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Minnesota Legislature

Office of the Revisor of Statutes

290.014 JURISDICTION TO TAX IN GENERAL.
    Subdivision 1. Resident individuals. All net income of a resident individual is subject to
tax under this chapter.
    Subd. 2. Nonresident individuals. Except as provided in section 290.015, a nonresident
individual is subject to the return filing requirements and to tax as provided in this chapter to the
extent that the income of the nonresident individual is:
(1) allocable to this state under section 290.17, 290.191, or 290.20;
(2) taxed to the individual under the Internal Revenue Code (or not taxed under the Internal
Revenue Code by reason of its character but of a character which is taxable under this chapter) in
the individual's capacity as a beneficiary of an estate with income allocable to this state under
section 290.17, 290.191, or 290.20 and the income, taking into account the income character
provisions of section 662(b) of the Internal Revenue Code, would be allocable to this state under
section 290.17, 290.191, or 290.20 if realized by the individual directly from the source from
which realized by the estate;
(3) taxed to the individual under the Internal Revenue Code (or not taxed under the Internal
Revenue Code by reason of its character but of a character that is taxable under this chapter) in
the individual's capacity as a beneficiary or grantor or other person treated as a substantial owner
of a trust with income allocable to this state under section 290.17, 290.191, or 290.20 and the
income, taking into account the income character provisions of section 652(b), 662(b), or 664(b)
of the Internal Revenue Code, would be allocable to this state under section 290.17, 290.191, or
290.20 if realized by the individual directly from the source from which realized by the trust;
(4) taxed to the individual under the Internal Revenue Code (or not taxed under the Internal
Revenue Code by reason of its character but of a character which is taxable under this chapter) in
the individual's capacity as a limited or general partner in a partnership with income allocable
to this state under section 290.17, 290.191, or 290.20 and the income, taking into account the
income character provisions of section 702(b) of the Internal Revenue Code, would be allocable
to this state under section 290.17, 290.191, or 290.20 if realized by the individual directly from
the source from which realized by the partnership; or
(5) taxed to the individual under the Internal Revenue Code (or not taxed under the Internal
Revenue Code by reason of its character but of a character which is taxable under this chapter) in
the individual's capacity as a shareholder of a corporation treated as an "S" corporation under
section 290.9725, and income allocable to this state under section 290.17, 290.191, or 290.20
and the income, taking into account the income character provisions of section 1366(b) of the
Internal Revenue Code, would be allocable to this state under section 290.17, 290.191, or 290.20
if realized by the individual directly from the source from which realized by the corporation.
    Subd. 3. Trusts and estates. Except as provided in section 290.015, a trust or estate, whether
resident or nonresident, is subject to the return filing requirements and to tax as provided in this
chapter to the extent that the income of the trust or estate is:
(1) allocable to this state under section 290.17, 290.191, or 290.20;
(2) taxed to the trust or estate under the Internal Revenue Code (or not taxed under the
Internal Revenue Code by reason of its character but of a character which is taxable under this
chapter) in its capacity as a beneficiary of a trust or estate with income allocable to this state under
section 290.17, 290.191, or 290.20 and the income, taking into account the income character
provisions of section 662(b) of the Internal Revenue Code, would be allocable to this state under
section 290.17, 290.191, or 290.20 if realized by the trust or beneficiary estate directly from the
source from which realized by the distributing estate;
(3) taxed to the trust or estate under the Internal Revenue Code (or not taxed under the
Internal Revenue Code by reason of its character but of a character which is taxable under this
chapter) in its capacity as a beneficiary or grantor or other person treated as a substantial owner
of a trust with income allocable to this state under section 290.17, 290.191, or 290.20 and the
income, taking into account the income character provisions of section 652(b), 662(b), or 664(b)
of the Internal Revenue Code, would be allocable to this state under section 290.17, 290.191, or
290.20 if realized by the beneficiary trust or estate directly from the source from which realized
by the distributing trust;
(4) taxed to the trust or estate under the Internal Revenue Code (or not taxed under the
Internal Revenue Code by reason of its character but of a character which is taxable under this
chapter) in its capacity as a limited or general partner in a partnership with income allocable to
this state under section 290.17, 290.191, or 290.20 and the income, taking into account the income
character provisions of section 702(b) of the Internal Revenue Code, would be allocable to this
state under section 290.17, 290.191, or 290.20 if realized by the trust or estate directly from the
source from which realized by the partnership; or
(5) taxed to the trust or estate under the Internal Revenue Code (or not taxed under the
Internal Revenue Code by reason of its character but of a character which is taxable under this
chapter) in its capacity as a shareholder of a corporation treated as an "S" corporation under
section 290.9725, and income allocable to this state under section 290.17, 290.191, or 290.20
and the income, taking into account the income character provisions of section 1366(b) of the
Internal Revenue Code, would be allocable to this state under section 290.17, 290.191, or 290.20
if realized by the trust or estate directly from the source from which realized by the corporation.
    Subd. 4. Partnerships. Except as provided in section 290.015, a partnership is subject to the
return filing requirements and to tax as provided in this chapter if the income of the partnership is:
(1) allocable to this state under section 290.17, 290.191, or 290.20;
(2) taxed to the partnership under the Internal Revenue Code (or not taxed under the Internal
Revenue Code by reason of its character but of a character which is taxable under this chapter)
in its capacity as a beneficiary of an estate with income allocable to this state under section
290.17, 290.191, or 290.20 and the income, taking into account the income character provisions
of section 662(b) of the Internal Revenue Code, would be allocable to this state under section
290.17, 290.191, or 290.20 if realized by the partnership directly from the source from which
realized by the estate;
(3) taxed to the partnership under the Internal Revenue Code (or not taxed under the Internal
Revenue Code by reason of its character but of a character which is taxable under this chapter) in
its capacity as a beneficiary or grantor or other person treated as a substantial owner of a trust with
income allocable to this state under section 290.17, 290.191, or 290.20 and the income, taking
into account the income character provisions of section 652(b), 662(b), or 664(b) of the Internal
Revenue Code, would be allocable to this state under section 290.17, 290.191, or 290.20 if
realized by the partnership directly from the source from which realized by the trust; or
(4) taxed to the partnership under the Internal Revenue Code (or not taxed under the Internal
Revenue Code by reason of its character but of a character which is taxable under this chapter)
in its capacity as a limited or general partner in a partnership with income allocable to this
state under section 290.17, 290.191, or 290.20 and the income, taking into account the income
character provisions of section 702(b) of the Internal Revenue Code, would be allocable to this
state under section 290.17, 290.191, or 290.20 if realized by the second tier partnership directly
from the source from which realized by the first tier partnership.
    Subd. 5. Corporations. Except as provided in section 290.015, corporations are subject to
the return filing requirements and to tax as provided in this chapter if the corporation so exercises
its franchise as to engage in such contacts with this state as to cause part of the income of the
corporation to be:
(1) allocable to this state under section 290.17, 290.191, 290.20, or 290.36;
(2) taxed to the corporation under the Internal Revenue Code (or not taxed under the Internal
Revenue Code by reason of its character but of a character which is taxable under this chapter)
in its capacity as a beneficiary of an estate with income allocable to this state under section
290.17, 290.191, or 290.20 and the income, taking into account the income character provisions
of section 662(b) of the Internal Revenue Code, would be allocable to this state under section
290.17, 290.191, or 290.20 if realized by the corporation directly from the source from which
realized by the estate;
(3) taxed to the corporation under the Internal Revenue Code (or not taxed under the Internal
Revenue Code by reason of its character but of a character which is taxable under this chapter) in
its capacity as a beneficiary or grantor or other person treated as a substantial owner of a trust with
income allocable to this state under section 290.17, 290.191, or 290.20 and the income, taking
into account the income character provisions of section 652(b), 662(b), or 664(b) of the Internal
Revenue Code, would be allocable to this state under section 290.17, 290.191, or 290.20 if
realized by the corporation directly from the source from which realized by the trust; or
(4) taxed to the corporation under the Internal Revenue Code (or not taxed under the Internal
Revenue Code by reason of its character but of a character which is taxable under this chapter)
in its capacity as a limited or general partner in a partnership with income allocable to this
state under section 290.17, 290.191, or 290.20 and the income, taking into account the income
character provisions of section 702(b) of the Internal Revenue Code, would be allocable to this
state under section 290.17, 290.191, or 290.20 if realized by the corporation directly from the
source from which realized by the partnership.
History: 1987 c 268 art 1 s 22; 1988 c 719 art 3 s 12; 1989 c 28 s 25; 1990 c 604 art 2 s 16;
1991 c 291 art 6 s 46; art 7 s 5-8; 1992 c 511 art 6 s 19; 1993 c 375 art 8 s 14; 1994 c 587 art 1 s
24; 1997 c 231 art 6 s 8,9; 1Sp2001 c 5 art 9 s 8