as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to housing; providing for deposit and use of 1.3 certain revenues in the housing development fund; 1.4 providing an addition to federal taxable income for 1.5 certain taxpayers for certain residence interest; 1.6 appropriating money; amending Minnesota Statutes 1994, 1.7 sections 290.01, subdivision 19a; 290.62; and 462A.20, 1.8 subdivision 2, and by adding a subdivision. 1.9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.10 Section 1. Minnesota Statutes 1994, section 290.01, 1.11 subdivision 19a, is amended to read: 1.12 Subd. 19a. [ADDITIONS TO FEDERAL TAXABLE INCOME.] For 1.13 individuals, estates, and trusts, there shall be added to 1.14 federal taxable income: 1.15 (1)(i) interest income on obligations of any state other 1.16 than Minnesota or a political or governmental subdivision, 1.17 municipality, or governmental agency or instrumentality of any 1.18 state other than Minnesota exempt from federal income taxes 1.19 under the Internal Revenue Code or any other federal statute, 1.20 and 1.21 (ii) exempt-interest dividends as defined in section 1.22 852(b)(5) of the Internal Revenue Code, except the portion of 1.23 the exempt-interest dividends derived from interest income on 1.24 obligations of the state of Minnesota or its political or 1.25 governmental subdivisions, municipalities, governmental agencies 1.26 or instrumentalities, but only if the portion of the 1.27 exempt-interest dividends from such Minnesota sources paid to 2.1 all shareholders represents 95 percent or more of the 2.2 exempt-interest dividends that are paid by the regulated 2.3 investment company as defined in section 851(a) of the Internal 2.4 Revenue Code, or the fund of the regulated investment company as 2.5 defined in section 851(h) of the Internal Revenue Code, making 2.6 the payment; and 2.7 (iii) for the purposes of items (i) and (ii), interest on 2.8 obligations of an Indian tribal government described in section 2.9 7871(c) of the Internal Revenue Code shall be treated as 2.10 interest income on obligations of the state in which the tribe 2.11 is located; 2.12 (2)(i) the amount of income taxes paid or accrued within 2.13 the taxable year under this chapter and income taxes paid to any 2.14 other state or to any province or territory of Canada, to the 2.15 extent allowed as a deduction under section 63(d) of the 2.16 Internal Revenue Code
, but the addition; 2.17 (ii) for individuals with incomes, as defined in section 2.18 290.067, subdivision 2a, in excess of the following thresholds: 2.19 $100,000 for married individuals filing joint returns, $50,000 2.20 for married individuals filing separate returns, $75,000 for 2.21 unmarried individuals, and $75,000 for unmarried individuals 2.22 qualifying as heads of households, four percent of the excess of 2.23 qualified residence interest, as defined in section 163(h) of 2.24 the Internal Revenue Code, over $10,000 for each $1,000 of 2.25 income, or fraction thereof, over the threshold, to the extent 2.26 allowed as a deduction under section 63(d) of the Internal 2.27 Revenue Code; and 2.28 (iii) the sum of the additions made under items (i) and 2.29 (ii) may not be more than the amount by which the itemized 2.30 deductions as allowed under section 63(d) of the Internal 2.31 Revenue Code exceeds the amount of the standard deduction as 2.32 defined in section 63(c) of the Internal Revenue Code. For the 2.33 purpose of this paragraph, the disallowance of itemized 2.34 deductions under section 68 of the Internal Revenue Code of 2.35 1986, income tax isand qualified interest are the last itemized 2.36 deductiondeductions disallowed; 3.1 (3) the capital gain amount of a lump sum distribution to 3.2 which the special tax under section 1122(h)(3)(B)(ii) of the Tax 3.3 Reform Act of 1986, Public Law Number 99-514, applies; and 3.4 (4) the amount of income taxes paid or accrued within the 3.5 taxable year under this chapter and income taxes paid to any 3.6 other state or any province or territory of Canada, to the 3.7 extent allowed as a deduction in determining federal adjusted 3.8 gross income. For the purpose of this paragraph, income taxes 3.9 do not include the taxes imposed by sections 290.0922, 3.10 subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729. 3.11 Sec. 2. Minnesota Statutes 1994, section 290.62, is 3.12 amended to read: 3.13 290.62 [DISTRIBUTION OF REVENUES.] 3.14 Subdivision 1. [DEPOSIT; APPROPRIATION.] All revenues 3.15 derived from the taxes, interest, penalties and charges under 3.16 this chapter shall, notwithstanding any other provisions of law, 3.17 be paid into the state treasury and credited to the general 3.18 fund, and be distributed as follows: 3.19 (1) There shall, notwithstanding any other provision of the 3.20 law, be paid from this general fund all refunds of taxes 3.21 erroneously collected from taxpayers under this chapter as 3.22 provided herein; 3.23 (2) There is hereby appropriated to the persons entitled to 3.24 payment herein, from the fund or account in the state treasury 3.25 to which the money was credited, an amount sufficient to make 3.26 the refund and payment. 3.27 Subd. 2. [TRANSFER.] Notwithstanding subdivision 1, the 3.28 commissioner of revenue shall annually by June 15 estimate the 3.29 additional revenue attributable to the qualified residence 3.30 interest deduction limitation in section 290.01, subdivision 3.31 19a, clause (2), item (ii), for the preceding taxable year, and 3.32 notify the commissioner of finance. The commissioner of finance 3.33 shall transfer that amount from the general fund to the housing 3.34 development fund established under section 462A.20. 3.35 Sec. 3. Minnesota Statutes 1994, section 462A.20, 3.36 subdivision 2, is amended to read: 4.1 Subd. 2. There shall be paid into the housing development 4.2 fund: 4.3 (a) Any moneys appropriated and made available by the state 4.4 for the purposes of the fund; 4.5 (b) Any moneys which the agency receives in repayment of 4.6 advances made from the fund; 4.7 (c) Any other moneys which may be made available to the 4.8 agency for the purpose of the fund from any other source or 4.9 sources; 4.10 (d) All fees and charges collected by the agency; 4.11 (e) The amount attributable to the qualified residence 4.12 interest deduction limitation transferred to the fund as 4.13 provided under section 290.62, subdivision 2; 4.14 (f) All interest or other income not required by the 4.15 provisions of a resolution or indenture securing notes or bonds 4.16 to be paid into another special fund; but the agency shall not 4.17 expend money for its cost of general administration of agency 4.18 programs in any fiscal year in excess of such limit for such 4.19 fiscal year as may be established by law. "Cost of general 4.20 administration of agency programs" does not include debt 4.21 service, amortization of deferred financing costs, loan 4.22 origination costs, professional and other contractual services, 4.23 any deposit or expenditure required to be made by the provisions 4.24 of a bond or note resolution or indenture, or any deposit or 4.25 expenditure made to preserve the security for the bonds or notes. 4.26 Sec. 4. Minnesota Statutes 1994, section 462A.20, is 4.27 amended by adding a subdivision to read: 4.28 Subd. 4. [DISTRIBUTION OF FUNDS.] The funds transferred to 4.29 the housing development fund under subdivision 2, paragraph (e), 4.30 are appropriated annually to the agency. For taxable year 1995, 4.31 funds are to be distributed according to this act. For taxable 4.32 years following December 31, 1995, funds are to be distributed 4.33 based on priorities set each year by the legislature. All funds 4.34 received under subdivision 2, paragraph (e), are available until 4.35 expended. 4.36 Sec. 5. [APPROPRIATIONS.] 5.1 Subdivision 1. [TRANSITIONAL HOUSING.] $....... is 5.2 appropriated from the general fund to the commissioner of the 5.3 department of economic security for the purpose of Minnesota 5.4 Statutes, section 268.38, transitional housing programs. 5.5 Subd. 2. [HOUSING TRUST FUND ACCOUNT.] $....... is 5.6 appropriated from the general fund to the commissioner of the 5.7 housing finance agency for transfer to the housing trust fund 5.8 account. 5.9 Subd. 3. [FAMILY STABILIZATION DEMONSTRATION 5.10 PROJECT.] $....... is appropriated from the general fund to the 5.11 commissioner of the housing finance agency for transfer to the 5.12 housing development fund for the purpose of the rent assistance 5.13 for family stabilization demonstration project. 5.14 Subd. 4. [CAPACITY BUILDING GRANTS.] $....... is 5.15 appropriated from the general fund to the commissioner of the 5.16 housing finance agency for transfer to the housing development 5.17 fund for the purpose of capacity building grants. 5.18 Subd. 5. [RURAL AND URBAN HOMESTEADING PROGRAM.] $....... 5.19 is appropriated from the general fund to the commissioner of the 5.20 housing finance agency for transfer to the housing development 5.21 fund for the purpose of the rural and urban homesteading program. 5.22 Subd. 6. [LEAD ABATEMENT.] $....... is appropriated from 5.23 the general fund to the commissioner of the housing finance 5.24 agency for transfer to the housing development fund for the 5.25 purpose of residential lead paint and lead contaminated soil 5.26 abatement. 5.27 Subd. 7. [MORTGAGE FORECLOSURE AND EMERGENCY RENTAL 5.28 ASSISTANCE.] $....... is appropriated from the general fund to 5.29 the commissioner of the housing finance agency for transfer to 5.30 the housing development fund for the purpose of mortgage 5.31 foreclosure prevention and emergency rental assistance. 5.32 Subd. 8. [HOMELESS PREVENTION.] $....... is appropriated 5.33 from the general fund to the commissioner of the housing finance 5.34 agency for transfer to the housing development fund for the 5.35 purpose of family homeless prevention and assistance. 5.36 Subd. 9. [HOMEOWNERSHIP ASSISTANCE.] $....... is 6.1 appropriated from the general fund to the commissioner of the 6.2 housing finance agency for transfer to the housing development 6.3 fund for the purpose of the homeownership assistance fund. 6.4 Sec. 6. [EFFECTIVE DATE.] 6.5 Sections 1 to 4 are effective for taxable years beginning 6.6 after December 31, 1995.