1.1                          A bill for an act 
  1.2             relating to taxation; converting the transit pass 
  1.3             credit to a refund and extending it to additional 
  1.4             employers; amending Minnesota Statutes 2002, section 
  1.5             290.06, subdivision 28. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 290.06, 
  1.8   subdivision 28, is amended to read: 
  1.9      Subd. 28.  [CREDIT REFUNDS FOR TRANSIT PASSES.] (a) A 
  1.10  taxpayer employer may take a credit against the tax due under 
  1.11  this chapter claim a refund equal to 30 percent of the expense 
  1.12  incurred by the taxpayer employer to provide transit passes, for 
  1.13  use in Minnesota, to employees of the taxpayer.  
  1.14     (b) As used in this subdivision, the following terms have 
  1.15  the meanings given: 
  1.16     (1) "employer" means an individual or entity subject to tax 
  1.17  under this chapter or an entity that is exempt from taxation 
  1.18  under section 290.05, but excluding entities enumerated in 
  1.19  section 290.05, subdivision 1, paragraph (b); and 
  1.20     (2) "transit pass" has the meaning given in section 
  1.21  132(f)(5)(A) of the Internal Revenue Code.  
  1.22     (c) If the taxpayer employer purchases the transit passes 
  1.23  from the transit system operator, and resells them to the 
  1.24  employees, the credit refund is based on the amount of the 
  1.25  difference between the price paid for the passes by the employer 
  2.1   and the amount charged to employees. 
  2.2      (d) The commissioner shall prescribe the forms for and the 
  2.3   manner in which the refund may be claimed.  The commissioner 
  2.4   must provide for paying refunds at least quarterly.  The 
  2.5   commissioner may set a minimum amount of qualifying expenses 
  2.6   that must be incurred before a refund may be claimed. 
  2.7      (e) An amount sufficient to pay the refunds required by 
  2.8   this subdivision is appropriated to the commissioner of revenue. 
  2.9      <b>[EFFECTIVE DATE.]</b> This section is effective for transit 
  2.10  passes purchased after June 30, 2004.