SF 1079

as introduced - 89th Legislature (2015 - 2016) Posted on 08/21/2015 11:55am

A bill for an act
proposing an amendment to the Minnesota Constitution, article XI, by adding
a section; creating a dedicated fund for long-term care services; closing a tax
loophole by levying a tax on individuals with income not taxed for Social
Security purposes to fund long-term care services; dedicating revenues;
providing for the commissioner of revenue and the commissioner of human
services to propose implementing legislation.

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

ARTICLE 1

CONSTITUTIONAL AMENDMENT

Section 1. new text begin CONSTITUTIONAL AMENDMENT PROPOSED.
new text end

new text begin An amendment to the Minnesota Constitution is proposed to the people. If the
amendment is adopted, a section shall be added to article XI, to read:
new text end

new text begin Sec. 16. new text end

new text begin A dedicated long-term care fund for the benefit of Minnesotans is created.
This dedicated long-term care fund is funded by closing a large tax loophole. Prior to the
adoption of this amendment, the highest income people did not pay any Social Security
tax on any of their highest income. Only the highest income people received this special
treatment. Closing this loophole, and treating the highest income people the same as
everyone else, provides the funds necessary to help our most vulnerable citizens who need
long-term care. Receipts from the tax under this section, plus penalties and interest, and
less any refunds, are dedicated to that fund. For taxable years beginning after December
31, 2017, and before January 1, 2038, a tax is levied on high-income individuals with
income not taxed for Social Security purposes at the rate that the federal government
taxes income for Social Security purposes. If the federal government implements a tiered
system for taxing income for Social Security purposes, the tax under this section is levied
at the lowest tiered rate. Income not taxed for Social Security purposes is any income from
wages or self-employment that is in excess of the Social Security contribution and benefit
base for the taxable year. The money dedicated under this section shall be appropriated
by law to fund the range of long-term care services provided to Minnesotans. Funds
appropriated by law must supplement traditional sources of funding for long-term care
services and may not be used as a substitute. Funds appropriated by law must reflect the
demands and needs of the populations receiving long-term care services. Funds must be
appropriated for services in all regions of the state and must be used in part to equalize
rates paid for long-term care services in different regions of the state.
new text end

Sec. 2. new text begin SUBMISSION TO VOTERS.
new text end

new text begin (a) The title required under Minnesota Statutes, section 204D.15, subdivision 1,
for the question submitted to the people under paragraph (b) shall be "Dedication to
Our Most Vulnerable Citizens."
new text end

new text begin (b) The proposed amendment must be submitted to the people at the 2016 general
election. The question submitted must be:
new text end

new text begin "Shall the Minnesota Constitution be amended to dedicate funding to long-term care
for seniors and people with disabilities? This care will be funded by closing a large tax
loophole. Currently, the highest income people do not pay any Social Security tax on any
of their highest income. Only the highest income people receive this special treatment.
Closing this loophole, and treating the highest income people the same as everyone else,
will provide the funds necessary to help our most vulnerable citizens.
new text end

	new text begin Yes . new text end
	new text begin No . new text end	new text begin " new text end

ARTICLE 2

IMPLEMENTING LEGISLATION

Section 1. new text begin AGENCY PROPOSAL FOR IMPLEMENTING LEGISLATION.
new text end

new text begin If the amendment in article 1, section 1, to the Minnesota Constitution, article XI,
is adopted, the commissioner of revenue and the commissioner of human services shall
propose legislation to implement the long-term care tax and to appropriate the proceeds of
the tax. The legislation must be introduced at the 2017 general session of the Minnesota
Legislature.
new text end