1.1 	A bill for an act
1.2 	relating to taxation; eliminating the corporate franchise tax; amending Minnesota 
1.3 	Statutes 2010, sections 290.06, subdivision 1; 290.0921, subdivision 1.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2010, section 290.06, subdivision 1, is amended to read:
1.6 		Subdivision 1.Computation, corporations. The franchise tax imposed upon 
1.7 	corporations shall be computed by applying to their taxable income the rate of:
1.8 	(1) 9.8 percent. for taxable years beginning before January 1, 2013; and
1.9 	(2) zero for taxable years beginning after December 31, 2012.

1.10 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
1.11 	December 31, 2012.

1.12 	Sec. 2. Minnesota Statutes 2010, section 290.0921, subdivision 1, is amended to read:
1.13 		Subdivision 1.Tax imposed. (a) In addition to the taxes computed under this 
1.14 	chapter without regard to this section, the franchise tax imposed on corporations for 
1.15 	taxable years beginning before January 1, 2013, includes a tax equal to the excess, if 
1.16 	any, for the taxable year of:
1.17 	(1) 5.8 percent of Minnesota alternative minimum taxable income; over
1.18 	(2) the tax imposed under section 290.06, subdivision 1, without regard to this 
1.19 	section.
1.20 	(b) For taxable years beginning after December 31, 2012, the tax under this 
1.21 	subdivision is zero.

2.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
2.2 	December 31, 2012.

2.3 	Sec. 3. REVISOR'S INSTRUCTION.
 2.4 	In consultation with the commissioner of revenue, the revisor of statutes shall 
2.5 	prepare a bill for introduction in the 2013 legislative session that repeals the corporate 
2.6 	franchise tax and, as appropriate, repeals or substitutes new cross-references or statutory 
2.7 	language for the repealed provisions of the franchise tax referred to in other sections of 
2.8 	Minnesota Statutes.