Minnesota Session Laws - 1985, Regular Session

  

                         Laws of Minnesota 1985 

                        CHAPTER 229-H.F.No. 779 
           An act relating to taxation; changing certain income 
          tax provisions relating to corporations; amending 
          Minnesota Statutes 1984, sections 290.05, subdivision 
          1; 290.391; and 290.42. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1984, section 290.05, 
subdivision 1, is amended to read: 
    Subdivision 1.  The following corporations, individuals, 
estates, trusts, and organizations shall be exempted from 
taxation under this chapter, provided that every such person or 
corporation claiming exemption under this chapter, in whole or 
in part, must establish to the satisfaction of the commissioner 
the taxable status of any income or activity: 
    (a) Corporations, individuals, estates, and trusts engaged 
in the business of mining or producing iron ore and other ores 
the mining or production of which is subject to the occupation 
tax imposed by section 298.01; but if any such corporation, 
individual, estate, or trust engages in any other business or 
activity or has income from any property not used in such 
business it shall be subject to this tax computed on the net 
income from such property or such other business or activity.  
Royalty (as defined in section 299.02) shall not be considered 
as income from the business of mining or producing iron ore 
within the meaning of this section; 
    (b) The United States of America, the state of Minnesota or 
any political subdivision of either agencies or 
instrumentalities, whether engaged in the discharge of 
governmental or proprietary functions;  
    (c) Mutual insurance companies or associations, including 
interinsurers and reciprocal underwriters, that are exempt as 
provided in the Revenue Act of 1936. 
    Sec. 2.  Minnesota Statutes 1984, section 290.391, is 
amended to read: 
    290.391 [AMENDED RETURNS.] 
    Any taxpayer who finds that his income tax return as 
originally filed is in error may correct such error by filing an 
amended return.  An amended return should be filed on a return 
form for the same year as the return that is being corrected and 
the words "Amended Return" should be placed at the top of page 
one of the return.  The filing date of the original return 
starts the running of the statute of limitations, and any 
subsequent filing of an amended return does not toll the statute.
    If the taxpayer is entitled to a credit or refund due to 
the correction, the amended return will serve as a claim or a 
claim for refund form may be filed.  In either case the claim 
must be filed before the limitation period expires must be in 
the form the commissioner prescribes.  If the tax shown due on 
the amended return is less than the tax shown due on the 
original return, the amended return constitutes a claim for 
refund pursuant to section 290.50.  The time limitations 
contained in sections 290.49 and 290.50 apply to filing of an 
amended return.  The filing of the original return starts the 
running of the statute of limitations provided in section 290.49.
    Sec. 3.  Minnesota Statutes 1984, section 290.42, is 
amended to read: 
     290.42 [FILING RETURNS, DATE.] 
     The returns required to be made under sections 290.37 to 
290.39 and 290.41, other than those under section 290.41, 
subdivisions 3 and 4, which shall be made within 30 days after 
demand therefor by the commissioner, shall be filed at the 
following times: 
     (1) Returns made on the basis of the calendar year shall be 
filed on the fifteenth day of April, following the close of the 
calendar year, except that returns of corporations shall be 
filed on the fifteenth day of March following the close of the 
calendar year; 
     (2) Returns made on the basis of the fiscal year shall be 
filed on the fifteenth day of the fourth month following the 
close of such fiscal year, except that returns of corporations 
shall be filed on the fifteenth day of the third month following 
the close of the fiscal year; 
     (3) Returns made for a fractional part of a year as an 
incident to a change from one taxable year to another shall be 
filed on the fifteenth day of the fourth month following the 
close of the period for which made, except that such returns of 
corporations shall be filed on the fifteenth day of the third 
month following the close of the period for which made; 
     (4) Other returns for a fractional part of a year shall be 
filed on the fifteenth day of the fourth month following the end 
of the month in which falls the last day of the period for which 
the return is made, except that such returns of corporations 
shall be filed on the fifteenth day of the third month following 
the end of the month in which falls the last day of the period 
for which the return is made: 
    In the case of a final return of a decedent for a 
fractional part of a year, such return shall be filed on the 
fifteenth day of the fourth month following the close of the 
twelve-month period which began with the first day of such 
fractional part of a year. 
    (4a) In the case of the return of a cooperative association 
such returns shall be filed on or before the fifteenth day of 
the ninth month following the close of the taxable year. 
    (5) If the due date for any return required under chapter 
290 falls upon: 
    A Saturday, Sunday, or a legal holiday such return filed by 
the next succeeding day which is not a Saturday, Sunday, or 
legal holiday shall be considered to be timely filed.  The term 
"legal holiday" means any day made a holiday in Minnesota by 
section 645.44, subdivision 5 or by the laws of the United 
States.  
    (6) In case of sickness, absence, or other disability, or 
when, in his judgment, good cause exists, the commissioner may 
extend the time for filing these returns for not more than six 
months, except as provided for corporations and except that 
where the failure is due to absence outside the United States he 
may extend the period as provided in section 6081 of the 
Internal Revenue Code of 1954, as amended through December 31, 
1983.  He may require each taxpayer in any of such cases to file 
a tentative return at the time fixed for filing the regularly 
required return from him, and to pay a tax on the basis of such 
tentative return at the times required for the payment of taxes 
on the basis of the regularly required return from such 
taxpayer.  The commissioner may exercise his power under this 
clause by rule only The commissioner may grant an extension of 
up to seven months for filing the return of a corporation 
subject to tax under this chapter if the corporation files a 
tentative return at the time fixed for filing the regularly 
required return and pays the tax on the basis of the tentative 
return in accordance with this section and section 290.45. 
    (7) Every person making a return under section 290.41 
(except subdivisions 3 and 4) shall furnish to each person whose 
name is set forth in the return a written statement showing 
    (A) the name and address of the person making the return, 
and 
    (B) the aggregate amount of payments to the person shown on 
the return.  
    This written statement shall be furnished to the person on 
or before January 31 of the year following the calendar year for 
which the return was made.  A duplicate of this written 
statement shall be furnished to the commissioner on or before 
February 28 of the year following the calendar year for which 
the return was made.  
    Sec. 4.  [EFFECTIVE DATES.] 
    Section 1 is effective for taxable years beginning after 
December 31, 1981.  Section 2 is effective the day after final 
enactment.  Section 3 is effective for taxable years beginning 
after December 31, 1984. 
    Approved May 24, 1985