1997 Minnesota Statutes

     290.032 Lump sum distribution tax. 

    Subdivision 1.  There is hereby imposed as an addition to 
 the annual income tax for a taxable year of a taxpayer in the 
 classes described in section 290.03 a tax with respect to any 
 distribution received by such taxpayer that is treated as a lump 
 sum distribution under section 402(d) of the Internal Revenue 
 Code and that is subject to tax for such taxable year under 
 section 402(d) of the Internal Revenue Code. 

    Subd. 2.  The amount of tax imposed by subdivision 1 shall 
 be computed in the same way as the tax imposed under section 
 402(d) of the Internal Revenue Code, except that the initial 
 separate tax shall be an amount equal to five times the tax 
 which would be imposed by section 290.06, subdivision 2c, if the 
 recipient was an unmarried individual, and the taxable net 
 income was an amount equal to one-fifth of the excess of 

    (i) the total taxable amount of the lump sum distribution 
 for the year, over 

    (ii) the minimum distribution allowance, and except that 
 references in section 402(d) of the Internal Revenue Code to 
 paragraph (1)(A) thereof shall instead be references to 
 subdivision 1, and the excess, if any, of the subtraction base 
 amount over federal taxable income for a qualified individual as 
 provided under section 290.0802, subdivision 2. 

    Subd. 3.  The tax imposed by this section shall not be 
 applicable to a nonresident individual. 

    Subd. 4. Repealed, 1981 c 343 s 42 

    Subd. 5. Repealed, 1983 c 342 art 1 s 44 

    HIST: 1975 c 349 s 28; 1977 c 376 s 2,13; 1979 c 303 art 1 s 
 3,4; 1980 c 607 art 1 s 32; 1981 c 60 s 27; 1981 c 178 s 11; 
 1982 c 523 art 1 s 69; art 40 s 14; 1983 c 15 s 3; 1983 c 207 s 
 43; 1983 c 342 art 1 s 43; 1984 c 514 art 1 s 8; art 4 s 1; 
 1Sp1985 c 14 art 1 s 13; art 21 s 3,49; 1Sp1986 c 1 art 1 s 9; 
 1987 c 268 art 1 s 26,27; 1988 c 719 art 1 s 6; art 3 s 12; 1989 
 c 28 s 25; 1990 c 604 art 2 s 16; 1991 c 291 art 6 s 46; 1992 c 
 511 art 6 s 19; 1993 c 375 art 8 s 14; 1994 c 587 art 1 s 24; 
 1995 c 264 art 15 s 1,2