stricken = removed, old language. underscored = added, new language.
Authors and Status
Current Version - as introduced
relating to taxation; imposing a long-term care tax to fund services;amending
Minnesota Statutes 2012, section 290.06, by adding a subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 2012, section 290.06, is amended by adding a
subdivision to read:
1.7 Subd. 2g. Long-term care tax. (a) The long-term care tax imposed on individuals
1.8with taxable long-term care income must be computed by applying to their taxable
1.9long-term care income one-half the rate determined for the taxable year under section
1.103101, paragraph (a), of the Internal Revenue Code. In the case of a married couple filing
1.11a joint return, each spouse must compute his or her long-term care tax separately, based
1.12on that spouse's taxable long-term care income. An individual who is not a Minnesota
1.13resident for the entire year may apportion the individuals long-term care tax using the
1.14percentage calculated under subdivision 2c, paragraph (e).
1.15(b) For purposes of this subdivision "taxable long-term care income" means (i)
1.16wages as defined in section 3121, paragraph (a), of the Internal Revenue Code, plus (ii)
1.17net earnings from self-employment, as defined in section 1402 of the Internal Revenue
1.18Code, in excess of the contribution and benefit base for the taxable year, as defined in
1.19United States Code, title 42, section 430.
1.20(c) A long-term care account is created in the general fund. Revenue resulting
1.21from the long-term care tax under this subdivision is credited to the account. All money
1.22earned by the account is credited to the account. Amounts remain in the account until
1.23appropriated for long-term care. Appropriations from the account may only be used for
2.1long-term care services. Appropriations from the long-term care account must supplement
2.2traditional sources of funding for long-term services and may not be used as a substitute.
2.3(d) Notwithstanding any other law to the contrary, the long-term tax under paragraph
2.4(a) is not subject to offset by any credits in this chapter.
2.5EFFECTIVE DATE.This section is effective for taxable years beginning after
2.6December 31, 2012.