HF 2524

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/15/2021 10:30am

A bill for an act
relating to taxation; prohibiting the imposition of certain taxes during a shutdown
period; amending Minnesota Statutes 2020, section 290.0131, by adding a
subdivision; proposing coding for new law in Minnesota Statutes, chapter 290.

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

Section 1.

Minnesota Statutes 2020, section 290.0131, is amended by adding a subdivision
to read:

new text begin Subd. 19. new text end

new text begin Wages paid during a shutdown period. new text end

new text begin The amount of wages paid on which
no tax is deducted and withheld under section 290.994, subdivision 2, is a subtraction.
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

Sec. 2.

new text begin [290.994] NO TAX IMPOSED DURING SHUTDOWN PERIOD.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) As used in this section, the definitions in paragraphs (b)
and (c) have the meanings given.
new text end

new text begin (b) "Consumption tax" means a tax imposed under section 295, 296A, 297A, 297B,
297E, 297F, 297G, or 297H.
new text end

new text begin (c) "Shutdown period" means the time period beginning on July 1 of an odd-numbered
year, during which legislation appropriating money for the general operations of any of the
following divisions of government has not been enacted for the biennium beginning July 1
of that year:
new text end

new text begin (1) an executive agency;
new text end

new text begin (2) an office or department of the legislature, including each house of the legislature and
the Legislative Coordinating Commission; or
new text end

new text begin (3) a judicial branch agency or department, including a court.
new text end

new text begin Subd. 2. new text end

new text begin Tax on wages not imposed. new text end

new text begin No tax shall be deducted and withheld on wages
paid by an employer under section 290.92 on a day that falls within a shutdown period or
ten days after that period.
new text end

new text begin Subd. 3. new text end

new text begin Consumption taxes not imposed. new text end

new text begin No consumption tax shall be imposed if the
activity or transaction giving rise to the tax occurs during a shutdown period or three days
after that period.
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