SF 4045

as introduced - 90th Legislature (2017 - 2018) Posted on 04/30/2018 03:54pm

A bill for an act
relating to taxation; individual income and corporate franchise; requiring
commissioner of revenue to reduce tax rates under certain conditions; amending
Minnesota Statutes 2016, section 16A.152, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2016, section 16A.152, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Tax rates adjustment. new text end

new text begin (a) The commissioner of revenue must make reductions
to the individual income tax rates and the corporate franchise tax rate in section 290.06,
subdivisions 1 and 2c, and the alternative minimum tax rates in sections 290.091 and
290.0921, by one-tenth of one percentage point if, on the basis of a November forecast of
general fund revenues and expenditures, the commissioner of management and budget
determines that the following conditions have been met:
new text end

new text begin (1) the provisions of subdivision 2, paragraph (a), clauses (1) to (4), are satisfied; and
new text end

new text begin (2) for a forecast occurring in an even-numbered year, revenues exceed expenditures,
excluding any carryforward amounts, at the close of the next biennium and the subsequent
biennium by an amount greater than the revenue reduction resulting from the corresponding
rate cuts defined in this paragraph, as estimated by the commissioner of revenue; or
new text end

new text begin (3) for a forecast occurring in an odd-numbered year, revenues exceed expenditures,
excluding any carryforward amounts, at the close of the current biennium and the subsequent
biennium by an amount greater than the revenue reduction resulting from the corresponding
rate cuts defined in this paragraph, as estimated by the commissioner of revenue.
new text end

new text begin (b) Rate reductions under this subdivision resulting from a November forecast in an
even-numbered year are effective for all taxable years beginning with the taxable year that
begins one year after January 1 of the year immediately following the forecast year.
new text end

new text begin (c) Rate reductions under this subdivision resulting from a November forecast in an
odd-numbered year are effective for all taxable years beginning with the taxable year that
begins on January 1 of the year immediately following the forecast year.
new text end

new text begin (d) Reductions enacted under this subdivision shall not exceed one percentage point for
each rate.
new text end

new text begin (e) Rate reductions under this subdivision shall occur before calculating any transfers
to the budget reserve account under subdivision 1b, paragraph (b).
new text end

new text begin (f) The commissioner of revenue shall publish the new tax rates in the State Register as
soon as is practicable. After the commissioner of revenue publishes the new tax rates in the
State Register, the revisor of statutes must update the tax rates in sections 290.06,
subdivisions 1 and 2c, 290.091, and 290.0921, in the next edition of Minnesota Statutes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end