SF 687

as introduced - 90th Legislature (2017 - 2018) Posted on 02/07/2017 08:55am

A bill for an act
relating to taxation; individual income; allowing a credit for employer-provided
fitness facility expenses; proposing coding for new law in Minnesota Statutes,
chapter 290.

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

Section 1.

[290.0695] EMPLOYEE CREDIT FOR CERTAIN
EMPLOYER-PROVIDED FITNESS FACILITY EXPENSES.

Subdivision 1.

Credit allowed.

(a) An individual is allowed a credit against the tax
imposed by this chapter for employer-provided fitness facility expenses. The credit equals
$2.50 for each qualifying month, and the maximum credit is $30. In the case of a married
couple filing a joint return, each spouse is eligible for the credit in this section. The credit
may not exceed the liability for tax under this chapter.

(b) The credit is allowed to an individual whose employer either:

(1) pays a portion of any fees, dues, or membership expenses on behalf of the employee
to a fitness facility; or

(2) reimburses the employee for direct payment of fees, dues, or membership expenses
made by the employee to a fitness facility.

(c) For purposes of this section, "qualifying month" means a month in which an individual
uses the fitness facility for the preservation, maintenance, encouragement, or development
of physical fitness on at least eight days.

(d) For purposes of this section, "fitness facility" means a facility located in the state
that:

(1) provides instruction in a program of physical exercise; offers facilities for the
preservation, maintenance, encouragement, or development of physical fitness; or is the
site of such a program of a state or local government;

(2) is not a private club owned and operated by its members;

(3) does not offer hunting, sailing, horseback riding, or outdoor golf facilities;

(4) does not have an overall function and purpose that makes the fitness facility incidental;

(5) is compliant with antidiscrimination laws under chapter 363A and applicable federal
antidiscrimination laws; and

(6) is located off the employer's premises.

(e) The commissioner shall prescribe the form and manner in which eligibility for the
credit is determined.

Subd. 2.

Limitation.

The credit under this section applies only if the employer's payment
of fees, dues, or membership expenses to a fitness facility is available on substantially the
same terms to each member of a group of employees defined under a reasonable classification
by the employer, but no classification may include only highly compensated employees, as
defined under section 414(q) of the Internal Revenue Code, or any other group that includes
only executives, directors, or other managerial employees.

Subd. 3.

Nonresidents and part-year residents.

For a nonresident or part-year resident,
the credit must be allocated based on the percentage calculated under section 290.06,
subdivision 2c, paragraph (e).

EFFECTIVE DATE.

This section is effective for taxable years beginning after December
31, 2016.