SF 27

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 08:08am

A bill for an act
relating to taxation; phasing out the corporate franchise tax; amending Minnesota
Statutes 2010, sections 290.06, subdivision 1; 290.0921, subdivision 1.

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

Section 1.

Minnesota Statutes 2010, section 290.06, subdivision 1, is amended to read:

Subdivision 1.

Computation, corporations.

The franchise tax imposed upon
corporations shall be computed by applying to their taxable income the rate of new text begin :
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new text begin (1) new text end 9.8 percent new text begin for taxable years beginning before January 1, 2011;
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new text begin (2) 8.8 percent for taxable year 2011;
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new text begin (3) 7.8 percent for taxable year 2012;
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new text begin (4) 6.8 percent for taxable year 2013;
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new text begin (5) 5.8 percent for taxable year 2014;
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new text begin (6) 4.8 percent for taxable year 2015;
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new text begin (7) 3.8 percent for taxable year 2016;
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new text begin (8) 2.8 percent for taxable year 2017;
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new text begin (9) 1.8 percent for taxable year 2018;
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new text begin (10) 0.8 percent for taxable year 2019;
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new text begin (11) zero for taxable years beginning after December 31, 2019 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, 2010.
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Sec. 2.

Minnesota Statutes 2010, section 290.0921, subdivision 1, is amended to read:

Subdivision 1.

Tax imposed.

new text begin (a) new text end In addition to the taxes computed under this
chapter without regard to this section, the franchise tax imposed on corporations includes
a tax equal to the excess, if any, for the taxable year of:

(1) new text begin (i) new text end 5.8 percent of Minnesota alternative minimum taxable income new text begin for taxable
years beginning before January 1, 2011;
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new text begin (ii) 5.2 percent of Minnesota alternative minimum taxable income for taxable year
2011;
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new text begin (iii) 4.6 percent of Minnesota alternative minimum taxable income for taxable year
2012;
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new text begin (iv) four percent of Minnesota alternative minimum taxable income for taxable
year 2013;
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new text begin (v) 3.4 percent of Minnesota alternative minimum taxable income for taxable year
2014;
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new text begin (vi) 2.8 percent of Minnesota alternative minimum taxable income for taxable year
2015;
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new text begin (vii) 2.2 percent of Minnesota alternative minimum taxable income for taxable
year 2016;
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new text begin (viii) 1.7 percent of Minnesota alternative minimum taxable income for taxable
year 2017;
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new text begin (ix) 1.1 percent of Minnesota alternative minimum taxable income for taxable year
2018;
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new text begin (x) 0.5 percent of Minnesota alternative minimum taxable income for taxable year
2019 new text end ; over

(2) the tax imposed under section 290.06, subdivision 1, without regard to this
section.

new text begin (b) For taxable years beginning after December 31, 2019, the tax under this
subdivision is zero.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2010.
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Sec. 3. new text begin REVISOR'S INSTRUCTION.
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new text begin In consultation with the commissioner of revenue, the revisor of statutes shall
prepare a bill for introduction in the 2019 legislative session that repeals the corporate
franchise tax and, as appropriate, repeals or substitutes new cross references or statutory
language for the repealed provisions of the franchise tax referred to in other sections of
Minnesota Statutes.
new text end