SF 1206

as introduced - 91st Legislature (2019 - 2020) Posted on 02/14/2019 03:09pm

A bill for an act
relating to taxation; individual income; providing a subtraction for certain charity
dental services; amending Minnesota Statutes 2018, sections 289A.12, by adding
a subdivision; 290.0132, by adding a subdivision; 290.091, subdivision 2.

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

Section 1.

Minnesota Statutes 2018, section 289A.12, is amended by adding a subdivision
to read:

new text begin Subd. 19. new text end

new text begin Charity dental services. new text end

new text begin A taxpayer claiming the subtraction under section
290.0132, subdivision 27, must file an informational report with the commissioner
documenting the value of charity dental services the individual performed during the taxable
year. A business that employs an individual claiming the subtraction under section 290.0132,
subdivision 27, may also file an informational report with the commissioner documenting
the value of charity dental services its employees performed during the taxable year. The
charity dental services reported to the commissioner must be calculated at the reimbursement
rates provided in section 256B.76.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2018.
new text end

Sec. 2.

Minnesota Statutes 2018, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 27. new text end

new text begin Charity dental services. new text end

new text begin (a) The value of charity dental services performed
by a qualifying individual, calculated at the applicable reimbursement rate provided under
section 256B.76, is a subtraction.
new text end

new text begin (b) For purposes of this subdivision, the following definitions apply:
new text end

new text begin (1) "advanced dental therapist" means an individual who is licensed as a dental therapist
under section 150A.06 and who is certified as an advanced dental therapist under section
150A.106;
new text end

new text begin (2) "charity dental services" means the number of hours in a taxable year of services
performed by a qualifying individual within the scope of the individual's license and without
pay or other remuneration;
new text end

new text begin (3) "dental therapist" means an individual who is licensed as a dental therapist under
section 150A.06;
new text end

new text begin (4) "dentist" means an individual who is licensed as a dentist under sections 150A.01
to 150A.12; and
new text end

new text begin (5) "qualifying individual" means a dentist, advanced dental therapist, or dental therapist
who performs volunteer services in the area of the state outside of the counties of Anoka,
Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and
Wright.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2018.
new text end

Sec. 3.

Minnesota Statutes 2018, section 290.091, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For purposes of the tax imposed by this section, the following
terms have the meanings given.

(a) "Alternative minimum taxable income" means the sum of the following for the taxable
year:

(1) the taxpayer's federal alternative minimum taxable income as defined in section
55(b)(2) of the Internal Revenue Code;

(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum
taxable income, but excluding:

(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;

(ii) the medical expense deduction;

(iii) the casualty, theft, and disaster loss deduction; and

(iv) the impairment-related work expenses of a disabled person;

(3) for depletion allowances computed under section 613A(c) of the Internal Revenue
Code, with respect to each property (as defined in section 614 of the Internal Revenue Code),
to the extent not included in federal alternative minimum taxable income, the excess of the
deduction for depletion allowable under section 611 of the Internal Revenue Code for the
taxable year over the adjusted basis of the property at the end of the taxable year (determined
without regard to the depletion deduction for the taxable year);

(4) to the extent not included in federal alternative minimum taxable income, the amount
of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue
Code determined without regard to subparagraph (E);

(5) to the extent not included in federal alternative minimum taxable income, the amount
of interest income as provided by section 290.0131, subdivision 2; and

(6) the amount of addition required by section 290.0131, subdivisions 9 to 11;

less the sum of the amounts determined under the following:

(i) interest income as defined in section 290.0132, subdivision 2;

(ii) an overpayment of state income tax as provided by section 290.0132, subdivision
3, to the extent included in federal alternative minimum taxable income;

(iii) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as defined
in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted
in computing federal adjusted gross income;

(iv) amounts subtracted from federal taxable income as provided by section 290.0132,
subdivisions 7, 9 to 15, 17, 21, 24, deleted text begin and deleted text end 26 new text begin , and 27 new text end ; and

(v) the amount of the net operating loss allowed under section 290.095, subdivision 11,
paragraph (c).

In the case of an estate or trust, alternative minimum taxable income must be computed
as provided in section 59(c) of the Internal Revenue Code.

(b) "Investment interest" means investment interest as defined in section 163(d)(3) of
the Internal Revenue Code.

(c) "Net minimum tax" means the minimum tax imposed by this section.

(d) "Regular tax" means the tax that would be imposed under this chapter (without regard
to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed
under this chapter.

(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income
after subtracting the exemption amount determined under subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2018.
new text end