1.1                                        A bill for an act&#10;1.2     relating to taxation; accelerating the phase-in of the sales-only apportionment &#10;1.3     factor;amending Minnesota Statutes 2005 Supplement, section 290.191, &#10;1.4     subdivision 2.&#10;1.5     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:&#10;&#10;<a id="go.0.1.0"></a>1.6         Section 1. Minnesota Statutes 2005 Supplement, section 290.191, subdivision 2, &#10;1.7     is amended to read:&#10;1.8         Subd. 2. <b>Apportionment formula of general application.</b> (a) Except for those &#10;1.9     trades or businesses required to use a different formula under subdivision 3 or section &#10;1.10    290.36, and for those trades or businesses that receive permission to use some other &#10;1.11    method under section 290.20 or under subdivision 4, a trade or business required to &#10;1.12    apportion its net income must apportion its income to this state on the basis of the &#10;1.13    percentage obtained by taking the sum of:&#10;1.14    (1) the percent for the sales factor under paragraph (b) of the percentage which &#10;1.15    the sales made within this state in connection with the trade or business during the tax &#10;1.16    period are of the total sales wherever made in connection with the trade or business during &#10;1.17    the tax period;&#10;1.18    (2) the percent for the property factor under paragraph (b) of the percentage which &#10;1.19    the total tangible property used by the taxpayer in this state in connection with the trade or &#10;1.20    business during the tax period is of the total tangible property, wherever located, used by &#10;1.21    the taxpayer in connection with the trade or business during the tax period; and&#10;1.22    (3) the percent for the payroll factor under paragraph (b) of the percentage which &#10;1.23    the taxpayer's total payrolls paid or incurred in this state or paid in respect to labor &#10;1.24    performed in this state in connection with the trade or business during the tax period are &#10;2.1     of the taxpayer's total payrolls paid or incurred in connection with the trade or business &#10;2.2     during the tax period.&#10;2.3     (b) For purposes of paragraph (a) and subdivision 3, the following percentages apply &#10;2.4     for the taxable years specified:&#10;<rs_table>2.5     Taxable years                                                         &#10;2.6     beginning                  Sales             Property         Payroll &#10;2.7     during                     factor            factor           factor  &#10;2.8     calendar year              percent           percent          percent &#10;2.9          2007                   <del>78</del><ins> 80</ins>              <del>11</del><ins> 10</ins>           <del>11</del><ins> 10</ins>  &#10;2.10         2008                   <del>81</del><ins> 90</ins>               <del>9.5</del><ins>5</ins>             <del>9.5</del><ins> 0</ins>  &#10;2.11    2009<ins> and later </ins>                                                       &#10;2.12    <ins>calendar years</ins>             <del>84</del><ins> 100</ins>              <del>8</del><ins> 0</ins>             <del>8</del><ins> 0</ins>   &#10;2.13         <del>2010</del>                    <del>87</del>                <del>6.5</del>             <del>6.5</del>   &#10;2.14         <del>2011</del>                    <del>90</del>                 <del>5</del>               <del>5</del>    &#10;2.15         <del>2012</del>                    <del>93</del>                <del>3.5</del>             <del>3.5</del>   &#10;2.16         <del>2013</del>                    <del>96</del>                 <del>2</del>               <del>2</del>    &#10;2.17    <del>2014 and later </del>                                                       &#10;2.18    <del>calendar years</del>               <del>100</del>                 <del>0</del>               <del>0</del>    &#10;</rs_table><rs_table></rs_table>2.19    <ins><b>EFFECTIVE DATE.</b></ins><ins>This section is effective for taxable years beginning after </ins>&#10;2.20    <ins>December 31, 2006.</ins>&#10;