A bill for an act
relating to taxation; modifying property taxes, individual income and corporate
franchise taxes, gross receipts taxes, and local government aids; clarifying the
definition of certain attachments and appurtenances; proposing advanced payments
of the child tax credit; clarifying the credit for research calculation for the gross
receipts tax; modifying the effective date of a reduction in the limitation on the
deductibility of net operating losses; modifying Tribal Nation aid payment dates;
appropriating money; amending Minnesota Statutes 2022, sections 272.02,
subdivision 19; 273.38; 273.41; 289A.08, subdivision 1; 295.53, subdivision 4a;
Minnesota Statutes 2023 Supplement, sections 290.0661, subdivision 7, by adding
a subdivision; 477A.40, subdivisions 4, 5; Laws 2023, chapter 64, article 1, section
44.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2022, section 272.02, subdivision 19, is amended to read:
Electric power distribution
deleted text begin lines and their attachments and appurtenancesdeleted text end new text begin systems, not including substations, or
transmission or generation equipmentnew text end , that are used primarily for supplying electricity to
farmers at retail, are exempt.
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This section is effective for assessment year 2024 and thereafter.
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Minnesota Statutes 2022, section 273.38, is amended to read:
The distribution deleted text begin lines and the attachments and appurtenances theretodeleted text end new text begin systems, not
including substations, or transmission or generation equipmentnew text end of cooperative associations
organized under the provisions of Laws 1923, chapter 326, and laws amendatory thereof
and supplemental thereto, and engaged in the electrical heat, light and power business, upon
a mutual, nonprofit and cooperative plan, shall be assessed and taxed as provided in sections
273.40 and 273.41.
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This section is effective for assessment year 2024 and thereafter.
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Minnesota Statutes 2022, section 273.41, is amended to read:
There is hereby imposed upon each such cooperative association on December 31 of
each year a tax of $10 for each 100 members, or fraction thereof, of such association. The
tax, when paid, shall be in lieu of all personal property taxes, state, county, or local, upon
deleted text begin distribution lines and the attachments and appurtenances thereto of such associationsdeleted text end new text begin that
part of the association's distribution system, not including substations, or transmission or
generation equipment,new text end located in rural areas. The tax shall be payable on or before March
1 of the next succeeding year, to the commissioner of revenue. If the tax, or any portion
thereof, is not paid within the time herein specified for the payment thereof, there shall be
added thereto a specific penalty equal to ten percent of the amount so remaining unpaid.
Such penalty shall be collected as part of said tax, and the amount of said tax not timely
paid, together with said penalty, shall bear interest at the rate specified in section 270C.40
from the time such tax should have been paid until paid. The commissioner shall deposit
the amount so received in the general fund of the state treasury.
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This section is effective for assessment year 2024 and thereafter.
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Minnesota Statutes 2022, section 289A.08, subdivision 1, is amended to read:
(a) A taxpayer must file a return for each taxable
year the taxpayer is required to file a return under section 6012 of the Internal Revenue
Code or meets the requirements under paragraph (d) to file a return, except that:
(1) an individual who is not a Minnesota resident for any part of the year is not required
to file a Minnesota income tax return if the individual's gross income derived from Minnesota
sources as determined under sections 290.081, paragraph (a), and 290.17, is less than the
filing requirements for a single individual who is a full year resident of Minnesota;
(2) an individual who is a Minnesota resident is not required to file a Minnesota income
tax return if the individual's gross income derived from Minnesota sources as determined
under section 290.17, less the subtractions allowed under section 290.0132, subdivisions
12 and 15, is less than the filing requirements for a single individual who is a full-year
resident of Minnesota.
(b) The decedent's final income tax return, and other income tax returns for prior years
where the decedent had gross income in excess of the minimum amount at which an
individual is required to file and did not file, must be filed by the decedent's personal
representative, if any. If there is no personal representative, the return or returns must be
filed by the transferees, as defined in section 270C.58, subdivision 3, who receive property
of the decedent.
(c) The term "gross income," as it is used in this section, has the same meaning given it
in section 290.01, subdivision 20.
(d) The commissioner of revenue must annually determine the gross income levels at
which individuals are required to file a return for each taxable year based on the amounts
allowed as a deduction under section 290.0123.
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(e) Notwithstanding paragraph (a), an individual must file a Minnesota income tax return
for each taxable year that the taxpayer has made an election to receive advance payments
of the child tax credit under section 290.0661, subdivision 8.
new text end
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This section is effective for taxable years beginning after December
31, 2024.
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Minnesota Statutes 2023 Supplement, section 290.0661, subdivision 7, is amended
to read:
(a) For taxable years beginning after December 31,
2025, the commissioner of revenue must annually adjust for inflation the credit amount in
subdivision 3 as provided in section 270C.22. The adjusted amounts must be rounded to
the nearest $60. The statutory year is taxable year 2025.
(b) For taxable years beginning after December 31, 2023, the commissioner of revenue
must annually adjust for inflation the phaseout thresholds in subdivision 4, as provided in
section 270C.22. The statutory year is taxable year 2023.
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(c) For taxable years beginning after December 31, 2025, and before January 1, 2029,
the commissioner of revenue must annually adjust for inflation the limitations for adjusted
gross income in subdivision 9, paragraph (a), clause (2), as provided in section 270C.22.
The statutory year is taxable year 2025.
new text end
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This section is effective for taxable years beginning after December
31, 2025.
new text end
Minnesota Statutes 2023 Supplement, section 290.0661, is amended by adding a
subdivision to read:
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(a) For taxable years beginning after December 31, 2024,
and before January 1, 2029, an eligible taxpayer is allowed the greater of the credit allowed
under subdivision 2 or the minimum credit described in this subdivision. A taxpayer is
eligible for the minimum credit under this subdivision if the taxpayer:
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(1) received the credit under subdivision 2 in the preceding taxable year; and
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(2) has adjusted gross income in the current taxable year equal to or less than:
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(i) $60,100 for married taxpayers filing a joint return with one qualifying child; or
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(ii) $49,570 for all other filers with one qualifying child.
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(b) The adjusted gross income limitations in paragraph (a), clause (2), are increased by
$9,000 for each additional qualifying child.
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(c) The credit allowed under this subdivision is equal to 50 percent of the credit received
under subdivision 2 in the prior taxable year, unless paragraph (d) applies.
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(d) If a taxpayer is claiming fewer qualifying children in the current taxable year than
in the prior taxable year, the minimum credit allowed under this subdivision is equal to 50
percent of credit received under this section in the prior taxable year multiplied by a fraction
in which:
new text end
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(1) the numerator is the number of qualifying children in the current taxable year; and
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(2) the denominator is the number of qualifying children in the prior taxable year.
new text end
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(e) The commissioner must certify the total change in individual income tax liability
from the credit allowed under this subdivision compared to the credit calculated under
subdivision 2 to the commissioner of management and budget by June 30 of each year.