SF 2346

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

  1.1                          A bill for an act 
  1.2             relating to taxation; providing a sales tax rebate 
  1.3             payable in 2001; expanding eligibility for the 2000 
  1.4             sales tax rebate; appropriating money; amending Laws 
  1.5             2000, chapter 490, article 1, section 2. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [STATEMENT OF PURPOSE.] 
  1.8      (a) The state of Minnesota derives revenues from a variety 
  1.9   of taxes, fees, and other sources, including the state sales tax.
  1.10     (b) It is fair and reasonable to refund the existing state 
  1.11  budget surplus in the form of a rebate of nonbusiness consumer 
  1.12  sales taxes paid by individuals in calendar year 1999. 
  1.13     (c) Information concerning the amount of sales tax paid at 
  1.14  various income levels is contained in the Minnesota tax 
  1.15  incidence report, which is written by the commissioner of 
  1.16  revenue and presented to the legislature according to Minnesota 
  1.17  Statutes, section 270.0682. 
  1.18     (d) It is fair and reasonable to use information contained 
  1.19  in the Minnesota tax incidence report, updated to calendar year 
  1.20  1999, to determine the proportionate share of the sales tax 
  1.21  rebate due each eligible taxpayer since no effective or 
  1.22  practical mechanism exists for determining the amount of actual 
  1.23  sales tax paid by each eligible individual. 
  1.24     Sec. 2.  [SALES TAX REBATE.] 
  1.25     Subdivision 1.  [ELIGIBILITY; REBATE BASED ON INCOME.] An 
  2.1   individual who was a resident of Minnesota for any part of 1999, 
  2.2   and filed a 1999 Minnesota income tax return on or before 
  2.3   November 30, 2001, and had a tax liability before refundable 
  2.4   credits on that return of at least $1 and who was not allowed to 
  2.5   be claimed as a dependent on a 1999 federal income tax return 
  2.6   filed by another person is eligible for a sales tax rebate based 
  2.7   on income under either subdivision 2 or 3. 
  2.8      Subd. 2.  [MARRIED JOINT AND HEAD OF HOUSEHOLD FILERS.] The 
  2.9   sales tax rebate for taxpayers who qualify under subdivision 1 
  2.10  and are married filing joint or head of household filers is 
  2.11  computed according to the following schedule: 
  2.12       Income                                Sales Tax Rebate
  2.13   less than $2,500                                $242
  2.14   at least $2,500 but less than $5,000            $312
  2.15   at least $5,000 but less than $10,000           $333
  2.16   at least $10,000 but less than $15,000          $365
  2.17   at least $15,000 but less than $20,000          $396
  2.18   at least $20,000 but less than $25,000          $431
  2.19   at least $25,000 but less than $30,000          $449
  2.20   at least $30,000 but less than $35,000          $487
  2.21   at least $35,000 but less than $40,000          $533
  2.22   at least $40,000 but less than $45,000          $571
  2.23   at least $45,000 but less than $50,000          $601
  2.24   at least $50,000 but less than $60,000          $641
  2.25   at least $60,000 but less than $70,000          $686
  2.26   at least $70,000 but less than $80,000          $755
  2.27   at least $80,000 but less than $90,000          $810
  2.28   at least $90,000 but less than $100,000         $894
  2.29   at least $100,000 but less than $120,000        $968
  2.30   at least $120,000 but less than $140,000      $1,061
  2.31   at least $140,000 but less than $160,000      $1,147
  2.32   at least $160,000 but less than $180,000      $1,228
  2.33   at least $180,000 but less than $200,000      $1,304
  2.34   at least $200,000 but less than $400,000      $1,669
  2.35   at least $400,000 but less than $600,000      $2,195
  2.36   at least $600,000 but less than $800,000      $2,634
  3.1    at least $800,000 but less than $1,000,000    $3,020
  3.2    $1,000,000 and over                           $3,500
  3.3      Subd. 3.  [SINGLE AND MARRIED SEPARATE FILERS.] The sales 
  3.4   tax rebate for individuals who qualify under subdivision 1 as 
  3.5   single or married filing separately must be computed according 
  3.6   to the following schedule: 
  3.7        Income                                Sales Tax Rebate
  3.8    less than $2,500                               $138
  3.9    at least $2,500 but less than $5,000           $168
  3.10   at least $5,000 but less than $10,000          $197
  3.11   at least $10,000 but less than $15,000         $265
  3.12   at least $15,000 but less than $20,000         $303
  3.13   at least $20,000 but less than $25,000         $329
  3.14   at least $25,000 but less than $30,000         $343
  3.15   at least $30,000 but less than $40,000         $374
  3.16   at least $40,000 but less than $50,000         $419
  3.17   at least $50,000 but less than $70,000         $494
  3.18   at least $70,000 but less than $100,000        $627
  3.19   at least $100,000 but less than $140,000       $755
  3.20   at least $140,000 but less than $200,000       $912
  3.21   at least $200,000 but less than $400,000     $1,237
  3.22   at least $400,000 but less than $600,000     $1,627
  3.23   $600,000 and over                            $1,750
  3.24     Subd. 4.  [NONRESIDENTS.] Individuals who were not 
  3.25  residents of Minnesota for any part of 1999 and who paid more 
  3.26  than $10 in Minnesota sales tax under chapter 297A on 
  3.27  nonbusiness consumer purchases in that year qualify for a rebate 
  3.28  under this subdivision only.  Qualifying nonresidents must file 
  3.29  a claim for rebate on a form prescribed by the commissioner by 
  3.30  November 30, 2001.  The claim must include receipts showing the 
  3.31  Minnesota sales tax paid and the date of the sale.  Taxes paid 
  3.32  on purchases allowed in the computation of federal taxable 
  3.33  income or reimbursed by an employer are not eligible for the 
  3.34  rebate.  The commissioner shall determine the qualifying taxes 
  3.35  paid and rebate the lesser of: 
  3.36     (1) 42.85 percent of that amount; or 
  4.1      (2) the maximum amount for which the claimant would have 
  4.2   been eligible as determined under subdivision 2 if the taxpayer 
  4.3   filed the 1999 federal income tax return as a married taxpayer 
  4.4   filing jointly or head of household, or as determined under 
  4.5   subdivision 3 for other taxpayers. 
  4.6      Subd. 5.  [DEFINITION OF INCOME.] "Income," for purposes of 
  4.7   this section other than subdivision 4, is taxable income as 
  4.8   defined in section 63 of the Internal Revenue Code of 1986, as 
  4.9   amended through December 31, 1998, plus the sum of any additions 
  4.10  to federal taxable income for the taxpayer under Minnesota 
  4.11  Statutes, section 290.01, subdivision 19a, and reported on the 
  4.12  original 1999 income tax return, including subsequent 
  4.13  adjustments to that return made within the time limits specified 
  4.14  in subdivision 13.  For an individual who was a resident of 
  4.15  Minnesota for less than the entire year, the sales tax rebate 
  4.16  equals the sales tax rebate calculated under subdivision 2 or 3 
  4.17  multiplied by the percentage determined pursuant to Minnesota 
  4.18  Statutes, section 290.06, subdivision 2c, paragraph (e), as 
  4.19  calculated on the original 1999 income tax return, including 
  4.20  subsequent adjustments to that return made within the time 
  4.21  limits specified in subdivision 13.  For purposes of subdivision 
  4.22  4, "income" is taxable income as defined in section 63 of the 
  4.23  Internal Revenue Code of 1986, as amended through December 31, 
  4.24  1998, and reported on the taxpayer's original federal tax return 
  4.25  for the first taxable year beginning after December 31, 1998. 
  4.26     Subd. 6.  [SOCIAL SECURITY AND PUBLIC PENSION 
  4.27  RECIPIENTS.] (a) An individual qualifies for a rebate of $138 
  4.28  under this subdivision if the individual: 
  4.29     (1) was a resident of Minnesota for all of calendar year 
  4.30  2000; 
  4.31     (2) is not eligible for a rebate under subdivision 7; 
  4.32     (3) attained the age of 18 on or before December 31, 1999; 
  4.33  and 
  4.34     (4)(i) received social security benefits as defined in 
  4.35  section 86(d)(1) of the Internal Revenue Code of 1986, as 
  4.36  amended through December 31, 2000, in calendar year 1999; or 
  5.1      (ii) received federal, state, or local public pension or 
  5.2   disability benefits in calendar year 1999 and the commissioner 
  5.3   is able to obtain reliable information from the appropriate 
  5.4   public pension plan administrator within a reasonable period of 
  5.5   time to permit paying the rebate. 
  5.6      (b) An individual or married couple who qualifies for a 
  5.7   rebate under both this subdivision and subdivision 1 is eligible 
  5.8   for the rebate under whichever subdivision provides a larger 
  5.9   amount. 
  5.10     (c) If the Social Security Administration, Railroad 
  5.11  Retirement Board, or a public pension plan administrator is 
  5.12  paying benefits to a recipient by electronic funds transfers in 
  5.13  calendar year 2001, the commissioner may pay the rebate under 
  5.14  this subdivision through electronic funds transfer to the same 
  5.15  financial institution and into the same account into which those 
  5.16  benefits are transferred in calendar year 2001. 
  5.17     (d) For purposes of this subdivision, "public pension plan 
  5.18  administrator" means (1) a state and local public pension 
  5.19  administrator, (2) the federal Civil Service Retirement System, 
  5.20  (3) the United States Department of Defense for the military 
  5.21  retirement and survivors benefit programs, (4) the United States 
  5.22  Veterans Administration, and (5) the Federal Employees 
  5.23  Retirement System. 
  5.24     (e) A state and local public pension administrator is an 
  5.25  entity paying benefits under a pension plan enumerated in 
  5.26  Minnesota Statutes, section 356.20, subdivision 2.  Each state 
  5.27  and local pension administrator shall provide to the 
  5.28  commissioner of revenue, in a form the commissioner prescribes, 
  5.29  a list of individuals to which it pays benefits who meet the 
  5.30  requirements of paragraph (a), clauses (1) and (3). 
  5.31     Subd. 7.  [DEPENDENTS.] An individual who: 
  5.32     (1) was allowed to be claimed as a dependent on a 1999 
  5.33  federal income tax return filed by another person; 
  5.34     (2) would have otherwise been eligible for a rebate under 
  5.35  subdivision 1; and 
  5.36     (3) reported earned income as defined in section 
  6.1   32(c)(2)(A)(i) of the Internal Revenue Code, 
  6.2   is eligible for a rebate under this subdivision only.  The 
  6.3   rebate under this subdivision equals 35 percent of the amount 
  6.4   allowed under the schedule in subdivision 3 based on the 
  6.5   individual's income.  For an individual who was a resident of 
  6.6   Minnesota for less than the entire year, the sales tax rebate 
  6.7   equals the rebate calculated under this subdivision multiplied 
  6.8   by the percentage determined pursuant to Minnesota Statutes, 
  6.9   section 290.06, subdivision 2c, paragraph (e), as calculated on 
  6.10  the original 1999 income tax return. 
  6.11     Subd. 8.  [CREDIT RECIPIENTS.] An individual who 
  6.12     (1) was a resident of Minnesota for any part of 1999; 
  6.13     (2) was not eligible for a rebate under subdivision 1, 6, 
  6.14  or 7; 
  6.15     (3) was not allowed to be claimed as a dependent on a 1999 
  6.16  federal income tax return by another person; and 
  6.17     (4)(i) claimed a refund under Minnesota Statutes, chapter 
  6.18  290A, for property taxes paid in 2000 or rent constituting 
  6.19  property taxes paid in 1999; or 
  6.20     (ii) filed a 1999 Minnesota income tax return before 
  6.21  November 30, 2001, in order to 
  6.22     (A) claim a credit under Minnesota Statutes, section 
  6.23  290.067, 290.0671, or 290.0674; 
  6.24     (B) claim a refund of withheld taxes; or 
  6.25     (C) claim a refund of estimated taxes, 
  6.26  is eligible for a rebate under this subdivision only.  For 
  6.27  married couples filing joint returns and heads of households, 
  6.28  the rebate equals the minimum amount in subdivision 2.  For 
  6.29  single filers and married individuals filing separate returns 
  6.30  and for rebates based on refunds under Minnesota Statutes, 
  6.31  chapter 290A, the rebate equals the minimum amount in 
  6.32  subdivision 3.  For an individual who was a resident of 
  6.33  Minnesota for less than the entire year, the sales tax rebate 
  6.34  equals the rebate calculated under this subdivision multiplied 
  6.35  by the percentage determined under Minnesota Statutes, section 
  6.36  290.06, subdivision 2c, paragraph (e), as calculated on the 
  7.1   original 1999 income tax return. 
  7.2      Subd. 9.  [OTHER CLAIMANTS.] An individual who 
  7.3      (i) was a resident of Minnesota for all of 1999; 
  7.4      (ii) was not allowed to be claimed as a dependent on a 1999 
  7.5   federal income tax return filed by another person; 
  7.6      (iii) attained the age of 18 on or before December 31, 
  7.7   1999; and 
  7.8      (iv) was not eligible for a rebate under subdivision 1, 6, 
  7.9   7, or 8; 
  7.10  qualifies for a rebate under this subdivision only.  Qualifying 
  7.11  individuals must file a claim for a rebate on a form prescribed 
  7.12  by the commissioner by November 30, 2001.  The claim must 
  7.13  include proof of Minnesota residency and income tax filing 
  7.14  status.  The commissioner shall verify the information provided 
  7.15  and rebate the minimum amount allowed under subdivision 2 if the 
  7.16  claimant would have met the requirements to file a 1999 federal 
  7.17  income tax return as a married taxpayer filing jointly or head 
  7.18  of household, or the minimum amount allowed under subdivision 3 
  7.19  for all other claimants. 
  7.20     Subd. 10.  [FISCAL YEAR TAXPAYERS.] For a fiscal year 
  7.21  taxpayer, the dates in subdivisions 1 to 4 are extended one 
  7.22  month for each month in calendar year 1999 that occurred prior 
  7.23  to the start of the individual's 1999 fiscal tax year. 
  7.24     Subd. 11.  [PAYMENT TO STATE.] (a) A taxpayer receiving a 
  7.25  rebate under this section may endorse and return the rebate 
  7.26  check to the state and designate that the returned rebate be 
  7.27  deposited in one or more of the following accounts for use only 
  7.28  for the purposes designated in this subdivision: 
  7.29     (1) an account for the basic sliding fee child care program 
  7.30  for child care assistance to families administered by the 
  7.31  commissioner of children, families, and learning under Minnesota 
  7.32  Statutes, section 119B.03; 
  7.33     (2) an account for kindergarten through grade 12 education 
  7.34  purposes, such as reducing instructor-to-student ratios and 
  7.35  paying increased heating fuel costs for school facilities, to be 
  7.36  administered by the commissioner of children, families, and 
  8.1   learning; 
  8.2      (3) the affordable rental investment fund to be used by the 
  8.3   housing finance agency for family rental housing assistance 
  8.4   under Minnesota Statutes, section 462A.21, subdivision 8b; 
  8.5      (4) the contaminated site cleanup and development account 
  8.6   to be used by the commissioner of trade and economic development 
  8.7   for contamination cleanup development grants under Minnesota 
  8.8   Statutes, sections 116J.551 to 116J.556; 
  8.9      (5) an account to provide funding for public transit and 
  8.10  highway improvement projects to reduce congestion to be 
  8.11  administered by the commissioner of transportation; 
  8.12     (6) an account to increase funding for the University of 
  8.13  Minnesota and the Minnesota state colleges and universities 
  8.14  under Minnesota Statutes, section 136F.01, as appropriated by 
  8.15  law; and 
  8.16     (7) an account to provide a fund for reimbursement of 
  8.17  nursing homes, licensed under chapter 144A, for increased 
  8.18  heating fuel costs to be administered by the commissioner of 
  8.19  human services. 
  8.20     (b) The rebate check must be accompanied by a notice 
  8.21  prepared by the commissioner of revenue that explains the 
  8.22  taxpayer's option to endorse the check to the state, and 
  8.23  explains the uses of the funds that the taxpayer may designate.  
  8.24  In preparing the notice, the commissioner of revenue shall 
  8.25  consult with the commissioners or agencies that administer the 
  8.26  funds or accounts.  The notice must also explain that a taxpayer 
  8.27  may cash the rebate check and mail a contribution of any amount 
  8.28  to the state and that the contribution must be used for the 
  8.29  option or options under paragraph (a) as designated by the 
  8.30  taxpayer.  The notice must contain in bold print the address to 
  8.31  which the endorsed check or a state contribution may be mailed. 
  8.32     (c) Funds endorsed and mailed to the state and 
  8.33  contributions mailed to the state under this subdivision must be 
  8.34  deposited by the commissioner of finance in the fund or account 
  8.35  designated, and are appropriated to the agency or commissioner 
  8.36  designated by the taxpayer or contributor for use as provided in 
  9.1   this section.  Funds appropriated under this paragraph are 
  9.2   available until expended. 
  9.3      (d) Funds appropriated under this subdivision are in 
  9.4   addition to any funds appropriated for the purposes given in 
  9.5   this subdivision and may not be used for any other purposes 
  9.6   including the reduction of any other appropriations.  Funds 
  9.7   appropriated to a commissioner or agency under this subdivision 
  9.8   are not included in the department's or agency's budget base. 
  9.9      Subd. 12.  [PAYMENT DATES; INTEREST.] The commissioner of 
  9.10  revenue shall begin paying sales tax rebates by August 15, 2001. 
  9.11  Sales tax rebates not paid by January 1, 2002, bear interest at 
  9.12  the rate specified in Minnesota Statutes, section 270.75. 
  9.13     Subd. 13.  [NO ADJUSTMENTS AFTER PROCESSING.] A sales tax 
  9.14  rebate may not be adjusted based on changes to a 1999 income tax 
  9.15  return that are made by order of assessment after the date the 
  9.16  rebate is processed, or made by the taxpayer that are filed with 
  9.17  the commissioner of revenue after that date. 
  9.18     Subd. 14.  [JOINT REBATE RULES.] Individuals who filed a 
  9.19  joint income tax return for 1999 must receive a joint sales tax 
  9.20  rebate.  After the sales tax rebate has been issued, but before 
  9.21  the check has been cashed, either joint claimant may request a 
  9.22  separate check for one-half of the joint sales tax rebate.  
  9.23  Notwithstanding anything in this section to the contrary, if 
  9.24  prior to payment, the commissioner has been notified that 
  9.25  persons who filed a joint 1999 income tax return are living at 
  9.26  separate addresses, as indicated on their 2000 income tax return 
  9.27  or otherwise, the commissioner may issue separate checks to each 
  9.28  person.  The amount payable to each person is one-half of the 
  9.29  total joint rebate. 
  9.30     Subd. 15.  [DECEASED INDIVIDUALS.] If a rebate is received 
  9.31  by the estate of a deceased individual after the probate estate 
  9.32  has been closed, and if the original rebate check is returned to 
  9.33  the commissioner with a copy of the decree of descent or final 
  9.34  account of the estate, social security numbers, and addresses of 
  9.35  the beneficiaries, the commissioner may issue separate checks in 
  9.36  proportion to their share in the residuary estate in the names 
 10.1   of the residuary beneficiaries of the estate. 
 10.2      Subd. 16.  [APPLICATION OF OTHER LAW.] (a) The sales tax 
 10.3   rebate is a "Minnesota tax law" for purposes of Minnesota 
 10.4   Statutes, section 270B.01, subdivision 8. 
 10.5      (b) The sales tax rebate is an "overpayment of any tax 
 10.6   collected by the commissioner" for purposes of Minnesota 
 10.7   Statutes, section 270.07, subdivision 5.  For purposes of this 
 10.8   subdivision, a joint sales tax rebate is payable to each spouse 
 10.9   equally. 
 10.10     (c) The sales tax rebate is a refund subject to revenue 
 10.11  recapture under Minnesota Statutes, chapter 270A.  The 
 10.12  commissioner of revenue shall remit the entire refund to the 
 10.13  claimant agency, which shall, upon the request of the spouse who 
 10.14  does not owe the debt, refund one-half of the joint sales tax 
 10.15  rebate to the spouse who does not owe the debt. 
 10.16     Subd. 17.  [LAPSE OF ENTITLEMENT.] If the commissioner of 
 10.17  revenue cannot locate an individual entitled to a sales tax 
 10.18  rebate by July 1, 2003, or if an individual to whom a sales tax 
 10.19  rebate was issued has not cashed the check by July 1, 2003, the 
 10.20  right to the sales tax rebate lapses and the check must be 
 10.21  deposited in the general fund. 
 10.22     Subd. 18.  [CLAIMS FOR UNPAID REBATES.] Individuals 
 10.23  entitled to a sales tax rebate pursuant to subdivision 1, 6, 7, 
 10.24  8, or 9 but who did not receive one, and individuals who receive 
 10.25  a sales tax rebate that was not correctly computed, must file a 
 10.26  claim with the commissioner before July 1, 2002, in a form 
 10.27  prescribed by the commissioner.  These claims must be treated as 
 10.28  if they are a claim for refund under Minnesota Statutes, section 
 10.29  289A.50, subdivisions 4 and 7. 
 10.30     Subd. 19.  [APPROPRIATION.] The rebate is a reduction of 
 10.31  fiscal year 2001 sales tax revenues.  The amount necessary to 
 10.32  make the sales tax rebates and interest provided in this section 
 10.33  is appropriated from the general fund to the commissioner of 
 10.34  revenue in fiscal year 2001 and is available until June 30, 2003.
 10.35     Subd. 20.  [ILLEGALLY CASHED CHECKS.] If a sales tax rebate 
 10.36  check is cashed by someone other than the payee or payees of the 
 11.1   check, and the commissioner of revenue determines that the check 
 11.2   has been forged or improperly endorsed or the commissioner 
 11.3   determines that a rebate was overstated or erroneously issued, 
 11.4   the commissioner may issue an order of assessment for the amount 
 11.5   of the check or the amount the check is overstated against the 
 11.6   person or persons cashing it.  The assessment must be made 
 11.7   within two years after the check is cashed, but if cashing the 
 11.8   check constitutes theft under Minnesota Statutes, section 
 11.9   609.52, or forgery under Minnesota Statutes, section 609.631, 
 11.10  the assessment can be made at any time.  The assessment may be 
 11.11  appealed administratively and judicially.  The commissioner may 
 11.12  take action to collect the assessment in the same manner as 
 11.13  provided by Minnesota Statutes, chapter 289A, for any other 
 11.14  order of the commissioner assessing tax. 
 11.15     Subd. 21.  [AUTHORITY TO CONTRACT WITH VENDOR.] 
 11.16  Notwithstanding Minnesota Statutes, sections 9.031, 16A.40, 
 11.17  16B.49, 16B.50, and any other law to the contrary, the 
 11.18  commissioner of revenue may take whatever actions the 
 11.19  commissioner deems necessary to pay the rebates required by this 
 11.20  section, and may, in consultation with the commissioner of 
 11.21  finance and the state treasurer, contract with a private vendor 
 11.22  or vendors to process, print, and mail the rebate checks or 
 11.23  warrants required under this section and receive and disburse 
 11.24  state funds to pay those checks or warrants. 
 11.25     Subd. 22.  [ELECTRONIC PAYMENT.] The commissioner may pay 
 11.26  rebates required by this section by electronic funds transfer to 
 11.27  individuals who requested that their 2000 individual income tax 
 11.28  refund be paid through electronic funds transfer.  The 
 11.29  commissioner may make the electronic funds transfer payments to 
 11.30  the same financial institution and into the same account as the 
 11.31  2000 individual income tax refund. 
 11.32     Subd. 23.  [ADJUSTMENTS.] Before payment, the commissioner 
 11.33  of revenue shall adjust the rebate as follows: 
 11.34     the rebates calculated in subdivisions 2, 3, 4, 6, 7, 8, 
 11.35  and 9 must be proportionately reduced to account for (i) rebates 
 11.36  under subdivisions 7, 8, and 9, and (ii) 1999 income tax returns 
 12.1   that are filed on or after January 1, 2001, but before April 1, 
 12.2   2001, so that the estimated amount of sales tax rebates payable 
 12.3   under subdivisions 2, 3, 4, 6, 7, 8, and 9 on the date the 
 12.4   rebate is processed does not exceed the amount of the ending 
 12.5   unobligated general fund balance for the fiscal year 2000-2001 
 12.6   biennium, as estimated in the February 2001 forecast prepared by 
 12.7   the commissioner of finance.  The adjustment under this 
 12.8   subdivision is not a rule subject to Minnesota Statutes, chapter 
 12.9   14. 
 12.10     Sec. 3.  Laws 2000, chapter 490, article 1, section 2, is 
 12.11  amended to read: 
 12.12     Sec. 2.  [SALES TAX REBATE.] 
 12.13     (a) An individual who: 
 12.14     (1) was eligible for a credit under Laws 1998, chapter 389, 
 12.15  article 1, section 1, and who filed for or received that credit 
 12.16  on or before November 30, 2000; or 
 12.17     (2) was a resident of Minnesota for any part of 1998, and 
 12.18  filed a 1998 Minnesota income tax return on or before November 
 12.19  30, 2000, and had a tax liability before refundable credits on 
 12.20  that return of at least $1 but did not file the claim for credit 
 12.21  authorized under Laws 1998, chapter 389, article 1, section 1, 
 12.22  as amended, and who was not allowed to be claimed as a dependent 
 12.23  on a 1998 federal income tax return filed by another person; or 
 12.24     (3) had the property taxes payable on his or her homestead 
 12.25  abated to zero under Laws 1998, chapter 383, section 20, shall 
 12.26  receive a sales tax rebate. 
 12.27     (b) The sales tax rebate for taxpayers who qualify under 
 12.28  paragraph (a) as married filing joint or head of household must 
 12.29  be computed according to the following schedule: 
 12.30       Income                                Sales Tax Rebate
 12.31   less than $2,500                                $168
 12.32   at least $2,500 but less than $5,000            $217
 12.33   at least $5,000 but less than $10,000           $231
 12.34   at least $10,000 but less than $15,000          $253
 12.35   at least $15,000 but less than $20,000          $275
 12.36   at least $20,000 but less than $25,000          $299
 13.1    at least $25,000 but less than $30,000          $312
 13.2    at least $30,000 but less than $35,000          $338
 13.3    at least $35,000 but less than $40,000          $369
 13.4    at least $40,000 but less than $45,000          $396
 13.5    at least $45,000 but less than $50,000          $417
 13.6    at least $50,000 but less than $60,000          $444
 13.7    at least $60,000 but less than $70,000          $476
 13.8    at least $70,000 but less than $80,000          $523
 13.9    at least $80,000 but less than $90,000          $562
 13.10   at least $90,000 but less than $100,000         $620
 13.11   at least $100,000 but less than $120,000        $671
 13.12   at least $120,000 but less than $140,000        $735
 13.13   at least $140,000 but less than $160,000        $795
 13.14   at least $160,000 but less than $180,000        $851
 13.15   at least $180,000 but less than $200,000        $904
 13.16   at least $200,000 but less than $400,000      $1,157
 13.17   at least $400,000 but less than $600,000      $1,522
 13.18   at least $600,000 but less than $800,000      $1,826
 13.19   at least $800,000 but less than $1,000,000    $2,093
 13.20   $1,000,000 and over                           $2,400
 13.21     (c) The sales tax rebate for individuals who qualify under 
 13.22  paragraph (a) as single or married filing separately must be 
 13.23  computed according to the following schedule: 
 13.24   Income                                    Sales Tax Rebate
 13.25   less than $2,500                                $95
 13.26   at least $2,500 but less than $5,000           $116
 13.27   at least $5,000 but less than $10,000          $137
 13.28   at least $10,000 but less than $15,000         $184
 13.29   at least $15,000 but less than $20,000         $210
 13.30   at least $20,000 but less than $25,000         $228
 13.31   at least $25,000 but less than $30,000         $238
 13.32   at least $30,000 but less than $40,000         $259
 13.33   at least $40,000 but less than $50,000         $290
 13.34   at least $50,000 but less than $70,000         $342
 13.35   at least $70,000 but less than $100,000        $435
 13.36   at least $100,000 but less than $140,000       $524
 14.1    at least $140,000 but less than $200,000       $632
 14.2    at least $200,000 but less than $400,000       $857
 14.3    at least $400,000 but less than $600,000     $1,128
 14.4    $600,000 and over                            $1,200
 14.5      (d) Individuals who were not residents of Minnesota for any 
 14.6   part of 1998 and who paid more than $10 in Minnesota sales tax 
 14.7   on nonbusiness consumer purchases in that year qualify for a 
 14.8   rebate under this paragraph only.  Qualifying nonresidents must 
 14.9   file a claim for rebate on a form prescribed by the commissioner 
 14.10  by November 30, 2000.  The claim must include receipts showing 
 14.11  the Minnesota sales tax paid and the date of the sale.  Taxes 
 14.12  paid on purchases allowed in the computation of federal taxable 
 14.13  income or reimbursed by an employer are not eligible for the 
 14.14  rebate.  The commissioner shall determine the qualifying taxes 
 14.15  paid and rebate the lesser of: 
 14.16     (1) 29.7 percent of that amount; or 
 14.17     (2) the maximum amount for which the claimant would have 
 14.18  been eligible as determined under paragraph (b) if the taxpayer 
 14.19  filed the 1998 federal income tax return as a married taxpayer 
 14.20  filing jointly or head of household, or as determined under 
 14.21  paragraph (c) for other taxpayers. 
 14.22     (e) "Income," for purposes of this section other than 
 14.23  paragraph (d), is taxable income as defined in section 63 of the 
 14.24  Internal Revenue Code of 1986, as amended through December 31, 
 14.25  1997, plus the sum of any additions to federal taxable income 
 14.26  for the taxpayer under Minnesota Statutes, section 290.01, 
 14.27  subdivision 19a, and reported on the original 1998 income tax 
 14.28  return, including subsequent adjustments to that return made 
 14.29  within the time limits specified in paragraph (l).  For an 
 14.30  individual who was a resident of Minnesota for less than the 
 14.31  entire year, the sales tax rebate equals the sales tax rebate 
 14.32  calculated under paragraph (b) or (c) multiplied by the 
 14.33  percentage determined pursuant to Minnesota Statutes, section 
 14.34  290.06, subdivision 2c, paragraph (e), as calculated on the 
 14.35  original 1998 income tax return, including subsequent 
 14.36  adjustments to that return made within the time limits specified 
 15.1   in paragraph (l).  For purposes of paragraph (d), "income" is 
 15.2   taxable income as defined in section 63 of the Internal Revenue 
 15.3   Code of 1986, as amended through December 31, 1997, and reported 
 15.4   on the taxpayer's original federal tax return for the first 
 15.5   taxable year beginning after December 31, 1997. 
 15.6      (f) Individuals who were residents of Minnesota for all of 
 15.7   1998, were not eligible for a rebate under paragraph (a), 
 15.8   attained the age of 18 on or before December 31, 1998, and 
 15.9   received in 1998 social security benefits as defined in section 
 15.10  86(d)(1) of the Internal Revenue Code of 1986, as amended 
 15.11  through December 31, 1999, are entitled to a rebate of $95.  If 
 15.12  the Social Security Administration or Railroad Retirement Board 
 15.13  is paying benefits to a recipient by electronic funds transfers 
 15.14  in 2000, the rebate under this paragraph must be paid by the 
 15.15  commissioner through electronic funds transfer to the same 
 15.16  financial institution and into the same account into which the 
 15.17  Social Security Administration or Railroad Retirement Board 
 15.18  transfers social security benefits in calendar year 2000. 
 15.19     (g) An individual who: 
 15.20     (1) was allowed to be claimed as a dependent on a 1998 
 15.21  federal income tax return filed by another person; 
 15.22     (2) would have otherwise been eligible for a rebate under 
 15.23  clause (a)(2); and 
 15.24     (3) reported earned income as defined in section 
 15.25  32(c)(2)(A)(i) of the Internal Revenue Code, 
 15.26     is eligible for a rebate under this paragraph only.  The 
 15.27  rebate under this paragraph equals 35 percent of the amount 
 15.28  allowed under the schedule in paragraph (c) based on the 
 15.29  individual's income.  For an individual who was a resident of 
 15.30  Minnesota for less than the entire year, the sales tax rebate 
 15.31  equals the rebate calculated under this paragraph multiplied by 
 15.32  the percentage determined pursuant to Minnesota Statutes, 
 15.33  section 290.06, subdivision 2c, paragraph (e), as calculated on 
 15.34  the original 1998 income tax return. 
 15.35     (h) An individual who 
 15.36     (1) was a resident of Minnesota for any part of 1998; 
 16.1      (2) was not eligible for a rebate under paragraph (a) or 
 16.2   (f); 
 16.3      (3) was not allowed to be claimed as a dependent on a 1998 
 16.4   federal income tax return by another person; and 
 16.5      (4) filed a 1998 Minnesota income tax return before 
 16.6   November 30, 2000, in order to 
 16.7      (i) claim a credit under section 290.067, 290.0671, or 
 16.8   290.0674; 
 16.9      (ii) claim a refund of withheld taxes; or 
 16.10     (iii) claim a refund of estimated taxes, 
 16.11  is eligible for a rebate under this paragraph only.  For married 
 16.12  couples filing joint returns and heads of households, the rebate 
 16.13  equals the minimum amount in paragraph (b).  For single filers 
 16.14  and married individuals filing separate returns, the rebate 
 16.15  equals the minimum amount in paragraph (c).  For an individual 
 16.16  who was a resident of Minnesota for less than the entire year, 
 16.17  the sales tax rebate equals the rebate calculated under this 
 16.18  paragraph multiplied by the percentage determined pursuant to 
 16.19  Minnesota Statutes, section 290.06, subdivision 2c, paragraph 
 16.20  (e), as calculated on the original 1998 income tax return. 
 16.21     (i) For a fiscal year taxpayer, the dates in paragraphs (a) 
 16.22  through (d) are extended one month for each month in calendar 
 16.23  year 1998 that occurred prior to the start of the individual's 
 16.24  1998 fiscal tax year. 
 16.25     (j) Before payment, the commissioner of revenue shall 
 16.26  adjust the rebate as follows: 
 16.27     the rebates calculated in paragraphs (b), (c), (d), (f), 
 16.28  (g), and (h) must be proportionately reduced to account for (i) 
 16.29  rebates under paragraphs (g) and (h), and (ii) 1998 income tax 
 16.30  returns that are filed on or after January 1, 2000, but before 
 16.31  June 1, 2000, so that the estimated amount of sales tax rebates 
 16.32  payable under paragraphs (b), (c), (d), (f), (g), and (h) on the 
 16.33  date the rebate is processed does not exceed $635,600,000.  The 
 16.34  adjustment under this paragraph is not a rule subject to 
 16.35  Minnesota Statutes, chapter 14. 
 16.36     (k) The commissioner of revenue may begin making sales tax 
 17.1   rebates by July 1, 2000.  Sales tax rebates not paid by January 
 17.2   1, 2001, bear interest at the rate specified in Minnesota 
 17.3   Statutes, section 270.75.  Sales tax rebates paid to individuals 
 17.4   qualifying under paragraph (x) bear interest at the rate 
 17.5   specified in Minnesota Statutes, section 270.75, beginning April 
 17.6   1, 2002. 
 17.7      (l) A sales tax rebate shall not be adjusted based on 
 17.8   changes to a 1998 income tax return that are made by order of 
 17.9   assessment after the date the rebate is processed, or made by 
 17.10  the taxpayer that are filed with the commissioner of revenue 
 17.11  after that date. 
 17.12     (m) Individuals who filed a joint income tax return for 
 17.13  1998 shall receive a joint sales tax rebate.  After the sales 
 17.14  tax rebate has been issued, but before the check has been 
 17.15  cashed, either joint claimant may request a separate check for 
 17.16  one-half of the joint sales tax rebate.  Notwithstanding 
 17.17  anything in this section to the contrary, if prior to payment, 
 17.18  the commissioner has been notified that persons who filed a 
 17.19  joint 1998 income tax return are living at separate addresses, 
 17.20  as indicated on their 1999 income tax return or otherwise, the 
 17.21  commissioner may issue separate checks to each person.  The 
 17.22  amount payable to each person is one-half of the total joint 
 17.23  rebate. 
 17.24     (n) If a rebate is received by the estate of a deceased 
 17.25  individual after the probate estate has been closed, and if the 
 17.26  original rebate check is returned to the commissioner with a 
 17.27  copy of the decree of descent or final account of the estate, 
 17.28  social security numbers, and addresses of the beneficiaries, the 
 17.29  commissioner may issue separate checks in proportion to their 
 17.30  share in the residuary estate in the names of the residuary 
 17.31  beneficiaries of the estate. 
 17.32     (o) The sales tax rebate is a "Minnesota tax law" for 
 17.33  purposes of Minnesota Statutes, section 270B.01, subdivision 8. 
 17.34     (p) The sales tax rebate is "an overpayment of any tax 
 17.35  collected by the commissioner" for purposes of Minnesota 
 17.36  Statutes, section 270.07, subdivision 5.  For purposes of this 
 18.1   paragraph, a joint sales tax rebate is payable to each spouse 
 18.2   equally. 
 18.3      (q) If the commissioner of revenue cannot locate an 
 18.4   individual entitled to a sales tax rebate by July 1, 2002, or if 
 18.5   an individual to whom a sales tax rebate was issued has not 
 18.6   cashed the check by July 1, 2002, the right to the sales tax 
 18.7   rebate lapses and the check must be deposited in the general 
 18.8   fund. 
 18.9      (r) Individuals entitled to a sales tax rebate pursuant to 
 18.10  paragraph (a), (f), (g), or (h) but who did not receive one, and 
 18.11  individuals who receive a sales tax rebate that was not 
 18.12  correctly computed, must file a claim with the commissioner 
 18.13  before July 1, 2001, in a form prescribed by the commissioner.  
 18.14  These claims must be treated as if they are a claim for refund 
 18.15  under Minnesota Statutes, section 289A.50, subdivisions 4 and 7. 
 18.16  Individuals who qualify for a rebate under paragraph (x), and 
 18.17  who do not receive it or who receive a sales tax rebate that was 
 18.18  not correctly computed, must file a claim with the commissioner 
 18.19  before July 1, 2002, in a form prescribed by the commissioner. 
 18.20     (s) The sales tax rebate is a refund subject to revenue 
 18.21  recapture under Minnesota Statutes, chapter 270A.  The 
 18.22  commissioner of revenue shall remit the entire refund to the 
 18.23  claimant agency, which shall, upon the request of the spouse who 
 18.24  does not owe the debt, refund one-half of the joint sales tax 
 18.25  rebate to the spouse who does not owe the debt. 
 18.26     (t) The rebate is a reduction of fiscal year 2000 sales tax 
 18.27  revenues.  The amount necessary to make the sales tax rebates 
 18.28  and interest provided in this section is appropriated from the 
 18.29  general fund to the commissioner of revenue in fiscal year 2000 
 18.30  and is available until June 30, 2002. 
 18.31     (u) If a sales tax rebate check is cashed by someone other 
 18.32  than the payee or payees of the check, and the commissioner of 
 18.33  revenue determines that the check has been forged or improperly 
 18.34  endorsed or the commissioner determines that a rebate was 
 18.35  overstated or erroneously issued, the commissioner may issue an 
 18.36  order of assessment for the amount of the check or the amount 
 19.1   the check is overstated against the person or persons cashing 
 19.2   it.  The assessment must be made within two years after the 
 19.3   check is cashed, but if cashing the check constitutes theft 
 19.4   under Minnesota Statutes, section 609.52, or forgery under 
 19.5   Minnesota Statutes, section 609.631, the assessment can be made 
 19.6   at any time.  The assessment may be appealed administratively 
 19.7   and judicially.  The commissioner may take action to collect the 
 19.8   assessment in the same manner as provided by Minnesota Statutes, 
 19.9   chapter 289A, for any other order of the commissioner assessing 
 19.10  tax. 
 19.11     (v) Notwithstanding Minnesota Statutes, sections 9.031, 
 19.12  16A.40, 16B.49, 16B.50, and any other law to the contrary, the 
 19.13  commissioner of revenue may take whatever actions the 
 19.14  commissioner deems necessary to pay the rebates required by this 
 19.15  section, and may, in consultation with the commissioner of 
 19.16  finance and the state treasurer, contract with a private vendor 
 19.17  or vendors to process, print, and mail the rebate checks or 
 19.18  warrants required under this section and receive and disburse 
 19.19  state funds to pay those checks or warrants. 
 19.20     (w) The commissioner may pay rebates required by this 
 19.21  section by electronic funds transfer to individuals who 
 19.22  requested that their 1999 individual income tax refund be paid 
 19.23  through electronic funds transfer.  The commissioner may make 
 19.24  the electronic funds transfer payments to the same financial 
 19.25  institution and into the same account as the 1999 individual 
 19.26  income tax refund. 
 19.27     (x) An individual who: 
 19.28     (1) was a resident of Minnesota for all of 1998; 
 19.29     (2) was not allowed to be claimed as a dependent on a 1999 
 19.30  federal income tax return filed by another person; 
 19.31     (3) attained the age of 18 on or before December 31, 1998; 
 19.32  and 
 19.33     (4) does not qualify for a rebate under paragraph (a), (f), 
 19.34  (g), or (h), 
 19.35  is eligible for a rebate under this paragraph only. 
 19.36  Qualifying individuals must file a claim for rebate on a form 
 20.1   prescribed by the commissioner by November 30, 2001.  The claim 
 20.2   must include proof of Minnesota residency and income tax filing 
 20.3   status.  The commissioner shall verify the information provided 
 20.4   and rebate the minimum amount allowed under paragraph (b) if the 
 20.5   claimant would have met the requirements to file a 1998 federal 
 20.6   income tax return as a married taxpayer filing jointly or head 
 20.7   of household, or the minimum amount allowed under paragraph (c) 
 20.8   for all other claimants. 
 20.9      Sec. 4.  [APPLICATION OF LAW.] 
 20.10     The limitation on the total amount of rebates in Laws 2000, 
 20.11  chapter 490, article 1, section 2, paragraph (j), does not apply 
 20.12  to rebates issued under section 3.  To the extent applicable, 
 20.13  all other provisions of Laws 2000, chapter 490, article 1, 
 20.14  section 2, apply to the rebates paid under section 3, including 
 20.15  the adjustments made under section 3, paragraph (j). 
 20.16     Sec. 5.  [APPROPRIATIONS.] 
 20.17     (a) The amount necessary to pay the rebates under section 3 
 20.18  is appropriated from the general fund to the commissioner of 
 20.19  revenue for fiscal years 2001 and 2002. 
 20.20     (b) $1,300,000 is appropriated from the general fund to the 
 20.21  commissioner of revenue to administer the sales tax rebates for 
 20.22  fiscal year 2001.  Any unencumbered balance remaining on June 
 20.23  30, 2001, does not cancel but is available for expenditure by 
 20.24  the commissioner of revenue until June 30, 2002.  
 20.25  Notwithstanding Minnesota Statutes, section 16A.285, the 
 20.26  commissioner of revenue may not use this appropriation for any 
 20.27  purpose other than administering the sales tax rebates.  This is 
 20.28  a one-time appropriation and may not be added to the agency's 
 20.29  budget base. 
 20.30     (c) $278,000 is appropriated from the general fund to the 
 20.31  state treasurer to pay the cost of clearing sales tax rebate 
 20.32  checks through commercial banks. 
 20.33     Sec. 6.  [EFFECTIVE DATE.] 
 20.34     Sections 1 to 5 are effective the day following final 
 20.35  enactment.