SF 2227

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; requiring a report by the
Department of Revenue; creating a credit for
contributions to the Explore Minnesota Tourism
additional source fund; appropriating money; proposing
coding for new law in Minnesota Statutes, chapter 290.

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

Section 1.

[290.0676] EXPLORE MINNESOTA TOURISM TAX
CREDIT.

Subdivision 1.

Credit name.

The credit allowed by this
section shall be known as the "Explore Minnesota Tourism tax
credit."

Subd. 2.

Explore minnesota tourism additional source
fund.

(a) The Explore Minnesota Tourism additional source fund
is created as a special account for contributions received under
this section. For the purposes of this section, "additional
source fund" means the Explore Minnesota Tourism additional
source fund.

(b) Contributions made to Explore Minnesota Tourism under
this section shall be:

(1) deposited in the additional source fund;

(2) kept separate from funds received through
appropriations from the state; and

(3) used as a supplement to and not a replacement for funds
received through appropriations from the state.

(c) Funds in the additional source fund are annually
appropriated to the director of Explore Minnesota Tourism for
the purposes of chapter 116U.

(d) Money from the additional source fund not expended at
the end of each fiscal year, including interest earned on the
investment of deposit of money in the additional source fund,
does not cancel and is available until expended.

Subd. 3.

Credit allowed.

For taxable years beginning
after December 31, 2004, a taxpayer is allowed a credit against
the tax imposed by this chapter in an amount equal to 100
percent of the taxpayer's total contributions made to the
Explore Minnesota Tourism additional source fund. To claim the
credit, the taxpayer must obtain a tax credit certificate as
provided in subdivision 4.

Subd. 4.

Tax credit certificate.

(a) In order to obtain
a tax credit certificate for contributions to the additional
source fund, prior to making the contribution, the taxpayer must
submit a request with Explore Minnesota Tourism by providing:

(1) the name of the taxpayer making the contribution;

(2) the amount of the contribution the taxpayer intends to
make; and

(3) any other information deemed necessary by the director
of Explore Minnesota Tourism.

(b) For each current state fiscal year, Explore Minnesota
Tourism shall review each request by a taxpayer for an income
tax credit certificate and determine the taxpayer's
eligibility. Explore Minnesota Tourism shall notify each
taxpayer that intends to make a contribution to the additional
source fund and claim a tax credit for the contribution under
this section whether the taxpayer is eligible to claim a tax
credit before the taxpayer makes the contribution.

(c) A taxpayer is eligible to receive a tax credit
certificate for contributions made to the additional source fund
until a total of $10,000,000 in contributions has been
contributed in that fiscal year. Once a total of $10,000,000
has been contributed to the additional source fund for that
year, no further contributions by taxpayers are eligible for a
tax credit certificate.

(d) Explore Minnesota Tourism shall issue a tax credit
certificate to every taxpayer that is eligible to claim an
income tax credit pursuant to this section after the taxpayer
makes a contribution to the additional source fund. The total
amount of tax credit certificates issued shall not exceed
$10,000,000 in any state fiscal year.

(e) Explore Minnesota Tourism may continue to accept
contributions after $10,000,000 in tax credit certificates have
been issued if Explore Minnesota Tourism notifies the
contributors in writing that the contributions made are not
eligible for tax credits under this section.

Subd. 5.

Claiming the credit.

To receive the Explore
Minnesota Tourism tax credit, the taxpayer must include the tax
credit certificate from Explore Minnesota Tourism with the
taxpayer's tax return form on which the taxpayer claims the
credit under this section. If the taxpayer files an electronic
tax return, the taxpayer must provide the tax credit certificate
to the Department of Revenue. The Department of Revenue shall
not allow a tax credit claimed pursuant to this section unless
the taxpayer submits a tax credit certificate from Explore
Minnesota Tourism to the Department of Revenue.

Subd. 6.

Limitations; carryover.

If the amount of the
credit allowed under this section exceeds the taxpayer's actual
tax liability under this chapter in the tax year for which the
credit is claimed, the amount of the credit that exceeds the tax
liability shall not be refunded. The amount of the credit that
exceeds tax liability may be carried forward as a credit
carryover against subsequent years' tax liability under this
chapter for a period not to exceed three years. The entire
amount of the excess credit for the taxable year must be carried
first to the earliest of the taxable years to which the amount
may be carried, and then to each successive year. Any amount of
the credit that is not used during that period shall not be
refundable to the taxpayer.

Subd. 7.

Monitoring.

Within 30 days of the end of each
quarter, the Department of Revenue shall provide Explore
Minnesota Tourism with a quarterly report of comparisons of
quarterly sales taxes collected under the Standard Industrial
Classification System, or equivalent codes in the North America
Industry Classification System, in the following areas:

(1) SIC 70, lodging;

(2) SIC 79, amusement and recreation; and

(3) SIC 58, eating and drinking.

Sec. 2. EFFECTIVE DATE.

Section 1 is effective for taxable years beginning after
December 31, 2004.