SF 2796

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

A bill for an act
relating to taxation; converting the transit pass credit to a refund and extending
it to additional employers; amending Minnesota Statutes 2004, section 290.06,
subdivision 28.

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

Section 1.

Minnesota Statutes 2004, section 290.06, subdivision 28, is amended to read:

Subd. 28.

deleted text begin Credit deleted text end new text begin Refunds new text end for transit passes.

new text begin (a) new text end deleted text begin A deleted text end deleted text begin taxpayer deleted text end new text begin An employer new text end may
deleted text begin take a credit against the tax due under this chapter deleted text end new text begin claim a refund new text end equal to 30 percent
of the expense incurred by the deleted text begin taxpayer deleted text end new text begin employer new text end to provide transit passes, for use in
Minnesota, to employees of the taxpayer.

new text begin (b) new text end new text begin new text end As used in this subdivision, new text begin the following terms have the meanings given:
new text end

new text begin (1) "employer" means an individual or entity subject to tax under this chapter
or an entity that is exempt from taxation under section 290.05, but excluding entities
enumerated in section 290.05, subdivision 1, clause (b); and
new text end

new text begin (2) new text end "transit pass" has the meaning given in section 132(f)(5)(A) of the Internal
Revenue Code.

new text begin (c) new text end If the deleted text begin taxpayer deleted text end new text begin employer new text end purchases the transit passes from the transit system
operator, and resells them to the employees, the deleted text begin credit deleted text end new text begin refund new text end is based on the amount of
the difference between the price paid for the passes by the employer and the amount
charged to employees.

new text begin (d) The commissioner shall prescribe the forms for and the manner in which the
refund may be claimed. The commissioner must provide for paying refunds at least
quarterly. The commissioner may set a minimum amount of qualifying expenses that must
be incurred before a refund may be claimed.
new text end

new text begin (e) An amount sufficient to pay the refunds required by this subdivision is
appropriated to the commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for transit passes purchased after
June 30, 2006.
new text end