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Chapter 290

Section 290.0922

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290.0922 MINIMUM FEE; CORPORATIONS; PARTNERSHIPS.
    Subdivision 1. Imposition. (a) In addition to the tax imposed by this chapter without regard
to this section, the franchise tax imposed on a corporation required to file under section 289A.08,
subdivision 3
, other than a corporation treated as an "S" corporation under section 290.9725 for
the taxable year includes a tax equal to the following amounts:



If the sum of the corporation's
Minnesota property, payrolls, and sales
or receipts is:
the tax
equals:

less than $500,000
$
0

$
500,000 to $
999,999
$
100

$
1,000,000 to $
4,999,999
$
300

$
5,000,000 to $
9,999,999
$1,000

$
10,000,000 to $
19,999,999
$2,000

$ 20,000,000 or more

$5,000
(b) A tax is imposed for each taxable year on a corporation required to file a return under
section 289A.12, subdivision 3, that is treated as an "S" corporation under section 290.9725
and on a partnership required to file a return under section 289A.12, subdivision 3, other than
a partnership that derives over 80 percent of its income from farming. The tax imposed under
this paragraph is due on or before the due date of the return for the taxpayer due under section
289A.18, subdivision 1. The commissioner shall prescribe the return to be used for payment of
this tax. The tax under this paragraph is equal to the following amounts:



If the sum of the S corporation's or
partnership's Minnesota property,
payrolls, and sales or receipts is:
the tax
equals:

less than $500,000
$
0

$
500,000 to $
999,999
$
100

$
1,000,000 to $
4,999,999
$
300

$
5,000,000 to $
9,999,999
$1,000

$
10,000,000 to $
19,999,999
$2,000

$ 20,000,000 or more

$5,000
    Subd. 2. Exemptions. The following entities are exempt from the tax imposed by this section:
(1) corporations exempt from tax under section 290.05;
(2) real estate investment trusts;
(3) regulated investment companies or a fund thereof; and
(4) entities having a valid election in effect under section 860D(b) of the Internal Revenue
Code;
(5) town and farmers' mutual insurance companies;
(6) cooperatives organized under chapter 308A or 308B that provide housing exclusively to
persons age 55 and over and are classified as homesteads under section 273.124, subdivision 3;
(7) an entity, if for the taxable year all of its property is located in a job opportunity building
zone designated under section 469.314 and all of its payroll is a job opportunity building zone
payroll under section 469.310; and
(8) an entity, if for the taxable year all of its property is located in an international economic
development zone designated under section 469.322, and all of its payroll is international
economic development zone payroll under section 469.321. The exemption under this clause
applies to taxable years beginning during the duration of the international economic development
zone.
Entities not specifically exempted by this subdivision are subject to tax under this section,
notwithstanding section 290.05.
    Subd. 3. Definitions. (a) "Minnesota sales or receipts" means the total sales apportioned to
Minnesota pursuant to section 290.191, subdivision 5, the total receipts attributed to Minnesota
pursuant to section 290.191, subdivisions 6 to 8, and/or the total sales or receipts apportioned or
attributed to Minnesota pursuant to any other apportionment formula applicable to the taxpayer.
(b) "Minnesota property" means total Minnesota tangible property as provided in section
290.191, subdivisions 9 to 11, any other tangible property located in Minnesota, but does not
include: (1) property located in a job opportunity building zone designated under section 469.314,
(2) property of a qualified business located in a biotechnology and health sciences industry zone
designated under section 469.334, or (3) for taxable years beginning during the duration of the
zone, property of a qualified business located in the international economic development zone
designated under section 469.322. Intangible property shall not be included in Minnesota property
for purposes of this section. Taxpayers who do not utilize tangible property to apportion income
shall nevertheless include Minnesota property for purposes of this section. On a return for a short
taxable year, the amount of Minnesota property owned, as determined under section 290.191,
shall be included in Minnesota property based on a fraction in which the numerator is the number
of days in the short taxable year and the denominator is 365.
(c) "Minnesota payrolls" means total Minnesota payrolls as provided in section 290.191,
subdivision 12
, but does not include: (1) job opportunity building zone payrolls under section
469.310, subdivision 8, (2) biotechnology and health sciences industry zone payrolls under
section 469.330, subdivision 8, or (3) for taxable years beginning during the duration of the
zone, international economic development zone payrolls under section 469.321, subdivision 9.
Taxpayers who do not utilize payrolls to apportion income shall nevertheless include Minnesota
payrolls for purposes of this section.
    Subd. 4. Partner's pro rata share. For the purposes of this section, a partner's pro rata
share of a partnership's property, payroll, and sales or receipts is not included in the property,
payroll, and sales or receipts of the partner.
History: 1990 c 604 art 2 s 12; 1991 c 291 art 6 s 31,46; art 7 s 15; 1992 c 511 art 6 s 14,19;
art 7 s 18; 1993 c 375 art 8 s 14; 1994 c 587 art 1 s 24; 1996 c 471 art 1 s 7; art 9 s 1; 1997 c
231 art 6 s 14; 1Sp2001 c 5 art 9 s 17; 1Sp2003 c 21 art 1 s 11,12; art 2 s 7; 1Sp2005 c 3 art 3 s
12; art 10 s 10,11; 2006 c 259 art 13 s 4,5

NOTE: Subdivision 2, clause (8), as added by Laws 2005, First Special Session chapter 3,
article 10, section 10, is effective for tax years beginning after December 31, 2006. Laws 2005,
First Special Session chapter 3, article 10, section 10, the effective date.

NOTE: The amendment to subdivision 3 by Laws 2005, First Special Session chapter 3,
article 10, section 11, is effective for tax years beginning after December 31, 2006. Laws 2005,
First Special Session chapter 3, article 10, section 11, the effective date.