SF 1575

as introduced - 88th Legislature (2013 - 2014) Posted on 04/11/2013 09:09am

A bill for an act
relating to taxation; corporate franchise; modifying the thresholds for the
corporate minimum fee; providing for indexation of the corporate minimum fee;
amending Minnesota Statutes 2012, section 290.0922, subdivision 1.

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

Section 1.

Minnesota Statutes 2012, section 290.0922, subdivision 1, is amended to read:

Subdivision 1.

Imposition.

(a) In addition to the tax imposed by this chapter without
regard to this section, the franchise tax imposed on a corporation required to file under
section 289A.08, subdivision 3, other than a corporation treated as an "S" corporation
under section 290.9725 for the taxable year includes a tax equal to the following amounts:

If the sum of the corporation's Minnesota property, payrolls, and sales or receipts is:							the tax equals:
		less than		$	deleted text begin 500,000 deleted text end new text begin 930,000 new text end		$	0
	$	deleted text begin 500,000 deleted text end new text begin 930,000 new text end	to	$	deleted text begin 999,999 deleted text end new text begin 1,869,999 new text end		$	deleted text begin 100 deleted text end new text begin 190 new text end
	$	deleted text begin 1,000,000 deleted text end new text begin 1,870,000 new text end	to	$	deleted text begin 4,999,999 deleted text end new text begin 9,339,999 new text end		$	deleted text begin 300 deleted text end new text begin 560 new text end
	$	deleted text begin 5,000,000 deleted text end new text begin 9,340,000 new text end	to	$	deleted text begin 9,999,999 deleted text end new text begin 18,679,999 new text end		$	deleted text begin 1,000 deleted text end new text begin 1,870 new text end
	$	deleted text begin 10,000,000 deleted text end new text begin 18,680,000 new text end	to	$	deleted text begin 19,999,999 deleted text end new text begin 37,359,999 new text end		$	deleted text begin 2,000 deleted text end new text begin 3,740 new text end
	$	deleted text begin 20,000,000 deleted text end new text begin 37,360,000 new text end	or	more			$	deleted text begin 5,000 deleted text end new text begin 9,340 new text end

(b) A tax is imposed for each taxable year on a corporation required to file a return
under section 289A.12, subdivision 3, that is treated as an "S" corporation under section
290.9725 and on a partnership required to file a return under section 289A.12, subdivision
3, other than a partnership that derives over 80 percent of its income from farming. The
tax imposed under this paragraph is due on or before the due date of the return for the
taxpayer due under section 289A.18, subdivision 1. The commissioner shall prescribe
the return to be used for payment of this tax. The tax under this paragraph is equal to
the following amounts:

If the sum of the S corporation's or partnership's Minnesota property, payrolls, and sales or receipts is:							the tax equals:
		less than		$	deleted text begin 500,000 deleted text end new text begin 930,000 new text end		$	0
	$	deleted text begin 500,000 deleted text end new text begin 930,000 new text end	to	$	deleted text begin 999,999 deleted text end new text begin 1,869,999 new text end		$	deleted text begin 100 deleted text end new text begin 190 new text end
	$	deleted text begin 1,000,000 deleted text end new text begin 1,870,000 new text end	to	$	deleted text begin 4,999,999 deleted text end new text begin 9,339,999 new text end		$	deleted text begin 300 deleted text end new text begin 560 new text end
	$	deleted text begin 5,000,000 deleted text end new text begin 9,340,000 new text end	to	$	deleted text begin 9,999,999 deleted text end new text begin 18,679,999 new text end		$	deleted text begin 1,000 deleted text end new text begin 1,870 new text end
	$	deleted text begin 10,000,000 deleted text end new text begin 18,680,000 new text end	to	$	deleted text begin 19,999,999 deleted text end new text begin 37,359,999 new text end		$	deleted text begin 2,000 deleted text end new text begin 3,740 new text end
	$	deleted text begin 20,000,000 deleted text end new text begin 37,360,000 new text end	or	more			$	deleted text begin 5,000 deleted text end new text begin 9,340 new text end

new text begin (c) The commissioner shall adjust the dollar amounts of both the tax and the property,
payrolls, and sales or receipts thresholds in paragraphs (a) and (b) by the percentage
determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except
that in section 1(f)(3)(B) the word "2012" must be substituted for the word "1992." For
2014, the commissioner shall determine the percentage change from the 12 months ending
on August 31, 2012, to the 12 months ending on August 31, 2013, and in each subsequent
year, from the 12 months ending on August 31, 2012, to the 12 months ending on August
31 of the year preceding the taxable year. The determination of the commissioner pursuant
to this subdivision is not a rule subject to the Administrative Procedure Act contained in
chapter 14. The tax amounts as adjusted must be rounded to the nearest $10 amount and
the threshold amounts must be adjusted to the nearest $10,000 amount. For tax amounts
that end in $5, the amount is rounded up to the nearest $10 amount, and for threshold
amounts that end in $5,000, the amount is rounded up to the nearest $10,000.
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, 2012.
new text end