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; conforming to federal treatment 1.3 of S corporations for financial institutions; amending 1.4 Minnesota Statutes 1999 Supplement, section 290.9725; 1.5 repealing Minnesota Statutes 1999 Supplement, sections 1.6 290.06, subdivision 26; and 290.9726, subdivision 7. 1.7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.8 Section 1. Minnesota Statutes 1999 Supplement, section 1.9 290.9725, is amended to read: 1.10 290.9725 [S CORPORATION.] 1.11 For purposes of this chapter, the term "S corporation" 1.12 means any corporation having a valid election in effect for the 1.13 taxable year under section 1362 of the Internal Revenue Code. 1.14 An S corporation shall not be subject to the taxes imposed by 1.15 this chapter, except:1.16(1)the taxes imposed under sections 290.0922, 290.92, 1.17 290.9727, 290.9728, and 290.9729; and1.18(2) the tax under sections 290.06, subdivision 1, and1.19290.0921 apply to a financial institution to which either1.20section 585 or 593 of the Internal Revenue Code applies or that1.21has a wholly owned subsidiary as described in section1.221361(b)(3)(B) of the Internal Revenue Code which is a financial1.23institution under section 585 or 593 of the Internal Revenue1.24Code. 1.25 Sec. 2. [REPEALER.] 1.26 Minnesota Statutes 1999 Supplement, sections 290.06, 2.1 subdivision 26; and 290.9726, subdivision 7, are repealed. 2.2 Sec. 3. [EFFECTIVE DATE.] 2.3 Sections 1 and 2 are effective for taxable years beginning 2.4 after December 31, 1999.