the exemption is limited to the excess of 
  9.26  the taxpayer's (1) liabilities over (2) the total assets and any 
  9.27  exclusion claimed under section 108 of the Internal Revenue Code 
  9.28  determined immediately before application of this paragraph. 
  9.29     (c) For purposes of this section, any tax due under this 
  9.30  chapter specifically includes, but is not limited to, tax 
  9.31  imposed under sections 290.02 and 290.03 on income derived from 
  9.32  a sale or exchange, whether constituting gain, discharge of 
  9.33  indebtedness or recapture of depreciation deductions, or the 
  9.34  alternative minimum tax imposed under section 290.091. 
  9.35     Sec. 3.  [AGRICULTURAL ASSISTANCE IN 1999.] 
  9.36     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
 10.1   subdivision apply to this section. 
 10.2      (b) "Commissioner" means the commissioner of revenue. 
 10.3      (c) "Farm service agency" means the United States Farm 
 10.4   Service Agency. 
 10.5      (d) "Farmer" means a person who produces an agricultural 
 10.6   crop or livestock and is certified by the farm service agency as 
 10.7   bearing a percentage of the risk for the production operation. 
 10.8      (e) "Livestock" means cattle, hogs, poultry, and sheep. 
 10.9      (f) "Livestock production facility" means a facility that 
 10.10  has produced at least $10,000 in sales of livestock or dairy 
 10.11  products as reported on schedule F of the farmer's federal 
 10.12  income tax return for either taxable years beginning in calendar 
 10.13  year 1997 or 1998. 
 10.14     Subd. 2.  [PAYMENT TO FARMERS.] Every farmer may apply to 
 10.15  the commissioner by April 1, 1999, for a payment as provided 
 10.16  under this subdivision.  The payment is equal to $4 for every 
 10.17  acre in Minnesota on which the farmer produced an agricultural 
 10.18  crop for crop year 1998 on at least 160 acres as certified by 
 10.19  the farm service agency by December 31, 1998.  The commissioner 
 10.20  shall prepare application forms for the payment and ensure that 
 10.21  they are available throughout the state.  To receive a payment 
 10.22  under this subdivision, a farmer must include with the 
 10.23  application a certification from the farm service agency of the 
 10.24  number of acres farmed, including any percentage of risk for 
 10.25  particular acres.  The commissioner shall make the payment to 
 10.26  each eligible farmer by May 1, 1999. 
 10.27     Subd. 3.  [LIVESTOCK PRODUCERS.] A farmer who operates a 
 10.28  livestock production facility on 160 acres or less is eligible 
 10.29  for the agricultural property tax refund under subdivisions 4 to 
 10.30  8.  The refund is in lieu of the per acre payment under 
 10.31  subdivision 2.  To qualify, the farmer must apply for the refund 
 10.32  as provided in subdivisions 4 to 8. 
 10.33     Subd. 4.  [REFUND.] The refund equals the full amount of 
 10.34  the property tax payment due and payable on May 15, 1999, on 
 10.35  class 1b agricultural homestead property or class 2a 
 10.36  agricultural homestead property as defined in Minnesota 
 11.1   Statutes, section 273.13, excluding that portion of the tax 
 11.2   attributable to the house, garage, and surrounding acre of 
 11.3   land.  If a portion of the property was leased for the 1998 
 11.4   agricultural production year, the refund amount shall be 
 11.5   prorated so that only the portion of the property which was not 
 11.6   leased for the 1998 agricultural production year qualifies for 
 11.7   the refund.  
 11.8      Subd. 5.  [CERTIFICATION.] The commissioner shall develop a 
 11.9   form by February 15, 1999, for use by the county auditors to 
 11.10  ascertain qualification for the refund under subdivisions 4 to 
 11.11  8.  The form shall require the property owner to certify that (1)
 11.12  the owner operates a livestock production facility on 160 acres 
 11.13  or less, and (2) the percentage of that property, if any, that 
 11.14  was leased to anyone for the 1998 agricultural production year.  
 11.15  Any person qualifying under subdivision 3 shall contact the 
 11.16  county auditor in the county where the livestock production 
 11.17  facility is located and shall file the required form with the 
 11.18  county auditor by April 1, 1999. 
 11.19     Subd. 6.  [VERIFICATION.] The county auditor shall 
 11.20  determine the amount of the refund for all qualifying properties 
 11.21  in the county for which the owner has applied under subdivision 
 11.22  5.  By April 10, 1999, the county auditor shall notify all 
 11.23  applicants of the amount of the refund. 
 11.24     Subd. 7.  [CERTIFICATION AND PAYMENT.] By April 20, 1999, 
 11.25  any person eligible for the refund under subdivisions 4 to 8 
 11.26  shall send the commissioner a copy of the certification that the 
 11.27  taxpayer received from the county auditor.  The commissioner 
 11.28  shall issue a refund to each qualifying taxpayer by May 10, 1999.
 11.29     Subd. 8.  [PROPERTY TAX REFUND.] Taxpayers benefiting from 
 11.30  the refund under subdivisions 4 to 8 must deduct the amount of 
 11.31  the refund from the net property taxes payable when applying for 
 11.32  a property tax refund under Minnesota Statutes 1998, section 
 11.33  290A.04, subdivision 2. 
 11.34     Subd. 9.  [LIMIT.] No person may receive a payment under 
 11.35  subdivision 2 or a property tax refund under subdivisions 4 to 8 
 11.36  that exceeds $3,000. 
 12.1      Subd. 10.  [APPROPRIATION.] (a) The amount necessary to 
 12.2   make the payments required under this section is appropriated 
 12.3   from the general fund in the state treasury to the commissioner 
 12.4   of revenue for fiscal year 1999. 
 12.5      (b) An amount not to exceed one percent of the total amount 
 12.6   payable under subdivision 4 for fiscal year 1999 is appropriated 
 12.7   to the commissioner of revenue for distribution to counties for 
 12.8   the costs of administering subdivisions 4 to 8.  The amount must 
 12.9   be allocated among the counties in the ratio of the number of 
 12.10  applications received in a county to the total number of 
 12.11  applications received in all counties. 
 12.12     Sec. 4.  [EFFECTIVE DATE.] 
 12.13     Section 1 is effective the day following final enactment, 
 12.14  and applies to offers-in-compromise submitted after June 30, 
 12.15  1999.  Section 2 is effective for taxable years beginning after 
 12.16  December 31, 1997.  Section 3 is effective the day following 
 12.17  final enactment.