as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to taxation; conforming to federal tax 1.3 treatment of S corporation financial institutions; 1.4 amending Minnesota Statutes 2000, section 290.9725; 1.5 repealing Minnesota Statutes 2000, sections 290.06, 1.6 subdivision 26; and 290.9726, subdivision 7. 1.7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.8 Section 1. Minnesota Statutes 2000, section 290.9725, is 1.9 amended to read: 1.10 290.9725 [S CORPORATION.] 1.11 For purposes of this chapter, the term "S corporation" 1.12 means any corporation having a valid election in effect for the 1.13 taxable year under section 1362 of the Internal Revenue Code. 1.14 An S corporation shall not be subject to the taxes imposed by 1.15 this chapter, except:1.16(1)the taxes imposed under sections 290.0922, 290.92, 1.17 290.9727, 290.9728, and 290.9729; and1.18(2) the tax under sections 290.06, subdivision 1, and1.19290.0921 apply to a financial institution to which either1.20section 585 or 593 of the Internal Revenue Code applies or that1.21has a wholly owned subsidiary as described in section1.221361(b)(3)(B) of the Internal Revenue Code which is a financial1.23institution under section 585 or 593 of the Internal Revenue1.24Code. 1.25 [EFFECTIVE DATE.] This section is effective for taxable 1.26 years beginning after December 31, 2000. 2.1 Sec. 2. [REPEALER.] 2.2 Minnesota Statutes 2000, sections 290.06, subdivision 26; 2.3 and 290.9726, subdivision 7, are repealed. 2.4 [EFFECTIVE DATE.] This section is effective for taxable 2.5 years beginning after December 31, 2000.