SF 667

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to MinnesotaCare taxes; providing for a contingent reduction in tax rates;
amending Minnesota Statutes 2006, section 295.52, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2006, section 295.52, is amended by adding a
subdivision to read:

new text begin Subd. 8. new text end

new text begin Contingent reduction in tax rate. new text end

new text begin On September 1 of each odd-numbered
year, beginning September 1, 2007, the commissioner of finance shall determine the
projected balance of the health care access fund as of the end of the current biennium,
based on the most recent February forecast adjusted for any legislative session changes.
If the commissioner of finance projects a surplus in the health care access fund as of
the end of the current biennium, the commissioner of finance, in consultation with the
commissioner, shall reduce the tax rates specified in subdivisions 1, 1a, 2, 3, and 4 in
one-tenth of one percent increments, making the largest reduction in tax rates consistent
with ensuring that the health care access fund retains a surplus as of the end of the current
biennium. The reduced tax rates take effect on the January 1 that immediately follows the
September 1 on which the commissioner of finance determines the projected balance and
remain in effect for two tax years. The tax rates specified in subdivisions 1, 1a, 2, 3, and 4
apply for subsequent tax years, unless the commissioner, based on a determination of the
projected balance of the health care access fund made on September 1 of an odd-numbered
year, reduces the tax rates. If the commissioner of finance does not project a surplus in
the health care access fund as of the end of the current biennium, the tax rates specified
in subdivisions 1, 1a, 2, 3, and 4 continue to apply. The commissioner of finance shall
publish in the State Register by October 1 of each odd-numbered year the amount of tax to
be imposed for the next two calendar years.
new text end