1.1 	A bill for an act
1.2 	relating to taxation; providing for an income tax
1.3 	surcharge; appropriating money; proposing coding for
1.4 	new law in Minnesota Statutes, chapter 290.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [290.433] INCOME TAX SURCHARGE.
1.7 	An individual, estate, trust, or corporation that files a
1.8 	return under this chapter, may designate on their original
1.9 	return that $5 or more shall be added to the tax or deducted
1.10 	from the refund that would otherwise be payable by or to that
1.11 	individual, estate, trust, or corporation.
1.12 	The taxpayer shall designate that the added or deducted
1.13 	amount shall be paid into one of the following accounts and used
1.14 	for the stated purpose:
1.15 	(1) K-12 education, for technology and/or capital
1.16 	improvement grants to school districts;
1.17 	(2) higher education, for state assistance to individual
1.18 	students based on student need;
1.19 	(3) transportation, for local road and bridge funds;
1.20 	(4) health care, to provide funding for public health care
1.21 	programs;
1.22 	(5) nursing home assistance, for state reimbursement of
1.23 	nursing home costs; or 
1.24 	(6) environmental clean water, for grants to cities for
1.25 	wastewater treatment facilities.

2.1 	EFFECTIVE DATE. This section is effective for taxable
2.2 	years beginning after December 31, 2004, and ending before
2.3 	January 1, 2007.

2.4 	Sec. 2. APPROPRIATION; SPECIAL ACCOUNTS.
 2.5 	(a) All amounts designated by taxpayers to be paid into the
2.6 	K-12 education account under Minnesota Statutes, section
2.7 	290.433, clause (1), must be deposited in the state treasury and
2.8 	credited to a special K-12 education account.  Money in the
2.9 	account is appropriated annually to the commissioner of
2.10 	education to make onetime grants to school districts for
2.11 	technology or capital improvements.
2.12 	(b) All amounts designated by taxpayers to be paid into the
2.13 	higher education account under Minnesota Statutes, section
2.14 	290.433, clause (2), must be deposited in the state treasury and
2.15 	credited to a special higher education account.  Money in the
2.16 	account is appropriated annually to the Minnesota Higher
2.17 	Education Services Office to provide financial assistance to
2.18 	students, based on financial needs, attending postsecondary
2.19 	educational institutions located in and operated by this state.
2.20 	(c) All amounts designated by taxpayers to be paid into the
2.21 	transportation account under Minnesota Statutes, section
2.22 	290.433, clause (3), must be deposited in the state treasury and
2.23 	credited to a special transportation account.  Money in the
2.24 	account is appropriated annually to the commissioner of
2.25 	transportation for improvements to local roads and bridges.
2.26 	(d) All amounts designated by taxpayers to be paid into the
2.27 	health care account under Minnesota Statutes, section 290.433,
2.28 	clause (4), must be deposited in the state treasury and credited
2.29 	to a special health care account.  Money in the account is
2.30 	appropriated annually to the commissioner of human services to
2.31 	provide additional funds for adult participation in
2.32 	MinnesotaCare.
2.33 	(e) All amounts designated by taxpayers to be paid into the
2.34 	nursing home assistance account under Minnesota Statutes,
2.35 	section 290.433, clause (5), must be deposited in the state
2.36 	treasury and credited to a special nursing home assistance
3.1 	account.  Money in the account is appropriated annually to the
3.2 	commissioner of human services to fund a onetime increase in
3.3 	state paid nursing home reimbursement rates.
3.4 	(f) All amounts designated by taxpayers to be paid into the
3.5 	environmental clean water account under Minnesota Statutes,
3.6 	section 290.433, clause (6), must be deposited in the state
3.7 	treasury and credited to the wastewater infrastructure fund, and
3.8 	annually appropriated to the public facilities authority to make
3.9 	onetime grants to municipalities for wastewater treatment
3.10 	facilities.
3.11 	(g) All amounts appropriated from the special accounts
3.12 	under this section are onetime appropriations and do not become
3.13 	part of the base level funding for the 2006-2007 biennium.

3.14 	EFFECTIVE DATE. This section is effective July 1, 2005.