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Minnesota Legislature

Office of the Revisor of Statutes

SF 17

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to taxation; conforming certain income, franchise, and property tax
refund provisions for tax year 2006 to the federal teacher expense deduction,
tuition subtraction, and other provisions of the Tax Relief and Health Care Act of
2006, the Heroes Earned Retirement Opportunity Act, and the Pension Protection
Plan of 2006; amending Minnesota Statutes 2006, sections 290.01, subdivisions
19, 31; 290A.03, subdivision 15.

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

Section 1.

Minnesota Statutes 2006, section 290.01, subdivision 19, is amended to read:


Subd. 19.

Net income.

The term "net income" means the federal taxable income,
as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
date named in this subdivision, incorporating the federal effective dates of changes to the
Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in subdivisions 19a to 19f.

In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:

(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;

(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
Revenue Code must be applied by allowing a deduction for capital gain dividends and
exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
Revenue Code; and

(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.

The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.

The net income of a designated settlement fund as defined in section 468B(d) of
the Internal Revenue Code means the gross income as defined in section 468B(b) of the
Internal Revenue Code.

The Internal Revenue Code of 1986, as amended through May 18, 2006, shall be in
effect for taxable years beginning after December 31, 1996new text begin, and before January 1, 2006,
and for taxable years beginning after December 31, 2007. The Internal Revenue Code of
1986, as amended through December 31, 2006, is in effect for taxable years beginning
after December 31, 2005, and before January 1, 2007
new text end.

Except as otherwise provided, references to the Internal Revenue Code in
subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
the applicable year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after final enactment.
new text end

Sec. 2.

Minnesota Statutes 2006, section 290.01, subdivision 31, is amended to read:


Subd. 31.

Internal Revenue Code.

Unless specifically defined otherwise, new text beginfor
taxable years beginning before January 1, 2006, and after December 31, 2006,
new text end"Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through May 18,
2006new text begin; and for taxable years beginning after December 31, 2005, and before January 1,
2007, "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended
through December 31, 2006
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after final enactment except
the changes incorporated by federal changes are effective at the same time as the changes
were effective for federal purposes.
new text end

Sec. 3.

Minnesota Statutes 2006, section 290A.03, subdivision 15, is amended to read:


Subd. 15.

Internal Revenue Code.

new text beginFor taxable years beginning before January 1,
2006, and after December 31, 2006,
new text end"Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended through May 18, 2006new text begin; and for taxable years beginning after
December 31, 2005, and before January 1, 2007, "Internal Revenue Code" means the
Internal Revenue Code of 1986, as amended through December 31, 2006
new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property tax refunds based on
property taxes payable on or after December 31, 2006, and rent paid on or after December
31, 2005.
new text end