Minnesota SF 4690: Developmental screening aid payment clarification provision

Bill Text

1.1 A bill for an act​
1.2 relating to taxation; making various policy and technical changes to individual​
1.3 income and corporate franchise taxes and property taxes; removing obsolete JOBZ​
1.4 provisions; modifying other miscellaneous tax provisions; amending Minnesota​
1.5 Statutes 2024, sections 123B.53, subdivision 1; 123B.535, subdivision 1; 270B.14,​
1.6 subdivision 3; 270B.15; 270C.055, by adding a subdivision; 273.032; 273.111,​
1.7 subdivision 9; 289A.08, subdivision 7; 290.01, subdivisions 19, 29; 290.0137;​
1.8 290.0921, subdivision 3; 290.0922, subdivisions 2, 3; 295.52, subdivision 5;​
1.9 297B.03; 428A.02, subdivision 1; 428A.13, subdivision 1; 469.175, subdivision​
1.10 4a; Minnesota Statutes 2025 Supplement, sections 268.19, subdivision 1; 297A.75,​
1.11 subdivisions 1, 2, 3; 297A.94; repealing Minnesota Statutes 2024, sections 272.02,​
1.12 subdivisions 31, 64; 272.029, subdivision 7; 273.11, subdivisions 19, 20; 273.1315,​
1.13 subdivision 1; 273.1385; 273.25; 273.65; 273.66; 273.67; 274.07; 289A.12,​
1.14 subdivision 15; 290.06, subdivision 29; 297A.68, subdivision 37; 428B.02,​
1.15 subdivision 7; 469.310; 469.311; 469.312; 469.313; 469.314; 469.315; 469.316;​
1.16 469.317; 469.318; 469.3181; 469.319; 469.3191; 469.3192; 469.3193; 469.320;​
1.17 469.3201; 477A.085; 477A.18.​
1.18 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
1.19 ARTICLE 1​
1.20 INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES​
1.21 Section 1. Minnesota Statutes 2024, section 289A.08, subdivision 7, is amended to read:​
1.22 Subd. 7.Composite income tax returns for nonresident partners, shareholders, and​
1.23 beneficiaries.(a) The commissioner may allow a partnership with nonresident partners to​
1.24 file a composite return and to pay the tax on behalf of nonresident partners who have no​
1.25 other Minnesota source income. This composite return must include the names, addresses,​
1.26 Social Security numbers, income allocation, and tax liability for the nonresident partners​
1.27 electing to be covered by the composite return.​
1​Article 1 Section 1.​
26-06018 as introduced​02/09/26 REVISOR EB/MI​
SENATE​
STATE OF MINNESOTA​
S.F. No. 4690​NINETY-FOURTH SESSION​
(SENATE AUTHORS: REST, Weber, Hauschild and Hemmingsen-Jaeger)​
OFFICIAL STATUS​D-PG​DATE​
Introduction and first reading​6905​03/23/2026​
Referred to Taxes​
See HF2438​

2.1 (b) The computation of a partner's tax liability must be determined by multiplying the​
2.2 income allocated to that partner by the highest rate used to determine the tax liability for​
2.3 individuals under section 290.06, subdivision 2c. Nonbusiness deductions, standard​
2.4 deductions, or personal exemptions are not allowed. The computation of a partner's net​
2.5 investment income tax liability must be computed under section 290.033.​
2.6 (c) The partnership must submit a request to use this composite return filing method for​
2.7 nonresident partners. The requesting partnership must file a composite return in the form​
2.8 prescribed by the commissioner of revenue. The filing of a composite return is considered​
2.9 a request to use the composite return filing method.​
2.10 (d) The electing partner must not have any Minnesota source income other than the​
2.11 income from the partnership, other electing partnerships, and other qualifying entities​
2.12 electing to file and pay the pass-through entity tax under subdivision 7a. If it is determined​
2.13 that the electing partner has other Minnesota source income, the inclusion of the income​
2.14 and tax liability for that partner under this provision will not constitute a return to satisfy​
2.15 the requirements of subdivision 1. The tax paid for the individual as part of the composite​
2.16 return is allowed as a payment of the tax by the individual on the date on which the composite​
2.17 return payment was made. If the electing nonresident partner has no other Minnesota source​
2.18 income, filing of the composite return is a return for purposes of subdivision 1.​
2.19 (e) This subdivision does not negate the requirement that an individual pay estimated​
2.20 tax if the individual's liability would exceed the requirements set forth in section 289A.25.​
2.21 The individual's liability to pay estimated tax is, however, satisfied when the partnership​
2.22 pays composite estimated tax in the manner prescribed in section 289A.25.​
2.23 (f) If an electing partner's share of the partnership's gross income from Minnesota sources​
2.24 is less than the filing requirements for a nonresident under this subdivision, the tax liability​
2.25 is zero. However, a statement showing the partner's share of gross income must be included​
2.26 as part of the composite return.​
2.27 (g) The election provided in this subdivision is only available to a partner who has no​
2.28 other Minnesota source income and who is either (1) a full-year nonresident individual or​
2.29 (2) a trust or estate that does not claim a deduction under either s