SF 3588

as introduced - 91st Legislature (2019 - 2020) Posted on 02/25/2020 09:39am

A bill for an act
relating to taxation; individual income tax; section 179 expensing; federal tax
conformity; interest and penalties; amending Minnesota Statutes 2018, sections
290.0131, subdivision 10; 290.0133, subdivision 12.

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

Section 1.

Minnesota Statutes 2018, section 290.0131, subdivision 10, is amended to read:

Subd. 10.

Section 179 expensing.

new text begin For taxable years beginning before January 1, 2018,
new text end 80 percent of the amount by which the deduction allowed under the dollar limits of section
179 of the Internal Revenue Code exceeds the deduction allowable by section 179 of the
Internal Revenue Code, as amended through December 31, 2003, is an addition.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2017.
new text end

Sec. 2.

Minnesota Statutes 2018, section 290.0133, subdivision 12, is amended to read:

Subd. 12.

Section 179 expensing.

new text begin For taxable years beginning before January 1, 2018,
new text end 80 percent of the amount by which the deduction allowed under the dollar limits of section
179 of the Internal Revenue Code exceeds the deduction allowable by section 179 of the
Internal Revenue Code, as amended through December 31, 2003, is an addition.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2017.
new text end

Sec. 3. new text begin SPECIAL PENALTY EXCEPTION.
new text end

new text begin (a) The interest provisions under Minnesota Statutes, section 289A.55, and penalty for
failure to pay tax provisions under Minnesota Statutes, section 289A.60, subdivision 1, do
not apply to late payments of tax arising from an order of the commissioner assessing
additional income tax on a capital gain that was previously deferred under section 1031 of
the Internal Revenue Code of 1986, as amended through December 16, 2016, for taxable
years beginning after December 31, 2017, and ending before January 1, 2019. The penalty
and interest exceptions under this section only apply to a taxpayer:
new text end

new text begin (1) who is subject to the retroactive application of section 13303 of Public Law 115-97
in Laws 2019, First Special Session chapter 6, article 1, section 61, paragraph (b); and
new text end

new text begin (2) whose total amount of income tax due for taxable years beginning after December
31, 2017, and ending before January 1, 2019, increased by at least 12 percent due to the
retroactive application of law described in clause (1).
new text end

new text begin (b) Within 60 days of the effective date of this section, the commissioner must refund
to a taxpayer the amount of interest and penalties paid by the taxpayer that are subject to
the exception in paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for interest and penalties
on assessments ordered after June 1, 2019.
new text end