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SF 3554

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

KEY: stricken = removed, old language.
underscored = added, new language.
  1.1                          A bill for an act 
  1.2             relating to reemployment compensation; modifying 
  1.3             nonprofit organization provisions; amending Minnesota 
  1.4             Statutes 1999 Supplement, section 268.053, subdivision 
  1.5             1, and by adding a subdivision. 
  1.7      Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.8   268.053, subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [ELECTION.] (a) Any nonprofit organization 
  1.10  that has employees in covered employment shall pay taxes on a 
  1.11  quarterly basis pursuant to section 268.051 unless it elects to 
  1.12  make payments in lieu of taxes to the fund the amount of 
  1.13  benefits charged to its employer account under section 268.047. 
  1.14     The organization may elect to make payments in lieu of 
  1.15  taxes for a period of not less than three two calendar years 
  1.16  beginning with the date that the organization was determined to 
  1.17  be an employer with covered employment by filing a notice of 
  1.18  election not later than 30 calendar days after the date of the 
  1.19  determination. 
  1.20     (b) Any nonprofit organization that makes an election will 
  1.21  continue to be liable for payments in lieu of taxes until it 
  1.22  files a notice terminating its election not later than 30 
  1.23  calendar days before the beginning of the calendar year the 
  1.24  termination is to be effective.  
  1.25     (c) A nonprofit organization that has been making payments 
  2.1   in lieu of taxes that files a notice of termination of election 
  2.2   shall be assigned the new employer tax rate under section 
  2.3   268.051, subdivision 5, for the calendar year of the termination 
  2.4   of election and until it qualifies for an experience rating 
  2.5   under section 268.051, subdivision 3. 
  2.6      (d) Any nonprofit organization that has been paying taxes 
  2.7   may elect to make payments in lieu of taxes by filing no less 
  2.8   than 30 calendar days before January 1 of any calendar year a 
  2.9   notice of election.  Upon election, the commissioner shall 
  2.10  establish a reimbursable account for the nonprofit 
  2.11  organization.  An election shall be allowed only if the 
  2.12  nonprofit organization has a zero, during the experience rating 
  2.13  and has no period under section 268.051, subdivision 3, paid 
  2.14  taxes or made voluntary payments under section 268.051, 
  2.15  subdivision 7, equal to or more than 125 percent of the benefit 
  2.16  charges during the experience rating period.  In addition, any 
  2.17  benefit charges to its tax account that have not yet been used 
  2.18  in computing an come after the experience rating under section 
  2.19  268.051, subdivision 3 period shall be transferred to the new 
  2.20  reimbursable account of the nonprofit organization.  If the 
  2.21  amount of taxes and voluntary payments paid during the 
  2.22  experience rating period exceeds 125 percent of the amount of 
  2.23  benefit charges during the experience rating period, that amount 
  2.24  in excess shall be applied against any benefit charges that come 
  2.25  after the experience rating period.  The election shall not be 
  2.26  terminable by the organization for that and the next calendar 
  2.27  year. 
  2.28     (e) The commissioner may for good cause extend the period 
  2.29  that a notice of election, or a notice of termination, must be 
  2.30  filed and may permit an election to be retroactive. 
  2.31     (f) The commissioner may allow a notice of election or 
  2.32  notice terminating election to be filed by mail or electronic 
  2.33  transmission. 
  2.34     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
  2.35  268.053, is amended by adding a subdivision to read: 
  2.36     Subd. 5.  [COMPROMISE.] The compromise authority set out in 
  3.1   section 268.067 applies to this section. 
  3.2      Sec. 3.  [EFFECTIVE DATE.] 
  3.3      Sections 1 and 2 are effective the day following final 
  3.4   enactment.