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.

new text begin [290.0695] EMPLOYEE CREDIT FOR CERTAIN
EMPLOYER-PROVIDED FITNESS FACILITY EXPENSES.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin (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.
new text end

new text begin (b) The credit is allowed to an individual whose employer either:
new text end

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

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

new text begin (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.
new text end

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

new text begin (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;
new text end

new text begin (2) is not a private club owned and operated by its members;
new text end

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

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

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

new text begin (6) is located off the employer's premises.
new text end

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

new text begin Subd. 2. new text end

new text begin Limitation. new text end

new text begin 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.
new text end

new text begin Subd. 3. new text end

new text begin Nonresidents and part-year residents. new text end

new text begin 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).
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, 2016.
new text end