as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
A bill for an act
relating to taxation; amending the income and franchise tax apportionment
formula; amending Minnesota Statutes 2006, section 290.191, subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2006, section 290.191, subdivision 2, is amended to read:
(a) Except for those
trades or businesses required to use a different formula under subdivision 3 or section
290.36, and for those trades or businesses that receive permission to use some other
method under section 290.20 or under subdivision 4, a trade or business required to
apportion its net income must apportion its income to this state on the basis of the
percentage obtained by taking the sum of:
(1) the percent for the sales factor under paragraph (b) of the percentage which
the sales made within this state in connection with the trade or business during the tax
period are of the total sales wherever made in connection with the trade or business during
the tax period;
(2) the percent for the property factor under paragraph (b) of the percentage which
the total tangible property used by the taxpayer in this state in connection with the trade or
business during the tax period is of the total tangible property, wherever located, used by
the taxpayer in connection with the trade or business during the tax period; and
(3) the percent for the payroll factor under paragraph (b) of the percentage which
the taxpayer's total payrolls paid or incurred in this state or paid in respect to labor
performed in this state in connection with the trade or business during the tax period are
of the taxpayer's total payrolls paid or incurred in connection with the trade or business
during the tax period.
(b) For purposes of paragraph (a) and subdivision 3, the following percentages apply
for the taxable years specified:
Taxable years beginning during calendar year |
Sales factor percent |
Property factor percent |
Payroll factor percent |
|||
2007 |
78 |
11 |
11 |
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2008 |
deleted text begin
81
deleted text end
new text begin
85 new text end |
deleted text begin
9.5
deleted text end
new text begin
7.5 new text end |
deleted text begin
9.5
deleted text end
new text begin
7.5 new text end |
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2009 |
deleted text begin
84
deleted text end
new text begin
90 new text end |
deleted text begin
8
deleted text end
new text begin
5 new text end |
deleted text begin
8
deleted text end
new text begin
5 new text end |
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2010 |
deleted text begin
87
deleted text end
new text begin
95 new text end |
deleted text begin
6.5
deleted text end
new text begin
2.5 new text end |
deleted text begin
6.5
deleted text end
new text begin
2.5 new text end |
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2011 |
deleted text begin
90 deleted text end |
deleted text begin
5 deleted text end |
deleted text begin
5 deleted text end |
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deleted text begin
2012 deleted text end |
deleted text begin
93 deleted text end |
deleted text begin
3.5 deleted text end |
deleted text begin
3.5 deleted text end |
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deleted text begin
2013 deleted text end |
deleted text begin
96 deleted text end |
deleted text begin
2 deleted text end |
deleted text begin
2 deleted text end |
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deleted text begin 2014deleted text end and later calendar years |
100 |
0 |
0 |
new text begin
This act is effective for tax years beginning after December 31, 2006.
new text end