Minnesota Legislature
SF 1860
as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
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A bill for an act
relating to taxation; conforming to various federal tax changes for individual
income, corporate franchise, and estate taxes, and property tax refunds; amending
Minnesota Statutes 2006, sections 289A.02, subdivision 7; 290.01, subdivisions
19, as amended, 31, as amended; 290A.03, subdivision 15, as amended; 291.005,
subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2006, section 289A.02, subdivision 7, is amended to
read:
Subd. 7.
Internal Revenue Code.
Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text begin May 18,
2006deleted text end new text begin December 31, 2006new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2006, section 290.01, subdivision 19, as amended by Laws
2007, chapter 1, section 1, 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 deleted text begin May 18deleted text end new text begin December 31new text end ,
2006, shall be in effect for taxable years beginning after December 31, 1996deleted text begin , and before
January 1, 2006, and for taxable years beginning after December 31, 2006. 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, 2007deleted 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 following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2006, section 290.01 subdivision 31, as amended by Laws
2007, chapter 1, section 3, is amended to read:
Subd. 31.
Internal Revenue Code.
Unless specifically defined otherwise, deleted text begin for
taxable years beginning before January 1, 2006, and after December 31, 2006,deleted text end "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text begin May 18,
2006; 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
throughdeleted text end December 31, 2006.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following 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. 4.
Minnesota Statutes 2006, section 290A.03, subdivision 15, as amended by
Laws 2007, chapter 1, section 4, is amended to read:
Subd. 15.
Internal Revenue Code.
deleted text begin For taxable years beginning before January 1,
2006, and after December 31, 2006,deleted text end "Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended through deleted text begin May 18, 2006; 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 throughdeleted text end December 31, 2006.
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
Sec. 5.
Minnesota Statutes 2006, section 291.005, subdivision 1, is amended to read:
Subdivision 1.
Scope.
Unless the context otherwise clearly requires, the following
terms used in this chapter shall have the following meanings:
(1) "Federal gross estate" means the gross estate of a decedent as valued and
otherwise determined for federal estate tax purposes by federal taxing authorities pursuant
to the provisions of the Internal Revenue Code.
(2) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
excluding therefrom any property included therein which has its situs outside Minnesota,
and (b) including therein any property omitted from the federal gross estate which is
includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
authorities.
(3) "Personal representative" means the executor, administrator or other person
appointed by the court to administer and dispose of the property of the decedent. If there
is no executor, administrator or other person appointed, qualified, and acting within this
state, then any person in actual or constructive possession of any property having a situs in
this state which is included in the federal gross estate of the decedent shall be deemed
to be a personal representative to the extent of the property and the Minnesota estate tax
due with respect to the property.
(4) "Resident decedent" means an individual whose domicile at the time of death
was in Minnesota.
(5) "Nonresident decedent" means an individual whose domicile at the time of
death was not in Minnesota.
(6) "Situs of property" means, with respect to real property, the state or country in
which it is located; with respect to tangible personal property, the state or country in which
it was normally kept or located at the time of the decedent's death; and with respect to
intangible personal property, the state or country in which the decedent was domiciled
at death.
(7) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.
(8) "Internal Revenue Code" means the United States Internal Revenue Code of
1986, as amended through deleted text begin May 18, 2006deleted text end new text begin December 31, 2006new text end .
(9) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
defined by section 2011(b)(3) of the Internal Revenue Code, increased by the amount of
deduction for state death taxes allowed under section 2058 of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end