Minnesota HF 1086: Individual, estate, and trust tax schedules of rates increased.

Bill Text

02/27/13REVISOREAP/TA13-2320
Abillforanact1.1
relatingtotaxation;individualincome;increasingrates;amendingMinnesota1.2
Statutes2012,sections290.06,subdivisions2c,2d;290.091,subdivisions1,2,6.1.3
BEITENACTEDBYTHELEGISLATUREOFTHESTATEOFMINNESOTA:1.4
Section1.MinnesotaStatutes2012,section290.06,subdivision2c,isamendedtoread:1.5
Subd.2c.Schedulesofratesforindividuals,estates,andtrusts.(a)Theincome1.6
taxesimposedbythischapteruponmarriedindividualsfilingjointreturnsandsurviving1.7
spousesasdefinedinsection2(a)oftheInternalRevenueCodemustbecomputedby1.8
applyingtotheirtaxablenetincomethefollowingscheduleofrates:1.9
(1)Onthefirst$25,680,5.35
$35,480,sixpercent;1.10
(2)Onallover$25,680
$35,480,butnotover$102,030,7.05$140,960,eightpercent;1.11
(3)Onallover$102,030,7.85
$140,960,8.5percent.1.12
Marriedindividualsfilingseparatereturns,estates,andtrustsmustcomputetheir1.13
incometaxbyapplyingtheaboveratestotheirtaxableincome,exceptthattheincome1.14
bracketswillbeone-halfoftheaboveamounts.1.15
(b)Theincometaxesimposedbythischapteruponunmarriedindividualsmustbe1.16
computedbyapplyingtotaxablenetincomethefollowingscheduleofrates:1.17
(1)Onthefirst$17,570,5.35
$24,270,sixpercent;1.18
(2)Onallover$17,570$24,270,butnotover$57,710,7.05$79,730,eightpercent;1.19
(3)Onallover$57,710,7.85$79,730,8.5percent.1.20
(c)Theincometaxesimposedbythischapteruponunmarriedindividualsqualifying1.21
asaheadofhouseholdasdefinedinsection2(b)oftheInternalRevenueCodemustbe1.22
computedbyapplyingtotaxablenetincomethefollowingscheduleofrates:1.23
(1)Onthefirst$21,630,5.35
$29,880,sixpercent;1.24
Section1.1
ThisDocumentcanbemadeavailable
inalternativeformatsuponrequest
StateofMinnesota
HOUSEOFREPRESENTATIVES
H.F.No.
1086
EIGHTY-EIGHTHSESSION
03/04/2013AuthoredbyErhardt
ThebillwasreadforthefirsttimeandreferredtotheCommitteeonTaxes

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(2)Onallover$21,630$29,880,butnotover$86,910,7.05$120,070,eightpercent;2.1
(3)Onallover$86,910,7.85$120,070,8.5percent.2.2
(d)Inlieuofataxcomputedaccordingtotheratessetforthinthissubdivision,the2.3
taxofanyindividualtaxpayerwhosetaxablenetincomeforthetaxableyearislessthan2.4
anamountdeterminedbythecommissionermustbecomputedinaccordancewithtables2.5
preparedandissuedbythecommissionerofrevenuebasedonincomebracketsofnot2.6
morethan$100.Theamountoftaxforeachbracketshallbecomputedattheratesset2.7
forthinthissubdivision,providedthatthecommissionermaydisregardafractionalpartof2.8
adollarunlessitamountsto50centsormore,inwhichcaseitmaybeincreasedto$1.2.9
(e)AnindividualwhoisnotaMinnesotaresidentfortheentireyearmustcompute2.10
theindividual'sMinnesotaincometaxasprovidedinthissubdivision.Afterthe2.11
applicationofthenonrefundablecreditsprovidedinthischapter,thetaxliabilitymust2.12
thenbemultipliedbyafractioninwhich:2.13
(1)thenumeratoristheindividual'sMinnesotasourcefederaladjustedgrossincome2.14
asdefinedinsection62oftheInternalRevenueCodeandincreasedbytheadditions2.15
requiredundersection290.01,subdivision19a,clauses(1),(5),(6),(7),(8),(9),(12),2.16
(13),and(16)to(18),andreducedbytheMinnesotaassignableportionofthesubtraction2.17
forUnitedStatesgovernmentinterestundersection290.01,subdivision19b,clause2.18
(1),andthesubtractionsundersection290.01,subdivision19b,clauses(8),(9),(13),2.19
(14),(16),and(17),afterapplyingtheallocationandassignabilityprovisionsofsection2.20
290.081,clause(a),or290.17;and2.21
(2)thedenominatoristheindividual'sfederaladjustedgrossincomeasdefinedin2.22
section62oftheInternalRevenueCodeof1986,increasedbytheamountsspecifiedin2.23
section290.01,subdivision19a,clauses(1),(5),(6),(7),(8),(9),(12),(13),and(16)to2.24
(18),andreducedbytheamountsspecifiedinsection290.01,subdivision19b,clauses(1),2.25
(8),(9),(13),(14),(16),and(17).2.26
EFFECTIVEDATE.
Thissectioniseffectivefortaxableyearsbeginningafter2.27
December31,2012.
2.28
Sec.2.MinnesotaStatutes2012,section290.06,subdivision2d,isamendedtoread:2.29
Subd.2d.Inflationadjustmentofbrackets.(a)Fortaxableyearsbeginningafter2.30
December31,20002013,theminimumandmaximumdollaramountsforeachrate2.31
bracketforwhichataxisimposedinsubdivision2cshallbeadjustedforinflationbythe2.32
percentagedeterminedunderparagraph(b).Forthepurposeofmakingtheadjustmentas2.33
providedinthissubdivisionalloftheratebracketsprovidedinsubdivision2cshallbethe2.34
ratebracketsastheyexistedfortaxableyearsbeginningafterDecember31,1999
2012,2.35
Sec.2.2

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andbeforeJanuary1,20012014.Therateapplicabletoanyratebracketmustnotbe3.1
changed.Thedollaramountssettingforththetaxshallbeadjustedtoreflectthechanges3.2
intheratebrackets.Theratebracketsasadjustedmustberoundedtothenearest$103.3
amount.Iftheratebracketendsin$5,itmustberoundeduptothenearest$10amount.3.4
(b)Thecommissionershalladjusttheratebracketsandbythepercentagedetermined3.5
pursuanttotheprovisionsofsection1(f)oftheInternalRevenueCode,exceptthatin3.6
section1(f)(3)(B)theword"1999"
"2012"shallbesubstitutedfortheword"1992."For3.7
20012014,thecommissionershallthendeterminethepercentchangefromthe12mo