SF 3313

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; expanding income tax brackets 
  1.3             for married taxpayers filing jointly; repealing the 
  1.4             marriage penalty credit; amending Minnesota Statutes 
  1.5             1999 Supplement, section 290.06, subdivision 2c; 
  1.6             repealing Minnesota Statutes 1999 Supplement, section 
  1.7             290.0675. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.10  290.06, subdivision 2c, is amended to read: 
  1.11     Subd. 2c.  [SCHEDULES OF RATES FOR INDIVIDUALS, ESTATES, 
  1.12  AND TRUSTS.] (a) The income taxes imposed by this chapter upon 
  1.13  married individuals filing joint returns and surviving spouses 
  1.14  as defined in section 2(a) of the Internal Revenue Code must be 
  1.15  computed by applying to their taxable net income the following 
  1.16  schedule of rates: 
  1.17     (1) On the first $25,220 $34,500, 5.5 percent; 
  1.18     (2) On all over $25,220 $34,500, but not 
  1.19  over $100,200 $113,360, 7.25 percent; 
  1.20     (3) On all over $100,200 $113,360, 8 percent. 
  1.21     Married individuals filing separate returns, estates, and 
  1.22  trusts must compute their income tax by applying the above rates 
  1.23  to their taxable income, except that the income brackets will be 
  1.24  one-half of the above amounts.  
  1.25     (b) The income taxes imposed by this chapter upon unmarried 
  1.26  individuals must be computed by applying to taxable net income 
  2.1   the following schedule of rates: 
  2.2      (1) On the first $17,250, 5.5 percent; 
  2.3      (2) On all over $17,250, but not over $56,680, 7.25 
  2.4   percent; 
  2.5      (3) On all over $56,680, 8 percent. 
  2.6      (c) The income taxes imposed by this chapter upon unmarried 
  2.7   individuals qualifying as a head of household as defined in 
  2.8   section 2(b) of the Internal Revenue Code must be computed by 
  2.9   applying to taxable net income the following schedule of rates: 
  2.10     (1) On the first $21,240 $25,875, 5.5 percent; 
  2.11     (2) On all over $21,240 $25,875, but not over $85,350, 7.25 
  2.12  percent; 
  2.13     (3) On all over $85,350, 8 percent. 
  2.14     (d) In lieu of a tax computed according to the rates set 
  2.15  forth in this subdivision, the tax of any individual taxpayer 
  2.16  whose taxable net income for the taxable year is less than an 
  2.17  amount determined by the commissioner must be computed in 
  2.18  accordance with tables prepared and issued by the commissioner 
  2.19  of revenue based on income brackets of not more than $100.  The 
  2.20  amount of tax for each bracket shall be computed at the rates 
  2.21  set forth in this subdivision, provided that the commissioner 
  2.22  may disregard a fractional part of a dollar unless it amounts to 
  2.23  50 cents or more, in which case it may be increased to $1. 
  2.24     (e) An individual who is not a Minnesota resident for the 
  2.25  entire year must compute the individual's Minnesota income tax 
  2.26  as provided in this subdivision.  After the application of the 
  2.27  nonrefundable credits provided in this chapter, the tax 
  2.28  liability must then be multiplied by a fraction in which:  
  2.29     (1) the numerator is the individual's Minnesota source 
  2.30  federal adjusted gross income as defined in section 62 of the 
  2.31  Internal Revenue Code and increased by the additions required 
  2.32  under section 290.01, subdivision 19a, clauses (1) and (6), 
  2.33  after applying the allocation and assignability provisions of 
  2.34  section 290.081, clause (a), or 290.17; and 
  2.35     (2) the denominator is the individual's federal adjusted 
  2.36  gross income as defined in section 62 of the Internal Revenue 
  3.1   Code of 1986, increased by the amounts specified in section 
  3.2   290.01, subdivision 19a, clauses (1) and (6), and reduced by the 
  3.3   amounts specified in section 290.01, subdivision 19b, clause (1).
  3.4      Sec. 2.  [REPEALER.] 
  3.5      Minnesota Statutes 1999 Supplement, section 290.0675, is 
  3.6   repealed. 
  3.7      Sec. 3.  [EFFECTIVE DATE.] 
  3.8      Sections 1 and 2 are effective for taxable years beginning 
  3.9   after December 31, 1999.