Minnesota Legislature
SF 1922
as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
Current Version - as introduced
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A bill for an act
relating to taxation; income; modifying rates;
providing a credit for nursing home residents;
appropriating money; amending Minnesota Statutes 2004,
section 290.06, subdivisions 2c, 2d; proposing coding
for new law in Minnesota Statutes, chapter 290.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2004, section 290.06,
subdivision 2c, is amended to read:
Subd. 2c.
Schedules of rates for individuals, estates,
and trusts.
(a) The income taxes imposed by this chapter upon
married individuals filing joint returns and surviving spouses
as defined in section 2(a) of the Internal Revenue Code must be
computed by applying to their taxable net income the following
schedule of rates:
(1) On the first deleted text begin $25,680 deleted text end new text begin $29,070new text end , 5.35 percent;
(2) On all over deleted text begin $25,680 deleted text end new text begin $29,070new text end , but not
over deleted text begin $102,030 deleted text end new text begin $115,510new text end , 7.05 percent;
(3) On all over deleted text begin $102,030 deleted text end new text begin $115,510, but not over $1,000,000new text end ,
7.85 percentnew text begin ;
new text end
new text begin
(4) On all over $1,000,000, 8.3 percentnew text end .
Married individuals filing separate returns, estates, and
trusts must compute their income tax by applying the above rates
to their taxable income, except that the income brackets will be
one-half of the above amounts.
(b) The income taxes imposed by this chapter upon unmarried
individuals must be computed by applying to taxable net income
the following schedule of rates:
(1) On the first deleted text begin $17,570 deleted text end new text begin $19,890new text end , 5.35 percent;
(2) On all over deleted text begin $17,570 deleted text end new text begin $19,890new text end , but not
over deleted text begin $57,710 deleted text end new text begin $65,330new text end , 7.05 percent;
(3) On all over deleted text begin $57,710 deleted text end new text begin $65,330, but not over $500,000new text end ,
7.85 percentnew text begin ;
new text end
new text begin
(4) On all over $500,000, 8.3 percentnew text end .
(c) The income taxes imposed by this chapter upon unmarried
individuals qualifying as a head of household as defined in
section 2(b) of the Internal Revenue Code must be computed by
applying to taxable net income the following schedule of rates:
(1) On the first deleted text begin $21,630 deleted text end new text begin $24,490new text end , 5.35 percent;
(2) On all over deleted text begin $21,630 deleted text end new text begin $24,490new text end , but not
over deleted text begin $86,910 deleted text end new text begin $98,390new text end , 7.05 percent;
(3) On all over deleted text begin $86,910 deleted text end new text begin $98,390 but not over $500,000new text end , 7.85
percentnew text begin ;
new text end
new text begin
(4) On all over $500,000, 8.3 percentnew text end .
(d) In lieu of a tax computed according to the rates set
forth in this subdivision, the tax of any individual taxpayer
whose taxable net income for the taxable year is less than an
amount determined by the commissioner must be computed in
accordance with tables prepared and issued by the commissioner
of revenue based on income brackets of not more than $100. The
amount of tax for each bracket shall be computed at the rates
set forth in this subdivision, provided that the commissioner
may disregard a fractional part of a dollar unless it amounts to
50 cents or more, in which case it may be increased to $1.
(e) An individual who is not a Minnesota resident for the
entire year must compute the individual's Minnesota income tax
as provided in this subdivision. After the application of the
nonrefundable credits provided in this chapter, the tax
liability must then be multiplied by a fraction in which:
(1) the numerator is the individual's Minnesota source
federal adjusted gross income as defined in section 62 of the
Internal Revenue Code and increased by the additions required
under section 290.01, subdivision 19a, clauses (1), (5), and
(6), and reduced by the subtraction under section 290.01,
subdivision 19b, clause (11), and the Minnesota assignable
portion of the subtraction for United States government interest
under section 290.01, subdivision 19b, clause (1), after
applying the allocation and assignability provisions of section
290.081, clause (a), or 290.17; and
(2) the denominator is the individual's federal adjusted
gross income as defined in section 62 of the Internal Revenue
Code of 1986, increased by the amounts specified in section
290.01, subdivision 19a, clauses (1), (5), and (6), and reduced
by the amounts specified in section 290.01, subdivision 19b,
clauses (1) and (11).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable
years beginning after December 31, 2004.
new text end
Sec. 2.
Minnesota Statutes 2004, section 290.06,
subdivision 2d, is amended to read:
Subd. 2d.
Inflation adjustment of brackets.
(a) For
taxable years beginning after December 31, deleted text begin 2000 deleted text end new text begin 2005new text end , the
minimum and maximum dollar amounts for each rate bracket for
which a tax is imposed in subdivision 2c shall be adjusted for
inflation by the percentage determined under paragraph (b). For
the purpose of making the adjustment as provided in this
subdivision all of the rate brackets provided in subdivision 2c
shall be the rate brackets as they existed for taxable years
beginning after December 31, deleted text begin 1999 deleted text end new text begin 2004new text end , and before January
1, deleted text begin 2001 deleted text end new text begin 2006new text end . The rate applicable to any rate bracket must not
be changed. The dollar amounts setting forth the tax shall be
adjusted to reflect the changes in the rate brackets. The rate
brackets as adjusted must be rounded to the nearest $10 amount.
If the rate bracket ends in $5, it must be rounded up to the
nearest $10 amount.
(b) The commissioner shall adjust the rate brackets and 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 deleted text begin "1999" deleted text end new text begin "2004" new text end shall be substituted for the
word "1992." For deleted text begin 2001 deleted text end new text begin 2006new text end , the commissioner shall then
determine the percent change from the 12 months ending on August
31, deleted text begin 1999 deleted text end new text begin 2004new text end , to the 12 months ending on August 31, deleted text begin 2000 deleted text end new text begin 2005new text end ,
and in each subsequent year, from the 12 months ending on August
31, deleted text begin 1999 deleted text end new text begin 2004new text end , to the 12 months ending on August 31 of the year
preceding the taxable year. The determination of the
commissioner pursuant to this subdivision shall not be
considered a "rule" and shall not be subject to the
Administrative Procedure Act contained in chapter 14.
No later than December 15 of each year, the commissioner
shall announce the specific percentage that will be used to
adjust the tax rate brackets.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable
years beginning after December 31, 2004.
new text end
Sec. 3.
new text begin
[290.0676] CREDIT FOR PRIVATE-PAY NURSING HOME
RESIDENTS.
new text end
new text begin Subdivision 1. new text end
new text begin Credit allowed. new text end
new text begin
An individual is allowed
a credit against the tax imposed by this chapter equal to $5.55
for each day during the taxable year for which the individual
resided as a private-pay resident in a non-state-operated
nursing home licensed under chapter 144A. The credit may be
claimed by either the private-pay resident or by an individual
who paid the surcharge on behalf of the resident, but only one
credit may be claimed for each private-pay resident.
new text end
new text begin Subd. 2. new text end
new text begin Credit refundable. new text end
new text begin
If the amount of credit
which the claimant is eligible to receive under this section
exceeds the claimant's tax liability under this chapter, the
commissioner shall refund the excess to the claimant.
new text end
new text begin Subd. 3.new text end
new text begin Appropriation.new text end
new text begin An amount sufficient to pay the
refunds required by this section is appropriated to the
commissioner from the general fund.
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, 2004.
new text end