SF 1494

as introduced - 88th Legislature (2013 - 2014) Posted on 04/11/2013 09:16am

A bill for an act
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:

Subd. 2g.

Long-term care tax.

(a) The long-term care tax imposed on individuals
with taxable long-term care income must be computed by applying to their taxable
long-term care income one-half the rate determined for the taxable year under section
3101, paragraph (a), of the Internal Revenue Code. In the case of a married couple filing
a joint return, each spouse must compute his or her long-term care tax separately, based
on that spouse's taxable long-term care income. An individual who is not a Minnesota
resident for the entire year may apportion the individuals long-term care tax using the
percentage calculated under subdivision 2c, paragraph (e).

(b) For purposes of this subdivision "taxable long-term care income" means (i)
wages as defined in section 3121, paragraph (a), of the Internal Revenue Code, plus (ii)
net earnings from self-employment, as defined in section 1402 of the Internal Revenue
Code, in excess of the contribution and benefit base for the taxable year, as defined in
United States Code, title 42, section 430.

(c) A long-term care account is created in the general fund. Revenue resulting
from the long-term care tax under this subdivision is credited to the account. All money
earned by the account is credited to the account. Amounts remain in the account until
appropriated for long-term care. Appropriations from the account may only be used for
long-term care services. Appropriations from the long-term care account must supplement
traditional sources of funding for long-term services and may not be used as a substitute.

(d) Notwithstanding any other law to the contrary, the long-term tax under paragraph
(a) is not subject to offset by any credits in this chapter.

EFFECTIVE DATE.

This section is effective for taxable years beginning after
December 31, 2012.