SF 1420

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; expanding eligibility for the 
  1.3             2000 sales tax rebate; appropriating money; amending 
  1.4             Laws 2000, chapter 490, article 1, section 2. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Laws 2000, chapter 490, article 1, section 2, 
  1.7   is amending to read: 
  1.8      Sec. 2.  [SALES TAX REBATE.] 
  1.9      (a) An individual who: 
  1.10     (1) was eligible for a credit under Laws 1998, chapter 389, 
  1.11  article 1, section 1, and who filed for or received that credit 
  1.12  on or before November 30, 2000; or 
  1.13     (2) was a resident of Minnesota for any part of 1998, and 
  1.14  filed a 1998 Minnesota income tax return on or before November 
  1.15  30, 2000, and had a tax liability before refundable credits on 
  1.16  that return of at least $1 but did not file the claim for credit 
  1.17  authorized under Laws 1998, chapter 389, article 1, section 1, 
  1.18  as amended, and who was not allowed to be claimed as a dependent 
  1.19  on a 1998 federal income tax return filed by another person; or 
  1.20     (3) had the property taxes payable on his or her homestead 
  1.21  abated to zero under Laws 1998, chapter 383, section 20, shall 
  1.22  receive a sales tax rebate. 
  1.23     (b) The sales tax rebate for taxpayers who qualify under 
  1.24  paragraph (a) as married filing joint or head of household must 
  1.25  be computed according to the following schedule: 
  2.1        Income                                Sales Tax Rebate
  2.2    less than $2,500                                $168
  2.3    at least $2,500 but less than $5,000            $217
  2.4    at least $5,000 but less than $10,000           $231
  2.5    at least $10,000 but less than $15,000          $253
  2.6    at least $15,000 but less than $20,000          $275
  2.7    at least $20,000 but less than $25,000          $299
  2.8    at least $25,000 but less than $30,000          $312
  2.9    at least $30,000 but less than $35,000          $338
  2.10   at least $35,000 but less than $40,000          $369
  2.11   at least $40,000 but less than $45,000          $396
  2.12   at least $45,000 but less than $50,000          $417
  2.13   at least $50,000 but less than $60,000          $444
  2.14   at least $60,000 but less than $70,000          $476
  2.15   at least $70,000 but less than $80,000          $523
  2.16   at least $80,000 but less than $90,000          $562
  2.17   at least $90,000 but less than $100,000         $620
  2.18   at least $100,000 but less than $120,000        $671
  2.19   at least $120,000 but less than $140,000        $735
  2.20   at least $140,000 but less than $160,000        $795
  2.21   at least $160,000 but less than $180,000        $851
  2.22   at least $180,000 but less than $200,000        $904
  2.23   at least $200,000 but less than $400,000      $1,157
  2.24   at least $400,000 but less than $600,000      $1,522
  2.25   at least $600,000 but less than $800,000      $1,826
  2.26   at least $800,000 but less than $1,000,000    $2,093
  2.27   $1,000,000 and over                           $2,400
  2.28     (c) The sales tax rebate for individuals who qualify under 
  2.29  paragraph (a) as single or married filing separately must be 
  2.30  computed according to the following schedule: 
  2.31   Income                                    Sales Tax Rebate
  2.32   less than $2,500                                $95
  2.33   at least $2,500 but less than $5,000           $116
  2.34   at least $5,000 but less than $10,000          $137
  2.35   at least $10,000 but less than $15,000         $184
  2.36   at least $15,000 but less than $20,000         $210
  3.1    at least $20,000 but less than $25,000         $228
  3.2    at least $25,000 but less than $30,000         $238
  3.3    at least $30,000 but less than $40,000         $259
  3.4    at least $40,000 but less than $50,000         $290
  3.5    at least $50,000 but less than $70,000         $342
  3.6    at least $70,000 but less than $100,000        $435
  3.7    at least $100,000 but less than $140,000       $524
  3.8    at least $140,000 but less than $200,000       $632
  3.9    at least $200,000 but less than $400,000       $857
  3.10   at least $400,000 but less than $600,000     $1,128
  3.11   $600,000 and over                            $1,200
  3.12     (d) Individuals who were not residents of Minnesota for any 
  3.13  part of 1998 and who paid more than $10 in Minnesota sales tax 
  3.14  on nonbusiness consumer purchases in that year qualify for a 
  3.15  rebate under this paragraph only.  Qualifying nonresidents must 
  3.16  file a claim for rebate on a form prescribed by the commissioner 
  3.17  by November 30, 2000.  The claim must include receipts showing 
  3.18  the Minnesota sales tax paid and the date of the sale.  Taxes 
  3.19  paid on purchases allowed in the computation of federal taxable 
  3.20  income or reimbursed by an employer are not eligible for the 
  3.21  rebate.  The commissioner shall determine the qualifying taxes 
  3.22  paid and rebate the lesser of: 
  3.23     (1) 29.7 percent of that amount; or 
  3.24     (2) the maximum amount for which the claimant would have 
  3.25  been eligible as determined under paragraph (b) if the taxpayer 
  3.26  filed the 1998 federal income tax return as a married taxpayer 
  3.27  filing jointly or head of household, or as determined under 
  3.28  paragraph (c) for other taxpayers. 
  3.29     (e) "Income," for purposes of this section other than 
  3.30  paragraph (d), is taxable income as defined in section 63 of the 
  3.31  Internal Revenue Code of 1986, as amended through December 31, 
  3.32  1997, plus the sum of any additions to federal taxable income 
  3.33  for the taxpayer under Minnesota Statutes, section 290.01, 
  3.34  subdivision 19a, and reported on the original 1998 income tax 
  3.35  return, including subsequent adjustments to that return made 
  3.36  within the time limits specified in paragraph (l).  For an 
  4.1   individual who was a resident of Minnesota for less than the 
  4.2   entire year, the sales tax rebate equals the sales tax rebate 
  4.3   calculated under paragraph (b) or (c) multiplied by the 
  4.4   percentage determined pursuant to Minnesota Statutes, section 
  4.5   290.06, subdivision 2c, paragraph (e), as calculated on the 
  4.6   original 1998 income tax return, including subsequent 
  4.7   adjustments to that return made within the time limits specified 
  4.8   in paragraph (l).  For purposes of paragraph (d), "income" is 
  4.9   taxable income as defined in section 63 of the Internal Revenue 
  4.10  Code of 1986, as amended through December 31, 1997, and reported 
  4.11  on the taxpayer's original federal tax return for the first 
  4.12  taxable year beginning after December 31, 1997. 
  4.13     (f) Individuals who were residents of Minnesota for all of 
  4.14  1998, were not eligible for a rebate under paragraph (a), 
  4.15  attained the age of 18 on or before December 31, 1998, and 
  4.16  received in 1998 social security benefits as defined in section 
  4.17  86(d)(1) of the Internal Revenue Code of 1986, as amended 
  4.18  through December 31, 1999, are entitled to a rebate of $95.  If 
  4.19  the Social Security Administration or Railroad Retirement Board 
  4.20  is paying benefits to a recipient by electronic funds transfers 
  4.21  in 2000, the rebate under this paragraph must be paid by the 
  4.22  commissioner through electronic funds transfer to the same 
  4.23  financial institution and into the same account into which the 
  4.24  Social Security Administration or Railroad Retirement Board 
  4.25  transfers social security benefits in calendar year 2000. 
  4.26     (g) An individual who: 
  4.27     (1) was allowed to be claimed as a dependent on a 1998 
  4.28  federal income tax return filed by another person; 
  4.29     (2) would have otherwise been eligible for a rebate under 
  4.30  clause (a)(2); and 
  4.31     (3) reported earned income as defined in section 
  4.32  32(c)(2)(A)(i) of the Internal Revenue Code, 
  4.33  is eligible for a rebate under this paragraph only.  The rebate 
  4.34  under this paragraph equals 35 percent of the amount allowed 
  4.35  under the schedule in paragraph (c) based on the individual's 
  4.36  income.  For an individual who was a resident of Minnesota for 
  5.1   less than the entire year, the sales tax rebate equals the 
  5.2   rebate calculated under this paragraph multiplied by the 
  5.3   percentage determined pursuant to Minnesota Statutes, section 
  5.4   290.06, subdivision 2c, paragraph (e), as calculated on the 
  5.5   original 1998 income tax return. 
  5.6      (h) An individual who 
  5.7      (1) was a resident of Minnesota for any part of 1998; 
  5.8      (2) was not eligible for a rebate under paragraph (a) or 
  5.9   (f); 
  5.10     (3) was not allowed to be claimed as a dependent on a 1998 
  5.11  federal income tax return by another person; and 
  5.12     (4) filed a 1998 Minnesota income tax return before 
  5.13  November 30, 2000, in order to 
  5.14     (i) claim a credit under section 290.067, 290.0671, or 
  5.15  290.0674; 
  5.16     (ii) claim a refund of withheld taxes; or 
  5.17     (iii) claim a refund of estimated taxes, 
  5.18  is eligible for a rebate under this paragraph only.  For married 
  5.19  couples filing joint returns and heads of households, the rebate 
  5.20  equals the minimum amount in paragraph (b).  For single filers 
  5.21  and married individuals filing separate returns, the rebate 
  5.22  equals the minimum amount in paragraph (c).  For an individual 
  5.23  who was a resident of Minnesota for less than the entire year, 
  5.24  the sales tax rebate equals the rebate calculated under this 
  5.25  paragraph multiplied by the percentage determined pursuant to 
  5.26  Minnesota Statutes, section 290.06, subdivision 2c, paragraph 
  5.27  (e), as calculated on the original 1998 income tax return. 
  5.28     (i) For a fiscal year taxpayer, the dates in paragraphs (a) 
  5.29  through (d) are extended one month for each month in calendar 
  5.30  year 1998 that occurred prior to the start of the individual's 
  5.31  1998 fiscal tax year. 
  5.32     (j) Before payment, the commissioner of revenue shall 
  5.33  adjust the rebate as follows:  the rebates calculated in 
  5.34  paragraphs (b), (c), (d), (f), (g), and (h) must be 
  5.35  proportionately reduced to account for (i) rebates under 
  5.36  paragraphs (g) and (h), and (ii) 1998 income tax returns that 
  6.1   are filed on or after January 1, 2000, but before June 1, 2000, 
  6.2   so that the estimated amount of sales tax rebates payable under 
  6.3   paragraphs (b), (c), (d), (f), (g), and (h) on the date the 
  6.4   rebate is processed does not exceed $635,600,000.  The 
  6.5   adjustment under this paragraph is not a rule subject to 
  6.6   Minnesota Statutes, chapter 14. 
  6.7      (k) The commissioner of revenue may begin making sales tax 
  6.8   rebates by July 1, 2000.  Sales tax rebates not paid by January 
  6.9   1, 2001, bear interest at the rate specified in Minnesota 
  6.10  Statutes, section 270.75.  Sales tax rebates paid to individuals 
  6.11  qualifying under paragraph (x) bear interest at the rate 
  6.12  specified in Minnesota Statutes, section 270.75, beginning April 
  6.13  1, 2002. 
  6.14     (l) A sales tax rebate shall not be adjusted based on 
  6.15  changes to a 1998 income tax return that are made by order of 
  6.16  assessment after the date the rebate is processed, or made by 
  6.17  the taxpayer that are filed with the commissioner of revenue 
  6.18  after that date. 
  6.19     (m) Individuals who filed a joint income tax return for 
  6.20  1998 shall receive a joint sales tax rebate.  After the sales 
  6.21  tax rebate has been issued, but before the check has been 
  6.22  cashed, either joint claimant may request a separate check for 
  6.23  one-half of the joint sales tax rebate.  Notwithstanding 
  6.24  anything in this section to the contrary, if prior to payment, 
  6.25  the commissioner has been notified that persons who filed a 
  6.26  joint 1998 income tax return are living at separate addresses, 
  6.27  as indicated on their 1999 income tax return or otherwise, the 
  6.28  commissioner may issue separate checks to each person.  The 
  6.29  amount payable to each person is one-half of the total joint 
  6.30  rebate. 
  6.31     (n) If a rebate is received by the estate of a deceased 
  6.32  individual after the probate estate has been closed, and if the 
  6.33  original rebate check is returned to the commissioner with a 
  6.34  copy of the decree of descent or final account of the estate, 
  6.35  social security numbers, and addresses of the beneficiaries, the 
  6.36  commissioner may issue separate checks in proportion to their 
  7.1   share in the residuary estate in the names of the residuary 
  7.2   beneficiaries of the estate. 
  7.3      (o) The sales tax rebate is a "Minnesota tax law" for 
  7.4   purposes of Minnesota Statutes, section 270B.01, subdivision 8. 
  7.5      (p) The sales tax rebate is "an overpayment of any tax 
  7.6   collected by the commissioner" for purposes of Minnesota 
  7.7   Statutes, section 270.07, subdivision 5.  For purposes of this 
  7.8   paragraph, a joint sales tax rebate is payable to each spouse 
  7.9   equally. 
  7.10     (q) If the commissioner of revenue cannot locate an 
  7.11  individual entitled to a sales tax rebate by July 1, 2002, or if 
  7.12  an individual to whom a sales tax rebate was issued has not 
  7.13  cashed the check by July 1, 2002, the right to the sales tax 
  7.14  rebate lapses and the check must be deposited in the general 
  7.15  fund. 
  7.16     (r) Individuals entitled to a sales tax rebate pursuant to 
  7.17  paragraph (a), (f), (g), or (h) but who did not receive one, and 
  7.18  individuals who receive a sales tax rebate that was not 
  7.19  correctly computed, must file a claim with the commissioner 
  7.20  before July 1, 2001, in a form prescribed by the commissioner.  
  7.21  These claims must be treated as if they are a claim for refund 
  7.22  under Minnesota Statutes, section 289A.50, subdivisions 4 and 
  7.23  7.  Individuals who qualify for a rebate under paragraph (x), 
  7.24  and who do not receive it or who receive a sales tax rebate that 
  7.25  was not correctly computed, must file a claim with the 
  7.26  commissioner before July 1, 2002, in a form prescribed by the 
  7.27  commissioner. 
  7.28     (s) The sales tax rebate is a refund subject to revenue 
  7.29  recapture under Minnesota Statutes, chapter 270A.  The 
  7.30  commissioner of revenue shall remit the entire refund to the 
  7.31  claimant agency, which shall, upon the request of the spouse who 
  7.32  does not owe the debt, refund one-half of the joint sales tax 
  7.33  rebate to the spouse who does not owe the debt. 
  7.34     (t) The rebate is a reduction of fiscal year 2000 sales tax 
  7.35  revenues.  The amount necessary to make the sales tax rebates 
  7.36  and interest provided in this section is appropriated from the 
  8.1   general fund to the commissioner of revenue in fiscal year 2000 
  8.2   and is available until June 30, 2002. 
  8.3      (u) If a sales tax rebate check is cashed by someone other 
  8.4   than the payee or payees of the check, and the commissioner of 
  8.5   revenue determines that the check has been forged or improperly 
  8.6   endorsed or the commissioner determines that a rebate was 
  8.7   overstated or erroneously issued, the commissioner may issue an 
  8.8   order of assessment for the amount of the check or the amount 
  8.9   the check is overstated against the person or persons cashing 
  8.10  it.  The assessment must be made within two years after the 
  8.11  check is cashed, but if cashing the check constitutes theft 
  8.12  under Minnesota Statutes, section 609.52, or forgery under 
  8.13  Minnesota Statutes, section 609.631, the assessment can be made 
  8.14  at any time.  The assessment may be appealed administratively 
  8.15  and judicially.  The commissioner may take action to collect the 
  8.16  assessment in the same manner as provided by Minnesota Statutes, 
  8.17  chapter 289A, for any other order of the commissioner assessing 
  8.18  tax. 
  8.19     (v) Notwithstanding Minnesota Statutes, sections 9.031, 
  8.20  16A.40, 16B.49, 16B.50, and any other law to the contrary, the 
  8.21  commissioner of revenue may take whatever actions the 
  8.22  commissioner deems necessary to pay the rebates required by this 
  8.23  section, and may, in consultation with the commissioner of 
  8.24  finance and the state treasurer, contract with a private vendor 
  8.25  or vendors to process, print, and mail the rebate checks or 
  8.26  warrants required under this section and receive and disburse 
  8.27  state funds to pay those checks or warrants. 
  8.28     (w) The commissioner may pay rebates required by this 
  8.29  section by electronic funds transfer to individuals who 
  8.30  requested that their 1999 individual income tax refund be paid 
  8.31  through electronic funds transfer.  The commissioner may make 
  8.32  the electronic funds transfer payments to the same financial 
  8.33  institution and into the same account as the 1999 individual 
  8.34  income tax refund. 
  8.35     (x) An individual who: 
  8.36     (1) was a resident of Minnesota for any part of 1998; 
  9.1      (2) filed a 1998 federal income tax return on or before 
  9.2   December 31, 2001; 
  9.3      (3) had a federal tax liability before refundable credits 
  9.4   on that return of at least $1; and 
  9.5      (4) does not qualify for a rebate under paragraph (a), (f), 
  9.6   (g), or (h), 
  9.7   is eligible for a rebate under this paragraph only. 
  9.8   Qualifying individuals must file a claim for rebate on a form 
  9.9   prescribed by the commissioner by December 31, 2001.  The claim 
  9.10  must include a copy of the individual's 1998 federal income tax 
  9.11  return and a copy of the individual's 1998 Minnesota income tax 
  9.12  return.  For an individual who qualifies under this paragraph 
  9.13  and was allowed to be claimed as a dependent on a 1998 federal 
  9.14  income tax return filed by another person and who reported 
  9.15  earned income as defined in section 32(c)(2)(A)(i) of the 
  9.16  Internal Revenue Code, the rebate under this paragraph equals 35 
  9.17  percent of the amount allowed under the schedule in paragraph 
  9.18  (c) based on the individual's income.  For all other individuals 
  9.19  who qualify under this paragraph, the rebate equals the amount 
  9.20  allowed based on the individual's income under the schedule in 
  9.21  paragraph (b) for married couples filing joint returns and heads 
  9.22  of household and the amount allowed based on the individual's 
  9.23  income under the schedule in paragraph (c) for single filers and 
  9.24  heads of household. 
  9.25     [EFFECTIVE DATE.] This section is effective the day 
  9.26  following final enactment. 
  9.27     Sec. 2.  [APPLICATION OF LAW.] 
  9.28     The limitation on the total amount of rebates in Laws 2000, 
  9.29  chapter 490, article 1, section 2, paragraph (j), does not apply 
  9.30  to rebates issued under section 1.  To the extent applicable, 
  9.31  all other provisions of Laws 2000, chapter 490, article 1, 
  9.32  section 2, apply to the rebates paid under section 1, including 
  9.33  the adjustments made under section 1, paragraph (j). 
  9.34     [EFFECTIVE DATE.] This section is effective the day 
  9.35  following final enactment. 
  9.36     Sec. 3.  [APPROPRIATION.] 
 10.1      The amount necessary to pay the rebates under section 1 is 
 10.2   appropriated from the general fund to the commissioner of 
 10.3   revenue for fiscal years 2001 and 2002. 
 10.4      [EFFECTIVE DATE.] This section is effective the day 
 10.5   following final enactment.