SF 2043

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to public safety; eliminating the automobile 
  1.3             theft prevention program; making conforming change; 
  1.4             amending Minnesota Statutes 2000, section 290.35, 
  1.5             subdivision 2; repealing Minnesota Statutes 2000, 
  1.6             section 168A.40, subdivisions 3 and 4. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 290.35, 
  1.9   subdivision 2, is amended to read: 
  1.10     Subd. 2.  [APPORTIONMENT OF TAXABLE NET INCOME.] The 
  1.11  commissioner shall compute therefrom the taxable net income of 
  1.12  such companies by assigning to this state that proportion 
  1.13  thereof which the gross premiums collected by them during the 
  1.14  taxable year from old and new business within this state bears 
  1.15  to the total gross premiums collected by them during that year 
  1.16  from their entire old and new business, including reinsurance 
  1.17  premiums; provided, the commissioner shall add to the taxable 
  1.18  net income so apportioned to this state the amount of any taxes 
  1.19  on premiums paid by the company by virtue of any law of this 
  1.20  state (other than the surcharge on premiums imposed by section 
  1.21  297I.10 and the surcharge imposed by section 168A.40, 
  1.22  subdivision 3) which shall have been deducted from gross income 
  1.23  by the company in arriving at its total net income. 
  1.24     (a) For purposes of determining the Minnesota apportionment 
  1.25  percentage, premiums from reinsurance contracts in connection 
  1.26  with property in or liability arising out of activity in, or in 
  2.1   connection with the lives or health of Minnesota residents shall 
  2.2   be assigned to Minnesota and premiums from reinsurance contracts 
  2.3   in connection with property in or liability arising out of 
  2.4   activity in, or in connection with the lives or health of 
  2.5   non-Minnesota residents shall be assigned outside of Minnesota. 
  2.6   Reinsurance premiums are presumed to be received for a Minnesota 
  2.7   risk and are assigned to Minnesota, if:  
  2.8      (1) the reinsurance contract is assumed for a company 
  2.9   domiciled in Minnesota; and 
  2.10     (2) the taxpayer, upon request of the commissioner, fails 
  2.11  to provide reliable records indicating the reinsured contract 
  2.12  covered non-Minnesota risks. 
  2.13  For purposes of this paragraph, "Minnesota risk" means coverage 
  2.14  in connection with property in or liability arising out of 
  2.15  activity in Minnesota, or in connection with the lives or health 
  2.16  of Minnesota residents. 
  2.17     (b) The apportionment method prescribed by paragraph (a) 
  2.18  shall be presumed to fairly and correctly determine the 
  2.19  taxpayer's taxable net income.  If the method prescribed in 
  2.20  paragraph (a) does not fairly reflect all or any part of taxable 
  2.21  net income, the taxpayer may petition for or the commissioner 
  2.22  may require the determination of taxable net income by use of 
  2.23  another method if that method fairly reflects taxable net 
  2.24  income.  A petition within the meaning of this section must be 
  2.25  filed by the taxpayer on such form as the commissioner shall 
  2.26  require. 
  2.27     Sec. 2.  [REPEALER.] 
  2.28     Minnesota Statutes 2000, section 168A.40, subdivisions 3 
  2.29  and 4, are repealed effective July 1, 2001.