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Minnesota Legislature

Office of the Revisor of Statutes

290.36 INVESTMENT COMPANIES; REPORT OF NET INCOME; COMPUTATION OF
AMOUNT OF INCOME ALLOCABLE TO STATE.
The taxable net income of investment companies shall be computed as follows:
Each investment company transacting business as such in this state shall report to the
commissioner the net income returned by the company for the taxable year to the United States
under the provisions of the Internal Revenue Code, less the credits provided therein and subject to
the adjustments required by this chapter. The commissioner shall compute therefrom the taxable
net income of the investment company by assigning to this state that proportion of such net
income, less such credits which the aggregate of the gross payments collected by the company
during the taxable year from old and new business upon investment contracts issued by the
company and held by residents of this state, bears to the total amount of the gross payments
collected during such year by the company from such business upon investment contracts issued
by the company and held by persons residing within the state and elsewhere.
As used in this section, the term "investment company" means any person, copartnership,
association, or corporation, whether local or foreign, coming within the purview of section 54.26,
and who or which is registered under the Investment Company Act of 1940 (United States Code,
title 15, section 80a-1 and following), as amended through December 31, 1986, and who or which
solicits or receives payments to be made to itself and which issues therefor, or has issued therefor
and has or shall have outstanding so-called bonds, shares, coupons, certificates of membership,
or other evidences of obligation or agreement or pretended agreement to return to the holders
or owners thereof money or anything of value at some future date; and as to whom the gross
payments received during the taxable year in question upon outstanding investment contracts,
plus interest and dividends earned on investment contracts determined by prorating the total
dividends and interest for the taxable year in question in the same proportion that certificate
reserves as defined by the Investment Company Act of 1940, as amended through December
31, 1986, is to total assets, shall be at least 50 percent of the company's gross payments upon
investment contracts plus gross income from all other sources except dividends from subsidiaries
for the taxable year in question. The term "investment contract" shall mean any such so-called
bonds, shares, coupons, certificates of membership, or other evidences of obligation or agreement
or pretended agreement issued by an investment company.
History: (2394-32c) 1933 c 405 s 32-3; Ex1937 c 49 s 21; 1947 c 635 s 19; 1977 c 386 s 6;
1980 c 607 art 1 s 32; 1981 c 60 s 27; 1982 c 523 art 1 s 38; art 40 s 14; 1983 c 207 s 43; 1983 c
342 art 1 s 43; 1984 c 514 art 1 s 8; 1Sp1985 c 14 art 21 s 49; 1986 c 444; 1Sp1986 c 1 art 1 s 9;
art 2 s 4; 1987 c 268 art 1 s 89; 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; 1992 c 511 art 6 s 19; 1993 c 375 art 8 s 14; 1994 c 587 art 1 s 24